cd-20f_20211231.htm
0001807192 --12-31 false FY true P4Y 0 0 0 0 0 2016 2017 2018 2019 2020 2021 P5Y P3Y P8Y6M10D 0 0 0 0 0 0 0 0 0 P4Y 0 0 0 0 http://fasb.org/us-gaap/2021-01-31#OperatingLeaseLiabilityCurrent http://fasb.org/us-gaap/2021-01-31#OperatingLeaseLiabilityCurrent http://fasb.org/us-gaap/2021-01-31#OperatingLeaseLiabilityCurrent http://fasb.org/us-gaap/2021-01-31#OperatingLeaseLiabilityNoncurrent http://fasb.org/us-gaap/2021-01-31#OperatingLeaseLiabilityNoncurrent http://fasb.org/us-gaap/2021-01-31#OperatingLeaseLiabilityNoncurrent http://fasb.org/us-gaap/2021-01-31#OperatingLeaseLiability http://fasb.org/us-gaap/2021-01-31#OperatingLeaseLiability http://fasb.org/us-gaap/2021-01-31#FinanceLeaseLiability http://fasb.org/us-gaap/2021-01-31#FinanceLeaseLiability P13Y8M4D P12Y5M4D P27Y25D P26Y1M2D 0.3965 0.41 0.0057 0.0131 0.0190 0.0182 0.4053 0.43 2.32 4.02 14.00 8.27 0001807192 2021-01-01 2021-12-31 xbrli:shares 0001807192 us-gaap:CommonClassAMember 2021-12-31 0001807192 us-gaap:CommonClassBMember 2021-12-31 iso4217:CNY 0001807192 cd:AmericanDepositarySharesCommonClassAOneMember 2021-01-01 2021-12-31 0001807192 cd:AmericanDepositarySharesCommonClassATwoMember 2021-01-01 2021-12-31 0001807192 dei:BusinessContactMember 2021-01-01 2021-12-31 0001807192 2020-12-31 0001807192 2021-12-31 iso4217:USD 0001807192 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember us-gaap:NonrecourseMember 2020-12-31 0001807192 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember us-gaap:NonrecourseMember 2021-12-31 iso4217:USD xbrli:shares 0001807192 us-gaap:CommonClassAMember 2020-12-31 0001807192 us-gaap:CommonClassBMember 2020-12-31 0001807192 cd:ColocationServicesMember cd:ThirdPartyMember 2019-01-01 2019-12-31 0001807192 cd:ColocationServicesMember cd:ThirdPartyMember 2020-01-01 2020-12-31 0001807192 cd:ColocationServicesMember cd:ThirdPartyMember 2021-01-01 2021-12-31 0001807192 cd:ColocationServicesMember cd:RelatedPartyMember 2019-01-01 2019-12-31 0001807192 cd:ColocationServicesMember cd:RelatedPartyMember 2020-01-01 2020-12-31 0001807192 cd:ColocationServicesMember 2019-01-01 2019-12-31 0001807192 cd:ColocationServicesMember 2020-01-01 2020-12-31 0001807192 cd:ColocationServicesMember 2021-01-01 2021-12-31 0001807192 cd:ColocationRentalMember 2019-01-01 2019-12-31 0001807192 cd:ColocationRentalMember 2020-01-01 2020-12-31 0001807192 cd:ColocationRentalMember 2021-01-01 2021-12-31 0001807192 us-gaap:ServiceOtherMember 2019-01-01 2019-12-31 0001807192 us-gaap:ServiceOtherMember 2020-01-01 2020-12-31 0001807192 us-gaap:ServiceOtherMember 2021-01-01 2021-12-31 0001807192 2019-01-01 2019-12-31 0001807192 2020-01-01 2020-12-31 iso4217:CNY xbrli:shares 0001807192 us-gaap:CommonStockMember 2018-12-31 0001807192 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001807192 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0001807192 us-gaap:RetainedEarningsMember 2018-12-31 0001807192 us-gaap:ParentMember 2018-12-31 0001807192 2018-12-31 0001807192 us-gaap:RetainedEarningsMember 2019-01-01 2019-12-31 0001807192 us-gaap:ParentMember 2019-01-01 2019-12-31 0001807192 us-gaap:NoncontrollingInterestMember 2019-01-01 2019-12-31 0001807192 us-gaap:CommonStockMember 2019-01-01 2019-12-31 0001807192 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-12-31 0001807192 cd:StatutoryReservesMember 2019-01-01 2019-12-31 0001807192 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01 2019-12-31 0001807192 us-gaap:CommonStockMember 2019-12-31 0001807192 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001807192 cd:StatutoryReservesMember 2019-12-31 0001807192 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31 0001807192 us-gaap:RetainedEarningsMember 2019-12-31 0001807192 us-gaap:ParentMember 2019-12-31 0001807192 2019-12-31 0001807192 us-gaap:RetainedEarningsMember 2020-01-01 2020-12-31 0001807192 us-gaap:ParentMember 2020-01-01 2020-12-31 0001807192 us-gaap:CommonStockMember 2020-01-01 2020-12-31 0001807192 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-12-31 0001807192 cd:StatutoryReservesMember 2020-01-01 2020-12-31 0001807192 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01 2020-12-31 0001807192 us-gaap:CommonStockMember 2020-12-31 0001807192 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001807192 cd:StatutoryReservesMember 2020-12-31 0001807192 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-12-31 0001807192 us-gaap:RetainedEarningsMember 2020-12-31 0001807192 us-gaap:ParentMember 2020-12-31 0001807192 us-gaap:RetainedEarningsMember us-gaap:AccountingStandardsUpdate201613Member 2020-12-31 0001807192 us-gaap:ParentMember us-gaap:AccountingStandardsUpdate201613Member 2020-12-31 0001807192 us-gaap:AccountingStandardsUpdate201613Member 2020-12-31 0001807192 us-gaap:RetainedEarningsMember 2021-01-01 2021-12-31 0001807192 us-gaap:ParentMember 2021-01-01 2021-12-31 0001807192 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-12-31 0001807192 us-gaap:CommonStockMember 2021-01-01 2021-12-31 0001807192 cd:StatutoryReservesMember 2021-01-01 2021-12-31 0001807192 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-01-01 2021-12-31 0001807192 us-gaap:CommonStockMember 2021-12-31 0001807192 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001807192 cd:StatutoryReservesMember 2021-12-31 0001807192 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001807192 us-gaap:RetainedEarningsMember 2021-12-31 0001807192 us-gaap:ParentMember 2021-12-31 0001807192 2019-07-01 2019-07-31 0001807192 cd:TwoThousandNineteenPlanMember 2021-01-01 2021-12-31 0001807192 cd:TwoThousandTwentyPlanMember 2021-01-01 2021-12-31 0001807192 cd:BCPEBridgeCaymanLPClassBUnitMember 2021-01-01 2021-12-31 0001807192 cd:PRCSubsidiaryMember 2021-01-01 2021-12-31 0001807192 cd:HuailaiHuizhiConstructionCoLtdMember 2021-01-01 2021-12-31 xbrli:pure 0001807192 cd:ChindataXiamenScienceAndTechnologyCoLtdMember 2019-04-26 0001807192 cd:ChindataXiamenScienceAndTechnologyCoLtdMember 2019-04-26 2019-04-26 0001807192 cd:PreIPOPrivatePlacementsMember 2020-08-18 0001807192 2020-07-31 0001807192 cd:AmericanDepositarySharesMember us-gaap:IPOMember 2020-10-02 0001807192 us-gaap:CommonClassAMember us-gaap:IPOMember 2020-10-02 0001807192 us-gaap:CommonClassAMember cd:ConcurrentPrivatePlacementMember 2020-10-02 0001807192 cd:AmericanDepositarySharesMember cd:ConcurrentPrivatePlacementMember 2020-10-02 0001807192 cd:AmericanDepositarySharesMember cd:UnderwritersOptionMember 2020-10-02 0001807192 us-gaap:CommonClassAMember cd:UnderwritersOptionMember 2020-10-02 0001807192 cd:IPOAndConcurrentPrivatePlacementAndUnderwritersOptionMember 2020-10-02 2020-10-02 0001807192 us-gaap:CommonClassBMember us-gaap:IPOMember 2020-10-02 0001807192 us-gaap:CommonClassAMember 2021-01-01 2021-12-31 0001807192 us-gaap:CommonClassBMember 2021-01-01 2021-12-31 0001807192 cd:StackMidcoLimitedMember country:KY 2021-01-01 2021-12-31 0001807192 cd:SuzhouStackDataTechnologyCompanyLimitedMember country:CN 2021-01-01 2021-12-31 0001807192 cd:HebeiStackDataTechnologyCompanyLimitedMember country:CN 2021-01-01 2021-12-31 0001807192 cd:ChindataXiamenScienceAndTechnologyCoLtdMember country:CN 2021-01-01 2021-12-31 0001807192 cd:ChindataHebeiCoLtdMember country:CN 2021-01-01 2021-12-31 0001807192 cd:DatongQinhuaiDataCompanyLimitedMember country:CN 2021-01-01 2021-12-31 0001807192 cd:BridgeDataCentresMalaysiaSdnBhdMember country:MY 2021-01-01 2021-12-31 0001807192 cd:SitanBeijingDataTechnologyCompanyLimitedMember country:CN us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-01-01 2021-12-31 0001807192 cd:HebeiQinshuInformationTechnologyCompanyLimitedMember country:CN us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-01-01 2021-12-31 0001807192 cd:ChindataBeijingCoLtdMember country:CN us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-01-01 2021-12-31 0001807192 cd:SidakeHebeiDataTechnologyCompanyLimitedMember country:CN us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-01-01 2021-12-31 0001807192 cd:DatongSitanDataScienceAndTechnologyCoLtdMember country:CN us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-01-01 2021-12-31 0001807192 cd:ChindataShenzhenCoLtdMember country:CN us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-01-01 2021-12-31 0001807192 cd:StackMidcoLimitedMember country:KY 2021-12-31 0001807192 cd:SuzhouStackDataTechnologyCompanyLimitedMember country:CN 2021-12-31 0001807192 cd:HebeiStackDataTechnologyCompanyLimitedMember country:CN 2021-12-31 0001807192 cd:ChindataXiamenScienceAndTechnologyCoLtdMember country:CN 2021-12-31 0001807192 cd:ChindataHebeiCoLtdMember country:CN 2021-12-31 0001807192 cd:DatongQinhuaiDataCompanyLimitedMember country:CN 2021-12-31 0001807192 cd:BridgeDataCentresMalaysiaSdnBhdMember country:MY 2021-12-31 0001807192 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-12-31 0001807192 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-12-31 0001807192 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2019-01-01 2019-12-31 0001807192 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2020-01-01 2020-12-31 0001807192 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-01-01 2021-12-31 0001807192 us-gaap:AccountingStandardsUpdate201613Member 2021-01-01 0001807192 us-gaap:AccountingStandardsUpdate201613Member srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2021-01-01 0001807192 us-gaap:AccountingStandardsUpdate201613Member srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember 2021-01-01 2021-01-01 iso4217:MYR 0001807192 us-gaap:DerivativeMember 2021-12-31 0001807192 us-gaap:DerivativeMember 2020-12-31 0001807192 us-gaap:DerivativeMember 2019-01-01 2019-12-31 0001807192 us-gaap:DerivativeMember 2021-01-01 2021-12-31 0001807192 us-gaap:DerivativeMember 2020-01-01 2020-12-31 0001807192 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001807192 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001807192 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-12-31 0001807192 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001807192 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001807192 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001807192 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2019-12-31 0001807192 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2020-01-01 2020-12-31 0001807192 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-01-01 2021-12-31 0001807192 us-gaap:OtherNonoperatingIncomeExpenseMember 2021-01-01 2021-12-31 0001807192 srt:MinimumMember us-gaap:BuildingMember 2021-01-01 2021-12-31 0001807192 us-gaap:BuildingMember srt:MaximumMember 2021-01-01 2021-12-31 0001807192 srt:MinimumMember us-gaap:MachineryAndEquipmentMember 2021-01-01 2021-12-31 0001807192 us-gaap:MachineryAndEquipmentMember srt:MaximumMember 2021-01-01 2021-12-31 0001807192 srt:MinimumMember us-gaap:OtherMachineryAndEquipmentMember 2021-01-01 2021-12-31 0001807192 us-gaap:OtherMachineryAndEquipmentMember srt:MaximumMember 2021-01-01 2021-12-31 0001807192 srt:MinimumMember us-gaap:FurnitureAndFixturesMember 2021-01-01 2021-12-31 0001807192 us-gaap:FurnitureAndFixturesMember srt:MaximumMember 2021-01-01 2021-12-31 0001807192 srt:MinimumMember us-gaap:ComputerEquipmentMember 2021-01-01 2021-12-31 0001807192 us-gaap:ComputerEquipmentMember srt:MaximumMember 2021-01-01 2021-12-31 0001807192 srt:MinimumMember us-gaap:VehiclesMember 2021-01-01 2021-12-31 0001807192 us-gaap:VehiclesMember srt:MaximumMember 2021-01-01 2021-12-31 0001807192 srt:MinimumMember cd:PurchasedSoftwareMember 2021-01-01 2021-12-31 0001807192 cd:PurchasedSoftwareMember srt:MaximumMember 2021-01-01 2021-12-31 0001807192 us-gaap:LeaseholdImprovementsMember 2021-01-01 2021-12-31 0001807192 srt:MinimumMember us-gaap:CustomerRelationshipsMember 2021-01-01 2021-12-31 0001807192 us-gaap:CustomerRelationshipsMember srt:MaximumMember 2021-01-01 2021-12-31 0001807192 srt:MinimumMember us-gaap:LicenseMember 2021-01-01 2021-12-31 0001807192 us-gaap:LicenseMember srt:MaximumMember 2021-01-01 2021-12-31 0001807192 srt:MinimumMember 2021-01-01 2021-12-31 0001807192 srt:MaximumMember 2021-01-01 2021-12-31 0001807192 2022-01-01 2021-12-31 0001807192 2023-01-01 2021-12-31 0001807192 2027-01-01 2021-12-31 0001807192 country:CN 2019-01-01 2019-12-31 0001807192 country:CN 2020-01-01 2020-12-31 0001807192 country:CN 2021-01-01 2021-12-31 0001807192 country:MY 2019-01-01 2019-12-31 0001807192 country:MY 2020-01-01 2020-12-31 0001807192 country:MY 2021-01-01 2021-12-31 cd:Customer 0001807192 us-gaap:AccountsReceivableMember cd:CustomerOneMember cd:CustomersMember 2020-01-01 2020-12-31 0001807192 us-gaap:AccountsReceivableMember cd:CustomerOneMember cd:CustomersMember 2021-01-01 2021-12-31 0001807192 us-gaap:SalesRevenueNetMember cd:CustomerOneMember cd:CustomersMember 2019-01-01 2019-12-31 0001807192 us-gaap:SalesRevenueNetMember cd:CustomerTwoMember cd:CustomersMember 2019-01-01 2019-12-31 0001807192 us-gaap:SalesRevenueNetMember cd:CustomerOneMember cd:CustomersMember 2020-01-01 2020-12-31 0001807192 us-gaap:SalesRevenueNetMember cd:CustomerOneMember cd:CustomersMember 2021-01-01 2021-12-31 0001807192 us-gaap:InterestRateRiskMember cd:RMBUSAndMYRDenominatedBorrowingsMember 2021-01-01 2021-12-31 0001807192 us-gaap:InterestRateRiskMember cd:RMBUSAndMYRDenominatedBorrowingsMember 2021-12-31 0001807192 cd:TradingSecuritiesMember 2020-12-31 0001807192 cd:TradingSecuritiesMember 2021-12-31 0001807192 cd:HeldToMaturityDebtSecuritiesMember 2020-12-31 0001807192 cd:HeldToMaturityDebtSecuritiesMember 2021-12-31 0001807192 cd:HeldToMaturityDebtSecuritiesMember 2019-01-01 2019-12-31 0001807192 cd:HeldToMaturityDebtSecuritiesMember 2020-01-01 2020-12-31 0001807192 cd:HeldToMaturityDebtSecuritiesMember 2021-01-01 2021-12-31 0001807192 cd:TradingSecuritiesMember 2019-01-01 2019-12-31 0001807192 cd:TradingSecuritiesMember 2020-01-01 2020-12-31 0001807192 cd:TradingSecuritiesMember 2021-01-01 2021-12-31 0001807192 cd:ColocationServicesRecognizedOverTimeMember 2019-01-01 2019-12-31 0001807192 cd:ColocationServicesRecognizedOverTimeMember 2020-01-01 2020-12-31 0001807192 cd:ColocationServicesRecognizedOverTimeMember 2021-01-01 2021-12-31 0001807192 cd:ColocationRentalRecognizedOverTimeMember 2019-01-01 2019-12-31 0001807192 cd:ColocationRentalRecognizedOverTimeMember 2020-01-01 2020-12-31 0001807192 cd:ColocationRentalRecognizedOverTimeMember 2021-01-01 2021-12-31 0001807192 cd:OthersRecognizedOverTimeMember 2019-01-01 2019-12-31 0001807192 cd:OthersRecognizedOverTimeMember 2020-01-01 2020-12-31 0001807192 cd:OthersRecognizedOverTimeMember 2021-01-01 2021-12-31 0001807192 us-gaap:AccountingStandardsUpdate201613Member 2021-12-31 0001807192 us-gaap:BuildingMember 2020-12-31 0001807192 us-gaap:BuildingMember 2021-12-31 0001807192 us-gaap:TechnologyEquipmentMember 2020-12-31 0001807192 us-gaap:TechnologyEquipmentMember 2021-12-31 0001807192 us-gaap:FurnitureAndFixturesMember 2020-12-31 0001807192 us-gaap:FurnitureAndFixturesMember 2021-12-31 0001807192 us-gaap:ComputerEquipmentMember 2020-12-31 0001807192 us-gaap:ComputerEquipmentMember 2021-12-31 0001807192 us-gaap:VehiclesMember 2020-12-31 0001807192 us-gaap:VehiclesMember 2021-12-31 0001807192 us-gaap:ComputerSoftwareIntangibleAssetMember 2020-12-31 0001807192 us-gaap:ComputerSoftwareIntangibleAssetMember 2021-12-31 0001807192 us-gaap:LeaseholdImprovementsMember 2020-12-31 0001807192 us-gaap:LeaseholdImprovementsMember 2021-12-31 0001807192 us-gaap:ConstructionInProgressMember 2020-12-31 0001807192 us-gaap:ConstructionInProgressMember 2021-12-31 0001807192 cd:StackGroupMember 2019-12-31 0001807192 cd:StackGroupMember 2020-01-01 2020-12-31 0001807192 cd:StackGroupMember 2020-12-31 0001807192 cd:StackGroupMember 2021-01-01 2021-12-31 0001807192 cd:StackGroupMember 2021-12-31 0001807192 us-gaap:SecuredDebtMember cd:RestrictedCashMember cd:BankBorrowingsMember 2021-12-31 0001807192 us-gaap:SecuredDebtMember us-gaap:AccountsReceivableMember cd:BankBorrowingsMember 2021-12-31 0001807192 us-gaap:SecuredDebtMember us-gaap:PropertyPlantAndEquipmentMember cd:BankBorrowingsMember 2021-12-31 0001807192 us-gaap:SecuredDebtMember cd:LandUseRightsMember cd:BankBorrowingsMember 2021-12-31 0001807192 us-gaap:SecuredDebtMember cd:BankBorrowingsMember us-gaap:StandbyLettersOfCreditMember cd:TwoLoanFacilitiesMember 2021-12-31 0001807192 us-gaap:SecuredDebtMember cd:BankBorrowingsMember us-gaap:StandbyLettersOfCreditMember 2021-12-31 0001807192 country:MY 2021-01-01 2021-12-31 0001807192 cd:DomesticAndForeignCountryMember 2021-12-31 0001807192 us-gaap:DomesticCountryMember 2021-01-01 2021-12-31 0001807192 us-gaap:ForeignCountryMember 2021-01-01 2021-12-31 0001807192 us-gaap:EarliestTaxYearMember 2021-01-01 2021-12-31 0001807192 us-gaap:LatestTaxYearMember 2021-01-01 2021-12-31 0001807192 cd:TwoThousandNineteenPlanMember cd:BCPEStackESOPHoldcoLimitedMember 2019-12-01 2019-12-31 0001807192 cd:TwoThousandNineteenPlanMember cd:BCPEStackESOPHoldcoLimitedMember us-gaap:CommonClassBMember 2020-01-08 0001807192 cd:TwoThousandNineteenPlanMember cd:BCPEStackESOPHoldcoLimitedMember us-gaap:CommonClassBMember 2020-04-13 2020-04-13 0001807192 cd:TwoThousandNineteenPlanMember cd:BCPEStackESOPHoldcoLimitedMember us-gaap:CommonClassBMember 2021-12-31 0001807192 cd:TwoThousandNineteenPlanMember cd:BCPEStackESOPHoldcoLimitedMember 2020-09-30 2020-09-30 0001807192 cd:TwoThousandNineteenPlanMember cd:ESOPHoldcoClassBSharesMember 2020-12-31 0001807192 cd:TwoThousandNineteenPlanMember cd:ESOPHoldcoClassBSharesMember 2021-01-01 2021-12-31 0001807192 cd:TwoThousandNineteenPlanMember cd:ESOPHoldcoClassBSharesMember 2021-12-31 0001807192 cd:TwoThousandNineteenPlanMember 2020-12-31 0001807192 cd:TwoThousandNineteenPlanMember 2021-12-31 0001807192 cd:TwoThousandNineteenPlanMember 2020-01-01 2020-12-31 0001807192 cd:TwoThousandTwentyPlanMember 2020-05-01 2020-05-31 0001807192 cd:TwoThousandTwentyPlanMember srt:MaximumMember 2020-05-31 0001807192 cd:TwoThousandTwentyPlanMember 2020-05-29 2020-05-29 0001807192 cd:TwoThousandTwentyPlanMember cd:ServiceBasedAwardsMember 2020-05-01 2020-05-31 cd:Installment 0001807192 cd:TwoThousandTwentyPlanMember srt:MaximumMember 2020-09-30 0001807192 cd:TwoThousandTwentyPlanMember cd:ShareBasedPaymentArrangementCertainEmployeesMember 2020-09-01 2020-09-30 0001807192 cd:TwoThousandTwentyPlanMember 2020-09-01 2020-09-30 0001807192 cd:TwoThousandTwentyPlanMember srt:MaximumMember 2020-12-31 0001807192 cd:TwoThousandTwentyPlanMember cd:ShareBasedPaymentArrangementCertainEmployeesMember 2020-10-01 2020-10-31 0001807192 cd:TwoThousandTwentyPlanMember cd:ShareBasedPaymentArrangementCertainEmployeesMember 2021-01-01 2021-12-31 0001807192 cd:TwoThousandTwentyPlanMember srt:MinimumMember cd:ShareBasedPaymentArrangementCertainEmployeesMember 2021-01-01 2021-12-31 0001807192 cd:TwoThousandTwentyPlanMember srt:MaximumMember cd:ShareBasedPaymentArrangementCertainEmployeesMember 2021-01-01 2021-12-31 0001807192 cd:TwoThousandTwentyPlanMember 2020-12-31 0001807192 cd:TwoThousandTwentyPlanMember 2021-12-31 0001807192 cd:TwoThousandTwentyPlanMember 2020-08-26 2020-08-26 0001807192 cd:TwoThousandTwentyPlanMember 2020-01-01 2020-12-31 0001807192 cd:TwoThousandNineteenPlanAndTwoThousandTwentyPlanMember 2021-12-31 0001807192 cd:TwoThousandNineteenPlanAndTwoThousandTwentyPlanMember 2021-01-01 2021-12-31 0001807192 cd:BCPEBridgeCaymanLPMember us-gaap:CommonClassBMember 2019-09-11 2019-09-11 0001807192 cd:BCPEBridgeCaymanLPMember us-gaap:CommonClassBMember srt:MinimumMember cd:GrantedDuring2019Member 2019-09-11 2019-09-11 0001807192 cd:BCPEBridgeCaymanLPMember us-gaap:CommonClassBMember cd:GrantedDuring2019Member srt:MaximumMember 2019-09-11 2019-09-11 0001807192 cd:BCPEBridgeCaymanLPMember us-gaap:CommonClassBMember srt:MinimumMember cd:GrantedDuring2020Member 2019-09-11 2019-09-11 0001807192 cd:BCPEBridgeCaymanLPMember us-gaap:CommonClassBMember srt:MaximumMember cd:GrantedDuring2020Member 2019-09-11 2019-09-11 0001807192 cd:BCPEBridgeCaymanLPMember us-gaap:CommonClassBMember cd:GrantedDuring2020Member 2019-09-11 2019-09-11 0001807192 cd:BCPEBridgeCaymanLPMember us-gaap:CommonClassBMember 2020-09-30 2020-09-30 0001807192 cd:BCPEBridgeCaymanLPMember cd:PreIPOPrivatePlacementsMember 2020-08-18 0001807192 cd:BCPEBridgeCaymanLPMember cd:PreIPOPrivatePlacementsMember 2020-08-18 2020-08-18 0001807192 us-gaap:CommonClassBMember cd:BridgeManagementLPMember cd:BCPEBridgeLimitedPartnershipAgreementMember 2020-10-01 2020-10-31 0001807192 cd:BridgeManagementLPMember cd:BCPEBridgeLimitedPartnershipAgreementMember cd:ClassBOrdinarySharesMember 2020-10-31 0001807192 cd:BCPEBridgeCaymanLPClassBUnitMember 2020-12-31 0001807192 cd:BCPEBridgeCaymanLPClassBUnitMember 2021-12-31 0001807192 srt:MinimumMember 2020-01-01 2020-12-31 0001807192 srt:MaximumMember 2020-01-01 2020-12-31 0001807192 us-gaap:CostOfSalesMember 2019-01-01 2019-12-31 0001807192 us-gaap:CostOfSalesMember 2020-01-01 2020-12-31 0001807192 us-gaap:CostOfSalesMember 2021-01-01 2021-12-31 0001807192 us-gaap:SellingAndMarketingExpenseMember 2019-01-01 2019-12-31 0001807192 us-gaap:SellingAndMarketingExpenseMember 2020-01-01 2020-12-31 0001807192 us-gaap:SellingAndMarketingExpenseMember 2021-01-01 2021-12-31 0001807192 us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-12-31 0001807192 us-gaap:GeneralAndAdministrativeExpenseMember 2020-01-01 2020-12-31 0001807192 us-gaap:GeneralAndAdministrativeExpenseMember 2021-01-01 2021-12-31 0001807192 cd:ConstructionInProgressExpenseMember 2020-01-01 2020-12-31 0001807192 cd:WangsuScienceAndTechnologyLimitedCorporationMember 2019-01-01 2019-12-31 0001807192 cd:WangsuScienceAndTechnologyLimitedCorporationMember 2020-01-01 2020-12-31 0001807192 cd:HebeiJizongnengEnergyDevelopmentCoLtdMember 2021-01-01 2021-12-31 0001807192 srt:AffiliatedEntityMember 2019-01-01 2019-12-31 0001807192 srt:AffiliatedEntityMember 2020-01-01 2020-12-31 0001807192 cd:ShareholderAffiliatesMember 2019-01-01 2019-12-31 0001807192 cd:ShareholderAffiliatesMember 2020-01-01 2020-12-31 0001807192 cd:ZhangjiakouQinyunInformationTechnologyCoLtdMember 2020-01-01 2020-12-31 0001807192 2019-04-26 2019-12-31 0001807192 2020-01-01 2020-10-02 0001807192 cd:CashAffiliatesMember 2020-01-01 2020-12-31 0001807192 cd:ShareholderAffiliatesMember 2020-01-01 2020-12-31 0001807192 2020-08-04 0001807192 cd:FormerChiefExecutiveOfficerMember 2020-08-04 2020-08-04 0001807192 cd:ThirdPartyMember 2020-08-04 2020-08-04 0001807192 2020-08-04 2020-08-04 0001807192 us-gaap:CommonClassAMember 2020-01-01 2020-12-31 0001807192 us-gaap:CommonClassBMember 2020-01-01 2020-12-31 0001807192 cd:PRCSubsidiaryMember 2019-04-26 2019-04-26 0001807192 cd:PRCSubsidiaryMember 2019-04-26 0001807192 cd:PRCSubsidiaryMember srt:MaximumMember 2019-04-26 2019-04-26 0001807192 cd:PRCSubsidiaryMember 2019-01-01 2019-12-31 0001807192 cd:PRCSubsidiaryMember 2020-01-01 2020-12-31 0001807192 cd:HuailaiHuizhiConstructionCoLtdMember 2020-11-01 2020-11-01 0001807192 cd:HuailaiHuizhiConstructionCoLtdMember 2020-11-01 0001807192 srt:MinimumMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2021-01-01 2021-12-31 0001807192 us-gaap:OtherNonoperatingIncomeExpenseMember 2021-12-31 cd:Segment 0001807192 country:CN 2019-01-01 2019-12-31 0001807192 country:CN 2020-01-01 2020-12-31 0001807192 country:CN 2021-01-01 2021-12-31 0001807192 country:MY 2019-01-01 2019-12-31 0001807192 country:MY 2020-01-01 2020-12-31 0001807192 country:CN 2020-12-31 0001807192 country:CN 2021-12-31 0001807192 country:MY 2020-12-31 0001807192 country:MY 2021-12-31 0001807192 country:IN 2020-12-31 0001807192 country:IN 2021-12-31 0001807192 srt:ParentCompanyMember 2020-12-31 0001807192 srt:ParentCompanyMember 2021-12-31 0001807192 srt:ParentCompanyMember us-gaap:CommonClassAMember 2020-12-31 0001807192 srt:ParentCompanyMember us-gaap:CommonClassAMember 2021-12-31 0001807192 srt:ParentCompanyMember us-gaap:CommonClassBMember 2020-12-31 0001807192 srt:ParentCompanyMember us-gaap:CommonClassBMember 2021-12-31 0001807192 srt:ParentCompanyMember 2021-01-01 2021-12-31 0001807192 srt:ParentCompanyMember 2019-01-01 2019-12-31 0001807192 srt:ParentCompanyMember 2020-01-01 2020-12-31 0001807192 srt:ParentCompanyMember 2019-12-31

Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 20-F

(Mark One)

REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021.

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to

OR

SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report

 For the transition period from              to

Commission file number: 001-39556 

 

 

 

 

 

 

Chindata Group Holdings Limited

(Exact name of Registrant as specified in its charter)

 

 

N/A

(Translation of Registrant’s name into English)

 

Cayman Islands

(Jurisdiction of incorporation or organization)

 

No. 47 Laiguangying East Road,

Chaoyang District, Beijing, 100012

The People’s Republic of China

(Address of principal executive offices)

 

Dongning Wang, Chief Financial Officer

Tel: +86 400-879-7679
E-mail: ir@chindatagroup.com

No. 47 Laiguangying East Road,

Chaoyang District, Beijing, 100012

The People’s Republic of China

(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)

 

Securities registered or to be registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

American Depositary Shares, each representing two Class A ordinary shares, par value US$0.00001 per share

Class A ordinary shares, par value US$0.00001 per share *

 

 

 

CD

 

 

N/A

 

The Nasdaq Stock Market LLC

(The Nasdaq Global Select Market)

 

The Nasdaq Stock Market LLC

(The Nasdaq Global Select Market)

 

 *  Not for trading, but only in connection with the listing on The Nasdaq Global Select Market of American depositary shares.

 

Securities registered or to be registered pursuant to Section 12(g) of the Act:

None

(Title of Class)

 


Table of Contents

 

 

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:

None

(Title of Class)

  

Indicate the number of outstanding shares of each of the Issuer’s classes of capital or common stock as of the close of the period covered by the annual report:

732,559,381 ordinary shares outstanding, consisting of 359,099,633 Class A ordinary shares and 373,459,748 outstanding Class B ordinary shares, par value US$0.00001 per share, as of December 31, 2021.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes      No  

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.    Yes      No    

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes     No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one): 

 

Large accelerated filer  

 

Accelerated filer

 

Non-accelerated filer  

 

 

 

 

 

Emerging growth company  

 

 

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards † provided pursuant to Section 13(a) of the Exchange Act.  

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.  

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP       International Financial Reporting Standards as issued by the International Accounting Standards Board      Other  

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17      Item 18  

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.    Yes      No  

 

 


Table of Contents

 

 

 

table of contents

 

 

 

 

Page

 

 

 

INTRODUCTION

1

 

 

FORWARD-LOOKING STATEMENTS

2

 

 

PART I

3

 

 

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

3

 

 

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

3

 

 

ITEM 3. KEY INFORMATION

3

 

 

ITEM 4. INFORMATION ON THE COMPANY

56

 

 

ITEM 4A. UNRESOLVED STAFF COMMENTS

93

 

 

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

93

 

 

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

110

 

 

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

122

 

 

ITEM 8. FINANCIAL INFORMATION

123

 

 

ITEM 9. THE OFFER AND LISTING

123

 

 

ITEM 10. ADDITIONAL INFORMATION

124

 

 

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

137

 

 

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

139

 

 

 

PART II

 

141

 

 

 

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

141

 

 

ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS

141

 

 

ITEM 15. CONTROLS AND PROCEDURES

141

 

 

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

142

 

 

ITEM 16B. CODE OF ETHICS

142

 

 

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

143

 

 

ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES

143

 

 

ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

143

 

 

ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

143

 

 

ITEM 16G. CORPORATE GOVERNANCE

143

 

 

ITEM 16H. MINE SAFETY DISCLOSURE

143

 

 

 

ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

143

 

 

 

PART III

 

144

 

 

 

ITEM 17 FINANCIAL STATEMENTS

144

 

 

ITEM 18 FINANCIAL STATEMENTS

144

 

 

ITEM 19. EXHIBITS

144

 

 

 

SIGNATURES

 

146

 

 


Table of Contents

 

 

INTRODUCTION

Unless otherwise indicated or the context otherwise requires in this annual report on Form 20-F:

 

“Asia-Pacific emerging markets” include China, India and Southeast Asia emerging markets, which include Malaysia, Indonesia, Laos, Thailand, Brunei, Cambodia, Myanmar, Philippines and Vietnam;

 

“ADSs” refer to our American depositary shares, each of which represents two Class A ordinary shares;

 

“ByteDance” refers to Beijing Doudongqingchun Technology Ltd., Beijing Huoshanyinqing Technology Ltd. and their affiliates;

 

“CAGR” refers to compound annual growth rate;

 

“capacity in service” refers to the total capacity available for utilization; this capacity does not include capacity from our retail data centers;

 

“capacity with indication of interest” or “IoI IT capacity” refers to the capacity for which clients have indicated interest in and had substantial negotiation for binding service agreements with us;

 

“contractually committed capacity” or “contracted IT capacity” refers to capacity for which clients are required to pay us colocation service or rental fees or reservation fees;

 

“China” or “PRC” refers to the People’s Republic of China, excluding, for the purpose of this annual report only, Taiwan and the special administrative regions of Hong Kong and Macau;

 

“Chindata,” “we,” “us,” “our company,” and “our” refer to Chindata Group Holdings Limited (or BCPE Bridge Stack Limited, the name of our Company prior to April 23, 2020), a Cayman Islands company and its subsidiaries and, in the context of describing our operations and consolidated financial information, its consolidated variable interest entities, or VIEs.

 

“colocation” refers to services to store and support IT equipment at data centers facilities for clients;

 

“MW” refers to megawatts;

 

“MYR” refers to Malaysian Ringgit, the legal currency of Malaysia;

 

“ODM” refers to original design manufacturer or original design manufacturing;

 

“Class A ordinary shares” refer to our Class A ordinary shares, par value US$0.00001 per share;

 

“Class B ordinary shares” refer to our Class B ordinary shares, par value US$0.00001 per share;

 

“our VIEs” refer to our variable interest entities, including Sitan (Beijing) Data Science and Technology Co., Ltd. and Hebei Qinshu Information Science and Technology Co., Ltd.;

 

“our WFOEs” refer to our wholly foreign-owned enterprises, including Suzhou Stack Data Technology Co., Ltd. and Hebei Stack Data Technology Investment Co., Ltd.;

 

“PUE” refers to power usage effectiveness, a ratio of the total power usage of a data center to the power usage of the IT equipment inside such data center;

 

“RMB” or “Renminbi” refers to the legal currency of China;

 

“shares” or “ordinary shares” refer to our ordinary shares, par value US$0.00001 per share, and upon and after the completion of our initial public offering, are to our Class A and Class B ordinary shares, par value US0.00001 per share;

 

“sqm” refers to square meters;

 

“US$,” “U.S. dollars,” “$” and “dollars” refer to the legal currency of the United States; and

 

“VATS” refers to value-added telecommunications services.

Our reporting currency is the Renminbi. This annual report contains translations of Renminbi and certain other foreign currency amounts into U.S. dollars for the convenience of the reader. Unless otherwise stated, all translations from Renminbi into U.S. dollars were made at RMB6.3726 to US$1.00, the noon buying rate on December 30, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board. We make no representation that the Renminbi or U.S. dollars amounts referred to in this annual report could have been or could be converted into U.S. dollars or Renminbi, as the case may be, at any particular rate or at all. On April 22, 2022, the noon buying rate for Renminbi was RMB6.5010 to US$1.00.

 

 

1


Table of Contents

 

 

FORWARD-LOOKING STATEMENTS

This annual report contains forward-looking statements that involve risks and uncertainties. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of current or historical facts are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, including those listed under “Item 3. Key Information—D. Risk Factors,” that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements.

In some cases, you can identify these forward-looking statements by words or phrases such as “may,” “might,” “would,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “likely to” or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include, but not limited to, statements about:

 

our goals and strategies;

 

our future business development, financial condition and results of operations;

 

the expected growth of the data center and IT market;

 

our expectations regarding demand for, and market acceptance of, our services;

 

government policies and regulations relating to our business and industry;

 

our expectations regarding keeping and strengthening our relationships with clients;

 

our expectation regarding the use of proceeds from our initial public offering;

 

general economic and business conditions in the regions where we operate and globally; and

 

assumptions underlying or related to any of the foregoing.

You should read this annual report and the documents that we refer to in this annual report thoroughly with the understanding that our actual future results may be materially different from and worse than what we expect. Important risks and factors that could cause our actual results to be materially different from our expectations are generally set forth in “Item 3. Key Information—D. Risk Factors,” “Item 4. Information on the Company—B. Business Overview,” “Item 5. Operating and Financial Review and Prospects,” and other sections in this annual report. You should read thoroughly this annual report and the documents that we refer to with the understanding that our actual future results may be materially different from and worse than what we expect. We qualify all of our forward-looking statements by these cautionary statements. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time and it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We qualify all of our forward-looking statements by these cautionary statements.

This annual report also contains statistical data and estimates that we obtained from industry publications and reports generated by government or third-party providers of market intelligence. Although we have not independently verified the data, we believe that the publications and reports are reliable. However, the statistical data and estimates in these publications and reports are based on a number of assumptions and if any one or more of the assumptions underlying the market data are later found to be incorrect, actual results may differ from the projections based on these assumptions. In addition, due to the rapidly evolving nature of the industry in which we operate, projections or estimates about our business and financial prospects involve significant risks and uncertainties.

The forward-looking statements made in this annual report relate only to events or information as of the date on which the statements are made in this annual report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read this annual report and the documents that we refer to in this annual report and exhibits to this annual report completely and with the understanding that our actual future results may be materially different from what we expect.

  

2


Table of Contents

 

 

PART I

ITEM 1.

IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

Not applicable.

ITEM 2.

OFFER STATISTICS AND EXPECTED TIMETABLE

Not applicable.

ITEM 3.

KEY INFORMATION

 

Our Holding Company Structure and Contractual Arrangements with Our VIEs and Their Respective Shareholders

Chindata Group Holdings Limited is not an operating company in China, but a Cayman Islands holding company which primarily operates in China and conducts a substantial part of its operations in China through (i) its PRC subsidiaries and (ii) contractual arrangements among (x) Suzhou Stack Data Technology Co., Ltd. and Hebei Stack Data Technology Investment Co., Ltd., or our WFOEs, (y) the consolidated variable interest entities, or consolidated VIEs, namely, Sitan (Beijing) Data Science and Technology Co., Ltd. and Hebei Qinshu Information Science and Technology Co., Ltd., limited liability companies established under PRC law, and (z) the shareholders of the consolidated VIEs. PRC laws and regulations impose certain restrictions or prohibitions on foreign ownership of companies that engage in internet and other related businesses, including value-added telecommunications services. Accordingly, we operate these businesses in China through our VIEs, and rely on contractual arrangements among our PRC subsidiaries, our VIEs and their shareholders to control the business operations of our VIEs. Chindata Group Holdings Limited does not hold any equity interest in the consolidated VIEs. We have consolidated the financial results of our VIEs and their respective subsidiaries in our consolidated financial statements in accordance with U.S. GAAP. Revenues contributed by our VIEs and their subsidiaries accounted for 83.5%, 93.2% and 93.1% of our total revenues for the years of 2019, 2020 and 2021, respectively. “Chindata,” “we,” “us,” “our company,” and “our” refer to Chindata Group Holdings Limited (or BCPE Bridge Stack Limited, the name of our Company prior to April 23, 2020), a Cayman Islands holding company and its subsidiaries and, in the context of describing our operations and consolidated financial information, its consolidated variable interest entities, or VIEs. Investors in the ADSs are not purchasing, and may never directly hold, equity interests in the consolidated VIEs.

We have control over our VIEs through our WFOEs. Our WFOEs entered into a series of contractual arrangements with our VIEs and their respective shareholders. These agreements include: the exclusive business cooperation agreement, the powers of attorney, the equity pledge agreement, and the purchase option agreement. These contractual arrangements enable us to (i) exercise effective control over our VIEs, (ii) receive substantially all of the economic benefits of our VIEs, and (iii) have an exclusive option to purchase all or part of the equity interests in our VIEs when and to the extent permitted by PRC law. For more details of these contractual arrangements, see “Item 4. Information on the Company—C. Organizational Structure—Contractual Arrangements with Our VIEs and Their Respective Shareholders.”

However, control through these contractual arrangements may be less effective than direct ownership, and we could face heightened risks and costs in enforcing these contractual arrangements, because there are substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations, and rules relating to these contractual arrangements, and there are very few precedents and little formal guidance as to how contractual arrangements in the context of a variable interest entity should be interpreted or enforced in a PRC court. See “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Corporate Structure—We rely on contractual arrangements with our consolidated VIEs and their shareholders for our operations in China, which may not be as effective as direct ownership in providing operational control, and these contractual arrangements have not been tested in a court of law,” and “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Corporate Structure—The registered shareholders of our VIEs may have potential conflicts of interest with us, which may materially and adversely affect our business and financial condition.”

Our corporate structure is subject to risks relating to our contractual arrangements with our VIEs and their shareholders. If the PRC government finds these contractual arrangements non-compliant with the restrictions on direct foreign investment in the relevant industries, or if the relevant PRC laws, regulations, and rules or the interpretation thereof change in the future, we could be subject to severe penalties or be forced to relinquish our interests in the consolidated VIEs or forfeit our rights under the contractual arrangements. Chindata Group Holdings Limited and investors in the ADSs face uncertainty about potential future actions by the PRC government, which could affect the enforceability of our contractual arrangements with the consolidated VIEs and, consequently, significantly affect the financial condition and results of operations of Chindata Group Holdings Limited. If we are unable to claim our right to control the assets of the consolidated VIEs, the ADSs may decline in value or become worthless. See “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Corporate Structure.”

There are also substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations and rules regarding the status of the rights of our Cayman Islands holding company with respect to its contractual arrangements with our VIEs and their respective shareholders. It is uncertain whether any new PRC laws or regulations relating to variable interest entity structures will be adopted or if adopted, what they would provide. If we or any of our VIEs is found to be in violation of any existing or future PRC laws or regulations, or fail to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have broad discretion to take action in dealing with such violations or failures. See “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Corporate Structure—Substantial uncertainties exist with respect to the interpretation and implementation of the PRC Foreign Investment Law and its Implementation

3


Table of Contents

 

Regulations and how they may impact the viability of our current corporate structure, corporate governance, business operations and financial results,” “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Corporate Structure—If the PRC government deems that our contractual arrangements do not comply with PRC regulatory restrictions on foreign investment in the relevant industries, or if these regulations or the interpretation of existing regulations change in the future, we could be subject to severe penalties or be forced to relinquish our interests in those operations.”

We face various legal and operational risks and uncertainties relating to doing business in China. We operate our business primarily in China, and are subject to complex and evolving PRC laws and regulations. For example, we face risks relating to regulatory approvals or other requirements on overseas listings and the use of our VIEs. Many of these laws and regulations are subject to change and uncertain interpretation, and any actual or alleged failure to comply with such laws and regulations could materially and adversely affect our business and results of operations. These risks could result in a material adverse change in our operations and the value of our ADSs, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause the value of such securities to significantly decline. See “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China.”

Uncertainties in the PRC legal system and the interpretation and enforcement of PRC laws and regulations could limit the legal protection available to you and us, hinder our ability to offer or continue to offer the ADSs, result in a material adverse effect on our business operations, and damage our reputation, which might further cause the ADSs to significantly decline in value or become worthless. See “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China.” The following diagram illustrates our corporate structure as of the date of this annual report, including our significant subsidiaries, significant VIEs and VIE’s principal subsidiaries.

____________

Notes:

 

(1)

Shareholders of Sitan (Beijing) are Mr. Chen Qian and Mr. Fei Xu, our nominee shareholders. Mr. Chen Qian and Mr. Fei Xu are employees of affiliates of one of our principal shareholders, Bain Capital Entities.

 

(2)

Shareholders of Hebei Qinshu are Mr. Chen Qian and Mr. Fei Xu, our nominee shareholders.

 

(3)

The four subsidiaries are Chindata (Shenzhen) Co., Ltd., Chindata (Beijing) Co., Ltd., Sidake Hebei Data Science and Technology Co., Ltd. and Datong Sitan Data Science and Technology Co., Ltd., all of which are wholly-owned by Sitan (Beijing) Data Science and Technology Co., Ltd. to hold VATS licenses.

 

(4)

The twenty-two subsidiaries are Huailai Qinhuai Data Technology Co., Ltd., Huailai Qinhuai Data Science and Technology Co., Ltd., Huailai Qinxin New Energy Co., Ltd., Huailai Sidahui Data Co., Ltd., Huailai Sidayuan Data Co., Ltd., Huailai Sidage Data Co., Ltd., Huailai Sidake Data Co., Ltd., Huailai Sidarui Data Co., Ltd., Huailai Sidasheng Data Co., Ltd., Huailai Sidaming Data Co., Ltd., Huailai Sidayu Data Co., Ltd., Huailai Sidazhi Data Science and Technology Co., Ltd., Huailai Sidadong Data Co., Ltd., Huailai Sidazheng Data Co., Ltd., Huailai Sidahua Data Co., Ltd., Beijing Zhonghuanyutong Architectural Design Co., Ltd., Huailai Sidaduo Data Co., Ltd., Huailai Sidaxin Data Co., Ltd., Huailai Sidahao Data Co., Ltd., Huailai Sidajun Data Co., Ltd., Huailai Sidaqi Data Co., Ltd. and Huailai Sidashi Data Co., Ltd., all of which are wholly-owned by Hebei Stack Data Technology Investment Co., Ltd.

 

(5)

The eight subsidiaries are Datong Qinling Information Science and Technology Co., Ltd., Huailai Qinyuan Information Science and Technology Co., Ltd., Huailai Qinrui Information Science and Technology Co., Ltd., Huailai Qinsang Information Science and

4


Table of Contents

 

 

Technology Co., Ltd., Huailai Sida Data Science and Technology Co., Ltd., Jiangsu Qintong Data Science and Technology Co., Ltd., Shanghai Qingang Data Science and Technology Co., Ltd. and Zhangjiakou Qinming Information Science and Technology Co., Ltd., all of which are wholly-owned by Hebei Qinshu Information Science and Technology Co., Ltd. to hold or obtain VATS licenses.

 

(6)

The five subsidiaries are Jiangsu Sidage Data Science and Technology Co., Ltd., Nantong Sidake Data Co., Ltd., Chindata (Jiangsu) Science and Technology Co., Ltd., Nantong Sidajie Information Technology Co., Ltd. and Nantong Sidayun Information Technology Co., Ltd., all of which are wholly-owned by Nantong Stack Data Technology Co., Ltd.

 

(7)

The sixteen subsidiaries are Datong Sidake Data Co., Ltd., Datong Qinneng New Energy Co., Ltd., Datong Qinxin New Energy Co., Ltd., Chindustry Property Management Service Shanxi Co., Ltd., Chindata (Qingyang) Science and Technology Co., Ltd., Datong Sidage Data Co., Ltd., Datong Sidayun Data Co., Ltd., Datong Sidahao Data Co., Ltd., Datong Sidachen Data Co., Ltd., Datong Sidawen Data Co., Ltd. , Datong Sidayu Data Co., Ltd., Datong Qinhuai Data Co., Ltd., Datong Sidatai Data Co., Ltd., Datong Sidaying Data Co., Ltd., Datong Sidayi Data Co., Ltd. and Datong Sidajing Data Co., Ltd., all of which are wholly-owned by Datong Qinshu Information Technology Co., Ltd.

 

(8)

The three subsidiaries are Sidake Data Science and Technology (Shanghai) Co., Ltd., Hainan Qinhai Management Consulting Co., Ltd. and Chindata (Shanghai) Data Science and Technology Co., Ltd., all of which are wholly-owned by Sidage Investment (Shanghai) Co., Ltd.

 

(9)

The thirteen subsidiaries are Zhangjiakou Sinan Data Co., Ltd., Zhangjiakou Siyue Data Co., Ltd., Chindata (Hebei) Co., Ltd., Hebei Qin Shu Equipment Manufacturing Co., Ltd., Zhangjiakou Siheng Data Co., Ltd., Zhangjiakou Sidong Data Co., Ltd., Zhangjiakou Sixu Data Co., Ltd., Langfang Sizhe Data Co., Ltd., Huailai Huizhi Construction Co., Ltd., Beijing Qinchuang Engineering Project Management Co., Ltd., Xinkai Cloud Computing (Tianjin) Co., Ltd., Tianjin Xinxun Data Co., Ltd. and Zhangjiakou Siyun Data Co., Ltd., all of which are wholly-owned by Zhangjiakou Sidake Data Co., Ltd.

 

(10)

The two subsidiaries are Bridge Data Centres Malaysia III Sdn. Bhd. and Bridge Data Centres Malaysia IV Sdn. Bhd., both of which are wholly-owned by Bridge Data Centres Malaysia Holdings III Sdn. Bhd.

 

(11)

The remaining 0.16% equity interst of Bridge Data Centres Holdings (Thailand) Ltd. is held by Bridge Data Centres (International) Pte Ltd. and BDC Singpore Holdco Pte. Ltd., both of which are wholly-owned subsidiaries of BC Asia Investments V Limited, as to 0.08% and 0.08%, respectively.

 

(12)

The remaining 0.02% equity interest of Bridge Data Centres (Thailand) Ltd. is held by BDC Singpore Holdco Pte. Ltd., which is a wholly-owned subsidiary of BC Asia Investments V Limited.

Risks Relating to our VIEs and China Operations

We are subject to risks and uncertainties relating to our VIEs and China operations, including, but not limited to, the following:

Chindata Group Holdings Limited is a Cayman Islands holding company primarily operating in China through its subsidiaries and contractual arrangements with our VIEs. Investors in the ADSs thus are not purchasing, and may never directly hold, equity interests in our VIEs. There are substantial uncertainties regarding the interpretation and application of current and future PRC laws, regulations, and rules relating to such agreements that establish the VIE structure for the majority of our and our VIEs’ operations in China, including potential future actions by the PRC government, which could affect the enforceability of our contractual arrangements with our VIEs and, consequently, significantly affect the financial condition and results of operations of our Company. If the PRC government finds such agreements non-compliant with relevant PRC laws, regulations, and rules, or if these laws, regulations, and rules or the interpretation thereof change in the future, we could be subject to severe penalties or be forced to relinquish our interests in our VIEs or forfeit our rights under the contractual arrangements;

The PRC government has significant authority to exert influence on the China operations of an offshore holding company, such as us. Therefore, investors in the ADSs and our and our VIEs’ business face potential uncertainty from the PRC government’s policy. Changes in China’s economic, political or social conditions, or government policies could materially and adversely affect our and our VIEs’ business, financial condition, and results of operations;

We and our VIEs are subject to extensive and evolving legal development, non-compliance with which, or changes in which, may materially and adversely affect our and our VIEs’ business and prospects, and may result in a material change in our and our VIEs’ operations and/or the value of our ADSs or could significantly limit or completely hinder our and our VIEs’ ability to offer or continue to offer securities to investors and cause the value of our securities to significantly decline or be worthless;

We face challenges from the evolving regulatory environment regarding cybersecurity, information security, privacy and data protection, and user attitude toward data privacy and protection. Many of these laws and regulations are subject to change and uncertain interpretation, and any actual or alleged failure to comply with data privacy and protection laws and regulations could materially and adversely affect our business and results of operations;

The PRC government’s oversight over our and our VIEs’ business operations could result in a material adverse change in our and our VIEs’ operations and the value of our ADSs;

5


Table of Contents

 

 

Uncertainties in the PRC legal system and the interpretation and enforcement of PRC laws and regulations could limit the legal protections available to you and us, significantly limit or completely hinder our ability to offer or continue to offer our ADSs, cause significant disruption to our and the consolidated VIEs’ business operations, and severely damage our and the consolidated VIEs’ reputation, which would materially and adversely affect our and the consolidated VIEs’ financial condition and results of operations and cause our ADSs to significantly decline in value or become worthless. In addition, rules and regulations in China can change quickly with little advance notice, therefore, our assertions and beliefs of the risks imposed by the Chinese legal and regulatory system cannot be certain;

The approval of and filing with the CSRC or other requirements from the CSRC or other PRC government authorities may be required under PRC law in connection with our future financing activities, and, if required, we cannot predict whether or for how long we will be able to obtain such approval or complete such filing or other administrative procedures; and

We rely on contractual arrangements with our consolidated VIEs and their shareholders for our operations in China, which may not be as effective as direct ownership in providing operational control, and these contractual arrangements have not been tested in a court of law.

For further details on the regulatory, liquidity, and enforcement risks relating to our corporate structure and the fact that we conduct substantially all of our operations in China, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Corporate Structure” and “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China.” You should also carefully consider other risks described under “Item 3. Key Information—D. Risk Factors” and other information contained in this annual report on Form 20-F, before you decide whether to purchase the ADSs.”

Cash and Asset Flows through Our Organization

Under PRC laws, Chindata Group Holdings Limited may fund its PRC subsidiaries only through capital contributions or loans. Because Chindata Group Holdings Limited and its PRC subsidiaries control our VIEs through contractual arrangements, they are not able to make direct capital contribution to our VIEs and their subsidiaries. However, they may transfer cash to our VIEs by loans or by making payment to ourVIEs for inter-group transactions. Historically, there was no capital contribution or loan investment from Chindata Group Holdings Limited to our VIEs and their subsidiaries in China.

For the years ended December 31, 2019, 2020 and 2021, Chindata Group Holdings Limited, through its intermediate holding companies, provided capital contribution of RMB313.3 million, RMB26.1 million and nil, respectively, to its subsidiaries. For the years ended December 31, 2019, 2020 and 2021, there were no loans that Chindata Group Holdings Limited provided to our subsidiaries or VIEs.

Under the Contractual Arrangements, our WFOEs or their subsidiaries provide services to the consolidated VIEs and are entitled to receive service fees from the consolidated VIEs in exchange. The Contractual Arrangements provide that our VIEs pay our WFOEs a quarterly service fee at an amount agreed by the parties considering the workload and commercial value of technical services provided to our VIEs. Notwithstanding the foregoing, our WFOEs shall have the right to adjust, at their own discretion and at any time, the pricing standard of the services provided to our VIEs based on the quantity, difficulty, urgency and other factors of the services provided by it to our VIEs, and calculate the service fee payable by our VIEs accordingly. The cash flows between the subsidiaries and our VIEs also include cash paid by the WFOEs and their subsidiaries to some of our VIEs for certain administrative services.

For the years ended December 31, 2019, 2020 and 2021, the amount of service fees that our VIEs paid to the WFOEs and their subsidiaries, net of the cash paid by the WFOEs and their subsidiaries to our VIEs, was RMB254.2 million, RMB1,256.3 million and RMB1,801.8 million, respectively.

For the years ended December 31, 2019, 2020 and 2021, no dividends or distributions were made to Chindata Group Holdings Limited by our subsidiaries. Under PRC laws and regulations, our PRC subsidiaries and VIEs are subject to certain restrictions with respect to paying dividends or otherwise transferring any of their net assets to us. Remittance of dividends by a wholly foreign-owned enterprise out of China is also subject to examination by the banks designated by SAFE. The amounts restricted include the registered share capital, capital reserve and surplus reserves of our PRC subsidiaries and the net assets of our VIEs, totaling RMB1,697.1 million, RMB2,594.6 million and RMB3,837.9 million as of December 31, 2019, 2020 and 2021, respectively. If our PRC subsidiaries further declare and distribute profits earned after January 1, 2008 in the future, the dividend payments will be subject to withholding tax, which will increase our tax liability and reduce the amount of cash available to our company. For more information on related risks, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—We may not be able to obtain certain benefits under the relevant tax treaty on dividends paid by our PRC subsidiary to us through our Hong Kong subsidiary.”

For risks relating to the fund flows of our China operations, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—PRC regulation of loans to and direct investment in PRC entities by offshore holding companies and governmental control of conversion of foreign currencies into Renminbi may delay or prevent us from using the proceeds of our initial public offering to make loans to our WFOEs and VIEs or to make additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business.” and “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business

6


Table of Contents

 

in China—We may rely principally on dividends and other distributions on equity paid by our WFOEs to fund any cash and financing requirements we may have, and any limitation on the ability of our WFOEs to pay dividends to us could have a material adverse effect on our ability to conduct our business.”

In the year ended December 31, 2019, the amount of data center equipments that our WFOEs and their subsidiaries received from our VIEs was RMB257.3 million. In the years ended December 31, 2020 and 2021, no assets other than cash were transferred between Chindata Group Holdings Limited, its subsidiaries and the consolidated VIEs.

Dividends or Distributions on Our ADSs or Class A Ordinary Shares Made to the U.S. Investors and Their Tax Consequences

Chindata Group Holdings Limited has not previously declared or paid cash dividends on our ADSs or Class A ordinary shares and it has no plan to declare or pay any dividends in the foreseeable future on our ADSs or Class A ordinary shares. We currently intend to retain most, if not all, of our available funds and any future earnings to operate and expand our business. See “Item 8. Financial Information—A. Consolidated Statements and Other Financial Information—Dividend Policy.”

In addition, subject to the passive foreign investment company rules discussed in detail under “Item 10. Additional Information—E. Taxation—United States Federal Income Tax Considerations—Passive Foreign Investment Company,” the gross amount of any distribution that we make to investors with respect to our ADSs or ordinary shares (including any amounts withheld to reflect withholding taxes) will be taxable as a dividend, to the extent paid out of our current or accumulated earnings and profits, as determined under United States federal income tax principles. For the Cayman Islands, PRC and U.S. federal income tax considerations applicable to an investment in our ADSs or Class A ordinary shares, see “Item 10. Additional Information—E. Taxation.” Furthermore, if we are considered a PRC tax resident enterprise for tax purposes, any dividends we pay to our overseas shareholders may be regarded as China-sourced income and as a result may be subject to PRC withholding tax. See “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—If we are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders or ADS holders.” For further discussion on PRC and United States federal income tax considerations of an investment in the ADSs, see “Item 10. Additional Information—E. Taxation.”

Restrictions on Foreign Exchange and the Ability to Transfer Cash between Entities, Across Borders and to U.S. Investors

Our cash dividends, if any, will be paid in U.S. dollars. The PRC government imposes controls on the convertibility of Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China. The majority of our income is received in Renminbi and shortages in foreign currencies may restrict our ability to pay dividends or other payments, or otherwise satisfy our foreign currency denominated obligations, if any. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and expenditures from trade-related transactions, can be made in foreign currencies without prior approval from SAFE as long as certain procedural requirements are met. Approval from appropriate government authorities is required if Renminbi is converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may, at its discretion, impose restrictions on access to foreign currencies for current account transactions and if this occurs in the future, we may not be able to pay dividends in foreign currencies to our shareholders.

Under PRC laws and regulations, our WFOEs and VIEs are subject to certain restrictions with respect to paying dividends or otherwise transferring any of their net assets to us. Relevant PRC laws and regulations permit the PRC companies to pay dividends only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Additionally, our WFOEs and the consolidated VIEs can only distribute dividends upon approval of the shareholders after they have met the PRC requirements for appropriation to the statutory reserves. Furthermore, cash transfers from our WFOEs to entities outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may temporarily delay the ability of our WFOEs and our VIEs to remit sufficient foreign currency to pay dividends or other payments to us, or otherwise satisfy their foreign currency denominated obligations.

As a result of these and other restrictions under the PRC laws and regulations, our WFOEs and the consolidated VIEs are restricted to transfer a portion of their net assets to us either in the form of dividends, loans or advances. Even though we currently do not require any such dividends, loans or advances from our WFOEs and the consolidated VIEs for working capital and other funding purposes, we may in the future require additional cash resources from our WFOEs and the consolidated VIEs due to changes in business conditions, to fund future acquisitions and developments, or merely declare and pay dividends to or distributions to our shareholders.

The Holding Foreign Companies Accountable Act

The Holding Foreign Companies Accountable Act, or the HFCAA, was enacted on December 18, 2020. The HFCA Act states that if the Securities and Exchange Commission, or the SEC, determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspection by the PCAOB for three consecutive years beginning in 2021, the SEC shall prohibit our shares or ADSs from being traded on a national securities exchange. Since our auditor is located in China, a jurisdiction where the PCAOB has been unable to conduct inspections without the approval of the Chinese authorities, our auditor is not currently inspected by the PCAOB, which may impact our ability to remain listed on a United States or other foreign exchange. The related risks and uncertainties could cause the value of our ADSs to significantly

7


Table of Contents

 

decline. For more details, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—The PCAOB is currently unable to inspect our auditor in relation to their audit work performed for our financial statements and the inability of the PCAOB to conduct inspections over our auditor deprives our investors with the benefits of such inspections,” “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—Our ADSs may be delisted and our ADSs and shares prohibited from trading in the over-the-counter market under the Holding Foreign Companies Accountable Act, or the HFCAA, if the PCAOB is unable to inspect or fully investigate auditors located in China. On December 16, 2021, PCAOB issued the HFCAA Determination Report, according to which our auditor is subject to the determinations that the PCAOB is unable to inspect or investigate completely. Under the current law, delisting and prohibition from over-the-counter trading in the U.S. could take place in 2024. If this happens there is no certainty that we will be able to list our ADS or shares on a non-U.S. exchange or that a market for our shares will develop outside of the U.S. The delisting of our ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment,” and “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—The potential enactment of the Accelerating Holding Foreign Companies Accountable Act would decrease the number of non-inspection years from three years to two, thus reducing the time period before our ADSs may be prohibited from over-the-counter trading or delisted. If this bill were enacted, our ADS could be delisted from the exchange and prohibited from over-the-counter trading in the U.S. in 2023.”

Permissions Required from the PRC Authorities for Our Operations

We conduct our business primarily through our subsidiaries, our VIEs and their subsidiaries in China. Our operations in China are governed by PRC laws and regulations. As of the date of this annual report, our PRC subsidiaries, our VIEs and their subsidiaries are required by PRC laws and regulations to obtain permits and approvals from PRC government authorities to operate our business in China, including, among others, project approvals and filings, construction land and project planning approvals, environment protection approvals, energy conservation review opinion, construction commencement permit and land use right certificate, and the value-added telecommunications services licenses. We have obtained the majority of these approvals which are material for the business operations of our Group, including the requisite VATS license held by our VIEs and their subsidiaries, and we are in the process of applying for the rest. However, given the uncertainties of interpretation and implementation of relevant laws and regulations and the enforcement practice by government authorities, we cannot assure you that we have obtained all the permits or licenses required for conducting our business in China. We may be required to obtain additional licenses, permits, filings or approvals for our businesses in the future. For more detailed information, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Business and Industry—Failure to comply with laws and regulations applicable to our business could subject us to fines and penalties and could also cause us to lose clients or otherwise harm our business” and “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—We may fail to obtain, maintain and update licenses and permits necessary to conduct our operations in the PRC, and our business may be materially and adversely affected as a result of any changes in the laws and regulations governing the VATS industry in the PRC.”

Approvals Required from the PRC Authorities for Offering Securities to Foreign Investors

In connection with our previous issuance of securities to foreign investors, under current PRC laws, regulations and regulatory rules, as of the date of this annual report, we, our PRC subsidiaries and our VIEs, (i) have not received any requirement from competent PRC governmental authorities to obtain permissions from the CSRC, (ii) have not received any requirement from competent PRC governmental authorities to go through cybersecurity review by the Cyberspace Administration of China, or the CAC, and (iii) have not received or were denied such requisite permissions by any PRC authority.

However, the PRC government has recently indicated an intent to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers. For more details on the recent regulatory developments and the risks to us and our investors relating to our failure to obtain or maintain any approvals that might be required for a future offering of our securities to foreign investors, see “Item 3. Key Information—D. Risk Factors—Risks Relating to Doing Business in China—The approval of and filing with the CSRC or other requirements from the CSRC or other PRC government authorities may be required under PRC law in connection with our future financing activities, and, if required, we cannot predict whether or for how long we will be able to obtain such approval or complete such filing or other administrative procedures.”

Financial Information Related to Our VIEs

The following tables present the condensed consolidating schedules of financial information for Chindata Group Holdings Limited, our subsidiaries, our VIEs and their subsidiaries for the periods and as of the dates presented. Our consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States, or U.S. GAAP. Our and the consolidated VIEs’ historical results are not necessarily indicative of results expected for future periods. You should read this information together with our consolidated financial statements and the related notes and “Item 5. Operating and Financial Review and Prospects” included elsewhere in this annual report.

8


Table of Contents

 

Selected Condensed Consolidated Balance Sheets Data

 

 

 

As of December 31, 2021

 

 

 

Chindata

Group

Holdings

Limited

 

 

Subsidiaries

 

 

VIEs and

Their

Subsidiaries

 

 

Eliminating

adjustments

 

 

Consolidated

Totals

 

 

 

RMB

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

459,522

 

 

 

3,353,018

 

 

 

577,753

 

 

 

-

 

 

 

4,390,293

 

Accounts receivable, net

 

 

-

 

 

 

72,509

 

 

 

588,518

 

 

 

-

 

 

 

661,027

 

Other current assets

 

 

66,690

 

 

 

1,089,163

 

 

 

140,150

 

 

 

-

 

 

 

1,296,003

 

Amounts due from Group companies

 

 

6,110,715

 

 

 

2,127,650

 

 

 

921,276

 

 

 

(9,159,641

)

 

 

-

 

Investment in subsidiaries and VIEs

 

 

3,550,034

 

 

 

97,979

 

 

 

-

 

 

 

(3,648,013

)

 

 

-

 

Property and equipment, net

 

 

-

 

 

 

9,377,723

 

 

 

57,832

 

 

 

(7,964

)

 

 

9,427,591

 

Lease right-of-use assets

 

 

-

 

 

 

717,795

 

 

 

222,574

 

 

 

-

 

 

 

940,369

 

Goodwill and intangible assets, net

 

 

-

 

 

 

760,886

 

 

 

17,797

 

 

 

-

 

 

 

778,683

 

Other non-current assets

 

 

595

 

 

 

1,177,276

 

 

 

10,114

 

 

 

-

 

 

 

1,187,985

 

Total assets

 

 

10,187,556

 

 

 

18,773,999

 

 

 

2,536,014

 

 

 

(12,815,618

)

 

 

18,681,951

 

Accounts payable

 

 

-

 

 

 

1,661,039

 

 

 

40,260

 

 

 

-

 

 

 

1,701,299

 

Accrued expenses and other liabilities

 

 

50,321

 

 

 

510,708

 

 

 

38,228

 

 

 

-

 

 

 

599,257

 

Amounts due to Group companies

 

 

 

 

 

 

7,039,622

 

 

 

2,111,460

 

 

 

(9,151,082

)

 

 

-

 

Bank loans

 

 

-

 

 

 

5,476,985

 

 

 

-

 

 

 

-

 

 

 

5,476,985

 

Lease liabilities

 

 

-

 

 

 

81,980

 

 

 

224,094

 

 

 

-

 

 

 

306,074

 

Other non-current liabilities

 

 

22,603

 

 

 

452,475

 

 

 

8,626

 

 

 

-

 

 

 

483,704

 

Total liabilities

 

 

72,924

 

 

 

15,222,809

 

 

 

2,422,668

 

 

 

(9,151,082

)

 

 

8,567,319

 

 

 

 

As of December 31, 2020

 

 

 

Chindata

Group

Holdings

Limited

 

 

Subsidiaries

 

 

VIEs and

Their

Subsidiaries

 

 

Eliminating

adjustments

 

 

Consolidated

Totals

 

 

 

RMB

(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

3,514,736

 

 

 

2,939,287

 

 

 

251,589

 

 

 

-

 

 

 

6,705,612

 

Accounts receivable, net

 

 

-

 

 

 

22,773

 

 

 

399,451

 

 

 

-

 

 

 

422,224

 

Other current assets

 

 

-

 

 

 

453,023

 

 

 

9,117

 

 

 

-

 

 

 

462,140

 

Amounts due from Group companies

 

 

3,288,014

 

 

 

1,143,305

 

 

 

529,845

 

 

 

(4,961,164

)

 

 

-

 

Investment in subsidiaries and VIEs

 

 

3,033,665

 

 

 

95,208

 

 

 

-

 

 

 

(3,128,873

)

 

 

-

 

Property and equipment, net

 

 

-

 

 

 

6,367,387

 

 

 

64,727

 

 

 

(8,284

)

 

 

6,423,830

 

Lease right-of-use assets

 

 

-

 

 

 

541,143

 

 

 

239,155

 

 

 

-

 

 

 

780,298

 

Goodwill and intangible assets, net

 

 

-

 

 

 

772,931

 

 

 

20,251

 

 

 

-

 

 

 

793,182

 

Other non-current assets

 

 

-

 

 

 

652,931

 

 

 

19,381

 

 

 

-

 

 

 

672,312

 

Total assets

 

 

9,836,415

 

 

 

12,987,988

 

 

 

1,533,516

 

 

 

(8,098,321

)

 

 

16,259,598

 

Accounts payable

 

 

-

 

 

 

1,154,336

 

 

 

31,694

 

 

 

-

 

 

 

1,186,030

 

Accrued expenses and other liabilities

 

 

65,388

 

 

 

207,053

 

 

 

32,519

 

 

 

-

 

 

 

304,960

 

Amounts due to Group companies

 

 

-

 

 

 

3,844,700

 

 

 

1,124,418

 

 

 

(4,969,118

)

 

 

-

 

Bank loans

 

 

-

 

 

 

4,189,033

 

 

 

-

 

 

 

-

 

 

 

4,189,033

 

Lease liabilities

 

 

-

 

 

 

66,969

 

 

 

242,359

 

 

 

-

 

 

 

309,328

 

Other non-current liabilities

 

 

31,559

 

 

 

491,112

 

 

 

8,108

 

 

 

-

 

 

 

530,779

 

Total liabilities

 

 

96,947

 

 

 

9,953,203

 

 

 

1,439,098

 

 

 

(4,969,118

)

 

 

6,520,130

 

 

9


Table of Contents

 

 

Selected Condensed Consolidated Statements of Operations Data

 

 

 

For the year ended December 31, 2021

 

 

 

Chindata

Group

Holdings

Limited

 

 

Subsidiaries

 

 

VIEs and

Their

Subsidiaries

 

 

Eliminating

adjustments

 

 

Consolidated

Totals

 

 

 

RMB

 

 

 

(in thousands)

 

Third-party revenue

 

-

 

 

 

196,272

 

 

 

2,656,005

 

 

-

 

 

 

2,852,277

 

Inter-company revenue

 

-

 

 

 

2,474,284

 

 

 

136,580

 

 

 

(2,610,864

)

 

-

 

Total costs and expenses

 

 

(20,135

)

 

 

(1,954,064

)

 

 

(2,797,639

)

 

 

2,594,706

 

 

 

(2,177,132

)

Share of income (loss) of subsidiaries and the VIEs

 

 

318,481

 

 

 

(13,216

)

 

-

 

 

 

(305,265

)

 

-

 

Others, net

 

 

18,074

 

 

 

(242,133

)

 

 

19,750

 

 

-

 

 

 

(204,309

)

Income before income taxes

 

 

316,420

 

 

 

461,143

 

 

 

14,696

 

 

 

(321,423

)

 

 

470,836

 

Income tax expense

 

-

 

 

 

(142,662

)

 

 

(11,754

)

 

-

 

 

 

(154,416

)

Net income

 

 

316,420

 

 

 

318,481

 

 

 

2,942

 

 

 

(321,423

)

 

 

316,420

 

 

 

 

For the year ended December 31, 2020

 

 

 

Chindata

Group

Holdings

Limited

 

 

Subsidiaries

 

 

VIEs and

Their

Subsidiaries

 

 

Eliminating

adjustments

 

 

Consolidated

Totals

 

 

 

RMB

 

 

 

(in thousands)

 

Third-party revenue

 

-

 

 

 

124,991

 

 

 

1,706,086

 

 

-

 

 

 

1,831,077

 

Inter-company revenue

 

-

 

 

 

1,494,586

 

 

 

78,749

 

 

 

(1,573,335

)

 

-

 

Total costs and expenses

 

 

(53,945

)

 

 

(1,459,339

)

 

 

(1,866,070

)

 

 

1,576,505

 

 

 

(1,802,849

)

Share of losses of subsidiaries and the VIEs

 

 

(232,287

)

 

 

(49,601

)

 

-

 

 

 

281,888

 

 

-

 

Others, net

 

 

2,887

 

 

 

(264,879

)

 

 

17,758

 

 

-

 

 

 

(244,234

)

Loss before income taxes

 

 

(283,345

)

 

 

(154,242

)

 

 

(63,477

)

 

 

285,058

 

 

 

(216,006

)

Income tax expense

 

-

 

 

 

(78,045

)

 

 

10,706

 

 

-

 

 

 

(67,339

)

Net loss

 

 

(283,345

)

 

 

(232,287

)

 

 

(52,771

)

 

 

285,058

 

 

 

(283,345

)

 

 

 

For the year ended December 31, 2019

 

 

 

Chindata

Group

Holdings

Limited

 

 

Subsidiaries

 

 

VIEs and

Their

Subsidiaries

 

 

Eliminating

adjustments

 

 

Consolidated

Totals

 

 

 

RMB

 

 

 

(in thousands)

 

Third-party revenue

 

-

 

 

 

140,895

 

 

 

712,115

 

 

-

 

 

 

853,010

 

Inter-company revenue

 

-

 

 

 

551,251

 

 

 

32,622

 

 

 

(583,873

)

 

-

 

Total costs and expenses

 

 

(33,523

)

 

 

(675,930

)

 

 

(794,397

)

 

 

588,786

 

 

 

(915,064

)

Share of losses of subsidiaries and the VIEs

 

 

(140,967

)

 

 

(38,998

)

 

-

 

 

 

179,965

 

 

-

 

Others, net

 

 

47

 

 

 

(113,517

)

 

 

48,021

 

 

 

(43,940

)

 

 

(109,389

)

Loss before income taxes

 

 

(174,443

)

 

 

(136,299

)

 

 

(1,639

)

 

 

140,938

 

 

 

(171,443

)

Income tax expense

 

-

 

 

 

74

 

 

 

1,668

 

 

-

 

 

 

1,742

 

Net loss

 

 

(174,443

)

 

 

(136,225

)

 

 

29

 

 

 

140,938

 

 

 

(169,701

)

 

10


Table of Contents

 

 

Selected Condensed Consolidated Cash Flows Data

 

 

 

For the year ended December 31, 2021

 

 

 

Chindata

Group

Holdings

Limited

 

 

Subsidiaries

 

 

VIEs and

Their

Subsidiaries

 

 

Eliminating

adjustments

 

 

Consolidated

Totals

 

 

 

RMB

 

 

 

(in thousands)

 

Net cash (used in) generated from operating activities

 

 

(6,049

)

 

 

610,878

 

 

 

460,676

 

 

-