VNET(VNET) - 2021 Q4 - Annual Report

Financial Position - As of December 31, 2021, the company had long-term borrowings (current portions) of RMB384.2 million (US$60.3 million) and long-term borrowings (excluding current portions) of RMB2,215.0 million (US$347.6 million) [430] - The weighted average interest rate for short-term bank borrowings was 5.22% per annum, while long-term borrowings bore a weighted average interest rate of 5.31% per annum [430] - A hypothetical 1% decrease in interest rates would have resulted in a decrease of approximately RMB26.0 million (US$4.1 million) in interest expense for the year ended December 31, 2021 [430] - The company had total U.S. dollar-denominated cash and cash equivalents of US$66.9 million as of December 31, 2021 [431] - A hypothetical 10% increase in the exchange rate of the U.S. dollar against the RMB would have resulted in an increase of RMB42.6 million (US$6.7 million) in the value of U.S. dollar-denominated financial assets [431] Economic Indicators - The annual average percent changes in the consumer price index in China for 2019, 2020, and 2021 were 2.9%, 2.5%, and 0.9%, respectively [432] Internal Controls - The company's internal control over financial reporting was assessed as effective as of December 31, 2021, based on the COSO criteria [444] - No changes in internal controls over financial reporting that materially affected or are likely to materially affect the internal controls were reported during the period covered by the annual report [449] - The internal control process is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements [447] - Internal controls include policies and procedures for maintaining accurate records of transactions and asset dispositions [447] - Reasonable assurance is provided that transactions are recorded to permit financial statement preparation in accordance with generally accepted accounting principles [447] - Internal controls aim to prevent or detect unauthorized acquisition, use, or disposition of company assets that could materially affect financial statements [447] - Limitations of internal controls may prevent or detect misstatements, and effectiveness evaluations are subject to risks of inadequacy due to changing conditions [447] ADS Program - The company received no reimbursement from the depositary for expenses incurred in connection with the establishment and maintenance of the ADS program for the year ended December 31, 2021 [438] - The depositary may charge fees of up to US$0.05 per ADS for various services, including issuance and cancellation of ADSs [436] Asset Composition - Beijing TenxCloud Technology Co., Ltd. constituted 0.7% and 1.0% of total and net assets, respectively, as of December 31, 2021 [444]