Adjusted EBITDA up 103.6% YoY to RMB221.1
millionAdjusted EBITDA margin expanded to 26.7%Raised full year
guidance for both net revenues and adjusted EBITDA
21Vianet Group, Inc. (Nasdaq:VNET) ("21Vianet" or the "Company"), a
leading carrier- and cloud-neutral Internet data center services
provider in China, today announced its unaudited financial results
for the second quarter ended June 30, 2018. The Company will hold a
conference call at 8:00 pm on Thursday, August 16, 2018, U.S.
Eastern Time to discuss the financial results. Dial-in details are
provided at the end of this release.
Second Quarter 2018 Financial
Highlights (including hosting and related services &
MNS1 business)
- Revenues from hosting and related services increased by 11.4%
year over year to RMB828.3 million (US$125.2 million).
- Adjusted cash gross margin expanded to 43.9% from 38.2% in the
same period of 2017.
- Operating profit improved to RMB51.5 million from an operating
loss of RMB80.6 million in the same period of 2017.
- Adjusted EBITDA increased by 103.6% year over year to RMB221.1
million (US$33.4 million). Adjusted EBITDA margin expanded to 26.7%
from 12.4% in the same period of 2017.
- Net cash generated from operating activities was RMB111.4
million (US$16.8 million) in the second quarter of 2018 compared to
RMB87.2 million in the same period of 2017.
The financial results of the same period 2017
included those from both the hosting and related services business
and the MNS business. The year-over-year improvement was partially
driven by the disposal of the MNS business in September 2017.
Second Quarter 2018 Operational Highlights
- Hosting MRR2 per cabinet increased to RMB8,271 in the second
quarter of 2018 compared to RMB7,697 in the second quarter of 2017
and RMB7,905 in the first quarter of 2018.
- Total cabinets under management increased slightly to 29,149 as
of June 30, 2018 from 29,035 as of March 31, 2018. As of June 30,
2018, the Company had 24,167 cabinets in its self-built data
centers and 4,982 cabinets in its partnered data centers.
- Utilization rate was 71.1% in the second quarter of 2018
compared to 70.0% in the first quarter of 2018.
______________1MNS: Refers to managed network services.2Hosting
MRR: Refers to Monthly Recurring Revenues for the hosting
business.
Mr. Alvin Wang, Chief Executive Officer and
President of the Company, stated, “Our strategy of focusing
entirely on our core hosting and related services business
continued to drive revenue and profitability growth. During the
second quarter, we further improved our operational efficiency and
achieved an adjusted EBITDA margin of 26.7%. Also we expanded our
data center capacity, garnered new significant client wins in the
Internet and financial services sectors, and expanded the order
size from our existing clients. In addition, we have methodically
entered into the promising wholesale data center market. We
are confident that our commitment to network safety, availability,
reliability, neutrality, and quality shall enable us to
continuously gain market share and solidify our industry
leadership.”
Ms. Sharon Liu, Chief Financial Officer of the
Company, commented, “During the second quarter of 2018, we
sustained solid growth in revenue and continued rapid improvement
in adjusted EBITDA margin. Our net revenues from hosting and
related services increased by 11.4% year over year to RMB828.3
million, while our adjusted EBITDA grew by 29.1% to RMB221.1
million. As we keep close track of our business development and
maintain stringent internal control, we have been able to achieve
or exceed our own guidance three quarters in a row. For the
remainder of 2018, we expect continuous improvement in economy of
scale and operational efficiency to result in EBITDA growth
outpacing revenue growth and EBITDA margin expanding
further.”
Second Quarter 2018 Financial
Results
To fully reflect the Company’s performance, all
analysis between “REVENUES” and “ADJUSTED EBITDA” presents only the
results of the hosting and related service business. The MNS
business, which was disposed of in the third quarter of 2017, is
excluded.
REVENUES: Net revenues
increased by 11.4% to RMB828.3 million (US$125.2 million) in the
second quarter of 2018 from RMB743.4 million in the same period of
2017 and increased by 3.4% from RMB800.8 million in the first
quarter of 2018. The increase was primarily due to continuously
increasing demand from the Company’s new and existing
customers.
GROSS PROFIT: Gross profit
increased by 3.6% to RMB229.4 million (US$34.7 million) in the
second quarter of 2018 from RMB221.4 million in the same period of
2017 and increased by 0.7% from RMB227.9 million in the first
quarter of 2018. Gross margin decreased slightly to 27.7% in the
second quarter of 2018 from 29.8% in the same period of 2017 but
remained relatively stable compared to the first quarter of 2018.
The decrease was mainly due to an increase in depreciation.
ADJUSTED CASH GROSS
PROFIT, which excludes depreciation,
amortization, and share-based compensation expenses, increased by
14.4% to RMB364.0 million (US$55.0 million) in the second quarter
of 2018 from RMB318.2 million in the same period of 2017 and
increased by 4.8% from RMB347.5 million in the first quarter of
2018. Adjusted cash gross margin expanded to 43.9% in the second
quarter of 2018 from 42.8% in the same period of 2017 and 43.4% in
the previous quarter. The increase was a result of the Company’s
efficient management of cabinet capacity, power usage efficiency
and human resources in the second quarter of 2018. Since the second
quarter of 2018, the Company eliminated approximately 214
lower-margin cabinets in partnered data centers, bringing the total
number of partnered cabinets to 4,982 in the second quarter of 2018
from 5,768 in the same period of 2017.
OPERATING EXPENSES: Total
operating expenses increased by 3.0% to RMB177.9 million (US$26.9
million) in the second quarter of 2018 from RMB172.7 million in the
same period of 2017 and increased by 3.8% from RMB171.5 million in
the first quarter of 2018. As a percentage of net revenues, total
operating expenses was 21.5% in the second quarter of 2018,
compared to 23.2% in the same period of 2017 and 21.4% in the first
quarter of 2018.
Adjusted operating expenses, which exclude
share-based compensation expenses and changes in the fair value of
contingent purchase consideration payable, increased by 1.2% to
RMB161.9 million (US$24.5 million) in the second quarter of 2018
from RMB160.0 million in the same period of 2017 but decreased by
3.2% from RMB167.2 million in the first quarter of 2018. As a
percentage of net revenues, adjusted operating expenses decreased
to 19.5% in the second quarter of 2018 from 21.5% in the same
period of 2017 and 20.9% in the previous quarter. The decrease was
primarily due to the successful implementation and execution of the
Company’s cost control measures.
Sales and marketing expenses were RMB41.8
million (US$6.3 million) in the second quarter of 2018, compared to
RMB45.0 million in the same period of 2017 and from RMB41.2 million
in the first quarter of 2018.
Research and development expenses were RMB22.2
million (US$3.3 million) in the second quarter of 2018 compared to
RMB23.9 million in the same period of 2017 and RMB22.0 million in
the first quarter of 2018.
General and administrative expenses were
RMB109.1 million (US$16.5 million) in the second quarter of 2018
compared to RMB104.8 million in the same period of 2017 and
RMB112.3 million in the first quarter of 2018.
ADJUSTED EBITDA: Adjusted
EBITDA for the second quarter of 2018 increased by 29.1% to
RMB221.1 million (US$33.4 million) from RMB171.3 million in the
same period of 2017 and increased by 12.8% compared to the first
quarter of 2018. Adjusted EBITDA for the second quarter of 2018
excludes share-based compensation expenses of RMB10.8 million
(US$1.6 million) and changes in the fair value of contingent
purchase consideration payable, which was a loss of RMB5.5 million
(US$0.8 million). Adjusted EBITDA margin expanded to 26.7% in the
second quarter of 2018 from 23.0% in the same period of 2017 and
24.5% in the first quarter of 2018.
NET PROFIT/LOSS: Net loss for
the second quarter of 2018 was RMB95.5 million (US$14.4 million)
compared to net loss of RMB119.3 million in the same period of 2017
and net profit of RMB34.7 million in the first quarter of 2018. The
quarter-over-quarter change was mainly due to foreign exchange
fluctuation.
PROFIT/LOSS PER SHARE: Basic
and diluted loss per share was RMB0.14 (US$0.02) in the second
quarter of 2018, which represents the equivalent of RMB0.84
(US$0.12) per American Depositary Share ("ADS"). Each ADS
represents six ordinary shares. Diluted profit per share is
calculated using net profit divided by the weighted average number
of shares.
As of June 30, 2018, the Company's cash
and cash equivalents, restricted cash and
short-term investments were RMB2.66 billion (US$401.6
million).
Net cash generated from operating
activities was RMB111.4 million (US$16.8 million) in the
second quarter of 2018.
Recent Developments
In August 2018, the Company secured over 1,000
datacenter cabinets in Shanghai, China. The newly added cabinets
are consistent with the Company’s capacity expansion strategy. The
Company expects these additional cabinets to be delivered in two
batches by the end of 2018.
In August 2018, the Company and a subsidiary of
Tus Holdings entered into a long-term lease agreement for the
Company’s rights to use over 20,000m2 property in Beijing, China.
The new property is expected to add 3,000 to 4,000 additional
cabinet to the Company’s datacenter network. The first batch of
cabinets is estimated to be delivered in the second half of
2019.
On July 19, 2018, the Company announced that its
wholly-owned subsidiary Shanghai Blue Cloud Technology Co., Ltd.
(“21V Blue Cloud”) has entered into distribution agreements with
four world-class cloud service providers including Unify Cloud,
AvePoint, Agile Point and Fadada.com who officially authorized 21V
Blue Cloud as a distributor of their products and services in
mainland China.
Financial Outlook
For the third quarter of 2018, the Company
expects net revenues to be in the range of RMB840 million to RMB860
million. Adjusted EBITDA is expected to be in the range of RMB230
million to RMB250 million.
Based on solid first half 2018 results, the
Company is raising its full year 2018 guidance for both net
revenues and adjusted EBITDA. For the full year, the Company now
expects net revenues to be in the range of RMB3.28 billion to
RMB3.38 billion. Adjusted EBITDA for the full year is expected to
be in the range of RMB800 million to RMB880 million.
The forecast reflects the Company’s current and
preliminary view on the market and its operational conditions,
which is subject to change.
Conference Call
The Company will hold a conference call at 8:00 pm on Thursday,
August 16, 2018 U.S. Eastern Time, or 8:00 am on Friday, August 17,
2018 Beijing Time, to discuss the financial results.
Participants may access the call by dialing the following
numbers: |
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United States Toll
Free: |
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|
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+1-855-500-8701 |
International: |
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+65-6713-5440 |
China Domestic: |
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400-120-0654 |
Hong Kong: |
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+852-3018-6776 |
Conference ID: |
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4288535 |
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The replay
will be accessible through August 24, 2018 by dialing the following
numbers: |
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|
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United States Toll
Free: |
|
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|
|
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+1-855-452-5696 |
International: |
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|
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+61-2-9003-4211 |
Conference ID: |
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4288535 |
A live and archived webcast of the conference call will be
available through the Company's investor relation website at
http://ir.21vianet.com.
Non-GAAP Disclosure
In evaluating its business, 21Vianet considers
and uses the following non-GAAP measures defined as non-GAAP
financial measures by the SEC as supplemental measure to review and
assess its operating performance: adjusted cash gross profit,
adjusted cash gross margin, adjusted operating expenses, adjusted
EBITDA, 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 RMB6.6171
to US$1.00, the noon buying rate in effect on June 29, 2018 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
Financial Information
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 21Vianet
21Vianet Group, Inc. is a leading carrier- and
cloud-neutral Internet data center services provider in China.
21Vianet provides hosting and related services, cloud services, and
business VPN services, improving the reliability, security and
speed of its customers' Internet infrastructure. Customers may
locate their servers and networking equipment in 21Vianet's data
centers and connect to China's Internet backbone through 21Vianet's
extensive fiber optic network. 21Vianet operates in more than 30
cities throughout China, servicing a diversified and loyal base of
nearly 5,000 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," "believes," "estimates" and similar statements.
Among other things, quotations from management in this announcement
as well as 21Vianet's strategic and operational plans contain
forward-looking statements. 21Vianet 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 21Vianet'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: 21Vianet's goals and strategies;
21Vianet's expansion plans; the expected growth of the data center
services market; expectations regarding demand for, and market
acceptance of, 21Vianet's services; 21Vianet's expectations
regarding keeping and strengthening its relationships with
customers; 21Vianet'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 21Vianet provides
solutions and services. Further information regarding these and
other risks is included in 21Vianet's reports filed with, or
furnished to, the 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 21Vianet undertakes no
duty to update such information, except as required under
applicable law.
Investor Relations Contacts:
21Vianet Group, Inc.Rene Jiang+86 10 8456
2121IR@21Vianet.com
Julia Jiang+86 10 8456 2121IR@21Vianet.com
ICR, Inc.Jack Wang+1 (646)
405-4922IR@21Vianet.com
|
21VIANET GROUP, INC. |
CONSOLIDATED BALANCE SHEETS |
(Amount in thousands of Renminbi (“RMB”) and US
dollars (“US$”)) |
|
|
|
|
As of |
As of |
December 31,2017 |
June 30,2018 |
|
RMB |
RMB |
US$ |
|
(Audited) |
(Unaudited) |
(Unaudited) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
1,949,631 |
|
2,150,173 |
|
324,942 |
|
Restricted cash |
242,494 |
|
285,590 |
|
43,159 |
|
Accounts
and notes receivable, net |
455,811 |
|
536,642 |
|
81,099 |
|
Short-term investments |
548,890 |
|
218,370 |
|
33,001 |
|
Inventories |
710 |
|
174 |
|
26 |
|
Prepaid
expenses and other current assets |
933,750 |
|
1,057,177 |
|
159,765 |
|
Amount
due from related parties |
114,256 |
|
121,922 |
|
18,425 |
|
Total current assets |
4,245,542 |
|
4,370,048 |
|
660,417 |
|
Non-current assets: |
|
|
|
|
|
|
Property
and equipment, net |
3,319,424 |
|
3,392,168 |
|
512,637 |
|
Intangible assets, net |
401,115 |
|
372,375 |
|
56,275 |
|
Land use
rights, net |
163,671 |
|
149,287 |
|
22,561 |
|
Goodwill |
989,530 |
|
989,530 |
|
149,541 |
|
Long-term investments |
510,926 |
|
505,299 |
|
76,363 |
|
Amount
due from related parties |
20,210 |
|
20,385 |
|
3,081 |
|
Restricted cash |
3,344 |
|
3,389 |
|
512 |
|
Deferred
tax assets |
172,818 |
|
129,249 |
|
19,533 |
|
Other
non-current assets |
81,581 |
|
143,416 |
|
21,674 |
|
Total non-current assets |
5,662,619 |
|
5,705,098 |
|
862,177 |
|
Total assets |
9,908,161 |
|
10,075,146 |
|
1,522,594 |
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Short-term bank borrowings |
50,000 |
|
69,999 |
|
10,579 |
|
Accounts
and notes payable |
252,892 |
|
287,987 |
|
43,522 |
|
Accrued
expenses and other payables |
657,133 |
|
582,317 |
|
88,002 |
|
Deferred
revenue |
55,753 |
|
41,465 |
|
6,266 |
|
Advances
from customers |
403,244 |
|
475,541 |
|
71,865 |
|
Income
taxes payable |
13,309 |
|
29,650 |
|
4,481 |
|
Amounts
due to related parties |
55,675 |
|
54,795 |
|
8,281 |
|
Current
portion of long-term bank borrowings |
70,289 |
|
60,643 |
|
9,165 |
|
Current
portion of capital lease obligations |
201,315 |
|
217,271 |
|
32,835 |
|
Current
portion of deferred government grant |
4,574 |
|
4,574 |
|
691 |
|
Current
portion of bonds payable |
11,139 |
|
11,729 |
|
1,773 |
|
Total current liabilities |
1,775,323 |
|
1,835,971 |
|
277,460 |
|
Non-current liabilities: |
|
|
|
|
|
|
Long-term bank borrowings |
187,638 |
|
169,331 |
|
25,590 |
|
Amounts
due to related parties |
- |
|
46,416 |
|
7,015 |
|
Unrecognized tax benefits |
16,511 |
|
22,322 |
|
3,373 |
|
Deferred
tax liabilities |
190,873 |
|
184,829 |
|
27,932 |
|
Non-current portion of capital lease obligations |
600,882 |
|
673,336 |
|
101,757 |
|
Non-current portion of deferred government grant |
17,861 |
|
14,314 |
|
2,163 |
|
Bonds
payable |
1,918,069 |
|
1,947,608 |
|
294,330 |
|
Total non-current liabilities |
2,931,834 |
|
3,058,156 |
|
462,160 |
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
Treasury
stock |
(337,683 |
) |
(337,683 |
) |
(51,032 |
) |
Ordinary
shares |
46 |
|
46 |
|
7 |
|
Additional paid-in capital |
8,980,407 |
|
9,004,633 |
|
1,360,813 |
|
Accumulated other comprehensive loss |
(2,673 |
) |
17,854 |
|
2,698 |
|
Statutory reserves |
38,736 |
|
39,441 |
|
5,960 |
|
Accumulated deficit |
(3,629,300 |
) |
(3,691,375 |
) |
(557,854 |
) |
Total 21Vianet Group, Inc. shareholders’
equity |
5,049,533 |
|
5,032,916 |
|
760,592 |
|
Noncontrolling interest |
151,471 |
|
148,103 |
|
22,382 |
|
Total shareholders' equity |
5,201,004 |
|
5,181,019 |
|
782,974 |
|
Total liabilities and shareholders' equity |
9,908,161 |
|
10,075,146 |
|
1,522,594 |
|
|
|
|
|
|
|
|
|
|
|
|
|
21VIANET GROUP, INC. |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Amount in thousands of Renminbi (“RMB”) and
US dollars (“US$”) except for number of shares and per share
data) |
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
June 30,2017 |
|
March 31,2018 |
|
June 30,2018 |
|
|
June 30,2017 |
|
June 30,2018 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
RMB |
|
RMB |
|
US$ |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
Net revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hosting
and related services |
743,398 |
|
800,765 |
|
828,317 |
|
125,178 |
|
|
1,450,109 |
|
1,629,082 |
|
246,193 |
|
Managed
network services |
135,281 |
|
- |
|
- |
|
- |
|
|
290,747 |
|
- |
|
- |
|
Total
net revenues |
878,679 |
|
800,765 |
|
828,317 |
|
125,178 |
|
|
1,740,856 |
|
1,629,082 |
|
246,193 |
|
Cost of
revenues |
(690,716 |
) |
(572,863 |
) |
(598,884 |
) |
(90,506 |
) |
|
(1,372,416 |
) |
(1,171,747 |
) |
(177,079 |
) |
Gross profit |
187,963 |
|
227,902 |
|
229,433 |
|
34,672 |
|
|
368,440 |
|
457,335 |
|
69,114 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales
and marketing |
(70,880 |
) |
(41,232 |
) |
(41,816 |
) |
(6,319 |
) |
|
(136,712 |
) |
(83,048 |
) |
(12,551 |
) |
Research
and development |
(43,108 |
) |
(22,030 |
) |
(22,163 |
) |
(3,349 |
) |
|
(81,495 |
) |
(44,193 |
) |
(6,679 |
) |
General
and administrative |
(139,113 |
) |
(112,340 |
) |
(109,091 |
) |
(16,486 |
) |
|
(274,916 |
) |
(221,431 |
) |
(33,463 |
) |
(Allowance) reversal for doubtful debt |
(16,449 |
) |
1,855 |
|
627 |
|
95 |
|
|
(31,914 |
) |
2,482 |
|
375 |
|
Changes
in the fair value of contingent purchase consideration payable |
1,032 |
|
2,284 |
|
(5,494 |
) |
(830 |
) |
|
3,899 |
|
(3,210 |
) |
(485 |
) |
Total operating expenses |
(268,518 |
) |
(171,463 |
) |
(177,937 |
) |
(26,889 |
) |
|
(521,138 |
) |
(349,400 |
) |
(52,803 |
) |
Operating (loss) profit |
(80,555 |
) |
56,439 |
|
51,496 |
|
7,783 |
|
|
(152,698 |
) |
107,935 |
|
16,311 |
|
Interest
income |
7,188 |
|
8,527 |
|
8,961 |
|
1,354 |
|
|
15,440 |
|
17,488 |
|
2,643 |
|
Interest
expense |
(40,033 |
) |
(51,542 |
) |
(51,328 |
) |
(7,757 |
) |
|
(77,060 |
) |
(102,870 |
) |
(15,546 |
) |
Gain on
deconsolidation of subsidiaries |
- |
|
- |
|
4,843 |
|
732 |
|
|
- |
|
4,843 |
|
732 |
|
Other
income |
1,458 |
|
22,161 |
|
20,386 |
|
3,081 |
|
|
6,284 |
|
42,547 |
|
6,430 |
|
Other
expense |
(2,636 |
) |
(1,526 |
) |
(565 |
) |
(85 |
) |
|
(4,198 |
) |
(2,091 |
) |
(316 |
) |
Foreign
exchange (loss) gain |
(10,372 |
) |
44,841 |
|
(73,360 |
) |
(11,086 |
) |
|
(15,853 |
) |
(28,519 |
) |
(4,310 |
) |
(Loss) gain before income taxes and gain (loss) from equity
method investments |
(124,950 |
) |
78,900 |
|
(39,567 |
) |
(5,978 |
) |
|
(228,085 |
) |
39,333 |
|
5,944 |
|
Income
tax (expenses) benefits |
(1,387 |
) |
(34,080 |
) |
(44,305 |
) |
(6,696 |
) |
|
(17,514 |
) |
(78,385 |
) |
(11,846 |
) |
Gain
(loss) from equity method investments |
7,080 |
|
(10,089 |
) |
(11,659 |
) |
(1,762 |
) |
|
9,505 |
|
(21,748 |
) |
(3,287 |
) |
Net (loss)
profit |
(119,257 |
) |
34,731 |
|
(95,531 |
) |
(14,436 |
) |
|
(236,094 |
) |
(60,800 |
) |
(9,189 |
) |
Net loss
(profit) attributable to noncontrolling interest |
22,444 |
|
(1,891 |
) |
1,321 |
|
200 |
|
|
39,487 |
|
(570 |
) |
(86 |
) |
Net (loss)
profit attributable to ordinary shareholders |
(96,813 |
) |
32,840 |
|
(94,210 |
) |
(14,236 |
) |
|
(196,607 |
) |
(61,370 |
) |
(9,275 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss)
profit per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
(0.18 |
) |
0.05 |
|
(0.14 |
) |
(0.02 |
) |
|
(0.35 |
) |
(0.09 |
) |
(0.01 |
) |
Diluted |
(0.18 |
) |
0.05 |
|
(0.14 |
) |
(0.02 |
) |
|
(0.35 |
) |
(0.09 |
) |
(0.01 |
) |
Shares
used in (loss) profit per share computation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic* |
670,534,467 |
|
672,741,909 |
|
675,062,068 |
|
675,062,068 |
|
|
674,556,313 |
|
673,908,526 |
|
673,908,526 |
|
Diluted* |
670,534,467 |
|
677,158,404 |
|
675,062,068 |
|
675,062,068 |
|
|
674,556,313 |
|
673,908,526 |
|
673,908,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit per ADS
(6 ordinary shares equal to 1 ADS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
(1.08 |
) |
0.30 |
|
(0.84 |
) |
(0.12 |
) |
|
(2.10 |
) |
(0.54 |
) |
(0.06 |
) |
Diluted |
(1.08 |
) |
0.30 |
|
(0.84 |
) |
(0.12 |
) |
|
(2.10 |
) |
(0.54 |
) |
(0.06 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Shares used in (loss) profit per share/ADS computation were
computed under weighted average method. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21VIANET GROUP, INC. |
RECONCILIATIONS OF GAAP AND NON-GAAP
RESULTS |
(Amount in thousands of Renminbi (“RMB”) and
US dollars (“US$”)) |
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
June 30,2017 |
|
March 31,2018 |
|
June 30,2018 |
|
|
June 30,2017 |
|
June 30,2018 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
RMB |
|
RMB |
|
US$ |
|
Gross
profit |
187,963 |
|
227,902 |
|
229,433 |
|
34,672 |
|
|
368,440 |
|
457,335 |
|
69,114 |
|
Plus:
depreciation and amortization |
147,905 |
|
119,562 |
|
134,282 |
|
20,293 |
|
|
228,231 |
|
253,844 |
|
38,362 |
|
Plus:
share-based compensation expenses |
42 |
|
14 |
|
293 |
|
44 |
|
|
(180 |
) |
307 |
|
46 |
|
Adjusted cash gross profit |
335,910 |
|
347,478 |
|
364,008 |
|
55,009 |
|
|
596,491 |
|
711,486 |
|
107,522 |
|
Adjusted cash gross margin |
38.2% |
|
43.4% |
|
43.9% |
|
43.9% |
|
|
34.3% |
|
43.7% |
|
43.7% |
|
Operating expenses |
(268,518 |
) |
(171,463 |
) |
(177,937 |
) |
(26,889 |
) |
|
(521,138 |
) |
(349,400 |
) |
(52,803 |
) |
Plus:
share-based compensation expenses |
11,563 |
|
6,555 |
|
10,547 |
|
1,594 |
|
|
16,108 |
|
17,102 |
|
2,585 |
|
Plus:
changes in the fair value of contingent purchase consideration
payable |
(1,032 |
) |
(2,284 |
) |
5,494 |
|
830 |
|
|
(3,899 |
) |
3,210 |
|
485 |
|
Adjusted operating expenses |
(257,987 |
) |
(167,192 |
) |
(161,896 |
) |
(24,465 |
) |
|
(508,929 |
) |
(329,088 |
) |
(49,733 |
) |
Operating (loss) profit |
(80,555 |
) |
56,439 |
|
51,496 |
|
7,783 |
|
|
(152,698 |
) |
107,935 |
|
16,311 |
|
Plus:
depreciation and amortization |
178,591 |
|
135,290 |
|
153,313 |
|
23,169 |
|
|
349,544 |
|
288,603 |
|
43,615 |
|
Plus:
share-based compensation expenses |
11,605 |
|
6,569 |
|
10,840 |
|
1,638 |
|
|
15,928 |
|
17,409 |
|
2,631 |
|
Plus:
changes in the fair value of contingent purchase consideration
payable |
(1,032 |
) |
(2,284 |
) |
5,494 |
|
830 |
|
|
(3,899 |
) |
3,210 |
|
485 |
|
Adjusted EBITDA |
108,609 |
|
196,014 |
|
221,143 |
|
33,420 |
|
|
208,875 |
|
417,157 |
|
63,042 |
|
Adjusted EBITDA margin |
12.4% |
|
24.5% |
|
26.7% |
|
26.7% |
|
|
12.0% |
|
25.6% |
|
25.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21VIANET GROUP, INC. |
SUPPLEMENTARY DISCLOSURE FOR HOSTING AND
RELATED SERVICES |
(Amount in thousands of Renminbi (“RMB”) and
US dollars (“US$”)) |
|
|
|
|
|
|
|
|
|
|
Three months
ended |
|
Six months
ended |
|
June 30,2017 |
|
March 31,2018 |
|
June 30,2018 |
|
|
June 30,2017 |
|
June 30,2018 |
|
GAAP Disclosure |
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
RMB |
|
RMB |
|
US$ |
|
Net revenues |
743,398 |
|
800,765 |
|
828,317 |
|
125,178 |
|
|
1,450,109 |
|
1,629,082 |
|
246,193 |
|
Cost of
revenues |
(522,024 |
) |
(572,863 |
) |
(598,884 |
) |
(90,506 |
) |
|
(1,022,454 |
) |
(1,171,747 |
) |
(177,079 |
) |
Gross profit |
221,374 |
|
227,902 |
|
229,433 |
|
34,672 |
|
|
427,655 |
|
457,335 |
|
69,114 |
|
Sales
and marketing |
(44,980 |
) |
(41,232 |
) |
(41,816 |
) |
(6,319 |
) |
|
(78,995 |
) |
(83,048 |
) |
(12,551 |
) |
Research
and development |
(23,884 |
) |
(22,030 |
) |
(22,163 |
) |
(3,349 |
) |
|
(46,090 |
) |
(44,193 |
) |
(6,679 |
) |
General
and administrative |
(104,825 |
) |
(112,340 |
) |
(109,091 |
) |
(16,486 |
) |
|
(203,039 |
) |
(221,431 |
) |
(33,463 |
) |
(Allowance) reversal for doubtful debt |
(80 |
) |
1,855 |
|
627 |
|
95 |
|
|
(2,520 |
) |
2,482 |
|
375 |
|
Changes
in the fair value of contingent purchase consideration payable |
1,032 |
|
2,284 |
|
(5,494 |
) |
(830 |
) |
|
3,899 |
|
(3,210 |
) |
(485 |
) |
Total operating expenses |
(172,737 |
) |
(171,463 |
) |
(177,937 |
) |
(26,889 |
) |
|
(326,745 |
) |
(349,400 |
) |
(52,803 |
) |
Operating profit |
48,637 |
|
56,439 |
|
51,496 |
|
7,783 |
|
|
100,910 |
|
107,935 |
|
16,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
disclosure |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit |
221,374 |
|
227,902 |
|
229,433 |
|
34,672 |
|
|
427,655 |
|
457,335 |
|
69,114 |
|
Plus:
depreciation and amortization |
96,754 |
|
119,562 |
|
134,282 |
|
20,293 |
|
|
184,900 |
|
253,844 |
|
38,362 |
|
Plus:
share-based compensation expenses |
66 |
|
14 |
|
293 |
|
44 |
|
|
(72 |
) |
307 |
|
46 |
|
Adjusted cash gross profit |
318,194 |
|
347,478 |
|
364,008 |
|
55,009 |
|
|
612,483 |
|
711,486 |
|
107,522 |
|
Adjusted cash gross margin |
42.8% |
|
43.4% |
|
43.9% |
|
43.9% |
|
|
42.2% |
|
43.7% |
|
43.7% |
|
Operating expenses |
(172,737 |
) |
(171,463 |
) |
(177,937 |
) |
(26,889 |
) |
|
(326,745 |
) |
(349,400 |
) |
(52,803 |
) |
Plus:
share-based compensation expenses |
13,769 |
|
6,555 |
|
10,547 |
|
1,594 |
|
|
16,588 |
|
17,102 |
|
2,585 |
|
Plus:
changes in the fair value of contingent purchase consideration
payable |
(1,032 |
) |
(2,284 |
) |
5,494 |
|
830 |
|
|
(3,899 |
) |
3,210 |
|
485 |
|
Adjusted operating expenses |
(160,000 |
) |
(167,192 |
) |
(161,896 |
) |
(24,465 |
) |
|
(314,056 |
) |
(329,088 |
) |
(49,733 |
) |
Operating profit |
48,637 |
|
56,439 |
|
51,496 |
|
7,783 |
|
|
100,910 |
|
107,935 |
|
16,311 |
|
Plus:
depreciation and amortization |
109,868 |
|
135,290 |
|
153,313 |
|
23,169 |
|
|
210,500 |
|
288,603 |
|
43,615 |
|
Plus:
share-based compensation expenses |
13,835 |
|
6,569 |
|
10,840 |
|
1,638 |
|
|
16,516 |
|
17,409 |
|
2,631 |
|
Plus:
changes in the fair value of contingent purchase consideration
payable |
(1,032 |
) |
(2,284 |
) |
5,494 |
|
830 |
|
|
(3,899 |
) |
3,210 |
|
485 |
|
Adjusted EBITDA |
171,308 |
|
196,014 |
|
221,143 |
|
33,420 |
|
|
324,027 |
|
417,157 |
|
63,042 |
|
Adjusted EBITDA margin |
23.0% |
|
24.5% |
|
26.7% |
|
26.7% |
|
|
22.3% |
|
25.6% |
|
25.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21VIANET GROUP, INC. |
CONDENSED CONSOLIDATED STATEMENT OF CASH
FLOWS |
(Amount in thousands of Renminbi (“RMB”) and US
dollars (“US$”)) |
|
|
|
|
|
|
Three months
ended |
|
June 30,2017 |
|
March 31,2018 |
|
June 30,2018 |
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
CASH FLOWS FROM
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net
(loss) profit |
(119,257 |
) |
34,731 |
|
(95,531 |
) |
(14,436 |
) |
Adjustments to reconcile net (loss) profit to net cash
generated from operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
178,591 |
|
135,290 |
|
153,313 |
|
23,169 |
|
Stock-based compensation expenses |
11,573 |
|
6,569 |
|
10,840 |
|
1,638 |
|
Others |
9,226 |
|
(47,256 |
) |
93,201 |
|
14,085 |
|
Changes in operating assets and liabilities |
|
|
|
|
|
|
|
|
Accounts
and notes receivable |
30,509 |
|
(49,722 |
) |
(29,540 |
) |
(4,464 |
) |
Prepaid
expenses and other current assets |
(82,143 |
) |
(92,181 |
) |
(14,088 |
) |
(2,129 |
) |
Accounts
and notes payable |
(5,560 |
) |
40,243 |
|
(4,819 |
) |
(728 |
) |
Accrued
expenses and other payables |
71,956 |
|
(25,300 |
) |
25,971 |
|
3,925 |
|
Deferred
revenue |
(19,417 |
) |
(20,505 |
) |
6,217 |
|
940 |
|
Advances
from customers |
36,406 |
|
73,995 |
|
(1,698 |
) |
(257 |
) |
Others |
(24,723 |
) |
39,989 |
|
(32,468 |
) |
(4,907 |
) |
Net cash generated from operating activities |
87,161 |
|
95,853 |
|
111,398 |
|
16,836 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
(144,092 |
) |
(91,027 |
) |
(91,256 |
) |
(13,791 |
) |
Purchases of intangible assets |
(5,466 |
) |
(1,887 |
) |
(3,756 |
) |
(568 |
) |
Payments
for investments |
(36,247 |
) |
(14,473 |
) |
(39,098 |
) |
(5,909 |
) |
Payments
for assets acquisition, net of cash acquired |
(10,000 |
) |
- |
|
- |
|
- |
|
Proceeds
from other investing activities |
486,357 |
|
26,654 |
|
357,302 |
|
53,997 |
|
Net cash
generated from (used in) investing activities |
290,552 |
|
(80,733 |
) |
223,192 |
|
33,729 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Repayments of 2017 bonds |
(420,600 |
) |
- |
|
- |
|
- |
|
Proceeds
from bank borrowings |
43,662 |
|
69,999 |
|
- |
|
- |
|
Repayments of bank borrowings |
(30,349 |
) |
(50,000 |
) |
(27,953 |
) |
(4,224 |
) |
Payments
for capital lease |
(60,552 |
) |
(29,287 |
) |
(95,183 |
) |
(14,384 |
) |
Payment
for shares repurchase plan |
(41,880 |
) |
- |
|
- |
|
- |
|
Payments
for other financing activities |
(31,800 |
) |
(19,650 |
) |
38,801 |
|
5,863 |
|
Contribution from noncontrolling interest in a subsidiary |
22,962 |
|
- |
|
- |
|
- |
|
Net cash used
in financing activities |
(518,557 |
) |
(28,938 |
) |
(84,335 |
) |
(12,745 |
) |
Effect of
foreign exchange rate changes on cash, cash
equivalents and restricted
cash |
(31,317 |
) |
(73,414 |
) |
80,660 |
|
12,189 |
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash |
(172,161 |
) |
(87,232 |
) |
330,915 |
|
50,009 |
|
Cash, cash
equivalents and restricted cash at beginning of
period |
2,848,230 |
|
2,195,469 |
|
2,108,237 |
|
318,604 |
|
Cash, cash
equivalents and restricted cash at end of
period |
2,676,069 |
|
2,108,237 |
|
2,439,152 |
|
368,613 |
|
|
|
|
|
|
|
|
|
|
Notes: |
|
|
|
|
|
|
|
|
The Company adopted Accounting Standards Update (“ASU”) No.
2016-18, Statement of Cash Flows (Topic 230): Restricted Cash on
January 1, 2018 and retrospectively adjusted the condensed
consolidated statement of cash flows for the three months ended
June 30, 2017 by excluding the movement of restricted cash of
RMB150.5 million. |
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