Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document and Entity Information | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Entity File Number | 001-35126 |
Entity Registrant Name | VNET Group, Inc. |
Entity Central Index Key | 0001508475 |
Current Fiscal Year End Date | --12-31 |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | Guanjie Building Southeast 1st Floor |
Entity Address, Address Line Two | 10# Jiuxianqiao East Road |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100016 |
Entity Address, Country | CN |
Title of 12(b) Security | American depositary shares, each representing six Class A ordinary shares, par value US$0.00001 per share |
Trading Symbol | VNET |
Security Exchange Name | NASDAQ |
Entity Well-known Seasoned Issuer | Yes |
Entity Interactive Data Current | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Auditor Name | Ernst & Young Hua Ming LLP |
Auditor Firm ID | 1408 |
Auditor Location | Shanghai, the People’s Republic of China |
Business Contact | |
Document and Entity Information | |
Entity Address, Address Line One | Guanjie Building, Southeast 1st Floor |
Entity Address, Address Line Two | 10# Jiuxianqiao East Road |
Entity Address, Address Line Three | Chaoyang District |
Entity Address, City or Town | Beijing |
Entity Address, Postal Zip Code | 100016 |
Entity Address, Country | CN |
Contact Personnel Name | Mr. Tim Chen |
City Area Code | 86 |
Local Phone Number | 10 8456-2121 |
Class A Ordinary Shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 857,359,421 |
Class B Ordinary Shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 30,721,723 |
Class C Ordinary Shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 60,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Current assets: | |||
Cash and cash equivalents | ¥ 1,372,481 | $ 215,372 | ¥ 2,710,349 |
Restricted cash | 327,767 | 51,434 | 270,450 |
Accounts and notes receivable (net of allowance for doubtful debt of RMB68,921 and RMB99,620 (US$15,633) as of December 31, 2020 and 2021, respectively) | 1,405,997 | 220,632 | 847,233 |
Short-term investments | 285,872 | ||
Prepaid expenses and other current assets | 2,049,911 | 321,673 | 1,866,184 |
Amounts due from related parties | 167,967 | 26,358 | 75,519 |
Total current assets | 5,324,123 | 835,469 | 6,055,607 |
Non-current assets: | |||
Property and equipment, net | 10,092,419 | 1,583,721 | 8,106,425 |
Intangible assets, net | 900,335 | 141,282 | 658,195 |
Land use rights, net | 337,235 | 52,920 | 255,373 |
Operating lease right-of-use assets, net | 2,869,338 | 450,262 | 1,325,526 |
Goodwill | 1,339,657 | 210,221 | 994,993 |
Restricted cash | 8,225 | 1,291 | 135,638 |
Deferred tax assets, net | 168,002 | 26,363 | 185,481 |
Long-term investments, net | 98,243 | 15,416 | 135,517 |
Amounts due from related parties | 20,562 | ||
Other non-current assets | 1,957,462 | 307,169 | 1,500,438 |
Total non-current assets | 17,770,916 | 2,788,645 | 13,318,148 |
Total assets | 23,095,039 | 3,624,114 | 19,373,755 |
Current liabilities: | |||
Short-term bank borrowings (including short-term bank borrowings of the Consolidated VIEs without recourse to the primary beneficiaries of RMB34,000 and nil as of December 31, 2020 and 2021, respectively) | 34,000 | ||
Accounts and notes payable (including accounts and notes payable of the Consolidated VIEs without recourse to the primary beneficiaries of RMB182,669 and RMB352,478 (US$55,311) as of December 31, 2020 and 2021, respectively) | 493,506 | 77,442 | 289,387 |
Accrued expenses and other payables (including accrued expenses and other payables of the Consolidated VIEs without recourse to the primary beneficiaries of RMB981,961 and RMB 1,342,886 (US$210,728) as of December 31, 2020 and 2021, respectively) | 2,298,089 | 360,620 | 1,631,563 |
Advances from customers (including advances from customers of the Consolidated VIEs without recourse to the primary beneficiaries of RMB1,041,594 and RMB1,041,902 (US$163,497) as of December 31, 2020 and 2021, respectively) | 1,041,902 | 163,497 | 1,041,594 |
Deferred revenue (including deferred revenue of the Consolidated VIEs without recourse to the primary beneficiaries of RMB58,066 and RMB49,055 (US$7,698) as of December 31, 2020 and 2021, respectively) | 55,695 | 8,740 | 63,245 |
Income taxes payable (including income taxes payable of the Consolidated VIEs without recourse to the primary beneficiaries of RMB12,743 and RMB20,972 (US$3,291) as of December 31, 2020 and 2021, respectively) | 43,770 | 6,868 | 29,028 |
Amounts due to related parties (including amounts due to related parties of the Consolidated VIEs without recourse to the primary beneficiaries of RMB50,193 and RMB8,007 (US$1,256) as of December 31, 2020 and 2021, respectively) | 8,772 | 1,377 | 51,007 |
Current portion of long-term borrowings (including current portion of long-term borrowings of the Consolidated VIEs without recourse to the primary beneficiaries of RMB165,328 and RMB350,609 (US$55,018) as of December 31, 2020 and 2021, respectively) | 384,158 | 60,283 | 180,328 |
Current portion of finance lease liabilities (including current portion of finance lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries of RMB362,760 and RMB200,961(US$31,535) as of December 31, 2020 and 2021, respectively) | 244,032 | 38,294 | 403,843 |
Deferred government grants (including deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries of RMB2,074 and RMB2,074 (US$325) as of December 31, 2020 and 2021, respectively) | 2,074 | 325 | 2,074 |
Current portion of bonds payable | 1,943,619 | ||
Current portion of operating lease liabilities (including current portion of operating lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries of RMB427,114 and RMB579,391 (US$90,919) as of December 31, 2020 and 2021, respectively) | 607,997 | 95,408 | 452,272 |
Total current liabilities | 5,179,995 | 812,854 | 6,121,960 |
Non-current liabilities: | |||
Long-term borrowings (including long-term borrowings of the Consolidated VIEs without recourse to the primary beneficiaries of RMB570,135 and RMB1,480,709 (US$232,356) as of December 31, 2020 and 2021, respectively) | 2,215,015 | 347,584 | 886,996 |
Convertible promissory notes | 4,266,951 | 669,578 | 3,014,057 |
Non-current portion of finance lease liabilities (including non-current portion of finance lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries of RMB299,399 and RMB704,255 (US$110,513) as of December 31, 2020 and 2021, respectively) | 1,119,751 | 175,713 | 688,128 |
Unrecognized tax benefits (including unrecognized tax benefits of the Consolidated VIEs without recourse to the primary beneficiaries of RMB68,317 and RMB77,192 (US$12,113) as of December 31, 2020 and 2021, respectively) | 77,573 | 12,173 | 68,696 |
Deferred tax liabilities (including deferred tax liabilities of the Consolidated VIEs without recourse to the primary beneficiaries of RMB155,281 and RMB132,370 (US$20,772) as of December 31, 2020 and 2021, respectively) | 348,404 | 54,672 | 299,093 |
Deferred government grants (including deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries of RMB4,100 and RMB2,294 (US$360) as of December 31, 2020 and 2021, respectively) | 2,294 | 360 | 4,100 |
Amounts due to related parties (including amounts due to related parties of the Consolidated VIEs without resource to the primary beneficiaries of RMB747,746 and nil as of December 31, 2020 and 2021, respectively) | 747,746 | ||
Non-current portion of operating lease liabilities (including non-current portion of operating lease liabilities of the Consolidated VIEs without resource to the primary beneficiaries of RMB497,268 and RMB2,114,309 (US$331,781) as of December 31, 2020 and 2021, respectively) | 2,284,055 | 358,418 | 645,499 |
Total non-current liabilities | 10,314,043 | 1,618,498 | 6,354,315 |
Total liabilities | 15,494,038 | 2,431,352 | 12,476,275 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Additional paid-in capital | 15,198,055 | 2,384,906 | 13,083,119 |
Accumulated other comprehensive loss | (90,443) | (14,192) | (55,535) |
Statutory reserves | 74,462 | 11,685 | 74,462 |
Accumulated deficit | (7,590,382) | (1,191,097) | (7,235,113) |
Treasury stock | (349,523) | (54,848) | (349,523) |
Total VNET Group, Inc. shareholders' equity | 7,242,229 | 1,136,463 | 6,564,934 |
Noncontrolling interest | 358,772 | 56,299 | 332,546 |
Total shareholders' equity | 7,601,001 | 1,192,762 | 6,897,480 |
Total liabilities and shareholders' equity | 23,095,039 | 3,624,114 | 19,373,755 |
Class A Ordinary Shares | |||
Shareholders' equity: | |||
Ordinary shares | 56 | 8 | 44 |
Class B Ordinary Shares | |||
Shareholders' equity: | |||
Ordinary shares | ¥ 4 | $ 1 | 12 |
Series A Perpetual Convertible Preferred Shares | |||
Shareholders' equity: | |||
Series A perpetual convertible preferred shares (par value of US$0.00001 per share; 150,000 and 150,000 shares authorized; 150,000 and nil shares issued and outstanding as of December 31, 2020 and 2021, respectively) | ¥ 1,047,468 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)shares |
Cumulative adjustment for changes in accounting policy | ¥ 99,620 | $ 15,633 | ¥ 68,921 |
Short-term bank and other borrowings of the Consolidated VIEs without recourse to the primary beneficiaries | ¥ | 34,000 | ||
Accounts and notes payable of the Consolidated VIEs without recourse to the primary beneficiaries | 493,506 | 77,442 | 289,387 |
Accrued expenses and other payables of the Consolidated VIEs without recourse to the primary beneficiaries | 2,298,089 | 360,620 | 1,631,563 |
Advance from customers of the Consolidated VIEs without recourse to the primary beneficiaries | 1,041,902 | 163,497 | 1,041,594 |
Deferred revenue of the Consolidated VIEs without recourse to the primary beneficiaries | 55,695 | 8,740 | 63,245 |
Income tax payables of the Consolidated VIEs without recourse to the primary beneficiaries | 43,770 | 6,868 | 29,028 |
Amounts due to related parties of the consolidated VIEs without resource to the primary beneficiaries | 8,772 | 1,377 | 51,007 |
Long-term bank borrowings, current portion | 230,805 | 36,218 | 68,500 |
Current portion of finance lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries. | 244,032 | 38,294 | 403,843 |
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries | 2,074 | 325 | 2,074 |
Current portion of operating lease liabilities | 607,997 | 95,408 | 452,272 |
Long-term bank borrowings of the Consolidated VIEs without recourse to the primary beneficiaries | 1,891,797 | 296,864 | 605,119 |
Long-term bank borrowings of the Consolidated VIEs without recourse to the primary beneficiaries | 2,215,015 | 347,584 | 886,996 |
Non-current portion of finance lease liabilities | 1,119,751 | 175,713 | 688,128 |
Unrecognized tax benefits of the Consolidated VIEs without recourse to the primary beneficiaries | 77,573 | 12,173 | 68,696 |
Deferred tax liabilities of the Consolidated VIEs without recourse to the primary beneficiaries | 348,404 | 54,672 | 299,093 |
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries | 2,294 | 360 | 4,100 |
Amounts due to related parties related parties of the consolidated VIEs without resource to the primary beneficiaries | ¥ | 747,746 | ||
Non-current portion of operating lease liabilities | ¥ 2,284,055 | $ 358,418 | ¥ 645,499 |
Series A perpetual convertible preferred shares, par value | $ / shares | $ 0.00001 | ||
Series A perpetual convertible preferred shares, authorized | 150,000 | 150,000 | 150,000 |
Series A perpetual convertible preferred shares, shares issued | 0 | 0 | 150,000 |
Series A perpetual convertible preferred shares, shares outstanding | 0 | 0 | |
Variable Interest Entity, Primary Beneficiary | |||
Short-term bank and other borrowings of the Consolidated VIEs without recourse to the primary beneficiaries | ¥ | ¥ 0 | ¥ 34,000 | |
Accounts and notes payable of the Consolidated VIEs without recourse to the primary beneficiaries | 352,478 | $ 55,311 | 182,669 |
Accrued expenses and other payables of the Consolidated VIEs without recourse to the primary beneficiaries | 1,342,886 | 210,728 | 981,961 |
Advance from customers of the Consolidated VIEs without recourse to the primary beneficiaries | 1,041,902 | 163,497 | 1,041,594 |
Deferred revenue of the Consolidated VIEs without recourse to the primary beneficiaries | 49,055 | 7,698 | 58,066 |
Income tax payables of the Consolidated VIEs without recourse to the primary beneficiaries | 20,972 | 3,291 | 12,743 |
Amounts due to related parties of the consolidated VIEs without resource to the primary beneficiaries | 8,007 | 1,256 | 50,193 |
Long-term bank borrowings, current portion | 350,609 | 55,018 | 165,328 |
Current portion of finance lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries. | 200,961 | 31,535 | 362,760 |
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries | 2,074 | 325 | 2,074 |
Current portion of operating lease liabilities | 579,391 | 90,919 | 427,114 |
Long-term bank borrowings of the Consolidated VIEs without recourse to the primary beneficiaries | 1,480,709 | 232,356 | 570,135 |
Non-current portion of finance lease liabilities | 704,255 | 110,513 | 299,399 |
Unrecognized tax benefits of the Consolidated VIEs without recourse to the primary beneficiaries | 77,192 | 12,113 | 68,317 |
Deferred tax liabilities of the Consolidated VIEs without recourse to the primary beneficiaries | 132,370 | 20,772 | 155,281 |
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries | 2,294 | 360 | 4,100 |
Amounts due to related parties related parties of the consolidated VIEs without resource to the primary beneficiaries | ¥ | 0 | 747,746 | |
Non-current portion of operating lease liabilities | ¥ 2,114,309 | $ 331,781 | ¥ 497,268 |
Class A Ordinary Shares | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 | ||
Ordinary shares, shares authorized (in shares) | 1,199,790,000 | 1,199,790,000 | 1,199,790,000 |
Ordinary shares, shares issued (in shares) | 859,932,323 | 859,932,323 | 672,024,600 |
Ordinary shares, shares outstanding (in shares) | 859,932,323 | 859,932,323 | 672,024,600 |
Class B Ordinary Shares | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 | ||
Ordinary shares, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 |
Ordinary shares, shares issued (in shares) | 30,721,723 | 30,721,723 | 145,875,113 |
Ordinary shares, shares outstanding (in shares) | 30,721,723 | 30,721,723 | 145,875,113 |
Class C Ordinary Shares | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 | ||
Ordinary shares, shares authorized (in shares) | 60,000 | 60,000 | 60,000 |
Ordinary shares, shares issued (in shares) | 60,000 | 60,000 | 60,000 |
Ordinary shares, shares outstanding (in shares) | 60,000 | 60,000 | 60,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Net revenues | ||||
Hosting and related services | ¥ 6,189,801 | $ 971,315 | ¥ 4,829,019 | ¥ 3,788,967 |
Hosting and related services | (4,751,771) | (745,657) | (3,753,008) | (2,849,518) |
Gross profit | 1,438,030 | 225,658 | 1,076,011 | 939,449 |
Operating income (expenses) | ||||
Operating income | 7,619 | 6,862 | ||
Sales and marketing expenses | (255,400) | (40,078) | (235,012) | (206,309) |
Research and development expenses | (188,489) | (29,578) | (112,891) | (88,792) |
General and administrative expenses | (842,354) | (132,184) | (535,111) | (415,277) |
Allowance for doubtful debt | (18,399) | (2,887) | (2,393) | (1,557) |
Impairment of receivables from equity investees | (52,142) | |||
Impairment of loan receivable to potential investee | (2,807) | (440) | ||
Impairment of long-lived assets | (109,267) | (17,146) | (81,619) | |
Total operating expenses | (1,416,716) | (222,313) | (959,407) | (757,215) |
Operating profit | 21,314 | 3,345 | 116,604 | 182,234 |
Interest income | 31,897 | 5,005 | 31,711 | 54,607 |
Interest expense | (334,950) | (52,561) | (380,609) | (345,955) |
Loss on debt extinguishment | (18,895) | (18,895) | ||
Other income | 33,923 | 5,323 | 16,539 | 36,380 |
Other expenses | (22,700) | (3,562) | (36,912) | (5,632) |
Changes in the fair value of convertible promissory notes | 829,149 | 130,112 | (2,544,220) | |
Impairment of long-term investment | (3,495) | (548) | (13,030) | |
Foreign exchange (loss) gain, net | 110,036 | 17,267 | 228,125 | (27,995) |
(Loss) income before income taxes and (loss) gain from equity method investments | 665,174 | 104,381 | (2,581,792) | (125,256) |
Income tax expenses | (111,407) | (17,482) | (109,336) | (5,437) |
(Loss) gain from equity method investments | (38,666) | (6,068) | 10,869 | (50,553) |
Net (loss) income | 515,101 | 80,831 | (2,680,259) | (181,246) |
Net profit attributable to noncontrolling interest | (15,003) | (2,354) | (29,088) | (1,046) |
Net (loss) income attributable to the VNET Group, Inc. | ¥ 500,098 | $ 78,477 | ¥ (2,709,347) | ¥ (182,292) |
(Loss) earning per share: | ||||
Basic (in per share) | (per share) | ¥ 0.57 | $ 0.09 | ¥ (4.47) | ¥ (0.27) |
Diluted (in per share) | (per share) | ¥ (0.36) | $ (0.06) | ¥ (4.47) | ¥ (0.27) |
Shares used in (loss) earning per share computation: | ||||
Weighted average number of shares outstanding - basic (in shares) | shares | 865,352,554 | 865,352,554 | 716,888,919 | 668,833,756 |
Weighted-average number of shares outstanding-diluted (in shares) | shares | 911,591,433 | 911,591,433 | 716,888,919 | 668,833,756 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net (loss) income | ¥ 515,101 | $ 80,831 | ¥ (2,680,259) | ¥ (181,246) |
Other comprehensive loss, net of tax of nil | ||||
Foreign currency translation adjustments, net of tax of nil | (34,908) | (5,478) | (133,439) | (8,075) |
Other comprehensive loss, net of tax of nil | (34,908) | (5,478) | (133,439) | (8,075) |
Comprehensive (loss) income | 480,193 | 75,353 | (2,813,698) | (189,321) |
Comprehensive income attributable to noncontrolling interest | (15,003) | (2,354) | (29,088) | (1,046) |
Comprehensive (loss) income attributable to VNET Group, Inc. | ¥ 465,190 | $ 72,999 | ¥ (2,842,786) | ¥ (190,367) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||
Foreign currency translation adjustments, tax | ¥ 0 | ¥ 0 | ¥ 0 |
Other comprehensive loss, tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net (loss) income | ¥ 515,101,000 | $ 80,831,000 | ¥ (2,680,259,000) | ¥ (181,246,000) |
Adjustments to reconcile net loss to net cash generated from operating activities: | ||||
Foreign exchange loss (gain), net | (110,036,000) | (17,267,000) | (228,125,000) | 27,995,000 |
Depreciation and amortization | 1,267,578,000 | 198,911,000 | 988,983,000 | 772,205,000 |
Loss on disposal of property and equipment and intangible assets | 6,339,000 | 995,000 | 6,032,000 | 271,000 |
Allowance for doubtful debt | 18,399,000 | 2,887,000 | 2,393,000 | 1,557,000 |
Share-based compensation expense | 320,010,000 | 50,217,000 | 136,804,000 | 43,916,000 |
Impairment of receivables from equity investees | 52,142,000 | |||
Impairment of loan receivable to potential investee | 2,807,000 | 440,000 | ||
Deferred income tax (benefits) loss | 325,000 | 51,000 | (22,508,000) | (64,887,000) |
Loss (gain) from equity method investments | 38,666,000 | 6,068,000 | (10,869,000) | 50,553,000 |
Distribution received from an equity method investment | 17,723,000 | 20,200,000 | ||
Gain from disposal of equity investments without readily determinable fair value | (257,000) | (5,536,000) | ||
Gain from disposal of equity method investment | (17,853,000) | |||
Gain from disposal of subsidiaries | (17,153,000) | (2,692,000) | ||
Impairment of long-lived assets | 109,267,000 | 17,146,000 | 81,619,000 | |
Impairment of a long-term investment | 3,495,000 | 548,000 | 13,030,000 | |
Loss on debt extinguishment | 18,895,000 | 18,895,000 | ||
Lease expense | 557,865,000 | 87,541,000 | 375,112,000 | 205,787,000 |
Changes in the fair value of convertible promissory notes | (829,149,000) | (130,112,000) | 2,544,220,000 | |
Changes in operating assets and liabilities, net of effects of acquisitions and disposals: | ||||
Accounts and notes receivable | (533,323,000) | (83,690,000) | (171,608,000) | (156,134,000) |
Prepaid expenses and other current assets | 73,639,000 | 11,556,000 | (117,110,000) | (328,224,000) |
Amounts due from related parties | (17,502,000) | (2,746,000) | 37,468,000 | 11,352,000 |
Accounts and notes payables | 195,728,000 | 30,714,000 | (13,741,000) | 9,185,000 |
Unrecognized tax benefits | 8,877,000 | 1,393,000 | 66,253,000 | (4,234,000) |
Accrued expenses and other payables | 315,989,000 | 49,586,000 | 91,123,000 | 77,275,000 |
Deferred revenue | (7,550,000) | (1,185,000) | 5,620,000 | (129,000) |
Advances from customers | 307,000 | 48,000 | (27,098,000) | 398,655,000 |
Income taxes payable | 14,742,000 | 2,313,000 | (19,004,000) | 34,917,000 |
Deferred government grants | 93,000 | 15,000 | 500,000 | |
Amounts due to related parties | 7,431,000 | 1,166,000 | (5,605,000) | 6,044,000 |
Operating lease liabilities | (554,023,000) | (86,938,000) | (355,953,000) | (170,284,000) |
Net cash generated from operating activities | 1,387,922,000 | 217,796,000 | 714,243,000 | 802,922,000 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchases of property and equipment | (2,691,928,000) | (422,422,000) | (2,473,332,000) | (1,248,834,000) |
Purchases of intangible assets | (42,285,000) | (6,635,000) | (30,091,000) | (26,515,000) |
Purchases of land use rights | (91,744,000) | (14,397,000) | (24,460,000) | |
Proceeds from disposal of property and equipment | 10,220,000 | 1,604,000 | 1,777,000 | 2,484,000 |
Proceeds from disposal of land use right | 9,397,000 | |||
Proceed from disposal of subsidiaries, net | 5,802,000 | |||
Payments for short-term investments | (64,605,000) | (10,138,000) | (328,182,000) | (436,737,000) |
Payment of loan to a third party | (16,474,000) | (2,585,000) | (12,562,000) | |
Payment of loans to related parties | (75,872,000) | (11,906,000) | (62,531,000) | (66,704,000) |
Receipt of loans to third parties | 17,010,000 | 2,669,000 | 30,000,000 | |
Proceeds received from maturity of short-term investments | 347,520,000 | 54,533,000 | 397,575,000 | 312,198,000 |
Proceeds from disposal of long-term investments | 120,000 | 19,000 | 1,923,000 | 18,955,000 |
Payments for long-term investments | (5,000,000) | (785,000) | (9,330,000) | |
Prepayments and deposits for acquiring data center | (679,941,000) | (106,699,000) | (1,302,601,000) | (82,536,000) |
Collection of deposit for acquiring data center | 30,000,000 | 4,708,000 | 106,436,000 | 30,000,000 |
Payments for acquisitions, net of cash acquired | (509,634,000) | (79,973,000) | (369,924,000) | (148,067,000) |
Cash receipt from related parties due to restructuring | 140,738,000 | 67,563,000 | ||
Payment for other investment activities | (3,599,000) | |||
Net cash used in investing activities | (3,772,613,000) | (592,007,000) | (3,889,174,000) | (1,611,983,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Repayment of loan from a related party | (47,893,000) | |||
Proceeds from exercise of stock options, net of issuance cost | 472,000 | 74,000 | 3,029,000 | 429,000 |
Proceeds from issuance of ordinary shares | (131,000) | (21,000) | 2,680,421,000 | 572,000 |
Proceeds from Series A perpetual convertible preferred shares | 1,058,325,000 | |||
Payment of issuance cost of Series A perpetual convertible preferred shares | (9,374,000) | |||
Proceeds from long-term bank borrowings | 1,628,438,000 | 255,537,000 | 594,619,000 | |
Proceeds from short-term bank borrowings | 34,000,000 | 234,500,000 | ||
Proceeds from other long-term borrowings | 220,000,000 | 34,523,000 | 374,448,000 | 110,000,000 |
Repayment of long-term bank borrowings | (179,455,000) | (28,160,000) | (33,000,000) | (85,110,000) |
Repayment of short-term bank borrowings | (34,000,000) | (5,335,000) | (234,500,000) | (50,000,000) |
Repayment and deposits for other long-term borrowings | (175,123,000) | (27,481,000) | (125,825,000) | (19,399,000) |
Payments for purchase of property and equipment through finance leases | (579,660,000) | (90,961,000) | (376,232,000) | (333,614,000) |
Repayment of loan from third parties | (66,884,000) | (10,496,000) | (169,325,000) | (67,659,000) |
Contribution from noncontrolling interest in subsidiaries | 11,223,000 | 1,761,000 | 24,903,000 | 8,532,000 |
Prepayment for future share repurchase plan | (9,778,000) | |||
Payments for share repurchase and cancellation (Note 29) | (1,701,807,000) | (267,051,000) | (130,472,000) | (11,840,000) |
Repayment of notes payable | (1,945,620,000) | (305,310,000) | (95,565,000) | |
Profit distribution to noncontrolling interest | (272,000) | (43,000) | ||
Net cash (used in) generated from financing activities | 967,577,000 | 151,833,000 | 4,163,255,000 | 461,557,000 |
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | 9,150,000 | 1,438,000 | (229,064,000) | 43,660,000 |
Net increase (decrease) in cash and cash equivalents and restricted cash | (1,407,964,000) | (220,940,000) | 759,260,000 | (303,844,000) |
Cash and cash equivalents and restricted cash at beginning of year | 3,116,437,000 | 489,037,000 | 2,357,177,000 | 2,661,021,000 |
Total cash and cash equivalents and restricted cash | 1,708,473,000 | 268,097,000 | 3,116,437,000 | 2,357,177,000 |
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets | ||||
Cash and cash equivalents | 1,372,481,000 | 215,372,000 | 2,710,349,000 | 1,808,483,000 |
Restricted cash-current | 327,767,000 | 51,434,000 | 270,450,000 | 478,873,000 |
Restricted cash-non-current | 8,225,000 | 1,291,000 | 135,638,000 | 69,821,000 |
Total cash and cash equivalents and restricted cash | 1,708,473,000 | 268,097,000 | 3,116,437,000 | 2,357,177,000 |
Supplemental disclosures of cash flow information: | ||||
Income taxes paid | (82,995,000) | (13,024,000) | (102,330,000) | (41,684,000) |
Interest paid | (259,765,000) | (40,763,000) | (284,270,000) | (215,889,000) |
Interest received | 30,121,000 | 4,727,000 | 37,817,000 | 59,054,000 |
Supplemental disclosures of non-cash activities: | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 2,080,748,000 | 326,515,000 | 479,022,000 | 618,126,000 |
Purchase of property and equipment through finance leases | 284,007,000 | 44,567,000 | 217,190,000 | 357,573,000 |
Purchase of property and equipment included in accrued expenses and other payables | 321,140,000 | 50,394,000 | 591,187,000 | 344,248,000 |
Purchase of intangible assets included in accrued expenses and other payables | (129,000) | (20,000) | 2,862,000 | (1,642,000) |
2021 Notes | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance cost | 1,976,474,000 | |||
2025 Convertible promissory notes | ||||
Adjustments to reconcile net loss to net cash generated from operating activities: | ||||
Changes in the fair value of convertible promissory notes | 829,149 | 130,112 | 2,544,220 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance cost | 1,387,781,000 | |||
2026 Convertible promissory notes | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance cost | ¥ 3,790,396,000 | 594,796,000 | ||
Proceeds from issuance of notes | $ | $ 600,000 | |||
Convertible Notes Payable | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Repurchase and repayment of 2020 Notes (Note 17) | ¥ (915,543,000) | ¥ (1,148,092,000) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY ¥ in Thousands | Ordinary sharesCumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | Ordinary sharesCumulative Effect, Period of Adoption, Adjustment [Member]USD ($) | Ordinary sharesCNY (¥)shares | Ordinary sharesUSD ($)shares | Treasury stockCNY (¥) | Treasury stockUSD ($) | Additional paid-in capitalCumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | Additional paid-in capitalCNY (¥) | Additional paid-in capitalUSD ($) | Series A Perpetual Convertible Preferred ShareholdersCumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | Series A Perpetual Convertible Preferred ShareholdersCNY (¥) | Accumulated other comprehensive (loss) incomeCumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | Accumulated other comprehensive (loss) incomeCNY (¥) | Accumulated other comprehensive (loss) incomeUSD ($) | Statutory reservesCNY (¥) | Statutory reservesUSD ($) | Accumulated deficitCumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | Accumulated deficitCNY (¥) | Accumulated deficitUSD ($) | Total 21Vianet Group, Inc. shareholders' equityCumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | Total 21Vianet Group, Inc. shareholders' equityCNY (¥) | Total 21Vianet Group, Inc. shareholders' equityUSD ($) | Non-controlling interestCNY (¥) | Non-controlling interestUSD ($) | Cumulative Effect, Period of Adoption, Adjustment [Member]CNY (¥) | CNY (¥)shares | USD ($)shares |
Cumulative adjustment for changes in accounting policy | ¥ 46 | ¥ (337,683) | ¥ 9,141,494 | ¥ 85,979 | ¥ 42,403 | ¥ (3,838,032) | ¥ 5,094,207 | ¥ 268,977 | ¥ 5,363,184 | ||||||||||||||||||
Beginning Balance (in shares) at Dec. 31, 2018 | shares | 674,356,266 | 674,356,266 | |||||||||||||||||||||||||
Beginning balance at Dec. 31, 2018 | ¥ 46 | (337,683) | 9,141,494 | 85,979 | 42,403 | (3,838,032) | 5,094,207 | 268,977 | 5,363,184 | ||||||||||||||||||
Consolidated net loss | (182,292) | (182,292) | 1,046 | (181,246) | |||||||||||||||||||||||
Contribution from noncontrolling interest in a subsidiary | 8,532 | 8,532 | |||||||||||||||||||||||||
Foreign exchange difference | 24 | (8,075) | (8,051) | (8,051) | |||||||||||||||||||||||
Issuance of new shares | 572 | 572 | 572 | ||||||||||||||||||||||||
Number of shares issued | shares | 60,000 | 60,000 | |||||||||||||||||||||||||
Issuance of new shares for share option exercised and restricted share units vested (in shares) | shares | 304,200 | 304,200 | |||||||||||||||||||||||||
Share-based compensation | (60,048) | (60,048) | ¥ (60,048) | ||||||||||||||||||||||||
Appropriation of statutory reserves | 18,066 | (18,066) | |||||||||||||||||||||||||
Shares issued to depository bank (in shares) | shares | 6,700,002 | 6,700,002 | 6,700,002 | 6,700,002 | |||||||||||||||||||||||
Share repurchase | (11,840) | (11,840) | ¥ (11,840) | ||||||||||||||||||||||||
Share repurchase (in shares) | shares | (1,456,980) | (1,456,980) | (242,830) | (242,830) | |||||||||||||||||||||||
Share options exercised | 429 | 429 | ¥ 429 | ||||||||||||||||||||||||
Share options exercised (in shares) | shares | 33,869 | 33,869 | |||||||||||||||||||||||||
Restricted share units vested (shares) | shares | 5,136,306 | 5,136,306 | |||||||||||||||||||||||||
Settlement of share options and restricted share units with shares held by depository bank (in shares) | shares | (5,170,175) | (5,170,175) | |||||||||||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2019 | shares | 679,963,488 | 679,963,488 | |||||||||||||||||||||||||
Ending balance at Dec. 31, 2019 | ¥ 46 | (349,523) | 9,202,567 | 77,904 | 60,469 | (4,038,390) | 4,953,073 | 278,555 | 5,231,628 | ||||||||||||||||||
Cumulative adjustment for changes in accounting policy | 46 | (349,523) | 9,202,567 | 77,904 | 60,469 | (4,038,390) | 4,953,073 | 278,555 | 5,231,628 | ||||||||||||||||||
Consolidated net loss | (2,709,347) | (2,709,347) | 29,088 | (2,680,259) | |||||||||||||||||||||||
Contribution by noncontrolling interest | 24,903 | 24,903 | |||||||||||||||||||||||||
Foreign exchange difference | 133,439 | 133,439 | 133,439 | ||||||||||||||||||||||||
Issuance of new shares | ¥ 8 | 2,680,283 | 2,680,291 | 2,680,291 | |||||||||||||||||||||||
Number of shares issued | shares | 118,754,028 | 118,754,028 | |||||||||||||||||||||||||
Issuance of perpetual convertible preferred shares | ¥ (1,047,468) | (1,047,468) | (1,047,468) | ||||||||||||||||||||||||
Deemed distribution to perpetual convertible preferred shares | 470,643 | (470,643) | |||||||||||||||||||||||||
Cancellation of shares issued in prior years (in shares) | shares | (104,304) | (104,304) | |||||||||||||||||||||||||
Conversion of convertible promissory notes | ¥ 2 | 717,606 | 717,608 | 717,608 | |||||||||||||||||||||||
Conversion of convertible promissory notes (in shares) | shares | 23,710,140 | 23,710,140 | |||||||||||||||||||||||||
Share-based compensation | 139,641 | 139,641 | ¥ 139,641 | ||||||||||||||||||||||||
Appropriation of statutory reserves | 13,993 | (13,993) | |||||||||||||||||||||||||
Shares issued to depository bank (in shares) | shares | 0 | 0 | |||||||||||||||||||||||||
Share repurchase | (130,650) | (130,650) | ¥ (130,650) | ||||||||||||||||||||||||
Share repurchase (in shares) | shares | (4,363,639) | (4,363,639) | 0 | 0 | |||||||||||||||||||||||
Share options exercised | 3,029 | 3,029 | ¥ 3,029 | ||||||||||||||||||||||||
Share options exercised (in shares) | shares | 459,168 | 459,168 | |||||||||||||||||||||||||
Restricted share units vested (shares) | shares | 2,603,430 | 2,603,430 | |||||||||||||||||||||||||
Settlement of share options and restricted share units with shares held by depository bank (in shares) | shares | (3,062,598) | (3,062,598) | |||||||||||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2020 | shares | 817,959,713 | 817,959,713 | |||||||||||||||||||||||||
Ending balance at Dec. 31, 2020 | ¥ 56 | (349,523) | 13,083,119 | 1,047,468 | (55,535) | 74,462 | ¥ (2,740) | (7,235,113) | ¥ (2,740) | 6,564,934 | 332,546 | ¥ (2,740) | 6,897,480 | ||||||||||||||
Beginning Balance (in shares) at Dec. 31, 2019 | shares | 679,963,488 | 679,963,488 | |||||||||||||||||||||||||
Beginning balance at Dec. 31, 2019 | ¥ 46 | (349,523) | 9,202,567 | 77,904 | 60,469 | (4,038,390) | 4,953,073 | 278,555 | 5,231,628 | ||||||||||||||||||
Share issued to depository bank | 0 | ||||||||||||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2021 | shares | 890,714,046 | 890,714,046 | |||||||||||||||||||||||||
Ending balance at Dec. 31, 2021 | ¥ 3 | $ 54,507,816 | ¥ 60 | $ 9,000 | (349,523) | $ (54,848,000) | ¥ 1,076,208 | 15,198,055 | $ 2,384,906,000 | ¥ (1,047,468) | ¥ (106) | (90,443) | $ (14,192,000) | 74,462 | $ 11,685,000 | (28,637) | (7,590,382) | $ (1,191,097,000) | 7,242,229 | $ 1,136,463,000 | 358,772 | $ 56,299,000 | 7,601,001 | $ 1,192,762,000 | |||
Cumulative adjustment for changes in accounting policy | ¥ 56 | (349,523) | 13,083,119 | 1,047,468 | (55,535) | 74,462 | (2,740) | (7,235,113) | (2,740) | 6,564,934 | 332,546 | (2,740) | 6,897,480 | ||||||||||||||
Beginning Balance (in shares) at Dec. 31, 2020 | shares | 817,959,713 | 817,959,713 | |||||||||||||||||||||||||
Beginning balance at Dec. 31, 2020 | ¥ 56 | (349,523) | 13,083,119 | 1,047,468 | (55,535) | 74,462 | (2,740) | (7,235,113) | ¥ (2,740) | 6,564,934 | 332,546 | ¥ (2,740) | 6,897,480 | ||||||||||||||
Consolidated net loss | 500,098 | 500,098 | 15,003 | 515,101 | |||||||||||||||||||||||
Contribution by noncontrolling interest | 11,223 | 11,223 | |||||||||||||||||||||||||
Foreign exchange difference | (22,773) | (22,773) | (22,773) | ||||||||||||||||||||||||
Conversion of convertible promissory notes | ¥ 3 | 1,639,803 | 1,639,806 | 1,639,806 | |||||||||||||||||||||||
Conversion of convertible promissory notes (in shares) | shares | 42,401,010 | 42,401,010 | |||||||||||||||||||||||||
Issuance of new shares for share option exercised and restricted share units vested | ¥ 1 | (1) | |||||||||||||||||||||||||
Issuance of new shares for share option exercised and restricted share units vested (in shares) | shares | 16,680,000 | 16,680,000 | |||||||||||||||||||||||||
Share-based compensation | 264,854 | 264,854 | ¥ 264,854 | ||||||||||||||||||||||||
Shares issued to depository bank (in shares) | shares | (7,800,000) | (7,800,000) | 7,800,000 | 7,800,000 | |||||||||||||||||||||||
Appropriation of dividend | (272) | (272) | ¥ (272) | ||||||||||||||||||||||||
Share repurchase | ¥ (3) | (866,400) | (12,029) | (826,458) | (1,704,890) | (1,704,890) | |||||||||||||||||||||
Share repurchase (in shares) | shares | (48,634,493) | (48,634,493) | |||||||||||||||||||||||||
Share options exercised | ¥ 0 | 0 | 472 | 0 | 0 | 0 | 0 | 472 | 0 | 472 | |||||||||||||||||
Share options exercised (in shares) | shares | 86,862 | 86,862 | |||||||||||||||||||||||||
Restricted share units vested | ¥ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Restricted share units vested (shares) | shares | (5,929,122) | (5,929,122) | |||||||||||||||||||||||||
Settlement of share options and restricted share units with shares held by depository bank | ¥ 0 | 0 | 0 | ¥ 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||
Settlement of share options and restricted share units with shares held by depository bank (in shares) | shares | (6,015,984) | (6,015,984) | |||||||||||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2021 | shares | 890,714,046 | 890,714,046 | |||||||||||||||||||||||||
Ending balance at Dec. 31, 2021 | 3 | 54,507,816 | ¥ 60 | $ 9,000 | (349,523) | (54,848,000) | 1,076,208 | 15,198,055 | 2,384,906,000 | (1,047,468) | (106) | (90,443) | (14,192,000) | 74,462 | 11,685,000 | (28,637) | (7,590,382) | (1,191,097,000) | 7,242,229 | 1,136,463,000 | 358,772 | 56,299,000 | 7,601,001 | $ 1,192,762,000 | |||
Cumulative adjustment for changes in accounting policy | ¥ 3 | $ 54,507,816 | ¥ 60 | $ 9,000 | ¥ (349,523) | $ (54,848,000) | ¥ 1,076,208 | ¥ 15,198,055 | $ 2,384,906,000 | ¥ (1,047,468) | ¥ (106) | ¥ (90,443) | $ (14,192,000) | ¥ 74,462 | $ 11,685,000 | ¥ (28,637) | ¥ (7,590,382) | $ (1,191,097,000) | ¥ 7,242,229 | $ 1,136,463,000 | ¥ 358,772 | $ 56,299,000 | ¥ 7,601,001 | $ 1,192,762,000 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION | |
ORGANIZATION | 1. ORGANIZATION VNET Group, Inc. was incorporated under the laws of the Cayman Islands on October 16, 2009 and its principal activity is investment holding. On October 8, 2021, 21Vianet Group, Inc. changed its name to VNET Group, Inc. to promote brand awareness. The Company through its consolidated subsidiaries and variable interest entities (the “VIEs”) are principally engaged in the provision of hosting and related services. (a) As of December 31, 2021, the significant subsidiaries of the Company and significant consolidated variable interest entities are as follows: Entity Date of incorporation/ acquisition Place of incorporation Percentage of direct ownership by the Company Principal activities Direct Subsidiaries: VNET Group Limited (“VNET HK”) May 25, 2007 Hong Kong 100 % Investment holding VNET Data Center Co., Ltd. (“VNET China”) (1) June 12, 2000 PRC 100 % Provision of technical and consultation services and rental of long-lived assets VNET (Foshan) Technology Co., Ltd. (“FS Technology”) (1) December 20, 2011 PRC 100 % Trading of network equipment, provision of technical and internet data center services VNET Anhui Suzhou Technology Co., Ltd. (“SZ Technology”) (1) November 16, 2011 PRC 100 % Trading of network equipment VNET Hangzhou Information Technology Co., Ltd. (“HZ Technology”) (1) March 4, 2013 PRC 100 % Provision of internet data center services iJoy Holding Limited (“iJoy BVI”) April 30, 2013 British Virgin Islands 100 % Investment holding VNET Mobile Limited (“VNET Mobile”) April 30, 2013 Hong Kong 100 % Investment holding and provision of telecommunication services WiFire Group Inc. (“WiFire Group”) March 7, 2014 British Virgin Islands 100 % Investment holding Joytone Infotech Co., Ltd. (“SZ Zhuoaiyi”) (1) April 30, 2013 PRC 100 % Provision of technical and consultation services VNET Ventures Limited (“Ventures”) March 6, 2014 Hong Kong 100 % Investment holding Abitcool (China) Broadband Inc. (“aBitCool DG”) (1) June 13, 2014 PRC 100 % Dormant company Diyixian.com Limited (“DYX”) August 10, 2014 Hong Kong 100 % Provision of virtual private network services VNET Zhuhai Financial Leasing Co., Ltd. (“Zhuhai Financial Leasing”) (1) April 9, 2015 PRC 100 % Provision of finance leasing business services VNET DRP Investment Holdings Limited (“DRP investment”) January 13, 2017 Hong Kong 100 % Investment holding Shihua DC Investment Holdings Limited (“Shihua Investment”) March 14, 2017 Cayman Islands 51 % Investment holding VNET (Xi’an) Technology Co., Ltd. (“Xi’an Tech”) (1) July 5, 2012 PRC 51 % Provision of technical and internet data center services Foshan Zhuoyi Intelligence Data Co., Ltd. (“FS Zhuoyi”) (1) July 7, 2016 PRC 51 % Provision of internet data center services Beijing Hongyuan Network Technology Co., Ltd. (“BJ Hongyuan”) (1) December 8, 2014 PRC 51 % Provision of internet data center services Dermot Holdings Limited (“Dermot BVI”) (3) August 10, 2014 British Virgin Islands 100 % Investment holding Shihua DC Investment Holdings 2 Limited (“Shihua Holdings 2”) (4) August 20, 2019 Cayman Islands 100 % Investment holding Shanghai Waigaoqiao Free Trade Zone Gaogang Technology Co., Ltd. (“Waigaoqiao Technology”) (1)/(4) August 20, 2019 PRC 100 % Provision of internet data center services Shanghai Edge Connect Technology Co., Ltd. (“SH Edge Connect”) (1) November 3, 2020 PRC 100 % Provision of technical and internet data center services Beijing Jianghe Cloud Technology Co., Ltd. (“BJ JHC”) (1)/(8) November 17, 2020 PRC 100 % Provision of internet data center services Beijing Shuntou Green Energy Data Technology Co., Ltd. (“BJ ST”) (1)/(8) November 17, 2020 PRC 100 % Provision of internet data center services Jiwa Senlin (Beijing) Engineering Co., Ltd.( “Jiwa Engineering BJ”) (1) April 8, 2021 PRC 100 % Provision of internet data center services Beijing TenxCloud Technology Co., Ltd. (“BJ TenxCloud”) (1)/(9) July 15, 2021 PRC 100 % Provision of digitalization solution services Zhongke Zijing Technology Co., Ltd. (“Zhongke Zijing”) (1)/(10) August 16, 2021 PRC 100 % Provision of technical and consultation services Gu’an Junhui Network Technology Co., Ltd. (“Gu’an Junhui”) (1)/(10) August 16, 2021 PRC 100 % Provision of internet data center services 1. ORGANIZATION (CONTINUED) Entity Date of incorporation/ acquisition Place of incorporation Percentage of direct ownership by the Company Principal activities Direct Variable Interest Entities (the “VIEs”): Beijing Yiyun Network Technology Co., Ltd. (“VNET Technology”) (2) October 22, 2002 PRC — Provision of internet data center services Beijing iJoy Information Technology Co., Ltd. (“BJ iJoy”) (2) April 30, 2013 PRC — Provision of internet data center, content delivery network services WiFire Network Technology (Beijing) Co., Ltd. (“WiFire Network”) (2) April 1, 2014 PRC — Provision of telecommunication services Shanghai Zhiyan Yunwei Technology Co., Ltd. (“SH Zhiyan”) (2) December 12, 2020 PRC — Provision of telecommunication services Held directly by VNET Technology: Beijing VNET Broad Band Data Center Co., Ltd. (“VNET Beijing”) (2) March 15, 2006 PRC — Provision of internet data center services Shanghai Shilian Technology Co., Ltd. (“SH Shilian”) October 22, 2012 PRC — Provision of internet data center services Held directly by VNET Beijing: VNET (Xi’an) Information Outsourcing Industry Park Services Co., Ltd. (“Xi’an Sub”) (2) June 23, 2008 PRC — Provision of internet data center services Langfang Xunchi Computer Data Processing Co., Ltd. (“LF Xunchi”) (2) December 19, 2011 PRC — Dormant company Beijing Yilong Xinda Technology Co., Ltd. (“Yilong Xinda”) (2) February 28, 2013 PRC — Provision of internet data center services Beijing Yichengtaihe Investment Co., Ltd. (“BJ Yichengtaihe”) (2) September 30, 2014 PRC — Provision of internet data center services Guangzhou Lianyun Big Data Co., Ltd. (“GZ Lianyun”) (2) April 14, 2016 PRC — Provision of internet data center services Beijing Xianghu Yunlian Technology Co., Ltd. (“Xianghu Yunlian”) (2) November 7, 2018 PRC — Provision of internet data center services Shanghai Hujiang Songlian Technology Co., Ltd.(“Hujiang Songlian”) (2) December 17, 2018 PRC — Provision of internet data center services Beijing Shuhai Hulian Technology Co., Ltd. (“BJ Shuhai”) (2) January 2, 2019 PRC — Provision of internet data center services Nantong Chenghong Cloud Computing Co., Ltd. (“NT Chenghong”) (2) December 24, 2019 PRC — Provision of internet data center services Held directly by SH Shilian: Shanghai Shuzhong Investment Management Co., Ltd. (“SH Shuzhong”) (2)/(5) June 30, 2020 PRC — Provision of internet data center services Sanhe Shulifang Information Technology Co., Ltd. (“Shulifang”) (2)/(6) July 21, 2020 PRC — Provision of internet data center services Langfang Huahai Internet Technology Co., Ltd. (“LF Huahai”) (2)/(7) September 11, 2020 PRC — Provision of internet data center services Shanghai Hesheng Data System Co., Ltd. (“SH Hesheng”) (2)/(11) November 11, 2021 PRC — Provision of internet data center services 1. ORGANIZATION (CONTINUED) Entity Date of incorporation/ acquisition Place of incorporation Percentage of direct ownership by the Company Principal activities Held directly by SH Zhiyan: Shanghai Blue Cloud Technology Co., Ltd. (“SH Blue Cloud”) (2) March 21, 2013 PRC — Provision of Office 365 and Windows Azure platform services Shanghai Edge Blue Cloud Network Technology Co., Ltd. (“SH Edge Network”) (2)/(12) January 7,2021 PRC — Provision of internet data center services Held directly by DYX and LF Xunchi: Shenzhen Diyixian Telecommunication Co., Ltd. (“SZ DYX”) (1) August 10, 2014 PRC 20 % Provision of virtual private network services (1) Collectively, the “PRC Subsidiaries”. (2) Collectively, the “Consolidated VIEs”. (3) On August 10, 2014, the Company and its subsidiary, LF Xunchi, acquired 100% equity interest of Dermot BVI and its subsidiaries (collectively referred to as “Dermot Entities”). (4) On August 20, 2019, the Company through its subsidiary, DRP Investment, became the sole shareholder in Shihua Holding 2 and its subsidiaries. (5) On June 30, 2020, the Company through its subsidiary, SH Shilian, acquired 100% equity interest of SH Shuzhong (Note 4). (6) On July 21, 2020, the Company through its subsidiary, SH Shilian, acquired 100% equity interest of Shulifang (Note 4). (7) On September 11, 2020, the Company through its subsidiaries, SH Shilian and Linkcloud PTE. Ltd. (“Linkcloud”), acquired 100% equity interest of LF Huahai (Note 4). (8) On November 17, 2020, the Company through its subsidiary, VNET Saturn International Investment Limited (“VNET Saturn”) and Beijing Zhongshun Yongfeng Investment Consulting Co., Ltd. (“YF WFOE”), acquired 100% equity interest of BJ JHC and BJ ST (Note 4). (9) On July 15, 2021, the Company through its subsidiary, Shenzhen Cloud Native Technology Co., Ltd. (“SZ Cloud Native”), acquired 100% equity interest of BJ TenxCloud (Note 4). (10) On August 16, 2021, the Company through its subsidiary, Jiwa Engineering BJ, acquired 100% equity interest of Zhongke Zijing and Gu’an Junhui (Note 4). (11) On November 11, 2021, the Company through its subsidiary, SH Shilian, acquired 100% equity interest of SH Hesheng (Note 4). (12) On January 7, 2021, the Company, through SH Zhiyan, established SH Edge Network for internet data center services. 1. ORGANIZATION (CONTINUED) (b) PRC laws and regulations prohibit foreign ownership of internet and telecommunications-related businesses. To comply with these foreign ownership restrictions, the Company conducts its businesses in the PRC through its VIEs using contractual agreements (the “VIE Agreements”). The Company controls four significant VIEs, namely VNET Technology, BJ iJoy, WiFire Network and SH Zhiyan as of December 31, 2021. The key terms of the VIE Agreements in relation to BJ iJoy, WiFire Network and SH Zhiyan are substantially similar to VNET Technology, except for the terms separately disclosed as below. The equity interests of VNET Technology are legally held by certain PRC individuals, including Chen Sheng, the Executive Chairman of Board of Directors of the Company and Zhang Jun (collectively the “Nominee Shareholders”. The following is a summary of the key terms of the VIE Agreements of VNET Technology: Exclusive option agreement Pursuant to the exclusive option agreement entered into amongst VNET China and the Nominee Shareholders of VNET Technology, the Nominee Shareholders granted the Company or its designated party, an exclusive irrevocable option to purchase all or part of the equity interests held by the Nominee Shareholders in VNET Technology, when and to the extent permitted under the PRC laws, at an amount equal to RMB1. VNET Technology cannot declare any profit distributions or grant loans in any form without the prior written consent of VNET China. The Nominee Shareholders must remit in full any funds received from VNET Technology to VNET China, in the event any distributions are made by VNET Technology. The term of this agreement is 10 years 10 years SH Zhiyan has substantially similar exclusive option agreement except that the term of SH Zhiyan will terminate when SH Edge Connect, the primary beneficiary, purchases all of SH Zhiyan’s equity interest held by the Nominee Shareholder, Shanghai Rongyan Yunqi Technology Co., Ltd. (“SH Rongyan”). Exclusive technical consulting and service agreement Pursuant to the exclusive technical consulting and service agreement entered into between VNET China and VNET Technology, VNET China is to provide exclusive management consulting services and internet technical services in return for fees based on of a predetermined hourly rate of RMB1, which is adjustable at the sole discretion of VNET China. The term of this agreement is 10 years SH Zhiyan has substantially similar exclusive technical consulting and service agreement except that the term for SH Zhiyan would be in effect for an unlimited term unless terminated in writing by SH Edge Connect, the primary beneficiary of VIE SH Zhiyan. 1. ORGANIZATION (CONTINUED) Loan agreement In January 2011, VNET China and the Nominee Shareholders entered into a loan agreement. Pursuant to the agreement, VNET China has provided interest-free loan facilities of RMB7,000 and RMB3,000, respectively, to the Nominee Shareholders of VNET Technology for the purpose of providing capital to VNET Technology to develop its data center and telecommunications value-added business and related businesses. There is no fixed term for the loan. The Nominee Shareholders of SH Zhiyan did not enter into any loan agreement to fund the capital injected in SH Zhiyan. Power of attorney agreement The Nominee Shareholders entered into the power of attorney agreement whereby they granted an irrevocable proxy of the voting rights underlying their respective equity interests in VNET Technology to VNET China, which includes, but are not limited to, all the shareholders’ rights and voting rights empowered to the Nominee Shareholders by the company law and VNET Technology’s Articles of Association. The power of attorney remains valid and irrevocable from the date of execution, so long as each Nominee Shareholder remains as a shareholder of VNET Technology. The power of attorney agreement in relation to VNET Technology was reassigned to VNET Group, Inc. in September 2010. Share pledge agreement Pursuant to the share pledge agreement entered into amongst VNET China, VNET Technology and the Nominee Shareholders, the Nominee Shareholders have contemporaneously pledged all their equity interests in VNET Technology to guarantee the repayment of the loan under the Loan Agreement between VNET China and the Nominee Shareholders. On August 10, 2015, a Notification of Cancellation of share pledge registration was issued by Beijing Administration for Industry and Commerce, Pinggu Branch to cancel the registration of the share pledge by one of the Nominee Shareholders of VNET Technology, Zhang Jun. Such cancellation does not affect the effectiveness of the share pledge agreement and does not lessen the control imposed on the contractual parties of the Company. If VNET Technology breaches its respective contractual obligations under the Share pledge agreement and the loan agreement, VNET China, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. The Nominee Shareholders agreed not to transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their equity interests in VNET Technology without the prior written consent of VNET China. SH Zhiyan has substantially similar term the Nominee Shareholders of SH Zhiyan did not enter into any loan agreement to fund the capital injected in SH Zhiyan as mentioned above. 1. ORGANIZATION (CONTINUED) Financial support letter Pursuant to the financial support letter, VNET Group, Inc. agreed to provide unlimited financial support to VNET Technology for its operations and agreed to forego the right to seek repayment in the event VNET Technology is unable to repay such funding. SH Zhiyan has substantially similar term except that SH Edge Connect provides unlimited financial support to SH Zhiyan for its operations. Despite the lack of technical majority ownership, there exists a parent-subsidiary relationship between the Company and VNET Technology through the irrevocable power of attorney agreement, whereby the Nominee Shareholders effectively assigned all of their voting rights underlying their equity interests in VNET Technology to the Company. In addition, the Company, through VNET China, obtained effective control over VNET Technology through the ability to exercise all the rights of VNET Technology’s shareholders pursuant to the share pledge agreement and exclusive option agreement. The Company demonstrates its ability and intention to continue to exercise the ability to absorb substantially all of the expected losses through the financial support letter. In addition, the Company also demonstrates its ability to receive substantially all of the economic benefits of VNET Technology through VNET China through the consulting and service agreement. Thus, the Company is the primary beneficiary of VNET Technology and consolidates VNET Technology and its subsidiaries under Accounting Standards Codification (“ASC”) Subtopic 810-10, Consolidation: Overall In the opinion of the Company’s management and PRC counsel, (i) the ownership structure of the VIEs is in compliance with applicable PRC laws and regulations in any material respect, and (ii) each of the VIE Agreements is valid, legally binding and enforceable to each party of such agreements under the existing PRC laws and will not violate any PRC laws or regulations currently in effect. However, there are substantial uncertainties regarding the interpretation and application of current and future PRC laws and regulations. Accordingly, the Company cannot be assured that PRC regulatory authorities will not ultimately take a contrary view to its opinion. If the current ownership structure of the Company and its contractual arrangements with the VIEs are found to be in violation of any existing or future PRC laws and regulations, the Company may be required to restructure its ownership structure and operations in the PRC to comply with the changing and new PRC laws and regulations. To the extent that changes and new PRC laws and regulations prohibit the Company’s VIE arrangements from complying with the principles of consolidation, the Company would have to deconsolidate the financial position and results of operations of its VIEs. In the opinion of management, the likelihood of loss in respect of the Company’s current ownership structure or the contractual arrangements with the VIEs is remote based on current facts and circumstances. 1 ORGANIZATION (CONTINUED) (c) VIE disclosures Except for certain property with carrying amounts of RMB451,293 (US$70,818) that were pledged to secure banking borrowings granted to the Company (Note 14), there were no pledges or collateralization of the Consolidated VIEs’ assets. Creditors of the Consolidated VIEs have no recourse to the general credit of the primary beneficiaries of the Consolidated VIEs, and such amounts have been parenthetically presented on the face of the consolidated balance sheets. The Consolidated VIEs operate the data centers and own facilities including data center buildings, leasehold improvements, fiber optic cables, computers and network equipment, which are recognized in the Company’s consolidated financial statements. They also hold certain value-added technology licenses, registered copyrights, trademarks and registered domain names, including the official website, which are also considered as revenue-producing assets. However, none of such assets was recorded on the Company’s consolidated balance sheets as such assets were all acquired or internally developed with insignificant cost and expensed as incurred. In addition, the Company also hires data center operation and marketing workforce for its daily operations and such costs are expensed when incurred. The Company has not provided any financial or other support that it was not previously contractually required to provide to the Consolidated VIEs during the periods presented. 1. ORGANIZATION (CONTINUED) The following tables represent the financial information of the Consolidated VIEs as of December 31, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 before eliminating the intercompany balances and transactions between the Consolidated VIEs and other entities within the Company: As of December 31, 2020 2021 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 737,556 660,234 103,605 Restricted cash 260,450 317,199 49,775 Accounts receivable (net of allowance for doubtful debt of RMB67,632 and RMB82,654 (US$12,970) as of December 31, 2020 and 2021, respectively) 664,610 1,139,372 178,792 Prepaid expenses and other current assets 1,622,662 1,781,456 279,549 Amounts due from related parties 12,968 29,812 4,678 Total current assets 3,298,246 3,928,073 616,399 Non-current assets: Property and equipment, net 5,170,878 6,754,511 1,059,930 Intangible assets, net 342,288 382,173 59,971 Land use rights, net 46,719 45,476 7,136 Operating lease right-of-use assets, net 1,134,073 2,666,182 418,382 Goodwill 308,110 308,110 48,349 Restricted cash 27,719 7,825 1,228 Deferred tax assets, net 168,181 136,903 21,483 Amounts due from related parties 20,562 — — Other non-current assets 435,144 612,198 96,067 Long-term investments, net 172,593 133,280 20,915 Total non-current assets 7,826,267 11,046,658 1,733,461 Total assets 11,124,513 14,974,731 2,349,860 Current liabilities: Short-term bank borrowings 34,000 — — Accounts payable and notes payable 182,669 352,478 55,311 Accrued expenses and other payables 981,961 1,342,886 210,728 Advance from customers 1,041,594 1,041,902 163,497 Deferred revenue 58,066 49,055 7,698 Income tax payable 12,743 20,972 3,291 Amounts due to inter-companies (1) 4,248,422 5,203,974 816,617 Amounts due to related parties 50,193 8,007 1,256 Current portion of finance lease liabilities 362,760 200,961 31,535 Current portion of long-term borrowings 165,328 350,609 55,018 Current portion of deferred government grant 2,074 2,074 325 Current portion of operating lease liabilities 427,114 579,391 90,919 Total current liabilities 7,566,924 9,152,309 1,436,195 1. ORGANIZATION (CONTINUED) As of December 31, 2020 2021 RMB RMB US$ Non-current liabilities: Amounts due to inter-companies (1) 1,020,972 1,020,972 160,213 Amounts due to related parties 747,746 — — Long-term borrowings 570,135 1,480,709 232,356 Non-current portion of finance lease liabilities 299,399 704,255 110,513 Unrecognized tax benefits 68,317 77,192 12,113 Deferred tax liabilities 155,281 132,370 20,772 Non-current portion of deferred government grant 4,100 2,294 360 Non-current portion of operating lease liabilities 497,268 2,114,309 331,781 Total non-current liabilities 3,363,218 5,532,101 868,108 Total liabilities 10,930,142 14,684,410 2,304,303 For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net revenues 2,858,176 3,885,141 5,145,110 807,380 Net profit 111,592 73,748 92,594 14,530 For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net cash generated from operating activities 495,308 748,418 866,712 136,006 Net cash used in investing activities (1,247,764) (1,943,358) (2,695,707) (423,015) Net cash generated from financing activities 885,286 1,302,082 1,788,528 280,659 Net increase (decrease) in cash and cash equivalents and restricted cash 132,830 107,142 (40,467) (6,350) (1) Amounts due to inter-companies consist of intercompany payables to the other companies within the Company for the purchase of telecommunication resources and property and equipment on behalf of the Consolidated VIEs. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and the Consolidated VIEs for which the Company or a subsidiary of the Company is the primary beneficiary. All significant inter-company transactions and balances between the Company, its subsidiaries and the Consolidated VIEs are eliminated upon consolidation. Results of acquired subsidiaries and its Consolidated VIEs are consolidated from the date on which control is transferred to the Company. (c) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant estimates and assumptions reflected in the Company’s financial statements include, but are not limited to, determining the valuation allowance for deferred tax assets and determining the fair value of convertible promissory notes. Changes in facts and circumstances may result in revised estimates. Given the global economic climate and unforeseen effects from COVID-19 pandemic, the process of estimation has become more challenging. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. (d) Foreign currency The functional currency of the Company and its overseas subsidiaries is the United States dollar (“US$”), whereas the functional currency of the Company’s PRC subsidiaries and its Consolidated VIEs is the Chinese Renminbi (“RMB”) as determined based on the criteria of ASC Topic 830, Foreign Currency Matters The financial statements of the Company and its overseas subsidiaries are translated from the functional currency to the reporting currency, RMB. Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical costs in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of operations. The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in other comprehensive loss within the statements of comprehensive (loss) income. (e) Convenience translation Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB6.3726 on December 30, 2021, the last business day in fiscal year 2021, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ at such rate or at any other rate. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits placed with banks which are unrestricted as to withdrawal and use and have original maturities less than three months. All highly liquid investments with a stated maturity of 90 days or less from the date of purchase are classified as cash equivalents. (g) Restricted cash Restricted cash mainly represents amounts held by a few banks in escrow as security for credit facilities, the guarantee of compliance with the network and service requirements of the radio spectrum license awarded by the Hong Kong Telecommunication Authority, the deposits for finance lease, the deposits for a lawsuit with a third party, the deposits held in escrow for the advances received from end customers subscribing Office 365 and Windows Azure services (the disbursement of which shall be agreed by both Microsoft (China) Co., Ltd. (“Microsoft”) and the Company), the deposits for business operation, the deposits for loans. (h) Short-term investments All highly liquid investments with original maturities of greater than three months but less than twelve months, are classified as short-term investments. Interest income is included in earnings. (i) Accounts receivable and allowance for doubtful debt On January 1, 2020, the Company adopted ASC326, Financial Instruments-Credit Losses Pursuant to ASC 326, an allowance for credit losses for financial assets, including accounts receivable, carried at amortized cost to present the net amount expected to be collected as of the balance sheet date. Such allowance is based on credit losses expected to arise over the life of the asset’s contractual term, which includes consideration of prepayments. Assets are written off when the Company determines that such financial assets are deemed uncollectible and are recognized as a deduction from the allowance for credit losses. Expected recoveries of amounts previously written off, not to exceed the aggregate of the amount previously written off, are included in determining the necessary reserve at the balance sheet date. The Company pools financial assets based on similar risk characteristics to estimate expected credit losses. The Company estimates expected credit losses on financial assets individually when those assets do not share similar risk characteristics. The Company closely monitors its accounts receivable including timely account reconciliations, detailed reviews of past due accounts, updated credit limits, and monthly analysis of the adequacy of their reserve for credit losses. The Company utilizes a loss rate approach to determine lifetime expected credit losses for its financial assets. This method is used for calculating an estimate of losses based primarily on the Company’s historical loss experience. In determining loss rates, the Company evaluates information related to historical losses, adjusted for current conditions and further adjusted for the period of time that the Company can reasonably forecast. The Company has concluded that it can reasonably support a forecast period for the contractual life of its financial assets. Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider the following: the customer or vendor ‘s creditworthiness, changes in the policy and procedures to establish customer credit limits, changes in the payment terms of receivables, existence and effect of any concentration of credit and changes in the level of such concentrations, and the effects of other external forces such as the current and forecasted direction of the economic and business environment. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (j) Property and equipment Property and equipment are stated at cost less accumulated depreciation and any recorded impairment. Property and equipment acquired in a business combination are recognized initially at fair value at the data of acquisition. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Property 25-46 years Leasehold improvements Over the shorter of lease term or the estimated useful lives of the assets Optical fibers 10-20 years Computer and network equipment 1-10 years Office equipment 2-8 years Motor vehicles 2-8 years Repair and maintenance costs are charged to expense as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets. Retirements, sale and disposals of assets are recorded by removing the cost and accumulated depreciation with any resulting gain or loss reflected in the consolidated statements of operations. Property and equipment that are purchased or constructed which require a period of time before the assets are ready for their intended use are accounted for as construction-in-progress. Construction-in-progress is recorded at acquisition cost, including installation costs. Construction-in-progress is transferred to specific property and equipment accounts and commences depreciation when these assets are ready for their intended use. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (k) Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired in a business combination are recognized initially at fair value at the date of acquisition. Intangible assets with finite useful lives are amortized using a straight-line method. These amortization methods reflect the estimated pattern in which the economic benefits of the respective intangible assets are to be consumed. The Company has capitalized certain internal use software development costs in accordance with ASC Subtopic 350-40, Intangibles-Goodwill and Other: Internal-Use Software Intangible assets have weighted average useful lives from the date of purchase/ acquisition as follows: Purchased software 5.3 years Radio spectrum license 15 years Operating permits* 33.6 years Customer relationships* 8.3 years Licenses* 15 years Supplier relationships* 10 years Trade Names* 20 years Platform software* 5 years Non-complete agreements* 5 years Internal use software 3.7 years Customer contract* 6.2 years * Acquired in the acquisitions of subsidiaries. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (l) Leases Effective January 1, 2019, the Company adopted ASC Topic 842, Lease The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. Lastly, the Company elected the short-term lease exemption for all contracts with lease term of 12 months or less. At the commencement date of a lease, the Company determines the classification of the lease based on the relevant factors present and records a right-of-use (“ROU”) asset and lease liability for operating lease, and records property and equipment and finance lease liability for finance lease. ROU assets and property and equipment acquired through lease represent the right to use an underlying asset for the lease term, and operating lease liabilities and finance lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. If the rate implicit in the Company’s leases is not readily available, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental borrowing rate reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. ROU assets include any lease prepayments and are reduced by lease incentives. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease terms are based on the non-cancelable term of the lease and may contain options to extend the lease when it is reasonably certain that the Company will exercise that option. Leases with an initial lease term of 12 months or less are not recorded on the consolidated balance sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term. (m) Land use right The land use rights represent the operating lease prepayments for the rights to use the land in the PRC under ASC 842. Amortization of the prepayments is provided on a straight-line basis over the terms of the respective land use rights certificates. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (n) Long-term investments The Company’s long-term investments primarily consist of equity investments without readily determinable fair value, equity method investments. Pursuant to ASC Topic 321, Investments—Equity Securities Fair Value Measurements and Disclosures For equity investments measured at fair value with changes in fair value recorded in earnings, the Company does not assess whether those securities are impaired. For those equity investments that the Company elects to use the measurement alternative, the Company makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the entity has to recognize an impairment loss in net loss equal to the difference between the carrying value and fair value. Investments in equity investees represent investments in entities in which the Company can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Subtopic 323-10, Investments-Equity Method and Joint Ventures: Overall (o) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. The Company assesses goodwill for impairment in accordance with ASC Subtopic 350-20, Intangibles—Goodwill and Other: Goodwill The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative test in accordance with ASC 350-20. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the Company believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. The quantitative impairment test compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. Pursuant to ASC 350-20, in 2020 and 2021, the Company performed assessment and completed its annual impairment test for goodwill that has arisen out of its acquisitions. No impairment loss of goodwill was recognized for the years ended December 31, 2019, 2020 and 2021. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (p) Impairment of long-lived assets The Company evaluates long-lived assets, such as fixed assets and purchased or internally developed intangible assets with finite lives for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC Topic 360, Property, Plant and Equipment . When such events occur, the Company assesses the recoverability of the asset group based on the undiscounted future cash flows the asset group is expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset group plus net proceeds expected from disposition of the asset group, if any, is less than the carrying value of the asset group. If the Company identifies an impairment, the Company reduces the carrying amount of the asset group to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values and the impairment loss, if any, is recognized in the consolidated statements of operations. As of December 31, 2020 and 2021, due to continuing losses and physical condition changed, the Company recorded the long-lived assets impairment amounting to RMB81,619 and RMB109,267 (US$17,146) for relative asset groups, respectively, resulting from excess of the carrying amount of the asset group over the fair value of the asset group. The Company determined the fair value of the asset group using the income approach based on the discounted cash flows associated with the asset group. In 2020, the discounted cash flows were based on a six-year projection for the asset group, which is consistent with the remaining useful life of its principal asset. The discount rate of 13% was derived and used in the valuations which reflect the market assessment of the risks specific to the Company and its industry and is based on its weighted average cost of capital. In 2021, the Company provided full impairment for relative asset groups considering the fair value is immaterial. No impairment was recognized in other asset groups as there was no impairment indicator identified. The impairment loss reduced the carrying amount of the long-lived assets of the group on a pro-rata basis using the relative carrying amount of those assets except that the loss allocated to an individual long-lived asset of the group shall not reduce the carrying amount of that asset below its fair value whenever that fair value is determinable without undue cost and effort. The Company recorded impairment charges associated with its long-lived assets and acquired intangibles as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Impairment of property and equipment — 35,793 106,311 16,683 Impairment of intangible assets — 38,654 — — Impairment of other non-current assets — 7,172 2,956 463 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (q) Fair value of financial instruments The Company’s financial instruments include cash and cash equivalents, restricted cash, short-term investments, accounts receivable and payable, other receivables and payables, bonds payable, short-term and long-term borrowings, available-for-sale investments and convertible promissory notes. Other than the bonds payable, long-term borrowings and convertible promissory notes, the carrying values of these financial instruments approximate their fair values due to their short-term maturities. The carrying amounts of bonds payable, long-term borrowings and 2026 Convertible Notes (Note 19) approximate their fair values since they bear interest rates which approximate market interest rates. The Company carries the bonds payable at face value less unamortized debt discount and issuance cost on its consolidated balance sheets and measures the fair value for disclosure purposes only. The Company elected the fair value option of 2025 Convertible Notes (Note 19) when it initially recognized as financial liability as the fair value better represents the value of the underlying liabilities. The purchase consideration and contingent purchase considerations in both cash and shares are initially measured at fair value on the acquisition dates of the acquired businesses and the date of grant, respectively, and subsequently remeasured at the end of each reporting period with an adjustment for fair value recorded to the current period income/(expense). Convertible promissory notes are measured at fair value in accordance with ASC 825, Financial Instruments (r) Revenue recognition The Company provides hosting and related services including hosting of customers’ servers and networking equipment, connecting customers’ servers with internet backbones (“Hosting service”), virtual private network services providing encrypted secured connection to public internet (“VPN service”) and other value-added services and public cloud service through strategic partnership with Microsoft. The Company recognizes revenue as it satisfies a performance obligation when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC Topic 606, Revenue from Contracts with Customers Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. The Company recognizes revenue based on the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. The Company is a principal and records revenue on a gross basis when the Company is primarily responsible for fulfilling the service, has discretion in establishing pricing and controls the promised service before transferring that service to customers. Otherwise, the Company records revenue at the net amounts as commissions. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (r) Revenue recognition (continued) The Company’s revenue recognition policies are as follows: Hosting services are services that the Company dedicates data center space to house customers’ servers and networking equipment and provides tailored server administration services including operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery. The Company also provides interconnectivity services to connect customers with each other, internet backbones in China and other networks through Border Gateway Protocol, or BGP, network, or single-line, dual-line or multiple-line networks. Through the acquisition of BJ TenxCloud in 2021, the Company also provides digitalization solution services based on in-house developed cloud native platform to customers as an expanded value-added service of its Hosting services. Hosting services are typically provided to customers for a fixed amount over the contract service period and the related revenues are recognized on a straight-line basis over the term of the contract. For certain contracts where considerations are based on the usage of the Hosting services, the related revenues are recognized based on the consumption at the predetermined rate as the services are rendered throughout the contact term. For the digitalization solution services provided from 2021, the Company primarily fulfills its performance obligation by delivering the customized cloud native platform and the revenue is recognized at the point in time when the platform is accepted by the customer. The Company is a principal and records revenue for Hosting service on a gross basis. VPN services are services that the Company extends customers’ private networks by setting up secure and dedicated connections through the public internet. VPN services are provided to customers for a fixed amount over the contract service period and revenue are recognized on a straight-line basis over the term of the contract. The Company is a principal and records revenue for VPN service on a gross basis. The Company partners with Microsoft to provide Cloud services that allow enterprise and individual customers to run their applications over the internet using the IT infrastructure. Cloud services are generally charged by the Company to the end customers for a fixed amount or based on the actual usage of the cloud resources at predetermined rates over the subscription period, which in general is one year. The Company fulfils its performance obligation of facilitating Microsoft to provide the Cloud services to the end customers by providing, but not limited to, contract processing management, billing, payment collection, maintenance, help desk supports and certain IT infrastructure services. These are considered as a series of distinct services that are substantially the same and have the same pattern of transfer to the customer; therefore, they are accounted for as a single performance obligation that is satisfied over time. The corresponding consideration that the Company is entitled to is recognized as revenue using a time-based method since this best depicts the pattern of the control transfer. Revenue from Cloud services consists of monthly incentive revenues received from Microsoft upon completion of certain conditions and gross billing amount received from end customers net of considerations remitted by the Company to Microsoft. When the contract is modified to add distinct services to the single performance obligation for additional fees, such changes are accounted for prospectively as a termination of the old contract and the creation of a new contract. For certain arrangements, customers are required to pay the Company before the services are delivered. When either party to a revenue contract has performed, the Company recognizes a contract asset or a contract liability in the consolidated balance sheets, depending on the relationship between the Company’s performance and the customer’s payment. Contract liabilities were mainly related to fee received for Hosting services to be provided over the contract period, which were presented as deferred revenue on the consolidated balance sheets. Deferred revenue represented the Company’s obligation to transfer the goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. As of December 31, 2020 and 2021, the Company has deferred revenue amounting up to RMB63,245 and RMB55,695 (US$8,740), respectively. Revenue recognized from opening deferred revenue balance was RMB53,499 (US$8,395) for the year ended December 31, 2021. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (r) Revenue recognition (continued) The Company’s certain Hosting service contains lease and non-lease components. The Company elected to adopt the practical expedient which allows lessors to combine lease and non-lease components and account for them as one component if 1) the timing and pattern of transfer of the lease component and non-lease component is the same; 2) the lease component should be classified as an operating lease if it were accounted for separately. The combined component is accounted for in accordance with the current lease accounting guidance (“ASC 842”) if the lease component is predominant, and in accordance with the ASC 606 if the non-lease component is predominant. The Company has determined that the non-lease component is the predominant component in Hosting service. Therefore, the Company has accounted for the combined component in accordance with ASC 606. The Company does not disclose the value of unsatisfied performance obligations as the Company’s revenue contracts are (i) contracts with an original expected length of one year or less or (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. (s) Cost of revenues Cost of revenues consists primarily of telecommunication costs, depreciation of the Company’s long-lived assets, amortization of acquired intangible assets, maintenance, data center rental expenses directly attributable to the provision of the IDC services, payroll and other related costs of operations. (t) Advertising expenditures Advertising expenditures are expensed as incurred and are included in sales and marketing expenses, which amounted to RMB6,095, RMB7,779 and RMB7,272 (US$1,141) for the years ended December 31, 2019, 2020 and 2021, respectively. (u) Research and development expenses Research and development expenses consist primarily of payroll and related personnel costs for routine upgrades and related enhancements of the Company’s services and network. Research and development expenses are expensed as incurred except for costs to develop internal-use software or add significant upgrades and enhancements resulting in additional functionality to internal-use software that meet the capitalization criteria in accordance with ASC Subtopic 350-40, Intangibles-Goodwill and Other, Internal-Use Software (v) Government grants Government grants are provided by the relevant PRC municipal government authorities to subsidize the cost of certain research and development projects. The amount of such government grants is determined solely at the discretion of the relevant government authorities and there is no assurance that the Company will continue to receive these government grants in the future. Government grants are recognized when it is probable that the Company will comply with the conditions attached to them, and the grants are received. When the grant relates to an expense item, it is recognized in the consolidated statement of operations over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate, as a reduction of the related operating expense. When the grant relates to an asset, it is recognized as deferred government grants and released to the consolidated statement of operations in equal amounts over the expected useful life of the related asset, when operational, as a reduction of the related depreciation expense. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (w) Capitalized interest Interest costs are capitalized if they are incurred during the acquisition, construction or production of a qualifying asset and such costs could have been avoided if expenditures for these assets have not been made. As a result of total interest costs capitalized during the period, the interest expense for the years ended December 31, 2019, 2020 and 2021, was as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Interest expense and amortization cost of bonds payable 223,832 223,785 133,959 21,021 Interest expense and amortization cost of 2025 and 2026 Convertible Notes (Note 19) — 18,880 25,919 4,067 Interest expense on bank and other borrowings 14,212 39,424 103,925 16,308 Interest expense on finance leases 120,185 130,196 124,567 19,547 Total interest costs 358,229 412,285 388,370 60,943 Less: Total interest costs capitalized (12,274) (31,676) (53,420) (8,382) Interest expense, net 345,955 380,609 334,950 52,561 (x) Income taxes The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The carrying amount of deferred tax assets is reviewed on an entity-by-entity basis and is reduced by a valuation allowance to the extent that it is more-likely-than-not that the benefits of the deferred tax assets will not be realized in future years. The valuation allowance is determined based on the weight of positive and negative evidence including future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences, and verifiable tax planning. The estimated future taxable income involves significant assumptions of forecasted revenue growth that take into consideration of the Company’s historical financial results, its plan of expanding operating capacity as well as current industry trends. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date of the change in tax rate. All deferred income tax assets and liabilities are classified as non-current on the consolidated balance sheets. The Company applies ASC Topic 740, Accounting for Income Taxes The Company has elected to classify interest and penalties relat |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 12 Months Ended |
Dec. 31, 2021 | |
CONCENTRATION OF RISKS | |
CONCENTRATION OF RISKS | 3. CONCENTRATION OF RISKS (a) Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivable, other receivables and amounts due from related parties. As of December 31, 2020 and 2021, the aggregate amount of cash and cash equivalents, restricted cash and short-term investments of RMB1,419,855 and RMB1,410,271 (US$221,303), respectively, were held at major financial institutions located in the PRC, and US$303,824 and US$46,794 (RMB298,202), respectively, were deposited with major financial institutions located outside the PRC. Management believes that these financial institutions are of high credit quality and continually monitors the credit worthiness of these financial institutions. Historically, deposits in Chinese banks are secure due to the state policy on protecting depositors’ interests. However, China promulgated a new Bankruptcy Law in August 2006 that came into effect on June 1, 2007, which contains a separate article expressly stating that the State Council may promulgate implementation measures for the bankruptcy of Chinese banks based on the Bankruptcy Law. Under the new Bankruptcy Law, a Chinese bank may go into bankruptcy. In addition, since China’s concession to the World Trade Organization, foreign banks have been gradually permitted to operate in China and have been significant competitors against Chinese banks in many aspects, especially since the opening of the Renminbi business to foreign banks in late 2006. Therefore, the risk of bankruptcy of those Chinese banks in which the Company has deposits has increased. In the event of bankruptcy of one of the banks which holds the Company’s deposits, the Company is unlikely to claim its deposits back in full since the bank is unlikely to be classified as a secured creditor based on PRC laws. (b) Business, supplier, customer, and economic risk The Company participates in a relatively dynamic and competitive industry that is heavily reliant operation excellence of the services. The Company believes that changes in any of the following areas could have a material adverse effect on the Company’s future financial position, result of operations or cash flows: (i) 3. CONCENTRATION OF RISKS (CONTINUED) (b) Business, supplier, customer, and economic risk (continued) (ii) (iii) (iv) (v) 3. CONCENTRATION OF RISKS (CONTINUED) (c) Currency convertibility risk The Company transacts substantially all its business in RMB, which is not freely convertible into foreign currencies. On January 1, 1994, the PRC government abolished the dual-rate system and introduced a single rate of exchange as quoted daily by the People’s Bank of China (the “PBOC”). However, the unification of the exchange rates does not imply that the RMB may be readily convertible into US$ or other foreign currencies. All foreign exchange transactions continue to take place either through the PBOC or other banks authorized to buy and sell foreign currencies at the exchange rates quoted by the PBOC. Approval of foreign currency payments by the PBOC or other institutions requires submitting a payment application form together with suppliers’ invoices, shipping documents and signed contracts. (d) Foreign currency exchange rate risk From July 21, 2005, the RMB is permitted to fluctuate within a narrow and managed band against a basket of certain foreign currencies. The depreciation (appreciation) of the RMB against US$ was approximately 1.6%, (6.5%) and (2.3%) in the years ended December 31, 2019, 2020 and 2021, respectively. (e) Interest rate risk The Company is exposed to interest rate risk on its interest-bearing assets and liabilities. As part of its asset and liability risk management, the Company reviews and takes appropriate steps to manage its interest rate exposures on its interest-bearing assets and liabilities. The Company has not been exposed to material risks due to changes in market interest rates, and not used any derivative financial instruments to manage the interest risk exposure during the periods presented. |
ACQUISITION AND DISPOSAL OF SUB
ACQUISITION AND DISPOSAL OF SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2021 | |
ACQUISITION AND DISPOSAL OF SUBSIDIARIES | |
ACQUISITION AND DISPOSAL OF SUBSIDIARIES | 4. ACQUISITION AND DISPOSAL OF SUBSIDIARIES Acquisitions in 2021 BJ TenxCloud On July 15, 2021,to strengthen the Company’s leading position in carrier- and cloud-neutral IDC services, the Company through its wholly-owned subsidiary, SZ Cloud Native, acquired 100% of the equity interests in BJ TenxCloud from third party selling shareholders, for a total consideration of RMB 414,743 (US$ 65,082 ), which consisted of cash consideration of RMB 199,790 (US$ 31,351 ) and share-settled liabilities with estimated fair value of RMB 214,953 (US$ 33,731 ) as of July 15, 2021. The estimated fair value of share-settled liabilities was RMB 214,577 (US$ 33,672 ) as of December 31, 2021, which was included as share consideration due to the original shareholders for business combination in accrued expenses and other payables of the Company’s consolidated balance sheet. BJ TenxCloud primarily provides cloud native applications and data platform services. As BJ TenxCloud is in operations and possess all the elements that are necessary to conduct normal operations as a business, such acquisition is accounted for as a business combination. In addition, the Company is obligated to pay cash of RMB70,000 (US$10,985) and to issue various numbers of the shares of the Company or its subsidiary with estimated fair value of RMB167,342 (US$20,260) as of December 31, 2021 to certain selling shareholders who will remain as the key employees of BJ TenxCloud, determinable based on achievements of the financial and operational targets by BJ TenxCloud during various post-acquisition periods. As such cash and share-based payments will be forfeited if these key employees cease their employments with the Company, the Company recognized these payments as compensation costs over the requisite service periods ranging from 12 months to 36 months . The Company classified the share-based payments as liability classified share-based payments of RMB55,156 (US$8,655) as of December 31, 2021, which are included in accrued expenses and other payables of the Company’s consolidated balance sheet and are remeasured at fair value through earnings. The related compensation for post-acquisition services provided by the employees is accounted as compensation and recorded in the Company’s consolidated statements of operations (Note 24(c)). The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of acquisition: RMB US$ Property and equipment, net 470 74 Operating lease right-of-use assets, net 2,376 373 Technology platform (Note 9) 27,800 4,362 Customer relationship (Note 9) 19,000 2,982 Deferred tax assets 11,097 1,741 Other current assets 52,328 8,210 Total assets acquired 113,071 17,742 Other current liabilities (29,395) (4,612) Operating lease liabilities (2,500) (392) Deferred tax liabilities (11,097) (1,741) Total liabilities assumed (42,992) (6,745) Net assets acquired 70,079 10,997 Purchase consideration 414,743 65,082 Goodwill 344,664 54,085 The revenue and net profit of BJ TenxCloud since the acquisition date included in the consolidated statement of operations for the year ended December 31, 2021 were RMB91,038 (US$14,286) and RMB9,351 (US$1,467), respectively. The goodwill, which is not tax deductible, is primarily attributable to synergies expected to be achieved from the acquisition. The pro forma results of revenue and earnings of the acquiree as if the combinations occurred as of the beginning of the comparable prior annual reporting period of the acquiree were not presented because the effects of the business combination was not significant to the Company’s consolidated results of operations. 4. ACQUISITION OF SUBSIDIARIES (CONTINUED) Acquisitions in 2021 (continued) Zhongke Zijing On August 16, 2021, the Company through its subsidiary, Jiwa Engineering BJ acquired 100% of the equity interests in Zhongke Zijing at a total cash consideration of RMB151,884 (US$23,834). The purpose of the acquisition is to establish data center with the acquired property. As Zhongke Zijing does not possess all the elements that are necessary to conduct normal operations as a business and had not yet commenced operations, such acquisition is accounted for as an acquisition of assets. The carrying amounts of the net identifiable assets of Zhongke Zijing as of the date of acquisition were as follows: RMB US$ Net assets acquired: Operating permits (Note 9) 203,586 31,947 Land use rights, net (Note 10) 36,013 5,651 Other non-current assets 7,349 1,154 Cash and cash equivalents 3 — Other current assets 21,017 3,298 Other current liabilities (65,125) (10,219) Deferred tax liabilities (50,959) (7,997) Total consideration in cash 151,884 23,834 SH Hesheng On November 11, 2021, the Company through its subsidiary, SH Shilian acquired 100% of the equity interests in SH Hesheng at a total cash consideration of RMB137,557 (US$21,586). The purpose of the acquisition is to acquire the assets and operating permits. As SH Hesheng does not possess all the elements that are necessary to conduct normal operations as a business and had not yet commenced operations, such acquisition is accounted for as an acquisition of assets. The carrying amounts of the net identifiable assets of SH Hesheng as of the date of acquisition were as follows: RMB US$ Net assets acquired: Operating permits (Note 9) 27,646 4,338 Property and equipment, net 94,148 14,774 Operating lease right-of-use assets, net 20,929 3,284 Other non-current assets 872 136 Cash and cash equivalents 423 66 Other current assets 25,646 4,025 Operating lease liabilities (20,292) (3,184) Other current liabilities (962) (150) Deferred tax liabilities (10,853) (1,703) Total consideration in cash 137,557 21,586 4. ACQUISITION OF SUBSIDIARIES (CONTINUED) Acquisitions in 2020 BJ JHC On November 17, 2020, the Company through its subsidiaries, YF WOFE and 21Vianet Saturn, acquired 100% equity interests in Splendid Oriental Limited (“Splendid”) which controls BJ JHC and its subsidiary BJ ST at a total cash consideration of RMB432,015. Among which, RMB200,000 is refundable if certain conditions are not achieved and is accounted as contingent consideration. The purpose of the transaction is to establish a new data center. As Splendid, BJ JHC and BJ ST do not possess all the elements that are necessary to conduct normal operations as a business and had not yet commenced operations, such acquisition is accounted for as an acquisition of assets. As of December 31, 2021, certain conditions in relation to RMB200,000 are not met and the corresponding asset is not recognized until the contingency is resolved. The carrying amount of the net identifiable assets were as follows: RMB Net assets acquired: Property and equipment, net 279,556 Operating permits (Note 9) 110,418 Customer contract (Note 9) 33,208 Operating lease right-of-use assets, net 112,398 Deferred tax assets 3,150 Other non-current assets 4,428 Cash and cash equivalents 30,319 Other current assets 8,833 Other current liabilities (90,805) Operating lease liabilities (120,120) Finance lease liabilities (84,082) Deferred tax liabilities (55,288) Total consideration in cash 232,015 4. ACQUISITION OF SUBSIDIARIES (CONTINUED) Acquisitions in 2020 (continued) SH Shuzhong On June 30, 2020, as part of its business strategy to expand the existing hosting service, the Company through its subsidiary, SH Shilian, acquired 100% of the equity interests in SH Shuzhong which primarily provides internet data center service from a third party selling shareholder, for a total cash consideration of RMB36,667. As SH Shuzhong is in operations and possess all the elements that are necessary to conduct normal operations as a business, such acquisition is accounted for as business combination. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of acquisition: RMB Property and equipment, net 348,475 Operating lease right-of-use assets, net 81,034 Customer contract (Note 9) 33,500 Purchased software 23 Deferred tax assets 14,848 Other non-current assets 1,685 Other current assets 44,774 Total assets acquired 524,339 Other current liabilities (406,932) Operating lease liabilities (45,034) Deferred tax liabilities (41,169) Total liabilities assumed (493,135) Net assets acquired 31,204 Purchase consideration 36,667 Goodwill 5,463 4. ACQUISITION AND DISPOSAL OF SUBSIDIARIES (CONTINUED) Acquisitions in 2020 (continued) Shulifang On June 24, 2020, the Company through its subsidiary, SH Shilian, entered into a share purchase agreement to acquire 100% equity interests in Shulifang at a total cash consideration of RMB43,000 in installment upon achievement of certain conditions which is accounted as contingent consideration and the corresponding asset will only be recognized when the contingency is resolved. The purpose is to establish a new data center. As Shulifang does not possess all the elements that are necessary to conduct normal operations as a business and had not yet commenced operations, such acquisition is accounted for as an acquisition of assets. The transaction was closed on July 21, 2020. As of December 31, 2020 and 2021, the condition of the last contingent consideration amounted to RMB10,000 were not yet met. The contingent consideration obligation is not accounted for until the contingency is resolved. Carrying amount of the net identifiable assets of Shulifang as of the acquisition date were as follows: RMB Net assets acquired: Operating permits (Note 9) 45,134 Operating lease right-of-use assets, net 15,206 Other non-current assets 15,409 Cash and cash equivalents 53 Other current assets 601 Operating lease liabilities (15,206) Other current liabilities (16,913) Deferred tax liabilities (11,284) Total consideration in cash 33,000 4. ACQUISITION AND DISPOSAL OF SUBSIDIARIES (CONTINUED) Acquisitions in 2 020 (continued) LF Huahai On September 11, 2020 and October 28, 2020, the Company through its subsidiaries, SH Shilian and VNET Venus International Investment Limited (“VNET Venus”), acquired 69.93% and 30.07% equity interests in LF Huahai at a total cash consideration of RMB59,500 and RMB25,500, respectively. The purpose is to establish a new data center with the acquired property. As LF Huahai does not possess all the elements that are necessary to conduct normal operations as a business and had not yet commenced operations, such acquisition is accounted for as an acquisition of assets. Carrying amount of the net identifiable assets of LF Huahai as of the acquisition date were as follows: RMB Net assets acquired: Operating permits (Note 9) 119,352 Operating lease right-of-use assets, net 183,174 Other non-current assets 27,524 Cash and cash equivalents 173 Other current assets 4,088 Other current liabilities (35,600) Operating lease liabilities (183,873) Deferred tax liabilities (29,838) Total consideration in cash 85,000 |
ACCOUNTS AND NOTES RECEIVABLE,
ACCOUNTS AND NOTES RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS AND NOTES RECEIVABLE, NET | |
ACCOUNTS AND NOTES RECEIVABLE, NET | 5. ACCOUNTS AND NOTES RECEIVABLE, NET Accounts and notes receivable and the allowance for doubtful debt consisted of the following: As of December 31, 2020 2021 RMB RMB US$ Accounts receivable 913,902 1,504,669 236,115 Notes receivable 2,252 948 150 Allowance for doubtful debt (68,921) (99,620) (15,633) 847,233 1,405,997 220,632 As of December 31, 2020 and 2021, all accounts and notes receivable were due from third party customers. An analysis of the allowance for doubtful debt was as follows: For the years ended December 31, 2020 2021 RMB RMB US$ Balance at beginning of the year 67,828 68,921 10,816 Cumulative adjustment for changes in accounting policy 2,740 — — Additional due to business combination — 16,256 2,251 Additional provision charged to expense 2,393 14,990 2,352 Write-off of accounts receivable (4,040) (547) (86) Balance at the end of the year 68,921 99,620 15,633 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 6. SHORT-TERM INVESTMENTS Short-term investments consisted of the following as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB US$ Time deposits 285,872 — — The Company recorded interest income related to its short-term investments amounting to RMB8,687, RMB5,712 and RMB894 (US$140) for the years ended December 31, 2019, 2020 and 2021, respectively, in the consolidated statements of operations. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of December 31, 2020 2021 RMB RMB US$ Prepaid expenses 884,156 942,990 147,975 Tax recoverable 879,237 964,262 151,313 Deposits 31,774 68,887 10,809 Loan to third parties 19,107 17,492 2,745 Staff advances 968 1,561 245 Interest receivables 1,484 728 114 Others 49,458 53,991 8,472 1,866,184 2,049,911 321,673 Prepaid expenses mainly represented the unamortized portion of prepayments made to Microsoft for the cloud computing services, the prepayments to telecommunication operators for bandwidth, data centers or cabinets and the prepayments for office expense. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
PROPERTY AND EQUIPMENT, NET | 8. PROPERTY AND EQUIPMENT, NET Property and equipment, including those held under finance leases, consisted of the following: As of December 31, 2020 2021 RMB RMB US$ At cost: Property 1,511,429 1,778,377 279,066 Leasehold improvements 2,609,828 3,302,883 518,294 Computer and network equipment 4,899,577 5,923,149 929,471 Optical fibers 142,723 142,723 22,396 Office equipment 26,845 32,561 5,110 Motor vehicles 2,668 3,959 621 9,193,070 11,183,652 1,754,958 Less: Accumulated depreciation (3,285,138) (4,206,943) (660,160) 5,907,932 6,976,709 1,094,798 Construction-in-progress 2,234,286 3,239,407 508,334 Impairment (35,793) (123,697) (19,411) Property and equipment, net 8,106,425 10,092,419 1,583,721 8. PROPERTY AND EQUIPMENT, NET (CONTINUED) Depreciation expense was RMB696,528, RMB908,387 and RMB1,164,725 (US$182,771) for the years ended December 31, 2019, 2020 and 2021, respectively, and were included in the following captions: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Cost of revenues 644,108 850,746 1,107,655 173,815 Sales and marketing expenses 2,107 2,399 963 151 General and administrative expenses 30,110 29,711 23,186 3,639 Research and development expenses 20,203 25,531 32,921 5,166 696,528 908,387 1,164,725 182,771 The carrying amounts of the Company’s property and equipment held under finance leases at respective balance sheet dates were as follows: As of December 31, 2020 2021 RMB RMB US$ Property 921,970 993,158 155,848 Computer and network equipment 1,019,588 823,625 129,245 Optical fibers 137,924 137,924 21,643 2,079,482 1,954,707 306,736 Less: Accumulated depreciation (661,796) (629,927) (98,849) 1,417,686 1,324,780 207,887 Construction-in-progress 92,545 — — Impairment (17,613) (17,377) (2,727) 1,492,618 1,307,403 205,160 Depreciation of property, computer and network equipment and optical fibers under finance leases was RMB216,664, RMB255,458 and RMB274,052 (US$43,005) for the years ended December 31, 2019, 2020 and 2021, respectively. The carrying amounts of property and equipment pledged by the Company to secure borrowings (Note 14) granted to the Company at the respective balance sheet dates were as follows: As of December 31, 2020 2021 RMB RMB US$ Property 264,784 253,979 39,855 Leasehold improvements 90,947 160,959 25,258 Computer and network equipment 40,871 159,909 25,093 Office equipment — 660 104 Construction-in-progress 238,771 — — |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS, NET | |
INTANGIBLE ASSETS, NET | 9. INTANGIBLE ASSETS, NET The following table presented the Company’s intangible assets as of the respective balance sheet dates: Radio Internal Purchased spectrum Operating Technology Customer Supplier Trade Customer Non-Complete use software license Permits Platform relationships Licenses relationships names contract Agreement software Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Intangible assets,Cost December 31, 2020 154,617 126,049 375,283 10,250 238,184 5,772 39,053 116,266 109,717 1,800 47,480 1,224,471 Accumulated Amortization 2020 (112,715) (73,543) (8,325) (10,250) (174,998) (2,658) (28,132) (37,302) (46,611) (1,800) (31,288) (527,622) Impairment — (38,654) — — — — — — — — — (38,654) Intangible assets, Net December 31, 2020 41,902 13,852 366,958 — 63,186 3,114 10,921 78,964 63,106 — 16,192 658,195 Intangible assets, Cost December 31, 2021 177,421 123,167 625,129 38,050 257,183 5,772 39,053 116,266 109,717 1,800 58,902 1,552,460 Accumulated Amortization 2021 (122,239) (74,056) (24,830) (12,777) (203,356) (3,043) (31,206) (43,115) (55,897) (1,800) (42,036) (614,355) Impairment — (37,770) — — — — — — — — — (37,770) Intangible assets, Net December 31, 2021 55,182 11,341 600,299 25,273 53,827 2,729 7,847 73,151 53,820 — 16,866 900,335 Intangible assets, Net December 31, 2021 (US$) 8,659 1,780 94,200 3,966 8,447 428 1,231 11,479 8,446 — 2,646 141,282 Radio spectrum license represented the spectrum license awarded by the Hong Kong Telecommunication Authority. Operating permits relate to the government authorized high-capacity utilities from the assets acquisitions (Note 4). Customer relationships relate to the relationships that arose as a result of existing customer agreements acquired and is derived from the estimated net cash flows that are expected to be derived from the expected renewal of these existing customer agreements after subtracting the estimated net cash flows from other contributory assets. Licenses mainly represented the telecommunication service license in relation to virtual private network services. Supplier relationships relate to the relationships that arose as a result of existing bandwidth supply agreements with certain network operators, which were valued using a replacement cost method given the relative ease of replacement. Trade names mainly relate to the trade names of Dermot Entities. Customer contract related to existing customer agreements acquired and is derived from the estimated net cash flows that are expected to be derived over the contractual period of the existing customer agreements after subtracting the estimated net cash flows from other contributory assets. Technology platform relates to the TenxCloud Cloud Native Application Platform and Kubedata platform from acquisition of BJ TenxCloud (Note 4) in 2021 and platform software from acquisition of iJoy BVI in 2013. 9. INTANGIBLE ASSETS, NET (CONTINUED) The intangible assets are amortized using the straight-line method, which is the Company’s best estimate of how these assets will be economically consumed over their respective estimated useful lives ranging from 1 to 36 years. Amortization expenses were approximately RMB71,028, RMB72,690 and RMB94,751 (US$14,868) for the years ended December 31, 2019, 2020 and 2021, respectively. The annual estimated amortization expenses for the intangible assets for each of the next five years are as follows: RMB US$ 2022 101,092 15,864 2023 84,724 13,295 2024 53,751 8,435 2025 33,932 5,325 2026 34,956 5,485 308,455 48,404 |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Dec. 31, 2021 | |
LAND USE RIGHTS, NET | |
LAND USE RIGHTS, NET | 10. LAND USE RIGHTS, NET Land use rights held by the Company represent operating lease prepayments and are amortized over the remaining term of the respective rights. As of December 31, 2020 2021 RMB RMB US$ Cost 278,138 368,101 57,763 Accumulated amortization (22,765) (30,866) (4,843) Land use rights, net 255,373 337,235 52,920 The carrying amounts of land use rights pledged by the Company to secure borrowings (Note 14) granted to the Company at the respective balance sheet dates were as follows: As of December 31, 2020 2021 RMB RMB US$ Land use rights 141,000 135,821 21,313 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL | |
GOODWILL | 11. GOODWILL The changes in the carrying amount of goodwill were as follows: For the years ended December 31, 2020 2021 RMB RMB US$ Balance as of January 1 989,530 994,993 156,136 Additions 5,463 344,664 54,085 Balance as of December 31 994,993 1,339,657 210,221 As of December 31, 2019, 2020 and 2021, the Company has performed assessment and no impairment loss was recorded. |
LONG-TERM INVESTMENTS, NET
LONG-TERM INVESTMENTS, NET | 12 Months Ended |
Dec. 31, 2021 | |
LONG-TERM INVESTMENTS, NET | |
LONG-TERM INVESTMENTS, NET | 12. LONG-TERM INVESTMENTS, NET The Company’s long-term investments consisted of the following: As of December 31, 2020 2021 RMB RMB US$ Equity investments without readily determinable fair values 17,137 17,137 2,689 Equity method investments 116,667 79,506 12,476 Available-for-sale debt investments 1,713 1,600 251 135,517 98,243 15,416 Equity investments without readily determinable fair values The Company disposed equity investments without readily determinable fair value at a consideration of RMB13,500 and nil in 2020 and 2021, respectively. The investment income comprised of dividend income of RMB461, RMB607 and RMB659 (US$103), and disposal gain of RMB5,536, RMB257 and nil for the years ended December 31, 2019, 2020 and 2021, respectively. 12. LONG-TERM INVESTMENTS, NET (CONTINUED) Equity investments without readily determinable fair values (continued) The Company recorded an impairment loss of long-term investment amounting nil, RMB13,030 and nil for the years ended December 31, 2019, 2020 and 2021, respectively. Equity method investments: Increase (decrease) during the year ended As of December 31, 2019 December 31, 2020 As of December 31, 2020 Share Investments Share Distribution/derecognize Share Investments Cost of equity in equity Cost of equity gain of share Cost of equity gain in equity investments gain (loss) investee investments (loss) equity (gain) loss investments (loss) investee RMB RMB RMB RMB RMB RMB RMB RMB RMB Yizhuang Fund 101,000 7,152 108,152 — 12,254 (17,723) 101,000 1,683 102,683 Shihua DC Holdings 29,068 (29,068) — (29,068) — 29,068 — — — Jingliang Inter Cloud 6,000 (1,928) 4,072 — (903) — 6,000 (2,831) 3,169 Jingliang Century Cloud 4,000 — 4,000 — — — 4,000 — 4,000 ZJK Energy 5,907 (1,945) 3,962 — (803) — 5,907 (2,748) 3,159 WiFire Entities 20,000 (20,000) — — — — 20,000 (20,000) — Qidi Chengxin 3,930 — 3,930 — (274) — 3,930 (274) 3,656 169,905 (45,789) 124,116 (29,068) 10,274 11,345 140,837 (24,170) 116,667 Increase (decrease) during the year ended As of December 31, 2020 December 31, 2021 As of December 31, 2021 Share Investments Share Share Impairment Investments Investments Cost of equity in equity Cost of equity gain Impairment of Cost of equity gain of in equity in equity investments gain (loss) investee investments (loss) investment investments (loss) investment investee investee RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB US$ Yizhuang Fund 101,000 1,683 102,683 — (33,968) — 101,000 (32,285) — 68,715 10,783 Jingliang Inter Cloud 6,000 (2,831) 3,169 — (2,182) — 6,000 (5,013) — 987 155 Jingliang Century Cloud 4,000 — 4,000 — — — 4,000 — — 4,000 628 ZJK Energy 5,907 (2,748) 3,159 — (1,068) — 5,907 (3,816) — 2,091 328 WiFire Entities 20,000 (20,000) — — — — 20,000 (20,000) — — — Qidi Chengxin 3,930 (274) 3,656 — 57 — 3,930 (217) — 3,713 582 BJ Chaohulian — — — 5,000 (1,505) (3,495) 5,000 (1,505) (3,495) — — 140,837 (24,170) 116,667 5,000 (38,666) (3,495) 145,837 (62,836) (3,495) 79,506 12,476 12. LONG-TERM INVESTMENTS, NET (CONTINUED) Equity method investments (continued): The Company through its subsidiary, VNET Beijing, entered into an agreement to invest in the Yizhuang Venture Investment Fund (“Yizhuang Fund”) as a limited partner since April 2012 with capital injection of RMB101,000 and held 27.694% of the investee as of December 31, 2019, 2020 and 2021. Given the Company holds more than three percent interest in the Yizhuang Fund as a limited partner, the investment is accounted for under the equity method as prescribed in ASC Subtopic 323-10, Investments – Equity Method In September 2017, after the disposal of 66.67% equity interest in the WiFire Entities, the Company held the remaining 33.33% equity interest in the WiFire Entities, which is accounted for equity method investment at fair value at the disposal date. As of December 31, 2021, the equity method investment balance is reduced to nil after the pickup of loss in the WiFire Entities. In January 2018, the Company through its subsidiary, VNET Beijing, and a third company jointly set up Beijing Jingliang Interconnected Cloud Technology Inc. (“Jingliang Inter Cloud”) and Jingliang Century Cloud Technology Inc. (“Jingliang Century Cloud”). The Company injected capital of RMB6,000 and RMB4,000 and the Company held 60% and 40% of equity interest in Jingliang Inter Cloud and Jingliang Century Cloud, respectively. Based on the article of association, the Company cannot exercise control over relevant activities of the investee, but it has the ability to exercise significant influence over Jingliang Inter Cloud’s operation and financial decisions. In December 2019, the Company through its subsidiary, VNET Beijing, and a third company jointly set up Chengdu Qidi Chengxin Education Limited (“Qidi Chengxin”). The Company injected capital of RMB3,930 and hold 59% of equity interest in Qidi Chengxin. Based on the article of association, the Company cannot exercise control over relevant activities of the investee, but it has the ability to exercise significant influence over operation and financial decisions. In January, 2021, the Company through its subsidiary, VNET Beijing, and two third parties jointly set up Beijing Super Internet Technology Research Institute Co., Ltd. (“BJ Chaohulian”). The Company injected capital of RMB5,000 and hold 30% of equity interest in BJ Chaohulian. As of December 31, 2021, the equity method investment balance is reduced to nil after the Company pickup of loss amounting to RMB1,505 (US$236) and recorded impairment of investment amounting to RMB3,495 (US$548). |
OTHER NON- CURRENT ASSETS
OTHER NON- CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
OTHER NON- CURRENT ASSETS | |
OTHER NON- CURRENT ASSETS | 13. OTHER NON- CURRENT ASSETS As of December 31, 2020 and 2021, other non-current assets included prepayment for acquisition of datacenters and purchase of property and equipment amounting to RMB1,277,027 and RMB1,704,221 (US$267,429), which consist of 85% and 87% of other non-current assets, respectively. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS | |
BANK BORROWINGS | 14. BORROWINGS Borrowings were as follows as of the respective balance sheet dates: As of December 31, 2020 2021 RMB RMB US$ Short-term bank borrowings 34,000 — — Long-term bank borrowings, current portion 68,500 230,805 36,218 Other long-term borrowings, current portion 111,828 153,353 24,065 214,328 384,158 60,283 Long-term bank borrowings, non-current portion 605,119 1,891,797 296,864 Other long-term borrowings, non-current portion 281,877 323,218 50,720 Total borrowings 1,101,324 2,599,173 407,867 The short-term borrowings outstanding as of December 31, 2020 and 2021 bore a weighted average interest rate of 4.46% and 5.22% per annum, respectively, and were denominated in RMB. These borrowings were obtained from financial institutions and have terms of one year. The long-term borrowings (including current portion) outstanding as of December 31, 2020 and 2021 bore a weighted average interest rate of 5.61% and 5.31% per annum, respectively, and were denominated in RMB. These loans were obtained from financial institutions located in the PRC. As of December 31, 2020 and 2021, unused loan facilities for bank and other borrowings amounted to RMB1,574,556 and RMB1,217,835 (US$191,105), respectively. Borrowings as of December 31, 2020 and 2021 were secured by the following: December 31, 2020 Short-term bank borrowings Secured by (RMB) 34,000 Unsecured borrowings. Long-term borrowings (including current portion) Secured by (RMB) 404,781 Secured by subsidiary’s property and equipment and land-use right with net book value of RMB505,004 and RMB40,034, respectively (Note 8/Note 10). 271,861 Secured by a subsidiary’s property and equipment and land-use right with net book value of RMB130,369 and RMB100,966, respectively (Note 8/Note 10), and a subsidiary’s stock. 190,682 Unsecured borrowing. 100,000 Secured by a subsidiary’s stock and the restricted cash of RMB104,400. 100,000 Secured by a subsidiary’s stock. 1,067,324 14. BORROWINGS (CONTINUED) December 31, 2021 Long-term borrowings (including current portion) Secured by (RMB) 1,334,065 Secured by a subsidiary’s stock. 416,967 Secured by a subsidiary’s land-use right with net book value of RMB24,460 (US$3,838) (Note 10). 267,171 Secured by a subsidiary’s property and equipment and land-use right with net book value of RMB124,214 (US$19,492) and RMB96,201 (US$15,096), respectively (Note 8/Note 10), and a subsidiary’s stock. 212,302 Secured by a subsidiary’s property and equipment with net book value of RMB262,740 (US$41,230) (Note 8), and a subsidiary’s stock. 40,500 Secured by a subsidiary’s property and equipment and land-use right with net book value of RMB188,553 (US$29,588) and RMB15,160 (US$2,379), respectively (Note 8/Note 10). 328,168 Unsecured borrowing. 2,599,173 |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER PAYABLES | |
ACCRUED EXPENSES AND OTHER PAYABLES | 15. ACCRUED EXPENSES AND OTHER PAYABLES The components of accrued expenses and other payables were as follows: As of December 31, 2020 2021 RMB RMB US$ Payables for purchase of property, equipment and software 1,148,742 1,464,086 229,747 Payroll and welfare payables 204,732 288,613 45,290 Share consideration due to the original shareholders for business combination (Note 4) — 214,577 33,672 Accrued service fees 47,572 62,498 9,807 Liability classified share-based payments (Note 4) — 55,156 8,655 Payables for office supplies and utilities 38,485 54,056 8,483 Payables for acquisitions 47,805 47,805 7,502 Value-added tax and other taxes payable 10,473 25,092 3,938 Amounts due to the original shareholders for acquired entities * 66,466 21,560 3,383 Interest payables 37,799 3,595 564 Others 29,489 61,051 9,579 1,631,563 2,298,089 360,620 * This represented the balance of unpaid cash consideration and the payables in other current liabilities due to original shareholders related to the acquisition of SH Shuzhong (Note 4) and Zhongke Zijing (Note 4). |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
LEASES | |
LEASES | 16. LEASES Leases are classified as operating leases or finance leases in accordance with ASC 842. The Company’s operating leases mainly related to building, office facilities and equipment and the rights to use the land in the PRC. For leases with terms greater than 12 months, the Company records the related asset and liability at the present value of lease payments over the term. Certain leases include rental escalation clauses, renewal options and/or termination options, which are factored into the Company’s determination of lease payments when appropriate. As of December 31, 2020 2021 Weighted average remaining lease term: Operating lease 12.2 years 10.8 years Finance lease 14.6 years 17.7 years Weighted average discount rate: Operating lease 6.56 % 7.01 % Finance lease 8.63 % 7.27 % Lease cost for finance leases capitalized were immaterial for the years ended December 31, 2019, 2020 and 2021. For the year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Lease cost Finance lease cost: Depreciation 216,664 255,458 274,052 43,005 Interest expenses 120,185 130,196 124,567 19,547 Operating lease cost 214,795 478,805 568,044 89,138 Total lease cost 551,644 864,459 966,663 151,690 Short-term lease cost and variable lease cost for operating leases and finance leases were immaterial for the years ended December 31, 2019, 2020 and 2021. Other information related to leases was as follows: For the year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash payments for operating leases 193,174 477,189 593,615 93,151 Financing cash payments for finance leases 333,614 376,232 579,660 90,961 16. LEASES (CONTINUED) Future lease payments under operating leases and finance leases as of December 31, 2021 were as follows: Operating Leases Finance Leases RMB US$ RMB US$ 2022 625,680 98,183 326,413 51,221 2023 486,679 76,371 234,013 36,722 2024 437,331 68,627 137,267 21,540 2025 404,703 63,507 95,157 14,932 2026 355,216 55,741 96,757 15,183 2027 and thereafter 2,032,828 318,995 1,722,737 270,335 Total future lease payments 4,342,437 681,424 2,612,344 409,933 Less: Imputed interest (1,450,385) (227,598) (1,248,561) (195,926) Present value of future lease payments * 2,892,052 453,826 1,363,783 214,007 * Present value of future operating lease payments consisted of current portion of operating lease liabilities and non-current portion of operating lease liabilities, amounting to RMB607,997 (US$95,408) and RMB2,284,055 (US$358,418) for the year ended December 31, 2021, respectively. Present value of future finance lease payments consisted of current portion of finance lease liabilities and non-current portion of finance lease liabilities, amounting to RMB244,032 (US$38,294) and RMB1,119,751 (US$175,713) for the year ended December 31, 2021, respectively. |
BONDS PAYABLE
BONDS PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
BONDS PAYABLE | |
BONDS PAYABLE | 17. BONDS PAYABLE On April 15, 2019, the Company issued and sold bonds with an aggregate principal amount of US$300,000 at a coupon rate of 7.875% per annum (“2021 Notes”). The 2021 Notes has matured on October 15, 2021. The 2021 Notes were listed and quoted on the SGX-ST. Interest on the 2021 Notes is payable semi-annually in arrears on April 15 and October 15 in each year, beginning from October 15, 2019. Net proceeds from 2021 Notes after deducting issuance costs were RMB1,976,474. The 2021 Notes are unsecured and rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated to the bonds; equal in right of payment to any of the Company’s liabilities that are not so subordinated, including the 2020 Notes; effectively junior in the right of payment to any secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including accounts payables) of the Company’s subsidiaries and Consolidated VIEs. On April 16, 2019, the Company repurchased US$150,839 in principal amount of 2020 Notes, representing approximately 50.28% of the US$300,000 total aggregate principal amount of the 2020 Notes outstanding as at such date. On August 12, 2019, the Company repurchased US$18,000 in principal amount of 2020 Notes. The remaining outstanding 2020 Notes with principal amount of US$131,161 continue to be the obligation of the Company. The Company recognized loss on debt extinguishment of RMB18,895 during the year ended December 31, 2019. On August 4, 2020, the Company repaid the remaining outstanding 2020 Notes with principal amount of US$131,161. On October 4, 2021, the Company repaid the outstanding 2021 Notes with principal amount of US$300,000. The following table summarizes the aggregate required repayments of the principal amounts of the Company’s long-term borrowings, including bank and other borrowings (Note 14) in the succeeding five years and thereafter: RMB US$ For the years ending December 31, 2022 408,194 64,055 2023 358,279 56,222 2024 347,990 54,607 2025 367,776 57,712 2026 279,825 43,911 2027 and thereafter 891,338 139,870 |
PERPETUAL CONVERTIBLE PREFERRED
PERPETUAL CONVERTIBLE PREFERRED SHARES | 12 Months Ended |
Dec. 31, 2021 | |
PERPETUAL CONVERTIBLE PREFERRED SHARES | |
PERPETUAL CONVERTIBLE PREFERRED SHARES | 18. PERPETUAL CONVERTIBLE PREFERRED SHARES In June 2020, the Company issued 150,000 Series A perpetual convertible preferred shares (the “Series A Preferred Shares”) at the subscription price of 1,000 US dollars per subscribed share for a total cash consideration of US$150,000. The significant terms of the Series A Preferred Shares are summarized as follows: Dividends From and after the original issuance date, cumulative dividends on each Series A Preferred Share will accrue in arrears at the dividend rate of 4.5% per annum on the original issuance price of US$1,000 per subscribed share. All accrued dividends on any Series A Preferred Share will be paid in cash, when, as and if declared by the Board of Directors out of funds legally available therefor or upon a liquidation of the Company. Holders of the Series A Preferred Shares will also be entitled to receive any dividends declared by the Board of Directors on a pro rata basis with the ordinary shares determined on an as-converted basis. The dividends or distributions shall be distributed among all holders of ordinary shares and Series A Preferred Shares in proportion to the number of ordinary shares that would be held by each such holder if all Series A Preferred Shares had been converted to ordinary shares as of the record date fixed for determining those entitled to receive such distribution. For dividends on cumulative preferred stock classified in permanent equity, dividends are not recognized until declared by the Board of Directors. RMB28,637 (US$4,494) dividend was declared by the Company on the conversion date. Liquidation preference In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of Series A Preferred Shares will be entitled to be paid out of the assets of the Company available for distribution to its shareholders before any distribution or payment out of the assets of the Company will be made to the holders of ordinary shares at a preferential amount in cash equal to the greater of (i) the aggregate original issuance price of US$1,000 per Series A Preferred Shares, plus any unpaid, accrued and accumulated dividends on all such Series A Preferred Shares (whether or not declared) and (ii) the aggregate value that such holders of Series A Preferred Shares would have received had all holders of Series A Preferred Shares, immediately prior to such Liquidation, converted all Series A Preferred Shares then outstanding (together with any unpaid, accrued and accumulated dividends thereon) into Class A ordinary shares at the applicable conversion price then in effect. If the Company has insufficient assets to pay the holders of the Series A Preferred Shares the full preferential amount, (a) the holders of the Series A Preferred Shares will share ratably in any distribution of the remaining assets of the Company in proportion to the respective full preferential amounts which would otherwise be payable to each such holder in full, and (b) the Company will not make or agree to make, or set aside for the benefit of the holders of ordinary shares, any payments to the holders of ordinary shares. 18. PERPETUAL CONVERTIBLE PREFERRED SHARES (CONTINUED) Conversion Series A Preferred Shares can be converted at any time at the option of the holder into Class A ordinary shares by dividing the original issuance price plus any unpaid, accrued and accumulated dividends up to, but excluding, the conversion date by the conversion price in effect immediately prior to such conversion. Series A Preferred Shares will be mandatorily converted into Class A ordinary shares at any time after six months from the original issuance date when the daily volume-weighted average price of the ADS (“VWAP”) of certain period equals or exceeds the 200% of the conversion price per ADS (“Conversion Threshold”). Conversion price is initially, US$2.8333 per Class A Ordinary Shares or US$17.00 per ADS and is subject to additional adjustments if the Company makes certain dilutive issuances of shares. Voting Each Series A Preferred Shares holder will be entitled to a number of vote equal to the number of Class A ordinary shares then issuable upon its conversion into Class A ordinary shares at the record date for determination of the shareholders entitled to vote on such matters, or, if no such record date is established, at the date when such vote is taken or any written consent of shareholders is solicited. Accounting for the Series A Preferred Shares The Series A Preferred Shares are classified as permanent equity and initially recorded at the issuance price at the time of closing. There were no embedded features that qualified for bifurcation and separate accounting in accordance with ASC 815-10, Derivatives and Hedging The Company early adopted ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity On March 1, 2021, 150,000 Series A Preferred Shares all has been converted into 54,507,816 Class A Ordinary Shares at the conversion price US$17.00 per ADS. |
CONVERTIBLE PROMISSORY NOTES
CONVERTIBLE PROMISSORY NOTES | 12 Months Ended |
Dec. 31, 2021 | |
CONVERTIBLE PROMISSORY NOTES | |
Disclosure Of Convertible Promissory Notes [Text Block] | 19. CONVERTIBLE PROMISSORY NOTES 2025 Convertible Notes During the year ended December 31, 2020, the Company entered into agreements with a group of investors led by Goldman Sachs Asia Strategic Pte. Ltd. (the “Purchasers”) to issue the Company’s convertible promissory note (the “2025 Convertible Notes”) for total gross proceeds of US$200,000. The 2025 Convertible Notes will mature in five years and, bear interest at the rate of 2% per annum from the issuance date which will be payable semiannually in arrears in cash. Conversion Purchasers have the option to convert all or a portion of the outstanding 2025 Convertible Notes and any accrued and unpaid interest, into ADSs at the conversion price at any time. The conversion price will initially be US$12.00 per ADS or will be subject to customary adjustments when the decrease in VWAP exceeds certain threshold. In addition, the conversion price will be adjusted in the event when the Company makes certain dilutive issuances of shares. Redemption upon maturity Unless previously redeemed or converted, the Company shall redeem the 2025 Convertible Notes on the maturity date in an amount equal to the sum of (i) 115% of the then outstanding principal amount of the 2025 Convertible Notes and (ii) the interest accrued but unpaid on the maturity date. The Company may not redeem the 2025 Convertible Notes at its option prior to the maturity date. Early redemption at the option of the Purchasers If any portion of the outstanding principal amount of the 2025 Convertible Notes has not been converted by the third anniversary of the date of issuance of the 2025 Convertible Notes, the Purchasers at their sole discretion will have the right to require the Company to redeem, in whole or in part, the outstanding principal amount of the 2025 Convertible Notes which has not been converted previously in an amount equal to the sum of (i) 109% of the outstanding principal amount and (ii) the interest accrued but unpaid on the outstanding principal amount. The Company elected to account for the 2025 Convertible Notes at fair value as a whole. Issuance costs including underwriting commissions and offering expenses were approximately RMB18,932, which were recognized in earnings as incurred. During the year ended December 31, 2020 and 2021, Purchasers of the 2025 Convertible Notes exercised the right to convert 23,710,140 and 42,401,010 newly issued Class A ordinary shares at the conversion price of US$12 per ADS. Upon conversion, the fair value of converted portion was RMB720,547 and RMB1,639,806 (US$257,321), respectively. Issuance costs were approximately RMB2,939 and nil, respectively, which were credited to capital accounts with the changes in the fair value up to the conversion date recorded in earning. The interest expense on the convertible promissory was recorded based on the stated rate of 2% in the interest expense within the consolidated statements of operations. For the years ended December 31, 2020 and 2021, the interest expense was RMB18,880 and RMB9,703 (US$1,523), respectively. As of December 31, 2020 and 2021, the fair value of the remaining 2025 Convertible Notes was RMB3,014,057 and RMB513,754 (US$80,619), respectively. The changes in fair value (loss) gain of convertible promissory notes of RMB(2,544,220) and RMB829,149 (US$130,112) were recognized in the changes in the fair value of convertible promissory notes in the consolidated statement of operations for the year ended December 31, 2020 and 2021, respectively. The fair value changes related to instrument-specific credit risk is nil and nil for the years ended December 31, 2020 and 2021, respectively. 19. CONVERTIBLE PROMISSORY NOTES (CONTINUED) 2026 Convertible Notes In January 2021, the Company issued US$600,000 principal amount 0.00% convertible senior notes including US$75,000 sold upon the exercise of the over-allotment option (the “2026 Convertible Notes”). The 2026 Convertible Notes will mature on February 1, 2026 unless redeemed, repurchased or converted prior to such date. Holders may convert their 2026 Convertible Notes at their option prior to the close of business on the business day immediately preceding August 1, 2025 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of ADSs’, each representing six Class A ordinary shares of the Company, par value US$0.00001 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period in which the trading price per US$1,000 principal amount of the 2026 Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the ADSs and the conversion rate on each such trading day; (3) if the Company calls the 2026 Convertible Notes for a tax or optional redemption; or (4) upon the occurrence of specified corporate events. On or after August 1, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2026 Convertible Notes at any time. Upon conversion, the Company will pay or deliver, as the case may be, cash, ADSs, or a combination of cash and ADSs, at its election. If the Company satisfies its conversion obligation solely in cash or through payment and delivery, as the case may be, of a combination of cash and ADSs, the amount of cash and ADSs, if any, due upon conversion will be based on a daily conversion value calculated on a proportionate basis for each trading day in a 40 trading day observation period. The initial conversion rate of the 2026 Convertible Notes is 18.3574 of the Company’s ADS per US$1,000 principal amount of the 2026 Convertible Notes (which is equivalent to an initial conversion price of approximately US$54.47 per ADS). The conversion rate will be subject to adjustment in some events. In addition, following certain corporate events that occur prior to the maturity date, if a make-whole fundamental change occurs prior to the maturity date of the 2026 Convertible Notes, or under certain circumstances upon a tax redemption or the Company’s optional redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 2026 Convertible Notes in connection with such corporate event, such make-whole fundamental change or such notice of tax redemption or notice of optional redemption, as the case may be. Upon conversion, the Company will pay or deliver, as the case may be, cash, ADSs (plus cash in lieu of a fractional ADS) or a combination of cash and ADSs, at its election. The conversion option may be settled in cash, ADSs, or a combination of cash and ADSs at the Company’s option. The Company may not redeem the 2026 Convertible Notes prior to February 6, 2024 unless certain tax-related events occur. On or after February 6, 2024 and on or prior to the 40th scheduled trading day immediately before the maturity date, the Company may redeem for cash all or part of the 2026 Convertible Notes, at its option, if the last reported sale price of the Company’s ADSs has been at least 130% of the conversion price then in effect on (i) each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately prior to the date the Company provides notice of redemption; and (ii) the trading day immediately preceding the date the Company sends such notice. Holders of the notes have the right to require the Company to repurchase for cash all of their 2026 Convertible Notes, or any portion of the principal thereof, on February 1, 2024 or in the event of certain fundamental changes. The redemption price will equal 100% of the principal amount of the 2026 Convertible Notes to be redeemed, plus any accrued and unpaid special interest, if any, to, but not including, the redemption date. No sinking fund is provided for the 2026 Convertible Notes. 19. CONVERTIBLE PROMISSORY NOTES (CONTINUED) 2026 Convertible Notes (Continued) ASU 2020-06 simplified an issuer’s accounting for convertible instrument by eliminating the cash conversion and beneficial conversion feature models in ASC 470-20, Debt with Conversion and Other Options The 2026 Convertible Notes was accounted for as one unit of liability account using amortized cost method under ASU 2020-06, with no embedded derivative features being bifurcated. The gross proceeds from issuance of the 2026 Convertible Notes were US$600,000. Debt issuance costs including underwriting commissions and offering expenses were approximately US$13,841, which were presented as deduction from liability and amortized into interest expense over the remaining period of 5 years. As of December 31, 2021, the net carrying amount of the 2026 Convertible Notes was RMB3,753,197 (US$588,959). For the year ended December 31, 2021, the coupon interest expense was nil and the amortization of debt discount and issuance costs was RMB16,216 (US$2,544). The effective interest rate was 0.47% for the year ended December 31, 2021. |
DEFERRED GOVERNMENT GRANTS
DEFERRED GOVERNMENT GRANTS | 12 Months Ended |
Dec. 31, 2021 | |
DEFERRED GOVERNMENT GRANTS | |
DEFERRED GOVERNMENT GRANTS | 20. DEFERRED GOVERNMENT GRANTS During the years ended December 31, 2019, 2020 and 2021, the Company received nil, nil and nil respectively, in government grants from the relevant PRC government authorities for the use in construction of property and equipment. These grants are initially deferred and subsequently recognized in the consolidated statements of operations when the Company has complied with the conditions or performance obligations attached to the related government grants, if any, and the grants are no longer refundable. Grants that subsidize the construction cost of property and equipment are amortized over the life of the related assets as a reduction of the associated depreciation expense. Movements of deferred government grants were as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Balance at beginning of the year 15,792 8,501 6,174 969 Recognized as a reduction of depreciation expense (7,291) (2,327) (1,806) (284) Balance at end of the year 8,501 6,174 4,368 685 |
TREASURY STOCK
TREASURY STOCK | 12 Months Ended |
Dec. 31, 2021 | |
TREASURY STOCK | |
TREASURY STOCK | 21. TREASURY STOCK For the years ended December 31, 2019, 2020 and 2021, the Company repurchased the number of 242,830, nil and nil ADSs pursuant to the share repurchase plans. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 22. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive income (loss) by component, net of tax of nil, were as follows: Foreign currency translation RMB Balance as of January 1, 2019 85,979 Current year other comprehensive loss (8,075) Balance as of December 31, 2019 77,904 Current year other comprehensive loss (133,439) Balance as of December 31, 2020 (55,535) Current year other comprehensive loss (34,908) Balance as of December 31, 2021 (90,443) Balance as of December 31, 2021, in US$ (14,192) |
MAINLAND CHINA EMPLOYEE CONTRIB
MAINLAND CHINA EMPLOYEE CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2021 | |
MAINLAND CHINA EMPLOYEE CONTRIBUTION PLAN | |
MAINLAND CHINA EMPLOYEE CONTRIBUTION PLAN | 23. MAINLAND CHINA EMPLOYEE CONTRIBUTION PLAN As stipulated by the regulations of the PRC, full-time employees of the Company in the PRC participate in a government-mandated multiemployer defined contribution plan organized by municipal and provincial governments. Under the plan, certain pension benefits, medical care, unemployment insurance, employee housing fund and other welfare benefits are provided to employees. The Company is required to make contributions to the plan based on certain percentages of employees’ salaries. The total expenses for the plan were RMB121,266, RMB77,982 and RMB158,673 (US$24,899) for the years ended December 31, 2019, 2020 and 2021, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 24. SHARE - (a) Option granted to employees In order to provide additional incentives to employees and to promote the success of the Company’s business, the Company adopted a share incentive plan in 2010 (the “2010 Plan”). Under the 2010 Plan, the Company may grant options and RSUs to its employees, directors and consultants to purchase an aggregate of no more than 39,272,595 ordinary shares of the Company. The 2010 Plan was approved by the Board of Directors and shareholders of the Company on July 16, 2010. The 2010 Plan is administered by the Board of Directors or the Compensation Committee of the Board as set forth in the 2010 Plan (the “Plan Administrator”). All share options to be granted under the 2010 Plan have a contractual term of ten years and generally vest over 3 to 4 years in the grantee’s option agreement. In order to further promote the success and enhance the value, the Company adopted a share incentive plan in 2014 (the “2014 Plan”). Under the 2014 Plan, the Company may issue an aggregate of no more than 20,461,380 shares (“Maximum Number”) and such Maximum Number should be automatically increased by a number that is equal to 15% of the number of new shares issued by the Company from time to time. The maximum aggregate number of ordinary shares to be issued under 2014 Plan was subsequently amended to 39,606,817, as approved by the Board of Directors and shareholders of the Company on October 30, 2015. All share options, restricted shares and restricted share units to be granted under the 2014 Plan have a contractual term of ten years and generally vest over 3 to 4 years in the grantee’s option agreement. 24. SHARE BASED COMPENSATION (CONTINUED) (a) Option granted to employees (continued) In order to continuously attract and retain talents, the Company adopted a share incentive plan in 2020 (the “2020 Plan”). Under the 2020 Plan, the Company is authorized to issue an aggregate of 46,560,708 Class A ordinary shares of the Company (equal to the sum of (i) 5% of the Company’s share capital as of the date hereof, calculated on an as-converted basis by taking into consideration all the convertible promissory notes issued and to be issued by the Company, and (ii) 7,562,532 Class A ordinary shares reserved under the “2010 Plan” and “2014 Plan” for future grants) will be reserved for future issuance. After adoption of the 2020 Plan, the Company will cease to grant any new awards under the 2010 Plan and 2014 Plan while the 2010 Plan and 2014 Plan and outstanding awards granted thereunder will remain effective and can be amended by the Company from time to time pursuant to the applicable terms thereto. The 2020 Plan was approved by the Board of Directors and shareholder of the Company on May 13, 2020. (b) The Company granted 464,120, 314,842 and 3,534,767 RSUs in 2019, 2020 and 2021, respectively, with performance conditions whereby a predetermined number will vest upon the assignment of an annual performance review in accordance with predetermined performance targets for the grantees over a one four-year The Company granted 64,000, 1,848,701 and 298,454 RSUs in 2019, 2020 and 2021, respectively, with performance conditions whereby a predetermined number will vest upon with the achievement of predetermined operation performance targets for the Company. As it is probable for the Company to estimate the operation performance for the Company, the Company recognized the related compensation expenses using the accelerated recognition method. The Company granted 16,000, nil and nil RSUs in the years ended 2019, 2020 and 2021, respectively, with market conditions whereby a predetermined number will vest upon with the achievement of predetermined share price targets for the Company. The probability to achieve market condition is reflected in the grant date fair value of the award and thus compensation cost is recognized when the requisite service is rendered using the accelerated method. The compensation expenses related to remaining unvested share options shall be recognized over the remaining requisite service period or the performance review period. As of December 31, 2021, options to purchase 362,004 of ordinary shares were outstanding. 24. SHARE BASED COMPENSATION (CONTINUED) (b) The following table summarized the Company’s employee share option activity under the 2010 Plan: Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term value (US$) (Years) (US$) Outstanding, January 1, 2021 508,866 0.33 0.8 — Exercised (86,862) 0.73 — — Forfeited (60,000) 0.70 — — Outstanding, December 31, 2021 362,004 0.17 0.01 482 Vested and expected to vest at December 31, 2021 362,004 0.17 0.01 482 Exercisable as of December 31, 2021 362,004 0.17 0.01 482 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the fair value of the underlying stock at each reporting date, for those awards that have an exercise price below the estimated fair value of the Company’s shares. As of December 31, 2021, the Company had options outstanding to purchase an aggregate of 362,004 shares with an exercise price below the fair value of the Company’s shares, resulting in an aggregate intrinsic value of RMB3,072 (US$482). The aggregate fair value of the outstanding options at the grant date was determined to be RMB4,701 (US$738) as of December 31, 2021 and such amount is recognized as share-based compensation expenses using the straight-line method for all employee share options granted with graded vesting based on service conditions and the accelerated method for share options granted with graded vesting based on performance conditions. The total fair value of share options exercised during the years ended December 31, 2019, 2020 and 2021 was US$42, US$594 and US$122, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2019, 2020 and 2021 was US$22, US$2,336, and US$67, respectively. As of December 31, 2021, the Company has recorded all the share-based compensation expenses in relation to outstanding share options. 24. SHARE BASED COMPENSATION (CONTINUED) (b) The following table summarized the Company’s RSUs activity under the 2014 and 2020 Plan: Weighted Weighted average average Aggregate Number of grant date remaining intrinsic RSUs fair value contractual life value (US$) (Years) (US$) Unvested, January 1, 2021 4,092,457 14.95 8.2 — Granted 3,833,221 12.31 — — Vested (3,768,186) 11.32 — — Forfeited (1,349,363) 17.34 — — Unvested, December 31, 2021 2,808,129 14.18 7.4 25,357 Share-based compensation expenses for RSUs are measured based on the closing fair market value of the Company’s ADS on the date of grant and the reporting date for liability classified RSUs, respectively. The aggregate fair value of the unvested RSUs as of December 31, 2021 was RMB161,590 (US$25,357), and such amount is recognized as share-based compensation expenses using the straight-line method for the RSUs with graded vesting based on service conditions and the accelerated method for the RSUs with graded vesting based on performance conditions, market conditions and share-settled bonuses. The weighted average grant date fair value of RSUs granted during the years ended December 31, 2019, 2020 and 2021 was US$7.67, US$22.62 and US$12.31, respectively. The total fair value of RSUs vested during the years ended December 31, 2019, 2020 and 2021 was US$6,185, US$3,866 and US$42,672, respectively. As of December 31, 2021, there was RMB86,208 (US$13,528) of unrecognized share-based compensation expenses related to RSUs which is expected to be recognized over a weighted average vesting period of 1.6 years. Total unrecognized share-based compensation expenses may be adjusted for future changes when actual forfeitures incurred. (c) Share-based compensation due to business combination (Note 4) For the year ended December 31, 2021, the Company recorded compensation cost of RMB55,156 (US$8,655) within the Company’s consolidated statements of operations. As of December 31, 2021, there was RMB114,522 (US$17,971) of unrecognized share-based compensation expenses. Total share-based compensation expenses relating to share options, RSUs granted to employees and share-based compensation due to business combination recognized for the years ended December 31, 2019, 2020 and 2021 were as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Cost of revenues 1,884 15,251 13,713 2,152 Sales and marketing expenses 354 38,247 2,545 399 General and administrative expenses 40,501 82,672 292,947 45,970 Research and development expenses 1,177 634 10,805 1,696 43,916 136,804 320,010 50,217 |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2021 | |
TAXATION | |
TAXATION | 25. TAXATION Enterprise income tax (“EIT”) Cayman Islands The Company is incorporated in the Cayman Islands and conducts its primary business operations through the subsidiaries and VIEs in the PRC and Hong Kong. Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain arising in Cayman Islands. British Virgin Islands Subsidiaries in British Virgin Islands are not subject to tax on income or capital gains under the current laws of the British Virgin Islands. Additionally, upon payments of dividends by the Company to its shareholders, no British Virgin Islands withholding tax will be imposed. Hong Kong Subsidiaries in Hong Kong are subject to Hong Kong profits tax rate of 16.5% for the years ended December 31, 2019, 2020 and 2021. Additionally, upon payments of dividends by the Company to its shareholders, no HK withholding tax will be imposed. Taiwan DYX Taiwan branch is incorporated in Taiwan and is subject to Taiwan profits tax rate of 20% for the years ended December 31, 2019, 2020 and 2021. The PRC The Company’s PRC subsidiaries are incorporated in the PRC and subject to the statutory rate of 25% on the taxable income in accordance with the Enterprise Income Tax Law (The “EIT Law”), which was effective since January 1, 2008, except for certain entities eligible for preferential tax rates. Dividends, interests, rent or royalties payable by the Company’s PRC subsidiaries, to non-PRC resident enterprises, and proceeds from any such non-resident enterprise investor ‘s disposition of assets (after deducting the net value of such assets) shall be subject to 10% withholding tax, unless the respective non-PRC resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax. VNET Beijing was qualified for a High and New Technology Enterprise (“HNTE”) since 2008 and is eligible for a 15% preferential tax rate. In October 2014, VNET Beijing obtained a new certificate and reapplied the certificate in October 2017 and 2020, with a validity term of three years. In accordance with the PRC Income Tax Laws, an enterprise awarded with the HNTE certificate may enjoy a reduced EIT rate of 15%. For the years ended December 31, 2019, 2020 and 2021, the tax rate for VNET Beijing was 15%, 15% and 15%, respectively. In April 2011, Xi’an Sub, a subsidiary located in Shaanxi Province, was qualified for a preferential tax rate of 15% and started to apply this rate from then on. The preferential tax rate is awarded to companies that are located in West Regions of China which operate in certain encouraged industries. For the years ended December 31, 2019, 2020 and 2021, the tax rate assessed for Xi’an Sub was 15%, 15% and 15%, respectively. In October 2015, SH Blue Cloud, a subsidiary located in Shanghai, was qualified for a HNTE and became eligible for 15% preferential tax rate. The certificate was reapplied in November 2018 and October 2021 with a validity term of three years. Accordingly, for the years ended December 31, 2019, 2020 and 2021, SH Blue Cloud enjoyed a preferential tax rate of 15%. 25. TAXATION (CONTINUED) Enterprise income tax (“EIT”) (continued) The PRC (continued) In November 2016, SZ DYX, a subsidiary located in Guangdong Province, was qualified for a HNTE and became eligible for 15% preferential tax rate effective for three consecutive years and the certificate was reapplied in November 2019 with a validity term of three years. Accordingly, for the years ended December 31, 2019, 2020 and 2021, SZ DYX enjoyed a preferential tax rate of 15%. In December 2016, BJ TenxCloud, a subsidiary located in Beijing and the Company acquired in July 2021 (Note 4), was qualified for a HNTE and became eligible for 15% preferential tax rate effective for three consecutive years and the certificate was reapplied in December 2019 with a validity term of three years. Accordingly, for the years ended December 31, 2019, 2020 and 2021, BJ TenxCloud enjoyed a preferential tax rate of 15%. In December 2019, SH Hesheng, a subsidiary located in Shanghai, in which the Company acquired 100% of the equity in November 2021 (Note 4), was qualified for a HNTE and became eligible for 15% preferential tax rate effective for three consecutive years. Accordingly, for the years ended December 31, 2019, 2020 and 2021, SH Hesheng enjoyed a preferential tax rate of 15%. The New EIT Law also provides that enterprises established under the laws of foreign countries or regions and whose “place of effective management” is located within the PRC are considered PRC tax resident enterprises and subject to PRC income tax at the rate of 25% on worldwide income. The definition of “place of effective management” refers to an establishment that exercises, in substance, overall management and control over the production and business, personnel, accounting, properties, etc. of an enterprise. As of December 31, 2021, the administrative practice associated with interpreting and applying the concept of “place of effective management” is unclear. If the Company is deemed as a PRC tax resident, it will be subject to 25% PRC EIT under the New EIT Law on its worldwide income, meanwhile the dividend it receives from another PRC tax resident company will be exempted from 25% PRC income tax. The Company will continue to monitor changes in the interpretation or guidance of this law. 25. TAXATION (CONTINUED) Enterprise income tax (“EIT”) (continued) The PRC (continued) (Loss) income before income taxes consisted of: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Non-PRC (178,762) (2,708,101) 675,369 105,980 PRC 2,953 137,178 (48,861) (7,667) (175,809) (2,570,923) 626,508 98,313 Income tax expenses comprised of: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Current (70,324) (131,844) (111,082) (17,431) Deferred 64,887 22,508 (325) (51) (5,437) (109,336) (111,407) (17,482) The reconciliation of tax computed by applying the statutory income tax rate of 25% for the years ended December 31, 2019, 2020 and 2021 applicable to the PRC operations to income tax expenses were as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ (Loss) income before income taxes (175,809) (2,570,923) 626,508 98,313 Income tax benefits (loss) computed at applicable tax rates (25%) 43,952 642,731 (156,627) (24,578) Non-deductible expenses (23,082) (4,117) (13,116) (2,058) Research and development expenses 19,688 32,777 45,122 7,081 Preferential rate 20,213 26,554 14,232 2,233 Current and deferred tax rate differences (8,699) (36,391) 26,115 4,098 International rate differences (77,066) (711,962) 120,678 18,937 Tax exempted income 754 1,087 14,536 2,281 Foreign Investment — (10,263) (49,815) (7,817) Unrecognized tax benefits (expenses) 1,728 (58,449) (12,338) (1,936) Change in valuation allowance 25,423 6,465 (79,733) (12,512) Prior year provision to return true up (8,348) 2,232 (22,898) (3,593) Others — — 2,437 382 Income tax expenses (5,437) (109,336) (111,407) (17,482) 25. TAXATION (CONTINUED) Deferred Tax The significant components of deferred taxes were as follows: As of December 31, 2020 2021 RMB RMB US$ Deferred tax assets Non-current Allowance for doubtful debt 39,886 46,360 7,275 Impairment of long-lived assets 13,467 40,289 6,322 Impairment of long-term investment 2,150 3,024 475 Accrued expense 24,986 16,836 2,641 Tax losses 171,211 262,209 41,146 Property and equipment 22,631 28,569 4,483 Intangible assets 5,765 5,773 906 Finance lease 390,925 386,849 60,705 Deferred government grant 1,357 1,046 164 Operating lease 292,210 623,074 97,774 Loss picked up on equity method investments 57,201 66,121 10,376 Valuation allowance (170,104) (261,960) (41,107) Total deferred tax assets, net of valuation allowance 851,685 1,218,190 191,160 Deferred tax liabilities Non-current Intangible assets 186,258 241,090 37,831 Property and equipment 143,873 139,566 21,901 Capitalized interest expense 19,339 28,604 4,489 Finance lease 313,102 306,598 48,112 Operating lease 292,210 623,074 97,774 Investment in subsidiaries 10,263 59,660 9,362 Gain picked up from equity method investments 252 — — Total non-current deferred tax liabilities 965,297 1,398,592 219,469 Net deferred tax assets (liabilities) (113,612) (180,402) (28,309) Analysis as: Deferred tax assets 185,481 168,002 26,363 Deferred tax liabilities 299,093 348,404 54,672 Net deferred tax liabilities (113,612) (180,402) (28,309) As of December 31, 2021, the Company has net tax operating losses from its PRC subsidiaries and its Consolidated VIEs, as per filed tax returns, of RMB1,096,951 (US$172,136), which will expire at various times between 2022 and 2031 and the majority expiring by 2026, if not utilized As of December 31, 2021, the undistributed earnings of the Company’s PRC subsidiaries the Company intends to permanently reinvested were RMB1,428,251 (US$224,124). In 2021, other than these indefinitely reinvested amount, the Company has other operation or distribution plan for the new VIE, SH Zhiyan. As of December 31, 2021, the related deferred tax liability accrued was RMB59,660 (US$9,362). 25. TAXATION (CONTINUED) Unrecognized Tax Benefits As of December 31, 2020 and 2021, the Company recorded unrecognized tax benefits of RMB68,696 and RMB77,573 (US$12,173), respectively. The unrecognized tax benefits and its related interest are primarily related to non-deductible expenses and accrued expenses. RMB61,711 of the total unrecognized tax benefits, ultimately recognized, will impact the effective tax rate. It is possible that the amount of uncertain tax benefits will change in the next 12 months, however, an estimate of the range of the possible outcomes cannot be made at this time. A roll-forward of unrecognized tax benefits principle was as follows: For the years ended December 31, 2020 2021 RMB RMB US$ Balance at beginning of year 1,722 62,584 9,821 Reversal based on tax positions related to prior years (629) (170) (27) Additions based on tax positions related to the current year 61,491 2,440 382 Balance at end of year 62,584 64,854 10,176 For the years ended December 31, 2019, 2020 and 2021, the Company (reversed) recorded interest expense of RMB(1,447), RMB5,391 and RMB6,606 (US$1,037), respectively. Accumulated interest expense recorded by the Company was RMB6,112 and RMB12,718 (US$1,996) as of December 31, 2020 and 2021, respectively. As of December 31, 2021, the tax years ended December 31, 2016 through 2021 for the PRC subsidiaries remain open for statutory examination by the PRC tax authorities. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 26. RELATED PARTY TRANSACTIONS a) Name of related parties Relationship with the Company Xiaomi Ventures Limited (“Xiaomi”), Xiaomi Communication Technology Co., Ltd., and its subsidiary, Beijing Xiaomi Mobile Software Co., Ltd. (collectively, “Xiaomi Group”) (2) A company controlled by principal shareholder of the Company before December 30, 2020 King Venture Holdings Limited (“King Venture”) and Beijing Kingsoft Cloud Network Technology Co., Ltd. (“BJ Kingsoft”) (1) A company controlled by principal shareholder of the Company before December 30, 2020 Beijing Cheetah Mobile Technology Co., Ltd. (“BJ Cheetah”) (1) A company controlled by principal shareholder of the Company before December 30, 2020 Tuspark Innovation Venture Ltd. (“Tuspark Innovation”) The controlling shareholder of the Company before April 13,2021 Beijing Tuspark Harmonious Investment Development Co., Ltd. (“Tuspark Harmonious”) (5) A company controlled by controlling shareholder of the Company before April 13, 2021 Ziguang Financial Leasing Co., Ltd. (“Ziguang Finance Leasing”) (5) A company controlled by controlling shareholder of the Company before April 13, 2021 Qidi Bus (Beijing) Technology Co., Ltd. (“Qidi Tech”) (5) A company controlled by controlling shareholder of the Company before April 13, 2021 Beijing Qidi Yefeng Investment Co., Ltd. (“Beijing Qidi Yefeng”) (5) A company controlled by controlling shareholder of the Company before April 13, 2021 Beijing Huaqing Property Management Co., Ltd. (“Beijing Huaqing”) (5) A company controlled by controlling shareholder of the Company before April 13, 2021 Shanghai Shibei Hi-Tech Co., Ltd. (“SH Shibei”) Noncontrolling shareholder of a subsidiary Shanghai Puping Information Technology Co., Ltd. (“Shanghai Puping”) (4) A company controlled by minority shareholder of the Company Beijing Chengyishidai Network Engineering Technology Co., Ltd. (“CYSD”) (3) Equity investee of the Company WiFire (Beijing) Technology Co., Ltd. (“WiFire BJ”) (3) Equity investee of the Company Beijing Fastweb Network Technology Co., Ltd. (“BJ Fastweb”) (3) Equity investee of the Company Jingliang Interconnected Cloud Technology Co., Ltd. (“Jingliang Inter Cloud”) Equity investee of the Company Beijing Taiji Data Tech Co., Ltd. (“Taiji”) Equity investee of the Company in 2019 and wholly-owned subsidiary since January 31, 2020 Apurimac Partners Limited (“APL”) A company controlled by an officer of the Company Asialeads Capital (Cayman) Limited A company in which a director of the Company acts as an executive Beijing New Internet Digital Technology Research Institution Limited (“BJ New Internet”) Equity investee of the Company Anhui Suzhou Century Broadband Data Technology Co., Ltd. (“SZ Century”) A company controlled by an equity investee of principle shareholder of the Company from December 1, 2021 * These are the related parties that have engaged in significant transactions with the Company for the years ended December 31, 2019, 2020 and 2021. (1) These companies are ultimately controlled by the same party. King Venture made a significant investment in the Company in 2015. These companies ceased to be related parties as the Company repurchased the shares from King Venture on December 30, 2020. (2) These companies are ultimately controlled by the same party. Xiaomi made a significant investment in the Company in 2015. These companies ceased to be related parties as the Company repurchased the shares from King Venture on December 30, 2020. (3) These entities were disposed by the Company in September 2017, included in WiFire Entities, and determined by the Company as related parties as of December 31, 2019, 2020 and 2021. (4) These entities are controlled by Waburg Pincus, a significant minority shareholder of the Company. (5) These companies are ultimately controlled by the same party. Tuspark Innovation was the controlling shareholder as of December 31, 2020. These companies ceased to be related parties as the Company repurchased shares from Tuspark Innovation on April 13, 2021. 26. RELATED PARTY TRANSACTIONS (CONTINUED) b) For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Services provided to: -SZ Century — — 1,445 227 -Jingliang Inter Cloud — 880 480 75 -BJ New Internet — — 170 27 -Xiaomi Group 437,694 527,679 — — -Qidi Tech 7,427 3,478 — — -BJ Cheetah 169 98 — — -BJ Kingsoft 3,475 43 — — -Taiji 7,899 — — — -WiFire BJ 1,934 — — — -Others 1,494 305 144 23 Services provided by: -CYSD 38,918 38,918 38,918 6,107 -Beijing Huaqing — 4,389 1,254 197 -BJ Kingsoft 3,492 16,867 — — -APL — 8,124 — — -Jingliang Inter Cloud 8,829 4,956 — — -Taiji 19,942 — — — -Others 5,866 796 1,223 192 Loan to: -Shanghai Puping — 62,531 75,611 11,865 - BJ New Internet — — 261 41 -Taiji 1,500 — — — Interest income from loan to: -SH Shibei — — 1,321 207 -BJ Fastweb 700 — — — Lease deposit paid to: -Ziguang Finance Leasing 6,154 135 — — Lease payment paid to: -Ziguang Finance Leasing 17,156 30,776 10,431 1,637 -Beijing Qidi Yefeng — 4,516 2,154 338 -Tuspark Harmonious 68,832 43,703 — — Cash consideration for shares repurchase -Tuspark Innovation — — 1,701,804 267,050 -King Venture — 130,472 — — 26. RELATED PARTY TRANSACTIONS (CONTINUED) c) As of December 31, 2020 2021 RMB RMB US$ Amounts due from related parties: Current: -Shanghai Puping 62,531 138,142 21,677 - SZ Century — 16,996 2,667 -SH Shibei 9,800 11,121 1,745 - BJ New Internet — 441 69 -Ziguang Finance Leasing 2,042 — — -Others 1,146 1,267 200 75,519 167,967 26,358 Non-current: -Tuspark Harmonious 11,863 — — -Ziguang Finance Leasing 6,289 — — -Beijing Qidi Yefeng 1,124 — — -Others 1,286 — — 20,562 — — Amounts due to related parties: Current: - CYSD 189 6,870 1,078 -APL 783 765 120 - SZ Century — 571 90 -Ziguang Finance Leasing 31,681 — — -Tuspark Harmonious 13,557 — — -Beijing Qidi Yefeng 4,410 — — -Others 387 566 89 51,007 8,772 1,377 Non-current: -Tuspark Harmonious 715,992 — — -Ziguang Finance Leasing 22,247 — — -Beijing Qidi Yefeng 9,507 — — 747,746 — — |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 27. RESTRICTED NET ASSETS The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s PRC subsidiaries. In accordance with the PRC Regulations on Enterprises with Foreign Investment and the articles of association of the Company’s PRC subsidiaries, a foreign-invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign-invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign-invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends. VNET China was established as a foreign-invested enterprise and, therefore, is subject to the above mandated restrictions on distributable profits. As of December 31, 2020, and 2021, the Company’s PRC subsidiaries had appropriated RMB74,462 and RMB74,462 (US$11,685), respectively, in its statutory reserves. As a result of these PRC laws and regulations subject to the limit discussed above that require annual appropriations of 10% of after-tax income to be set aside, prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. Amounts restricted include paid-in capital, additional paid in capital and statutory reserve funds of the Company’s PRC subsidiaries and the equity of the Consolidated VIEs, as determined pursuant to PRC generally accepted accounting principles, totaling an aggregate of RMB13,114,157 (US$2,057,897) as of December 31, 2021. |
(LOSS) EARNING PER SHARE
(LOSS) EARNING PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
(LOSS) EARNING PER SHARE | |
(LOSS) EARNING PER SHARE | 28. (LOSS) EARNING PER SHARE Basic and diluted (loss) earning per share for each of the years presented were calculated as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Numerator: Net (loss) earning (181,246) (2,680,259) 515,101 80,831 Net income attributable to noncontrolling interest (1,046) (29,088) (15,003) (2,354) Net (loss) earning attributable to the Company (182,292) (2,709,347) 500,098 78,477 Plus undeclared cumulative dividend on perpetual convertible preferred shares — (22,806) — — Deemed distribution to perpetual convertible preferred shareholders — (470,643) — — Dividend distribution to perpetual convertible preferred shareholders — — (5,831) (915) Adjusted net (loss) earning attributable to ordinary shareholders - Basic (182,292) (3,202,796) 494,267 77,562 Changes in the fair value of convertible promissory notes — — (829,149) (130,112) Adjusted interest for convertible promissory notes — — 9,703 1,523 Adjusted net loss attributable to ordinary shareholders -Diluted (182,292) (3,202,796) (325,179) (51,027) Denominator: Weighted average number of shares outstanding—basic 668,833,756 716,888,919 865,352,554 865,352,554 Weighted average number of shares outstanding—diluted 668,833,756 716,888,919 911,591,433 911,591,433 (Loss) earning per share—Basic: Net (loss) earning (0.27) (4.47) 0.57 0.09 (0.27) (4.47) 0.57 0.09 Loss per share—Diluted: Net loss (0.27) (4.47) (0.36) (0.06) (0.27) (4.47) (0.36) (0.06) In 2019, 2020 and 2021, the Company issued 6,700,002, nil and 7,800,000 ordinary shares to its share depositary bank which will be used to settle stock option awards upon their exercise, respectively. No consideration was received by the Company for this issuance of ordinary shares. These ordinary shares are legally issued and outstanding but are treated as escrowed shares for accounting purposes and therefore, have been excluded from the computation of loss per share. Any ordinary shares not used in the settlement of stock option awards will be returned to the Company. Stock options, RSUs, the Company’s series A preferred shares (Note 18) and 2026 Convertible Notes (Note 19) or other potentially dilutive equity instruments were excluded from the calculation of diluted loss earnings per share if they were anti-dilutive. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2021 | |
SHARE CAPITAL | |
SHARE CAPITAL | 29. SHARE CAPITAL Holders of Class A Ordinary Shares, Class B Ordinary Shares and Class C Ordinary Shares are entitled to the same rights except for voting and conversion rights. In respect of matters requiring a shareholder’s vote, each Class A Ordinary Share is entitled to one vote right, each Class B Ordinary Share is entitled to ten votes, and each Class C Ordinary Share is entitled to one vote and certain veto rights. Each Class B Ordinary Share and Class For the years ended December 31, 2019, 2020 and 2021, 304,200, nil and 16,680,000 Class A ordinary shares were issued to settle the share options exercised and RSUs vested. For the year ended December 31, 2020, 104,304 Class A ordinary shares issued to settle RSUs vested in prior years were repurchased and cancelled. In October 2019, the Company issued 60,000 newly created Class C ordinary shares to Personal Group Limited, a British Virgin Islands company wholly owned by Mr. Sheng Chen, the executive chairman of our board of directors, at a price of US$1.35 per share, to execute business strategies over the long term under the leadership of the Company’s board and senior management. In August 2020, the Company completed a public offering in which the Company offered and sold 19,550,000 ADSs (or 117,300,000 Class A ordinary shares), including 2,550,000 ADSs (or 15,300,000 Class A ordinary shares) purchased by the underwriters by exercising their option. The Company raised a total of RMB2,680,421 in proceeds from this public offering, net of underwriting discounts and commissions and other issuance costs. During the year ended December 31, 2020 and 2021, Purchaser of the 2025 Convertible Notes exercised the right to convert approximately 23.7% and 42.3% of the total principal amount issued to 23,710,140 and 42,401,010 newly issued Class A ordinary shares at the conversion price of US$12 per ADS, respectively. In 2020 and 2021, the Company issued nil and 7,800,000 ordinary shares to its share depositary bank which will be used to settle stock option awards upon their exercise, respectively. No consideration was received by the Company for this issuance of ordinary shares. These ordinary shares are legally issued and outstanding but are treated as escrowed shares for accounting purposes. On March 1, 2021, all 150,000 Series A perpetual convertible preferred shares has been converted into 54,507,816 Class A Ordinary Shares. In April 2021, the Company repurchased from Tuspark Innovation Venture Ltd., (“Tuspark”) 48,634,493 Class B ordinary shares for an aggregate purchase price of US$260.0 million. The repurchase price was at US$5.346 per ordinary share, or US$32.076 per ADS. 48,634,493 Class B ordinary shares were cancelled immediately. Meanwhile, remaining 62,418,897 Class B ordinary shares held by Tuspark were converted into the same number of Class A ordinary shares of the Company. On August 19, 2021, 4,100,000 Class B ordinary shares held by Sunrise Corporate Holding Ltd., were converted into the same number of Class A ordinary shares. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 30. FAIR VALUE MEASUREMENTS The Company applies ASC 820. ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 requires disclosures to be provided on fair value measurement. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 — Include other inputs that are directly or indirectly observable in the marketplace. Level 3 — Unobservable inputs which are supported by little or no market activity. ASC 820 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach; and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset. Cash equivalents, time deposits, bonds payable and 2026 Convertible Notes are classified within Level 1 because they are valued by using quoted market prices. 30. FAIR VALUE MEASUREMENTS (CONTINUED) The 2025 Convertible Notes, share consideration due to the original shareholders for business combination, and long-term investments are classified within Level 3. The fair value of share consideration due to the original shareholders for business combination (Note 4) was estimated using Monte Carlo simulation model that involves several parameters including the share price, share price volatility and risk-free rate. The fair value of 2025 Convertible Notes is measured using binomial tree pricing model that involves several parameters including the Company’s stock price, stock price volatility determined from the Company’s historical stock prices, the remaining maturity term and the discount rate. The Company measures equity investments elected to use the measurement alternative at fair value on a nonrecurring basis, in the cases of an impairment charge is recognized, fair value of an investment is remeasured in an acquisition/a disposal, and an orderly transaction for identical or similar investments of the same issuer was identified. Assets and liabilities measured at fair value on a recurring basis were summarized below: Fair value measurement using: Quoted prices in Significant other active markets for observable Unobservable identical assets inputs inputs Fair value at (Level 1) (Level 2) (Level 3) December 31, 2020 RMB RMB RMB RMB Cash equivalents: - Time deposits 645,879 — — 645,879 Short-term investments: - Time deposits 285,872 — — 285,872 Long-term investments: - Available-for-sale debt securities — — 1,713 1,713 Assets 931,751 — 1,713 933,464 Short-term borrowings: - Current portion of bonds payable 1,998,088 — — 1,998,088 2025 Convertible Notes — — 3,014,057 3,014,057 Liabilities 1,998,088 — 3,014,057 5,012,145 30. FAIR VALUE MEASUREMENTS (CONTINUED) Fair value measurement using: Quoted prices in Significant other active markets for observable Unobservable identical assets inputs inputs Fair value at (Level 1) (Level 2) (Level 3) December 31, 2021 RMB RMB RMB RMB US$ Cash equivalents: - Time deposits 15,013 — — 15,013 2,356 Short-term investments: - Time deposits — — — — — Long-term investments: - Available-for-sale debt securities — — 1,600 1,600 251 Assets 15,013 — 1,600 16,613 2,607 - Current portion of bonds payable Convertible promissory notes - 2025 Convertible promissory notes — — 513,754 513,754 80,619 - 2026 Convertible promissory notes 3,021,852 — — 3,021,852 474,195 Accrued expenses and other payables: -Share consideration due to the original shareholders for business combination (Note 4) — — 214,577 214,577 33,672 Liabilities 3,021,852 728,331 3,750,183 588,486 The following table presented a reconciliation of all liabilities measured at fair value on a recurring basis using significant unobservable inputs (level 3): 2025 Convertible Notes RMB Fair value at issuance date (Note 19) 1,409,385 Foreign exchange loss (219,001) Changes in the fair value 2,544,220 Reclassification to equity (720,547) Fair value at December 31, 2020 3,014,057 Foreign exchange loss (31,348) Changes in the fair value (829,149) Reclassification to equity (1,639,806) Fair value at December 31, 2021 513,754 Fair value at December 31, 2021 (US$) 80,619 Share consideration due to the original shareholders for business combination RMB Fair value at grant date (Note 4) 214,953 Changes in the fair value (376) Fair value at December 31, 2021 214,577 Fair value at December 31, 2021 (US$) 33,672 30. FAIR VALUE MEASUREMENTS (CONTINUED) Assets measured at fair value on a non-recurring basis The Company measures certain non-financial assets on a nonrecurring basis. The Company’s non-financial long-lived assets , such as intangible assets, goodwill and fixed assets, would be measured at fair value only if they were determined to be impaired on an other-than-temporary basis. The fair values of non-financial long-lived assets were measured under income approach, based on the Company’s best estimation which primarily includes significant unobservable inputs (level 3) such as future cash flows and discount rate. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 31. COMMITMENTS AND CONTINGENCIES Capital commitments As of December 31, 2021, the Company has the following commitments to purchase certain computer and network equipment and construction-in-progress: RMB US$ For the year ending December 31, 2022 1,586,604 248,973 2023 and thereafter 32,725 5,135 1,619,329 254,108 Bandwidth and cabinet capacity purchase commitments As of December 31, 2021, the Company has outstanding purchase commitments in relation to bandwidth and cabinet capacity consisting of the following: RMB US$ For the year ending December 31, 2022 698,586 109,623 2023 110,779 17,384 2024 64,525 10,125 2025 2,314 363 2026 2,314 363 2027 and thereafter 3,355 526 881,873 138,384 Income Taxes As of December 31, 2021, the Company has recognized an accrual of RMB77,573 (US$12,173) for unrecognized tax benefits and its interest (Note 25). The final outcome of the tax uncertainty is dependent upon various matters including tax examinations, interpretation of tax laws or expiration of status of limitation. However, due to the uncertainties associated with the status of examinations, including the protocols of finalizing audits by the relevant tax authorities, there is a high degree of uncertainty regarding the future cash outflows associated with these tax uncertainties. 31. COMMITMENTS AND CONTINGENCIES (CONTINUED) Operating litigation In March 2019, a third-party supplier filed a lawsuit against the Company, alleging that the Company had not fully fulfilled its obligations under a network infrastructure cooperation agreement entered in 2013. On October 30, 2020, the court announced the first judgement settlement and the settlement came into force from November 18, 2020. The Company assessed that the settlement is probable and recorded an estimated loss of RMB1,628 (US$250) within accrued expenses and other payables in the consolidated balance sheet as of December 31, 2020. In the ordinary course of business, the Company may from time to time be involved in legal proceedings and litigations. As of December 31, 2020 and 2021, the Company did not consider an unfavorable outcome in any material respects in the outstanding legal proceedings and litigations to be probable. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 32. SUBSEQUENT EVENTS In January 2022, the Company has issued a convertible senior notes for an aggregate principal amount of US$250,000. The Notes have a term of five years and carry interest at 2% per annum. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 33. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets As of December 31, Notes 2020 2021 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 62,116 100,019 15,695 Prepaid expenses and other current assets 97,391 93,546 14,679 Amounts due from subsidiaries (b) 9,320,580 9,844,114 1,544,756 Total current assets 9,480,087 10,037,679 1,575,130 Non-current assets: Investments in subsidiaries 2,169,222 2,333,998 366,255 Total non-current assets 2,169,222 2,333,998 366,255 Total assets 11,649,309 12,371,677 1,941,385 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other payables 87,001 54,893 8,614 Account payables 52 51 8 Current portion of bonds payable 1,943,619 — — Amount due to related parties 783 765 120 Amounts due to subsidiaries (b) 38,863 806,788 126,602 Total current liabilities 2,070,318 862,497 135,344 Non-current liabilities: Convertible promissory notes 3,014,057 4,266,951 669,578 Total non-current liabilities 3,014,057 4,266,951 669,578 Total liabilities 5,084,375 5,129,448 804,922 Shareholders’ equity: Class A Ordinary shares (par value of US$0.00001 per share; 1,199,790,000 and shares authorized; 672,024,600 and 859,932,323 issued and outstanding as of December 31, 2020 and 2021, respectively) 44 56 8 Class B Ordinary Shares (par value of US$0.00001 per share; 300,000,000 and 300,000,000 shares authorized; 145,875,113 and 30,721,723 issued and outstanding as of December 31, 2020 and 2021, respectively) 12 4 1 Class C Ordinary Shares (par value of US$0.00001 per share; 60,000 and 60,000 shares authorized; 60,000 and 60,000 shares issued and outstanding as of December 31, 2020 and 2021, respectively) — — — Series A perpetual convertible preferred shares (par value of US$0.00001 per share; 150,000 and 150,000 shares authorized; 150,000 and nil issued outstanding 1,047,468 — — Additional paid-in capital 13,083,119 15,198,055 2,384,906 Accumulated other comprehensive loss (55,535) (90,443) (14,192) Accumulated deficit (7,160,651) (7,515,920) (1,179,412) Treasury stock (349,523) (349,523) (54,848) Total shareholders’ equity 6,564,934 7,242,229 1,136,463 Total liabilities and shareholders’ equity 11,649,309 12,371,677 1,941,385 33. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) Condensed statements of operations For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Operating Expenses General and administrative expenses (44,490) (94,175) (275,881) (43,292) Operating loss (44,490) (94,175) (275,881) (43,292) Other loss (274,572) (168,656) (119,932) (18,820) Changes in the fair value of convertible promissory notes — (2,544,220) 829,149 130,112 Share of profits from subsidiaries and Consolidated VIEs 136,770 97,704 66,762 10,477 Net (loss) income attributable to VNET Group, Inc. (182,292) (2,709,347) 500,098 78,477 Income tax expense — — — — Net (loss) income (182,292) (2,709,347) 500,098 78,477 Condensed statements of comprehensive (loss) income For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net (loss) income (182,292) (2,709,347) 500,098 78,477 Other comprehensive loss, net of tax of nil: Foreign currency translation adjustments, net of tax of nil (8,075) (133,439) (34,908) (5,478) Other comprehensive loss, net of tax of nil: (8,075) (133,439) (34,908) (5,478) Comprehensive (loss) income (190,367) (2,842,786) 465,190 72,999 Comprehensive (loss) income attributable to VNET Group, Inc. (190,367) (2,842,786) 465,190 72,999 Condensed statements of cash flows For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net cash used in operating activities (142,989) (743,944) (218,664) (34,313) Net cash (used in) generated from investing activities (1,011,257) (3,036,370) 113,530 17,815 Net cash generated from financing activities 807,765 3,598,441 143,037 22,446 Net (decrease) increase in cash and cash equivalents and restricted cash (346,481) (181,873) 37,903 5,948 Cash and cash equivalents and restricted cash at beginning of the year 590,470 243,989 62,116 9,747 Cash and cash equivalents and restricted cash at end of the year 243,989 62,116 100,019 15,695 33. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED) (a) Basis of presentation In the Company-only financial statements, the Company’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since inception. The Company records its investment in its subsidiary under the equity method of accounting as prescribed in ASC 323-10, Investment-Equity Method and Joint Ventures The subsidiaries did not pay any dividends to the Company for the years presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted and as such, these Company-only financial statements should be read in conjunction with the Company’s consolidated financial statements. (b) Related party transactions The Company had the following related party balances as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB US$ Amounts due from subsidiaries - VNET HK 7,043,586 7,195,150 1,129,076 - WiFire Open Network Group Ltd. 2,157,285 2,286,602 358,818 - VNET Future Technology Limited — 306,034 48,023 - VNET Mobile 56,265 55,679 8,737 - HongKong Fastweb Holdings Co., Limited 62,780 — — - Others 664 649 102 9,320,580 9,844,114 1,544,756 Amounts due to subsidiaries - DYX 9 462,551 72,584 - HongKong Fastweb Holdings Co., Limited — 212,778 33,390 - VNET Beijing 35,783 76,453 11,997 - Others 3,071 55,006 8,631 38,863 806,788 126,602 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | (a) Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). |
Principles of consolidation | (b) Principles of consolidation The consolidated financial statements include the financial statements of the Company, its subsidiaries and the Consolidated VIEs for which the Company or a subsidiary of the Company is the primary beneficiary. All significant inter-company transactions and balances between the Company, its subsidiaries and the Consolidated VIEs are eliminated upon consolidation. Results of acquired subsidiaries and its Consolidated VIEs are consolidated from the date on which control is transferred to the Company. |
Use of estimates | (c) Use of estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant estimates and assumptions reflected in the Company’s financial statements include, but are not limited to, determining the valuation allowance for deferred tax assets and determining the fair value of convertible promissory notes. Changes in facts and circumstances may result in revised estimates. Given the global economic climate and unforeseen effects from COVID-19 pandemic, the process of estimation has become more challenging. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. |
Foreign currency | (d) Foreign currency The functional currency of the Company and its overseas subsidiaries is the United States dollar (“US$”), whereas the functional currency of the Company’s PRC subsidiaries and its Consolidated VIEs is the Chinese Renminbi (“RMB”) as determined based on the criteria of ASC Topic 830, Foreign Currency Matters The financial statements of the Company and its overseas subsidiaries are translated from the functional currency to the reporting currency, RMB. Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical costs in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of operations. The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in other comprehensive loss within the statements of comprehensive (loss) income. |
Convenience translation | (e) Convenience translation Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB6.3726 on December 30, 2021, the last business day in fiscal year 2021, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ at such rate or at any other rate. |
Cash and cash equivalents | (f) Cash and cash equivalents Cash and cash equivalents consist of cash on hand and demand deposits placed with banks which are unrestricted as to withdrawal and use and have original maturities less than three months. All highly liquid investments with a stated maturity of 90 days or less from the date of purchase are classified as cash equivalents. |
Restricted cash | (g) Restricted cash Restricted cash mainly represents amounts held by a few banks in escrow as security for credit facilities, the guarantee of compliance with the network and service requirements of the radio spectrum license awarded by the Hong Kong Telecommunication Authority, the deposits for finance lease, the deposits for a lawsuit with a third party, the deposits held in escrow for the advances received from end customers subscribing Office 365 and Windows Azure services (the disbursement of which shall be agreed by both Microsoft (China) Co., Ltd. (“Microsoft”) and the Company), the deposits for business operation, the deposits for loans. |
Short-term investments | (h) Short-term investments All highly liquid investments with original maturities of greater than three months but less than twelve months, are classified as short-term investments. Interest income is included in earnings. |
Accounts receivable and allowance for doubtful debt | (i) Accounts receivable and allowance for doubtful debt On January 1, 2020, the Company adopted ASC326, Financial Instruments-Credit Losses Pursuant to ASC 326, an allowance for credit losses for financial assets, including accounts receivable, carried at amortized cost to present the net amount expected to be collected as of the balance sheet date. Such allowance is based on credit losses expected to arise over the life of the asset’s contractual term, which includes consideration of prepayments. Assets are written off when the Company determines that such financial assets are deemed uncollectible and are recognized as a deduction from the allowance for credit losses. Expected recoveries of amounts previously written off, not to exceed the aggregate of the amount previously written off, are included in determining the necessary reserve at the balance sheet date. The Company pools financial assets based on similar risk characteristics to estimate expected credit losses. The Company estimates expected credit losses on financial assets individually when those assets do not share similar risk characteristics. The Company closely monitors its accounts receivable including timely account reconciliations, detailed reviews of past due accounts, updated credit limits, and monthly analysis of the adequacy of their reserve for credit losses. The Company utilizes a loss rate approach to determine lifetime expected credit losses for its financial assets. This method is used for calculating an estimate of losses based primarily on the Company’s historical loss experience. In determining loss rates, the Company evaluates information related to historical losses, adjusted for current conditions and further adjusted for the period of time that the Company can reasonably forecast. The Company has concluded that it can reasonably support a forecast period for the contractual life of its financial assets. Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider the following: the customer or vendor ‘s creditworthiness, changes in the policy and procedures to establish customer credit limits, changes in the payment terms of receivables, existence and effect of any concentration of credit and changes in the level of such concentrations, and the effects of other external forces such as the current and forecasted direction of the economic and business environment. |
Property and equipment | (j) Property and equipment Property and equipment are stated at cost less accumulated depreciation and any recorded impairment. Property and equipment acquired in a business combination are recognized initially at fair value at the data of acquisition. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, as follows: Category Estimated useful life Property 25-46 years Leasehold improvements Over the shorter of lease term or the estimated useful lives of the assets Optical fibers 10-20 years Computer and network equipment 1-10 years Office equipment 2-8 years Motor vehicles 2-8 years Repair and maintenance costs are charged to expense as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets. Retirements, sale and disposals of assets are recorded by removing the cost and accumulated depreciation with any resulting gain or loss reflected in the consolidated statements of operations. Property and equipment that are purchased or constructed which require a period of time before the assets are ready for their intended use are accounted for as construction-in-progress. Construction-in-progress is recorded at acquisition cost, including installation costs. Construction-in-progress is transferred to specific property and equipment accounts and commences depreciation when these assets are ready for their intended use. |
Intangible assets | (k) Intangible assets Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired in a business combination are recognized initially at fair value at the date of acquisition. Intangible assets with finite useful lives are amortized using a straight-line method. These amortization methods reflect the estimated pattern in which the economic benefits of the respective intangible assets are to be consumed. The Company has capitalized certain internal use software development costs in accordance with ASC Subtopic 350-40, Intangibles-Goodwill and Other: Internal-Use Software Intangible assets have weighted average useful lives from the date of purchase/ acquisition as follows: Purchased software 5.3 years Radio spectrum license 15 years Operating permits* 33.6 years Customer relationships* 8.3 years Licenses* 15 years Supplier relationships* 10 years Trade Names* 20 years Platform software* 5 years Non-complete agreements* 5 years Internal use software 3.7 years Customer contract* 6.2 years * Acquired in the acquisitions of subsidiaries. |
Leases | (l) Leases Effective January 1, 2019, the Company adopted ASC Topic 842, Lease The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company has lease agreements with lease and non-lease components, which are generally accounted for separately. Lastly, the Company elected the short-term lease exemption for all contracts with lease term of 12 months or less. At the commencement date of a lease, the Company determines the classification of the lease based on the relevant factors present and records a right-of-use (“ROU”) asset and lease liability for operating lease, and records property and equipment and finance lease liability for finance lease. ROU assets and property and equipment acquired through lease represent the right to use an underlying asset for the lease term, and operating lease liabilities and finance lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. If the rate implicit in the Company’s leases is not readily available, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental borrowing rate reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. ROU assets include any lease prepayments and are reduced by lease incentives. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease terms are based on the non-cancelable term of the lease and may contain options to extend the lease when it is reasonably certain that the Company will exercise that option. Leases with an initial lease term of 12 months or less are not recorded on the consolidated balance sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term. |
Land use rights | (m) Land use right The land use rights represent the operating lease prepayments for the rights to use the land in the PRC under ASC 842. Amortization of the prepayments is provided on a straight-line basis over the terms of the respective land use rights certificates. |
Long-term investments | (n) Long-term investments The Company’s long-term investments primarily consist of equity investments without readily determinable fair value, equity method investments. Pursuant to ASC Topic 321, Investments—Equity Securities Fair Value Measurements and Disclosures For equity investments measured at fair value with changes in fair value recorded in earnings, the Company does not assess whether those securities are impaired. For those equity investments that the Company elects to use the measurement alternative, the Company makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the entity has to recognize an impairment loss in net loss equal to the difference between the carrying value and fair value. Investments in equity investees represent investments in entities in which the Company can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Subtopic 323-10, Investments-Equity Method and Joint Ventures: Overall |
Goodwill | (o) Goodwill Goodwill represents the excess of the purchase price over the amounts assigned to the fair value of the assets acquired and the liabilities assumed of an acquired business. The Company assesses goodwill for impairment in accordance with ASC Subtopic 350-20, Intangibles—Goodwill and Other: Goodwill The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative test in accordance with ASC 350-20. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting unit, and other specific information related to the operations. If the Company believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of the reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. The quantitative impairment test compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess. Pursuant to ASC 350-20, in 2020 and 2021, the Company performed assessment and completed its annual impairment test for goodwill that has arisen out of its acquisitions. No impairment loss of goodwill was recognized for the years ended December 31, 2019, 2020 and 2021. |
Impairment of long-lived assets | (p) Impairment of long-lived assets The Company evaluates long-lived assets, such as fixed assets and purchased or internally developed intangible assets with finite lives for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC Topic 360, Property, Plant and Equipment . When such events occur, the Company assesses the recoverability of the asset group based on the undiscounted future cash flows the asset group is expected to generate and recognizes an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset group plus net proceeds expected from disposition of the asset group, if any, is less than the carrying value of the asset group. If the Company identifies an impairment, the Company reduces the carrying amount of the asset group to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values and the impairment loss, if any, is recognized in the consolidated statements of operations. As of December 31, 2020 and 2021, due to continuing losses and physical condition changed, the Company recorded the long-lived assets impairment amounting to RMB81,619 and RMB109,267 (US$17,146) for relative asset groups, respectively, resulting from excess of the carrying amount of the asset group over the fair value of the asset group. The Company determined the fair value of the asset group using the income approach based on the discounted cash flows associated with the asset group. In 2020, the discounted cash flows were based on a six-year projection for the asset group, which is consistent with the remaining useful life of its principal asset. The discount rate of 13% was derived and used in the valuations which reflect the market assessment of the risks specific to the Company and its industry and is based on its weighted average cost of capital. In 2021, the Company provided full impairment for relative asset groups considering the fair value is immaterial. No impairment was recognized in other asset groups as there was no impairment indicator identified. The impairment loss reduced the carrying amount of the long-lived assets of the group on a pro-rata basis using the relative carrying amount of those assets except that the loss allocated to an individual long-lived asset of the group shall not reduce the carrying amount of that asset below its fair value whenever that fair value is determinable without undue cost and effort. The Company recorded impairment charges associated with its long-lived assets and acquired intangibles as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Impairment of property and equipment — 35,793 106,311 16,683 Impairment of intangible assets — 38,654 — — Impairment of other non-current assets — 7,172 2,956 463 |
Fair value of financial instruments | (q) Fair value of financial instruments The Company’s financial instruments include cash and cash equivalents, restricted cash, short-term investments, accounts receivable and payable, other receivables and payables, bonds payable, short-term and long-term borrowings, available-for-sale investments and convertible promissory notes. Other than the bonds payable, long-term borrowings and convertible promissory notes, the carrying values of these financial instruments approximate their fair values due to their short-term maturities. The carrying amounts of bonds payable, long-term borrowings and 2026 Convertible Notes (Note 19) approximate their fair values since they bear interest rates which approximate market interest rates. The Company carries the bonds payable at face value less unamortized debt discount and issuance cost on its consolidated balance sheets and measures the fair value for disclosure purposes only. The Company elected the fair value option of 2025 Convertible Notes (Note 19) when it initially recognized as financial liability as the fair value better represents the value of the underlying liabilities. The purchase consideration and contingent purchase considerations in both cash and shares are initially measured at fair value on the acquisition dates of the acquired businesses and the date of grant, respectively, and subsequently remeasured at the end of each reporting period with an adjustment for fair value recorded to the current period income/(expense). Convertible promissory notes are measured at fair value in accordance with ASC 825, Financial Instruments |
Revenue recognition | (r) Revenue recognition The Company provides hosting and related services including hosting of customers’ servers and networking equipment, connecting customers’ servers with internet backbones (“Hosting service”), virtual private network services providing encrypted secured connection to public internet (“VPN service”) and other value-added services and public cloud service through strategic partnership with Microsoft. The Company recognizes revenue as it satisfies a performance obligation when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC Topic 606, Revenue from Contracts with Customers Once a contract is determined to be within the scope of ASC 606 at contract inception, the Company reviews the contract to determine which performance obligations it must deliver and which of these performance obligations are distinct. The Company recognizes revenue based on the amount of the transaction price that is allocated to each performance obligation when that performance obligation is satisfied or as it is satisfied. The Company is a principal and records revenue on a gross basis when the Company is primarily responsible for fulfilling the service, has discretion in establishing pricing and controls the promised service before transferring that service to customers. Otherwise, the Company records revenue at the net amounts as commissions. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (r) Revenue recognition (continued) The Company’s revenue recognition policies are as follows: Hosting services are services that the Company dedicates data center space to house customers’ servers and networking equipment and provides tailored server administration services including operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery. The Company also provides interconnectivity services to connect customers with each other, internet backbones in China and other networks through Border Gateway Protocol, or BGP, network, or single-line, dual-line or multiple-line networks. Through the acquisition of BJ TenxCloud in 2021, the Company also provides digitalization solution services based on in-house developed cloud native platform to customers as an expanded value-added service of its Hosting services. Hosting services are typically provided to customers for a fixed amount over the contract service period and the related revenues are recognized on a straight-line basis over the term of the contract. For certain contracts where considerations are based on the usage of the Hosting services, the related revenues are recognized based on the consumption at the predetermined rate as the services are rendered throughout the contact term. For the digitalization solution services provided from 2021, the Company primarily fulfills its performance obligation by delivering the customized cloud native platform and the revenue is recognized at the point in time when the platform is accepted by the customer. The Company is a principal and records revenue for Hosting service on a gross basis. VPN services are services that the Company extends customers’ private networks by setting up secure and dedicated connections through the public internet. VPN services are provided to customers for a fixed amount over the contract service period and revenue are recognized on a straight-line basis over the term of the contract. The Company is a principal and records revenue for VPN service on a gross basis. The Company partners with Microsoft to provide Cloud services that allow enterprise and individual customers to run their applications over the internet using the IT infrastructure. Cloud services are generally charged by the Company to the end customers for a fixed amount or based on the actual usage of the cloud resources at predetermined rates over the subscription period, which in general is one year. The Company fulfils its performance obligation of facilitating Microsoft to provide the Cloud services to the end customers by providing, but not limited to, contract processing management, billing, payment collection, maintenance, help desk supports and certain IT infrastructure services. These are considered as a series of distinct services that are substantially the same and have the same pattern of transfer to the customer; therefore, they are accounted for as a single performance obligation that is satisfied over time. The corresponding consideration that the Company is entitled to is recognized as revenue using a time-based method since this best depicts the pattern of the control transfer. Revenue from Cloud services consists of monthly incentive revenues received from Microsoft upon completion of certain conditions and gross billing amount received from end customers net of considerations remitted by the Company to Microsoft. When the contract is modified to add distinct services to the single performance obligation for additional fees, such changes are accounted for prospectively as a termination of the old contract and the creation of a new contract. For certain arrangements, customers are required to pay the Company before the services are delivered. When either party to a revenue contract has performed, the Company recognizes a contract asset or a contract liability in the consolidated balance sheets, depending on the relationship between the Company’s performance and the customer’s payment. Contract liabilities were mainly related to fee received for Hosting services to be provided over the contract period, which were presented as deferred revenue on the consolidated balance sheets. Deferred revenue represented the Company’s obligation to transfer the goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. As of December 31, 2020 and 2021, the Company has deferred revenue amounting up to RMB63,245 and RMB55,695 (US$8,740), respectively. Revenue recognized from opening deferred revenue balance was RMB53,499 (US$8,395) for the year ended December 31, 2021. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (r) Revenue recognition (continued) The Company’s certain Hosting service contains lease and non-lease components. The Company elected to adopt the practical expedient which allows lessors to combine lease and non-lease components and account for them as one component if 1) the timing and pattern of transfer of the lease component and non-lease component is the same; 2) the lease component should be classified as an operating lease if it were accounted for separately. The combined component is accounted for in accordance with the current lease accounting guidance (“ASC 842”) if the lease component is predominant, and in accordance with the ASC 606 if the non-lease component is predominant. The Company has determined that the non-lease component is the predominant component in Hosting service. Therefore, the Company has accounted for the combined component in accordance with ASC 606. The Company does not disclose the value of unsatisfied performance obligations as the Company’s revenue contracts are (i) contracts with an original expected length of one year or less or (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. |
Cost of revenues | (s) Cost of revenues Cost of revenues consists primarily of telecommunication costs, depreciation of the Company’s long-lived assets, amortization of acquired intangible assets, maintenance, data center rental expenses directly attributable to the provision of the IDC services, payroll and other related costs of operations. |
Advertising expenditures | (t) Advertising expenditures Advertising expenditures are expensed as incurred and are included in sales and marketing expenses, which amounted to RMB6,095, RMB7,779 and RMB7,272 (US$1,141) for the years ended December 31, 2019, 2020 and 2021, respectively. |
Research and development expenses | (u) Research and development expenses Research and development expenses consist primarily of payroll and related personnel costs for routine upgrades and related enhancements of the Company’s services and network. Research and development expenses are expensed as incurred except for costs to develop internal-use software or add significant upgrades and enhancements resulting in additional functionality to internal-use software that meet the capitalization criteria in accordance with ASC Subtopic 350-40, Intangibles-Goodwill and Other, Internal-Use Software |
Government grants | (v) Government grants Government grants are provided by the relevant PRC municipal government authorities to subsidize the cost of certain research and development projects. The amount of such government grants is determined solely at the discretion of the relevant government authorities and there is no assurance that the Company will continue to receive these government grants in the future. Government grants are recognized when it is probable that the Company will comply with the conditions attached to them, and the grants are received. When the grant relates to an expense item, it is recognized in the consolidated statement of operations over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate, as a reduction of the related operating expense. When the grant relates to an asset, it is recognized as deferred government grants and released to the consolidated statement of operations in equal amounts over the expected useful life of the related asset, when operational, as a reduction of the related depreciation expense. |
Capitalized interest | (w) Capitalized interest Interest costs are capitalized if they are incurred during the acquisition, construction or production of a qualifying asset and such costs could have been avoided if expenditures for these assets have not been made. As a result of total interest costs capitalized during the period, the interest expense for the years ended December 31, 2019, 2020 and 2021, was as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Interest expense and amortization cost of bonds payable 223,832 223,785 133,959 21,021 Interest expense and amortization cost of 2025 and 2026 Convertible Notes (Note 19) — 18,880 25,919 4,067 Interest expense on bank and other borrowings 14,212 39,424 103,925 16,308 Interest expense on finance leases 120,185 130,196 124,567 19,547 Total interest costs 358,229 412,285 388,370 60,943 Less: Total interest costs capitalized (12,274) (31,676) (53,420) (8,382) Interest expense, net 345,955 380,609 334,950 52,561 |
Income taxes | (x) Income taxes The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The carrying amount of deferred tax assets is reviewed on an entity-by-entity basis and is reduced by a valuation allowance to the extent that it is more-likely-than-not that the benefits of the deferred tax assets will not be realized in future years. The valuation allowance is determined based on the weight of positive and negative evidence including future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences, and verifiable tax planning. The estimated future taxable income involves significant assumptions of forecasted revenue growth that take into consideration of the Company’s historical financial results, its plan of expanding operating capacity as well as current industry trends. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date of the change in tax rate. All deferred income tax assets and liabilities are classified as non-current on the consolidated balance sheets. The Company applies ASC Topic 740, Accounting for Income Taxes The Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of “income tax expenses” in the consolidated statements of operations. |
Share-based compensation | (y) Share-based compensation Share options and Restricted Share Units (“RSUs”) granted to employees are accounted for under ASC Topic 718, Compensation—Stock Compensation The Company has elected to recognize compensation expenses using the straight-line method for share-based awards granted with service conditions that have a graded vesting schedule. For share-based awards granted with performance conditions, the Company recognizes compensation expenses using the accelerated method. The Company commences recognition of the related compensation expenses if it is probable that the defined performance condition will be met. To the extent that the Company determines that it is probable that a different number of share-based awards will vest depending on the outcome of the performance condition, the cumulative effect of the change in estimate is recognized in the period of change. For share-based awards with market conditions, the probability to achieve market conditions is reflected in the grant date fair value. The Company recognized the related compensation expenses when the requisite service is rendered using the accelerate method. On November 26, 2016, the Board approved a new incentive program to certain individuals with a new bonus scheme which will be settled by issuing a variable number of shares with a fair value equal to fixed dollar amount on the settlement date. The Company remeasures the fair value of such liability at each reporting period end through earnings until the actual settlement date, which is the date when the number of underlying shares were fixed and recorded the compensation cost over the remaining vesting term. A cancellation of the terms or conditions of an equity award under original award in exchange for a new award should be treated as modification. The compensation costs associated with the modified awards are recognized if either the original vesting conditions or the new vesting conditions have been achieved. Total recognized compensation cost for the awards is at least equal to the fair value of the original awards at the grant date unless at the date of the modification the performance or service conditions of the original awards are not expected to be satisfied. The incremental compensation cost is measured as the excess of the fair value of the replacement awards over the fair value of original awards at the modification date. Therefore, in relation to the modified awards, the Company recognizes share-based compensation over the vesting periods of the new awards, which comprises (i) the amortization of the incremental portion of share-based compensation over the remaining vesting term, and (ii) any unrecognized compensation cost of original awards, using either the original term or the new term, whichever results in higher expenses for each reporting period. For a modification of a market condition, the incremental portion of share-based compensation and unrecognized compensation cost of original award are recognized over new vesting period. For modification of a liability award that remains a liability after modification, the liability award continues to be remeasured at fair value at each reporting date. |
Loss per share | (z) (Loss) Earnings per share In accordance with ASC Topic 260, Earnings per Share |
Share repurchase program | (aa) Share repurchase program Pursuant to the Board of Directors’ resolutions on December 2, 2019, the Company’s management is authorized to repurchase, in one or more tranches, up to an aggregate of US$20,000 of its own outstanding shares (including shares represented by ADSs) (each such transaction a “Repurchase”) over a period of 13 months ended on December 31, 2020. The Company accounted for the repurchased shares as Treasury Stock at cost in accordance to ASC Subtopic 505-30, Treasury Stock For the years ended December 31, 2019 and 2020, the Company repurchased 242,830 and nil ADSs under above program for a consideration of RMB11,840 and nil, respectively. |
Comprehensive (loss) income | (bb) Comprehensive (loss) income Comprehensive (loss) income is defined as the (decrease) increase in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive loss of the Company includes only foreign currency translation adjustments related to the Company and its overseas subsidiaries, whose functional currency is US$. |
Segment reporting | (cc) Segment reporting In accordance with ASC Topic 280 , Segment Reporting (“ASC 280”), the Company had one reportable segment since the Company’s chief executive officer, who has been identified as the Company’s chief operating decision-maker (“CODM”) formerly relied on the results of operations of hosting and related services when making decisions on allocating resources and assessing performance of the Company, and the CODM reviews the operation result of the Company as a whole. Hosting and related services business focuses primarily on colocation, interconnectivity, cloud, VPN, hybrid IT and other value-added services. As of December 31, 2019, 2020 and 2021, the Company only had one reporting segment. Because substantially all of the Company’s long-lived assets and revenues are located in and derived from the PRC, geographical segments are not presented. |
Employee benefits | (dd) Employee benefits The full-time employees of the Company’s PRC subsidiaries are entitled to staff welfare benefits including medical care, housing fund, pension benefits and unemployment insurance, which are governmental mandated defined contribution plans. These entities are required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued. |
Comparatives | (ee) Comparatives Certain items reported in the prior year’s consolidated financial statements have been reclassified to conform with the current year’s presentation. |
Recent accounting pronouncements | (ff) Recent accounting pronouncements In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform In October 2021, the FASB issued ASU 2021-08, Business Combinations Business Combinations—Overall |
ORGANIZATION (Tables)
ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ORGANIZATION | |
Schedule of significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | (a) As of December 31, 2021, the significant subsidiaries of the Company and significant consolidated variable interest entities are as follows: Entity Date of incorporation/ acquisition Place of incorporation Percentage of direct ownership by the Company Principal activities Direct Variable Interest Entities (the “VIEs”): Beijing Yiyun Network Technology Co., Ltd. (“VNET Technology”) (2) October 22, 2002 PRC — Provision of internet data center services Beijing iJoy Information Technology Co., Ltd. (“BJ iJoy”) (2) April 30, 2013 PRC — Provision of internet data center, content delivery network services WiFire Network Technology (Beijing) Co., Ltd. (“WiFire Network”) (2) April 1, 2014 PRC — Provision of telecommunication services Shanghai Zhiyan Yunwei Technology Co., Ltd. (“SH Zhiyan”) (2) December 12, 2020 PRC — Provision of telecommunication services Held directly by VNET Technology: Beijing VNET Broad Band Data Center Co., Ltd. (“VNET Beijing”) (2) March 15, 2006 PRC — Provision of internet data center services Shanghai Shilian Technology Co., Ltd. (“SH Shilian”) October 22, 2012 PRC — Provision of internet data center services Held directly by VNET Beijing: VNET (Xi’an) Information Outsourcing Industry Park Services Co., Ltd. (“Xi’an Sub”) (2) June 23, 2008 PRC — Provision of internet data center services Langfang Xunchi Computer Data Processing Co., Ltd. (“LF Xunchi”) (2) December 19, 2011 PRC — Dormant company Beijing Yilong Xinda Technology Co., Ltd. (“Yilong Xinda”) (2) February 28, 2013 PRC — Provision of internet data center services Beijing Yichengtaihe Investment Co., Ltd. (“BJ Yichengtaihe”) (2) September 30, 2014 PRC — Provision of internet data center services Guangzhou Lianyun Big Data Co., Ltd. (“GZ Lianyun”) (2) April 14, 2016 PRC — Provision of internet data center services Beijing Xianghu Yunlian Technology Co., Ltd. (“Xianghu Yunlian”) (2) November 7, 2018 PRC — Provision of internet data center services Shanghai Hujiang Songlian Technology Co., Ltd.(“Hujiang Songlian”) (2) December 17, 2018 PRC — Provision of internet data center services Beijing Shuhai Hulian Technology Co., Ltd. (“BJ Shuhai”) (2) January 2, 2019 PRC — Provision of internet data center services Nantong Chenghong Cloud Computing Co., Ltd. (“NT Chenghong”) (2) December 24, 2019 PRC — Provision of internet data center services Held directly by SH Shilian: Shanghai Shuzhong Investment Management Co., Ltd. (“SH Shuzhong”) (2)/(5) June 30, 2020 PRC — Provision of internet data center services Sanhe Shulifang Information Technology Co., Ltd. (“Shulifang”) (2)/(6) July 21, 2020 PRC — Provision of internet data center services Langfang Huahai Internet Technology Co., Ltd. (“LF Huahai”) (2)/(7) September 11, 2020 PRC — Provision of internet data center services Shanghai Hesheng Data System Co., Ltd. (“SH Hesheng”) (2)/(11) November 11, 2021 PRC — Provision of internet data center services Entity Date of incorporation/ acquisition Place of incorporation Percentage of direct ownership by the Company Principal activities Held directly by SH Zhiyan: Shanghai Blue Cloud Technology Co., Ltd. (“SH Blue Cloud”) (2) March 21, 2013 PRC — Provision of Office 365 and Windows Azure platform services Shanghai Edge Blue Cloud Network Technology Co., Ltd. (“SH Edge Network”) (2)/(12) January 7,2021 PRC — Provision of internet data center services Held directly by DYX and LF Xunchi: Shenzhen Diyixian Telecommunication Co., Ltd. (“SZ DYX”) (1) August 10, 2014 PRC 20 % Provision of virtual private network services (1) Collectively, the “PRC Subsidiaries”. (2) Collectively, the “Consolidated VIEs”. (3) On August 10, 2014, the Company and its subsidiary, LF Xunchi, acquired 100% equity interest of Dermot BVI and its subsidiaries (collectively referred to as “Dermot Entities”). (4) On August 20, 2019, the Company through its subsidiary, DRP Investment, became the sole shareholder in Shihua Holding 2 and its subsidiaries. (5) On June 30, 2020, the Company through its subsidiary, SH Shilian, acquired 100% equity interest of SH Shuzhong (Note 4). (6) On July 21, 2020, the Company through its subsidiary, SH Shilian, acquired 100% equity interest of Shulifang (Note 4). (7) On September 11, 2020, the Company through its subsidiaries, SH Shilian and Linkcloud PTE. Ltd. (“Linkcloud”), acquired 100% equity interest of LF Huahai (Note 4). (8) On November 17, 2020, the Company through its subsidiary, VNET Saturn International Investment Limited (“VNET Saturn”) and Beijing Zhongshun Yongfeng Investment Consulting Co., Ltd. (“YF WFOE”), acquired 100% equity interest of BJ JHC and BJ ST (Note 4). (9) On July 15, 2021, the Company through its subsidiary, Shenzhen Cloud Native Technology Co., Ltd. (“SZ Cloud Native”), acquired 100% equity interest of BJ TenxCloud (Note 4). (10) On August 16, 2021, the Company through its subsidiary, Jiwa Engineering BJ, acquired 100% equity interest of Zhongke Zijing and Gu’an Junhui (Note 4). (11) On November 11, 2021, the Company through its subsidiary, SH Shilian, acquired 100% equity interest of SH Hesheng (Note 4). (12) On January 7, 2021, the Company, through SH Zhiyan, established SH Edge Network for internet data center services. |
Schedule of consolidated VIE before eliminating intercompany balances | The following tables represent the financial information of the Consolidated VIEs as of December 31, 2020 and 2021 and for the years ended December 31, 2019, 2020 and 2021 before eliminating the intercompany balances and transactions between the Consolidated VIEs and other entities within the Company: As of December 31, 2020 2021 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 737,556 660,234 103,605 Restricted cash 260,450 317,199 49,775 Accounts receivable (net of allowance for doubtful debt of RMB67,632 and RMB82,654 (US$12,970) as of December 31, 2020 and 2021, respectively) 664,610 1,139,372 178,792 Prepaid expenses and other current assets 1,622,662 1,781,456 279,549 Amounts due from related parties 12,968 29,812 4,678 Total current assets 3,298,246 3,928,073 616,399 Non-current assets: Property and equipment, net 5,170,878 6,754,511 1,059,930 Intangible assets, net 342,288 382,173 59,971 Land use rights, net 46,719 45,476 7,136 Operating lease right-of-use assets, net 1,134,073 2,666,182 418,382 Goodwill 308,110 308,110 48,349 Restricted cash 27,719 7,825 1,228 Deferred tax assets, net 168,181 136,903 21,483 Amounts due from related parties 20,562 — — Other non-current assets 435,144 612,198 96,067 Long-term investments, net 172,593 133,280 20,915 Total non-current assets 7,826,267 11,046,658 1,733,461 Total assets 11,124,513 14,974,731 2,349,860 Current liabilities: Short-term bank borrowings 34,000 — — Accounts payable and notes payable 182,669 352,478 55,311 Accrued expenses and other payables 981,961 1,342,886 210,728 Advance from customers 1,041,594 1,041,902 163,497 Deferred revenue 58,066 49,055 7,698 Income tax payable 12,743 20,972 3,291 Amounts due to inter-companies (1) 4,248,422 5,203,974 816,617 Amounts due to related parties 50,193 8,007 1,256 Current portion of finance lease liabilities 362,760 200,961 31,535 Current portion of long-term borrowings 165,328 350,609 55,018 Current portion of deferred government grant 2,074 2,074 325 Current portion of operating lease liabilities 427,114 579,391 90,919 Total current liabilities 7,566,924 9,152,309 1,436,195 As of December 31, 2020 2021 RMB RMB US$ Non-current liabilities: Amounts due to inter-companies (1) 1,020,972 1,020,972 160,213 Amounts due to related parties 747,746 — — Long-term borrowings 570,135 1,480,709 232,356 Non-current portion of finance lease liabilities 299,399 704,255 110,513 Unrecognized tax benefits 68,317 77,192 12,113 Deferred tax liabilities 155,281 132,370 20,772 Non-current portion of deferred government grant 4,100 2,294 360 Non-current portion of operating lease liabilities 497,268 2,114,309 331,781 Total non-current liabilities 3,363,218 5,532,101 868,108 Total liabilities 10,930,142 14,684,410 2,304,303 For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net revenues 2,858,176 3,885,141 5,145,110 807,380 Net profit 111,592 73,748 92,594 14,530 For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net cash generated from operating activities 495,308 748,418 866,712 136,006 Net cash used in investing activities (1,247,764) (1,943,358) (2,695,707) (423,015) Net cash generated from financing activities 885,286 1,302,082 1,788,528 280,659 Net increase (decrease) in cash and cash equivalents and restricted cash 132,830 107,142 (40,467) (6,350) (1) Amounts due to inter-companies consist of intercompany payables to the other companies within the Company for the purchase of telecommunication resources and property and equipment on behalf of the Consolidated VIEs. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets | Category Estimated useful life Property 25-46 years Leasehold improvements Over the shorter of lease term or the estimated useful lives of the assets Optical fibers 10-20 years Computer and network equipment 1-10 years Office equipment 2-8 years Motor vehicles 2-8 years |
Schedule of weighted average useful lives of intangible assets | Purchased software 5.3 years Radio spectrum license 15 years Operating permits* 33.6 years Customer relationships* 8.3 years Licenses* 15 years Supplier relationships* 10 years Trade Names* 20 years Platform software* 5 years Non-complete agreements* 5 years Internal use software 3.7 years Customer contract* 6.2 years * Acquired in the acquisitions of subsidiaries. |
Schedule of impairment charges associated with long-lived assets and acquired intangibles | For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Impairment of property and equipment — 35,793 106,311 16,683 Impairment of intangible assets — 38,654 — — Impairment of other non-current assets — 7,172 2,956 463 |
Schedule of total interest expenses capitalized during the period, the interest expenses | As a result of total interest costs capitalized during the period, the interest expense for the years ended December 31, 2019, 2020 and 2021, was as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Interest expense and amortization cost of bonds payable 223,832 223,785 133,959 21,021 Interest expense and amortization cost of 2025 and 2026 Convertible Notes (Note 19) — 18,880 25,919 4,067 Interest expense on bank and other borrowings 14,212 39,424 103,925 16,308 Interest expense on finance leases 120,185 130,196 124,567 19,547 Total interest costs 358,229 412,285 388,370 60,943 Less: Total interest costs capitalized (12,274) (31,676) (53,420) (8,382) Interest expense, net 345,955 380,609 334,950 52,561 |
ACQUISITION AND DISPOSAL OF S_2
ACQUISITION AND DISPOSAL OF SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SH Hesheng | |
Business Acquisition [Line Items] | |
Schedule of net identifiable assets of acquiree, business combination | RMB US$ Net assets acquired: Operating permits (Note 9) 27,646 4,338 Property and equipment, net 94,148 14,774 Operating lease right-of-use assets, net 20,929 3,284 Other non-current assets 872 136 Cash and cash equivalents 423 66 Other current assets 25,646 4,025 Operating lease liabilities (20,292) (3,184) Other current liabilities (962) (150) Deferred tax liabilities (10,853) (1,703) Total consideration in cash 137,557 21,586 |
Shulifang | |
Business Acquisition [Line Items] | |
Schedule of net identifiable assets of acquiree, business combination | RMB Net assets acquired: Operating permits (Note 9) 45,134 Operating lease right-of-use assets, net 15,206 Other non-current assets 15,409 Cash and cash equivalents 53 Other current assets 601 Operating lease liabilities (15,206) Other current liabilities (16,913) Deferred tax liabilities (11,284) Total consideration in cash 33,000 |
Zhongke Zijing | |
Business Acquisition [Line Items] | |
Schedule of net identifiable assets of acquiree, business combination | RMB US$ Net assets acquired: Operating permits (Note 9) 203,586 31,947 Land use rights, net (Note 10) 36,013 5,651 Other non-current assets 7,349 1,154 Cash and cash equivalents 3 — Other current assets 21,017 3,298 Other current liabilities (65,125) (10,219) Deferred tax liabilities (50,959) (7,997) Total consideration in cash 151,884 23,834 |
LF Huahai | |
Business Acquisition [Line Items] | |
Schedule of net identifiable assets of acquiree, business combination | RMB Net assets acquired: Operating permits (Note 9) 119,352 Operating lease right-of-use assets, net 183,174 Other non-current assets 27,524 Cash and cash equivalents 173 Other current assets 4,088 Other current liabilities (35,600) Operating lease liabilities (183,873) Deferred tax liabilities (29,838) Total consideration in cash 85,000 |
SH Shuzhong | |
Business Acquisition [Line Items] | |
Schedule of net identifiable assets of acquiree, business combination | RMB Property and equipment, net 348,475 Operating lease right-of-use assets, net 81,034 Customer contract (Note 9) 33,500 Purchased software 23 Deferred tax assets 14,848 Other non-current assets 1,685 Other current assets 44,774 Total assets acquired 524,339 Other current liabilities (406,932) Operating lease liabilities (45,034) Deferred tax liabilities (41,169) Total liabilities assumed (493,135) Net assets acquired 31,204 Purchase consideration 36,667 Goodwill 5,463 |
BJ TenxCloud | |
Business Acquisition [Line Items] | |
Schedule of net identifiable assets of acquiree, business combination | RMB US$ Property and equipment, net 470 74 Operating lease right-of-use assets, net 2,376 373 Technology platform (Note 9) 27,800 4,362 Customer relationship (Note 9) 19,000 2,982 Deferred tax assets 11,097 1,741 Other current assets 52,328 8,210 Total assets acquired 113,071 17,742 Other current liabilities (29,395) (4,612) Operating lease liabilities (2,500) (392) Deferred tax liabilities (11,097) (1,741) Total liabilities assumed (42,992) (6,745) Net assets acquired 70,079 10,997 Purchase consideration 414,743 65,082 Goodwill 344,664 54,085 |
ACCOUNTS AND NOTES RECEIVABLE_2
ACCOUNTS AND NOTES RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCOUNTS AND NOTES RECEIVABLE, NET | |
Schedule of accounts and notes receivable and the allowance for doubtful debt | As of December 31, 2020 2021 RMB RMB US$ Accounts receivable 913,902 1,504,669 236,115 Notes receivable 2,252 948 150 Allowance for doubtful debt (68,921) (99,620) (15,633) 847,233 1,405,997 220,632 |
Schedule of analysis of the allowance for doubtful debt | As of December 31, 2020 and 2021, all accounts and notes receivable were due from third party customers. An analysis of the allowance for doubtful debt was as follows: For the years ended December 31, 2020 2021 RMB RMB US$ Balance at beginning of the year 67,828 68,921 10,816 Cumulative adjustment for changes in accounting policy 2,740 — — Additional due to business combination — 16,256 2,251 Additional provision charged to expense 2,393 14,990 2,352 Write-off of accounts receivable (4,040) (547) (86) Balance at the end of the year 68,921 99,620 15,633 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHORT-TERM INVESTMENTS | |
Schedule of short-term investments | Short-term investments consisted of the following as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB US$ Time deposits 285,872 — — |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of prepaid expenses and other current assets | As of December 31, 2020 2021 RMB RMB US$ Prepaid expenses 884,156 942,990 147,975 Tax recoverable 879,237 964,262 151,313 Deposits 31,774 68,887 10,809 Loan to third parties 19,107 17,492 2,745 Staff advances 968 1,561 245 Interest receivables 1,484 728 114 Others 49,458 53,991 8,472 1,866,184 2,049,911 321,673 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, including those held under finance leases | As of December 31, 2020 2021 RMB RMB US$ At cost: Property 1,511,429 1,778,377 279,066 Leasehold improvements 2,609,828 3,302,883 518,294 Computer and network equipment 4,899,577 5,923,149 929,471 Optical fibers 142,723 142,723 22,396 Office equipment 26,845 32,561 5,110 Motor vehicles 2,668 3,959 621 9,193,070 11,183,652 1,754,958 Less: Accumulated depreciation (3,285,138) (4,206,943) (660,160) 5,907,932 6,976,709 1,094,798 Construction-in-progress 2,234,286 3,239,407 508,334 Impairment (35,793) (123,697) (19,411) Property and equipment, net 8,106,425 10,092,419 1,583,721 |
Schedule of depreciation expense | For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Cost of revenues 644,108 850,746 1,107,655 173,815 Sales and marketing expenses 2,107 2,399 963 151 General and administrative expenses 30,110 29,711 23,186 3,639 Research and development expenses 20,203 25,531 32,921 5,166 696,528 908,387 1,164,725 182,771 |
Schedule of carrying amounts of the Company's property and equipment held under finance leases | As of December 31, 2020 2021 RMB RMB US$ Property 921,970 993,158 155,848 Computer and network equipment 1,019,588 823,625 129,245 Optical fibers 137,924 137,924 21,643 2,079,482 1,954,707 306,736 Less: Accumulated depreciation (661,796) (629,927) (98,849) 1,417,686 1,324,780 207,887 Construction-in-progress 92,545 — — Impairment (17,613) (17,377) (2,727) 1,492,618 1,307,403 205,160 |
Schedule of carrying amounts of property and equipment pledged by the Company to secure banking borrowings | As of December 31, 2020 2021 RMB RMB US$ Property 264,784 253,979 39,855 Leasehold improvements 90,947 160,959 25,258 Computer and network equipment 40,871 159,909 25,093 Office equipment — 660 104 Construction-in-progress 238,771 — — |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS, NET | |
Schedule of intangible assets | Radio Internal Purchased spectrum Operating Technology Customer Supplier Trade Customer Non-Complete use software license Permits Platform relationships Licenses relationships names contract Agreement software Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Intangible assets,Cost December 31, 2020 154,617 126,049 375,283 10,250 238,184 5,772 39,053 116,266 109,717 1,800 47,480 1,224,471 Accumulated Amortization 2020 (112,715) (73,543) (8,325) (10,250) (174,998) (2,658) (28,132) (37,302) (46,611) (1,800) (31,288) (527,622) Impairment — (38,654) — — — — — — — — — (38,654) Intangible assets, Net December 31, 2020 41,902 13,852 366,958 — 63,186 3,114 10,921 78,964 63,106 — 16,192 658,195 Intangible assets, Cost December 31, 2021 177,421 123,167 625,129 38,050 257,183 5,772 39,053 116,266 109,717 1,800 58,902 1,552,460 Accumulated Amortization 2021 (122,239) (74,056) (24,830) (12,777) (203,356) (3,043) (31,206) (43,115) (55,897) (1,800) (42,036) (614,355) Impairment — (37,770) — — — — — — — — — (37,770) Intangible assets, Net December 31, 2021 55,182 11,341 600,299 25,273 53,827 2,729 7,847 73,151 53,820 — 16,866 900,335 Intangible assets, Net December 31, 2021 (US$) 8,659 1,780 94,200 3,966 8,447 428 1,231 11,479 8,446 — 2,646 141,282 |
Schedule of annual estimated amortization expenses of intangible assets | RMB US$ 2022 101,092 15,864 2023 84,724 13,295 2024 53,751 8,435 2025 33,932 5,325 2026 34,956 5,485 308,455 48,404 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LAND USE RIGHTS, NET | |
Land use rights | As of December 31, 2020 2021 RMB RMB US$ Cost 278,138 368,101 57,763 Accumulated amortization (22,765) (30,866) (4,843) Land use rights, net 255,373 337,235 52,920 |
Carrying value of land use rights pledged by company to secure banking borrowings | As of December 31, 2020 2021 RMB RMB US$ Land use rights 141,000 135,821 21,313 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL | |
Schedule of changes in the carrying amount of goodwill | For the years ended December 31, 2020 2021 RMB RMB US$ Balance as of January 1 989,530 994,993 156,136 Additions 5,463 344,664 54,085 Balance as of December 31 994,993 1,339,657 210,221 |
LONG-TERM INVESTMENTS, NET (Tab
LONG-TERM INVESTMENTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LONG-TERM INVESTMENTS, NET | |
Schedule of long-term investments | As of December 31, 2020 2021 RMB RMB US$ Equity investments without readily determinable fair values 17,137 17,137 2,689 Equity method investments 116,667 79,506 12,476 Available-for-sale debt investments 1,713 1,600 251 135,517 98,243 15,416 |
Schedule of equity method investments | Equity method investments: Increase (decrease) during the year ended As of December 31, 2019 December 31, 2020 As of December 31, 2020 Share Investments Share Distribution/derecognize Share Investments Cost of equity in equity Cost of equity gain of share Cost of equity gain in equity investments gain (loss) investee investments (loss) equity (gain) loss investments (loss) investee RMB RMB RMB RMB RMB RMB RMB RMB RMB Yizhuang Fund 101,000 7,152 108,152 — 12,254 (17,723) 101,000 1,683 102,683 Shihua DC Holdings 29,068 (29,068) — (29,068) — 29,068 — — — Jingliang Inter Cloud 6,000 (1,928) 4,072 — (903) — 6,000 (2,831) 3,169 Jingliang Century Cloud 4,000 — 4,000 — — — 4,000 — 4,000 ZJK Energy 5,907 (1,945) 3,962 — (803) — 5,907 (2,748) 3,159 WiFire Entities 20,000 (20,000) — — — — 20,000 (20,000) — Qidi Chengxin 3,930 — 3,930 — (274) — 3,930 (274) 3,656 169,905 (45,789) 124,116 (29,068) 10,274 11,345 140,837 (24,170) 116,667 Increase (decrease) during the year ended As of December 31, 2020 December 31, 2021 As of December 31, 2021 Share Investments Share Share Impairment Investments Investments Cost of equity in equity Cost of equity gain Impairment of Cost of equity gain of in equity in equity investments gain (loss) investee investments (loss) investment investments (loss) investment investee investee RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB US$ Yizhuang Fund 101,000 1,683 102,683 — (33,968) — 101,000 (32,285) — 68,715 10,783 Jingliang Inter Cloud 6,000 (2,831) 3,169 — (2,182) — 6,000 (5,013) — 987 155 Jingliang Century Cloud 4,000 — 4,000 — — — 4,000 — — 4,000 628 ZJK Energy 5,907 (2,748) 3,159 — (1,068) — 5,907 (3,816) — 2,091 328 WiFire Entities 20,000 (20,000) — — — — 20,000 (20,000) — — — Qidi Chengxin 3,930 (274) 3,656 — 57 — 3,930 (217) — 3,713 582 BJ Chaohulian — — — 5,000 (1,505) (3,495) 5,000 (1,505) (3,495) — — 140,837 (24,170) 116,667 5,000 (38,666) (3,495) 145,837 (62,836) (3,495) 79,506 12,476 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS | |
Schedule of borrowings and thier securities | As of December 31, 2020 2021 RMB RMB US$ Short-term bank borrowings 34,000 — — Long-term bank borrowings, current portion 68,500 230,805 36,218 Other long-term borrowings, current portion 111,828 153,353 24,065 214,328 384,158 60,283 Long-term bank borrowings, non-current portion 605,119 1,891,797 296,864 Other long-term borrowings, non-current portion 281,877 323,218 50,720 Total borrowings 1,101,324 2,599,173 407,867 Borrowings as of December 31, 2020 and 2021 were secured by the following: December 31, 2020 Short-term bank borrowings Secured by (RMB) 34,000 Unsecured borrowings. Long-term borrowings (including current portion) Secured by (RMB) 404,781 Secured by subsidiary’s property and equipment and land-use right with net book value of RMB505,004 and RMB40,034, respectively (Note 8/Note 10). 271,861 Secured by a subsidiary’s property and equipment and land-use right with net book value of RMB130,369 and RMB100,966, respectively (Note 8/Note 10), and a subsidiary’s stock. 190,682 Unsecured borrowing. 100,000 Secured by a subsidiary’s stock and the restricted cash of RMB104,400. 100,000 Secured by a subsidiary’s stock. 1,067,324 December 31, 2021 Long-term borrowings (including current portion) Secured by (RMB) 1,334,065 Secured by a subsidiary’s stock. 416,967 Secured by a subsidiary’s land-use right with net book value of RMB24,460 (US$3,838) (Note 10). 267,171 Secured by a subsidiary’s property and equipment and land-use right with net book value of RMB124,214 (US$19,492) and RMB96,201 (US$15,096), respectively (Note 8/Note 10), and a subsidiary’s stock. 212,302 Secured by a subsidiary’s property and equipment with net book value of RMB262,740 (US$41,230) (Note 8), and a subsidiary’s stock. 40,500 Secured by a subsidiary’s property and equipment and land-use right with net book value of RMB188,553 (US$29,588) and RMB15,160 (US$2,379), respectively (Note 8/Note 10). 328,168 Unsecured borrowing. 2,599,173 |
ACCRUED EXPENSES AND OTHER PA_2
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCRUED EXPENSES AND OTHER PAYABLES | |
Schedule of components of accrued expenses and other payables | As of December 31, 2020 2021 RMB RMB US$ Payables for purchase of property, equipment and software 1,148,742 1,464,086 229,747 Payroll and welfare payables 204,732 288,613 45,290 Share consideration due to the original shareholders for business combination (Note 4) — 214,577 33,672 Accrued service fees 47,572 62,498 9,807 Liability classified share-based payments (Note 4) — 55,156 8,655 Payables for office supplies and utilities 38,485 54,056 8,483 Payables for acquisitions 47,805 47,805 7,502 Value-added tax and other taxes payable 10,473 25,092 3,938 Amounts due to the original shareholders for acquired entities * 66,466 21,560 3,383 Interest payables 37,799 3,595 564 Others 29,489 61,051 9,579 1,631,563 2,298,089 360,620 * This represented the balance of unpaid cash consideration and the payables in other current liabilities due to original shareholders related to the acquisition of SH Shuzhong (Note 4) and Zhongke Zijing (Note 4). |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LEASES | |
Schedule of weighted-average remaining lease term and weighted-average discount rate | As of December 31, 2020 2021 Weighted average remaining lease term: Operating lease 12.2 years 10.8 years Finance lease 14.6 years 17.7 years Weighted average discount rate: Operating lease 6.56 % 7.01 % Finance lease 8.63 % 7.27 % |
Schedule of total lease cost | For the year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Lease cost Finance lease cost: Depreciation 216,664 255,458 274,052 43,005 Interest expenses 120,185 130,196 124,567 19,547 Operating lease cost 214,795 478,805 568,044 89,138 Total lease cost 551,644 864,459 966,663 151,690 |
Schedule of supplemental cash flow information related to leases | For the year ended December 31, 2019 2020 2021 RMB RMB RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash payments for operating leases 193,174 477,189 593,615 93,151 Financing cash payments for finance leases 333,614 376,232 579,660 90,961 |
Schedule of future lease payments under operating leases and finance leases | Operating Leases Finance Leases RMB US$ RMB US$ 2022 625,680 98,183 326,413 51,221 2023 486,679 76,371 234,013 36,722 2024 437,331 68,627 137,267 21,540 2025 404,703 63,507 95,157 14,932 2026 355,216 55,741 96,757 15,183 2027 and thereafter 2,032,828 318,995 1,722,737 270,335 Total future lease payments 4,342,437 681,424 2,612,344 409,933 Less: Imputed interest (1,450,385) (227,598) (1,248,561) (195,926) Present value of future lease payments * 2,892,052 453,826 1,363,783 214,007 * Present value of future operating lease payments consisted of current portion of operating lease liabilities and non-current portion of operating lease liabilities, amounting to RMB607,997 (US$95,408) and RMB2,284,055 (US$358,418) for the year ended December 31, 2021, respectively. |
BONDS PAYABLE (Tables)
BONDS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BONDS PAYABLE | |
Schedule of repayments of the principal amounts of the Company's long-term borrowings, including the bonds payable, bank and other borrowings | RMB US$ For the years ending December 31, 2022 408,194 64,055 2023 358,279 56,222 2024 347,990 54,607 2025 367,776 57,712 2026 279,825 43,911 2027 and thereafter 891,338 139,870 |
DEFERRED GOVERNMENT GRANTS (Tab
DEFERRED GOVERNMENT GRANTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
DEFERRED GOVERNMENT GRANTS | |
Schedule of movements of deferred government grants | For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Balance at beginning of the year 15,792 8,501 6,174 969 Recognized as a reduction of depreciation expense (7,291) (2,327) (1,806) (284) Balance at end of the year 8,501 6,174 4,368 685 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Schedule of changes in accumulated other comprehensive income by component, net of tax of nil | Foreign currency translation RMB Balance as of January 1, 2019 85,979 Current year other comprehensive loss (8,075) Balance as of December 31, 2019 77,904 Current year other comprehensive loss (133,439) Balance as of December 31, 2020 (55,535) Current year other comprehensive loss (34,908) Balance as of December 31, 2021 (90,443) Balance as of December 31, 2021, in US$ (14,192) |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |
Schedule of employee share option activity under the 2010 Plan | Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term value (US$) (Years) (US$) Outstanding, January 1, 2021 508,866 0.33 0.8 — Exercised (86,862) 0.73 — — Forfeited (60,000) 0.70 — — Outstanding, December 31, 2021 362,004 0.17 0.01 482 Vested and expected to vest at December 31, 2021 362,004 0.17 0.01 482 Exercisable as of December 31, 2021 362,004 0.17 0.01 482 |
Schedule of RSUs activity under the 2014 Plan | Weighted Weighted average average Aggregate Number of grant date remaining intrinsic RSUs fair value contractual life value (US$) (Years) (US$) Unvested, January 1, 2021 4,092,457 14.95 8.2 — Granted 3,833,221 12.31 — — Vested (3,768,186) 11.32 — — Forfeited (1,349,363) 17.34 — — Unvested, December 31, 2021 2,808,129 14.18 7.4 25,357 |
Schedule of total share-based compensation expenses relating to share options and RSUs granted to employees | Total share-based compensation expenses relating to share options, RSUs granted to employees and share-based compensation due to business combination recognized for the years ended December 31, 2019, 2020 and 2021 were as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Cost of revenues 1,884 15,251 13,713 2,152 Sales and marketing expenses 354 38,247 2,545 399 General and administrative expenses 40,501 82,672 292,947 45,970 Research and development expenses 1,177 634 10,805 1,696 43,916 136,804 320,010 50,217 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
TAXATION | |
Schedule of loss before income taxes | For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Non-PRC (178,762) (2,708,101) 675,369 105,980 PRC 2,953 137,178 (48,861) (7,667) (175,809) (2,570,923) 626,508 98,313 |
Schedule of income tax expenses | For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Current (70,324) (131,844) (111,082) (17,431) Deferred 64,887 22,508 (325) (51) (5,437) (109,336) (111,407) (17,482) |
Schedule of reconciliation of tax computed by applying the statutory income tax rate | The reconciliation of tax computed by applying the statutory income tax rate of 25% for the years ended December 31, 2019, 2020 and 2021 applicable to the PRC operations to income tax expenses were as follows: For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ (Loss) income before income taxes (175,809) (2,570,923) 626,508 98,313 Income tax benefits (loss) computed at applicable tax rates (25%) 43,952 642,731 (156,627) (24,578) Non-deductible expenses (23,082) (4,117) (13,116) (2,058) Research and development expenses 19,688 32,777 45,122 7,081 Preferential rate 20,213 26,554 14,232 2,233 Current and deferred tax rate differences (8,699) (36,391) 26,115 4,098 International rate differences (77,066) (711,962) 120,678 18,937 Tax exempted income 754 1,087 14,536 2,281 Foreign Investment — (10,263) (49,815) (7,817) Unrecognized tax benefits (expenses) 1,728 (58,449) (12,338) (1,936) Change in valuation allowance 25,423 6,465 (79,733) (12,512) Prior year provision to return true up (8,348) 2,232 (22,898) (3,593) Others — — 2,437 382 Income tax expenses (5,437) (109,336) (111,407) (17,482) |
Schedule of significant components of deferred taxes | As of December 31, 2020 2021 RMB RMB US$ Deferred tax assets Non-current Allowance for doubtful debt 39,886 46,360 7,275 Impairment of long-lived assets 13,467 40,289 6,322 Impairment of long-term investment 2,150 3,024 475 Accrued expense 24,986 16,836 2,641 Tax losses 171,211 262,209 41,146 Property and equipment 22,631 28,569 4,483 Intangible assets 5,765 5,773 906 Finance lease 390,925 386,849 60,705 Deferred government grant 1,357 1,046 164 Operating lease 292,210 623,074 97,774 Loss picked up on equity method investments 57,201 66,121 10,376 Valuation allowance (170,104) (261,960) (41,107) Total deferred tax assets, net of valuation allowance 851,685 1,218,190 191,160 Deferred tax liabilities Non-current Intangible assets 186,258 241,090 37,831 Property and equipment 143,873 139,566 21,901 Capitalized interest expense 19,339 28,604 4,489 Finance lease 313,102 306,598 48,112 Operating lease 292,210 623,074 97,774 Investment in subsidiaries 10,263 59,660 9,362 Gain picked up from equity method investments 252 — — Total non-current deferred tax liabilities 965,297 1,398,592 219,469 Net deferred tax assets (liabilities) (113,612) (180,402) (28,309) Analysis as: Deferred tax assets 185,481 168,002 26,363 Deferred tax liabilities 299,093 348,404 54,672 Net deferred tax liabilities (113,612) (180,402) (28,309) |
Schedule of roll-forward of unrecognized tax benefits | For the years ended December 31, 2020 2021 RMB RMB US$ Balance at beginning of year 1,722 62,584 9,821 Reversal based on tax positions related to prior years (629) (170) (27) Additions based on tax positions related to the current year 61,491 2,440 382 Balance at end of year 62,584 64,854 10,176 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
Schedule of significant related party transactions | For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Services provided to: -SZ Century — — 1,445 227 -Jingliang Inter Cloud — 880 480 75 -BJ New Internet — — 170 27 -Xiaomi Group 437,694 527,679 — — -Qidi Tech 7,427 3,478 — — -BJ Cheetah 169 98 — — -BJ Kingsoft 3,475 43 — — -Taiji 7,899 — — — -WiFire BJ 1,934 — — — -Others 1,494 305 144 23 Services provided by: -CYSD 38,918 38,918 38,918 6,107 -Beijing Huaqing — 4,389 1,254 197 -BJ Kingsoft 3,492 16,867 — — -APL — 8,124 — — -Jingliang Inter Cloud 8,829 4,956 — — -Taiji 19,942 — — — -Others 5,866 796 1,223 192 Loan to: -Shanghai Puping — 62,531 75,611 11,865 - BJ New Internet — — 261 41 -Taiji 1,500 — — — Interest income from loan to: -SH Shibei — — 1,321 207 -BJ Fastweb 700 — — — Lease deposit paid to: -Ziguang Finance Leasing 6,154 135 — — Lease payment paid to: -Ziguang Finance Leasing 17,156 30,776 10,431 1,637 -Beijing Qidi Yefeng — 4,516 2,154 338 -Tuspark Harmonious 68,832 43,703 — — Cash consideration for shares repurchase -Tuspark Innovation — — 1,701,804 267,050 -King Venture — 130,472 — — |
Schedule of related party balances | As of December 31, 2020 2021 RMB RMB US$ Amounts due from related parties: Current: -Shanghai Puping 62,531 138,142 21,677 - SZ Century — 16,996 2,667 -SH Shibei 9,800 11,121 1,745 - BJ New Internet — 441 69 -Ziguang Finance Leasing 2,042 — — -Others 1,146 1,267 200 75,519 167,967 26,358 Non-current: -Tuspark Harmonious 11,863 — — -Ziguang Finance Leasing 6,289 — — -Beijing Qidi Yefeng 1,124 — — -Others 1,286 — — 20,562 — — Amounts due to related parties: Current: - CYSD 189 6,870 1,078 -APL 783 765 120 - SZ Century — 571 90 -Ziguang Finance Leasing 31,681 — — -Tuspark Harmonious 13,557 — — -Beijing Qidi Yefeng 4,410 — — -Others 387 566 89 51,007 8,772 1,377 Non-current: -Tuspark Harmonious 715,992 — — -Ziguang Finance Leasing 22,247 — — -Beijing Qidi Yefeng 9,507 — — 747,746 — — |
(LOSS) EARNING PER SHARE (Table
(LOSS) EARNING PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
(LOSS) EARNING PER SHARE | |
Schedule of basic and diluted loss per share | For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Numerator: Net (loss) earning (181,246) (2,680,259) 515,101 80,831 Net income attributable to noncontrolling interest (1,046) (29,088) (15,003) (2,354) Net (loss) earning attributable to the Company (182,292) (2,709,347) 500,098 78,477 Plus undeclared cumulative dividend on perpetual convertible preferred shares — (22,806) — — Deemed distribution to perpetual convertible preferred shareholders — (470,643) — — Dividend distribution to perpetual convertible preferred shareholders — — (5,831) (915) Adjusted net (loss) earning attributable to ordinary shareholders - Basic (182,292) (3,202,796) 494,267 77,562 Changes in the fair value of convertible promissory notes — — (829,149) (130,112) Adjusted interest for convertible promissory notes — — 9,703 1,523 Adjusted net loss attributable to ordinary shareholders -Diluted (182,292) (3,202,796) (325,179) (51,027) Denominator: Weighted average number of shares outstanding—basic 668,833,756 716,888,919 865,352,554 865,352,554 Weighted average number of shares outstanding—diluted 668,833,756 716,888,919 911,591,433 911,591,433 (Loss) earning per share—Basic: Net (loss) earning (0.27) (4.47) 0.57 0.09 (0.27) (4.47) 0.57 0.09 Loss per share—Diluted: Net loss (0.27) (4.47) (0.36) (0.06) (0.27) (4.47) (0.36) (0.06) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
Summary of assets and liabilities measured at fair value on a recurring basis | Fair value measurement using: Quoted prices in Significant other active markets for observable Unobservable identical assets inputs inputs Fair value at (Level 1) (Level 2) (Level 3) December 31, 2020 RMB RMB RMB RMB Cash equivalents: - Time deposits 645,879 — — 645,879 Short-term investments: - Time deposits 285,872 — — 285,872 Long-term investments: - Available-for-sale debt securities — — 1,713 1,713 Assets 931,751 — 1,713 933,464 Short-term borrowings: - Current portion of bonds payable 1,998,088 — — 1,998,088 2025 Convertible Notes — — 3,014,057 3,014,057 Liabilities 1,998,088 — 3,014,057 5,012,145 Fair value measurement using: Quoted prices in Significant other active markets for observable Unobservable identical assets inputs inputs Fair value at (Level 1) (Level 2) (Level 3) December 31, 2021 RMB RMB RMB RMB US$ Cash equivalents: - Time deposits 15,013 — — 15,013 2,356 Short-term investments: - Time deposits — — — — — Long-term investments: - Available-for-sale debt securities — — 1,600 1,600 251 Assets 15,013 — 1,600 16,613 2,607 - Current portion of bonds payable Convertible promissory notes - 2025 Convertible promissory notes — — 513,754 513,754 80,619 - 2026 Convertible promissory notes 3,021,852 — — 3,021,852 474,195 Accrued expenses and other payables: -Share consideration due to the original shareholders for business combination (Note 4) — — 214,577 214,577 33,672 Liabilities 3,021,852 728,331 3,750,183 588,486 |
Summary of reconciliation of all liabilities measured at fair value on a recurring basis using significant unobservable inputs (level 3) | 2025 Convertible Notes RMB Fair value at issuance date (Note 19) 1,409,385 Foreign exchange loss (219,001) Changes in the fair value 2,544,220 Reclassification to equity (720,547) Fair value at December 31, 2020 3,014,057 Foreign exchange loss (31,348) Changes in the fair value (829,149) Reclassification to equity (1,639,806) Fair value at December 31, 2021 513,754 Fair value at December 31, 2021 (US$) 80,619 Share consideration due to the original shareholders for business combination RMB Fair value at grant date (Note 4) 214,953 Changes in the fair value (376) Fair value at December 31, 2021 214,577 Fair value at December 31, 2021 (US$) 33,672 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of commitments to purchase certain computer and network equipment and construction-in-progress | |
Purchase Commitments | As of December 31, 2021, the Company has the following commitments to purchase certain computer and network equipment and construction-in-progress: RMB US$ For the year ending December 31, 2022 1,586,604 248,973 2023 and thereafter 32,725 5,135 1,619,329 254,108 |
Schedule of outstanding purchase commitments in relation to bandwidth and cabinet capacity | |
Purchase Commitments | As of December 31, 2021, the Company has outstanding purchase commitments in relation to bandwidth and cabinet capacity consisting of the following: RMB US$ For the year ending December 31, 2022 698,586 109,623 2023 110,779 17,384 2024 64,525 10,125 2025 2,314 363 2026 2,314 363 2027 and thereafter 3,355 526 881,873 138,384 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |
Condensed Balance Sheets | Condensed balance sheets As of December 31, Notes 2020 2021 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 62,116 100,019 15,695 Prepaid expenses and other current assets 97,391 93,546 14,679 Amounts due from subsidiaries (b) 9,320,580 9,844,114 1,544,756 Total current assets 9,480,087 10,037,679 1,575,130 Non-current assets: Investments in subsidiaries 2,169,222 2,333,998 366,255 Total non-current assets 2,169,222 2,333,998 366,255 Total assets 11,649,309 12,371,677 1,941,385 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other payables 87,001 54,893 8,614 Account payables 52 51 8 Current portion of bonds payable 1,943,619 — — Amount due to related parties 783 765 120 Amounts due to subsidiaries (b) 38,863 806,788 126,602 Total current liabilities 2,070,318 862,497 135,344 Non-current liabilities: Convertible promissory notes 3,014,057 4,266,951 669,578 Total non-current liabilities 3,014,057 4,266,951 669,578 Total liabilities 5,084,375 5,129,448 804,922 Shareholders’ equity: Class A Ordinary shares (par value of US$0.00001 per share; 1,199,790,000 and shares authorized; 672,024,600 and 859,932,323 issued and outstanding as of December 31, 2020 and 2021, respectively) 44 56 8 Class B Ordinary Shares (par value of US$0.00001 per share; 300,000,000 and 300,000,000 shares authorized; 145,875,113 and 30,721,723 issued and outstanding as of December 31, 2020 and 2021, respectively) 12 4 1 Class C Ordinary Shares (par value of US$0.00001 per share; 60,000 and 60,000 shares authorized; 60,000 and 60,000 shares issued and outstanding as of December 31, 2020 and 2021, respectively) — — — Series A perpetual convertible preferred shares (par value of US$0.00001 per share; 150,000 and 150,000 shares authorized; 150,000 and nil issued outstanding 1,047,468 — — Additional paid-in capital 13,083,119 15,198,055 2,384,906 Accumulated other comprehensive loss (55,535) (90,443) (14,192) Accumulated deficit (7,160,651) (7,515,920) (1,179,412) Treasury stock (349,523) (349,523) (54,848) Total shareholders’ equity 6,564,934 7,242,229 1,136,463 Total liabilities and shareholders’ equity 11,649,309 12,371,677 1,941,385 |
Condensed Statements of Operations | Condensed statements of operations For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Operating Expenses General and administrative expenses (44,490) (94,175) (275,881) (43,292) Operating loss (44,490) (94,175) (275,881) (43,292) Other loss (274,572) (168,656) (119,932) (18,820) Changes in the fair value of convertible promissory notes — (2,544,220) 829,149 130,112 Share of profits from subsidiaries and Consolidated VIEs 136,770 97,704 66,762 10,477 Net (loss) income attributable to VNET Group, Inc. (182,292) (2,709,347) 500,098 78,477 Income tax expense — — — — Net (loss) income (182,292) (2,709,347) 500,098 78,477 |
Condensed Statements of Comprehensive Loss | Condensed statements of comprehensive (loss) income For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net (loss) income (182,292) (2,709,347) 500,098 78,477 Other comprehensive loss, net of tax of nil: Foreign currency translation adjustments, net of tax of nil (8,075) (133,439) (34,908) (5,478) Other comprehensive loss, net of tax of nil: (8,075) (133,439) (34,908) (5,478) Comprehensive (loss) income (190,367) (2,842,786) 465,190 72,999 Comprehensive (loss) income attributable to VNET Group, Inc. (190,367) (2,842,786) 465,190 72,999 |
Condensed Statements of Cash Flows | Condensed statements of cash flows For the years ended December 31, 2019 2020 2021 RMB RMB RMB US$ Net cash used in operating activities (142,989) (743,944) (218,664) (34,313) Net cash (used in) generated from investing activities (1,011,257) (3,036,370) 113,530 17,815 Net cash generated from financing activities 807,765 3,598,441 143,037 22,446 Net (decrease) increase in cash and cash equivalents and restricted cash (346,481) (181,873) 37,903 5,948 Cash and cash equivalents and restricted cash at beginning of the year 590,470 243,989 62,116 9,747 Cash and cash equivalents and restricted cash at end of the year 243,989 62,116 100,019 15,695 |
Parent Company | |
Related Party Transaction [Line Items] | |
Schedule of significant related party transactions | The Company had the following related party balances as of December 31, 2020 and 2021: As of December 31, 2020 2021 RMB RMB US$ Amounts due from subsidiaries - VNET HK 7,043,586 7,195,150 1,129,076 - WiFire Open Network Group Ltd. 2,157,285 2,286,602 358,818 - VNET Future Technology Limited — 306,034 48,023 - VNET Mobile 56,265 55,679 8,737 - HongKong Fastweb Holdings Co., Limited 62,780 — — - Others 664 649 102 9,320,580 9,844,114 1,544,756 Amounts due to subsidiaries - DYX 9 462,551 72,584 - HongKong Fastweb Holdings Co., Limited — 212,778 33,390 - VNET Beijing 35,783 76,453 11,997 - Others 3,071 55,006 8,631 38,863 806,788 126,602 |
ORGANIZATION - Significant subs
ORGANIZATION - Significant subsidiaries of the Company and consolidated variable interest entities (Details) | 12 Months Ended |
Dec. 31, 2021 | |
21ViaNet Group Limited ("21Vianet HK") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
21Vianet Data Center Co., Ltd. ("21Vianet China") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
21Vianet (Foshan) Technology Co., Ltd. ("FS Technology") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
21Vianet Anhui Suzhou Technology Co., Ltd.("SZ Technology") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
21Vianet Hangzhou Information Technology Co.,Ltd. ("HZ Technology") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
iJoy Holding Limited ("iJoy BVI") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
21Vianet Mobile Limited ("21V Mobile") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
WiFire Group Inc. ("WiFire Group") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Joytone Infotech Co., Ltd. ("SZ Zhuoaiyi") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
21Vianet Ventures Limited (Ventures) | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Abitcool (China) Broadband Inc. ("aBitCool DG") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Diyixian.com Limited ("Diyixian.com") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
21Vianet Zhuhai Financial Leasing Limited | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
21Vianet DRP Investment Holdings Limited [Member] | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Shihua DC Investment Holdings Limited. | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 51.00% |
21Vianet (Xi'an) Technology Co., Ltd. ("Xi'an Tech") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 51.00% |
Foshan Zhuoyi Intelligence Date Co., Ltd. ("FS Zhuoyi") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 51.00% |
Beijing Hongyuan Network Technology Co., Ltd [Member] | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 51.00% |
Dermot Holding Limited [Member] | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Shihua DC Investment Holdings 2 Limited ("Shihua Holdings 2") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Shanghai Waigaoqiao Free Trade Zone Hongming Logistics Co., Ltd. ("Hongming Logistics") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Shanghai Edge Connect Technology Co., Ltd. ("SH Edge Connect") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Beijing Jianghe Cloud Technology Co.,Ltd. ("BJ JHC") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Beijing Shuntou Green Energy Data Technology Co.,Ltd. ("BJ ST") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Shenzhen Diyixian Telecommunication Co., Ltd | Variable Interest Entity, Primary Beneficiary | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 20.00% |
Gu'an Junhui | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Jiwa Senlin (Beijing) Engineering Co.,Ltd.( "Jiwa Engineering BJ") | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
BJ TenxCloud | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Zhongke Zijing | Subsidiaries | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
ORGANIZATION - Significant su_2
ORGANIZATION - Significant subsidiaries of the Company and consolidated variable interest entities (Parenthetical) (Details) | Nov. 11, 2021 | Aug. 16, 2021 | Jul. 15, 2021 | Nov. 17, 2020 | Sep. 11, 2020 | Jul. 21, 2020 | Jun. 30, 2020 | Aug. 10, 2014 |
Dermot Entities | ||||||||
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | ||||||||
Percentage of equity interests acquired | 100.00% | |||||||
SH Shuzhong | ||||||||
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | ||||||||
Percentage of equity interests acquired | 100.00% | |||||||
Shulifang | ||||||||
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | ||||||||
Percentage of equity interests acquired | 100.00% | |||||||
LF Huahai | ||||||||
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | ||||||||
Percentage of equity interests acquired | 100.00% | |||||||
BJ JHC | ||||||||
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | ||||||||
Percentage of equity interests acquired | 100.00% | |||||||
BJ TenxCloud | ||||||||
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | ||||||||
Percentage of equity interests acquired | 100.00% | 100.00% | ||||||
SH Hesheng | ||||||||
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | ||||||||
Percentage of equity interests acquired | 100.00% | |||||||
Zhongke Zijing | ||||||||
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | ||||||||
Percentage of equity interests acquired | 100.00% |
ORGANIZATION - Additional Infor
ORGANIZATION - Additional Information (Details) $ in Thousands | Dec. 19, 2016 | Jan. 31, 2011CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) |
Organization | ||||
Consolidated VIE's assets pledged as collateral | ¥ 0 | |||
Consolidated VIE's liabilities pledged as collateral | 0 | |||
Option Agreement | ||||
Organization | ||||
Exclusive option price | ¥ 1 | |||
Agreement agreement between 21Vianet China and the 21Vianet Technology, term | 10 years | 10 years | ||
Agreement agreement between 21Vianet China and the 21Vianet Technology, expiration date | Dec. 18, 2026 | Dec. 18, 2016 | ||
Technical Consulting and Service Agreement | ||||
Organization | ||||
Agreement agreement between 21Vianet China and the 21Vianet Technology, term | 10 years | 10 years | ||
Agreement agreement between 21Vianet China and the 21Vianet Technology, expiration date | Dec. 18, 2026 | Dec. 18, 2016 | ||
Service fee per hour | ¥ 1,000 | |||
Loan Agreement | Shareholders | Loan one | ||||
Organization | ||||
Loan facility provided to related parties | ¥ 7,000,000 | |||
Loan Agreement | Shareholders | Loan Two | ||||
Organization | ||||
Loan facility provided to related parties | ¥ 3,000,000 | |||
Variable Interest Entity, Primary Beneficiary | ||||
Organization | ||||
Assets pledged as collateral | ¥ 451,293,000 | $ 70,818 |
ORGANIZATION - Financial inform
ORGANIZATION - Financial information of the consolidated VIEs (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Aug. 16, 2021CNY (¥) | Aug. 16, 2021USD ($) | Dec. 31, 2020USD ($) | |
Current assets: | ||||||||
Cash and cash equivalents | ¥ 1,372,481 | ¥ 2,710,349 | ¥ 1,808,483 | $ 215,372 | ¥ 3 | |||
Restricted cash | 327,767 | 270,450 | 478,873 | 51,434 | ||||
Prepaid expenses and other current assets | 2,049,911 | 1,866,184 | 321,673 | |||||
Amounts due from related parties | 167,967 | 75,519 | 26,358 | |||||
Total current assets | 5,324,123 | 6,055,607 | 835,469 | |||||
Non-current assets: | ||||||||
Property and equipment, net | 10,092,419 | 8,106,425 | 1,583,721 | |||||
Intangible assets, net | 900,335 | 658,195 | 1,224,471 | 141,282 | $ 1,552,460 | |||
Land use rights, net | 337,235 | 255,373 | 52,920 | 36,013 | $ 5,651 | |||
Operating lease right-of-use assets, net | 2,869,338 | 1,325,526 | 450,262 | |||||
Goodwill | 1,339,657 | 994,993 | 989,530 | 210,221 | $ 156,136 | |||
Restricted cash | 8,225 | 135,638 | 69,821 | 1,291 | ||||
Deferred tax assets, net | 168,002 | 185,481 | 26,363 | |||||
Amounts due from related parties | 20,562 | |||||||
Other non-current assets | 1,957,462 | 1,500,438 | 307,169 | 7,349 | 1,154 | |||
Long-term investments, net | 98,243 | 135,517 | 15,416 | |||||
Total non-current assets | 17,770,916 | 13,318,148 | 2,788,645 | |||||
Total assets | 23,095,039 | 19,373,755 | 3,624,114 | |||||
Current liabilities: | ||||||||
Short-term bank borrowings | 34,000 | |||||||
Accounts payable and notes payable | 493,506 | 289,387 | 77,442 | |||||
Accrued expenses and other payables | 2,298,089 | 1,631,563 | 360,620 | |||||
Advance from customers | 1,041,902 | 1,041,594 | 163,497 | |||||
Deferred revenue | 55,695 | 63,245 | 8,740 | |||||
Income tax payable | 43,770 | 29,028 | 6,868 | |||||
Amounts due to related parties | 8,772 | 51,007 | 1,377 | |||||
Current portion of finance lease liabilities | 244,032 | 403,843 | 38,294 | |||||
Current portion of long-term borrowings | 230,805 | 68,500 | 36,218 | |||||
Current portion of deferred government grant | 2,074 | 2,074 | 325 | |||||
Current portion of operating lease liabilities | 607,997 | 452,272 | 95,408 | |||||
Total current liabilities | 5,179,995 | 6,121,960 | 812,854 | |||||
Non-current liabilities: | ||||||||
Amounts due to related parties-non current | 747,746 | |||||||
Non-current portion of finance lease liabilities | 1,119,751 | 688,128 | 175,713 | |||||
Unrecognized tax benefits | 77,573 | 68,696 | 12,173 | |||||
Deferred tax liabilities | 348,404 | 299,093 | 54,672 | ¥ 50,959 | $ 7,997 | |||
Non-current portion of deferred government grant | 2,294 | 4,100 | 360 | |||||
Non-current portion of operating lease liabilities | 2,284,055 | 645,499 | 358,418 | |||||
Total non-current liabilities | 10,314,043 | 6,354,315 | 1,618,498 | |||||
Total liabilities | 15,494,038 | 12,476,275 | 2,431,352 | |||||
Net profit | 515,101 | $ 80,831 | (2,680,259) | (181,246) | ||||
Net cash generated from operating activities | 1,387,922 | 217,796 | 714,243 | 802,922 | ||||
Net cash generated from (used in) investing activities | (3,772,613) | (592,007) | (3,889,174) | (1,611,983) | ||||
Net cash (used in) generated from financing activities | 967,577 | 151,833 | 4,163,255 | 461,557 | ||||
Variable Interest Entity, Primary Beneficiary | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 660,234 | 737,556 | 103,605 | |||||
Restricted cash | 317,199 | 260,450 | 49,775 | |||||
Accounts receivable (net of allowance for doubtful debt of RMB66,416 and RMB67,632 (US$10,365) as of December 31, 2019 and 2020, respectively) | 1,139,372 | 664,610 | 178,792 | |||||
Prepaid expenses and other current assets | 1,781,456 | 1,622,662 | 279,549 | |||||
Amounts due from related parties | 29,812 | 12,968 | 4,678 | |||||
Total current assets | 3,928,073 | 3,298,246 | 616,399 | |||||
Non-current assets: | ||||||||
Property and equipment, net | 6,754,511 | 5,170,878 | 1,059,930 | |||||
Intangible assets, net | 382,173 | 342,288 | 59,971 | |||||
Land use rights, net | 45,476 | 46,719 | 7,136 | |||||
Operating lease right-of-use assets, net | 2,666,182 | 1,134,073 | 418,382 | |||||
Goodwill | 308,110 | 308,110 | 48,349 | |||||
Restricted cash | 7,825 | 27,719 | 1,228 | |||||
Deferred tax assets, net | 136,903 | 168,181 | 21,483 | |||||
Amounts due from related parties | 20,562 | |||||||
Other non-current assets | 612,198 | 435,144 | 96,067 | |||||
Long-term investments, net | 133,280 | 172,593 | 20,915 | |||||
Total non-current assets | 11,046,658 | 7,826,267 | 1,733,461 | |||||
Total assets | 14,974,731 | 11,124,513 | 2,349,860 | |||||
Current liabilities: | ||||||||
Short-term bank borrowings | 0 | 34,000 | ||||||
Accounts payable and notes payable | 352,478 | 182,669 | 55,311 | |||||
Accrued expenses and other payables | 1,342,886 | 981,961 | 210,728 | |||||
Advance from customers | 1,041,902 | 1,041,594 | 163,497 | |||||
Deferred revenue | 49,055 | 58,066 | 7,698 | |||||
Income tax payable | 20,972 | 12,743 | 3,291 | |||||
Amounts due to inter-companies | 5,203,974 | 4,248,422 | 816,617 | |||||
Amounts due to related parties | 8,007 | 50,193 | 1,256 | |||||
Current portion of finance lease liabilities | 200,961 | 362,760 | 31,535 | |||||
Current portion of long-term borrowings | 350,609 | 165,328 | 55,018 | |||||
Current portion of deferred government grant | 2,074 | 2,074 | 325 | |||||
Current portion of operating lease liabilities | 579,391 | 427,114 | 90,919 | |||||
Total current liabilities | 9,152,309 | 7,566,924 | 1,436,195 | |||||
Non-current liabilities: | ||||||||
Amounts due to inter-companies | 1,020,972 | 1,020,972 | 160,213 | |||||
Amounts due to related parties-non current | 0 | 747,746 | ||||||
Long-term borrowings | 1,480,709 | 570,135 | 232,356 | |||||
Non-current portion of finance lease liabilities | 704,255 | 299,399 | 110,513 | |||||
Unrecognized tax benefits | 77,192 | 68,317 | 12,113 | |||||
Deferred tax liabilities | 132,370 | 155,281 | 20,772 | |||||
Non-current portion of deferred government grant | 2,294 | 4,100 | 360 | |||||
Non-current portion of operating lease liabilities | 2,114,309 | 497,268 | 331,781 | |||||
Total non-current liabilities | 5,532,101 | 3,363,218 | 868,108 | |||||
Total liabilities | 14,684,410 | 10,930,142 | $ 2,304,303 | |||||
Revenues | 5,145,110 | 807,380 | 3,885,141 | 2,858,176 | ||||
Net profit | 92,594 | 14,530 | 73,748 | 111,592 | ||||
Net cash generated from operating activities | 866,712 | 136,006 | 748,418 | 495,308 | ||||
Net cash generated from (used in) investing activities | (2,695,707) | (423,015) | (1,943,358) | (1,247,764) | ||||
Net cash (used in) generated from financing activities | 1,788,528 | 280,659 | 1,302,082 | 885,286 | ||||
Net increase in cash and cash equivalents and restricted cash | ¥ (40,467) | $ (6,350) | ¥ 107,142 | ¥ 132,830 |
ORGANIZATION - Financial info_2
ORGANIZATION - Financial information of the consolidated VIEs (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity | |||
Accounts receivable, allowance for doubtful accounts | ¥ 82,654 | $ 12,970 | ¥ 67,632 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives of property and equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Property | Minimum | |
PROPERTY AND EQUIPMENT, NET | |
Property and equipment, estimated useful life (in years) | 25 years |
Property | Maximum | |
PROPERTY AND EQUIPMENT, NET | |
Property and equipment, estimated useful life (in years) | 46 years |
Optical Fibers | Minimum | |
PROPERTY AND EQUIPMENT, NET | |
Property and equipment, estimated useful life (in years) | 10 years |
Optical Fibers | Maximum | |
PROPERTY AND EQUIPMENT, NET | |
Property and equipment, estimated useful life (in years) | 20 years |
Computer and network equipment | Minimum | |
PROPERTY AND EQUIPMENT, NET | |
Property and equipment, estimated useful life (in years) | 1 year |
Computer and network equipment | Maximum | |
PROPERTY AND EQUIPMENT, NET | |
Property and equipment, estimated useful life (in years) | 10 years |
Office equipment | Minimum | |
PROPERTY AND EQUIPMENT, NET | |
Property and equipment, estimated useful life (in years) | 2 years |
Office equipment | Maximum | |
PROPERTY AND EQUIPMENT, NET | |
Property and equipment, estimated useful life (in years) | 8 years |
Motor vehicles | Minimum | |
PROPERTY AND EQUIPMENT, NET | |
Property and equipment, estimated useful life (in years) | 2 years |
Motor vehicles | Maximum | |
PROPERTY AND EQUIPMENT, NET | |
Property and equipment, estimated useful life (in years) | 8 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Weighted average useful lives of intangible assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Purchased software | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 5 years 3 months 18 days |
Radio Spectrum License | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 15 years |
Operating Permits | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 33 years 7 months 6 days |
Customer relationships | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 8 years 3 months 18 days |
Licenses | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 15 years |
Supplier relationships | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 10 years |
Trade names | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 20 years |
Platform Software | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 5 years |
Non-compete agreement | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 5 years |
Internal-use software | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 3 years 8 months 12 days |
Customer contract. | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 6 years 2 months 12 days |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment charges associated with its long-lived assets and acquired intangibles (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Long-lived assets impairment | ¥ 109,267 | $ 17,146 | ¥ 81,619 |
Discount rate | 13.00% | 13.00% | |
Impairment of equipment | ¥ 106,311 | $ 16,683 | 35,793 |
Impairment of intangible assets | 37,770 | 38,654 | |
Impairment of other non-current assets | 2,956 | 463 | 7,172 |
Other Asset Impairment Charges | ¥ 2,956 | $ 463 | ¥ 7,172 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Interest expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Interest expense and amortization cost of bonds payable | ¥ 133,959 | $ 21,021 | ¥ 223,785 | ¥ 223,832 |
Interest expense and amortization cost of 2025 and 2026 Convertible Notes (Note 19) | 25,919 | 4,067 | 18,880 | |
Interest expense on bank and other borrowings | 103,925 | 16,308 | 39,424 | 14,212 |
Interest expense on finance leases | 124,567 | 19,547 | 130,196 | 120,185 |
Total interest costs | 388,370 | 60,943 | 412,285 | 358,229 |
Less: Total interest costs capitalized | (53,420) | (8,382) | (31,676) | (12,274) |
Interest expenses, net | ¥ 334,950 | $ 52,561 | ¥ 380,609 | ¥ 345,955 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 02, 2019USD ($) | Jan. 01, 2019 | Dec. 31, 2021CNY (¥)segmentshares | Dec. 31, 2021USD ($)segmentshares | Dec. 31, 2020CNY (¥)segmentshares | Dec. 31, 2019CNY (¥)segmentshares | Dec. 31, 2021USD ($) | Jan. 01, 2020CNY (¥) |
Significant accounting policies | ||||||||
Accumulated deficit | ¥ (7,590,382) | ¥ (7,235,113) | $ (1,191,097) | |||||
Recorded credit loss | 18,399 | $ 2,887 | 2,393 | ¥ 1,557 | ||||
Internal use software development costs, Amount capitalized | ¥ 11,422 | ¥ 8,684 | ¥ 13,189 | 1,792 | ||||
Lease, Practical Expedients, Package | true | |||||||
Percentage of interest in limited partnerships applies the equity method of accounting | 3.00% | 3.00% | ||||||
Number of reporting units | segment | 1 | 1 | 1 | 1 | ||||
Impairment of long-lived assets | ¥ 109,267 | $ 17,146 | ¥ 81,619 | |||||
Deferred revenue | 55,695 | 63,245 | $ 8,740 | |||||
Revenue recognized | 53,499 | 8,395 | ||||||
Advertising expense | 7,272 | $ 1,141 | ¥ 7,779 | ¥ 6,095 | ||||
Share repurchase plan, shares repurchased (in shares) | shares | 0 | 242,830 | ||||||
Share Repurchase Plan, share value | ¥ 1,704,890 | ¥ 130,650 | ¥ 11,840 | |||||
Cumulative Effect, Period of Adoption, Adjustment [Member] | Accounting Standards Update (ASU) 2016-13 | ||||||||
Significant accounting policies | ||||||||
Accumulated deficit | ¥ 2,740 | |||||||
American Depository Shares | ||||||||
Significant accounting policies | ||||||||
Share Repurchase Plan, period | 13 months | |||||||
Share repurchase plan, shares repurchased (in shares) | shares | 0 | 0 | 0 | 242,830 | ||||
Share Repurchase Plan, share value | ¥ 0 | ¥ 11,840 | ||||||
Maximum | ||||||||
Significant accounting policies | ||||||||
Official exchange rate of foreign currency remeasured (RMB per one U.S. dollar) | 6.3726 | 6.3726 | ||||||
Maximum | American Depository Shares | ||||||||
Significant accounting policies | ||||||||
Share Repurchase Plan, value | $ | $ 20,000 |
CONCENTRATION OF RISKS (Details
CONCENTRATION OF RISKS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥)itemcustomer | Dec. 31, 2020CNY (¥)itemcustomer | Dec. 31, 2019customeritem | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($)item | |
CONCENTRATION OF RISKS | |||||
Depreciation (appreciation) of RMB against US$ | (2.30%) | (6.50%) | 1.60% | ||
Customer Concentration Risk | |||||
CONCENTRATION OF RISKS | |||||
Number of customers who contributed more than 2% of Company's revenue | customer | 0 | 0 | 0 | ||
Cabinet and Bandwidth Supply | |||||
CONCENTRATION OF RISKS | |||||
Number of suppliers | item | 5 | 5 | 5 | 5 | 5 |
Bandwidth and Cabinet Resources | Supplier Concentration Risk | Largest five suppliers | |||||
CONCENTRATION OF RISKS | |||||
Concentration of risk, percentage | 39.00% | 39.00% | 21.00% | ||
Bandwidth and Cabinet Resources | Customer Concentration Risk | Largest single customer | Maximum | |||||
CONCENTRATION OF RISKS | |||||
Concentration of risk, percentage | 10.00% | 8.00% | |||
Bandwidth and Cabinet Resources | Customer Concentration Risk | Aggregate local subsidiaries of a telecommunication carrier | |||||
CONCENTRATION OF RISKS | |||||
Concentration of risk, percentage | 6.00% | 3.00% | 4.00% | ||
Bandwidth and Cabinet Resources | Customer Concentration Risk | Customers on a stand-alone basis | Minimum | |||||
CONCENTRATION OF RISKS | |||||
Concentration of risk, percentage | 2.00% | 2.00% | 2.00% | ||
PRC | Credit Concentration Risk | |||||
CONCENTRATION OF RISKS | |||||
Cash and cash equivalents, restricted cash and short-term investments, held at major institutions | ¥ 1,410,271 | ¥ 1,419,855 | $ 221,303 | ||
Outside the PRC | Credit Concentration Risk | |||||
CONCENTRATION OF RISKS | |||||
Cash and cash equivalents, restricted cash and short-term investments, held at major institutions | ¥ 298,202 | $ 46,794 | $ 303,824 |
ACQUISITION AND DISPOSAL OF S_3
ACQUISITION AND DISPOSAL OF SUBSIDIARIES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Aug. 16, 2021CNY (¥) | Aug. 16, 2021USD ($) | Jul. 15, 2021CNY (¥) | Jul. 15, 2021USD ($) | Nov. 17, 2020CNY (¥) | Jun. 30, 2020CNY (¥) | Jun. 30, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | Jul. 15, 2021USD ($) | Dec. 31, 2020USD ($) |
Business Acquisitions [Abstract] | ||||||||||||||||
Cash consideration | ¥ 679,941 | $ 106,699 | ¥ 1,302,601 | ¥ 82,536 | ||||||||||||
Liability classified share-based payments (Note 4) | ¥ 55,156 | 55,156 | $ 8,655 | |||||||||||||
Net assets acquired: | ||||||||||||||||
Goodwill | 1,339,657 | 1,339,657 | ¥ 994,993 | ¥ 989,530 | 210,221 | $ 156,136 | ||||||||||
Payments to Acquire Productive Assets | ¥ 151,884 | $ 23,834 | ||||||||||||||
SH Shuzhong | ||||||||||||||||
Business Acquisitions [Abstract] | ||||||||||||||||
Equity interests acquired (as a percent) | 100.00% | 100.00% | ||||||||||||||
Cash consideration | ¥ 36,667 | |||||||||||||||
Net assets acquired: | ||||||||||||||||
Property and equipment, net | 348,475 | ¥ 348,475 | ||||||||||||||
Operating lease right-of-use assets, net | 81,034 | 81,034 | ||||||||||||||
Deferred tax assets | 14,848 | 14,848 | ||||||||||||||
Other current assets | 44,774 | 44,774 | ||||||||||||||
Total assets acquired | 524,339 | 524,339 | ||||||||||||||
Other current liabilities | (406,932) | (406,932) | ||||||||||||||
Operating lease liabilities | (45,034) | (45,034) | ||||||||||||||
Deferred tax liabilities | (41,169) | (41,169) | ||||||||||||||
Total liabilities assumed | (493,135) | (493,135) | ||||||||||||||
Net assets acquired | 31,204 | 31,204 | ||||||||||||||
Purchase consideration | 36,667 | |||||||||||||||
Goodwill | 5,463 | 5,463 | ||||||||||||||
SH Shuzhong | Customer contract. | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Intangible assets | 33,500 | 33,500 | ||||||||||||||
Other non-current assets | 1,685 | 1,685 | ||||||||||||||
SH Shuzhong | Purchased software | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Intangible assets | ¥ 23 | ¥ 23 | ||||||||||||||
BJ TenxCloud | ||||||||||||||||
Business Acquisitions [Abstract] | ||||||||||||||||
Equity interests acquired (as a percent) | 100.00% | 100.00% | 100.00% | |||||||||||||
Cash consideration | ¥ 199,790 | $ 31,351 | ||||||||||||||
Share settled liabilities fair value | 214,577 | $ 33,672 | 214,953 | 33,731 | ||||||||||||
Contingent Consideration, cash to be paid | 70,000 | 70,000 | 10,985 | |||||||||||||
Contingent Consideration, Shares to be issued | 167,342 | 167,342 | 20,260 | |||||||||||||
Liability classified share-based payments (Note 4) | 55,156 | 55,156 | $ 8,655 | |||||||||||||
Net assets acquired: | ||||||||||||||||
Property and equipment, net | 470 | $ 74 | ||||||||||||||
Operating lease right-of-use assets, net | 2,376 | 373 | ||||||||||||||
Deferred tax assets | 11,097 | 1,741 | ||||||||||||||
Other non-current assets | 52,328 | 8,210 | ||||||||||||||
Total assets acquired | 113,071 | 17,742 | ||||||||||||||
Other current liabilities | (29,395) | (4,612) | ||||||||||||||
Operating lease liabilities | (2,500) | (392) | ||||||||||||||
Deferred tax liabilities | (11,097) | (1,741) | ||||||||||||||
Total liabilities assumed | (42,992) | (6,745) | ||||||||||||||
Net assets acquired | 70,079 | 10,997 | ||||||||||||||
Purchase consideration | 414,743 | $ 65,082 | ||||||||||||||
Goodwill | 344,664 | 54,085 | ||||||||||||||
Revenue of acquiree since the acquisition date included in the consolidated statement of operations | 91,038 | 14,286 | ||||||||||||||
Net profit of acquiree since the acquisition date included in the consolidated statement of operations | ¥ 9,351 | $ 1,467 | ||||||||||||||
BJ TenxCloud | Maximum | ||||||||||||||||
Business Acquisitions [Abstract] | ||||||||||||||||
Service period | 36 months | 36 months | ||||||||||||||
BJ TenxCloud | Minimum | ||||||||||||||||
Business Acquisitions [Abstract] | ||||||||||||||||
Service period | 12 months | 12 months | ||||||||||||||
BJ TenxCloud | Technology platform (Note 9) | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Intangible assets | 27,800 | 4,362 | ||||||||||||||
BJ TenxCloud | Customer relationships | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Intangible assets | ¥ 19,000 | $ 2,982 | ||||||||||||||
BJ JHC | ||||||||||||||||
Business Acquisitions [Abstract] | ||||||||||||||||
Equity interests acquired (as a percent) | 100.00% | |||||||||||||||
Cash consideration | ¥ 432,015 | |||||||||||||||
Contingent Consideration, cash to be paid | ¥ 200,000 | 200,000 | ¥ 200,000 | |||||||||||||
Net assets acquired: | ||||||||||||||||
Property and equipment, net | 279,556 | |||||||||||||||
Operating lease right-of-use assets, net | 112,398 | |||||||||||||||
Deferred tax assets | 3,150 | |||||||||||||||
Other non-current assets | 4,428 | |||||||||||||||
Other current assets | 8,833 | |||||||||||||||
Other current liabilities | (90,805) | |||||||||||||||
Operating lease liabilities | (120,120) | |||||||||||||||
Deferred tax liabilities | (55,288) | |||||||||||||||
BJ JHC | Customer contract. | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Intangible assets | ¥ 33,208 |
ACQUISITION AND DISPOSAL OF S_4
ACQUISITION AND DISPOSAL OF SUBSIDIARIES - Asset Acquisitions (Details) ¥ in Thousands, $ in Thousands | Nov. 11, 2021CNY (¥) | Nov. 11, 2021USD ($) | Aug. 16, 2021CNY (¥) | Aug. 16, 2021USD ($) | Nov. 17, 2020CNY (¥) | Oct. 28, 2020CNY (¥) | Sep. 11, 2020CNY (¥) | Jun. 24, 2020CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Nov. 11, 2021USD ($) | Aug. 16, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Net assets acquired: | ||||||||||||||||
Property and equipment, net | ¥ 10,092,419 | $ 1,583,721 | ¥ 8,106,425 | |||||||||||||
Intangible assets, net | 900,335 | 141,282 | 658,195 | $ 1,552,460 | ¥ 1,224,471 | |||||||||||
Land Use Rights, Net | ¥ 36,013 | 337,235 | 52,920 | $ 5,651 | 255,373 | |||||||||||
Operating lease right-of-use assets, net | 2,869,338 | 450,262 | 1,325,526 | |||||||||||||
Deferred tax assets | 168,002 | 26,363 | 185,481 | |||||||||||||
Other non-current assets | 7,349 | 1,957,462 | 307,169 | 1,154 | 1,500,438 | |||||||||||
Cash and cash equivalents | 3 | 1,372,481 | 215,372 | 2,710,349 | 1,808,483 | |||||||||||
Other current assets | 21,017 | 3,298 | ||||||||||||||
Other current liabilities | (65,125) | (10,219) | ||||||||||||||
Operating lease liabilties | [1] | (2,892,052) | (453,826) | |||||||||||||
Finance lease liabilities | [1] | (1,363,783) | (214,007) | |||||||||||||
Deferred tax liabilities | (50,959) | (348,404) | (54,672) | (7,997) | (299,093) | |||||||||||
Property and land use right | 368,101 | 57,763 | 278,138 | |||||||||||||
Construction-in-progress | 3,239,407 | 508,334 | 2,234,286 | |||||||||||||
Total consideration in cash | 151,884 | $ 23,834 | ||||||||||||||
BJ JHC | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Property and equipment, net | ¥ 279,556 | |||||||||||||||
Operating lease right-of-use assets, net | 112,398 | |||||||||||||||
Deferred tax assets | 3,150 | |||||||||||||||
Other non-current assets | 4,428 | |||||||||||||||
Other current assets | 8,833 | |||||||||||||||
Other current liabilities | (90,805) | |||||||||||||||
Operating lease liabilities | 120,120 | |||||||||||||||
Deferred tax liabilities | (55,288) | |||||||||||||||
Intangible assets, net | 110,418 | |||||||||||||||
Cash and cash equivalents | 30,319 | |||||||||||||||
Finance lease liabilities | (84,082) | |||||||||||||||
Operating Permits | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Intangible assets, net | 203,586 | 600,299 | 94,200 | $ 31,947 | 366,958 | 625,129 | 375,283 | |||||||||
Customer contract. | BJ JHC | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Intangible assets | 33,208 | |||||||||||||||
Purchased software | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Intangible assets, net | ¥ 55,182 | 8,659 | ¥ 41,902 | $ 177,421 | ¥ 154,617 | |||||||||||
SH Hesheng | ||||||||||||||||
Asset acquisitions | ||||||||||||||||
Total cash consideration | $ | $ 21,586 | |||||||||||||||
Equity interests acquired (as a percent) (AA) | 100 | 100 | ||||||||||||||
Net assets acquired: | ||||||||||||||||
Property and equipment, net | ¥ 94,148 | $ 14,774 | ||||||||||||||
Operating lease right-of-use assets, net | 20,929 | 3,284 | ||||||||||||||
Other non-current assets | 872 | 136 | ||||||||||||||
Cash and cash equivalents | 423 | 66 | ||||||||||||||
Other current assets | 25,646 | 4,025 | ||||||||||||||
Other current liabilities | (962) | (150) | ||||||||||||||
Operating lease liabilties | (20,292) | (3,184) | ||||||||||||||
Deferred tax liabilities | (10,853) | (1,703) | ||||||||||||||
Total consideration in cash | 137,557 | $ 21,586 | ||||||||||||||
SH Hesheng | Operating Permits | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Intangible assets, net | ¥ 27,646 | $ 4,338 | ||||||||||||||
Shulifang | ||||||||||||||||
Asset acquisitions | ||||||||||||||||
Total cash consideration | ¥ 43,000 | |||||||||||||||
Equity interests acquired (as a percent) (AA) | 100 | |||||||||||||||
Contingent consideration liability (AA) | $ | $ 10,000 | |||||||||||||||
Net assets acquired: | ||||||||||||||||
Operating lease right-of-use assets, net | ¥ 15,206 | |||||||||||||||
Other non-current assets | 15,409 | |||||||||||||||
Cash and cash equivalents | 53 | |||||||||||||||
Other current assets | 601 | |||||||||||||||
Other current liabilities | (16,913) | |||||||||||||||
Operating lease liabilties | (15,206) | |||||||||||||||
Deferred tax liabilities | (11,284) | |||||||||||||||
Total consideration in cash | 33,000 | |||||||||||||||
Shulifang | Operating Permits | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Intangible assets, net | ¥ 45,134 | |||||||||||||||
Zhongke Zijing | ||||||||||||||||
Asset acquisitions | ||||||||||||||||
Total cash consideration | ¥ 151,884 | $ 23,834 | ||||||||||||||
Equity interests acquired (as a percent) (AA) | 100 | 100 | ||||||||||||||
BJ JHC | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Total consideration in cash | ¥ 232,015 | |||||||||||||||
LF Huahai | ||||||||||||||||
Asset acquisitions | ||||||||||||||||
Total cash consideration | ¥ 25,500 | ¥ 59,500 | ||||||||||||||
Equity interests acquired (as a percent) (AA) | 30.07 | 69.93 | ||||||||||||||
Net assets acquired: | ||||||||||||||||
Operating lease right-of-use assets, net | ¥ 183,174 | |||||||||||||||
Other non-current assets | 27,524 | |||||||||||||||
Cash and cash equivalents | 173 | |||||||||||||||
Other current assets | 4,088 | |||||||||||||||
Other current liabilities | (35,600) | |||||||||||||||
Operating lease liabilties | (183,873) | |||||||||||||||
Deferred tax liabilities | (29,838) | |||||||||||||||
Total consideration in cash | 85,000 | |||||||||||||||
LF Huahai | Operating Permits | ||||||||||||||||
Net assets acquired: | ||||||||||||||||
Intangible assets, net | ¥ 119,352 | |||||||||||||||
[1] | * Present value of future operating lease payments consisted of current portion of operating lease liabilities and non-current portion of operating lease liabilities, amounting to RMB607,997 (US$95,408) and RMB2,284,055 (US$358,418) for the year ended December 31, 2021, respectively. |
ACCOUNTS AND NOTES RECEIVABLE_3
ACCOUNTS AND NOTES RECEIVABLE, NET - Accounts and notes receivable and the allowance for doubtful debt (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) |
ACCOUNTS AND NOTES RECEIVABLE, NET | |||||
Accounts receivable | ¥ 1,504,669 | $ 236,115 | ¥ 913,902 | ||
Notes receivable | 948 | 150 | 2,252 | ||
Allowance for doubtful debt | (99,620) | (15,633) | (68,921) | $ (10,816) | ¥ (67,828) |
Accounts and notes receivable, net | ¥ 1,405,997 | $ 220,632 | ¥ 847,233 |
ACCOUNTS AND NOTES RECEIVABLE_4
ACCOUNTS AND NOTES RECEIVABLE, NET - Accounts and notes receivable due (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Balance at beginning of the year | ¥ 68,921 | $ 10,816 | ¥ 67,828 |
Cumulative adjustment for changes in accounting policy | 99,620 | 68,921 | |
Additional due to business combination | 16,256 | 2,251 | |
Additional provision charged to expense | 14,990 | 2,352 | 2,393 |
Write-off of accounts receivable | (547) | (86) | (4,040) |
Balance at end of the year | 99,620 | $ 15,633 | 68,921 |
Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Balance at beginning of the year | ¥ 2,740 | ||
Cumulative adjustment for changes in accounting policy | 2,740 | ||
Balance at end of the year | ¥ 2,740 |
SHORT-TERM INVESTMENTS - Short-
SHORT-TERM INVESTMENTS - Short-term investments consisted (Details) ¥ in Thousands | Dec. 31, 2020CNY (¥) |
Short-term investments | |
SHORT-TERM INVESTMENTS | |
Time deposits | ¥ 285,872 |
SHORT-TERM INVESTMENTS - Additi
SHORT-TERM INVESTMENTS - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Short-term investments | ||||
SHORT-TERM INVESTMENTS | ||||
Investments, interest income | ¥ 894 | $ 140 | ¥ 5,712 | ¥ 8,687 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||
Prepaid expenses | ¥ 942,990 | $ 147,975 | ¥ 884,156 |
Tax recoverables | 964,262 | 151,313 | 879,237 |
Deposits | 68,887 | 10,809 | 31,774 |
Loan to third parties | 17,492 | 2,745 | 19,107 |
Interest receivables | 728 | 114 | 1,484 |
Staff advances | 1,561 | 245 | 968 |
Others | 53,991 | 8,472 | 49,458 |
Prepaid expenses and other current assets | ¥ 2,049,911 | $ 321,673 | ¥ 1,866,184 |
PROPERTY AND EQUIPMENT, NET - P
PROPERTY AND EQUIPMENT, NET - Property and equipment, held under capital leases (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | ¥ 11,183,652 | $ 1,754,958 | ¥ 9,193,070 |
Less: Accumulated depreciation | (4,206,943) | (660,160) | (3,285,138) |
Property plant and equipment net excluding construction in progress | 6,976,709 | 1,094,798 | 5,907,932 |
Construction-in-progress | 3,239,407 | 508,334 | 2,234,286 |
Impairment | (123,697) | (19,411) | (35,793) |
Property and equipment, net | 10,092,419 | 1,583,721 | 8,106,425 |
Property | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 1,778,377 | 279,066 | 1,511,429 |
Leasehold improvements | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 3,302,883 | 518,294 | 2,609,828 |
Computer and network equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 5,923,149 | 929,471 | 4,899,577 |
Optical Fibers | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 142,723 | 22,396 | 142,723 |
Office equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 32,561 | 5,110 | 26,845 |
Motor vehicles | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | ¥ 3,959 | $ 621 | ¥ 2,668 |
PROPERTY AND EQUIPMENT, NET - D
PROPERTY AND EQUIPMENT, NET - Depreciation expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | ¥ 1,164,725 | $ 182,771 | ¥ 908,387 | ¥ 696,528 |
Cost of Revenues | ||||
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | 1,107,655 | 173,815 | 850,746 | 644,108 |
Selling and Marketing Expense [Member] | ||||
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | 963 | 151 | 2,399 | 2,107 |
General and Administrative Expense [Member] | ||||
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | 23,186 | 3,639 | 29,711 | 30,110 |
Research and Development Expense [Member] | ||||
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | ¥ 32,921 | $ 5,166 | ¥ 25,531 | ¥ 20,203 |
PROPERTY AND EQUIPMENT, NET - C
PROPERTY AND EQUIPMENT, NET - Carrying amounts of property and equipment held under capital leases (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Lessee, Lease, Description [Line Items] | |||
Property and equipment held under finance leases, gross | ¥ 1,954,707 | $ 306,736 | ¥ 2,079,482 |
Less: Accumulated depreciation | (629,927) | (98,849) | (661,796) |
Property and equipment held under finance leases net excluding construction in progress | 1,324,780 | 207,887 | 1,417,686 |
Construction-in-progress | 3,239,407 | 508,334 | 2,234,286 |
Impairment | (17,377) | (2,727) | (17,613) |
Property and equipment held under finance leases, net | ¥ 1,307,403 | $ 205,160 | ¥ 1,492,618 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Property | |||
Lessee, Lease, Description [Line Items] | |||
Property and equipment held under finance leases, gross | ¥ 993,158 | $ 155,848 | ¥ 921,970 |
Computer and network equipment | |||
Lessee, Lease, Description [Line Items] | |||
Property and equipment held under finance leases, gross | 823,625 | 129,245 | 1,019,588 |
Optical Fibers | |||
Lessee, Lease, Description [Line Items] | |||
Property and equipment held under finance leases, gross | ¥ 137,924 | $ 21,643 | 137,924 |
Construction-in-progress | |||
Lessee, Lease, Description [Line Items] | |||
Construction-in-progress | ¥ 92,545 |
PROPERTY AND EQUIPMENT, NET -_2
PROPERTY AND EQUIPMENT, NET - Property and equipment pledged to secure banking borrowings (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property | |||
PROPERTY AND EQUIPMENT, NET | |||
Assets pledged as collateral | ¥ 253,979 | $ 39,855 | ¥ 264,784 |
Leasehold improvements | |||
PROPERTY AND EQUIPMENT, NET | |||
Assets pledged as collateral | 160,959 | 25,258 | 90,947 |
Computer and network equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Assets pledged as collateral | 159,909 | 25,093 | 40,871 |
Office equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Assets pledged as collateral | ¥ 660 | $ 104 | |
Construction-in-progress | |||
PROPERTY AND EQUIPMENT, NET | |||
Assets pledged as collateral | ¥ 238,771 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | ¥ 1,164,725 | $ 182,771 | ¥ 908,387 | ¥ 696,528 |
Property, computer and network equipment and optical fiber | ||||
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | ¥ 274,052 | $ 43,005 | ¥ 255,458 | ¥ 216,664 |
INTANGIBLE ASSETS, NET - Intang
INTANGIBLE ASSETS, NET - Intangible assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Weighted average useful lives of intangible assets | ||||
Beginning balance | ¥ 658,195 | $ 1,552,460 | ¥ 1,224,471 | |
Accumulated Amortization | (614,355) | (527,622) | ||
Amortization expense | (94,751) | (14,868) | (72,690) | ¥ (71,028) |
Impairment | (37,770) | (38,654) | ||
Ending balance | 900,335 | 141,282 | 658,195 | 1,224,471 |
Purchased software | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 41,902 | 177,421 | 154,617 | |
Accumulated Amortization | (122,239) | (112,715) | ||
Ending balance | 55,182 | 8,659 | 41,902 | 154,617 |
Radio Spectrum License | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 13,852 | 123,167 | 126,049 | |
Accumulated Amortization | (74,056) | (73,543) | ||
Impairment | (37,770) | (38,654) | ||
Ending balance | 11,341 | 1,780 | 13,852 | 126,049 |
Operating Permits | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 366,958 | 625,129 | 375,283 | |
Accumulated Amortization | (24,830) | (8,325) | ||
Ending balance | 600,299 | 94,200 | 366,958 | 375,283 |
Technology Platform | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 38,050 | 10,250 | ||
Accumulated Amortization | (12,777) | (10,250) | ||
Ending balance | 25,273 | 3,966 | 10,250 | |
Customer relationships | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 63,186 | 257,183 | 238,184 | |
Accumulated Amortization | (203,356) | (174,998) | ||
Ending balance | 53,827 | 8,447 | 63,186 | 238,184 |
Licenses | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 3,114 | 5,772 | 5,772 | |
Accumulated Amortization | (3,043) | (2,658) | ||
Ending balance | 2,729 | 428 | 3,114 | 5,772 |
Supplier relationships | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 10,921 | 39,053 | 39,053 | |
Accumulated Amortization | (31,206) | (28,132) | ||
Ending balance | 7,847 | 1,231 | 10,921 | 39,053 |
Trade names | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 78,964 | 116,266 | 116,266 | |
Accumulated Amortization | (43,115) | (37,302) | ||
Ending balance | 73,151 | 11,479 | 78,964 | 116,266 |
Customer contract | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 63,106 | 109,717 | 109,717 | |
Accumulated Amortization | (55,897) | (46,611) | ||
Ending balance | 53,820 | 8,446 | 63,106 | 109,717 |
Non - Complete Agreement | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 1,800 | 1,800 | ||
Accumulated Amortization | (1,800) | (1,800) | ||
Ending balance | 0 | 1,800 | ||
Internal-use software | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 16,192 | 58,902 | 47,480 | |
Accumulated Amortization | (42,036) | (31,288) | ||
Ending balance | ¥ 16,866 | $ 2,646 | ¥ 16,192 | ¥ 47,480 |
INTANGIBLE ASSETS, NET - Amorti
INTANGIBLE ASSETS, NET - Amortization expenses (Details) - Dec. 31, 2021 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
INTANGIBLE ASSETS, NET | ||
2022 | ¥ 101,092 | $ 15,864 |
2023 | 84,724 | 13,295 |
2024 | 53,751 | 8,435 |
2025 | 33,932 | 5,325 |
2026 | 34,956 | 5,485 |
Annual estimated amortization expenses for intangible assets | ¥ 308,455 | $ 48,404 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Weighted average useful lives of intangible assets | ||||
Intangible assets, amortization expenses | ¥ 94,751 | $ 14,868 | ¥ 72,690 | ¥ 71,028 |
Minimum | ||||
Weighted average useful lives of intangible assets | ||||
Estimated useful life of intangible assets | 1 year | 1 year | ||
Maximum | ||||
Weighted average useful lives of intangible assets | ||||
Estimated useful life of intangible assets | 36 years | 36 years |
LAND USE RIGHTS, NET - Land use
LAND USE RIGHTS, NET - Land use rights amortized (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Aug. 16, 2021CNY (¥) | Aug. 16, 2021USD ($) | Dec. 31, 2020CNY (¥) |
LAND USE RIGHTS, NET | |||||
Cost | ¥ 368,101 | $ 57,763 | ¥ 278,138 | ||
Accumulated amortization | (30,866) | (4,843) | (22,765) | ||
Land use rights, net | ¥ 337,235 | $ 52,920 | ¥ 36,013 | $ 5,651 | ¥ 255,373 |
LAND USE RIGHTS, NET - Land u_2
LAND USE RIGHTS, NET - Land use rights pledged (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
LAND USE RIGHTS, NET | |||
Land use rights | ¥ 135,821 | $ 21,313 | ¥ 141,000 |
GOODWILL - Carrying amount (Det
GOODWILL - Carrying amount (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
GOODWILL | |||
Beginning Balance | ¥ 994,993 | $ 156,136 | ¥ 989,530 |
Additions | 344,664 | 54,085 | 5,463 |
Ending Balance | ¥ 1,339,657 | $ 210,221 | ¥ 994,993 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Hosting and Related Services | |||
Changes in the carrying amount of goodwill | |||
Impairment losses of goodwill | ¥ 0 | ¥ 0 | ¥ 0 |
LONG-TERM INVESTMENTS, NET - Lo
LONG-TERM INVESTMENTS, NET - Long term investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
LONG-TERM INVESTMENTS, NET | |||
Equity investments without readily determinable fair values | ¥ 17,137 | $ 2,689 | ¥ 17,137 |
Equity method investments | 79,506 | 12,476 | 116,667 |
Available-for-sale debt investments | 1,600 | 251 | 1,713 |
Long term investments | ¥ 98,243 | $ 15,416 | ¥ 135,517 |
LONG-TERM INVESTMENTS, NET - Eq
LONG-TERM INVESTMENTS, NET - Equity Method Investments (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2020USD ($) | Dec. 31, 2019CNY (¥) | |
Schedule of Equity Method Investments [Line Items] | |||||
Cost investment | ¥ 145,837 | ¥ 140,837 | ¥ 169,905 | ||
Share equity gain (loss) | (62,836) | (24,170) | (45,789) | ||
Investment in an equity investee | 79,506 | $ 12,476 | 116,667 | $ 116,667 | 124,116 |
Cost of investments incurred during the period | 5,000 | (29,068) | |||
Share equity gain (loss) incurred during the period | (38,666) | 10,274 | |||
Derecognize of share equity loss | 11,345 | ||||
Yizhuang Venture Investment Fund | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost investment | 101,000 | 101,000 | 101,000 | ||
Share equity gain (loss) | (32,285) | 1,683 | 7,152 | ||
Investment in an equity investee | 68,715 | 10,783 | 102,683 | 108,152 | |
Share equity gain (loss) incurred during the period | (33,968) | 12,254 | |||
Derecognize of share equity loss | (17,723) | ||||
WiFire Group Inc. ("WiFire Group") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost investment | 20,000 | 20,000 | 20,000 | ||
Share equity gain (loss) | (20,000) | (20,000) | (20,000) | ||
Chengdu Qidi Chengxin Education Limit ("Qidi Chengxin") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost investment | 3,930 | 3,930 | |||
Share equity gain (loss) | (274) | ||||
Investment in an equity investee | 3,656 | 3,930 | |||
Share equity gain (loss) incurred during the period | (274) | ||||
Shihua DC Holdings | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost investment | 29,068 | ||||
Share equity gain (loss) | (29,068) | ||||
Cost of investments incurred during the period | (29,068) | ||||
Derecognize of share equity loss | 29,068 | ||||
Qidi Chengxin | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost investment | 3,930 | 3,930 | |||
Share equity gain (loss) | (217) | (274) | |||
Investment in an equity investee | 3,713 | 582 | 3,656 | ||
Share equity gain (loss) incurred during the period | 57 | ||||
Jingliang Inter Cloud | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost investment | 6,000 | 6,000 | 6,000 | ||
Share equity gain (loss) | (5,013) | (2,831) | (1,928) | ||
Investment in an equity investee | 987 | 155 | 3,169 | 4,072 | |
Share equity gain (loss) incurred during the period | (2,182) | (903) | |||
Jingliang Century Cloud | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost investment | 4,000 | 4,000 | 4,000 | ||
Investment in an equity investee | 4,000 | 628 | 4,000 | 4,000 | |
ZJK Energies [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost investment | 5,907 | 5,907 | 5,907 | ||
Share equity gain (loss) | (3,816) | (2,748) | (1,945) | ||
Investment in an equity investee | 2,091 | $ 328 | 3,159 | ¥ 3,962 | |
Share equity gain (loss) incurred during the period | (1,068) | ¥ (803) | |||
Beijing Super Internet Technology Research Institute Co., Ltd. ("BJ Chaohulian") | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cost investment | 5,000 | ||||
Share equity gain (loss) | (1,505) | ||||
Cost of investments incurred during the period | 5,000 | ||||
Share equity gain (loss) incurred during the period | ¥ (1,505) |
LONG-TERM INVESTMENTS, NET - Ad
LONG-TERM INVESTMENTS, NET - Additional Information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2021CNY (¥) | Dec. 31, 2019CNY (¥) | Jan. 31, 2018CNY (¥) | Sep. 30, 2017 | Apr. 30, 2012CNY (¥) | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Impairment of investment | ¥ 3,495 | $ 548 | ¥ 13,030 | |||||||
Distribution received | 17,723 | ¥ 20,200 | ||||||||
Increase (Decrease) in Cost of Investments in Equity Method Investments | 5,000 | (29,068) | ||||||||
Disposal gain | 17,853 | |||||||||
Equity method investment loss | (38,666) | (6,068) | 10,869 | (50,553) | ||||||
Equity method investment | 79,506 | 116,667 | $ 12,476 | |||||||
WiFire Group Inc. ("WiFire Group") | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity interest, percentage | 33.33% | |||||||||
Percentage of ownership disposed | 66.67% | |||||||||
Equity method investment | 0 | |||||||||
Equity Investments Without Readily Determinable Fair Value | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity investments without readily determinable fair values | 0 | 13,500 | ||||||||
Impairment of investment | 0 | 13,030 | 0 | |||||||
Dividend income of non-marketable investments | 659 | 103 | 607 | 461 | ||||||
Gain from disposal of non-marketable investments | ¥ 0 | ¥ 257 | ¥ 5,536 | |||||||
Yizhuang Venture Investment Fund | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity interest, percentage | 27.694% | 27.694% | 27.694% | 27.694% | 27.694% | |||||
Distribution received | ¥ 0 | ¥ 17,723 | ||||||||
Capital injected | ¥ 101,000 | |||||||||
Equity method investment loss | ¥ 1,683 | |||||||||
Chengdu Qidi Chengxin Education Limit ("Qidi Chengxin") | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity interest, percentage | 59.00% | 59.00% | ||||||||
Capital injected | ¥ 3,930 | |||||||||
Jingliang Inter Cloud | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity interest, percentage | 60.00% | |||||||||
Capital injected | ¥ 6,000 | |||||||||
Jingliang Century Cloud | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Equity interest, percentage | 40.00% | |||||||||
Capital injected | ¥ 4,000 | |||||||||
Beijing Super Internet Technology Research Institute Co., Ltd. ("BJ Chaohulian") | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Impairment of investment | 3,495 | |||||||||
Equity interest, percentage | 30.00% | |||||||||
Capital injected | ¥ 5,000 | |||||||||
Increase (Decrease) in Cost of Investments in Equity Method Investments | 5,000 | |||||||||
Equity method investment loss | 1,505 | $ 236 | ||||||||
Equity method investment | ¥ 0 |
OTHER NON- CURRENT ASSETS (Deta
OTHER NON- CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) | |
OTHER NON- CURRENT ASSETS | |||
Prepayment for acquisition and purchase of property and equipment | ¥ 1,704,221 | ¥ 1,277,027 | $ 267,429 |
Percentage of prepayments on other non-current assets | 87.00% | 85.00% |
BORROWINGS - Borrowings (Detail
BORROWINGS - Borrowings (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
BORROWINGS | |||
Short-term bank borrowings | ¥ 34,000 | ||
Long-term bank borrowings, current portion | ¥ 230,805 | $ 36,218 | 68,500 |
Other long-term borrowings, current portion | 153,353 | 24,065 | 111,828 |
Borrowings, current portion, Total | 384,158 | 60,283 | 214,328 |
Long-term bank borrowings, non-current portion | 1,891,797 | 296,864 | 605,119 |
Other long-term borrowings, non-current portion | 323,218 | 50,720 | 281,877 |
Total borrowings | ¥ 2,599,173 | $ 407,867 | ¥ 1,101,324 |
BORROWINGS - Unused loan facili
BORROWINGS - Unused loan facilities (Details) - CNY (¥) ¥ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument | ||
Short-term borrowings | ¥ 34,000 | |
Long-term borrowings (including current portion) | ¥ 2,599,173 | 1,067,324 |
Unsecured Borrowing | ||
Debt Instrument | ||
Short-term borrowings | 34,000 | |
Long-term borrowings (including current portion) | 328,168 | 190,682 |
Long Term Bank Borrowings | ||
Debt Instrument | ||
Long-term borrowings (including current portion) | 212,302 | |
Secured by subsidiary's property and equipment and land-use right | Long Term Bank Borrowings | ||
Debt Instrument | ||
Long-term borrowings (including current portion) | 40,500 | 404,781 |
Secured by subsidiary's property and equipment and land-use right and a subsidiary stock | Long Term Bank Borrowings | ||
Debt Instrument | ||
Long-term borrowings (including current portion) | 271,861 | |
Secured by subsidiary's property and equipment and land-use right and a subsidiary stock | Long-term bank borrowings, (including current portion) 2 | ||
Debt Instrument | ||
Long-term borrowings (including current portion) | 267,171 | |
Secured by a subsidiary's stock and the restricted cash | Long Term Bank Borrowings | ||
Debt Instrument | ||
Long-term borrowings (including current portion) | 100,000 | |
Secured by a subsidiary's stock | Long Term Bank Borrowings | ||
Debt Instrument | ||
Long-term borrowings (including current portion) | 1,334,065 | ¥ 100,000 |
Secured by a subsidiary's land-use right | Long Term Bank Borrowings | ||
Debt Instrument | ||
Long-term borrowings (including current portion) | ¥ 416,967 |
BORROWINGS - Unused loan faci_2
BORROWINGS - Unused loan facilities (Parenthetical) (Details) - Long Term Bank Borrowings $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Property and equipment | |||
Debt Instrument | |||
Assets pledged as collateral | ¥ 262,740,000 | $ 41,230 | |
Land-use rights, net | |||
Debt Instrument | |||
Assets pledged as collateral | 24,460,000 | 3,838 | |
Secured by subsidiary's property and equipment and land-use right | Property and equipment | |||
Debt Instrument | |||
Assets pledged as collateral | 124,214,000 | 19,492 | ¥ 505,004,000 |
Secured by subsidiary's property and equipment and land-use right | Land-use rights, net | |||
Debt Instrument | |||
Assets pledged as collateral | 96,201,000 | 15,096 | 40,034,000 |
Secured by subsidiary's property and equipment and land-use right and a subsidiary stock | Property and equipment | |||
Debt Instrument | |||
Assets pledged as collateral | 188,553,000 | 29,588 | 130,369 |
Secured by subsidiary's property and equipment and land-use right and a subsidiary stock | Land-use rights, net | |||
Debt Instrument | |||
Assets pledged as collateral | ¥ 15,160,000 | $ 2,379 | 100,966,000 |
Secured by a subsidiary's stock | |||
Debt Instrument | |||
Restricted cash | ¥ 104,400,000 |
BORROWINGS - Additional Informa
BORROWINGS - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Short and long term bank borrowings | |||
Short-term bank borrowings, weighted average interest rate | 5.22% | 5.22% | 4.46% |
Short-term bank borrowings, term | 1 year | ||
Unused loan facilities (in RMB) or (in dollars) | ¥ 1,217,835 | $ 191,105 | ¥ 1,574,556 |
Long Term Bank Borrowings | |||
Short and long term bank borrowings | |||
Long-term bank borrowings, weighted average interest rate | 5.31% | 5.31% | 5.61% |
ACCRUED EXPENSES AND OTHER PA_3
ACCRUED EXPENSES AND OTHER PAYABLES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
ACCRUED EXPENSES AND OTHER PAYABLES | |||
Payables for purchase of property, equipment and software | ¥ 1,464,086 | $ 229,747 | ¥ 1,148,742 |
Payroll and welfare payables | 288,613 | 45,290 | 204,732 |
Share consideration due to the original shareholders for business combination (Note 4) | 214,577 | 33,672 | |
Accrued service fees | 62,498 | 9,807 | 47,572 |
Liability classified share-based payments (Note 4) | 55,156 | 8,655 | |
Payables for office supplies and utilities | 54,056 | 8,483 | 38,485 |
Payables for acquisitions | 47,805 | 7,502 | 47,805 |
Value-added tax and other taxes payable | 25,092 | 3,938 | 10,473 |
Amounts due to the original shareholders for acquired entities | 21,560 | 3,383 | 66,466 |
Interest payables | 3,595 | 564 | 37,799 |
Others | 61,051 | 9,579 | 29,489 |
Accrued expenses and other payables | ¥ 2,298,089 | $ 360,620 | ¥ 1,631,563 |
LEASES - Weighted average remai
LEASES - Weighted average remaining lease term and discount rate (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Weighted average remaining lease term: | ||
Operating lease | 10 years 9 months 18 days | 12 years 2 months 12 days |
Finance lease | 17 years 8 months 12 days | 14 years 7 months 6 days |
Weighted average discount rate: | ||
Operating lease | 7.01% | 6.56% |
Finance lease | 7.27% | 8.63% |
LEASES - Other information rela
LEASES - Other information related to leases (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash payments for operating leases | ¥ 593,615 | $ 93,151 | ¥ 477,189 | ¥ 193,174 |
Financing cash payments for finance leases | ¥ 579,660 | $ 90,961 | ¥ 376,232 | ¥ 333,614 |
LEASES - Total lease cost (Deta
LEASES - Total lease cost (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Finance lease cost: | ||||
Depreciation | ¥ 274,052 | $ 43,005 | ¥ 255,458 | ¥ 216,664 |
Interest expenses | 124,567 | 19,547 | 130,196 | 120,185 |
Operating lease cost | 568,044 | 89,138 | 478,805 | 214,795 |
Total lease cost | ¥ 966,663 | $ 151,690 | ¥ 864,459 | ¥ 551,644 |
LEASES - Future lease payments
LEASES - Future lease payments under operating leases and finance leases (Details) - Dec. 31, 2021 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) | |
Future lease payments under finance leases | |||
2021 | ¥ 326,413 | $ 51,221 | |
2022 | 234,013 | 36,722 | |
2023 | 137,267 | 21,540 | |
2024 | 95,157 | 14,932 | |
2025 | 96,757 | 15,183 | |
2026 and thereafter | 1,722,737 | 270,335 | |
Total future lease payments | 2,612,344 | 409,933 | |
Less: Imputed interest | (1,248,561) | (195,926) | |
Present value of future lease payments | [1] | 1,363,783 | 214,007 |
Future lease payments under operating leases | |||
2021 | 625,680 | 98,183 | |
2022 | 486,679 | 76,371 | |
2023 | 437,331 | 68,627 | |
2024 | 404,703 | 63,507 | |
2025 | 355,216 | 55,741 | |
2026 and thereafter | 2,032,828 | 318,995 | |
Total future lease payments | 4,342,437 | 681,424 | |
Less: Imputed interest | (1,450,385) | (227,598) | |
Present value of future lease payments | [1] | ¥ 2,892,052 | $ 453,826 |
[1] | * Present value of future operating lease payments consisted of current portion of operating lease liabilities and non-current portion of operating lease liabilities, amounting to RMB607,997 (US$95,408) and RMB2,284,055 (US$358,418) for the year ended December 31, 2021, respectively. |
LEASES - Additional information
LEASES - Additional information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Current portion of operating lease liabilities | ¥ 607,997 | $ 95,408 | ¥ 452,272 |
Non-current portion of operating lease liabilities | 2,284,055 | 358,418 | 645,499 |
Current portion of finance lease liabilities | 244,032 | 38,294 | 403,843 |
Non-current portion of finance lease liabilities | ¥ 1,119,751 | $ 175,713 | ¥ 688,128 |
BONDS PAYABLE - Long-Term Borro
BONDS PAYABLE - Long-Term Borrowings, Including Bonds Payable, Bank and Other Borrowings (Detail) - Dec. 31, 2021 ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
BONDS PAYABLE | ||
2022 | ¥ 408,194 | $ 64,055 |
2023 | 358,279 | 56,222 |
2024 | 347,990 | 54,607 |
2025 | 367,776 | 57,712 |
2026 | 279,825 | 43,911 |
2027 and thereafter | ¥ 891,338 | $ 139,870 |
BONDS PAYABLE - Additional Info
BONDS PAYABLE - Additional Information (Details) ¥ in Thousands, $ in Thousands | Oct. 04, 2021USD ($) | Aug. 04, 2020USD ($) | Aug. 12, 2019USD ($) | Apr. 16, 2019USD ($) | Apr. 15, 2019CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Apr. 15, 2019USD ($) |
Debt Instrument | ||||||||
Loss on debt extinguishment | ¥ | ¥ 18,895 | ¥ 18,895 | ||||||
2020 Notes | ||||||||
Debt Instrument | ||||||||
Principal amount repurchased | $ 18,000 | $ 150,839 | ||||||
Total aggregate principal amount repurchased (as a percent) | 50.28% | |||||||
Outstanding principal amount | $ 131,161 | |||||||
Principal amount repaid | $ (131,161) | |||||||
Bonds Payable Repaid | $ (131,161) | |||||||
Bonds 7.875%, Due 2021 | ||||||||
Debt Instrument | ||||||||
Debt instrument, face amount | $ 300,000 | |||||||
Interest rate (as a percent) | 7.875% | |||||||
Proceeds from issuance of bonds, net | ¥ | ¥ 1,976,474 | |||||||
Principal amount repaid | $ 300,000 | |||||||
Bonds Payable Repaid | $ 300,000 |
PERPETUAL CONVERTIBLE PREFERR_2
PERPETUAL CONVERTIBLE PREFERRED SHARES - Additional Information (Details) $ / shares in Units, ¥ in Thousands | Mar. 01, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2021USD ($) |
Class of Stock [Line Items] | ||||||
Total cash consideration | ¥ | ¥ 1,058,325 | |||||
Class A Ordinary Shares | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issued | shares | 150,000 | |||||
Subscription price (in dollars per share) | $ 1,000 | |||||
Dividend rate (as a percent) | 4.50% | 4.50% | ||||
Period after which Series A Preferred Shares will be mandatorily converted into Class A ordinary shares | 6 months | 6 months | ||||
Conversion price per share | $ 2.8333 | |||||
Beneficial conversion feature | ¥ 470,643 | $ 72,129,000 | ||||
Convertible shares | $ | $ 150,000 | |||||
Preferred stock, convertible, conversion price | $ 17 | |||||
Total issuance for converted preferred stock | shares | 54,507,816 | |||||
American Depository Shares | ||||||
Class of Stock [Line Items] | ||||||
Total cash consideration | $ | $ 150,000,000 | |||||
Cumulative dividends | ¥ 28,637 | $ 4,494,000 | ||||
Conversion Threshold (as percent) | 200.00% | 200.00% | ||||
Conversion price per share | $ 17 |
CONVERTIBLE PROMISSORY NOTES (D
CONVERTIBLE PROMISSORY NOTES (Details) | 1 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021USD ($)$ / shares | Jan. 31, 2021USD ($) | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020CNY (¥) | Oct. 31, 2019$ / shares | |
Debt Instrument [Line Items] | |||||||||
Changes In The Fair Value Of Convertible Promissory Notes | ¥ (829,149,000) | $ (130,112,000) | ¥ 2,544,220,000 | ||||||
Term of the notes | 1 year | 1 year | |||||||
Changes in the fair value of convertible promissory notes | ¥ (829,149,000) | $ (130,112,000) | 2,544,220,000 | ||||||
Remaining amortization period for debt issuance cost | 5 years | 5 years | |||||||
Convertible Notes Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Issuance costs | ¥ | ¥ 18,932 | ||||||||
2025 Convertible promissory notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Cash consideration received | $ 200,000 | ||||||||
Changes In The Fair Value Of Convertible Promissory Notes | ¥ 829,149 | $ 130,112 | ¥ 2,544,220 | ||||||
Term of the notes | 5 years | 5 years | |||||||
Interest rate (as a percent) | 2.00% | 2.00% | 2.00% | ||||||
Issuance costs | 0 | ¥ 2,939 | |||||||
Fair value of converted portion | ¥ 1,639,806 | $ 257,321 | ¥ 720,547 | ||||||
Fair value of notes | 513,754 | 80,619 | ¥ 3,014,057 | ||||||
Changes in the fair value of convertible promissory notes | 829,149 | 130,112 | 2,544,220 | ||||||
Fair value changes related to instrument-specific risk | 0 | $ 0 | |||||||
Coupon Interest expense | ¥ 9,703 | $ 1,523 | ¥ 18,880 | ||||||
2026 Convertible promissory notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate (as a percent) | 0.00% | ||||||||
Debt instrument, face amount | $ 600,000 | ||||||||
Amount on exercise of option | $ 75,000 | ||||||||
Observation period | 40 days | ||||||||
Redemption price, percentage of Principal amount | 100.00% | 100.00% | |||||||
Sinking fund | $ 0 | ||||||||
Proceeds from issuance of notes | 600,000 | ||||||||
Debt Issuance costs | 13,841 | ||||||||
Carrying amount of Notes | ¥ 3,753,197 | $ 588,959 | |||||||
Coupon Interest expense | 0 | ||||||||
Amortization of debt discount and issuance costs | ¥ 16,216 | $ 2,544 | |||||||
Effective interest rate (as a percent) | 0.47% | 0.47% | |||||||
Redemption upon maturity | 2025 Convertible promissory notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price, Percentage of principal amount redeemed | 115.00% | 115.00% | |||||||
Early redemption at the option of the Purchasers | 2025 Convertible promissory notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price, Percentage of principal amount redeemed | 109.00% | 109.00% | |||||||
Condition one | 2026 Convertible promissory notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of conversion price | 130.00% | 130.00% | 130.00% | ||||||
Trading days | 20 | 20 | |||||||
Consecutive trading days period | 30 | 30 | |||||||
Condition Two | 2026 Convertible promissory notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Trading days | 5 | ||||||||
Consecutive trading days period | 10 | ||||||||
Percentage of price to the last reported sale price | 98.00% | ||||||||
American Depository Shares | |||||||||
Debt Instrument [Line Items] | |||||||||
Conversion price (in dollars per share) | $ / shares | $ 12 | $ 12 | $ 54.47 | ||||||
American Depository Shares | 2025 Convertible promissory notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Conversion price (in dollars per share) | $ / shares | 12 | ||||||||
American Depository Shares | 2026 Convertible promissory notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Conversion price (in dollars per share) | $ / shares | 18.3574 | ||||||||
Class A Ordinary Shares | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of shares issued upon conversion | shares | 42,401,010 | 42,401,010 | 23,710,140 | 23,710,140 | |||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |||||||
Class A Ordinary Shares | 2025 Convertible promissory notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of shares issued upon conversion | shares | 42,401,010 | 42,401,010 | 23,710,140 | 23,710,140 | |||||
Class A Ordinary Shares | Condition one | 2026 Convertible promissory notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of shares represents one ADS | 6 | ||||||||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 |
DEFERRED GOVERNMENT GRANTS - Mo
DEFERRED GOVERNMENT GRANTS - Movements of Deferred Grants (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
DEFERRED GOVERNMENT GRANTS | ||||
Balance at beginning of the year | ¥ 6,174 | $ 969 | ¥ 8,501 | ¥ 15,792 |
Recognized as a reduction of depreciation expense | (1,806) | (284) | (2,327) | (7,291) |
Balance at end of the year | ¥ 4,368 | $ 685 | ¥ 6,174 | ¥ 8,501 |
DEFERRED GOVERNMENT GRANTS - Ad
DEFERRED GOVERNMENT GRANTS - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
DEFERRED GOVERNMENT GRANTS | |||
Government grants received | ¥ 0 | ¥ 0 | ¥ 0 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
TREASURY STOCK | |||
Share repurchase plan, shares repurchased (in shares) | 0 | 242,830 | |
American Depository Shares | |||
TREASURY STOCK | |||
Share repurchase plan, shares repurchased (in shares) | 0 | 0 | 242,830 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||
Beginning balance | ¥ 6,897,480 | ¥ 5,231,628 | ¥ 5,363,184 | |
Current year other comprehensive loss | (34,908) | $ (5,478) | (133,439) | (8,075) |
Ending balance | 7,601,001 | 1,192,762 | 6,897,480 | 5,231,628 |
Accumulated Translation Adjustment | ||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||
Beginning balance | (55,535) | 77,904 | 85,979 | |
Current year other comprehensive loss | (34,908) | (133,439) | (8,075) | |
Ending balance | ¥ (90,443) | $ (14,192) | ¥ (55,535) | ¥ 77,904 |
MAINLAND CHINA EMPLOYEE CONTR_2
MAINLAND CHINA EMPLOYEE CONTRIBUTION PLAN (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
PRC | ||||
MAINLAND CHINA EMPLOYEE CONTRIBUTION PLAN | ||||
Total expense for defined contribution plan | ¥ 158,673 | $ 24,899 | ¥ 77,982 | ¥ 121,266 |
SHARE-BASED COMPENSATION - Empl
SHARE-BASED COMPENSATION - Employee share options activity (Details) - 2010 Plan $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020$ / sharesshares | Dec. 31, 2021CNY (¥)shares | |
Number of options | |||
Outstanding, beginning balance | shares | 508,866 | ||
Exercised (in shares) | shares | (86,862) | ||
Forfeited | shares | (60,000) | ||
Outstanding, ending balance | shares | 362,004 | 508,866 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 362,004 | 362,004 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 0.17 | ||
Weighted average exercise price | |||
Outstanding, beginning balance | 0.33 | ||
Exercised | 0.73 | ||
Forfeited | 0.70 | ||
Outstanding, ending balance | 0.17 | $ 0.33 | |
Vested and expected to vest at December 31, 2020 | 0.17 | ||
Exercisable, ending balance | $ 0.17 | ||
Weighted average remaining contractual term | |||
Outstanding, December 31, 2019 | 3 days | 9 months 18 days | |
Vested and expected to vest at December 31, 2020 | 3 days | ||
Exercisable as of December 31, 2020 | 3 days | ||
Aggregate intrinsic value | |||
Outstanding, December 31, 2019 | $ 482 | ¥ 3,072 | |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1 | $ | $ 482 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted stock units activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 0 | |
2010 Plan | ||
Number of RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 0.17 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 362,004 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 482 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0.73 | |
Restricted Stock Units (RSUs) | ||
Number of RSUs | ||
Unvested, beginning balance | 4,092,457 | |
Granted | 3,833,221 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 12.31 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 11.32 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 17.34 | |
Forfeited | (1,349,363) | |
Unvested, ending balance | 2,808,129 | 4,092,457 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 25,357 | |
Vested | (3,768,186) | |
Weighted-average grant date fair value | ||
Unvested, beginning balance (in dollars per share) | $ 14.95 | |
Unvested, ending balance (in dollars per share) | $ 14.18 | $ 14.95 |
Weighted-average remaining contractual terms (Years) | ||
Unvested, December 31, 2019 | 7 years 4 months 24 days | 8 years 2 months 12 days |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share compensation expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
SHARE-BASED COMPENSATION | ||||
Share-based compensation expense | ¥ 320,010 | $ 50,217 | ¥ 136,804 | ¥ 43,916 |
Cost of Revenues | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expense | 13,713 | 2,152 | 15,251 | 1,884 |
Selling and Marketing Expense | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expense | 2,545 | 399 | 38,247 | 354 |
General and Administrative Expense | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expense | 292,947 | 45,970 | 82,672 | 40,501 |
Research and Development Expense | ||||
SHARE-BASED COMPENSATION | ||||
Share-based compensation expense | ¥ 10,805 | $ 1,696 | ¥ 634 | ¥ 1,177 |
SHARE BASED COMPENSATION - Addi
SHARE BASED COMPENSATION - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Oct. 30, 2015shares | Jul. 16, 2010shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)shares | May 13, 2020shares | May 29, 2014shares |
SHARE-BASED COMPENSATION | |||||||||
Aggregate intrinsic value of options exercise | $ | $ 67 | $ 2,336 | $ 22 | ||||||
Unrecognized share-based compensation cost | ¥ 114,522 | $ 17,971 | |||||||
Compensation cost | 55,156 | 8,655 | |||||||
Performance Based Awards | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share based compensation, RSUs granted | 3,534,767 | 314,842 | 464,120 | ||||||
Performance Based Awards | Option One | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Performance review period | 1 year | ||||||||
Performance Based Awards | Option Two | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Performance review period | 4 years | ||||||||
Restricted Stock Units (RSUs) | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share based compensation, RSUs granted | 3,833,221 | ||||||||
Aggregate fair value, unvested | 161,590 | 25,357 | |||||||
Weighted-average grant-date fair value | $ / shares | $ 12.31 | $ 22.62 | $ 7.67 | ||||||
Total fair value vested | $ | $ 42,672 | $ 3,866 | $ 6,185 | ||||||
Unrecognized share-based compensation cost | ¥ 86,208 | $ 13,528 | |||||||
Unrecognized compensation costs, weighted-average recognition period | 1 year 7 months 6 days | ||||||||
Minimum Performance Target | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share based compensation, RSUs granted | 298,454 | 1,848,701 | 64,000 | ||||||
Market Based Awards | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share based compensation, RSUs granted | 0 | 0 | 16,000 | ||||||
2014 Plan | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share based compensation, option expiry period | 10 years | ||||||||
2014 Plan | Maximum | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share based compensation, maximum aggregate number of ordinary shares to be issued | 39,606,817 | 20,461,380 | |||||||
Share based compensation, option vesting period | 4 years | ||||||||
Share based compensation arrangement by share based payment award maximum annual plan percentage increase to number of shares available for grant | 15.00% | ||||||||
2014 Plan | Minimum | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share based compensation, option vesting period | 3 years | ||||||||
2010 Plan | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share based compensation, option expiry period | 10 years | ||||||||
Share based compensation, option outstanding | 508,866 | 362,004 | 362,004 | ||||||
Share based compensation, aggregate intrinsic value | ¥ 3,072 | $ 482 | |||||||
Share based compensation, fair value of option outstanding at grant date | ¥ 4,701 | $ 738 | |||||||
Share based compensation, fair value of shares exercised during the period | $ | $ 122 | $ 594 | $ 42 | ||||||
2010 Plan | Maximum | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share based compensation, maximum aggregate number of ordinary shares to be issued | 39,272,595 | ||||||||
Share based compensation, option vesting period | 4 years | ||||||||
2010 Plan | Minimum | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share based compensation, option vesting period | 3 years | ||||||||
2010 Plan and 2014 Plan | Class A Ordinary Shares | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Shares reserved for future issuance under the plan | 7,562,532 | ||||||||
2020 Plan | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Percentage of share capital considered for Maximum shares issuable under the plan | 5.00% | ||||||||
Share based compensation, option outstanding | 362,004 | 362,004 | |||||||
2020 Plan | Class A Ordinary Shares | |||||||||
SHARE-BASED COMPENSATION | |||||||||
Share based compensation, maximum aggregate number of ordinary shares to be issued | 46,560,708 |
TAXATION - Income Taxes (Detail
TAXATION - Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
TAXATION | ||||
Loss before income taxes | ¥ 626,508 | $ 98,313 | ¥ (2,570,923) | ¥ (175,809) |
Non-PRC | ||||
TAXATION | ||||
Loss before income taxes | 675,369 | 105,980 | (2,708,101) | (178,762) |
PRC | ||||
TAXATION | ||||
Loss before income taxes | ¥ (48,861) | $ (7,667) | ¥ 137,178 | ¥ 2,953 |
TAXATION - Income Tax Benefits
TAXATION - Income Tax Benefits (Expense) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
TAXATION | ||||
Current | ¥ (111,082) | $ (17,431) | ¥ (131,844) | ¥ (70,324) |
Deferred | (325) | (51) | 22,508 | 64,887 |
Income tax benefits (expenses) | ¥ (111,407) | $ (17,482) | ¥ (109,336) | ¥ (5,437) |
TAXATION - PRC operations (Deta
TAXATION - PRC operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
TAXATION | ||||
Loss before income taxes | ¥ 626,508 | $ 98,313 | ¥ (2,570,923) | ¥ (175,809) |
Income tax benefits (loss) computed at applicable tax rates (25%) | (156,627) | (24,578) | 642,731 | 43,952 |
Non-deductible expenses | (13,116) | (2,058) | (4,117) | (23,082) |
Research and development expenses | 45,122 | 7,081 | 32,777 | 19,688 |
Preferential rate | 14,232 | 2,233 | 26,554 | 20,213 |
Current and deferred tax rate differences | 26,115 | 4,098 | (36,391) | (8,699) |
International rate differences | 120,678 | 18,937 | (711,962) | (77,066) |
Tax exempted income | 14,536 | 2,281 | 1,087 | 754 |
Foreign Investment | (49,815) | (7,817) | (10,263) | |
Unrecognized tax benefits (expenses) | (12,338) | (1,936) | (58,449) | 1,728 |
Change in valuation allowance | (79,733) | (12,512) | 6,465 | 25,423 |
Prior year provision to return true up | (22,898) | (3,593) | 2,232 | (8,348) |
Others | (2,437) | (382) | ||
Income tax expenses | ¥ (111,407) | $ (17,482) | ¥ (109,336) | ¥ (5,437) |
TAXATION - PRC operations (Pare
TAXATION - PRC operations (Parenthetical) (Details) | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
TAXATION | ||||
Statutory income tax rate | 25.00% | 25.00% | 25.00% | 25.00% |
TAXATION - Deferred Taxes (Deta
TAXATION - Deferred Taxes (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Aug. 16, 2021CNY (¥) | Aug. 16, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Non-current | |||||
Allowance for doubtful debt | ¥ 46,360 | $ 7,275 | ¥ 39,886 | ||
Impairment of long-lived assets | 40,289 | 6,322 | 13,467 | ||
Impairment of long-term investment | 3,024 | 475 | 2,150 | ||
Accrued expense | 16,836 | 2,641 | 24,986 | ||
Tax losses | 262,209 | 41,146 | 171,211 | ||
Property and equipment | 28,569 | 4,483 | 22,631 | ||
Intangible assets | 5,773 | 906 | 5,765 | ||
Finance lease | 386,849 | 60,705 | 390,925 | ||
Deferred government grant | 1,046 | 164 | 1,357 | ||
Operating lease | 623,074 | 97,774 | 292,210 | ||
Loss picked up on equity method investments | 66,121 | 10,376 | 57,201 | ||
Valuation allowance | (261,960) | (41,107) | (170,104) | ||
Total deferred tax assets | 1,218,190 | 191,160 | 851,685 | ||
Non-current | |||||
Intangible assets | 241,090 | 37,831 | 186,258 | ||
Property and equipment | 139,566 | 21,901 | 143,873 | ||
Capitalized interest expenses | 28,604 | 4,489 | 19,339 | ||
Finance lease | 306,598 | 48,112 | 313,102 | ||
Operating lease | 623,074 | 97,774 | 292,210 | ||
Investment in subsidiaries | 59,660 | 9,362 | 10,263 | ||
Gain picked up from equity method investments | 252 | ||||
Total non-current deferred tax liabilities | 1,398,592 | 219,469 | 965,297 | ||
Deferred tax assets | 168,002 | 26,363 | 185,481 | ||
Deferred tax liabilities | 348,404 | 54,672 | ¥ 50,959 | $ 7,997 | 299,093 |
Net deferred tax assets | (180,402) | (28,309) | (113,612) | ||
Net deferred tax liabilities | ¥ (180,402) | $ (28,309) | ¥ (113,612) |
TAXATION - Unrecognized Tax Ben
TAXATION - Unrecognized Tax Benefits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
TAXATION | |||
Balance at beginning of year | ¥ 62,584 | $ 9,821 | ¥ 1,722 |
Reversal based on tax positions related to prior years | (170) | (27) | (629) |
Additions based on tax positions related to the current year | 2,440 | 382 | 61,491 |
Balance at end of year | ¥ 64,854 | $ 10,176 | ¥ 62,584 |
TAXATION - Additional Informati
TAXATION - Additional Information (Details) ¥ in Thousands, $ in Thousands | Jan. 01, 2008 | Dec. 31, 2019 | Dec. 31, 2016 | Nov. 30, 2016 | Oct. 31, 2015 | Apr. 30, 2011 | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018 | Dec. 31, 2008 | Dec. 31, 2021USD ($) |
TAXATION | |||||||||||||
Unified enterprise income tax rate | 25.00% | ||||||||||||
Undistributed earnings from its PRC subsidiaries | ¥ 1,428,251 | $ 224,124 | |||||||||||
Withholding tax liability | 59,660 | $ 9,362 | |||||||||||
Unrecognized tax benefits | 77,573 | ¥ 68,696 | 12,173 | ||||||||||
Unrecognized tax benefits impact in the effective rate | ¥ 61,711 | ||||||||||||
Shanghai Blue Cloud Technology Co., Ltd. ("SH Blue Cloud") | |||||||||||||
TAXATION | |||||||||||||
Preferential tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||
Shenzhen Diyixian Telecommunication Co., Ltd. ("SZ DYX") | |||||||||||||
TAXATION | |||||||||||||
Preferential tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||
Beijing TenxCloud Technology Co., Ltd. ("BJ TenxCloud") | |||||||||||||
TAXATION | |||||||||||||
Preferential tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||
Shanghai Hesheng Data System Co., Ltd ("SH Hesheng") | |||||||||||||
TAXATION | |||||||||||||
Preferential tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||
Beijing 21Vianet Broad Band Data Center Co., Ltd. ("21Vianet Beijing") | |||||||||||||
TAXATION | |||||||||||||
Income tax rate | 15.00% | ||||||||||||
Preferential tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||
21Vianet (Xi'an) Information Outsourcing Industry Park Services Co., Ltd. ("Xi'an Sub") | |||||||||||||
TAXATION | |||||||||||||
Preferential tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||
TAIWAN | DYX Taiwan | |||||||||||||
TAXATION | |||||||||||||
Income tax rate | 20.00% | 20.00% | 20.00% | 20.00% | |||||||||
PRC | |||||||||||||
TAXATION | |||||||||||||
Income tax rate on PRC tax resident enterprises | 25.00% | 25.00% | |||||||||||
Net tax operating losses from PRC subsidiaries (in RMB) | ¥ 1,096,951 | 172,136 | |||||||||||
Interest expenses (in RMB) | 6,606 | $ 1,037 | ¥ 5,391 | ¥ (1,447) | |||||||||
Accumulated interest expenses (in RMB) | ¥ 12,718 | ¥ 6,112 | $ 1,996 | ||||||||||
PRC | Minimum | |||||||||||||
TAXATION | |||||||||||||
Net tax operating losses expiration year | 2022 | 2022 | |||||||||||
PRC | Maximum | |||||||||||||
TAXATION | |||||||||||||
Net tax operating losses expiration year | 2031 | 2031 | |||||||||||
HONG KONG | 21Vianet Hong Kong Entities | |||||||||||||
TAXATION | |||||||||||||
Income tax rate | 16.50% | 16.50% | 16.50% | 16.50% | |||||||||
Non-PRC | |||||||||||||
TAXATION | |||||||||||||
Withholding tax percent | 10.00% | 10.00% |
RELATED PARTY TRANSACTIONS - Re
RELATED PARTY TRANSACTIONS - Related party transactions (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2021USD ($) | |
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans from | ¥ 8,772 | ¥ 51,007 | $ 1,377 | ||
Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 1,223 | $ 192 | 796 | ¥ 5,866 | |
Jingliang Interconnected Cloud Technology Co Ltd | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 480 | 75 | 880 | ||
Jingliang Interconnected Cloud Technology Co Ltd | Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 4,956 | 8,829 | |||
Beijing Tuspark Harmonious Investment Development Co Ltd | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans from | 13,557 | ||||
Related party transaction, Lease payment paid | 43,703 | 68,832 | |||
Xiaomi Communication Technology Limited and Beijing Xiaomi Mobile Software Limited | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 527,679 | 437,694 | |||
Beijing Kingsoft Cloud Network Technology Limited | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 43 | 3,475 | |||
Beijing Kingsoft Cloud Network Technology Limited | Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 16,867 | 3,492 | |||
Beijing Cheetah Mobile Technology Limited | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 98 | 169 | |||
Beijing Huaqing Property Management Co., Ltd | Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 1,254 | 197 | 4,389 | ||
Apurimac Partners Limited | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans from | 765 | 783 | 120 | ||
Apurimac Partners Limited | Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 8,124 | ||||
Shanghai Puping | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans to | 75,611 | 11,865 | 62,531 | ||
BJ New Internet | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans to | 261 | 41 | |||
BJ New Internet | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 170 | 27 | |||
Beijing Qidi Yefeng Investment Co., Ltd | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 3,478 | 7,427 | |||
Related party transaction, loans from | 4,410 | ||||
Related party transaction, Lease payment paid | 2,154 | 338 | 4,516 | ||
WiFire (Beijing) Technology Co., Ltd. | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 1,934 | ||||
Beijing Taiji Data Tech Co Ltd | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans to | 1,500 | ||||
Beijing Taiji Data Tech Co Ltd | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 7,899 | ||||
Beijing Taiji Data Tech Co Ltd | Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 19,942 | ||||
SH Shibei | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, interest income from loan | 1,321 | 207 | |||
Beijing Chengyishidai Network Technology Company Limited | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 38,918 | 6,107 | 38,918 | 38,918 | |
Related party transaction, loans from | 6,870 | 189 | 1,078 | ||
Other Related Party Transactions | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans from | 566 | 387 | 89 | ||
Other Related Party Transactions | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 144 | 23 | 305 | 1,494 | |
Beijing Fastweb Network Technology Co Ltd Bjfastweb | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, interest income from loan | 700 | ||||
Ziguang Financial Leasing Co Ltd | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans from | 31,681 | ||||
Related party transaction, Lease deposit paid | 135 | 6,154 | |||
Related party transaction, Lease payment paid | 10,431 | 1,637 | 30,776 | ¥ 17,156 | |
Tuspark Innovation | |||||
RELATED PARTY TRANSACTIONS | |||||
Cash consideration for shares repurchase | 1,701,804 | 267,050 | |||
King Venture | |||||
RELATED PARTY TRANSACTIONS | |||||
Cash consideration for shares repurchase | ¥ 130,472 | ||||
SZ Century | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans from | 571 | $ 90 | |||
SZ Century | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | ¥ 1,445 | $ 227 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Related party balances (Details) ¥ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Amounts due from related parties current: | |||
Amounts due from related parties current | ¥ 167,967 | $ 26,358,000 | ¥ 75,519 |
Amounts due from related parties non-current: | |||
Amounts due from related parties non current | 20,562 | ||
Amounts due to related parties current: | |||
Amount due to a related party | 8,772 | 1,377,000 | 51,007 |
Amounts due from related parties non-current: | |||
Amounts due to related parties non current | 747,746 | ||
Shihua DC Investment Management Limited ("Shihua Investment Management") | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 11,121 | 1,745,000 | 9,800 |
Apurimac Partners Limited | |||
Amounts due to related parties current: | |||
Amount due to a related party | 765 | 120,000 | 783 |
Other Related Party Transactions | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 1,267 | 200,000 | 1,146 |
Amounts due from related parties non-current: | |||
Amounts due from related parties non current | 1,286 | ||
Amounts due to related parties current: | |||
Amount due to a related party | 566 | 89,000 | 387 |
Shanghai Puping | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 138,142 | 21,677,000 | 62,531 |
Beijing Chengyishidai Network Technology Company Limited | |||
Amounts due to related parties current: | |||
Amount due to a related party | 6,870 | 1,078,000 | 189 |
SZ Century | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 16,996 | 2,667,000 | |
Amounts due to related parties current: | |||
Amount due to a related party | 571 | 90,000 | |
Ziguang Financial Leasing Co Ltd | |||
Amounts due from related parties non-current: | |||
Amounts due from related parties non current | 6,289 | ||
Amounts due to related parties current: | |||
Amount due to a related party | 31,681 | ||
Amounts due from related parties non-current: | |||
Amounts due to related parties non current | 22,247 | ||
Beijing Tuspark Harmonious Investment Development Co Ltd | |||
Amounts due from related parties non-current: | |||
Amounts due from related parties non current | 11,863 | ||
Amounts due to related parties current: | |||
Amount due to a related party | 13,557 | ||
Amounts due from related parties non-current: | |||
Amounts due to related parties non current | 715,992 | ||
Ziguang Financial Leasing Co., Ltd | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 2,042 | ||
Beijing Qidi Yefeng Investment Co., Ltd | |||
Amounts due from related parties non-current: | |||
Amounts due from related parties non current | 1,124 | ||
Amounts due to related parties current: | |||
Amount due to a related party | 4,410 | ||
Amounts due from related parties non-current: | |||
Amounts due to related parties non current | ¥ 9,507 | ||
BJ New Internet Co., Ltd | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | ¥ 441 | $ 69,000 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional information (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2019CNY (¥) | |
RELATED PARTY TRANSACTIONS | |
Impairment of amount due from equity investees | ¥ 52,142 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
RESTRICTED NET ASSETS | |||
Minimum required Percentage of annual after-tax profit to the general statutory reserve | 10.00% | 10.00% | |
Maximum requirement of each of the Entity's PRC Subsidiaries' after-tax profits to be allocated to a general reserve fund as a percentage of each Subsidiaries' registered capital | 50.00% | 50.00% | |
Statutory reserves | ¥ 74,462 | $ 11,685 | ¥ 74,462 |
Restricted net asset, PRC generally accepted accounting principles (in RMB) or (in dollars) | ¥ 13,114,157 | $ 2,057,897 |
(LOSS) EARNING PER SHARE - Basi
(LOSS) EARNING PER SHARE - Basic and diluted loss per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥)¥ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020CNY (¥)¥ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net (loss) income | ¥ 515,101 | $ 80,831 | ¥ (2,680,259) | ¥ (181,246) |
Net profit attributable to noncontrolling interest | (15,003) | (2,354) | (29,088) | (1,046) |
Net (loss) earning attributable to the Company | 500,098 | 78,477 | (2,709,347) | (182,292) |
Plus undeclared cumulative dividend on perpetual convertible preferred shares | ¥ | (22,806) | |||
Deemed distribution to perpetual convertible preferred shareholders | ¥ | (470,643) | |||
Dividend distribution to perpetual convertible preferred shareholders | (5,831) | (915) | ||
Adjusted net (loss) earning attributable to ordinary shareholders - Basic | (494,267) | (77,562) | 3,202,796 | 182,292 |
Changes in the fair value of convertible promissory notes | 829,149 | 130,112 | (2,544,220) | |
Adjusted interest for convertible promissory notes | 9,703 | 1,523 | ||
Adjusted net loss attributable to ordinary shareholders | 494,267 | 77,562 | (3,202,796) | (182,292) |
Adjusted net loss attributable to ordinary shareholders -Diluted | ¥ (325,179) | $ (51,027) | ¥ (3,202,796) | ¥ (182,292) |
Denominator: | ||||
Weighted average number of shares outstanding - basic (in shares) | shares | 865,352,554 | 865,352,554 | 716,888,919 | 668,833,756 |
Weighted average number of shares outstanding - diluted (in shares) | shares | 911,591,433 | 911,591,433 | 716,888,919 | 668,833,756 |
(Loss) earning per share-Basic: | ||||
Net loss | (per share) | ¥ 0.57 | $ 0.09 | ¥ (4.47) | ¥ (0.27) |
Basic (in per share) | (per share) | 0.57 | 0.09 | (4.47) | (0.27) |
Loss per share-Diluted: | ||||
Net loss | (per share) | (0.36) | (0.06) | (4.47) | (0.27) |
Diluted (in per share) | (per share) | ¥ (0.36) | $ (0.06) | ¥ (4.47) | ¥ (0.27) |
(LOSS) EARNING PER SHARE - Addi
(LOSS) EARNING PER SHARE - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
(LOSS) EARNING PER SHARE | |||
Shares issued to depository bank (in shares) | 7,800,000 | 0 | 6,700,002 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands | Aug. 19, 2021shares | Mar. 01, 2021shares | Apr. 30, 2021USD ($)$ / sharesshares | Aug. 31, 2020CNY (¥)shares | Jun. 30, 2020$ / sharesshares | Dec. 31, 2021CNY (¥)shares | Dec. 31, 2021USD ($)Vote$ / sharesshares | Dec. 31, 2020CNY (¥)shares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2021CNY (¥) | Dec. 31, 2020$ / sharesshares | Oct. 31, 2019$ / sharesshares |
SHARE CAPITAL | ||||||||||||
Proceeds from issuance of stock | ¥ (131) | $ (21) | ¥ 2,680,421 | ¥ 572 | ||||||||
Percentage of total principal amount converted | 42.30% | 23.70% | ||||||||||
Shares issued to depository bank (in shares) | 7,800,000 | 7,800,000 | 0 | 6,700,002 | ||||||||
Share issued to depository bank | ¥ | ¥ 0 | |||||||||||
Convertible shares | 54,507,816 | |||||||||||
Public offering | ||||||||||||
SHARE CAPITAL | ||||||||||||
Proceeds from issuance of stock | ¥ | ¥ 2,680,421 | |||||||||||
Tuspark Innovation | ||||||||||||
SHARE CAPITAL | ||||||||||||
Aggregate Purchase price | $ | $ 260,000 | |||||||||||
Number of shares converted from Class B to Class A | 62,418,897 | |||||||||||
Sunrise Corporate Holding Ltd | ||||||||||||
SHARE CAPITAL | ||||||||||||
Number of shares converted from Class B to Class A | 4,100,000 | |||||||||||
Class A Ordinary Shares | ||||||||||||
SHARE CAPITAL | ||||||||||||
Entitled vote per ordinary share | Vote | 1 | |||||||||||
Issuance of new shares for share option exercise and restricted share units vested | 16,680,000 | 16,680,000 | 0 | 304,200 | ||||||||
Number of shares repurchased and cancelled | 104,304 | |||||||||||
Shares issued | 1,199,790,000 | 1,199,790,000 | ||||||||||
Share Price | $ / shares | $ 1,000 | |||||||||||
Number of shares offered and sold | 150,000 | |||||||||||
Number of shares issued upon conversion | 42,401,010 | 42,401,010 | 23,710,140 | |||||||||
Number of convertible preferred stock, shares converted | 150,000 | |||||||||||
Class A Ordinary Shares | Public offering | ||||||||||||
SHARE CAPITAL | ||||||||||||
Number of shares offered and sold | 117,300,000 | |||||||||||
Class A Ordinary Shares | Over allotment option | ||||||||||||
SHARE CAPITAL | ||||||||||||
Number of shares offered and sold | 15,300,000 | |||||||||||
Class A Ordinary Shares | Tuspark Innovation | ||||||||||||
SHARE CAPITAL | ||||||||||||
Share repurchase price | $ / shares | $ 5.346 | |||||||||||
Class B Ordinary Shares | ||||||||||||
SHARE CAPITAL | ||||||||||||
Entitled vote per ordinary share | Vote | 10 | |||||||||||
Conversion share ratio | 1 | |||||||||||
Shares issued | 300,000,000 | 300,000,000 | ||||||||||
Class B Ordinary Shares | Tuspark Innovation | ||||||||||||
SHARE CAPITAL | ||||||||||||
Number of shares repurchased and cancelled | 48,634,493 | |||||||||||
Ordinary shares repurchased | 48,634,493 | |||||||||||
Class C Ordinary Shares | ||||||||||||
SHARE CAPITAL | ||||||||||||
Entitled vote per ordinary share | Vote | 1 | |||||||||||
Conversion share ratio | 1 | |||||||||||
Shares issued | 60,000 | 60,000 | ||||||||||
Class C Ordinary Shares | Personal Group Limited | ||||||||||||
SHARE CAPITAL | ||||||||||||
Shares issued | 60,000 | |||||||||||
Share Price | $ / shares | $ 1.35 | |||||||||||
American Depository Shares | ||||||||||||
SHARE CAPITAL | ||||||||||||
Conversion price (in dollars per share) | $ / shares | $ 12 | $ 12 | $ 54.47 | |||||||||
American Depository Shares | Public offering | ||||||||||||
SHARE CAPITAL | ||||||||||||
Number of shares offered and sold | 19,550,000 | |||||||||||
American Depository Shares | Over allotment option | ||||||||||||
SHARE CAPITAL | ||||||||||||
Number of shares offered and sold | 2,550,000 | |||||||||||
American Depository Shares | Tuspark Innovation | ||||||||||||
SHARE CAPITAL | ||||||||||||
Share repurchase price | $ / shares | $ 32.076 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and liabilities measured (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | ¥ 16,613 | $ 2,607 | ¥ 933,464 |
Liabilities measured at fair value on recurring basis | 3,750,183 | 588,486 | 5,012,145 |
Available-for-sales Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | 1,600 | 251 | 1,713 |
Current portion of bonds payable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | 1,998,088 | ||
2025 Convertible promissory notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | 513,754 | 80,619 | 3,014,057 |
2026 Convertible promissory notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | 3,021,852 | 474,195 | |
Accrued expenses and other payables: -Share consideration due to the original shareholders for business combination (Note 4) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | 214,577 | 33,672 | |
Bank Time Deposits | Short-term investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | 285,872 | ||
Bank Time Deposits | Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | 15,013 | $ 2,356 | 645,879 |
Quoted prices in active markets for identical assets and liabilities (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | 15,013 | 931,751 | |
Liabilities measured at fair value on recurring basis | 3,021,852 | 1,998,088 | |
Quoted prices in active markets for identical assets and liabilities (Level 1) | Current portion of bonds payable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | 1,998,088 | ||
Quoted prices in active markets for identical assets and liabilities (Level 1) | 2026 Convertible promissory notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | 3,021,852 | ||
Quoted prices in active markets for identical assets and liabilities (Level 1) | Bank Time Deposits | Short-term investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | 285,872 | ||
Quoted prices in active markets for identical assets and liabilities (Level 1) | Bank Time Deposits | Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | 15,013 | 645,879 | |
Unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | 1,600 | 1,713 | |
Liabilities measured at fair value on recurring basis | 728,331 | 3,014,057 | |
Unobservable inputs (Level 3) | Available-for-sales Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | 1,600 | 1,713 | |
Unobservable inputs (Level 3) | 2025 Convertible promissory notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | 513,754 | ¥ 3,014,057 | |
Unobservable inputs (Level 3) | Accrued expenses and other payables: -Share consideration due to the original shareholders for business combination (Note 4) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | ¥ 214,577 |
FAIR VALUE MEASUREMENTS - Liabi
FAIR VALUE MEASUREMENTS - Liabilities measured (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Beginning Balance | ¥ 214,953 | ||
Changes in the fair value | (376) | ||
Ending Balance | 214,577 | $ 33,672 | ¥ 214,953 |
2025 Convertible promissory notes | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Beginning Balance | 3,014,057 | 1,409,385 | |
Foreign exchange loss | (31,348) | (219,001) | |
Changes in the fair value | (829,149) | 2,544,220 | |
Reclassification to equity | (1,639,806) | (720,547) | |
Ending Balance | ¥ 513,754 | $ 80,619 | ¥ 3,014,057 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Capital commitments (Details) - Dec. 31, 2021 - Schedule of commitments to purchase certain computer and network equipment and construction-in-progress - Capital Commitments ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Long-term Purchase Commitment [Line Items] | ||
2022 | ¥ 1,586,604 | $ 248,973 |
2023 and thereafter | 32,725 | 5,135 |
Commitments to purchase | ¥ 1,619,329 | $ 254,108 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) - Dec. 31, 2021 - Purchase commitment - Schedule of outstanding purchase commitments in relation to bandwidth and cabinet capacity ¥ in Thousands, $ in Thousands | CNY (¥) | USD ($) |
Long-term Purchase Commitment [Line Items] | ||
2022 | ¥ 698,586 | $ 109,623 |
2022 | 110,779 | 17,384 |
2024 | 64,525 | 10,125 |
2025 | 2,314 | 363 |
2026 | 2,314 | 363 |
2027 and thereafter | 3,355 | 526 |
Commitments to purchase | ¥ 881,873 | $ 138,384 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Oct. 30, 2020CNY (¥) | Oct. 30, 2020USD ($) |
COMMITMENTS AND CONTINGENCIES | ||||
Accrual for unrecognized tax benefits and interest | ¥ 77,573 | $ 12,173 | ||
Estimated loss | ¥ 1,628 | $ 250 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Jan. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event | ||
Term of the notes | 1 year | |
Subsequent Event | Convertible Notes Payable | ||
Subsequent Event | ||
Total aggregate principal amount | $ 250,000 | |
Simple interest rate | 2.00% | |
Term of the notes | 5 years |
PARENT COMPANY ONLY CONDENSED_3
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed balance sheets (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Aug. 16, 2021CNY (¥) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) |
Current assets | |||||
Cash and cash equivalents | ¥ 1,372,481 | $ 215,372 | ¥ 3 | ¥ 2,710,349 | ¥ 1,808,483 |
Short-term investments | 285,872 | ||||
Prepaid expenses and other current assets | 2,049,911 | 321,673 | 1,866,184 | ||
Total current assets | 5,324,123 | 835,469 | 6,055,607 | ||
Non-current assets | |||||
Total non-current assets | 17,770,916 | 2,788,645 | 13,318,148 | ||
Total assets | 23,095,039 | 3,624,114 | 19,373,755 | ||
Current liabilities: | |||||
Accrued expenses and other payables | 2,298,089 | 360,620 | 1,631,563 | ||
Interest payable | 3,595 | 564 | 37,799 | ||
Current portion of bonds payable | 1,943,619 | ||||
Total current liabilities | 5,179,995 | 812,854 | 6,121,960 | ||
Non-current liabilities | |||||
Convertible promissory notes | 4,266,951 | 669,578 | 3,014,057 | ||
Total non-current liabilities | 10,314,043 | 1,618,498 | 6,354,315 | ||
Total liabilities | 15,494,038 | 2,431,352 | 12,476,275 | ||
Shareholders' equity: | |||||
Additional paid-in capital | 15,198,055 | 2,384,906 | 13,083,119 | ||
Accumulated other comprehensive loss | (90,443) | (14,192) | (55,535) | ||
Accumulated deficit | (7,590,382) | (1,191,097) | (7,235,113) | ||
Treasury stock | (349,523) | (54,848) | (349,523) | ||
Total VNET Group, Inc. shareholders' equity | 7,242,229 | 1,136,463 | 6,564,934 | ||
Total liabilities and shareholders' equity | 23,095,039 | 3,624,114 | 19,373,755 | ||
Parent Company | |||||
Current assets | |||||
Cash and cash equivalents | 100,019 | 15,695 | 62,116 | ||
Prepaid expenses and other current assets | 93,546 | 14,679 | 97,391 | ||
Amounts due from subsidiaries | 9,844,114 | 1,544,756 | 9,320,580 | ||
Total current assets | 10,037,679 | 1,575,130 | 9,480,087 | ||
Non-current assets | |||||
Investments in subsidiaries | 2,333,998 | 366,255 | 2,169,222 | ||
Total non-current assets | 2,333,998 | 366,255 | 2,169,222 | ||
Total assets | 12,371,677 | 1,941,385 | 11,649,309 | ||
Current liabilities: | |||||
Accrued expenses and other payables | 54,893 | 8,614 | 87,001 | ||
Account payables | 51 | 8 | 52 | ||
Current portion of bonds payable | 1,943,619 | ||||
Amount due to related parties | 765 | 120 | 783 | ||
Amounts due to subsidiaries | 806,788 | 126,602 | 38,863 | ||
Total current liabilities | 862,497 | 135,344 | 2,070,318 | ||
Non-current liabilities | |||||
Total non-current liabilities | 4,266,951 | 669,578 | 3,014,057 | ||
Total liabilities | 5,129,448 | 804,922 | 5,084,375 | ||
Shareholders' equity: | |||||
Additional paid-in capital | 15,198,055 | 2,384,906 | 13,083,119 | ||
Accumulated other comprehensive loss | (90,443) | (14,192) | (55,535) | ||
Accumulated deficit | (7,515,920) | (1,179,412) | (7,160,651) | ||
Treasury stock | (349,523) | (54,848) | (349,523) | ||
Total VNET Group, Inc. shareholders' equity | 7,242,229 | 1,136,463 | 6,564,934 | ||
Total liabilities and shareholders' equity | 12,371,677 | 1,941,385 | 11,649,309 | ||
Class A Ordinary Shares | |||||
Shareholders' equity: | |||||
Ordinary shares | 56 | 8 | 44 | ||
Class A Ordinary Shares | Parent Company | |||||
Shareholders' equity: | |||||
Ordinary shares | 56 | 8 | 44 | ||
Class B Ordinary Shares | |||||
Shareholders' equity: | |||||
Ordinary shares | 4 | 1 | 12 | ||
Class B Ordinary Shares | Parent Company | |||||
Shareholders' equity: | |||||
Ordinary shares | ¥ 4 | $ 1 | 12 | ||
Series A Perpetual Convertible Preferred Shares | |||||
Shareholders' equity: | |||||
Series A perpetual convertible preferred shares (par value of US$0.00001 per share; 150,000 and 150,000 shares authorized; 150,000 and nil shares issued and outstanding as of December 31, 2020 and 2021, respectively) | 1,047,468 | ||||
Series A Perpetual Convertible Preferred Shares | Parent Company | |||||
Shareholders' equity: | |||||
Series A perpetual convertible preferred shares (par value of US$0.00001 per share; 150,000 and 150,000 shares authorized; 150,000 and nil shares issued and outstanding as of December 31, 2020 and 2021, respectively) | ¥ 1,047,468 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed balance sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed balance sheets | ||
Series A perpetual convertible preferred shares, par value | $ 0.00001 | $ 0.00001 |
Series A perpetual convertible preferred shares, authorized | 150,000 | 150,000 |
Series A perpetual convertible preferred shares, shares issued | 0 | 150,000 |
Series A perpetual convertible preferred shares, shares outstanding | 0 | |
Class A Ordinary Shares | ||
Condensed balance sheets | ||
Ordinary shares, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Ordinary shares, shares authorized (in shares) | 1,199,790,000 | 1,199,790,000 |
Ordinary shares, shares issued (in shares) | 859,932,323 | 672,024,600 |
Ordinary shares, shares outstanding (in shares) | 859,932,323 | 672,024,600 |
Class B Ordinary Shares | ||
Condensed balance sheets | ||
Ordinary shares, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Ordinary shares, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Ordinary shares, shares issued (in shares) | 30,721,723 | 145,875,113 |
Ordinary shares, shares outstanding (in shares) | 30,721,723 | 145,875,113 |
Class C Ordinary Shares | ||
Condensed balance sheets | ||
Ordinary shares, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Ordinary shares, shares authorized (in shares) | 60,000 | 60,000 |
Ordinary shares, shares issued (in shares) | 60,000 | 60,000 |
Ordinary shares, shares outstanding (in shares) | 60,000 | 60,000 |
Parent Company | Class A Ordinary Shares | ||
Condensed balance sheets | ||
Ordinary shares, shares authorized (in shares) | 1,199,790,000 | |
Ordinary shares, shares issued (in shares) | 859,932,323 | 859,932,323 |
Ordinary shares, shares outstanding (in shares) | 672,024,600 | |
Parent Company | Class B Ordinary Shares | ||
Condensed balance sheets | ||
Ordinary shares, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Ordinary shares, shares issued (in shares) | 145,875,113 | 145,875,113 |
Ordinary shares, shares outstanding (in shares) | 30,721,723 | 30,721,723 |
Parent Company | Class C Ordinary Shares | ||
Condensed balance sheets | ||
Ordinary shares, shares authorized (in shares) | 60,000 | 60,000 |
Ordinary shares, shares issued (in shares) | 60,000 | 60,000 |
Ordinary shares, shares outstanding (in shares) | 60,000 | 60,000 |
Parent Company | Series A Perpetual Convertible Preferred Shares | ||
Condensed balance sheets | ||
Series A perpetual convertible preferred shares, par value | $ 0.00001 | $ 0.00001 |
Series A perpetual convertible preferred shares, authorized | 150,000 | 150,000 |
Series A perpetual convertible preferred shares, shares issued | 0 | 150,000 |
Series A perpetual convertible preferred shares, shares outstanding | 0 | 150,000 |
PARENT COMPANY ONLY CONDENSED_5
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION- Condensed statements of operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Operating Expenses | ||||
General and administrative expenses | ¥ (842,354) | $ (132,184) | ¥ (535,111) | ¥ (415,277) |
Operating loss | 21,314 | 3,345 | 116,604 | 182,234 |
Changes in the fair value of convertible promissory notes | 829,149 | 130,112 | (2,544,220) | |
Loss before income taxes | 626,508 | 98,313 | (2,570,923) | (175,809) |
Comprehensive (loss) income attributable to VNET Group, Inc. | 465,190 | 72,999 | (2,842,786) | (190,367) |
Income tax expenses | (111,407) | (17,482) | (109,336) | (5,437) |
Net (loss) income attributable to the VNET Group, Inc. | 500,098 | 78,477 | (2,709,347) | (182,292) |
Parent Company | ||||
Operating Expenses | ||||
General and administrative expenses | (275,881) | (43,292) | (94,175) | (44,490) |
Operating loss | (275,881) | (43,292) | (94,175) | (44,490) |
Other loss | (119,932) | (18,820) | (168,656) | (274,572) |
Changes in the fair value of convertible promissory notes | 829,149 | 130,112 | (2,544,220) | |
Share of profits from subsidiaries and Consolidated VIEs | 66,762 | 10,477 | 97,704 | 136,770 |
Loss before income taxes | 500,098 | 78,477 | (2,709,347) | (182,292) |
Comprehensive (loss) income attributable to VNET Group, Inc. | 72,999 | (2,842,786) | (190,367) | |
Income tax expenses | 0 | 0 | 0 | 0 |
Net (loss) income attributable to the VNET Group, Inc. | 500,098 | $ 78,477 | ¥ (2,709,347) | ¥ (182,292) |
Reportable Legal Entities [Member] | Parent Company | ||||
Operating Expenses | ||||
Comprehensive (loss) income attributable to VNET Group, Inc. | 465,190 | |||
Net (loss) income attributable to the VNET Group, Inc. | ¥ 500,098 |
PARENT COMPANY ONLY CONDENSED_6
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statement of Comprehensive Loss (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Condensed statements of comprehensive loss | ||||
Net loss | ¥ 500,098 | $ 78,477 | ¥ (2,709,347) | ¥ (182,292) |
Other comprehensive loss, net of tax of nil | ||||
Foreign currency translation adjustments, net of tax of nil | (34,908) | (5,478) | (133,439) | (8,075) |
Comprehensive (loss) income | 480,193 | 75,353 | (2,813,698) | (189,321) |
Comprehensive loss attributable to 21Vianet Group, Inc. | 465,190 | 72,999 | (2,842,786) | (190,367) |
Parent Company | ||||
Condensed statements of comprehensive loss | ||||
Net loss | 500,098 | 78,477 | (2,709,347) | (182,292) |
Other comprehensive loss, net of tax of nil | ||||
Foreign currency translation adjustments, net of tax of nil | (5,478) | (133,439) | (8,075) | |
Other comprehensive income (loss), net of tax of nil: | (5,478) | (133,439) | (8,075) | |
Comprehensive (loss) income | 72,999 | (2,842,786) | (190,367) | |
Comprehensive loss attributable to 21Vianet Group, Inc. | $ 72,999 | ¥ (2,842,786) | ¥ (190,367) | |
Reportable Legal Entities [Member] | Parent Company | ||||
Condensed statements of comprehensive loss | ||||
Net loss | 500,098 | |||
Other comprehensive loss, net of tax of nil | ||||
Foreign currency translation adjustments, net of tax of nil | (34,908) | |||
Other comprehensive income (loss), net of tax of nil: | (34,908) | |||
Comprehensive (loss) income | 465,190 | |||
Comprehensive loss attributable to 21Vianet Group, Inc. | ¥ 465,190 |
PARENT COMPANY ONLY CONDENSED_7
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statement of Comprehensive Loss (Parenthetical) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed statements of comprehensive loss | |||
Foreign currency translation adjustments, tax | ¥ 0 | ¥ 0 | ¥ 0 |
Parent Company | |||
Condensed statements of comprehensive loss | |||
Other comprehensive (loss) income, tax | 0 | 0 | |
Foreign currency translation adjustments, tax | ¥ 0 | ¥ 0 |
PARENT COMPANY ONLY CONDENSED_8
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | |
Condensed Cash Flow Statements, Captions | ||||
Net cash used in operating activities | ¥ 1,387,922 | $ 217,796 | ¥ 714,243 | ¥ 802,922 |
Net cash used in investing activities | (3,772,613) | (592,007) | (3,889,174) | (1,611,983) |
Net cash generated from financing activities | 967,577 | 151,833 | 4,163,255 | 461,557 |
Net increase (decrease) in cash and cash equivalents and restricted cash | (1,407,964) | (220,940) | 759,260 | (303,844) |
Cash and cash equivalents and restricted cash at beginning of year | 3,116,437 | 489,037 | 2,357,177 | 2,661,021 |
Total cash and cash equivalents and restricted cash | 1,708,473 | 268,097 | 3,116,437 | 2,357,177 |
Parent Company | ||||
Condensed Cash Flow Statements, Captions | ||||
Net cash used in operating activities | (218,664) | (34,313) | (743,944) | (142,989) |
Net cash used in investing activities | 113,530 | 17,815 | (3,036,370) | (1,011,257) |
Net cash generated from financing activities | 143,037 | 22,446 | 3,598,441 | 807,765 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 37,903 | 5,948 | (181,873) | (346,481) |
Cash and cash equivalents and restricted cash at beginning of year | 62,116 | 9,747 | 243,989 | 590,470 |
Total cash and cash equivalents and restricted cash | ¥ 100,019 | $ 15,695 | ¥ 62,116 | ¥ 243,989 |
PARENT COMPANY ONLY CONDENSED_9
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Related Party transactions (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2021CNY (¥) | Dec. 31, 2021USD ($) | Dec. 31, 2020CNY (¥) |
Amount due from related parties current | |||
Amount due from related parties current | ¥ 167,967 | $ 26,358 | ¥ 75,519 |
Amount due to related parties | |||
Amounts due to related parties of the consolidated VIEs without resource to the primary beneficiaries | 8,772 | 1,377 | 51,007 |
Parent Company | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 9,844,114 | 1,544,756 | 9,320,580 |
Amounts due to subsidiaries | |||
Amount due to subsidiaries current | 806,788 | 126,602 | 38,863 |
Parent Company | 21Vianet Hong Kong Entities | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 7,195,150 | 1,129,076 | 7,043,586 |
Parent Company | Hong Kong Fastweb Holdings Co., Limited ("Fastweb HK") | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 62,780 | ||
Amounts due to subsidiaries | |||
Amount due to subsidiaries current | 212,778 | 33,390 | |
Parent Company | 21Vianet Mobile Limited ("21V Mobile") | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 55,679 | 8,737 | 56,265 |
Parent Company | VNET Future Technology Limited | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 306,034 | 48,023 | |
Parent Company | WiFire Open Network Group Ltd | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 2,286,602 | 358,818 | 2,157,285 |
Parent Company | DYX | |||
Amounts due to subsidiaries | |||
Amount due to subsidiaries current | 462,551 | 72,584 | 9 |
Parent Company | Other Subsidiaries | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 649 | 102 | 664 |
Amounts due to subsidiaries | |||
Amount due to subsidiaries current | 55,006 | 8,631 | 3,071 |
Parent Company | Beijing 21Vianet Zhi Hui Neng Yuan System Technology Company Limited | |||
Amounts due to subsidiaries | |||
Amount due to subsidiaries current | ¥ 76,453 | $ 11,997 | ¥ 35,783 |