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Related Party Transactions

12 Months Ended

Dec. 31, 2021

20.	RELATED PARTY TRANSACTIONS

a)	Related Parties


Name of related parties		Relationship with the Group
Kingsoft Corporation Limited and its subsidiaries (other than all of entities of the Group) (“Kingsoft Group”)		Principal shareholder of the Company

Cheetah Mobile Inc. and its subsidiaries (“Cheetah Group”)		Entity that Kingsoft Corporation Limited exercises significant influence over

Xiaomi Corporation and its subsidiaries (“Xiaomi Group”)		Entity controlled by a director of the Company

The Company was controlled by Kingsoft before the completion of IPO. As Kingsoft lost control over the Company upon the completion of the IPO on May 8, 2020, Cheetah Group is no longer a related party of the Company.

b)	The Group had the following related party transactions:


	For the year ended December 31
	2019		2020		2021		2021
	RMB		RMB		RMB		US$
Revenues:
Public cloud services provided to Xiaomi Group		570,431		655,165		749,597		117,628
Public cloud services provided to Kingsoft Group		109,177		119,011		156,158		24,505
Public cloud services provided to Cheetah Group		8,579		3,111		—		—
Enterprise cloud services provided to Xiaomi Group		—		—		22,857		3,587
Enterprise cloud services provided to Kingsoft Group		—		—		838		131
Other services provided to Xiaomi Group		120		82		—		—
Other services provided to Kingsoft Group		—		—		74		12

		688,307		777,369		929,524		145,863

Purchase of devices from Xiaomi Group		2,707		2,177		1,349		212
Interest expense on loan s due to Xiaomi Group		—		—		16,633		2,610
Interest expense on loan due to Kingsoft Group		4,925		—		4,088		641
Rental of building from Xiaomi Group*		9,578		47,900		56,452		8,859
Rental of office space, and administrative services from Kingsoft Group**		24,524		13,801		13,321		2,090

		41,734		63,878		91,843		14,412

The Group entered into agreements to lease building and office space from Xiaomi Group. As of December 31, 2020 and 2021, the related operating lease

right-of-use

assets amounted to RMB243,585 and RMB210,551 (US$33,024) and operating lease liabilities amounted to RMB250,646 and RMB238,180 (US$37,356), respectively.

**	The Group entered into short-term agreements to lease office space from Kingsoft Group in 2019 . The agreements expired in December 2019. The amounts in 2020 and 2021 were administrative services from Kingsoft Group.

c)	The Group had the following related party balances at the end of the year:


	As at December 31
	2020		2021		2021
	RMB		RMB		US$
Amounts due from related parties:
Xiaomi Group		165,568		175,170		27,488
Kingsoft Group		45,258		37,731		5,921

		210,826		212,901		33,409

Amounts due to related parties:
Kingsoft Group*		80,294		544,376		85,425
Xiaomi Group**		32,704		764,941		120,036

		112,998		1,309,317		205,461

*	During 2021, the Group entered into a loan agreement with Kingsoft Group for an aggregate principal amount of RMB500,000 (US$78,461) bearing a fixed annual interest rate of 4.65%. The loan will be repaid in November 2022.

During 2021, the Group entered into several loan agreements with a weighted average interest rate of

4.36%

with Xiaomi Group which are

secured by the Group’s electronic equipment. As of December 31, 2021, the current portion and non-current portion of the loans was

RMB236,206 (US$37,066) and RMB472,882 (US$74,206)

respectively.

Under the terms of the agreements, the Group will repay in fixed

quarterly installments over 3 years

according to the following schedule:


	2021		2021
	RMB		US$
2022		236,206		37,066
2023		241,168		37,845
2024		231,714		36,361

		709,088		111,272

All the balances with related parties except for the loans from Xiaomi Group were unsecured. All outstanding balances except for loans from Xiaomi Group and Kingsoft Group are repayable on demand unless otherwise disclosed. The effect of adopting ASC 326 to due from related parties was immaterial.