21Vianet Group, Inc. Reports Unaudited Fourth Quarter and Full Year 2017 Financial Results
Adjusted EBITDA up 228.9% YoY to
Adjusted EBITDA margin expanded to 22.3% from 5.8% in prior year period
Fourth Quarter 2017 Financial Highlights
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Net revenues for hosting and related services increased by 8.9% year over year to
RMB765.8 million (US$117.7 million ). -
Gross profit increased by 9.2% year over year to
RMB200.2 million (US$30.8 million ). Gross margin expanded to 26.1% from 20.4% in the same period in 2016. -
Adjusted EBITDA increased by 228.9% year over year to
RMB171.0 million (US$26.3 million ). Adjusted EBITDA margin expanded to 22.3% from 5.8% in the same period of 2016.
Mr.
Ms.
Fourth Quarter 2017 Financial Results
REVENUES: Total net revenues were
Net revenues for hosting and related services, which represent 100% of the company's total net revenues in the fourth quarter of 2017, increased by 8.9% year over year to
GROSS PROFIT: Gross profit increased by 9.2% to
Adjusted gross profit, which excludes share-based compensation expenses and amortization of intangible assets derived from acquisitions, was
OPERATING EXPENSES: Total operating expenses were
Adjusted operating expenses, which exclude impairment of long-lived assets, impairment of goodwill, share-based compensation expenses and changes in the fair value of contingent purchase consideration payable, decreased by 44.1% to
Sales and marketing expenses decreased by 53.6% to
General and administrative expenses decreased by 38.2% to
Research and development expenses were
Changes in the fair value of contingent purchase consideration payable was a loss of
ADJUSTED EBITDA: Adjusted EBITDA for the fourth quarter of 2017 increased by 228.9% to
NET PROFIT/LOSS: Net profit was
Adjusted net profit for the fourth quarter of 2017 was
PROFIT PER SHARE: Diluted profit per share was
Adjusted diluted profit per share was
As of
As of
Net cash generated from operating activities was
Full Year 2017 Financial Performance
For the full year of 2017, net revenues for hosting and related services increased to
Fourth Quarter 2017 Operational Highlights
-
Monthly Recurring Revenues for the Company's hosting and related services business per cabinet was
RMB 7,766 in the fourth quarter of 2017, compared toRMB 7,878 in the fourth quarter of 2016 andRMB 7,817 in the third quarter of 2017. -
Total cabinets under management increased to 29,080 as of
December 31, 2017 from 27,424 as ofSeptember 30, 2017 , with 23,823 cabinets in the Company's self-built data centers and 5,257 cabinets in its partnered data centers. - Utilization rate was 75.7 % in the fourth quarter of 2017, compared to 73.8 % in the third quarter of 2017.
- Hosting churn rate, which is based on the Company's core IDC business, was 0.18% in the fourth quarter of 2017, compared to 0.97% in the third quarter of 2017.
Recent Developments
On
On
On
Financial Outlook
The following forecast reflects the Company's current and preliminary view on the market and its operational conditions, which is subject to change.
For the first quarter of 2018, the Company expects net revenues to be in the range of
For the full year of 2018, the Company now expects net revenues to be in the range of
Conference Call
The Company will hold a conference call at
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 |
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+852-3018-6776 |
Conference ID: | 1299086 |
The replay will be accessible through |
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United States Toll Free: | +1-855-452-5696 |
International: | +61-2-9003-4211 |
Conference ID: | 1299086 |
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
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
Exchange Rate
This announcement contains translations of certain RMB amounts into
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
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the
Investor Relations Contacts:
+86 10 8456 2121
IR@21Vianet.com
+1 (646) 405-4922
IR@21Vianet.com
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CONSOLIDATED BALANCE SHEETS | ||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | ||||||
As of | As of | |||||
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RMB | RMB | US$ | ||||
(Audited) | (Unaudited) | (Unaudited) | ||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | 1,297,418 | 1,949,631 | 299,653 | |||
Restricted cash | 1,963,561 | 242,494 | 37,271 | |||
Accounts and notes receivable, net | 655,459 | 455,811 | 70,057 | |||
Short-term investments | 277,946 | 548,890 | 84,363 | |||
Inventories | 4,431 | 710 | 109 | |||
Prepaid expenses and other current assets | 777,131 | 933,750 | 143,514 | |||
Amount due from related parties | 182,615 | 114,256 | 17,561 | |||
Total current assets | 5,158,561 | 4,245,542 | 652,528 | |||
Non-current assets: | ||||||
Property and equipment, net | 3,781,613 | 3,319,424 | 510,186 | |||
Intangible assets, net | 977,341 | 401,115 | 61,650 | |||
Land use rights, net | 167,646 | 163,671 | 25,156 | |||
Deferred tax assets | 100,676 | 172,818 | 26,562 | |||
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1,755,970 | 989,530 | 152,088 | |||
Long term investments | 298,871 | 510,926 | 78,528 | |||
Restricted cash | 33,544 | 3,344 | 514 | |||
Amount due from related parties | - | 20,210 | 3,106 | |||
Other non-current assets | 147,302 | 81,581 | 12,539 | |||
Total non-current assets | 7,262,963 | 5,662,619 | 870,329 | |||
Total assets | 12,421,524 | 9,908,161 | 1,522,857 | |||
Liabilities and Shareholders' Equity | ||||||
Current liabilities: | ||||||
Short-term bank borrowings | 1,683,676 | 50,000 | 7,685 | |||
Accounts and notes payable | 529,569 | 252,892 | 38,869 | |||
Accrued expenses and other payables | 787,916 | 657,133 | 100,999 | |||
Deferred revenue | 320,023 | 55,753 | 8,569 | |||
Advances from customers | 201,397 | 403,244 | 61,977 | |||
Income taxes payable | 21,899 | 13,309 | 2,046 | |||
Amounts due to related parties | 121,928 | 55,675 | 8,557 | |||
Current portion of long-term bank borrowings | 39,303 | 70,289 | 10,803 | |||
Current portion of capital lease obligations | 243,723 | 201,315 | 30,942 | |||
Current portion of deferred government grant | 5,107 | 4,574 | 703 | |||
Current portion of bonds payable | 419,316 | 11,139 | 1,712 | |||
Total current liabilities | 4,373,857 | 1,775,323 | 272,862 | |||
Non-current liabilities: | ||||||
Long-term bank borrowings | 268,221 | 187,638 | 28,839 | |||
Deferred revenue | 62,531 | - | - | |||
Unrecognized tax benefits | 28,689 | 16,511 | 2,538 | |||
Deferred tax liabilities | 274,700 | 190,873 | 29,337 | |||
Non-current portion of capital lease obligations | 536,623 | 600,882 | 92,354 | |||
Non-current portion of deferred government grant | 25,886 | 17,861 | 2,745 | |||
Bonds payable | - | 1,918,069 | 294,802 | |||
Total non-current liabilities | 1,196,650 | 2,931,834 | 450,615 | |||
Redeemable noncontrolling interests | 700,000 | - | - | |||
Shareholders' equity | ||||||
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(204,557 | ) | (337,683 | ) | (51,901 | ) |
Ordinary shares | 45 | 46 | 7 | |||
Additional paid-in capital | 9,015,846 | 8,980,407 | 1,380,263 | |||
Accumulated other comprehensive gain | 118,290 | (2,673 | ) | (411 | ) | |
Statutory reserves | 64,622 | 38,736 | 5,954 | |||
Accumulated deficit | (2,869,031 | ) | (3,629,300 | ) | (557,813 | ) |
Total |
6,125,215 | 5,049,533 | 776,099 | |||
Noncontrolling interest | 25,802 | 151,471 | 23,281 | |||
Total shareholders' equity | 6,151,017 | 5,201,004 | 799,380 | |||
Total liabilities, redeemable noncontrolling interests and shareholders' equity | 12,421,524 | 9,908,161 | 1,522,857 | |||
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CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Net revenues | |||||||||||||||
Hosting and related services | 703,171 | 759,255 | 765,814 | 117,703 | 2,668,655 | 2,975,178 | 457,276 | ||||||||
Managed network services | 197,476 | 126,780 | - | - | 973,119 | 417,527 | 64,173 | ||||||||
Total net revenues | 900,647 | 886,035 | 765,814 | 117,703 | 3,641,774 | 3,392,705 | 521,449 | ||||||||
Cost of revenues | (717,276 | ) | (696,234 | ) | (565,645 | ) | (86,938 | ) | (2,929,638 | ) | (2,634,295 | ) | (404,884 | ) | |
Gross profit | 183,371 | 189,801 | 200,169 | 30,765 | 712,136 | 758,410 | 116,565 | ||||||||
Operating expenses | |||||||||||||||
Sales and marketing | (92,018 | ) | (77,268 | ) | (42,702 | ) | (6,563 | ) | (352,926 | ) | (256,682 | ) | (39,451 | ) | |
Research and development | (38,425 | ) | (38,308 | ) | (29,340 | ) | (4,509 | ) | (149,337 | ) | (149,143 | ) | (22,923 | ) | |
General and administrative | (186,744 | ) | (129,683 | ) | (115,351 | ) | (17,729 | ) | (639,648 | ) | (519,950 | ) | (79,915 | ) | |
Bad debt provision | (47,450 | ) | (4,366 | ) | (1,147 | ) | (176 | ) | (117,564 | ) | (37,427 | ) | (5,752 | ) | |
Changes in the fair value of contingent purchase consideration payable | 67,197 | (1,002 | ) | (3,834 | ) | (589 | ) | 93,307 | (937 | ) | (144 | ) | |||
Impairment of long-lived assets | (392,947 | ) | (401,808 | ) | - | - | (392,947 | ) | (401,808 | ) | (61,757 | ) | |||
Impairment of goodwill | - | (766,440 | ) | - | - | - | (766,440 | ) | (117,800 | ) | |||||
Total operating expenses | (690,387 | ) | (1,418,875 | ) | (192,374 | ) | (29,566 | ) | (1,559,115 | ) | (2,132,387 | ) | (327,742 | ) | |
Other operating income | - | 5,439 | - | - | 6,783 | 5,439 | 836 | ||||||||
Operating (loss) profit | (507,016 | ) | (1,223,635 | ) | 7,795 | 1,199 | (840,196 | ) | (1,368,538 | ) | (210,341 | ) | |||
Interest income | 4,839 | 6,664 | 10,821 | 1,663 | 21,078 | 32,925 | 5,060 | ||||||||
Interest expense | (40,652 | ) | (57,417 | ) | (50,836 | ) | (7,813 | ) | (198,589 | ) | (185,313 | ) | (28,482 | ) | |
Impairment of long-term investment | - | (20,397 | ) | 139 | 21 | - | (20,258 | ) | (3,114 | ) | |||||
Disposal (loss) gain of subsidiaries | - | (180,048 | ) | 677,084 | 104,066 | - | 497,036 | 76,393 | |||||||
Other income | 555 | 7,220 | 3,260 | 501 | 28,922 | 16,764 | 2,577 | ||||||||
Other expense | (1,825 | ) | (12,630 | ) | (232 | ) | (36 | ) | (16,449 | ) | (17,060 | ) | (2,622 | ) | |
Foreign exchange gain (loss) | 28,849 | (5,628 | ) | 4,328 | 665 | 56,341 | (17,153 | ) | (2,636 | ) | |||||
Loss on debt extinguishment | - | - | - | - | (29,841 | ) | - | - | |||||||
(Loss) profit before income taxes and gain from equity method investments | (515,250 | ) | (1,485,871 | ) | 652,359 | 100,266 | (978,734 | ) | (1,061,597 | ) | (163,165 | ) | |||
Income tax benefit/(expense) | 17,818 | (19,794 | ) | 127,478 | 19,593 | 11,160 | 90,170 | 13,859 | |||||||
Gain from equity method investments | 12,225 | 26,546 | 17,732 | 2,725 | 35,652 | 53,783 | 8,266 | ||||||||
Net (loss) profit | (485,207 | ) | (1,479,119 | ) | 797,569 | 122,584 | (931,922 | ) | (917,644 | ) | (141,040 | ) | |||
Net loss attributable to noncontrolling interest | 225,353 | 104,354 | 1,073 | 165 | 298,324 | 144,914 | 22,273 | ||||||||
Net (loss) profit attributable to ordinary shareholders | (259,854 | ) | (1,374,765 | ) | 798,642 | 122,749 | (633,598 | ) | (772,730 | ) | (118,767 | ) | |||
(Loss) profit per share | |||||||||||||||
Basic | (0.69 | ) | (2.20 | ) | 1.19 | 0.18 | (1.37 | ) | (1.36 | ) | (0.21 | ) | |||
Diluted | (0.69 | ) | (2.20 | ) | 1.18 | 0.18 | (1.37 | ) | (1.36 | ) | (0.21 | ) | |||
Shares used in (loss) profit per share computation | |||||||||||||||
Basic* | 681,210,352 | 670,701,497 | 671,279,121 | 671,279,121 | 617,169,833 | 672,836,226 | 672,836,226 | ||||||||
Diluted* | 681,210,352 | 670,701,497 | 675,505,879 | 675,505,879 | 617,169,833 | 672,836,226 | 672,836,226 | ||||||||
(Loss) profit per ADS (6 ordinary shares equal to 1 ADS) | |||||||||||||||
Basic | (4.14 | ) | (13.20 | ) | 7.14 | 1.10 | (8.22 | ) | (8.16 | ) | (1.26 | ) | |||
Diluted | (4.14 | ) | (13.20 | ) | 7.08 | 1.09 | (8.22 | ) | (8.16 | ) | (1.26 | ) | |||
* Shares used in (loss) profit per share/ADS computation were computed under weighted average method. |
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RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | |||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | |||||||||||||||
Three months ended | Twelve months ended | ||||||||||||||
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
Gross profit | 183,371 | 189,801 | 200,169 | 30,765 | 712,136 | 758,410 | 116,565 | ||||||||
Plus: share-based compensation expense | 1,865 | (181 | ) | 84 | 13 | (4,110 | ) | (277 | ) | (43 | ) | ||||
Plus: amortization of intangible assets derived from acquisitions | 37,369 | 30,848 | 10,797 | 1,659 | 151,037 | 104,275 | 16,027 | ||||||||
Adjusted gross profit | 222,605 | 220,468 | 211,050 | 32,437 | 859,063 | 862,408 | 132,549 | ||||||||
Adjusted gross margin | 24.7% | 24.9% | 27.6% | 27.6% | 23.6% | 25.4% | 25.4% | ||||||||
Operating expenses | (690,387 | ) | (1,413,436 | ) | (192,374 | ) | (29,566 | ) | (1,552,332 | ) | (2,126,948 | ) | (326,906 | ) | |
Plus: share-based compensation expense | 54,808 | 15,981 | 15,317 | 2,354 | 122,839 | 47,406 | 7,286 | ||||||||
Plus: changes in the fair value of contingent purchase consideration payable | (67,197 | ) | 1,002 | 3,834 | 589 | (93,307 | ) | 937 | 144 | ||||||
Plus: impairment of long-lived assets | 392,947 | 401,808 | - | - | 392,947 | 401,808 | 61,757 | ||||||||
Plus: |
- | 766,440 | - | - | - | 766,440 | 117,800 | ||||||||
Adjusted operating expenses | (309,829 | ) | (228,205 | ) | (173,223 | ) | (26,623 | ) | (1,129,853 | ) | (910,357 | ) | (139,919 | ) | |
Net (loss) profit | (485,207 | ) | (1,479,119 | ) | 797,569 | 122,584 | (931,922 | ) | (917,644 | ) | (141,040 | ) | |||
Plus: share-based compensation expense | 56,673 | 15,800 | 15,401 | 2,367 | 118,729 | 47,129 | 7,244 | ||||||||
Plus: amortization of intangible assets derived from acquisitions | 37,369 | 30,848 | 10,797 | 1,659 | 151,037 | 104,275 | 16,027 | ||||||||
Plus: changes in the fair value of contingent purchase consideration payable and related deferred tax impact | (67,874 | ) | 1,002 | 3,834 | 589 | (93,489 | ) | 937 | 144 | ||||||
Plus: loss on debt extinguishment | - | - | - | - | 29,841 | - | - | ||||||||
Plus: impairment of long-lived assets | 392,947 | 401,808 | - | - | 392,947 | 401,808 | 61,757 | ||||||||
Plus: |
- | 766,440 | - | - | - | 766,440 | 117,800 | ||||||||
Plus: Disposal loss (gain) of subsidiaries | - | 180,048 | (677,084 | ) | (104,066 | ) | - | (497,036 | ) | (76,393 | ) | ||||
Plus: Impairment of long-term investment | - | 20,397 | (139 | ) | (21 | ) | - | 20,258 | 3,114 | ||||||
Plus: tax impact for the reconciliation adjustments | (4,489 | ) | (6,004 | ) | (4,546 | ) | (699 | ) | (26,257 | ) | (22,764 | ) | (3,499 | ) | |
Plus: tax impact for the disposal of long-term investment | - | - | (94,195 | ) | (14,478 | ) | - | (94,195 | ) | (14,478 | ) | ||||
Adjusted net (loss) profit | (70,581 | ) | (68,780 | ) | 51,637 | 7,935 | (359,114 | ) | (190,792 | ) | (29,324 | ) | |||
Adjusted net margin | -7.8% | -7.8% | 6.7% | 6.7% | -9.9% | -5.6% | -5.6% | ||||||||
Net (loss) profit | (485,207 | ) | (1,479,119 | ) | 797,569 | 122,584 | (931,922 | ) | (917,644 | ) | (141,040 | ) | |||
Minus: Provision for income taxes | 17,818 | (19,794 | ) | 127,478 | 19,593 | 11,160 | 90,170 | 13,859 | |||||||
Minus: Interest income | 4,839 | 6,664 | 10,821 | 1,663 | 21,078 | 32,925 | 5,060 | ||||||||
Minus: Interest expenses | (40,652 | ) | (57,417 | ) | (50,836 | ) | (7,813 | ) | (198,589 | ) | (185,313 | ) | (28,482 | ) | |
Minus: Loss on debt extinguishment | - | - | - | - | (29,841 | ) | - | - | |||||||
Minus: Exchange gain (loss) | 28,849 | (5,628 | ) | 4,328 | 665 | 56,341 | (17,153 | ) | (2,636 | ) | |||||
Minus: Gain from equity method investment | 12,225 | 26,546 | 17,732 | 2,725 | 35,652 | 53,783 | 8,266 | ||||||||
Minus: Other income | 555 | 7,220 | 3,260 | 501 | 28,922 | 16,764 | 2,577 | ||||||||
Minus: Other expenses | (1,825 | ) | (12,630 | ) | (232 | ) | (36 | ) | (16,449 | ) | (17,060 | ) | (2,622 | ) | |
Minus: Impairment of long-term investment | - | (20,397 | ) | 139 | 21 | - | (20,258 | ) | (3,114 | ) | |||||
Minus: Disposal (loss) gain of subsidiaries | - | (180,048 | ) | 677,084 | 104,066 | - | 497,036 | 76,393 | |||||||
Plus: depreciation | 130,486 | 132,240 | 120,228 | 18,479 | 480,105 | 519,654 | 79,869 | ||||||||
Plus: amortization | 46,092 | 41,352 | 23,738 | 3,648 | 185,658 | 147,448 | 22,662 | ||||||||
Plus: share-based compensation expense | 56,673 | 15,800 | 15,401 | 2,367 | 118,729 | 47,129 | 7,244 | ||||||||
Plus: changes in the fair value of contingent purchase consideration payable | (67,197 | ) | 1,002 | 3,834 | 589 | (93,307 | ) | 937 | 144 | ||||||
Plus: impairment of long-lived assets | 392,947 | 401,808 | - | - | 392,947 | 401,808 | 61,757 | ||||||||
Plus: |
- | 766,440 | - | - | - | 766,440 | 117,800 | ||||||||
Adjusted EBITDA | 51,985 | 135,007 | 170,996 | 26,282 | 243,936 | 514,878 | 79,135 | ||||||||
Adjusted EBITDA margin | 5.8% | 15.2% | 22.3% | 22.3% | 6.7% | 15.2% | 15.2% | ||||||||
Adjusted net (loss) profit | (70,581 | ) | (68,780 | ) | 51,637 | 7,935 | (359,114 | ) | (190,792 | ) | (29,324 | ) | |||
Less: Net loss attributable to noncontrolling interest | 225,353 | 104,354 | 1,073 | 165 | 298,324 | 144,914 | 22,273 | ||||||||
Adjusted net profit (loss) attributable to the Company's ordinary shareholders | 154,772 | 35,574 | 52,710 | 8,100 | (60,790 | ) | (45,878 | ) | (7,051 | ) | |||||
Adjusted (loss) profit per share | |||||||||||||||
Basic | (0.08 | ) | (0.10 | ) | 0.08 | 0.01 | (0.44 | ) | (0.28 | ) | (0.04 | ) | |||
Diluted | (0.08 | ) | (0.10 | ) | 0.08 | 0.01 | (0.44 | ) | (0.28 | ) | (0.04 | ) | |||
Shares used in adjusted (loss) profit per share computation: | |||||||||||||||
Basic* | 681,210,352 | 670,701,497 | 671,279,121 | 671,279,121 | 617,169,833 | 672,836,226 | 672,836,226 | ||||||||
Diluted* | 681,210,352 | 670,701,497 | 675,505,879 | 675,505,879 | 617,169,833 | 672,836,226 | 672,836,226 | ||||||||
Adjusted (loss) profit per ADS (6 ordinary shares equal to 1 ADS) | |||||||||||||||
Basic | (0.48 | ) | (0.60 | ) | 0.48 | 0.06 | (2.64 | ) | (1.68 | ) | (0.24 | ) | |||
Diluted | (0.48 | ) | (0.60 | ) | 0.48 | 0.06 | (2.64 | ) | (1.68 | ) | (0.24 | ) | |||
* Shares used in adjusted loss/ADS per share computation were computed under weighted average method. |
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RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (SEGMENT REPORTING) | ||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | ||||||||||||||
Three months ended | Year ended | |||||||||||||
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RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||
Hosting and related services | ||||||||||||||
Operating profit | (8,077 | ) | 47,927 | 7,795 | 1,199 | 44,101 | 156,632 | 24,073 | ||||||
Plus: depreciation and amortization | 96,935 | 111,510 | 143,966 | 22,127 | 345,190 | 465,976 | 71,619 | |||||||
Plus: share-based compensation expense | 41,807 | 15,326 | 15,401 | 2,367 | 86,955 | 47,244 | 7,261 | |||||||
Plus: changes in the fair value of contingent purchase consideration payable | (1,022 | ) | 1,002 | 3,834 | 589 | (19,394 | ) | 937 | 144 | |||||
Adjusted EBITDA | 129,643 | 175,765 | 170,996 | 26,281 | 456,852 | 670,789 | 103,097 | |||||||
Managed network services | ||||||||||||||
Operating profit | (498,939 | ) | (1,271,562 | ) | - | - | (884,297 | ) | (1,525,170 | ) | (234,414 | ) | ||
Plus: depreciation and amortization | 79,643 | 62,082 | - | - | 320,573 | 201,126 | 30,913 | |||||||
Plus: share-based compensation expense | 14,866 | 474 | - | - | 31,774 | (115 | ) | (18 | ) | |||||
Plus: changes in the fair value of contingent purchase consideration payable | (66,176 | ) | - | - | - | (73,913 | ) | - | - | |||||
Plus: impairment of long-lived assets | 392,947 | 401,808 | - | - | 392,947 | 401,808 | 61,757 | |||||||
Plus: |
- | 766,440 | - | - | - | 766,440 | 117,800 | |||||||
Adjusted EBITDA | (77,658 | ) | (40,758 | ) | - | - | (212,916 | ) | (155,911 | ) | (23,963 | ) | ||
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CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | ||||||
Three months ended | ||||||
|
December 31, 2017 | |||||
RMB | RMB | US$ | ||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net (loss) profit | (1,479,119 | ) | 797,569 | 122,584 | ||
Adjustments to reconcile net (loss) profit to net cash generated from operating activities: |
||||||
Foreign exchange loss (gain) | 5,628 | (4,328 | ) | (665 | ) | |
Changes in the fair value of contingent purchase consideration payable |
1,002 | 3,834 | 589 | |||
Gain on disposal of property and equipment | (2,837 | ) | (743 | ) | (114 | ) |
Loss from disposal of intangible assets | 295 | - | - | |||
Depreciation of property and equipment | 132,240 | 120,228 | 18,479 | |||
Amortization of intangible assets | 41,352 | 23,738 | 3,648 | |||
Provision for doubtful accounts and other receivables | 8,990 | (3,255 | ) | (500 | ) | |
Impairment of long-lived assets | 401,808 | - | - | |||
Impairment of goodwill | 766,440 | - | - | |||
Impairment of long-term investment | 20,398 | (139 | ) | (21 | ) | |
Loss (gain) from disposal of subsidiaries | 180,048 | (677,084 | ) | (104,066 | ) | |
Share-based compensation expense | 15,720 | 13,643 | 2,097 | |||
Deferred income taxes expense (benefits) | 5,887 | (126,095 | ) | (19,380 | ) | |
Gain from equity method investment | (26,546 | ) | (17,732 | ) | (2,725 | ) |
Dividend received from cost method invesemt | (396 | ) | - | - | ||
Changes in operating assets and liabilities | - | |||||
Restricted cash | 2,075 | (54,648 | ) | (8,399 | ) | |
Inventories | (658 | ) | (599 | ) | (92 | ) |
Accounts and notes receivable | 36,562 | 32,070 | 4,929 | |||
Unrecognized tax benefits (expense) | 951 | (7,963 | ) | (1,224 | ) | |
Prepaid expenses and other current assets | (119,384 | ) | (23,457 | ) | (3,605 | ) |
Amounts due from related parties | 13,280 | 1,854 | 285 | |||
Accounts and notes payable | 26,379 | (38,841 | ) | (5,970 | ) | |
Accrued expenses and other payables | 120,015 | 98,005 | 15,063 | |||
Deferred revenue | (11,598 | ) | 8,674 | 1,333 | ||
Advances from customers | 77,225 | (23,683 | ) | (3,641 | ) | |
Income taxes payable | 7,087 | (6,836 | ) | (1,051 | ) | |
Amounts due to related parties | (13,419 | ) | (2,690 | ) | (413 | ) |
Deferred government grants | (786 | ) | (5,179 | ) | (796 | ) |
Net cash generated from operating activities | 208,639 | 106,343 | 16,345 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
Purchases of property and equipment | (77,872 | ) | (80,336 | ) | (12,347 | ) |
Purchases of intangible assets | (43 | ) | (4,062 | ) | (624 | ) |
Proceeds from disposal of property and equipment | 5,719 | - | - | |||
Disposal of subsidiaries net of cash | (64,580 | ) | - | - | ||
Payments for short-term investments | (337,137 | ) | (211,752 | ) | (32,546 | ) |
Dividend received from cost method investment | 396 | - | - | |||
Payments for long-term investments | (61,898 | ) | (64,014 | ) | (9,839 | ) |
Restricted cash | - | (3,344 | ) | (514 | ) | |
Net cash used in investing activities | (535,415 | ) | (363,508 | ) | (55,870 | ) |
CASH FLOWS FROM FINANCING ACTIVITIES | - | |||||
Restricted cash | 37,920 | 1,677,270 | 257,792 | |||
Proceeds from exercise of stock options | 171 | 187 | 29 | |||
Proceeds from loan from a third party | - | 100,000 | 15,370 | |||
Proceeds from long-term bank borrowings | 11,740 | - | - | |||
Proceeds from issuance of 2020 bonds | 1,316,974 | 619,180 | 95,166 | |||
Payment of issurance cost of 2020 bonds | (3,278 | ) | (6,457 | ) | (992 | ) |
Repayments of short-term bank borrowings | (40,676 | ) | (1,520,000 | ) | (233,620 | ) |
Repayments of long-term bank borrowings | (11,843 | ) | (67,871 | ) | (10,432 | ) |
Repayment of loan from a third party | (100,000 | ) | - | - | ||
Prepayment for shares repurchase plan | (3,866 | ) | 60 | 9 | ||
Payments for shares repurchase plan | (50,054 | ) | - | - | ||
Rental prepayments and deposits for sales and leaseback transactions | (39,513 | ) | (59,486 | ) | (9,143 | ) |
Payments for capital leases | (39,280 | ) | (67,239 | ) | (10,334 | ) |
Contribution from noncontrolling interest in a subsidary | 62,357 | 49,314 | 7,579 | |||
Net cash provided by financing activities | 1,140,652 | 724,958 | 111,424 | |||
Effect of foreign exchange rate changes on cash and short term investments |
(86,759 | ) | (3,098 | ) | (476 | ) |
Net increase in cash and cash equivalents | 727,117 | 464,695 | 71,423 | |||
Cash and cash equivalents at beginning of period | 757,819 | 1,484,936 | 228,230 | |||
Cash and cash equivalents at end of period | 1,484,936 | 1,949,631 | 299,653 | |||
Source:
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