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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, 2022.

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

 

https://cdn.kscope.io/f75bf4eaca865fdd46e212c826b73dc8-img242786857_0.jpg 

 

 

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:

730,800,606 ordinary shares outstanding, consisting of 401,576,883 Class A ordinary shares and 329,223,723 outstanding Class B ordinary shares, par value US$0.00001 per share, as of December 31, 2022.

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.

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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

4

 

ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS

4

 

ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE

4

 

ITEM 3. KEY INFORMATION

4

 

ITEM 4. INFORMATION ON THE COMPANY

62

 

ITEM 4A. UNRESOLVED STAFF COMMENTS

103

 

ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS

103

 

ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

117

 

ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS

128

 

ITEM 8. FINANCIAL INFORMATION

129

 

ITEM 9. THE OFFER AND LISTING

130

 

ITEM 10. ADDITIONAL INFORMATION

130

 

ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

144

 

ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES

146

 

PART II

148

 

ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES

148

 

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

148

 

ITEM 15. CONTROLS AND PROCEDURES

148

 

ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT

149

 

ITEM 16B. CODE OF ETHICS

149

 

ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES

149

 

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

149

 

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

150

 

ITEM 16F. CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT

150

 

ITEM 16G. CORPORATE GOVERNANCE

150

 

ITEM 16H. MINE SAFETY DISCLOSURE

150

 

ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

150

 

 

ITEM 16J. INSIDER TRADING POLICIES

 

150

 

 

 

PART III

150

 

ITEM 17 FINANCIAL STATEMENTS

150

 

ITEM 18 FINANCIAL STATEMENTS

150

 

ITEM 19. EXHIBITS

151

 

SIGNATURES

154

 


Table of Contents

 

 


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 mainland 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, including Hong Kong, Macau and Taiwan; the only instances in which Hong Kong, Macau and Taiwan are not included in the definition of “China” or “PRC” is when we reference specific laws and regulations that have been adopted by the People’s Republic of China and other legal and tax matters related to the People’s Republic of China;
“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, the consolidated variable interest entities, or the 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;
“VIEs” refer to the 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.;
“PRC government” or “State” refers to the central government of the PRC, including all political subdivisions (including provincial, municipal and other regional or local government entities) and its organs or, as the context requires, any of them;
“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 mainland 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 and Malaysian Ringgit into U.S. dollars were made at RMB6.8972 to US$1.00 and MYR4.4002 to US$1.00, respectively, the noon buying rates on December 30, 2022 as set

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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 21, 2023, the noon buying rate for Renminbi was RMB6.8920 to US$1.00. Due to rounding, numbers presented throughout this annual report may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

 

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

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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.

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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 the 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 mainland China and conducts a substantial part of its operations in mainland China through (i) its mainland China 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 the 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 mainland China through the VIEs, and rely on contractual arrangements among our mainland China subsidiaries, the VIEs and their shareholders to control the business operations of the VIEs. Chindata Group Holdings Limited does not hold any equity interest in the consolidated VIEs. We have consolidated the financial results of the VIEs and their respective subsidiaries in our consolidated financial statements in accordance with U.S. GAAP. Revenues contributed by the VIEs and their subsidiaries accounted for 93.2%, 93.1% and 93.6% of our total revenues for the years of 2020, 2021 and 2022, 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, the consolidated variable interest entities, or the VIEs. Investors in the ADSs are not purchasing, and may never directly hold, equity interests in the consolidated VIEs.

We have control over the VIEs through our WFOEs. Our WFOEs entered into a series of contractual arrangements with the 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 the VIEs, (ii) receive substantially all of the economic benefits of the VIEs, and (iii) have an exclusive option to purchase all or part of the equity interests in the 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 the 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 mainland China court. See “Item 3. Key Information—D. Risk Factors—Risks Relating to Our Corporate Structure—We rely on contractual arrangements with the consolidated VIEs and their shareholders for our operations in mainland 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 the 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 the 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 the 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 the VIEs is found to be in violation of any existing or future PRC laws or regulations, or fail

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to obtain or maintain any of the required permits or approvals, the relevant PRC regulatory authorities would have certain 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 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 mainland 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, the use of the VIE structure, oversight on cybersecurity and data privacy, and anti-monopoly regulatory actions. 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 Our Corporate Structure” and “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, the significant VIEs and the VIE’s principal subsidiaries.

https://cdn.kscope.io/f75bf4eaca865fdd46e212c826b73dc8-img242786857_1.jpg 

____________

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 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., Huailai Sidaduo Data Co., Ltd., Huailai Sidaxin Data Co., Ltd., Huailai

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Sidahao Data Co., Ltd., Huailai Sidajun Data Co., Ltd., and Huailai Sidaqi 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 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 six 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., Nantong Sidakun Data 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., Shanxi Xintong Operation and Maintenance Service 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 seventeen subsidiaries are Zhangjiakou Sinan Data Co., Ltd., Zhangjiakou Siyue Data Co., Ltd., Chindata (Hebei) Co., Ltd., Zhangjiakou Siheng Data Co., Ltd., Zhangjiakou Sidong Data Co., Ltd., Zhangjiakou Sixu Data Co., Ltd. Zhangjiakou Sibo Data Co., Ltd., Zhangjiakou Sichang Data Co., Ltd., Hebei Xintong Operation and Maintenance Service Co., Ltd., Hebei Xintai Property Management Co., Ltd., Huailai Sidashi 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.

Risks Relating to the VIEs and Our Mainland China Operations

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

Chindata Group Holdings Limited is a Cayman Islands holding company primarily operating in mainland China through its subsidiaries and contractual arrangements with the VIEs. Investors in the ADSs thus are not purchasing, and may never directly hold, equity interests in the VIEs. There are 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 the VIEs’ operations in mainland China, including potential future actions by the PRC government, which could affect the enforceability of our contractual arrangements with the 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 the VIEs or forfeit our rights under the contractual arrangements;
The PRC government has significant authority to exert influence on the mainland China operations of an offshore holding company, such as us. Therefore, investors in the ADSs and our and the 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 the VIEs’ business, financial condition, and results of operations;
We and the VIEs are subject to extensive and evolving legal development, non-compliance with which, or changes in which, may materially and adversely affect our and the VIEs’ business and prospects, and may result in a material change in our and the VIEs’ operations and/or the value of our ADSs or could significantly limit or completely hinder our and the 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. 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 the VIEs’ business operations could result in a material adverse change in our and the VIEs’ operations and the value of our ADSs;
Changes and developments in the PRC legal system and the interpretation and enforcement of PRC laws, rules and regulations may subject us to uncertainties;
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;

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China’s M&A Rules and certain other PRC regulations establish required procedures for some acquisitions of or investment into mainland China companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in mainland China; and
We rely on contractual arrangements with the consolidated VIEs and their shareholders for our operations in mainland 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 mainland 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 mainland China subsidiaries only through capital contributions or loans. Because Chindata Group Holdings Limited and its mainland China subsidiaries control the VIEs through contractual arrangements, they are not able to make direct capital contribution to the VIEs and their subsidiaries. However, they may transfer cash to the VIEs by loans or by making payment to the VIEs for intra-group transactions. Historically, there was no capital contribution or loan investment from Chindata Group Holdings Limited to the VIEs and their subsidiaries in mainland China.

For the years ended December 31, 2020, 2021 and 2022, Chindata Group Holdings Limited, through its intermediate holding companies, provided capital contribution of RMB26.1 million, nil and nil, respectively, to its subsidiaries. For the years ended December 31, 2020, 2021 and 2022, there were no loans that Chindata Group Holdings Limited provided to its subsidiaries or the 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 the 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 the 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 the VIEs based on the quantity, difficulty, urgency and other factors of the services provided by it to the VIEs, and calculate the service fee payable by the VIEs accordingly. The cash flows between the subsidiaries and the VIEs also include cash paid by the WFOEs and their subsidiaries to some of the VIEs for certain administrative services.

For the years ended December 31, 2020, 2021 and 2022, the amount of service fees that the VIEs paid to the WFOEs, their subsidiaries and other mainland China subsidiaries was RMB1,443.6 million, RMB2,222.9 million and RMB3,897.8 million, respectively, and such amount of service fees was included in “inter-company costs and expenses” in the condensed consolidating financial statements related to the VIEs. The amount that the WFOEs, their subsidiaries and other mainland China subsidiaries paid to the VIEs was RMB187.3 million, RMB421.1 million and RMB1,087.7 million, respectively. See “Item 3. Key Information—Financial Information Related to the VIEs.”

For the years ended December 31, 2020, 2021 and 2022, no dividends or distributions were made to Chindata Group Holdings Limited by its subsidiaries and the VIEs. Under PRC laws and regulations, our mainland China subsidiaries and the 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 mainland 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 mainland China subsidiaries and the net assets of the VIEs, totaling RMB2,594.6 million, RMB3,837.9 million and RMB4,447.6 million as of December 31, 2020, 2021 and 2022, respectively. If our mainland China 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 mainland China 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 mainland China 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 the VIEs or to make additional capital contributions to our mainland China 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 in China—We may rely principally on dividends and other distributions on equity paid by our WFOEs to fund

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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 years ended December 31, 2020, 2021 and 2022, 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 mainland 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 mainland 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 the 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 mainland 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 the 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 HFCAA 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. On December 2, 2021, the SEC adopted final amendments implementing the disclosure and submission requirements of the HFCAA, pursuant to which the SEC will identify an issuer as a “Commission-Identified Issuer” if the issuer has

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filed an annual report containing an audit report issued by a registered public accounting firm that the PCAOB has determined it is unable to inspect or investigate completely, and will then impose a trading prohibition on an issuer after it is identified as a Commission-Identified Issuer for three consecutive years. On June 22, 2021, the U.S. Senate passed a bill known as the Accelerating Holding Foreign Companies Accountable Act, to amend Section 104(i) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7214(i)) to prohibit securities of any registrant from being listed on any of the U.S. securities exchanges or traded over-the-counter if the auditor of the registrant’s financial statements is not subject to PCAOB inspection for two consecutive years, instead of three consecutive years as currently enacted in the HFCAA. On February 4, 2022, the U.S. House of Representatives passed the America Competes Act of 2022 which includes the exact same amendments as the bill passed by the Senate. On December 29, 2022, the U.S. President signed the Consolidated Appropriations Act, 2023, which, among other things, amended the HFCAA to reduce the number of consecutive years an issuer can be identified as a Commission-Identified Issuer before the Commission must impose an initial trading prohibition on the issuer’s securities from three years to two years.

On December 16, 2021, the PCAOB issued a report to notify the SEC of its determination that the PCAOB is unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong, or the 2021 Determinations, and our auditor, Ernst & Young Hua Ming LLP, was subject to this determination. Therefore, we were identified as a “Commission-Identified Issuer” shortly after the filing of our annual report on Form 20-F in May 2022. In accordance with the amended HFCAA, our securities will be prohibited from being traded on a national securities exchange or in the over-the-counter trading market in the United States in 2023 if the PCAOB is unable to inspect or investigate completely our auditor and we are identified as a “Commission-Identified Issuer” for two consecutive years. As a result, the Nasdaq may determine to delist our securities. The related risks and uncertainties could cause the value of our ADSs to significantly decline or become worthless. On August 26, 2022, the PCAOB signed a Statement of Protocol with the China Securities Regulatory Commission, or the CSRC, and the Ministry of Finance, taking the first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong. On December 15, 2022, the PCAOB determined that it was able to secure complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong and vacated the 2021 Determinations. However, should PRC authorities obstruct or otherwise fail to facilitate the PCAOB’s access in the future, the PCAOB will consider the need to issue a new determination. Notwithstanding the foregoing, in the event it is later determined that the PCAOB is unable to inspect or investigate completely our auditor because of a position taken by an authority in a foreign jurisdiction, then such lack of inspection could cause our securities to be delisted from the stock exchange.

For more details, see “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 mainland China. If the delisting 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 cause the value our ADSs to become worthless.”

Permissions Required from the PRC Authorities for Our Operations

We conduct our business primarily through our subsidiaries, the VIEs and their subsidiaries in mainland China. Our operations in mainland China are governed by PRC laws and regulations. As of the date of this annual report, our mainland China subsidiaries, the 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 mainland 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 the 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 mainland 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 mainland China, 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 mainland China.”

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 effective PRC laws and regulations, as of the date of this annual report, we are not aware of, after consulting our PRC legal counsel, Fangda Partners, any PRC laws or regulations which explicitly require us to obtain any permission from the CSRC or other Chinese authorities, and we, our mainland China subsidiaries and the VIEs, (i) have not received any requirement from competent PRC governmental authorities to obtain permissions from the CSRC, (ii) have not received any

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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.

The PRC government has recently promulgated new or proposed laws and regulations to further regulate securities offerings that are conducted overseas and indicated an intent to exert more oversight and control over foreign investment in mainland China-based issuers. For more detailed information, see “Item 4. Information on the Company—B. Business Overview—Regulations—M&A Rules and Overseas Listing” and “Item 4. Information on the Company—B. Business Overview—Regulations—Regulations on Privacy Protection”. According to these new laws and regulations and the draft laws and regulations if enacted in their current forms, in connection with our future offshore offering or listing activities, we may be required to fulfill filing, reporting procedures with or obtain approval from the CSRC, and may be required to go through cybersecurity review by the PRC authorities. Although we intend to fully comply with the then effective relevant laws and regulations applicable to any securities offerings we may conduct, there are uncertainties with respect to whether we will be able to fully comply with requirements to obtain any permissions and approvals from, or complete any reporting or filing procedures with, PRC authorities that may be in effect in the future. If we, our mainland China subsidiaries or the VIEs (i) do not maintain such permissions or approvals, (ii) inadvertently conclude that such permissions, approvals or filing or reporting are not required, or (iii) are required to obtain or fulfill such permissions, approvals or filing or reporting in the future when applicable laws, regulations, or interpretations change but we fail to obtain or fulfill such necessary approvals, permits, registrations or filings in a timely manner, or at all, in any of the foregoing circumstances, we may be subject to penalties, including fines, suspension of business and revocation of required licenses, our ability to continue to offer securities to investors may also be significantly limited or completely hindered, and our securities may be caused to decline in value or become worthless. 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 the VIEs

The following tables present the condensed consolidating financial statements for Chindata Group Holdings Limited, non-mainland China subsidiaries of the Company, WFOEs, their subsidiaries and other mainland China subsidiaries of the Company, and the VIEs and their subsidiaries for the periods and as of the dates presented. As a result of our direct ownership in our WFOEs and the aforementioned contractual arrangements, we are regarded as the primary beneficiary of each of the VIEs for accounting purpose only, and we treat them as our consolidated affiliated entities under the accounting principles generally accepted in the United States, or U.S. GAAP. We have consolidated the financial results of the VIEs and their respective subsidiaries in our consolidated financial statements in accordance with U.S. GAAP. Our consolidated financial statements are prepared and presented in accordance with 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.

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Condensed Consolidating Balance Sheets Data

 

 

As of December 31, 2022

 

 

Chindata
Group
Holdings
Limited

 

 

Non-Mainland China Subsidiaries*

 

 

WFOEs, Their Subsidiaries and Other Mainland China Subsidiaries**

 

 

VIEs and
Their
Subsidiaries

 

 

Eliminating
Adjustments

 

 

Consolidated
Totals

 

 

RMB
(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

156,062

 

 

 

327,028

 

 

 

2,185,298

 

 

 

447,526

 

 

 

 

 

 

3,115,914

 

Accounts receivable, net

 

 

 

 

 

198,866

 

 

 

51,726

 

 

 

1,687,100

 

 

 

 

 

 

1,937,692

 

Other current assets

 

 

3,927

 

 

 

879,991

 

 

 

701,728

 

 

 

117,170

 

 

 

 

 

 

1,702,816

 

Amounts due from Group companies

 

 

5,261,695

 

 

 

4,622,450

 

 

 

3,569,688

 

 

 

1,463,722

 

 

 

(14,917,555

)

 

 

 

Investment in subsidiaries

 

 

6,209,162

 

 

 

6,657,695

 

 

 

 

 

 

 

 

 

(12,866,857

)

 

 

 

Contractual interest in the consolidated VIEs (1)

 

 

 

 

 

 

 

 

109,480

 

 

 

 

 

 

(109,480

)

 

 

 

Property and equipment, net

 

 

 

 

 

3,572,035

 

 

 

9,457,648

 

 

 

60,832

 

 

 

278,641

 

 

 

13,369,156

 

Lease right-of-use assets

 

 

 

 

 

408,436

 

 

 

639,230

 

 

 

190,266

 

 

 

 

 

 

1,237,932

 

Goodwill and intangible assets, net

 

 

 

 

 

37,394

 

 

 

740,346

 

 

 

15,342

 

 

 

 

 

 

793,082

 

Other non-current assets

 

 

 

 

 

235,182

 

 

 

696,970

 

 

 

11,487

 

 

 

 

 

 

943,639

 

Total assets

 

 

11,630,846

 

 

 

16,939,077

 

 

 

18,152,114

 

 

 

3,993,445

 

 

 

(27,615,251

)

 

 

23,100,231

 

Accounts payable

 

 

 

 

 

975,532

 

 

 

1,410,691

 

 

 

34,153

 

 

 

 

 

 

2,420,376

 

Accrued expenses and other liabilities

 

 

58,685

 

 

 

111,736

 

 

 

333,895

 

 

 

80,523

 

 

 

 

 

 

584,839

 

Amounts due to Group companies

 

 

647,039

 

 

 

5,261,695

 

 

 

5,446,956

 

 

 

3,545,509

 

 

 

(14,901,199

)

 

 

 

Bank loans

 

 

 

 

 

4,214,996

 

 

 

4,156,529

 

 

 

 

 

 

 

 

 

8,371,525

 

Lease liabilities

 

 

 

 

 

84,120

 

 

 

7,578

 

 

 

193,041

 

 

 

 

 

 

284,739

 

Other non-current liabilities

 

 

15,568

 

 

 

80,801

 

 

 

425,098

 

 

 

7,731

 

 

 

 

 

 

529,198

 

Total liabilities

 

 

721,292

 

 

 

10,728,880

 

 

 

11,780,747

 

 

 

3,860,957

 

 

 

(14,901,199

)

 

 

12,190,677

 

Total shareholders’ equity

 

 

10,909,554

 

 

 

6,210,197

 

 

 

6,371,367

 

 

 

132,488

 

 

 

(12,714,052

)

 

 

10,909,554

 

 

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As of December 31, 2021

 

 

Chindata
Group
Holdings
Limited

 

 

Non-Mainland China Subsidiaries*

 

 

WFOEs, Their Subsidiaries and Other Mainland China Subsidiaries**

 

 

VIEs and
Their
Subsidiaries

 

 

Eliminating
Adjustments

 

 

Consolidated
Totals

 

 

RMB
(in thousands)

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

459,522

 

 

 

760,583

 

 

 

2,592,435

 

 

 

577,753

 

 

 

 

 

 

4,390,293

 

Accounts receivable, net

 

 

 

 

 

14,424

 

 

 

58,085

 

 

 

588,518

 

 

 

 

 

 

661,027

 

Other current assets

 

 

66,690

 

 

 

309,986

 

 

 

779,177

 

 

 

140,150

 

 

 

 

 

 

1,296,003

 

Amounts due from Group companies

 

 

6,110,715

 

 

 

4,315,399

 

 

 

2,127,650

 

 

 

921,276

 

 

 

(13,475,040

)

 

 

 

Investment in subsidiaries

 

 

3,550,034

 

 

 

4,991,407

 

 

 

 

 

 

 

 

 

(8,541,441

)

 

 

 

Contractual interest in the consolidated VIEs (1)

 

 

 

 

 

 

 

 

94,780

 

 

 

 

 

 

(94,780

)

 

 

 

Property and equipment, net

 

 

 

 

 

1,306,918

 

 

 

7,910,494

 

 

 

57,832

 

 

 

152,347

 

 

 

9,427,591

 

Lease right-of-use assets

 

 

 

 

 

231,503

 

 

 

486,292

 

 

 

222,574

 

 

 

 

 

 

940,369

 

Goodwill and intangible assets, net

 

 

 

 

 

6,145

 

 

 

754,741

 

 

 

17,797

 

 

 

 

 

 

778,683

 

Other non-current assets

 

 

595

 

 

 

525,155

 

 

 

652,121

 

 

 

10,114

 

 

 

 

 

 

1,187,985

 

Total assets

 

 

10,187,556

 

 

 

12,461,520

 

 

 

15,455,775

 

 

 

2,536,014

 

 

 

(21,958,914

)

 

 

18,681,951

 

Accounts payable

 

 

 

 

 

82,878

 

 

 

1,578,161

 

 

 

40,260

 

 

 

 

 

 

1,701,299

 

Accrued expenses and other liabilities

 

 

50,321

 

 

 

283,252

 

 

 

227,456

 

 

 

38,228

 

 

 

 

 

 

599,257

 

Amounts due to Group companies

 

 

 

 

 

6,110,714

 

 

 

5,247,030

 

 

 

2,111,460

 

 

 

(13,469,204

)

 

 

 

Bank loans

 

 

 

 

 

2,266,574

 

 

 

3,210,411

 

 

 

 

 

 

 

 

 

5,476,985

 

Lease liabilities

 

 

 

 

 

66,369

 

 

 

15,611

 

 

 

224,094

 

 

 

 

 

 

306,074

 

Other non-current liabilities

 

 

22,603

 

 

 

100,543

 

 

 

351,932

 

 

 

8,626

 

 

 

 

 

 

483,704

 

Total liabilities

 

 

72,924

 

 

 

8,910,330

 

 

 

10,630,601

 

 

 

2,422,668

 

 

 

(13,469,204

)

 

 

8,567,319

 

Total shareholders’ equity

 

 

10,114,632

 

 

 

3,551,190

 

 

 

4,825,174

 

 

 

113,346

 

 

 

(8,489,710

)

 

 

10,114,632

 

 

Condensed Consolidating Statements of Operations Data

 

 

For the year ended December 31, 2022

 

 

Chindata
Group
Holdings
Limited

 

 

Non-Mainland China Subsidiaries*

 

 

WFOEs, Their Subsidiaries and Other Mainland China Subsidiaries**

 

 

VIEs and
Their
Subsidiaries

 

 

Eliminating
Adjustments

 

 

Consolidated
Totals

 

 

RMB
(in thousands)

 

Third-party revenue

 

 

 

 

 

276,264

 

 

 

13,924

 

 

 

4,261,474

 

 

 

 

 

 

4,551,662

 

Inter-company revenue(2)

 

 

 

 

 

 

 

 

4,057,864

 

 

 

178,655

 

 

 

(4,236,519

)

 

 

 

Third-party costs and expenses

 

 

(20,592

)

 

 

(346,910

)

 

 

(2,606,968

)

 

 

(388,732

)

 

 

 

 

 

(3,363,202

)

Inter-company costs and expenses(2)

 

 

 

 

 

 

 

 

(175,834

)

 

 

(4,051,093

)

 

 

4,226,927

 

 

 

 

Share of income of subsidiaries

 

 

658,862

 

 

 

954,397

 

 

 

 

 

 

 

 

 

(1,613,259

)

 

 

 

Share of contractual interest in the consolidated VIEs(3)

 

 

 

 

 

 

 

 

6,845

 

 

 

 

 

 

(6,845

)

 

 

 

Others, net

 

 

13,360

 

 

 

(257,060

)

 

 

(139,598

)

 

 

15,609

 

 

 

125,245

 

 

 

(242,444

)

Income before income taxes

 

 

651,630

 

 

 

626,691

 

 

 

1,156,233

 

 

 

15,913

 

 

 

(1,504,451

)

 

 

946,016

 

Income tax expense

 

 

 

 

 

32,171

 

 

 

(321,932

)

 

 

(4,625

)

 

 

 

 

 

(294,386

)