Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
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, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | 21VIANET GROUP, INC. |
Entity Central Index Key | 0001508475 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Interactive Data Current | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Class A Ordinary Shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 505,253,850 |
Class B Ordinary Shares | |
Document and Entity Information | |
Entity Common Stock, Shares Outstanding | 174,649,638 |
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Current assets: | |||
Cash and cash equivalents | $ 259,772 | ¥ 1,808,483 | ¥ 2,358,556 |
Restricted cash | 68,786 | 478,873 | 265,214 |
Accounts and notes receivable (net of allowance for doubtful debt of RMB70,970 and RMB67,828 (US$9,743) as of December 31, 2018 and 2019, respectively) | 94,395 | 657,158 | 524,305 |
Short-term investments | 52,265 | 363,856 | 245,014 |
Prepaid expenses and other current assets | 232,433 | 1,618,149 | 1,159,574 |
Amounts due from related parties | 43,331 | 301,665 | 125,446 |
Total current assets | 750,982 | 5,228,184 | 4,678,109 |
Non-current assets: | |||
Property and equipment, net | 781,919 | 5,443,565 | 4,031,242 |
Intangible assets, net | 58,978 | 410,595 | 355,313 |
Land use rights, net | 33,490 | 233,154 | 147,493 |
Operating lease right-of-use assets, net | 175,474 | 1,221,616 | |
Goodwill | 142,137 | 989,530 | 989,530 |
Restricted cash | 10,029 | 69,821 | 37,251 |
Deferred tax assets | 30,074 | 209,366 | 159,441 |
Long-term investments | 24,369 | 169,653 | 544,323 |
Amounts due from related parties | 2,967 | 20,654 | 34,424 |
Other non-current assets | 39,870 | 277,568 | 173,591 |
Total non-current assets | 1,299,307 | 9,045,522 | 6,472,608 |
Total assets | 2,050,289 | 14,273,706 | 11,150,717 |
Current liabilities: | |||
Short-term bank borrowings (including short-term bank borrowings of the Consolidated VIEs without recourse to the primary beneficiaries of RMB50,000 and RMB232,323 (US$33,371) as of December 31, 2018 and 2019, respectively) | 33,684 | 234,500 | 50,000 |
Accounts and notes payable (including accounts and notes payable of the Consolidated VIEs without recourse to the primary beneficiaries of RMB258,048 and RMB211,710 (US$30,410) as of December 31, 2018 and 2019, respectively)) | 43,542 | 303,128 | 389,508 |
Accrued expenses and other payables (including accrued expenses and other payables of the Consolidated VIEs without recourse to the primary beneficiaries of RMB392,619 and RMB622,160 (US$89,368) as of December 31, 2018 and 2019, respectively) | 140,613 | 978,935 | 659,320 |
Advances from customers (including advances from customers of the Consolidated VIEs without recourse to the primary beneficiaries of RMB670,037 and RMB1,068,692 (US$153,508) as of December 31, 2018 and 2019, respectively) | 153,508 | 1,068,692 | 670,037 |
Deferred revenue (including deferred revenue of the Consolidated VIEs without recourse to the primary beneficiaries of RMB51,026 and RMB52,088 (US$7,482) as of December 31, 2018 and 2019, respectively) | 8,277 | 57,625 | 57,754 |
Income taxes payable (including income taxes payable of the Consolidated VIEs without recourse to the primary beneficiaries of RMB8,519 and RMB8,175 (US$1,174) as of December 31, 2018 and 2019, respectively) | 6,899 | 48,032 | 13,111 |
Amounts due to related parties (including amounts due to related parties of the Consolidated VIEs without recourse to the primary beneficiaries of RMB51,763 and RMB56,977 (US$8,184) as of December 31, 2018 and 2019, respectively) | 23,979 | 166,935 | 52,328 |
Current portion of long-term bank borrowings (including current portion of long-term bank borrowings of the Consolidated VIEs without recourse to the primary beneficiaries of RMB75,284 and RMB32,500 (US$4,668) as of December 31, 2018 and 2019, respectively) | 4,668 | 32,500 | 75,284 |
Current portion of finance lease liabilities (including current portion of finance lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries of RMB219,695 and RMB220,363 (US$31,653) as of December 31, 2018 and 2019, respectively) | 32,623 | 227,115 | 219,695 |
Deferred government grants (including deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries of RMB4,173 and RMB2,595 (US$373) as of December 31, 2018 and 2019, respectively) | 373 | 2,595 | 4,173 |
Current portion of bonds payable | 130,878 | 911,147 | |
Current portion of operating lease liabilities (including current portion of operating lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries of nil and RMB410,422 (US$58,953) as of December 31, 2018 and 2019, respectively) | 62,888 | 437,817 | |
Total current liabilities | 641,932 | 4,469,021 | 2,191,210 |
Non-current liabilities: | |||
Long-term bank borrowings (including long-term bank borrowings of the Consolidated VIEs without recourse to the primary beneficiaries of RMB112,000 and RMB79,500 (US$11,419) as of December 31, 2018 and 2019, respectively) | 11,419 | 79,500 | 112,000 |
Bonds payable | 296,002 | 2,060,708 | 2,037,836 |
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 RMB852,287 and RMB549,669 (US$78,955) as of December 31, 2018 and 2019, respectively) | 128,836 | 896,927 | 765,993 |
Unrecognized tax benefits (including unrecognized tax benefits of the Consolidated VIEs without recourse to the primary beneficiaries of RMB4,938 and RMB1,991 (US$286) as of December 31, 2018 and 2019, respectively) | 351 | 2,443 | 6,677 |
Deferred tax liabilities (including deferred tax liabilities of the Consolidated VIEs without recourse to the primary beneficiaries of RMB84,568 and RMB82,725 (US$11,883) as of December 31, 2018 and 2019, respectively) | 29,098 | 202,572 | 157,720 |
Deferred government grants (including deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries of RMB11,619 and RMB5,906 (US$848) as of December 31, 2018 and 2019, respectively) | 848 | 5,906 | 11,619 |
Amounts due to related parties (including amounts due to related parties of the Consolidated VIEs without resource to the primary beneficiaries of RMB504,478 and RMB745,899 (US$107,142) as of December 31, 2018 and 2019, respectively) | 107,142 | 745,899 | 504,478 |
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 nil and RMB529,546 (US$76,064) as of December 31, 2018 and 2019, respectively) | 83,183 | 579,102 | |
Total non-current liabilities | 656,879 | 4,573,057 | 3,596,323 |
Total liabilities | 1,298,811 | 9,042,078 | 5,787,533 |
Commitments and contingencies | |||
Shareholders' equity: | |||
Additional paid-in capital | 1,321,866 | 9,202,567 | 9,141,494 |
Accumulated other comprehensive income | 11,190 | 77,904 | 85,979 |
Statutory reserves | 8,687 | 60,469 | 42,403 |
Accumulated deficit | (580,078) | (4,038,390) | (3,838,032) |
Treasury stock | (50,206) | (349,523) | (337,683) |
Total 21Vianet Group, Inc. shareholders' equity | 711,466 | 4,953,073 | 5,094,207 |
Noncontrolling interest | 40,012 | 278,555 | 268,977 |
Total shareholders' equity | 751,478 | 5,231,628 | 5,363,184 |
Total liabilities and shareholders' equity | 2,050,289 | 14,273,706 | 11,150,717 |
Class A Ordinary Shares | |||
Shareholders' equity: | |||
Ordinary shares | 5 | 34 | 34 |
Class B Ordinary Shares | |||
Shareholders' equity: | |||
Ordinary shares | $ 2 | ¥ 12 | ¥ 12 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018CNY (¥)shares |
Accounts and notes receivable, allowance for doubtful accounts | $ 9,743 | ¥ 67,828 | ¥ 70,970 |
Short-term bank and other borrowings of the Consolidated VIEs without recourse to the primary beneficiaries | 33,684 | 234,500 | 50,000 |
Accounts and notes payable of the Consolidated VIEs without recourse to the primary beneficiaries | 43,542 | 303,128 | 389,508 |
Accrued expenses and other payables of the Consolidated VIEs without recourse to the primary beneficiaries | 140,613 | 978,935 | 659,320 |
Advance from customers of the Consolidated VIEs without recourse to the primary beneficiaries | 153,508 | 1,068,692 | 670,037 |
Deferred revenue of the Consolidated VIEs without recourse to the primary beneficiaries | 8,277 | 57,625 | 57,754 |
Income tax payables of the Consolidated VIEs without recourse to the primary beneficiaries | 6,899 | 48,032 | 13,111 |
Amounts due to related parties of the consolidated VIEs without resource to the primary beneficiaries | 23,979 | 166,935 | 52,328 |
Long-term bank borrowings, current portion | 4,668 | 32,500 | 75,284 |
Current portion of finance lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries. | 32,623 | 227,115 | 219,695 |
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries | 373 | 2,595 | 4,173 |
Long-term bank borrowings of the Consolidated VIEs without recourse to the primary beneficiaries | 11,419 | 79,500 | 112,000 |
Bonds payable Consolidated VIEs without recourse to the primary beneficiaries. | 296,002 | 2,060,708 | 2,037,836 |
Non-current portion of finance lease liabilities | 128,836 | 896,927 | 765,993 |
Unrecognized tax benefits of the Consolidated VIEs without recourse to the primary beneficiaries | 351 | 2,443 | 6,677 |
Deferred tax liabilities of the Consolidated VIEs without recourse to the primary beneficiaries | 29,098 | 202,572 | 157,720 |
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries | 848 | 5,906 | 11,619 |
Amounts due to related parties related parties of the consolidated VIEs without resource to the primary beneficiaries | 107,142 | 745,899 | 504,478 |
Current portion of operating lease liabilities | 62,888 | 437,817 | |
Non-current portion of operating lease liabilities | 83,183 | 579,102 | |
Variable Interest Entity, Primary Beneficiary | |||
Short-term bank and other borrowings of the Consolidated VIEs without recourse to the primary beneficiaries | 33,371 | 232,323 | 50,000 |
Accounts and notes payable of the Consolidated VIEs without recourse to the primary beneficiaries | 30,410 | 211,710 | 258,048 |
Accrued expenses and other payables of the Consolidated VIEs without recourse to the primary beneficiaries | 89,368 | 622,160 | 392,619 |
Advance from customers of the Consolidated VIEs without recourse to the primary beneficiaries | 153,508 | 1,068,692 | 670,037 |
Deferred revenue of the Consolidated VIEs without recourse to the primary beneficiaries | 7,482 | 52,088 | 51,026 |
Income tax payables of the Consolidated VIEs without recourse to the primary beneficiaries | 1,174 | 8,175 | 8,519 |
Amounts due to related parties of the consolidated VIEs without resource to the primary beneficiaries | 8,184 | 56,977 | 51,763 |
Long-term bank borrowings, current portion | 4,668 | 32,500 | 75,284 |
Current portion of finance lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries. | 31,653 | 220,363 | 219,695 |
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries | 373 | 2,595 | 4,173 |
Long-term bank borrowings of the Consolidated VIEs without recourse to the primary beneficiaries | 11,419 | 79,500 | 112,000 |
Non-current portion of finance lease liabilities | 78,955 | 549,669 | 852,287 |
Unrecognized tax benefits of the Consolidated VIEs without recourse to the primary beneficiaries | 286 | 1,991 | 4,938 |
Deferred tax liabilities of the Consolidated VIEs without recourse to the primary beneficiaries | 11,883 | 82,725 | 84,568 |
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries | 848 | 5,906 | 11,619 |
Amounts due to related parties related parties of the consolidated VIEs without resource to the primary beneficiaries | 107,142 | 745,899 | 504,478 |
Current portion of operating lease liabilities | 58,953 | 410,422 | 0 |
Non-current portion of operating lease liabilities | $ 76,064 | ¥ 529,546 | ¥ 0 |
Class A Ordinary Shares | |||
Ordinary shares, par value (in dollars per share) | $ / shares | $ 0.00001 | ||
Ordinary shares, shares authorized (in shares) | 1,200,000,000 | 1,200,000,000 | 1,200,000,000 |
Ordinary shares, shares issued (in shares) | 505,253,850 | 505,253,850 | 499,706,628 |
Ordinary shares, shares outstanding (in shares) | 505,253,850 | 505,253,850 | 499,706,628 |
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) | 174,649,638 | 174,649,638 | 174,649,638 |
Ordinary shares, shares outstanding (in shares) | 174,649,638 | 174,649,638 | 174,649,638 |
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 | 0 |
Ordinary shares, shares issued (in shares) | 60,000 | 60,000 | 0 |
Ordinary shares, shares outstanding (in shares) | 60,000 | 60,000 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Net revenues | ||||
Total net revenues | $ 544,251 | ¥ 3,788,967 | ¥ 3,401,037 | ¥ 3,392,705 |
Total cost of revenues | (409,308) | (2,849,518) | (2,456,166) | (2,634,295) |
Gross profit | 134,943 | 939,449 | 944,871 | 758,410 |
Operating income (expenses) | ||||
Operating income | 986 | 6,862 | 5,027 | 5,439 |
Sales and marketing expenses | (29,634) | (206,309) | (172,176) | (256,682) |
Research and development expenses | (12,754) | (88,792) | (92,109) | (149,143) |
General and administrative expenses | (59,651) | (415,277) | (462,637) | (519,950) |
(Allowance) reversal for doubtful debt | (224) | (1,557) | 598 | (37,427) |
Impairment of receivables from equity investees | (7,490) | (52,142) | ||
Changes in the fair value of contingent purchase consideration payables | 13,905 | (937) | ||
Impairment of long-lived assets | 0 | 0 | (401,808) | |
Impairment of goodwill | (766,440) | |||
Total operating expenses | (108,767) | (757,215) | (707,392) | (2,126,948) |
Operating (loss) profit | 26,176 | 182,234 | 237,479 | (1,368,538) |
Interest income | 7,844 | 54,607 | 45,186 | 32,925 |
Interest expense | (49,693) | (345,955) | (236,066) | (185,313) |
Impairment of long-term investment | (20,258) | |||
Gain on disposal of subsidiaries | 4,843 | 497,036 | ||
Loss on debt extinguishment | (2,714) | (18,895) | ||
Other income | 5,226 | 36,380 | 58,033 | 16,764 |
Other expenses | (809) | (5,632) | (4,103) | (17,060) |
Foreign exchange loss, net | (4,021) | (27,995) | (81,055) | (17,153) |
(Loss) income before income taxes and gain (loss) from equity method investments | (17,991) | (125,256) | 24,317 | (1,061,597) |
Income tax benefits (expenses) | (781) | (5,437) | (24,411) | 90,170 |
Gain (loss) from equity method investments | (7,261) | (50,553) | (186,642) | 53,783 |
Net loss | (26,033) | (181,246) | (186,736) | (917,644) |
Net loss (income) attributable to noncontrolling interest and redeemable noncontrolling interest | (150) | (1,046) | (18,329) | 144,914 |
Net loss attributable to the Company's ordinary shareholders | $ (26,183) | ¥ (182,292) | ¥ (205,065) | ¥ (772,730) |
Loss per share: | ||||
Basic (in per share) | (per share) | $ (0.04) | ¥ (0.27) | ¥ (0.30) | ¥ (1.36) |
Diluted (in per share) | (per share) | $ (0.04) | ¥ (0.27) | ¥ (0.30) | ¥ (1.36) |
Shares used in loss per share computation: | ||||
Weighted average number of shares outstanding - basic (in shares) | shares | 668,833,756 | 668,833,756 | 674,732,130 | 672,836,226 |
Weighted-average number of shares outstanding-diluted (in shares) | shares | 668,833,756 | 668,833,756 | 674,732,130 | 672,836,226 |
Hosting and related services | ||||
Net revenues | ||||
Total net revenues | $ 544,251 | ¥ 3,788,967 | ¥ 3,401,037 | ¥ 2,975,178 |
Total cost of revenues | (409,308) | ¥ (2,849,518) | ¥ (2,456,166) | (2,130,279) |
Operating income (expenses) | ||||
Impairment of goodwill | $ | $ 0 | |||
Managed Network Services | ||||
Net revenues | ||||
Total net revenues | 417,527 | |||
Total cost of revenues | ¥ (504,016) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||
Net loss | $ (26,033) | ¥ (181,246) | ¥ (186,736) | ¥ (917,644) |
Other comprehensive (loss) income, net of tax of nil: | ||||
Other comprehensive (loss) income, net of tax of nil | (1,160) | (8,075) | 88,652 | (120,963) |
Comprehensive loss | (27,193) | (189,321) | (98,084) | (1,038,607) |
Comprehensive loss (income) attributable to noncontrolling interest and redeemable noncontrolling interest | (150) | (1,046) | (18,329) | 144,914 |
Comprehensive loss attributable to the Company's ordinary shareholders | $ (27,343) | ¥ (190,367) | ¥ (116,413) | ¥ (893,693) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | |||
Foreign currency translation adjustments, tax | ¥ 0 | ¥ 0 | ¥ 0 |
Other comprehensive income, tax | ¥ 0 | ¥ 0 | ¥ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net loss | $ (26,033) | ¥ (181,246) | ¥ (186,736) | ¥ (917,644) |
Adjustments to reconcile net loss to net cash generated from operating activities: | ||||
Foreign exchange loss, net | 4,021 | 27,995 | 81,055 | 17,153 |
Changes in the fair value of contingent purchase consideration payables | (13,905) | 937 | ||
Gain from settlement of contingent purchase consideration | (500) | |||
Depreciation and amortization | 110,920 | 772,205 | 634,606 | 667,102 |
(Gain) loss on disposal of property and equipment and intangible assets | 39 | 271 | (7,981) | (3,285) |
Impairment of receivables from equity investees | 7,490 | 52,142 | ||
Allowance (reversal) for doubtful debt | 224 | 1,557 | (598) | 37,427 |
Share based compensation expense | 6,308 | 43,916 | 59,538 | 47,129 |
Deferred income tax benefits | (9,320) | (64,887) | (19,776) | (128,026) |
(Gain) loss from equity method investments | 7,261 | 50,553 | 186,642 | (53,783) |
Distribution received from an equity method investment | 2,902 | 20,200 | ||
Gain from disposal of equity investments without readily determinable fair value | (795) | (5,536) | (20,496) | |
Gain from disposal of equity method investment | (2,564) | (17,853) | (16,509) | |
Dividend income of equity investments without readily determinable fair values | (406) | (1,821) | ||
Gain from disposal of subsidiaries | (4,843) | (497,036) | ||
Impairment losses of long-lived assets | 0 | 0 | 401,808 | |
Impairment of goodwill | 766,440 | |||
Impairment of long-term investment | 20,258 | |||
Loss on debt extinguishment | 2,714 | 18,895 | ||
Changes in operating assets and liabilities, net of effects of acquisitions and disposals: | ||||
Accounts and notes receivable | (22,427) | (156,134) | (68,809) | 18,277 |
Prepaid expenses and other current assets | (47,148) | (328,224) | (262,445) | (311,324) |
Amounts due from related parties | 1,631 | 11,352 | (38,047) | 4,436 |
Accounts and notes payables | 1,319 | 9,185 | 41,380 | 42,468 |
Unrecognized tax benefits | (608) | (4,234) | (9,834) | (3,939) |
Accrued expenses and other payables | 11,098 | 77,275 | 77,744 | 270,082 |
Deferred revenue | (19) | (129) | 2,001 | (65,415) |
Advances from customers | 57,263 | 398,655 | 266,793 | 201,847 |
Income taxes payable | 5,016 | 34,917 | (198) | (6,548) |
Deferred government grants | 72 | 500 | (6,643) | (4,985) |
Amounts due to related parties | 868 | 6,044 | 12,933 | (14,356) |
Operating lease right-of-use assets | 5,100 | 35,503 | ||
Net cash generated from operating activities | 115,332 | 802,922 | 704,966 | 487,202 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchases of property and equipment | (179,384) | (1,248,834) | (435,220) | (395,998) |
Purchases of land use rights | (3,513) | (24,460) | ||
Purchases of intangible assets | (3,809) | (26,515) | (17,874) | (18,957) |
Proceeds from disposal of property and equipment | 357 | 2,484 | 15,429 | 5,719 |
Disposal of subsidiaries, net | 3,389 | (77,719) | ||
Payments for short-term investments | (62,733) | (436,737) | (98,905) | (755,876) |
Payment of loan to a third party | (20,000) | |||
Payment of loans to related parties | (9,581) | (66,704) | ||
Receipt of loans to third parties | 20,413 | 100,000 | ||
Proceeds received from maturity of short-term investments | 44,844 | 312,198 | 417,643 | 484,932 |
Proceeds from disposal of long-term investments | 2,722 | 18,955 | 75,653 | |
Proceeds from dividend income of equity investments without readily determinable fair values | 406 | 1,821 | ||
Payments for long-term investments | (1,340) | (9,330) | (252,780) | (162,176) |
Payments for deposit to acquire data center | (11,857) | (82,536) | (13,000) | |
Collection of deposit for acquiring data center | 4,308 | 30,000 | ||
Receipt of deposit for disposal of subsidiaries | 10,000 | |||
Payments for assets acquisition, net of cash acquired | (21,269) | (148,067) | (25,053) | |
Cash receipt from an assets acquisition | 9,705 | 67,563 | ||
Net cash used in investing activities | (231,550) | (1,611,983) | (304,846) | (833,307) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from loan from a related party | 44,038 | |||
Repayment of loan from a related party | (6,879) | (47,893) | ||
Proceeds from exercise of stock options | 62 | 429 | 435 | 926 |
Proceeds from issuance of ordinary shares | 82 | 572 | ||
Repayment of 2017 Notes | (420,600) | |||
Proceeds from issuance of 2020/2021 Notes (Note 16) | 289,018 | 2,012,084 | 1,936,154 | |
Payment of issuance cost of 2020/2021 Notes (Note 16) | (5,115) | (35,610) | (9,735) | |
Repurchase of 2020 Notes (Note 16) | (164,913) | (1,148,092) | ||
Proceeds from long-term bank borrowings | 44,440 | |||
Proceeds from short-term bank borrowings | 33,685 | 234,500 | 69,999 | 70,000 |
Repayment of long-term bank borrowings | (12,224) | (85,110) | (70,643) | (94,037) |
Repayment of short-term bank borrowings | (7,182) | (50,000) | (69,999) | (1,673,676) |
Payments for purchase of property and equipment through finance leases | (47,921) | (333,614) | (279,886) | (199,126) |
Repayment of loan from a third party | (9,719) | (67,659) | (100,000) | |
Rental prepayment and deposits for sales and leaseback transactions | (2,786) | (19,399) | (48,401) | (164,698) |
Contribution from noncontrolling interest in subsidiaries | 1,226 | 8,532 | 196,281 | 134,633 |
Prepayment for future share repurchase plan | (1,405) | (9,778) | (3,866) | |
Refund of prepayment for share repurchase plan | 42,710 | |||
Payments for share repurchase plan | (1,701) | (11,840) | (133,066) | |
Proceeds from sales and leaseback transactions | 15,801 | 110,000 | ||
Proceeds from discounted notes | 95,565 | |||
Repayment of notes payable | (13,727) | (95,565) | ||
Net cash (used in) generated from financing activities | 66,302 | 461,557 | (19,901) | (612,651) |
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash | 6,271 | 43,660 | 85,333 | (140,298) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (43,645) | (303,844) | 465,552 | (1,099,054) |
Cash and cash equivalents and restricted cash at beginning of the year | 382,232 | 2,661,021 | 2,195,469 | 3,294,523 |
Cash and cash equivalents and restricted cash at end of the year | 338,587 | 2,357,177 | 2,661,021 | 2,195,469 |
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets | ||||
Cash and cash equivalents | 259,772 | 1,808,483 | 2,358,556 | 1,949,631 |
Restricted cash-current | 68,786 | 478,873 | 265,214 | 242,494 |
Restricted cash-non-current | 10,029 | 69,821 | 37,251 | 3,344 |
Cash and cash equivalents and restricted cash at end of the year | 338,587 | 2,357,177 | 2,661,021 | 2,195,469 |
Supplemental disclosures of cash flow information: | ||||
Income taxes paid | (5,988) | (41,684) | (57,407) | (55,076) |
Interest paid | (31,011) | (215,889) | (160,984) | (96,846) |
Interest received | 8,483 | 59,054 | 50,793 | 28,857 |
Supplemental disclosures of non-cash activities: | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 88,788 | 618,126 | ||
Purchase of property and equipment through finance leases | 51,362 | 357,573 | 884,871 | 453,786 |
Purchase of property and equipment included in accrued expenses and other payables | 49,448 | 344,248 | 21,918 | (15,750) |
Purchase of intangible assets included in accrued expenses and other payables | $ (236) | ¥ (1,642) | 870 | 1,354 |
Contingent consideration related to the acquisitions included in amounts due to related parties and accrued expenses and other payables | ¥ 36,734 | ¥ (937) |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY ¥ in Thousands | Ordinary sharesUSD ($)shares | Ordinary sharesCNY (¥)shares | Treasury stockUSD ($) | Treasury stockCNY (¥) | Additional paid-in capitalUSD ($) | Additional paid-in capitalCNY (¥) | Accumulated other comprehensive (loss) incomeUSD ($) | Accumulated other comprehensive (loss) incomeCNY (¥) | Statutory reservesUSD ($) | Statutory reservesCNY (¥) | Accumulated deficitUSD ($) | Accumulated deficitCNY (¥) | Total 21Vianet Group, Inc. shareholders' equityUSD ($) | Total 21Vianet Group, Inc. shareholders' equityCNY (¥) | Non-controlling interestUSD ($) | Non-controlling interestCNY (¥) | USD ($)shares | CNY (¥)shares |
Beginning Balance (in shares) at Dec. 31, 2016 | shares | 679,857,606 | 679,857,606 | ||||||||||||||||
Beginning balance at Dec. 31, 2016 | ¥ 45 | ¥ (204,557) | ¥ 9,015,846 | ¥ 118,290 | ¥ 64,622 | ¥ (2,869,031) | ¥ 6,125,215 | ¥ 25,802 | ¥ 6,151,017 | |||||||||
Consolidated net loss | (772,730) | (772,730) | (3,018) | (775,748) | ||||||||||||||
Cumulative adjustment for changes in accounting principles | (13,425) | (13,425) | (13,425) | |||||||||||||||
Contribution from noncontrolling interest in a subsidiary | 134,633 | 134,633 | ||||||||||||||||
Foreign exchange difference | (120,963) | (120,963) | (120,963) | |||||||||||||||
Issuance of new shares for share option exercised and restricted share units vested (in shares) | shares | 3,119,052 | 3,119,052 | ||||||||||||||||
Share-based compensation | 105,532 | 105,532 | ¥ 105,532 | |||||||||||||||
Share issued to depository bank | ¥ 1 | (1) | ||||||||||||||||
Shares issued to depository bank (in shares) | shares | 9,000,000 | 9,000,000 | 9,000,000 | 9,000,000 | ||||||||||||||
Appropriation of statutory reserves | 2,083 | (2,083) | ||||||||||||||||
Appropriation of dividend | (5,946) | ¥ (5,946) | ||||||||||||||||
Disposal of subsidiaries | (27,969) | 27,969 | ||||||||||||||||
Increase in accretion of redeemable noncontrolling interests | (141,896) | (141,896) | (141,896) | |||||||||||||||
Share repurchase | (133,126) | (133,126) | ¥ (133,126) | |||||||||||||||
Share repurchase (in shares) | shares | (20,690,892) | (20,690,892) | (3,448,482) | (3,448,482) | ||||||||||||||
Share options exercised | 926 | 926 | ¥ 926 | |||||||||||||||
Share options exercised (in shares) | shares | 332,754 | 332,754 | ||||||||||||||||
Restricted share units vested(shares) | shares | 10,576,398 | 10,576,398 | ||||||||||||||||
Settlement of share options with shares held by depository bank | ¥ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Settlement of share options with shares held by depository bank (in shares) | shares | (10,909,152) | (10,909,152) | ||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2017 | shares | 671,285,766 | 671,285,766 | ||||||||||||||||
Ending balance at Dec. 31, 2017 | ¥ 46 | (337,683) | 8,980,407 | (2,673) | 38,736 | (3,629,300) | 5,049,533 | 151,471 | 5,201,004 | |||||||||
Consolidated net loss | (205,065) | (205,065) | 18,329 | (186,736) | ||||||||||||||
Foreign exchange difference | 477 | 88,652 | 89,129 | 89,129 | ||||||||||||||
Issuance of new shares for share option exercised and restricted share units vested (in shares) | shares | 3,070,500 | 3,070,500 | ||||||||||||||||
Share-based compensation | 67,009 | 67,009 | 67,009 | |||||||||||||||
Disposal of 49% interest in a subsidiary | 93,166 | 93,166 | 103,115 | ¥ 196,281 | ||||||||||||||
Shares issued to depository bank (in shares) | shares | 0 | 0 | ||||||||||||||||
Appropriation of statutory reserves | 3,667 | (3,667) | ||||||||||||||||
Disposal of subsidiaries | (3,938) | ¥ (3,938) | ||||||||||||||||
Share repurchase (in shares) | shares | 0 | 0 | ||||||||||||||||
Share options exercised | 435 | 435 | ¥ 435 | |||||||||||||||
Share options exercised (in shares) | shares | 219,972 | 219,972 | ||||||||||||||||
Restricted share units vested | ¥ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Restricted share units vested(shares) | shares | 5,115,558 | 5,115,558 | ||||||||||||||||
Settlement of share options with shares held by depository bank | ¥ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Settlement of share options with shares held by depository bank (in shares) | shares | (5,335,530) | (5,335,530) | ||||||||||||||||
Ending Balance (in shares) at Dec. 31, 2018 | shares | 674,356,266 | 674,356,266 | ||||||||||||||||
Ending 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 by noncontrolling interest | 8,532 | 8,532 | ||||||||||||||||
Foreign exchange difference | 24 | (8,075) | (8,051) | (8,051) | ||||||||||||||
Issuance of new shares | $ 60,000 | 572 | 572 | 572 | ||||||||||||||
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 | |||||||||||||||
Shares issued to depository bank (in shares) | shares | 6,700,002 | 6,700,002 | 6,700,002 | 6,700,002 | ||||||||||||||
Appropriation of statutory reserves | 18,066 | (18,066) | ||||||||||||||||
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 | ¥ 0 | 0 | 429 | 0 | 0 | 0 | 429 | 0 | ¥ 429 | |||||||||
Share options exercised (in shares) | shares | 33,869 | 33,869 | ||||||||||||||||
Restricted share units vested | ¥ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Restricted share units vested(shares) | shares | 5,136,306 | 5,136,306 | ||||||||||||||||
Settlement of share options with shares held by depository bank | ¥ 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Settlement of share options 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 | $ 7,000 | ¥ 46 | $ (50,206,000) | ¥ (349,523) | $ 1,321,866,000 | ¥ 9,202,567 | $ 11,190,000 | ¥ 77,904 | $ 8,687,000 | ¥ 60,469 | $ (580,078,000) | ¥ (4,038,390) | $ 711,466,000 | ¥ 4,953,073 | $ 40,012,000 | ¥ 278,555 | $ 751,478,000 | ¥ 5,231,628 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) | Dec. 31, 2018 | Mar. 31, 2017 |
Warburg Pincus | ||
Noncontrolling interest, ownership percentage | 49.00% | 49.00% |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2019 | |
ORGANIZATION | |
ORGANIZATION | 1. ORGANIZATION 21Vianet Group, Inc. was incorporated under the laws of the Cayman Islands on October 16, 2009 and its principal activity is investment holding. The Company through its consolidated subsidiaries and variable interest entities (the “VIEs”) are principally engaged in the provision of hosting and related services after the disposal of subsidiaries which are engaged in managed network services in September 2017 (Note 4). (a) As of December 31, 2019, the significant subsidiaries of the Company and consolidated variable interest entities are as follows: Entity Date of Place of Percentage Principal activities Direct Subsidiaries: 21ViaNet Group Limited May 25, 2007 Hong Kong % Investment holding 21Vianet Data Center Co., Ltd. (“21Vianet China”) (1) June 12, 2000 PRC % Provision of technical and consultation services and rental of long-lived assets 21Vianet (Foshan) Technology Co.,Ltd. (“FS Technology”) (1) December 20, 2011 PRC % Trading of network equipment, provision of technical and internet data center services 21Vianet Anhui Suzhou Technology Co.,Ltd. (“SZ Technology”) (1) November 16, 2011 PRC % Trading of network equipment 21Vianet Hangzhou Information Technology Co., Ltd. (“HZ Technology”) (1) March 4, 2013 PRC % Provision of internet data center services 21Vianet Mobile Limited (“21V Mobile”) April 30, 2013 Hong Kong % Investment holding and provision of telecommunication services Joytone Infotech Co., Ltd. (“SZ Zhuoaiyi”) (1) April 30, 2013 PRC % Provision of technical and consultation services 21Vianet Ventures Limited ("Ventures") March 6, 2014 Hong Kong % Investment holding Abitcool (China) Broadband Inc. (“aBitCool DG”) (1) June 13, 2014 PRC % Dormant company Diyixian.com Limited (“DYX”) August 10, 2014 Hong Kong % Provision of virtual private network services 21Vianet Zhuhai Financial Leasing Co., Ltd. (“Zhuhai Financial Leasing”) (1) April 9, 2015 PRC % Provision of finance leasing business services 21Vianet DRP Investment Holdings Limited (“DRP investment”) January 10, 2017 Hong Kong % Investment holding Entity Date of Place of Percentage Principal activities Direct Shihua DC Investment Holdings Limited (“Shihua Investment”) March 14, 2017 Cayman Islands % Investment holding 21Vianet (Xi’an) Technology Co., Ltd. July 5, 2012 PRC % Provision of technical and internet data center services Foshan Zhuoyi Intelligence Data Co., Ltd. (“FS Zhuoyi”) (1) July 7, 2017 PRC % Provision of internet data center services Beijing Hongyuan Network Technology Co., Ltd. ("BJ Hongyuan") (1) December 8, 2014 PRC % Provision of internet data center services Dermot Holdings Limited August 8, 2014 British Virgin Islands % Investment holding Shihua DC Investment Holdings 2 Limited(“Shihua Holdings 2”) (4) August 20, 2019 Cayman Islands % Investment holding Shanghai Waigaoqiao Free Trade Zone Hongming Logistics Co., Ltd. (“Hongming Logistics”) (1)/(4) August 20, 2019 PRC % Provision of internet data center services Variable Interest Entities (the “VIEs”): Beijing Yiyun Network Technology Co., Ltd. (“21Vianet Technology”) (1) /(2) October 22, 2002 PRC — Provision of internet data center services Beijing iJoy Information Technology Co., Ltd. (“BJ iJoy”) (1) / (2) April 30, 2013 PRC — Provision of internet data center, content delivery network services WiFire Network Technology (Beijing) Co., Ltd. (“WiFire Network”) (1) / (2) April 1, 2014 PRC — Provision of telecommunication services Held directly by 21Vianet Technology: Beijing 21Vianet Broad Band Data Center Co., Ltd. (“21Vianet Beijing”) (1) / (2) March 15, 2006 PRC — Provision of internet data center services Held directly by 21Vianet Beijing: 21Vianet (Xi’an) Information Outsourcing Industry Park Services Co., Ltd. June 23, 2008 PRC — Provision of internet data center services Langfang Xunchi Computer Data Processing Co., Ltd. December 19, 2011 PRC — Dormant company Shanghai Blue Cloud Technology Co., Ltd. (“SH Blue Cloud”) (1) / (2) March 21, 2013 PRC — Provision of Office 365 and Windows Azure platform services Beijing Yichengtaihe Investment Co., Ltd. September 30, 2014 PRC — Provision of internet data center services Entity Date of Place of Percentage Principal activities Direct Guangzhou Lianyun Big Data Co. Ltd.(1)/(2) April 14, 2016 PRC — Provision of internet data center services Beijing Xianghu Yunlian Technology Co., Ltd. (“Xianghu Yunlian”)(1)/(2) November 7, 2018 PRC — Provision of internet data center services Shanghai Hujiang Songlian Technology Co., Ltd.(“Hujiang Songlian”)(1)/(2) December 17, 2018 PRC — Provision of internet data center services Beijing Shuhai Hulian Technology Co., Ltd. (“BJ Shuhai”)(1)/(2) January 2, 2019 PRC — Provision of internet data center services Nantong Chenghong Cloud Computing Co., Ltd. (“NT Chenghong”) (1)/(2) December 19, 2019 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 % 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 (Note 4). (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 equity interests of 21Vianet 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: Exclusive option agreement Pursuant to the exclusive option agreement entered into amongst 21Vianet China and the Nominee Shareholders of 21Vianet 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 21Vianet Technology, when and to the extent permitted under the PRC laws, at an amount equal to RMB1. 21Vianet Technology cannot declare any profit distributions or grant loans in any form without the prior written consent of 21Vianet China. The Nominee Shareholders must remit in full any funds received from 21Vianet Technology to 21Vianet China, in the event any distributions are made by 21Vianet Technology. The term of this agreement is 10 years, expiring on December 18, 2016, which is renewable at the sole discretion of 21Vianet China. On December 19, 2016, this agreement was renewed for another 10 years, expiring on December 18, 2026. Exclusive technical consulting and service agreement Pursuant to the exclusive technical consulting and service agreement entered into between 21Vianet China and 21Vianet Technology, 21Vianet 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 21Vianet China. The term of this agreement is 10 years, expiring on December 18, 2016, which is renewable at the sole discretion of 21Vianet China. On December 19, 2016, this agreement was renewed for another 10 years, expiring on December 18, 2026. Loan agreement In January 2011, 21Vianet China and the Nominee Shareholders entered into a loan agreement. Pursuant to the agreement, 21Vianet China has provided interest-free loan facilities of RMB7,000 and RMB3,000, respectively, to the Nominee Shareholders of 21Vianet Technology for the purpose of providing capital to 21Vianet Technology to develop its data center and telecommunications value-added business and related businesses. There is no fixed term for the loan. 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 21Vianet Technology to 21Vianet 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 21Vianet 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 21Vianet Technology. The power of attorney agreement was subsequently reassigned to 21Vianet Group, Inc. in September 2010. Share pledge agreement Pursuant to the share pledge agreement entered into amongst 21Vianet China, 21Vianet Technology and the Nominee Shareholders, the Nominee Shareholders have contemporaneously pledged all their equity interests in 21Vianet Technology to guarantee the repayment of the loan under the Loan Agreement between 21Vianet 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, 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 21Vianet Technology breaches its respective contractual obligations under the Share pledge agreement and the loan agreement, 21Vianet 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 21Vianet Technology without the prior written consent of 21Vianet China. Financial support letter Pursuant to the financial support letter, 21Vianet Group, Inc. agreed to provide unlimited financial support to 21Vianet Technology for its operations and agreed to forego the right to seek repayment in the event 21Vianet Technology is unable to repay such funding. The Company also controls two other VIEs, namely BJ iJoy and WiFire Network through their primary beneficiary, aBitCool DG and SZ Zhuoaiyi, wholly owned subsidiaries of the Company. The key terms of the VIE Agreements in relation to BJ iJoy and WiFire Network are similar to those summarized above. Despite the lack of technical majority ownership, there exists a parent-subsidiary relationship between the Company and 21Vianet Technology through the irrevocable power of attorney agreement, whereby the Nominee Shareholders effectively assigned all of their voting rights underlying their equity interests in 21Vianet Technology to the Company. In addition, the Company, through 21Vianet China, obtained effective control over 21Vianet Technology through the ability to exercise all the rights of 21Vianet 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 21Vianet Technology through 21Vianet China through the consulting and service agreement. Thus, the Company is the primary beneficiary of 21Vianet Technology and consolidates 21Vianet Technology and its subsidiaries under Accounting Standards Codification (“ASC”) Subtopic 810‑10, Consolidation: Overall (“ASC 810‑10”). Similar conclusion has been reached with respect to the VIE structures with aBitCool DG and SZ Zhuoaiyi as the primary beneficiary. 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. (c) VIE disclosures Except for certain property with carrying amounts of RMB219,736 (US$31,564) that were pledged to secure banking borrowings granted to the Company (Note 13), 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. (d) Cooperation with Waburg Pincus In March 2017, the Company entered into an investment agreement with Warburg Pincus to establish a multi-stage joint venture and build a digital real estate platform in China. The Company seeded the initial JV with four existing high-performing IDC assets, and Warburg Pincus contributed direct capital and extensive industry network and resources in the real estate sector. The Company owns 51% of the equity interests in the four existing internet data center (“IDC”) assets while Warburg Pincus owns the remaining 49%. On March 14, 2017, Shihua Investment was established by the Company and a subsidiary of Warburg Pincus, with the equity interest of 51% and 49%, respectively. In March 2017, the Company and Warburg Pincus set up two joint ventures, Shihua Holdings 2 and Shihua DC Investment Management Limited (“Shihua Investment Management”) (collectively, “Shihua DC Holdings”) (Note 12), with the equity interest of 49% and 51%, respectively. The Company accounted for the investment in the two joint ventures under equity method investments for its ability to exercise significant influence. In July 2019, the Company entered into restructuring agreements with Warburg Pincus. Pursuant to the restructuring agreement, Shihua Holdings 2 transferred 100% of the equity interest in some subsidiaries at the consideration equivalent to the subsidiaries’ paid-in capital to Warburg Pincus. Thereafter, Shihua Holdings 2 repurchased and cancelled all Warburg Pincus’s shares in Shihua Holdings 2. Upon completion of restructuring on August 20, 2019, the Company became the sole shareholder in Shihua Holdings 2, which was accounted for as an asset acquisition (Note 4). The following tables represent the financial information of the Consolidated VIEs as of December 31, 2018 and 2019 and for the years ended December 31, 2017, 2018 and 2019 before eliminating the intercompany balances and transactions between the Consolidated VIEs and other entities within the Company: As of December 31, 2018 2019 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 548,921 591,503 84,964 Restricted cash 203,103 260,961 37,485 Accounts receivable (net of allowance for doubtful debt of RMB69,723 and RMB66,416 (US$9,540) as of December 31, 2018 and 2019, respectively) 375,515 513,440 73,751 Short-term investments 94,000 — — Prepaid expenses and other current assets 1,013,563 1,371,564 197,013 Amounts due from related parties 123,726 57,982 8,328 Total current assets 2,358,828 2,795,450 401,541 Non-current assets: Property and equipment, net 3,103,995 3,580,341 514,284 Intangible assets, net 47,121 151,722 21,794 Land use rights, net 60,078 58,588 8,416 Operating lease right-of-use assets, net — 1,144,846 164,447 Goodwill 302,647 302,647 43,473 Restricted cash 33,729 66,119 9,497 Deferred tax assets 156,412 180,959 25,993 Amounts due from related parties 13,514 20,654 2,967 Other non-current assets 162,392 262,685 37,732 Long-term investments 219,005 189,571 27,230 Total non-current assets 4,098,893 5,958,132 855,833 Total assets 6,457,721 8,753,582 1,257,374 Current liabilities: Short-term bank borrowings 50,000 232,323 33,371 Accounts and notes payable 258,048 211,710 30,410 Accrued expenses and other payables 392,619 622,160 89,368 Advance from customers 670,037 1,068,692 153,508 Deferred revenue 51,026 52,088 7,482 Income tax payable 8,519 8,175 1,174 Amounts due to inter-companies (1) 2,117,097 2,786,838 400,304 Amounts due to related parties 51,763 56,977 8,184 Current portion of finance lease liabilities 219,695 220,363 31,653 Current portion of long-term bank borrowings 75,284 32,500 4,668 Deferred government grants 4,173 2,595 373 Current portion of operating lease liabilities — 410,422 58,953 Total current liabilities 3,898,261 819,448 As of December 31, 2018 2019 RMB RMB US$ Non-current liabilities: Amounts due to inter-companies (1) 1,020,972 1,020,972 146,653 Amounts due to related parties 504,478 745,899 107,142 Long-term bank borrowings 112,000 79,500 11,419 Non-current portion of finance lease liabilities 852,287 549,669 78,955 Unrecognized tax benefits 4,938 1,991 286 Deferred tax liabilities 84,568 82,725 11,883 Deferred government grants 11,619 5,906 848 Non-current portion of operating lease liabilities — 529,546 76,064 Total non-current liabilities 2,590,862 3,016,208 433,250 Total liabilities 6,489,123 8,721,051 1,252,698 For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net revenues 2,578,893 2,532,854 2,858,176 410,551 Net (loss) profit (567,395) 52,986 111,592 16,029 For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net cash generated from operating activities 448,051 693,620 495,308 71,147 Net cash (used in) generated from investing activities (604,507) 132,522 (1,247,764) (179,230) Net cash generated from (used in) financing activities 230,921 (423,467) 885,286 127,163 Net increase in cash and cash equivalents and restricted cash 74,465 402,705 132,830 19,080 (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, 2019 | |
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, estimating the useful lives of long-lived assets, determining the fair value of equity investments, accounting for investments and the subsequent impairment assessment, determining the provision for accounts and other receivables, determining the valuation allowance for deferred tax assets, accounting for share-based compensation arrangements, goodwill and long-lived assets impairment assessment, measurement of right-of-use assets and lease liabilities and determining the standalone lease price. Changes in facts and circumstances may result in revised estimates. 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$”), whereas the functional currency of the Company’s PRC subsidiaries and its Consolidated VIEs is the Chinese Renminbi (“RMB”) as determined based on the criteria of ASC Topic 830, Foreign Currency Matters (“ASC 830”). The Company uses the RMB as its reporting currency. The financial statements of the Company and its overseas subsidiaries are translated from the functional currency to the reporting currency, RMB. Transactions denominated in foreign currencies are re-measured into the functional currency at the exchange rates prevailing on the transaction dates. Monetary assets and liabilities denominated in foreign currencies are re-measured at the exchange rates prevailing at the balance sheet date. Non-monetary items that are measured in terms of historical costs in foreign currency are re-measured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are included in the consolidated statements of operations. The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in accumulated other comprehensive income (loss) within the statements of comprehensive loss. (e) Convenience translation Amounts in US$ are presented for the convenience of the reader and are translated at the noon buying rate of US$1.00 to RMB6.9618 on December 31, 2019, the last business day in fiscal year 2019, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ at such rate or at any other rate. (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 Company adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, effective January 1, 2018 using the retrospective transition method and included all restricted cash with cash and cash equivalent when reconciling beginning-of-period and end-of-period total amounts presented in the consolidated statements of cash flows. (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 Accounts receivable are carried at net realizable value. An allowance for doubtful debt is recorded in the period when loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging and other factors. An accounts receivable is written off after all collection effort has ceased. (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. (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 (“ASC 350‑40”), amounting to RMB9,238, RMB6,093, and RMB13,189 (US$1,894) for the years ended December 31, 2017, 2018 and 2019, respectively. The Company capitalizes certain costs relating to software acquired, developed, or modified solely to meet the Company’s internal requirements and for which there are no substantive plans to market the software. These costs mainly include the research staff costs directly associated with the internal-develop software projects during the application development stage. Capitalized internal-use software costs are included in “intangible assets, net”. Intangible assets have weighted average useful lives from the date of purchase/ acquisition as follows: Purchased software 5.1 years Radio spectrum license 15 years Operating permits* 31.9 years Contract backlog* 4.9 years Customer relationships* 8.8 years Licenses* 15 years Supplier relationships* 10 years Trade Names* 20 years Platform software* 5 years Non-complete agreements* 5 years Internal use software 4 years * (l) Leases Effective January 1, 2019, the Company adopted ASC Topic 842, Lease ("ASC 842") using the modified retrospective method and did not restate the comparable periods. The Company determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. The Company's leases do not contain any material residual value guarantees or material restrictive covenants. 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 sheet. 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. (n) Long-term investments The Company’s long-term investments consist of equity investments without readily determinable fair value, equity method investments and available-for-sale debt investments. Prior to adopting ASC Topic 321, Investments—Equity Securities (“ASC 321”) on January 1, 2018, the Company carries at cost its investments in investees that do not have readily determinable fair value and over which the Company does not have significant influence, in accordance with ASC Subtopic 325‑20, Investments-Other: Cost Method Investments (“ASC 325‑20”). The Company only adjusts the carrying value of such investments for other-than-temporary decline in fair value and for distribution of earnings that exceed the Company’s share of earnings since its investment. Management regularly evaluates the impairment of equity investments without readily determinable fair value based on the performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss is recognized in earnings equal to the excess of the investment’s cost over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of the investment. The Company adopted ASC 321 on January 1, 2018 and the cumulative effect of adopting the new standard on opening retained deficit is nil. Pursuant to ASC 321, equity investments, except for those accounted for under the equity method and those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Company elected to use the measurement alternative to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. Equity securities with readily determinable fair value are measured at fair values, and any changes in fair value are recognized in earnings. Pursuant to ASC 321, 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. Available-for-sale debt investments are convertible debt instruments issued by private companies, which are measured at fair value, with unrealized gains or losses recorded in accumulated other comprehensive income. 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 (“ASC 323‑10”). The Company applies the equity method of accounting that is consistent with ASC 323‑10 in limited partnerships in which the Company holds a three percent or greater interest. Under the equity method, the Company initially records its investment at cost and prospectively recognizes its proportionate share of each equity investee’s net profit or loss into its consolidated statements of operations. The difference between the cost of the equity investee and the amount of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill included in equity method investments on the consolidated balance sheets. The Company evaluates its equity method investments for impairment under ASC 323‑10. An impairment loss on the equity method investments is recognized in the consolidated statements of operations when the decline in value is determined to be other-than-temporary. (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. In accordance with ASC Topic 350, Goodwill and Other Intangible Assets (“ASC 350”), recorded goodwill amounts are not amortized, but rather are tested for impairment annually or more frequently if there are indicators of impairment present. In accordance with ASC 350, the Company assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. In 2017, there were two reporting units consisting of two service lines namely hosting and related services and managed network services. The goodwill was reassigned to the two reporting units using a relative fair value allocation approach. After the disposal of WiFire Entities and Aipu Group as defined in Note 4 in September 2017, the Company determined that there is only hosting and related services remained and hence the Company as a whole is one reporting unit as of December 31, 2018 and 2019. The Company early adopted ASU No. 2017‑04, Simplifying the Test for Goodwill Impairment (“ASU 2017‑04”), which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. Fair value is primarily determined by computing the future discounted cash flows expected to be generated by the reporting unit. Immediately before the disposal of WiFire Entities and Aipu Group in September 2017, the Company completed its impairment test for goodwill in managed network services. The Company determined the fair value of the reporting unit using the income approach based on the discounted expected cash flows associated with the reporting unit. The discounted cash flows for the reporting unit were based on five-year projections. Cash flow projections were based on past experience, actual operating results and management best estimates about future developments as well as certain market assumptions. Cash flows after five years were estimated using a terminal value calculation, which considered terminal value growth at 3%, considering the long-term revenue growth for entities in a similar industry in the PRC. The discount rate of approximately 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. The resulting fair value of the reporting unit significant lower than its carrying value, the Company fully impaired goodwill in managed network services and recorded an amount of RMB766 million for impairment loss of goodwill as of December 31, 2017. Pursuant to ASC 350, in 2018 and 2019, the Company performed a qualitative assessment for hosting and related services and completed its annual impairment test for goodwill that has arisen out of its acquisitions. The Company evaluated all relevant factors including, but not limited to, macroeconomic conditions, industry and market conditions, financial performance, and the share price of the Company. The Company weighed all factors in their entirety and concluded that it was not more-likely-than-not the fair value was less than the carrying amount of the reporting unit, and further impairment testing on goodwill was unnecessary. No impairment loss of goodwill in hosting and related services was recognized for the years ended December 31, 2018 and 2019. (p) Impairment of long-lived assets The Company evaluates its long-lived assets or asset group, including intangible assets with finite lives, for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates for impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available for the long-lived assets. As of December 31, 2017, due to continued operational losses, the Company recorded the long-lived assets impairment amounting to RMB170,695 and RMB231,113 for the asset groups of Aipu Group and WiFire Entities, respectively, resulting from excess of the carrying amount of the asset groups over their fair values of the two asset groups, respectively. The Company determined the fair value of the asset groups using the income approach based on the discounted expected cash flows associated with the respective asset groups. The discounted cash flows for the asset groups were based on seven year projections for Aipu and five years for WiFire Entities, which are consistent with the remaining useful lives of its principal assets. Cash flow projections were based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The discount rate of approximately 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. No impairment was recognized in other assets groups as there was no impairment indicator identified. The impairment loss reduced the carrying amount of the long-lived assets of a group on a pro-rata basis using the relative carrying amount of those assets. In 2018 and 2019, the Company performed a qualitative assessment for impairment on whether events or changes in circumstances indicate that the carrying amount of an asset or a group of long-lived assets might not be recoverable. No impairment was recognized for the year ended December 31, 2018 and 2019 as there was no impairment indicator identified. The Company recorded impairment charges associated with its long-lived assets and acquired intangibles as follows: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Impairment of equipment 237,956 — — — Impairment of intangible assets 163,852 — — — (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 bank borrowings, available-for-sale investments, liability classified restricted share units (“RSU”). Other than the bonds payable and long-term bank borrowings, the carrying values of these financial instruments approximate their fair values due to their short-term maturities. The carrying amounts of bonds payable and long-term bank borrowings approximate their fair values since they bear interest rates which approximate market interest rates. (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. On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (“ASC 606”), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition (“ASC 605”), using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts have not been adjusted and continue to be reported in accordance with historic accounting under ASC 605. The impact of adopting the new revenue standard was not material to consolidated financial statements and there was no adjustment to beginning retained earnings on January 1, 2018. Under ASC 606, an entity recognizes revenue as the Company 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 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. 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 establish pricing and controls the promised service before transferring that service to customers. Otherwise, the Company records revenue at the net amounts as commissions. The Company’s revenue recognition policies effective on the adoption date of ASC 606 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. 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. 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. Cloud services allow businesses to run their applications over the internet using the IT infrastructure. Revenue from Cloud services consisted of incentive revenue from Microsoft upon completion of certain conditions and a fixed percentage amount based on gross sales price generated from Cloud services provided to end customers. Cloud services are generally provided to end customers for a fixed amount over the contract period and the related revenues are recognized on a straight-line basis over the contract period. For certain contracts where considerations are based on the usage of the cloud resources, the related revenues are recognized based on the consumption at the predetermined rate as the services are rendered throughout the contract term. The Company records revenue for Cloud service on a net basis. 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, 2018 and 2019, the Company has deferred revenue amounting up to RMB57,754 and RMB57,625 (US$8,277), respectively. Revenue recognized from opening deferred revenue balance was RMB46,996 (US$6,751) for the year ended December 31, 2019. 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 RMB7,773, RMB7,968 and RMB6,095 (US$875) for the years ended December 31, 2017, 2018 and 2019, 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. (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 are 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 statemen |
CONCENTRATION OF RISKS
CONCENTRATION OF RISKS | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 and 2019, the aggregate amount of cash and cash equivalents, restricted cash and short-term investments of RMB1,131,588 and RMB1,171,075 (US$168,214), respectively, were held at major financial institutions located in the PRC, and US$258,083 and US$222,638 (RMB1,549,958), 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) Business Risk—Third parties may develop technological or business model innovations that address data center and network requirements in a manner that is, or is perceived to be, equivalent or superior to the Company’s services. If competitors introduce services that compete with, or surpass the quality, price or performance of the Company’s services, the Company may be unable to renew its agreements with existing customers or attract new customers at the prices and levels that allow the Company to generate reasonable rates of return on its investment. (ii) Supplier Risk—The Company’s operations are dependent upon bandwidth and cabinet capacity provided by the third-party telecom carriers. There can be no assurance that the Company will be able to secure the cabinet and bandwidth supply from the third-party telecom carriers, neither the Company is adequately prepared for unexpected increases in bandwidth demands by its customers. The communications capacity the Company has leased, include cabinet and bandwidth, may become unavailable for a variety of reasons, such as physical interruption, technical difficulties, contractual disputes, or the financial health of its third-party providers. Any failure of these network providers to provide the capacity the Company requires may result in a reduction in, or interruption of, service to its customers. A significant portion of the Company’s total bandwidth and cabinet resources are purchased from its five largest suppliers, who collectively accounted for 21%, 19% and 21% of the Company’s total bandwidth and cabinet resources for the years ended December 31, 2017, 2018 and 2019, respectively. (iii) Customer Risk—The success of the Company’s business going forward will rely in part on Group’s ability to continue to obtain and expand business from existing customers while also attracting new customers. The Company has a diversified base of customers covering its services and the revenue from the largest single entity customer accounted for less than 8% of the Company’s total net revenues in the year ended December 31, 2019. Certain customers are local subsidiaries of a telecommunication carrier in China, which the Company views as separate customers as it negotiates with, maintain and support each of these entities given that each of them has the separate decision-making authority and services procurement budget. None of these customers on a stand-alone basis contributed more than 3% of the Company’s revenues in any given year but in the aggregate, they contributed approximately 2%, 4% and 4% of the Company’s total revenues for the years ended December 31, 2017, 2018 and 2019, respectively. (iv) Political, economic and social uncertainties—The Company’s operations could be adversely affected by significant political, economic and social uncertainties in the PRC. Although the PRC government has been pursuing economic reform policies for more than 20 years, no assurance can be given that the PRC government will continue to pursue such policies or that such policies may not be significantly altered, especially in the event of a change in leadership, social or political disruption or unforeseen circumstances affecting the PRC political, economic and social conditions. There is also no guarantee that the PRC government’s pursuit of economic reforms will be consistent or effective. (v) Regulatory restrictions—The applicable PRC laws, rules and regulations currently prohibit foreign ownership of companies that provide internet related services, including hosting and related services. Accordingly, the Company’s subsidiary, 21Vianet China, is currently ineligible to apply for the required licenses for providing IDC services in China. As a result, the Company operates its IDC services in the PRC through its Consolidated VIEs which holds the licenses and permits required to provide IDC services in the PRC. The PRC Government may also choose at anytime to block access to certain website operators which could also materially impact the Company’s ability to generate revenue. (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 (appreciation) depreciation of the RMB against US$ was approximately (5.8)%, 5.0% and 1.6% in the years ended December 31, 2017, 2018 and 2019, 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, 2019 | |
ACQUISITION AND DISPOSAL OF SUBSIDIARIES | |
ACQUISITION AND DISPOSAL OF SUBSIDIARIES | 4. ACQUISITION AND DISPOSAL OF SUBSIDIARIES Acquisitions in 2019 BJ Shuhai On January 2, 2019, the Company through its subsidiary, 21Vianet Beijing acquired 100% equity interests in BJ Shuhai at a total cash consideration of RMB98,255 (US$14,113) 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 with the acquired property. As BJ Shuhai 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. As of December 31, 2019, the condition of the last payment of the total consideration was not yet met. RMB30,000 (US$4,309) in relation to the last payment was considered as a contingent consideration. The carrying amounts of the net identifiable assets of BJ Shuhai were as follows: RMB US$ Net assets acquired: Operating permits (Note 9) 100,380 14,419 Cash and cash equivalents 59 8 Other current assets 9,625 1,383 Right-of-use assets 129,937 18,664 Other current liabilities (16,714) (2,401) Lease liabilities (129,937) (18,664) Deferred tax liabilities (25,095) (3,605) Total consideration in cash 68,255 9,804 Shihua Holdings 2 In March 2017, the Company and Warburg Pincus set up a joint venture, Shihua Holdings 2, with the equity interest of 49% and 51%, respectively (Note 12). The Company accounted for the investment in the joint venture under equity method investments for its ability to exercise significant influence. In July 2019, the Company entered into restructuring agreements with Warburg Pincus and the transaction. Pursuant to the restructuring agreement, Shihua Holdings 2 transferred 100% of the equity interest in some subsidiaries at the consideration equivalent to the subsidiaries’ paid-in capital to Warburg Pincus’s wholly owned subsidiaries, Marble SH and Marble Holdings. Thereafter, Shihua Holdings 2 repurchased and cancelled all Warburg Pincus’s shares in Shihua Holdings 2. Upon completion of restructuring on August 20, 2019, the Company became the sole shareholder in Shihua Holdings 2, including its wholly owned subsidiary, Hongming Logistics. As Shihua Holdings 2 and its subsidiaries 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. The carrying amounts of the net identifiable assets of Shihua Holdings 2 at the acquisition date were as follows: RMB US$ Net assets acquired: Property and land use right 150,880 21,672 Construction-in-progress 465 67 Cash and cash equivalents 67,563 9,705 Other current assets 1,333,329 191,521 Other current liabilities (1,203,894) (172,929) Deferred tax liabilities (33,096) (4,754) Total consideration* 315,247 45,282 * NT Chenghong On December 24, 2019, the Company through its subsidiary, 21Vianet Beijing acquired 100% equity interests in NT Chenghong with total cash consideration of RMB80,000 (US$11,491). The purpose of this transaction for the Company is to acquire the property to establish a new data center. As NT Chenghong does not possess all the elements that are necessary to conduct normal operations as a business and had not yet commenced operations, such acquisition is accounted for as an acquisition of assets. The carrying amounts of the net identifiable assets of NT Chenghong at the acquisition date were as follows: RMB US$ Net assets acquired: Construction-in-progress 158,471 22,763 Equipment 13 2 Cash and cash equivalents 129 18 Other current assets 11,840 1,701 Other current liabilities (88,830) (12,760) Deferred tax liabilities (1,623) (233) Total consideration in cash 80,000 11,491 Disposals in 2017 In September 2017, six wholly-owned subsidiaries engaged in CDN, hosting area network services and route optimization businesses, namely Guangzhou Gehua Network Technology Development Co., Ltd., CYSD, Zhiboxintong (Beijing) Network Technology Co., Ltd., WiFire BJ, BJ Fastweb and SH Guotong (collectively, the "Wifire Entities") and Sichuan Aipu Network Co., Ltd. (“SC Aipu”) and its affiliates (collectively, the “Aipu Group”), which are engaged in the last-mile broadband business, were deconsolidated by the Company. Disposal of WiFire Entities In September 2017, the Company transferred 66.67% of the equity interest in the WiFire Entities for a nominal consideration of RMB6 yuan for each of the WiFire Entities to Beijing TUS Yuanchuang Technology Development Co., Ltd., a wholly-owned subsidiary of Tus-Holdings, the controlling shareholder of the Company. Upon completion of disposal, the Company accounted for the remaining 33.33% of equity interest in the WiFire Entities as equity method investments under ASC 323‑10 for its ability to exercise significant influence in the WiFire Entities. Disposal of Aipu Group In September 2017, the Company transferred two shares in SC Aipu to Mr. Jian Li, the Co-CEO and a director of SC Aipu, for a nominal consideration of RMB1 yuan. Immediately after the disposal, the Company’s ownership in SC Aipu changed from 50% equity interest plus one share to 50% equity interest minus one share and lost control. The Company accounted for the remaining equity interest as equity method investment for its ability to exercise significant influence in the Aipu Group. Subsequently in December 2017, the Company transferred all the remaining 50% equity interest minus one share in SC Aipu to Tibet Xingtao Culture Communications Co., Ltd., one of SC Aipu’s shareholders, for a nominal consideration of RMB1 yuan. In addition to the impairment losses for long-lived assets and goodwill of RMB401,808 and RMB766,440, respectively, recognized in relation to Wifire Entities and Aipu Group before the disposal, the Company recognized a gain on disposal of WiFire Entities and Aipu Group of RMB497,036 for the year ended December 31, 2017. |
ACCOUNTS AND NOTES RECEIVABLE,
ACCOUNTS AND NOTES RECEIVABLE, NET | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 2019 RMB RMB US$ Accounts receivable 592,669 722,840 103,830 Notes receivable 2,606 2,146 308 Allowance for doubtful debt (70,970) (67,828) (9,743) 524,305 657,158 94,395 As of December 31, 2018 and 2019, 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, 2018 2019 RMB RMB US$ Balance at beginning of the year 73,656 70,970 10,194 Additional provision charged to expense 315 485 70 Write-off of accounts receivable (3,001) (3,627) (521) Balance at the end of the year 70,970 67,828 9,743 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
SHORT-TERM INVESTMENTS | |
SHORT-TERM INVESTMENTS | 6. SHORT-TERM INVESTMENTS Short-term investments consisted of the following as of December 31, 2018 and 2019: As of December 31, 2018 2019 RMB RMB US$ Time deposits 245,014 363,856 52,265 The Company recorded interest income related to its short-term investments amounting to RMB4,021, RMB7,303 and RMB8,687 (US$1,248) for the years ended December 31, 2017, 2018 and 2019, respectively, in the consolidated statements of operations. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of December 31, 2018 2019 RMB RMB US$ Prepaid expenses 565,710 878,155 126,139 Tax recoverables 421,654 570,913 82,007 Staff advances 10,730 1,866 268 Interest receivables 12,037 14,359 2,063 Deposits 39,971 17,391 2,498 Loan to third parties 58,909 73,557 10,565 Others 50,563 61,908 8,893 1,159,574 232,433 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, 2019 | |
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, 2018 2019 RMB RMB US$ At cost: Property 753,319 899,609 129,221 Leasehold improvements 932,896 1,458,749 209,536 Computer and network equipment 3,260,336 3,539,709 508,447 Optical fibers 142,723 142,723 20,501 Office equipment 24,390 22,102 3,175 Motor vehicles 1,841 2,308 331 5,115,505 6,065,200 871,211 Less: Accumulated depreciation (1,870,640) (2,514,800) (361,228) 3,244,865 3,550,400 509,983 Construction-in-progress 786,377 1,893,165 271,936 4,031,242 5,443,565 781,919 Depreciation expense was RMB523,500, RMB566,491 and RMB696,528 (US$100,050) for the years ended December 31, 2017, 2018 and 2019, respectively, and were included in the following captions: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Cost of revenues 458,655 520,791 644,108 92,520 Sales and marketing expenses 3,188 986 2,107 303 General and administrative expenses 41,675 28,727 30,110 4,325 Research and development expenses 19,982 15,987 20,203 2,902 523,500 566,491 696,528 100,050 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, 2018 2019 RMB RMB US$ Property 365,353 365,353 52,480 Computer and network equipment 719,676 639,311 91,831 Optical fibers 142,723 142,723 20,501 1,227,752 1,147,387 164,812 Less: Accumulated depreciation (291,579) (408,196) (58,634) 936,173 739,191 106,178 Construction-in-progress 576,022 659,014 94,661 1,512,195 1,398,205 200,839 Depreciation of property, computer and network equipment and optical fibers under finance leases was RMB92,920, RMB170,264 and RMB216,664 (US$31,122) for the years ended December 31, 2017, 2018 and 2019, respectively. The carrying amounts of property and equipment pledged by the Company to secure banking borrowings (Note 13) granted to the Company at the respective balance sheet dates were as follows: As of December 31, 2018 2019 RMB RMB US$ Property 140,393 137,585 19,763 Leasehold improvements 71,337 66,162 9,504 Computer and network equipment 74,822 — — Office equipment 44 — — |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2019 | |
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 Contract Customer Supplier Trade Platform Non-compete use software license Permits backlog relationships Licenses relationships names software agreements software Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Intangible assets, net January 1, 2018 50,629 77,141 — 11,750 137,882 4,268 20,144 96,404 683 154 2,060 401,115 Additions 18,744 — — — — — — — — — 6,093 24,837 Disposals (6,772) — — — — — — — — — — (6,772) Foreign currency translation difference 364 3,884 — — — — — — — — — 4,248 Amortization expense (15,711) (8,117) — (6,588) (24,921) (385) (3,074) (5,813) (683) (110) (2,713) (68,115) Intangible assets, net December 31, 2018 47,254 72,908 — 5,162 112,961 3,883 17,070 90,591 — 44 5,440 355,313 Additions 11,128 — 100,380 — — — — — — — 13,189 124,697 Foreign currency translation difference 413 1,200 — — — — — — — — — 1,613 Amortization expense (16,068) (8,985) (3,136) (5,162) (24,921) (385) (3,074) (5,813) — (44) (3,440) (71,028) Intangible assets, net December 31, 2019 42,727 65,123 97,244 — 88,040 3,498 13,996 84,778 — — 15,189 410,595 Intangible assets, net December 31, 2019 (US$) 6,137 9,354 13,968 — 12,646 503 2,010 12,178 — — 2,182 58,978 Contract backlog relate to the order placed by the customers that have yet to be delivered at the acquisition date. 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. Operating permits relate to the government authorized high-capacity utilities in the assets acquisition of BJ Shuhai (Note 4). 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 32 years. Amortization expenses were approximately RMB143,602, RMB68,115 and RMB71,028 (US$10,203) for the years ended December 31, 2017, 2018 and 2019, respectively. The annual estimated amortization expenses for the intangible assets for each of the next five years are as follows: RMB US$ 2020 59,115 8,491 2021 55,400 7,958 2022 50,005 7,183 2023 34,274 4,923 2024 13,820 1,985 212,614 30,540 |
LAND USE RIGHTS, NET
LAND USE RIGHTS, NET | 12 Months Ended |
Dec. 31, 2019 | |
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, 2018 2019 RMB RMB US$ Cost 159,494 249,804 35,882 Accumulated amortization (12,001) (16,650) (2,392) Land use rights, net 147,493 233,154 33,490 The carrying amounts of land use rights pledged by the Company to secure banking borrowings (Note 13) granted to the Company at the respective balance sheet dates were as follows: As of December 31, 2018 2019 RMB RMB US$ Land use rights 16,403 15,989 2,297 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL | |
GOODWILL | 11. GOODWILL The changes in the carrying amount of goodwill were as follows: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Balance as of January 1 1,755,970 989,530 989,530 142,137 Impairment (766,440) — — — Balance as of December 31 989,530 989,530 989,530 142,137 In September 2017, goodwill included in managed network services reporting unit was fully impaired immediately before disposal of WiFire Entities and Aipu Group. As of December 31, 2017, no impairment loss of goodwill in hosting and related services was recorded. As of December 31, 2018 and 2019, the Company has performed a qualitative assessment for hosting and related services and no impairment loss was recorded for this year. |
LONG-TERM INVESTMENTS
LONG-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
LONG-TERM INVESTMENTS | |
LONG-TERM INVESTMENTS | 12. LONG-TERM INVESTMENTS The Company’s long-term investments consisted of the following: As of December 31, 2018 2019 RMB RMB US$ Equity investments without readily determinable fair values 51,410 43,824 6,295 Equity method investments 490,376 124,116 17,828 Available-for-sale debt investments 2,537 1,713 246 544,323 24,369 Equity investments without readily determinable fair values The Company disposed equity investments without readily determinable fair value at a consideration of RMB26,653 and RMB13,122 (US$1,885) in 2018 and 2019, respectively. The investment income comprised of dividend income of RMB406 and RMB461 (US$66), and disposal gain of RMB20,496 and RMB5,536 (US$795) for the years ended December 31, 2018 and 2019, respectively. The Company recorded an impairment loss of long-term investment amounting RMB20,258, nil and nil for the years ended December 31, 2017, 2018 and 2019, respectively. Equity method investments: Increase (decrease) during the year ended As of December 31, 2017 December 31, 2018 As of December 31, 2018 Share Investments Share Investments Investments Cost of equity in equity Cost of Share Derecognize of Cost of equity gain in equity in equity investments gain (loss) investee investments equity loss share equity loss investments (loss) investee investee RMB RMB RMB RMB RMB RMB RMB RMB RMB US$ Yizhuang Fund 101,000 176,036 277,036 — (150,355) — 101,000 25,681 126,681 18,425 Unis Tech 49,000 (12,961) 36,039 (49,000) (3,548) 16,509 — — — — Shihua DC Holdings 147,176 (9,429) 137,747 219,447 (24,229) — 366,623 (33,658) 332,965 48,428 Jingliang Inter Cloud — — — 6,000 (34) — 6,000 (34) 5,966 868 Jingliang Century Cloud — — — 4,000 — — 4,000 — 4,000 582 Huaye Cloud — — — 23,333 (6,319) — 23,333 (6,319) 17,014 2,474 ZJK Energy — — — 5,907 (2,157) — 5,907 (2,157) 3,750 545 WiFire Entities 15,000 (15,000) — — — — 15,000 (15,000) — — 312,176 138,646 450,822 209,687 (186,642) 16,509 521,863 (31,487) 490,376 71,322 Increase (decrease) during the year ended As of December 31, 2018 December 31, 2019 As of December 31, 2019 Share Investments Share Distribution/derecognize Share Investments Investments Cost of equity in equity Cost of equity gain of share Cost of equity gain in equity in equity investments gain (loss) investee investments (loss) equity (gain) loss investments (loss) investee investee RMB RMB RMB RMB RMB RMB RMB RMB RMB US$ Yizhuang Fund 101,000 25,681 126,681 — 1,671 (20,200) 101,000 7,152 108,152 15,535 Shihua DC Holdings 366,623 (33,658) 332,965 (337,555) (17,718) 22,308 29,068 (29,068) — — Jingliang Inter Cloud 6,000 (34) 5,966 — (1,894) — 6,000 (1,928) 4,072 585 Jingliang Century Cloud 4,000 — 4,000 — — — 4,000 — 4,000 575 Huaye Cloud 23,333 (6,319) 17,014 (23,333) (11,534) 17,853 — — — — ZJK Energy 5,907 (2,157) 3,750 — 212 — 5,907 (1,945) 3,962 569 WiFire Entities 15,000 (15,000) — 5,000 (5,000) — 20,000 (20,000) — — Qidi Chengxin — — — 3,930 — — 3,930 — 3,930 564 521,863 (31,487) 490,376 (351,958) (34,263) 19,961 169,905 (45,789) 124,116 17,828 In April 2012, the Company through its subsidiary, 21Vianet Beijing, entered into an agreement to invest in the Yizhuang Venture Investment Fund (“Yizhuang Fund”) as a limited partner with an amount of RMB50,500. In December 2013, the Company made the second tranche of investment of another amount of RMB50,500 in the Yizhuang Fund, and held 27.694% of the investee as of December 31, 2017, 2018 and 2019. 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 (“ASC 323‑10”). In December 2019, the Company received distribution from Yizhuang Fund as return on investments with an amount of RMB20,200 (US$2,902). In June 2016, the Company through its subsidiary, 21Vianet Beijing, and a related company jointly set up Unisplendour-Vianet Technology Inc. (“Unis Tech”). The Company injected capital of RMB49,000 to acquire 49% of equity interest in Unis Tech with the ability to exercise significant influence. In March 2018, the Company disposed all its equity interests in the Unis Tech with a total cash consideration of RMB49,000 and recognized investment loss with an amount of RMB3,548 and disposal gain with an amount of RMB16,509. In March 2017, the Company through its subsidiary, 21Vianet HK, and Warburg Pincus jointly set up two JVs, Shihua Holdings 2 and Shihua Investment Management (collectively, "Shihua DC Holdings”). The Company injected capital of RMB133,639 and RMB13,537 to acquire 49% of equity interest in Shihua Holdings 2 and Shihua Investment Management, respectively. In the year of 2018, the Company increased the capital injection with the amount of RMB203,916 and RMB15,531 in Shihua Holdings 2 and Shihua Investment Management, respectively. In July 2019, the Company entered into restructuring agreements with Warburg Pincus. Pursuant to the restructuring agreements, Shihua Holdings 2 repurchased and cancelled Warburg Pincus's share in Shihua Holdings 2. Upon completion of restructuring on August 20, 2019, Shihua Holdings 2 became a wholly-owned subsidiary of the Company (Note 4), thus RMB337,555 (US$48,487) and RMB22,308 (US$3,204) of cost of investment and accumulative share equity loss in Shihua Holdings 2 were derecognized as of December 31,2019. Pursuant to the restructuring agreements, the Company and Warburg Pincus would inject additional capital on pro-rata basis to liquidate and terminate Shihua Investment Management. Therefore, the Company recognized additional share equity loss in Shihua Investment Management with an amount of RMB16,290 (US$2,340) as of December 31, 2019. 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 of RMB6 yuan at the disposal date. In December 2017, the Company injected capital of RMB15,000 in the WiFire Entities pursuant to the sale and purchase agreement. In 2019, the Company increased capital injection of RMB5,000 (US$716) in the WiFire Entities. As of December 31, 2019, 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, 21Vianet 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 March 2018, the Company through its subsidiary, 21Vianet Beijing, acquired 50% equity interest in Guangdong Huaye Cloud Inc. (“Huaye Cloud”) with an amount of RMB23,333, with the ability to exercise significant influence. In November 2019, the Company disposed all its equity interest in Huaye Cloud with a total cash consideration of RMB23,333(US$3,352) and recognized investment loss with an amount of RMB17,853(US$2,564) and disposal gain with an amount of RMB17,853(US$2,564). In December 2019, the Company through its subsidiary, 21Vianet Beijing, and a third company jointly set up Chengdu Qidi Chengxin Education Limit ("Qidi Chengxin"). The Company injected capital of RMB3,930 (US$564) and hold 59% of equity interest in Qidi Chengxin. Based on the article of association, the Company cannot exercise control over relevant activities of the investee, but it has the ability to exercise significant influence over operation and financial decisions. Available-for-sale debt investments Available-for-sale debt investments consist of investments in convertible notes with conversion option to preferred shares that are not readily convertible to cash and therefore the bifurcation of embedded derivative is not required as the conversion option did not qualify as derivatives in accordance with ASC 815 “Derivatives and Hedging” . |
BANK BORROWINGS
BANK BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
BANK BORROWINGS | |
BANK BORROWINGS | 13. BANK BORROWINGS Bank borrowings were as follows as of the respective balance sheet dates: As of December 31, 2018 2019 RMB RMB US$ Short-term bank borrowings 50,000 234,500 33,684 Long-term bank borrowings, current portion 75,284 32,500 4,668 125,284 267,000 38,352 Long-term bank borrowings, non-current portion 112,000 79,500 11,419 Total bank borrowings 237,284 346,500 49,771 The short-term bank borrowings outstanding as of December 31, 2018 and 2019 bore a weighted average interest rate of 4.05% and 4.56% per annum, respectively, and were denominated in RMB. These borrowings were obtained from financial institutions and have terms of one year. The long-term bank borrowings (including current portion) outstanding as of December 31, 2018 and 2019 bore a weighted average interest rate of 5.31% and 5.28% per annum, respectively, and were denominated in RMB. These loans were obtained from financial institutions located in the PRC. As of December 31, 2018 and 2019, unused loan facilities for bank borrowings amounted to RMB21,375 and RMB326,068 (US$46,837), respectively. Bank borrowings as of December 31, 2018 and 2019 were secured by the following: December 31, 2018 Short-term bank borrowings Secured by (RMB) Secured by restricted cash of RMB60,796. Long-term bank borrowings (including current portion) Secured by (RMB) Secured by a subsidiary’s fixed assets and land-use right with net book value of RMB286,596 and RMB16,403, respectively (Note 8/Note 10). Unsecured borrowings. December 31, 2019 Short-term bank borrowings Secured by (RMB) 34,500 Unsecured borrowings. 200,000 Secured by restricted cash of RMB215,816 (US$31,000). 234,500 Long-term bank borrowings (including current portion) Secured by (RMB) Secured by a subsidiary’s fixed assets and land-use right with net book value of RMB203,747 (US$29,267) and RMB15,989 (US$2,297), respectively (Note 8/Note 10). 112,000 |
ACCRUED EXPENSES AND OTHER PAYA
ACCRUED EXPENSES AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES AND OTHER PAYABLES | |
ACCRUED EXPENSES AND OTHER PAYABLES | 14 ACCRUED EXPENSES AND OTHER PAYABLES The components of accrued expenses and other payables were as follows: As of December 31, 2018 2019 RMB RMB US$ Payroll and welfare payables 224,265 179,195 25,740 Value-added tax and other taxes payable 16,931 14,523 2,086 Payables for office supplies and utilities 21,719 24,562 3,528 Payables for the purchase of property and equipment 207,512 551,759 79,255 Payables for the purchase of intangible assets 4,576 2,934 421 Accrued service fees 41,618 52,746 7,576 Interest payables 54,376 58,961 8,469 Liability classified RSU 4,970 2,109 303 Payables for acquisitions 47,755 47,805 6,867 Others 35,598 44,341 6,368 659,320 978,935 140,613 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
LEASES | 15. 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, 2019, the operating lease's weighted average remaining lease term was 9.4 years and weighted average discount rate was 6.09%. The finance lease's weighted average remaining lease term was 15.3 years and weighted average discount rate was 8.43%. For the year ended December 31, 2019, lease cost for finance leases capitalized was immaterial. For the year ended December 31, 2019 RMB US$ Lease cost Finance lease cost: Depreciation 216,664 31,122 Interest expenses 120,185 17,263 Operating lease cost 214,795 30,853 Total lease cost 551,644 79,238 Short-term lease cost and variable lease cost for operating leases and finance leases were immaterial for the year ended December 31, 2019. Other information related to leases was as follows: 2019 RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash payments for operating leases 193,174 27,748 Financing cash payments for finance leases 333,614 47,921 Future lease payments under operating leases and finance leases as of December 31, 2019 were as follows: Operating Leases Finance Leases RMB US$ RMB US$ 2020 466,670 67,033 364,729 52,390 2021 373,552 53,657 386,027 55,449 2022 160,644 23,075 377,564 54,234 2023 87,028 12,501 122,947 17,660 2024 47,484 6,821 121,008 17,382 2025 and thereafter 647,419 92,996 1,880,687 270,144 Total future lease payments 1,782,797 256,083 3,252,962 467,259 Less: Imputed interest (533,376) (76,615) (1,563,446) (224,575) Present value of future lease payments * 1,249,421 179,468 1,689,516 242,684 * Present value of future operating lease payments consisted of current portion of operating lease liabilities, non-current portion of operating lease liabilities and operating lease liabilities in amounts due to related parties, amounting to RMB437,817 (US$62,888), RMB579,102 (US$83,183) and RMB232,502 (US$33,397) for the year ended December 31, 2019, respectively. Present value of future finance lease payments consisted of current portion of finance lease liabilities, non-current portion of finance lease liabilities and finance lease liabilities in amounts due to related parties, amounting to RMB227,115 (US$32,623), RMB896,927 (US$128,836) and RMB565,474 (US$81,225) for the year ended December 31, 2019, respectively. |
BONDS PAYABLE
BONDS PAYABLE | 12 Months Ended |
Dec. 31, 2019 | |
BONDS PAYABLE | |
BONDS PAYABLE | 16. BONDS PAYABLE On August 17, 2017, the Company issued and sold bonds with an aggregate principle amount of US$200,000 at a coupon rate of 7% per annum or the Original Bonds. On September 29, 2017, the Company issued and sold follow-on bonds with an aggregate principle amount of US$100,000 at a coupon rate of 7% per annum, or the Bonds. The Bonds were priced at a slight premium of 100.04%, with an effective yield of 6.98% (together with the Original Bonds, “2020 Notes”). The 2020 Notes will mature on August 17, 2020. The 2020 Notes were listed and quoted on the Official List of the Singapore Exchange Securities Trading Limited (the “SGX-ST”). Interest on the 2020 Notes is payable semi-annually in arrears on August 17 and February 17 in each year, beginning from February 17, 2018. Net proceeds from 2020 Notes after deducting issuance costs were RMB1,926,419. The 2020 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; but rank lower than any secured indebtedness of the Company and all liabilities (including accounts payable) of the Company’s subsidiaries and Consolidated VIEs. On April 15, 2019, the Company issued and sold bonds with an aggregate principle amount of US$300,000 at a coupon rate of 7.875% per annum ("2021 Notes"). The 2021 Notes will mature 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 (US$283,903). 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 (US$2,714) during the year ended December 31, 2019. The following table summarizes the aggregate required repayments of the principal amounts of the Company’s long-term borrowings, including the bonds payable and bank borrowings (Note 13) in the succeeding five years and thereafter: RMB US$ For the years ending December 31, 2020 947,505 136,100 2021 2,131,860 306,223 2022 40,500 5,817 2023 and thereafter — — |
DEFERRED GOVERNMENT GRANTS
DEFERRED GOVERNMENT GRANTS | 12 Months Ended |
Dec. 31, 2019 | |
DEFERRED GOVERNMENT GRANTS | |
DEFERRED GOVERNMENT GRANTS | 17. DEFERRED GOVERNMENT GRANTS During the years ended December 31, 2017, 2018 and 2019, the Company received RMB2,877, RMB500 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, 2017 2018 2019 RMB RMB RMB US$ Balance at beginning of the year 30,993 22,435 15,792 2,268 Additions 2,877 500 — — Decrease due to disposal of subsidiaries (3,573) — — — Recognized as a reduction of depreciation expense (7,862) (7,143) (7,291) (1,047) Balance at end of the year 22,435 15,792 8,501 1,221 |
TREASURY STOCK
TREASURY STOCK | 12 Months Ended |
Dec. 31, 2019 | |
TREASURY STOCK | |
TREASURY STOCK | 18. TREASURY STOCK For the years ended December 31, 2017, 2018 and 2019, the Company repurchased the number of 3,448,482, nil and 242,830 ADSs pursuant to the share repurchase plans. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | 19. ACCUMULATED OTHER COMPREHENSIVE INCOME The changes in accumulated other comprehensive income by component, net of tax of nil, were as follows: Foreign currency translation RMB Balance as of January 1, 2017 118,290 Current year other comprehensive income (120,963) Balance as of December 31, 2017 (2,673) Current year other comprehensive loss 88,652 Balance as of December 31, 2018 85,979 Current year other comprehensive income (8,075) Balance as of December 31, 2019 77,904 Balance as of December 31, 2019, in US$ 11,190 |
MAINLAND CHINA EMPLOYEE CONTRIB
MAINLAND CHINA EMPLOYEE CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2019 | |
MAINLAND CHINA EMPLOYEE CONTRIBUTION PLAN | |
MAINLAND CHINA EMPLOYEE CONTRIBUTION PLAN | 20. 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 RMB134,053, RMB122,362 and RMB121,266 (US$17,419) for the years ended December 31, 2017, 2018 and 2019, respectively. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 21. SHARE - BASED COMPENSATION (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. The Company granted 611,111, 487,368 and 464,120 RSUs in 2017, 2018 and 2019, 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 or four-year period. As it is probable for the Company to estimate the annual performance review ratings for the individual grantees, the Company commenced recognition of the related compensation expenses using the accelerated recognition method. The Company granted 2,188,226 and 64,000 RSUs in 2018 and 2019, 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 commenced recognition of the related compensation expenses using the accelerated recognition method. The Company granted 547,056 and 16,000 RSUs in 2018 and 2019, 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, 2019, options to purchase 1,445,345 of ordinary shares were outstanding. 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, 2019 1,479,214 0.51 2.2 Exercised (33,869) 0.55 Outstanding, December 31, 2019 1,445,345 0.51 1.3 1,005 Vested and expected to vest at December 31, 2019 1,445,345 0.51 1.3 1,005 Exercisable as of December 31, 2019 1,445,345 0.51 1.3 1,005 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, 2019, the Company had options outstanding to purchase an aggregate of 1,445,345 shares with an exercise price below the fair value of the Company’s shares, resulting in an aggregate intrinsic value of RMB6,997 (US$1,005). The aggregate fair value of the outstanding options at the grant date was determined to be RMB14,508 (US$2,084) as of December 31, 2019 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, 2017, 2018 and 2019 was US$404, US$239 and US$42, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2017, 2018 and 2019 was US$306, US$248, and US$22, respectively. As of December 31, 2019, the Company has recorded all the share-based compensation expenses in relation to outstanding share options. The following table summarized the Company’s RSUs activity under the 2014 Plan: Weighted Weighted average average Aggregate Number of grant date remaining intrinsic RSUs fair value contractual life value (US$) (Years) (US$) Unvested, January 1, 2019 3,218,452 6.66 9 Granted 544,120 7.67 Vested (856,051) 7.22 Forfeited (210,392) 6.52 Unvested, December 31, 2019 2,696,129 6.83 7.8 19,547 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, 2019 was RMB136,082 (US$19,547), 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, 2017, 2018 and 2019 was US$6.31, US$6.39 and US$7.67, respectively. The total fair value of RSUs vested during the years ended December 31, 2017, 2018 and 2019 was US$18,238, US$9,422 and US$6,185, respectively. As of December 31, 2019, there was RMB59,913 (US$8,606) of unrecognized share-based compensation expenses related to RSUs which is expected to be recognized over a weighted average vesting period of 2.5 years. Total unrecognized share-based compensation expenses may be adjusted for future changes when actual forfeitures incurred. (b) Shares issued to management of Dermot Entities For the years ended December 31, 2017, 2018 and 2019, the Company recorded share-based compensation expenses of RMB5,752, nil and nil within the Company’s consolidated statements of operations, respectively. Total share-based compensation expenses relating to share options and RSUs granted to employees recognized for the years ended December 31, 2017, 2018 and 2019 were as follows: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Cost of revenues (277) 2,668 1,884 271 Sales and marketing expenses (681) 2,139 354 51 General and administrative expenses 47,945 53,346 40,501 5,817 Research and development expenses 142 1,385 1,177 169 47,129 59,538 43,916 6,308 |
TAXATION
TAXATION | 12 Months Ended |
Dec. 31, 2019 | |
TAXATION | |
TAXATION | 22. 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. Additionally, upon payments of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed. 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, 2017, 2018 and 2019. 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 17%, 20% and 20% respectively for the years ended December 31, 2017, 2018 and 2019. 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. 21Vianet 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, 21Vianet Beijing obtained a new certificate and renewed the certificate in October 2018, which will expire in October 2020. 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, 2017, 2018 and 2019, 21Vianet Beijing enjoyed a preferential tax rate of 15%. 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, 2017, 2018 and 2019, the tax rate assessed for Xi’an Sub was 25%, 15% and 15%, respectively. In 2013, BJ iJoy was qualified as a software enterprise which allows BJ iJoy to utilize a two-year 100% exemption for 2013 and 2014 followed by a three-year half-reduced EIT rate effective for the years from 2015 to 2017. For the years ended December 31, 2013 and 2014, BJ iJoy enjoyed the 100% tax exemption for its taxable income. For the year ended December 31, 2017, BJ iJoy enjoyed the half-reduced EIT rate for its taxable income. For the years ended December 31, 2018 and 2019, BJ iJoy was subject to the statutory rate of 25% for the taxable income. In October 2015, SH Blue Cloud, a subsidiary located in Shanghai, was qualified for a HNTE and became eligible for 15% preferential tax rate effective for three consecutive years. The certificate was renewed in October 2018 which will expire in October 2021. Accordingly, for the years ended December 31, 2017, 2018 and 2019, SH Blue Cloud enjoyed a preferential tax rate of 15%. 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, expiring in November 2019 and the certificate was renewed in November 2019 which will expire in November 2022. Accordingly, for the years ended December 31, 2017, 2018 and 2019, SZ DYX 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, 2019, 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. Loss before income taxes consisted of: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Non-PRC (286,388) (214,063) (178,762) (25,676) PRC (721,426) 51,738 2,953 424 (1,007,814) (162,325) (175,809) (25,252) Income tax benefits (expenses) comprised of: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Current (37,856) (44,187) (70,324) (10,101) Deferred 128,026 19,776 64,887 9,320 90,170 (24,411) (5,437) (781) The reconciliation of tax computed by applying the statutory income tax rate of 25% for the years ended December 31, 2017, 2018 and 2019 applicable to the PRC operations to income tax benefits (expenses) were as follows: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Loss before income taxes (1,007,814) (162,325) (175,809) (25,252) Income tax benefits computed at applicable tax rates (25%) 251,954 40,581 43,952 6,313 Non-deductible expenses (5,468) (2,834) (23,082) (3,316) Research and development expenses 11,895 25,906 19,688 2,829 Preferential rate (90,076) 11,701 20,213 2,903 Current and deferred tax rate differences 33,366 37,934 (8,699) (1,250) International rate differences 59,029 (63,525) (77,066) (11,069) Tax exempted income — — 754 108 Unrecognized tax benefits (6,259) 1,472 1,728 248 Deferred tax expense 2,851 — — — Change in valuation allowance (174,388) (79,694) 25,423 3,652 Prior year provision to return true up 7,266 4,048 (8,348) (1,199) Income tax benefits (expenses) 90,170 (24,411) (5,437) (781) Deferred Tax The significant components of deferred taxes were as follows: As of December 31, 2018 2019 RMB RMB US$ Deferred tax assets Non-current Allowance for doubtful debt 38,993 48,568 6,976 Accrued expenses 25,894 21,139 3,036 Tax losses 151,440 146,996 21,115 Property and equipment 15,299 20,567 2,955 Intangible assets 2,221 3,691 530 Finance lease 50,980 69,148 9,932 Deferred government grant 2,662 1,189 171 Loss picked up on equity method investments 56,616 56,706 8,145 Valuation allowance (184,664) (158,638) (22,786) Total deferred tax assets 159,441 209,366 30,074 Deferred tax liabilities Non-current Intangible assets 89,536 104,217 14,970 Property and equipment 48,496 81,424 11,696 Capitalized interest expense 15,837 15,146 2,176 Gain picked up from equity method investments 3,851 1,785 256 Total non-current deferred tax liabilities 157,720 202,572 29,098 Valuation allowance is considered for each of the entities. Realization of the net deferred tax assets is dependent on factors including future reversals of existing taxable temporary differences and adequate future taxable income, exclusive of reversing deductible temporary differences and tax loss or credit carry forwards. The Company evaluates the potential realization of deferred tax assets on an entity-by-entity basis. As of December 31, 2018 and 2019, valuation allowances were provided against deferred tax assets in entities where it was determined it was more likely than not that the benefits of the deferred tax assets will not be realized in future years. As of December 31, 2019, the Company has net tax operating losses from its PRC subsidiaries and its Consolidated VIEs, as per filed tax returns, of RMB661,253 (US$94,983), which will expire between 2020 to 2029. As of December 31, 2019, the Company intends to permanently reinvest the undistributed earnings from other foreign subsidiaries to fund future operations. As of December 31, 2019, the total amount of undistributed earnings from its PRC subsidiaries as well as VIEs was RMB1,317,809 (US$189,291). The amount of unrecognized deferred tax liabilities for temporary differences related to investments in foreign subsidiaries is not determined because such a determination is not practicable. Unrecognized Tax Benefits As of December 31, 2018 and 2019, the Company recorded unrecognized tax benefits of RMB6,677 and RMB2,443 (US$351), respectively. The unrecognized tax benefits and its related interest are primarily related to non-deductible expenses and accrued expenses. RMB897 (US$129) of the total unrecognized tax benefits, ultimately recognized, will impact the effective tax rate. It is possible that the amount of uncertain tax benefits will change in the next 12 months, however, an estimate of the range of the possible outcomes cannot be made at this time. A roll-forward of unrecognized tax benefits principle was as follows: For the years ended December 31, 2018 2019 RMB RMB US$ Balance at beginning of year 11,582 4,509 647 Reversal based on tax positions related to prior years (9,070) (3,266) (469) Additions based on tax positions related to the current year 1,997 479 69 Balance at end of year 4,509 1,722 247 For the years ended December 31, 2017, 2018 and 2019, the Company recorded (reversed) interest expense of RMB674, RMB(2,761) and RMB(1,447) (US$(211)), respectively. Accumulated interest expense recorded by the Company was RMB2,168 and RMB721 (US$104) as of December 31, 2018 and 2019, respectively. As of December 31, 2019, the tax years ended December 31, 2013 through 2019 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, 2019 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 23. RELATED PARTY TRANSACTIONS a) Related parties * Name of related parties Relationship with the Company Xiaomi Communication Technology Co., Ltd., and its subsidiary, Beijing Xiaomi Mobile Software Co., Ltd. (collectively, “Xiaomi Group”) (2) A group controlled by principal shareholder of the Company Beijing Kingsoft Cloud Network Technology Co., Ltd. (“BJ Kingsoft”) (1) A company controlled by principal shareholder of the Company Beijing Cheetah Mobile Technology Co., Ltd. (“BJ Cheetah”) (1) A company controlled by principal shareholder of the Company Unisvnet Technology Co., Ltd. (“Unisvnet”) A company controlled by controlling shareholder of the Company Beijing Tuspark Harmonious Investment Development Co., Ltd. (“Tuspark Harmonious”) A company controlled by controlling shareholder of the Company Ziguang Financial Leasing Co., Ltd. (“Ziguang Finance Leasing”) A company controlled by controlling shareholder of the Company Qidi Bus (Beijing) Technology Co., Ltd. (“Qidi Tech”) A company controlled by controlling shareholder of the Company Dyxnet Internet Center Limited (“DIC”) A related party of seller of Dermot Entities Dyxnet Data Centre Services Limited (“DCSS”) A related party of seller of Dermot Entities WNT Technology Limited (“WNT Technology”) A related party of seller of Dermot Entities Shanghai Shibei Hi-Tech Co., Ltd. (“SH Shibei”) Noncontrolling shareholder of a subsidiary Marble Stone SH Group Limited (“Marble SH”) (4) A company controlled by minority shareholder of the Company Marble Stone Holdings Limited (“Marble Holdings”) (4) A company controlled by minority shareholder of the Company Shihua DC Investment Holdings 2 Limited (“Shihua Holdings 2”) Equity investee of the Company in 2017, 2018 and wholly-owned subsidiary since August 20, 2019 (Note 4) Shihua DC Investment Management Limited (“Shihua Investment Management”) Equity investee of the Company Shihua DC Investment Management Group Limited (“Shihua Investment Group”) Equity investee of the Company Beijing Taiji Data Tech Co., Ltd. (“Taiji”) Equity investee 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 Shanghai Fawei Technology Co., Ltd. (“SH Fawei”) (3) Equity investee of the Company Wuhan Fastweb Cloud Computing Co., Ltd. (“WH Fastweb”) (3) Equity investee of the Company Beijing Bozhi Ruihai Network Technology Co., Ltd. (“BZRH”) (3) Equity investee of the Company WiFire (Shanghai) Network Technology Co., Ltd. (“SH Guotong”) (3) Equity investee of the Company Jingliang Interconnected Cloud Technology Co., Ltd. (“Jingliang Inter Cloud”) Equity investee of the Company * (1) These companies and Kingsoft are ultimately controlled by the same party. Kingsoft made a significant investment in the Company in 2015. (2) These companies and Xiaomi are ultimately controlled by the same party. Xiaomi made a significant investment in the Company in 2015. (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, 2017, 2018 and 2019. (4) These entities are controlled by Waburg Pincus, a significant minority shareholder of the Company. b) Other than disclosed elsewhere, the Company had the following significant related party transactions for the years ended December 31, 2017, 2018 and 2019: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Services provided to: - Xiaomi Group 220,110 374,085 437,694 62,871 - Taiji — 13,681 7,899 1,135 - Qidi Tech — — 7,427 1,067 - BJ Kingsoft 8,046 6,281 3,475 499 - WiFire BJ 9,726 16,490 1,934 278 - BJ Cheetah 5,128 2,079 169 24 - Unisvnet — 1,011 — — - Others 3,314 4,493 1,494 215 Services provided by: - CYSD 2,979 18,667 38,918 5,590 - Taiji — 7,095 19,942 2,865 - Jingliang Inter Cloud — 3,477 8,829 1,268 - BJ Kingsoft 7,775 13,204 3,492 502 - DCSS 6,424 5,238 — — - BZRH — 4,239 — — - WiFire BJ 1,616 4,066 — — - Others 2,632 6,396 5,866 843 Sales of equipment to: - BJ Fastweb 1,021 — — — Purchases of equipment from: - WNT Technology 2,629 — — — - DIC 1,234 — — — Loan to: - Taiji — — 1,500 215 - BJ Fastweb 20,000 — — — Interest income from loan to: - BJ Fastweb 210 700 700 101 Lease deposit paid to: - Ziguang Finance Leasing — 2,042 6,154 884 - Tuspark Harmonious — 11,472 — — Lease payment paid to: - Tuspark Harmonious — — 68,832 9,887 - Ziguang Finance Leasing — 4,897 17,156 2,464 c) The Company had the following related party balances as of December 31, 2018 and 2019: As of December 31, 2018 2019 RMB RMB US$ Amounts due from related parties: Current: -Marble SH (2) — 100,106 14,379 -Shihua Investment Group (3) — 82,542 11,856 - Xiaomi Group 41,159 39,778 5,714 -Marble Holdings (2) — 29,736 4,271 -Shihua Investment Management (3) — 27,905 4,008 - SH Shibei 9,800 9,800 1,408 - Taiji 13,542 9,499 1,364 -Qidi Tech — 1,249 179 - WiFire BJ (1) 36,578 — — - SH Fawei (1) 13,742 — — - WH Fastweb (1) 5,131 — — - Unisvnet 1,072 — — - BJ Kingsoft 982 — — - Others 3,440 1,050 152 125,446 301,665 43,331 Non-current: - Tuspark Harmonious 11,472 11,863 1,704 - Ziguang Finance Leasing 2,042 8,195 1,177 - BJ Fastweb (1) 20,910 — — -Others — 596 86 34,424 20,654 2,967 Amounts due to related parties: Current: -Shihua Investment Group (3) — 84,021 12,069 - Ziguang Finance Leasing 8,938 27,160 3,901 -Shihua Investment Management (3) — 22,484 3,230 - Tuspark Harmonious 13,850 24,917 3,579 - WiFire BJ (1) — 6,330 909 - BJ Kingsoft 609 1,073 154 - SH Guotong (1) 8,135 — — - CYSD (1) 7,158 — — - Taiji 6,724 — — - BZRH (1) 5,088 — — - Others 1,826 950 137 52,328 166,935 23,979 Non-current: - Tuspark Harmonious 443,622 698,511 100,335 - Ziguang Finance Leasing 12,527 47,388 6,807 - Shihua Holdings 2 48,329 — — 504,478 745,899 107,142 (1) As of December 31, 2019, RMB20,367 (US$2,926) of amounts due from/to WiFire Entities were offset according to the multi-party debt offset agreement signed in 2019. The remaining RMB52,142 (US$7,490) of amounts due from WiFire Entities was fully impaired considering low collectability. (2) Amounts due from Marble SH and Marble Holdings represented the unpaid cash consideration to the Company for acquiring the 100% equity interest in Shihua Holdings 2’s some subsidiaries (Note 4). (3) Amounts due from/to Shihua Investment Management and Shihua Invesetment Group were generated from the assets acquisition of Shihua Holdings 2 (Note 4). |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | 24. SEGMENT REPORTING As of December 31, 2016, the operations of the Company are organized into two segments, consisting of the hosting and related services and managed network services. The Company derives the results of the segments directly from its internal management reporting system. The CODM measures the performance of each segment based on metrics of revenue and earnings from operations and uses these results to evaluate the performance of, and to allocate resources to, each of the segments. After disposal of WiFire Entities and Aipu Group in September 2017 (Note 4), the Company had only one reporting segment as of December 31, 2017, 2018 and 2019. Because substantially all of the Company’s long-lived assets and revenues are located in and derived from the PRC, geographical segments are not presented. For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Hosting and related services Revenues 2,975,178 3,401,037 3,788,967 544,251 Cost (2,130,279) (2,456,166) (2,849,518) (409,308) Gross profit 844,899 944,871 939,449 134,943 Operating income (expenses) Operating income 5,439 5,027 6,862 986 Sales and marketing expenses (171,761) (172,176) (206,309) (29,634) Research and development expenses (97,597) (92,109) (88,792) (12,754) General and administrative expenses (417,154) (462,637) (415,277) (59,651) (Allowance) reversal for doubtful debt (6,257) 598 (1,557) (224) Impairment of receivables from equity investees — — (52,142) (7,490) Changes in the fair value of contingent purchase consideration payables (937) 13,905 — — Operating profit 156,632 237,479 182,234 26,176 Managed network services Revenues 417,527 — — — Cost (504,016) — — — Gross loss (86,489) — — — Operating expenses — — Sales and marketing expenses (84,921) — — — Research and development expenses (51,546) — — — General and administrative expenses (102,796) — — — Allowance for doubtful debt (31,170) — — — Impairment of goodwill (766,440) — — — Impairment of long-lived assets (401,808) — — — Operating loss (1,525,170) — — — Group consolidated revenue 3,392,705 3,401,037 3,788,967 544,251 Group consolidated operating (loss) profit (1,368,538) 237,479 182,234 26,176 |
RESTRICTED NET ASSETS
RESTRICTED NET ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
RESTRICTED NET ASSETS | |
RESTRICTED NET ASSETS | 25. 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. 21Vianet China was established as a foreign-invested enterprise and, therefore, is subject to the above mandated restrictions on distributable profits. As of December 31, 2018, and 2019, the Company’s PRC subsidiaries had appropriated RMB42,403 and RMB60,469 (US$8,687), 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 RMB6,736,125 (US$967,584) as of December 31, 2019 . |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
LOSS PER SHARE | |
LOSS PER SHARE | 26. LOSS PER SHARE Basic and diluted loss per share for each of the years presented were calculated as follows: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Numerator: Net loss (917,644) (186,736) (181,246) (26,033) Net loss (profit) attributable to noncontrolling interest and redeemable noncontrolling interest 144,914 (18,329) (1,046) (150) Net loss attributable to ordinary shareholders (772,730) (205,065) (182,292) (26,183) Plus increase in accretion of redeemable noncontrolling interests (141,896) — — — Adjusted net loss attributable to ordinary shareholders (914,626) (205,065) (182,292) (26,183) Denominator: Weighted average number of shares outstanding—basic 672,836,226 674,732,130 668,833,756 668,833,756 Weighted average number of shares outstanding—diluted 672,836,226 674,732,130 668,833,756 668,833,756 Loss per share—Basic: Net loss (1.36) (0.30) (0.27) (0.04) (1.36) (0.30) (0.27) (0.04) Loss per share—Diluted: Net loss (1.36) (0.30) (0.27) (0.04) (1.36) (0.30) (0.27) (0.04) In 2017, 2018 and 2019, the Company issued 9,000,000, nil and 6,700,002 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. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2019 | |
SHARE CAPITAL | |
SHARE CAPITAL | 27. 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 C Ordinary Share is convertible into one Class A Ordinary Share at any time by the holder. Class A Ordinary Shares are not convertible into Class B Ordinary Share and Class C Ordinary Shares under any circumstances. Upon any transfer of Class B Ordinary Shares and Class C Ordinary Shares by a holder to any person or entity which is not an affiliate of such holder, such Class B Ordinary Shares and Class C Ordinary Share will be automatically converted into an equal number of Class A Ordinary Shares. For the years ended December 31, 2017, 2018 and 2019, 3,119,052, 3,070,500 and 304,200 Class A ordinary shares were issued to settle the share options exercised and RSUs vested. 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. |
REDEEMABLE NONCONTROLLING INTER
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2019 | |
REDEEMABLE NONCONTROLLING INTERESTS | |
REDEEMABLE NONCONTROLLING INTERESTS | 28. REDEEMABLE NONCONTROLLING INTERESTS In May 2014, the Company acquired 50% equity interests plus one share in SC Aipu. The sale and purchase agreement also provided put options that allows the seller of Aipu Group to sell the remaining 50% equity interests in the Aipu Group in three tranches, namely 28% equity interest in 2015, 11% equity interest in 2016 and the remaining equity interests (including those in 2015 and 2016 if these put options are not exercised) in 2017 for a consideration determined using certain financial or operational targets with a floor of RMB700,000 or a ceiling of RMB800,000, in aggregate. A portion of the consideration is to be settled in cash based on certain financial target stipulated in the sale and purchase agreement. The difference will be settled in cash or shares, with the choice to settle in cash or shares residing with the Company for the first tranche and the seller of Aipu Group in the subsequent tranches. The noncontrolling interests are to be redeemed by the Company at the option of the seller of Aipu Group (“Written Put Option”) in return for cash and shares where the maximum number of shares required to be delivered is outside of the control of the Company, and thus are accounted for as redeemable noncontrolling interests. The Company elects to recognize the changes in redemption value immediately as they occur and adjust the carrying amount of the noncontrolling interests to the redemption value at the end of each reporting period as if it was the redemption date in accordance with ASC 480. As of December 31, 2015 and 2016, as the remaining 50% equity interests are held by a few non-controlling shareholders where the underlying shares of the Aipu Group are not publicly traded, the Written Put Option are embedded features in the Aipu Group’s shares, which does not qualify for bifurcation accounting. The put options are recognized as part of redeemable non-controlling interests. The redeemable noncontrolling interests were initially recorded at the higher of acquisition date fair value and subsequently adjusted to the balance after attribution of Aipu Group’s net income pursuant to ASC 810, Consolidation, and the redemption value pursuant to ASC 480, which is capped within the aforementioned range. Adjustments to the carrying amount of redeemable noncontrolling interests pursuant to ASC 480, if any, are charged to additional paid-in capital. Upon the disposal of Aipu Group in September 2017, the redeemable noncontrolling interests recognized was reversed due to the deconsolidation of Aipu Group. However, as the Written Put Option outstanding is legally detachable separately exercisable from the 50% minus one share of equity in Aipu Group held by the Company, the Written Put Option qualifies as a freestanding financial instrument as defined under ASC Topic 480 and the Written Put Option is accounted as derivative liability pursuant to ASC 815. However, in December 2017 as part of the transfer of all the remaining 50% equity interest, the Written Put Option was terminated and the gain was recognized as part of the disposal of subsidiaries for the year ended December 31, 2017. For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Balance as of January 1 700,000 — — — Loss for the year (141,896) — — — Increase in accretion of redeemable noncontrolling interests 141,896 — — — Reversal due to extinguishment of put option (700,000) — — — Balance as of December 31 — — — — |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 29. 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 and bonds payable are classified within Level 1 because they are valued by using quoted market prices. The contingent considerations for the acquired businesses, liability classified RSU and long-term investments are classified within Level 3. The contingent considerations are based on the achievement of certain financial targets in accordance with the sales and purchase agreements for the various periods, as well as other non-financial measures. The fair value of liability classified RSU was estimated using the share price and exchange rate that the Company estimates to be settled in shares. 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, 2018 RMB RMB RMB RMB Cash equivalents: - Time deposits 1,194,425 — — 1,194,425 Short-term investments: - Time deposits 245,014 — — 245,014 Long-term investments - Available-for-sale debt securities — — 2,537 2,537 Assets 1,439,439 — 2,537 1,441,976 Long-term borrowings: - Bonds payable 2,030,361 — — 2,030,361 Other liabilities: - Liability classified RSU — — 4,970 4,970 Liabilities 2,030,361 — 4,970 2,035,331 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, 2019 RMB RMB RMB RMB US$ Cash equivalents: - Time deposits 117,825 — — 117,825 16,925 Short-term investments: - Time deposits 363,856 — — 363,856 52,265 Long-term investments - Available-for-sale debt securities — — 1,713 1,713 246 Assets 481,681 — 1,713 483,394 69,436 Short-term borrowings: - Current portion of bonds payable 912,416 — — 912,416 131,060 Long-term borrowings: - Bonds payable 2,089,114 — — 2,089,114 300,082 Other liabilities: - Liability classified RSU — — 2,109 2,109 303 Liabilities 3,001,530 — 2,109 3,003,639 431,445 The following table presented a reconciliation of all liabilities measured at fair value on a recurring basis using significant unobservable inputs (level 3): Contingent consideration payable RMB Fair value at January 1, 2018 36,734 Changes in the fair value (13,905) Settlement of contingent consideration payable (22,829) Transfers in and/or out of Level 3 — Fair value at December 31, 2018 — Transfers in and/or out of Level 3 — Fair value at December 31, 2019 — Fair value at December 31, 2019 (US$) — Liability classified RSU RMB Fair value at January 1, 2018 11,865 Reclassification to equity (587) Reversal (6,308) Transfers in and/or out of Level 3 — Fair value at December 31, 2018 4,970 Reclassification to equity (2,861) Reversal — Transfers in and/or out of Level 3 — Fair value at December 31, 2019 2,109 Fair value at December 31, 2019 (US$) 303 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 30. COMMITMENTS AND CONTINGENCIES Capital commitments As of December 31, 2019, the Company has the following commitments to purchase certain computer and network equipment and construction-in-progress: RMB US$ 2020 225,511 32,393 2021 and thereafter — — 225,511 32,393 Bandwidth and cabinet capacity purchase commitments As of December 31, 2019, the Company has outstanding purchase commitments in relation to bandwidth and cabinet capacity consisting of the following: RMB US$ 2020 600,571 86,267 2021 60,602 8,705 2022 44,968 6,459 2023 206 30 2024 and thereafter 2,068 297 708,415 101,758 Managed Network Services As of December 31, 2019, the Company was still in the process of negotiation with the seller of the Managed Network Entities on the quality assessment of the fiber optic network subsequent to the completion of construction. As this is a pending event subsequent to the acquisition which is unrelated to the original acquisition, the Company concluded that the accounting for any settlement should be separated from that of the business combination. Based on the Company’s best estimate, the fair value of the related contingent consideration in shares of RMB47,755, as determined based on the remeasured amount of December 31, 2012, is accrued as a contingent payable pursuant to ASC 450, Contingencies . The Company is negotiating with the seller of the Managed Network Entities to come to an agreement on the quality assessment of the fiber optic network as of December 31, 2019 and the Company’s estimate of the contingent payable remains unchanged. Income Taxes As of December 31, 2019, the Company has recognized an accrual of RMB2,443 (US$351) for unrecognized tax benefits and its interest (Note 22). The final outcome of the tax uncertainty is dependent upon various matters including tax examinations, interpretation of tax laws or expiration of statutes 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. Securities Litigation In 2014, the Company and certain of its officers and directors were named as defendants in two putative securities class actions filed in U.S. federal district courts in Texas, the complaints in both actions alleged that certain of the Company’s financial statements and other public disclosures contained misstatements or omissions and asset claims under the U.S. securities laws. In 2016, the Company filed a motion to dismiss the complaint and in 2017, the magistrate judge issued a report and recommendation to deny the Company’s motion to dismiss. On April 9, 2018, the lead plaintiff of the putative class action filed an unopposed motion for preliminary approval of class action settlement, requesting that, among others, the Court preliminarily approve a settlement agreement that the parties reached to settle the case for RMB58,808. The unopposed motion for preliminary approval is currently pending before the Court. The Company assessed that the settlement is probable and recorded an estimated loss after deduction of insurance claim of RMB10,007 within accrued expenses and other payables in the consolidated balance sheets as of December 31, 2017. On November 9, 2018, the Court approved the settlement and issued final judgment, ending the case. The Company has paid the settlement amount as of December 31, 2018. 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 into in 2013. As this legal proceeding remains in preliminary stage, the Company’s management is unable to estimate the likelihood of an unfavorable outcome or the amount or range of any potential loss. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 31. SUBSEQUENT EVENTS In February 2020, the Company has entered into convertible note purchase agreements with several investors to issue convertible notes for a total aggregate principal amount of US$200,000 at a simple interest rate of 2% per annum. The convertible notes will mature in five years from the date of issuance if not converted. Beginning in January 2020, the emergence and wide spread of the novel Coronavirus (“COVID-19”) has resulted in quarantines, travel restrictions, and the temporary closure of stores and facilities in China and elsewhere. Substantially all of the Company’s revenue and workforce are concentrated in China. Consequently, the COVID-19 outbreak may adversely affect the Company’s business operations, financial condition and operating results for 2020, including but not limited to negative impact to the Company’s total revenues, slower collection of accounts receivables and additional allowance for doubtful accounts and downward adjustments or impairment to the Company’s long-term investments. Because of the uncertainties surrounding the COVID-19 outbreak, the extent of the business disruption and the related financial impact cannot be reasonably estimated at this time. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 32. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed balance sheets As of December 31, Notes 2018 2019 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 590,470 243,989 35,047 Short-term investments 150,990 138,848 19,944 Prepaid expenses and other current assets 98,337 105,597 15,168 Amounts due from subsidiaries (b) 5,062,149 6,128,595 880,318 Total current assets 5,901,946 6,617,029 950,477 Non-current assets Investments in subsidiaries 1,364,685 1,446,563 207,786 Total non-current assets 1,364,685 1,446,563 207,786 Total assets 7,266,631 8,063,592 1,158,263 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other payables 56,656 57,612 8,275 Account payables 2,725 56 8 Interest payable 53,965 58,525 8,406 Current portion of bonds payable — 911,147 130,878 Amounts due to subsidiaries (b) 21,242 22,471 3,228 Total current liabilities 134,588 1,049,811 150,795 Non-current liabilities Bonds payable (c) 2,037,836 2,060,708 296,002 Total non-current liabilities 2,037,836 2,060,708 296,002 Total liabilities 2,172,424 3,110,519 446,797 Shareholders’ equity: Class A Ordinary shares (par value of US$0.00001 per share; 1,200,000,000 and 1,200,000,000 shares authorized; 499,706,628 and 505,253,850 shares issued and outstanding as of December 31, 2018 and 2019, respectively) 34 34 5 Class B Ordinary shares (par value of US$0.00001 per share; 300,000,000 and 300,000,000 shares authorized; 174,649,638 and 174,649,638 shares issued and outstanding as of December 31, 2018 and 2019, respectively) 12 12 2 Class C Ordinary shares (par value of US$0.00001 per share; nil and 60,000 shares authorized; nil and 60,000 shares issued and outstanding as of December 31, 2018 and 2019, respectively) — — — Additional paid-in capital 9,141,494 9,202,567 1,321,866 Accumulated other comprehensive income 85,979 77,904 11,190 Accumulated deficit (3,795,629) (3,977,921) (571,391) Treasury stock (337,683) (349,523) (50,206) Total shareholders’ equity 5,094,207 4,953,073 711,466 Total liabilities and shareholders’ equity 7,266,631 8,063,592 1,158,263 Condensed statements of operations For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Operating Expenses General and administrative expenses (145,890) (65,949) (44,490) (6,389) Changes in the fair value of contingent purchase consideration payables (937) 13,905 — — Operating loss (146,827) (52,044) (44,490) (6,389) Other loss (95,210) (262,186) (274,572) (39,440) Share of (losses) profits from subsidiaries and Consolidated VIEs (530,693) 109,165 136,770 19,646 Loss before income taxes (772,730) (205,065) (182,292) (26,183) Income tax expense — — — — Net loss (772,730) (205,065) (182,292) (26,183) Condensed statements of comprehensive loss For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net loss (772,730) (205,065) (182,292) (26,183) Other comprehensive (loss) income, net of tax of nil: Foreign currency translation adjustments, net of tax of nil (120,963) 88,652 (8,075) (1,160) Other comprehensive (loss) income, net of tax of nil: (120,963) 88,652 (8,075) (1,160) Comprehensive loss (893,693) (116,413) (190,367) (27,343) Comprehensive loss attributable to the Company’s ordinary shareholders (893,693) (116,413) (190,367) (27,343) Condensed statements of cash flows For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net cash used in operating activities (18,324) (166,068) (142,989) (20,539) Net cash used in investing activities (1,291,042) (203,651) (1,011,257) (145,258) Net cash (used in) generated from financing activities (130,187) 43,145 807,765 116,028 Net decrease in cash and cash equivalents and restricted cash (1,439,533) (326,574) (346,481) (49,769) Cash and cash equivalents and restricted cash at beginning of the year 2,356,597 917,044 590,470 84,816 Cash and cash equivalents and restricted cash at end of the year 917,044 590,470 243,989 35,047 (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 , and such investment is presented on the balance sheet as “Investments in subsidiaries” and the share of the subsidiaries’ profit or loss is presented as “Share of (losses) profits of subsidiaries and Consolidated VIEs” on the statements of operations. 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, 2018 and 2019: As of December 31, 2018 2019 RMB RMB US$ Amounts due from subsidiaries - 21Vianet HK 4,938,618 5,855,452 841,083 - WiFire Open Network Group Ltd. 4,277 147,326 21,162 - HongKong Fastweb Holdings Co., Ltd. 65,976 67,088 9,637 - 21V Mobile 52,579 58,018 8,334 - WiFire Group Inc. 686 698 100 - Others 13 13 2 5,062,149 6,128,595 880,318 Amounts due to subsidiaries - 21Vianet Beijing 18,351 19,449 2,794 - Others 2,891 3,022 434 21,242 22,471 3,228 (c) Bonds payable On August 17, 2017, the Company issued and sold bonds with an aggregate principle amount of US$200,000 at a coupon rate of 7% per annum or the Original Bonds. On September 29, 2017, the Company issued and sold follow-on bonds with an aggregate principle amount of US$100,000 at a coupon rate of 7% per annum, or the Bonds. The Bonds were priced at a slight premium of 100.04%, with an effective yield of 6.98% (together with the Original Bonds, “2020 Notes”). The 2020 Notes will mature on August 17, 2020. The 2020 Notes were listed and quoted on the Official List of the Singapore Exchange Securities Trading Limited (the “SGX-ST”). Interest on the 2020 Notes is payable semi-annually in arrears on August 17 and February 17 in each year, beginning from February 17, 2018. Net proceeds from 2020 Notes after deducting issuance costs were RMB1,926,419. The 2020 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; but rank lower than any secured indebtedness of the Company and all liabilities (including accounts payable) of the Company’s subsidiaries and Consolidated VIEs. On April 15, 2019, the Company issued and sold bonds with an aggregate principle amount of US$300,000 at a coupon rate of 7.875% per annum (“2021 Notes”). The 2021 Notes will mature 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 (US$283,903). 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 (US$2,714) during the year ended December 31, 2019. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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, estimating the useful lives of long-lived assets, determining the fair value of equity investments, accounting for investments and the subsequent impairment assessment, determining the provision for accounts and other receivables, determining the valuation allowance for deferred tax assets, accounting for share-based compensation arrangements, goodwill and long-lived assets impairment assessment, measurement of right-of-use assets and lease liabilities and determining the standalone lease price. Changes in facts and circumstances may result in revised estimates. 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 (“ASC 830”). The Company uses the RMB as its reporting currency. 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 accumulated other comprehensive income (loss) within the statements of comprehensive loss. |
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$1.00 to RMB6.9618 on December 31, 2019, the last business day in fiscal year 2019, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ 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 Company adopted ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, effective January 1, 2018 using the retrospective transition method and included all restricted cash with cash and cash equivalent when reconciling beginning-of-period and end-of-period total amounts presented in the consolidated statements of cash flows. |
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 Accounts receivable are carried at net realizable value. An allowance for doubtful debt is recorded in the period when loss is probable based on an assessment of specific evidence indicating troubled collection, historical experience, accounts aging and other factors. An accounts receivable is written off after all collection effort has ceased. |
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 (“ASC 350‑40”), amounting to RMB9,238, RMB6,093, and RMB13,189 (US$1,894) for the years ended December 31, 2017, 2018 and 2019, respectively. The Company capitalizes certain costs relating to software acquired, developed, or modified solely to meet the Company’s internal requirements and for which there are no substantive plans to market the software. These costs mainly include the research staff costs directly associated with the internal-develop software projects during the application development stage. Capitalized internal-use software costs are included in “intangible assets, net”. Intangible assets have weighted average useful lives from the date of purchase/ acquisition as follows: Purchased software 5.1 years Radio spectrum license 15 years Operating permits* 31.9 years Contract backlog* 4.9 years Customer relationships* 8.8 years Licenses* 15 years Supplier relationships* 10 years Trade Names* 20 years Platform software* 5 years Non-complete agreements* 5 years Internal use software 4 years * |
Leases | (l) Leases Effective January 1, 2019, the Company adopted ASC Topic 842, Lease ("ASC 842") using the modified retrospective method and did not restate the comparable periods. The Company determines if an arrangement is a lease at inception. Leases are classified as operating or finance leases in accordance with the recognition criteria in ASC 842-20-25. The Company's leases do not contain any material residual value guarantees or material restrictive covenants. 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 sheet. 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 consist of equity investments without readily determinable fair value, equity method investments and available-for-sale debt investments. Prior to adopting ASC Topic 321, Investments—Equity Securities (“ASC 321”) on January 1, 2018, the Company carries at cost its investments in investees that do not have readily determinable fair value and over which the Company does not have significant influence, in accordance with ASC Subtopic 325‑20, Investments-Other: Cost Method Investments (“ASC 325‑20”). The Company only adjusts the carrying value of such investments for other-than-temporary decline in fair value and for distribution of earnings that exceed the Company’s share of earnings since its investment. Management regularly evaluates the impairment of equity investments without readily determinable fair value based on the performance and financial position of the investee as well as other evidence of market value. Such evaluation includes, but is not limited to, reviewing the investee’s cash position, recent financing, projected and historical financial performance, cash flow forecasts and financing needs. An impairment loss is recognized in earnings equal to the excess of the investment’s cost over its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value would then become the new cost basis of the investment. The Company adopted ASC 321 on January 1, 2018 and the cumulative effect of adopting the new standard on opening retained deficit is nil. Pursuant to ASC 321, equity investments, except for those accounted for under the equity method and those that result in consolidation of the investee and certain other investments, are measured at fair value, and any changes in fair value are recognized in earnings. For equity securities without readily determinable fair value and do not qualify for the existing practical expedient in ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”), to estimate fair value using the net asset value per share (or its equivalent) of the investment, the Company elected to use the measurement alternative to measure those investments at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer, if any. Equity securities with readily determinable fair value are measured at fair values, and any changes in fair value are recognized in earnings. Pursuant to ASC 321, 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. Available-for-sale debt investments are convertible debt instruments issued by private companies, which are measured at fair value, with unrealized gains or losses recorded in accumulated other comprehensive income. 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 (“ASC 323‑10”). The Company applies the equity method of accounting that is consistent with ASC 323‑10 in limited partnerships in which the Company holds a three percent or greater interest. Under the equity method, the Company initially records its investment at cost and prospectively recognizes its proportionate share of each equity investee’s net profit or loss into its consolidated statements of operations. The difference between the cost of the equity investee and the amount of the underlying equity in the net assets of the equity investee is recognized as equity method goodwill included in equity method investments on the consolidated balance sheets. The Company evaluates its equity method investments for impairment under ASC 323‑10. An impairment loss on the equity method investments is recognized in the consolidated statements of operations when the decline in value is determined to be other-than-temporary. |
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. In accordance with ASC Topic 350, Goodwill and Other Intangible Assets (“ASC 350”), recorded goodwill amounts are not amortized, but rather are tested for impairment annually or more frequently if there are indicators of impairment present. In accordance with ASC 350, the Company assigned and assessed goodwill for impairment at the reporting unit level. A reporting unit is an operating segment or one level below the operating segment. In 2017, there were two reporting units consisting of two service lines namely hosting and related services and managed network services. The goodwill was reassigned to the two reporting units using a relative fair value allocation approach. After the disposal of WiFire Entities and Aipu Group as defined in Note 4 in September 2017, the Company determined that there is only hosting and related services remained and hence the Company as a whole is one reporting unit as of December 31, 2018 and 2019. The Company early adopted ASU No. 2017‑04, Simplifying the Test for Goodwill Impairment (“ASU 2017‑04”), which simplifies the accounting for goodwill impairment by eliminating Step two from the goodwill impairment test. Under the new guidance, if a reporting unit’s carrying amount exceeds its fair value, an entity will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit. Fair value is primarily determined by computing the future discounted cash flows expected to be generated by the reporting unit. Immediately before the disposal of WiFire Entities and Aipu Group in September 2017, the Company completed its impairment test for goodwill in managed network services. The Company determined the fair value of the reporting unit using the income approach based on the discounted expected cash flows associated with the reporting unit. The discounted cash flows for the reporting unit were based on five-year projections. Cash flow projections were based on past experience, actual operating results and management best estimates about future developments as well as certain market assumptions. Cash flows after five years were estimated using a terminal value calculation, which considered terminal value growth at 3%, considering the long-term revenue growth for entities in a similar industry in the PRC. The discount rate of approximately 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. The resulting fair value of the reporting unit significant lower than its carrying value, the Company fully impaired goodwill in managed network services and recorded an amount of RMB766 million for impairment loss of goodwill as of December 31, 2017. Pursuant to ASC 350, in 2018 and 2019, the Company performed a qualitative assessment for hosting and related services and completed its annual impairment test for goodwill that has arisen out of its acquisitions. The Company evaluated all relevant factors including, but not limited to, macroeconomic conditions, industry and market conditions, financial performance, and the share price of the Company. The Company weighed all factors in their entirety and concluded that it was not more-likely-than-not the fair value was less than the carrying amount of the reporting unit, and further impairment testing on goodwill was unnecessary. No impairment loss of goodwill in hosting and related services was recognized for the years ended December 31, 2018 and 2019. |
Impairment of long-lived assets | (p) Impairment of long-lived assets The Company evaluates its long-lived assets or asset group, including intangible assets with finite lives, for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Company evaluates for impairment by comparing the carrying amount of the assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the assets, the Company would recognize an impairment loss based on the excess of the carrying amount of the asset group over its fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the assets, when the market prices are not readily available for the long-lived assets. As of December 31, 2017, due to continued operational losses, the Company recorded the long-lived assets impairment amounting to RMB170,695 and RMB231,113 for the asset groups of Aipu Group and WiFire Entities, respectively, resulting from excess of the carrying amount of the asset groups over their fair values of the two asset groups, respectively. The Company determined the fair value of the asset groups using the income approach based on the discounted expected cash flows associated with the respective asset groups. The discounted cash flows for the asset groups were based on seven year projections for Aipu and five years for WiFire Entities, which are consistent with the remaining useful lives of its principal assets. Cash flow projections were based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The discount rate of approximately 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. No impairment was recognized in other assets groups as there was no impairment indicator identified. The impairment loss reduced the carrying amount of the long-lived assets of a group on a pro-rata basis using the relative carrying amount of those assets. In 2018 and 2019, the Company performed a qualitative assessment for impairment on whether events or changes in circumstances indicate that the carrying amount of an asset or a group of long-lived assets might not be recoverable. No impairment was recognized for the year ended December 31, 2018 and 2019 as there was no impairment indicator identified. The Company recorded impairment charges associated with its long-lived assets and acquired intangibles as follows: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Impairment of equipment 237,956 — — — Impairment of intangible assets 163,852 — — — |
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 bank borrowings, available-for-sale investments, liability classified restricted share units (“RSU”). Other than the bonds payable and long-term bank borrowings, the carrying values of these financial instruments approximate their fair values due to their short-term maturities. The carrying amounts of bonds payable and long-term bank borrowings approximate their fair values since they bear interest rates which approximate market interest rates. |
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. On January 1, 2018, the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (“ASC 606”), which supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition (“ASC 605”), using the modified retrospective transition method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts have not been adjusted and continue to be reported in accordance with historic accounting under ASC 605. The impact of adopting the new revenue standard was not material to consolidated financial statements and there was no adjustment to beginning retained earnings on January 1, 2018. Under ASC 606, an entity recognizes revenue as the Company 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 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price, including variable consideration, if any; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration to which it is entitled in exchange for the goods or services it transfers to the customer. 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 establish pricing and controls the promised service before transferring that service to customers. Otherwise, the Company records revenue at the net amounts as commissions. The Company’s revenue recognition policies effective on the adoption date of ASC 606 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. 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. 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. Cloud services allow businesses to run their applications over the internet using the IT infrastructure. Revenue from Cloud services consisted of incentive revenue from Microsoft upon completion of certain conditions and a fixed percentage amount based on gross sales price generated from Cloud services provided to end customers. Cloud services are generally provided to end customers for a fixed amount over the contract period and the related revenues are recognized on a straight-line basis over the contract period. For certain contracts where considerations are based on the usage of the cloud resources, the related revenues are recognized based on the consumption at the predetermined rate as the services are rendered throughout the contract term. The Company records revenue for Cloud service on a net basis. 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, 2018 and 2019, the Company has deferred revenue amounting up to RMB57,754 and RMB57,625 (US$8,277), respectively. Revenue recognized from opening deferred revenue balance was RMB46,996 (US$6,751) for the year ended December 31, 2019. 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 RMB7,773, RMB7,968 and RMB6,095 (US$875) for the years ended December 31, 2017, 2018 and 2019, respectively. |
Research and development expenses | (u) Research and development expenses Research and development expenses consist primarily of payroll and related personnel costs for routine upgrades and related enhancements of the Company’s services and network. Research and development expenses are expensed as incurred. |
Government grants | (v) Government grants Government grants are provided by the relevant PRC municipal government authorities to subsidize the cost of certain research and development projects. The amount of such government grants are determined solely at the discretion of the relevant government authorities and there is no assurance that the Company will continue to receive these government grants in the future. Government grants are recognized when it is probable that the Company will comply with the conditions attached to them, and the grants are received. When the grant relates to an expense item, it is recognized in the consolidated statement of operations over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate, as a reduction of the related operating expense. When the grant relates to an asset, it is recognized as deferred government grants and released to the consolidated statement of operations in equal amounts over the expected useful life of the related asset, when operational, as a reduction of the related depreciation expense. |
Capitalized interest | (w) Capitalized interest Interest costs are capitalized if they are incurred during the acquisition, construction or production of a qualifying asset and such costs could have been avoided if expenditures for these assets have not been made. As a result of total interest costs capitalized during the period, the interest expense for the years ended December 31, 2017, 2018 and 2019, was as follows: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Interest expense and amortization cost of bonds payable 63,354 150,098 223,832 32,151 Interest expense on bank borrowings 87,916 19,395 14,212 2,041 Interest expense on finance lease 63,757 79,935 120,185 17,263 Total interest costs 215,027 249,428 358,229 51,455 Less: Total interest costs capitalized (29,714) (13,362) (12,274) (1,762) Interest expense, net 185,313 236,066 345,955 49,693 |
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 Company records a valuation allowance against deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. 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 (“ASC 740”), to account for uncertainty in income taxes. ASC 740 prescribes a recognition threshold a tax position is required to meet before being recognized in the financial statements. The Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of “income tax benefits (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 (“ASC 718”), which requires that share-based awards granted to employees be measured based on the grant date fair value and recognized as compensation expenses over the requisite service period and/or performance period (which is generally the vesting period) in the consolidated statements of operations. The Company accounts for forfeitures as they occur. 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. For the performance bonuses that the employees can elect to settle in cash and/or restricted shares of the Company (“Share-Settled Bonus”), the Company estimates the portion of the arrangement to be settled in shares based on its past settlement practices and classifies such portion as a liability in accordance with ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”) as the Company can only settle the Share-Settled Bonus by issuing variable number of shares until the settlement date. The Company remeasures the fair value of such liability at each reporting period end through earnings until the underlying shares were approved and granted to the employees and accounted for the granted restricted shares unit as equity award. The original cash bonus amount continues to be classified as a liability within “Accrued expenses and other payables” in the consolidated balance sheets. 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 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 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. In January, 2017, the Company made revisions to the Share-Settled Bonus to remove the option to settle bonus accrued in 2017. For the Share-Settled Bonus accrued in 2016 which were elected to be settled in shares, the Company issued shares to settle all the Share-Settled Bonus as of December 31, 2017. |
Loss per share | (z) Loss per share In accordance with ASC Topic 260, Earnings per Share (“ASC 260”), basic loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted average number of unrestricted ordinary shares outstanding during the year. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Contingently issuable shares, including performance-based share awards and contingent considerations to be settled in shares, are included in the computation of basic earnings per share only when there is no circumstance under which those shares would not be issued. Contingently issuable shares are included in the denominator of the diluted loss per share calculation as of the beginning of the period or as of the inception date of the contingent share arrangement, if later, only when dilutive and when all the necessary conditions have been satisfied as of the reporting period end. For contracts that may be settled in ordinary shares or in cash at the election of the Company, share settlement is presumed, pursuant to which incremental shares relating to the number of shares that would be required to settle the contract are included in the denominator of diluted loss per share calculation if the effect is more dilutive. For the contracts that may be settled in ordinary shares or in cash at the election of the counterparty, the more dilutive option of cash or share settlement is used for the purposes of diluted loss per share calculation, pursuant to which share settlement requires the number of shares that would be required to settle the contract be included in the denominator whereas cash settlement requires an adjustment to be made to the numerator for any changes in income or loss that would result as if the contract had been classified as an asset or a liability for accounting purposes during the period for a contract that is classified as equity for accounting purposes, if the effect is more dilutive. Ordinary equivalent shares consist of the ordinary shares issuable upon the exercise of the share options, using the treasury stock method. Ordinary share equivalents are excluded from the computation of diluted loss per share if their effects would be anti-dilutive. |
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 ending 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 (“ASC 505‑30”), and the share repurchase is shown separately in the consolidated statement of shareholder’s equity, as the Company has not yet decided on the ultimate disposition of those ADSs acquired. When the Company decides to retire the treasury stock, the difference between the original issuance price and the repurchase price is debited into accumulated deficit. For the years ended December 31, 2017, 2018 and 2019, the Company repurchased 3,448,482, nil and 242,830 ADSs for a consideration of RMB133,126, nil and RMB11,840 (US$1,701), respectively. |
Comprehensive loss | (bb) Comprehensive loss Comprehensive loss is defined as the decrease in equity of the Company during a period from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive income of the Company includes only foreign currency translation adjustments related to the Company and its overseas subsidiaries, whose functional currency is US$. |
Segment reporting | (cc) Segment reporting In accordance with ASC Topic 280 , Segment Reporting (“ASC 280”), the Company historically had two 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 and managed network services separately when making decisions on allocating resources and assessing performance of the Company. Hosting and related services business focuses primarily on colocation, interconnectivity, cloud, VPN, hybrid IT and other value-added services. Managed network services focuses on businesses that primarily utilize bandwidth such as content delivery network (“CDN”) service, hosting area network services and last-mile wired broadband service. In September 2017, the Company disposed WiFire Entities and Aipu Group, which are primarily engaged in the managed network services. After the disposal, the Company has only one hosting and related services remained and the CODM reviews the operation result of the Company as a whole. As of December 31, 2018 and 2019, the Company only had one reporting segment. |
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. |
ORGANIZATION (Tables)
ORGANIZATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ORGANIZATION | |
Schedule of significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | (a) As of December 31, 2019, the significant subsidiaries of the Company and consolidated variable interest entities are as follows: Entity Date of Place of Percentage Principal activities Direct Subsidiaries: 21ViaNet Group Limited May 25, 2007 Hong Kong % Investment holding 21Vianet Data Center Co., Ltd. (“21Vianet China”) (1) June 12, 2000 PRC % Provision of technical and consultation services and rental of long-lived assets 21Vianet (Foshan) Technology Co.,Ltd. (“FS Technology”) (1) December 20, 2011 PRC % Trading of network equipment, provision of technical and internet data center services 21Vianet Anhui Suzhou Technology Co.,Ltd. (“SZ Technology”) (1) November 16, 2011 PRC % Trading of network equipment 21Vianet Hangzhou Information Technology Co., Ltd. (“HZ Technology”) (1) March 4, 2013 PRC % Provision of internet data center services 21Vianet Mobile Limited (“21V Mobile”) April 30, 2013 Hong Kong % Investment holding and provision of telecommunication services Joytone Infotech Co., Ltd. (“SZ Zhuoaiyi”) (1) April 30, 2013 PRC % Provision of technical and consultation services 21Vianet Ventures Limited ("Ventures") March 6, 2014 Hong Kong % Investment holding Abitcool (China) Broadband Inc. (“aBitCool DG”) (1) June 13, 2014 PRC % Dormant company Diyixian.com Limited (“DYX”) August 10, 2014 Hong Kong % Provision of virtual private network services 21Vianet Zhuhai Financial Leasing Co., Ltd. (“Zhuhai Financial Leasing”) (1) April 9, 2015 PRC % Provision of finance leasing business services 21Vianet DRP Investment Holdings Limited (“DRP investment”) January 10, 2017 Hong Kong % Investment holding Entity Date of Place of Percentage Principal activities Direct Shihua DC Investment Holdings Limited (“Shihua Investment”) March 14, 2017 Cayman Islands % Investment holding 21Vianet (Xi’an) Technology Co., Ltd. July 5, 2012 PRC % Provision of technical and internet data center services Foshan Zhuoyi Intelligence Data Co., Ltd. (“FS Zhuoyi”) (1) July 7, 2017 PRC % Provision of internet data center services Beijing Hongyuan Network Technology Co., Ltd. ("BJ Hongyuan") (1) December 8, 2014 PRC % Provision of internet data center services Dermot Holdings Limited August 8, 2014 British Virgin Islands % Investment holding Shihua DC Investment Holdings 2 Limited(“Shihua Holdings 2”) (4) August 20, 2019 Cayman Islands % Investment holding Shanghai Waigaoqiao Free Trade Zone Hongming Logistics Co., Ltd. (“Hongming Logistics”) (1)/(4) August 20, 2019 PRC % Provision of internet data center services Variable Interest Entities (the “VIEs”): Beijing Yiyun Network Technology Co., Ltd. (“21Vianet Technology”) (1) /(2) October 22, 2002 PRC — Provision of internet data center services Beijing iJoy Information Technology Co., Ltd. (“BJ iJoy”) (1) / (2) April 30, 2013 PRC — Provision of internet data center, content delivery network services WiFire Network Technology (Beijing) Co., Ltd. (“WiFire Network”) (1) / (2) April 1, 2014 PRC — Provision of telecommunication services Held directly by 21Vianet Technology: Beijing 21Vianet Broad Band Data Center Co., Ltd. (“21Vianet Beijing”) (1) / (2) March 15, 2006 PRC — Provision of internet data center services Held directly by 21Vianet Beijing: 21Vianet (Xi’an) Information Outsourcing Industry Park Services Co., Ltd. June 23, 2008 PRC — Provision of internet data center services Langfang Xunchi Computer Data Processing Co., Ltd. December 19, 2011 PRC — Dormant company Shanghai Blue Cloud Technology Co., Ltd. (“SH Blue Cloud”) (1) / (2) March 21, 2013 PRC — Provision of Office 365 and Windows Azure platform services Beijing Yichengtaihe Investment Co., Ltd. September 30, 2014 PRC — Provision of internet data center services Entity Date of Place of Percentage Principal activities Direct Guangzhou Lianyun Big Data Co. Ltd.(1)/(2) April 14, 2016 PRC — Provision of internet data center services Beijing Xianghu Yunlian Technology Co., Ltd. (“Xianghu Yunlian”)(1)/(2) November 7, 2018 PRC — Provision of internet data center services Shanghai Hujiang Songlian Technology Co., Ltd.(“Hujiang Songlian”)(1)/(2) December 17, 2018 PRC — Provision of internet data center services Beijing Shuhai Hulian Technology Co., Ltd. (“BJ Shuhai”)(1)/(2) January 2, 2019 PRC — Provision of internet data center services Nantong Chenghong Cloud Computing Co., Ltd. (“NT Chenghong”) (1)/(2) December 19, 2019 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 % 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 (Note 4). |
Schedule of consolidated VIE before eliminating intercompany balances | The following tables represent the financial information of the Consolidated VIEs as of December 31, 2018 and 2019 and for the years ended December 31, 2017, 2018 and 2019 before eliminating the intercompany balances and transactions between the Consolidated VIEs and other entities within the Company: As of December 31, 2018 2019 RMB RMB US$ ASSETS Current assets: Cash and cash equivalents 548,921 591,503 84,964 Restricted cash 203,103 260,961 37,485 Accounts receivable (net of allowance for doubtful debt of RMB69,723 and RMB66,416 (US$9,540) as of December 31, 2018 and 2019, respectively) 375,515 513,440 73,751 Short-term investments 94,000 — — Prepaid expenses and other current assets 1,013,563 1,371,564 197,013 Amounts due from related parties 123,726 57,982 8,328 Total current assets 2,358,828 2,795,450 401,541 Non-current assets: Property and equipment, net 3,103,995 3,580,341 514,284 Intangible assets, net 47,121 151,722 21,794 Land use rights, net 60,078 58,588 8,416 Operating lease right-of-use assets, net — 1,144,846 164,447 Goodwill 302,647 302,647 43,473 Restricted cash 33,729 66,119 9,497 Deferred tax assets 156,412 180,959 25,993 Amounts due from related parties 13,514 20,654 2,967 Other non-current assets 162,392 262,685 37,732 Long-term investments 219,005 189,571 27,230 Total non-current assets 4,098,893 5,958,132 855,833 Total assets 6,457,721 8,753,582 1,257,374 Current liabilities: Short-term bank borrowings 50,000 232,323 33,371 Accounts and notes payable 258,048 211,710 30,410 Accrued expenses and other payables 392,619 622,160 89,368 Advance from customers 670,037 1,068,692 153,508 Deferred revenue 51,026 52,088 7,482 Income tax payable 8,519 8,175 1,174 Amounts due to inter-companies (1) 2,117,097 2,786,838 400,304 Amounts due to related parties 51,763 56,977 8,184 Current portion of finance lease liabilities 219,695 220,363 31,653 Current portion of long-term bank borrowings 75,284 32,500 4,668 Deferred government grants 4,173 2,595 373 Current portion of operating lease liabilities — 410,422 58,953 Total current liabilities 3,898,261 819,448 As of December 31, 2018 2019 RMB RMB US$ Non-current liabilities: Amounts due to inter-companies (1) 1,020,972 1,020,972 146,653 Amounts due to related parties 504,478 745,899 107,142 Long-term bank borrowings 112,000 79,500 11,419 Non-current portion of finance lease liabilities 852,287 549,669 78,955 Unrecognized tax benefits 4,938 1,991 286 Deferred tax liabilities 84,568 82,725 11,883 Deferred government grants 11,619 5,906 848 Non-current portion of operating lease liabilities — 529,546 76,064 Total non-current liabilities 2,590,862 3,016,208 433,250 Total liabilities 6,489,123 8,721,051 1,252,698 For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net revenues 2,578,893 2,532,854 2,858,176 410,551 Net (loss) profit (567,395) 52,986 111,592 16,029 For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net cash generated from operating activities 448,051 693,620 495,308 71,147 Net cash (used in) generated from investing activities (604,507) 132,522 (1,247,764) (179,230) Net cash generated from (used in) financing activities 230,921 (423,467) 885,286 127,163 Net increase in cash and cash equivalents and restricted cash 74,465 402,705 132,830 19,080 (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, 2019 | |
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 5.1 years Radio spectrum license 15 years Operating permits* 31.9 years Contract backlog* 4.9 years Customer relationships* 8.8 years Licenses* 15 years Supplier relationships* 10 years Trade Names* 20 years Platform software* 5 years Non-complete agreements* 5 years Internal use software 4 years * |
Schedule of impairment charges associated with long-lived assets and acquired intangibles | For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Impairment of equipment 237,956 — — — Impairment of intangible assets 163,852 — — — |
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, 2017, 2018 and 2019, was as follows: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Interest expense and amortization cost of bonds payable 63,354 150,098 223,832 32,151 Interest expense on bank borrowings 87,916 19,395 14,212 2,041 Interest expense on finance lease 63,757 79,935 120,185 17,263 Total interest costs 215,027 249,428 358,229 51,455 Less: Total interest costs capitalized (29,714) (13,362) (12,274) (1,762) Interest expense, net 185,313 236,066 345,955 49,693 |
ACQUISITION AND DISPOSAL OF S_2
ACQUISITION AND DISPOSAL OF SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Beijing Shuhai Data Technology Co., Ltd ("BJ Shuhai") | |
Business Acquisition [Line Items] | |
Schedule of net identifiable assets of acquiree | RMB US$ Net assets acquired: Operating permits (Note 9) 100,380 14,419 Cash and cash equivalents 59 8 Other current assets 9,625 1,383 Right-of-use assets 129,937 18,664 Other current liabilities (16,714) (2,401) Lease liabilities (129,937) (18,664) Deferred tax liabilities (25,095) (3,605) Total consideration in cash 68,255 9,804 |
Shihua DC Investment Holdings 2 Limited ("Shihua Holdings 2") | |
Business Acquisition [Line Items] | |
Schedule of net identifiable assets of acquiree | RMB US$ Net assets acquired: Property and land use right 150,880 21,672 Construction-in-progress 465 67 Cash and cash equivalents 67,563 9,705 Other current assets 1,333,329 191,521 Other current liabilities (1,203,894) (172,929) Deferred tax liabilities (33,096) (4,754) Total consideration* 315,247 45,282 * |
Nantong Chenghong Cloud Computing Co., Ltd. ("NT Chenghong") | |
Business Acquisition [Line Items] | |
Schedule of net identifiable assets of acquiree | RMB US$ Net assets acquired: Construction-in-progress 158,471 22,763 Equipment 13 2 Cash and cash equivalents 129 18 Other current assets 11,840 1,701 Other current liabilities (88,830) (12,760) Deferred tax liabilities (1,623) (233) Total consideration in cash 80,000 11,491 |
ACCOUNTS AND NOTES RECEIVABLE_2
ACCOUNTS AND NOTES RECEIVABLE, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCOUNTS AND NOTES RECEIVABLE, NET | |
Schedule of accounts and notes receivable and the allowance for doubtful debt | As of December 31, 2018 2019 RMB RMB US$ Accounts receivable 592,669 722,840 103,830 Notes receivable 2,606 2,146 308 Allowance for doubtful debt (70,970) (67,828) (9,743) 524,305 657,158 94,395 |
Schedule of analysis of the allowance for doubtful debt | As of December 31, 2018 and 2019, 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, 2018 2019 RMB RMB US$ Balance at beginning of the year 73,656 70,970 10,194 Additional provision charged to expense 315 485 70 Write-off of accounts receivable (3,001) (3,627) (521) Balance at the end of the year 70,970 67,828 9,743 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHORT-TERM INVESTMENTS | |
Schedule of short-term investments | Short-term investments consisted of the following as of December 31, 2018 and 2019: As of December 31, 2018 2019 RMB RMB US$ Time deposits 245,014 363,856 52,265 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |
Schedule of prepaid expenses and other current assets | As of December 31, 2018 2019 RMB RMB US$ Prepaid expenses 565,710 878,155 126,139 Tax recoverables 421,654 570,913 82,007 Staff advances 10,730 1,866 268 Interest receivables 12,037 14,359 2,063 Deposits 39,971 17,391 2,498 Loan to third parties 58,909 73,557 10,565 Others 50,563 61,908 8,893 1,159,574 232,433 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PROPERTY AND EQUIPMENT, NET | |
Schedule of property and equipment, including those held under finance leases | As of December 31, 2018 2019 RMB RMB US$ At cost: Property 753,319 899,609 129,221 Leasehold improvements 932,896 1,458,749 209,536 Computer and network equipment 3,260,336 3,539,709 508,447 Optical fibers 142,723 142,723 20,501 Office equipment 24,390 22,102 3,175 Motor vehicles 1,841 2,308 331 5,115,505 6,065,200 871,211 Less: Accumulated depreciation (1,870,640) (2,514,800) (361,228) 3,244,865 3,550,400 509,983 Construction-in-progress 786,377 1,893,165 271,936 4,031,242 5,443,565 781,919 |
Schedule of depreciation expense | For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Cost of revenues 458,655 520,791 644,108 92,520 Sales and marketing expenses 3,188 986 2,107 303 General and administrative expenses 41,675 28,727 30,110 4,325 Research and development expenses 19,982 15,987 20,203 2,902 523,500 566,491 696,528 100,050 |
Schedule of carrying amounts of the Company's property and equipment held under finance leases | As of December 31, 2018 2019 RMB RMB US$ Property 365,353 365,353 52,480 Computer and network equipment 719,676 639,311 91,831 Optical fibers 142,723 142,723 20,501 1,227,752 1,147,387 164,812 Less: Accumulated depreciation (291,579) (408,196) (58,634) 936,173 739,191 106,178 Construction-in-progress 576,022 659,014 94,661 1,512,195 1,398,205 200,839 |
Schedule of carrying amounts of property and equipment pledged by the Company to secure banking borrowings | As of December 31, 2018 2019 RMB RMB US$ Property 140,393 137,585 19,763 Leasehold improvements 71,337 66,162 9,504 Computer and network equipment 74,822 — — Office equipment 44 — — |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INTANGIBLE ASSETS, NET | |
Summary of intangible assets | Radio Internal Purchased spectrum Operating Contract Customer Supplier Trade Platform Non-compete use software license Permits backlog relationships Licenses relationships names software agreements software Total RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB RMB Intangible assets, net January 1, 2018 50,629 77,141 — 11,750 137,882 4,268 20,144 96,404 683 154 2,060 401,115 Additions 18,744 — — — — — — — — — 6,093 24,837 Disposals (6,772) — — — — — — — — — — (6,772) Foreign currency translation difference 364 3,884 — — — — — — — — — 4,248 Amortization expense (15,711) (8,117) — (6,588) (24,921) (385) (3,074) (5,813) (683) (110) (2,713) (68,115) Intangible assets, net December 31, 2018 47,254 72,908 — 5,162 112,961 3,883 17,070 90,591 — 44 5,440 355,313 Additions 11,128 — 100,380 — — — — — — — 13,189 124,697 Foreign currency translation difference 413 1,200 — — — — — — — — — 1,613 Amortization expense (16,068) (8,985) (3,136) (5,162) (24,921) (385) (3,074) (5,813) — (44) (3,440) (71,028) Intangible assets, net December 31, 2019 42,727 65,123 97,244 — 88,040 3,498 13,996 84,778 — — 15,189 410,595 Intangible assets, net December 31, 2019 (US$) 6,137 9,354 13,968 — 12,646 503 2,010 12,178 — — 2,182 58,978 |
Summary of annual estimated amortization expenses of intangible assets | RMB US$ 2020 59,115 8,491 2021 55,400 7,958 2022 50,005 7,183 2023 34,274 4,923 2024 13,820 1,985 212,614 30,540 |
LAND USE RIGHTS, NET (Tables)
LAND USE RIGHTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LAND USE RIGHTS, NET | |
Land use rights | As of December 31, 2018 2019 RMB RMB US$ Cost 159,494 249,804 35,882 Accumulated amortization (12,001) (16,650) (2,392) Land use rights, net 147,493 233,154 33,490 |
Carrying value of land use rights pledged by company to secure banking borrowings | As of December 31, 2018 2019 RMB RMB US$ Land use rights 16,403 15,989 2,297 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL | |
Schedule of Goodwill | For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Balance as of January 1 1,755,970 989,530 989,530 142,137 Impairment (766,440) — — — Balance as of December 31 989,530 989,530 989,530 142,137 |
LONG-TERM INVESTMENTS (Tables)
LONG-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LONG-TERM INVESTMENTS | |
Long Term Investments | As of December 31, 2018 2019 RMB RMB US$ Equity investments without readily determinable fair values 51,410 43,824 6,295 Equity method investments 490,376 124,116 17,828 Available-for-sale debt investments 2,537 1,713 246 544,323 24,369 |
Equity Method Investments | Equity method investments: Increase (decrease) during the year ended As of December 31, 2017 December 31, 2018 As of December 31, 2018 Share Investments Share Investments Investments Cost of equity in equity Cost of Share Derecognize of Cost of equity gain in equity in equity investments gain (loss) investee investments equity loss share equity loss investments (loss) investee investee RMB RMB RMB RMB RMB RMB RMB RMB RMB US$ Yizhuang Fund 101,000 176,036 277,036 — (150,355) — 101,000 25,681 126,681 18,425 Unis Tech 49,000 (12,961) 36,039 (49,000) (3,548) 16,509 — — — — Shihua DC Holdings 147,176 (9,429) 137,747 219,447 (24,229) — 366,623 (33,658) 332,965 48,428 Jingliang Inter Cloud — — — 6,000 (34) — 6,000 (34) 5,966 868 Jingliang Century Cloud — — — 4,000 — — 4,000 — 4,000 582 Huaye Cloud — — — 23,333 (6,319) — 23,333 (6,319) 17,014 2,474 ZJK Energy — — — 5,907 (2,157) — 5,907 (2,157) 3,750 545 WiFire Entities 15,000 (15,000) — — — — 15,000 (15,000) — — 312,176 138,646 450,822 209,687 (186,642) 16,509 521,863 (31,487) 490,376 71,322 Increase (decrease) during the year ended As of December 31, 2018 December 31, 2019 As of December 31, 2019 Share Investments Share Distribution/derecognize Share Investments Investments Cost of equity in equity Cost of equity gain of share Cost of equity gain in equity in equity investments gain (loss) investee investments (loss) equity (gain) loss investments (loss) investee investee RMB RMB RMB RMB RMB RMB RMB RMB RMB US$ Yizhuang Fund 101,000 25,681 126,681 — 1,671 (20,200) 101,000 7,152 108,152 15,535 Shihua DC Holdings 366,623 (33,658) 332,965 (337,555) (17,718) 22,308 29,068 (29,068) — — Jingliang Inter Cloud 6,000 (34) 5,966 — (1,894) — 6,000 (1,928) 4,072 585 Jingliang Century Cloud 4,000 — 4,000 — — — 4,000 — 4,000 575 Huaye Cloud 23,333 (6,319) 17,014 (23,333) (11,534) 17,853 — — — — ZJK Energy 5,907 (2,157) 3,750 — 212 — 5,907 (1,945) 3,962 569 WiFire Entities 15,000 (15,000) — 5,000 (5,000) — 20,000 (20,000) — — Qidi Chengxin — — — 3,930 — — 3,930 — 3,930 564 521,863 (31,487) 490,376 (351,958) (34,263) 19,961 169,905 (45,789) 124,116 17,828 |
BANK BORROWINGS (Tables)
BANK BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BANK BORROWINGS | |
Summary of Bank Borrowings | As of December 31, 2018 2019 RMB RMB US$ Short-term bank borrowings 50,000 234,500 33,684 Long-term bank borrowings, current portion 75,284 32,500 4,668 125,284 267,000 38,352 Long-term bank borrowings, non-current portion 112,000 79,500 11,419 Total bank borrowings 237,284 346,500 49,771 |
Secured Short Term Bank Borrowings | Bank borrowings as of December 31, 2018 and 2019 were secured by the following: December 31, 2018 Short-term bank borrowings Secured by (RMB) Secured by restricted cash of RMB60,796. Long-term bank borrowings (including current portion) Secured by (RMB) Secured by a subsidiary’s fixed assets and land-use right with net book value of RMB286,596 and RMB16,403, respectively (Note 8/Note 10). Unsecured borrowings. December 31, 2019 Short-term bank borrowings Secured by (RMB) 34,500 Unsecured borrowings. 200,000 Secured by restricted cash of RMB215,816 (US$31,000). 234,500 Long-term bank borrowings (including current portion) Secured by (RMB) Secured by a subsidiary’s fixed assets and land-use right with net book value of RMB203,747 (US$29,267) and RMB15,989 (US$2,297), respectively (Note 8/Note 10). 112,000 |
ACCRUED EXPENSES AND OTHER PA_2
ACCRUED EXPENSES AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCRUED EXPENSES AND OTHER PAYABLES | |
Components of Accrued Expenses and Other Payables | As of December 31, 2018 2019 RMB RMB US$ Payroll and welfare payables 224,265 179,195 25,740 Value-added tax and other taxes payable 16,931 14,523 2,086 Payables for office supplies and utilities 21,719 24,562 3,528 Payables for the purchase of property and equipment 207,512 551,759 79,255 Payables for the purchase of intangible assets 4,576 2,934 421 Accrued service fees 41,618 52,746 7,576 Interest payables 54,376 58,961 8,469 Liability classified RSU 4,970 2,109 303 Payables for acquisitions 47,755 47,805 6,867 Others 35,598 44,341 6,368 659,320 978,935 140,613 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
Schedule of total lease cost | For the year ended December 31, 2019 RMB US$ Lease cost Finance lease cost: Depreciation 216,664 31,122 Interest expenses 120,185 17,263 Operating lease cost 214,795 30,853 Total lease cost 551,644 79,238 |
Schedule of supplemental cash flow information related to leases | 2019 RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash payments for operating leases 193,174 27,748 Financing cash payments for finance leases 333,614 47,921 |
Schedule of future lease payments under operating leases | Future lease payments under operating leases and finance leases as of December 31, 2019 were as follows: Operating Leases Finance Leases RMB US$ RMB US$ 2020 466,670 67,033 364,729 52,390 2021 373,552 53,657 386,027 55,449 2022 160,644 23,075 377,564 54,234 2023 87,028 12,501 122,947 17,660 2024 47,484 6,821 121,008 17,382 2025 and thereafter 647,419 92,996 1,880,687 270,144 Total future lease payments 1,782,797 256,083 3,252,962 467,259 Less: Imputed interest (533,376) (76,615) (1,563,446) (224,575) Present value of future lease payments * 1,249,421 179,468 1,689,516 242,684 |
Schedule of future lease payments under finance leases | 2019 RMB US$ Cash paid for amounts included in the measurement of lease liabilities: Operating cash payments for operating leases 193,174 27,748 Financing cash payments for finance leases 333,614 47,921 Future lease payments under operating leases and finance leases as of December 31, 2019 were as follows: Operating Leases Finance Leases RMB US$ RMB US$ 2020 466,670 67,033 364,729 52,390 2021 373,552 53,657 386,027 55,449 2022 160,644 23,075 377,564 54,234 2023 87,028 12,501 122,947 17,660 2024 47,484 6,821 121,008 17,382 2025 and thereafter 647,419 92,996 1,880,687 270,144 Total future lease payments 1,782,797 256,083 3,252,962 467,259 Less: Imputed interest (533,376) (76,615) (1,563,446) (224,575) Present value of future lease payments * 1,249,421 179,468 1,689,516 242,684 |
BONDS PAYABLE (Tables)
BONDS PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BONDS PAYABLE | |
Repayments of Principal Amounts of Long-Term Borrowings, Including Bonds Payable, Bank and Other Borrowings | RMB US$ For the years ending December 31, 2020 947,505 136,100 2021 2,131,860 306,223 2022 40,500 5,817 2023 and thereafter — — |
DEFERRED GOVERNMENT GRANTS (Tab
DEFERRED GOVERNMENT GRANTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DEFERRED GOVERNMENT GRANTS | |
Movements of Deferred Government Grants | For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Balance at beginning of the year 30,993 22,435 15,792 2,268 Additions 2,877 500 — — Decrease due to disposal of subsidiaries (3,573) — — — Recognized as a reduction of depreciation expense (7,862) (7,143) (7,291) (1,047) Balance at end of the year 22,435 15,792 8,501 1,221 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | |
Changes in Accumulated Other Comprehensive Income by Component, Net of Tax of Nil | Foreign currency translation RMB Balance as of January 1, 2017 118,290 Current year other comprehensive income (120,963) Balance as of December 31, 2017 (2,673) Current year other comprehensive loss 88,652 Balance as of December 31, 2018 85,979 Current year other comprehensive income (8,075) Balance as of December 31, 2019 77,904 Balance as of December 31, 2019, in US$ 11,190 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION | |
Summary of Employee Share Option Activity Under Twenty Ten Plan | Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term value (US$) (Years) (US$) Outstanding, January 1, 2019 1,479,214 0.51 2.2 Exercised (33,869) 0.55 Outstanding, December 31, 2019 1,445,345 0.51 1.3 1,005 Vested and expected to vest at December 31, 2019 1,445,345 0.51 1.3 1,005 Exercisable as of December 31, 2019 1,445,345 0.51 1.3 1,005 |
Restricted Stock Units Activity | Weighted Weighted average average Aggregate Number of grant date remaining intrinsic RSUs fair value contractual life value (US$) (Years) (US$) Unvested, January 1, 2019 3,218,452 6.66 9 Granted 544,120 7.67 Vested (856,051) 7.22 Forfeited (210,392) 6.52 Unvested, December 31, 2019 2,696,129 6.83 7.8 19,547 |
Total Compensation Expense Recognized Relating to Options Granted to Employees | Total share-based compensation expenses relating to share options and RSUs granted to employees recognized for the years ended December 31, 2017, 2018 and 2019 were as follows: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Cost of revenues (277) 2,668 1,884 271 Sales and marketing expenses (681) 2,139 354 51 General and administrative expenses 47,945 53,346 40,501 5,817 Research and development expenses 142 1,385 1,177 169 47,129 59,538 43,916 6,308 |
TAXATION (Tables)
TAXATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
TAXATION | |
Profit or Loss Before Income Taxes | For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Non-PRC (286,388) (214,063) (178,762) (25,676) PRC (721,426) 51,738 2,953 424 (1,007,814) (162,325) (175,809) (25,252) |
Income Tax (Expense) Benefits | For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Current (37,856) (44,187) (70,324) (10,101) Deferred 128,026 19,776 64,887 9,320 90,170 (24,411) (5,437) (781) |
Reconciliation Tax Computed Applying Statutory Income Tax Rate | The reconciliation of tax computed by applying the statutory income tax rate of 25% for the years ended December 31, 2017, 2018 and 2019 applicable to the PRC operations to income tax benefits (expenses) were as follows: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Loss before income taxes (1,007,814) (162,325) (175,809) (25,252) Income tax benefits computed at applicable tax rates (25%) 251,954 40,581 43,952 6,313 Non-deductible expenses (5,468) (2,834) (23,082) (3,316) Research and development expenses 11,895 25,906 19,688 2,829 Preferential rate (90,076) 11,701 20,213 2,903 Current and deferred tax rate differences 33,366 37,934 (8,699) (1,250) International rate differences 59,029 (63,525) (77,066) (11,069) Tax exempted income — — 754 108 Unrecognized tax benefits (6,259) 1,472 1,728 248 Deferred tax expense 2,851 — — — Change in valuation allowance (174,388) (79,694) 25,423 3,652 Prior year provision to return true up 7,266 4,048 (8,348) (1,199) Income tax benefits (expenses) 90,170 (24,411) (5,437) (781) |
Significant Components of Deferred Taxes | As of December 31, 2018 2019 RMB RMB US$ Deferred tax assets Non-current Allowance for doubtful debt 38,993 48,568 6,976 Accrued expenses 25,894 21,139 3,036 Tax losses 151,440 146,996 21,115 Property and equipment 15,299 20,567 2,955 Intangible assets 2,221 3,691 530 Finance lease 50,980 69,148 9,932 Deferred government grant 2,662 1,189 171 Loss picked up on equity method investments 56,616 56,706 8,145 Valuation allowance (184,664) (158,638) (22,786) Total deferred tax assets 159,441 209,366 30,074 Deferred tax liabilities Non-current Intangible assets 89,536 104,217 14,970 Property and equipment 48,496 81,424 11,696 Capitalized interest expense 15,837 15,146 2,176 Gain picked up from equity method investments 3,851 1,785 256 Total non-current deferred tax liabilities 157,720 202,572 29,098 |
Unrecognized Tax Benefits | For the years ended December 31, 2018 2019 RMB RMB US$ Balance at beginning of year 11,582 4,509 647 Reversal based on tax positions related to prior years (9,070) (3,266) (469) Additions based on tax positions related to the current year 1,997 479 69 Balance at end of year 4,509 1,722 247 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions | Other than disclosed elsewhere, the Company had the following significant related party transactions for the years ended December 31, 2017, 2018 and 2019: For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Services provided to: - Xiaomi Group 220,110 374,085 437,694 62,871 - Taiji — 13,681 7,899 1,135 - Qidi Tech — — 7,427 1,067 - BJ Kingsoft 8,046 6,281 3,475 499 - WiFire BJ 9,726 16,490 1,934 278 - BJ Cheetah 5,128 2,079 169 24 - Unisvnet — 1,011 — — - Others 3,314 4,493 1,494 215 Services provided by: - CYSD 2,979 18,667 38,918 5,590 - Taiji — 7,095 19,942 2,865 - Jingliang Inter Cloud — 3,477 8,829 1,268 - BJ Kingsoft 7,775 13,204 3,492 502 - DCSS 6,424 5,238 — — - BZRH — 4,239 — — - WiFire BJ 1,616 4,066 — — - Others 2,632 6,396 5,866 843 Sales of equipment to: - BJ Fastweb 1,021 — — — Purchases of equipment from: - WNT Technology 2,629 — — — - DIC 1,234 — — — Loan to: - Taiji — — 1,500 215 - BJ Fastweb 20,000 — — — Interest income from loan to: - BJ Fastweb 210 700 700 101 Lease deposit paid to: - Ziguang Finance Leasing — 2,042 6,154 884 - Tuspark Harmonious — 11,472 — — Lease payment paid to: - Tuspark Harmonious — — 68,832 9,887 - Ziguang Finance Leasing — 4,897 17,156 2,464 |
Related Party Balances | As of December 31, 2018 2019 RMB RMB US$ Amounts due from related parties: Current: -Marble SH (2) — 100,106 14,379 -Shihua Investment Group (3) — 82,542 11,856 - Xiaomi Group 41,159 39,778 5,714 -Marble Holdings (2) — 29,736 4,271 -Shihua Investment Management (3) — 27,905 4,008 - SH Shibei 9,800 9,800 1,408 - Taiji 13,542 9,499 1,364 -Qidi Tech — 1,249 179 - WiFire BJ (1) 36,578 — — - SH Fawei (1) 13,742 — — - WH Fastweb (1) 5,131 — — - Unisvnet 1,072 — — - BJ Kingsoft 982 — — - Others 3,440 1,050 152 125,446 301,665 43,331 Non-current: - Tuspark Harmonious 11,472 11,863 1,704 - Ziguang Finance Leasing 2,042 8,195 1,177 - BJ Fastweb (1) 20,910 — — -Others — 596 86 34,424 20,654 2,967 Amounts due to related parties: Current: -Shihua Investment Group (3) — 84,021 12,069 - Ziguang Finance Leasing 8,938 27,160 3,901 -Shihua Investment Management (3) — 22,484 3,230 - Tuspark Harmonious 13,850 24,917 3,579 - WiFire BJ (1) — 6,330 909 - BJ Kingsoft 609 1,073 154 - SH Guotong (1) 8,135 — — - CYSD (1) 7,158 — — - Taiji 6,724 — — - BZRH (1) 5,088 — — - Others 1,826 950 137 52,328 166,935 23,979 Non-current: - Tuspark Harmonious 443,622 698,511 100,335 - Ziguang Finance Leasing 12,527 47,388 6,807 - Shihua Holdings 2 48,329 — — 504,478 745,899 107,142 (1) As of December 31, 2019, RMB20,367 (US$2,926) of amounts due from/to WiFire Entities were offset according to the multi-party debt offset agreement signed in 2019. The remaining RMB52,142 (US$7,490) of amounts due from WiFire Entities was fully impaired considering low collectability. (2) Amounts due from Marble SH and Marble Holdings represented the unpaid cash consideration to the Company for acquiring the 100% equity interest in Shihua Holdings 2’s some subsidiaries (Note 4). (3) Amounts due from/to Shihua Investment Management and Shihua Invesetment Group were generated from the assets acquisition of Shihua Holdings 2 (Note 4). |
Parent Company | |
Related Party Transactions | The Company had the following related party balances as of December 31, 2018 and 2019: As of December 31, 2018 2019 RMB RMB US$ Amounts due from subsidiaries - 21Vianet HK 4,938,618 5,855,452 841,083 - WiFire Open Network Group Ltd. 4,277 147,326 21,162 - HongKong Fastweb Holdings Co., Ltd. 65,976 67,088 9,637 - 21V Mobile 52,579 58,018 8,334 - WiFire Group Inc. 686 698 100 - Others 13 13 2 5,062,149 6,128,595 880,318 Amounts due to subsidiaries - 21Vianet Beijing 18,351 19,449 2,794 - Others 2,891 3,022 434 21,242 22,471 3,228 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT REPORTING | |
Summary of Segment Results | For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Hosting and related services Revenues 2,975,178 3,401,037 3,788,967 544,251 Cost (2,130,279) (2,456,166) (2,849,518) (409,308) Gross profit 844,899 944,871 939,449 134,943 Operating income (expenses) Operating income 5,439 5,027 6,862 986 Sales and marketing expenses (171,761) (172,176) (206,309) (29,634) Research and development expenses (97,597) (92,109) (88,792) (12,754) General and administrative expenses (417,154) (462,637) (415,277) (59,651) (Allowance) reversal for doubtful debt (6,257) 598 (1,557) (224) Impairment of receivables from equity investees — — (52,142) (7,490) Changes in the fair value of contingent purchase consideration payables (937) 13,905 — — Operating profit 156,632 237,479 182,234 26,176 Managed network services Revenues 417,527 — — — Cost (504,016) — — — Gross loss (86,489) — — — Operating expenses — — Sales and marketing expenses (84,921) — — — Research and development expenses (51,546) — — — General and administrative expenses (102,796) — — — Allowance for doubtful debt (31,170) — — — Impairment of goodwill (766,440) — — — Impairment of long-lived assets (401,808) — — — Operating loss (1,525,170) — — — Group consolidated revenue 3,392,705 3,401,037 3,788,967 544,251 Group consolidated operating (loss) profit (1,368,538) 237,479 182,234 26,176 |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LOSS PER SHARE | |
Basic and Diluted Loss Per Share | For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Numerator: Net loss (917,644) (186,736) (181,246) (26,033) Net loss (profit) attributable to noncontrolling interest and redeemable noncontrolling interest 144,914 (18,329) (1,046) (150) Net loss attributable to ordinary shareholders (772,730) (205,065) (182,292) (26,183) Plus increase in accretion of redeemable noncontrolling interests (141,896) — — — Adjusted net loss attributable to ordinary shareholders (914,626) (205,065) (182,292) (26,183) Denominator: Weighted average number of shares outstanding—basic 672,836,226 674,732,130 668,833,756 668,833,756 Weighted average number of shares outstanding—diluted 672,836,226 674,732,130 668,833,756 668,833,756 Loss per share—Basic: Net loss (1.36) (0.30) (0.27) (0.04) (1.36) (0.30) (0.27) (0.04) Loss per share—Diluted: Net loss (1.36) (0.30) (0.27) (0.04) (1.36) (0.30) (0.27) (0.04) |
REDEEMABLE NONCONTROLLING INT_2
REDEEMABLE NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REDEEMABLE NONCONTROLLING INTERESTS | |
Redeemable Non Controlling Interests | For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Balance as of January 1 700,000 — — — Loss for the year (141,896) — — — Increase in accretion of redeemable noncontrolling interests 141,896 — — — Reversal due to extinguishment of put option (700,000) — — — Balance as of December 31 — — — — |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
Assets and Liabilities Measured at Fair Value on 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, 2018 RMB RMB RMB RMB Cash equivalents: - Time deposits 1,194,425 — — 1,194,425 Short-term investments: - Time deposits 245,014 — — 245,014 Long-term investments - Available-for-sale debt securities — — 2,537 2,537 Assets 1,439,439 — 2,537 1,441,976 Long-term borrowings: - Bonds payable 2,030,361 — — 2,030,361 Other liabilities: - Liability classified RSU — — 4,970 4,970 Liabilities 2,030,361 — 4,970 2,035,331 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, 2019 RMB RMB RMB RMB US$ Cash equivalents: - Time deposits 117,825 — — 117,825 16,925 Short-term investments: - Time deposits 363,856 — — 363,856 52,265 Long-term investments - Available-for-sale debt securities — — 1,713 1,713 246 Assets 481,681 — 1,713 483,394 69,436 Short-term borrowings: - Current portion of bonds payable 912,416 — — 912,416 131,060 Long-term borrowings: - Bonds payable 2,089,114 — — 2,089,114 300,082 Other liabilities: - Liability classified RSU — — 2,109 2,109 303 Liabilities 3,001,530 — 2,109 3,003,639 431,445 |
Reconciliation of Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs Level Three | Contingent consideration payable RMB Fair value at January 1, 2018 36,734 Changes in the fair value (13,905) Settlement of contingent consideration payable (22,829) Transfers in and/or out of Level 3 — Fair value at December 31, 2018 — Transfers in and/or out of Level 3 — Fair value at December 31, 2019 — Fair value at December 31, 2019 (US$) — Liability classified RSU RMB Fair value at January 1, 2018 11,865 Reclassification to equity (587) Reversal (6,308) Transfers in and/or out of Level 3 — Fair value at December 31, 2018 4,970 Reclassification to equity (2,861) Reversal — Transfers in and/or out of Level 3 — Fair value at December 31, 2019 2,109 Fair value at December 31, 2019 (US$) 303 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Computer and Network Equipment and Construction in Progress | |
Purchase Commitments | As of December 31, 2019, the Company has the following commitments to purchase certain computer and network equipment and construction-in-progress: RMB US$ 2020 225,511 32,393 2021 and thereafter — — 225,511 32,393 |
Bandwidth and Cabinet Capacity | |
Purchase Commitments | As of December 31, 2019, the Company has outstanding purchase commitments in relation to bandwidth and cabinet capacity consisting of the following: RMB US$ 2020 600,571 86,267 2021 60,602 8,705 2022 44,968 6,459 2023 206 30 2024 and thereafter 2,068 297 708,415 101,758 |
PARENT COMPANY ONLY CONDENSED_2
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | |
Condensed Balance Sheets | Condensed balance sheets As of December 31, Notes 2018 2019 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 590,470 243,989 35,047 Short-term investments 150,990 138,848 19,944 Prepaid expenses and other current assets 98,337 105,597 15,168 Amounts due from subsidiaries (b) 5,062,149 6,128,595 880,318 Total current assets 5,901,946 6,617,029 950,477 Non-current assets Investments in subsidiaries 1,364,685 1,446,563 207,786 Total non-current assets 1,364,685 1,446,563 207,786 Total assets 7,266,631 8,063,592 1,158,263 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accrued expenses and other payables 56,656 57,612 8,275 Account payables 2,725 56 8 Interest payable 53,965 58,525 8,406 Current portion of bonds payable — 911,147 130,878 Amounts due to subsidiaries (b) 21,242 22,471 3,228 Total current liabilities 134,588 1,049,811 150,795 Non-current liabilities Bonds payable (c) 2,037,836 2,060,708 296,002 Total non-current liabilities 2,037,836 2,060,708 296,002 Total liabilities 2,172,424 3,110,519 446,797 Shareholders’ equity: Class A Ordinary shares (par value of US$0.00001 per share; 1,200,000,000 and 1,200,000,000 shares authorized; 499,706,628 and 505,253,850 shares issued and outstanding as of December 31, 2018 and 2019, respectively) 34 34 5 Class B Ordinary shares (par value of US$0.00001 per share; 300,000,000 and 300,000,000 shares authorized; 174,649,638 and 174,649,638 shares issued and outstanding as of December 31, 2018 and 2019, respectively) 12 12 2 Class C Ordinary shares (par value of US$0.00001 per share; nil and 60,000 shares authorized; nil and 60,000 shares issued and outstanding as of December 31, 2018 and 2019, respectively) — — — Additional paid-in capital 9,141,494 9,202,567 1,321,866 Accumulated other comprehensive income 85,979 77,904 11,190 Accumulated deficit (3,795,629) (3,977,921) (571,391) Treasury stock (337,683) (349,523) (50,206) Total shareholders’ equity 5,094,207 4,953,073 711,466 Total liabilities and shareholders’ equity 7,266,631 8,063,592 1,158,263 |
Condensed Statements of Operations | Condensed statements of operations For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Operating Expenses General and administrative expenses (145,890) (65,949) (44,490) (6,389) Changes in the fair value of contingent purchase consideration payables (937) 13,905 — — Operating loss (146,827) (52,044) (44,490) (6,389) Other loss (95,210) (262,186) (274,572) (39,440) Share of (losses) profits from subsidiaries and Consolidated VIEs (530,693) 109,165 136,770 19,646 Loss before income taxes (772,730) (205,065) (182,292) (26,183) Income tax expense — — — — Net loss (772,730) (205,065) (182,292) (26,183) |
Condensed Statements of Comprehensive Loss | Condensed statements of comprehensive loss For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net loss (772,730) (205,065) (182,292) (26,183) Other comprehensive (loss) income, net of tax of nil: Foreign currency translation adjustments, net of tax of nil (120,963) 88,652 (8,075) (1,160) Other comprehensive (loss) income, net of tax of nil: (120,963) 88,652 (8,075) (1,160) Comprehensive loss (893,693) (116,413) (190,367) (27,343) Comprehensive loss attributable to the Company’s ordinary shareholders (893,693) (116,413) (190,367) (27,343) |
Condensed Statements of Cash Flows | Condensed statements of cash flows For the years ended December 31, 2017 2018 2019 RMB RMB RMB US$ Net cash used in operating activities (18,324) (166,068) (142,989) (20,539) Net cash used in investing activities (1,291,042) (203,651) (1,011,257) (145,258) Net cash (used in) generated from financing activities (130,187) 43,145 807,765 116,028 Net decrease in cash and cash equivalents and restricted cash (1,439,533) (326,574) (346,481) (49,769) Cash and cash equivalents and restricted cash at beginning of the year 2,356,597 917,044 590,470 84,816 Cash and cash equivalents and restricted cash at end of the year 917,044 590,470 243,989 35,047 |
ORGANIZATION - Significant subs
ORGANIZATION - Significant subsidiaries of the Company and consolidated variable interest entities (Details) - Subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
21ViaNet Group Limited ("21Vianet HK") | |
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") | |
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") | |
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") | |
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") | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
21Vianet Mobile Limited ("21V Mobile") | |
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") | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
21Vianet Ventures Limited (Ventures) | |
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") | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Diyixian.com Limited ("Diyixian.com") | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
21Vianet Zhuhai Financial Leasing Limited | |
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] | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Shihua DC Investment Holdings Limited. | |
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") | |
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") | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 51.00% |
Dermot Holding Limited [Member] | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 100.00% |
Beijing Hongyuan Network Technology Co., Ltd [Member] | |
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs | |
Percentage of direct ownership by the Company | 51.00% |
Shenzhen Diyixian Telecommunication Co., Ltd [Member] | |
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") | |
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") | |
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) | Aug. 10, 2014 |
Dermot Entities | |
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 | Aug. 20, 2019 | Dec. 19, 2016 | Jan. 31, 2011CNY (¥) | Aug. 31, 2019 | Mar. 31, 2017item | Dec. 31, 2019CNY (¥) | Dec. 31, 2019USD ($)entity | Dec. 31, 2019CNY (¥)entity | Dec. 31, 2018 | Mar. 14, 2017 |
Organization | ||||||||||
Number of additional VIEs controlled through Primary Beneficiaries | entity | 2 | 2 | ||||||||
Assets pledged as collateral | $ 31,564 | ¥ 219,736,000 | ||||||||
Consolidated VIE's assets pledged as collateral | 0 | |||||||||
Consolidated VIE's liabilities pledged as collateral | ¥ 0 | |||||||||
Internet Data Center Services | ||||||||||
Organization | ||||||||||
Equity interest percentage by parent | 51.00% | 51.00% | ||||||||
Number of internet data centers | item | 4 | |||||||||
Warburg Pincus | ||||||||||
Organization | ||||||||||
Equity interest percentage by parent | 49.00% | 49.00% | ||||||||
Equity interest percentage | 49.00% | 49.00% | ||||||||
Shihua DC Investment Holdings 2 Limited ("Shihua Holdings 2") | Warburg Pincus | ||||||||||
Organization | ||||||||||
Percentage of equity interest transferred | 100.00% | 100.00% | ||||||||
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 |
ORGANIZATION - Financial inform
ORGANIZATION - Financial information of the consolidated VIEs (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2016CNY (¥) | |
Current assets: | ||||||||
Cash and cash equivalents | $ 259,772 | ¥ 1,949,631 | ¥ 1,808,483 | ¥ 2,358,556 | ||||
Restricted cash | 68,786 | 242,494 | 478,873 | 265,214 | ||||
Short-term investments | 52,265 | 363,856 | 245,014 | |||||
Prepaid expenses and other current assets | 232,433 | 1,618,149 | 1,159,574 | |||||
Amounts due from related parties | 43,331 | 301,665 | 125,446 | |||||
Total current assets | 750,982 | 5,228,184 | 4,678,109 | |||||
Non-current assets: | ||||||||
Property and equipment, net | 781,919 | 5,443,565 | 4,031,242 | |||||
Intangible assets, net | 58,978 | 401,115 | 410,595 | 355,313 | ||||
Land use rights, net | 33,490 | 233,154 | 147,493 | |||||
Operating lease right-of-use assets, net | 175,474 | 1,221,616 | ||||||
Goodwill | 142,137 | 989,530 | 989,530 | $ 142,137 | 989,530 | ¥ 1,755,970 | ||
Restricted cash | 10,029 | 3,344 | 69,821 | 37,251 | ||||
Deferred tax assets | 30,074 | 209,366 | 159,441 | |||||
Amounts due from related parties | 2,967 | 20,654 | 34,424 | |||||
Other non-current assets | 39,870 | 277,568 | 173,591 | |||||
Long-term investments | 24,369 | 169,653 | 544,323 | |||||
Total non-current assets | 1,299,307 | 9,045,522 | 6,472,608 | |||||
Total assets | 2,050,289 | 14,273,706 | 11,150,717 | |||||
Current liabilities: | ||||||||
Short-term bank borrowings | 33,684 | 234,500 | 50,000 | |||||
Accounts and notes payable | 43,542 | 303,128 | 389,508 | |||||
Accrued expenses and other payables | 140,613 | 978,935 | 659,320 | |||||
Advance from customers | 153,508 | 1,068,692 | 670,037 | |||||
Deferred revenue | 8,277 | 57,625 | 57,754 | |||||
Income tax payable | 6,899 | 48,032 | 13,111 | |||||
Amounts due to related parties | 23,979 | 166,935 | 52,328 | |||||
Current portion of finance lease liabilities | 32,623 | 227,115 | 219,695 | |||||
Current portion of long-term bank borrowings | 4,668 | 32,500 | 75,284 | |||||
Deferred government grants | 373 | 2,595 | 4,173 | |||||
Current portion of operating lease liabilities | 62,888 | 437,817 | ||||||
Total current liabilities | 641,932 | 4,469,021 | 2,191,210 | |||||
Non-current liabilities: | ||||||||
Amounts due to related parties-non current | 107,142 | 745,899 | 504,478 | |||||
Non-current portion of finance lease liabilities | 128,836 | 896,927 | 765,993 | |||||
Unrecognized tax benefits | 351 | 2,443 | 6,677 | |||||
Deferred tax liabilities | 29,098 | 202,572 | 157,720 | |||||
Deferred government grants | 848 | 5,906 | 11,619 | |||||
Non-current portion of operating lease liabilities | 83,183 | 579,102 | ||||||
Total non-current liabilities | 656,879 | 4,573,057 | 3,596,323 | |||||
Total liabilities | 1,298,811 | 9,042,078 | 5,787,533 | |||||
Revenues | 544,251 | ¥ 3,788,967 | ¥ 3,401,037 | 3,392,705 | ||||
Net (loss) profit | (26,033) | (181,246) | (186,736) | (917,644) | ||||
Net cash generated from operating activities | 115,332 | 802,922 | 704,966 | 487,202 | ||||
Net cash (used in) generated from investing activities | (231,550) | (1,611,983) | (304,846) | (833,307) | ||||
Net cash generated from (used in) financing activities | 66,302 | 461,557 | (19,901) | (612,651) | ||||
Variable Interest Entity, Primary Beneficiary | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 84,964 | 591,503 | 548,921 | |||||
Restricted cash | 37,485 | 260,961 | 203,103 | |||||
Accounts receivable (net of allowance for doubtful debt of RMB69,723 and RMB66,416 (US$9,540) as of December 31, 2018 and 2019, respectively) | 73,751 | 513,440 | 375,515 | |||||
Short-term investments | 94,000 | |||||||
Prepaid expenses and other current assets | 197,013 | 1,371,564 | 1,013,563 | |||||
Amounts due from related parties | 8,328 | 57,982 | 123,726 | |||||
Total current assets | 401,541 | 2,795,450 | 2,358,828 | |||||
Non-current assets: | ||||||||
Property and equipment, net | 514,284 | 3,580,341 | 3,103,995 | |||||
Intangible assets, net | 21,794 | 151,722 | 47,121 | |||||
Land use rights, net | 8,416 | 58,588 | 60,078 | |||||
Operating lease right-of-use assets, net | 164,447 | 1,144,846 | ||||||
Goodwill | 43,473 | 302,647 | 302,647 | |||||
Restricted cash | 9,497 | 66,119 | 33,729 | |||||
Deferred tax assets | 25,993 | 180,959 | 156,412 | |||||
Amounts due from related parties | 2,967 | 20,654 | 13,514 | |||||
Other non-current assets | 37,732 | 262,685 | 162,392 | |||||
Long-term investments | 27,230 | 189,571 | 219,005 | |||||
Total non-current assets | 855,833 | 5,958,132 | 4,098,893 | |||||
Total assets | 1,257,374 | 8,753,582 | 6,457,721 | |||||
Current liabilities: | ||||||||
Short-term bank borrowings | 33,371 | 232,323 | 50,000 | |||||
Accounts and notes payable | 30,410 | 211,710 | 258,048 | |||||
Accrued expenses and other payables | 89,368 | 622,160 | 392,619 | |||||
Advance from customers | 153,508 | 1,068,692 | 670,037 | |||||
Deferred revenue | 7,482 | 52,088 | 51,026 | |||||
Income tax payable | 1,174 | 8,175 | 8,519 | |||||
Amounts due to inter-companies | 400,304 | 2,786,838 | 2,117,097 | |||||
Amounts due to related parties | 8,184 | 56,977 | 51,763 | |||||
Current portion of finance lease liabilities | 31,653 | 220,363 | 219,695 | |||||
Current portion of long-term bank borrowings | 4,668 | 32,500 | 75,284 | |||||
Deferred government grants | 373 | 2,595 | 4,173 | |||||
Current portion of operating lease liabilities | 58,953 | 410,422 | 0 | |||||
Total current liabilities | 819,448 | 5,704,843 | 3,898,261 | |||||
Non-current liabilities: | ||||||||
Amounts due to inter-companies | 146,653 | 1,020,972 | 1,020,972 | |||||
Amounts due to related parties-non current | 107,142 | 745,899 | 504,478 | |||||
Long-term bank borrowings | 11,419 | 79,500 | 112,000 | |||||
Non-current portion of finance lease liabilities | 78,955 | 549,669 | 852,287 | |||||
Unrecognized tax benefits | 286 | 1,991 | 4,938 | |||||
Deferred tax liabilities | 11,883 | 82,725 | 84,568 | |||||
Deferred government grants | 848 | 5,906 | 11,619 | |||||
Non-current portion of operating lease liabilities | 76,064 | 529,546 | 0 | |||||
Total non-current liabilities | 433,250 | 3,016,208 | 2,590,862 | |||||
Total liabilities | 1,252,698 | ¥ 8,721,051 | ¥ 6,489,123 | |||||
Revenues | 410,551 | 2,858,176 | 2,532,854 | 2,578,893 | ||||
Net (loss) profit | 16,029 | 111,592 | 52,986 | (567,395) | ||||
Net cash generated from operating activities | 71,147 | 495,308 | 693,620 | 448,051 | ||||
Net cash (used in) generated from investing activities | (179,230) | (1,247,764) | 132,522 | (604,507) | ||||
Net cash generated from (used in) financing activities | 127,163 | 885,286 | (423,467) | 230,921 | ||||
Net increase in cash and cash equivalents and restricted cash | $ 19,080 | ¥ 132,830 | ¥ 402,705 | ¥ 74,465 |
ORGANIZATION - Financial info_2
ORGANIZATION - Financial information of the consolidated VIEs (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Variable Interest Entity, Primary Beneficiary | |||
Variable Interest Entity | |||
Accounts receivable, allowance for doubtful accounts | $ 9,540 | ¥ 66,416 | ¥ 69,723 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives of property and equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 | |
Purchased software | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 5 years 1 month 6 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 | 31 years 10 months 24 days |
Contract Backlog | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 4 years 10 months 24 days |
Customer Relationships | |
Weighted average useful lives of intangible assets | |
Estimated useful life of intangible assets | 8 years 9 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 | 4 years |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment charges associated with its long-lived assets and acquired intangibles (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Impairment of equipment | ¥ 237,956 |
Impairment of intangible assets | ¥ 163,852 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Interest expenses (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Interest expense and amortization cost of bonds payable | $ 32,151 | ¥ 223,832 | ¥ 150,098 | ¥ 63,354 |
Interest expense on bank borrowings | 2,041 | 14,212 | 19,395 | 87,916 |
Interest expense on finance lease | 17,263 | 120,185 | 79,935 | 63,757 |
Total interest costs | 51,455 | 358,229 | 249,428 | 215,027 |
Less: Total interest costs capitalized | (1,762) | (12,274) | (13,362) | (29,714) |
Interest expenses, net | $ 49,693 | ¥ 345,955 | ¥ 236,066 | ¥ 185,313 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 02, 2019USD ($) | Jan. 01, 2019 | Aug. 31, 2017item | Sep. 30, 2016segment | Sep. 30, 2017 | Dec. 31, 2019USD ($)itemshares | Dec. 31, 2019CNY (¥)itemshares | Dec. 31, 2018USD ($)itemshares | Dec. 31, 2018CNY (¥)itemshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2019CNY (¥) |
Significant accounting policies | |||||||||||
Internal use software development costs, Amount capitalized | $ 1,894 | ¥ 6,093 | ¥ 9,238 | ¥ 13,189 | |||||||
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 | item | 2 | 1 | 1 | 1 | 1 | ||||||
Number of service lines | item | 2 | ||||||||||
Cash flows estimated growth rate after six years using terminal value | 3.00% | ||||||||||
Discount rate used in the valuations based on weighted average cost of capital | 13.00% | ||||||||||
Discounted cash flow projection period | 5 years | 5 years | 5 years | ||||||||
Impairment losses pursuant to the goodwill tests | 766,440 | ||||||||||
Impairment losses of long-lived assets | ¥ 0 | ¥ 0 | 401,808 | ||||||||
Deferred revenue | $ 8,277 | 57,754 | ¥ 57,625 | ||||||||
Revenue recognized | 6,751 | 46,996 | |||||||||
Advertising expense | $ 875 | ¥ 6,095 | ¥ 7,968 | ¥ 7,773 | |||||||
Share repurchase plan, shares repurchased (in shares) | shares | 242,830 | 242,830 | 0 | 0 | 3,448,482 | ||||||
Share Repurchase Plan, share value | ¥ 11,840 | ¥ 133,126 | |||||||||
Number of reportable segments | segment | 2 | ||||||||||
Aipu Group | |||||||||||
Significant accounting policies | |||||||||||
Discounted cash flow projection period | 7 years | 7 years | |||||||||
Impairment losses of long-lived assets | $ 0 | 170,695 | |||||||||
WiFire Group Inc. ("WiFire Group") | |||||||||||
Significant accounting policies | |||||||||||
Discounted cash flow projection period | 5 years | 5 years | |||||||||
Impairment losses of long-lived assets | ¥ 231,113 | ||||||||||
Hosting and related services | |||||||||||
Significant accounting policies | |||||||||||
Impairment losses pursuant to the goodwill tests | $ | $ 0 | $ 0 | |||||||||
American Depository Shares | |||||||||||
Significant accounting policies | |||||||||||
Share Repurchase Plan, period | 13 months | ||||||||||
Share repurchase plan, shares repurchased (in shares) | shares | 242,830 | 242,830 | 0 | 0 | 3,448,482 | ||||||
Share Repurchase Plan, share value | $ 1,701 | ¥ 11,840 | ¥ 0 | ¥ 133,126 | |||||||
Maximum | |||||||||||
Significant accounting policies | |||||||||||
Official exchange rate of foreign currency remeasured (RMB per one U.S. dollar) | 6.9618 | 6.9618 | |||||||||
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, 2019USD ($)customeritem | Dec. 31, 2018USD ($)customeritem | Dec. 31, 2017customeritem | Dec. 31, 2019CNY (¥)item | Dec. 31, 2018CNY (¥)item | |
CONCENTRATION OF RISKS | |||||
Depreciation of RMB against US$ | 1.60% | 5.00% | (5.80%) | ||
Customer Concentration Risk | |||||
CONCENTRATION OF RISKS | |||||
Number of customers who contributed more than 3% of Company's revenue | customer | 0 | 0 | 0 | ||
Cabinet and Bandwidth Supply | |||||
CONCENTRATION OF RISKS | |||||
Number of suppliers | item | 5 | 5 | 5 | 5 | 5 |
Cabinet and Bandwidth Supply | Supplier Concentration Risk | |||||
CONCENTRATION OF RISKS | |||||
Concentration of risk, percentage | 21.00% | 19.00% | 21.00% | ||
Bandwidth and Cabinet Resources | Customer Concentration Risk | |||||
CONCENTRATION OF RISKS | |||||
Concentration of risk, percentage | 4.00% | 4.00% | 2.00% | ||
Bandwidth and Cabinet Resources | Customer Concentration Risk | Largest single customer | Maximum | |||||
CONCENTRATION OF RISKS | |||||
Concentration of risk, percentage | 8.00% | ||||
PRC | Credit Concentration Risk | |||||
CONCENTRATION OF RISKS | |||||
Cash and cash equivalents, restricted cash and short-term investments, held at major institutions | $ 168,214 | ¥ 1,171,075 | ¥ 1,131,588 | ||
Outside the PRC | Credit Concentration Risk | |||||
CONCENTRATION OF RISKS | |||||
Cash and cash equivalents, restricted cash and short-term investments, held at major institutions | $ 222,638 | $ 258,083 | ¥ 1,549,958 |
ACQUISITION AND DISPOSAL OF S_3
ACQUISITION AND DISPOSAL OF SUBSIDIARIES (Details) ¥ in Thousands, $ in Thousands | Dec. 24, 2019USD ($) | Dec. 24, 2019CNY (¥) | Aug. 20, 2019USD ($) | Aug. 20, 2019CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2019CNY (¥) | Dec. 24, 2019CNY (¥) | Aug. 20, 2019CNY (¥) |
Beijing Shuhai Data Technology Co., Ltd ("BJ Shuhai") | |||||||||
Net assets acquired: | |||||||||
Operating permits (Note 9) | $ 14,419 | ¥ 100,380 | |||||||
Cash and cash equivalents | 8 | 59 | |||||||
Other current assets | 1,383 | 9,625 | |||||||
Right-of-use assets | 18,664 | 129,937 | |||||||
Other current liabilities | (2,401) | (16,714) | |||||||
Lease liabilities | (18,664) | (129,937) | |||||||
Deferred tax liabilities | (3,605) | ¥ (25,095) | |||||||
Total consideration in cash | $ 9,804 | ¥ 68,255 | |||||||
Shihua DC Investment Holdings 2 Limited ("Shihua Holdings 2") | |||||||||
Net assets acquired: | |||||||||
Cash and cash equivalents | $ 9,705 | ¥ 67,563 | |||||||
Property and Land use right | 21,672 | 150,880 | |||||||
Construction-in-progress | 67 | 465 | |||||||
Other current assets | 191,521 | 1,333,329 | |||||||
Other current liabilities | (172,929) | (1,203,894) | |||||||
Deferred tax liabilities | (4,754) | ¥ (33,096) | |||||||
Total consideration in cash | $ 45,282 | ¥ 315,247 | |||||||
Nantong Chenghong Cloud Computing Co., Ltd. ("NT Chenghong") | |||||||||
Net assets acquired: | |||||||||
Cash and cash equivalents | $ 18 | ¥ 129 | |||||||
Construction-in-progress | 22,763 | 158,471 | |||||||
Equipment | 2 | 13 | |||||||
Other current assets | 1,701 | 11,840 | |||||||
Other current liabilities | (12,760) | (88,830) | |||||||
Deferred tax liabilities | (233) | ¥ (1,623) | |||||||
Total consideration in cash | $ 11,491 | ¥ 80,000 |
ACQUISITION AND DISPOSAL OF S_4
ACQUISITION AND DISPOSAL OF SUBSIDIARIES - Additional Information (Details) $ in Thousands | Dec. 24, 2019USD ($) | Dec. 24, 2019CNY (¥) | Aug. 20, 2019 | Jan. 02, 2019USD ($) | Jan. 02, 2019CNY (¥) | Aug. 31, 2019 | Dec. 31, 2017CNY (¥) | Sep. 30, 2017CNY (¥)subsidiaryshares | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Aug. 19, 2019 | Mar. 31, 2017 | Mar. 14, 2017 | Dec. 31, 2012CNY (¥) |
Business Acquisition [Line Items] | |||||||||||||||||
Total cash consideration | $ 11,857 | ¥ 82,536,000 | ¥ 13,000,000 | ||||||||||||||
Contingent consideration | ¥ 47,755,000 | ||||||||||||||||
Number of wholly owned subsidiaries | subsidiary | 6 | ||||||||||||||||
Impairment losses of long-lived assets | ¥ 0 | ¥ 0 | ¥ 401,808,000 | ||||||||||||||
Impairment losses of goodwill | 766,440,000 | ||||||||||||||||
Gain on disposal of subsidiaries | 497,036,000 | ||||||||||||||||
WiFire Group Inc. ("WiFire Group") | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Equity interest transferred | 66.67% | ||||||||||||||||
Consideration price | ¥ 6 | ||||||||||||||||
Cumulative Percentage Ownership after restructuring (as a percentage) | 33.33% | ||||||||||||||||
Aipu Group | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Consideration price | ¥ 1 | ||||||||||||||||
Number of shares transferred | shares | 2 | ||||||||||||||||
Ownership percentage before transaction | 50.00% | ||||||||||||||||
Tibet Xingtao Culture Communications Co., Ltd. [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Equity interest transferred | 50.00% | ||||||||||||||||
Consideration price | ¥ 1 | ¥ 1 | |||||||||||||||
Beijing Shuhai Data Technology Co., Ltd ("BJ Shuhai") | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Percentage of equity interests acquired | 100.00% | 100.00% | |||||||||||||||
Total cash consideration | $ 14,113 | ¥ 98,255,000 | |||||||||||||||
Contingent consideration | $ 4,309 | ¥ 30,000,000 | |||||||||||||||
Shihua DC Investment Holdings 2 Limited ("Shihua Holdings 2") | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Equity interest (as a percentage) | 49.00% | 49.00% | |||||||||||||||
Nantong Chenghong Cloud Computing Co., Ltd. ("NT Chenghong") | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Percentage of equity interests acquired | 100.00% | 100.00% | |||||||||||||||
Total cash consideration | $ 11,491 | ¥ 80,000,000 | |||||||||||||||
Warburg Pincus | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Percentage of ownership interest (as a percent) | 49.00% | 49.00% | |||||||||||||||
Warburg Pincus | Shihua DC Investment Holdings 2 Limited ("Shihua Holdings 2") | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Equity interest (as a percentage) | 51.00% | ||||||||||||||||
Percentage of equity interest transferred | 100.00% | 100.00% |
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
ACCOUNTS AND NOTES RECEIVABLE, NET | |||||
Accounts receivable | $ 103,830 | ¥ 722,840 | ¥ 592,669 | ||
Notes receivable | 308 | 2,146 | 2,606 | ||
Allowance for doubtful debt | (9,743) | (67,828) | $ (10,194) | (70,970) | ¥ (73,656) |
Accounts and notes receivable, net | $ 94,395 | ¥ 657,158 | ¥ 524,305 |
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
ACCOUNTS AND NOTES RECEIVABLE, NET | |||
Balance at beginning of the year | $ 10,194 | ¥ 70,970 | ¥ 73,656 |
Additional provision charged to expense | 70 | 485 | 315 |
Write-off of accounts receivable | (521) | (3,627) | (3,001) |
Balance at end of the year | $ 9,743 | ¥ 67,828 | ¥ 70,970 |
SHORT-TERM INVESTMENTS - Short-
SHORT-TERM INVESTMENTS - Short-term investments consisted (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Short-term investments | |||
SHORT-TERM INVESTMENTS | |||
Time deposits | $ 52,265 | ¥ 363,856 | ¥ 245,014 |
SHORT-TERM INVESTMENTS - Additi
SHORT-TERM INVESTMENTS - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Short-term investments | ||||
SHORT-TERM INVESTMENTS | ||||
Investments, interest income | $ 1,248 | ¥ 8,687 | ¥ 7,303 | ¥ 4,021 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | |||
Prepaid expenses | $ 126,139 | ¥ 878,155 | ¥ 565,710 |
Tax recoverables | 82,007 | 570,913 | 421,654 |
Staff advances | 268 | 1,866 | 10,730 |
Interest receivables | 2,063 | 14,359 | 12,037 |
Deposits | 2,498 | 17,391 | 39,971 |
Loan to third parties | 10,565 | 73,557 | 58,909 |
Other receivables | 8,893 | 61,908 | 50,563 |
Prepaid expenses and other current assets | $ 232,433 | ¥ 1,618,149 | ¥ 1,159,574 |
PROPERTY AND EQUIPMENT, NET - P
PROPERTY AND EQUIPMENT, NET - Property and equipment, held under capital leases (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | $ 871,211 | ¥ 6,065,200 | ¥ 5,115,505 |
Less: Accumulated depreciation | (361,228) | (2,514,800) | (1,870,640) |
Property plant and equipment net excluding construction in progress | 509,983 | 3,550,400 | 3,244,865 |
Construction-in-progress | 271,936 | 1,893,165 | 786,377 |
Property and equipment, net | 781,919 | 5,443,565 | 4,031,242 |
Property | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 129,221 | 899,609 | 753,319 |
Leasehold improvements | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 209,536 | 1,458,749 | 932,896 |
Computer and network equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 508,447 | 3,539,709 | 3,260,336 |
Optical Fibers | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 20,501 | 142,723 | 142,723 |
Office equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | 3,175 | 22,102 | 24,390 |
Motor vehicles | |||
PROPERTY AND EQUIPMENT, NET | |||
Property and equipment, gross | $ 331 | ¥ 2,308 | ¥ 1,841 |
PROPERTY AND EQUIPMENT, NET - D
PROPERTY AND EQUIPMENT, NET - Depreciation expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | $ 100,050 | ¥ 696,528 | ¥ 566,491 | ¥ 523,500 |
Cost of Revenues | ||||
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | 92,520 | 644,108 | 520,791 | 458,655 |
Selling and Marketing Expense | ||||
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | 303 | 2,107 | 986 | 3,188 |
General and Administrative Expense | ||||
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | 4,325 | 30,110 | 28,727 | 41,675 |
Research and Development Expense | ||||
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | $ 2,902 | ¥ 20,203 | ¥ 15,987 | ¥ 19,982 |
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Lessee, Lease, Description [Line Items] | |||
Property and equipment held under finance leases, gross | $ 164,812 | ¥ 1,147,387 | ¥ 1,227,752 |
Less: Accumulated depreciation | (58,634) | (408,196) | (291,579) |
Property and equipment held under finance leases net excluding construction in progress | 106,178 | 739,191 | 936,173 |
Construction-in-progress | 271,936 | 1,893,165 | 786,377 |
Property and equipment held under finance leases, net | 200,839 | 1,398,205 | 1,512,195 |
Property | |||
Lessee, Lease, Description [Line Items] | |||
Property and equipment held under finance leases, gross | 52,480 | 365,353 | 365,353 |
Computer and network equipment | |||
Lessee, Lease, Description [Line Items] | |||
Property and equipment held under finance leases, gross | 91,831 | 639,311 | 719,676 |
Optical Fibers | |||
Lessee, Lease, Description [Line Items] | |||
Property and equipment held under finance leases, gross | 20,501 | 142,723 | 142,723 |
Construction-in-progress | |||
Lessee, Lease, Description [Line Items] | |||
Construction-in-progress | $ 94,661 | ¥ 659,014 | ¥ 576,022 |
PROPERTY AND EQUIPMENT, NET -_2
PROPERTY AND EQUIPMENT, NET - Property and equipment pledged to secure banking borrowings (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
PROPERTY AND EQUIPMENT, NET | |||
Assets pledged as collateral | $ 31,564 | ¥ 219,736 | |
Property | |||
PROPERTY AND EQUIPMENT, NET | |||
Assets pledged as collateral | 19,763 | 137,585 | ¥ 140,393 |
Leasehold improvements | |||
PROPERTY AND EQUIPMENT, NET | |||
Assets pledged as collateral | $ 9,504 | ¥ 66,162 | 71,337 |
Computer and network equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Assets pledged as collateral | 74,822 | ||
Office equipment | |||
PROPERTY AND EQUIPMENT, NET | |||
Assets pledged as collateral | ¥ 44 |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | $ 100,050 | ¥ 696,528 | ¥ 566,491 | ¥ 523,500 |
Property, computer and network equipment and optical fiber | ||||
PROPERTY AND EQUIPMENT, NET | ||||
Depreciation expense | $ 31,122 | ¥ 216,664 | ¥ 170,264 | ¥ 92,920 |
INTANGIBLE ASSETS, NET - Intang
INTANGIBLE ASSETS, NET - Intangible assets (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Weighted average useful lives of intangible assets | ||||
Beginning balance | ¥ 355,313 | ¥ 401,115 | ||
Additions | 124,697 | 24,837 | ||
Disposals | (6,772) | |||
Foreign currency translation difference | 1,613 | 4,248 | ||
Amortization expense | $ (10,203) | (71,028) | (68,115) | ¥ (143,602) |
Ending balance | 58,978 | 410,595 | 355,313 | 401,115 |
Purchased software | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 47,254 | 50,629 | ||
Additions | 11,128 | 18,744 | ||
Disposals | (6,772) | |||
Foreign currency translation difference | 413 | 364 | ||
Amortization expense | (16,068) | (15,711) | ||
Ending balance | 6,137 | 42,727 | 47,254 | 50,629 |
Radio Spectrum License | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 72,908 | 77,141 | ||
Foreign currency translation difference | 1,200 | 3,884 | ||
Amortization expense | (8,985) | (8,117) | ||
Ending balance | 9,354 | 65,123 | 72,908 | 77,141 |
Operating permits | ||||
Weighted average useful lives of intangible assets | ||||
Additions | 100,380 | |||
Amortization expense | (3,136) | |||
Ending balance | 13,968 | 97,244 | ||
Contract Backlog | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 5,162 | 11,750 | ||
Amortization expense | (5,162) | (6,588) | ||
Ending balance | 0 | 5,162 | 11,750 | |
Customer Relationships | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 112,961 | 137,882 | ||
Amortization expense | (24,921) | (24,921) | ||
Ending balance | 12,646 | 88,040 | 112,961 | 137,882 |
Licenses | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 3,883 | 4,268 | ||
Amortization expense | (385) | (385) | ||
Ending balance | 503 | 3,498 | 3,883 | 4,268 |
Supplier Relationships | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 17,070 | 20,144 | ||
Amortization expense | (3,074) | (3,074) | ||
Ending balance | 2,010 | 13,996 | 17,070 | 20,144 |
Trade Names | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 90,591 | 96,404 | ||
Amortization expense | (5,813) | (5,813) | ||
Ending balance | 12,178 | 84,778 | 90,591 | 96,404 |
Platform Software | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 683 | |||
Amortization expense | (683) | |||
Ending balance | 0 | 683 | ||
Non - Complete Agreement | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 44 | 154 | ||
Amortization expense | (44) | (110) | ||
Ending balance | 0 | 44 | 154 | |
Internal-use Software | ||||
Weighted average useful lives of intangible assets | ||||
Beginning balance | 5,440 | 2,060 | ||
Additions | 13,189 | 6,093 | ||
Amortization expense | (3,440) | (2,713) | ||
Ending balance | $ 2,182 | ¥ 15,189 | ¥ 5,440 | ¥ 2,060 |
INTANGIBLE ASSETS, NET - Amorti
INTANGIBLE ASSETS, NET - Amortization expenses (Details) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
INTANGIBLE ASSETS, NET | ||
2020 | $ 8,491 | ¥ 59,115 |
2021 | 7,958 | 55,400 |
2022 | 7,183 | 50,005 |
2023 | 4,923 | 34,274 |
2024 | 1,985 | 13,820 |
Annual estimated amortization expenses for intangible assets | $ 30,540 | ¥ 212,614 |
INTANGIBLE ASSETS, NET - Additi
INTANGIBLE ASSETS, NET - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Weighted average useful lives of intangible assets | ||||
Intangible assets, amortization expenses | $ 10,203 | ¥ 71,028 | ¥ 68,115 | ¥ 143,602 |
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 | 32 years | 32 years |
LAND USE RIGHTS, NET - Land use
LAND USE RIGHTS, NET - Land use rights amortized (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
LAND USE RIGHTS, NET | |||
Cost | $ 35,882 | ¥ 249,804 | ¥ 159,494 |
Accumulated amortization | (2,392) | (16,650) | (12,001) |
Land use rights, net | $ 33,490 | ¥ 233,154 | ¥ 147,493 |
LAND USE RIGHTS, NET - Land u_2
LAND USE RIGHTS, NET - Land use rights pledged (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
LAND USE RIGHTS, NET | |||
Land use rights | $ 2,297 | ¥ 15,989 | ¥ 16,403 |
GOODWILL - Carrying amount (Det
GOODWILL - Carrying amount (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
GOODWILL | ||||
Beginning Balance | $ 142,137 | ¥ 989,530 | ¥ 989,530 | ¥ 1,755,970 |
Impairment | (766,440) | |||
Ending Balance | $ 142,137 | ¥ 989,530 | ¥ 989,530 | ¥ 989,530 |
GOODWILL - Additional Informati
GOODWILL - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Changes in the carrying amount of goodwill | ||
Impairment losses of goodwill | ¥ 766,440 | |
Hosting and Related Services | ||
Changes in the carrying amount of goodwill | ||
Impairment losses of goodwill | ¥ 0 | ¥ 0 |
LONG-TERM INVESTMENTS - Long te
LONG-TERM INVESTMENTS - Long term investments (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
LONG-TERM INVESTMENTS | |||
Equity investments without readily determinable fair values | $ 6,295 | ¥ 43,824 | ¥ 51,410 |
Equity method investments | 17,828 | 124,116 | 490,376 |
Available-for-sale debt investments | 246 | 1,713 | 2,537 |
Long term investments | $ 24,369 | ¥ 169,653 | ¥ 544,323 |
LONG-TERM INVESTMENTS - Equity
LONG-TERM INVESTMENTS - Equity Method Investments (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Nov. 30, 2019USD ($) | Nov. 30, 2019CNY (¥) | Aug. 31, 2019USD ($) | Aug. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Jun. 30, 2016CNY (¥) | |
LONG-TERM INVESTMENTS | ||||||||||||||
Cost investment | ¥ 521,863 | ¥ 312,176 | ¥ 169,905 | |||||||||||
Share equity gain (loss) | ¥ (45,789) | (31,487) | 138,646 | |||||||||||
Investment in equity investee | $ 17,828 | $ 17,828 | 490,376 | 124,116 | ||||||||||
Cost of investments incurred during the period | (351,958) | 209,687 | ||||||||||||
Distribution received | (2,902) | (20,200) | ||||||||||||
Share equity gain (loss) incurred during the period | (34,263) | (186,642) | ||||||||||||
Derecognize of share equity loss | 16,509 | |||||||||||||
Disposal gain | 2,564 | 17,853 | 16,509 | |||||||||||
Investment in an equity investee | 17,828 | 124,116 | $ 71,322 | 490,376 | 450,822 | |||||||||
Derecognize of share equity (gain) | 19,961 | |||||||||||||
Yizhuang Venture Investment Fund | ||||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||||
Cost investment | 101,000 | 101,000 | 101,000 | |||||||||||
Share equity gain (loss) | 7,152 | 25,681 | 176,036 | |||||||||||
Distribution received | $ (2,902) | ¥ (20,200) | ||||||||||||
Share equity gain (loss) incurred during the period | 1,671 | (150,355) | ||||||||||||
Investment in an equity investee | 15,535 | 108,152 | 18,425 | 126,681 | 277,036 | |||||||||
Derecognize of share equity (gain) | (20,200) | |||||||||||||
Unis Tech | ||||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||||
Cost investment | 49,000 | ¥ 49,000 | ||||||||||||
Share equity gain (loss) | (12,961) | |||||||||||||
Cost of investments incurred during the period | (49,000) | |||||||||||||
Share equity gain (loss) incurred during the period | (3,548) | |||||||||||||
Derecognize of share equity loss | 16,509 | |||||||||||||
Disposal gain | ¥ 16,509 | |||||||||||||
Investment in an equity investee | 36,039 | |||||||||||||
Shihua DC Investment Holdings Limited | ||||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||||
Cost investment | 366,623 | 147,176 | 29,068 | |||||||||||
Share equity gain (loss) | (29,068) | (33,658) | (9,429) | |||||||||||
Cost of investments incurred during the period | $ (48,487) | ¥ (337,555) | (337,555) | 219,447 | ||||||||||
Share equity gain (loss) incurred during the period | (17,718) | (24,229) | ||||||||||||
Investment in an equity investee | 48,428 | 332,965 | 137,747 | |||||||||||
Derecognize of share equity (gain) | 22,308 | |||||||||||||
Jingliang Inter Cloud | ||||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||||
Cost investment | 6,000 | 6,000 | ||||||||||||
Share equity gain (loss) | (1,928) | (34) | ||||||||||||
Cost of investments incurred during the period | 6,000 | |||||||||||||
Share equity gain (loss) incurred during the period | (1,894) | (34) | ||||||||||||
Investment in an equity investee | 585 | 4,072 | 868 | 5,966 | ||||||||||
Jingliang Century Cloud | ||||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||||
Cost investment | 4,000 | 4,000 | ||||||||||||
Cost of investments incurred during the period | 4,000 | |||||||||||||
Investment in an equity investee | 575 | 4,000 | 582 | 4,000 | ||||||||||
Huaye Cloud | ||||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||||
Cost investment | 23,333 | |||||||||||||
Share equity gain (loss) | (6,319) | |||||||||||||
Cost of investments incurred during the period | (23,333) | 23,333 | ||||||||||||
Share equity gain (loss) incurred during the period | (11,534) | (6,319) | ||||||||||||
Investment in an equity investee | 2,474 | 17,014 | ||||||||||||
Derecognize of share equity (gain) | $ 2,564 | ¥ 17,853 | 17,853 | |||||||||||
ZJK Energy | ||||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||||
Cost investment | 5,907 | 5,907 | ||||||||||||
Share equity gain (loss) | (1,945) | (2,157) | ||||||||||||
Cost of investments incurred during the period | 5,907 | |||||||||||||
Share equity gain (loss) incurred during the period | 212 | (2,157) | ||||||||||||
Investment in an equity investee | 569 | 3,962 | $ 545 | 3,750 | ||||||||||
WiFire Group Inc. ("WiFire Group") | ||||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||||
Cost investment | 15,000 | 15,000 | 20,000 | |||||||||||
Share equity gain (loss) | (20,000) | ¥ (15,000) | ¥ (15,000) | |||||||||||
Cost of investments incurred during the period | 5,000 | |||||||||||||
Share equity gain (loss) incurred during the period | (5,000) | |||||||||||||
Chengdu Qidi Chengxin Education Limit ("Qidi Chengxin") | ||||||||||||||
LONG-TERM INVESTMENTS | ||||||||||||||
Cost investment | ¥ 3,930 | |||||||||||||
Cost of investments incurred during the period | 3,930 | |||||||||||||
Investment in an equity investee | $ 564 | ¥ 3,930 |
LONG-TERM INVESTMENTS - Additio
LONG-TERM INVESTMENTS - Additional Information (Details) ¥ in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Nov. 30, 2019USD ($) | Nov. 30, 2019CNY (¥) | Aug. 31, 2019USD ($) | Aug. 31, 2019CNY (¥) | Mar. 31, 2018CNY (¥) | Jan. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Sep. 30, 2017CNY (¥) | Mar. 31, 2017CNY (¥) | Dec. 31, 2013CNY (¥) | Apr. 30, 2012CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | Jun. 30, 2016CNY (¥) | |
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Impairment of investment | ¥ 20,258 | ||||||||||||||||||
Cost of investment | ¥ 312,176 | ¥ 521,863 | 312,176 | ¥ 169,905 | |||||||||||||||
Distribution received | $ 2,902 | ¥ 20,200 | |||||||||||||||||
Increase (Decrease) in Cost of Investments in Equity Method Investments | (351,958) | 209,687 | |||||||||||||||||
Disposal gain | 19,961 | ||||||||||||||||||
Equity method investment loss | (7,261) | (50,553) | (186,642) | 53,783 | |||||||||||||||
Equity method investment realized gain on disposal | 2,564 | 17,853 | 16,509 | ||||||||||||||||
Equity method investment | $ 17,828 | 17,828 | 490,376 | ¥ 124,116 | |||||||||||||||
WiFire Group Inc. ("WiFire Group") | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity interest, percentage | 33.33% | ||||||||||||||||||
Investment in an equity investee, addition | 15,000 | 716 | 5,000 | ||||||||||||||||
Capital injected | 15,000 | 716 | 5,000 | ||||||||||||||||
Percentage of ownership disposed | 66.67% | ||||||||||||||||||
Equity method investment | ¥ 0 | 0 | |||||||||||||||||
Equity method investment at fair value | ¥ 6 | ||||||||||||||||||
Equity Investments Without Readily Determinable Fair Value | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity investments without readily determinable fair values | 1,885 | 13,122 | 26,653 | ||||||||||||||||
Dividend income of non-marketable investments | 66 | 461 | 406 | ||||||||||||||||
Gain from disposal of non-marketable investments | $ 795 | 5,536 | 20,496 | ||||||||||||||||
Impairment of investment | 0 | ¥ 0 | ¥ 20,258 | ||||||||||||||||
Yizhuang Venture Investment Fund | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity interest, percentage | 27.694% | 27.694% | 27.694% | 27.694% | 27.694% | 27.694% | |||||||||||||
Investment in an equity investee, addition | ¥ 50,500 | ¥ 50,500 | |||||||||||||||||
Cost of investment | ¥ 101,000 | ¥ 101,000 | ¥ 101,000 | ¥ 101,000 | |||||||||||||||
Distribution received | $ 2,902 | ¥ 20,200 | |||||||||||||||||
Capital injected | ¥ 50,500 | ¥ 50,500 | |||||||||||||||||
Disposal gain | (20,200) | ||||||||||||||||||
Equity method investment loss | 25,681 | ||||||||||||||||||
Unis Tech | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity interest, percentage | 49.00% | ||||||||||||||||||
Cost of investment | 49,000 | 49,000 | ¥ 49,000 | ||||||||||||||||
Increase (Decrease) in Cost of Investments in Equity Method Investments | (49,000) | ||||||||||||||||||
Equity method investment cash consideration | ¥ 49,000 | ||||||||||||||||||
Equity method investment loss | 3,548 | ||||||||||||||||||
Equity method investment realized gain on disposal | ¥ 16,509 | ||||||||||||||||||
Shihua DC Investment Holdings Limited | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Cost of investment | ¥ 147,176 | 366,623 | ¥ 147,176 | 29,068 | |||||||||||||||
Increase (Decrease) in Cost of Investments in Equity Method Investments | $ (48,487) | ¥ (337,555) | (337,555) | 219,447 | |||||||||||||||
Accumulative share equity loss derecognized | 3,204 | $ 3,204 | 22,308 | ||||||||||||||||
Disposal gain | 22,308 | ||||||||||||||||||
Shihua Investment Management [Member] | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity interest, percentage | 49.00% | ||||||||||||||||||
Investment in an equity investee, addition | ¥ 13,537 | 15,531 | |||||||||||||||||
Capital injected | ¥ 13,537 | 15,531 | |||||||||||||||||
Share equity loss recognized | $ 2,340 | $ 2,340 | ¥ 16,290 | ||||||||||||||||
Chengdu Qidi Chengxin Education Limit ("Qidi Chengxin") | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity interest, percentage | 59.00% | 59.00% | 59.00% | ||||||||||||||||
Investment in an equity investee, addition | $ 564 | 3,930 | |||||||||||||||||
Cost of investment | ¥ 3,930 | ||||||||||||||||||
Capital injected | $ 564 | 3,930 | |||||||||||||||||
Increase (Decrease) in Cost of Investments in Equity Method Investments | 3,930 | ||||||||||||||||||
Shihua DC Investment Holdings 2 Limited ("Shihua Holdings 2") | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity interest, percentage | 49.00% | ||||||||||||||||||
Investment in an equity investee, addition | ¥ 133,639 | 203,916 | |||||||||||||||||
Capital injected | ¥ 133,639 | 203,916 | |||||||||||||||||
Jingliang Inter Cloud | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity interest, percentage | 60.00% | ||||||||||||||||||
Investment in an equity investee, addition | ¥ 6,000 | ||||||||||||||||||
Cost of investment | 6,000 | 6,000 | |||||||||||||||||
Capital injected | ¥ 6,000 | ||||||||||||||||||
Increase (Decrease) in Cost of Investments in Equity Method Investments | 6,000 | ||||||||||||||||||
Jingliang Century Cloud | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity interest, percentage | 40.00% | ||||||||||||||||||
Investment in an equity investee, addition | ¥ 4,000 | ||||||||||||||||||
Cost of investment | 4,000 | 4,000 | |||||||||||||||||
Capital injected | ¥ 4,000 | ||||||||||||||||||
Increase (Decrease) in Cost of Investments in Equity Method Investments | 4,000 | ||||||||||||||||||
Huaye Cloud | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Equity interest, percentage | 50.00% | ||||||||||||||||||
Investment in an equity investee, addition | ¥ 23,333 | ||||||||||||||||||
Cost of investment | 23,333 | ||||||||||||||||||
Capital injected | ¥ 23,333 | ||||||||||||||||||
Increase (Decrease) in Cost of Investments in Equity Method Investments | (23,333) | 23,333 | |||||||||||||||||
Disposal gain | $ 2,564 | ¥ 17,853 | ¥ 17,853 | ||||||||||||||||
Total cash consideration on disposal of equity interests | 3,352 | 23,333 | |||||||||||||||||
Investment loss | $ 2,564 | ¥ 17,853 | |||||||||||||||||
ZJK Energy | |||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||||||||
Cost of investment | 5,907 | ¥ 5,907 | |||||||||||||||||
Increase (Decrease) in Cost of Investments in Equity Method Investments | ¥ 5,907 |
BANK BORROWINGS - Bank borrowin
BANK BORROWINGS - Bank borrowings (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
BANK BORROWINGS | |||
Short-term bank borrowings | $ 33,684 | ¥ 234,500 | ¥ 50,000 |
Long-term bank borrowings, current portion | 4,668 | 32,500 | 75,284 |
Bank borrowings, current portion, Total | 38,352 | 267,000 | 125,284 |
Long-term bank borrowings, non-current portion | 11,419 | 79,500 | 112,000 |
Total bank borrowings | $ 49,771 | ¥ 346,500 | ¥ 237,284 |
BANK BORROWINGS - Unused loan f
BANK BORROWINGS - Unused loan facilities (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Debt Instrument | |||
Short-term borrowings | $ 33,684 | ¥ 234,500 | ¥ 50,000 |
Long-term bank borrowings (including current portion) | 112,000 | 187,284 | |
Unsecured Borrowing | |||
Debt Instrument | |||
Short-term borrowings | 34,500 | ||
Long-term bank borrowings (including current portion) | 49,284 | ||
Secured by a Subsidiary's Fixed Assets and Land Use Right | Long-term bank borrowings, (including current portion) 1 | |||
Debt Instrument | |||
Long-term bank borrowings (including current portion) | 112,000 | 138,000 | |
Secured by restricted cash | Short-term bank borrowings 1 | |||
Debt Instrument | |||
Short-term borrowings | ¥ 200,000 | ¥ 50,000 |
BANK BORROWINGS - Unused loan_2
BANK BORROWINGS - Unused loan facilities (Parenthetical) (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Debt Instrument | |||
Assets pledged as collateral | $ 31,564 | ¥ 219,736 | |
Short-term bank borrowings 1 | |||
Debt Instrument | |||
Restricted cash | 31,000 | 215,816 | ¥ 60,796 |
Long-term bank borrowings, (including current portion) 1 | Fixed assets | |||
Debt Instrument | |||
Assets pledged as collateral | 29,267 | 203,747 | 286,596 |
Long-term bank borrowings, (including current portion) 1 | Land Use Rights [Member] | |||
Debt Instrument | |||
Assets pledged as collateral | $ 2,297 | ¥ 15,989 | ¥ 16,403 |
BANK BORROWINGS - Additional In
BANK BORROWINGS - Additional Information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Short and long term bank borrowings | |||
Short-term bank borrowings, weighted average interest rate | 4.56% | 4.56% | 4.05% |
Short-term bank borrowings, term | 1 year | ||
Unused loan facilities (in RMB) or (in dollars) | $ 46,837 | ¥ 326,068 | ¥ 21,375 |
Long Term Bank Borrowings | |||
Short and long term bank borrowings | |||
Long-term bank borrowings, weighted average interest rate | 5.28% | 5.28% | 5.31% |
ACCRUED EXPENSES AND OTHER PA_3
ACCRUED EXPENSES AND OTHER PAYABLES (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
ACCRUED EXPENSES AND OTHER PAYABLES | |||
Payroll and welfare payables | $ 25,740 | ¥ 179,195 | ¥ 224,265 |
Value-added tax and other taxes payable | 2,086 | 14,523 | 16,931 |
Payables for office supplies and utilities | 3,528 | 24,562 | 21,719 |
Payables for the purchase of property and equipment | 79,255 | 551,759 | 207,512 |
Payables for the purchase of intangible assets | 421 | 2,934 | 4,576 |
Accrued service fees | 7,576 | 52,746 | 41,618 |
Interest payables | 8,469 | 58,961 | 54,376 |
Liability classified RSU | 303 | 2,109 | 4,970 |
Payables for acquisitions | 6,867 | 47,805 | 47,755 |
Others | 6,368 | 44,341 | 35,598 |
Accrued expenses and other payables | $ 140,613 | ¥ 978,935 | ¥ 659,320 |
LEASES - Total lease cost (Deta
LEASES - Total lease cost (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Finance lease cost: | ||||
Depreciation | $ 31,122 | ¥ 216,664 | ||
Interest expenses | 17,263 | 120,185 | ¥ 79,935 | ¥ 63,757 |
Operating lease cost | 30,853 | 214,795 | ||
Total lease cost | $ 79,238 | ¥ 551,644 |
LEASES - Other information rela
LEASES - Other information related to leases (Details) - 12 months ended Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash payments for operating leases | $ 27,748 | ¥ 193,174 |
Operating cash payments for finance leases | $ 47,921 | ¥ 333,614 |
LEASES - Future lease payments
LEASES - Future lease payments under operating leases and finance leases (Details) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) | |
Future lease payments under finance leases | |||
2020 | $ 52,390 | ¥ 364,729 | |
2021 | 55,449 | 386,027 | |
2022 | 54,234 | 377,564 | |
2023 | 17,660 | 122,947 | |
2024 | 17,382 | 121,008 | |
2025 and thereafter | 270,144 | 1,880,687 | |
Total future lease payments | 467,259 | 3,252,962 | |
Less: Imputed interest | (224,575) | (1,563,446) | |
Present value of future lease payments | [1] | 242,684 | 1,689,516 |
Future lease payments under operating leases | |||
2020 | 67,033 | 466,670 | |
2021 | 53,657 | 373,552 | |
2022 | 23,075 | 160,644 | |
2023 | 12,501 | 87,028 | |
2024 | 6,821 | 47,484 | |
2025 and thereafter | 92,996 | 647,419 | |
Total future lease payments | 256,083 | 1,782,797 | |
Less: Imputed interest | (76,615) | (533,376) | |
Present value of future lease payments | [1] | $ 179,468 | ¥ 1,249,421 |
[1] | * Present value of future operating lease payments consisted of current portion of operating lease liabilities, non-current portion of operating lease liabilities and operating lease liabilities in amounts due to related parties, amounting to RMB437,817 (US$62,888), RMB579,102 (US$83,183) and RMB232,502 (US$33,397) for the year ended December 31, 2019, respectively.Present value of future finance lease payments consisted of current portion of finance lease liabilities, non-current portion of finance lease liabilities and finance lease liabilities in amounts due to related parties, amounting to RMB227,115 (US$32,623), RMB896,927 (US$128,836) and RMB565,474 (US$81,225) for the year ended December 31, 2019, respectively. |
LEASES - Additional information
LEASES - Additional information (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | |
Cash paid for amounts included in the measurement of lease liabilities: | |||||
Operating lease's weighted average remaining lease term | 9 years 4 months 24 days | 9 years 4 months 24 days | |||
Operating lease's weighted average discount rate | 6.09% | 6.09% | |||
Finance lease's weighted average remaining lease term | 15 years 3 months 18 days | 15 years 3 months 18 days | |||
Finance lease's weighted average discount rate | 8.43% | 8.43% | |||
Operating lease cost | $ 30,853 | ¥ 214,795 | |||
Interest expenses | 17,263 | ¥ 120,185 | ¥ 79,935 | ¥ 63,757 | |
Current portion of operating lease liabilities | 62,888 | ¥ 437,817 | |||
Non-current portion of operating lease liabilities | 83,183 | 579,102 | |||
Operating lease liabilities due to related parties | 33,397 | 232,502 | |||
Current portion of finance lease liabilities | 32,623 | 219,695 | 227,115 | ||
Non-current portion of finance lease liabilities | 128,836 | ¥ 765,993 | 896,927 | ||
Finance lease liabilities due to related parties | $ 81,225 | ¥ 565,474 |
. BONDS PAYABLE - Long-Term Bor
. BONDS PAYABLE - Long-Term Borrowings, Including Bonds Payable, Bank and Other Borrowings (Detail) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
BONDS PAYABLE | ||
2020 | $ 136,100 | ¥ 947,505 |
2021 | 306,223 | 2,131,860 |
2022 | $ 5,817 | ¥ 40,500 |
BONDS PAYABLE - Additional Info
BONDS PAYABLE - Additional Information (Details) ¥ in Thousands, $ in Thousands | Aug. 12, 2019USD ($) | Apr. 16, 2019USD ($) | Apr. 15, 2019USD ($) | Apr. 15, 2019CNY (¥) | Sep. 29, 2017USD ($) | Aug. 17, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2017CNY (¥) | Aug. 17, 2017USD ($) |
Debt Instrument | ||||||||||
Proceeds from issuance of bonds, net | $ 289,018 | ¥ 2,012,084 | ¥ 1,936,154 | |||||||
Loss on debt extinguishment | $ 2,714 | ¥ 18,895 | ||||||||
Bonds 7% Due 2020 | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, face amount | $ 100,000 | $ 200,000 | ||||||||
Principal amount repurchased | $ 18,000 | $ 150,839 | ||||||||
Total aggregate principal amount repurchased (as a percent) | 50.28% | |||||||||
Outstanding principal amount | $ 131,161 | |||||||||
Debt instrument, stated rate | 7.00% | 7.00% | ||||||||
Debt instrument, premium price | 100.04 | |||||||||
Debt instrument, effective yield | 6.98% | |||||||||
Proceeds from issuance of bonds, net | ¥ | ¥ 1,926,419 | |||||||||
Bonds 7.875%, Due 2021 | ||||||||||
Debt Instrument | ||||||||||
Debt instrument, face amount | $ 300,000 | |||||||||
Debt instrument, stated rate | 7.875% | |||||||||
Proceeds from issuance of bonds, net | $ 283,903 | ¥ 1,976,474 |
DEFERRED GOVERNMENT GRANTS - Mo
DEFERRED GOVERNMENT GRANTS - Movements of Deferred Grants (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
DEFERRED GOVERNMENT GRANTS | ||||
Balance at beginning of the year | $ 2,268 | ¥ 15,792 | ¥ 22,435 | ¥ 30,993 |
Additions | 500 | 2,877 | ||
Decrease due to disposal of subsidiaries | (3,573) | |||
Recognized as a reduction of depreciation expense | (1,047) | (7,291) | (7,143) | (7,862) |
Balance at end of the year | $ 1,221 | ¥ 8,501 | ¥ 15,792 | ¥ 22,435 |
DEFERRED GOVERNMENT GRANTS - Ad
DEFERRED GOVERNMENT GRANTS - Additional Information (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
DEFERRED GOVERNMENT GRANTS | |||
Government grants received | ¥ 0 | ¥ 500 | ¥ 2,877 |
TREASURY STOCK (Details)
TREASURY STOCK (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
TREASURY STOCK | |||
Share repurchase plan, shares repurchased (in shares) | 242,830 | 0 | 3,448,482 |
American Depository Shares | |||
TREASURY STOCK | |||
Share repurchase plan, shares repurchased (in shares) | 242,830 | 0 | 3,448,482 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||
Beginning balance | ¥ 5,363,184 | ¥ 5,201,004 | ¥ 6,151,017 | |
Other comprehensive income (loss) | $ (1,160) | (8,075) | 88,652 | (120,963) |
Ending balance | 751,478 | 5,231,628 | 5,363,184 | 5,201,004 |
Accumulated Translation Adjustment | ||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||
Beginning balance | 85,979 | (2,673) | 118,290 | |
Other comprehensive income (loss) | (8,075) | 88,652 | (120,963) | |
Ending balance | $ 11,190 | ¥ 77,904 | ¥ 85,979 | ¥ (2,673) |
MAINLAND CHINA EMPLOYEE CONTR_2
MAINLAND CHINA EMPLOYEE CONTRIBUTION PLAN (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
PRC | ||||
MAINLAND CHINA EMPLOYEE CONTRIBUTION PLAN | ||||
Total expense for defined contribution plan | $ 17,419 | ¥ 121,266 | ¥ 122,362 | ¥ 134,053 |
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, 2019USD ($)$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2019CNY (¥)shares | |
Number of options | |||
Outstanding, beginning balance | shares | 1,479,214 | ||
Exercised (in shares) | shares | (33,869) | ||
Outstanding, ending balance | shares | 1,445,345 | 1,479,214 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 1,445,345 | 1,445,345 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares | $ 0.51 | ||
Weighted average exercise price | |||
Outstanding, beginning balance | $ / shares | 0.51 | ||
Exercised | $ / shares | 0.55 | ||
Outstanding, ending balance | $ / shares | $ 0.51 | $ 0.51 | |
Weighted average remaining contractual term | |||
Outstanding, December 31, 2019 | 1 year 3 months 18 days | 2 years 2 months 12 days | |
Vested and expected to vest at December 31, 2018 | 1 year 3 months 18 days | ||
Exercisable as of December 31, 2019 | 1 year 3 months 18 days | ||
Aggregate intrinsic value | |||
Outstanding, December 31, 2019 | $ 1,005 | ¥ 6,997 | |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1 | $ | $ 1,005 |
SHARE-BASED COMPENSATION - Rest
SHARE-BASED COMPENSATION - Restricted stock units activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
2010 Plan | ||
Number of RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 0.51 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 1,445,345 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 1,005 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 0.55 | |
Restricted Stock Units (RSUs) | ||
Number of RSUs | ||
Unvested, beginning balance | 3,218,452 | |
Granted | 544,120 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 7.67 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 7.22 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 6.52 | |
Forfeited | (210,392) | |
Unvested, ending balance | 2,696,129 | 3,218,452 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested | $ 19,547 | |
Vested | (856,051) | |
Weighted-average grant date fair value | ||
Unvested, beginning balance (in dollars per share) | $ 6.66 | |
Unvested, ending balance (in dollars per share) | $ 6.83 | $ 6.66 |
Weighted-average remaining contractual terms (Years) | ||
Unvested, December 31, 2018 | 7 years 9 months 18 days | 9 years |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share compensation expense (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
SHARE-BASED COMPENSATION | ||||
Share based compensation expense | $ 6,308 | ¥ 43,916 | ¥ 59,538 | ¥ 47,129 |
Cost of Revenues | ||||
SHARE-BASED COMPENSATION | ||||
Share based compensation expense | 271 | 1,884 | 2,668 | (277) |
Selling and Marketing Expense | ||||
SHARE-BASED COMPENSATION | ||||
Share based compensation expense | 51 | 354 | 2,139 | (681) |
General and Administrative Expense | ||||
SHARE-BASED COMPENSATION | ||||
Share based compensation expense | 5,817 | 40,501 | 53,346 | 47,945 |
Research and Development Expense | ||||
SHARE-BASED COMPENSATION | ||||
Share based compensation expense | $ 169 | ¥ 1,177 | ¥ 1,385 | ¥ 142 |
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, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2018CNY (¥)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2019CNY (¥)shares | May 29, 2014shares |
SHARE-BASED COMPENSATION | ||||||||||
Aggregate intrinsic value of options exercise | $ | $ 22 | $ 248 | $ 306 | |||||||
Share based compensation expense | $ 6,308 | ¥ 43,916 | ¥ 59,538 | ¥ 47,129 | ||||||
Dermot Entities | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share based compensation expense | ¥ | ¥ 0 | ¥ 0 | ¥ 5,752 | |||||||
Performance Based Awards | One or Four-Year Period | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share based compensation, RSUs granted | 464,120 | 464,120 | 487,368 | 487,368 | 611,111 | 611,111 | ||||
Performance Based Awards | Option One | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Performance review period | 1 year | 1 year | ||||||||
Performance Based Awards | Option Two | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Performance review period | 4 years | 4 years | ||||||||
Restricted Stock Units (RSUs) | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share based compensation, RSUs granted | 544,120 | 544,120 | ||||||||
Aggregate fair value, unvested | $ 19,547 | ¥ 136,082 | ||||||||
Weighted-average grant-date fair value | $ / shares | $ 7.67 | $ 6.39 | $ 6.31 | |||||||
Total fair value vested | $ | $ 6,185 | $ 9,422 | $ 18,238 | |||||||
Unrecognized share-based compensation cost | $ 8,606 | ¥ 59,913 | ||||||||
Unrecognized compensation costs, weighted-average recognition period | 2 years 6 months | 2 years 6 months | ||||||||
Minimum Performance Target | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share based compensation, RSUs granted | 64,000 | 64,000 | 2,188,226 | 2,188,226 | ||||||
Market Based Awards | ||||||||||
SHARE-BASED COMPENSATION | ||||||||||
Share based compensation, RSUs granted | 16,000 | 16,000 | 547,056 | 547,056 | ||||||
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 | 1,445,345 | 1,479,214 | 1,479,214 | 1,445,345 | ||||||
Share based compensation, aggregate intrinsic value | $ 1,005 | ¥ 6,997 | ||||||||
Share based compensation, fair value of option outstanding at grant date | 2,084 | ¥ 14,508 | ||||||||
Share based compensation, fair value of shares exercised during the period | $ | $ 42 | $ 239 | $ 404 | |||||||
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 |
TAXATION - Income Taxes (Detail
TAXATION - Income Taxes (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
TAXATION | ||||
Loss before income taxes | $ (25,252) | ¥ (175,809) | ¥ (162,325) | ¥ (1,007,814) |
Non-PRC | ||||
TAXATION | ||||
Loss before income taxes | (25,676) | (178,762) | (214,063) | (286,388) |
PRC | ||||
TAXATION | ||||
Loss before income taxes | $ 424 | ¥ 2,953 | ¥ 51,738 | ¥ (721,426) |
TAXATION - Income Tax Benefits
TAXATION - Income Tax Benefits (Expense) (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
TAXATION | ||||
Current | $ (10,101) | ¥ (70,324) | ¥ (44,187) | ¥ (37,856) |
Deferred | 9,320 | 64,887 | 19,776 | 128,026 |
Income tax benefits (expenses) | $ (781) | ¥ (5,437) | ¥ (24,411) | ¥ 90,170 |
TAXATION - PRC operations (Deta
TAXATION - PRC operations (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
TAXATION | ||||
Loss before income taxes | $ (25,252) | ¥ (175,809) | ¥ (162,325) | ¥ (1,007,814) |
Income tax benefits computed at applicable tax rates (25%) | 6,313 | 43,952 | 40,581 | 251,954 |
Non-deductible expenses | (3,316) | (23,082) | (2,834) | (5,468) |
Research and development expenses | 2,829 | 19,688 | 25,906 | 11,895 |
Preferential rate | 2,903 | 20,213 | 11,701 | (90,076) |
Current and deferred tax rate differences | (1,250) | (8,699) | 37,934 | 33,366 |
International rate differences | (11,069) | (77,066) | (63,525) | 59,029 |
Tax exempted income | 108 | 754 | ||
Unrecognized tax benefits | 248 | 1,728 | 1,472 | (6,259) |
Deferred tax expense | 2,851 | |||
Change in valuation allowance | 3,652 | 25,423 | (79,694) | (174,388) |
Prior year provision to return true up | (1,199) | (8,348) | 4,048 | 7,266 |
Income tax benefits (expenses) | $ (781) | ¥ (5,437) | ¥ (24,411) | ¥ 90,170 |
TAXATION - PRC operations (Pare
TAXATION - PRC operations (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
TAXATION | |||
Statutory income tax rate | 25.00% | 25.00% | 25.00% |
TAXATION - Deferred Taxes (Deta
TAXATION - Deferred Taxes (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Non-current | |||
Allowance for doubtful debt | $ 6,976 | ¥ 48,568 | ¥ 38,993 |
Accrued expenses | 3,036 | 21,139 | 25,894 |
Tax losses | 21,115 | 146,996 | 151,440 |
Property and equipment | 2,955 | 20,567 | 15,299 |
Intangible assets | 530 | 3,691 | 2,221 |
Finance lease | 9,932 | 69,148 | 50,980 |
Deferred government grant | 171 | 1,189 | 2,662 |
Loss picked up on equity method investments | 8,145 | 56,706 | 56,616 |
Valuation allowance | (22,786) | (158,638) | (184,664) |
Total deferred tax assets | 30,074 | 209,366 | 159,441 |
Non-current | |||
Intangible assets | 14,970 | 104,217 | 89,536 |
Property and equipment | 11,696 | 81,424 | 48,496 |
Capitalized interest expenses | 2,176 | 15,146 | 15,837 |
Gain picked up from equity method investments | 256 | 1,785 | 3,851 |
Total non-current deferred tax liabilities | $ 29,098 | ¥ 202,572 | ¥ 157,720 |
TAXATION - Unrecognized Tax Ben
TAXATION - Unrecognized Tax Benefits (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
TAXATION | |||
Balance at beginning of year | $ 647 | ¥ 4,509 | ¥ 11,582 |
Reversal based on tax positions related to prior years | (469) | (3,266) | (9,070) |
Additions based on tax positions related to the current year | 69 | 479 | 1,997 |
Balance at end of year | $ 247 | ¥ 1,722 | ¥ 4,509 |
TAXATION - Additional Informati
TAXATION - Additional Information (Details) ¥ in Thousands, $ in Thousands | Jan. 01, 2008 | Nov. 30, 2016 | Oct. 31, 2015 | Apr. 30, 2011 | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2008 | Dec. 31, 2014 | Dec. 31, 2019CNY (¥) |
TAXATION | |||||||||||||||
Unified enterprise income tax rate | 25.00% | ||||||||||||||
Undistributed earnings from its PRC subsidiaries | $ 189,291 | ¥ 1,317,809 | |||||||||||||
Unrecognized tax benefits | 351 | ¥ 6,677 | 2,443 | ||||||||||||
Unrecognized tax benefits impact in the effective rate | $ 129 | 897 | |||||||||||||
Shanghai Blue Cloud Technology Co., Ltd. ("SH Blue Cloud") | |||||||||||||||
TAXATION | |||||||||||||||
Preferential tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||||
Preferential tax rate, additional term | 3 years | ||||||||||||||
Shenzhen Diyixian Telecommunication Co., Ltd. ("SZ DYX") | |||||||||||||||
TAXATION | |||||||||||||||
Preferential tax rate | 15.00% | 15.00% | 15.00% | 15.00% | 15.00% | ||||||||||
Preferential tax rate, additional term | 3 years | ||||||||||||||
Beijing 21Vianet Broad Band Data Center Co., Ltd. ("21Vianet Beijing") | |||||||||||||||
TAXATION | |||||||||||||||
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% | 25.00% | ||||||||||
Beijing iJoy Information Technology Co., Ltd. ("BJ iJoy") | |||||||||||||||
TAXATION | |||||||||||||||
Unified enterprise income tax rate | 25.00% | 25.00% | |||||||||||||
Tax holiday, exemption rate | 50.00% | 50.00% | 50.00% | 100.00% | 100.00% | ||||||||||
Tax holiday reduction period | 3 years | 2 years | |||||||||||||
TAIWAN | DYX Taiwan | |||||||||||||||
TAXATION | |||||||||||||||
Income tax rate | 20.00% | 20.00% | 20.00% | 17.00% | |||||||||||
PRC | |||||||||||||||
TAXATION | |||||||||||||||
Income tax rate on PRC tax resident enterprises | 25.00% | 25.00% | |||||||||||||
Net tax operating losses from PRC subsidiaries (in RMB) | $ 94,983 | 661,253 | |||||||||||||
Interest expenses (in RMB) | (211) | ¥ (1,447) | ¥ (2,761) | ¥ 674 | |||||||||||
Accumulated interest expenses (in RMB) | $ 104 | ¥ 2,168 | ¥ 721 | ||||||||||||
PRC | Minimum | |||||||||||||||
TAXATION | |||||||||||||||
Net tax operating losses expiration year | 2020 | 2020 | |||||||||||||
PRC | Maximum | |||||||||||||||
TAXATION | |||||||||||||||
Net tax operating losses expiration year | 2029 | 2029 | |||||||||||||
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2019CNY (¥) | |
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans from | $ 23,979 | ¥ 52,328 | ¥ 166,935 | ||
Jingliang Interconnected Cloud Technology Co Ltd | Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 1,268 | ¥ 8,829 | 3,477 | ||
Beijing Tuspark Harmonious Investment Development Co Ltd | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans from | 3,579 | 13,850 | 24,917 | ||
Related party transaction, Lease deposit paid | 11,472 | ||||
Related party transaction, Lease payment paid | 9,887 | 68,832 | |||
Xiaomi Communication Technology Limited and Beijing Xiaomi Mobile Software Limited | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 62,871 | 437,694 | 374,085 | ¥ 220,110 | |
Qidi Bus (Beijing) Technology Co., Ltd | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 1,067 | 7,427 | |||
Beijing Kingsoft Cloud Network Technology Limited | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans from | 154 | 609 | 1,073 | ||
Beijing Kingsoft Cloud Network Technology Limited | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 499 | 3,475 | 6,281 | 8,046 | |
Beijing Kingsoft Cloud Network Technology Limited | Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 502 | 3,492 | 13,204 | 7,775 | |
Dyxnet Corporate Service Limited | Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 5,238 | 6,424 | |||
Beijing Cheetah Mobile Technology Limited | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 24 | 169 | 2,079 | 5,128 | |
Dyxnet Internet Center Limited | Equipment and Property | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, purchase of equipment | 1,234 | ||||
Beijing Bozhiruihai Network Technology Co., Ltd. ("BZRH") | Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 4,239 | ||||
WiFire (Beijing) Technology Co., Ltd. | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 278 | 1,934 | 16,490 | 9,726 | |
Related party transaction, loans from | 909 | 6,330 | |||
WiFire (Beijing) Technology Co., Ltd. | Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 4,066 | 1,616 | |||
Beijing Taiji Data Tech Co Ltd | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 1,135 | 7,899 | 13,681 | ||
Related party transaction expense | 2,865 | 19,942 | 7,095 | ||
Related party transaction, loans to | 215 | 1,500 | |||
Related party transaction, loans from | 6,724 | ||||
Beijing Chengyishidai Network Technology Company Limited | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 5,590 | 38,918 | 18,667 | 2,979 | |
Related party transaction, loans from | 7,158 | ||||
UNISVNET Technology Co Ltd | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 1,011 | ||||
Other Related Party Transactions | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans from | 137 | 1,826 | 950 | ||
Other Related Party Transactions | Service Revenue | |||||
RELATED PARTY TRANSACTIONS | |||||
Revenue from related party transactions | 215 | 1,494 | 4,493 | 3,314 | |
Other Related Party Transactions | Service Expense [Member] | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction expense | 843 | 5,866 | 6,396 | 2,632 | |
Beijing Fastweb Network Technology Co Ltd Bjfastweb | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans to | 20,000 | ||||
Related party transaction, interest income from loan | 101 | 700 | 700 | 210 | |
Beijing Fastweb Network Technology Co Ltd Bjfastweb | Equipment and Property | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, sales of equipment | 1,021 | ||||
WNT Technology Limited | Equipment and Property | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, purchase of equipment | ¥ 2,629 | ||||
Ziguang Financial Leasing Co Ltd | |||||
RELATED PARTY TRANSACTIONS | |||||
Related party transaction, loans from | 3,901 | 8,938 | ¥ 27,160 | ||
Related party transaction, Lease deposit paid | 884 | 6,154 | 2,042 | ||
Related party transaction, Lease payment paid | $ 2,464 | ¥ 17,156 | ¥ 4,897 |
RELATED PARTY TRANSACTIONS - _2
RELATED PARTY TRANSACTIONS - Related party balances (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Amounts due from related parties current: | |||
Amounts due from related parties current | $ 43,331 | ¥ 301,665 | ¥ 125,446 |
Amounts due from related parties non-current: | |||
Amounts due from related parties non current | 2,967 | 20,654 | 34,424 |
Amounts due to related parties current: | |||
Amount due to a related party | 23,979 | 166,935 | 52,328 |
Amounts due from related parties non-current: | |||
Amounts due to related parties non current | 107,142 | 745,899 | 504,478 |
Marble Stone SH Group Limited ("Marble SH") | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 14,379 | 100,106 | |
Shihua DC Investment Group Limited ("Shihua Investment Group") [Member] | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 11,856 | 82,542 | |
Amounts due to related parties current: | |||
Amount due to a related party | 12,069 | 84,021 | |
Xiaomi Communication Technology Limited and Beijing Xiaomi Mobile Software Limited | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 5,714 | 39,778 | 41,159 |
Marble Stone Holdings Limited ("Marble Holdings") | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 4,271 | 29,736 | |
Shihua DC Investment Management Limited ("Shihua Investment Management") | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 4,008 | 27,905 | |
Amounts due to related parties current: | |||
Amount due to a related party | 3,230 | 22,484 | |
WiFire (Beijing) Technology Co., Ltd. | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 36,578 | ||
Amounts due to related parties current: | |||
Amount due to a related party | 909 | 6,330 | |
Shanghai Fawei Technology Co., Ltd. (SH Fawei) | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 13,742 | ||
Shanghai Shibei Hi-Tech Co., Ltd. | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 1,408 | 9,800 | 9,800 |
Beijing Kingsoft Cloud Network Technology Limited | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 982 | ||
Amounts due to related parties current: | |||
Amount due to a related party | 154 | 1,073 | 609 |
Wuhan Fastweb Cloud Computing Company Limited | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 5,131 | ||
Beijing Taiji Data Tech Co Ltd | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 1,364 | 9,499 | 13,542 |
Amounts due to related parties current: | |||
Amount due to a related party | 6,724 | ||
Qidi Bus (Beijing) Technology Co., Ltd | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 179 | 1,249 | |
UNISVNET Technology Co Ltd | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 1,072 | ||
Other Related Party Transactions | |||
Amounts due from related parties current: | |||
Amounts due from related parties current | 152 | 1,050 | 3,440 |
Amounts due from related parties non-current: | |||
Amounts due from related parties non current | 86 | 596 | |
Amounts due to related parties current: | |||
Amount due to a related party | 137 | 950 | 1,826 |
Beijing Fastweb Network Technology Co Ltd Bjfastweb | |||
Amounts due from related parties non-current: | |||
Amounts due from related parties non current | 20,910 | ||
Beijing Bozhi Ruihai Network Technology Co Ltd | |||
Amounts due to related parties current: | |||
Amount due to a related party | 5,088 | ||
Beijing Chengyishidai Network Technology Company Limited | |||
Amounts due to related parties current: | |||
Amount due to a related party | 7,158 | ||
Ziguang Financial Leasing Co Ltd | |||
Amounts due from related parties non-current: | |||
Amounts due from related parties non current | 1,177 | 8,195 | 2,042 |
Amounts due to related parties current: | |||
Amount due to a related party | 3,901 | 27,160 | 8,938 |
Amounts due from related parties non-current: | |||
Amounts due to related parties non current | 6,807 | 47,388 | 12,527 |
Beijing Tuspark Harmonious Investment Development Co Ltd | |||
Amounts due from related parties non-current: | |||
Amounts due from related parties non current | 1,704 | 11,863 | 11,472 |
Amounts due to related parties current: | |||
Amount due to a related party | 3,579 | 24,917 | 13,850 |
Amounts due from related parties non-current: | |||
Amounts due to related parties non current | $ 100,335 | ¥ 698,511 | 443,622 |
Wi Fire Shanghai Network Technology Co Ltd | |||
Amounts due to related parties current: | |||
Amount due to a related party | 8,135 | ||
Shihua DC Investment Holdings Limited | |||
Amounts due from related parties non-current: | |||
Amounts due to related parties non current | ¥ 48,329 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional information (Details) - 12 months ended Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) | CNY (¥) |
RELATED PARTY TRANSACTIONS | |||
Impairment of amount due from equity investees | $ 7,490 | ¥ 52,142 | |
Shihua Holdings 2's subsidiaries | |||
RELATED PARTY TRANSACTIONS | |||
Business acquisition, equity interests acquired | 100.00% | 100.00% | |
WiFire (Beijing) Technology Co., Ltd. | |||
RELATED PARTY TRANSACTIONS | |||
Amount due from/to related parties offset | $ 2,926 | ¥ 20,367 | |
Impairment of amount due from equity investees | $ 7,490 | ¥ 52,142 |
SEGMENT REPORTING- Long lived a
SEGMENT REPORTING- Long lived assets and revenues (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
SEGMENT REPORTING | ||||
Revenues | $ 544,251 | ¥ 3,788,967 | ¥ 3,401,037 | ¥ 3,392,705 |
Cost | (409,308) | (2,849,518) | (2,456,166) | (2,634,295) |
Gross profit (loss) | 134,943 | 939,449 | 944,871 | 758,410 |
Operating income (expenses) | ||||
Operating income | 986 | 6,862 | 5,027 | 5,439 |
Sales and marketing expenses | (29,634) | (206,309) | (172,176) | (256,682) |
Research and development expenses | (12,754) | (88,792) | (92,109) | (149,143) |
General and administrative expenses | (59,651) | (415,277) | (462,637) | (519,950) |
(Allowance) reversal for doubtful debt | (224) | (1,557) | 598 | (37,427) |
Impairment of receivables from equity investees | (7,490) | (52,142) | ||
Changes in the fair value of contingent purchase consideration payables | 13,905 | (937) | ||
Impairment of goodwill | (766,440) | |||
Impairment of long-lived assets | 0 | 0 | (401,808) | |
Operating loss | 26,176 | 182,234 | 237,479 | (1,368,538) |
Hosting and Related Services | ||||
Operating income (expenses) | ||||
Impairment of goodwill | 0 | 0 | ||
Operating Segments | Hosting and Related Services | ||||
SEGMENT REPORTING | ||||
Revenues | 544,251 | 3,788,967 | 3,401,037 | 2,975,178 |
Cost | (409,308) | (2,849,518) | (2,456,166) | (2,130,279) |
Gross profit (loss) | 134,943 | 939,449 | 944,871 | 844,899 |
Operating income (expenses) | ||||
Operating income | 986 | 6,862 | 5,027 | 5,439 |
Sales and marketing expenses | (29,634) | (206,309) | (172,176) | (171,761) |
Research and development expenses | (12,754) | (88,792) | (92,109) | (97,597) |
General and administrative expenses | (59,651) | (415,277) | (462,637) | (417,154) |
(Allowance) reversal for doubtful debt | (224) | (1,557) | 598 | (6,257) |
Changes in the fair value of contingent purchase consideration payables | 13,905 | (937) | ||
Operating loss | $ 26,176 | ¥ 182,234 | ¥ 237,479 | 156,632 |
Operating Segments | Managed Network Services | ||||
SEGMENT REPORTING | ||||
Revenues | 417,527 | |||
Cost | (504,016) | |||
Gross profit (loss) | (86,489) | |||
Operating income (expenses) | ||||
Sales and marketing expenses | (84,921) | |||
Research and development expenses | (51,546) | |||
General and administrative expenses | (102,796) | |||
(Allowance) reversal for doubtful debt | (31,170) | |||
Impairment of goodwill | (766,440) | |||
Impairment of long-lived assets | (401,808) | |||
Operating loss | ¥ (1,525,170) |
SEGMENT REPORTING - Additional
SEGMENT REPORTING - Additional Information (Details) - segment | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEGMENT REPORTING | ||||
Number of segments | 1 | 1 | 1 | 2 |
RESTRICTED NET ASSETS (Details)
RESTRICTED NET ASSETS (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
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 | $ 8,687 | ¥ 60,469 | ¥ 42,403 |
Restricted net asset, PRC generally accepted accounting principles (in RMB) or (in dollars) | $ 967,584 | ¥ 6,736,125 |
LOSS PER SHARE - Basic and dilu
LOSS PER SHARE - Basic and diluted loss per share (Details) ¥ / shares in Units, $ / shares in Units, ¥ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019CNY (¥)¥ / sharesshares | Dec. 31, 2018CNY (¥)¥ / sharesshares | Dec. 31, 2017CNY (¥)¥ / sharesshares | |
Numerator: | ||||
Net loss | $ (26,033) | ¥ (181,246) | ¥ (186,736) | ¥ (917,644) |
Net loss (profit) attributable to noncontrolling interest and redeemable noncontrolling interest | (150) | (1,046) | (18,329) | 144,914 |
Net loss attributable to ordinary shareholders | (26,183) | (182,292) | (205,065) | (772,730) |
Plus increase in accretion of redeemable noncontrolling interests | ¥ | (141,896) | |||
Adjusted net loss attributable to ordinary shareholders | $ (26,183) | ¥ (182,292) | ¥ (205,065) | ¥ (914,626) |
Denominator: | ||||
Weighted average number of shares outstanding - basic (in shares) | 668,833,756 | 668,833,756 | 674,732,130 | 672,836,226 |
Weighted average number of shares outstanding - diluted (in shares) | 668,833,756 | 668,833,756 | 674,732,130 | 672,836,226 |
Loss per share-Basic: | ||||
Net loss | (per share) | $ (0.04) | ¥ (0.27) | ¥ (0.30) | ¥ (1.36) |
Basic (in per share) | (per share) | (0.04) | (0.27) | (0.30) | (1.36) |
Loss per share-Diluted: | ||||
Net loss | (per share) | (0.04) | (0.27) | (0.30) | (1.36) |
Diluted (in per share) | (per share) | $ (0.04) | ¥ (0.27) | ¥ (0.30) | ¥ (1.36) |
LOSS PER SHARE - Additional Inf
LOSS PER SHARE - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
LOSS PER SHARE | |||
Shares issued to depository bank (in shares) | 6,700,002 | 0 | 9,000,000 |
SHARE CAPITAL (Details)
SHARE CAPITAL (Details) | 12 Months Ended | ||||
Dec. 31, 2019shares | Dec. 31, 2018shares | Dec. 31, 2017shares | Oct. 31, 2019$ / sharesshares | Oct. 31, 2010Vote | |
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 | 304,200 | 3,070,500 | 3,119,052 | ||
Shares issued | 1,200,000,000 | 1,200,000,000 | |||
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 C Ordinary Shares | |||||
SHARE CAPITAL | |||||
Entitled vote per ordinary share | Vote | 1 | ||||
Conversion share ratio | 1 | ||||
Shares issued | 60,000 | 0 | |||
Class C Ordinary Shares | Personal Group Limited | |||||
SHARE CAPITAL | |||||
Shares issued | 60,000 | ||||
Share Price | $ / shares | $ 1.35 |
REDEEMABLE NONCONTROLLING INT_3
REDEEMABLE NONCONTROLLING INTERESTS - Disposal of subsidiaries (Details) ¥ in Thousands | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
REDEEMABLE NONCONTROLLING INTERESTS | |
Beginning balance | ¥ 700,000 |
Loss for the year | (141,896) |
Increase in accretion of redeemable noncontrolling interests | 141,896 |
Reversal due to extinguishment of put option | ¥ (700,000) |
REDEEMABLE NONCONTROLLING INT_4
REDEEMABLE NONCONTROLLING INTERESTS - Additional Information (Details) ¥ in Thousands | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016 | Dec. 31, 2015tranche | May 31, 2014 | |
Aipu Group | ||||
REDEEMABLE NONCONTROLLING INTERESTS | ||||
Percentage of equity interests acquired | 50.00% | |||
Number of tranches | tranche | 3 | |||
Business acquisition, equity interests held by non controlling interest holders maximum percentage of eligible shares to be put each year by option exercise right | 11.00% | 28.00% | ||
Ownership percentage after transaction | 50.00% | |||
Aipu Group | Floor | ||||
REDEEMABLE NONCONTROLLING INTERESTS | ||||
Financial and operational performance targeted amount used to compute put option exercise price | ¥ 700,000 | |||
Aipu Group | Ceiling | ||||
REDEEMABLE NONCONTROLLING INTERESTS | ||||
Financial and operational performance targeted amount used to compute put option exercise price | ¥ 800,000 | |||
Aipu Group | ||||
REDEEMABLE NONCONTROLLING INTERESTS | ||||
Noncontrolling interest, ownership percentage | 50.00% | 50.00% |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and liabilities measured (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | $ 69,436 | ¥ 483,394 | ¥ 1,441,976 |
Liabilities measured at fair value on recurring basis | 431,445 | 3,003,639 | 2,035,331 |
Available-for-sales Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | 246 | 1,713 | 2,537 |
Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | 300,082 | 2,089,114 | 2,030,361 |
Liability Classified RSU | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | 303 | 2,109 | 4,970 |
Current portion of bonds payable | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | 131,060 | 912,416 | |
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 | 52,265 | 363,856 | 245,014 |
Bank Time Deposits | Cash equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | $ 16,925 | 117,825 | 1,194,425 |
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 | 481,681 | 1,439,439 | |
Liabilities measured at fair value on recurring basis | 3,001,530 | 2,030,361 | |
Quoted prices in active markets for identical assets and liabilities (Level 1) | Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | 2,089,114 | 2,030,361 | |
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 | 912,416 | ||
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 | 363,856 | 245,014 | |
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 | 117,825 | 1,194,425 | |
Unobservable inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Assets measured at fair value on recurring basis | 1,713 | 2,537 | |
Liabilities measured at fair value on recurring basis | 2,109 | 4,970 | |
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 | 1,713 | 2,537 | |
Unobservable inputs (Level 3) | Liability Classified RSU | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Liabilities measured at fair value on recurring basis | ¥ 2,109 | ¥ 4,970 |
FAIR VALUE MEASUREMENTS - Liabi
FAIR VALUE MEASUREMENTS - Liabilities measured (Details) ¥ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | |
Business Acquisition Contingent Purchase Consideration | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Beginning Balance | ¥ 36,734 | ||
Changes in the fair value | (13,905) | ||
Business Acquisition Contingent Purchase Consideration | Payment of cash consideration | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Bonuses settled in cash during 2017 | (22,829) | ||
Liability Classified RSU | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | |||
Beginning Balance | ¥ 4,970 | 11,865 | |
Reclassification to equity | (2,861) | (587) | |
Reversal | (6,308) | ||
Ending Balance | $ 303 | ¥ 2,109 | ¥ 4,970 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Capital and purchase commitments (Details) - Dec. 31, 2019 ¥ in Thousands, $ in Thousands | USD ($) | CNY (¥) |
Computer and Network Equipment and Construction in Progress | Capital Commitments | ||
Long-term Purchase Commitment [Line Items] | ||
2020 | $ 32,393 | ¥ 225,511 |
commitments to purchase | 32,393 | 225,511 |
Bandwidth and Cabinet Capacity | Purchase commitment | ||
Long-term Purchase Commitment [Line Items] | ||
2020 | 86,267 | 600,571 |
2021 | 8,705 | 60,602 |
2022 | 6,459 | 44,968 |
2023 | 30 | 206 |
2024 and thereafter | 297 | 2,068 |
commitments to purchase | $ 101,758 | ¥ 708,415 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Apr. 09, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2012CNY (¥) |
COMMITMENTS AND CONTINGENCIES | |||||
Fair value of contingent consideration | ¥ 47,755 | ||||
Accrual for unrecognized tax benefits and interest | $ 351 | ¥ 2,443 | |||
Securities Litigation | |||||
COMMITMENTS AND CONTINGENCIES | |||||
Litigation settlement amount | ¥ 58,808 | ||||
Accrued liability for legal contingencies | ¥ 10,007 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Feb. 29, 2020 | Dec. 31, 2019 | |
Subsequent Event | ||
Term of the notes | 1 year | |
Subsequent Event | Convertible Notes Payable [Member] | ||
Subsequent Event | ||
Total aggregate principal amount | $ 200,000 | |
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) |
Current assets | ||||
Cash and cash equivalents | $ 259,772 | ¥ 1,808,483 | ¥ 2,358,556 | ¥ 1,949,631 |
Restricted cash | 68,786 | 478,873 | 265,214 | ¥ 242,494 |
Short-term investments | 52,265 | 363,856 | 245,014 | |
Prepaid expenses and other current assets | 232,433 | 1,618,149 | 1,159,574 | |
Amount due from a related party | 43,331 | 301,665 | 125,446 | |
Total current assets | 750,982 | 5,228,184 | 4,678,109 | |
Non-current assets | ||||
Total non-current assets | 1,299,307 | 9,045,522 | 6,472,608 | |
Total assets | 2,050,289 | 14,273,706 | 11,150,717 | |
Current liabilities: | ||||
Accrued expenses and other payables | 140,613 | 978,935 | 659,320 | |
Interest payable | 8,469 | 58,961 | 54,376 | |
Current portion of bonds payable | 130,878 | 911,147 | ||
Total current liabilities | 641,932 | 4,469,021 | 2,191,210 | |
Non-current liabilities | ||||
Bonds payable | 296,002 | 2,060,708 | 2,037,836 | |
Total non-current liabilities | 656,879 | 4,573,057 | 3,596,323 | |
Total liabilities | 1,298,811 | 9,042,078 | 5,787,533 | |
Shareholders' equity: | ||||
Additional paid-in capital | 1,321,866 | 9,202,567 | 9,141,494 | |
Accumulated other comprehensive income | 11,190 | 77,904 | 85,979 | |
Accumulated deficit | (580,078) | (4,038,390) | (3,838,032) | |
Treasury stock | (50,206) | (349,523) | (337,683) | |
Total 21Vianet Group, Inc. shareholders' equity | 711,466 | 4,953,073 | 5,094,207 | |
Total liabilities and shareholders' equity | 2,050,289 | 14,273,706 | 11,150,717 | |
Parent Company | ||||
Current assets | ||||
Cash and cash equivalents | 35,047 | 243,989 | 590,470 | |
Short-term investments | 19,944 | 138,848 | 150,990 | |
Prepaid expenses and other current assets | 15,168 | 105,597 | 98,337 | |
Amounts due from subsidiaries | 880,318 | 6,128,595 | 5,062,149 | |
Total current assets | 950,477 | 6,617,029 | 5,901,946 | |
Non-current assets | ||||
Investments in subsidiaries | 207,786 | 1,446,563 | 1,364,685 | |
Total non-current assets | 207,786 | 1,446,563 | 1,364,685 | |
Total assets | 1,158,263 | 8,063,592 | 7,266,631 | |
Current liabilities: | ||||
Accrued expenses and other payables | 8,275 | 57,612 | 56,656 | |
Account payables | 8 | 56 | 2,725 | |
Interest payable | 8,406 | 58,525 | 53,965 | |
Current portion of bonds payable | 130,878 | 911,147 | ||
Amounts due to subsidiaries | 3,228 | 22,471 | 21,242 | |
Total current liabilities | 150,795 | 1,049,811 | 134,588 | |
Non-current liabilities | ||||
Bonds payable | 296,002 | 2,060,708 | 2,037,836 | |
Total non-current liabilities | 296,002 | 2,060,708 | 2,037,836 | |
Total liabilities | 446,797 | 3,110,519 | 2,172,424 | |
Shareholders' equity: | ||||
Additional paid-in capital | 1,321,866 | 9,202,567 | 9,141,494 | |
Accumulated other comprehensive income | 11,190 | 77,904 | 85,979 | |
Accumulated deficit | (571,391) | (3,977,921) | (3,795,629) | |
Treasury stock | (50,206) | (349,523) | (337,683) | |
Total 21Vianet Group, Inc. shareholders' equity | 711,466 | 4,953,073 | 5,094,207 | |
Total liabilities and shareholders' equity | 1,158,263 | 8,063,592 | 7,266,631 | |
Class A Ordinary Shares | ||||
Shareholders' equity: | ||||
Ordinary shares | 5 | 34 | 34 | |
Class A Ordinary Shares | Parent Company | ||||
Shareholders' equity: | ||||
Ordinary shares | 5 | 34 | 34 | |
Class B Ordinary Shares | ||||
Shareholders' equity: | ||||
Ordinary shares | 2 | 12 | 12 | |
Class B Ordinary Shares | Parent Company | ||||
Shareholders' equity: | ||||
Ordinary shares | $ 2 | ¥ 12 | ¥ 12 |
PARENT COMPANY ONLY CONDENSED_4
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed balance sheets (Parenthetical) (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
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) | 1,200,000,000 | 1,200,000,000 |
Ordinary shares, shares issued (in shares) | 505,253,850 | 499,706,628 |
Ordinary shares, shares outstanding (in shares) | 505,253,850 | 499,706,628 |
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) | 174,649,638 | 174,649,638 |
Ordinary shares, shares outstanding (in shares) | 174,649,638 | 174,649,638 |
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 | 0 |
Ordinary shares, shares issued (in shares) | 60,000 | 0 |
Ordinary shares, shares outstanding (in shares) | 60,000 | 0 |
Parent Company | Class A Ordinary Shares | ||
Condensed balance sheets | ||
Ordinary shares, par value (in dollars per share) | $ 0.00001 | |
Ordinary shares, shares authorized (in shares) | 1,200,000,000 | 1,200,000,000 |
Ordinary shares, shares issued (in shares) | 505,253,850 | 499,706,628 |
Ordinary shares, shares outstanding (in shares) | 505,253,850 | 499,706,628 |
Parent Company | Class B Ordinary Shares | ||
Condensed balance sheets | ||
Ordinary shares, par value (in dollars per share) | $ 0.00001 | |
Ordinary shares, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Ordinary shares, shares issued (in shares) | 174,649,638 | 174,649,638 |
Ordinary shares, shares outstanding (in shares) | 174,649,638 | 174,649,638 |
Parent Company | Class C Ordinary Shares | ||
Condensed balance sheets | ||
Ordinary shares, par value (in dollars per share) | $ 0.00001 | |
Ordinary shares, shares authorized (in shares) | 60,000 | 0 |
Ordinary shares, shares issued (in shares) | 60,000 | 0 |
Ordinary shares, shares outstanding (in shares) | 60,000 | 0 |
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Operating Expenses | ||||
General and administrative expenses | $ (59,651) | ¥ (415,277) | ¥ (462,637) | ¥ (519,950) |
Changes in the fair value of contingent purchase consideration payables | 13,905 | (937) | ||
Operating loss | 26,176 | 182,234 | 237,479 | (1,368,538) |
Loss before income taxes | (25,252) | (175,809) | (162,325) | (1,007,814) |
Income tax expenses | (781) | (5,437) | (24,411) | 90,170 |
Net loss attributable to the Company's ordinary shareholders | (26,183) | (182,292) | (205,065) | (772,730) |
Parent Company | ||||
Operating Expenses | ||||
General and administrative expenses | (6,389) | (44,490) | (65,949) | (145,890) |
Changes in the fair value of contingent purchase consideration payables | 13,905 | (937) | ||
Operating loss | (6,389) | (44,490) | (52,044) | (146,827) |
Other loss | (39,440) | (274,572) | (262,186) | (95,210) |
Loss before income taxes | (26,183) | (182,292) | (205,065) | (772,730) |
Income tax expenses | 0 | 0 | 0 | 0 |
Net loss attributable to the Company's ordinary shareholders | (26,183) | (182,292) | (205,065) | (772,730) |
Parent Company | Subsidiaries and Consolidated VIEs | ||||
Operating Expenses | ||||
Operating loss | $ 19,646 | ¥ 136,770 | ¥ 109,165 | ¥ (530,693) |
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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Condensed statements of comprehensive loss | ||||
Net loss | $ (26,183) | ¥ (182,292) | ¥ (205,065) | ¥ (772,730) |
Other comprehensive (loss) income, net of tax of nil: | ||||
Comprehensive loss | (27,193) | (189,321) | (98,084) | (1,038,607) |
Comprehensive loss attributable to the Company's ordinary shareholders | (27,343) | (190,367) | (116,413) | (893,693) |
Parent Company | ||||
Condensed statements of comprehensive loss | ||||
Net loss | (26,183) | (182,292) | (205,065) | (772,730) |
Other comprehensive (loss) income, net of tax of nil: | ||||
Foreign currency translation adjustments, net of tax of nil | (1,160) | (8,075) | 88,652 | (120,963) |
Other comprehensive (loss) income, net of tax of nil: | (1,160) | (8,075) | 88,652 | (120,963) |
Comprehensive loss | (27,343) | (190,367) | (116,413) | (893,693) |
Comprehensive loss attributable to the Company's ordinary shareholders | $ (27,343) | ¥ (190,367) | ¥ (116,413) | ¥ (893,693) |
PARENT COMPANY ONLY CONDENSED_7
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statement of Comprehensive Loss (Parenthetical) (Details) - CNY (¥) ¥ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | 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 | 0 | ¥ 0 |
Foreign currency translation adjustments, tax | ¥ 0 | ¥ 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, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | |
Condensed Cash Flow Statements, Captions | ||||
Net cash used in operating activities | $ 115,332 | ¥ 802,922 | ¥ 704,966 | ¥ 487,202 |
Net cash used in investing activities | (231,550) | (1,611,983) | (304,846) | (833,307) |
Net cash generated from (used in) financing activities | 66,302 | 461,557 | (19,901) | (612,651) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (43,645) | (303,844) | 465,552 | (1,099,054) |
Cash and cash equivalents and restricted cash at beginning of the year | 382,232 | 2,661,021 | 2,195,469 | 3,294,523 |
Cash and cash equivalents and restricted cash at end of the year | 338,587 | 2,357,177 | 2,661,021 | 2,195,469 |
Parent Company | ||||
Condensed Cash Flow Statements, Captions | ||||
Net cash used in operating activities | (20,539) | (142,989) | (166,068) | (18,324) |
Net cash used in investing activities | (145,258) | (1,011,257) | (203,651) | (1,291,042) |
Net cash generated from (used in) financing activities | 116,028 | 807,765 | 43,145 | (130,187) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (49,769) | (346,481) | (326,574) | (1,439,533) |
Cash and cash equivalents and restricted cash at beginning of the year | 84,816 | 590,470 | 917,044 | 2,356,597 |
Cash and cash equivalents and restricted cash at end of the year | $ 35,047 | ¥ 243,989 | ¥ 590,470 | ¥ 917,044 |
PARENT COMPANY ONLY CONDENSED_9
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Related Party transactions (Details) ¥ in Thousands, $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) |
Amount due from related parties current | |||
Amount due from related parties current | $ 43,331 | ¥ 301,665 | ¥ 125,446 |
Amount due to related parties | |||
Amounts due to related parties of the consolidated VIEs without resource to the primary beneficiaries | 23,979 | 166,935 | 52,328 |
Parent Company | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 880,318 | 6,128,595 | 5,062,149 |
Amounts due to subsidiaries | |||
Amount due to subsidiaries current | 3,228 | 22,471 | 21,242 |
Parent Company | 21Vianet Hong Kong Entities | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 841,083 | 5,855,452 | 4,938,618 |
Parent Company | Hong Kong Fastweb Holdings Co., Limited ("Fastweb HK") | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 9,637 | 67,088 | 65,976 |
Parent Company | 21Vianet Mobile Limited ("21V Mobile") | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 8,334 | 58,018 | 52,579 |
Parent Company | WiFire Open Network Group Ltd | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 21,162 | 147,326 | 4,277 |
Parent Company | WiFire Group Inc. ("WiFire Group") | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 100 | 698 | 686 |
Parent Company | Other Subsidiaries | |||
Amount due from subsidiaries current | |||
Amount due from subsidiaries current | 2 | 13 | 13 |
Amounts due to subsidiaries | |||
Amount due to subsidiaries current | 434 | 3,022 | 2,891 |
Parent Company | Beijing 21Vianet Zhi Hui Neng Yuan System Technology Company Limited | |||
Amounts due to subsidiaries | |||
Amount due to subsidiaries current | $ 2,794 | ¥ 19,449 | ¥ 18,351 |
PARENT COMPANY ONLY CONDENSE_10
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Additional Information (Details) ¥ in Thousands, $ in Thousands | Aug. 12, 2019USD ($) | Apr. 16, 2019USD ($) | Apr. 15, 2019USD ($) | Apr. 15, 2019CNY (¥) | Sep. 29, 2017USD ($) | Aug. 17, 2017CNY (¥) | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | Dec. 31, 2017CNY (¥) | Aug. 17, 2017USD ($) |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||||||||||
Proceeds from issuance of Notes, net | $ 289,018 | ¥ 2,012,084 | ¥ 1,936,154 | |||||||
Loss on debt extinguishment | 2,714 | 18,895 | ||||||||
Bonds 7% Due 2020 | ||||||||||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||||||||||
Debt instrument, face amount | $ 100,000 | $ 200,000 | ||||||||
Debt instrument, stated rate | 7.00% | 7.00% | ||||||||
Debt instrument, premium price | 100.04 | |||||||||
Debt instrument, effective yield | 6.98% | |||||||||
Proceeds from issuance of Notes, net | ¥ | ¥ 1,926,419 | |||||||||
Principal amount repurchased | $ 18,000 | $ 150,839 | ||||||||
Total aggregate principal amount repurchased (as a percent) | 50.28% | |||||||||
Outstanding principal amount | 131,161 | |||||||||
Bonds 7.875%, Due 2021 | ||||||||||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||||||||||
Debt instrument, face amount | $ 300,000 | |||||||||
Debt instrument, stated rate | 7.875% | |||||||||
Proceeds from issuance of Notes, net | $ 283,903 | ¥ 1,976,474 | ||||||||
Parent Company | ||||||||||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||||||||||
Loss on debt extinguishment | 2,714 | 18,895 | ||||||||
Parent Company | Bonds 7% Due 2020 | ||||||||||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||||||||||
Debt instrument, face amount | $ 100,000 | $ 200,000 | ||||||||
Debt instrument, stated rate | 7.00% | 7.00% | ||||||||
Debt instrument, maturity date | Aug. 17, 2020 | |||||||||
Debt instrument, frequency of periodic payment | Notes is payable semi-annually in arrears on August 17 and February 17 in each year | |||||||||
Debt instrument, date of first required payment | Feb. 17, 2018 | |||||||||
Debt instrument, premium price | 100.04 | |||||||||
Debt instrument, effective yield | 6.98% | |||||||||
Proceeds from issuance of Notes, net | ¥ | 1,926,419 | |||||||||
Principal amount repurchased | $ 18,000 | $ 150,839 | ||||||||
Total aggregate principal amount repurchased (as a percent) | 50.28% | |||||||||
Outstanding principal amount | 131,161 | |||||||||
Parent Company | Bonds 7.875%, Due 2021 | ||||||||||
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | ||||||||||
Debt instrument, face amount | $ 300,000 | |||||||||
Debt instrument, stated rate | 7.875% | |||||||||
Debt instrument, frequency of periodic payment | Notes is payable semi-annually in arrears on April 15 and October 15 in each year | Notes is payable semi-annually in arrears on April 15 and October 15 in each year | ||||||||
Debt instrument, date of first required payment | Oct. 15, 2019 | Oct. 15, 2019 | ||||||||
Proceeds from issuance of Notes, net | $ 283,903 | ¥ 1,976,474 |