was primarily attributable to proceeds from third-party investors and proceeds from iQiyis issuance of convertible notes, partially offset by repayment to third-party investors.
We made capital
expenditures of RMB1.2 billion (US$169.6 million) in the three months ended March 31, 2017, representing 6.9% of our total revenues, as compared to RMB825.6 million in the three months ended March 31, 2016, representing 5.2% of
our total revenues. Our capital expenditures were primarily attributable to the purchase of servers, network equipment and other computer hardware to increase our network infrastructure capacity and expenditures on office buildings and cloud
computing based data centers. We funded our capital expenditures primarily with net cash flow generated from operating activities.
capital expenditures may increase in the future as our business continues to grow, in connection with the expansion and improvement of our network infrastructure and further expenditures on the construction of office buildings and cloud computing
based data centers. We currently plan to fund these expenditures with cash flow generated from our operating activities.