VNET(US:VNET)2021-04-27 16:00Financial Position - As of December 31, 2020, the company had short-term and long-term borrowings with an aggregate outstanding balance of RMB1,101.3 million (US$168.7 million) and an outstanding principal balance of US$300.0 million for the 2021 Notes payable[369]. - The short-term bank borrowings bore a weighted average interest rate of 4.46% per annum, while long-term borrowings had a weighted average interest rate of 5.61% per annum[369]. - The company had total U.S. dollar-denominated cash and cash equivalents amounting to US$295.9 million as of December 31, 2020[370]. - A hypothetical 10% increase in the exchange rate of the U.S. dollar against the RMB would have resulted in an increase of RMB193.0 million (US$29.6 million) in the value of U.S. dollar-denominated financial assets[370]. - A hypothetical one percentage point decrease in interest rates would have resulted in a decrease of approximately RMB27.6 million (US$4.2 million) in interest expense for the year ended December 31, 2020[369]. Revenue and Proceeds - The company received net proceeds of US$204.3 million from its initial public offering, which were used for data center infrastructure expansion and general corporate purposes[383]. - For the year ended December 31, 2020, the company was entitled to US$1,171,855.02 from the depositary as reimbursement for expenses related to the establishment and maintenance of the ADS program[379]. Internal Control and Audit - The company maintained effective internal control over financial reporting as of December 31, 2020, based on the COSO criteria[386]. - There were no changes in internal controls over financial reporting that materially affected the company during the reporting period[389]. - The company has adopted a code of ethics applicable to directors, officers, employees, and agents, including specific provisions for key executives[389]. - Mr. Sean Shao has been identified as an audit committee financial expert by the board of directors[389]. - The audit committee pre-approves all audit and non-audit services provided by Ernst & Young Hua Ming LLP[390]. - The internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting[388]. - The company acknowledges that internal control limitations may not prevent or detect all misstatements[388]. - The audit was conducted in accordance with PCAOB standards to ensure effective internal control over financial reporting[387]. Audit Fees - The audit fees for the year ended December 31, 2020, amounted to $1,163,000, an increase from $915,000 in 2019[390]. - Audit-related fees for the year ended December 31, 2020, were $854,000, compared to $203,000 in 2019[390]. - Tax fees for the year ended December 31, 2020, were $23,000, slightly up from $19,000 in 2019[390]. Economic Indicators - The annual average percent changes in the consumer price index in China for 2018, 2019, and 2020 were 2.1%, 2.9%, and 2.5%, respectively, indicating stable inflation levels[371]. Currency Management - The company has not used derivative financial instruments to hedge exposure to foreign exchange risk, indicating a straightforward approach to currency management[370].