6-K - VNET - Equibles

UNITEDSTATES

SECURITIESAND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORTOF FOREIGN PRIVATE ISSUER

PURSUANTTO RULE 13a-16 OR 15d-16 UNDER

THESECURITIES EXCHANGE ACT OF 1934

Forthe month of August 2022

Commission File Number: 001-35126

VNET Group, Inc.

GuanjieBuilding, Southeast 1st Floor10# Jiuxianqiao East Road

ChaoyangDistrict

Beijing100016

ThePeople’s Republic of China

(Address of principalexecutive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

EXPLANATORY NOTE

Exhibit 99.1 to this Current Report on Form 6-K is hereby incorporated by reference into the Registration Statement on Form F-3 of VNET Group, Inc. (File No. 333-240044) and shall form a part thereof from the date on which this Current Report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

VNET Group, Inc.
By	/s/ Tim Chen
Name:	Tim Chen
Title:	Chief Financial Officer

Date: August 30, 2022

Exhibit 99.1

VNET Reports Unaudited Second Quarter 2022Financial Results

BEIJING, August 30, 2022 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrier- and cloud-neutral Internet data center services provider in China, today announced its unaudited financial results for the three months ended June 30, 2022.

“We delivered solid results in the second quarter amid macro uncertainties and tightened restrictions to contain COVID resurgences,” said Samuel Shen, Chief Executive Officer of VNET and Executive Chairman of VNET's Retail IDC. “Notably, our wholesale business continued making good progress. We extended our contract with a leading social platform in China in the second quarter, generating a capacity of approximately 14MW, and recently signed a new contract generating a capacity of 15MW with a leading cloud service provider in China. Our retail business also achieved impressive results driven by rising digital demand from various industries. With our strong operating capabilities, deep industry experience and proven technology expertise, we are confident our compelling value proposition will enable us to seize new growth opportunities and create additional value for all of our stakeholders.”

Tim Chen, Chief Financial Officer of VNET, commented, “Fueled by our dual-core growth strategy, this quarter we delivered a robust financial performance with a year-over-year growth 15.2% and 14.5% in revenue and adjusted EBITDA, respectively. Our solid financial position provides a firm foundation from which to drive long-term, sustainable growth as we continue to leverage our scalable service offerings, build our customer base across a wider variety of industries and maximize the opportunities ahead.”

Second Quarter 2022 Financial Highlights

·	Net<br> revenues increased by 15.2% to RMB1.72 billion (US$257.5 million) from RMB1.50 billion in<br> the same period of 2021.
·	Adjusted<br> cash gross profit (non-GAAP) increased by 11.5% to RMB713.7 million (US$106.6 million) from<br> RMB640.2 million in the same period of 2021. Adjusted cash gross margin (non-GAAP) was 41.4%,<br> compared to 42.8% in the same period of 2021.
---	---
·	Adjusted<br> EBITDA (non-GAAP) increased by 14.5% to RMB486.9 million (US$72.7 million) from RMB425.1<br> million in the same period of 2021. Adjusted EBITDA margin (non-GAAP) was 28.2%, compared<br> to 28.4% in the same period of 2021.
---	---

Second Quarter 2022 Operational Highlights

·	Total<br> cabinets under management increased by 1,867 in the second quarter of 2022 to reach 80,831<br> as of June 30, 2022, compared to 62,876 as of June 30, 2021.
·	Cabinets<br> utilized by customers increased by 1,468 in the second quarter of 2022 to reach 44,500 as<br> of June 30, 2022, compared to 36,625 as of June 30, 2021.
---	---
·	Overall<br> utilization rate of cabinets^1^ was 55.1% as<br> of June 30, 2022, compared to 58.2% as of June 30, 2021.
---	---
·	Retail<br> IDC MRR^2^ per cabinet reached RMB9,186 in<br> the second quarter of 2022, compared to RMB9,015 in the second quarter of 2021.
---	---

Update on the Non-binding Acquisition Proposal

The Company has retained Citigroup Global Markets Asia Limited as its financial advisor and Davis Polk & Wardwell LLP as its legal counsel to assist it in review and evaluation of the previously announced preliminary non-binding proposal letter dated April 6, 2022 to acquire all of the outstanding ordinary shares of the Company (the “Proposal”) and any alternative strategic option that the Company may pursue.

^1^ The overall utilization rate is calculated by dividing the number of customer-utilized cabinets by the total cabinets under management at the end of the period. Before the first quarter of 2022, the Company used the compound utilization rate, a metric that was calculated based on the weighted average number of customer-utilized cabinets over the reported period.

^2^ Retail IDC MRR refers to Monthly Recurring Revenues for the retail IDC business.

The Board of Directors (the “Board”) cautions the Company’s shareholders and others considering trading the Company’s securities that the Board has not made any decisions with respect to the Proposal or any alternative strategic option that the Company may pursue. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

Second Quarter 2022 Financial Results

NET REVENUES: Net revenues in the second quarter of 2022 were RMB1.72 billion (US$257.5 million), representing an increase of 15.2% from RMB1.50 billion in the same period of 2021. The year-over-year increase was mainly due to the increased demand from both wholesale and retail IDC customers, as well as the growth of revenue from cloud business.

GROSS PROFIT: Gross profit in the second quarter of 2022 was RMB357.8 million (US$53.4 million), compared with RMB359.5 million in the same period of 2021. Gross margin in the second quarter of 2022 was 20.7%, compared to 24.0% in the same period of 2021.

ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was RMB713.7 million (US$106.6 million) in the second quarter of 2022, compared to RMB640.2 million in the same period of 2021. Adjusted cash gross margin in the second quarter of 2022 was 41.4%, compared to 42.8% in the same period of 2021.

OPERATING EXPENSES: Total operating expenses in the second quarter of 2022 were RMB321.7 million (US$48.0 million), compared to RMB262.5 million in the same period of 2021. As a percentage of net revenues, total operating expenses in the second quarter of 2022 were 18.7%, compared to 17.5% in the same period of 2021.

Sales and marketing expenses in the second quarter of 2022 were RMB80.4 million (US$12.0 million), compared to RMB59.6 million in the same period of 2021.

Research and development expenses in the second quarter of 2022 were RMB76.7 million (US$11.5 million), compared to RMB38.3 million in the same period of 2021.

General and administrative expenses in the second quarter of 2022 were RMB167.0 million (US$24.9 million), compared to RMB154.2 million in the same period of 2021.

ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses, compensation for postcombination employment in an acquisition and impairment of loan receivable to potential investee, were RMB250.7 million (US$37.4 million) in the second quarter of 2022, compared to RMB235.6 million in the same period of 2021. As a percentage of net revenues, adjusted operating expenses in the second quarter of 2022 were 14.5%, compared to 15.7% in the same period of 2021.

ADJUSTED EBITDA: Adjusted EBITDA in the second quarter of 2022 was RMB486.9 million (US$72.7 million), representing an increase of 14.5% from RMB425.1 million in the same period of 2021. Adjusted EBITDA in the second quarter of 2022 excluded share-based compensation expenses of RMB47.5 million (US$7.1 million). Adjusted EBITDA margin in the second quarter of 2022 was 28.2%, compared to 28.4% in the same period of 2021.

NET PROFIT/LOSS: Net loss attributable to ordinary shareholders in the second quarter of 2022 was RMB377.2 million (US$56.3 million), compared to a net profit of RMB455.9 million in the same period of 2021. Net loss attributable to ordinary shareholders in the second quarter of 2022 included a foreign exchange loss of RMB319.9 million (US$47.8 million), compared to a foreign exchange gain of RMB78.0 million in the same period of 2021.

PROFIT/LOSS PER SHARE: Basic and diluted loss per share in the second quarter of 2022 were both RMB0.43 (US$0.06) which represented the equivalent of both RMB2.58 (US$0.36) per American depositary share ("ADS"). Each ADS represents six Class A ordinary shares. Diluted profit/loss per share is calculated using adjusted net profit/loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

As of June 30, 2022, the aggregate amount of the Company’s cash, cash equivalents and restricted cash was RMB3.62 billion (US$539.9 million).

Net cash generated from operating activities, in the second quarter of 2022, was RMB942.7 million (US$140.7 million), compared to RMB314.8 million in the same period of 2021.

Business Outlook

In consideration of COVID-related disruptions in the second quarter 2022 and softer economic conditions, the Company currently expects net revenues for the full year of 2022 to be in the range of RMB7,250 million to RMB7,550 million, and adjusted EBITDA to be in the range of RMB1,800 million to RMB1,950 million.

The forecast reflects the Company’s current and preliminary views on the market and its operational conditions, which does not factor in any of the potential future impacts caused by the ongoing COVID-19 pandemic, and is subject to change.

Conference Call

The Company’s management will host an earnings conference call at 9:00 PM U.S. Eastern Time on Tuesday, August 30, 2022, or 9:00 AM Beijing Time on Wednesday, August 31, 2022.

For participants who wish to join the call, please access the link provided below to complete the online registration process and dial in 5 minutes prior to the scheduled call start time.

Event Title:	VNET Second Quarter<br> 2022 Earnings Conference Call
Registration Link:	https://register.vevent.com/register/BIe1ecf9e092d04400b0020b258448551c

Upon registration, each participant will receive a set of dial-in numbers by location, a personal PIN and an email with further detailed instructions, which will be used to join the conference call.

A simultaneous audio webcast and replay of the conference call will be accessible on the Company’s investor relations website at http://ir.vnet.com.

Non-GAAP Disclosure

In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.

The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.6981 to US$1.00, the noon buying rate in effect on June 30, 2022, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Statement Regarding Unaudited Condensed FinancialInformation

The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.

About VNET

VNET Group, Inc. is a leading carrier- and cloud-neutral Internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 6,500 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.

Safe Harbor Statement

This announcement contains forward-looking statements. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “target,” “believes,” “estimates” and similar statements. Among other things, quotations from management in this announcement as well as VNET’s strategic and operational plans contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET’s goals and strategies; VNET’s expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET’s services; VNET’s expectations regarding keeping and strengthening its relationships with customers; VNET’s plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET’s reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law.

Investor Relations Contact:

Xinyuan Liu

Tel: +86 10 8456 2121

Email: ir@vnet.com

VNETGROUP, INC.

CONSOLIDATEDBALANCE SHEETS

(All amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

	As of			As of
	December<br> 31, 2021			June 30,<br> 2022
	RMB			RMB			US
	(Audited)			(Unaudited)			(Unaudited)
Assets
Current assets:
Cash and cash equivalents		1,372,481			3,408,381
Restricted cash		327,767			202,374
Accounts and notes receivable, net		1,405,997			1,745,156
Prepaid expenses and other current assets		2,049,911			1,916,422
Amounts due from related parties		167,967			173,142
Total current assets		5,324,123			7,445,475
Non-current assets:
Property and equipment, net		10,092,419			10,485,412
Intangible assets, net		900,335			871,067
Land use rights, net		337,235			333,187
Operating lease right-of-use assets, net		2,869,338			2,801,343
Goodwill		1,339,657			1,339,657
Restricted cash		8,225			5,500
Deferred tax assets, net		168,002			157,719
Long-term investments, net		98,243			29,506
Other non-current assets		1,957,462			2,007,789
Total non-current assets		17,770,916			18,031,180
Total assets		23,095,039			25,476,655
Liabilities and Shareholders' Equity
Current liabilities:
Accounts and notes payable		493,506			695,034
Accrued expenses and other payables		2,298,089			2,009,115
Advances from customers		1,041,902			1,238,029
Deferred revenue		55,695			75,766
Income taxes payable		43,770			47,492
Amounts due to related parties		8,772			4,791
Current portion of long-term borrowings		384,158			415,907
Current portion of finance lease liabilities		244,032			224,454
Current portion of deferred government grant		2,074			2,074
Current portion of operating lease liabilities		607,997			579,956
Total current liabilities		5,179,995			5,292,618
Non-current liabilities:
Long-term borrowings		2,215,015			2,835,549
Convertible promissory notes		4,266,951			6,117,694
Non-current portion of finance lease liabilities		1,119,751			1,117,232
Unrecognized tax benefits		77,573			80,621
Deferred tax liabilities		348,404			360,873
Non-current portion of deferred government grant		2,294			1,114
Non-current portion of operating lease liabilities		2,284,055			2,258,049
Total non-current liabilities		10,314,043			12,771,132
Shareholders' equity
Treasury stock		(349,523	)		(349,523	)		)
Ordinary shares		60			60
Additional paid-in capital		15,198,055			15,229,505
Accumulated other comprehensive loss		(90,443	)		(29,383	)		)
Statutory reserves		74,462			75,540
Accumulated deficit		(7,590,382	)		(7,877,958	)		)
Total VNET Group, Inc. shareholders’ equity		7,242,229			7,048,241
Noncontrolling interest		358,772			364,664
Total shareholders' equity		7,601,001			7,412,905
Total liabilities and shareholders' equity		23,095,039			25,476,655

All values are in US Dollars.

VNETGROUP, INC.

CONSOLIDATEDSTATEMENTS OF OPERATIONS

(All amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”), except for number of shares and per share data)

	Three<br> months ended											Six<br> months ended
	June<br> 30, 2021			March<br> 31, 2022			June<br> 30, 2022					June<br> 30, 2021			June<br> 30, 2022
	RMB			RMB			RMB			US		RMB			RMB			US
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)		(Unaudited)			(Unaudited)			(Unaudited)
Net revenues		1,496,978			1,645,486			1,724,863					2,883,901			3,370,349
Cost of revenues		(1,137,463	)		(1,289,965	)		(1,367,086	)		)		(2,201,074	)		(2,657,051	)		)
Gross profit		359,515			355,521			357,777					682,827			713,298
Operating income (expense)
Other operating income		-			39,697			1,588					-			41,285
Sales and marketing		(59,589	)		(74,941	)		(80,368	)		)		(133,565	)		(155,309	)		)
Research and development		(38,296	)		(72,615	)		(76,740	)		)		(71,861	)		(149,355	)		)
General and administrative		(154,243	)		(154,237	)		(167,044	)		)		(289,489	)		(321,281	)		)
(Allowance) reversal for doubtful<br> debt		(7,527	)		2,633			845					(7,920	)		3,478
Impairment of loan receivable<br> to potential investee		(2,816	)		-			-					(2,816	)		-
Total operating expenses		(262,471	)		(259,463	)		(321,719	)		)		(505,651	)		(581,182	)		)
Operating profit		97,044			96,058			36,058					177,176			132,116
Interest income		8,103			4,549			8,814					13,812			13,363
Interest expense		(87,095	)		(53,119	)		(68,530	)		)		(171,574	)		(121,649	)		)
Other income		5,263			5,391			2,896					7,435			8,287
Other expenses		(11,872	)		(352	)		(693	)		)		(15,294	)		(1,045	)		)
Changes in the fair value of convertible<br> promissory notes		424,107			60,278			(2,321	)		)		415,466			57,957
Foreign exchange gain (loss)		78,026			24,749			(319,875	)		)		44,180			(295,126	)		)
Gain (loss) before income<br> taxes and (loss) gain from equity method investments		513,576			137,554			(343,651	)		)		471,201			(206,097	)		)
Income tax expenses		(29,499	)		(46,700	)		(30,946	)		)		(66,798	)		(77,646	)		)
(Loss) gain from equity method<br> investments		(23,605	)		2,047			1,090					(24,910	)		3,137
Net profit (loss)		460,472			92,901			(373,507	)		)		379,493			(280,606	)		)
Net gain attributable to noncontrolling<br> interest		(4,620	)		(2,195	)		(3,696	)		)		(8,300	)		(5,891	)		)
Net profit (loss) attributable<br> to the Company’s ordinary shareholders		455,852			90,706			(377,203	)		)		371,193			(286,497	)		)
Profit (loss) per share
Basic		0.52			0.10			(0.43	)		)		0.42			(0.32	)		)
Diluted		0.04			0.03			(0.43	)		)		(0.05	)		(0.37	)		)
Shares used in profit (loss) per<br> share computation
Basic*		869,645,966			885,771,728			886,204,618					863,960,057			885,915,878
Diluted*		905,446,557			938,146,240			886,204,618					905,136,178			919,915,879
Profit (loss) per ADS (6 ordinary<br> shares equal to 1 ADS)
Basic		3.12			0.60			(2.58	)		)		2.52			(1.92	)		)
Diluted		0.24			0.18			(2.58	)		)		(0.30	)		(2.22	)		)

All values are in US Dollars.

* Shares used in profit (loss) per share/ADS computation were computed under weighted average method.

VNET GROUP, INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands of Renminbi<br> (“RMB”) and US dollars (“US$”))
	Three<br> months ended							Six<br> months ended
---	---	---	---	---	---	---	---	---	---	---	---	---
	June<br> 30, 2021		March<br> 31, 2022		June<br> 30, 2022			June<br> 30, 2021		June<br> 30, 2022
	RMB		RMB		RMB		US	RMB		RMB		US
Gross profit	359,515		355,521		357,777		53,414	682,827		713,298		106,493
Plus: depreciation and amortization	277,288		327,393		362,003		54,046	555,139		689,396		102,924
Plus: share-based compensation expenses	3,444		1,860		(6,066	)	(906	7,570		(4,206	)	(628
Adjusted cash gross profit	640,247		684,774		713,714		106,554	1,245,536		1,398,488		208,789
Adjusted cash gross margin	42.8	%	41.6	%	41.4	%	41.4	43.2	%	41.5	%	41.5
Operating expenses	(262,471	)	(259,463	)	(321,719	)	(48,032	(505,651	)	(581,182	)	(86,768
Plus: share-based compensation expenses	24,063		41,385		53,551		7,995	54,792		94,936		14,174
Plus: compensation for postcombination employment in an<br> acquisition	-		17,260		17,453		2,606	-		34,713		5,183
Plus: impairment of loan receivable<br> to potential investee	2,816		-		-		-	2,816		-		-
Adjusted operating expenses	(235,592	)	(200,818	)	(250,715	)	(37,431	(448,043	)	(451,533	)	(67,411
Operating profit	97,044		96,058		36,058		5,382	177,176		132,116		19,724
Plus: depreciation and amortization	297,738		349,609		385,876		57,610	597,843		735,485		109,805
Plus: share-based compensation expenses	27,507		43,245		47,485		7,089	62,362		90,730		13,546
Plus: compensation for postcombination employment in an<br> acquisition	-		17,260		17,453		2,606	-		34,713		5,183
Plus: impairment of loan receivable<br> to potential investee	2,816		-		-		-	2,816		-		-
Adjusted EBITDA	425,105		506,172		486,872		72,687	840,197		993,044		148,258
Adjusted EBITDA margin	28.4	%	30.8	%	28.2	%	28.2	29.1	%	29.5	%	29.5

All values are in US Dollars.

VNET GROUP, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(All amounts in thousands of Renminbi (“RMB”) and US dollars (“US$”))

	Three<br> months ended
	June 30,<br> 2021			March 31,<br> 2022			June 30,<br> 2022
	RMB			RMB			RMB			US
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net profit (loss)		460,472			92,901			(373,507	)		)
Adjustments to reconcile net profit (loss) to net cash<br> generated from operating activities:
Depreciation and amortization		297,738			349,609			385,876
Stock-based compensation expenses		27,507			43,245			47,485
Others		(344,711	)		39,992			447,480
Changes in operating assets and liabilities
Accounts and notes receivable		(198,696	)		(197,962	)		(137,720	)		)
Prepaid expenses and other current assets		324,091			(115,458	)		526,090
Accounts and notes payable		34,035			125,459			76,070
Accrued expenses and other payables		(1,761	)		101,002			21,363
Deferred revenue		4,228			82			19,989
Advances from customers		(180,551	)		125,243			70,884
Others		(107,546	)		(81,514	)		(141,299	)		)
Net cash generated from operating activities		314,806			482,599			942,711
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(430,071	)		(1,005,736	)		(527,867	)		)
Purchases of intangible assets		(17,672	)		(10,497	)		(12,690	)		)
Proceeds from (payments for) investments		139,711			(14,487	)		(38,280	)		)
(Payments for) proceeds from other investing activities		(214,308	)		(2,038	)		208
Net cash used in investing activities		(522,340	)		(1,032,758	)		(578,629	)		)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank borrowings		33,623			650,952			18,860
Repayment of bank borrowings		(30,300	)		(65,570	)		(43,275	)		)
Payments for finance lease		(241,709	)		(102,073	)		(75,145	)		)
Proceed from issuance of convertible promissory notes		-			1,592,627			-
Payment for shares repurchase and cancellation		(1,701,807	)		-			-
Proceeds from (payments for) other financing activities		52,418			137,968			(62,119	)		)
Net cash (used in) generated from financing activities		(1,887,775	)		2,213,904			(161,679	)		)
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		(60,905	)		(7,328	)		48,962
Net (decrease) increase in cash, cash equivalents and restricted cash		(2,156,214	)		1,656,417			251,365
Cash, cash equivalents and restricted cash at beginning of period		7,177,704			1,708,473			3,364,890
Cash, cash equivalents and restricted cash at end of period		5,021,490			3,364,890			3,616,255

All values are in US Dollars.