21Vianet Group, Inc. Reports Second Quarter 2012 Financial Results

2Q12 Net Revenues Up 58.2% YOY to RMB364.5 Million

2Q12 Adjusted EBITDA Up 49.3% YOY to RMB70.4 Million

2Q12 Adjusted Net Profit Up 10.7% YOY to RMB37.6 Million

Live Conference Call to be Held at 8:00 AM U.S. Eastern Time, August 17, 2012

BEIJING, Aug. 16, 2012 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq:VNET) ("21Vianet" or the "Company"), the largest carrier-neutral Internet data center services provider in China, today announced its unaudited financial results for the second quarter of 2012. The Company will hold a conference call at 8:00 a.m. Eastern Time on August 17, 2012. Dial-in details are provided at the end of the release.

Second Quarter 2012 Financial Highlights

  • Net revenues increased by 58.2% to RMB364.5 million (US$57.4 million) from RMB230.4 million in the comparative period in 2011.
  • Adjusted EBITDA[1] increased by 49.3% to RMB70.4 million (US$11.1 million) from RMB47.2 million in the comparative period in 2011.
  • Adjusted EBITDA margin[2] was 19.3%, compared to 20.5% in the comparative period in 2011.
  • Adjusted net profit[3] increased by 10.7% to RMB37.6 million (US$5.9 million) from RMB34.0 million in the comparative period in 2011.

Mr. Josh Chen, Founder, Chairman and Chief Executive Officer of the Company, stated, "We are very pleased to have achieved a new milestone at 21Vianet with the opening of our new self-built data centers. This expansion dramatically increased our overall self-built cabinet count by 2,280 new cabinets to over 6,400 cabinets, accounting for 62.1% of the 10,394 total cabinets under our management, as of June 30, 2012. More importantly, our increased self-built capacity provides us with additional operational control over our hosting facilities, resulting in improved quality and effectiveness for servicing our clients' data transmission needs.  Looking ahead, we remain committed to reaching 13,000 cabinets by the end of 2012 while enhancing our network and service offerings to further accommodate the strong demand from our diversified customer base." 

Mr. Shang Hsiao, President and Chief Financial Officer of the Company, commented, "We are very excited to begin this new phase of expansion of our self-built data centers. Even though the rollout of our new self-built cabinets did not come online until the end of June, we still met our revenue guidance and were pleased to realize an increase in monthly recurring revenue per cabinet and maintain high utilization rates.  These results highlight the resilient demand for reliable, secure and fast network capacity in China, and also the capacity constraints we still experience. As we continue to ramp up our overall capacity and explore new initiatives for the second half of 2012, we remain confident in the sustainability of our sector dynamics, revenue growth and margin expansion capabilities going forward."

[1] Adjusted EBITDA is a non-GAAP financial measure, which is defined as EBITDA excluding share-based compensation expenses and changes in the fair value of contingent purchase consideration payable. 

[2] Adjusted EBITDA margin is a non-GAAP financial measure, which is defined as adjusted EBITDA as a percentage of total net revenues. 

[3] Adjusted net profit/loss is a non-GAAP financial measure, which is defined as net profit/loss excluding share-based compensation expenses, amortization of intangible assets derived from acquisitions, changes in the fair value of contingent purchase consideration payable and related deferred tax impact.

Second Quarter 2012 Financial Results

REVENUES: Net revenues for the second quarter of 2012 increased by 58.2% to RMB364.5 million (US$57.4 million) from RMB230.4 million in the comparative period in 2011. 

Net revenues from hosting and related services increased by 40.8% to RMB205.1 million (US$32.3 million) in the second quarter of 2012 from RMB145.7 million in the comparative period in 2011, primarily due to an increase in the total number of cabinets under management in both the Company's self-built and partnered data centers, which was attributable to growing customer demand.

Net revenues from managed network services increased by 88.1% to RMB159.4 million (US$25.1 million) in the second quarter of 2012 from RMB84.7 million in the comparative period in 2011, primarily driven by an increase in network capacity demand for data transmission services. Excluding revenues contributed by Guangzhou Gehua Network Technology and Development Co., Ltd. ("Gehua"), a business the Company acquired during the fourth quarter of 2011, net revenues from managed network services increased by 59.0% to RMB134.8 million (US$21.2 million) from RMB84.7 million in the prior year comparative period.

GROSS PROFIT: For the second quarter of 2012, gross profit increased by 67.1% to RMB103.4 million (US$16.3 million) from RMB61.9 million in the comparative period in 2011. Gross margin for the second quarter of 2012 increased to 28.4% from 26.8% in the comparative period in 2011.

Adjusted gross profit, which excludes share-based compensation expenses and amortization of intangible assets derived from acquisitions, increased by 59.4% to RMB110.3 million (US$17.4 million) from RMB69.2 million in the comparative period in 2011.

Adjusted gross margin increased to 30.3% from 30.0% in the comparative period in 2011, primarily due to a balanced increase in new self-built and partnered data centers. The Company plans to continue to shift its revenue mix towards a higher percentage of self-built data centers, which carry slightly higher gross margins relative to partnered data centers.

OPERATING EXPENSES: Total operating expenses were RMB75.0 million (US$11.8 million), compared to RMB92.6 million in the comparative period in 2011.

Sales and marketing expenses increased to RMB24.3 million (US$3.8 million) from RMB18.5 million in the comparative period in 2011, primarily due to the expansion of the Company's sales and service support team. 

General and administrative expenses increased to RMB32.0 million (US$5.0 million) from RMB17.9 million in the comparative period in 2011, primarily due to an increase in headcount, office rentals and other expansion related expenses. 

Research and development expenses increased to RMB16.5 million (US$2.6 million) from RMB8.1 million in the comparative period in 2011, which reflected the Company's efforts to further strengthen its research and development capabilities and expand and improve its service offerings. 

Change in the fair value of contingent purchase consideration payable was RMB2.2 million (US$0.3 million) during the second quarter of 2012. This expense was primarily due to an increase in the fair value of cash and share-based contingent purchase considerations payable as of June 30, 2012 associated with the Company's acquisitions of the Managed Network Entities and Gehua.

Adjusted operating expenses, which exclude share-based compensation expenses and the changes in the fair value of contingent purchase consideration payable, increased to RMB62.1 million (US$9.8 million) from RMB36.0 million in the comparative period in 2011. As a percentage of net revenue, adjusted operating expenses were 17.1%, compared to 15.6% in the comparative period in 2011. 

ADJUSTED EBITDA: Adjusted EBITDA for the second quarter of 2012 increased by 49.3% to RMB70.4 million (US$11.1 million) from RMB47.2 million in the comparative period in 2011. Adjusted EBITDA margin for the quarter was 19.3%, compared to 20.5% in the comparative period in 2011. Adjusted EBITDA in the second quarter of 2012 excludes share-based compensation expenses of RMB11.4 million (US$1.8 million) and changes in the fair value of contingent purchase consideration payable of RMB2.2 million (US$0.3 million).

NET PROFIT/LOSS: Net profit for the second quarter of 2012 was RMB18.2 million (US$2.9 million) compared to a net loss of RMB22.8 million in the comparative period in 2011.

Adjusted net profit for the second quarter of 2012 increased by 10.7% to RMB37.6 million (US$5.9 million) from RMB34.0 million in the comparative period in 2011. Adjusted net profit in the second quarter of 2012 excludes share-based compensation expenses of RMB11.4 million (US$1.8 million), amortization of intangible assets derived from acquisitions of RMB6.2 million (US$1.0 million), and changes in the fair value of contingent purchase consideration payable and related deferred tax impact of RMB1.9 million (US$0.3 million) in the aggregate. Adjusted net margin was 10.3%, compared to 14.8% in the comparative period in 2011.

EARNING/LOSS PER SHARE: Diluted earnings per ordinary share for the second quarter of 2012 was RMB0.05, which represents the equivalent of RMB0.30(US$0.06) per American Depositary Share ("ADS"). Each ADS represents six ordinary shares. Adjusted diluted earnings per share for the second quarter of 2012 was RMB0.11, which represents the equivalent of RMB0.66(US$0.12) per ADS. Adjusted earnings per share is calculated using adjusted net profit as discussed above to divide the weighted average shares number.

As of June 30, 2012, the Company had a total of 349.1 million ordinary shares outstanding or the equivalents of 58.2 million ADSs outstanding.

BALANCE SHEET: As of June 30, 2012, the Company's cash and cash equivalents and short-term investment were RMB979.5 million (US$154.2 million), compared to RMB1.3 billion as of December 31, 2011. 

Second Quarter 2012 Operational Highlights

  • Monthly Recurring Revenues ("MRR") per cabinet increased to RMB10,053 in the second quarter of 2012 from RMB9,718 in the first quarter of 2012.
  • Total cabinets under management increased to 10,394 as of June 30, 2012, from 8,027 as of March 31, 2012, with 6,450 cabinets in the Company's self-built data centers and 3,944 cabinets in its partnered data centers.
  • Utilization rate remained stable at 81.2% in the second quarter 2012 compared to 82.4% in the first quarter of 2012.
  • Churn rate remained stable at 0.93% in the second quarter of 2012 compared to 0.95% in the first quarter of 2012. Top 20 customers' churn rate remained 0%.
  • The largest customer represented 3.7% of total net revenues.

Six Months Ended June 30, 2012 Financial Performance

For the six months ended June 30, 2012, net revenue increased by 61.1% to RMB710.3 million (US$111.8 million) from 441.0 million in the prior year comparative period. Adjusted EBITDA for the first six months ended June 30, 2012 increased by 55.1% to RMB139.9 million (US$22.0 million) from RMB90.2 million in the prior year comparative period. Adjusted EBITDA margin was 19.7%, compared to 20.4% in the prior year comparative period. Adjusted EBITDA for the first six months of 2012 excludes share-based compensation expense of RMB22.3 million (US$3.5 million) and changes in the fair value of contingent purchase consideration payable of RMB45.4 million (US$7.2 million). Adjusted net profit for the first six months of 2012 increased by 21.8% to RMB75.6 million (US$11.9 million) from RMB62.0 million in the prior year comparative period. Adjusted net profit in the first six months of 2012 excludes share-based compensation expense of RMB22.3 million (US$3.5 million), amortization of intangible assets derived from acquisitions of RMB12.3 million (US$1.9 million), and changes in the fair value of contingent purchase consideration payable and related deferred tax assets of RMB38.6 million (US$6.1 million).

Financial Outlook

For the third quarter of 2012, the Company expects net revenues to be in the range of RMB388 million to RMB400 million. Adjusted EBITDA is expected to be in the range of RMB74 million to RMB83 million. These forecasts reflect the Company's current and preliminary view, which is subject to change.

Conference Call

The Company will hold a conference call on Friday, August 17, 2012 at 8:00 a.m. Eastern Time to discuss the financial results. Listeners may access the call by dialing the following numbers:

United States:  +1-646-254-3515
International Toll Free:  +1-855-500-8701
China Domestic:  400-1200654
Hong Kong:  +852-3051-2745
Conference ID:  # 11567002

The replay will be accessible through August 23, 2012 by dialing the following numbers:

United States:  1-718-354-1232
International Toll Free:  1-866-214-5335
Conference ID:  # 11567002

A webcast of the conference call will be available through the Company's investor relations 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 gross profit, adjusted gross margin, adjusted operating expenses, adjusted net profit, adjusted net margin, adjusted EBITDA, adjusted EBITDA margin, adjusted basic earnings per share, adjusted diluted earnings per share, adjusted basic earnings per ADS and adjusted diluted earnings per ADS. 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 press release contains translations of certain Renminbi amounts into U.S. dollars at specified rates solely for the convenience of readers. Unless otherwise noted, all translations from Renminbi to U.S. dollars, in this press release, were made at a rate of RMB6.3530 to US$1.00, the noon buying rate in effect on June 29, 2012 in the City of New York for cable transfers in Renminbi per U.S. dollar as certified for customs purposes by the Federal Reserve Bank of New York.

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 the largest carrier-neutral Internet data center services provider in China. 21Vianet provides hosting and related services, managed network services and cloud computing infrastructure services, improving the reliability, security and speed of its customers' Internet connections through 21Vianet's 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. In addition, 21Vianet's proprietary smart routing technology, BroadEx, enables customers' data to be delivered across the Internet in a faster and more reliable manner. 21Vianet operates in 33 cities throughout China, servicing a diversified and loyal base of more than 1,600 customers that span many 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, the outlook for the third quarter of 2012 and 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. 21Vianet does not undertake any obligation to update any forward-looking statement, except as required under applicable law. 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.

21VIANET GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))
       
       
  As of As of 
  December 31, 2011 June 30, 2012
  RMB RMB US$
  (Audited) (Unaudited) (Unaudited)
Assets      
Current assets:      
Cash and cash equivalents  410,389  626,190  98,566
Restricted cash  4,578  --   --
Accounts receivable, net  147,624  244,934  38,554
Short term investments  894,540  353,333  55,617
Prepaid expenses and other current assets  47,575  112,281  17,674
Deferred tax assets  4,872  8,966  1,411
Amount due from related parties  41,643  50,408  7,935
Total current assets  1,551,221  1,396,112  219,757
Non-current assets:      
Property and equipment, net  453,883  652,983  102,783
Intangible assets, net  159,439  266,891  42,010
Deferred tax assets  12,773  18,970  2,986
Goodwill  217,436  217,436  34,226
Investment  8,200  8,200  1,291
Restricted cash  --   122,283  19,248
Total non-current assets  851,731  1,286,763  202,544
Total assets  2,402,952  2,682,875  422,301
Liabilities and Shareholders' (Deficit) Equity      
Current liabilities:      
Short term bank borrowings  100,000  135,100  21,266
Accounts payable  82,131  86,768  13,658
Notes payable  4,578  --   --
Accrued expenses and other payables  124,326  200,221  31,516
Advances from customers  23,238  23,860  3,756
Income tax payable  5,634  32,007  5,038
Amounts due to related parties  96,618  151,777  23,891
Current portion of capital lease obligations  26,012  25,140  3,957
Total current liabilities  462,537  654,873  103,082
Non-current liabilities:      
Long term bank borrowings  --   90,717  14,279
Amounts due to related parties  124,493  103,354  16,269
Non-current portion of capital lease obligations  73,896  66,992  10,545
Unrecognized tax benefits  26,801  11,636  1,832
Deferred tax liabilities  39,682  36,552  5,754
Deferred government grant  5,819  19,500  3,069
Total non-current liabilities  270,691  328,751  51,748
Commitments and contingencies      
Mezzanine equity  --   --   -- 
Shareholders' equity      
Treasury stock  (168,018)  (26,675)  (4,199)
Ordinary shares   23  23  4
Additional paid-in capital  3,277,658  3,159,013  497,247
Accumulated other comprehensive income loss  (54,779)  (50,258)  (7,911)
Statutory reserves  15,837  15,837  2,493
Accumulated deficit  (1,418,167)  (1,416,431)  (222,956)
Total 21Vianet Group, Inc. shareholders' equity  1,652,554  1,681,509  264,678
Non-controlling interest  17,170  17,742  2,793
Total shareholders' equity  1,669,724  1,699,251  267,471
Total liabilities, mezzanine equity and shareholders' equity  2,402,952  2,682,875  422,301
 
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 March 31, Six months ended June 30
  June 30, 2011 March 31, 2012 June 30, 2012 2011 2012
  RMB RMB RMB US$ RMB RMB US$
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net revenues              
Hosting and related services  145,663  189,501  205,078  32,280  274,551  394,579  62,109
Managed network services  84,748  156,318  159,384  25,088  166,456  315,702  49,693
Total net revenues  230,411  345,819  364,462  57,368  441,007  710,281  111,802
Cost of revenues  (168,557)  (247,647)  (261,088)  (41,097)  (324,078)  (508,735)  (80,078)
Gross profit  61,854  98,172  103,374  16,271  116,929  201,546  31,724
Operating expenses        --     --   -- 
Sales and marketing  (18,537)  (25,148)  (24,262)  (3,819)  (34,533)  (49,410)  (7,777)
General and administrative  (17,886)  (29,499)  (32,004)  (5,038)  (33,865)  (61,503)  (9,681)
Research and development  (8,086)  (11,370)  (16,477)  (2,594)  (15,241)  (27,847)  (4,383)
Changes in the fair value of contingent purchase consideration payable  (48,069)  (43,239)  (2,210)  (348)  (98,101)  (45,449)  (7,154)
Total operating expenses  (92,578)  (109,256)  (74,953)  (11,799)  (181,740)  (184,209)  (28,995)
Operating profit (loss)  (30,724)  (11,084)  28,421  4,472  (64,811)  17,337  2,729
Interest income  3,368  1,760  4,466  703  3,540  6,226  980
Interest expense  (1,469)  (2,316)  (1,483)  (233)  (2,452)  (3,799)  (598)
Other income  244  1  406  64  946  407  64
Other expense  (101)  (371)  (22)  (3)  (211)  (393)  (62)
Foreign exchange gain (loss)  1,118  (1,382)  (3,134)  (493)  1,818  (4,516)  (711)
Profit (loss) before income taxes  (27,564)  (13,392)  28,654  4,510  (61,170)  15,262  2,402
Income tax benefit (expense)   4,812  (2,511)  (10,443)  (1,644)  7,881  (12,954)  (2,039)
Net profit (loss)  (22,752)  (15,903)  18,211  2,866  (53,289)  2,308  363
Net income attributable to non-controlling interest  (6,800)  (358)  (214)  (34)  (12,768)  (572)  (90)
Net profit (loss) attributable to the Company's ordinary shareholders  (29,552)  (16,261)  17,997  2,832  (66,057)  1,736  273
               
               
               
Earnings (loss) per share              
Basic  (0.11)  (0.05)  0.05  0.01  (0.35)  0.01  -- 
Diluted  (0.11)  (0.05)  0.05  0.01  (0.35)  0.01  -- 
Shares used in earnings (loss) per share computation              
Basic*  278,713,982  342,115,718  327,359,013  327,359,013  187,533,196  326,921,241  326,921,241
Diluted*  278,713,982  353,241,225  338,748,917  338,748,917  187,533,196  338,323,400  338,323,400
               
Earnings (loss) per ADS (6 ordinary shares equal to 1 ADS)            
EPS - Basic (0.66) (0.30) 0.30 0.06 (2.10) 0.06 0.00
EPS - Diluted (0.66) (0.30) 0.30 0.06 (2.10) 0.06 0.00
               
               
* Shares used earnings (loss) 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$") except for number of shares and per share data)
               
  Three months ended Six months ended June 30
  June 30, 2011 March 31, 2012 June 30, 2012 2011 2012
  RMB RMB RMB US$ RMB RMB US$
Gross profit  61,854  98,172  103,374  16,271  116,929  201,546  31,724
Plus: share-based compensation expense  537  674  800  126  1,223  1,474  232
Plus: amortization of intangible assets derived from acquisitions  6,842  6,195  6,150  968  14,303  12,345  1,943
Adjusted gross profit  69,233  105,041  110,324  17,365  132,455  215,365  33,899
Adjusted gross margin 30.0% 30.4% 30.3% 30.3% 30.0% 30.3% 30.3%
Operating expenses  (92,578)  (109,256)  (74,953)  (11,799)  (181,740)  (184,209)  (28,995)
Plus: share-based compensation expense  8,516  10,220  10,597  1,668  16,402  20,817  3,277
Plus: changes in the fair value of contingent purchase consideration payable  48,069  43,239  2,210  348  98,101  45,449  7,154
Adjusted operating expenses  (35,993)  (55,797)  (62,146)  (9,783)  (67,237)  (117,943)  (18,564)
Net loss  (22,752)  (15,903)  18,211  2,866  (53,289)  2,308  363
Plus: share-based compensation expense  9,053  10,894  11,397  1,794  17,625  22,291  3,509
Plus: amortization of intangible assets derived from acquisitions  6,842  6,195  6,150  968  14,303  12,345  1,943
Plus: changes in the fair value of contingent purchase consideration payable and related deferred tax impact  40,859  36,753  1,879  296  83,386  38,632  6,081
Adjusted net profit  34,002  37,939  37,637  5,924  62,025  75,576  11,896
Adjusted net margin 14.8% 11.0% 10.3% 10.3% 14.1% 10.6% 10.6%
Operating profit (loss)  (30,724)  (11,084)  28,421  4,472  (64,811)  17,337  2,729
Plus: depreciation  13,520  19,790  19,704  3,102  24,079  39,494  6,217
Plus: amortization  7,241  6,634  8,682  1,367  15,174  15,316  2,411
Plus: share-based compensation expense  9,053  10,894  11,397  1,794  17,625  22,291  3,509
Plus: changes in the fair value of contingent purchase consideration payable  48,069  43,239  2,210  348  98,101  45,449  7,154
Adjusted EBITDA  47,159  69,473  70,414  11,083  90,168  139,887  22,020
Adjusted EBITDA margin 20.5% 20.1% 19.3% 19.3% 20.4% 19.7% 19.7%
               
               
               
Adjusted net profit  34,002  37,939  37,637  5,924  62,025  75,576  11,896
Less: Net income attributable to non-controlling interest  (6,800)  (358)  (214)  (34)  (12,768)  (572)  (90)
Adjusted net profit attributable to the Company's ordinary shareholders  27,202  37,581  37,423  5,890  49,257  75,004  11,806
               
Adjusted earnings per share              
Basic  0.10  0.11  0.11  0.02  0.26  0.23  0.04
Diluted  0.09  0.11  0.11  0.02  0.24  0.22  0.03
Shares used in adjusted earnings per share computation:              
Basic*  278,713,982  342,115,718  327,359,013  327,359,013  187,533,196  326,921,241  326,921,241
Diluted*  297,880,448  342,115,718  338,748,917  338,748,917  205,215,623  338,323,400  338,323,400
               
Earnings per ADS (6 ordinary shares equal to 1 ADS)              
EPS - Basic  0.60  0.66  0.66  0.12  1.56  1.38  0.24
EPS - Diluted  0.54  0.66  0.66  0.12  1.44  1.32  0.18
         
* Shares used in adjusted earnings per share/ADS computation were computed under weighted average method.         
CONTACT: Investor Relations Contact:

         ICR, Inc.Jeremy Peruski

         +1 (646) 405-4922

         IR@21Vianet.com
Source: 21Vianet

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