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21Vianet Group, Inc. Reports Unaudited Second Quarter 2020 Financial Results
Aug 19,2020

BEIJING, Aug. 19, 2020 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq: VNET) ("21Vianet" or the "Company"), a leading carrier- and cloud-neutral Internet data center services provider in China, today announced its unaudited financial results for the second quarter ended June 30, 2020. The Company will hold a conference call at 8:00 A.M. on August 19, 2020, U.S. Eastern Time to discuss the financial results. Dial-in details are provided at the end of this release.

Second Quarter 2020 Financial Highlights

  • Net revenues increased by 28.8% to RMB1.14 billion (US$161.9 million) from RMB888.0 million in the same period of 2019.
  • Adjusted cash gross profit (non-GAAP) increased by 15.8% to RMB467.6 million (US$66.2 million) from RMB403.8 million in the same period of 2019. Adjusted cash gross margin (non-GAAP) was 40.9%, compared to 45.5% in the same period of 2019 and 38.2% in the first quarter of 2020.
  • Adjusted EBITDA (non-GAAP) increased by 17.5% to RMB306.4 million (US$43.4 million) from RMB260.7 million in the same period of 2019. Adjusted EBITDA margin (non-GAAP) was 26.8%, compared to 29.4% in the same period of 2019 and 23.8% in the first quarter of 2020.

Second Quarter 2020 Operational Highlights

  • Retail IDC MRR1 per cabinet increased slightly to RMB8,953 in the second quarter of 2020, compared to RMB8,663 in the same period of 2019 and RMB8,747 in the first quarter of 2020.
  • Total cabinets under management net increased by 4,404 to 44,050 as of June 30, 2020, compared to 39,646 as of March 31, 2020, and 31,111 as of June 30, 2019.
  • Compound utilization rate in the second quarter of 2020 improved to 61.4% from 60.4% in the first quarter of 2020, mainly reflecting the ongoing ramp-up of different stages of cabinets.
    °  Utilization rate for mature IDCs delivered prior to 2019 improved to 73.6% in the second quarter of 2020 from 72.3% in the first quarter of 2020.
    °  Utilization rate for newly-built and ramp-up IDCs delivered since 2019 improved to 30.1% in the second quarter of 2020, compared to 12.3% in the first quarter of 2020.

________
1
Retail IDC MRR: Refers to Monthly Recurring Revenues for the retail IDC business.

Mr. Alvin Wang, Chief Executive Officer and President of the Company, stated, “We concluded the second quarter of 2020 with strong financial and operational results despite the lingering impact of COVID-19. This solid quarterly performance was mainly driven by our on-track expansion of cabinet capacity in strategic markets as well as our strong sales momentum in both the wholesale and retail IDC space. During the quarter, we expanded our IDC capacity by 4,404 cabinets, continued to fortify our resources and pipeline capacity, as well as appointed a seasoned industry veteran to oversee our Retail IDC Business Group. We believe that these are clear-cut demonstrations of our team’s strong execution capabilities. In light of these advances, we remain confident in our ability to meet our growth target and continue satisfying customer demand.”

Ms. Sharon Liu, Chief Financial Officer of the Company, commented, “As illustrated by the significant improvement to our bottom line, we achieved a strong financial performance in the second quarter of 2020. During the quarter, we continued to expand our cabinet capacity in line with our long-term growth plan, adding 4,404 new cabinets in the period. We also improved our operating efficiency and continued to serve first-rate companies to increase our utilization rates. The Blackstone investment and increasing lines of credit from banks that we received in the quarter have further endorsed our industry leadership and development potential going forward. Looking ahead, we plan to maintain our consistent growth trajectory while also gradually improving our profitability to deliver increasing shareholder returns over the long term.”

Second Quarter 2020 Financial Results

NET REVENUES: Net revenues in the second quarter of 2020 increased by 28.8% to RMB1.14 billion (US$161.9 million) from RMB888.0 million in the second quarter of 2019, representing an increase of 4.9% from RMB1.09 billion in the first quarter of 2020. This increase was mainly due to the growing demand for IDC services, which was caused by the long-term trend of corporate digitization across China.

GROSS PROFIT: Gross profit in the second quarter of 2020 was RMB272.3 million (US$38.5 million), representing an increase of 19.3% from RMB228.2 million in the same period of 2019 and an increase of 16.3% from RMB234.1 million in the first quarter of 2020. Gross margin in the second quarter of 2020 was 23.8%, compared to 25.7% in the same period of 2019 and 21.5% in the first quarter of 2020. The year-over-year decrease in gross margin was mainly due to the delivery of additional IDC capacity and the fact that the utilization rates of these newly-added cabinets require additional time to ramp up.

ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was  RMB467.6 million (US$66.2 million) in the second quarter of 2020, compared to RMB403.8 million in the same period of 2019 and RMB417.1 million in the first quarter of 2020. Adjusted cash gross margin in the second quarter of 2020 was 40.9%, compared to 45.5% in the same period of 2019 and 38.2% in the first quarter of 2020.
                                                                                                                                                                                            
OPERATING EXPENSES: Total operating expenses in the second quarter of 2020 were RMB193.5 million (US$27.4 million), compared to RMB168.2 million in the same period of 2019 and RMB197.4 million in the first quarter of 2020. As a percentage of net revenues, total operating expenses decreased to 16.9% in the second quarter of 2020 from 18.9% in the same period of 2019 and 18.1% in the first quarter of 2020.

Sales and marketing expenses in the second quarter of 2020 were RMB51.7 million (US$7.3 million), representing an increase of 10.8% from RMB46.6 million in the same period of 2019 and an increase of 6.0% from RMB48.7 million in the first quarter of 2020. The increase in sales and marketing expenses was due to the Company’s efforts to grow its customer base, strengthen its relationships with large-scale customers, and further develop its value-added services.

Research and development expenses in the second quarter of 2020 were RMB23.7 million (US$3.4 million), representing an increase of 25.9% from RMB18.8 million in the same period of 2019 and an increase of 12.8% from RMB21.0 million in the first quarter of 2020.  The increase was mainly attributable to the Company’s ongoing investments in technology upgrades.

General and administrative expenses in the second quarter of 2020 were RMB119.5 million (US$16.9 million), representing an increase of 16.8% from RMB102.3 million in the same period of 2019 and a decrease of 4.6% from RMB125.2 million in the first quarter of 2020. The year-over-year increase in general and administrative expenses was mainly attributable to increased share-based compensation expenses in connection with the employment of more experienced staff, while the quarter-over-quarter decrease in general and administrative expenses was mainly attributable to the Company’s ongoing work to improve its operating efficiency.

ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses, increased to RMB182.5 million (US$25.8 million) in the second quarter of 2020, representing an increase of 13.1% from RMB161.3 million in the second quarter of 2019 and an increase of 2.6% from RMB177.8 million in the first quarter of 2020. As a percentage of net revenues, adjusted operating expenses reduced to 15.9% in the second quarter of 2020 from 18.2% in the same period of 2019 and 16.3% in the first quarter of 2020.

ADJUSTED EBITDA: Adjusted EBITDA in the second quarter of 2020 increased to RMB306.4 million (US$43.4 million), representing an increase of 17.5% from RMB260.7 million in the same period of 2019 and an increase of 18.1% from RMB259.4 million in the first quarter of 2020. Adjusted EBITDA in the second quarter of 2020 excluded share-based compensation expenses of RMB11.6 million (US$1.6 million). Adjusted EBITDA margin was 26.8% in the second quarter of 2020, compared to 29.4% in the same period of 2019 and 23.8% in the first quarter of 2020.

NET PROFIT/LOSS: Net loss attributable to ordinary shareholders in the second quarter of 2020 was RMB2.12 billion (US$300.5 million), compared to RMB102.1 million in the same period of 2019 and RMB138.8 million in the first quarter of 2020. Net loss attributable to ordinary shareholders in the second quarter of 2020 mainly included changes in the fair value of convertible promissory notes of RMB1.61 billion (US$228.2 million) due to the rise in the Company’s stock price, and a deemed distribution of RMB470.6 million (US$66.6 million) from the issuance of Series A perpetual convertible preferred shares, both of which were non-operation related and non-cash loss.

PROFIT/LOSS PER SHARE: Basic and diluted loss per share were RMB3.21 (US$0.45) in the second quarter of 2020, which represents the equivalent of RMB19.26 (US$2.70) per American depositary share ("ADS"). Each ADS represents six Class A ordinary shares. Diluted loss per share is calculated using net loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

As of June 30, 2020, the aggregate amount of the Company's cash and cash equivalents, restricted cash, and short-term investments were RMB4.98 billion (US$704.9 million).

Net cash generated from operating activities in the second quarter of 2020 was RMB161.8 million (US$22.9 million), compared to RMB127.1 million in the same period of 2019 and RMB58.7 million in the first quarter of 2020. The Company paid off the remaining US$131 million of its 2020 Notes in early August.

Financial Outlook

For the third quarter of 2020, the Company expects net revenues to be in the range of RMB1,230 million to RMB1,250 million. Adjusted EBITDA is expected to be in the range of RMB340 million to RMB360 million.

For the full year of 2020, the Company expects net revenues to be in the range of RMB4,700 million to RMB4,900 million. Adjusted EBITDA is expected to be in the range of RMB1,280 million to RMB1,380 million. The midpoints of the Company’s updated estimates imply an increase of 26.7% year over year both in net revenues and adjusted EBITDA.

The forecast reflects the Company’s current and preliminary view on the market and its operational conditions, which do not factor in any of the potential future impacts caused by the COVID-19 pandemic, and are subject to change.

Conference Call

The Company will hold a conference call at 8:00 A.M. on Wednesday, August 19, 2020, U.S. Eastern Time, or 8:00 P.M. on Wednesday, August 19, 2020, Beijing Time, to discuss the financial results.

In advance of the conference call, all participants must use the following link to complete the online registration process to receive a unique registrant ID and a set of participant dial-in numbers to join the conference call.

Conference ID:1157085
Registration Link:http://apac.directeventreg.com/registration/event/1157085
  
The replay will be accessible through August 26, 2020, by dialing the following numbers:
  
United States Toll Free:+1-855-452-5696
International:+61-2-8199-0299
Conference ID:1157085
  
A live and archived webcast of the conference call will be available through the Company's investor relations website at http://ir.21vianet.com.

Non-GAAP Disclosure

In evaluating its business, 21Vianet considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA, adjusted EBITDA margin, The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.

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

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.0651 to US$1.00, the noon buying rate in effect on June 30, 2020, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Statement Regarding Unaudited Condensed Financial Information

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

About 21Vianet

21Vianet Group, Inc. is a leading carrier- and cloud-neutral Internet data center services provider in China. 21Vianet provides hosting and related services, including IDC services, cloud services, and VPN services to improve the reliability, security and speed of its customers' Internet infrastructure. Customers may locate their servers and equipment in 21Vianet's data centers and connect to China's Internet backbone. 21Vianet operates in more than 20 cities throughout China, servicing a diversified and loyal base of over 6,000 hosting and related enterprise customers that span numerous industries ranging from Internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.

Safe Harbor Statement

This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement as well as 21Vianet's strategic and operational plans contain forward-looking statements. 21Vianet may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about 21Vianet's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: 21Vianet's goals and strategies; 21Vianet's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, 21Vianet's services; 21Vianet's expectations regarding keeping and strengthening its relationships with customers; 21Vianet's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where 21Vianet provides solutions and services. Further information regarding these and other risks is included in 21Vianet's reports filed with, or furnished to, the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and 21Vianet undertakes no duty to update such information, except as required under applicable law.

Investor Relations Contacts:

21Vianet Group, Inc.
Rene Jiang
+86 10 8456 2121
IR@21Vianet.com

Julia Jiang
+86 10 8456 2121
IR@21Vianet.com

ICR, Inc.
Xinran Rao
+1 (646) 405-4922
IR@21Vianet.com


21VIANET GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))
 As of
 As of
 December 31, 2019
 June 30, 2020
 RMB
 RMB
 US$
 (Audited)
 (Unaudited)
 (Unaudited)
Assets        
Current assets:        
Cash and cash equivalents1,808,483  4,325,324  612,210 
Restricted cash478,873  427,415  60,497 
Accounts and notes receivable, net657,158  958,133  135,615 
Short-term investments363,856  157,546  22,299 
Prepaid expenses and other current assets1,618,149  1,777,856  251,638 
Amounts due from related parties301,665  78,290  11,081 
Total current assets5,228,184  7,724,564  1,093,340 
         
Non-current assets:        
Property and equipment, net5,443,565  6,522,239  923,163 
Intangible assets, net410,595  421,029  59,593 
Land use rights, net233,154  259,426  36,719 
Operating lease right-of-use assets, net1,221,616  1,148,669  162,584 
Goodwill989,530  995,200  140,861 
Long-term investments169,653  162,457  22,994 
Amounts due from related parties20,654  69,632  9,856 
Restricted cash69,821  69,628  9,855 
Deferred tax assets209,366  213,856  30,269 
Other non-current assets277,568  318,358  45,061 
Total non-current assets9,045,522  10,180,494  1,440,955 
Total assets14,273,706  17,905,058  2,534,295 
         
Liabilities and Shareholders' Equity        
Current liabilities:        
Short-term bank borrowings234,500  238,500  33,757 
Accounts and notes payable303,128  337,402  47,756 
Accrued expenses and other payables978,935  1,592,434  225,394 
Deferred revenue57,625  54,327  7,689 
Advances from customers1,068,692  1,187,661  168,103 
Income taxes payable48,032  42,683  6,041 
Amounts due to related parties166,935  67,574  9,564 
Current portion of long-term bank borrowings32,500  44,500  6,299 
Current portion of finance lease liabilities227,115  302,012  42,747 
Current portion of deferred government grant2,595  2,074  294 
Current portion of bonds payable911,147  927,636  131,298 
Current portion of operating lease liabilities437,817  489,851  69,333 
Total current liabilities4,469,021  5,286,654  748,275 
         
Non-current liabilities:        
Long-term borrowings79,500  460,347  65,158 
Amounts due to related parties745,899  780,309  110,446 
Unrecognized tax benefits2,443  3,729  528 
Deferred tax liabilities202,572  254,064  35,960 
Non-current portion of finance lease liabilities896,927  996,267  141,012 
Non-current portion of deferred government grant5,906  5,002  708 
Bonds payable2,060,708  2,099,814  297,209 
Non-current portion of operating lease liabilities579,102  444,113  62,860 
Convertible promissory notes-  3,038,867  430,124 
Total non-current liabilities4,573,057  8,082,512  1,144,005 
         
Shareholders' equity        
Treasury stock(349,523) (349,523) (49,472)
Ordinary shares46  46  7 
Additional paid-in capital9,202,567  9,709,414  1,374,278 
Accumulated other comprehensive gain77,904  86,951  12,307 
Statutory reserves60,469  59,177  8,377 
Accumulated deficit(4,038,390) (6,301,594) (891,933)
Series A perpetual convertible preferred shares-  1,044,913  147,898 
Total 21Vianet Group, Inc. shareholders’ equity4,953,073  4,249,384  601,462 
Noncontrolling interest278,555  286,508  40,553 
Total shareholders' equity5,231,628  4,535,892  642,015 
Total liabilities and shareholders' equity14,273,706  17,905,058  2,534,295 
         



21VIANET GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data)
          
 Three months ended   Six months ended
 June 30, 2019March 31, 2020June 30, 2020  June 30, 2019June 30, 2020
 RMBRMBRMBUS$  RMBRMBUS$
 (Unaudited)(Unaudited)(Unaudited)(Unaudited)  (Unaudited)(Unaudited)(Unaudited)
Net revenues888,020  1,090,797  1,144,061  161,931   1,759,879  2,234,858  316,324 
Cost of revenues(659,772) (856,686) (871,729) (123,385)  (1,290,856) (1,728,415) (244,641)
Gross profit228,248  234,111  272,332  38,546   469,023  506,443  71,683 
                      
Operating expenses                     
Sales and marketing(46,626) (48,710) (51,652) (7,311)  (90,722) (100,362) (14,205)
Research and development(18,790) (20,984) (23,665) (3,350)  (41,354) (44,649) (6,320)
General and administrative(102,341) (125,202) (119,494) (16,913)  (223,137) (244,696) (34,634)
(Allowance) reversal for doubtful debt(457) (2,521) 1,338  189   (479) (1,183) (167)
Total operating expenses(168,214) (197,417) (193,473) (27,385)  (355,692) (390,890) (55,326)
                      
Operating profit60,034  36,694  78,859  11,161   113,331  115,553  16,357 
Interest income12,389  9,382  11,713  1,658   24,240  21,095  2,986 
Interest expense(91,202) (102,258) (102,742) (14,542)  (160,644) (205,000) (29,016)
Other income8,958  859  8,197  1,160   12,033  9,056  1,282 
Other expense(4,177) (21,833) (2,158) (305)  (4,235) (23,991) (3,396)
Changes in the fair value of convertible promissory notes-  -  (1,612,054) (228,171)  -  (1,612,054) (228,171)
Foreign exchange (loss) gain(39,853) (41,747) 275  39   (10,315) (41,472) (5,870)
Loss on debt extinguishment(17,804) -  -  -   (17,804) -  - 
Loss before income taxes and (loss) gain from equity method investments(71,655) (118,903) (1,617,910) (229,000)  (43,394) (1,736,813) (245,828)
Income tax expenses(9,343) (22,486) (20,410) (2,889)  (20,084) (42,896) (6,072)
(Loss) gain from equity method investments(18,277) 3,867  (10,457) (1,480)  (29,215) (6,590) (933)
Net loss(99,275) (137,522) (1,648,777) (233,369)  (92,693) (1,786,299) (252,833)
Net gain attributable to noncontrolling interest(2,785) (1,241) (3,573) (506)  (3,727) (4,814) (681)
Net loss attributable to 21Vianet Group, Inc.(102,060) (138,763) (1,652,350) (233,875)  (96,420) (1,791,113) (253,514)
Deemed distribution to Series A perpetual convertible preferred shareholders-  -  (470,643) (66,615)  -  (470,643) (66,615)
Net loss attributable to the Company’s ordinary shareholders(102,060) (138,763) (2,122,993) (300,490)  (96,420) (2,261,756) (320,129)
                      
Loss per share                     
Basic(0.15) (0.18) (3.21) (0.45)  (0.14) (3.42) (0.48)
Diluted(0.15) (0.18) (3.21) (0.45)  (0.14) (3.42) (0.48)
Shares used in loss per share computation                     
Basic*677,802,980  669,545,073  660,949,226  660,949,226   677,689,041  660,543,890  660,543,890 
Diluted*677,802,980  669,545,073  660,949,226  660,949,226   677,689,041  660,543,890  660,543,890 
                      
Loss per ADS (6 ordinary shares equal to 1 ADS)                     
Basic(0.90) (1.08) (19.26) (2.70)  (0.84) (20.52) (2.88)
Diluted(0.90) (1.08) (19.26) (2.70)  (0.84) (20.52) (2.88)
                      
* Shares used in (loss) profit per share/ADS computation were computed under weighted average method.
          



21VIANET GROUP, INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))
          
 Three months ended   Six months ended
 June 30, 2019March 31, 2020June 30, 2020  June 30, 2019June 30, 2020
 RMBRMBRMBUS$  RMBRMBUS$
Gross profit228,248  234,111  272,332  38,546   469,023  506,443  71,683 
Plus: depreciation and amortization175,102  182,556  194,651  27,551   340,523  377,207  53,390 
Plus: share-based compensation expenses459  460  569  81   933  1,029  145 
Adjusted cash gross profit403,809  417,127  467,552  66,178   810,479  884,679  125,218 
Adjusted cash gross margin45.5% 38.2% 40.9% 40.9%  46.1% 39.6% 39.6%
                      
Operating expenses(168,214) (197,417) (193,473) (27,385)  (355,692) (390,890) (55,326)
Plus: share-based compensation expenses6,932  19,628  11,005  1,558   23,097  30,633  4,336 
Adjusted operating expenses(161,282) (177,789) (182,468) (25,827)  (332,595) (360,257) (50,990)
                      
Operating profit60,034  36,694  78,859  11,161   113,331  115,553  16,357 
Plus: depreciation and amortization193,302  202,607  215,981  30,570   376,834  418,588  59,247 
Plus: share-based compensation expenses7,391  20,088  11,574  1,638   24,030  31,662  4,481 
Adjusted EBITDA260,727  259,389  306,414  43,369   514,195  565,803  80,085 
Adjusted EBITDA margin29.4% 23.8% 26.8% 26.8%  29.2% 25.3% 25.3%
                      



21VIANET GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))
            
 Three months ended
 June 30, 2019  March 31, 2020 June 30, 2020
 RMB  RMB  RMB  US$ 
 (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited) 
CASH FLOWS FROM OPERATING ACTIVITIES           
Net loss(99,275) (137,522) (1,648,777) (233,369)
Adjustments to reconcile net loss to net cash generated from operating activities:           
Depreciation and amortization193,302  202,607  215,981  30,570 
Stock-based compensation expenses7,391  20,088  11,574  1,638 
Others69,061  42,108  1,776,114  251,392 
Changes in operating assets and liabilities           
Accounts and notes receivable(119,144) (202,262) (79,036) (11,187)
Prepaid expenses and other current assets(50,381) (8,239) (126,703) (17,934)
Accounts and notes payable14,644  71,295  (37,021) (5,240)
Accrued expenses and other payables2,298  97,263  41,951  5,938 
Deferred revenue936  15,433  (18,731) (2,651)
Advances from customers125,227  89,629  29,340  4,153 
Others(16,949) (131,746) (2,905) (411)
Net cash generated from operating activities127,110  58,654  161,787  22,899 
            
CASH FLOWS FROM INVESTING ACTIVITIES           
Purchases of property and equipment(208,520) (436,034) (478,231) (67,689)
Purchases of intangible assets(6,990) (529) (15,707) (2,223)
(Payments for) proceeds from investments(127,148) 207,690  68,989  9,765 
Proceeds from (payments for) other investing activities11,575  (18,351) 9,484  1,342 
Net cash used in investing activities(331,083) (247,224) (415,465) (58,805)
            
CASH FLOWS FROM FINANCING ACTIVITIES           
(Repayments of) proceeds from bank borrowings(27,779) 192,869  203,978  28,871 
Payments for finance lease(66,316) (77,336) (73,165) (10,356)
Repurchase of 2020 Notes(1,021,539) -  -  - 
Proceeds from issuance of 2021 Notes2,012,084  -  -  - 
Payment of issuance cost of 2021 Notes(35,427) -  -  - 
Proceeds from issuance of convertible promissory notes-  899,808  509,577  72,126 
Proceeds from Series A perpetual convertible preferred shares-  -  1,058,325  149,796 
(Payments for) proceeds from other financing activities(3,542) 61,008  107,796  15,258 
Net cash generated from financing activities857,481  1,076,349  1,806,511  255,695 
            
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 56,386  13,800  10,778  1,526 
Net increase in cash, cash equivalents and restricted cash709,894  901,580  1,563,610  221,315 
Cash, cash equivalents and restricted cash at beginning of period2,375,506  2,357,177  3,258,757  461,247 
Cash, cash equivalents and restricted cash at end of period3,085,400  3,258,757  4,822,367  682,562