UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER 

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER 

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of August 2021

 

Commission File Number: 001-35126

 

 

21Vianet Group, Inc.

 

 

Guanjie Building, Southeast 1st Floor
10# Jiuxianqiao East Road
 

Chaoyang District 

Beijing 100016 

The People’s Republic of China 

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  x            Form 40-F  ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ¨

 

 

  

 

 

  

EXPLANATORY NOTE

 

Exhibit 99.1 to this Current Report on Form 6-K is hereby incorporated by reference into the Registration Statement on Form F-3 of 21Vianet Group, Inc. (File No. 333-240044) and shall form a part thereof from the date on which this Current Report is furnished, to the extent not superseded by documents or reports subsequently filed or furnished.

 

 

 

  

EXHIBIT INDEX

 

Exhibit No.   Description
99.1   Press Release

 

 

 

  

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  21Vianet Group, Inc.
     
  By /s/ Tim Chen
  Name: Tim Chen
  Title: Chief Financial Officer

 

Date: August 24, 2021

  

 

 

Exhibit 99.1

 

21Vianet Group, Inc. Reports Unaudited Second Quarter 2021 Financial Results

 

BEIJING, August 24, 2021 -- 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, 2021. The Company will hold a conference call at 8:00 P.M. on Tuesday, August 24, 2021, U.S. Eastern Time to discuss the financial results. Dial-in details are provided at the end of this release.

 

Second Quarter 2021 Financial Highlights

 

·Net revenues in the second quarter of 2021 increased by 30.8% to RMB1.50 billion (US$231.9 million) from RMB1.14 billion in the same period of 2020.

 

·Adjusted cash gross profit (non-GAAP) in the second quarter of 2021 increased by 36.9% to RMB640.2 million (US$99.2 million) from RMB467.6 million in the same period of 2020. Adjusted cash gross margin (non-GAAP) in the second quarter of 2021 was 42.8%, compared to 40.9% in the same period of 2020.

 

·Adjusted EBITDA (non-GAAP) in the second quarter of 2021 increased by 38.7% to RMB425.1 million (US$65.8 million) from RMB306.4 million in the same period of 2020. Adjusted EBITDA margin (non-GAAP) in the second quarter of 2021 was 28.4%, compared to 26.8% in the same period of 2020.

 

Second Quarter 2021 Operational Highlights

 

·Total cabinets under management net increased by 6,950 to 62,876, as of June 30, 2021, compared to 55,926 as of March 31, 2021, and 44,050 as of June 30, 2020.

 

·Retail IDC MRR1 per cabinet was RMB9,015, compared to RMB8,953 in the same period of 2020 and RMB9,144 in the first quarter of 2021.

 

·Compound utilization rate was 59.9%, compared to 61.7% in the first quarter of 2021.

 

oUtilization rate for mature IDCs, which consisted of IDC deliveries prior to and during 2019, was 76.3%, compared to a utilization rate for mature IDCs of 73.9% in the first quarter of 2021.

 

oUtilization rate for ramp-up and newly-built IDCs, which consisted of IDC deliveries in 2020 and 2021, was 29.2%, compared to a utilization rate for ramp-up and newly-built IDCs of 30.6% in the first quarter of 2021.

 

Mr. Samuel Shen, Chief Executive Officer and Executive Chairman of Retail IDC, stated, “We are delighted to report another strong quarter. Our dual-core growth engine, diversified customer base, and strong IDC market demand continued to fuel organic growth in our cabinet deliveries for the first half of 2021. Based on our leading market position and dual-core growth engine of retail and wholesale IDC solutions, we are confident that we will acquire more customers from various sectors, further diversify our revenue streams, sustain our growth, and generate lasting shareholder value going forward.”

 

Mr. Tim Chen, Chief Financial Officer of the Company, commented, “In the second quarter, our net revenues and adjusted EBITDA rose by 30.8% and 38.7% year over year respectively, both exceeding the high end of our previously announced guidance range. Leveraging our strong balance sheet and dual-core growth strategy, we are well-positioned to further capitalize on robust IDC market demand and endorsements from a number of diversified customers to strengthen our leading position in the IDC market and accelerate growth in the quarters ahead.”

 

 

1  Retail IDC MRR: Refers to Monthly Recurring Revenues for the retail IDC business.

 

1

 

 

Second Quarter 2021 Financial Results

 

NET REVENUES: Net revenues in the second quarter of 2021 increased by 30.8% to RMB1.50 billion (US$231.9 million) from RMB1.14 billion in the second quarter of 2020, representing an increase of 7.9% from RMB1.39 billion in the first quarter of 2021. This increase was mainly due to the increased revenue from both wholesale and retail IDC customers, as well as the growth of revenue from cloud business.

 

GROSS PROFIT: Gross profit in the second quarter of 2021 was RMB359.5 million (US$55.7 million), representing an increase of 32.0% from RMB272.3 million in the same period of 2020 and an increase of 11.2% from RMB323.3 million in the first quarter of 2021. Gross margin in the second quarter of 2021 was 24.0%, compared to 23.8% in the same period of 2020 and 23.3% in the first quarter of 2021. The increase in gross margin was primarily attributable to the Company’s continued efforts in improving operational efficiency.

 

ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was RMB640.2 million (US$99.2 million) in the second quarter of 2021, compared to RMB467.6 million in the same period of 2020 and RMB605.3 million in the first quarter of 2021. Adjusted cash gross margin in the second quarter of 2021 was 42.8%, compared to 40.9% in the same period of 2020 and 43.6% in the first quarter of 2021.
      
OPERATING EXPENSES: Total operating expenses in the second quarter of 2021 were RMB262.5 million (US$40.7 million), compared to RMB193.5 million in the same period of 2020 and RMB243.2 million in the first quarter of 2021. As a percentage of net revenues, total operating expenses in the second quarter of 2021 were 17.5%, compared to 16.9% in the same period of 2020 and 17.5% in the first quarter of 2021.

 

Sales and marketing expenses in the second quarter of 2021 were RMB59.6 million (US$9.2 million), compared to RMB51.7 million in the same period of 2020 and RMB74.0 million in the first quarter of 2021.

 

Research and development expenses in the second quarter of 2021 were RMB38.3 million (US$5.9 million), compared to RMB23.7 million in the same period of 2020 and RMB33.6 million in the first quarter of 2021.

 

General and administrative expenses in the second quarter of 2021 were RMB154.2 million (US$23.9 million), compared to RMB119.5 million in the same period of 2020 and RMB135.2 million in the first quarter of 2021.

 

ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses and impairment of loan receivable to potential investee, were RMB235.6 million (US$36.5 million) in the second quarter of 2021, compared to RMB182.5 million in the same period of 2020 and RMB212.5 million in the first quarter of 2021. As a percentage of net revenues, adjusted operating expenses in the second quarter of 2021 were 15.7%, compared to 15.9% in the same period of 2020 and 15.3% in the first quarter of 2021.

 

ADJUSTED EBITDA: Adjusted EBITDA in the second quarter of 2021 was RMB425.1 million (US$65.8 million), representing an increase of 38.7% from RMB306.4 million in the same period of 2020 and an increase of 2.4% from RMB415.1 million in the first quarter of 2021. Adjusted EBITDA in the second quarter of 2021 excluded share-based compensation expenses of RMB27.5 million (US$4.3 million). Adjusted EBITDA margin in the second quarter of 2021 was 28.4%, compared to 26.8% in the same period of 2020 and 29.9% in the first quarter of 2021.

 

NET PROFIT/LOSS: Net profit attributable to ordinary shareholders in the second quarter of 2021 was RMB455.9 million (US$70.6 million), compared to a net loss of RMB2.12 billion in the same period of 2020 and a net loss of RMB84.7 million in the first quarter of 2021. Net profit attributable to ordinary shareholders in the second quarter of 2021 mainly included changes in the fair value of convertible promissory notes of RMB424.1 million (US$65.7 million) due to the drop in the Company’s stock price.

 

2

 

 

PROFIT PER SHARE: Basic and diluted profit per share were RMB0.52 (US$0.08) and RMB0.04 (US$0.01) in the second quarter of 2021, respectively, which represent the equivalent of RMB3.12 (US$0.48) and RMB0.24 (US$0.06) per American depositary share ("ADS"), respectively. Each ADS represents six Class A ordinary shares. Diluted profit per share is calculated using net profit attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

 

As of June 30, 2021, the aggregate amount of the Company's cash and cash equivalents, restricted cash, and short-term investments was RMB5.03 billion (US$779.7 million).

 

Net cash generated from operating activities in the second quarter of 2021 was RMB314.8 million (US$48.8 million), compared to RMB161.8 million in the same period of 2020 and RMB274.5 million in the first quarter of 2021.

 

Financial Outlook

 

For the third quarter of 2021, the Company expects net revenues to be in the range of RMB1.53 billion to RMB1.55 billion. Adjusted EBITDA is expected to be in the range of RMB420 million to RMB440 million.

 

For the full year of 2021, the Company expects net revenues to be in the range of RMB6.10 billion to RMB6.30 billion. Adjusted EBITDA is expected to be in the range of RMB1.68 billion to RMB1.78 billion. The midpoints of the Company’s updated estimates imply an increase of 28.4% and 30.7% year over year in net revenues and adjusted EBITDA, respectively.

 

The forecast reflects the Company’s current and preliminary views on the market and its operational conditions, which do not factor in any of the potential future impacts caused by the ongoing COVID-19 pandemic, and are subject to change.

 

Conference Call

 

The Company will hold a conference call at 8:00 P.M. on Tuesday, August 24, 2021, U.S. Eastern Time, or 8:00 A.M. on Wednesday, August 25, 2021 Beijing Time, to discuss the financial results.

 

In advance of the conference call, all participants must use the following link to complete the online registration process to receive a unique registrant ID and a set of participant dial-in numbers to join the conference call.

 

Conference ID:   5585337
Registration Link:   http://apac.directeventreg.com/registration/event/5585337
     
The replay will be accessible through September 1, 2021, by dialing the following numbers:
     
United States Toll Free:   +1-855-452-5696
International:    +61-2-8199-0299
Conference ID:   5585337

 

3

 

 

A live and archived 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 Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and 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 RMB6.4566 to US$1.00, the noon buying rate in effect on June 30, 2021, 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 20 cities throughout China, servicing a diversified and loyal base of over 6,000 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.

 

4

 

 

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," “target,” "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.
Xinyuan Liu
+86 10 8456 2121
IR@21Vianet.com

 

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

 

ICR, LLC
Robin Yang
+1 (646) 405-4922
IR@21Vianet.com

 

5

 

 

 

21VIANET GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

    As of     As of  
    December 31, 2020     June 30, 2021  
    RMB     RMB     US$  
    (Audited)     (Unaudited)     (Unaudited)  
Assets                   6.4566  
Current assets:                        
Cash and cash equivalents     2,710,349       4,603,653       713,015  
Restricted cash     270,450       286,303       44,343  
Accounts and notes receivable, net     847,233       1,243,053       192,524  
Short-term investments     285,872       12,920       2,001  
Prepaid expenses and other current assets     1,866,184       1,819,808       281,853  
Amounts due from related parties     75,519       73,595       11,398  
Total current assets     6,055,607       8,039,332       1,245,134  
                         
Non-current assets:                        
Property and equipment, net     8,106,425       8,473,036       1,312,306  
Intangible assets, net     658,195       641,252       99,317  
Land use rights, net     255,373       305,276       47,281  
Operating lease right-of-use assets, net     1,325,526       1,279,138       198,113  
Goodwill     994,993       994,993       154,105  
Restricted cash     135,638       131,534       20,372  
Deferred tax assets     185,481       183,407       28,406  
Long-term investments     135,517       115,515       17,891  
Amounts due from related parties     20,562       -       -  
Other non-current assets     1,500,438       1,720,502       266,472  
Total non-current assets     13,318,148       13,844,653       2,144,263  
Total assets     19,373,755       21,883,985       3,389,397  
                         
Liabilities and Shareholders' Equity                        
Current liabilities:                        
Short-term bank borrowings     34,000       -       -  
Accounts and notes payable     289,387       432,257       66,948  
Accrued expenses and other payables     1,631,563       1,443,884       223,629  
Advances from customers     1,041,594       980,088       151,796  
Deferred revenue     63,245       63,311       9,806  
Income taxes payable     29,028       35,992       5,574  
Amounts due to related parties     51,007       2,595       402  
Current portion of long-term borrowings     180,328       233,448       36,156  
Current portion of finance lease liabilities     403,843       389,000       60,248  
Current portion of deferred government grant     2,074       2,074       321  
Current portion of bonds payable     1,943,619       1,932,905       299,369  
Current portion of operating lease liabilities     452,272       372,007       57,617  
Total current liabilities     6,121,960       5,887,561       911,866  
                         
Non-current liabilities:                        
Long-term borrowings     886,996       1,593,557       246,811  
Convertible promissory notes     3,014,057       4,732,739       733,008  
Non-current portion of finance lease liabilities     688,128       1,071,404       165,939  
Unrecognized tax benefits     68,696       71,835       11,126  
Deferred tax liabilities     299,093       293,632       45,478  
Non-current portion of deferred government grant     4,100       3,196       495  
Amounts due to related parties     747,746       -       -  
Non-current portion of operating lease liabilities     645,499       946,898       146,656  
Total non-current liabilities     6,354,315       8,713,261       1,349,513  
                         
Shareholders' equity                        
Treasury stock     (349,523 )     (349,523 )     (54,134 )
Ordinary shares     56       59       9  
Additional paid-in capital     13,083,119       14,995,378       2,322,488  
Accumulated other comprehensive loss     (55,535 )     (63,254 )     (9,797 )
Statutory reserves     74,462       74,462       11,533  
Accumulated deficit     (7,235,113 )     (7,721,978 )     (1,195,982 )
Series A perpetual convertible preferred shares     1,047,468       -       -  
Total 21Vianet Group, Inc. shareholders’ equity     6,564,934       6,935,144       1,074,117  
Noncontrolling interest     332,546       348,019       53,901  
Total shareholders' equity     6,897,480       7,283,163       1,128,018  
Total liabilities and shareholders' equity     19,373,755       21,883,985       3,389,397  
              -       -  

 

 

 

 

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, 2020   March 31, 2021   June 30, 2021   June 30, 2020   June 30, 2021 
   RMB   RMB   RMB   US$   RMB   RMB   US$ 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
Net revenues   1,144,061    1,386,923    1,496,978    231,852    2,234,858    2,883,901    446,659 
Cost of revenues   (871,729)   (1,063,611)   (1,137,463)   (176,171)   (1,728,415)   (2,201,074)   (340,903)
Gross profit   272,332    323,312    359,515    55,681    506,443    682,827    105,756 
                                    
Operating expenses                                   
Sales and marketing   (51,652)   (73,976)   (59,589)   (9,229)   (100,362)   (133,565)   (20,687)
Research and development   (23,665)   (33,565)   (38,296)   (5,931)   (44,649)   (71,861)   (11,130)
General and administrative   (119,494)   (135,246)   (154,243)   (23,889)   (244,696)   (289,489)   (44,836)
Reversal (allowance) for doubtful debt   1,338    (393)   (7,527)   (1,166)   (1,183)   (7,920)   (1,227)
Impairment of loan receivable to potential investee   -    -    (2,816)   (436)   -    (2,816)   (436)
Total operating expenses   (193,473)   (243,180)   (262,471)   (40,651)   (390,890)   (505,651)   (78,316)
                                    
Operating profit   78,859    80,132    97,044    15,030    115,553    177,176    27,440 
Interest income   11,713    5,709    8,103    1,255    21,095    13,812    2,139 
Interest expense   (102,742)   (84,479)   (87,095)   (13,489)   (205,000)   (171,574)   (26,573)
Other income   8,197    2,172    5,263    815    9,056    7,435    1,152 
Other expense   (2,158)   (3,422)   (11,872)   (1,839)   (23,991)   (15,294)   (2,369)
Changes in the fair value of convertible promissory notes   (1,612,054)   (8,641)   424,107    65,686    (1,612,054)   415,466    64,347 
Foreign exchange gain (loss)   275    (33,846)   78,026    12,085    (41,472)   44,180    6,843 
(Loss) gain before income tax and loss from equity method investments   (1,617,910)   (42,375)   513,576    79,543    (1,736,813)   471,201    72,979 
Income tax expenses   (20,410)   (37,299)   (29,499)   (4,569)   (42,896)   (66,798)   (10,346)
Loss from equity method investments   (10,457)   (1,305)   (23,605)   (3,656)   (6,590)   (24,910)   (3,858)
Net (loss) profit   (1,648,777)   (80,979)   460,472    71,318    (1,786,299)   379,493    58,775 
Net gain attributable to noncontrolling interest   (3,573)   (3,680)   (4,620)   (716)   (4,814)   (8,300)   (1,286)
Net (loss) profit attributable to 21Vianet Group, Inc   (1,652,350)   (84,659)   455,852    70,602    (1,791,113)   371,193    57,489 
Deemed distribution to Series A perpetual convertible preferred shareholders   (470,643)   -    -    -    (470,643)   -    - 
Net (loss) profit attributable to the Company’s ordinary shareholders   (2,122,993)   (84,659)   455,852    70,602    (2,261,756)   371,193    57,489 
                                    
(Loss) profit per share                                   
Basic   (3.21)   (0.10)   0.52    0.08    (3.42)   0.42    0.07 
Diluted   (3.21)   (0.10)   0.04    0.01    (3.42)   (0.05)   (0.01)
Shares used in (loss) profit per share computation                                   
Basic*   660,949,226    860,540,297    869,645,966    869,645,966    660,543,890    863,960,057    863,960,057 
Diluted*   660,949,226    860,540,297    905,446,557    905,446,557    660,543,890    905,136,178    905,136,178 
                                    
(Loss) profit per ADS (6 ordinary shares equal to 1 ADS)                                   
Basic   (19.26)   (0.60)   3.12    0.48    (20.52)   2.52    0.42 
Diluted   (19.26)   (0.60)   0.24    0.06    (20.52)   (0.30)   (0.06)

 

* Shares used in (loss) profit per share/ADS computation were computed under weighted average method.            

 

 

 

 

21VIANET GROUP, INC.  

 RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS  

 (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

   Three months ended   Six months ended 
   June 30, 2020   March 31, 2021   June 30, 2021   June 30, 2020   June 30, 2021 
   RMB   RMB   RMB   US$   RMB   RMB   US$ 
Gross profit   272,332    323,312    359,515    55,681    506,443    682,827    105,756 
Plus: depreciation and amortization   194,651    277,851    277,288    42,946    377,207    555,139    85,980 
Plus: share-based compensation expenses   569    4,126    3,444    533    1,029    7,570    1,172 
Adjusted cash gross profit   467,552    605,289    640,247    99,160    884,679    1,245,536    192,908 
Adjusted cash gross margin   40.9%   43.6%   42.8%   42.8%   39.6%   43.2%   43.2%
                                    
Operating expenses   (193,473)   (243,180)   (262,471)   (40,651)   (390,890)   (505,651)   (78,316)
Plus: share-based compensation expenses   11,005    30,729    24,063    3,727    30,633    54,792    8,486 
Plus: impairment of loan receivable to potential investee   -    -    2,816    436    -    2,816    436 
Adjusted operating expenses   (182,468)   (212,451)   (235,592)   (36,488)   (360,257)   (448,043)   (69,394)
                                    
Operating profit   78,859    80,132    97,044    15,030    115,553    177,176    27,440 
Plus: depreciation and amortization   215,981    300,105    297,738    46,114    418,588    597,843    92,594 
Plus: share-based compensation expenses   11,574    34,855    27,507    4,260    31,662    62,362    9,659 
Plus: impairment of loan receivable to potential investee   -    -    2,816    436    -    2,816    436 
Adjusted EBITDA   306,414    415,092    425,105    65,840    565,803    840,197    130,129 
Adjusted EBITDA margin   26.8%   29.9%   28.4%   28.4%   25.3%   29.1%   29.1%

 

 

 

 

 21VIANET GROUP, INC.

 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

   Three months ended 
   June 30, 2020   March 31, 2021   June 30, 2021 
   RMB   RMB   RMB   US$ 
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited) 
CASH FLOWS FROM OPERATING ACTIVITIES                    
Net (loss) profit   (1,648,777)   (80,979)   460,472    71,318 
Adjustments to reconcile net (loss) profit to net cash generated from operating activities:                    
Depreciation and amortization   215,981    300,105    297,738    46,114 
Stock-based compensation expenses   11,574    34,855    27,507    4,260 
Others   1,776,114    186,399    (344,711)   (53,389)
Changes in operating assets and liabilities                    
Accounts and notes receivable   (79,036)   (203,432)   (198,696)   (30,774)
Prepaid expenses and other current assets   (126,703)   (195,171)   324,091    50,195 
Accounts and notes payable   (37,021)   108,832    34,035    5,271 
Accrued expenses and other payables   41,951    123,047    (1,761)   (273)
Deferred revenue   (18,731)   (4,162)   4,228    655 
Advances from customers   29,340    119,045    (180,551)   (27,964)
Others   (2,905)   (114,086)   (107,546)   (16,657)
Net cash generated from operating activities   161,787    274,453    314,806    48,756 
                     
CASH FLOWS FROM INVESTING ACTIVITIES                    
Purchases of property and equipment   (478,231)   (675,486)   (430,071)   (66,610)
Purchases of intangible assets   (15,707)   (7,522)   (17,672)   (2,737)
Proceeds from investments   68,989    61,432    139,711    21,638 
Proceeds from (payments for) other investing activities   9,484    761    (214,308)   (33,192)
Net cash used in investing activities   (415,465)   (620,815)   (522,340)   (80,901)
                     
CASH FLOWS FROM FINANCING ACTIVITIES                    
Proceeds from bank borrowings   219,978    718,636    33,623    5,208 
Repayments of bank borrowings   (16,000)   (34,000)   (30,300)   (4,693)
Payments for finance lease   (73,165)   (110,480)   (241,709)   (37,436)
Proceed from issuance of convertible promissory notes   509,577    3,797,090    -    - 
Proceed from Series A perpetual convertible preferred shares   1,058,325    -    -    - 
Payment for shares repurchase   -    -    (1,701,807)   (263,576)
Proceeds from (payments for) other financing activities   107,796    (29,387)   52,418    8,120 
Net cash generated from (used in) financing activities   1,806,511    4,341,859    (1,887,775)   (292,377)
                     
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash   10,778    65,770    (60,905)   (9,433)
Net increase (decrease) in cash, cash equivalents and restricted cash   1,563,610    4,061,267    (2,156,214)   (333,955)
Cash, cash equivalents and restricted cash at beginning of period   3,258,757    3,116,437    7,177,704    1,111,685 
Cash, cash equivalents and restricted cash at end of period   4,822,367    7,177,704    5,021,490    777,730