• 21Vianet Group, Inc. Reports Unaudited Third Quarter 2018 Financial Results

    المصدر: Nasdaq GlobeNewswire / 20 نوفمبر 2018 16:30:15   America/New_York

    3Q18 adjusted EBITDA margin expanded to 28.2%
    Raising full year 2018 adjusted EBITDA guidance

    BEIJING, Nov. 21, 2018 (GLOBE NEWSWIRE) -- 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 third quarter ended September 30, 2018. The Company will hold a conference call at 8:00 pm on Tuesday, November 20, 2018, U.S. Eastern Time to discuss the financial results. Dial-in details are provided at the end of this release.

    Third Quarter 2018 Financial Highlights (including hosting and related services & MNS1 business)           

    • Revenues from hosting and related services increased by 14.6% year over year and 5.0% quarter over quarter to RMB870.1 million (US$126.7 million).

    • Adjusted cash gross margin expanded to 45.0% from 38.3% in the same period of 2017 and 43.9% in the second quarter of 2018.

    • Operating profit improved to RMB64.6 million (US$9.4 million) from an operating loss of RMB1,223.6 million in the same period of 2017 and RMB51.5 million in the second quarter of 2018.

    • Adjusted EBITDA increased by 81.6% year over year and 10.9% quarter over quarter to RMB45.2 million (US$35.7 million). Adjusted EBITDA margin expanded to 28.2% from 15.2% in the same period of 2017 and 26.7% in the second quarter of 2018.

    • Net cash generated from operating activities was RMB260.7 million (US$38.0 million) in the third quarter of 2018 compared to RMB206.6 million in the same period of 2017 and RMB111.4 million in the second quarter of 2018.

    The financial results of the same period of 2017 included those from both the hosting and related services business and the MNS business. The year-over-year improvement was partially attributable to the disposal of the MNS business in September 2017.

    Third Quarter 2018 Operational Highlights

    • Hosting MRR2 per cabinet increased to RMB8,384 in the third quarter of 2018 compared to RMB7,817 in the third quarter of 2017 and RMB8,271 in the second quarter of 2018.

    • Total cabinets under management increased to 30,303 as of September 30, 2018 from 29,149 as of June 30, 2018. As of September 30, 2018, the Company had 25,361 cabinets in its self-built data centers and 4,942 cabinets in its partnered data centers.

    • Utilization rate in the third quarter of 2018 remained stable at 71.1% compared to the second quarter of 2018, due to the additional 1,194 cabinets that were delivered in September 2018.

    Mr. Alvin Wang, Chief Executive Officer and President of the Company, stated, “We maintained our strong momentum in revenue growth and profitability expansion during the third quarter of 2018. Our revenues grew by 14.6% year over year as we won new orders from existing customers, attracted additional notable customers, and experienced growth of Microsoft cloud service in China. Meanwhile, our adjusted EBITDA margin expanded to 28.2%, as we continuously grew our scale and improved our operational efficiency. While remain cautiously optimistic about our growth prospect and profitability against a backdrop of macroeconomic uncertainties, we will continue to execute our long-term strategy by accelerating our capacity growth in Tier 1 cities, nearby satellite cities and quasi-tier 1 cities. As we maintain our focus on sharpening our competitive edges in network quality and technology capability, we will be well-positioned to capitalize on the increasing market demand in China going forward.”

    Ms. Sharon Liu, Chief Financial Officer of the Company, commented, “We once again delivered a solid quarter with strong top- and bottom-line growths. In the third quarter of 2018, our net revenues reported RMB870.1 million, beating the high-end of our guidance. More importantly, our adjusted EBITDA margin further increased to 28.2%, showcasing constant improvement in the past three quarters. We are raising our full year 2018 adjusted EBITDA guidance to reflect our achievement.”

    Third 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 14.6% to RMB870.1 million (US$126.7 million) in the third quarter of 2018 from RMB759.3 million in the same period of 2017 and increased by 5.0% from RMB828.3 million in the second quarter of 2018. The increase was primarily due to the growing demand for data centers and cloud services in the domestic market.

    GROSS PROFIT: Gross profit increased by 11.1% to RMB241.2 million (US$35.1 million) in the third quarter of 2018 from RMB217.1 million in the same period of 2017 and increased by 5.1% from RMB229.4 million in the second quarter of 2018. Gross margin decreased slightly to 27.7% in the third quarter of 2018 from 28.6% in the same period of 2017 but remained stable compared to the second quarter of 2018. The year-over-year decrease in gross margin was mainly due to an increase in depreciation.

    ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, increased by 24.2% to RMB391.9 million (US$57.1 million) in the third quarter of 2018 from RMB315.6 million in the same period of 2017 and increased by 7.7% from RMB364.0 million in the second quarter of 2018. Adjusted cash gross margin expanded to 45.0% in the third quarter of 2018 from 41.6% in the same period of 2017 and 43.9% in the second quarter of 2018.
                                                                                                                                                 
    OPERATING EXPENSES: Total operating expenses increased by 1.1% to RMB176.6 million (US$25.7 million) in the third quarter of 2018 from RMB174.6 million in the same period of 2017 but decreased by 0.8% from RMB177.9 million in the second quarter of 2018. As a percentage of net revenues, total operating expenses decreased to 20.3% in the third quarter of 2018 from 23.0% in the same period of 2017 and 21.5% in the second 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 3.0% to RMB162.9 million (US$23.7 million) in the third quarter of 2018 from RMB158.1 million in the same period of 2017 and increased by 0.6% from RMB161.9 million in the second quarter of 2018. As a percentage of net revenues, adjusted operating expenses decreased to 18.7% in the third quarter of 2018 from 20.8% in the same period of 2017 and 19.5% in the second quarter of 2018. The decrease of adjusted operating expenses as a percentage of total revenues was primarily due to the successful implementation of the Company’s efficiency enhancement initiatives.

    Sales and marketing expenses were RMB39.9 million (US$5.8 million) in the third quarter of 2018 compared to RMB50.1 million in the same period of 2017 and from RMB41.8 million in the second quarter of 2018.

    Research and development expenses were RMB24.3 million (US$3.5 million) in the third quarter of 2018 compared to RMB22.2 million in the same period of 2017 and RMB22.2 million in the second quarter of 2018.

    General and administrative expenses were RMB110.2 million (US$16.1 million) in the third quarter of 2018 compared to RMB98.8 million in the same period of 2017 and RMB109.1 million in the second quarter of 2018.

    ADJUSTED EBITDA: Adjusted EBITDA in the third quarter of 2018 increased by 39.5% to RMB245.2 million (US$35.7 million) from RMB175.8 million in the same period of 2017 and increased by 10.9% from RMB221.1 million in the second quarter of 2018. Adjusted EBITDA in the third quarter of 2018 excludes share-based compensation expenses of RMB12.9 million (US$1.9 million) and changes in the fair value of contingent purchase consideration payable, which was a loss of RMB1.4 million (US$0.2 million). Adjusted EBITDA margin expanded to 28.2% in the third quarter of 2018 from 23.1% in the same period of 2017 and 26.7% in the second quarter of 2018.

    NET LOSS: Net loss in the third quarter of 2018 was RMB27.9 million (US$4.1 million) compared to a net loss of RMB1,479.1 million in the same period of 2017 and a net loss of RMB95.5 million in the second quarter of 2018. Net loss in the third quarter of 2018 included a foreign exchange loss of RMB55.0 million (US$8.0 million) compared to RMB5.6 million in the same period of 2017 and RMB73.4 million in the second quarter of 2018.

    LOSS PER SHARE: Basic and diluted loss per share was RMB0.04 (US$0.01) in the third quarter of 2018, which represents the equivalent of RMB0.24 (US$0.06) 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 September 30, 2018, the Company's cash and cash equivalents, restricted cash and short-term investments were RMB2.96 billion (US$431.4 million).

    Net cash generated from operating activities was RMB260.7 million (US$38.0 million) in the third quarter of 2018 compared to RMB206.6 million in the same period of 2017 and RMB111.4 million in the second quarter of 2018.

    Financial Outlook

    For the fourth quarter of 2018, the Company expects net revenues to be in the range of RMB870 million to RMB890 million. Adjusted EBITDA is expected to be in the range of RMB245 million to RMB265 million.

    Consequently, for the full year of 2018, the Company now expects net revenues to be in the range of RMB3,370 million to RMB3,390 million. Adjusted EBITDA is expected to be in the range of RMB905 million to RMB925 million. The midpoints of the Company’s updated estimates imply an increase of 13.6% year-over-year in total revenues and 36.4% year-over-year in adjusted EBITDA.

    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 Tuesday, November 20, 2018 U.S. Eastern Time, or 9:00 am on Wednesday, November 21, 2018 Beijing Time, to discuss the financial results.

    Participants may access the call by dialing the following numbers:

    United States Toll Free:+1-855-500-8701
    International:+65-6713-5440
    China Domestic:400-120-0654
    Hong Kong:+852-3018-6776
    Conference ID: 8076287

    The replay will be accessible through November 28, 2018 by dialing the following numbers:

    United States Toll Free:+1-855-452-5696
    International: +61-2-9003-4211
    Conference ID: 8076287

    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 RMB6.868 to US$1.00, the noon buying rate in effect on September 30, 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, 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 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 2121
    IR@21Vianet.com

    Julia Jiang
    +86 10 8456 2121
    IR@21Vianet.com

    ICR, Inc.
    Jack Wang
    +1 (646) 405-4922
    IR@21Vianet.com

    ____________________________________

    1MNS: Refers to managed network services.

    2Hosting MRR: Refers to Monthly Recurring Revenues for the hosting business.

    21VIANET GROUP, INC. 
    CONSOLIDATED BALANCE SHEETS 
    (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 
     As ofAs of  
    December 31, 2017September 30, 2018 
     RMB RMB US$ 
     (Audited) (Unaudited)  (Unaudited)  
    Assets     
    Current assets:    
    Cash and cash equivalents  1,949,631   2,334,260   339,875  
    Restricted cash  242,494   398,138   57,970  
    Accounts and notes receivable, net  455,811   570,112   83,010  
    Short-term investments  548,890   227,037   33,057  
    Prepaid expenses and other current assets  934,460   1,215,211   176,939  
    Amount due from related parties  114,256   134,292   19,553  
    Total current assets  4,245,542   4,879,050   710,404  
         
    Non-current assets:    
    Property and equipment, net  3,319,424   3,975,522   578,847  
    Intangible assets, net  401,115   362,904   52,840  
    Land use rights, net  163,671   148,390   21,606  
    Goodwill  989,530   989,530   144,078  
    Long-term investments  510,926   695,277   101,234  
    Amount due from related parties  20,210   20,735   3,019  
    Restricted cash  3,344   3,537   515  
    Deferred tax assets  172,818   143,866   20,947  
    Other non-current assets  81,581   136,288   19,844  
    Total non-current assets  5,662,619   6,476,049   942,930  
    Total assets  9,908,161   11,355,099   1,653,334  
         
    Liabilities and Shareholders' Equity    
    Current liabilities:    
    Short-term bank borrowings  50,000   69,999   10,192  
    Accounts and notes payable  252,892   421,242   61,334  
    Accrued expenses and other payables  657,133   542,539   78,995  
    Deferred revenue  55,753   52,619   7,661  
    Advances from customers  403,244   590,069   85,916  
    Income taxes payable  13,309   32,903   4,791  
    Amounts due to related parties  55,675   230,174   33,514  
    Current portion of long-term bank borrowings  70,289   104,974   15,285  
    Current portion of capital lease obligations  201,315   206,559   30,076  
    Current portion of deferred government grant  4,574   4,574   666  
    Current portion of bonds payable  11,139   12,239   1,782  
    Total current liabilities  1,775,323   2,267,891   330,212  
         
    Non-current liabilities:    
    Long-term bank borrowings  187,638   125,000   18,200  
    Amounts due to related parties   433,984   63,189  
    Unrecognized tax benefits  16,511   22,492   3,275  
    Deferred tax liabilities  190,873   182,680   26,599  
    Non-current portion of capital lease obligations  600,882   843,374   122,798  
    Non-current portion of deferred government grant  17,861   12,985   1,891  
    Bonds payable  1,918,069   2,027,695   295,238  
    Total non-current liabilities  2,931,834   3,648,210   531,190  
            
            
    Shareholders' equity       
    Treasury stock  (337,683)  (337,683)  (49,168) 
    Ordinary shares   46   46   7  
    Additional paid-in capital  8,980,407   9,019,296   1,313,235  
    Accumulated other comprehensive (loss) gain  (2,673)  92,781   13,509  
    Statutory reserves  38,736   40,014   5,826  
    Accumulated deficit  (3,629,300)  (3,721,580)  (541,874) 
    Total 21Vianet Group, Inc. shareholders’ equity  5,049,533   5,092,874   741,535  
    Noncontrolling interest  151,471   346,124   50,397  
    Total shareholders' equity  5,201,004   5,438,998   791,932  
    Total liabilities and shareholders' equity  9,908,161   11,355,099   1,653,334  
         
         

     

    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  Nine months ended  
     September 30, 2017June 30, 2018September  30, 2018 September 30, 2017September 30, 2018 
     RMBRMBRMBUS$ RMBRMBUS$ 
     (Unaudited)(Unaudited)(Unaudited)(Unaudited) (Unaudited)(Unaudited)(Unaudited) 
    Net revenues         
    Hosting and related services  759,255   828,317   870,068   126,684    2,209,364   2,499,150   363,883  
    Managed network services  126,780   -    -    -    417,527   -   -  
    Total net revenues  886,035   828,317   870,068   126,684    2,626,891   2,499,150   363,883  
    Cost of revenues  (696,234)  (598,884)  (628,873)  (91,566)   (2,068,650)  (1,800,620)  (262,175) 
    Gross profit  189,801   229,433   241,195   35,118    558,241   698,530   101,708  
    Operating expenses          
    Sales and marketing  (77,268)  (41,816)  (39,918)  (5,812)   (213,980)  (122,966)  (17,904) 
    Research and development  (38,308)  (22,163)  (24,333)  (3,543)   (119,803)  (68,526)  (9,978) 
    General and administrative  (129,683)  (109,091)  (110,243)  (16,052)   (404,599)  (331,674)  (48,293) 
    (Allowance) reversal for doubtful debt  (4,366)  627   (643)  (94)   (36,280)  1,839   268  
    Changes in the fair value of contingent purchase consideration payable  (1,002)  (5,494)  (1,413)  (206)   2,897   (4,623)  (673) 
    Impairment of long-lived assets  (401,808)  -   -   -    (401,808)  -   -  
    Goodwill impairment  (766,440)  -   -   -    (766,440)  -   -  
               
    Total operating expenses  (1,418,875)  (177,937)  (176,550)  (25,707)   (1,940,013)  (525,950)  (76,580) 
    Other operating income  5,439     -    5,439   -   -  
    Operating (loss) profit  (1,223,635)  51,496   64,645   9,411    (1,376,333)  172,580   25,128  
    Interest income  6,664   8,961   13,484   1,963    22,104   30,972   4,510  
    Interest expense  (57,417)  (51,328)  (60,766)  (8,848)   (134,477)  (163,636)  (23,826) 
                
    Impairment of long-term investment   (20,397)  -   -   -    (20,397)  -   -  
    Disposal (loss) gain of subsidiaries  (180,048)  4,843   -   -    (180,048)  4,843   705  
    Other income  7,220   20,386   8,436   1,228    13,504   50,983   7,423  
    Other expense  (12,630)  (565)  (137)  (20)   (16,828)  (2,228)  (324) 
    Foreign exchange loss  (5,628)  (73,360)  (55,024)  (8,012)   (21,481)  (83,543)  (12,164) 
    (Loss) gain before income taxes and gain (loss) from equity method investments  (1,485,871)  (39,567)  (29,362)  (4,278)   (1,713,956)  9,971   1,452  
    Income tax (expenses) benefits  (19,794)  (44,305)  7,624   1,110    (37,308)  (70,761)  (10,303) 
    Gain (loss) from equity method investments  26,546   (11,659)  (6,156)  (896)   36,051   (27,904)  (4,063) 
    Net loss  (1,479,119)  (95,531)  (27,894)  (4,064)   (1,715,213)  (88,694)  (12,914) 
    Net loss (profit) attributable to noncontrolling interest  104,354   1,321   (1,739)  (253)   143,841   (2,309)  (336) 
    Net loss attributable to ordinary shareholders  (1,374,765)  (94,210)  (29,633)  (4,317)   (1,571,372)  (91,003)  (13,250) 
              
              
    (Loss) profit per share         
    Basic  (2.20)  (0.14)  (0.04)  (0.01)   (2.54)  (0.13)  (0.02) 
    Diluted  (2.20)  (0.14)  (0.04)  (0.01)   (2.54)  (0.13)  (0.02) 
    Shares used in (loss) profit per share computation         
    Basic*  670,701,497   675,062,068   676,327,014   676,327,014    673,261,889   674,723,544   674,723,544  
    Diluted*  670,701,497   675,062,068   676,327,014   676,327,014    673,261,889   674,723,544   674,723,544  
              
    (Loss) profit per ADS (6 ordinary shares equal to 1 ADS)         
    Basic(13.20)(0.84)(0.24)  (0.06) (15.24)  (0.78)  (0.12) 
    Diluted(13.20)(0.84)(0.24)  (0.06) (15.24)  (0.78)  (0.12) 
              
    * 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  Nine months ended  
     September 30,
    2017
    June 30, 2018September  30, 2018 September 30,
    2017
    September 30, 2018 
     RMBRMBRMBUS$ RMBRMB US$  
    Gross profit  189,801   229,433   241,195   35,118    558,241   698,530   101,708  
    Plus: depreciation and amortization  149,434   134,282   150,056   21,849    440,149   403,900   58,809  
    Plus: share-based compensation expenses  (181)  293   689   100    (361)  996   145  
    Adjusted cash gross profit  339,054   364,008   391,940   57,067    998,029   1,103,426   160,662  
    Adjusted cash gross margin38.3% 43.9% 45.0% 45.0%  38.0% 44.2% 44.2%  
    Operating expenses  (1,413,436)  (177,937)  (176,550)  (25,707)   (1,934,574)  (525,950)  (76,580) 
    Plus: share-based compensation expenses  15,981   10,547   12,240   1,782    32,089   29,342   4,272  
    Plus: changes in the fair value of contingent purchase consideration payable  1,002   5,494   1,413   206    (2,897)  4,623   673  
    Plus: impairment of long-lived assets   401,808   -   -   -    401,808   -   -   
    Plus: Goodwill impairment  766,440   -   -   -    766,440   -   -   
    Adjusted operating expenses  (228,205)  (161,896)  (162,897)  (23,719)   (737,134)  (491,985)  (71,635) 
    Operating (loss) profit  (1,223,635)  51,496   64,645   9,411    (1,376,333)  172,580   25,128  
    Plus: depreciation and amortization  173,592   153,313   166,244   24,206    523,136   454,847   66,227  
    Plus: share-based compensation expenses  15,800   10,840   12,929   1,882    31,728   30,338   4,417  
    Plus: changes in the fair value of contingent purchase consideration payable  1,002   5,494   1,413   206    (2,897)  4,623   673  
    Plus: impairment of long-lived assets   401,808   -    -    -     401,808   -    -   
    Plus: Goodwill impairment  766,440   -    -    -     766,440   -    -   
    Adjusted EBITDA  135,007   221,143   245,231   35,705    343,882   662,388   96,445  
    Adjusted EBITDA margin15.2% 26.7% 28.2% 28.2%  13.1% 26.5% 26.5%  
              

     

    21VIANET GROUP, INC. 
    SUPPLEMENTARY DISCLOSURE FOR HOSTING AND RELATED SERVICES 
    (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 
              
     Three months ended  Nine months ended  
     September 30, 2017June 30, 2018September  30, 2018 September 30, 2017September 30, 2018 
    GAAP DisclosureRMBRMBRMBUS$ RMBRMBUS$ 
    Net revenues  759,255   828,317   870,068   126,684    2,209,364   2,499,150   363,883  
    Cost of revenues  (542,179)  (598,884)  (628,873)  (91,566)   (1,564,633)  (1,800,620)  (262,175) 
    Gross profit  217,076   229,433   241,195   35,118    644,731   698,530   101,708  
    Sales and marketing  (50,063)  (41,816)  (39,918)  (5,812)   (129,059)  (122,966)  (17,904) 
    Research and development  (22,167)  (22,163)  (24,333)  (3,543)   (68,257)  (68,526)  (9,978) 
    General and administrative  (98,766)  (109,091)  (110,243)  (16,052)   (301,805)  (331,674)  (48,293) 
    (Allowance) reversal for doubtful debt  (2,590)  627   (643)  (94)   (5,110)  1,839   268  
    Changes in the fair value of contingent purchase consideration payable  (1,002)  (5,494)  (1,413)  (206)   2,897   (4,623)  (673) 
    Total operating expenses  (174,588)  (177,937)  (176,550)  (25,707)   (501,333)  (525,950)  (76,580) 
    Other operating income  5,439   -   -   -    5,439   -   -  
    Operating profit  47,927   51,496   64,645   9,411    148,837   172,580   25,128  
              
    Non-GAAP disclosure         
    Gross profit  217,076   229,433   241,195   35,118    644,731   698,530   101,708  
    Plus: depreciation and amortization  98,693   134,282   150,056   21,849    283,593   403,900   58,809  
    Plus: share-based compensation expenses  (175)  293   689   100    (246)  996   145  
    Adjusted cash gross profit  315,594   364,008   391,940   57,067    928,078   1,103,426   160,662  
    Adjusted cash gross margin41.6% 43.9% 45.0% 45.0%  42.0% 44.2% 44.2%  
    Operating expenses  (174,588)  (177,937)  (176,550)  (25,707)   (501,333)  (525,950)  (76,580) 
    Plus: share-based compensation expenses  15,501   10,547   12,240   1,782    32,089   29,342   4,272  
    Plus: changes in the fair value of contingent purchase consideration payable  1,002   5,494   1,413   206    (2,897)  4,623   673  
    Adjusted operating expenses  (158,085)  (161,896)  (162,897)  (23,719)   (472,141)  (491,985)  (71,635) 
    Operating profit  47,927   51,496   64,645   9,411    148,837   172,580   25,128  
    Plus: depreciation and amortization  111,510   153,313   166,244   24,206    322,010   454,847   66,227  
    Plus: share-based compensation expenses  15,326   10,840   12,929   1,882    31,843   30,338   4,417  
    Plus: changes in the fair value of contingent purchase consideration payable  1,002   5,494   1,413   206    (2,897)  4,623   673  
    Adjusted EBITDA  175,765   221,143   245,231   35,705    499,793   662,388   96,445  
    Adjusted EBITDA margin23.1% 26.7% 28.2% 28.2%  22.6% 26.5% 26.5%  
              

     

    21VIANET GROUP, INC. 
    CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
    (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 
           
       
     September  30, 2017June 30, 2018September  30, 2018 
      RMB  RMB  RMB  US$  
      (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  
     CASH FLOWS FROM OPERATING ACTIVITIES      
     Net loss   (1,479,119)  (95,531)  (27,894)  (4,064) 
     Adjustments to reconcile net loss to net cash generated from operating activities:      
      Depreciation and amortization   173,592   153,313   166,244   24,206  
      Impairment of long-lived assets   401,808   -   -   -  
      Impairment of goodwill   766,440   -   -   -  
      Stock-based compensation expenses   15,720   10,840   12,929   1,882  
      Loss from disposal of subsidiaries   180,048   -   -   -  
      Others   12,421   93,201   41,616   6,059  
     Changes in operating assets and liabilities      
      Accounts and notes receivable   36,562   (29,540)  (34,113)  (4,967) 
      Prepaid expenses and other current assets   (119,384)  (14,088)  (37,448)  (5,453) 
      Accounts and notes payable   26,379   (4,819)  37,690   5,488  
      Accrued expenses and other payables   120,015   25,971   (19,359)  (2,819) 
      Deferred revenue   (11,598)  6,217   11,154   1,624  
      Advances from customers   77,225   (1,698)  114,528   16,676  
      Others   6,455   (32,468)  (4,632)  (672) 
     Net cash generated from operating activities   206,564   111,398   260,715   37,960  
          
          
     CASH FLOWS FROM INVESTING ACTIVITIES      
     Purchases of property and equipment   (77,872)  (91,256)  (123,027)  (17,913) 
     Purchases of intangible assets   (43)  (3,756)  (4,032)  (587) 
     Disposal of subsidiaries, net of cash   (77,719)  -   -   -  
     Payments for investments   (399,035)  (39,098)  (196,319)  (28,585) 
     Proceeds from minority equity interest transfer of a subsidiary   -   -   196,129   28,557  
     Proceeds from other investing activities   6,115   357,302   18,061   2,630  
     Net cash (used in) generated from investing activities   (548,554)  223,192   (109,188)  (15,898) 
          
          
     CASH FLOWS FROM FINANCING ACTIVITIES      
     Repayment of loan from a third party   (100,000)  -   -   -  
     Proceeds from issuance of 2020 bonds   1,316,974   -   -   -  
     Repayment of long-term bank borrowings   (40,676)  -   -   -  
     Repayment of short-term bank borrowings   (11,843)  -   -   -  
     Repayments of bank borrowings   -   (27,953)  -   -  
     Payments for capital lease   (39,280)  (95,183)  (50,996)  (7,425) 
     Withdrawal of advance for shares repurchase plan   -   -   42,710   6,219  
     Payment for shares repurchase plan   (50,054)  -   -   -  
     (Payments for) proceeds from other financing activities   (34,746)  38,801   89,810   13,077  
     Contribution from noncontrolling interest in a subsidary   62,357   -   -   -  
     Net cash generated from (used in) financing activities   1,102,732   (84,335)  81,524   11,871  
     Effect of foreign exchange rate changes on cash, cash
      equivalents and restricted cash 
      (86,759)  80,660   63,732   9,280  
     Net increase in cash, cash equivalents and restricted cash   673,983   330,915   296,783   43,213  
     Cash, cash equivalents and restricted cash at beginning of period   2,676,069   2,108,237   2,439,152   355,147  
     Cash, cash equivalents and restricted cash at end of period   3,350,052   2,439,152   2,735,935   398,360  
          
          
          
     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 September 30, 2017 by excluding the movement of restricted cash of RMB53.1 million. 
          

شارك على،