accordance with various contractual agreements, the Company has the power to direct the activities of the VIEs and can have assets transferred out of the VIEs. Therefore, the Company considers that there are
no
assets in the respective VIEs that can be used only to settle obligations of the respective VIEs, except for the registered capital of the VIEs amounting to RMB
92.1
million and RMB
494.1
million, as of December
31
,
2020
and
2021
, as well as certain
non-distributable
statutory reserves amounting to RMB
17.9
million and RMB
22.6
million, respectively, as of December
31
,
2020
and
2021
. As the respective VIEs are incorporated as limited liability companies under the PRC Company Law, creditors do not have recourse to the general credit of the Company for the liabilities of the respective VIEs. There is currently
no
contractual arrangement that would require the Company to provide additional financial support to the VIEs. As the Group is conducting certain businesses in the PRC through the VIEs, the Group may provide additional financial support on a discretionary basis in the future, which could expose the Group to a loss.
The Group incurred net losses of RMB1,303.6 million, RMB3,054.0 million and RMB6,808.7 million for the years ended December 31, 2019, 2020 and 2021, respectively. Net cash provided by operating activities was RMB194.6 million, RMB753.1 million for the years ended December 31, 2019 and 2020, respectively, and net cash used in operating activities was RMB2,647.0 million for the year ended December 31, 2021. Accumulated deficit was RMB7,175.3 million and RMB13,971.3 million as of December 31, 2020 and 2021, respectively. The Group assesses its liquidity by its ability to generate cash from operating activities and attract investors’ investments. Historically, the Group has relied principally on both operational sources of cash and
non-operational
sources of financing from investors to fund its operations and business development. The Group’s ability to continue as a going concern is dependent on management’s ability to successfully execute its business plan, which includes increasing revenues while controlling operating expenses, as well as, generating operational cash flows and continuing to gain support from outside sources of financing. In the past, the Group has been continuously receiving financing support from outside investors. In 2018, the Company completed its IPO, raising US$443.3 million (RMB2,781.8 million), and issued 25,063,451 Class Z Ordinary Shares to Tencent with net proceed of US$317.2 million (RMB2,170.8 million). In 2019, the Company completed its offering of
convertible senior notes due April 2026 (
the
“
April 2026 Notes
”)
and the Primary Offering, raising US$733.9 million (RMB5,003.8 million), after deducting commissions and offering expenses. In 2020, the Company completed an offering of convertible senior notes due 2027 (the “2027 Notes”) raising US$786.1 million (RMB5,594.8 million), after deducting commissions and offering expenses, and the Company issued 17,310,696 Class Z Ordinary Shares to Sony
Corporation of America (“SCA”), a wholly owned subsidiary of Sony Corporation (“Sony”),
raising US$399.4 million (RMB2,817.5 million), after deducting offering expenses.
In
2021, the Company successfully listed its Class Z ordinary shares on the main board of the Hong Kong Stock Exchange
, raising HKD22.9 billion (RMB19.3 billion),
after deducting
commissions
and offering expenses,
and
the Company completed an offering of convertible senior notes due
December
2026 (the “December 2026 Notes”), raising US$1,576.6 million (RMB10.1 billion), after deducting commissions and offering expenses. Moreover, the Group can adjust the pace of its operation expansion and control the operating expenses. Based on the above considerations, the Group believes the cash and cash equivalents and the operating cash flows are sufficient to meet the cash requirements to fund planned operations and other commitments for at least the next twelve months from the date of the issuance of the consolidated financial statements. The Group’s consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities in the normal course of business.