32.

PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed

balance sheets


	Note			As of December 31,
				2016			2017
				RMB			RMB			US$
ASSETS
Current assets
Cash and cash equivalents					596,871			845,632			129,971
Restricted cash					1,759,726			71,412			10,976
Short-term investments					277,946			548,873			84,360
Prepaid expenses and other current assets					103,271			131,834			20,263
Amount due from a related party		(b	)		97,748			26,137			4,017
Amount due from subsidiaries		(b	)		3,208,620			4,285,743			658,707

Total current assets					6,044,182			5,909,631			908,294

Non-current assets
Investments in subsidiaries					2,133,242			1,259,455			193,575

Total non-current assets					2,133,242			1,259,455			193,575

Total assets					8,177,424			7,169,086			1,101,869

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accrued expenses and other payables					38,599			70,504			10,837
Short-term bank borrowings					1,500,000			—			—
Account payables					10,672			6,351			976
Interest payable					5,759			56,809			8,731
Amount due to related parties		(b	)		68,131			39,068			6,005
Amount due to subsidiaries		(b	)		9,732			17,613			2,707
Bonds payable		(d	)		419,316			11,139			1,712

Total current liabilities					2,052,209			201,484			30,968

Non-current liabilities
Bonds payable		(d	)		—			1,918,069			294,802

Total non-current liabilities					—			1,918,069			294,802

Total liabilities					2,052,209			2,119,553			325,770

Shareholders’ equity:
Class A Ordinary shares (par value of US$0.00001 per share; 1,200,000,000 and 1,200,000,000 shares authorized; 505,207,968 and 496,636,128 shares issued and outstanding as of December 31, 2016 and 2017, respectively)					33			34			5
Class B Ordinary shares (par value of US$0.00001 per share; 300,000,000 and 300,000,000 shares authorized; 174,649,638 and 174,649,638 shares issued and outstanding as of December 31, 2016 and 2017, respectively)					12			12			2
Additional paid-in capital					9,015,846			8,980,407			1,380,263
Accumulated other comprehensive income (loss)					118,290			(2,673	)		(411	)
Accumulated deficit					(2,804,409	)		(3,590,564	)		(551,859	)
Treasury stock					(204,557	)		(337,683	)		(51,901	)

Total shareholders’ equity					6,125,215			5,049,533			776,099

Total liabilities and shareholders’ equity					8,177,424			7,169,086			1,101,869

Condensed

statements of operations


	For the year ended December 31,
	2015			2016			2017
	RMB			RMB			RMB			US$
Operating Expenses
General and administrative expenses		(166,662	)		(124,450	)		(145,890	)		(22,423	)
Changes in the fair value of contingent purchase consideration payables		(43,325	)		93,307			(937	)		(144	)

Operating loss		(209,987	)		(31,143	)		(146,827	)		(22,567	)
Other income		(152,100	)		(169,915	)		(95,210	)		(14,634	)
Share of losses from subsidiaries and Consolidated VIEs		(66,012	)		(432,540	)		(530,693	)		(81,566	)

Loss before income taxes		(428,099	)		(633,598	)		(772,730	)		(118,767	)
Income tax expense		—			—			—			—

Net loss		(428,099	)		(633,598	)		(772,730	)		(118,767	)

Condensed statements of comprehensive loss


	For the year ended December 31,
	2015			2016			2017
	RMB			RMB			RMB			US$
Net loss		(428,099	)		(633,598	)		(772,730	)		(118,767	)
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustments, net of tax of nil		41,518			142,526			(120,963	)		(18,592	)

Other comprehensive income (loss), net of tax of nil:		41,518			142,526			(120,963	)		(18,592	)

Comprehensive loss		(386,581	)		(491,072	)		(893,693	)		(137,359	)

Comprehensive loss attributable to the Company’s ordinary shareholders		(386,581	)		(491,072	)		(893,693	)		(137,359	)

Condensed statements of cash flows


	For the year ended December 31,
	2015			2016			2017
	RMB			RMB			RMB			US$
Net cash used in operating activities		(26,621	)		(78,567	)		(18,324	)		(2,816	)
Net cash used in investing activities		(977,300	)		(617,613	)		(1,291,042	)		(198,430	)
Net cash generated from financing activities		1,798,230			494,851			1,558,127			239,480

Net increase(decrease) in cash and cash equivalents		794,309			(201,329	)		248,761			38,234
Cash and cash equivalents at beginning of the year		3,891			798,200			596,871			91,737

Cash and cash equivalents at end of the year		798,200			596,871			845,632			129,971

(a)

Basis of presentation

In the Company-only financial statements, the Company’s investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since inception.

The Company records its investment in its subsidiary under the equity method of accounting as prescribed in ASC 323-10, Investment-Equity Method and Joint Ventures, and such investment is presented on the balance sheet as “Investment in subsidiaries” and the share of the subsidiaries’ profit or loss is presented as “Share of profits (losses) of subsidiaries and Consolidated VIEs” on the statements of operations.

The subsidiaries did not pay any dividends to the Company for the years presented.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted and as such, these Company-only financial statements should be read in conjunction with the Company’s consolidated financial statements.

(b)

Related party transactions

The Company had the following related party balances as of December 31, 2016 and 2017:


	December 31,
	2016		2017
	RMB		RMB		US$
Amount due from subsidiaries
- 21Vianet HK		3,037,249		4,143,269		636,809
- HongKong Fastweb Holdings Co., Ltd.		60,574		61,637		9,473
- 21V Mobile		72,361		50,453		7,754
- Ventures		27,124		25,549		3,927
- WiFire Open Network Group Ltd.		—		4,170		641
- WiFire Group Inc.		4,301		653		100
- Xi’an Holding		7,011		—		—
- Others		—		12		3

		3,208,620		4,285,743		658,707

Amount due from related parties
Current:
- Seller of iJoy		27,748		26,137		4,017
- Seller of Aipu Group		70,000		—		—

		97,748		26,137		4,017

Amount due to subsidiaries
- 21Vianet Beijing		9,713		17,595		2,704
- Others		19		18		3

		9,732		17,613		2,707


	December 31,
	2016		2017
	RMB		RMB		US$
Amount due to related parties
Current:
- Seller of iJoy		38,131		39,068		6,005
- Seller of Aipu Group		30,000		—		—

		68,131		39,068		6,005

(c)

Commitments

Operating lease commitments

The Company leases a facility in the United States under non-cancelable operating lease expiring on March 1, 2025. For the year ended December 31, 2015, 2016 and 2017, total rental expense for the operating lease amounted to RMB13,952, RMB15,824 and RMB5,366 (US$825).

As of December 31, 2017, the Company has future minimum lease payments under non-cancelable operating leases with initial terms in excess of one year in relation to data center space consisting of the following:


	RMB		US$
2018		17,893		2,750
2019		18,340		2,819
2020		18,799		2,889
2021		19,268		2,961
2022 and thereafter		65,964		10,138

		140,264		21,557

(d)

Bonds payable

On June 26, 2014, the Company issued and sold bonds with an aggregate principal amount of RMB2,000,000 at a coupon rate of 6.875% per annum (the “2017 Bonds”). The 2017 Bonds matured on June 26, 2017 and were fully repaid.

On August 17, 2017, the Company issued and sold bonds with an aggregate principle amount of US$200,000 at a coupon rate of 7% per annum, or the Original Bonds. On September 29, 2017, the Company issued and sold bonds with an aggregate principle amount of US$100,000 at a coupon rate of 7% per annum, or the Bonds. The Bonds were priced at a slight premium of 100.04, with an effective yield of 6.98% (collectively, “2020 Bonds”). The 2020 Bonds will mature on August 17, 2020. The 2020 Bonds were listed and quoted on the Official List of the Singapore Exchange Securities Trading Limited. Interest on the 2020 Bonds is payable semi-annually in arrears on August 17 and February 17 in each year, beginning from February 17, 2018.

Net proceeds from the 2020 Bonds after deducting issuance costs were RMB1,926,419 (US$296,085). The proceeds from issuance of 2020 Bonds will be used for refinancing outstanding indebtedness, fund future capital needs, and for general corporate purposes.

The 2020 Bonds are unsecured and rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated to the bonds; equal in right of payment to any of the Company’s liabilities that are not so subordinated; but rank lower than any secured indebtedness of the Company and all liabilities (including accounts payable) of the Company’s subsidiaries and Consolidated VIEs.