Company: GDHLF
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001410578-25-000935
Chunk: 285

Company: GDS Holdings Ltd
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 285
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. Accordingly, if in the future our mainland China subsidiaries that are considered “resident enterprises” pay dividends to the Hong Kong subsidiary that holds such mainland China subsidiary, any such dividend may be subject to a withholding tax of 10%. Such withholding tax rate may be lowered to 5% if a Hong Kong resident enterprise owns no less than 25% of a PRC enterprise. However, the 5% withholding tax rate does not automatically apply and certain requirements must be satisfied. See “ Item 3. Key Information - D. Risk Factors - Risks Related to Doing Business in the People’s Republic of China - We may not be able to obtain certain benefits under the relevant tax treaty on dividends paid by our mainland China subsidiaries to us through our Hong Kong subsidiary.”

As a result of these laws, rules and regulations relating to statutory reserves, foreign exchange conversion and withholding taxes described above, our subsidiaries, the VIEs and their subsidiaries incorporated in mainland China are restricted in their ability to transfer a portion of their respective net assets to their offshore holding companies as dividends, loans or advances. As of December 31, 2024, the restricted net assets were RMB26,125.2 million (US$3,579.1 million), including those of the VIEs and their subsidiaries of RMB320.7 million (US$43.9 million) and our subsidiaries of RMB25,804.5 million (US$3,535.2 million), which mainly consisted of paid-in registered capital.

The following table sets forth a summary of our cash flows for the years indicated.

                                                                                                        For the Year Ended December 31,                                                      
                                                                                                                                   2022             2023              2024                   
                                                                                                                                    RMB              RMB               RMB              US$  
                                                                                                                         (in thousands)                                                      
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net cash provided by operating activities from continuing operations                                                        2,862,236        2,359,276         2,219,662          304,093  
  Net cash used in operating activities from discontinued operations                                                           (52,448)        (294,019)         (281,297)         (38,538)  
  Net cash provided by operating activities                                                                                   2,809,788        2,065,257         1,938,365          265,555  
  Net cash used in investing activities