BEIJING, Aug. 19, 2019 (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 second quarter ended June 30, 2019. The Company will hold a conference call at 8:00 P.M. on Monday, August 19, 2019, U.S. Eastern Time to discuss the financial results. Dial-in details are provided at the end of this release.

Second Quarter 2019 Financial Highlights

  • Net revenues increased by 7.2% year over year to RMB888.0 million (US$129.4 million).

  • Gross profit was RMB228.2 million, remaining flat year over year. Gross margin was 25.7%, compared to 27.7% in the second quarter of 2018. Adjusted cash gross profit (non-GAAP) increased by 10.9% year over year to RMB403.8 million (US$58.8 million) from RMB364.0 million. Adjusted cash gross margin expanded to 45.5% from 43.9% in the same period of 2018.

  • Adjusted EBITDA (non-GAAP) increased by 17.9% year over year to RMB260.7 million (US$38.0 million). Adjusted EBITDA margin expanded to 29.4% from 26.7% in the same period of 2018.

  • Net cash generated from operating activities was RMB127.1 million (US$18.5 million) compared to RMB111.4 million in the same period of 2018.

Second Quarter 2019 Operational Highlights

  • Hosting MRR1 per cabinet was RMB8,663 in the second quarter of 2019 compared to RMB8,271 in the second quarter of 2018 and RMB8,788 in the first quarter of 2019.

  • Total cabinets under management was 31,111 as of June 30, 2019, compared to 29,149 as of June 30, 2018, and 30,578 as of March 31, 2019. As of June 30, 2019, the Company had 26,196 cabinets in its self-built data centers and 4,915 cabinets in its partnered data centers.

  • Utilization rate was 66.0% in the second quarter of 2019, compared to 66.2% in the first quarter of 2019.

Mr. Alvin Wang, Chief Executive Officer and President of the Company, stated, “During the second quarter, we capitalized on the growing demand for flexible IDC solutions, bolstered our resource planning initiatives, and expanded our cabinet capacity. Through constant client communication and market analysis, we upsold additional cabinet capacity and value-added services to our existing client base. Additionally, we signed a number of sizable, long-term contracts with prominent clients in the internet and finance industry, demonstrating the effectiveness of our value proposition and enduring market leadership in such high-growth industries. We believe our proven ability to partner with high-level clientele will continue to serve as a vital growth driver throughout the remainder of 2019 and beyond. On the wholesale side, we are glad to have entered into an MoU with a major public cloud provider. This project is an important milestone and testament to our ability to win wholesale customers. We are optimistic that more customers will recognize our strength and expertise in future quarters. Finally, the adjustment to our partnership with Warburg Pincus is making good progress. Both parties are pleased with the adjustment and believe it gives each other greater flexibility to seize market opportunities.”

Ms. Sharon Liu, Chief Financial Officer of the Company, commented, “Due to the increase in client orders for the second quarter of 2019, revenues increased by 7.2% year over year and adjusted EBITDA grew by 17.9% year over year. In addition, adjusted EBITDA margin increased by 2.7 percentage points to 29.4%, compared to 26.7% in the second quarter of 2018. Importantly, our active client engagement throughout the quarter allowed us to enhance our cash position while maintaining a balanced financial leverage.”

Second Quarter 2019 Financial Results

REVENUES: Net revenues increased by 7.2% to RMB888.0 million (US$129.4 million) in the second quarter of 2019 from RMB828.3 million in the same period of 2018 and increased by 1.9% from RMB871.9 million in the first quarter of 2019. The year-over-year increase was primarily attributable to the growing demand for data centers in the domestic market.

GROSS PROFIT: Gross profit was RMB228.2 million (US$33.2 million) in the second quarter of 2019, compared to RMB229.4 million in the same period of 2018 and decreased by 5.2% from RMB240.8 million in the first quarter of 2019. Gross margin was 25.7% in the second quarter of 2019 compared to 27.7% in the same period of 2018 and 27.6% in the first quarter of 2019. The year-over-year decrease was mainly due to increased depreciation cost and the sequential decrease was mainly due to higher utility cost in summer months.

ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, increased by 10.9% to RMB403.8 million (US$58.8 million) in the second quarter of 2019 from RMB364.0 million in the same period of 2018 and decreased by 0.7% from RMB406.7 million in the first quarter of 2019. Adjusted cash gross margin expanded to 45.5% in the second quarter of 2019 from 43.9% in the same period of 2018 and decreased from 46.6% in the first quarter of 2019. The year-over-year improvement in adjusted cash gross margin was mainly attributable to decreased number of partnered cabinets.
                                                                                                                                                                                            
OPERATING EXPENSES: Total operating expenses decreased by 5.5% to RMB168.2 million (US$24.5 million) in the second quarter of 2019 from RMB177.9 million in the same period of 2018 and decreased by 10.3% from RMB187.5 million in the first quarter of 2019. As a percentage of net revenues, total operating expenses reduced to 18.9% in the second quarter of 2019 from 21.5% in the same period of 2018 and 21.5% in the first quarter of 2019. The reduction of operating expenses as a percentage of net revenues was primarily due to the Company’s continuous efforts in maximizing its operating efficiency.

Sales and marketing expenses were RMB46.6 million (US$6.8 million) in the second quarter of 2019, an increase of 11.5% from RMB41.8 million in the same period of 2018 and an increase of 5.7% from RMB44.1 million in the first quarter of 2019. The increase of sales and marketing expenses was mainly attributable to increased marketing activities and higher sales commissions.

Research and development expenses were RMB18.8 million (US$2.7 million) in the second quarter of 2019 compared to RMB22.2 million in the same period of 2018 and RMB22.6 million in the first quarter of 2019. 

General and administrative expenses were RMB102.3 million (US$14.9 million) in the second quarter of 2019 compared to RMB109.1 million in the same period of 2018 and RMB120.8 million in the first quarter of 2019. The decrease was mainly attributable to the Company’s continuous efforts in maximizing its operating efficiency.

ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses and changes in the fair value of contingent purchase consideration payables, decreased by 0.4% to RMB161.3 million (US$23.5 million) in the second quarter of 2019 from RMB161.9 million in the same period of 2018 and decreased by 5.9% from RMB171.3 million in the first quarter of 2019. As a percentage of net revenues, adjusted operating expenses decreased to 18.2% in the second quarter of 2019 from 19.5% in the same period of 2018 and 19.6% in the first quarter of 2019.

ADJUSTED EBITDA: Adjusted EBITDA in the second quarter of 2019 increased by 17.9% to RMB260.7 million (US$38.0 million) from RMB221.1 million in the same period of 2018 and increased by 2.9% from RMB253.5 million in the first quarter of 2019. Adjusted EBITDA in the second quarter of 2019 excluded share-based compensation expenses of RMB7.4 million (US$1.1 million). Adjusted EBITDA margin expanded to 29.4% in the second quarter of 2019 from 26.7% in the same period of 2018 and 29.1% in the first quarter of 2019.

NET PROFIT/LOSS: Net loss attributable to ordinary shareholders in the second quarter of 2019 was RMB102.1 million (US$14.9 million) compared to RMB94.2 million in the same period of 2018 and a net profit of RMB5.6 million in the first quarter of 2019. Net loss attributable to ordinary shareholders in the second quarter of 2019 included a foreign exchange loss of RMB39.9 million (US$5.8 million) compared to RMB73.4 million in the same period of 2018 and a gain of RMB29.5 million in the first quarter of 2019, and an interest expense of RMB91.2 million (US$13.3 million) compared to RMB51.3 million in the same period of 2018 and RMB69.4 million in the first quarter of 2019.

PROFIT/LOSS PER SHARE: Basic and diluted loss per share were RMB0.15 (US$ 2 cent) in the second quarter of 2019, which represents the equivalent of RMB0.90 (US$12 cent) per American Depositary Share ("ADS"). Each ADS represents six ordinary shares. Diluted loss per share is calculated using net loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

As of June 30, 2019, the Company's cash and cash equivalents, restricted cash, and short-term investments were RMB3.25 billion (US$473.1 million).

Net cash generated from operating activities was RMB127.1 million (US$18.5 million) in the second quarter of 2019 compared to RMB111.4 million in the same period of 2018 and RMB32.4 million in the first quarter of 2019.

Recent Development

Signing a Non-binding MoU

In August 2019, the Company signed a non-binding memorandum of understanding (the “MoU”) with a major public cloud service provider in China to provide a number of cabinets, all of which are expected to be delivered by April 2020.

JV Restructuring

The Company has recently reached an agreement with Warburg Pincus to restructure the existing partnership. Pursuant to the agreed arrangement, one of the joint ventures will distribute its assets and projects to the Company and to Princeton Digital Group (PDG), a Warburg Pincus-backed company, on a pro rata basis. 

After distribution, the Company will gain 100% ownership of a project under development in the Shanghai Waigaoqiao Free Trade Zone as well as cash. The project will further increase the Company’s cabinet capacity in phases by over 6,000 cabinets. The first phase with over 2,000 cabinets is expected to be delivered in early 2020.

Financial Outlook

For the third quarter of 2019, the Company expects net revenues to be in the range of RMB950 million to RMB980 million. Adjusted EBITDA is expected to be in the range of RMB250 million to RMB270 million.

For the full year of 2019, the Company expects net revenues to be in the range of RMB3,760 million to RMB3,860 million. Adjusted EBITDA is expected to be in the range of RMB1,000 million to RMB1,100 million. The midpoints of the Company’s updated estimates imply an increase of 12% year over year in total revenues and an increase of 14% 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 P.M. on Monday, August 19, 2019, U.S. Eastern Time, or 8:00 A.M. on Tuesday, August 20, 2019, Beijing Time, to discuss the financial results.

Participants may access the call by dialing the following numbers:

United States Toll Free: +1-866-519-4004
International: +65-6713-5090
China Domestic: 400-620-8038
Hong Kong:+852-3018-6771
Conference ID:  4625439

The replay will be accessible through August 27, 2019, by dialing the following numbers:

United States Toll Free:+1-855-452-5696
International: +61-2-8199-0299
Conference ID: 4625439

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 a 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 RMB6.8650 to US$1.00, the noon buying rate in effect on June 28, 2019, 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. 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

___________________________

1Hosting 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$”))  
  As of   As of  
December 31, 2018 June 30, 2019 
  RMB   RMB   US$  
  (Audited)   (Unaudited)   (Unaudited)  
 Assets        
 Current assets:       
 Cash and cash equivalents   2,358,556    2,864,359    417,241  
 Restricted cash   265,214    152,025    22,145  
 Accounts and notes receivable, net   524,305    672,573    97,971  
 Short-term investments   245,014    162,770    23,710  
 Prepaid expenses and other current assets   1,159,574    1,437,382    209,379  
 Amounts due from related parties   125,446    128,579    18,730  
 Total current assets   4,678,109    5,417,688    789,176  
       
 Non-current assets:       
 Property and equipment, net   4,031,242    4,073,865    593,425  
 Intangible assets, net   355,313    429,813    62,609  
 Land use rights, net   147,493    145,704    21,224  
 Operating lease right-of-use assets, net   -     803,016    116,972  
 Goodwill   989,530    989,530    144,141  
 Long-term investments   544,323    506,297    73,750  
 Amounts due from related parties   34,424    99,250    14,457  
 Restricted cash   37,251    69,016    10,053  
 Deferred tax assets   159,441    168,325    24,519  
 Other non-current assets   173,591    227,994    33,211  
 Total non-current assets   6,472,608    7,512,810    1,094,361  
 Total assets   11,150,717    12,930,498    1,883,537  
       
 Liabilities and Shareholders' Equity       
 Current liabilities:       
 Short-term bank borrowings   50,000    30,000    4,370  
 Accounts and notes payable   389,508    392,572    57,185  
 Accrued expenses and other payables   659,320    586,899    85,487  
 Deferred revenue   57,754    44,878    6,537  
 Advances from customers   670,037    892,292    129,977  
 Income taxes payable   13,111    29,020    4,227  
 Amounts due to related parties   52,328    42,725    6,224  
 Current portion of long-term bank borrowings   75,284    73,331    10,682  
 Current portion of capital lease obligations   219,695    179,253    26,111  
 Current portion of deferred government grant   4,173    3,501    510  
 Operating lease liabilities - current   -     102,908    14,990  
 Total current liabilities   2,191,210    2,377,379    346,300  
       
 Non-current liabilities:       
 Long-term borrowings   112,000    96,000    13,984  
 Amounts due to related parties   504,478    533,869    77,767  
 Unrecognized tax benefits   6,677    3,952    576  
 Deferred tax liabilities   157,720    175,289    25,534  
 Non-current portion of capital lease obligations   765,993    691,110    100,672  
 Non-current portion of deferred government grant   11,619    8,751    1,275  
 Bonds payable   2,037,836    3,041,382    443,027  
 Operating lease liabilities - non current   -     697,233    101,563  
 Total non-current liabilities   3,596,323    5,247,586    764,398  
       
 Shareholders' equity       
 Treasury stock   (337,683)   (337,683)   (49,189) 
 Ordinary shares   46    46    7  
 Additional paid-in capital   9,141,494    9,168,796    1,335,586  
 Accumulated other comprehensive gain   85,979    89,630    13,057  
 Statutory reserves   42,403    43,825    6,384  
 Accumulated deficit   (3,838,032)   (3,935,874)   (573,325) 
 Total 21Vianet Group, Inc. shareholders’ equity   5,094,207    5,028,740    732,520  
 Noncontrolling interest   268,977    276,793    40,319  
 Total shareholders' equity   5,363,184    5,305,533    772,839  
 Total liabilities and shareholders' equity   11,150,717    12,930,498    1,883,537  
       

  

 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, 2018 March 31, 2019 June 30, 2019 June 30, 2018 June 30, 2019 
  RMB   RMB   RMB   US$   RMB   RMB   US$  
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
 Net revenues   828,317    871,859    888,020    129,355    1,629,082    1,759,879    256,355  
 Cost of revenues   (598,884)   (631,084)   (659,772)   (96,107)   (1,171,747)   (1,290,856)   (188,034) 
 Gross profit   229,433    240,775    228,248    33,248    457,335    469,023    68,321  
               
 Operating expenses               
 Other operating income   -     -     302    44    -     302    44  
 Sales and marketing   (41,816)   (44,096)   (46,626)   (6,792)   (83,048)   (90,722)   (13,215) 
 Research and development   (22,163)   (22,564)   (18,790)   (2,737)   (44,193)   (41,354)   (6,024) 
 General and administrative   (109,091)   (120,796)   (102,341)   (14,908)   (221,431)   (223,137)   (32,504) 
 Reversal (allowance) for doubtful debt   627    (22)   (457)   (67)   2,482    (479)   (70) 
 Changes in the fair value of contingent purchase consideration payables   (5,494)   -    -    -    (3,210)   -    -  
 Total operating expenses   (177,937)   (187,478)   (168,214)   (24,504)   (349,400)   (355,692)   (51,813) 
               
 Operating profit   51,496    53,297    60,034    8,744    107,935    113,331    16,508  
 Interest income   8,961    11,851    12,389    1,805    17,488    24,240    3,531  
 Interest expense   (51,328)   (69,442)   (91,202)   (13,285)   (102,870)   (160,644)   (23,400) 
 Gain on deconsolidation of subsidiaries   4,843    -    -    -    4,843    -    -  
 Other income   20,386    3,075    8,958    1,305    42,547    12,033    1,753  
 Other expense   (565)   (58)   (4,177)   (608)   (2,091)   (4,235)   (617) 
 Foreign exchange (loss) gain   (73,360)   29,538    (39,853)   (5,805)   (28,519)   (10,315)   (1,503) 
 Loss on debt extinguishment   -    -    (17,804)   (2,593)   -    (17,804)   (2,593) 
 (Loss) gain before income taxes and loss from equity method investments   (39,567)   28,261    (71,655)   (10,437)   39,333    (43,394)   (6,321) 
 Income tax expenses   (44,305)   (10,741)   (9,343)   (1,361)   (78,385)   (20,084)   (2,925) 
 Loss from equity method investments   (11,659)   (10,938)   (18,277)   (2,662)   (21,748)   (29,215)   (4,256) 
 Net (loss) gain   (95,531)   6,582    (99,275)   (14,460)   (60,800)   (92,693)   (13,502) 
 Net loss (profit) attributable to noncontrolling interest   1,321    (942)   (2,785)   (406)   (570)   (3,727)   (543) 
 Net (loss) gain attributable to ordinary shareholders   (94,210)   5,640    (102,060)   (14,866)   (61,370)   (96,420)   (14,045) 
               
 (Loss) profit per share               
 Basic   (0.14)   0.01    (0.15)   (0.02)   (0.09)   (0.14)   (0.02) 
 Diluted   (0.14)   0.01    (0.15)   (0.02)   (0.09)   (0.14)   (0.02) 
               
 Shares used in (loss) profit per share computation               
 Basic*   675,062,068    677,573,837    677,802,980    677,802,980    673,908,526    677,689,041    677,689,041  
 Diluted*   675,062,068    690,608,562    677,802,980    677,802,980    673,908,526    677,689,041    677,689,041  
               
(Loss) profit per ADS (6 ordinary shares equal to 1 ADS)              
Basic(0.84) 0.06  (0.90)   (0.12) (0.54) (0.84)   (0.12) 
Diluted(0.84) 0.06  (0.90)   (0.12) (0.54) (0.84)   (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   Six months ended  
 June 30, 2018 March 31, 2019 June 30, 2019 June 30, 2018 June 30, 2019 
  RMB   RMB   RMB   US$   RMB   RMB   US$  
 Gross profit   229,433    240,775    228,248    33,248    457,335    469,023    68,321  
 Plus: depreciation and amortization   134,282    165,421    175,102    25,506    253,844    340,523    49,603  
 Plus: share-based compensation expenses   293    474    459    67    307    933    136  
 Adjusted cash gross profit   364,008    406,670    403,809    58,821    711,486    810,479    118,060  
 Adjusted cash gross margin 43.9% 46.6% 45.5% 45.5% 43.7% 46.1% 46.1% 
               
 Operating expenses   (177,937)   (187,478)   (168,214)   (24,503)   (349,400)   (355,692)   (51,812) 
 Plus: share-based compensation expenses   10,547    16,165    6,932    1,010    17,102    23,097    3,364  
 Plus: changes in the fair value of contingent purchase consideration payables   5,494    -    -    -    3,210    -    -  
 Adjusted operating expenses   (161,896)   (171,313)   (161,282)   (23,493)   (329,088)   (332,595)   (48,448) 
               
 Operating profit   51,496    53,297    60,034    8,745    107,935    113,331    16,509  
 Plus: depreciation and amortization   153,313    183,532    193,302    28,158    288,603    376,834    54,892  
 Plus: share-based compensation expenses   10,840    16,639    7,391    1,077    17,409    24,030    3,500  
 Plus: changes in the fair value of contingent purchase consideration payables   5,494    -     -     -     3,210    -     -   
 Adjusted EBITDA   221,143    253,468    260,727    37,980    417,157    514,195    74,901  
 Adjusted EBITDA margin 26.7% 29.1% 29.4% 29.4% 25.6% 29.2% 29.2% 

 

 21VIANET GROUP, INC.  
 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS  
 (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))  
         
  Three months ended  
 June 30, 2018 March 31, 2019 June 30, 2019
 
  RMB   RMB   RMB   US$  
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
 CASH FLOWS FROM OPERATING ACTIVITIES         
 Net (loss) profit   (95,531)   6,582    (99,275)   (14,460) 
 Adjustments to reconcile net (loss) profit to net cash generated from operating activities:         
  Depreciation and amortization   153,313    183,532    193,302    28,158  
  Stock-based compensation expenses   10,840    16,639    7,391    1,077  
  Others   93,201    (31,628)   69,061    10,060  
 Changes in operating assets and liabilities         
  Accounts and notes receivable   (29,540)   (29,603)   (119,144)   (17,355) 
  Prepaid expenses and other current assets   (14,088)   (197,574)   (50,381)   (7,339) 
  Accounts and notes payable   (4,819)   (11,580)   14,644    2,133  
  Accrued expenses and other payables   25,971    (9,582)   9,996    1,456  
  Deferred revenue   6,217    (13,812)   936    136  
  Advances from customers   (1,698)   97,028    125,227    18,241  
  Others   (32,468)   22,435    (24,647)   (3,590) 
 Net cash generated from operating activities   111,398    32,437    127,110    18,517  
         
 CASH FLOWS FROM INVESTING ACTIVITIES         
 Purchases of property and equipment   (91,256)   (133,470)   (208,520)   (30,374) 
 Purchases of intangible assets   (3,756)   (4,328)   (6,990)   (1,018) 
 Payments for investments   (39,098)   (62,022)   (127,148)   (18,521) 
 Proceeds from other investing activities   357,302    84,367    11,575    1,686  
 Net cash generated from (used in) investing activities   223,192    (115,453)   (331,083)   (48,227) 
         
 CASH FLOWS FROM FINANCING ACTIVITIES         
 Proceeds from short-term bank borrowings   -    30,000    -    -  
 Repayment of long-term bank borrowings   (27,953)   -    (27,779)   (4,046) 
 Repayment of short-term bank borrowings   -    (50,000)   -    -  
 Payments for capital lease   (95,183)   (92,537)   (66,316)   (9,660) 
 Repurchase of 2020 Notes   -    -    (1,021,539)   (148,804) 
 Proceeds from issuance of 2021 Notes   -    -    2,012,084    293,093  
 Payment of Issuance cost of 2021 Notes   -    -    (35,427)   (5,161) 
 Payments for other financing activities   38,801    (55,474)   (3,542)   (516) 
 Net cash (used in) generated from financing activities   (84,335)   (168,011)   857,481    124,906  
         
 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash   80,660    (34,488)   56,386    8,214  
 Net increase (decrease) in cash, cash equivalents and restricted cash   330,915    (285,515)   709,894    103,410  
 Cash, cash equivalents and restricted cash at beginning of period   2,108,237    2,661,021    2,375,506    346,031  
 Cash, cash equivalents and restricted cash at end of period   2,439,152    2,375,506    3,085,400    449,441