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CONSOLIDATED BALANCE SHEETS (Parenthetical) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥) shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 $ / shares
Allowance for doubtful debt	¥ 188,356		¥ 134,569
Accounts and notes payable of the Consolidated VIEs without recourse to the primary beneficiaries	696,177	$ 98,054	713,628
Accrued expenses and other payables of the Consolidated VIEs without recourse to the primary beneficiaries	2,783,102	391,992	2,410,479
Advance from customers of the Consolidated VIEs without recourse to the primary beneficiaries	1,605,247	226,094	1,157,963
Deferred revenue of the Consolidated VIEs without recourse to the primary beneficiaries	95,477	13,448	95,078
Income tax payables of the Consolidated VIEs without recourse to the primary beneficiaries	35,197	4,957	42,017
Current portion of long-term borrowings of the Consolidated VIEs without recourse to the primary beneficiaries	334,511		289,941
Current portion of finance lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries.	115,806	16,311	206,260
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries	8,062	1,136	3,646
Current portion of operating lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries	780,164	109,884	674,288
Long-term bank borrowings of the Consolidated VIEs without recourse to the primary beneficiaries	5,113,521	720,224	3,049,856
Non-current portion of finance lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries	1,159,525	163,316	1,047,640
Unrecognized tax benefits of the Consolidated VIEs without recourse to the primary beneficiaries	98,457	13,867	87,174
Deferred tax liabilities of the Consolidated VIEs without recourse to the primary beneficiaries	688,362	96,954	682,580
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries	145,112	20,439	2,672
Non-current portion of operating lease liabilities of the Consolidated VIEs without resource to the primary beneficiaries	3,270,759	460,677	2,905,283
Related Party [Member]
Amounts due to related parties of the consolidated VIEs without resource to the primary beneficiaries	356,080	$ 50,153	6,928
Variable Interest Entity, Primary Beneficiary [Member]
Accounts and notes payable of the Consolidated VIEs without recourse to the primary beneficiaries	493,837		483,030
Short-term bank and other borrowings of the Consolidated VIEs without recourse to the primary beneficiaries	30,000
Accrued expenses and other payables of the Consolidated VIEs without recourse to the primary beneficiaries	1,616,423		1,488,031
Advance from customers of the Consolidated VIEs without recourse to the primary beneficiaries	1,605,247		1,157,963
Deferred revenue of the Consolidated VIEs without recourse to the primary beneficiaries	83,546		84,775
Income tax payables of the Consolidated VIEs without recourse to the primary beneficiaries	13,531		25,188
Current portion of long-term borrowings of the Consolidated VIEs without recourse to the primary beneficiaries	544,803		417,442
Current portion of finance lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries.	97,388		165,221
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries	8,062		3,646
Current portion of operating lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries	754,935		655,663
Long-term bank borrowings of the Consolidated VIEs without recourse to the primary beneficiaries	2,464,811		1,861,545
Non-current portion of finance lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries	720,954		615,309
Unrecognized tax benefits of the Consolidated VIEs without recourse to the primary beneficiaries	98,082		86,799
Deferred tax liabilities of the Consolidated VIEs without recourse to the primary beneficiaries	139,174		149,475
Deferred government grants of the Consolidated VIEs without recourse to the primary beneficiaries	11,862		2,726
Non-current portion of operating lease liabilities of the Consolidated VIEs without resource to the primary beneficiaries	3,230,506		2,872,323
Variable Interest Entity, Primary Beneficiary [Member] \| Related Party [Member]
Amounts due to related parties of the consolidated VIEs without resource to the primary beneficiaries	¥ 356,080		¥ 6,928
Common Class A
Ordinary shares, par value (in dollars per share) \| $ / shares		$ 0.00001		$ 0.00001
Ordinary shares, shares authorized (in shares) \| shares	2,698,935,000	2,698,935,000	1,199,490,000
Ordinary shares, shares issued (in shares) \| shares	1,513,609,283	1,513,609,283	859,932,323
Ordinary shares, shares outstanding (in shares) \| shares	1,513,609,283	1,513,609,283	859,932,323
Common Class B
Ordinary shares, par value (in dollars per share) \| $ / shares		$ 0.00001		0.00001
Ordinary shares, shares authorized (in shares) \| shares	300,000,000	300,000,000	300,000,000
Ordinary shares, shares issued (in shares) \| shares	30,721,723	30,721,723	30,721,723
Ordinary shares, shares outstanding (in shares) \| shares	30,721,723	30,721,723	30,721,723
Common Class C
Ordinary shares, par value (in dollars per share) \| $ / shares		$ 0.00001		$ 0.00001
Ordinary shares, shares authorized (in shares) \| shares	60,000	60,000	60,000
Ordinary shares, shares issued (in shares) \| shares	60,000	60,000	60,000
Ordinary shares, shares outstanding (in shares) \| shares	60,000	60,000	60,000

SHORT-TERM INVESTMENTS

12 Months Ended

Dec. 31, 2023

SHORT-TERM INVESTMENTS.

SHORT-TERM INVESTMENTS

6. SHORT-TERM INVESTMENTS

Short-term investments consisted of the following as of December 31, 2023:


		As of December 31,
		2023
		RMB
Aggregate cost basis		354,149
Gross unrealized holding gain		2,671
Aggregate fair value		356,820

The Company’s short-term investments as of December 31, 2023 represent a short-term wealth management product issued by a financial institution in Hong Kong S.A.R. The wealth management product has been redeemed by the Company in January 2024.

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statement of Comprehensive Loss (Parenthetical) (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
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
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2023

RELATED PARTY TRANSACTIONS

Schedule of significant related party transactions


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Services provided to:
-SZ Century	1,445	14,089	—
-SH Edge Interchange	—	651	938
-Jingliang Inter Cloud	480	—	—
-BJ New Internet	170	—	—
-Others	144	2	—

Services provided by:
-CYSD	38,918	36,673	31,119
-Beijing Huaqing	1,254	—	—
-Sanhe Mingtai⁽¹⁾	—	—	17,366
-Beijing Jiwa	—	—	1,891
-Others	1,223	513	333

Loan to:
-Shanghai Puping	75,611	—	80,263
- BJ New Internet	261	—	—
-SH Edge Interchange	—	500	1,000
-Sanhe Mingtai	—	—	33,785

Receipt of loan to:
-SH Shibei	—	—	9,800

Loan by:
-Changzhou Gaoxin ⁽²⁾	—	—	350,000

Interest income from loan to:
-SH Shibei	1,321	—	(1,321)
-SH Edge Interchange	—	1	32

Interest expense by loan to:
-Changzhou Gaoxin	—	—	13,183

Lease payment paid to:
-Ziguang Finance Leasing	10,431	—	—
-Beijing Qidi Yefeng	2,154	—	—
-Sanhe Mingtai ⁽¹⁾	—	—	10,801

Cash consideration for shares repurchase
-Tuspark Innovation	1,701,804	—	—

(1)

The Company leased properties for data centers from Sanhe Mingtai. Lease cost and property management fee was RMB14,268 and RMB3,098 for the period from March 1, 2023 to December 31, 2023, respectively. As of December 31, 2023, ROU assets of RMB171,629 and lease liabilities of RMB173,628 were associated with such leases.

(2)	In May 2023, the Company obtained a loan in the amount of RMB350,000 from Changzhou Gaoxin at an interest rate of 6.0% per annum. The maturity date of the loan was March 2024, which was subsequently extended to July 2024 in March 2024.

Schedule of related party balances


	As of December 31,
	2022	2023
	RMB	RMB
Amounts due from related parties:
Current:
-Shanghai Puping	138,142	218,405
-SH Shibei	11,121	—
-BJ New Internet	441	441
-SH Edge Interchange	1,191	1,533
-Sanhe Mingtai	—	56,833
-Others	1,194	25
	152,089	277,237
Amounts due to related parties:
Current:
- CYSD	6,398	—
-Changzhou Gaoxin	—	356,067
-Others	530	13
	6,928	356,080

LEASES - Future lease payments under operating leases and finance leases (Details) ¥ in Thousands	Dec. 31, 2023 CNY (¥)
Future lease payments under finance leases
2024	¥ 180,355
2025	173,799
2026	165,015
2027	158,978
2028	156,920
2029 and thereafter	1,705,594
Total future lease payments	2,540,661
Less: Imputed interest	(1,265,329)
Present value of future lease payments*	1,275,332
Future lease payments under operating leases
2023	807,678
2024	739,747
2025	680,034
2026	545,468
2027	528,173
2028 and thereafter	2,630,069
Total future lease payments	5,931,169
Less: Imputed interest	(1,880,246)
Present value of future lease payments	¥ 4,050,923

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION- Condensed statements of operations (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Operating Expenses
General and administrative expenses	¥ (541,850)	$ (76,318)	¥ (642,945)	¥ (842,354)
Operating loss	(1,970,901)	(277,596)	121,156	21,314
Changes in the fair value of financial liabilities	(165,930)	(23,371)	22,626	829,149
Net (loss) income attributable to VNET Group, Inc.	(2,482,795)		(628,530)	626,508
Income tax expense	(114,374)	(16,109)	(133,464)	(111,407)
Net income (loss) attributable to VNET Group, Inc.	(2,643,836)	$ (372,378)	(775,952)	500,098
Parent Company
Operating Expenses
General and administrative expenses	(24,663)		(36,219)	(275,881)
Operating loss	(24,663)		(36,219)	(275,881)
Other loss	(94,452)		(247,083)	(119,932)
Changes in the fair value of financial liabilities	(165,930)		22,626	829,149
Net (loss) income attributable to VNET Group, Inc.	(2,358,791)		(515,276)	66,762
Net income (loss) attributable to VNET Group, Inc.	¥ (2,643,836)		¥ (775,952)	¥ 500,098

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

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The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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-URI https://asc.fasb.org//1943274/2147483499/205-20-50-7

Reference 35: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 230
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 28
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482740/230-10-45-28

Reference 36: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1A
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1A

Reference 37: http://www.xbrl.org/2003/role/disclosureRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482790/220-10-45-1B

Reference 38: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 220
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(20))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483621/220-10-S99-2

Reference 39: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 942
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(22))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147483589/942-220-S99-1

+ Details

GOODWILL

12 Months Ended

Dec. 31, 2023

GOODWILL.

GOODWILL

11. GOODWILL

The changes in the carrying amount of goodwill were as follows:


	For the years ended December 31,
	2022	2023
	RMB	RMB
Balance as of January 1
Goodwill, gross	1,339,657	1,364,191
Accumulated impairment losses	—	—
Goodwill, net	1,339,657	1,364,191
Goodwill acquired	24,534	—
Impairment	—	(1,364,191)
Balance as of December 31
Goodwill, gross	1,364,191	1,364,191
Accumulated impairment losses	—	(1,364,191)
Goodwill, net	1,364,191	—

As of December 31, 2021 and 2022, the Company has performed assessment and no impairment loss was recorded.

Considering the adverse changes in macroeconomic and market conditions in 2023 as well as a sustained decrease in share price, the Company determined that a quantitative assessment was required at December 31, 2023. The Company estimated the fair value of a reporting unit by using income approach, which considered a number of factors, including expected future cash flows and discounted rate. Expected future cash flows are dependent on certain key assumptions including forecsted revenue growth rates. Based on the quantitative assessment results, the difference of the reporting unit’s carrying amount over its fair value exceeded the total amount of goodwill as of December 31, 2023. Therefore, the Company recognized impairment of goodwill in its full amount of RMB1,364,191 for the year ended December 31, 2023.

EARNING (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, 2023 CNY (¥) ¥ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares
Numerator:
Net income (loss)	¥ (2,597,169)	$ (365,805)	¥ (761,994)	¥ 515,101
Net income attributable to noncontrolling interest	(46,667)	(6,573)	(13,958)	(15,003)
Net income (loss) attributable to the Company	(2,643,836)	(372,378)	(775,952)	500,098
Dividend distribution to perpetual convertible preferred shareholders				(5,831)
Adjusted net income (loss) attributable to ordinary shareholders - Basic	(2,643,836)		(775,952)	494,267
Changes in the fair value of convertible promissory notes	165,930	$ 23,371	(22,626)	(829,149)
Adjusted interest for convertible promissory notes				9,703
Adjusted net loss attributable to ordinary shareholders -Diluted	¥ (2,643,836)		¥ (775,952)	¥ (325,179)
Denominator:
Basic \| shares	901,143,138	901,143,138	886,817,620	865,352,554
Weighted average number of shares outstanding - diluted (in shares) \| shares	901,143,138	901,143,138	886,817,620	911,591,433
(Loss) earning per share-Basic:
Net (loss) earning \| ¥ / shares	¥ (2.93)		¥ (0.87)	¥ 0.57
Basic \| (per share)	(2.93)	$ (0.41)	(0.87)	0.57
Loss per share-Diluted:
Net loss \| ¥ / shares	(2.93)		(0.87)	(0.36)
Diluted \| (per share)	¥ (2.93)	$ (0.41)	¥ (0.87)	¥ (0.36)

ORGANIZATION - Significant subsidiaries of the Company and consolidated variable interest entities (Details)	12 Months Ended
	Dec. 31, 2023
Subsidiaries \| Beijing Jianghe Cloud Industrial Internet Technology Co., Ltd.("Jianghe Industrial")
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Subsidiaries \| Beijing Xunneng Digital Industry Empowerment Center Co., Ltd.("BJ Xunneng")
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Subsidiaries \| Huailai Hulianyun Technology Co., Ltd. (Huailai Hulianyun)
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Subsidiaries \| VNET Technology Development (Suzhou) Co., Ltd. (Suzhou Technology)
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Subsidiaries \| Tongyun Internet (Beijing) Cloud Computing Technology Co., Ltd. (Tongyun BJ)
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
VNET Group Limited ("VNET HK") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
VNET Data Center Co., Ltd. ("VNET China") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
VNET (Foshan) Technology Co., Ltd. ("FS Technology") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
VNET Anhui Suzhou Technology Co., Ltd. ("SZ Technology") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
VNET Hangzhou Information Technology Co., Ltd. ("HZ Technology") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
VNET Mobile Limited ("VNET Mobile") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
WiFire Group Inc. ("WiFire Group") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Joytone Infotech Co., Ltd. ("SZ Zhuoaiyi") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
VNET Ventures Limited ("Ventures") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Abitcool (China) Broadband Inc. ("aBitCool DG") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Diyixian.com Limited ("Diyixian.com") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
VNET Zhuhai Financial Leasing Co., Ltd. ("Zhuhai Financial Leasing") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
VNET DRP Investment Holdings Limited ("DRP investment") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Shihua DC Investment Holdings Limited \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	51.00%
VNET (Xi’an) Technology Co., Ltd. ("Xi’an Tech") [Member] \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	51.00%
Foshan Zhuoyi Intelligence Date Co., Ltd. ("FS Zhuoyi") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	51.00%
Beijing Hongyuan Network Technology Co., Ltd \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	51.00%
Dermot Holding Limited \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Shihua DC Investment Holdings 2 Limited ("Shihua Holdings 2") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Shanghai Waigaoqiao Free Trade Zone Hongming Logistics Co., Ltd. ("Hongming Logistics") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Shanghai Edge Connect Technology Co., Ltd. ("SH Edge Connect") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Beijing Jianghe Cloud Technology Co.,Ltd. ("BJ JHC") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Beijing Shuntou Green Energy Data Technology Co.,Ltd. ("BJ ST") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Jiwa Senlin (Beijing) Engineering Co.,Ltd.( "Jiwa Engineering BJ") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Beijing TenxCloud Technology Co., Ltd. ("BJ TenxCloud") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Zhongke Zijing Technology Co., Ltd. ("Zhongke Zijing") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Gu'an Junhui Network Technology Co., Ltd. ("Gu'an Junhui") \| Subsidiaries
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Shenzhen Diyixian Telecommunication Co., Ltd \| Variable Interest Entity, Primary Beneficiary
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	20.00%
Shanghai Hesheng Data System Co., Ltd. ("SH Hesheng") \| Subsidiaries \| Beijing Jianghe Shuzhi Technology Co., Ltd.
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%
Shanghai Edge Blue Cloud Network Technology Co., Ltd. \| Subsidiaries \| Jianghe Chuangke (Beijing) Technology Co., Ltd.("Jianghe Chuangke")
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of direct ownership by the Company	100.00%

DEFERRED GOVERNMENT GRANTS (Tables)

12 Months Ended

Dec. 31, 2023

DEFERRED GOVERNMENT GRANTS.

Schedule of movements of deferred government grants


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Balance at beginning of the year	6,174	4,368	6,318
Additions	—	5,000	155,333
Recognized as a reduction of depreciation expense	(1,806)	(3,050)	(8,477)
Balance at end of the year	4,368	6,318	153,174

TAXATION - Income Tax Benefits (Expense) (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
TAXATION
Current	¥ (157,526)		¥ (115,577)	¥ (111,082)
Deferred	43,152	$ 6,078	(17,887)	(325)
Income tax benefits (expenses)	¥ (114,374)	$ (16,109)	¥ (133,464)	¥ (111,407)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

EARNING (LOSS) PER SHARE (Tables)

12 Months Ended

Dec. 31, 2023

EARNING (LOSS) PER SHARE

Schedule of basic and diluted loss per share


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Numerator:
Net income (loss)	515,101	(761,994)	(2,597,169)
Net income attributable to noncontrolling interest	(15,003)	(13,958)	(46,667)
Net income (loss) attributable to the Company	500,098	(775,952)	(2,643,836)
Dividend distribution to perpetual convertible preferred shareholders	(5,831)	—	—
Adjusted net income (loss) attributable to ordinary shareholders - Basic	494,267	(775,952)	(2,643,836)

Changes in the fair value of financial liabilities	(829,149)	—	—
Adjusted interest for convertible promissory notes	9,703	—	—
Adjusted net loss attributable to ordinary shareholders -Diluted	(325,179)	(775,952)	(2,643,836)


Denominator:
Weighted average number of shares outstanding—basic	865,352,554	886,817,620	901,143,138
Weighted average number of shares outstanding—diluted	911,591,433	886,817,620	901,143,138
Earning (loss) per share—Basic:
Net earning (loss)	0.57	(0.87)	(2.93)
	0.57	(0.87)	(2.93)
Loss per share—Diluted:
Net loss	(0.36)	(0.87)	(2.93)
	(0.36)	(0.87)	(2.93)

LEASES - Weighted average remaining lease term and discount rate (Details)	Dec. 31, 2023	Dec. 31, 2022
Weighted average remaining lease term:
Operating lease	9 years 8 months 12 days	10 years 8 months 12 days
Finance lease	18 years 8 months 12 days	18 years 10 months 24 days
Weighted average discount rate:
Operating lease	7.59%	7.50%
Finance lease	10.04%	10.44%

ORGANIZATION - Additional Information (Details) $ in Thousands			12 Months Ended
	Dec. 19, 2016	Jan. 31, 2011 CNY (¥)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
ORGANIZATION
Assets			¥ 30,385,903,000	$ 4,279,765	¥ 26,948,405,000
Consolidated VIE's assets pledged as collateral			0
Consolidated VIE's liabilities pledged as collateral			0
Option Agreement
ORGANIZATION
Exclusive option price			¥ 1
Agreement agreement between 21Vianet China and the 21Vianet Technology, term	10 years		10 years
Agreement agreement between 21Vianet China and the 21Vianet Technology, expiration date	Dec. 18, 2026		Dec. 18, 2016
Technical Consulting and Service Agreement
ORGANIZATION
Agreement agreement between 21Vianet China and the 21Vianet Technology, term	10 years		10 years
Agreement agreement between 21Vianet China and the 21Vianet Technology, expiration date	Dec. 18, 2026		Dec. 18, 2016
Service fee per hour			¥ 1,000
Loan Agreement \| Shareholders \| Loan one
ORGANIZATION
Loan facility provided to related parties		¥ 7,000,000
Loan Agreement \| Shareholders \| Loan Two
ORGANIZATION
Loan facility provided to related parties		¥ 3,000,000
Variable Interest Entity, Primary Beneficiary
ORGANIZATION
Assets			17,294,365,000		¥ 17,323,660,000
Variable Interest Entity, Primary Beneficiary \| Asset Pledged as Collateral
ORGANIZATION
Assets			¥ 619,738,000

DEFERRED GOVERNMENT GRANTS

12 Months Ended

Dec. 31, 2023

DEFERRED GOVERNMENT GRANTS.

DEFERRED GOVERNMENT GRANTS

20. DEFERRED GOVERNMENT GRANTS

During the years ended December 31, 2021, 2022 and 2023, the Company received nil, RMB5,000 and RMB155,333 government grants respectively 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, such as completion of the construction of relevant property and equipment, 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,
	2021	2022	2023
	RMB	RMB	RMB
Balance at beginning of the year	6,174	4,368	6,318
Additions	—	5,000	155,333
Recognized as a reduction of depreciation expense	(1,806)	(3,050)	(8,477)
Balance at end of the year	4,368	6,318	153,174

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis

Summary of assets and liabilities measured at fair value on a recurring basis


	Fair value measurement using:
	Quoted prices in	Significant other
	active markets for	observable	Unobservable
	identical assets	inputs	inputs	Fair value at
	(Level 1)	(Level 2)	(Level 3)	December 31, 2022
	RMB	RMB	RMB	RMB
Long-term investments:
- Available-for-sale debt securities	—	—	1,600	1,600
Assets	—	—	1,600	1,600
Convertible promissory notes
- 2025 Convertible promissory notes	—	—	537,778	537,778
- 2026 Convertible promissory notes	3,446,432	—	—	3,446,432
- 2027 Convertible promissory notes	—	—	1,858,095	1,858,095
Liabilities	3,446,432	—	2,395,873	5,842,305


	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, 2023
	RMB	RMB	RMB	RMB
Short-term investments:
- Wealth management product	—	356,820	—	356,820
Assets	—	356,820	—	356,820

Convertible promissory notes
- 2026 Convertible promissory notes	4,196,500	—	—	4,196,500
- 2027 Convertible promissory notes	—	—	1,586,681	1,586,681
Derivative liability	—	—	188,706	188,706
Liabilities	4,196,500	—	1,775,387	5,971,887

Summary of reconciliation of all liabilities measured at fair value on a recurring basis using significant unobservable inputs (level 3)


		2025 Convertible Notes
		RMB
Fair value at December 31, 2021		513,754
Foreign exchange loss		46,650
Changes in fair value		(22,626)
Fair value at December 31, 2022		537,778
Changes in fair value		(21,816)
Settlement		(527,089)
Foreign exchange loss		11,127
Fair value at December 31, 2023		—


		Share consideration due to the original
		shareholders for business combination
		RMB
Fair value at December 31, 2021		214,577
Transfer out of Level 3		(214,577)
Fair value at December 31, 2022		—

		Derivative liability
		RMB

Fair value at December 31, 2022		—
Changes in fair value		187,746
Foreign exchange loss		960
Fair value at December 31, 2023		188,706

2025 Convertible Notes

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis

Summary of fair value of convertible notes measured using key assumptions


	As of December 31
	2022
Volatility	94.00%-96.00	%
Discount rate	16.00	%
Risk-free interest rate	4.23%-4.28	%

Derivative Liability

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis

Summary of fair value of convertible notes measured using key assumptions


	As of December 31
	2023
Volatility	90.00	%
Discount rate	14.65	%
Risk-free interest rate	3.99	%
Probability of triggering events	15.00	%

EARNING (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2023

EARNING (LOSS) PER SHARE

EARNING (LOSS) PER SHARE

26. EARNING (LOSS) PER SHARE

Basc and diluted earning (loss) per share for each of the years presented were calculated as follows:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Numerator:
Net income (loss)	515,101	(761,994)	(2,597,169)
Net income attributable to noncontrolling interest	(15,003)	(13,958)	(46,667)
Net income (loss) attributable to the Company	500,098	(775,952)	(2,643,836)
Dividend distribution to perpetual convertible preferred shareholders	(5,831)	—	—
Adjusted net income (loss) attributable to ordinary shareholders - Basic	494,267	(775,952)	(2,643,836)

Changes in the fair value of financial liabilities	(829,149)	—	—
Adjusted interest for convertible promissory notes	9,703	—	—
Adjusted net loss attributable to ordinary shareholders -Diluted	(325,179)	(775,952)	(2,643,836)


Denominator:
Weighted average number of shares outstanding—basic	865,352,554	886,817,620	901,143,138
Weighted average number of shares outstanding—diluted	911,591,433	886,817,620	901,143,138
Earning (loss) per share—Basic:
Net earning (loss)	0.57	(0.87)	(2.93)
	0.57	(0.87)	(2.93)
Loss per share—Diluted:
Net loss	(0.36)	(0.87)	(2.93)
	(0.36)	(0.87)	(2.93)

During the year ended December 31, 2021, the Company issued 7,800,000 ordinary shares to its share depositary bank which will be used to settle stock option awards upon their exercise. No consideration was received by the Company for this issuance of ordinary shares. These ordinary shares are legally issued and outstanding but are treated as escrowed shares for accounting purposes and therefore, have been excluded from the computation of loss per share. Any ordinary shares not used in the settlement of stock option awards will be returned to the Company.

Stock options, RSUs, the Company’s 2025 Convertible Notes, 2026 Convertible Notes and 2027 Convertible Notes (Note 19) or other potentially dilutive equity instruments were excluded from the calculation of diluted loss earnings per share if they were anti-dilutive.

BORROWINGS - Unused loan facilities (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Debt Instrument
Long-term borrowings (including current portion)	¥ 5,836,846	¥ 3,533,876
Unsecured Borrowing
Debt Instrument
Short-term borrowings	30,000
Long-term borrowings (including current portion)	554,834	450,008
Secured by subsidiary's property and equipment and land-use right \| Long Term Bank Borrowings
Debt Instrument
Long-term borrowings (including current portion)		156,077
Secured by subsidiary's property and equipment and land-use right and a subsidiary stock \| Long Term Bank Borrowings
Debt Instrument
Long-term borrowings (including current portion)	3,101,522	247,171
Secured by subsidiary's property and equipment and land-use right and a subsidiary stock \| Long-term bank borrowings, (including current portion) 2
Debt Instrument
Long-term borrowings (including current portion)		800,989
Secured by a subsidiary's stock \| Long Term Bank Borrowings
Debt Instrument
Long-term borrowings (including current portion)	¥ 2,180,490	¥ 1,879,631

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 835
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482900/835-30-50-1

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(f))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-3

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69B

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 69C
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481568/470-20-55-69C

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
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+ Details

TAXATION - Income Taxes (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
TAXATION - Income Taxes (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
TAXATION
Income (loss) before income taxes	¥ (2,482,795)	¥ (628,530)	¥ 626,508
Non-PRC
TAXATION
Income (loss) before income taxes	(331,586)	(421,597)	675,369
PRC
TAXATION
Income (loss) before income taxes	¥ (2,151,209)	¥ (206,933)	¥ (48,861)

- Definition

+ References

+ Details

TAXATION - Deferred Taxes (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Non-current
Allowance for doubtful debt	¥ 125,500		¥ 52,658
Impairment of long-lived assets	166,576		40,784
Impairment of long-term investment	4,866		3,024
Accrued expense	39,896		22,108
Tax losses	849,672		358,454
Property and equipment	2,919		38,365
Intangible assets	9,432		7,142
Finance lease	386,327		372,997
Deferred government grant	3,357		1,714
Operating lease	949,362		768,638
Loss picked up on equity method investments	10,558		69,440
Valuation allowance	(955,738)		(397,457)	¥ (261,960)
Total deferred tax assets, net of valuation allowance	1,592,727		1,337,867
Non-current
Intangible assets	405,964		266,922
Property and equipment	172,095		360,989
Capitalized interest expenses	49,544		39,606
Finance lease	296,789		289,586
Operating lease	949,362		768,638
Investment in subsidiaries	159,691		98,608
Total non-current deferred tax liabilities	2,033,445		1,824,349
Net deferred tax liabilities	(440,718)		(486,482)
Deferred tax assets	247,644	$ 34,880	196,098
Deferred tax liabilities	688,362	$ 96,954	682,580
Net deferred tax liabilities	¥ (440,718)		¥ (486,482)

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2023

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

24. RELATED PARTY TRANSACTIONS

a)Related parties *

Name of related parties		Relationship with the Company
Tuspark Innovation Venture Ltd. (“Tuspark Innovation”)		The controlling shareholder of the Company before April 13,2021
Ziguang Financial Leasing Co., Ltd. (“Ziguang Finance Leasing”) ⁽¹⁾		A company controlled by controlling shareholder of the Company before April 13, 2021
Beijing Huaqing Property Management Co., Ltd. (“Beijing Huaqing”) ⁽¹⁾		A company controlled by controlling shareholder of the Company before April 13, 2021
Shanghai Shibei Hi-Tech Co., Ltd. (“SH Shibei”)		Noncontrolling shareholder of a subsidiary
Shanghai Puping Information Technology Co., Ltd. (“Shanghai Puping”) ⁽²⁾		A company controlled by minority shareholder of the Company
Beijing Chengyishidai Network Engineering Technology Co., Ltd. (“CYSD”)⁽⁴⁾		Equity investee of the Company before October 16, 2023
Jingliang Interconnected Cloud Technology Co., Ltd. (“Jingliang Inter Cloud”)		Equity investee of the Company
Beijing New Internet Digital Technology Research Institution Limited (“BJ New Internet”)		Equity investee of the Company
Anhui Suzhou Century Broadband Data Technology Co., Ltd. (“SZ Century”) ⁽³⁾		A company controlled by an equity investee of principal shareholder of the Company from December 1, 2021 to October 31, 2022
SH Edge Interchange		Equity investee of the Company since September 30, 2022
Changzhou Gaoxin		Equity investee of the Company
Sanhe Mingtai Machinery Manufacturing Co., Ltd. (“Sanhe Mingtai”)		Noncontrolling shareholder of a subsidiary since March 1, 2023
Beijing Jiwa Forest System Technology Co., Ltd. (“Beijing Jiwa”)		A company controlled by the founder of the Company since October 1, 2023

*	These are the related parties that have engaged in significant transactions with the Company for the years ended December 31, 2021, 2022 and 2023.

(1)	These companies are ultimately controlled by the same party. Tuspark Innovation was the controlling shareholder as of December 31, 2020. These companies ceased to be related parties as the Company repurchased shares from Tuspark Innovation on April 13, 2021.

(2)	This entity is controlled by Waburg Pincus, a significant minority shareholder of the Company.

(3)	SZ Century was controlled by an equity investee of a principal shareholder of the Company from December 1, 2021. SZ Century ceased to be a related party as the equity interests in SZ Century was disposed by the equity investee of the principal shareholder on October 31, 2022.

(4)	This company was disposed by the Company in September 2017, included in WiFire Entities, and determined by the Company as a related party before the Company disposed the remaining equity interests held in October 2023.

24. RELATED PARTY TRANSACTIONS (CONTINUED)

b)Other than disclosed elsewhere, the Company had the following significant related party transactions for the years ended December 31, 2021, 2022 and 2023:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Services provided to:
-SZ Century	1,445	14,089	—
-SH Edge Interchange	—	651	938
-Jingliang Inter Cloud	480	—	—
-BJ New Internet	170	—	—
-Others	144	2	—

Services provided by:
-CYSD	38,918	36,673	31,119
-Beijing Huaqing	1,254	—	—
-Sanhe Mingtai⁽¹⁾	—	—	17,366
-Beijing Jiwa	—	—	1,891
-Others	1,223	513	333

Loan to:
-Shanghai Puping	75,611	—	80,263
- BJ New Internet	261	—	—
-SH Edge Interchange	—	500	1,000
-Sanhe Mingtai	—	—	33,785

Receipt of loan to:
-SH Shibei	—	—	9,800

Loan by:
-Changzhou Gaoxin ⁽²⁾	—	—	350,000

Interest income from loan to:
-SH Shibei	1,321	—	(1,321)
-SH Edge Interchange	—	1	32

Interest expense by loan to:
-Changzhou Gaoxin	—	—	13,183

Lease payment paid to:
-Ziguang Finance Leasing	10,431	—	—
-Beijing Qidi Yefeng	2,154	—	—
-Sanhe Mingtai ⁽¹⁾	—	—	10,801

Cash consideration for shares repurchase
-Tuspark Innovation	1,701,804	—	—

(1)

(2)	In May 2023, the Company obtained a loan in the amount of RMB350,000 from Changzhou Gaoxin at an interest rate of 6.0% per annum. The maturity date of the loan was March 2024, which was subsequently extended to July 2024 in March 2024.

24. RELATED PARTY TRANSACTIONS (CONTINUED)

c)The Company had the following related party balances as of December 31, 2022 and 2023:


	As of December 31,
	2022	2023
	RMB	RMB
Amounts due from related parties:
Current:
-Shanghai Puping	138,142	218,405
-SH Shibei	11,121	—
-BJ New Internet	441	441
-SH Edge Interchange	1,191	1,533
-Sanhe Mingtai	—	56,833
-Others	1,194	25
	152,089	277,237
Amounts due to related parties:
Current:
- CYSD	6,398	—
-Changzhou Gaoxin	—	356,067
-Others	530	13
	6,928	356,080

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147483326/850-10-50-1

+ Details

FAIR VALUE MEASUREMENTS - Assets measured at fair value on a non-recurring basis (Details)	Dec. 31, 2023
Discount rate
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rates used	0.086
Unobservable inputs (Level 3) \| Revenue growth rate \| Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rates used	0
Unobservable inputs (Level 3) \| Revenue growth rate \| Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Rates used	0.38

TAXATION - PRC operations (Parenthetical) (Details)	12 Months Ended
TAXATION - PRC operations (Parenthetical) (Details)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
TAXATION
Statutory income tax rate	25.00%	25.00%	25.00%

ORGANIZATION (Tables)

12 Months Ended

Dec. 31, 2023

ORGANIZATION

Schedule of significant subsidiaries of the Company, VIEs and subsidiaries of VIEs

(a)	As of December 31, 2023, the principal consolidated subsidiaries and VIEs of the Company are as follows:

Entity	Date of incorporation/ acquisition	Place of incorporation	Percentage of direct ownership by the Company		Principal activities

Subsidiaries:
VNET Group Limited (“VNET HK”)	May 25, 2007	Hong Kong	100	%	Investment holding
VNET Data Center Co., Ltd. (“VNET China”) ⁽¹⁾	June 12, 2000	PRC	100	%	Provision of technical and consultation services and rental of long-lived assets
VNET (Foshan) Technology Co., Ltd. (“FS Technology”) ⁽¹⁾	December 20, 2011	PRC	100	%	Trading of network equipment, provision of technical and internet data center services
VNET Anhui Suzhou Technology Co., Ltd. (“SZ Technology”) ⁽¹⁾	November 16, 2011	PRC	100	%	Trading of network equipment
VNET Hangzhou Information Technology Co., Ltd. (“HZ Technology”) ⁽¹⁾	March 4, 2013	PRC	100	%	Provision of internet data center services
VNET Mobile Limited (“VNET Mobile”)	April 30, 2013	Hong Kong	100	%	Investment holding and provision of telecommunication services
WiFire Group Inc. (“WiFire Group”)	March 7, 2014	British Virgin Islands	100	%	Investment holding
Joytone Infotech Co., Ltd. (“SZ Zhuoaiyi”) ⁽¹⁾	April 30, 2013	PRC	100	%	Provision of technical and consultation services
VNET Ventures Limited (“Ventures”)	March 6, 2014	Hong Kong	100	%	Investment holding
Abitcool (China) Broadband Inc. (“aBitCool DG”) ⁽¹⁾	June 13, 2014	PRC	100	%	Dormant company
Diyixian.com Limited (“DYX”)	August 10, 2014	Hong Kong	100	%	Provision of virtual private network services
VNET Zhuhai Financial Leasing Co., Ltd. (“Zhuhai Financial Leasing”) ⁽¹⁾	April 9, 2015	PRC	100	%	Provision of finance leasing business services
VNET DRP Investment Holdings Limited (“DRP investment”)	January 13, 2017	Hong Kong	100	%	Investment holding
Shihua DC Investment Holdings Limited (“Shihua Investment”)	March 14, 2017	Cayman Islands	51	%	Investment holding
VNET (Xi’an) Technology Co., Ltd. (“Xi’an Tech”) ⁽¹⁾	July 5, 2012	PRC	51	%	Provision of technical and internet data center services
Foshan Zhuoyi Intelligence Data Co., Ltd. (“FS Zhuoyi”) ⁽¹⁾	July 7, 2016	PRC	51	%	Provision of internet data center services
Beijing Hongyuan Network Technology Co., Ltd. (“BJ Hongyuan”) ⁽¹⁾	December 8, 2014	PRC	51	%	Provision of internet data center services
Dermot Holdings Limited (“Dermot BVI”)	August 10, 2014	British Virgin Islands	100	%	Investment holding
VNET Technology Development (Suzhou) Co., Ltd.(“Suzhou Technology”)	March 13, 2019	PRC	100	%	Provision of internet data center services
Huailai hulianyun Technology Co., Ltd.(“Huailai hulianyun”)	June 26, 2019	PRC	100	%	Provision of internet data center services
Shihua DC Investment Holdings 2 Limited (“Shihua Holdings 2”)	August 20, 2019	Cayman Islands	100	%	Investment holding
Shanghai Waigaoqiao Free Trade Zone Gaogang Technology Co., Ltd. (“Waigaoqiao Technology”) ^(1)/(4)	August 20, 2019	PRC	100	%	Provision of internet data center services
Tongyun Internet (Beijing) Cloud Computing Technology Co., Ltd.(“Tongyun BJ”)	January 19, 2020	PRC	100	%	Provision of internet data center services
Shanghai Edge Connect Technology Co., Ltd. (“SH Edge Connect”) ⁽¹⁾	November 3, 2020	PRC	100	%	Provision of technical and internet data center services
Beijing Jianghe Cloud Technology Co., Ltd. (“BJ JHC”) ⁽¹⁾	November 17, 2020	PRC	100	%	Provision of internet data center services
Beijing Shuntou Green Energy Data Technology Co., Ltd. (“BJ ST”) ⁽¹⁾	November 17, 2020	PRC	100	%	Provision of internet data center services
Jiwa Senlin (Beijing) Engineering Co., Ltd.(“Jiwa Engineering BJ”)⁽¹⁾	April 8, 2021	PRC	100	%	Provision of internet data center services
Beijing TenxCloud Technology Co., Ltd. (“BJ TenxCloud”) ^(1)/(3)	July 15, 2021	PRC	100	%	Provision of digitalization solution services
Zhongke Zijing Technology Co., Ltd. (“Zhongke Zijing”) ^(1)/(14)	August 16, 2021	PRC	100	%	Provision of technical and consultation services
Gu’an Junhui Network Technology Co., Ltd. (“Gu’an Junhui”) ^(1)/(4)	August 16, 2021	PRC	100	%	Provision of internet data center services
Beijing Jianghe Shuzhi Technology Co., Ltd.(“BJ Jianghe Shuzhi”) ^(1)/(7)	August 1, 2022	PRC	100	%	Provision of internet data center services
Jianghe Chuangke (Beijing) Technology Co., Ltd.(“Jianghe Chuangke”)^(1)/(7)	August 1, 2022	PRC	100	%	Provision of internet data center services
Beijing Jianghe Cloud Industrial Internet Technology Co., Ltd.(“Jianghe Industrial”)^(1)/(7)	August 1, 2022	PRC	100	%	Provision of internet data center services
Beijing Xunneng Digital Industry Empowerment Center Co., Ltd.(“BJ Xunneng”)^(1)/(7)	August 1, 2022	PRC	100	%	Provision of internet data center services

Entity	Date of incorporation/ acquisition	Place of incorporation	Percentage of direct ownership by the Company		Principal activities

Variable Interest Entities (the “VIEs”):
Beijing Yiyun Network Technology Co., Ltd. (“VNET Technology”) ⁽²⁾	October 22, 2002	PRC	—		Provision of internet data center services
Beijing iJoy Information Technology Co., Ltd. (“BJ iJoy”) ⁽²⁾	April 30, 2013	PRC	—		Provision of internet data center, content delivery network services
WiFire Network Technology (Beijing) Co., Ltd. (“WiFire Network”) ⁽²⁾	April 1, 2014	PRC	—		Provision of telecommunication services
Shanghai Zhiyan Yunwei Technology Co., Ltd. (“SH Zhiyan”) ⁽²⁾	December 12, 2020	PRC	—		Provision of telecommunication services

Held directly by VNET Technology:
Beijing VNET Broad Band Data Center Co., Ltd. (“VNET Beijing”) ⁽²⁾	March 15, 2006	PRC	—		Provision of internet data center services
Shanghai Shilian Technology Co., Ltd. (“SH Shilian”)	October 22, 2012	PRC	—		Provision of internet data center services
Beijing VNET Technology Co., Ltd.(“VNET BJ”)	April 1, 2021	PRC	—		Provision of internet data center services

Held directly by VNET Beijing:
VNET (Xi’an) Information Outsourcing Industry Park Services Co., Ltd. (“Xi’an Sub”) ⁽²⁾	June 23, 2008	PRC	—		Provision of internet data center services
Langfang Xunchi Computer Data Processing Co., Ltd. (“LF Xunchi”) ⁽²⁾	December 19, 2011	PRC	—		Dormant company
Beijing Yilong Xinda Technology Co., Ltd. (“Yilong Xinda”) ⁽²⁾	February 28, 2013	PRC	—		Provision of internet data center services
Beijing Yichengtaihe Investment Co., Ltd. (“BJ Yichengtaihe”) ⁽²⁾	September 30, 2014	PRC	—		Provision of internet data center services
Guangzhou Lianyun Big Data Co., Ltd. (“GZ Lianyun”) ⁽²⁾	April 14, 2016	PRC	—		Provision of internet data center services
Beijing Xianghu Yunlian Technology Co., Ltd. (“Xianghu Yunlian”) ⁽²⁾	November 7, 2018	PRC	—		Provision of internet data center services
Shanghai Hujiang Songlian Technology Co., Ltd.(“Hujiang Songlian”) ⁽²⁾	December 17, 2018	PRC	—		Provision of internet data center services
Beijing Shuhai Hulian Technology Co., Ltd. (“BJ Shuhai”) ⁽²⁾	January 2, 2019	PRC	—		Provision of internet data center services
Nantong Chenghong Cloud Computing Co., Ltd. (“NT Chenghong”) ⁽²⁾	December 24, 2019	PRC	—		Provision of internet data center services

Held directly by SH Shilian:
Shanghai Shuzhong Investment Management Co., Ltd. (“SH Shuzhong”) ⁽²⁾	June 30, 2020	PRC	—		Provision of internet data center services
Sanhe Shulifang Information Technology Co., Ltd. (“Shulifang”) ⁽²⁾	July 21, 2020	PRC	—		Provision of internet data center services
Langfang Huahai Internet Technology Co., Ltd. (“LF Huahai”) ⁽²⁾	September 11, 2020	PRC	—		Provision of internet data center services
Shanghai Hesheng Data System Co., Ltd. (“SH Hesheng”) ^(2)/(5)	November 11, 2021	PRC	—		Provision of internet data center services
Hebei Ketai Internet Technology Co., Ltd.(“HB Ketai”)	September 26, 2022	PRC	—		Provision of internet data center services

Held directly by VNET BJ:
WLCB Century Cloud Data Technology Co., Ltd.(“WLCB Century Cloud”)	April 1, 2021	PRC	—		Provision of internet data center services

Held directly by SH Zhiyan:
Shanghai Blue Cloud Technology Co., Ltd. (“SH Blue Cloud”) ⁽²⁾	March 21, 2013	PRC	—		Provision of Office 365 and Windows Azure platform services
Shanghai Edge Blue Cloud Network Technology Co., Ltd. (“SH Edge Network”) ^(2)/(6)	January 7, 2021	PRC	—		Provision of internet data center services

Held directly by DYX and LF Xunchi:
Shenzhen Diyixian Telecommunication Co., Ltd. (“SZ DYX”) ⁽¹⁾	August 10, 2014	PRC	20	%	Provision of virtual private network services

(1)	Collectively, the “PRC Subsidiaries”.

(2)	Collectively, the “Consolidated VIEs”.

(3)	On July 15, 2021, the Company through its subsidiary, Shenzhen Cloud Native Technology Co., Ltd. (“SZ Cloud Native”), acquired 100% equity interest of BJ TenxCloud.

(4)	On August 16, 2021, the Company through its subsidiary, Jiwa Engineering BJ, acquired 100% equity interest of Zhongke Zijing and Gu’an Junhui.

(5)	On November 11, 2021, the Company through its subsidiary, SH Shilian, acquired 100% equity interest of SH Hesheng.

(6)	On January 7, 2021, the Company, through SH Zhiyan, established SH Edge Network for internet data center services.

(7)	On August 1, 2022, the Company through its subsidiary, VNET Saturn and YF WFOE, acquired 100% equity interest of BJ Jianghe Shuzhi, Jianghe Chuangke, Jianghe Industrial and BJ Xunneng (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, 2022 and 2023 and for the years ended December 31, 2021, 2022 and 2023 before eliminating the intercompany balances and transactions between the Consolidated VIEs and other entities within the Company:


	As of December 31,
	2022	2023
	RMB	RMB
ASSETS
Current assets:
Cash and cash equivalents	1,428,768	923,692
Restricted cash	301,825	434,421
Accounts receivable (net of allowance for doubtful debt of RMB100,797 and RMB161,837 as of December 31, 2022 and 2023 respectively)	1,400,546	1,412,456
Prepaid expenses and other current assets	1,976,164	2,081,948
Amounts due from related parties	13,942	58,823
Total current assets	5,121,245	4,911,340
Non-current assets:
Property and equipment, net	7,495,362	7,398,768
Intangible assets, net	475,652	453,606
Land use rights, net	44,233	56,971
Operating lease right-of-use assets, net	3,452,533	3,948,272
Goodwill	332,645	—
Restricted cash	—	382
Deferred tax assets, net	153,676	208,266
Other non-current assets	165,570	148,383
Long-term investments, net	82,744	168,377
Total non-current assets	12,202,415	12,383,025
Total assets	17,323,660	17,294,365
Current liabilities:
Short-term bank borrowings	—	30,000
Accounts and notes payable	483,030	493,837
Accrued expenses and other payables	1,488,031	1,616,423
Advances from customers	1,157,963	1,605,247
Deferred revenue	84,775	83,546
Income taxes payable	25,188	13,531
Amounts due to inter-companies, net ⁽¹⁾	6,071,651	4,736,035
Amounts due to related parties	6,928	356,080
Current portion of finance lease liabilities	165,221	97,388
Current portion of long-term borrowings	417,442	544,803
Current portion of deferred government grants	3,646	8,062
Current portion of operating lease liabilities	655,663	754,935
Total current liabilities	10,559,538	10,339,887


	As of December 31,
	2022	2023
	RMB	RMB
Non-current liabilities:
Amounts due to inter-companies, net ⁽¹⁾	1,020,972	1,020,972
Long-term borrowings	1,861,545	2,464,811
Non-current portion of finance lease liabilities	615,309	720,954
Unrecognized tax benefits	86,799	98,082
Deferred tax liabilities	149,475	139,174
Deferred government grants	2,726	11,862
Non-current portion of operating lease liabilities	2,872,323	3,230,506
Total non-current liabilities	6,609,149	7,686,361
Total liabilities	17,168,687	18,026,248


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Net revenues	5,145,110	5,944,519	6,418,125
Net income (loss)	92,594	(66,764)	(999,101)


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Net cash generated from operating activities	866,712	1,351,179	1,418,796
Net cash used in investing activities	(2,695,707)	(1,849,339)	(1,431,085)
Net cash generated from (used in) financing activities	1,788,528	1,243,495	(359,809)
Net (decrease) increase in cash and cash equivalents and restricted cash	(40,467)	745,335	(372,098)

(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.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details

LAND USE RIGHTS, NET

12 Months Ended

Dec. 31, 2023

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,
	2022	2023
	RMB	RMB
Cost	617,808	664,272
Accumulated amortization	(41,788)	(61,769)
Land use rights, net	576,020	602,503

The carrying amounts of land use rights pledged by the Company to secure borrowings (Note 14) granted to the Company at the respective balance sheet dates were as follows:


	As of December 31,
	2022	2023
	RMB	RMB
Land use rights	115,895	196,195

ORGANIZATION - Financial information of the consolidated VIEs (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2023 USD ($)
Current assets:
Cash and cash equivalents	¥ 2,243,537		¥ 2,661,321	¥ 1,372,481	$ 315,996
Restricted cash	2,854,568		327,673	327,767	402,057
Prepaid expenses and other current assets	2,375,341		2,147,500		334,560
Total current assets	9,823,478		7,052,276		1,383,608
Non-current assets:
Property and equipment, net	13,024,393		11,964,498		1,834,447
Intangible assets, net	1,383,406		1,497,131		194,849
Land use rights, net	602,503		576,020		84,861
Operating lease right-of-use assets, net	4,012,329		3,503,925		565,125
Goodwill net			1,364,191
Restricted cash	882		500	8,225	124
Deferred tax assets, net	247,644		196,098		34,880
Other non-current assets	533,319		551,572		75,116
Long-term investments, net	757,949		242,194		106,755
Total non-current assets	20,562,425		19,896,129		2,896,157
Total assets	30,385,903		26,948,405		4,279,765
Current liabilities:
Accounts and notes payable	696,177		713,628		98,054
Accrued expenses and other payables	2,783,102		2,410,479		391,992
Advances from customers	1,605,247		1,157,963		226,094
Deferred revenue	95,477		95,078		13,448
Income taxes payable	35,197		42,017		4,957
Current portion of finance lease liabilities	115,806		206,260		16,311
Current portion of long-term borrowings	334,511		289,941
Current portion of deferred government grant	8,062		3,646		1,136
Current portion of operating lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries	780,164		674,288		109,884
Total current liabilities	11,437,132		6,332,085		1,610,886
Non-current liabilities:
Non-current portion of finance lease liabilities	1,159,525		1,047,640		163,316
Unrecognized tax benefits	98,457		87,174		13,867
Deferred tax liabilities	688,362		682,580		96,954
Deferred government grants	145,112		2,672		20,439
Non-current portion of operating lease liabilities of the Consolidated VIEs without resource to the primary beneficiaries	3,270,759		2,905,283		460,677
Total non-current liabilities	12,434,388		13,634,464		1,751,348
Total liabilities	23,871,520		19,966,549		3,362,234
Net income (loss)	(2,597,169)	$ (365,805)	(761,994)	515,101
Net cash generated from operating activities	2,063,480	290,635	2,440,214	1,387,922
Net cash used in investing activities	(3,905,109)	(550,023)	(3,559,252)	(3,772,613)
Net cash generated from (used in) financing activities	3,941,134	555,097	2,298,080	967,577
Net increase (decrease) in cash and cash equivalents and restricted cash	2,109,493	$ 297,116	1,281,021	(1,407,964)
Related Party [Member]
Current assets:
Amounts due from related parties	277,237		152,089		39,048
Current liabilities:
Amounts due to related parties	356,080		6,928		$ 50,153
Variable Interest Entity, Primary Beneficiary
Current assets:
Cash and cash equivalents	923,692		1,428,768
Restricted cash	434,421		301,825
Accounts receivable (net of allowance for doubtful debt of RMB 100,797 and RMB 161,837 as of December 31, 2022 and 2023 respectively)	1,412,456		1,400,546
Prepaid expenses and other current assets	2,081,948		1,976,164
Total current assets	4,911,340		5,121,245
Non-current assets:
Property and equipment, net	7,398,768		7,495,362
Intangible assets, net	453,606		475,652
Land use rights, net	56,971		44,233
Operating lease right-of-use assets, net	3,948,272		3,452,533
Goodwill net			332,645
Restricted cash	382
Deferred tax assets, net	208,266		153,676
Other non-current assets	148,383		165,570
Long-term investments, net	168,377		82,744
Total non-current assets	12,383,025		12,202,415
Total assets	17,294,365		17,323,660
Current liabilities:
Short-term bank borrowings	30,000
Accounts and notes payable	493,837		483,030
Accrued expenses and other payables	1,616,423		1,488,031
Advances from customers	1,605,247		1,157,963
Deferred revenue	83,546		84,775
Income taxes payable	13,531		25,188
Amounts due to inter-companies, net	4,736,035		6,071,651
Current portion of finance lease liabilities	97,388		165,221
Current portion of long-term borrowings	544,803		417,442
Current portion of deferred government grant	8,062		3,646
Current portion of operating lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries	754,935		655,663
Total current liabilities	10,339,887		10,559,538
Non-current liabilities:
Amounts due to inter-companies, net	1,020,972		1,020,972
Long-term borrowings	2,464,811		1,861,545
Non-current portion of finance lease liabilities	720,954		615,309
Unrecognized tax benefits	98,082		86,799
Deferred tax liabilities	139,174		149,475
Deferred government grants	11,862		2,726
Non-current portion of operating lease liabilities of the Consolidated VIEs without resource to the primary beneficiaries	3,230,506		2,872,323
Total non-current liabilities	7,686,361		6,609,149
Total liabilities	18,026,248		17,168,687
Net revenues	6,418,125		5,944,519	5,145,110
Net income (loss)	(999,101)		(66,764)	92,594
Net cash generated from operating activities	1,418,796		1,351,179	866,712
Net cash used in investing activities	(1,431,085)		(1,849,339)	(2,695,707)
Net cash generated from (used in) financing activities	(359,809)		1,243,495	1,788,528
Net increase (decrease) in cash and cash equivalents and restricted cash	(372,098)		745,335	¥ (40,467)
Variable Interest Entity, Primary Beneficiary \| Related Party [Member]
Current assets:
Amounts due from related parties	58,823		13,942
Current liabilities:
Amounts due to related parties	¥ 356,080		¥ 6,928

SHARE CAPITAL (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands					1 Months Ended			12 Months Ended
	Jan. 27, 2022 shares	Aug. 19, 2021 shares	May 01, 2021 shares	Mar. 01, 2021 shares	Dec. 31, 2023 CNY (¥) shares	Apr. 30, 2021 USD ($) $ / shares shares	Jun. 30, 2020 shares	Dec. 31, 2023 CNY (¥) shares	Dec. 31, 2023 USD ($) Vote $ / shares shares	Dec. 31, 2021 CNY (¥) shares	Oct. 05, 2023 shares	Feb. 15, 2023 Vote shares	Dec. 31, 2022 shares	Oct. 31, 2019 $ / shares
SHARE CAPITAL
Proceeds from issuance of stock								¥ 2,122,123	$ 298,895	¥ (131)
Percentage of total principal amount converted										42.30%
Shares issued to depositary bank (in shares)										7,800,000
Reissuance of treasury stock for share option exercise and restricted share units vested , shares								3,252,768	3,252,768
Payment of issuance costs								¥ 1,880	$ 265
Related Party [Member] \| Tuspark Innovation
SHARE CAPITAL
Aggregate Purchase price \| $						$ 260,000
Number of shares converted from Class B to Class A						62,418,897
Related Party [Member] \| Sunrise Corporate Holding Ltd
SHARE CAPITAL
Number of shares converted from Class B to Class A		4,100,000
Class A Ordinary Shares
SHARE CAPITAL
Entitled vote per ordinary share \| Vote									1
Proceeds from issuance of stock \| ¥					¥ 2,122,123
Number of shares issued upon conversion										42,401,010
Shares issued to depositary bank (in shares)										7,800,000
Convertible Preferred Stock, Shares Issued upon Conversion				54,507,816
Total issuance for converted preferred stock				54,507,816
Ordinary shares, shares authorized (in shares)									2,698,935,000				1,199,490,000
Ordinary shares, shares issued (in shares)									1,513,609,283				859,932,323
Increase in number of shares											1,500,000,000
Number of shares issued							150,000			16,680,000
Payment of issuance costs \| ¥					¥ 37,720
Class A Ordinary Shares \| Convertible Notes Payable
SHARE CAPITAL
Number of shares issued			150,000
Class A Ordinary Shares \| Success Flow International Investment Limited
SHARE CAPITAL
Number of shares issued					455,296,932
Class A Ordinary Shares \| Choice Faith Group Holdings Limited
SHARE CAPITAL
Number of shares issued					195,127,260
Class A Ordinary Shares \| Related Party [Member] \| Tuspark Innovation
SHARE CAPITAL
Share repurchase price \| $ / shares						$ 5.346
Class B Ordinary Shares
SHARE CAPITAL
Entitled vote per ordinary share \| Vote									10
Conversion share ratio									1
Ordinary shares, shares authorized (in shares)									300,000,000				300,000,000
Ordinary shares, shares issued (in shares)									30,721,723				30,721,723
Class B Ordinary Shares \| Related Party [Member] \| Tuspark Innovation
SHARE CAPITAL
Number of shares repurchased and cancelled						48,634,493
Ordinary shares repurchased						48,634,493
Class C Ordinary Shares
SHARE CAPITAL
Entitled vote per ordinary share \| Vote									1
Ordinary shares, shares authorized (in shares)									60,000				60,000
Ordinary shares, shares issued (in shares)									60,000				60,000
Class D ordinary shares
SHARE CAPITAL
Entitled vote per ordinary share \| Vote												500
Ordinary shares, shares authorized (in shares)												555,000
Ordinary shares, shares issued (in shares)												0
American Depository Shares
SHARE CAPITAL
Conversion price (in dollars per share) \| $ / shares									$ 12					$ 54.47
American Depository Shares \| Related Party [Member] \| Tuspark Innovation
SHARE CAPITAL
Share repurchase price \| $ / shares						$ 32.076
Series A Perpetual Convertible Preferred Shares
SHARE CAPITAL
Total issuance for converted preferred stock	300,000

ACCOUNTS AND NOTES RECEIVABLE, NET - Accounts and notes receivable and the allowance for doubtful debt (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020 CNY (¥)
ACCOUNTS AND NOTES RECEIVABLE, NET
Accounts receivable	¥ 1,903,458		¥ 1,897,111
Notes receivable	873		1,151
Allowance for doubtful debt	(188,356)		(134,569)	¥ (99,620)	¥ (68,921)
Accounts and notes receivable, net	¥ 1,715,975	$ 241,690	¥ 1,763,693

CONSOLIDATED STATEMENTS OF OPERATIONS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥) ¥ / shares shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 CNY (¥) ¥ / shares shares	Dec. 31, 2021 CNY (¥) ¥ / shares shares
Net revenues
Hosting and related services	¥ 7,412,930	$ 1,044,089	¥ 7,065,232	¥ 6,189,801
Hosting and related services	(6,120,445)	(862,047)	(5,706,976)	(4,751,771)
Gross profit	1,292,485	182,042	1,358,256	1,438,030
Operating income (expenses)
Operating income	106,273	14,968	60,013
Sales and marketing expenses	(266,207)	(37,494)	(311,917)	(255,400)
Research and development expenses	(322,220)	(45,384)	(306,842)	(188,489)
General and administrative expenses	(541,850)	(76,318)	(642,945)	(842,354)
Allowance for doubtful debt	(368,505)	(51,903)	(35,409)	(18,399)
Impairment of loan receivable to potential investee \| ¥				(2,807)
Impairment of long-lived assets	(506,686)	(71,365)	0	(109,267)
Impairment of goodwill	(1,364,191)	(192,142)	0
Total operating expenses	(3,263,386)	(459,638)	(1,237,100)	(1,416,716)
Operating profit (loss)	(1,970,901)	(277,596)	121,156	21,314
Interest income	41,802	5,888	31,574	31,897
Interest expense	(312,172)	(43,969)	(273,305)	(334,950)
Other income	27,344	3,851	17,328	33,923
Other expenses	(16,086)	(2,266)	(26,599)	(22,700)
Changes in the fair value of financial liabilities	(165,930)	(23,371)	22,626	829,149
Impairment of long-term investments	(11,166)	(1,573)		(3,495)
Foreign exchange gain (loss), net	(78,965)	(11,122)	(523,235)	110,036
Income (loss) before income taxes and (loss) gain from equity method investments	(2,486,074)	(350,158)	(630,455)	665,174
Income tax expenses	(114,374)	(16,109)	(133,464)	(111,407)
(Loss) gain from equity method investments	3,279	462	1,925	(38,666)
Net income (loss)	(2,597,169)	(365,805)	(761,994)	515,101
Net income attributable to noncontrolling interest	(46,667)	(6,573)	(13,958)	(15,003)
Net income (loss) attributable to VNET Group, Inc.	¥ (2,643,836)	$ (372,378)	¥ (775,952)	¥ 500,098
Earning (loss) per share:
Basic \| (per share)	¥ (2.93)	$ (0.41)	¥ (0.87)	¥ 0.57
Diluted \| (per share)	¥ (2.93)	$ (0.41)	¥ (0.87)	¥ (0.36)
Shares used in earning (loss) per share computation:
Basic	901,143,138	901,143,138	886,817,620	865,352,554
Diluted	901,143,138	901,143,138	886,817,620	911,591,433

FAIR VALUE MEASUREMENTS - Key assumptions (Details) - 2025 Convertible promissory notes	Dec. 31, 2023	Dec. 31, 2022
Volatility
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes	0.9000
Volatility \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes		0.9400
Volatility \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes		0.9600
Discount rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes	0.1465	0.1600
Risk-free interest rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes	0.0399
Risk-free interest rate \| Minimum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes		0.0423
Risk-free interest rate \| Maximum
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes		0.0428
Probability of triggering events
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Convertible notes	0.1500

BONDS PAYABLE - Additional Information (Details) - Bonds 7.875%, Due 2021 ¥ in Thousands, $ in Thousands	Oct. 04, 2021 USD ($)	Apr. 15, 2019 CNY (¥)	Apr. 15, 2019 USD ($)
Debt Instrument
Debt instrument, face amount			$ 300,000
Interest rate (as a percent)			7.875%
Proceeds from issuance of bonds, net \| ¥		¥ 1,976,474
Principal amount repaid	$ 300,000
Bonds Payable Repaid	$ 300,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

COMMITMENTS AND CONTINGENCIES - Capital commitments (Details) - Schedule of commitments to purchase certain computer and network equipment and construction-in-progress - Capital Commitments ¥ in Thousands	Dec. 31, 2023 CNY (¥)
COMMITMENTS AND CONTINGENCIES
2024	¥ 1,435,439
2025	348,096
2026	6,120
2027	7,402
2028	3,744
2029 and thereafter	7
Commitments to purchase	¥ 1,800,808

BORROWINGS - Unused loan facilities (Parenthetical) (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
Debt Instrument
Assets	¥ 30,385,903	$ 4,279,765	¥ 26,948,405
Long-term bank borrowings, (including current portion) 1 \| Secured by a subsidiary's property and equipment \| Asset Pledged as Collateral
Debt Instrument
Assets	845,898		118,050
Long-term bank borrowings, (including current portion) 1 \| Secured by subsidiary's property and equipment and land-use right and a subsidiary stock \| Asset Pledged as Collateral
Debt Instrument
Assets	196,195		91,435
Long Term Bank Borrowings \| Secured by a subsidiary's land-use right \| Asset Pledged as Collateral
Debt Instrument
Assets			¥ 24,460
Long-term bank borrowings, (including current portion) 2 \| Secured by a subsidiary's property and equipment \| Asset Pledged as Collateral
Debt Instrument
Assets	¥ 231,424

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (bb)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481203/810-10-50-3

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 810
-SubTopic 10
-Name Accounting Standards Codification
-Section 45
-Paragraph 25
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481231/810-10-45-25

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+ Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2023

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*		32.1 years
Customer relationships*		8.3 years
Licenses*		15 years
Supplier relationships*		10 years
Trade names*		20 years
Technology platform*		5 years
Non-complete agreements*		5 years
Internal use software		3.4 years
Customer contract*		7 years

*	Acquired in the acquisitions of subsidiaries.

Schedule of impairment charges associated with long-lived assets and acquired intangibles


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Impairment of property and equipment	106,311	—	480,099
Impairment of intangible assets	—	—	15,113
Impairment of right-of-use assets	—	—	11,474
Impairment of other non-current assets	2,956	—	—

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, 2021, 2022 and 2023, was as follows:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Interest expense and amortization cost of bonds payable	133,959	—	—
Interest expense and amortization cost of 2025, 2026 and 2027 Convertible Notes (Note 19)	25,919	58,350	59,429
Interest expense on bank and other borrowings	103,925	172,328	222,918
Interest expense on finance leases	124,567	104,088	90,679
Total interest costs	388,370	334,766	373,026
Less: Total interest costs capitalized	(53,420)	(61,461)	(60,854)
Interest expense, net	334,950	273,305	312,172

LONG-TERM INVESTMENTS, NET - Equity Method Investments (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2021 CNY (¥)
LONG TERM INVESTMENT, NET
Cost of investments	¥ 750,129	¥ 258,737		¥ 145,837
Share equity gain (loss)	(8,506)	(31,785)		(62,836)
Impairment of receivables from equity investees	3,495	(3,495)
Investment in an equity investee	738,128	223,457	$ 223,457	79,506
Cost of investments incurred during the period	491,392	213,900
Share equity gain (loss) incurred during the period	(3,279)	1,925
Distribution/derecognize of share equity (gain)loss	20,000	(71,874)		(3,495)
WiFire Group Inc. ("WiFire Group")
LONG TERM INVESTMENT, NET
Cost of investments		20,000
Share equity gain (loss)		(20,000)
Cost of investments incurred during the period	(20,000)
Distribution/derecognize of share equity (gain)loss	20,000
Yizhuang Venture Investment Fund
LONG TERM INVESTMENT, NET
Cost of investments				101,000
Share equity gain (loss)				(32,285)
Investment in an equity investee				68,715
Share equity gain (loss) incurred during the period		3,159
Distribution/derecognize of share equity (gain)loss		(71,874)
WiFire Group Inc. ("WiFire Group")
LONG TERM INVESTMENT, NET
Cost of investments		20,000		20,000
Share equity gain (loss)		(20,000)		(20,000)
Chengdu Qidi Chengxin Education Limit ("Qidi Chengxin")
LONG TERM INVESTMENT, NET
Cost of investments		3,930		3,930
Share equity gain (loss)		(333)		(217)
Investment in an equity investee		3,597		3,713
Share equity gain (loss) incurred during the period		(116)
Qidi Chengxin
LONG TERM INVESTMENT, NET
Cost of investments	3,930	3,930
Share equity gain (loss)	(452)	(333)
Investment in an equity investee	3,478	3,597
Share equity gain (loss) incurred during the period	119
Jingliang Inter Cloud
LONG TERM INVESTMENT, NET
Cost of investments	6,000	6,000		6,000
Share equity gain (loss)	(5,019)	(5,017)		(5,013)
Investment in an equity investee	981	983		987
Share equity gain (loss) incurred during the period	2	(4)
Jingliang Century Cloud
LONG TERM INVESTMENT, NET
Cost of investments	4,000	4,000		4,000
Investment in an equity investee	4,000	4,000		4,000
ZJK Energies
LONG TERM INVESTMENT, NET
Cost of investments	5,907	5,907		5,907
Share equity gain (loss)	(3,845)	(3,800)		(3,816)
Investment in an equity investee	2,062	2,107		2,091
Share equity gain (loss) incurred during the period	45	16
Dexin Tonglian (Beijing) Culture Technology Co., Ltd [Member]
LONG TERM INVESTMENT, NET
Cost of investments	3,000	3,000
Share equity gain (loss)	(808)	(333)
Investment in an equity investee	2,192	2,667
Cost of investments incurred during the period		3,000
Share equity gain (loss) incurred during the period	475	(333)
SH Edge Interchange
LONG TERM INVESTMENT, NET
Cost of investments	900	900
Share equity gain (loss)	(900)	(797)
Investment in an equity investee		103
Cost of investments incurred during the period		900
Share equity gain (loss) incurred during the period	103	(797)
Changzhou Gaoxin Internet Co., Ltd
LONG TERM INVESTMENT, NET
Cost of investments	698,392	210,000
Share equity gain (loss)	5,107
Investment in an equity investee	703,499	210,000
Cost of investments incurred during the period	488,392	210,000
Share equity gain (loss) incurred during the period	(5,107)
Zhuhai Private
LONG TERM INVESTMENT, NET
Cost of investments	23,000
Share equity gain (loss)	(1,084)
Investment in an equity investee	21,916
Cost of investments incurred during the period	23,000
Share equity gain (loss) incurred during the period	1,084
BJ Chaohulian
LONG TERM INVESTMENT, NET
Cost of investments	5,000	5,000		5,000
Share equity gain (loss)	(1,505)	(1,505)		(1,505)
Impairment of receivables from equity investees	¥ 3,495	¥ (3,495)
Distribution/derecognize of share equity (gain)loss				¥ (3,495)

ACCRUED EXPENSES AND OTHER PAYABLES (Tables)

12 Months Ended

Dec. 31, 2023

ACCRUED EXPENSES AND OTHER PAYABLES

Schedule of components of accrued expenses and other payables


	As of December 31,
	2022	2023
	RMB	RMB
Payables for purchase of property, equipment and software	1,280,742	1,431,547
Payroll and welfare payables	433,376	477,367
Consideration due to the original shareholders of BJ TenxCloud ⁽¹⁾	229,323	229,323
Liability classified share-based payments ⁽¹⁾	131,116	149,612
Accrued service fees	66,494	126,001
Payables for office supplies and utilities	69,288	105,871
Payables for acquisitions and long-term investments	47,805	99,340
Value-added tax and other taxes payable	31,706	35,391
Interest payables	35,785	77,168
Others	84,844	51,482
	2,410,479	2,783,102

(1)	On July 15, 2021, the Company acquired 100% of the equity interests in BJ TenxCloud from third party selling shareholders. The balance of consideration due to original shareholders represented the amounts the selling shareholders claimed according to the acquisition agreement.

PREPAID EXPENSES AND OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2023

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,
	2022	2023
	RMB	RMB
Prepaid expenses (1)	988,467	1,344,525
Tax recoverable	620,901	907,629
Deposits	59,653	33,941
Loans to third parties (2)	376,851	5,787
Staff advances	2,992	2,518
Interest receivables	544	532
Others	98,092	80,409
	2,147,500	2,375,341

(1)	Prepaid expenses mainly represented the unamortized portion of prepayments made to Microsoft for the cloud services, the prepayments to telecommunication operators for bandwidth, data centers or cabinets and the prepayments for office expense.

(2)

In December 2022, loan amounting to RMB279,500 was provided to the third party selling shareholders of KS Kunhui (Note 4) to settle the liabilities to KS Kunhui. The loan bears an interest rate of 7.5% per annum and has a maturity term ranging from four to six months. The loan was secured by the third parties’ equity shares in their subsidiaries and certain property and equipment of their subsidiaries. During 2023, RMB85,000 was repaid to the Company, RMB194,500 of the above outstanding loan as well as RMB93,400 of another loan provided to a third party in September 2021 with an original maturity period of 18 months were overdue and full amount of allowance for credit losses was recognized as of December 31, 2023. The credit losses were recorded in allowance for doubtful debt in the consolidated statement of operations.

An analysis of the allowance for doubtful debt in relation to other receivables was as follows:


	For the years ended December 31,
	2022	2023
	RMB	RMB
Balance at beginning of the year	130,908	131,624
Addition	15,460	313,993
Write-off	(15,000)	—
Foreign exchange difference	256	52
Balance at the end of the year	131,624	445,669

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statement of Comprehensive Loss (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Condensed statements of comprehensive loss
Net loss	¥ (2,643,836)	$ (372,378)	¥ (775,952)	¥ 500,098
Other comprehensive (loss) income, net of tax of nil
Foreign currency translation adjustments, net of tax of nil	(25,365)	(3,573)	101,465	(34,908)
Comprehensive income (loss)	(2,622,534)	(369,378)	(660,529)	480,193
Comprehensive (loss) income attributable to VNET Group, Inc.	(2,669,201)	$ (375,951)	(674,487)	465,190
Parent Company
Condensed statements of comprehensive loss
Net loss	(2,643,836)		(775,952)	500,098
Other comprehensive (loss) income, net of tax of nil
Foreign currency translation adjustments, net of tax of nil	(25,365)		101,465	(34,908)
Other comprehensive loss, net of tax of nil:	(25,365)		101,465	(34,908)
Comprehensive (loss) income attributable to VNET Group, Inc.	¥ (2,669,201)		¥ (674,487)	¥ 465,190

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

TAXATION - PRC operations (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
TAXATION
Income (loss) before income taxes	¥ (2,482,795)		¥ (628,530)	¥ 626,508
Income tax (expenses) benefits computed at applicable tax rates (25%)	620,699		157,133	(156,627)
Non-deductible expenses	(700)		(72,156)	(13,116)
Research and development expenses	65,863		67,789	45,122
Preferential rate	(6,140)		(6,163)	14,232
Current and deferred tax rate differences	11,036		15,847	26,115
International rate differences	(101,585)		(75,119)	120,678
Tax exempted income	2,803		249	14,536
Foreign investment	(53,617)		(39,224)	(49,815)
Unrecognized tax benefits	(11,283)		(13,674)	(12,338)
Change in valuation allowance	(606,071)		(135,732)	(79,733)
Prior year provision to return true up	(34,759)		(28,949)	(22,898)
Others	620		3,465	(2,437)
Income tax expenses	¥ (114,374)	$ (16,109)	¥ (133,464)	¥ (111,407)

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2023

COMMITMENTS AND CONTINGENCIES.

COMMITMENTS AND CONTINGENCIES

29. COMMITMENTS AND CONTINGENCIES

Capital commitments

As of December 31, 2023, the Company has the following commitments to purchase certain computer and network equipment and construction-in-progress:


		RMB
For the year ending December 31,
2024		1,435,439
2025		348,096
2026		6,120
2027		7,402
2028		3,744
2029 and thereafter		7
		1,800,808

Bandwidth and cabinet capacity purchase commitments

As of December 31, 2023, the Company has outstanding purchase commitments in relation to bandwidth and cabinet capacity consisting of the following:


		RMB
For the year ending December 31,
2024		888,030
2025		227,716
2026		173,244
2027		72,906
2028		7,820
2029 and thereafter		2,627
		1,372,343

29. COMMITMENTS AND CONTINGENCIES (CONTINUED)

Income Taxes

As of December 31, 2023, the Company has recognized an accrual of RMB98,457 for unrecognized tax benefits and its interest (Note 23). The final outcome of the tax uncertainty is dependent upon various matters including tax examinations, interpretation of tax laws or expiration of status of limitation. However, due to the uncertainties associated with the status of examinations, including the protocols of finalizing audits by the relevant tax authorities, there is a high degree of uncertainty regarding the future cash outflows associated with these tax uncertainties.

Securities Litigation

In December 2023 and January 2024, the Company and certain of its current and former executive officers were named as defendants in a putative securities class action lawsuit filed in the United States District Court for the Southern District of New York. The complaint alleges that the Company made materially false and/or misleading statements and/or failed to disclose certain material information concerning the founder and co-chairperson, Mr. Sheng Chen’s financing activities and the related impact on the Company’s business operations in violation of the U.S. securities laws. On March 22, 2024, the Court ordered motion-to-dismiss briefing for the amended compliant to be completed by October 3, 2024. At the date of issue of the consolidated financial statements, the Company is unable to predict the outcome of the lawsuit, or reasonably estimate a range of possible losses, if any, given the early stage of this lawsuit. Therefore, no contingent liability has been recorded by the Company as of December 31, 2023.

Operating Litigation

In the ordinary course of business, the Company may from time to time be involved in legal proceedings and litigations. As of December 31, 2023, the Company did not consider an unfavorable outcome in any material respects in the outstanding legal proceedings and litigations to be probable.

CONSOLIDATED STATEMENTS OF CASH FLOWS ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	¥ (2,597,169)	$ (365,805)	¥ (761,994)	¥ 515,101
Adjustments to reconcile net income (loss) to net cash generated from operating activities:
Foreign exchange (gain) loss, net	78,965	11,122	523,235	(110,036)
Depreciation and amortization	1,807,339	254,559	1,595,942	1,267,578
Loss on disposal of property and equipment and intangible assets	3,198	450	15,592	6,339
Allowance for doubtful debt	368,505	51,903	50,409	18,399
Share-based compensation expense	35,296	4,971	118,170	320,010
Impairment of loan receivable to potential investee				2,807
Deferred income tax expenses (benefits)	(43,152)	(6,078)	17,887	325
Loss (gain) from equity method investments	(3,279)	(462)	(1,925)	38,666
Distribution received from an equity method investment			15,232
Gain from disposal of subsidiaries	(495)	(70)	(1,388)	(17,153)
Impairment of long-lived assets	506,686	71,365		109,267
Impairment of goodwill	1,364,191	192,142	0
Impairment of long-term investments	11,166	1,573		3,495
Lease expense	433,121	61,004	508,818	557,865
Changes in the fair value of financial liabilities	165,930	23,371	(22,626)	(829,149)
Changes in operating assets and liabilities, net of effects of acquisitions and disposals:
Accounts and notes receivable	(5,766)	(812)	(381,194)	(533,323)
Prepaid expenses and other current assets	(365,762)	(51,517)	621,973	73,639
Amounts due from related parties	(2,886)	(406)	(6,997)	(17,502)
Accounts and notes payables	(24,430)	(3,441)	220,129	195,728
Unrecognized tax benefits	11,283	1,589	9,601	8,877
Accrued expenses and other payables	200,059	28,180	226,893	315,989
Deferred revenue	399	56	39,383	(7,550)
Advances from customers	447,284	62,999	116,061	307
Income taxes payable	(6,820)	(961)	(1,753)	14,742
Deferred government grants	155,333	21,878	5,000	93
Amounts due to related parties	6,131	864	(992)	7,431
Operating lease liabilities	(481,647)	(67,839)	(465,242)	(554,023)
Net cash generated from operating activities	2,063,480	290,635	2,440,214	1,387,922
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(2,967,447)	(417,956)	(2,995,608)	(2,691,928)
Purchases of intangible assets	(50,906)	(7,170)	(57,295)	(42,285)
Purchases of land use rights	(42,275)	(5,954)	(47,704)	(91,744)
Proceeds from disposal of property and equipment	31,703	4,465	6,132	10,220
Proceeds from disposal of subsidiaries, net	12,704	1,790	300
Payments for short-term investments	(503,276)	(70,885)		(64,605)
Payment of loans to third parties	(1,600)	(225)	(217,586)	(16,474)
Payment of loans to related parties	(115,048)	(16,205)	(500)	(75,872)
Receipt of loans to third parties	93,996	13,239	5,000	17,010
Receipt of loans to a related party	9,800	1,380
Proceeds received from maturity of short-term investments	144,516	20,355		347,520
Proceeds from disposal of long-term investments				120
Payments for long-term investments	(517,278)	(72,857)	(213,000)	(5,000)
Prepayments and deposits for acquisition of data center			(36,000)	(679,941)
Collection of deposit for acquisition of data center				30,000
Payments for acquisitions, net of cash acquired	2		(2,991)	(509,634)
Net cash used in investing activities	(3,905,109)	(550,023)	(3,559,252)	(3,772,613)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options				472
Proceeds from issuance of ordinary shares (Note 27)	2,122,123	298,895		(131)
Payment of issuance costs of ordinary shares	(1,880)	(265)
Proceeds from loan from a related party (Note 24)	350,000	49,296
Proceeds from long-term bank borrowings	1,813,927	255,486	1,099,893	1,628,438
Proceeds from other long-term borrowings	1,020,008	143,665	282,000	220,000
Repayments of long-term bank borrowings	(292,625)	(41,215)	(238,305)	(179,455)
Repayments of short-term bank borrowings				(34,000)
Repayments and deposits for other long-term borrowings	(268,124)	(37,764)	(207,089)	(175,123)
Payments for purchase of property and equipment through finance leases	(210,902)	(29,705)	(231,046)	(579,660)
Proceeds from loan from a related party (Note 24)	10,122	1,426
Repayment of loans from third parties	(78,000)	(10,986)		(66,884)
Contribution from noncontrolling interest in subsidiaries				11,223
Payments for share repurchase and cancellation				(1,701,807)
Refund of prepayment for share repurchase plan	7,317	1,031
Repayment of notes payable				(1,945,620)
Profit distribution to noncontrolling interest	(11,413)	(1,607)		(272)
Net cash generated from financing activities	3,941,134	555,097	2,298,080	967,577
Effect of foreign exchange rate changes on cash and cash equivalents and restricted cash	9,988	1,407	101,979	9,150
Net (decrease) increase in cash and cash equivalents and restricted cash	2,109,493	297,116	1,281,021	(1,407,964)
Cash and cash equivalents and restricted cash at beginning of year	2,989,494	421,061	1,708,473	3,116,437
Cash and cash equivalents and restricted cash at end of year	5,098,987	718,177	2,989,494	1,708,473
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets
Cash and cash equivalents	2,243,537	315,996	2,661,321	1,372,481
Restricted cash-current	2,854,568	402,057	327,673	327,767
Restricted cash-non-current	882	124	500	8,225
Cash and cash equivalents and restricted cash at end of year	5,098,987	718,177	2,989,494	1,708,473
Supplemental disclosures of cash flow information:
Income taxes paid	(145,605)	(20,508)	(159,784)	(82,995)
Interest paid	(251,066)	(35,362)	(222,411)	(259,765)
Interest received	41,814	5,889	31,758	30,121
Supplemental disclosures of non-cash activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	952,999	134,227	944,148	2,080,748
Purchase of property and equipment through finance leases	265,974	37,462	144,455	284,007
Purchase of property and equipment included in accrued expenses and other payables	270,909	38,157	457,282	321,140
Purchase of intangible assets included in accrued expenses and other payables	3,497	493	4,768	3,910
Payables for issuance cost of ordinary shares included in accrued expenses and other payables	35,840	5,048
Asset acquistion settled with equity interests of a subsidiary (Note 4)	116,996	16,479
Consideration payable for acquisition of noncontrolling interest included in accrued expenses and other payables	47,549	6,697
2025 Convertible Notes
Adjustments to reconcile net income (loss) to net cash generated from operating activities:
Changes in the fair value of financial liabilities		21,816	22,626	829,149
CASH FLOWS FROM FINANCING ACTIVITIES
Repurchase of 2025 Convertible Notes (Note 19)	(529,175)	(74,533)
2026 Convertible Notes
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of 2027 Convertible Notes, net of issuance cost				¥ 3,790,396
Proceeds from short-term bank borrowings	¥ 30,000	$ 4,225
2027 Convertible Notes
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of 2027 Convertible Notes, net of issuance cost			¥ 1,592,627

INTANGIBLE ASSETS, NET (Tables)

12 Months Ended

Dec. 31, 2023

INTANGIBLE ASSETS, NET

Schedule of intangible assets


		Radio									Internal
	Purchased	spectrum	Operating	Technology	Customer		Supplier	Trade	Customer	Non-Complete	use
	software	license	Permits	Platform	relationships	Licenses	relationships	names	contract	Agreement	software	Total
	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB
Intangible assets, cost December 31, 2022	207,565	134,543	1,217,876	38,050	257,183	5,772	39,053	116,266	190,141	1,800	74,224	2,282,473
Accumulated amortization	(139,443)	(83,294)	(56,433)	(18,258)	(235,810)	(3,428)	(34,281)	(48,929)	(68,622)	(1,800)	(53,785)	(744,083)
Impairment	—	(41,259)	—	—	—	—	—	—	—	—	—	(41,259)
Intangible assets, net December 31, 2022	68,122	9,990	1,161,443	19,792	21,373	2,344	4,772	67,337	121,519	—	20,439	1,497,131
Intangible assets, cost December 31, 2023	233,513	136,825	1,199,210	38,050	257,183	5,772	39,053	116,266	190,141	1,800	90,419	2,308,232
Accumulated amortization	(157,081)	(87,145)	(89,226)	(23,739)	(256,888)	(3,812)	(37,299)	(54,742)	(89,002)	(1,800)	(67,020)	(867,754)
Impairment	(802)	(41,959)	—	(14,311)	—	—	—	—	—	—	—	(57,072)
Intangible assets, net December 31, 2023	75,630	7,721	1,109,984	—	295	1,960	1,754	61,524	101,139	—	23,399	1,383,406

Schedule of annual estimated amortization expenses of intangible assets


		RMB
2024		294,541
2025		153,513
2026		27,877
2027		17,591
2028		11,325
		504,847

BORROWINGS

12 Months Ended

Dec. 31, 2023

BORROWINGS

BORROWINGS

14. BORROWINGS

Borrwings were as follows as of the respective balance sheet dates:


	As of December 31,
	2022	2023
	RMB	RMB
Short term bank borrowings	—	30,000
Long-term bank borrowings, current portion	289,941	334,511
Other long-term borrowings, current portion	194,079	388,814
	484,020	753,325
Long-term bank borrowings, non-current portion	2,694,249	4,170,981
Other long-term borrowings, non-current portion	355,607	942,540
Total borrowings	3,533,876	5,866,846

The short-term bank borrowings outstanding as of December 31, 2023 bore a weighted average interest rate of 3.65% per annum.

The long-term borrowings (including current portion) outstanding as of December 31, 2022 and 2023 bore a weighted average interest rate of 5.11% and 4.97% per annum, respectively, and were denominated in RMB. These loans were obtained from financial institutions located in the PRC.

As of December 31, 2022 and 2023, unused loan facilities for bank and other borrowings amounted to RMB3,164,371 and RMB2,811,123 , respectively.

Borrowings as of December 31, 2022 and 2023 were secured by the following:

December 31, 2022


Long-term borrowings (including current portion)		Secured by
(RMB)
1,879,631		Secured by a subsidiary’s share.
800,989		Secured by a subsidiary’s land-use right with net book value of RMB24,460 (Note 10).
247,171		Secured by a subsidiary’s property and equipment and land-use right with net book value of RMB118,050 and RMB91,435, respectively (Note 8/Note 10), and a subsidiary’s share.
156,077		Secured by a subsidiary’s property and equipment with net book value of RMB231,424 (Note 8), and a subsidiary’s share.
450,008		Unsecured borrowing.
3,533,876

14. BORROWINGS (CONTINUED)

December 31, 2023



Short-term borrowings		Secured by
(RMB)
30,000		Unsecured borrowing.

Long-term borrowings (including current portion)		Secured by
(RMB)
2,180,490		Secured by a subsidiary’s share.
3,101,522		Secured by property and equipment and land-use right with net book value of RMB845,898 and RMB196,195, respectively (Note 8/Note 10), and a subsidiary’s share
554,834		Unsecured borrowing.
5,836,846

The following table summarizes the aggregate required repayments of the principal amounts of the Company’s long-term borrowings, including bank and other borrowings in the succeeding five years and thereafter:


		RMB
For the years ending December 31,
2024		799,314
2025		816,677
2026		751,209
2027		683,110
2028		689,511
2029 and thereafter		2,273,233

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 470
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//470/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1B

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1C
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1C

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1E
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1E

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1I
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481139/470-20-50-1I

+ Details

SHARE-BASED COMPENSATION - Employee share options activity (Details) - 2010 Plan [Member] $ / shares in Units, ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥) shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 $ / shares shares
Number of options
Outstanding, beginning balance \| shares	359,202	359,202
Outstanding, ending balance \| shares	359,202	359,202	359,202
Vested as of December 31, 2023 \| shares		359,202
Exercisable as of December 31, 2023 \| shares		359,202
Weighted average exercise price
Outstanding, beginning balance \| $ / shares		$ 0.17
Outstanding, ending balance \| $ / shares		0.17	$ 0.17
Vested as of December 31, 2023 \| $ / shares		0.17
Exercisable as of December 31, 2023 \| $ / shares		$ 0.17
Weighted average remaining contractual term
Outstanding, beginning balance	1 year	1 year	1 year 11 months 15 days
Vested as of December 31, 2023	1 year	1 year
Exercisable as of December 31, 2023	1 year	1 year
Aggregate intrinsic value
Aggregate intrinsic value, exercisable \| $		$ 114
Aggregate intrinsic value, vested \| $		114
Aggregate intrinsic value, ending balance	¥ 809	$ 114

SHARE-BASED COMPENSATION

12 Months Ended

Dec. 31, 2023

SHARE-BASED COMPENSATION.

SHARE-BASED COMPENSATION

22. 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.

In order to continuously attract and retain talents, the Company adopted a share incentive plan in 2020 (the “2020 Plan”). Under the 2020 Plan, the Company is authorized to issue an aggregate of 46,560,708 Class A ordinary shares of the Company (equal to the sum of (i) 5% of the Company’s share capital as of the date hereof, calculated on an as-converted basis by taking into consideration all the convertible promissory notes issued and to be issued by the Company, and (ii) 7,562,532 Class A ordinary shares reserved under the “2010 Plan” and “2014 Plan” for future grants) will be reserved for future issuance.

22. SHARE-BASED COMPENSATION (CONTINUED)

(a)

Option granted to employees (continued)

After adoption of the 2020 Plan, the Company ceased to grant any new awards under the 2010 Plan and 2014 Plan while the outstanding awards granted thereunder will remain effective and can be amended by the Company from time to time pursuant to the applicable terms thereto. The 2020 Plan was approved by the Board of Directors and shareholder of the Company on May 13, 2020.

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, 2023	359,202	0.17	1.96	—
Exercised	—	—	—	—
Outstanding, December 31, 2023	359,202	0.17	1.00	114
Vested as of December 31, 2023	359,202	0.17	1.00	114
Exercisable as of December 31, 2023	359,202	0.17	1.00	114

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, 2023, the Company had options outstanding to purchase an aggregate of 359,202 shares with an exercise price below the fair value of the Company’s shares, resulting in an aggregate intrinsic value of RMB809 (US$114).

The aggregate fair value at the grant date of the outstanding options as of December 31, 2023 was determined to be RMB5,211. The total fair value of share options exercised during the years ended December 31, 2021, 2022 and 2023 was US$122, US$4 and nil, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2021, 2022 and 2023 was US$67, US$2 and nil, respectively.

(b)Shares granted to management

The Company granted 3,534,767, 866,716 and 20,550 RSUs in 2021, 2022 and 2023, respectively, with performance conditions whereby a predetermined number will vest upon the annual performance review in accordance with predetermined performance targets for the grantees over a one or four-year period. To the extent that the Company considered the performance targets were probable of achievement, the Company recognized related compensation expenses using the accelerated recognition method to reflect the graded vesting attribution.

The Company granted 298,454, 22,000 and nil RSUs in 2021, 2022 and 2023, respectively, with performance conditions whereby a predetermined number will vest upon with the achievement of predetermined operation performance targets for the Company. To the extent that the Company considered the performance targets were probable of achievement, the Company recognized the related compensation expenses using the accelerated recognition method.

22. SHARE-BASED COMPENSATION (CONTINUED)

(b)Shares granted to management (continued)

The Company granted 1,368,227 RSUs in 2023, which generally vest over a two to four-year service period.

The following table summarized the Company’s RSUs activity under the 2014 and 2020 Plans:


		Weighted	Weighted
		average	average	Aggregate
	Number of	grant date	remaining	intrinsic
	RSUs	fair value	contractual life	value
		(US$)	(Years)	(US$)
Unvested, January 1, 2023	1,700,864	11.28	6.1	—
Granted	1,388,777	2.96	—	—
Vested	(507,282)	5.04	—	—
Forfeited	(2,553)	13.26	—	—
Unvested, December 31, 2023	2,579,806	8.07	6.6	7,404

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. The aggregate fair value of the unvested RSUs as of December 31, 2023 was RMB52,568 (US$7,404). The weighted average grant date fair value of RSUs granted during the years ended December 31, 2021, 2022 and 2023 was US$12.31, US$5.48 and US$2.96, respectively. The total fair value of RSUs vested during the years ended December 31, 2021, 2022 and 2023 was US$42,672, US$6,883 and US$2,557, respectively.

As of December 31, 2023, there was RMB34,916 (US$4,918) of unrecognized share-based compensation expenses related to RSUs which is expected to be recognized over a weighted average vesting period of 1.1 years. Total unrecognized share-based compensation expenses may be adjusted for future changes when actual forfeitures incurred.

(c)

Share-based compensation due to business combination

On July 15, 2021, the Company acquired 100% of the equity interests in BJ TenxCloud from third party selling shareholders. The Company is obligated to issue a variable number of the shares of the Company or its subsidiary for a fixed monetary amount to certain selling shareholders who will remain as the employees of BJ TenxCloud, determinable based on achievements of the financial and operational targets by BJ TenxCloud during various post-acquisition periods. As such share-based payments will be forfeited if these employees cease their employments with the Company, the Company recognized these payments as compensation costs over the requisite service periods ranging from 12 months to 36 months. The Company classified the share-based payments as liability classified share-based payments.

For the years ended December 31, 2021, 2022 and 2023, the Company recorded compensation cost of RMB55,156, RMB75,960 and RMB18,496, within the Company’s consolidated statements of operations. As of December 31, 2023, there was no unrecognized share-based compensation expenses in relation to the above transaction.

Total share-based compensation expenses relating to share options, RSUs granted to employees and share-based compensation due to business combination recognized for the years ended December 31, 2021, 2022 and 2023 were as follows:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Cost of revenues	13,713	563	—
Sales and marketing expenses	2,545	17,794	3,141
General and administrative expenses	292,947	85,508	28,883
Research and development expenses	10,805	14,305	3,272
	320,010	118,170	35,296

BORROWINGS - Additional Information (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Short and long term bank borrowings
Short-term bank borrowings, weighted average interest rate	3.65%
Unused loan facilities (in RMB) or (in dollars)	¥ 2,811,123	¥ 3,164,371
Long Term Bank Borrowings
Short and long term bank borrowings
Long-term bank borrowings, weighted average interest rate	4.97%	5.11%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment charges associated with its long-lived assets and acquired intangibles (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Long-lived assets impairment	¥ 506,686	$ 71,365	¥ 0	¥ 109,267
Impairment of equipment	480,099			106,311
Impairment of intangible assets	15,113
Impairment of right-of-use assets	¥ 11,474
Impairment of other non-current assets				2,956
Other Asset Impairment Charges				¥ 2,956

FAIR VALUE MEASUREMENTS - Liabilities measured (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Expense
2025 Convertible promissory notes
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Beginning Balance	¥ 537,778	¥ 513,754
Foreign exchange loss	11,127	46,650
Changes in the fair value	¥ (21,816)	¥ (22,626)
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Changes In The Fair Value Of Convertible Promissory Notes	Changes In The Fair Value Of Convertible Promissory Notes
Settlement	¥ (527,089)
Ending Balance		¥ 537,778
Share consideration due to the original shareholders for business combinatio
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
Beginning Balance		214,577
Foreign exchange loss	960
Changes in the fair value	187,746
Transfer out of Level 3		¥ (214,577)
Ending Balance	¥ 188,706

PROPERTY AND EQUIPMENT, NET - Carrying amounts of property and equipment held under capital leases (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Lessee, Lease, Description [Line Items]
Property and equipment held under finance leases, gross	¥ 1,780,071	¥ 2,102,896
Less: Accumulated depreciation	(709,209)	(847,449)
Property and equipment held under finance leases net excluding construction in progress	1,070,862	1,255,447
Construction-in-progress	219,283
Impairment	(19,361)	(18,808)
Property and equipment held under finance leases, net	¥ 1,270,784	¥ 1,236,639
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Property, Plant and Equipment, Net	Property, Plant and Equipment, Net
Property
Lessee, Lease, Description [Line Items]
Property and equipment held under finance leases, gross	¥ 993,158	¥ 993,158
Computer and network equipment
Lessee, Lease, Description [Line Items]
Property and equipment held under finance leases, gross	648,989	971,814
Optical fibers
Lessee, Lease, Description [Line Items]
Property and equipment held under finance leases, gross	¥ 137,924	¥ 137,924

LONG-TERM INVESTMENTS, NET

12 Months Ended

Dec. 31, 2023

LONG-TERM INVESTMENTS, NET

LONG-TERM INVESTMENTS, NET

12. LONG-TERM INVESTMENTS, NET

The Company’s long-term investments consisted of the following:


	As of December 31,
	2022	2023
	RMB	RMB
Equity investments without readily determinable fair values	17,137	19,821
Equity method investments	223,457	738,128
Available-for-sale debt investments	1,600	—
	242,194	757,949

Equity investments without readily determinable fair values

The investment income comprised of dividend income of RMB659, RMB391 and RMB3,270 for the years ended December 31, 2021, 2022 and 2023, respectively.

The Company recorded an impairment loss of long-term investments amounting to nil, nil and RMB9,327 for the years ended December 31, 2021, 2022 and 2023, respectively.

Equity method investments:


					Increase (decrease)
					during
					the year ended
	As of December 31, 2021				December 31, 2022			As of December 31, 2022
		Share		Investments		Share	Distribution/derecognize		Share	Impairment	Investments
	Cost of	equity	Impairment of	in equity	Cost of	equity gain	of share equity	Cost of	equity gain	of	in equity
	investments	loss	investment	investee	investments	(loss)	(gain) loss	investments	(loss)	investment	investee
	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB
Yizhuang Fund	101,000	(32,285)	—	68,715	—	3,159	(71,874)	—	—	—	—
Jingliang Inter Cloud	6,000	(5,013)	—	987	—	(4)	—	6,000	(5,017)	—	983
Jingliang Century Cloud	4,000	—	—	4,000	—	—	—	4,000	—	—	4,000
ZJK Energy	5,907	(3,816)	—	2,091	—	16	—	5,907	(3,800)	—	2,107
WiFire Entities	20,000	(20,000)	—	—	—	—	—	20,000	(20,000)	—	—
Qidi Chengxin	3,930	(217)	—	3,713	—	(116)	—	3,930	(333)	—	3,597
BJ Chaohulian	5,000	(1,505)	(3,495)	—	—	—	—	5,000	(1,505)	(3,495)	—
Dexin Tonglian	—	—	—	—	3,000	(333)	—	3,000	(333)	—	2,667
SH Edge Interchange*	—	—	—	—	900	(797)	—	900	(797)	—	103
Changzhou Gaoxin	—	—	—	—	210,000	—	—	210,000	—	—	210,000
	145,837	(62,836)	(3,495)	79,506	213,900	1,925	(71,874)	258,737	(31,785)	(3,495)	223,457


					Increase (decrease)
					during
					the year ended
	As of December 31, 2022				December 31, 2023			As of December 31, 2023
		Share	Impairment	Investments		Share	Distribution/derecognize		Share	Impairment	Investments
	Cost of	equity	of	in equity	Cost of	equity gain	of share equity	Cost of	equity	of	in equity
	investments	loss	investment	investee	investments	(loss)	(gain)loss	investments	gain (loss)	investment	investee
	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB
Jingliang Inter Cloud	6,000	(5,017)	—	983	—	(2)	—	6,000	(5,019)	—	981
Jingliang Century Cloud	4,000	—	—	4,000	—	—	—	4,000	—	—	4,000
ZJK Energy	5,907	(3,800)	—	2,107	—	(45)	—	5,907	(3,845)	—	2,062
WiFire Entities	20,000	(20,000)	—	—	(20,000)	—	20,000	—	—	—	—
Qidi Chengxin	3,930	(333)	—	3,597	—	(119)	—	3,930	(452)	—	3,478
BJ Chaohulian	5,000	(1,505)	(3,495)	—	—	—	—	5,000	(1,505)	(3,495)	—
Dexin Tonglian	3,000	(333)	—	2,667	—	(475)	—	3,000	(808)	—	2,192
SH Edge Interchange*	900	(797)	—	103	—	(103)	—	900	(900)	—	—
Changzhou Gaoxin	210,000	—	—	210,000	488,392	5,107	—	698,392	5,107	—	703,499
Zhuhai Private	—	—	—	—	23,000	(1,084)	—	23,000	(1,084)	—	21,916
	258,737	(31,785)	(3,495)	223,457	491,392	3,279	20,000	750,129	(8,506)	(3,495)	738,128

*	“SH Edge Interchange” represents Shanghai Edge Cloud Interchange Technology Co., Ltd.

12. LONG-TERM INVESTMENTS, NET (CONTINUED)

Equity method investments (continued):

The Company through its subsidiary, VNET Beijing, entered into an agreement to invest in the Yizhuang Venture Investment Fund (“Yizhuang Fund”) as a limited partner since April 2012 with capital injection of RMB101,000 and held 27.694% of the investee as of December 31, 2020, 2021. Given the Company holds more than three percent interest in the Yizhuang Fund as a limited partner, the investment is accounted for under the equity method as prescribed in ASC Subtopic 323-10, Investments – Equity Method (“ASC 323-10”). For the year ended December 31, 2022, the Company received distribution from Yizhuang Fund as return on investments with an amount of RMB15,232. As of December 31, 2022, the operating period of Yizhuang Fund was expired and the liquidation work was initiated. The Company derecognized the investment and recognized the estimated recoverable amount of RMB56,642 in prepaid expenses and other current assets.

In September 2017, after the disposal of 66.67% equity interest in the WiFire Entities, the Company held the remaining 33.33% equity interest in the WiFire Entities, which is accounted for equity method investment at fair value at the disposal date. As of December 31, 2022, the equity method investment balance is reduced to nil after the pickup of loss in the WiFire Entities. In October and November 2023, the Company transferred the remaining 33.33% equity interest in the WiFire Entities to third parties with nil consideration.

In January 2018, the Company through its subsidiary, VNET Beijing, and a third company jointly set up Beijing Jingliang Interconnected Cloud Technology Inc. (“Jingliang Inter Cloud”) and Jingliang Century Cloud Technology Inc. (“Jingliang Century Cloud”). The Company injected capital of RMB6,000 and RMB4,000 and the Company held 60% and 40% of equity interest in Jingliang Inter Cloud and Jingliang Century Cloud, respectively. Based on the article of association, the Company cannot exercise control over relevant activities of the investee, but it has the ability to exercise significant influence over Jingliang Inter Cloud’s operation and financial decisions.

In December 2019, the Company through its subsidiary, VNET Beijing, and a third company jointly set up Chengdu Qidi Chengxin Education Limited (“Qidi Chengxin”). The Company injected capital of RMB3,930 and held 59% of equity interest in Qidi Chengxin. Based on the article of association, the Company cannot exercise control over relevant activities of the investee, but it has the ability to exercise significant influence over operation and financial decisions.

In January 2021, the Company through its subsidiary, VNET Beijing, and two third parties jointly set up Beijing Super Internet Technology Research Institute Co., Ltd. (“BJ Chaohulian”). The Company injected capital of RMB5,000 and held 30% of equity interest in BJ Chaohulian. As of December 31, 2021, the equity method investment balance is reduced to nil after the Company pickup of loss amounting to RMB1,505 and recorded impairment of investment amounting to RMB3,495.

In September 2022, the Company through its subsidiary, Shanghai Cloud Network Co., Ltd., and five third parties jointly set up Dexin Tonglian (Beijing) Culture Technology Co., Ltd. (“Dexin Tonglian”). The Company injected capital of RMB3,000 and hold 30% of equity interest in Dexin Tonglian. Based on the article of association, the Company cannot exercise control over relevant activities of the investee, but it has the ability to exercise significant influence over operation and financial decisions.

In November 2022, the Company through its subsidiary, VNET HK, and a third party jointly set up Changzhou Gaoxin Interconnection Co., Ltd. (“Changzhou Gaoxin”). The Company injected capital of RMB210,000 and held 35% of equity interest in Changzhou Gaoxin. Based on the article of association, the Company cannot exercise control over relevant activities of the investee, but it has the ability to exercise significant influence over operation and financial decisions. In April and May 2023, the Company injected additional capital of RMB488,392 and its shareholding remained at 35%.

In February 2023, the Company through its subsidiary, SH Shilian, and Zhuhai VNET Enterprise Management Partnership (Limited Partnership), an entity controlled by the founder of the Company, jointly set up Zhuhai VNET Private Equity Fund Management Co., Ltd. (“Zhuhai Private”). The Company injected capital of RMB23,000 and held 40% of equity interest in Zhuhai Private. 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.

EMPLOYEE CONTRIBUTION PLAN (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
EMPLOYEE CONTRIBUTION PLAN
Total expense for defined contribution plan	¥ 208,556	¥ 191,914	¥ 158,673

RELATED PARTY TRANSACTIONS - Related party balances (Details) - Related Party [Member] ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
RELATED PARTY TRANSACTIONS
Amounts due from related parties	¥ 277,237	$ 39,048	¥ 152,089
Amount due to related parties	356,080		6,928
Shanghai Puping
RELATED PARTY TRANSACTIONS
Amounts due from related parties	218,405		138,142
SH Shibei
RELATED PARTY TRANSACTIONS
Amounts due from related parties			11,121
BJ New Internet
RELATED PARTY TRANSACTIONS
Amounts due from related parties	441		441
Shanghai Edge Interchange
RELATED PARTY TRANSACTIONS
Amounts due from related parties	1,533		1,191
Sanhe Mingtai
RELATED PARTY TRANSACTIONS
Amounts due from related parties	56,833
CYSD
RELATED PARTY TRANSACTIONS
Amount due to related parties			6,398
Changzhou Gaoxin
RELATED PARTY TRANSACTIONS
Amount due to related parties	356,067
Others
RELATED PARTY TRANSACTIONS
Amounts due from related parties	25		1,194
Amount due to related parties	¥ 13		¥ 530

ORGANIZATION

12 Months Ended

Dec. 31, 2023

ORGANIZATION

ORGANIZATION

1. ORGANIZATION

VNET Group, Inc. (the “Company”) was incorporated under the laws of the Cayman Islands on October 16, 2009. The Company, together with its consolidated subsidiaries and variable interest entities (“VIEs”) are principally engaged in the provision of data center hosting and related services. Where appropriate, the term “Company” also refers to the Company itself and its consolidated subsidiaries and VIEs as a whole.

(a)	As of December 31, 2023, the principal consolidated subsidiaries and VIEs of the Company are as follows:

Entity	Date of incorporation/ acquisition	Place of incorporation	Percentage of direct ownership by the Company		Principal activities

Subsidiaries:
VNET Group Limited (“VNET HK”)	May 25, 2007	Hong Kong	100	%	Investment holding
VNET Data Center Co., Ltd. (“VNET China”) ⁽¹⁾	June 12, 2000	PRC	100	%	Provision of technical and consultation services and rental of long-lived assets
VNET (Foshan) Technology Co., Ltd. (“FS Technology”) ⁽¹⁾	December 20, 2011	PRC	100	%	Trading of network equipment, provision of technical and internet data center services
VNET Anhui Suzhou Technology Co., Ltd. (“SZ Technology”) ⁽¹⁾	November 16, 2011	PRC	100	%	Trading of network equipment
VNET Hangzhou Information Technology Co., Ltd. (“HZ Technology”) ⁽¹⁾	March 4, 2013	PRC	100	%	Provision of internet data center services
VNET Mobile Limited (“VNET Mobile”)	April 30, 2013	Hong Kong	100	%	Investment holding and provision of telecommunication services
WiFire Group Inc. (“WiFire Group”)	March 7, 2014	British Virgin Islands	100	%	Investment holding
Joytone Infotech Co., Ltd. (“SZ Zhuoaiyi”) ⁽¹⁾	April 30, 2013	PRC	100	%	Provision of technical and consultation services
VNET Ventures Limited (“Ventures”)	March 6, 2014	Hong Kong	100	%	Investment holding
Abitcool (China) Broadband Inc. (“aBitCool DG”) ⁽¹⁾	June 13, 2014	PRC	100	%	Dormant company
Diyixian.com Limited (“DYX”)	August 10, 2014	Hong Kong	100	%	Provision of virtual private network services
VNET Zhuhai Financial Leasing Co., Ltd. (“Zhuhai Financial Leasing”) ⁽¹⁾	April 9, 2015	PRC	100	%	Provision of finance leasing business services
VNET DRP Investment Holdings Limited (“DRP investment”)	January 13, 2017	Hong Kong	100	%	Investment holding
Shihua DC Investment Holdings Limited (“Shihua Investment”)	March 14, 2017	Cayman Islands	51	%	Investment holding
VNET (Xi’an) Technology Co., Ltd. (“Xi’an Tech”) ⁽¹⁾	July 5, 2012	PRC	51	%	Provision of technical and internet data center services
Foshan Zhuoyi Intelligence Data Co., Ltd. (“FS Zhuoyi”) ⁽¹⁾	July 7, 2016	PRC	51	%	Provision of internet data center services
Beijing Hongyuan Network Technology Co., Ltd. (“BJ Hongyuan”) ⁽¹⁾	December 8, 2014	PRC	51	%	Provision of internet data center services
Dermot Holdings Limited (“Dermot BVI”)	August 10, 2014	British Virgin Islands	100	%	Investment holding
VNET Technology Development (Suzhou) Co., Ltd.(“Suzhou Technology”)	March 13, 2019	PRC	100	%	Provision of internet data center services
Huailai hulianyun Technology Co., Ltd.(“Huailai hulianyun”)	June 26, 2019	PRC	100	%	Provision of internet data center services
Shihua DC Investment Holdings 2 Limited (“Shihua Holdings 2”)	August 20, 2019	Cayman Islands	100	%	Investment holding
Shanghai Waigaoqiao Free Trade Zone Gaogang Technology Co., Ltd. (“Waigaoqiao Technology”) ^(1)/(4)	August 20, 2019	PRC	100	%	Provision of internet data center services
Tongyun Internet (Beijing) Cloud Computing Technology Co., Ltd.(“Tongyun BJ”)	January 19, 2020	PRC	100	%	Provision of internet data center services
Shanghai Edge Connect Technology Co., Ltd. (“SH Edge Connect”) ⁽¹⁾	November 3, 2020	PRC	100	%	Provision of technical and internet data center services
Beijing Jianghe Cloud Technology Co., Ltd. (“BJ JHC”) ⁽¹⁾	November 17, 2020	PRC	100	%	Provision of internet data center services
Beijing Shuntou Green Energy Data Technology Co., Ltd. (“BJ ST”) ⁽¹⁾	November 17, 2020	PRC	100	%	Provision of internet data center services
Jiwa Senlin (Beijing) Engineering Co., Ltd.(“Jiwa Engineering BJ”)⁽¹⁾	April 8, 2021	PRC	100	%	Provision of internet data center services
Beijing TenxCloud Technology Co., Ltd. (“BJ TenxCloud”) ^(1)/(3)	July 15, 2021	PRC	100	%	Provision of digitalization solution services
Zhongke Zijing Technology Co., Ltd. (“Zhongke Zijing”) ^(1)/(14)	August 16, 2021	PRC	100	%	Provision of technical and consultation services
Gu’an Junhui Network Technology Co., Ltd. (“Gu’an Junhui”) ^(1)/(4)	August 16, 2021	PRC	100	%	Provision of internet data center services
Beijing Jianghe Shuzhi Technology Co., Ltd.(“BJ Jianghe Shuzhi”) ^(1)/(7)	August 1, 2022	PRC	100	%	Provision of internet data center services
Jianghe Chuangke (Beijing) Technology Co., Ltd.(“Jianghe Chuangke”)^(1)/(7)	August 1, 2022	PRC	100	%	Provision of internet data center services
Beijing Jianghe Cloud Industrial Internet Technology Co., Ltd.(“Jianghe Industrial”)^(1)/(7)	August 1, 2022	PRC	100	%	Provision of internet data center services
Beijing Xunneng Digital Industry Empowerment Center Co., Ltd.(“BJ Xunneng”)^(1)/(7)	August 1, 2022	PRC	100	%	Provision of internet data center services

1. ORGANIZATION (CONTINUED)

Entity	Date of incorporation/ acquisition	Place of incorporation	Percentage of direct ownership by the Company		Principal activities

Variable Interest Entities (the “VIEs”):
Beijing Yiyun Network Technology Co., Ltd. (“VNET Technology”) ⁽²⁾	October 22, 2002	PRC	—		Provision of internet data center services
Beijing iJoy Information Technology Co., Ltd. (“BJ iJoy”) ⁽²⁾	April 30, 2013	PRC	—		Provision of internet data center, content delivery network services
WiFire Network Technology (Beijing) Co., Ltd. (“WiFire Network”) ⁽²⁾	April 1, 2014	PRC	—		Provision of telecommunication services
Shanghai Zhiyan Yunwei Technology Co., Ltd. (“SH Zhiyan”) ⁽²⁾	December 12, 2020	PRC	—		Provision of telecommunication services

Held directly by VNET Technology:
Beijing VNET Broad Band Data Center Co., Ltd. (“VNET Beijing”) ⁽²⁾	March 15, 2006	PRC	—		Provision of internet data center services
Shanghai Shilian Technology Co., Ltd. (“SH Shilian”)	October 22, 2012	PRC	—		Provision of internet data center services
Beijing VNET Technology Co., Ltd.(“VNET BJ”)	April 1, 2021	PRC	—		Provision of internet data center services

Held directly by VNET Beijing:
VNET (Xi’an) Information Outsourcing Industry Park Services Co., Ltd. (“Xi’an Sub”) ⁽²⁾	June 23, 2008	PRC	—		Provision of internet data center services
Langfang Xunchi Computer Data Processing Co., Ltd. (“LF Xunchi”) ⁽²⁾	December 19, 2011	PRC	—		Dormant company
Beijing Yilong Xinda Technology Co., Ltd. (“Yilong Xinda”) ⁽²⁾	February 28, 2013	PRC	—		Provision of internet data center services
Beijing Yichengtaihe Investment Co., Ltd. (“BJ Yichengtaihe”) ⁽²⁾	September 30, 2014	PRC	—		Provision of internet data center services
Guangzhou Lianyun Big Data Co., Ltd. (“GZ Lianyun”) ⁽²⁾	April 14, 2016	PRC	—		Provision of internet data center services
Beijing Xianghu Yunlian Technology Co., Ltd. (“Xianghu Yunlian”) ⁽²⁾	November 7, 2018	PRC	—		Provision of internet data center services
Shanghai Hujiang Songlian Technology Co., Ltd.(“Hujiang Songlian”) ⁽²⁾	December 17, 2018	PRC	—		Provision of internet data center services
Beijing Shuhai Hulian Technology Co., Ltd. (“BJ Shuhai”) ⁽²⁾	January 2, 2019	PRC	—		Provision of internet data center services
Nantong Chenghong Cloud Computing Co., Ltd. (“NT Chenghong”) ⁽²⁾	December 24, 2019	PRC	—		Provision of internet data center services

Held directly by SH Shilian:
Shanghai Shuzhong Investment Management Co., Ltd. (“SH Shuzhong”) ⁽²⁾	June 30, 2020	PRC	—		Provision of internet data center services
Sanhe Shulifang Information Technology Co., Ltd. (“Shulifang”) ⁽²⁾	July 21, 2020	PRC	—		Provision of internet data center services
Langfang Huahai Internet Technology Co., Ltd. (“LF Huahai”) ⁽²⁾	September 11, 2020	PRC	—		Provision of internet data center services
Shanghai Hesheng Data System Co., Ltd. (“SH Hesheng”) ^(2)/(5)	November 11, 2021	PRC	—		Provision of internet data center services
Hebei Ketai Internet Technology Co., Ltd.(“HB Ketai”)	September 26, 2022	PRC	—		Provision of internet data center services

Held directly by VNET BJ:
WLCB Century Cloud Data Technology Co., Ltd.(“WLCB Century Cloud”)	April 1, 2021	PRC	—		Provision of internet data center services

Held directly by SH Zhiyan:
Shanghai Blue Cloud Technology Co., Ltd. (“SH Blue Cloud”) ⁽²⁾	March 21, 2013	PRC	—		Provision of Office 365 and Windows Azure platform services
Shanghai Edge Blue Cloud Network Technology Co., Ltd. (“SH Edge Network”) ^(2)/(6)	January 7, 2021	PRC	—		Provision of internet data center services

Held directly by DYX and LF Xunchi:
Shenzhen Diyixian Telecommunication Co., Ltd. (“SZ DYX”) ⁽¹⁾	August 10, 2014	PRC	20	%	Provision of virtual private network services

(1)	Collectively, the “PRC Subsidiaries”.

(2)	Collectively, the “Consolidated VIEs”.

(3)	On July 15, 2021, the Company through its subsidiary, Shenzhen Cloud Native Technology Co., Ltd. (“SZ Cloud Native”), acquired 100% equity interest of BJ TenxCloud.

(4)	On August 16, 2021, the Company through its subsidiary, Jiwa Engineering BJ, acquired 100% equity interest of Zhongke Zijing and Gu’an Junhui.

(5)	On November 11, 2021, the Company through its subsidiary, SH Shilian, acquired 100% equity interest of SH Hesheng.

(6)	On January 7, 2021, the Company, through SH Zhiyan, established SH Edge Network for internet data center services.

(7)	On August 1, 2022, the Company through its subsidiary, VNET Saturn and YF WFOE, acquired 100% equity interest of BJ Jianghe Shuzhi, Jianghe Chuangke, Jianghe Industrial and BJ Xunneng (Note 4).

1. ORGANIZATION (CONTINUED)

(b)

PRC laws and regulations prohibit foreign ownership of internet and telecommunications-related businesses. To comply with these foreign ownership restrictions, the Company conducts its businesses in the PRC through its VIEs using contractual agreements (the “VIE Agreements”). The Company controls four significant VIEs, namely VNET Technology, BJ iJoy, WiFire Network and SH Zhiyan as of December 31, 2023. The key terms of the VIE Agreements in relation to BJ iJoy, WiFire Network and SH Zhiyan are substantially similar to VNET Technology, except for the terms separately disclosed as below.

The equity interests of VNET Technology are legally held by certain PRC individuals, including Mr. Sheng Chen, the Executive Chairman of Board of Directors of the Company and Zhang Jun (collectively the “Nominee Shareholders”). The following is a summary of the key terms of the VIE Agreements of VNET Technology:

Exclusive option agreement

Pursuant to the exclusive option agreement entered into amongst VNET China and the Nominee Shareholders of VNET Technology, the Nominee Shareholders granted the Company or its designated party, an exclusive irrevocable option to purchase all or part of the equity interests held by the Nominee Shareholders in VNET Technology, when and to the extent permitted under the PRC laws, at an amount equal to RMB1. VNET Technology cannot declare any profit distributions or grant loans in any form without the prior written consent of VNET China. The Nominee Shareholders must remit in full any funds received from VNET Technology to VNET China, in the event any distributions are made by VNET Technology. The term of this agreement is 10 years, expiring on December 18, 2016, which is renewable at the sole discretion of VNET China. On December 19, 2016, this agreement was renewed for another 10 years, expiring on December 18, 2026.

SH Zhiyan has substantially similar exclusive option agreement except that the term of SH Zhiyan will terminate when SH Edge Connect, the primary beneficiary, purchases all of SH Zhiyan’s equity interest held by the Nominee Shareholder, Shanghai Rongyan Yunqi Technology Co., Ltd. (“SH Rongyan”).

Exclusive technical consulting and service agreement

Pursuant to the exclusive technical consulting and service agreement entered into between VNET China and VNET Technology, VNET China is to provide exclusive management consulting services and internet technical services in return for fees based on of a predetermined hourly rate of RMB1, which is adjustable at the sole discretion of VNET China. The term of this agreement is 10 years, expiring on December 18, 2016, which is renewable at the sole discretion of VNET China. On December 19, 2016, this agreement was renewed for another 10 years, expiring on December 18, 2026.

SH Zhiyan has substantially similar exclusive technical consulting and service agreement except that the term for SH Zhiyan would be in effect for an unlimited term unless terminated in writing by SH Edge Connect, the primary beneficiary of VIE SH Zhiyan.

Loan agreement

In January 2011, VNET China and the Nominee Shareholders entered into a loan agreement. Pursuant to the agreement, VNET China has provided interest-free loan facilities of RMB7,000 and RMB3,000, respectively, to the Nominee Shareholders of VNET Technology for the purpose of providing capital to VNET Technology to develop its data center and telecommunications value-added business and related businesses. There is no fixed term for the loan.

The Nominee Shareholders of SH Zhiyan did not enter into any loan agreement to fund the capital injected in SH Zhiyan.

1. ORGANIZATION (CONTINUED)

Power of attorney agreement

The Nominee Shareholders entered into the power of attorney agreement whereby they granted an irrevocable proxy of the voting rights underlying their respective equity interests in VNET Technology to VNET China, which includes, but are not limited to, all the shareholders’ rights and voting rights empowered to the Nominee Shareholders by the company law and VNET Technology’s Articles of Association. The power of attorney remains valid and irrevocable from the date of execution, so long as each Nominee Shareholder remains as a shareholder of VNET Technology.

The power of attorney agreement in relation to VNET Technology was reassigned to VNET Group, Inc. in September 2010.

Share pledge agreement

Pursuant to the share pledge agreement entered into amongst VNET China, VNET Technology and the Nominee Shareholders, the Nominee Shareholders have contemporaneously pledged all their equity interests in VNET Technology to guarantee the repayment of the loan under the Loan Agreement between VNET China and the Nominee Shareholders. On August 10, 2015, a Notification of Cancellation of share pledge registration was issued by Beijing Administration for Industry and Commerce, Pinggu Branch to cancel the registration of the share pledge by one of the Nominee Shareholders of VNET Technology, Zhang Jun. Such cancellation does not affect the effectiveness of the share pledge agreement and does not lessen the control imposed on the contractual parties of the Company.

If VNET Technology breaches its respective contractual obligations under the Share pledge agreement and the loan agreement, VNET China, as pledgee, will be entitled to certain rights, including the right to sell the pledged equity interests. The Nominee Shareholders agreed not to transfer, sell, pledge, dispose of or otherwise create any new encumbrance on their equity interests in VNET Technology without the prior written consent of VNET China.

SH Zhiyan has substantially similar term the Nominee Shareholders of SH Zhiyan did not enter into any loan agreement to fund the capital injected in SH Zhiyan as mentioned above.

Financial support letter

Pursuant to the financial support letter, VNET Group, Inc. agreed to provide unlimited financial support to VNET Technology for its operations and agreed to forego the right to seek repayment in the event VNET Technology is unable to repay such funding.

SH Zhiyan has substantially similar term except that SH Edge Connect provides unlimited financial support to SH Zhiyan for its operations.

Despite the lack of technical majority ownership, there exists a parent-subsidiary relationship between the Company and VNET Technology through the irrevocable power of attorney agreement, whereby the Nominee Shareholders effectively assigned all of their voting rights underlying their equity interests in VNET Technology to the Company. In addition, the Company, through VNET China, obtained effective control over VNET Technology through the ability to exercise all the rights of VNET Technology’s shareholders pursuant to the share pledge agreement and exclusive option agreement. The Company demonstrates its ability and intention to continue to exercise the ability to absorb substantially all of the expected losses through the financial support letter. In addition, the Company also demonstrates its ability to receive substantially all of the economic benefits of VNET Technology through VNET China through the consulting and service agreement. Thus, the Company is the primary beneficiary of VNET Technology and consolidates VNET Technology and its subsidiaries under Accounting Standards Codification (“ASC”) Subtopic 810-10, Consolidation: Overall (“ASC 810-10”). Similar conclusion has been reached with respect to the VIE structures with the Company or the Company’s subsidiaries, as the respective primary beneficiaries for other VIEs, i.e., BJ iJoy, WiFire Network and SH Zhiyan.

1. ORGANIZATION (CONTINUED)

Financial support letter (continued)

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, the interpretation and application of current PRC laws and regulations are evolving and new laws and regulations may become effective from time to time in the future. 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 of control 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 RMB619,738 that were pledged to secure borrowings granted to the Company, there were no pledges or collateralization of the Consolidated VIEs’ assets as of December 31, 2023. Creditors of the Consolidated VIEs have no recourse to the general credit of the primary beneficiaries of the Consolidated VIEs, and such amounts have been parenthetically presented on the face of the consolidated balance sheets. The Consolidated VIEs operate the data centers and own facilities including data center buildings, leasehold improvements, fiber optic cables, computers and network equipment, which are recognized in the Company’s consolidated financial statements. They also hold certain value-added technology licenses, registered copyrights, trademarks and registered domain names, including the official website, which are also considered as revenue-producing assets. However, none of such assets was recorded on the Company’s consolidated balance sheets as such assets were all acquired or internally developed with insignificant cost and expensed as incurred. In addition, the Company also hires data center operation and marketing workforce for its daily operations and such costs are expensed when incurred. The Company has not provided any financial or other support that it was not previously contractually required to provide to the Consolidated VIEs during the periods presented.

1. ORGANIZATION (CONTINUED)


	As of December 31,
	2022	2023
	RMB	RMB
ASSETS
Current assets:
Cash and cash equivalents	1,428,768	923,692
Restricted cash	301,825	434,421
Accounts receivable (net of allowance for doubtful debt of RMB100,797 and RMB161,837 as of December 31, 2022 and 2023 respectively)	1,400,546	1,412,456
Prepaid expenses and other current assets	1,976,164	2,081,948
Amounts due from related parties	13,942	58,823
Total current assets	5,121,245	4,911,340
Non-current assets:
Property and equipment, net	7,495,362	7,398,768
Intangible assets, net	475,652	453,606
Land use rights, net	44,233	56,971
Operating lease right-of-use assets, net	3,452,533	3,948,272
Goodwill	332,645	—
Restricted cash	—	382
Deferred tax assets, net	153,676	208,266
Other non-current assets	165,570	148,383
Long-term investments, net	82,744	168,377
Total non-current assets	12,202,415	12,383,025
Total assets	17,323,660	17,294,365
Current liabilities:
Short-term bank borrowings	—	30,000
Accounts and notes payable	483,030	493,837
Accrued expenses and other payables	1,488,031	1,616,423
Advances from customers	1,157,963	1,605,247
Deferred revenue	84,775	83,546
Income taxes payable	25,188	13,531
Amounts due to inter-companies, net ⁽¹⁾	6,071,651	4,736,035
Amounts due to related parties	6,928	356,080
Current portion of finance lease liabilities	165,221	97,388
Current portion of long-term borrowings	417,442	544,803
Current portion of deferred government grants	3,646	8,062
Current portion of operating lease liabilities	655,663	754,935
Total current liabilities	10,559,538	10,339,887

1. ORGANIZATION (CONTINUED)


	As of December 31,
	2022	2023
	RMB	RMB
Non-current liabilities:
Amounts due to inter-companies, net ⁽¹⁾	1,020,972	1,020,972
Long-term borrowings	1,861,545	2,464,811
Non-current portion of finance lease liabilities	615,309	720,954
Unrecognized tax benefits	86,799	98,082
Deferred tax liabilities	149,475	139,174
Deferred government grants	2,726	11,862
Non-current portion of operating lease liabilities	2,872,323	3,230,506
Total non-current liabilities	6,609,149	7,686,361
Total liabilities	17,168,687	18,026,248


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Net revenues	5,145,110	5,944,519	6,418,125
Net income (loss)	92,594	(66,764)	(999,101)


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Net cash generated from operating activities	866,712	1,351,179	1,418,796
Net cash used in investing activities	(2,695,707)	(1,849,339)	(1,431,085)
Net cash generated from (used in) financing activities	1,788,528	1,243,495	(359,809)
Net (decrease) increase in cash and cash equivalents and restricted cash	(40,467)	745,335	(372,098)

(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.

LEASES - Additional information (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
Cash paid for amounts included in the measurement of lease liabilities:
Current portion of operating lease liabilities of the Consolidated VIEs without recourse to the primary beneficiaries	¥ 780,164	$ 109,884	¥ 674,288
Non-current portion of operating lease liabilities of the Consolidated VIEs without resource to the primary beneficiaries	3,270,759	460,677	2,905,283
Current portion of finance lease liabilities	115,806	16,311	206,260
Non-current portion of finance lease liabilities	¥ 1,159,525	$ 163,316	¥ 1,047,640

PROPERTY AND EQUIPMENT, NET - Property and equipment pledged to secure banking borrowings (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
PROPERTY AND EQUIPMENT, NET
Assets	¥ 30,385,903	$ 4,279,765	¥ 26,948,405
Property
PROPERTY AND EQUIPMENT, NET
Assets	155,239		118,050
Leasehold improvements
PROPERTY AND EQUIPMENT, NET
Assets	246,662		92,629
Computer and network equipment
PROPERTY AND EQUIPMENT, NET
Assets	442,167		137,876
Office equipment
PROPERTY AND EQUIPMENT, NET
Assets	¥ 1,829		¥ 919

- Definition

+ References

+ Details

SHARE-BASED COMPENSATION - Share compensation expense (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
SHARE-BASED COMPENSATION
Share-based compensation expense	¥ 35,296	$ 4,971	¥ 118,170	¥ 320,010
Cost of revenues
SHARE-BASED COMPENSATION
Share-based compensation expense			563	13,713
Sales and marketing expenses
SHARE-BASED COMPENSATION
Share-based compensation expense	3,141		17,794	2,545
General and administrative expenses
SHARE-BASED COMPENSATION
Share-based compensation expense	28,883		85,508	292,947
Research and development expenses
SHARE-BASED COMPENSATION
Share-based compensation expense	¥ 3,272		¥ 14,305	¥ 10,805

INTANGIBLE ASSETS, NET - Intangible assets (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
Weighted average useful lives of intangible assets
Intangible assets, cost	¥ 2,308,232		¥ 2,282,473
Accumulated Amortization	(867,754)		(744,083)
Impairment	(57,072)		(41,259)
Impairment	¥ (15,113)
Impairment Of Intangible Asset Finite Lived Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag	false
Intangible Assets, net	¥ 1,383,406	$ 194,849	1,497,131
Purchased software
Weighted average useful lives of intangible assets
Intangible assets, cost	233,513		207,565
Accumulated Amortization	(157,081)		(139,443)
Impairment	(802)
Intangible Assets, net	75,630		68,122
Radio Spectrum License
Weighted average useful lives of intangible assets
Intangible assets, cost	136,825		134,543
Accumulated Amortization	(87,145)		(83,294)
Impairment	(41,959)		(41,259)
Intangible Assets, net	7,721		9,990
Operating Permits
Weighted average useful lives of intangible assets
Intangible assets, cost	1,199,210		1,217,876
Accumulated Amortization	(89,226)		(56,433)
Intangible Assets, net	1,109,984		1,161,443
Technology Platform
Weighted average useful lives of intangible assets
Intangible assets, cost	38,050		38,050
Accumulated Amortization	(23,739)		(18,258)
Impairment	(14,311)
Intangible Assets, net			19,792
Customer relationships
Weighted average useful lives of intangible assets
Intangible assets, cost	257,183		257,183
Accumulated Amortization	(256,888)		(235,810)
Intangible Assets, net	295		21,373
Licenses
Weighted average useful lives of intangible assets
Intangible assets, cost	5,772		5,772
Accumulated Amortization	(3,812)		(3,428)
Intangible Assets, net	1,960		2,344
Supplier relationships
Weighted average useful lives of intangible assets
Intangible assets, cost	39,053		39,053
Accumulated Amortization	(37,299)		(34,281)
Intangible Assets, net	1,754		4,772
Trade names
Weighted average useful lives of intangible assets
Intangible assets, cost	116,266		116,266
Accumulated Amortization	(54,742)		(48,929)
Intangible Assets, net	61,524		67,337
Customer contract.
Weighted average useful lives of intangible assets
Intangible assets, cost	190,141		190,141
Accumulated Amortization	(89,002)		(68,622)
Intangible Assets, net	101,139		121,519
Non - Complete Agreement
Weighted average useful lives of intangible assets
Intangible assets, cost	1,800		1,800
Accumulated Amortization	(1,800)		(1,800)
Internal-use software
Weighted average useful lives of intangible assets
Intangible assets, cost	90,419		74,224
Accumulated Amortization	(67,020)		(53,785)
Intangible Assets, net	¥ 23,399		¥ 20,439

LONG-TERM INVESTMENTS, NET - Long term investments (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
LONG-TERM INVESTMENTS, NET
Equity investments without readily determinable fair values	¥ 19,821		¥ 17,137
Equity method investments	738,128		223,457
Available-for-sale debt investments			1,600
Long term investments	¥ 757,949	$ 106,755	¥ 242,194

CONVERTIBLE PROMISSORY NOTES (Details) $ / shares in Units, ¥ in Thousands		1 Months Ended			4 Months Ended	12 Months Ended
	Jan. 28, 2022 USD ($)	Feb. 29, 2024 USD ($)	Jun. 30, 2021 USD ($) D $ / shares	Jan. 31, 2021 USD ($)	Jun. 30, 2023	Dec. 31, 2023 CNY (¥) D shares	Dec. 31, 2023 USD ($) D shares	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2020 CNY (¥) shares	Dec. 31, 2020 USD ($) shares	Dec. 31, 2023 USD ($) $ / shares	Dec. 31, 2022 $ / shares	Oct. 31, 2019 $ / shares
CONVERTIBLE PROMISSORY NOTES
Changes In The Fair Value Of Convertible Promissory Notes						¥ 165,930	$ 23,371,000	¥ (22,626)	¥ (829,149)
Changes in the fair value of financial liabilities						¥ 165,930	23,371,000	(22,626)	(829,149)
Remaining amortization period for debt issuance cost						5 years						5 years
Derivative liability						¥ 188,706						$ 26,579,000
Convertible Notes Payable
CONVERTIBLE PROMISSORY NOTES
Issuance costs \| ¥						¥ 18,932
2025 Convertible Notes
CONVERTIBLE PROMISSORY NOTES
Cash consideration received											$ 200,000,000
Changes In The Fair Value Of Convertible Promissory Notes							21,816,000	22,626	829,149
Debt Instrument, Term										5 years	5 years
Interest rate (as a percent)						2.00%				2.00%		2.00%
Period of receipt of notices					3 months
Repaid principal amount							68,000,000
Redemption price, Percentage of principal amount redeemed					109.00%
Issuance costs \| ¥									0	¥ 2,939
Fair value of converted portion \| ¥									1,639,806	¥ 720,547
Fair value of notes \| ¥								537,778
Changes in the fair value of financial liabilities							$ 21,816,000	22,626	829,149
Coupon Interest expense \| ¥						¥ 4,471		9,147	9,703
2026 Convertible Notes
CONVERTIBLE PROMISSORY NOTES
Interest rate (as a percent)				0.00%
Repaid principal amount		$ 600,000,000
Amount on exercise of option				$ 75,000,000
Observation period			40 days
Redemption price, percentage of Principal amount						100.00%	100.00%
Proceeds from issuance of notes							$ 600,000,000
Debt Issuance costs												$ 13,841,000
Carrying amount of debt instrument \| ¥						¥ 4,208,495		4,119,048
Coupon Interest expense \| ¥						0		0	0
Amortization of debt discount and issuance costs \| ¥						¥ 19,499		¥ 18,525	¥ 16,216
Effective interest rate (as a percent)						0.47%		0.47%	0.47%			0.47%
Debt instrument, face amount				$ 600,000,000
2027 Convertible Promissory Notes
CONVERTIBLE PROMISSORY NOTES
Interest rate (as a percent)	2.00%					10.00%						10.00%
Conversion price (in dollars per share) \| $ / shares												$ 1.8333
Redemption price, percentage of Principal amount	50.00%
Proceeds from issuance of notes							$ 250,000,000
Debt Issuance costs												$ 162,000
Carrying amount of debt instrument \| ¥						¥ 1,769,946		¥ 1,740,211
Repayment of convertible notes	$ 1,000,000
Effective interest rate (as a percent)						2.02%		2.02%				2.02%
Debt instrument, face amount	$ 250,000,000
Debt Instrument, Convertible, Remaining Deferred Finance Costs, Amortization Period						5 years	5 years
Coupon interest expense \| ¥						¥ 35,234		¥ 30,498
Derivative liability \| ¥						¥ 188,706
Redemption upon maturity \| 2025 Convertible Notes
CONVERTIBLE PROMISSORY NOTES
Redemption price, Percentage of principal amount redeemed						115.00%	115.00%
Early redemption at the option of the Purchasers \| 2025 Convertible Notes
CONVERTIBLE PROMISSORY NOTES
Redemption price, percentage of Principal amount						109.00%	109.00%
Condition one \| 2026 Convertible Notes
CONVERTIBLE PROMISSORY NOTES
Percentage of conversion price			130.00%			130.00%	130.00%
Trading days \| D			20			20	20
Consecutive trading days period \| D			30			30	30
Condition Two \| 2026 Convertible Notes
CONVERTIBLE PROMISSORY NOTES
Trading days \| D			5
Consecutive trading days period \| D			10
Percentage of price to the last reported sale price			98.00%
American Depository Shares
CONVERTIBLE PROMISSORY NOTES
Conversion price (in dollars per share) \| $ / shares												$ 12		$ 54.47
Conversion Threshold (as percent)						200.00%	200.00%
American Depository Shares \| 2025 Convertible Notes
CONVERTIBLE PROMISSORY NOTES
Conversion price (in dollars per share) \| $ / shares												12
American Depository Shares \| 2026 Convertible Notes
CONVERTIBLE PROMISSORY NOTES
Conversion price (in dollars per share) \| $ / shares												18.3574
American Depository Shares \| 2027 Convertible Promissory Notes
CONVERTIBLE PROMISSORY NOTES
Conversion price (in dollars per share) \| $ / shares												11.00
Conversion Threshold (as percent)						200.00%	200.00%
Common Class A
CONVERTIBLE PROMISSORY NOTES
Number of shares issued upon conversion \| shares									42,401,010
Ordinary shares, par value (in dollars per share) \| $ / shares												$ 0.00001	$ 0.00001
Common Class A \| 2025 Convertible Notes
CONVERTIBLE PROMISSORY NOTES
Number of shares issued upon conversion \| shares						0	0	0	42,401,010	23,710,140	23,710,140
Common Class A \| Condition one \| 2026 Convertible Notes
CONVERTIBLE PROMISSORY NOTES
Number of shares represents one ADS			6
Ordinary shares, par value (in dollars per share) \| $ / shares			$ 0.00001

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2023

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,
	2022	2023
	RMB	RMB
At cost:
Property	2,236,257	2,672,822
Leasehold improvements	4,819,257	5,821,394
Computer and network equipment	7,577,082	8,437,075
Optical fibers	142,723	142,723
Office equipment	87,093	93,543
Motor vehicles	4,098	3,937
	14,866,510	17,171,494
Less: Accumulated depreciation	(5,548,663)	(6,987,542)
	9,317,847	10,183,952
Construction-in-progress	2,770,348	3,444,237
Impairment	(123,697)	(603,796)
Property and equipment, net	11,964,498	13,024,393

See note 2 (p) for details of impairment of property and equipment.

Depreciation expense was RMB1,164,725, RMB1,462,550 and RMB1,663,932 for the years ended December 31, 2021, 2022 and 2023, respectively, and were included in the following captions:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Cost of revenues	1,107,655	1,386,800	1,573,970
Sales and marketing expenses	963	1,029	1,721
General and administrative expenses	23,186	35,715	38,280
Research and development expenses	32,921	39,006	49,961
	1,164,725	1,462,550	1,663,932

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,
	2022	2023
	RMB	RMB
Property	993,158	993,158
Computer and network equipment	971,814	648,989
Optical fibers	137,924	137,924
	2,102,896	1,780,071
Less: Accumulated depreciation	(847,449)	(709,209)
	1,255,447	1,070,862
Construction-in-progress	—	219,283
Impairment	(18,808)	(19,361)
	1,236,639	1,270,784

8. PROPERTY AND EQUIPMENT, NET (CONTINUED)

Depreciation of property, computer and network equipment and optical fibers under finance leases was RMB274,052, RMB224,140 and RMB199,926 for the years ended December 31, 2021, 2022 and 2023, respectively.

The carrying amounts of property and equipment pledged by the Company to secure borrowings (Note 14) granted to the Company at the respective balance sheet dates were as follows:


	As of December 31,
	2022	2023
	RMB	RMB
Property	118,050	155,239
Leasehold improvements	92,629	246,662
Computer and network equipment	137,876	442,167
Office equipment	919	1,829

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed balance sheets (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 2,243,537	$ 315,996	¥ 2,661,321	¥ 1,372,481
Short-term investments	356,820	50,257
Prepaid expenses and other current assets	2,375,341	334,560	2,147,500
Total current assets	9,823,478	1,383,608	7,052,276
Non-current assets:
Total non-current assets	20,562,425	2,896,157	19,896,129
Total assets	30,385,903	4,279,765	26,948,405
Current liabilities:
Accrued expenses and other payables	2,783,102	391,992	2,410,479
Total current liabilities	11,437,132	1,610,886	6,332,085
Non-current liabilities:
Convertible promissory notes	1,769,946	249,292	5,859,259
Derivative liability	188,706	26,579
Total non-current liabilities	12,434,388	1,751,348	13,634,464
Total liabilities	23,871,520	3,362,234	19,966,549
Shareholders' equity:
Additional paid-in capital	17,291,312	2,435,430	15,239,926
Accumulated other comprehensive income (loss)	(14,343)	(2,020)	11,022
Accumulated deficit	(11,016,323)	(1,551,617)	(8,369,868)
Treasury stock	(326,953)	(46,050)	(349,523)
Total VNET Group, Inc. shareholders' equity	6,014,415	847,112	6,609,613
Total liabilities and shareholders' equity	30,385,903	4,279,765	26,948,405
Related Party [Member]
Current assets:
Amounts due from related parties	277,237	39,048	152,089
Current liabilities:
Amounts due to related parties	356,080	50,153	6,928
Parent Company
Current assets:
Cash and cash equivalents	30		7,661
Prepaid expenses and other current assets	192,953		99,962
Total current assets	13,545,223		12,506,876
Non-current assets:
Investments in subsidiaries			1,484,730
Total non-current assets			1,484,730
Total assets	13,545,223		13,991,606
Current liabilities:
Accrued expenses and other payables	137,826		88,225
Account payables	57		56
Convertible promissory notes	4,208,495		537,778
Total current liabilities	5,572,156		1,522,734
Non-current liabilities:
Convertible promissory notes	1,769,946		5,859,259
Derivative liability	188,706
Total non-current liabilities	1,958,652		5,859,259
Total liabilities	7,530,808		7,381,993
Shareholders' equity:
Additional paid-in capital	17,291,312		15,239,926
Accumulated other comprehensive income (loss)	(14,343)		11,022
Accumulated deficit	(10,935,708)		(8,291,872)
Treasury stock	(326,953)		(349,523)
Total VNET Group, Inc. shareholders' equity	6,014,415		6,609,613
Total liabilities and shareholders' equity	13,545,223		13,991,606
Parent Company \| Affiliated Entity [Member]
Current assets:
Amounts due from related parties	13,352,240		12,399,253
Current liabilities:
Amounts due to related parties	1,225,778		896,675
Class A Ordinary Shares
Shareholders' equity:
Ordinary shares	103	14	56
Class A Ordinary Shares \| Parent Company
Shareholders' equity:
Ordinary shares	103		56
Class B Ordinary Shares
Shareholders' equity:
Ordinary shares	4	$ 1	4
Class B Ordinary Shares \| Parent Company
Shareholders' equity:
Ordinary shares	4		4
Class C Ordinary Shares \| Parent Company
Shareholders' equity:
Ordinary shares

OTHER NON-CURRENT ASSETS (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
OTHER NON-CURRENT ASSETS (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2023	Dec. 31, 2022
OTHER NON-CURRENT ASSETS
Prepayment of other non-current assets included acquisition and purchase of property and equipment	¥ 293,500	¥ 293,500
Percentage of prepayments on other non-current assets	55.00%	53.00%

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) ¥ in Thousands	Dec. 31, 2023 CNY (¥)
COMMITMENTS AND CONTINGENCIES.
Accrual for unrecognized tax benefits and interest	¥ 98,457
Accrued liability for legal contingencies	¥ 0

ACCRUED EXPENSES AND OTHER PAYABLES

12 Months Ended

Dec. 31, 2023

ACCRUED EXPENSES AND OTHER PAYABLES

ACCRUED EXPENSES AND OTHER PAYABLES

15. ACCRUED EXPENSES AND OTHER PAYABLES

The components of accrued expenses and other payables were as follows:


	As of December 31,
	2022	2023
	RMB	RMB
Payables for purchase of property, equipment and software	1,280,742	1,431,547
Payroll and welfare payables	433,376	477,367
Consideration due to the original shareholders of BJ TenxCloud ⁽¹⁾	229,323	229,323
Liability classified share-based payments ⁽¹⁾	131,116	149,612
Accrued service fees	66,494	126,001
Payables for office supplies and utilities	69,288	105,871
Payables for acquisitions and long-term investments	47,805	99,340
Value-added tax and other taxes payable	31,706	35,391
Interest payables	35,785	77,168
Others	84,844	51,482
	2,410,479	2,783,102

(1)	On July 15, 2021, the Company acquired 100% of the equity interests in BJ TenxCloud from third party selling shareholders. The balance of consideration due to original shareholders represented the amounts the selling shareholders claimed according to the acquisition agreement.

In addition, the Company is obligated to issue various numbers of the shares of the Company or its subsidiary to certain selling shareholders who will remain as the employees of BJ TenxCloud, determinable based on achievements of the financial and operational targets by BJ TenxCloud during various post-acquisition periods. As such share-base payments will be forfeited if these employees cease their employments with the Company, the Company recognized these payments as compensation costs over the requisite service periods. The Company classified the share-based payments as liability classified share-based payments.

SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2023

SHARE-BASED COMPENSATION.

Schedule of employee share option activity under the 2010 Plan


			Weighted
		Weighted	average
		average	remaining	Aggregate
	Number of	exercise	contractual	intrinsic
	options	price	term	value
		(US$)	(Years)	(US$)
Outstanding, January 1, 2023	359,202	0.17	1.96	—
Exercised	—	—	—	—
Outstanding, December 31, 2023	359,202	0.17	1.00	114
Vested as of December 31, 2023	359,202	0.17	1.00	114
Exercisable as of December 31, 2023	359,202	0.17	1.00	114

Schedule of RSUs activity under the 2014 Plan


		Weighted	Weighted
		average	average	Aggregate
	Number of	grant date	remaining	intrinsic
	RSUs	fair value	contractual life	value
		(US$)	(Years)	(US$)
Unvested, January 1, 2023	1,700,864	11.28	6.1	—
Granted	1,388,777	2.96	—	—
Vested	(507,282)	5.04	—	—
Forfeited	(2,553)	13.26	—	—
Unvested, December 31, 2023	2,579,806	8.07	6.6	7,404

Schedule of total share-based compensation expenses relating to share options and RSUs granted to employees


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Cost of revenues	13,713	563	—
Sales and marketing expenses	2,545	17,794	3,141
General and administrative expenses	292,947	85,508	28,883
Research and development expenses	10,805	14,305	3,272
	320,010	118,170	35,296

ORGANIZATION - Financial information of the consolidated VIEs (Parenthetical) (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity
Accounts receivable, allowance for doubtful accounts	¥ 161,837	¥ 100,797

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

DEFERRED GOVERNMENT GRANTS - Movements of Deferred Grants (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
DEFERRED GOVERNMENT GRANTS.
Balance at beginning of the year	¥ 6,318	¥ 4,368	¥ 6,174
Additions	155,333	5,000
Recognized as a reduction of depreciation expense	(8,477)	(3,050)	(1,806)
Balance at end of the year	¥ 153,174	¥ 6,318	¥ 4,368

SHORT-TERM INVESTMENTS (Details) - Dec. 31, 2023 ¥ in Thousands, $ in Thousands	CNY (¥)	USD ($)
SHORT-TERM INVESTMENTS.
Aggregate cost basis	¥ 354,149
Gross unrealized holding gain	2,671
Aggregate fair value	¥ 356,820	$ 50,257

ACQUISITION OF SUBSIDIARIES

12 Months Ended

Dec. 31, 2023

ACQUISITION OF SUBSIDIARIES

ACQUISITION OF SUBSIDIARIES

4. ACQUISITION OF SUBSIDIARIES

Acquisitions in 2023

Sanhe Mingtai Digital Industrial Park Co., Ltd. (“Sanhe Digital”)

In March 2023, the Company through one of its Consolidated VIEs, Langfang Huahai Network Technology Co., Ltd. (“Langfang Huahai”), acqcuired 100% equity interest in Sanhe Ditital by issuance of 22.5% equity interest (share consideration) of Langfang Huahai. The share consideration is referenced to the fair value of the identifiable assets acquired and liabilities assumed. The purpose of the transaction is to acquire the property and land use rights for data center. As Sanhe Digital does not possess all the elements that are necessary to conduct normal operations as a business, such acquisition is accounted for as an acquisition of assets. Sanhe Digital was subsequently merged into Langfang Huahai in December 2023.

The carrying amount of the net identifiable assets of Sanhe Digital were as follows:


		RMB
Net assets acquired:
Current assets		3
Property and equipment, net		105,538
Land use rights, net		14,258
Deferred tax assets		2,232
Accrued expenses and other payables		(2,277)
Deferred tax liabilities		(2,758)
Total share consideration		116,996

Acquisitions in 2022

Kunshan Kunhui Network Co., Ltd. (“KS Kunhui”)

On August 5, 2022, as part of its business strategy to expand the existing hosting service, the Company through its subsidiary, Beijing FengFu Technology Co., Ltd., acquired 100% of the equity interests in KS Kunhui, which primarily provides internet data center service, for a total cash consideration of RMB50,000. As KS Kunhui is in operations and possess all the elements that are necessary to conduct normal operations as a business, such acquisition is accounted for as business combination.

4. ACQUISITION OF SUBSIDIARIES (CONTINUED)

Acquisitions in 2022 (continued)

The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the date of acquisition:


		RMB
Cash and cash equivalents		9,014
Property and equipment, net		92,157
Operating lease right-of-use assets, net		199,255
Operating permits (Note 9)		29,000
Customer contract (Note 9)		59,500
Deferred tax assets		13,921
Other current assets		289,480
Total assets acquired		692,327
Other current liabilities		(436,124)
Operating lease liabilities		(208,612)
Deferred tax liabilities		(22,125)
Total liabilities assumed		(666,861)
Net assets acquired		25,466
Purchase consideration		50,000
Goodwill		24,534

The revenue and net loss of KS Kunhui since the acquisition date included in the consolidated statement of operations for the year ended December 31, 2022 were nil and RMB24,757, respectively. The goodwill, which is not tax deductible, is primarily attributable to synergies expected to be achieved from the acquisition.

The pro forma results of revenue and earnings of the acquiree as if the combinations occurred as of the beginning of the comparable prior annual reporting period of the acquiree were not presented because the effects of the business combination was not significant to the Company’s consolidated results of operations.

BJ Jianghe Shuzhi, Jianghe Chuangke, Jianghe Industrial and BJ Xunneng (collectively “BJ JiangHeCloud”)

On August 1, 2022, the Company through its subsidiaries, YF WOFE and 21Vianet Saturn, acquired 100% equity interests in BJ JiangHeCloud at a total cash consideration of RMB847,438. Among the consideration, RMB57,500 is refundable if relevant condition set out in the agreements is not achieved. The purpose of the transaction is to establish several new data centers. As BJ JiangHeCloud 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, 2023, as the relevant condition was not met, the RMB57,500 refundable prepayment was included in other non-current assets.

The carrying amount of the net identifiable assets of BJ JiangHeCloud were as follows:


		RMB
Net assets acquired:
Cash and cash equivalents		3,325
Other current assets		3,959
Property and equipment, net		306,546
Operating permits (Note 9)		479,989
Land use rights, net (Note 10)		221,556
Other current liabilities		(15,448)
Deferred tax liabilities		(209,989)
Total consideration in cash		789,938

SHORT-TERM INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2023

SHORT-TERM INVESTMENTS.

Schedule of short-term investments

Short-term investments consisted of the following as of December 31, 2023:


		As of December 31,
		2023
		RMB
Aggregate cost basis		354,149
Gross unrealized holding gain		2,671
Aggregate fair value		356,820

TAXATION (Tables)

12 Months Ended

Dec. 31, 2023

TAXATION

Schedule of loss before income taxes


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Non-PRC	675,369	(421,597)	(331,586)
PRC	(48,861)	(206,933)	(2,151,209)
	626,508	(628,530)	(2,482,795)

Schedule of income tax expenses


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Current	(111,082)	(115,577)	(157,526)
Deferred	(325)	(17,887)	43,152
	(111,407)	(133,464)	(114,374)

Schedule of reconciliation of tax computed by applying the statutory income tax rate

The reconciliation of tax computed by applying the statutory income tax rate of 25% for the years ended December 31, 2021, 2022 and 2023 applicable to the PRC operations to income tax expenses were as follows:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Income (loss) before income taxes	626,508	(628,530)	(2,482,795)
Income tax (expenses) benefits computed at applicable tax rates (25%)	(156,627)	157,133	620,699
Non-deductible expenses	(13,116)	(72,156)	(700)
Research and development expenses	45,122	67,789	65,863
Preferential rate	14,232	(6,163)	(6,140)
Current and deferred tax rate differences	26,115	15,847	11,036
International rate differences	120,678	(75,119)	(101,585)
Tax exempted income	14,536	249	2,803
Foreign investment	(49,815)	(39,224)	(53,617)
Unrecognized tax benefits	(12,338)	(13,674)	(11,283)
Change in valuation allowance	(79,733)	(135,732)	(606,071)
Prior year provision to return true up	(22,898)	(28,949)	(34,759)
Others	2,437	(3,465)	(620)
Income tax expenses	(111,407)	(133,464)	(114,374)

Schedule of significant components of deferred taxes


	As of December 31,
	2022	2023
	RMB	RMB
Deferred tax assets
Allowance for doubtful debt	52,658	125,500
Impairment of long-lived assets	40,784	166,576
Impairment of long-term investments	3,024	4,866
Accrued expense	22,108	39,896
Tax losses	358,454	849,672
Property and equipment	38,365	2,919
Intangible assets	7,142	9,432
Finance lease	372,997	386,327
Deferred government grant	1,714	3,357
Operating lease	768,638	949,362
Loss picked up on equity method investments	69,440	10,558
Valuation allowance	(397,457)	(955,738)

Total deferred tax assets, net of valuation allowance	1,337,867	1,592,727

Deferred tax liabilities
Intangible assets	266,922	405,964
Property and equipment	360,989	172,095
Capitalized interest expense	39,606	49,544
Finance lease	289,586	296,789
Operating lease	768,638	949,362
Investment in subsidiaries	98,608	159,691

Total non-current deferred tax liabilities	1,824,349	2,033,445

Net deferred tax liabilities	(486,482)	(440,718)
Analysis as:
Deferred tax assets	196,098	247,644
Deferred tax liabilities	682,580	688,362

Net deferred tax liabilities	(486,482)	(440,718)


	For the years ended December 31,
	2022	2023
	RMB	RMB
Balance at beginning of year	261,960	397,457
Addition	135,732	606,071
Expiration	(235)	(47,790)
Balance at end of year	397,457	955,738

Schedule of roll-forward of unrecognized tax benefits


	For the years ended December 31,
	2022	2023
	RMB	RMB
Balance at beginning of year	64,854	64,528
Reversal based on tax positions related to prior years	(418)	—
Additions based on tax positions related to the current year	92	—
Balance at end of year	64,528	64,528

TAXATION - Additional Information (Details) ¥ in Thousands, $ in Thousands		1 Months Ended					12 Months Ended
	Jan. 01, 2008	Dec. 31, 2019	Dec. 31, 2016	Nov. 30, 2016	Oct. 31, 2015	Apr. 30, 2011	Dec. 31, 2023 CNY (¥)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2019	Dec. 31, 2018 USD ($)	Dec. 31, 2008	Dec. 31, 2023 USD ($)
TAXATION
Unified enterprise income tax rate	25.00%
Undistributed earnings from its PRC subsidiaries							¥ 1,803,272
Withholding tax liability							159,691
Unrecognized tax benefits							98,457	¥ 87,174					$ 13,867
Unrecognized tax benefits impact in the effective rate							¥ 61,827
Beijing 21Vianet Broad Band Data Center Co., Ltd. ("21Vianet Beijing")
TAXATION
Income tax rate										15.00%
Preferential tax rate							15.00%	15.00%	15.00%			15.00%
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%
Shanghai Blue Cloud Technology Co., Ltd. ("SH Blue Cloud")
TAXATION
Preferential tax rate					15.00%		15.00%	15.00%	15.00%
Shenzhen Diyixian Telecommunication Co., Ltd. ("SZ DYX")
TAXATION
Preferential tax rate				15.00%			15.00%	15.00%	15.00%
Beijing TenxCloud Technology Co., Ltd. ("BJ TenxCloud")
TAXATION
Preferential tax rate			15.00%				15.00%	15.00%	15.00%
Shanghai Hesheng Data System Co., Ltd ("SH Hesheng")
TAXATION
Preferential tax rate		15.00%					25.00%	25.00%	15.00%
TAIWAN \| DYX Taiwan
TAXATION
Income tax rate							20.00%	20.00%	20.00%
PRC [Member]
TAXATION
Income tax rate on PRC tax resident enterprises							25.00%
Net tax operating losses from PRC subsidiaries (in RMB)							¥ 2,099,407
Interest expenses (in RMB)							11,283	¥ 9,874	¥ 6,606
Accumulated interest expenses (in RMB)							¥ 33,929	¥ 22,646
PRC [Member] \| Minimum
TAXATION
Net tax operating losses expiration year							2024
PRC [Member] \| Maximum
TAXATION
Net tax operating losses expiration year							2033
HONG KONG
TAXATION
Assessable profits \| $											$ 2,000
HONG KONG \| 21Vianet Hong Kong Entities [Member]
TAXATION
Income tax rate							16.50%	16.50%	16.50%
HONG KONG \| Scenario assessable profits earned Hk2 million
TAXATION
Income tax rate											8.25%
HONG KONG \| Scenario assessable profits remaining Hk2 million
TAXATION
Income tax rate											16.50%
Non-PRC
TAXATION
Withholding tax percent							10.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives of property and equipment (Details)	Dec. 31, 2023
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

PROPERTY AND EQUIPMENT, NET - Depreciation expense (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
PROPERTY AND EQUIPMENT, NET
Depreciation expense	¥ 1,663,932	¥ 1,462,550	¥ 1,164,725
Cost of revenues
PROPERTY AND EQUIPMENT, NET
Depreciation expense	1,573,970	1,386,800	1,107,655
Sales and marketing expenses
PROPERTY AND EQUIPMENT, NET
Depreciation expense	1,721	1,029	963
General and administrative expenses
PROPERTY AND EQUIPMENT, NET
Depreciation expense	38,280	35,715	23,186
Research and development expenses
PROPERTY AND EQUIPMENT, NET
Depreciation expense	¥ 49,961	¥ 39,006	¥ 32,921

LEASES - Total lease cost (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Finance lease cost:
Depreciation	¥ 199,926	¥ 224,140	¥ 274,052
Interest expenses	90,679	104,088	124,567
Operating lease cost	749,800	691,197	568,044
Total lease cost	¥ 1,040,405	¥ 1,019,425	¥ 966,663

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

12 Months Ended

Dec. 31, 2023

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

30. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

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 inASC 323-10, Investment-Equity Method and Joint Ventures, and such investment is presented on the balance sheets as “Investments in subsidiaries” and the share of the subsidiaries’ profit or loss is presented as “Share of 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.

30. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED)

Condesed balance sheets


	As of December 31,
	2022	2023
	RMB	RMB
ASSETS
Current assets:
Cash and cash equivalents	7,661	30
Prepaid expenses and other current assets	99,962	192,953
Amounts due from subsidiaries	12,399,253	13,352,240
Total current assets	12,506,876	13,545,223

Non-current assets:
Investments in subsidiaries	1,484,730	—
Total non-current assets	1,484,730	—
Total assets	13,991,606	13,545,223
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other payables	88,225	137,826
Account payables	56	57
Convertible promissory notes	537,778	4,208,495
Amounts due to subsidiaries	896,675	1,225,778
Total current liabilities	1,522,734	5,572,156

Non-current liabilities:
Convertible promissory notes	5,859,259	1,769,946
Derivative liability	—	188,706
Total non-current liabilities	5,859,259	1,958,652
Total liabilities	7,381,993	7,530,808
Shareholders’ equity:
Class A ordinary shares	56	103
Class B ordinary shares	4	4
Class C ordinary shares	—	—
Additional paid-in capital	15,239,926	17,291,312
Accumulated other comprehensive income (loss)	11,022	(14,343)
Accumulated deficit	(8,291,872)	(10,935,708)
Treasury stock	(349,523)	(326,953)
Total shareholders’ equity	6,609,613	6,014,415
Total liabilities and shareholders’ equity	13,991,606	13,545,223

30. PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (CONTINUED)

Conensed statements of operations


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Operating expenses
General and administrative expenses	(275,881)	(36,219)	(24,663)
Operating loss	(275,881)	(36,219)	(24,663)
Other loss	(119,932)	(247,083)	(94,452)
Changes in the fair value of financial liabilities	829,149	22,626	(165,930)
Share of profits (losses) from subsidiaries and Consolidated VIEs	66,762	(515,276)	(2,358,791)
Net income (loss)	500,098	(775,952)	(2,643,836)

Condensed statements of comprehensive income (loss)


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Net income (loss)	500,098	(775,952)	(2,643,836)
Other comprehensive (loss) income, net of tax of nil
Foreign currency translation adjustments, net of tax of nil	(34,908)	101,465	(25,365)
Other comprehensive (loss) income, net of tax of nil	(34,908)	101,465	(25,365)
Comprehensive income (loss)	465,190	(674,487)	(2,669,201)

Condensed statements of cash flows


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Net cash (used in) generated from operating activities	(218,664)	(14,927)	29,940
Net cash generated from (used in) investing activities	113,530	(1,670,058)	(37,571)
Net cash generated from financing activities	143,037	1,592,627	—
Net increase (decrease) in cash and cash equivalents	37,903	(92,358)	(7,631)
Cash and cash equivalents at beginning of the year	62,116	100,019	7,661
Cash and cash equivalents at end of the year	100,019	7,661	30

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Dec. 31, 2023

PROPERTY AND EQUIPMENT, NET

Schedule of property and equipment, including those held under finance leases


	As of December 31,
	2022	2023
	RMB	RMB
At cost:
Property	2,236,257	2,672,822
Leasehold improvements	4,819,257	5,821,394
Computer and network equipment	7,577,082	8,437,075
Optical fibers	142,723	142,723
Office equipment	87,093	93,543
Motor vehicles	4,098	3,937
	14,866,510	17,171,494
Less: Accumulated depreciation	(5,548,663)	(6,987,542)
	9,317,847	10,183,952
Construction-in-progress	2,770,348	3,444,237
Impairment	(123,697)	(603,796)
Property and equipment, net	11,964,498	13,024,393

Schedule of depreciation expense


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Cost of revenues	1,107,655	1,386,800	1,573,970
Sales and marketing expenses	963	1,029	1,721
General and administrative expenses	23,186	35,715	38,280
Research and development expenses	32,921	39,006	49,961
	1,164,725	1,462,550	1,663,932

Schedule of carrying amounts of the Company's property and equipment held under finance leases


	As of December 31,
	2022	2023
	RMB	RMB
Property	993,158	993,158
Computer and network equipment	971,814	648,989
Optical fibers	137,924	137,924
	2,102,896	1,780,071
Less: Accumulated depreciation	(847,449)	(709,209)
	1,255,447	1,070,862
Construction-in-progress	—	219,283
Impairment	(18,808)	(19,361)
	1,236,639	1,270,784

Schedule of carrying amounts of property and equipment pledged by the Company to secure banking borrowings


	As of December 31,
	2022	2023
	RMB	RMB
Property	118,050	155,239
Leasehold improvements	92,629	246,662
Computer and network equipment	137,876	442,167
Office equipment	919	1,829

EMPLOYEE CONTRIBUTION PLAN

12 Months Ended

Dec. 31, 2023

EMPLOYEE CONTRIBUTION PLAN

EMPLOYEE CONTRIBUTION PLAN

21. 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 RMB158,673, RMB191,914 and RMB208,556 for the years ended December 31, 2021, 2022 and 2023, respectively.

- Definition

The entire disclosure for multiemployer plan.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 80
-Name Accounting Standards Codification
-Section 55
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480547/715-80-55-8

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 80
-Name Accounting Standards Codification
-Section 50
-Paragraph 11
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480576/715-80-50-11

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 80
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480576/715-80-50-5

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 80
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Subparagraph (f)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480576/715-80-50-5

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 80
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480576/715-80-50-4

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 80
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//715-80/tableOfContent

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 80
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480576/715-80-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 80
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480576/715-80-50-7

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 80
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480576/715-80-50-7

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 80
-Name Accounting Standards Codification
-Section 50
-Paragraph 7
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480576/715-80-50-7

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 80
-Name Accounting Standards Codification
-Section 55
-Paragraph 7
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480547/715-80-55-7

+ Details

LAND USE RIGHTS, NET - Land use rights pledged (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2023	Dec. 31, 2022
LAND USE RIGHTS, NET.
Land use rights	¥ 196,195	¥ 115,895

LEASES

12 Months Ended

Dec. 31, 2023

LEASES

LEASES

16. LEASES

Leases are classified as operating leases or finance leases in accordance with ASC 842. The Company’s operating leases mainly related to building, office facilities and equipment and the rights to use the land in the PRC. For leases with terms greater than 12 months, the Company records the related asset and liability at the present value of lease payments over the term. Certain leases include rental escalation clauses, renewal options and/or termination options, which are factored into the Company’s determination of lease payments when appropriate.


	As of December 31,
	2022		2023
Weighted average remaining lease term:
Operating lease	10.7 years		9.7 years
Finance lease	18.9 years		18.7 years

Weighted average discount rate:
Operating lease	7.50	%	7.59	%
Finance lease	10.44	%	10.04	%

Lease cost for finance leases capitalized were immaterial for the years ended December 31, 2021, 2022 and 2023.


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Lease cost
Finance lease cost:
Depreciation	274,052	224,140	199,926
Interest expenses	124,567	104,088	90,679
Operating lease cost	568,044	691,197	749,800
Total lease cost	966,663	1,019,425	1,040,405

Short-term lease cost and variable lease cost for operating leases and finance leases were immaterial for the years ended December 31, 2021, 2022 and 2023.

Other information related to leases was as follows:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash payments for operating leases	593,615	635,615	796,541
Financing cash payments for finance leases	579,660	231,046	210,902

16. LEASES (CONTINUED)

Future lease payments under operating leases and finance leases as of December 31, 2023 were as follows:


	Operating Leases	Finance Leases
	RMB	RMB
2024	807,678	180,355
2025	739,747	173,799
2026	680,034	165,015
2027	545,468	158,978
2028	528,173	156,920
2029 and thereafter	2,630,069	1,705,594
Total future lease payments	5,931,169	2,540,661
Less: Imputed interest	(1,880,246)	(1,265,329)
Present value of future lease payments*	4,050,923	1,275,332

*	Present value of future operating lease payments consisted of current portion of operating lease liabilities and non-current portion of operating lease liabilities, amounting to RMB780,164 and RMB3,270,759 for the year ended December 31, 2023, respectively.

Present value of future finance lease payments consisted of current portion of finance lease liabilities and non-current portion of finance lease liabilities, amounting to RMB115,806 and RMB1,159,525 for the year ended December 31, 2023, respectively.

OTHER NON-CURRENT ASSETS

12 Months Ended

Dec. 31, 2023

OTHER NON-CURRENT ASSETS

OTHER NON-CURRENT ASSETS

13. OTHER NON-CURRENT ASSETS

As of December 31, 2022 and 2023, other non-current assets included prepayment for acquisition of datacenters and purchase of property and equipment amounting to RMB293,500 and RMB293,500, which consist of 53% and 55% of other non-current assets, respectively.

ORGANIZATION - Significant subsidiaries of the Company and consolidated variable interest entities (Parenthetical) (Details)	Aug. 01, 2022	Nov. 11, 2021	Aug. 16, 2021	Jul. 15, 2021
BJ JHC
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of equity interests acquired				100.00%
BJ TenxCloud
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of equity interests acquired				100.00%
SH Hesheng
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of equity interests acquired		100.00%
Zhongke Zijing
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of equity interests acquired			100.00%
Jianghe Shuzhi
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of equity interests acquired	100.00%
Jianghe Chuangke
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of equity interests acquired	100.00%
Jianghe Industrial
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of equity interests acquired	100.00%
BJ Xunneng
Significant subsidiaries of the Company, VIEs and subsidiaries of VIEs
Percentage of equity interests acquired	100.00%

ACCOUNTS AND NOTES RECEIVABLE, NET

12 Months Ended

Dec. 31, 2023

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,
	2022	2023
	RMB	RMB
Accounts receivable	1,897,111	1,903,458
Notes receivable	1,151	873
Allowance for doubtful debt	(134,569)	(188,356)
	1,763,693	1,715,975

As of December 31, 2022 and 2023, 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,
	2021	2022	2023
	RMB	RMB	RMB
Balance at beginning of the year	68,921	99,620	134,569
Additional due to business combination	16,256	—	—
Additional provision charged to expense	14,990	34,949	54,512
Write-off of accounts receivable	(547)	—	(725)
Balance at the end of the year	99,620	134,569	188,356

ACQUISITION OF SUBSIDIARIES - Asset Acquisitions (Details) ¥ in Thousands, $ in Thousands	Aug. 01, 2022 CNY (¥)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Net assets acquired:
Cash and cash equivalents		¥ 2,243,537	$ 315,996	¥ 2,661,321	¥ 1,372,481
Property and equipment, net		13,024,393	1,834,447	11,964,498
Intangible assets, net		1,383,406	194,849	1,497,131
Land use rights, net		602,503	84,861	576,020
Deferred tax liabilities		(688,362)	$ (96,954)	(682,580)
Operating permits
Net assets acquired:
Intangible assets, net		1,109,984		1,161,443
Purchased software
Net assets acquired:
Intangible assets, net		¥ 75,630		¥ 68,122
BJ JiangHeCloud
Net assets acquired:
Cash and cash equivalents	¥ 3,325
Other Assets, Current	3,959
Property and equipment, net	306,546
Land use rights, net	221,556
Other current liabilities	(15,448)
Deferred tax liabilities	(209,989)
Total consideration in cash	789,938
BJ JiangHeCloud \| Operating permits
Net assets acquired:
Intangible assets, net	¥ 479,989

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Weighted average useful lives of intangible assets (Details)	Dec. 31, 2023
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	32 years 1 month 6 days
Customer relationships
Weighted average useful lives of intangible assets
Estimated useful life of intangible assets	8 years 3 months 18 days
Licenses
Weighted average useful lives of intangible assets
Estimated useful life of intangible assets	15 years
Supplier relationships
Weighted average useful lives of intangible assets
Estimated useful life of intangible assets	10 years
Trade names
Weighted average useful lives of intangible assets
Estimated useful life of intangible assets	20 years
Technology Platform
Weighted average useful lives of intangible assets
Estimated useful life of intangible assets	5 years
Non-compete agreement
Weighted average useful lives of intangible assets
Estimated useful life of intangible assets	5 years
Internal-use software
Weighted average useful lives of intangible assets
Estimated useful life of intangible assets	3 years 4 months 24 days
Customer contract
Weighted average useful lives of intangible assets
Estimated useful life of intangible assets	7 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥) segment	Dec. 31, 2023 USD ($) segment	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2023 USD ($)
Significant accounting policies
Accumulated deficit	¥ (11,016,323)		¥ (8,369,868)		$ (1,551,617)
Recorded credit loss	368,505	$ 51,903	35,409	¥ 18,399
Internal use software development costs, Amount capitalized	¥ 16,195		15,322	11,422
Percentage of interest in limited partnerships applies the equity method of accounting	3.00%	3.00%
Impairment losses pursuant to the goodwill tests	¥ 1,364,191	$ 192,142	0
Impairment of long-lived assets	506,686	$ 71,365		109,267
Deferred revenue	95,477		95,078		13,448
Advertising expense	¥ 9,826		6,829	7,272
Share Repurchase Plan, share value				1,704,890
Number of reportable segments \| segment	1	1
Retained Earnings (Accumulated Deficit)	¥ (11,016,323)		(8,369,868)		$ (1,551,617)
Net current liability position	1,600,000
Escrow deposit	2,117,730
Depreciation expense	1,663,932		1,462,550	1,164,725
Long-lived assets impairment	506,686	$ 71,365	0	¥ 109,267
Contract with customer liability revenue recognized	78,683		¥ 39,374
Change in useful lives
Significant accounting policies
Depreciation expense	(409,000)
2026 Convertible promissory notes
Significant accounting policies
Accumulated deficit	11,000,000
Retained Earnings (Accumulated Deficit)	¥ 11,000,000
Maximum
Significant accounting policies
Official exchange rate of foreign currency remeasured (RMB per one U.S. dollar)	7.0999				7.0999
Maximum \| Change in useful lives
Significant accounting policies
Property and equipment, estimated useful life (in years)	15 years				15 years
Maximum \| Data center Property And Equipment
Significant accounting policies
Property and equipment, estimated useful life (in years)	10 years				10 years
Minimum \| Change in useful lives
Significant accounting policies
Property and equipment, estimated useful life (in years)	3 years				3 years
Minimum \| Data center Property And Equipment
Significant accounting policies
Property and equipment, estimated useful life (in years)	2 years				2 years

ACQUISITION OF SUBSIDIARIES (Tables)

12 Months Ended

Dec. 31, 2023

Sanhe Mingtai Digital Industrial Park Co., Ltd. (Sanhe Digital)

ACQUISITION OF SUBSIDIARIES

Schedule of net identifiable assets of acquiree, business combination


		RMB
Net assets acquired:
Current assets		3
Property and equipment, net		105,538
Land use rights, net		14,258
Deferred tax assets		2,232
Accrued expenses and other payables		(2,277)
Deferred tax liabilities		(2,758)
Total share consideration		116,996

BJ JiangHeCloud

ACQUISITION OF SUBSIDIARIES

Schedule of net identifiable assets of acquiree, business combination


		RMB
Net assets acquired:
Cash and cash equivalents		3,325
Other current assets		3,959
Property and equipment, net		306,546
Operating permits (Note 9)		479,989
Land use rights, net (Note 10)		221,556
Other current liabilities		(15,448)
Deferred tax liabilities		(209,989)
Total consideration in cash		789,938

Kunshan Kunhui Network Co., Ltd. ("KS Kunhui")

ACQUISITION OF SUBSIDIARIES

Schedule of net identifiable assets of acquiree, business combination


		RMB
Cash and cash equivalents		9,014
Property and equipment, net		92,157
Operating lease right-of-use assets, net		199,255
Operating permits (Note 9)		29,000
Customer contract (Note 9)		59,500
Deferred tax assets		13,921
Other current assets		289,480
Total assets acquired		692,327
Other current liabilities		(436,124)
Operating lease liabilities		(208,612)
Deferred tax liabilities		(22,125)
Total liabilities assumed		(666,861)
Net assets acquired		25,466
Purchase consideration		50,000
Goodwill		24,534

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION - Condensed Statements of Cash Flows (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Condensed statements of cash flows
Net cash used in operating activities	¥ 2,063,480	$ 290,635	¥ 2,440,214	¥ 1,387,922
Net cash used in investing activities	(3,905,109)	(550,023)	(3,559,252)	(3,772,613)
Net cash generated from financing activities	3,941,134	555,097	2,298,080	967,577
Net (decrease) increase in cash and cash equivalents and restricted cash	2,109,493	297,116	1,281,021	(1,407,964)
Cash and cash equivalents and restricted cash at beginning of year	2,989,494	421,061	1,708,473	3,116,437
Cash and cash equivalents and restricted cash at end of year	5,098,987	$ 718,177	2,989,494	1,708,473
Parent Company
Condensed statements of cash flows
Net cash used in operating activities	29,940		(14,927)	(218,664)
Net cash used in investing activities	(37,571)		(1,670,058)	113,530
Net cash generated from financing activities			1,592,627	143,037
Net (decrease) increase in cash and cash equivalents and restricted cash	(7,631)		(92,358)	37,903
Cash and cash equivalents and restricted cash at beginning of year	7,661		100,019	62,116
Cash and cash equivalents and restricted cash at end of year	¥ 30		¥ 7,661	¥ 100,019

TAXATION - Unrecognized Tax Benefits (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
TAXATION
Balance at beginning of year	¥ 64,528	¥ 64,854
Reversal based on tax positions related to prior years	0	(418)
Additions based on tax positions related to the current year	0	92
Balance at end of year	¥ 64,528	¥ 64,528

DEFERRED GOVERNMENT GRANTS - Additional Information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
DEFERRED GOVERNMENT GRANTS.
Government grants received	¥ 155,333	¥ 5,000	¥ 0

RELATED PARTY TRANSACTIONS - Related party transactions (Details) ¥ in Thousands, $ in Thousands	1 Months Ended	10 Months Ended	12 Months Ended
	May 31, 2023 CNY (¥)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
RELATED PARTY TRANSACTIONS
Operating income			¥ 106,273	$ 14,968	¥ 60,013
Long-term loan to related parties			115,048	16,205	500	¥ 75,872
Interest expenses, net			312,172	43,969	273,305	334,950
Lease expenses			1,040,405		1,019,425	966,663
Receipt of loans to a related party			9,800	1,380
Proceeds from related party debt			350,000	$ 49,296
Percentage of related party interest rate	6.00%
SZ Century
RELATED PARTY TRANSACTIONS
Revenues					14,089	1,445
Shanghai Puping
RELATED PARTY TRANSACTIONS
Long-term loan to related parties			80,263			75,611
Shanghai Edge Interchange
RELATED PARTY TRANSACTIONS
Revenues			938		651
Long-term loan to related parties			1,000		500
Interest on Investment Income (Expenses)			32		1
Jingliang Inter Cloud
RELATED PARTY TRANSACTIONS
Revenues						480
BJ New Internet
RELATED PARTY TRANSACTIONS
Revenues						170
Long-term loan to related parties						261
CYSD
RELATED PARTY TRANSACTIONS
Cost of goods and services sold			31,119		36,673	38,918
Beijing Huaqing
RELATED PARTY TRANSACTIONS
Cost of goods and services sold						1,254
Ziguang Finance Leasing
RELATED PARTY TRANSACTIONS
Related party transaction, Lease payment paid						10,431
Beijing Qidi Yefeng
RELATED PARTY TRANSACTIONS
Related party transaction, Lease payment paid						2,154
Sanhe Mingtai
RELATED PARTY TRANSACTIONS
Cost of goods and services sold			17,366
Long-term loan to related parties			33,785
Related party transaction, Lease payment paid			10,801
Lease expenses		¥ 14,268
Repairs and maintenance		3,098
ROU assets		171,629	171,629
Lease liability		¥ 173,628	173,628
Beijing Jiwa
RELATED PARTY TRANSACTIONS
Cost of goods and services sold			1,891
SH Shibei
RELATED PARTY TRANSACTIONS
Interest on Investment Income (Expenses)			(1,321)			1,321
Receipt of loans to a related party			9,800
Changzhou Gaoxin
RELATED PARTY TRANSACTIONS
Interest expenses, net			13,183
Proceeds from related party debt			350,000
Changzhou Gaoxin Internet Co., Ltd
RELATED PARTY TRANSACTIONS
Proceeds from related party debt	¥ 350,000
Tuspark Innovation
RELATED PARTY TRANSACTIONS
Cash consideration for shares repurchase						1,701,804
Others
RELATED PARTY TRANSACTIONS
Revenues					2	144
Cost of goods and services sold			¥ 333		¥ 513	¥ 1,223

BORROWINGS - Bank and Oher Borrowings (Details) ¥ in Thousands	Dec. 31, 2023 CNY (¥)
BORROWINGS
2024	¥ 799,314
2025	816,677
2026	751,209
2027	683,110
2028	689,511
2029 and thereafter	¥ 2,273,233

RESTRICTED NET ASSETS

12 Months Ended

Dec. 31, 2023

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. VNET China was established as a foreign-invested enterprise and, therefore, is subject to the above mandated restrictions on distributable profits. As of December 31, 2022, and 2023, the Company’s PRC subsidiaries had appropriated RMB77,995 and RMB80,615, 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 RMB15,231,710 as of December 31, 2023.

ACCOUNTS AND NOTES RECEIVABLE, NET - Accounts and notes receivable due (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
ACCOUNTS AND NOTES RECEIVABLE, NET
Balance at beginning of the year	¥ 134,569	¥ 99,620	¥ 68,921
Additional due to business combination			16,256
Additional provision charged to expense	54,512	34,949	14,990
Write-off of accounts receivable	(725)		(547)
Balance at end of the year	¥ 188,356	¥ 134,569	¥ 99,620

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY ¥ in Thousands, $ in Thousands	Ordinary shares CNY (¥) shares	Ordinary shares USD ($) shares	Treasury stock CNY (¥)	Treasury stock USD ($)	Additional paid-in capital CNY (¥)	Additional paid-in capital USD ($)	Series A perpetual convertible preferred shareholders CNY (¥)	Accumulated other comprehensive loss CNY (¥)	Accumulated other comprehensive loss USD ($)	Statutory reserves CNY (¥)	Statutory reserves USD ($)	Accumulated deficit CNY (¥)	Accumulated deficit USD ($)	Total VNET Group, Inc. shareholders' equity CNY (¥)	Total VNET Group, Inc. shareholders' equity USD ($)	Noncontrolling interest CNY (¥)	Noncontrolling interest USD ($)	CNY (¥) shares	USD ($) shares
Beginning Balance (in shares) at Dec. 31, 2020 \| shares	817,959,713	817,959,713
Beginning balance at Dec. 31, 2020	¥ 56				¥ 13,083,119		¥ 1,047,468	¥ (55,535)		¥ 74,462		¥ (7,235,113)		¥ 6,564,934		¥ 332,546		¥ 6,897,480
Treasury stock, beginning balance at Dec. 31, 2020			¥ (349,523)
Consolidated net income (loss)												500,098		500,098		15,003		515,101
Contribution by noncontrolling interest																11,223		11,223
Conversion of perpetual convertible preferred shares and cumulative dividend	¥ 3				1,076,208		¥ (1,047,468)	(106)				(28,637)
Conversion of perpetual convertible preferred shares and cumulative dividend (in shares) \| shares	54,507,816	54,507,816
Foreign exchange difference								(22,773)						(22,773)				(22,773)
Conversion of convertible promissory notes	¥ 3				1,639,803									1,639,806				1,639,806
Conversion of convertible promissory notes (in shares) \| shares	42,401,010	42,401,010
Share repurchase	¥ (3)				(866,400)			(12,029)				(826,458)		(1,704,890)				(1,704,890)
Share repurchase (in shares) \| shares	(48,634,493)	(48,634,493)
Share-based compensation					264,854									264,854				¥ 264,854
Issuance of new shares for share option exercised and restricted share units vested	¥ 1				(1)
Issuance of new shares for share option exercised and restricted share units vested (in shares) \| shares	16,680,000	16,680,000
Shares issued to depositary bank (in shares) \| shares	7,800,000	7,800,000																7,800,000	7,800,000
Appropriation of dividend												(272)		(272)				¥ (272)
Share options exercised					472									472				472
Share options exercised (in shares) \| shares	86,862	86,862
Restricted share units vested (shares) \| shares	5,929,122	5,929,122
Settlement of share options and restricted share units with shares held by depository bank (in shares) \| shares	(6,015,984)	(6,015,984)
Treasury stock, ending balance at Dec. 31, 2021			(349,523)
Ending Balance (in shares) at Dec. 31, 2021 \| shares	890,714,046	890,714,046
Ending balance at Dec. 31, 2021	¥ 60				15,198,055			(90,443)		74,462		(7,590,382)		7,242,229		358,772		7,601,001
Consolidated net income (loss)												(775,952)		(775,952)		13,958		(761,994)
Foreign exchange difference								101,465						101,465				101,465
Disposal of noncontrolling interest																(487)		(487)
Share-based compensation					(41,871)									(41,871)				(41,871)
Appropriation of statutory reserves										3,534		(3,534)
Share options exercised (in shares) \| shares	2,802	2,802
Restricted share units vested (shares) \| shares	5,666,844	5,666,844
Settlement of share options and restricted share units with shares held by depository bank (in shares) \| shares	(5,669,646)	(5,669,646)
Treasury stock, ending balance at Dec. 31, 2022			(349,523)															(349,523)
Ending Balance (in shares) at Dec. 31, 2022 \| shares	890,714,046	890,714,046
Ending balance at Dec. 31, 2022	¥ 60				15,239,926			11,022		77,996		(8,369,868)		6,609,613		372,243		6,981,856
Consolidated net income (loss)												(2,643,836)		(2,643,836)		46,667		(2,597,169)
Issuance of ordinary shares, net of issurance cost	¥ 47				2,084,356									2,084,403				2,084,403
Acquistion of noncontrolling interest					(27,200)									(27,200)		(30,471)		¥ (57,671)
Reissuance of treasury stock for share option exercise and restricted share units vested , shares \| shares	3,252,768	3,252,768																3,252,768	3,252,768
Reissuance of treasury stock for share option exercise and restricted share units vested			22,570		(22,570)
Issuance of new shares (in shares) \| shares	650,424,192	650,424,192
Contribution by noncontrolling interest																116,996		¥ 116,996
Foreign exchange difference								(25,365)						(25,365)				(25,365)
Share-based compensation					16,800									16,800				16,800
Appropriation of statutory reserves										2,619		(2,619)
Appropriation of dividend																(5,467)		(5,467)
Restricted share units vested (shares) \| shares	3,043,692	3,043,692
Settlement of share options and restricted share units with shares held by depository bank (in shares) \| shares	(3,043,692)	(3,043,692)
Treasury stock, ending balance at Dec. 31, 2023			¥ (326,953)	$ (46,050)														(326,953)	$ (46,050)
Ending Balance (in shares) at Dec. 31, 2023 \| shares	1,544,391,006	1,544,391,006
Ending balance at Dec. 31, 2023	¥ 107	$ 15			¥ 17,291,312	$ 2,435,430		¥ (14,343)	$ (2,020)	¥ 80,615	$ 11,354	¥ (11,016,323)	$ (1,551,617)	¥ 6,014,415	$ 847,112	¥ 499,968	$ 70,419	¥ 6,514,383	$ 917,531

CONCENTRATION OF RISKS

12 Months Ended

Dec. 31, 2023

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, 2022 and 2023, the aggregate amount of cash and cash equivalents and restricted cash short-term investments of RMB2,677,823 and RMB2,431,089, respectively, were held at major financial institutions located in the PRC, and US$455,187 and US$426,022, 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:

3. CONCENTRATION OF RISKS (CONTINUED)

(b) Business, supplier, customer, and economic risk (continued)

(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 39%, 35% and 42% of the Company’s total bandwidth and cabinet resources for the years ended December 31, 2021, 2022 and 2023, respectively.

(iii)Customer risk—The success of the Company’s business going forward will rely in part on Company’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 one, one and one single entity customer generated more than 10% of the Company’s total net revenues for the years ended December 31, 2021, 2022 and 2023, respectively. 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 individually contributed more than 2% of the Company’s revenues in any given year but in the aggregate, they contributed approximately 6%, 6% and 5% of the Company’s total revenues for the years ended December 31, 2021, 2022 and 2023, 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, VNET 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.

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.

3. CONCENTRATION OF RISKS (CONTINUED)

(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 (2.3%), 9.2% and 1.7% in the years ended December 31, 2021, 2022 and 2023, 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.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustments, tax	¥ 0	¥ 0	¥ 0
Other comprehensive (loss) income, tax	¥ 0	¥ 0	¥ 0

- Definition

Amount of tax expense (benefit) allocated to other comprehensive income (loss).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Section 45
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-Publisher FASB
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+ Details

COMMITMENTS AND CONTINGENCIES - Purchase Commitments (Details) - Purchase Commitment [Member] - Schedule of outstanding purchase commitments in relation to bandwidth and cabinet capacity ¥ in Thousands	Dec. 31, 2023 CNY (¥)
COMMITMENTS AND CONTINGENCIES
2024	¥ 888,030
2025	227,716
2026	173,244
2027	72,906
2028	7,820
2029 and thereafter	2,627
Commitments to purchase	¥ 1,372,343

BORROWINGS - Borrowings (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
BORROWINGS
Short term bank borrowings	¥ 30,000	$ 4,225
Current portion of long-term borrowings of the Consolidated VIEs without recourse to the primary beneficiaries	334,511		¥ 289,941
Other long-term borrowings, current portion	388,814		194,079
Borrowings, current portion, Total	753,325		484,020
Long-term bank borrowings, non-current portion	4,170,981		2,694,249
Other long-term borrowings, non-current portion	942,540		355,607
Total borrowings	¥ 5,866,846		¥ 3,533,876

GOODWILL - Additional Information (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
Changes in the carrying amount of goodwill
Impairment losses of goodwill	¥ 1,364,191	$ 192,142	¥ 0
Hosting and Related Services
Changes in the carrying amount of goodwill
Impairment losses of goodwill	¥ 1,364,191		¥ 0	¥ 0

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 20
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-Paragraph 1
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+ Details

PERPETUAL CONVERTIBLE PREFERRED SHARES

12 Months Ended

Dec. 31, 2023

PERPETUAL CONVERTIBLE PREFERRED SHARES

PERPETUAL CONVERTIBLE PREFERRED SHARES

18. PERPETUAL CONVERTIBLE PREFERRED SHARES

In June 2020, the Company issued 150,000 Series A perpetual convertible preferred shares (the “Series A Preferred Shares”) at the subscription price of 1,000 US dollars per subscribed share for a total cash consideration of US$150,000.

The significant terms of the Series A Preferred Shares are summarized as follows:

Dividends

From and after the original issuance date, cumulative dividends on each Series A Preferred Share will accrue in arrears at the dividend rate of 4.5% per annum on the original issuance price of 1,000 US dollars per subscribed share. All accrued dividends on any Series A Preferred Share will be paid in cash, when, as and if declared by the Board of Directors out of funds legally available therefor or upon a liquidation of the Company.

18. PERPETUAL CONVERTIBLE PREFERRED SHARES (CONTINUED)

Dividends (continued)

Holders of the Series A Preferred Shares will also be entitled to receive any dividends declared by the Board of Directors on a pro rata basis with the ordinary shares determined on an as-converted basis. The dividends or distributions shall be distributed among all holders of ordinary shares and Series A Preferred Shares in proportion to the number of ordinary shares that would be held by each such holder if all Series A Preferred Shares had been converted to ordinary shares as of the record date fixed for determining those entitled to receive such distribution.

For dividends on cumulative preferred stock classified in permanent equity, dividends are not recognized until declared by the Board of Directors. RMB28,637 dividend was declared by the Company on the conversion date.

Liquidation preference

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of Series A Preferred Shares will be entitled to be paid out of the assets of the Company available for distribution to its shareholders before any distribution or payment out of the assets of the Company will be made to the holders of ordinary shares at a preferential amount in cash equal to the greater of (i) the aggregate original issuance price of 1,000 US dollars per Series A Preferred Shares, plus any unpaid, accrued and accumulated dividends on all such Series A Preferred Shares (whether or not declared) and (ii) the aggregate value that such holders of Series A Preferred Shares would have received had all holders of Series A Preferred Shares, immediately prior to such Liquidation, converted all Series A Preferred Shares then outstanding (together with any unpaid, accrued and accumulated dividends thereon) into Class A ordinary shares at the applicable conversion price then in effect.

If the Company has insufficient assets to pay the holders of the Series A Preferred Shares the full preferential amount, (a) the holders of the Series A Preferred Shares will share ratably in any distribution of the remaining assets of the Company in proportion to the respective full preferential amounts which would otherwise be payable to each such holder in full, and (b) the Company will not make or agree to make, or set aside for the benefit of the holders of ordinary shares, any payments to the holders of ordinary shares.

Conversion

Series A Preferred Shares can be converted at any time at the option of the holder into Class A ordinary shares by dividing the original issuance price plus any unpaid, accrued and accumulated dividends up to, but excluding, the conversion date by the conversion price in effect immediately prior to such conversion. Series A Preferred Shares will be mandatorily converted into Class A ordinary shares at any time after six months from the original issuance date when the daily volume-weighted average price of the ADS (“VWAP”) of certain period equals or exceeds the 200% of the conversion price per ADS (“Conversion Threshold”).

Conversion price is initially, US$2.8333 per Class A Ordinary Shares or US$17.00 per ADS and is subject to additional adjustments if the Company makes certain dilutive issuances of shares.

Voting

Each Series A Preferred Shares holder will be entitled to a number of vote equal to the number of Class A ordinary shares then issuable upon its conversion into Class A ordinary shares at the record date for determination of the shareholders entitled to vote on such matters, or, if no such record date is established, at the date when such vote is taken or any written consent of shareholders is solicited.

Accounting for the Series A Preferred Shares

The Series A Preferred Shares are classified as permanent equity and initially recorded at the issuance price at the time of closing. There were no embedded features that qualified for bifurcation and separate accounting in accordance with ASC 815-10, Derivatives and Hedging. As the time of closing, beneficial conversion features with the amount of RMB470,643 was recorded as a reduction to the respective preferred shares with an offsetting credit to additional paid-in capital. This amount was immediately accreted back as a deemed distribution to Series A perpetual convertible preferred shareholders.

18. PERPETUAL CONVERTIBLE PREFERRED SHARES (CONTINUED)

Accounting for the Series A Preferred Shares (continued)

The Company early adopted ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), starting on January 1, 2021 using modified retrospective transition method applied to those transactions outstanding as of January 1, 2021. The impact of adoption of ASU 2020-06 was immaterial for Series A Preferred Shares.

On March 1, 2021, 150,000 Series A Preferred Shares all has been converted into 54,507,816 Class A Ordinary Shares at the conversion price US$17.00 per ADS.

LONG-TERM INVESTMENTS, NET - Additional Information (Details) ¥ in Thousands, $ in Thousands	1 Months Ended								2 Months Ended		12 Months Ended
	Feb. 28, 2023 CNY (¥)	Nov. 30, 2022 CNY (¥)	Sep. 30, 2022 CNY (¥)	Jan. 31, 2021 CNY (¥)	Dec. 31, 2019 CNY (¥)	Jan. 31, 2018 CNY (¥)	Sep. 30, 2017	Apr. 30, 2012 CNY (¥)	Nov. 30, 2023 CNY (¥)	May 31, 2023 CNY (¥)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)	Dec. 31, 2020
LONG TERM INVESTMENT, NET
Impairment of equity method investments														¥ 3,495
Distribution received													¥ 15,232
Increase (Decrease) in Cost of Investments in Equity Method Investments											¥ 491,392		213,900
Equity method investment loss											3,279	$ 462	1,925	(38,666)
Equity method investment											738,128		223,457
Estimated recoverable amount of investments derecognized recorded in other current assets											56,642
WiFire Group Inc. ("WiFire Group")
LONG TERM INVESTMENT, NET
Increase (Decrease) in Cost of Investments in Equity Method Investments											(20,000)
Changzhou Gaoxin Internet Co., Ltd
LONG TERM INVESTMENT, NET
Capital injected	¥ 23,000
Equity Investments Without Readily Determinable Fair Value
LONG TERM INVESTMENT, NET
Impairment of equity investments without readily determinable fair values											9,327		0	0
Dividend income of non-marketable investments											3,270		391	¥ 659
Yizhuang Venture Investment Fund
LONG TERM INVESTMENT, NET
Equity interest, percentage														27.694%	27.694%
Distribution received											15,232		15,232
Capital injected								¥ 101,000
WiFire Group Inc. ("WiFire Group")
LONG TERM INVESTMENT, NET
Equity interest, percentage							33.33%		33.33%
Total cash consideration on disposal of equity interests									¥ 0
Percentage of ownership disposed							66.67%
Equity method investment													0
Chengdu Qidi Chengxin Education Limit ("Qidi Chengxin")
LONG TERM INVESTMENT, NET
Equity interest, percentage					59.00%
Capital injected					¥ 3,930
Jingliang Inter Cloud
LONG TERM INVESTMENT, NET
Equity interest, percentage						60.00%
Capital injected						¥ 6,000
Jingliang Century Cloud
LONG TERM INVESTMENT, NET
Equity interest, percentage						40.00%
Capital injected						¥ 4,000
Beijing Super Internet Technology Research Institute Co., Ltd. ("BJ Chaohulian")
LONG TERM INVESTMENT, NET
Equity interest, percentage				30.00%
Capital injected				¥ 5,000
Equity method investment loss														¥ 1,505
Equity method investment														¥ 0
Changzhou Gaoxin Internet Co., Ltd
LONG TERM INVESTMENT, NET
Equity interest, percentage		35.00%
Capital injected		¥ 210,000								¥ 488,392
Increase (Decrease) in Cost of Investments in Equity Method Investments											488,392		210,000
Dexin Tonglian (Beijing) Culture Technology Co., Ltd [Member]
LONG TERM INVESTMENT, NET
Equity interest, percentage			30.00%
Capital injected			¥ 3,000
Increase (Decrease) in Cost of Investments in Equity Method Investments													¥ 3,000
Zhuhai Private
LONG TERM INVESTMENT, NET
Equity interest, percentage	40.00%									35.00%
Increase (Decrease) in Cost of Investments in Equity Method Investments											¥ 23,000

CONVERTIBLE PROMISSORY NOTES

12 Months Ended

Dec. 31, 2023

CONVERTIBLE PROMISSORY NOTES

CONVERTIBLE PROMISSORY NOTES

19. CONVERTIBLE PROMISSORY NOTES

2025 Convertible Notes

During the year ended December 31, 2020, the Company entered into agreements with a group of investors led by Goldman Sachs Asia Strategic Pte. Ltd. (the “Purchasers”) to issue the Company’s convertible promissory note (the “2025 Convertible Notes”) for total gross proceeds of US$200,000. The 2025 Convertible Notes will mature in five years and, bear interest at the rate of 2% per annum from the issuance date which will be payable semiannually in arrears in cash.

Conversion

Purchasers have the option to convert all or a portion of the outstanding 2025 Convertible Notes and any accrued and unpaid interest, into ADSs at the conversion price at any time. The conversion price will initially be US$12.00 per ADS or will be subject to customary adjustments when the decrease in VWAP exceeds certain threshold. In addition, the conversion price will be adjusted in the event when the Company makes certain dilutive issuances of shares.

Redemption upon maturity

Unless previously redeemed or converted, the Company shall redeem the 2025 Convertible Notes on the maturity date in an amount equal to the sum of (i) 115% of the then outstanding principal amount of the 2025 Convertible Notes and (ii) the interest accrued but unpaid on the maturity date. The Company may not redeem the 2025 Convertible Notes at its option prior to the maturity date.

Early redemption at the option of the Purchasers

If any portion of the outstanding principal amount of the 2025 Convertible Notes has not been converted by the third anniversary of the date of issuance of the 2025 Convertible Notes, the Purchasers at their sole discretion will have the right to require the Company to redeem, in whole or in part, the outstanding principal amount of the 2025 Convertible Notes which has not been converted previously in an amount equal to the sum of (i) 109% of the outstanding principal amount and (ii) the interest accrued but unpaid on the outstanding principal amount.

The Company elected to account for the 2025 Convertible Notes at fair value as a whole. Issuance costs including underwriting commissions and offering expenses were approximately RMB18,932, which were recognized in earnings as incurred.

During the years ended December 31, 2020 and 2021, Purchasers of the 2025 Convertible Notes exercised the right to convert 23,710,140 and 42,401,010 newly issued Class A ordinary shares at the conversion price of US$12 per ADS. Upon conversion, the fair value of converted portion was RMB720,547 and RMB1,639,806, respectively. Issuance costs was approximately RMB2,939 and nil, respectively, which were credited to capital accounts with the changes in the fair value up to the conversion date recorded in earning. No conversion rights were exercised by the Purchasers for the years ended December 31, 2022 and 2023.

19. CONVERTIBLE PROMISSORY NOTES (CONTINUED)

2025 Convertible Notes (continued)

From March to June 2023, the Company received notices from the holders of the 2025 Convertible Notes, requiring the Company to redeem the 2025 Convertible Notes at 109% of the principal amount plus all accrued but unpaid interest within three months since the receipt of notices. The Company repurchased all of the outstanding 2025 Convertible Notes with principal amount of US$68,000 during the year ended December 31, 2023.

The interest expense on the convertible promissory was recorded based on the stated rate of 2% in the interest expense within the consolidated statements of operations. For the years ended December 31, 2021, 2022 and 2023, the interest expense was RMB9,703, RMB9,147 and RMB4,471, respectively.

As of December 31, 2022, the fair value of the remaining 2025 Convertible Notes was RMB537,778. The changes in fair value gain of convertible promissory notes of RMB829,149,RMB22,626 and RMB21,816 were recognized in the changes in the fair value of financial liabilities in the consolidated statement of operations for the years ended December 31,2021, 2022 and 2023, respectively.

2026 Convertible Notes

In January 2021, the Company issued US$600,000 principal amount 0.00% convertible senior notes including US$75,000 sold upon the exercise of the over-allotment option (the “2026 Convertible Notes”). The 2026 Convertible Notes will mature on February 1, 2026 unless redeemed, repurchased or converted prior to such date.

Holders may convert their 2026 Convertible Notes at their option prior to the close of business on the business day immediately preceding August 1, 2025 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of ADSs’, each representing six Class A ordinary shares of the Company, par value US$0.00001 per share, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period in which the trading price per 1,000 US dollars principal amount of the 2026 Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the ADSs and the conversion rate on each such trading day; (3) if the Company calls the 2026 Convertible Notes for a tax or optional redemption; or (4) upon the occurrence of specified corporate events. On or after August 1, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2026 Convertible Notes at any time. Upon conversion, the Company will pay or deliver, as the case may be, cash, ADSs, or a combination of cash and ADSs, at its election. If the Company satisfies its conversion obligation solely in cash or through payment and delivery, as the case may be, of a combination of cash and ADSs, the amount of cash and ADSs, if any, due upon conversion will be based on a daily conversion value calculated on a proportionate basis for each trading day in a 40 trading day observation period.

The initial conversion rate of the 2026 Convertible Notes is 18.3574 of the Company’s ADS per 1,000 US dollars principal amount of the 2026 Convertible Notes (which is equivalent to an initial conversion price of approximately US$54.47 per ADS). The conversion rate will be subject to adjustment in some events. In addition, following certain corporate events that occur prior to the maturity date, if a make-whole fundamental change occurs prior to the maturity date of the 2026 Convertible Notes, or under certain circumstances upon a tax redemption or the Company’s optional redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its 2026 Convertible Notes in connection with such corporate event, such make-whole fundamental change or such notice of tax redemption or notice of optional redemption, as the case may be. Upon conversion, the Company will pay or deliver, as the case may be, cash, ADSs (plus cash in lieu of a fractional ADS) or a combination of cash and ADSs, at its election. The conversion option may be settled in cash, ADSs, or a combination of cash and ADSs at the Company’s option.

19. CONVERTIBLE PROMISSORY NOTES (CONTINUED)

2026 Convertible Notes (continued)

The Company may not redeem the 2026 Convertible Notes prior to February 6, 2024 unless certain tax-related events occur. From February 6, 2024 to the 40th scheduled trading day immediately before the maturity date, the Company may redeem for cash all or part of the 2026 Convertible Notes, at its option, if the last reported sale price of the Company’s ADSs has been at least 130% of the conversion price then in effect on (i) each of at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately prior to the date the Company provides notice of redemption; and (ii) the trading day immediately preceding the date the Company sends such notice. Holders of the notes have the right to require the Company to repurchase for cash all of the 2026 Convertible Notes, or any portion of the principal thereof, on February 1, 2024 or in the event of certain fundamental changes. The redemption price will equal 100% of the principal amount of the 2026 Convertible Notes to be redeemed, plus any accrued and unpaid special interest, if any, to, but not including, the redemption date.

ASU 2020-06 simplified an issuer’s accounting for convertible instrument by eliminating the cash conversion and beneficial conversion feature models in ASC 470-20, Debt with Conversion and Other Options, that requires separate accounting for such conversion features. Results for reporting periods beginning after January 1, 2021 are presented under ASU 2020-06, while prior period amounts have not been adjusted and continue to be reported in accordance with historic accounting. The impact of adopting the new guidance was not material to consolidated financial statements and there was no adjustment to beginning retained earnings on January 1, 2021.

The 2026 Convertible Notes was accounted for as one unit of liability account using amortized cost method under ASU 2020-06, with no embedded derivative features being bifurcated.

The gross proceeds from issuance of the 2026 Convertible Notes were US$600,000. Debt issuance costs including underwriting commissions and offering expenses were approximately US$13,841, which were presented as deduction from liability and amortized into interest expense over the remaining period of 5 years. As of December 31, 2022 and 2023, the net carrying amount of the 2026 Convertible Notes was RMB4,119,048 and RMB4,208,495, respectively. For the years ended December 31, 2021, 2022 and 2023, no coupon interest expense was recognized. The amortization of issuance costs was RMB16,216, RMB18,525 and RMB19,499 for the years ended December 31, 2021, 2022 and 2023, respectively. The effective interest rate was 0.47% for the years ended December 31, 2021, 2022 and 2023.

As of December 31, 2023, the balance of the 2026 Convertible Notes was presented as current liability since the holders are able to exercise their redemption right on February 1, 2024. In January 2024, the Company received notices from the holders of the 2026 Convertible Notes, requiring the Company to redeem the 2026 Convertible Notes at 100% of the principal amount. The Company repurchased all of the outstanding 2026 Convertible Notes with principal amount of of US$600,000 in February 2024.

2027 Convertible Notes

On January 28, 2022, the Company entered into an investment agreement with funds managed by Blackstone Tactical Opportunities (each fund as an “Investor Party”) to issue the Company’s convertible promissory note (the “2027 Convertible Notes”) with principal amount of US$250,000. The 2027 Convertible Notes will mature in five years unless redeemed or converted prior to maturity date. For any holder that is an Investor Party as of the maturity date, the maturity date shall be extended to the 31st day after the maturity date (the “Investor Maturity Date”) and unless the 2027 Convertible Notes held by such holder have been duly redeemed or converted prior to the Investor Maturity Date, the Company’s repayment obligation to such holder will be satisfied by issuance and delivery of an aggregate number of Series A-1 perpetual convertible preferred shares equal to (1) the remaining portion of the principal amount, divided by (2) 1,000 US dollars, in repayment of the 2027 Convertible Notes. 2027 Convertible Notes bear interest at the rate of 2% per annum and paid in cash semi-annually unless prior written notice is provided to the holders by the Company.

19. CONVERTIBLE PROMISSORY NOTES (CONTINUED)

2027 Convertible Notes (continued)

Conversion

2027 Convertible Notes are convertible at any time on and after the original issuance date, at the option of holders, into Class A ordinary shares of the Company at a conversion price of US$1.8333 per Class A ordinary share, or into ADSs at a conversion price of US$11.00 per ADS. The conversion prices are subject to adjustment under the terms of the 2027 Convertible Notes. The Company may effect a mandatory conversion at its election at any time on or after the third anniversary of the original issuance date, if its ADSs achieve a price threshold of 200% of the conversion price for a specified period.

Redemption

The holders have the right to require the Company to redeem the 2027 Convertible Notes during the Redemption Period as defined below in an amount equal to the sum of: (a) the principal amount of the 2027 Convertible Notes; plus (b) the total amount of the accrued interest, and any stub period interest that has accrued until, but excluding, the date the redemption price is paid in full; plus (c) the incremental amount in case a fundamental change specified in the investment agreement has occurred. Incremental amount is equal to (a) 50% of the principal amount, minus (b) the interest that has already been paid in cash, minus (c) the fair market value of a dividend or distribution paid to the holder in any form other than cash or as Class A Ordinary Shares, minus (d) the accrued interest and minus (e) the stub period interest accrued. Any portion of the redemption price not paid by the Company on the redemption date shall accrue interest at a rate of 10% per annum annually from the redemption date to the date when the redemption price is paid in full.

“Redemption Period” means: (a) in the case of any holder that is the Investor Party, (i) the period commencing on the date of a fundamental adverse regulatory change, a fundamental change or an event of default as defined in the investment agreement and ending on the fifth anniversary of the original issuance date, and (ii) the thirty-day period beginning on the fifth anniversary of the original issuance date; and (b) in the case of any holder that is not Investor Party, the period commencing on the date of a fundamental adverse regulatory change or an event of default and ending on the fifth anniversary of the original issuance date. Fundamental change represents events defined in the investment agreement, including that a “person” or “group” (within the meaning of Section 13(d)(3) of the Exchange Act), other than the Company or any of its wholly-owned subsidiaries, has become or files any report with the SEC indicating that such person or group has become the direct or indirect “beneficial owner” of the Company’s equity securities representing more than fifty percent (50%) of the voting power of all of the Company’s then-outstanding equity securities.

The gross proceeds from issuance of the 2027 Convertible Notes were US$250,000. Debt issuance costs were approximately US$162, which were presented as deduction from liability and amortized into interest expense over the remaining period of 5 years. As of December 31, 2022 and 2023, the net carrying amount of the 2027 Convertible Notes was RMB1,740,211 and RMB1,769,946, respectively. For the years ended December 31, 2022 and 2023, the coupon interest expense was RMB30,498 and RMB35,234, respectively. The effective interest rate was both 2.02% for the years ended December 31, 2022 and 2023.

The redemption feature is required to be bifurcated as a separate unit of liability account and measured at fair value as it is not clearly and closely related to the debt host contract. After the bifurcation, the 2027 Convertible Notes was accounted for using amortized cost method. The fair value of the redemption feature was immaterial initially and subsequently at December 31, 2022. As of December 31, 2023, the fair value of the bifurcated redemption feature was RMB188,706 and was recored as derivative liablitiy in the consolidated balance sheet. The changes in fair value of derivative liability was recognized in the changes in the fair value of financial liabilities in the consolidated statement of operations for the year ended December 31, 2023.

GOODWILL - Carrying amount (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
GOODWILL.
Good will beginning balance	¥ 1,364,191		¥ 1,339,657
Accumulated impairment losses	(1,364,191)
Goodwill net			1,364,191
Goodwill acquired			24,534
Impairment of goodwill	(1,364,191)	$ (192,142)	0
Goodwill Ending balance	¥ 1,364,191		¥ 1,364,191

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

SHARE-BASED COMPENSATION - Restricted stock units activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Number of RSUs
Granted	1,368,227
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested		$ 0
2010 Plan
Number of RSUs
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$ 0.17
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	359,202
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value	$ 114
Restricted Stock Units (RSUs)
Number of RSUs
Unvested, beginning balance	1,700,864
Granted	1,388,777
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 2.96
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	5.04
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 13.26
Forfeited	(2,553)
Unvested, ending balance	2,579,806	1,700,864
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Nonvested	$ 7,404
Vested	(507,282)
Weighted-average grant date fair value
Unvested, beginning balance (in dollars per share)	$ 11.28
Unvested, ending balance (in dollars per share)	$ 8.07	$ 11.28
Weighted-average remaining contractual terms (Years)
Weighted average remaining contractual life	6 years 7 months 6 days	6 years 1 month 6 days

PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
PROPERTY AND EQUIPMENT, NET
Depreciation expense	¥ 1,663,932	¥ 1,462,550	¥ 1,164,725
Property, computer and network equipment and optical fiber
PROPERTY AND EQUIPMENT, NET
Depreciation expense	¥ 199,926	¥ 224,140	¥ 274,052

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2023

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

28. 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.

28. FAIR VALUE MEASUREMENTS (CONTINUED)

Assets and liabilities measured at fair value on a recurring basis include short-term investments, available-for-sale debt securities, the 2025 Convertible Notes, derivative liability and share consideration due to the original shareholders for business combination. Liabilities measured at amortized cost method include the 2026 Convertible Notes and the 2027 Convertible Notes. The fair value of these financial instruments are 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, 2022
	RMB	RMB	RMB	RMB
Long-term investments:
- Available-for-sale debt securities	—	—	1,600	1,600
Assets	—	—	1,600	1,600
Convertible promissory notes
- 2025 Convertible promissory notes	—	—	537,778	537,778
- 2026 Convertible promissory notes	3,446,432	—	—	3,446,432
- 2027 Convertible promissory notes	—	—	1,858,095	1,858,095
Liabilities	3,446,432	—	2,395,873	5,842,305


	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, 2023
	RMB	RMB	RMB	RMB
Short-term investments:
- Wealth management product	—	356,820	—	356,820
Assets	—	356,820	—	356,820

Convertible promissory notes
- 2026 Convertible promissory notes	4,196,500	—	—	4,196,500
- 2027 Convertible promissory notes	—	—	1,586,681	1,586,681
Derivative liability	—	—	188,706	188,706
Liabilities	4,196,500	—	1,775,387	5,971,887

The 2026 Convertible Notes are classified within Level 1 because they are valued by using quoted market prices.

Short-term investments are valued based on price per unit quoted by financial institution and are classified within Level 2 of the fair value hierarchy.

The 2025 Convertible Notes, the 2027 Convertible Notes, derivative liability and long-term investments are classified within Level 3. The fair value of 2025 Convertible Notes and 2027 Convertible Notes is measured using binomial tree pricing model that involves several parameters including the Company’s stock price, stock price volatility determined from the Company’s historical stock prices, the remaining maturity term and the discount rate. The fair value of 2025 Convertible Notes as of December 31, 2022 was estimated with the following key assumptions:


	As of December 31
	2022
Volatility	94.00%-96.00	%
Discount rate	16.00	%
Risk-free interest rate	4.23%-4.28	%

28. FAIR VALUE MEASUREMENTS (CONTINUED)

The fair value of derivative liability is measured using binomial tree pricing model taking the value difference with and without the redemption feature that involves several parameters including volatility, discount rate, risk-free interest rate and the probability of triggering events. The fair value of derivative liability as of December 31, 2023 was estimated with the following key assumptions:


	As of December 31
	2023
Volatility	90.00	%
Discount rate	14.65	%
Risk-free interest rate	3.99	%
Probability of triggering events	15.00	%

The assumptions are inherently uncertain and subjective. Changes in any unobservable inputs may have a significant impact on the fair value of derivative liability.

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.

The following tables presented a reconciliation of all liabilities measured at fair value on a recurring basis using significant unobservable inputs (level 3):


		2025 Convertible Notes
		RMB
Fair value at December 31, 2021		513,754
Foreign exchange loss		46,650
Changes in fair value		(22,626)
Fair value at December 31, 2022		537,778
Changes in fair value		(21,816)
Settlement		(527,089)
Foreign exchange loss		11,127
Fair value at December 31, 2023		—


		Share consideration due to the original
		shareholders for business combination
		RMB
Fair value at December 31, 2021		214,577
Transfer out of Level 3		(214,577)
Fair value at December 31, 2022		—

		Derivative liability
		RMB

Fair value at December 31, 2022		—
Changes in fair value		187,746
Foreign exchange loss		960
Fair value at December 31, 2023		188,706

28. FAIR VALUE MEASUREMENTS (CONTINUED)

Assets measured at fair value on a non-recurring basis

The Company measures certain non-financial assets on a nonrecurring basis. The Company’s non-financial assets, including long-lived assets such as property and equipment, intangible assets, right-of-use assets, and goodwill, would be measured at fair value only if they were determined to be impaired. The fair values of long-lived assets and reporting unit were measured under income approach, based on the Company’s best estimation which primarily includes significant unobservable inputs (level 3) such as future cash flows and discount rate.

Long-lived assets within certain asset groups were measured at fair value on a nonrecurring basis at December 31, 2023 due to an impairment recognized on those assets at that date (see Note 2(p)). Fair value of the asset groups was estimated using discounted cash flows under the income approach classified in Level 3 of the fair value hierarchy. Under the income approach, revenue growth rates in a range of 0% to 38% were used and the cash flows were discounted using a rate of 8.6%.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2023

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”) assuming the Company will continue as a going concern.

The Company has incurred losses since its inception. As of December 31, 2023, the Company had an accumulated deficit of RMB11.0 billion and in a net current liability position in an amount of RMB1.6 billion. Absent any other action, the Company likely will require additional liquidity to continue its operations over the next 12 months.

With the Company’s unused loan facilities with banks and financial institutions, strategy to obtain financing from the issuance of equity shares, bonds and convertible notes, and control of operating expenses and capital expenditure where necessary, management has determined that the Company has the ability to manage the liquidity needs to enable continuation of operations for the foreseeable future.

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

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant estimates and assumptions reflected in the Company’s financial statements include, but are not limited to, determining the valuation allowance for deferred tax assets, the fair value of convertible promissory notes and derivative liability, the fair value of assets acquired and liabilities assumed in acquisitions, the recoverability of long-lived assets, the fair values of asset groups, the fair value of a reporting unit, the estimated useful lives of property and equipment, and intangible assets, and incremental borrowing rate of leases. 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.

The Company regularly assesses the estimated useful lives of its property and equipment, and intangible assets. In January 2024, the Company, with the assistance of an external appraisal firm, completed an assessment of the useful lives of certain data center property and equipment and revised the estimated useful lives from a range of 2 to 10 years, to 3 to 15 years, based on an analysis of the property and equipment’s current use, historical age patterns, and industry trends and practices. This change in estimated useful lives will be accounted for as a change in accounting estimate, prospectively beginning in fiscal year 2024. Based on the carrying amounts of relevant data center property and equipment as of December 31, 2023, the Company expected the effect of this change in estimate to be a reduction in depreciation expense of approximately RMB409 million for the year ending December 31, 2024.

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.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(d) Foreign currency (continued)

The Company uses the average exchange rate for the year and the exchange rate at the balance sheet date to translate the operating results and financial position, respectively. Translation differences are recorded in other comprehensive (loss) income within the statements of comprehensive income (loss).

Convenience translation

(e) Convenience translation

Translations of consolidated balance sheets, consolidated statements of operations, comprehensive income (loss), cash flows, and shareholders’ equity from RMB to US$ as of and for the year ended December 31, 2023 are solely for the convenience of the reader and were calculated at the noon buying rate of US$1.00 to RMB7.0999 on December 29, 2023, the last business day in fiscal year 2023, representing the noon buying rate set forth in the H.10 statistical release of the U.S. Federal Reserve Board. No representation is made that the RMB amounts could have been, or could be converted, realized or settled into US$ 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 deposits for finance lease, the deposits held in escrow for the advances received from end customers subscribing Microsoft 365 and Windows Azure services (the disbursement of which shall be agreed by both Microsoft (China) Co., Ltd. (“Microsoft”) and the Company), the deposits for business operation, the deposits for loans and the deposits held for legal proceedings. As of 31 December 2023, the amount of restricted cash also included the deposits of RMB2,117,730 held in escrow for the repurchase of the 2026 Convertible Notes.

Short-term investments

(h) Short-term investments

The Company’s short-term investments primarily include the Company’s investment in a short-term wealth management product managed by a financial institution in Hong Kong S.A.R. The Company elects to apply the fair value option for the short-term investment. Realized and unrealized fair value changes in the short-term investment are recorded in other income in the consolidated statement of operations. In addition, other highly liquid investments with original maturities of greater than three months but less than twelve months, are also classified as short-term investments.

Accounts receivable and allowance for doubtful debt

(i) Accounts receivable and allowance for doubtful debt

Pursuant to ASC 326, Financial Instruments-Credit Losses, an allowance for credit losses for financial assets, including accounts receivable, carried at amortized cost to present the net amount expected to be collected as of the balance sheet date. Such allowance is based on credit losses expected to arise over the life of the asset’s contractual term, which includes consideration of prepayments. Assets are written off when the Company determines that such financial assets are deemed uncollectible and are recognized as a deduction from the allowance for credit losses. Expected recoveries of amounts previously written off, not to exceed the aggregate of the amount previously written off, are included in determining the necessary reserve at the balance sheet date. The Company pools financial assets based on similar risk characteristics to estimate expected credit losses. The Company estimates expected credit losses on financial assets individually when those assets do not share similar risk characteristics. The Company closely monitors its accounts receivable including timely account reconciliations, detailed reviews of past due accounts, updated credit limits, and monthly analysis of the adequacy of their reserve for credit losses.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(i) Accounts receivable and allowance for doubtful debt (continued)

The Company utilizes a loss rate approach to determine lifetime expected credit losses for its financial assets. This method is used for calculating an estimate of losses based primarily on the Company’s historical loss experience. In determining loss rates, the Company evaluates information related to historical losses, adjusted for current conditions and further adjusted for the period of time that the Company can reasonably forecast. The Company has concluded that it can reasonably support a forecast period for the contractual life of its financial assets. Qualitative and quantitative adjustments related to current conditions and the reasonable and supportable forecast period consider the following: the customer or vendor ‘s creditworthiness, changes in the policy and procedures to establish customer credit limits, changes in the payment terms of receivables, existence and effect of any concentration of credit and changes in the level of such concentrations, and the effects of other external forces such as the current and forecasted direction of the economic and business environment.

Property and equipment

(j) Property and equipment

Property and equipment are stated at cost less accumulated depreciation and any recorded impairment. Property and equipment acquired in a business combination are recognized initially at fair value at the data of acquisition. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, as follows:


Category		Estimated useful life
Property		25-46 years
Leasehold improvements		Over the shorter of lease term or the estimated useful lives of the assets
Optical fibers		10-20 years
Computer and network equipment		1-10 years
Office equipment		2-8 years
Motor vehicles		2-8 years

Repair and maintenance costs are charged to expense as incurred, whereas the costs of betterments that extend the useful life of property and equipment are capitalized as additions to the related assets. Retirements, sale and disposals of assets are recorded by removing the cost and accumulated depreciation with any resulting gain or loss reflected in the consolidated statements of operations.

Property and equipment that are purchased or constructed which require a period of time before the assets are ready for their intended use are accounted for as construction-in-progress. Construction-in-progress is recorded at acquisition cost, including installation costs. Construction-in-progress is transferred to specific property and equipment accounts and commences depreciation when these assets are ready for their intended use.

Intangible assets

(k) Intangible assets

Intangible assets are carried at cost less accumulated amortization and any recorded impairment. Intangible assets acquired in a business combination are recognized initially at fair value at the date of acquisition. Intangible assets with finite useful lives are amortized using a straight-line method. These amortization methods reflect the estimated pattern in which the economic benefits of the respective intangible assets are to be consumed.

The Company has capitalized certain internal use software development costs in accordance with ASC Subtopic 350-40, Intangibles-Goodwill and Other: Internal-Use Software (“ASC 350-40”), amounting to RMB11,422, RMB15,322 and RMB16,195 for the years ended December 31, 2021, 2022 and 2023, 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”.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(k) Intangible assets (continued)

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*		32.1 years
Customer relationships*		8.3 years
Licenses*		15 years
Supplier relationships*		10 years
Trade names*		20 years
Technology platform*		5 years
Non-complete agreements*		5 years
Internal use software		3.4 years
Customer contract*		7 years

*	Acquired in the acquisitions of subsidiaries.

Leases

(l) Leases

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 lease agreements with lease and non-lease components, which are accounted for separately. The Company elected the short-term lease exemption for all contracts with lease term of 12 months or less.

At the commencement date of a lease, the Company determines the classification of the lease based on the relevant factors present and records a right-of-use (“ROU”) asset and lease liability for operating lease, and records property and equipment and finance lease liability for finance lease. ROU assets and property and equipment acquired through lease represent the right to use an underlying asset for the lease term, and operating lease liabilities and finance lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets and lease liabilities are calculated as the present value of the lease payments not yet paid. If the rate implicit in the Company’s leases is not readily available, the Company uses an incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. This incremental borrowing rate reflects the fixed rate at which the Company could borrow on a collateralized basis the amount of the lease payments in the same currency, for a similar term, in a similar economic environment. ROU assets include any lease prepayments and are reduced by lease incentives. Operating lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease terms are based on the non-cancelable term of the lease and may contain options to extend the lease when it is reasonably certain that the Company will exercise that option.

Leases with an initial lease term of 12 months or less are not recorded on the consolidated balance sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term.

Land use rights

(m) Land use right

The land use rights represent the operating lease prepayments for the rights to use the land in the PRC under ASC 842. Amortization of the prepayments is provided on a straight-line basis over the terms of the respective land use rights certificates.

Long-term investments

(n) Long-term investments

The Company’s long-term investments primarily consist of equity investments without readily determinable fair value, equity method investments.

Pursuant to ASC Topic 321, Investments—Equity Securities (“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.

For equity investments measured at fair value with changes in fair value recorded in earnings, the Company does not assess whether those securities are impaired. For those equity investments that the Company elects to use the measurement alternative, the Company makes a qualitative assessment of whether the investment is impaired at each reporting date. If a qualitative assessment indicates that the investment is impaired, the entity has to estimate the investment’s fair value in accordance with the principles of ASC 820. If the fair value is less than the investment’s carrying value, the entity has to recognize an impairment loss in net loss equal to the difference between the carrying value and fair value.

Investments in equity investees represent investments in entities in which the Company can exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting in accordance with ASC Subtopic 323-10, Investments-Equity Method and Joint Ventures: Overall (“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 identifiable assets acquired and the liabilities assumed of an acquired business. The Company assesses goodwill for impairment in accordance with ASC Subtopic 350-20, Intangibles—Goodwill and Other: Goodwill (“ASC 350-20”), which requires that goodwill to be tested for impairment at the reporting unit level at least annually and more frequently upon the occurrence of certain events, as defined by ASC 350-20.

The Company has the option to assess qualitative factors first to determine whether it is necessary to perform the quantitative test in accordance with ASC 350-20. In the qualitative assessment, the Company considers primary factors such as industry and market considerations, overall financial performance of the reporting units, and other specific information related to the operations. If the Company believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount, the quantitative impairment test described above is required. Otherwise, no further testing is required. The quantitative impairment test compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess.

Pursuant to ASC 350-20, the Company performed assessment and completed its annual impairment test for goodwill that has arisen out of its acquisitions. No impairment loss of goodwill was recognized for the years ended December 31, 2021 and 2022. RMB1,364,191 of goodwill impairment loss was recognized for the year ended December 31, 2023. See Note 11 for details.

Impairment of long-lived assets

(p) Impairment of long-lived assets

The Company evaluates long-lived assets, such as fixed assets, purchased or internally developed intangible assets with finite lives, and operating lease right-of-use assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC Topic 360, Property, Plant and Equipment. When such events occur, the Company assesses the recoverability of the asset groups by comparing the undiscounted cash flows expected to be generated by the asset groups to their carrying amounts. If the Company identifies an impairment, the Company reduces the carrying amount of the asset group to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values and the impairment loss, if any, is recognized in the consolidated statements of operations.

As of December 31, 2021, due to continuing losses and physical condition changed, the Company recorded the long-lived assets impairment amounting to RMB109,267, resulting from excess of the carrying amount of the asset group over the fair value of the asset group.

No impairment was recognized for the year ended December 31, 2022 as there was no impairment indicator identified.

As of December 31, 2023, due to the weaker-than-expected operations, the Company tested certain long-lived asset groups for recoverability. Impairment loss is calculated as the amount by which the carrying amount of the relevant asset groups exceeds their estimated fair value. Impairment loss of RMB506,686 was recorded for the year ended December 31, 2023.

The Company determined the fair value of relevant asset group using the income approach based on the discounted cash flows associated with the asset group.

The impairment loss reduced the carrying amount of the long-lived assets of the group on a pro-rata basis using the relative carrying amount of those assets except that the loss allocated to an individual long-lived asset of the group shall not reduce the carrying amount of that asset below its fair value whenever that fair value is determinable without undue cost and effort.

The Company recorded impairment charges associated with its long-lived assets as follows:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Impairment of property and equipment	106,311	—	480,099
Impairment of intangible assets	—	—	15,113
Impairment of right-of-use assets	—	—	11,474
Impairment of other non-current assets	2,956	—	—

Fair value of financial instruments

(q) Fair value of financial instruments

The Company’s financial instruments primarily include cash and cash equivalents, restricted cash, short-term investments, accounts receivable and payable, other receivables and payables, amounts due from/to related parties, long-term borrowings, available-for-sale debt investments, convertible promissory notes and a derivative liability. Other than long-term borrowings, convertible promissory notes and the derivative liability, the carrying values of these financial instruments approximate their fair values due to their short-term maturities.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(q) Fair value of financial instruments (continued)

The carrying amounts of long-term borrowings approximate their fair values since they bear interest rates which approximate market interest rates. The Company elected the fair value option for the 2025 Convertible Notes (Note 19) upon initial recognition as financial liability as the fair value better represents the value of the underlying liabilities. The purchase consideration and contingent purchase considerations in both cash and shares are initially measured at fair value on the acquisition dates of the acquired businesses and the date of grant, respectively, and subsequently remeasured at the end of each reporting period with an adjustment for fair value recorded to the current period income/(expense). The bifurcated redemption feature of 2027 Convertible Notes (Note 19) is recorded as a derivative liability, which is initially measured at fair value, and subsequently remeasured at the end of each reporting period with an adjustment for fair value recorded to the current period income/(expense). The Company recorded the 2026 Convertible Notes (Note 19) and 2027 Convertible Notes (Note 19) using amortized cost method on its consolidated balance sheets and measures the fair value for disclosure purposes only. See Note 28 for disclosure of fair value measurements.

Revenue recognition

(r) Revenue recognition

The Company provides hosting and related services including hosting of customers’ servers and networking equipment, connecting customers’ servers with internet backbones (“Hosting service”), virtual private network services providing encrypted secured connection to public internet (“VPN service”) and other value-added services and public cloud service through strategic partnership with Microsoft.

The Company recognizes revenue as it satisfies a performance obligation when its customer obtains control of promised goods or services, in an amount that reflects the consideration that the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of ASC Topic 606, Revenue from Contracts with Customers (“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 establishing 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 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 contract term.

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.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(r) Revenue recognition (continued)

The Company partners with Microsoft to provide Cloud services that allow enterprise and individual customers to run their applications over the internet using the IT infrastructure. Cloud services are generally charged by the Company to the end customers for a fixed amount or based on the actual usage of the cloud resources at predetermined rates over the subscription period, which in general is one year. The Company fulfils its performance obligation of facilitating Microsoft to provide the Cloud services to the end customers by providing, but not limited to, contract processing management, billing, payment collection, maintenance, help desk supports and certain IT infrastructure services. These are considered as a series of distinct services that are substantially the same and have the same pattern of transfer to the customer; therefore, they are accounted for as a single performance obligation that is satisfied over time. The corresponding consideration that the Company is entitled to is recognized as revenue using a time-based method since this best depicts the pattern of the control transfer. Revenue from Cloud services consists of monthly incentive revenues received from Microsoft upon completion of certain conditions and gross billing amount received from end customers net of considerations remitted by the Company to Microsoft. When the contract is modified to add distinct services to the single performance obligation for additional fees, such changes are accounted for prospectively as a termination of the old contract and the creation of a new contract.

For certain arrangements, customers are required to pay the Company before the services are delivered. When either party to a revenue contract has performed, the Company recognizes a contract asset or a contract liability in the consolidated balance sheets, depending on the relationship between the Company’s performance and the customer’s payment. Contract liabilities were mainly related to fee received for Hosting services to be provided over the contract period, which were presented as deferred revenue on the consolidated balance sheets.

Deferred revenue represented the Company’s obligation to transfer the goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. As of January 1, 2022 and 2023, the Company has deferred revenue amounting up to RMB95,078 and RMB95,477, respectively, which were recognized as revenue for the years ended December 31, 2022 and 2023 in an amount of RMB39,374 and RMB78,683, respectively .

The Company’s certain hosting service contains lease and non-lease components. The Company elected to adopt the practical expedient which allows lessors to combine lease and non-lease components and account for them as one component if 1) the timing and pattern of transfer of the lease component and non-lease component is the same; 2) the lease component should be classified as an operating lease if it were accounted for separately. The combined component is accounted for in accordance with the current lease accounting guidance (“ASC 842”) if the lease component is predominant, and in accordance with the ASC 606 if the non-lease component is predominant. The Company has determined that the non-lease component is the predominant component in Hosting service. Therefore, the Company has accounted for the combined component in accordance with ASC 606.

The Company does not disclose the value of unsatisfied performance obligations as the Company’s revenue contracts are (i) contracts with an original expected length of one year or less or (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed.

Cost of revenues

(s) Cost of revenues

Cost of revenues consists primarily of telecommunication costs, depreciation of the Company’s long-lived assets, amortization of acquired intangible assets, utility, 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 RMB7,272, RMB6,829 and RMB9,826 for the years ended December 31, 2021, 2022 and 2023, respectively.

Research and development expenses

(u) Research and development expenses

Research and development expenses consist primarily of payroll and related personnel costs for routine upgrades and related enhancements of the Company’s services and network. Research and development expenses are expensed as incurred except for costs to develop internal-use software or add significant upgrades and enhancements resulting in additional functionality to internal-use software that meet the capitalization criteria in accordance with ASC Subtopic 350-40, Intangibles-Goodwill and Other, Internal-Use Software.

Government grants

(v) Government grants

Government grants are provided by the relevant PRC municipal government authorities to subsidize the cost of certain research and development projects. The amount of such government grants is determined solely at the discretion of the relevant government authorities and there is no assurance that the Company will continue to receive these government grants in the future. Government grants are recognized when it is probable that the Company will comply with the conditions attached to them, and the grants are received. When the grant relates to an expense item, it is recognized in the consolidated statement of operations over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate, as a reduction of the related operating expense. When the grant relates to an asset, it is recognized as deferred government grants and released to the consolidated statement of operations in equal amounts over the expected useful life of the related asset, when operational, as a reduction of the related depreciation expense.

Capitalized interest

(w) Capitalized interest

Interest costs are capitalized if they are incurred during the acquisition, construction or production of a qualifying asset and such costs could have been avoided if expenditures for these assets have not been made.

As a result of total interest costs capitalized during the period, the interest expense for the years ended December 31, 2021, 2022 and 2023, was as follows:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Interest expense and amortization cost of bonds payable	133,959	—	—
Interest expense and amortization cost of 2025, 2026 and 2027 Convertible Notes (Note 19)	25,919	58,350	59,429
Interest expense on bank and other borrowings	103,925	172,328	222,918
Interest expense on finance leases	124,567	104,088	90,679
Total interest costs	388,370	334,766	373,026
Less: Total interest costs capitalized	(53,420)	(61,461)	(60,854)
Interest expense, net	334,950	273,305	312,172

Income taxes

(x) Income taxes

The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the period in which the differences are expected to reverse. The carrying amount of deferred tax assets is reviewed on an entity-by-entity basis and is reduced by a valuation allowance to the extent that it is more-likely-than-not that the benefits of the deferred tax assets will not be realized in future years. The valuation allowance is determined based on the weight of positive and negative evidence including future reversals of existing taxable temporary differences, future taxable income exclusive of reversing temporary differences, and verifiable tax planning. The estimated future taxable income involves significant assumptions of forecasted revenue growth that take into consideration of the Company’s historical financial results, its plan of expanding operating capacity as well as current industry trends. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date of the change in tax rate. All deferred income tax assets and liabilities are classified as non-current on the consolidated balance sheets.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(x) Income taxes (continued)

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 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.

A cancellation of the terms or conditions of an equity award under original award in exchange for a new award should be treated as modification. The compensation costs associated with the modified awards are recognized if either the original vesting conditions or the new vesting conditions have been achieved. Total recognized compensation cost for the awards is at least equal to the fair value of the original awards at the grant date unless at the date of the modification the performance or service conditions of the original awards are not expected to be satisfied. The incremental compensation cost is measured as the excess of the fair value of the replacement awards over the fair value of original awards at the modification date. Therefore, in relation to the modified awards, the Company recognizes share-based compensation over the vesting periods of the new awards, which comprises (i) the amortization of the incremental portion of share-based compensation over the remaining vesting term, and (ii) any unrecognized compensation cost of original awards, using either the original term or the new term, whichever results in higher expenses for each reporting period. For a modification of a market condition, the incremental portion of share-based compensation and unrecognized compensation cost of original award are recognized over new vesting period. For modification of a liability award that remains a liability after modification, the liability award continues to be remeasured at fair value at each reporting date.

Earnings (Loss) per share

(z) Earnings (Loss) per share

In accordance with ASC Topic 260, Earnings per Share (“ASC 260”), basic earnings (loss) per share is computed by dividing earnings (loss) attributable to ordinary shareholders by the weighted average number of unrestricted ordinary shares outstanding during the year using two-class method. Under the two-class method, earnings (loss) is allocated between ordinary shares and participating securities based on their participating rights. The Company’s series A preferred shares (Note 18) are participating securities. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders using two-class method 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 (loss) 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. Ordinary equivalent shares consist of the ordinary shares issuable upon the exercise of the share options, using the treasury stock method and shares issuable upon the conversion of the company’s series A preferred shares and convertible promissory notes using if converted method. Ordinary share equivalents are excluded from the computation of diluted loss per share if their effects would be anti-dilutive.

Treasury stock

(aa) Treasury stock

When the Company acquires treasury stock, the repurchased ordinary shares is accounted for under the cost method whereby the entire cost of the acquired shares is recorded as treasury stock. The cost basis for the reissuance of treasury stock is determined using a weighted-average cost basis. To the extent that the reissuance price is more than the cost basis (gain), the excess is recorded as an increase to additional paid-in capital. If the reissuance price is less than the cost basis (loss), the difference is recorded to additional paid-in capital to the extent there is a remaining balance. Any losses in excess of that amount is charged to accumulated deficit .

Comprehensive income (loss)

(bb) Comprehensive income (loss)

Comprehensive income (loss) is defined as the increase (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 (loss) of the Company includes only foreign currency translation adjustments related to the Company and its overseas subsidiaries, whose functional currency is US$.

Segment reporting

(cc) Segment reporting

In accordance with ASC Topic 280, Segment Reporting (“ASC 280”), the Company had one reportable segment since the Company’s chief executive officer, who has been identified as the Company’s chief operating decision-maker (“CODM”) formerly relied on the results of operations of hosting and related services when making decisions on allocating resources and assessing performance of the Company, and the CODM reviews the operation result of the Company as a whole. Hosting and related services business focuses primarily on colocation, interconnectivity, cloud, VPN, hybrid IT and other value-added services.

As substantial all of the Company’s long-lived assets and revenues are located in and derived from the PRC, geographical segments are not presented.

Employee benefits

(dd) Employee benefits

The full-time employees of the Company’s PRC subsidiaries are entitled to staff welfare benefits including medical care, housing fund, pension benefits and unemployment insurance, which are governmental mandated defined contribution plans. These entities are required to accrue for these benefits based on certain percentages of the employees’ respective salaries, subject to certain ceilings, in accordance with the relevant PRC regulations, and make cash contributions to the state-sponsored plans out of the amounts accrued.

Recent accounting pronouncements

(ee) Recent accounting pronouncements

In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805) and require acquiring entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments apply to all entities that enter into a business combination within the scope of Subtopic 805-10, Business Combinations—Overall. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and it should be applied prospectively to business combinations occurring on or after the effective date of the amendments. The Company adopted this ASU from January 1, 2023 with no material impact on its consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in ASU 2023-07 improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The amendments introduce a new requirement to disclose significant segment expenses regularly provided to the chief operating decision maker (CODM), extends certain annual disclosures to interim periods, clarifies single reportable segment entities must apply ASC 280 in its entirety, permits more than one measure of segment profit or loss to be reported under certain conditions, and requires disclosure of the title and position of the CODM. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company adopted ASU 2023-07 on January 1, 2024 with no material impact on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires the annual financial statements to include consistent categories and greater disaggregation of information in the rate reconciliation, and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for the Company’s annual reporting periods beginning after December 15, 2024. Adoption is either with a prospective method or a fully retrospective method of transition. Early adoption is permitted. The Company is currently evaluating the effect that adoption of ASU 2023-09 will have on its consolidated financial statements.

EARNING (LOSS) PER SHARE - Additional Information (Details)	12 Months Ended
	Dec. 31, 2021 shares
EARNING (LOSS) PER SHARE
Shares issued to depositary bank (in shares)	7,800,000

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	¥ (2,597,169)	$ (365,805)	¥ (761,994)	¥ 515,101
Other comprehensive (loss) income, net of tax of nil
Foreign currency translation adjustments, net of tax of nil	(25,365)	(3,573)	101,465	(34,908)
Other comprehensive (loss) income, net of tax of nil	(25,365)	(3,573)	101,465	(34,908)
Comprehensive income (loss)	(2,622,534)	(369,378)	(660,529)	480,193
Comprehensive income attributable to noncontrolling interest	(46,667)	(6,573)	(13,958)	(15,003)
Comprehensive income (loss) attributable to VNET Group, Inc.	¥ (2,669,201)	$ (375,951)	¥ (674,487)	¥ 465,190

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

+ References + Details

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

+ References

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- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

TAXATION

12 Months Ended

Dec. 31, 2023

TAXATION

TAXATION

23. TAXATION

Enterprise income tax (“EIT”)

Cayman Islands

The Company is incorporated in the Cayman Islands and conducts its primary business operations through the subsidiaries and VIEs in the PRC and Hong Kong. Under the current laws of the Cayman Islands, the Company is not subject to tax on income or capital gain arising in Cayman Islands.

British Virgin Islands

Subsidiaries in British Virgin Islands are not subject to tax on income or capital gains under the current laws of the British Virgin Islands. Additionally, upon payments of dividends by the Company to its shareholders, no British Virgin Islands withholding tax will be imposed.

Hong Kong

Subsidiaries in Hong Kong are subject to Hong Kong profits tax rate of 16.5% for the years ended December 31, 2021, 2022 and 2023. A two-tiered profits tax rates regime was introduced in 2018 under which the first HK$2 million of assessable profits earned by an eligible company will be taxed at 8.25% and the remaining profits will continue to be taxed at 16.5%. There is an anti-fragmentation measure where each group will have to nominate only one company in the group to benefit from the progressive rates. Additionally, upon payments of dividends by the Company to its shareholders, no HK withholding tax will be imposed.

The Hong Kong government has enacted new tax laws to implement the Pillar Two model rules published by the Organisation for Economic Co-operation and Development (“OECD”), which are expected to come into effect from 1 January 2025. The Company continues to monitor the local legislation for Hong Kong and development of Pillar Two model rules in other jurisdictions the Company operates and assess the potential impact.

Taiwan

DYX Taiwan branch is incorporated in Taiwan and is subject to Taiwan profits tax rate of 20% for the years ended December 31, 2021, 2022 and 2023.

The PRC

The Company’s PRC subsidiaries are incorporated in the PRC and subject to the statutory rate of 25% on the taxable income in accordance with the Enterprise Income Tax Law (The “EIT Law”), which was effective since January 1, 2008, except for certain entities eligible for preferential tax rates.

Dividends, interests, rent or royalties payable by the Company’s PRC subsidiaries, to non-PRC resident enterprises, and proceeds from any such non-resident enterprise investor ‘s disposition of assets (after deducting the net value of such assets) shall be subject to 10% withholding tax, unless the respective non-PRC resident enterprise’s jurisdiction of incorporation has a tax treaty or arrangements with China that provides for a reduced withholding tax rate or an exemption from withholding tax.

VNET Beijing was qualified for a High and New Technology Enterprise (“HNTE”) since 2008 and is eligible for a 15% preferential tax rate. In October 2014, VNET Beijing obtained a new certificate and reapplied the certificate in October 2017, 2020 and 2023, with a validity term of three years. In accordance with the PRC Income Tax Laws, an enterprise awarded with the HNTE certificate may enjoy a reduced EIT rate of 15%. For the years ended December 31, 2021, 2022 and 2023, the tax rate for VNET Beijing was 15%, 15% and 15%, respectively.

23. TAXATION (CONTINUED)

Enterprise income tax (“EIT”) (continued)

The PRC (continued)

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, 2021, 2022 and 2023, the tax rate assessed for Xi’an Sub was 15%.

In October 2015, SH Blue Cloud, a subsidiary located in Shanghai, was qualified for a HNTE and became eligible for 15% preferential tax rate. The certificate was reapplied in November 2018 and November 2021 with a validity term of three years. Accordingly, for the years ended December 31, 2021, 2022 and 2023, 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 and the certificate was reapplied in November 2019 and December 2022 with a validity term of three years. Accordingly, for the years ended December 31, 2021, 2022 and 2023, SZ DYX enjoyed a preferential tax rate of 15%.

In December 2016, BJ TenxCloud, a subsidiary located in Beijing and the Company acquired in July 2021, was qualified for a HNTE and became eligible for 15% preferential tax rate effective for three consecutive years and the certificate was reapplied in December 2019 and December 2022 with a validity term of three years. Accordingly, for the years ended December 31, 2021, 2022 and 2023, BJ TenxCloud enjoyed a preferential tax rate of 15%.

In December 2019, SH Hesheng, a subsidiary located in Shanghai, in which the Company acquired 100% of the equity in November 2021, was qualified for a HNTE and became eligible for 15% preferential tax rate effective for three consecutive years. For the years ended December 31, 2021, 2022 and 2023, the tax rate assessed for SH Hesheng was 15%, 25% and 25%, respectively.

The 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.

The administrative practice associated with interpreting and applying the concept of “place of effective management” is unclear. The Company does not believe that the legal entities organized outside the PRC should be considered as residents for EIT Law purposes. If such an entity is deemed as a PRC tax resident, it will be subject to 25% PRC EIT under the 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.

Income (loss) before income taxes consisted of:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Non-PRC	675,369	(421,597)	(331,586)
PRC	(48,861)	(206,933)	(2,151,209)
	626,508	(628,530)	(2,482,795)

23. TAXATION (CONTINUED)

Enterprise income tax (“EIT”) (continued)

Income tax expenses comprised of:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Current	(111,082)	(115,577)	(157,526)
Deferred	(325)	(17,887)	43,152
	(111,407)	(133,464)	(114,374)


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Income (loss) before income taxes	626,508	(628,530)	(2,482,795)
Income tax (expenses) benefits computed at applicable tax rates (25%)	(156,627)	157,133	620,699
Non-deductible expenses	(13,116)	(72,156)	(700)
Research and development expenses	45,122	67,789	65,863
Preferential rate	14,232	(6,163)	(6,140)
Current and deferred tax rate differences	26,115	15,847	11,036
International rate differences	120,678	(75,119)	(101,585)
Tax exempted income	14,536	249	2,803
Foreign investment	(49,815)	(39,224)	(53,617)
Unrecognized tax benefits	(12,338)	(13,674)	(11,283)
Change in valuation allowance	(79,733)	(135,732)	(606,071)
Prior year provision to return true up	(22,898)	(28,949)	(34,759)
Others	2,437	(3,465)	(620)
Income tax expenses	(111,407)	(133,464)	(114,374)

23. TAXATION (CONTINUED)

Deferred Tax

The significant components of deferred taxes were as follows:


	As of December 31,
	2022	2023
	RMB	RMB
Deferred tax assets
Allowance for doubtful debt	52,658	125,500
Impairment of long-lived assets	40,784	166,576
Impairment of long-term investments	3,024	4,866
Accrued expense	22,108	39,896
Tax losses	358,454	849,672
Property and equipment	38,365	2,919
Intangible assets	7,142	9,432
Finance lease	372,997	386,327
Deferred government grant	1,714	3,357
Operating lease	768,638	949,362
Loss picked up on equity method investments	69,440	10,558
Valuation allowance	(397,457)	(955,738)

Total deferred tax assets, net of valuation allowance	1,337,867	1,592,727

Deferred tax liabilities
Intangible assets	266,922	405,964
Property and equipment	360,989	172,095
Capitalized interest expense	39,606	49,544
Finance lease	289,586	296,789
Operating lease	768,638	949,362
Investment in subsidiaries	98,608	159,691

Total non-current deferred tax liabilities	1,824,349	2,033,445

Net deferred tax liabilities	(486,482)	(440,718)
Analysis as:
Deferred tax assets	196,098	247,644
Deferred tax liabilities	682,580	688,362

Net deferred tax liabilities	(486,482)	(440,718)

As of December 31, 2023, the Company has net tax operating losses from its PRC subsidiaries and its Consolidated VIEs, as per filed tax returns, of RMB2,099,407, which will expire at various times between 2024 and 2033 and the majority expiring by 2028, if not utilized.

As of December 31, 2023, the undistributed earnings of the Company’s PRC subsidiaries the Company intends to permanently reinvested were RMB1,803,272. Other than these indefinitely reinvested amount, as of December 31, 2023, the Company has recognized deferred tax liabilities amounting to RMB159,691 associated with SH Zhiyan, one of its VIEs.

23. TAXATION (CONTINUED)

Deferred Tax (continued)

The following table presents the movements of the valuation allowance:


	For the years ended December 31,
	2022	2023
	RMB	RMB
Balance at beginning of year	261,960	397,457
Addition	135,732	606,071
Expiration	(235)	(47,790)
Balance at end of year	397,457	955,738

Unrecognized Tax Benefits

As of December 31, 2022 and 2023, the Company recorded unrecognized tax benefits of RMB87,174 and RMB98,457, respectively.

The unrecognized tax benefits and its related interest are primarily related to non-deductible expenses and accrued expenses. RMB61,827 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 principal was as follows:


	For the years ended December 31,
	2022	2023
	RMB	RMB
Balance at beginning of year	64,854	64,528
Reversal based on tax positions related to prior years	(418)	—
Additions based on tax positions related to the current year	92	—
Balance at end of year	64,528	64,528

For the years ended December 31, 2021, 2022 and 2023, the Company recorded interest expense of RMB6,606, RMB9,874 and RMB11,283, respectively. Accumulated interest expense recorded by the Company was RMB22,646 and RMB33,929 as of December 31, 2022 and 2023, respectively. As of December 31, 2023, the tax years ended December 31, 2018 through 2023 for the PRC subsidiaries remain open for statutory examination by the PRC tax authorities.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2023

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET

9. INTANGIBLE ASSETS, NET

The following table presented the Company’s intangible assets as of the respective balance sheet dates:


		Radio									Internal
	Purchased	spectrum	Operating	Technology	Customer		Supplier	Trade	Customer	Non-Complete	use
	software	license	Permits	Platform	relationships	Licenses	relationships	names	contract	Agreement	software	Total
	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB
Intangible assets, cost December 31, 2022	207,565	134,543	1,217,876	38,050	257,183	5,772	39,053	116,266	190,141	1,800	74,224	2,282,473
Accumulated amortization	(139,443)	(83,294)	(56,433)	(18,258)	(235,810)	(3,428)	(34,281)	(48,929)	(68,622)	(1,800)	(53,785)	(744,083)
Impairment	—	(41,259)	—	—	—	—	—	—	—	—	—	(41,259)
Intangible assets, net December 31, 2022	68,122	9,990	1,161,443	19,792	21,373	2,344	4,772	67,337	121,519	—	20,439	1,497,131
Intangible assets, cost December 31, 2023	233,513	136,825	1,199,210	38,050	257,183	5,772	39,053	116,266	190,141	1,800	90,419	2,308,232
Accumulated amortization	(157,081)	(87,145)	(89,226)	(23,739)	(256,888)	(3,812)	(37,299)	(54,742)	(89,002)	(1,800)	(67,020)	(867,754)
Impairment	(802)	(41,959)	—	(14,311)	—	—	—	—	—	—	—	(57,072)
Intangible assets, net December 31, 2023	75,630	7,721	1,109,984	—	295	1,960	1,754	61,524	101,139	—	23,399	1,383,406

Radio spectrum license represented the spectrum license awarded by the Hong Kong Telecommunication Authority. Operating permits relate to the government authorized high-capacity utilities from the assets acquisitions. Customer relationships relate to the relationships that arose as a result of existing customer agreements acquired and is derived from the estimated net cash flows that are expected to be derived from the expected renewal of these existing customer agreements after subtracting the estimated net cash flows from other contributory assets. Licenses mainly represented the telecommunication service license in relation to virtual private network services. Supplier relationships relate to the relationships that arose as a result of existing bandwidth supply agreements with certain network operators, which were valued using a replacement cost method given the relative ease of replacement. Trade names mainly relate to the trade names of Dermot Entities. Customer contract related to existing customer agreements acquired and is derived from the estimated net cash flows that are expected to be derived over the contractual period of the existing customer agreements after subtracting the estimated net cash flows from other contributory assets. Technology platform relates to the TenxCloud Cloud Native Application Platform and Kubedata platform from acquisition of BJ TenxCloud in 2021 and platform software from acquisition of iJoy BVI in 2013.

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 48 years.

See note 2 (p) for details of impairment of intangible assets.

Amortization expenses were approximately RMB94,751, RMB122,470 and RMB128,042 for the years ended December 31, 2021, 2022 and 2023, respectively.

The annual estimated amortization expenses for the intangible assets for each of the next five years are as follows:


		RMB
2024		294,541
2025		153,513
2026		27,877
2027		17,591
2028		11,325
		504,847

ACCRUED EXPENSES AND OTHER PAYABLES (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Jul. 15, 2021
Business Acquisition [Line Items]
Payables for purchase of property, equipment and software	¥ 1,431,547		¥ 1,280,742
Payroll and welfare payables	477,367		433,376
Consideration due to the original shareholders of BJ TenxCloud	229,323		229,323
Liability classified share-based payments	149,612		131,116
Accrued service fees	126,001		66,494
Payables for office supplies and utilities	105,871		69,288
Payables for acquisitions and long-term investments	99,340		47,805
Value-added tax and other taxes payable	35,391		31,706
Interest payables	77,168		35,785
Others	51,482		84,844
Accrued expenses and other payables	¥ 2,783,102	$ 391,992	¥ 2,410,479
Beijing TenxCloud Technology Co., Ltd. ("BJ TenxCloud")
Business Acquisition [Line Items]
Percentage of equity interests acquired				100.00%

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Tables)

12 Months Ended

Dec. 31, 2023

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed balance sheets

Condesed balance sheets


	As of December 31,
	2022	2023
	RMB	RMB
ASSETS
Current assets:
Cash and cash equivalents	7,661	30
Prepaid expenses and other current assets	99,962	192,953
Amounts due from subsidiaries	12,399,253	13,352,240
Total current assets	12,506,876	13,545,223

Non-current assets:
Investments in subsidiaries	1,484,730	—
Total non-current assets	1,484,730	—
Total assets	13,991,606	13,545,223
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other payables	88,225	137,826
Account payables	56	57
Convertible promissory notes	537,778	4,208,495
Amounts due to subsidiaries	896,675	1,225,778
Total current liabilities	1,522,734	5,572,156

Non-current liabilities:
Convertible promissory notes	5,859,259	1,769,946
Derivative liability	—	188,706
Total non-current liabilities	5,859,259	1,958,652
Total liabilities	7,381,993	7,530,808
Shareholders’ equity:
Class A ordinary shares	56	103
Class B ordinary shares	4	4
Class C ordinary shares	—	—
Additional paid-in capital	15,239,926	17,291,312
Accumulated other comprehensive income (loss)	11,022	(14,343)
Accumulated deficit	(8,291,872)	(10,935,708)
Treasury stock	(349,523)	(326,953)
Total shareholders’ equity	6,609,613	6,014,415
Total liabilities and shareholders’ equity	13,991,606	13,545,223

Condensed statements of operations

Conensed statements of operations


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Operating expenses
General and administrative expenses	(275,881)	(36,219)	(24,663)
Operating loss	(275,881)	(36,219)	(24,663)
Other loss	(119,932)	(247,083)	(94,452)
Changes in the fair value of financial liabilities	829,149	22,626	(165,930)
Share of profits (losses) from subsidiaries and Consolidated VIEs	66,762	(515,276)	(2,358,791)
Net income (loss)	500,098	(775,952)	(2,643,836)

Condensed statements of comprehensive (loss) income

Condensed statements of comprehensive income (loss)


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Net income (loss)	500,098	(775,952)	(2,643,836)
Other comprehensive (loss) income, net of tax of nil
Foreign currency translation adjustments, net of tax of nil	(34,908)	101,465	(25,365)
Other comprehensive (loss) income, net of tax of nil	(34,908)	101,465	(25,365)
Comprehensive income (loss)	465,190	(674,487)	(2,669,201)

Condensed statements of cash flows


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Net cash (used in) generated from operating activities	(218,664)	(14,927)	29,940
Net cash generated from (used in) investing activities	113,530	(1,670,058)	(37,571)
Net cash generated from financing activities	143,037	1,592,627	—
Net increase (decrease) in cash and cash equivalents	37,903	(92,358)	(7,631)
Cash and cash equivalents at beginning of the year	62,116	100,019	7,661
Cash and cash equivalents at end of the year	100,019	7,661	30

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of commitments to purchase certain computer and network equipment and construction-in-progress

Purchase commitments

As of December 31, 2023, the Company has the following commitments to purchase certain computer and network equipment and construction-in-progress:


		RMB
For the year ending December 31,
2024		1,435,439
2025		348,096
2026		6,120
2027		7,402
2028		3,744
2029 and thereafter		7
		1,800,808

Schedule of outstanding purchase commitments in relation to bandwidth and cabinet capacity

Purchase commitments

As of December 31, 2023, the Company has outstanding purchase commitments in relation to bandwidth and cabinet capacity consisting of the following:


		RMB
For the year ending December 31,
2024		888,030
2025		227,716
2026		173,244
2027		72,906
2028		7,820
2029 and thereafter		2,627
		1,372,343

FAIR VALUE MEASUREMENTS - Assets and liabilities measured (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value on recurring basis	¥ 356,820	¥ 1,600
Liabilities measured at fair value on recurring basis	5,971,887	5,842,305
Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value on recurring basis	356,820
Available-for-sales Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value on recurring basis		1,600
2025 Convertible promissory notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value on recurring basis		537,778
2026 Convertible promissory notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value on recurring basis	4,196,500	3,446,432
2027 Convertible promissory notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value on recurring basis	1,586,681	1,858,095
Derivative liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value on recurring basis	188,706
Quoted prices in active markets for identical assets and liabilities (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value on recurring basis	4,196,500	3,446,432
Quoted prices in active markets for identical assets and liabilities (Level 1) \| 2026 Convertible promissory notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value on recurring basis	4,196,500	3,446,432
Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value on recurring basis	356,820
Significant other observable inputs (Level 2) \| Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value on recurring basis	356,820
Unobservable inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value on recurring basis		1,600
Liabilities measured at fair value on recurring basis	1,775,387	2,395,873
Unobservable inputs (Level 3) \| Available-for-sales Debt Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Assets measured at fair value on recurring basis		1,600
Unobservable inputs (Level 3) \| 2025 Convertible promissory notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value on recurring basis		537,778
Unobservable inputs (Level 3) \| 2027 Convertible promissory notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value on recurring basis	1,586,681	¥ 1,858,095
Unobservable inputs (Level 3) \| Derivative liability
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Liabilities measured at fair value on recurring basis	¥ 188,706

ACQUISITION OF SUBSIDIARIES (Details) - CNY (¥) ¥ in Thousands			12 Months Ended
	Aug. 05, 2022	Aug. 01, 2022	Dec. 31, 2022	Dec. 31, 2023	Jul. 15, 2021
Net assets acquired:
Goodwill net			¥ 1,364,191
BJ TenxCloud
Business Acquisitions [Abstract]
Equity interests acquired (as a percent)					100.00%
BJ JHC [Member]
Business Acquisitions [Abstract]
Equity interests acquired (as a percent)					100.00%
Kunshan Kunhui Network Co., Ltd. ("KS Kunhui")
Business Acquisitions [Abstract]
Equity interests acquired (as a percent)	100.00%
Net assets acquired:
Cash and cash equivalents	¥ 9,014
Property and equipment, net	92,157
Operating lease right-of-use assets, net	199,255
Deferred tax assets	13,921
Other current assets	289,480
Total assets acquired	692,327
Other current liabilities	(436,124)
Operating lease liabilities	(208,612)
Deferred tax liabilities	(22,125)
Total liabilities assumed	(666,861)
Net assets acquired	25,466
Purchase consideration	50,000
Goodwill net	24,534
Revenue of acquiree since the acquisition date included in the consolidated statement of operations			0
Net profit loss of acquiree since the acquisition date included in the consolidated statement of operations			¥ 24,757
Kunshan Kunhui Network Co., Ltd. ("KS Kunhui") \| Operating permits
Net assets acquired:
Intangible assets	29,000
Kunshan Kunhui Network Co., Ltd. ("KS Kunhui") \| Customer contract
Net assets acquired:
Intangible assets	¥ 59,500
BJ JiangHeCloud
Business Acquisitions [Abstract]
Equity interests acquired (as a percent)		100.00%
Contingent Consideration, cash to be paid		¥ 57,500		¥ 57,500
Net assets acquired:
Purchase consideration		¥ 847,438

ACQUISITION OF SUBSIDIARIES - Acquisitions in 2023 (Details) ¥ in Thousands, $ in Thousands	1 Months Ended
	Mar. 31, 2023 CNY (¥)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
Asset acquisitions
Current assets		¥ 9,823,478	$ 1,383,608	¥ 7,052,276
Property and equipment, net		13,024,393	1,834,447	11,964,498
Land use rights, net		602,503	84,861	576,020
Deferred tax assets		247,644	34,880	196,098
Accrued expenses and other payables		(2,783,102)	(391,992)	(2,410,479)
Deferred tax liabilities		¥ (688,362)	$ (96,954)	¥ (682,580)
Sanhe Mingtai Digital Industrial Park Co., Ltd. (Sanhe Digital)
Asset acquisitions
Current assets	¥ 3
Property and equipment, net	105,538
Land use rights, net	14,258
Deferred tax assets	2,232
Accrued expenses and other payables	(2,277)
Deferred tax liabilities	(2,758)
Total share consideration	¥ 116,996
Asset Acquisition, Percentage Of Acquisition	100.00%
Asset Acquisition, Percentage Of Equity Interests Issued	22.50%

ACCOUNTS AND NOTES RECEIVABLE, NET (Tables)

12 Months Ended

Dec. 31, 2023

ACCOUNTS AND NOTES RECEIVABLE, NET

Schedule of accounts and notes receivable and the allowance for doubtful debt


	As of December 31,
	2022	2023
	RMB	RMB
Accounts receivable	1,897,111	1,903,458
Notes receivable	1,151	873
Allowance for doubtful debt	(134,569)	(188,356)
	1,763,693	1,715,975

Schedule of analysis of the allowance for doubtful debt

As of December 31, 2022 and 2023, 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,
	2021	2022	2023
	RMB	RMB	RMB
Balance at beginning of the year	68,921	99,620	134,569
Additional due to business combination	16,256	—	—
Additional provision charged to expense	14,990	34,949	54,512
Write-off of accounts receivable	(547)	—	(725)
Balance at the end of the year	99,620	134,569	188,356

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of presentation

(b) Principles of consolidation

(d) Foreign currency

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(d) Foreign currency (continued)

(e) Convenience translation

(f) Cash and cash equivalents

(g) Restricted cash

(h) Short-term investments

(i) Accounts receivable and allowance for doubtful debt

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(i) Accounts receivable and allowance for doubtful debt (continued)

(j) Property and equipment


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

(k) Intangible assets

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(k) Intangible assets (continued)

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*		32.1 years
Customer relationships*		8.3 years
Licenses*		15 years
Supplier relationships*		10 years
Trade names*		20 years
Technology platform*		5 years
Non-complete agreements*		5 years
Internal use software		3.4 years
Customer contract*		7 years

*	Acquired in the acquisitions of subsidiaries.

(l) Leases

Leases with an initial lease term of 12 months or less are not recorded on the consolidated balance sheets. Lease expense for these leases is recognized on a straight-line basis over the lease term.

(m) Land use right

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(n) Long-term investments

The Company’s long-term investments primarily consist of equity investments without readily determinable fair value, equity method investments.

(o) Goodwill

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(p) Impairment of long-lived assets

No impairment was recognized for the year ended December 31, 2022 as there was no impairment indicator identified.

The Company determined the fair value of relevant asset group using the income approach based on the discounted cash flows associated with the asset group.

The Company recorded impairment charges associated with its long-lived assets as follows:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Impairment of property and equipment	106,311	—	480,099
Impairment of intangible assets	—	—	15,113
Impairment of right-of-use assets	—	—	11,474
Impairment of other non-current assets	2,956	—	—

(q) Fair value of financial instruments

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(q) Fair value of financial instruments (continued)

(r) Revenue recognition

The Company’s revenue recognition policies are as follows:

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(r) Revenue recognition (continued)

(s) Cost of revenues

(t) Advertising expenditures

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(u) Research and development expenses

(v) Government grants

(w) Capitalized interest

As a result of total interest costs capitalized during the period, the interest expense for the years ended December 31, 2021, 2022 and 2023, was as follows:


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Interest expense and amortization cost of bonds payable	133,959	—	—
Interest expense and amortization cost of 2025, 2026 and 2027 Convertible Notes (Note 19)	25,919	58,350	59,429
Interest expense on bank and other borrowings	103,925	172,328	222,918
Interest expense on finance leases	124,567	104,088	90,679
Total interest costs	388,370	334,766	373,026
Less: Total interest costs capitalized	(53,420)	(61,461)	(60,854)
Interest expense, net	334,950	273,305	312,172

(x) Income taxes

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(x) Income taxes (continued)

(y) Share-based compensation

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(z) Earnings (Loss) per share

(aa) Treasury stock

(bb) Comprehensive income (loss)

(cc) Segment reporting

As substantial all of the Company’s long-lived assets and revenues are located in and derived from the PRC, geographical segments are not presented.

(dd) Employee benefits

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(ee) Recent accounting pronouncements

LEASES - Other information related to leases (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash payments for operating leases	¥ 796,541	¥ 635,615	¥ 593,615
Financing cash payments for finance leases	¥ 210,902	¥ 231,046	¥ 579,660

BONDS PAYABLE

12 Months Ended

Dec. 31, 2023

BONDS PAYABLE.

BONDS PAYABLE

17. BONDS PAYABLE

On April 15, 2019, the Company issued and sold bonds with an aggregate principal amount of US$300,000 at a coupon rate of 7.875% per annum (“2021 Notes”). The 2021 Notes has matured on October 15, 2021. The 2021 Notes were listed and quoted on the SGX-ST. Interest on the 2021 Notes is payable semi-annually in arrears on April 15 and October 15 in each year, beginning from October 15, 2019.

Net proceeds from 2021 Notes after deducting issuance costs were RMB1,976,474. The 2021 Notes are unsecured and rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated to the bonds; equal in right of payment to any of the Company’s liabilities that are not so subordinated, including the 2020 Notes; effectively junior in the right of payment to any secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including accounts payables) of the Company’s subsidiaries and Consolidated VIEs.

On October 4, 2021, the Company repaid the outstanding 2021 Notes with principal amount of US$300,000.

Document and Entity Information - shares	12 Months Ended
Document and Entity Information - shares	Dec. 31, 2023	Dec. 31, 2021
Document and Entity Information
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-35126
Entity Registrant Name	VNET Group, Inc.
Entity Incorporation, State or Country Code	E9
Entity Address, Address Line One	Guanjie Building Southeast 1st Floor
Entity Address, Address Line Two	10# Jiuxianqiao East Road
Entity Address, Address Line Three	Chaoyang District
Entity Address, City or Town	Beijing
Entity Address, Postal Zip Code	100016
Entity Address, Country	CN
Title of 12(b) Security	American depositary shares, each representing six Class A ordinary shares, par value US$0.00001 per share
Trading Symbol	VNET
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Financial Statement error correction	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Auditor Firm ID	1186	1408
Auditor Name	KPMG Huazhen LLP	Ernst & Young Hua Ming LLP
Auditor Location	Beijing, China	Shanghai, the People’s Republic of China
Entity Central Index Key	0001508475
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Amendment Flag	false
Business Contact
Document and Entity Information
Entity Address, Address Line One	Guanjie Building, Southeast 1st Floor
Entity Address, Address Line Two	10# Jiuxianqiao East Road
Entity Address, Address Line Three	Chaoyang District
Entity Address, City or Town	Beijing
Entity Address, Postal Zip Code	100016
Entity Address, Country	CN
Contact Personnel Name	Mr. Qiyu Wang
City Area Code	86
Local Phone Number	10 8456-2121
Common Class A
Document and Entity Information
Entity Common Stock, Shares Outstanding	1,513,609,283
Common Class B
Document and Entity Information
Entity Common Stock, Shares Outstanding	30,721,723
Common Class C
Document and Entity Information
Entity Common Stock, Shares Outstanding	60,000

GOODWILL (Tables)

12 Months Ended

Dec. 31, 2023

GOODWILL.

Schedule of changes in the carrying amount of goodwill


	For the years ended December 31,
	2022	2023
	RMB	RMB
Balance as of January 1
Goodwill, gross	1,339,657	1,364,191
Accumulated impairment losses	—	—
Goodwill, net	1,339,657	1,364,191
Goodwill acquired	24,534	—
Impairment	—	(1,364,191)
Balance as of December 31
Goodwill, gross	1,364,191	1,364,191
Accumulated impairment losses	—	(1,364,191)
Goodwill, net	1,364,191	—

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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-Subparagraph (g)
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-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

INTANGIBLE ASSETS, NET - Amortization expenses (Details) ¥ in Thousands	Dec. 31, 2023 CNY (¥)
INTANGIBLE ASSETS, NET
2024	¥ 294,541
2025	153,513
2026	27,877
2027	17,591
2028	11,325
Annual estimated amortization expenses for intangible assets	¥ 504,847

PROPERTY AND EQUIPMENT, NET - Property and equipment, held under capital leases (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	¥ 17,171,494		¥ 14,866,510
Less: Accumulated depreciation	(6,987,542)		(5,548,663)
Property plant and equipment net excluding construction in progress	10,183,952		9,317,847
Construction-in-progress	3,444,237		2,770,348
Impairment	(603,796)		(123,697)
Property and equipment, net	13,024,393	$ 1,834,447	11,964,498
Property
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	2,672,822		2,236,257
Leasehold improvements
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	5,821,394		4,819,257
Computer and network equipment
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	8,437,075		7,577,082
Optical fibers
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	142,723		142,723
Office equipment
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	93,543		87,093
Motor vehicles
PROPERTY AND EQUIPMENT, NET
Property and equipment, gross	¥ 3,937		¥ 4,098

CONCENTRATION OF RISKS (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥) customer item	Dec. 31, 2022 CNY (¥) customer item	Dec. 31, 2021 customer item	Dec. 31, 2023 USD ($) item	Dec. 31, 2022 USD ($) item
CONCENTRATION OF RISKS
Depreciation (appreciation) of RMB against US$	1.70%	9.20%	(2.30%)
Customer Concentration Risk
CONCENTRATION OF RISKS
Number of customers who contributed more than 2% of Company's revenue \| customer	0	0	0
Cabinet and Bandwidth Supply
CONCENTRATION OF RISKS
Number of suppliers \| item	5	5	5	5	5
Bandwidth and Cabinet Resources \| Supplier Concentration Risk \| Largest five suppliers
CONCENTRATION OF RISKS
Concentration of risk, percentage	42.00%	35.00%	39.00%
Bandwidth and Cabinet Resources \| Customer Concentration Risk \| Largest single customer \| Maximum
CONCENTRATION OF RISKS
Concentration of risk, percentage	10.00%	10.00%	10.00%
Bandwidth and Cabinet Resources \| Customer Concentration Risk \| Aggregate local subsidiaries of a telecommunication carrier
CONCENTRATION OF RISKS
Concentration of risk, percentage	5.00%	6.00%	6.00%
Bandwidth and Cabinet Resources \| Customer Concentration Risk \| Customers on a stand-alone basis \| Minimum
CONCENTRATION OF RISKS
Concentration of risk, percentage	2.00%	2.00%	2.00%
PRC \| Credit Concentration Risk
CONCENTRATION OF RISKS
Cash and cash equivalents, restricted cash and short-term investments, held at major institutions \| ¥	¥ 2,431,089	¥ 2,677,823
Outside the PRC \| Credit Concentration Risk
CONCENTRATION OF RISKS
Cash and cash equivalents, restricted cash and short-term investments, held at major institutions \| $				$ 426,022	$ 455,187

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) ¥ in Thousands, $ in Thousands	1 Months Ended
	Dec. 31, 2022 CNY (¥)	Sep. 30, 2021 CNY (¥)	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Prepaid expenses	¥ 988,467		¥ 1,344,525
Tax recoverables	620,901		907,629
Deposits	59,653		33,941
Loan to third parties	376,851		5,787
Staff advances	2,992		2,518
Interest receivables	544		532
Prepaid expenses and other current assets	2,147,500		2,375,341	$ 334,560
Nonrelated Party [Member]
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Others	98,092		80,409
Shareholders of KS Kunhui
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Loan to third parties	¥ 279,500		194,500
Loans Receivable. Interest Rate	7.50%
Proceeds From Repayments Of Loans By Third Parties			¥ 85,000
Minimum
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Debt Instrument, Term	4 months
Maximum
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Debt Instrument, Term	6 months
Another Third Party
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Loan to third parties		¥ 93,400
Loan To Another Third Party
PREPAID EXPENSES AND OTHER CURRENT ASSETS
Loans Receivable, Term		18 months

LONG-TERM INVESTMENTS, NET (Tables)

12 Months Ended

Dec. 31, 2023

LONG-TERM INVESTMENTS, NET

Schedule of long-term investments


	As of December 31,
	2022	2023
	RMB	RMB
Equity investments without readily determinable fair values	17,137	19,821
Equity method investments	223,457	738,128
Available-for-sale debt investments	1,600	—
	242,194	757,949

Schedule of equity method investments

Equity method investments:


					Increase (decrease)
					during
					the year ended
	As of December 31, 2021				December 31, 2022			As of December 31, 2022
		Share		Investments		Share	Distribution/derecognize		Share	Impairment	Investments
	Cost of	equity	Impairment of	in equity	Cost of	equity gain	of share equity	Cost of	equity gain	of	in equity
	investments	loss	investment	investee	investments	(loss)	(gain) loss	investments	(loss)	investment	investee
	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB
Yizhuang Fund	101,000	(32,285)	—	68,715	—	3,159	(71,874)	—	—	—	—
Jingliang Inter Cloud	6,000	(5,013)	—	987	—	(4)	—	6,000	(5,017)	—	983
Jingliang Century Cloud	4,000	—	—	4,000	—	—	—	4,000	—	—	4,000
ZJK Energy	5,907	(3,816)	—	2,091	—	16	—	5,907	(3,800)	—	2,107
WiFire Entities	20,000	(20,000)	—	—	—	—	—	20,000	(20,000)	—	—
Qidi Chengxin	3,930	(217)	—	3,713	—	(116)	—	3,930	(333)	—	3,597
BJ Chaohulian	5,000	(1,505)	(3,495)	—	—	—	—	5,000	(1,505)	(3,495)	—
Dexin Tonglian	—	—	—	—	3,000	(333)	—	3,000	(333)	—	2,667
SH Edge Interchange*	—	—	—	—	900	(797)	—	900	(797)	—	103
Changzhou Gaoxin	—	—	—	—	210,000	—	—	210,000	—	—	210,000
	145,837	(62,836)	(3,495)	79,506	213,900	1,925	(71,874)	258,737	(31,785)	(3,495)	223,457


					Increase (decrease)
					during
					the year ended
	As of December 31, 2022				December 31, 2023			As of December 31, 2023
		Share	Impairment	Investments		Share	Distribution/derecognize		Share	Impairment	Investments
	Cost of	equity	of	in equity	Cost of	equity gain	of share equity	Cost of	equity	of	in equity
	investments	loss	investment	investee	investments	(loss)	(gain)loss	investments	gain (loss)	investment	investee
	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB	RMB
Jingliang Inter Cloud	6,000	(5,017)	—	983	—	(2)	—	6,000	(5,019)	—	981
Jingliang Century Cloud	4,000	—	—	4,000	—	—	—	4,000	—	—	4,000
ZJK Energy	5,907	(3,800)	—	2,107	—	(45)	—	5,907	(3,845)	—	2,062
WiFire Entities	20,000	(20,000)	—	—	(20,000)	—	20,000	—	—	—	—
Qidi Chengxin	3,930	(333)	—	3,597	—	(119)	—	3,930	(452)	—	3,478
BJ Chaohulian	5,000	(1,505)	(3,495)	—	—	—	—	5,000	(1,505)	(3,495)	—
Dexin Tonglian	3,000	(333)	—	2,667	—	(475)	—	3,000	(808)	—	2,192
SH Edge Interchange*	900	(797)	—	103	—	(103)	—	900	(900)	—	—
Changzhou Gaoxin	210,000	—	—	210,000	488,392	5,107	—	698,392	5,107	—	703,499
Zhuhai Private	—	—	—	—	23,000	(1,084)	—	23,000	(1,084)	—	21,916
	258,737	(31,785)	(3,495)	223,457	491,392	3,279	20,000	750,129	(8,506)	(3,495)	738,128

*	“SH Edge Interchange” represents Shanghai Edge Cloud Interchange Technology Co., Ltd.

PREPAID EXPENSES AND OTHER CURRENT ASSETS - Analysis of the allowance for doubtful debt in relation to other receivables (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Analysis of the allowance for doubtful debt in relation to other receivables
Balance at beginning of the year	¥ 131,624	¥ 130,908
Addition	313,993	15,460
Write-off		(15,000)
Foreign exchange difference	52	256
Balance at the end of the year	¥ 445,669	¥ 131,624

RESTRICTED NET ASSETS (Details) - CNY (¥) ¥ in Thousands	Dec. 31, 2023	Dec. 31, 2022
RESTRICTED NET ASSETS.
Minimum required percentage of annual after-tax profit to the general statutory reserve	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%
Statutory reserves	¥ 80,615	¥ 77,995
Restricted net asset, PRC generally accepted accounting principles (in RMB) or (in dollars)	¥ 15,231,710

INTANGIBLE ASSETS, NET - Additional Information (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Weighted average useful lives of intangible assets
Intangible assets, amortization expenses	¥ 128,042	¥ 122,470	¥ 94,751
Minimum
Weighted average useful lives of intangible assets
Estimated useful life of intangible assets	1 year
Maximum
Weighted average useful lives of intangible assets
Estimated useful life of intangible assets	48 years

LEASES (Tables)

12 Months Ended

Dec. 31, 2023

LEASES

Schedule of weighted-average remaining lease term and weighted-average discount rate


	As of December 31,
	2022		2023
Weighted average remaining lease term:
Operating lease	10.7 years		9.7 years
Finance lease	18.9 years		18.7 years

Weighted average discount rate:
Operating lease	7.50	%	7.59	%
Finance lease	10.44	%	10.04	%

Schedule of total lease cost


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Lease cost
Finance lease cost:
Depreciation	274,052	224,140	199,926
Interest expenses	124,567	104,088	90,679
Operating lease cost	568,044	691,197	749,800
Total lease cost	966,663	1,019,425	1,040,405

Schedule of supplemental cash flow information related to leases


	For the years ended December 31,
	2021	2022	2023
	RMB	RMB	RMB
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash payments for operating leases	593,615	635,615	796,541
Financing cash payments for finance leases	579,660	231,046	210,902

Schedule of future lease payments under operating leases and finance leases


	Operating Leases	Finance Leases
	RMB	RMB
2024	807,678	180,355
2025	739,747	173,799
2026	680,034	165,015
2027	545,468	158,978
2028	528,173	156,920
2029 and thereafter	2,630,069	1,705,594
Total future lease payments	5,931,169	2,540,661
Less: Imputed interest	(1,880,246)	(1,265,329)
Present value of future lease payments*	4,050,923	1,275,332

*	Present value of future operating lease payments consisted of current portion of operating lease liabilities and non-current portion of operating lease liabilities, amounting to RMB780,164 and RMB3,270,759 for the year ended December 31, 2023, respectively.

TAXATION - Movements of the valuation allowance (Details) - CNY (¥) ¥ in Thousands	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Movements of the valuation allowance
Balance at beginning of year	¥ 397,457	¥ 261,960
Addition	606,071	135,732
Expiration	(47,790)	(235)
Balance at end of year	¥ 955,738	¥ 397,457

LAND USE RIGHTS, NET (Tables)

12 Months Ended

Dec. 31, 2023

LAND USE RIGHTS, NET.

Land use rights


	As of December 31,
	2022	2023
	RMB	RMB
Cost	617,808	664,272
Accumulated amortization	(41,788)	(61,769)
Land use rights, net	576,020	602,503

Carrying value of land use rights pledged by company to secure banking borrowings


	As of December 31,
	2022	2023
	RMB	RMB
Land use rights	115,895	196,195

LAND USE RIGHTS, NET - Land use rights amortized (Details) ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
LAND USE RIGHTS, NET.
Cost	¥ 664,272		¥ 617,808
Accumulated amortization	(61,769)		(41,788)
Land use rights, net	¥ 602,503	$ 84,861	¥ 576,020

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Interest expenses (Details) ¥ in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2021 CNY (¥)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Interest expense and amortization cost of bonds payable				¥ 133,959
Interest expense and amortization cost of 2025 and 2026 Convertible Notes (Note 19)	¥ 59,429		¥ 58,350	25,919
Interest expense on bank and other borrowings	222,918		172,328	103,925
Interest expense on finance leases	90,679		104,088	124,567
Total interest costs	373,026		334,766	388,370
Less: Total interest costs capitalized	(60,854)		(61,461)	(53,420)
Interest expenses, net	¥ 312,172	$ 43,969	¥ 273,305	¥ 334,950

- Definition

Amount of the cost of borrowed funds accounted for as interest expense.

+ References + Details

SHARE BASED COMPENSATION - Additional Information (Details) $ / shares in Units, ¥ in Thousands, $ in Thousands				12 Months Ended
	Jul. 15, 2021	Oct. 30, 2015 shares	Jul. 16, 2010 shares	Dec. 31, 2023 CNY (¥) shares	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 CNY (¥) shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 CNY (¥) shares	Dec. 31, 2021 USD ($) $ / shares shares	Dec. 31, 2023 USD ($) shares	May 13, 2020 shares	May 29, 2014 shares
SHARE-BASED COMPENSATION
Share based compensation, RSUs granted				1,368,227	1,368,227
Share based compensation, fair value of shares exercised during the period \| $					$ 0		$ 4		$ 122
Aggregate intrinsic value of options exercise \| $					$ 0		$ 2		$ 67
Unrecognized share-based compensation cost \| ¥				¥ 0
Compensation cost \| ¥				18,496		¥ 75,960		¥ 55,156
Compensation cost \| ¥				¥ 149,612		¥ 131,116
BJ TenxCloud
SHARE-BASED COMPENSATION
Percentage of equity interests acquired	100.00%
Performance Based Awards
SHARE-BASED COMPENSATION
Share based compensation, RSUs granted				20,550	20,550	866,716	866,716	3,534,767	3,534,767
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				1,388,777	1,388,777
Aggregate fair value, unvested				¥ 52,568						$ 7,404
Weighted-average grant-date fair value \| $ / shares					$ 2.96		$ 5.48		$ 12.31
Total fair value vested \| $					$ 2,557		$ 6,883		$ 42,672
Unrecognized share-based compensation cost				¥ 34,916						$ 4,918
Unrecognized compensation costs, weighted-average recognition period				1 year 1 month 6 days	1 year 1 month 6 days
Minimum Performance Target
SHARE-BASED COMPENSATION
Share based compensation, RSUs granted				0	0	22,000	22,000	298,454	298,454
Maximum \| BJ TenxCloud
SHARE-BASED COMPENSATION
Requisite service period	36 months
Maximum \| Restricted Stock Units (RSUs)
SHARE-BASED COMPENSATION
Share based compensation, option vesting period				4 years	4 years
Minimum \| BJ TenxCloud
SHARE-BASED COMPENSATION
Requisite service period	12 months
Minimum \| Restricted Stock Units (RSUs)
SHARE-BASED COMPENSATION
Share based compensation, option vesting period				2 years	2 years
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				359,202		359,202				359,202
Share based compensation, aggregate intrinsic value				¥ 809						$ 114
Share based compensation, fair value of option outstanding at grant date \| ¥				¥ 5,211
2010 Plan \| Maximum
SHARE-BASED COMPENSATION
Share based compensation, maximum aggregate number of ordinary shares to be issued			39,272,595
Share based compensation, option vesting period			4 years
2010 Plan \| Minimum
SHARE-BASED COMPENSATION
Share based compensation, option vesting period			3 years
2010 Plan and 2014 Plan \| Common Class A
SHARE-BASED COMPENSATION
Shares reserved for future issuance under the plan											7,562,532
2020 Plan
SHARE-BASED COMPENSATION
Percentage of share capital considered for Maximum shares issuable under the plan											5.00%
2020 Plan \| Common Class A
SHARE-BASED COMPENSATION
Share based compensation, maximum aggregate number of ordinary shares to be issued											46,560,708

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2023

PREPAID EXPENSES AND OTHER CURRENT ASSETS

Schedule of prepaid expenses and other current assets


	As of December 31,
	2022	2023
	RMB	RMB
Prepaid expenses (1)	988,467	1,344,525
Tax recoverable	620,901	907,629
Deposits	59,653	33,941
Loans to third parties (2)	376,851	5,787
Staff advances	2,992	2,518
Interest receivables	544	532
Others	98,092	80,409
	2,147,500	2,375,341

(1)	Prepaid expenses mainly represented the unamortized portion of prepayments made to Microsoft for the cloud services, the prepayments to telecommunication operators for bandwidth, data centers or cabinets and the prepayments for office expense.

(2)

Schedule of allowance for doubtful debt


	For the years ended December 31,
	2022	2023
	RMB	RMB
Balance at beginning of the year	130,908	131,624
Addition	15,460	313,993
Write-off	(15,000)	—
Foreign exchange difference	256	52
Balance at the end of the year	131,624	445,669

SHARE CAPITAL

12 Months Ended

Dec. 31, 2023

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 sale, transfer, assignment or disposition of Class B ordinary shares by a holder thereof to any person or entity who is not an existing holder of such Class B ordinary shares, the founder, an affiliate of the founder, or a founder affiliate, or upon a change of control of the ultimate beneficial ownership of any Class B ordinary shares to any person or entity who is not an existing holder of Class B ordinary shares, the founder, an affiliate of the founder, or a founder affiliate, such Class B ordinary shares will be automatically and immediately converted into an equal number of Class A ordinary shares. Upon any any sale, transfer, assignment or disposition of Class C ordinary shares by a holder thereof to any person or entity which is not an affiliate of such holder, such Class C Ordinary Shares will be automatically and immediately converted into an equal number of Class A ordinary shares.

During the year ended December 31, 2021, Purchaser of the 2025 Convertible Notes exercised the right to convert approximately 42.3% of the total principal amount issued to 42,401,010 newly issued Class A ordinary shares at the conversion price of US$12 per ADS.

On March 1, 2021, 150,000 Series A Preferred Shares were converted into 54,507,816 Class A Ordinary Shares.

In April 2021, the Company repurchased from Tuspark Innovation Venture Ltd., (“Tuspark”) 48,634,493 Class B ordinary shares for an aggregate purchase price of US$260.0 million. The repurchase price was at US$5.346 per ordinary share, or US$32.076 per ADS. 48,634,493 Class B ordinary shares were cancelled immediately. Meanwhile, remaining 62,418,897 Class B ordinary shares held by Tuspark were converted into the same number of Class A ordinary shares of the Company.

On August 19, 2021, 4,100,000 Class B ordinary shares held by Sunrise Corporate Holding Ltd., were converted into the same number of Class A ordinary shares.

During the year ended December 31, 2021, 16,680,000 Class A ordinary shares were issued to settle the share options exercised and RSUs vested.

During the year ended December 31, 2021, the Company issued 7,800,000 Class A ordinary shares to its share depositary bank which will be used to settle stock option awards upon their exercise. No consideration was received by the Company for this issuance of ordinary shares. These ordinary shares are legally issued and outstanding but are treated as escrowed shares for accounting purposes.

On January 27, 2022, the Company’s board of directors authorized the issuance of 300,000 Series A-1 perpetual convertible preferred shares by re-designation of the authorized but unissued Class A Ordinary Shares. As of December 31, 2023, no Series A-1 perpetual convertible preferred shares have been issued.

On February 15, 2023, the Company’s board of directors approved and authorized the issuance of up to 555,000 newly created Class D ordinary shares to Mr. Sheng Chen by re-designation of the authorized but unissued Class A Ordinary Shares. The Class D ordinary shares will have the same rights as the Company’s Class B ordinary shares except for voting rights. Each Class D ordinary share shall be entitled to 500 votes on all matters submitted to shareholder vote. As of December 31, 2023, no Class D ordinary shares have been issued.

Pursuant to the shareholder resolution adopted on October 5, 2023, the Company’s authorized share capital was increased by creation of an additional 1,500,000,000 Class A ordinary shares.

During the year ended December 31, 2023, 3,252,768 treasury stock was reissued to settle the share options exercised and RSUs vested.

27. SHARE CAPITAL (CONTINUED)

In December 2023, the Company issued 455,296,932 Class A ordinary shares to Success Flow International Investment Limited (“Success Flow”) and 195,127,260 Class A ordinary shares to Choice Faith Group Holdings Limited (“Choice Faith”), for an aggregate cash consideration of RMB2,122,123. Both entities were controlled by Shandong Hi-Speed Holdings Group Limited. The issuance costs for Class A ordinary shares were RMB37,720. In connection with the financing transaction, in November 2023, Mr. Sheng Chen, the Founder and Executive Chairman of the Board of Directors, and his affiliated investment vehicles (together with Mr. Sheng Chen, the “Founder Parties”) entered into a voting and consortium agreement (the “Voting and Consortium Agreement”) with Success Flow and Choice Faith. Pursuant to the Voting and Consortium Agreement, Success Flow shall vote in accordance with any voting instructions provided by the Founder Parties during the period beginning on the earlier of February 29, 2024 or sixty calendar days after the closing date of the investment and ending upon the third anniversary of the closing date of the investment. In December 2023, the Founder Parties entered into a supplemental agreement with the investors, pusuant to which, the period of the Voting and Consortium Agreement was amended to commence upon the later of (i) the expiration or termination of Interim Period and (ii) the occurrence of the Triggering Event. “Interim Period” means the period commencing on the date of closing, being December 28, 2023, and ending on the earlier of (x) February 29, 2024 and (y) termination of the Investment Agreement in accordance the terms thereunder. “Triggering Event” means the entry by the Company of a framework agreement with a third party, pursuant to which the parties agree to enter into a long-term strategic partnership for not less than two years in relation to the low carbon strategy of the Company and/or the expansion of the operations of the Company in Hong Kong, Taiwan and/or other territories outside mainland China.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2023

BORROWINGS

Schedule of borrowings and thier securities


	As of December 31,
	2022	2023
	RMB	RMB
Short term bank borrowings	—	30,000
Long-term bank borrowings, current portion	289,941	334,511
Other long-term borrowings, current portion	194,079	388,814
	484,020	753,325
Long-term bank borrowings, non-current portion	2,694,249	4,170,981
Other long-term borrowings, non-current portion	355,607	942,540
Total borrowings	3,533,876	5,866,846

December 31, 2022


Long-term borrowings (including current portion)		Secured by
(RMB)
1,879,631		Secured by a subsidiary’s share.
800,989		Secured by a subsidiary’s land-use right with net book value of RMB24,460 (Note 10).
247,171		Secured by a subsidiary’s property and equipment and land-use right with net book value of RMB118,050 and RMB91,435, respectively (Note 8/Note 10), and a subsidiary’s share.
156,077		Secured by a subsidiary’s property and equipment with net book value of RMB231,424 (Note 8), and a subsidiary’s share.
450,008		Unsecured borrowing.
3,533,876

14. BORROWINGS (CONTINUED)

December 31, 2023



Short-term borrowings		Secured by
(RMB)
30,000		Unsecured borrowing.

Long-term borrowings (including current portion)		Secured by
(RMB)
2,180,490		Secured by a subsidiary’s share.
3,101,522		Secured by property and equipment and land-use right with net book value of RMB845,898 and RMB196,195, respectively (Note 8/Note 10), and a subsidiary’s share
554,834		Unsecured borrowing.
5,836,846

Schedule of repayments of the principal amounts of the Company's long-term borrowings, including bank and other borrowings


		RMB
For the years ending December 31,
2024		799,314
2025		816,677
2026		751,209
2027		683,110
2028		689,511
2029 and thereafter		2,273,233

CONSOLIDATED BALANCE SHEETS ¥ in Thousands, $ in Thousands	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)
Current assets:
Cash and cash equivalents	¥ 2,243,537	$ 315,996	¥ 2,661,321
Restricted cash	2,854,568	402,057	327,673
Accounts and notes receivable (net of allowance for doubtful debt of RMB134,569 and RMB188,356 as of December 31, 2022 and 2023, respectively)	1,715,975	241,690	1,763,693
Short-term investments	356,820	50,257
Prepaid expenses and other current assets	2,375,341	334,560	2,147,500
Total current assets	9,823,478	1,383,608	7,052,276
Non-current assets:
Property and equipment, net	13,024,393	1,834,447	11,964,498
Intangible assets, net	1,383,406	194,849	1,497,131
Land use rights, net	602,503	84,861	576,020
Operating lease right-of-use assets, net	4,012,329	565,125	3,503,925
Goodwill net			1,364,191
Restricted cash	882	124	500
Deferred tax assets, net	247,644	34,880	196,098
Long-term investments, net	757,949	106,755	242,194
Other non-current assets	533,319	75,116	551,572
Total non-current assets	20,562,425	2,896,157	19,896,129
Total assets	30,385,903	4,279,765	26,948,405
Current liabilities:
Accounts and notes payable (including amounts of Consolidated VIEs without recourse to the Company of RMB483,030 and RMB493,837 as of December 31, 2022 and 2023, respectively)	696,177	98,054	713,628
Short-term bank borrowings (including amounts of Consolidated VIEs without recourse to the Company of RMB30,000 as of December 31, 2023)	30,000	4,225
Accrued expenses and other payables (including amounts of Consolidated VIEs without recourse to the Company of RMB1,488,031 and RMB1,616,423 as of December 31, 2022 and 2023, respectively)	2,783,102	391,992	2,410,479
Advances from customers (including amounts of Consolidated VIEs without recourse to the Company of RMB1,157,963 and RMB1,605,247 as of December 31, 2022 and 2023, respectively)	1,605,247	226,094	1,157,963
Deferred revenue (including amounts of Consolidated VIEs without recourse to the Company of RMB84,775 and RMB83,546 as of December 31, 2022 and 2023, respectively)	95,477	13,448	95,078
Income taxes payable (including amounts of Consolidated VIEs without recourse to the Company of RMB25,188 and RMB13,531 as of December 31, 2022 and 2023, respectively)	35,197	4,957	42,017
Current portion of long-term borrowings (including amounts of Consolidated VIEs without recourse to the Company of RMB417,442 and RMB544,803 as of December 31, 2022 and 2023, respectively)	723,325	101,878	484,020
Current portion of finance lease liabilities (including amounts of Consolidated VIEs without recourse to the Company of RMB165,221 and RMB97,388 as of December 31, 2022 and 2023, respectively)	115,806	16,311	206,260
Current portion of deferred government grants (including amounts of Consolidated VIEs without recourse to the Company of RMB3,646 and RMB8,062 as of December 31, 2022 and 2023, respectively)	8,062	1,136	3,646
Current portion of operating lease liabilities (including amounts of Consolidated VIEs without recourse to the Company of RMB655,663 and RMB754,935 as of December 31, 2022 and 2023, respectively)	780,164	109,884	674,288
Convertible promissory notes	4,208,495	592,754	537,778
Total current liabilities	11,437,132	1,610,886	6,332,085
Non-current liabilities:
Long-term borrowings (including amounts of Consolidated VIEs without recourse to the Company of RMB1,861,545 and RMB2,464,811 as of December 31, 2022 and 2023, respectively)	5,113,521	720,224	3,049,856
Convertible promissory notes	1,769,946	249,292	5,859,259
Derivative liability	188,706	26,579
Non-current portion of finance lease liabilities (including amounts of Consolidated VIEs without recourse to the Company of RMB615,309 and RMB720,954 as of December 31, 2022 and 2023, respectively)	1,159,525	163,316	1,047,640
Unrecognized tax benefits (including amounts of Consolidated VIEs without recourse to the Company of RMB86,799 and RMB98,082 as of December 31, 2022 and 2023, respectively)	98,457	13,867	87,174
Deferred tax liabilities (including amounts of Consolidated VIEs without recourse to the Company of RMB149,475 and RMB139,174 as of December 31, 2022 and 2023, respectively)	688,362	96,954	682,580
Deferred government grants (including amounts of Consolidated VIEs without recourse to the Company of RMB2,726 and RMB11,862 as of December 31, 2022 and 2023, respectively)	145,112	20,439	2,672
Non-current portion of operating lease liabilities (including amounts of Consolidated VIEs without resource to the Company of RMB2,872,323 and RMB3,230,506 as of December 31, 2022 and 2023, respectively)	3,270,759	460,677	2,905,283
Total non-current liabilities	12,434,388	1,751,348	13,634,464
Total liabilities	23,871,520	3,362,234	19,966,549
Commitments and contingencies
Shareholders' equity:
Additional paid-in capital	17,291,312	2,435,430	15,239,926
Accumulated other comprehensive income (loss)	(14,343)	(2,020)	11,022
Statutory reserves	80,615	11,354	77,996
Accumulated deficit	(11,016,323)	(1,551,617)	(8,369,868)
Treasury stock	(326,953)	(46,050)	(349,523)
Total VNET Group, Inc. shareholders' equity	6,014,415	847,112	6,609,613
Noncontrolling interest	499,968	70,419	372,243
Total shareholders' equity	6,514,383	917,531	6,981,856
Total liabilities and shareholders' equity	30,385,903	4,279,765	26,948,405
Related Party [Member]
Current assets:
Amounts due from related parties	277,237	39,048	152,089
Current liabilities:
Amounts due to related parties (including amounts of Consolidated VIEs without recourse to the Company of RMB6,928 and RMB356,080 as of December 31, 2022 and 2023, respectively)	356,080	50,153	6,928
Common Class A
Shareholders' equity:
Ordinary shares	103	14	56
Common Class B
Shareholders' equity:
Ordinary shares	¥ 4	$ 1	¥ 4

PERPETUAL CONVERTIBLE PREFERRED SHARES - Additional Information (Details) $ / shares in Units, ¥ in Thousands		1 Months Ended	12 Months Ended
	Mar. 01, 2021 USD ($) $ / shares shares	Jun. 30, 2020 USD ($) $ / shares shares	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 CNY (¥) $ / shares	Dec. 31, 2021 shares
Class A Ordinary Shares
Class of Stock [Line Items]
Number of shares issued \| shares		150,000			16,680,000
Subscription price (in dollars per share)		$ 1,000
Dividend rate (as a percent)			4.50%
Period after which Series A Preferred Shares will be mandatorily converted into Class A ordinary shares			6 months
Conversion price per share				$ 2.8333
Beneficial conversion feature \| ¥			¥ 470,643
Convertible shares \| $	$ 150,000
Preferred stock, convertible, conversion price	$ 17.00
Total issuance for converted preferred stock \| shares	54,507,816
American Depository Shares
Class of Stock [Line Items]
Total cash consideration \| $		$ 150,000,000
Cumulative dividends \| ¥			¥ 28,637	$ 28,637
Conversion Threshold (as percent)			200.00%
Conversion price per share				$ 17.00