UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION 

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER 

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER 

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2023

 

Commission File Number: 001-35126

 

 

VNET Group, Inc.

 

 

Guanjie Building, Southeast 1st Floor
10# Jiuxianqiao East Road
 

Chaoyang District 

Beijing 100016 

The People’s Republic of China 

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  x            Form 40-F  ¨

 

 

 

 

 

 

EXHIBIT INDEX

 

Exhibit No.

 

Description

99.1   Press Release

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  VNET Group, Inc.
     
  By:

/s/ Qiyu Wang

  Name: Qiyu Wang
  Title: Chief Financial Officer

 

Date: August 23, 2023

 

 

 

 

 

Exhibit 99.1

 

 

 

VNET Reports Unaudited Second Quarter 2023 Financial Results

 

BEIJING, August 23, 2023 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) (“VNET” or the “Company”), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the second quarter ended June 30, 2023.

 

“During the second quarter of 2023, we delivered another solid set of results as we continued to execute our proven dual-core growth strategy, which reaffirms our ability to quickly capture incremental market demand amid the steady economic recovery,” said Jeff Dong, Chief Executive Officer of VNET. “We also saw some new AI application scenarios emerging across various industry verticals in China, starting to generate more demand for IDC services. With our high-performance data center design, extensive resources and strong execution capabilities, we remain poised to power the AI-driven demand for our wholesale and retail customers over the long term.

 

“Our wholesale and retail businesses continued to build strong sales momentum as digitalization gathers pace across industries. On the wholesale business front, we recently won an extended contract for 45MW of capacity from an existing internet giant customer. On the retail business front, in the second quarter we secured a contract for 7MW of additional capacity with an existing customer in the local service sector. Looking ahead, we believe our reliable and scalable IDC services, high power density deployment capabilities and loyal and expanding customer base position us well to seize rising opportunities and unleash further growth potential,” Jeff concluded.

 

Qiyu Wang, Chief Financial Officer of VNET, added, “In the second quarter of 2023, we remained focused on advancing high-quality revenue business to drive margin and profitability improvements. We are pleased to have achieved net revenues of RMB1.82 billion in the second quarter, representing an increase of 5.6% year over year. Thanks to our enhanced operating efficiency, adjusted EBITDA grew 9.9% year over year to RMB535.0 million, and adjusted EBITDA margin expanded to 29.4%. Moving forward, we will continue to explore new opportunities emerging from robust digital demand, especially AI-related demand, further strengthening our position as a leading IDC player and creating long-term, sustainable growth for our shareholders.”

 

Second Quarter 2023 Financial Highlights

 

·Net revenues increased by 5.6% to RMB1.82 billion (US$251.2 million) from RMB1.72 billion in the same period of 2022.

 

·Adjusted cash gross profit (non-GAAP) increased by 4.1% to RMB742.9 million (US$102.5 million) from RMB713.7 million in the same period of 2022. Adjusted cash gross margin (non-GAAP) was 40.8%, compared to 41.4% in the same period of 2022.

 

·Adjusted EBITDA (non-GAAP) increased by 9.9% to RMB535.0 million (US$73.8 million) from RMB486.9 million in the same period of 2022. Adjusted EBITDA margin (non-GAAP) in the second quarter of 2023 was 29.4%, compared to 28.2% in the same period of 2022.

 

Second Quarter 2023 Operational Highlights

 

·Total cabinets under management were 86,927 as of June 30, 2023, compared to 87,310 as of March 31, 2023 and 80,831 as of June 30, 2022.

 

·Cabinets utilized by customers increased by 2,000 in the second quarter of 2023 to reach 51,316 as of June 30, 2023, compared to 49,316 as of March 31, 2023 and 44,500 as of June 30, 2022.

 

·Overall utilization rate of cabinets1 was 59.0% as of June 30, 2023, compared to 56.5% as of March 31, 2022 and 55.1% as of June 30, 2022.

 

·Retail IDC MRR2 per cabinet increased to RMB9,530 in the second quarter of 2023, compared to RMB9,486 in the first quarter of 2023 and RMB9,186 in the second quarter of 2022.

 

 

1 The overall utilization rate is calculated by dividing the number of customer-utilized cabinets by the total cabinets under management at the end of the period.

2 Retail IDC MRR refers to Monthly Recurring Revenues for the retail IDC business.

 

1 

 

 

 

 

Second Quarter 2023 Financial Results

 

NET REVENUES: Net revenues in the second quarter of 2023 were RMB1.82 billion (US$251.2 million), representing an increase of 5.6% from RMB1.72 billion in the same period of 2022. The year-over-year increase was mainly driven by the continued growth of our IDC business as well as our cloud and VPN services.

 

GROSS PROFIT: Gross profit in the second quarter of 2023 was RMB342.7 million (US$47.3 million), compared with RMB357.8 million in the same period of 2022. Gross margin in the second quarter of 2023 was 18.8%, compared to 20.7% in the same period of 2022.

 

ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was RMB742.9 million (US$102.5 million) in the second quarter of 2023, compared to RMB713.7 million in the same period of 2022. Adjusted cash gross margin in the second quarter of 2023 was 40.8%, compared to 41.4% in the same period of 2022.

 

OPERATING EXPENSES: Total operating expenses in the second quarter of 2023 were RMB249.5 million (US$34.4 million), compared to RMB321.7 million in the same period of 2022. As a percentage of net revenues, total operating expenses in the second quarter of 2023 were 13.7%, compared to 18.7% in the same period of 2022.

 

Sales and marketing expenses in the second quarter of 2023 were RMB63.1 million (US$8.7 million), compared to RMB80.4 million in the same period of 2022.

 

Research and development expenses in the second quarter of 2023 were RMB81.1 million (US$11.2 million), compared to RMB76.7 million in the same period of 2022.

 

General and administrative expenses in the second quarter of 2023 were RMB128.0 million (US$17.7 million), compared to RMB167.0 million in the same period of 2022.

 

ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses and compensation for postcombination employment in an acquisition, were RMB241.5 million (US$33.3 million) in the second quarter of 2023, compared to RMB250.7 million in the same period of 2022. As a percentage of net revenues, adjusted operating expenses in the second quarter of 2023 were 13.3%, compared to 14.5% in the same period of 2022.

 

ADJUSTED EBITDA: Adjusted EBITDA in the second quarter of 2023 was RMB535.0 million (US$73.8 million), representing an increase of 9.9% from RMB486.9 million in the same period of 2022. Adjusted EBITDA in the second quarter of 2023 excluded share-based compensation expenses of RMB8.0 million (US$1.1 million). Adjusted EBITDA margin in the second quarter of 2023 was 29.4%, compared to 28.2% in the same period of 2022.

 

NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the second quarter of 2023 was RMB232.9 million (US$32.1 million), compared to a net loss attributable to VNET Group, Inc. of RMB377.2 million in the same period of 2022.

 

LOSS PER SHARE: Basic and diluted loss per share in the second quarter of 2023 were both RMB0.26 (US$0.04), which represented the equivalent of both RMB1.56 (US$0.24) per American depositary share (“ADS”). Each ADS represents six Class A ordinary shares. Diluted loss per share is calculated using adjusted net loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

 

As of June 30, 2023, the aggregate amount of the Company’s cash and cash equivalents, restricted cash and short-term investments was RMB2.76 billion (US$380.8 million).

 

Net cash generated from operating activities, in the second quarter of 2023, was RMB423.5 million (US$58.4 million), compared to RMB942.7 million in the same period of 2022.

 

2 

 

 

 

 

Business Outlook

 

The Company expects net revenues for the full year of 2023 to be in the range of RMB7,600 million to RMB7,900 million, representing a year-over-year growth of 7.6% to 11.8%, and adjusted EBITDA to be in the range of RMB2,025 million to RMB2,125 million, representing a year-over-year growth of 8.1% to 13.5%. The above outlook remains unchanged from the previously provided estimates.

 

The forecast reflects the Company’s current and preliminary views on the market and its operational conditions, and is subject to change.

 

Conference Call

 

The Company’s management will host an earnings conference call at 9:00 PM U.S. Eastern Time on Wednesday, August 23, 2023, or 9:00 AM Beijing Time on Thursday, August 24, 2023.

 

For participants who wish to join the call, please access the link provided below to complete the online registration process and dial in 5 minutes prior to the scheduled call start time.

 

Event Title:   VNET Second Quarter 2023 Earnings Conference Call
Registration Link:   https://register.vevent.com/register/BId0a80aca23f747f89ed4d80958052f31

 

Upon registration, each participant will receive a set of dial-in numbers by location, a personal PIN and an email with further detailed instructions, which will be used to join the conference call.

 

A simultaneous audio webcast and replay of the conference call will be accessible on the Company’s investor relations website at http://ir.vnet.com.

 

Non-GAAP Disclosure

 

In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.

 

The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

 

Exchange Rate

 

This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2513 to US$1.00, the noon buying rate in effect on June 30, 2023, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

 

3 

 

 

 

 

Statement Regarding Unaudited Condensed Financial Information

 

The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.

 

About VNET

 

VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.

 

Safe Harbor Statement

 

This announcement contains forward-looking statements. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “target,” “believes,” “estimates” and similar statements. Among other things, quotations from management in this announcement as well as VNET’s strategic and operational plans contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET’s goals and strategies; VNET’s expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET’s services; VNET’s expectations regarding keeping and strengthening its relationships with customers; VNET’s plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET’s reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law.

 

Investor Relations Contact:

 

Xinyuan Liu 

Tel: +86 10 8456 2121 

Email: ir@vnet.com

 

4 

 

 

 VNET GROUP, INC.

 CONSOLIDATED BALANCE SHEETS

 (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

   As of   As of 
   December 31, 2022   June 30, 2023 
   RMB   RMB   US$ 
Assets        Ex-Rate     7.2513 
Current assets:               
Cash and cash equivalents   2,661,321    2,362,999    325,872 
Restricted cash   327,673    253,088    34,902 
Accounts and notes receivable, net   1,763,693    2,020,880    278,692 
Short-term Investments   -    144,516    19,930 
Prepaid expenses and other current assets   2,147,500    2,542,062    350,569 
Amounts due from related parties   152,089    232,518    32,066 
Total current assets   7,052,276    7,556,063    1,042,031 
Non-current assets:               
Property and equipment, net   11,964,498    12,396,048    1,709,493 
Intangible assets, net   1,497,131    1,436,523    198,106 
Land use rights, net   576,020    610,195    84,150 
Operating lease right-of-use assets, net   3,503,925    3,882,743    535,455 
Goodwill   1,364,191    1,364,191    188,131 
Restricted cash   500    882    122 
Deferred tax assets, net   196,098    214,944    29,642 
Long-term investments, net   242,194    755,625    104,205 
Other non-current assets   551,572    598,865    82,587 
Total non-current assets   19,896,129    21,260,016    2,931,891 
Total assets   26,948,405    28,816,079    3,973,922 
Liabilities and Shareholders' Equity               
Current liabilities:               
Accounts and notes payable   713,628    743,685    102,559 
Accrued expenses and other payables   2,410,479    2,680,426    369,648 
Advances from customers   1,157,963    1,448,931    199,817 
Deferred revenue   95,078    83,474    11,512 
Income taxes payable   42,017    37,897    5,226 
Amounts due to related parties   6,928    356,358    49,144 
Current portion of long-term borrowings   484,020    532,969    73,500 
Current portion of finance lease liabilities   206,260    144,561    19,936 
Current portion of deferred government grants   3,646    3,646    503 
Current portion of operating lease liabilities   674,288    735,409    101,418 
Convertible promissory notes   537,778    4,433,161    611,361 
Total current liabilities   6,332,085    11,200,517    1,544,624 
Non-current liabilities:               
Long-term borrowings   3,049,856    3,667,562    505,780 
Convertible promissory notes   5,859,259    1,805,589    249,002 
Non-current portion of finance lease liabilities   1,047,640    1,181,477    162,933 
Unrecognized tax benefits   87,174    87,174    12,022 
Deferred tax liabilities   682,580    692,113    95,447 
Deferred government grants   2,672    101,471    13,993 
Non-current portion of operating lease liabilities   2,905,283    3,172,632    437,526 
Total non-current liabilities   13,634,464    10,708,018    1,476,703 
Shareholders' equity               
Ordinary shares   60    60    8 
Additional paid-in capital   15,239,926    15,220,309    2,098,977 
Accumulated other comprehensive income   11,022    3,800    524 
Statutory reserves   77,996    77,996    10,756 
Accumulated deficit   (8,369,868)   (8,520,454)   (1,175,024)
Treasury stock   (349,523)   (349,523)   (48,201)
Total VNET Group, Inc. shareholders’ equity   6,609,613    6,432,188    887,040 
Noncontrolling interest   372,243    475,356    65,555 
Total shareholders' equity   6,981,856    6,907,544    952,595 
Total liabilities and shareholders' equity   26,948,405    28,816,079    3,973,922 

 

5 

 

 

VNET GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data)    

 

   Three months ended   Six months ended 
   June 30, 2022   March 31, 2023   June 30, 2023   June 30, 2022   June 30, 2023 
   RMB   RMB   RMB   US$   RMB   RMB   US$ 
Net revenues   1,724,863    1,805,782    1,821,744    251,230    3,370,349    3,627,526    500,259 
Cost of revenues   (1,367,086)   (1,453,402)   (1,478,995)   (203,963)   (2,657,051)   (2,932,397)   (404,396)
Gross profit   357,777    352,380    342,749    47,267    713,298    695,129    95,863 
                                    
Operating income (expenses)                                   
Other operating income   1,588    33,379    13,895    1,916    41,285    47,274    6,519 
Sales and marketing expenses   (80,368)   (65,776)   (63,068)   (8,697)   (155,309)   (128,844)   (17,768)
Research and development expenses   (76,740)   (79,750)   (81,126)   (11,188)   (149,355)   (160,876)   (22,186)
General and administrative expenses   (167,044)   (127,447)   (128,017)   (17,654)   (321,281)   (255,464)   (35,230)
Reversal for doubtful debt   845    2,449    8,833    1,218    3,478    11,282    1,556 
Total operating expenses   (321,719)   (237,145)   (249,483)   (34,405)   (581,182)   (486,628)   (67,109)
                                    
Operating profit   36,058    115,235    93,266    12,862    132,116    208,501    28,754 
Interest income   8,814    5,681    10,038    1,384    13,363    15,719    2,168 
Interest expense   (68,530)   (69,786)   (71,709)   (9,889)   (121,649)   (141,495)   (19,513)
Other income   2,896    1,164    14,192    1,957    8,287    15,356    2,118 
Other expenses   (693)   (3,592)   (320)   (44)   (1,045)   (3,912)   (539)
Changes in the fair value of convertible promissory notes   (2,321)   21,298    154    21    57,957    21,452    2,958 
Foreign exchange (loss) gain   (319,875)   78,633    (271,630)   (37,459)   (295,126)   (192,997)   (26,616)
(Loss) income before income taxes and gain (loss) from equity method investments   (343,651)   148,633    (226,009)   (31,168)   (206,097)   (77,376)   (10,670)
Income tax expenses   (30,946)   (44,886)   (12,545)   (1,730)   (77,646)   (57,431)   (7,920)
Gain (loss) from equity method investments   1,090    (174)   983    136    3,137    809    112 
Net (loss) income   (373,507)   103,573    (237,571)   (32,762)   (280,606)   (133,998)   (18,478)
Net (profit) loss attributable to noncontrolling interest   (3,696)   (21,280)   4,692    647    (5,891)   (16,588)   (2,288)
Net (loss) income attributable to VNET Group, Inc.   (377,203)   82,293    (232,879)   (32,115)   (286,497)   (150,586)   (20,766)
                                    
(Loss) earnings per share                                   
Basic   (0.43)   0.09    (0.26)   (0.04)   (0.32)   (0.17)   (0.02)
Diluted   (0.43)   0.07    (0.26)   (0.04)   (0.37)   (0.19)   (0.03)
Shares used in (loss) earnings per share computation                                   
Basic*   886,204,618    888,383,240    888,705,981    888,705,981    885,915,878    888,555,145    888,555,145 
Diluted*   886,204,618    1,056,829,494    888,705,981    888,705,981    919,915,879    905,386,636    905,386,636 
                                    
(Loss) earnings per ADS (6 ordinary shares equal to 1 ADS)                                   
Basic   (2.58)   0.54    (1.56)   (0.24)   (1.92)   (1.02)   (0.12)
Diluted   (2.58)   0.42    (1.56)   (0.24)   (2.22)   (1.14)   (0.18)

 

* Shares used in (loss) earnings per share/ADS computation were computed under weighted average method.                                                        

 

6 

 

 

VNET GROUP, INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS  

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))      

 

    Three months ended     Six months ended  
    June 30, 2022     March 31, 2023     June 30, 2023     June 30, 2022     June 30, 2023  
    RMB     RMB     RMB     US$     RMB     RMB     US$  
Gross profit     357,777       352,380       342,749       47,267       713,298       695,129       95,863  
Plus: depreciation and amortization*     362,003       401,877       400,173       55,186       689,396       802,050       110,608  
Plus: share-based compensation expenses     (6,066 )     -       -       -       (4,206 )     -       -  
Adjusted cash gross profit     713,714       754,257       742,922       102,453       1,398,488       1,497,179       206,471  
Adjusted cash gross margin     41.4 %     41.8 %     40.8 %     40.8 %     41.5 %     41.3 %     41.3 %
                                                         
Operating expenses     (321,719 )     (237,145 )     (249,483 )     (34,405 )     (581,182 )     (486,628 )     (67,109 )
Plus: share-based compensation expenses     53,551       8,336       8,006       1,104       94,936       16,342       2,254  
Plus: compensation for postcombination employment in an acquisition     17,453       -       -       -       34,713       -       -  
Adjusted operating expenses     (250,715 )     (228,809 )     (241,477 )     (33,301 )     (451,533 )     (470,286 )     (64,855 )
                                                         
Operating profit     36,058       115,235       93,266       12,862       132,116       208,501       28,754  
Plus: depreciation and amortization*     385,876       432,629       433,735       59,815       735,485       866,364       119,477  
Plus: share-based compensation expenses     47,485       8,336       8,006       1,104       90,730       16,342       2,254  
Plus: compensation for postcombination employment in an acquisition     17,453       -       -       -       34,713       -       -  
Adjusted EBITDA     486,872       556,200       535,007       73,781       993,044       1,091,207       150,485  
Adjusted EBITDA margin     28.2 %     30.8 %     29.4 %     29.4 %     29.5 %     30.1 %     30.1 %

 

* Before the deduction of government grants for three months ended March 31, 2023, three months ended June 30, 2023 and six months ended June 30, 2023.                                                        

 

7 

 

 

VNET GROUP, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

   Three months ended 
   June 30, 2022   March 31, 2023   June 30, 2023 
   RMB   RMB   RMB   US$ 
CASH FLOWS FROM OPERATING ACTIVITIES                    
Net (loss) income   (373,507)   103,573    (237,571)   (32,762)
Adjustments to reconcile net (loss) income to net cash generated from operating activities:                    
     Depreciation and amortization   385,876    431,654    433,015    59,715 
     Share-based compensation expenses   47,485    8,336    8,006    1,104 
     Others   447,480    62,631    357,787    49,341 
 Changes in operating assets and liabilities                    
     Accounts and notes receivable   (137,720)   (254,293)   8,388    1,157 
     Prepaid expenses and other current assets   526,090    (378,933)   70,627    9,740 
     Accounts and notes payable   76,070    (3,377)   33,434    4,611 
     Accrued expenses and other payables   21,363    192,063    (5,950)   (820)
     Deferred revenue   19,989    24,139    (35,743)   (4,929)
     Advances from customers   70,884    405,945    (114,977)   (15,856)
     Others   (141,299)   (136,727)   (93,540)   (12,902)
Net cash generated from operating activities   942,711    455,011    423,476    58,399 
                     
CASH FLOWS FROM INVESTING ACTIVITIES                    
Purchases of property and equipment   (527,867)   (608,717)   (394,812)   (54,447)
Purchases of intangible assets   (12,690)   (2,312)   (10,178)   (1,404)
Payments for investments   (38,280)   -    (655,815)   (90,441)
Proceeds from (payments for) other investing activities   208    (90,489)   9,295    1,282 
Net cash used in investing activities   (578,629)   (701,518)   (1,051,510)   (145,010)
                     
CASH FLOWS FROM FINANCING ACTIVITIES                    
Proceeds from bank borrowings   18,860    279,916    169,204    23,334 
Repayments of bank borrowings   (43,275)   (73,070)   (55,865)   (7,704)
Repayments of 2025 Convertible Notes   -    -    (380,333)   (52,450)
Payments for finance lease   (75,145)   (84,882)   (67,172)   (9,263)
(Payments for) proceeds from other financing activities   (62,119)   395,096    285,013    39,305 
Net cash (used in) generated from financing activities   (161,679)   517,060    (49,153)   (6,778)
                     
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash   48,962    (17,205)   51,314    7,077 
Net increase (decrease) in cash, cash equivalents and restricted cash   251,365    253,348    (625,873)   (86,312)
Cash, cash equivalents and restricted cash at beginning of period   3,364,890    2,989,494    3,242,842    447,208 
Cash, cash equivalents and restricted cash at end of period   3,616,255    3,242,842    2,616,969    360,896 

 

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