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21Vianet Group, Inc. Reports Unaudited Third Quarter 2019 Financial Results
Nov 18,2019

BEIJING, Nov. 18, 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 third quarter ended September 30, 2019. The Company will hold a conference call at 8:00 P.M. on Monday, November 18, 2019, U.S. Eastern Time to discuss the financial results. Dial-in details are provided at the end of this release.

Third Quarter 2019 Financial Highlights

  • Net revenues increased by 12.7% year over year to RMB981.0 million (US$137.2 million).
     
  • Adjusted EBITDA (non-GAAP) increased by 11.1% year over year to RMB272.5 million (US$38.1 million). Adjusted EBITDA margin was 27.8%, compared to 28.2% in the same period of 2018.
     
  • Net cash generated from operating activities was RMB103.0 million (US$14.4 million) compared to RMB260.7 million in the same period of 2018.

Third Quarter 2019 Operational Highlights

  • Hosting MRR1 per cabinet was RMB8,711 in the third quarter of 2019 compared to RMB8,384 in the third quarter of 2018 and RMB8,663 in the second quarter of 2019.
     
  • Total cabinets under management was 32,116 as of September 30, 2019, compared to 30,303 as of September 30, 2018, and 31,111 as of June 30, 2019. As of September 30, 2019, the Company had 27,267 cabinets in its self-built data centers and 4,849 cabinets in its partnered data centers.
     
  • Utilization rate was 66.2% in the third quarter of 2019, compared to 66.0% in the second quarter of 2019.

Mr. Alvin Wang, Chief Executive Officer and President of the Company, stated, “In the third quarter, both our revenues and adjusted EBITDA exceeded the high end of our previous guidance range. This strong performance was attributable to our elevated value propositions and increased partnerships across industry sectors. We also continued to refine our product offerings and expand our capacity pipeline in response to the increasing demands for scalable and dependable IT solutions amid the current network transformation. Such advances were in sync with our three-year growth plan, increasing the appeal of our offerings to large-scale partners like Alibaba and enabling us to explore new opportunities for cooperation with a diverse group of retail clients through our innovative services. With the right solutions, rich industry knowledge, and a highly-experienced team in place, we are confident in our ability to generate superior, sustainable shareholder value in the long term.”

Ms. Sharon Liu, Chief Financial Officer of the Company, commented, “During the third quarter, our revenues increased by 12.7% year over year and our adjusted EBITDA increased by 11.1% year over year, driven by the expanding scope of corporate digitalization across China. We also continued to actively engage in dialogues with our clients to remain at the vanguard of industry trends, better position ourselves to secure additional business opportunities, and ramp up our cabinet deliveries, which further contributed to our healthy cash position in the period.”

Third Quarter 2019 Financial Results

REVENUES: Net revenues increased by 12.7% to RMB981.0 million (US$137.2 million) in the third quarter of 2019 from RMB870.1 million in the same period of 2018 and increased by 10.5% from RMB888.0 million in the second quarter of 2019. The year-over-year increase was primarily attributable to the growing domestic demand for data centers, driven by the expanding scope of corporate digitalization across China.

GROSS PROFIT: Gross profit was RMB222.6 million (US$31.1 million) in the third quarter of 2019, compared to RMB241.2 million in the same period of 2018 and RMB228.2 million in the second quarter of 2019. Gross margin was 22.7% in the third quarter of 2019, compared to 27.7% in the same period of 2018 and 25.7% in the second quarter of 2019. The year-over-year decrease was mainly due to the introduction of certain lower-margin products and higher rent and utility costs, and partially due to the delivery of additional pipeline capacity.

ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, increased by 1.2% to RMB396.7 million (US$55.5 million) in the third quarter of 2019 from RMB391.9 million in the same period of 2018 and decreased by 1.8% from RMB403.8 million in the second quarter of 2019. Adjusted cash gross margin was 40.4% in the third quarter of 2019, compared to 45.0% in the same period of 2018 and 45.5% in the second quarter of 2019.
                                                                                                                                                                                            
OPERATING EXPENSES: Total operating expenses decreased by 11.0% to RMB157.1 million (US$22.0 million) in the third quarter of 2019 from RMB176.6 million in the same period of 2018 and decreased by 6.6% from RMB168.2 million in the second quarter of 2019. As a percentage of net revenues, total operating expenses reduced to 16.0% in the third quarter of 2019 from 20.3% in the same period of 2018 and 18.9% in the second 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 and operating leverage.

Sales and marketing expenses were RMB52.4 million (US$7.3 million) in the third quarter of 2019, an increase of 31.3% from RMB39.9 million in the same period of 2018 and an increase of 12.4% from RMB46.6 million in the second quarter of 2019. The increase of sales and marketing expenses was mainly attributable to increased marketing activities.

Research and development expenses were RMB22.5 million (US$3.2 million) in the third quarter of 2019 compared to RMB24.3 million in the same period of 2018 and RMB18.8 million in the second quarter of 2019. 

General and administrative expenses were RMB82.2 million (US$11.5 million) in the third quarter of 2019 compared to RMB110.2 million in the same period of 2018 and RMB102.3 million in the second 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 10.2% to RMB146.2 million (US$20.5 million) in the third quarter of 2019 from RMB162.9 million in the same period of 2018 and decreased by 9.3% from RMB161.3 million in the second quarter of 2019. As a percentage of net revenues, adjusted operating expenses decreased to 14.9% in the third quarter of 2019 from 18.7% in the same period of 2018 and 18.2% in the second quarter of 2019.

ADJUSTED EBITDA: Adjusted EBITDA in the third quarter of 2019 increased by 11.1% to RMB272.5 million (US$38.1 million) from RMB245.2 million in the same period of 2018 and increased by 4.5% from RMB260.7 million in the second quarter of 2019. Adjusted EBITDA in the third quarter of 2019 excluded share-based compensation expenses of RMB11.3 million (US$1.6 million). Adjusted EBITDA margin was 27.8% in the third quarter of 2019, compared to 28.2% in the same period of 2018 and 29.4% in the second quarter of 2019.

NET PROFIT/LOSS: Net loss attributable to ordinary shareholders in the third quarter of 2019 was RMB69.5 million (US$9.7 million) compared to RMB29.6 million in the same period of 2018 and RMB102.1 million in the second quarter of 2019. Net loss attributable to ordinary shareholders in the third quarter of 2019 included a foreign exchange loss of RMB40.2 million (US$5.6 million) compared to RMB55.0 million in the same period of 2018 and RMB39.9 million in the second quarter of 2019, and an interest expense of RMB96.9 million (US$13.6 million) compared to RMB60.8 million in the same period of 2018 and RMB91.2 million in the second quarter of 2019.

PROFIT/LOSS PER SHARE: Basic and diluted loss per share were RMB0.10 (US$1 cent) in the third quarter of 2019, which represents the equivalent of RMB0.60 (US$6 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 September 30, 2019, the Company's cash and cash equivalents, restricted cash, and short-term investments were RMB2.94 billion (US$411.9 million).

Net cash generated from operating activities was RMB103.0 million (US$14.4 million) in the third quarter of 2019 compared to RMB260.7 million in the same period of 2018 and RMB127.1 million in the second quarter of 2019.

Recent Development

The Company signed a memorandum of understanding (the “MoU”) with Alibaba Group (“Alibaba”) on October 14, 2019. As part of the MoU, the Company will deploy IDC services to support Alibaba in its expansion throughout Eastern China. The project will be deployed in two phases. The first phase expects to complete construction and cabinet deliveries by the first half of 2020. During the term of the project contract, the first phase is expected to generate revenue of RMB1.6 billion.

Financial Outlook

For the fourth quarter of 2019, the Company expects net revenues to be in the range of RMB1,030 million to RMB1,050 million. Adjusted EBITDA is expected to be in the range of RMB245 million to RMB265 million.

For the full year of 2019, the Company expects net revenues to be in the range of RMB3,771 million to RMB3,791 million. Adjusted EBITDA is expected to be in the range of RMB1,033 million to RMB1,053 million. The midpoints of the Company’s updated estimates imply an increase of 11.2% year over year in total revenues and an increase of 13.6% 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, November 18, 2019, U.S. Eastern Time, or 9:00 A.M. on Tuesday, November 19, 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: 8777175

The replay will be accessible through November 26, 2019, by dialing the following numbers:

United States Toll Free: +1-855-452-5696
International: +61-2-8199-0299
Conference ID: 8777175

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 RMB7.1477 to US$1.00, the noon buying rate in effect on September 30, 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$”))
  As of As of
December 31, 2018 September 30, 2019
  RMB RMB US$
  (Audited) (Unaudited) (Unaudited)
Assets        
Current assets:      
Cash and cash equivalents 2,358,556   2,092,427   292,741  
Restricted cash 265,214   426,385   59,653  
Accounts and notes receivable, net 524,305   806,502   112,834  
Short-term investments 245,014   356,104   49,821  
Prepaid expenses and other current assets 1,159,574   1,549,337   216,760  
Amounts due from related parties 125,446   414,925   58,050  
Total current assets 4,678,109   5,645,680   789,859  
       
       
Non-current assets:      
Property and equipment, net 4,031,242   4,945,021   691,834  
Intangible assets, net 355,313   422,754   59,145  
Land use rights, net 147,493   144,806   20,259  
Operating lease right-of-use assets, net -   746,311   104,413  
Goodwill 989,530   989,530   138,440  
Long-term investments 544,323   194,968   27,277  
Amounts due from related parties 34,424   38,860   5,437  
Restricted cash 37,251   69,297   9,695  
Deferred tax assets 159,441   173,768   24,311  
Other non-current assets 173,591   272,419   38,113  
Total non-current assets 6,472,608   7,997,734   1,118,924  
Total assets 11,150,717   13,643,414   1,908,783  
       
       
Liabilities and Shareholders' Equity      
Current liabilities:      
Short-term bank borrowings 50,000   230,000   32,178  
Accounts and notes payable 389,508   332,451   46,512  
Accrued expenses and other payables 659,320   1,066,569   149,219  
Deferred revenue 57,754   61,016   8,536  
Advances from customers 670,037   996,064   139,354  
Income taxes payable 13,111   40,844   5,714  
Amounts due to related parties 52,328   113,698   15,907  
Current portion of long-term bank borrowings 75,284   29,000   4,057  
Current portion of capital lease obligations 219,695   180,033   25,188  
Current portion of deferred government grant 4,173   3,048   426  
Operating lease liabilities - current -   187,854   26,282  
Total current liabilities 2,191,210   3,240,577   453,373  
       
       
Non-current liabilities:      
Long-term borrowings 112,000   96,000   13,431  
Amounts due to related parties 504,478   519,834   72,727  
Unrecognized tax benefits 6,677   4,131   578  
Deferred tax liabilities 157,720   204,573   28,621  
Non-current portion of capital lease obligations 765,993   715,248   100,067  
Non-current portion of deferred government grant 11,619   7,578   1,060  
Bonds payable 2,037,836   3,007,973   420,831  
Operating lease liabilities - non current -   559,704   78,305  
Total non-current liabilities 3,596,323   5,115,041   715,620  
       
Shareholders' equity      
Treasury stock (337,683 ) (337,683 ) (47,244 )
Ordinary shares 46   46   6  
Additional paid-in capital 9,141,494   9,087,046   1,271,324  
Accumulated other comprehensive gain 85,979   126,776   17,737  
Statutory reserves 42,403   43,838   6,134  
Accumulated deficit (3,838,032 ) (4,005,343 ) (560,368 )
Total 21Vianet Group, Inc. shareholders’ equity 5,094,207   4,914,680   687,589  
Noncontrolling interest 268,977   373,116   52,201  
Total shareholders' equity 5,363,184   5,287,796   739,790  
Total liabilities and shareholders' equity 11,150,717   13,643,414   1,908,783  
       
       

 

21VIANET GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data)
                 
  Three months ended   Nine months ended
  September 30, 2018 June 30, 2019 September 30, 2019   September 30, 2018 September 30, 2019
  RMB RMB RMB US$   RMB RMB US$
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)   (Unaudited) (Unaudited) (Unaudited)
Net revenues 870,068   888,020   980,969   137,243     2,499,150   2,740,848   383,459  
Cost of revenues (628,873 ) (659,772 ) (758,414 ) (106,106 )   (1,800,620 ) (2,049,270 ) (286,703 )
Gross profit 241,195   228,248   222,555   31,137     698,530   691,578   96,756  
                 
Operating expenses                
Sales and marketing (39,918 ) (46,626 ) (52,399 ) (7,331 )   (122,966 ) (143,121 ) (20,023 )
Research and development (24,333 ) (18,790 ) (22,518 ) (3,150 )   (68,526 ) (63,872 ) (8,936 )
General and administrative (110,243 ) (102,341 ) (82,156 ) (11,494 )   (331,674 ) (305,293 ) (42,712 )
(Allowance) reversal for doubtful debt (643 ) (457 ) (6 ) (1 )   1,839   (485 ) (68 )
Changes in the fair value of contingent purchase consideration payables (1,413 ) -   -   -     (4,623 ) -   -  
Total operating expenses (176,550 ) (168,214 ) (157,079 ) (21,976 )   (525,950 ) (512,771 ) (71,739 )
                 
                 
Operating profit 64,645   60,034   65,476   9,161     172,580   178,807   25,017  
Interest income 13,484   12,389   15,379   2,152     30,972   39,619   5,543  
Interest expense (60,766 ) (91,202 ) (96,936 ) (13,562 )   (163,636 ) (257,580 ) (36,037 )
Gain on deconsolidation of subsidiaries -   -   -   -     4,843   -   -  
Other income 8,436   8,958   2,187   306     50,983   14,220   1,989  
Other expense (137 ) (4,177 ) (127 ) (18 )   (2,228 ) (4,362 ) (610 )
Foreign exchange loss (55,024 ) (39,853 ) (40,192 ) (5,623 )   (83,543 ) (50,507 ) (7,066 )
Loss on debt extinguishment -   (17,804 ) (969 ) (136 )   -   (18,773 ) (2,626 )
(Loss) gain before income taxes and loss from equity method investments (29,362 ) (71,655 ) (55,182 ) (7,720 )   9,971   (98,576 ) (13,790 )
Income tax benefits (expenses) 7,624   (9,343 ) (10,039 ) (1,405 )   (70,761 ) (30,123 ) (4,213 )
Loss from equity method investments (6,156 ) (18,277 ) (1,078 ) (151 )   (27,904 ) (30,293 ) (4,238 )
Net loss (27,894 ) (99,275 ) (66,299 ) (9,276 )   (88,694 ) (158,992 ) (22,241 )
Net profit attributable to noncontrolling interest (1,739 ) (2,785 ) (3,157 ) (442 )   (2,309 ) (6,884 ) (963 )
Net loss attributable to ordinary shareholders (29,633 ) (102,060 ) (69,456 ) (9,718 )   (91,003 ) (165,876 ) (23,204 )
                 
                 
Loss per share                
Basic (0.04 ) (0.15 ) (0.10 ) (0.01 )   (0.13 ) (0.24 ) (0.03 )
Diluted (0.04 ) (0.15 ) (0.10 ) (0.01 )   (0.13 ) (0.24 ) (0.03 )
Shares used in loss per share computation                
Basic* 676,327,014   677,802,980   679,135,837   679,135,837     674,723,544   678,359,403   678,359,403  
Diluted* 676,327,014   677,802,980   679,135,837   679,135,837     674,723,544   678,359,403   678,359,403  
                 
Loss per ADS (6 ordinary shares equal to 1 ADS)              
Basic (0.24 ) (0.90 ) (0.60 ) (0.06 )   (0.78 ) (1.44 ) (0.18 )
Diluted (0.24 ) (0.90 ) (0.60 ) (0.06 )   (0.78 ) (1.44 ) (0.18 )
                 
* Shares used in (loss) profit per share/ADS computation were computed under weighted average method.          
                 

 

21VIANET GROUP, INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))
                 
  Three months ended   Nine months ended
  September 30, 2018 June 30, 2019 September 30, 2019   September 30, 2018 September 30, 2019
  RMB RMB RMB US$   RMB RMB US$
Gross profit 241,195   228,248   222,555   31,137     698,530   691,578   96,756  
Plus: depreciation and amortization 150,056   175,102   173,712   24,303     403,900   514,235   71,944  
Plus: share-based compensation expenses 689   459   464   65     996   1,397   195  
Adjusted cash gross profit 391,940   403,809   396,731   55,505     1,103,426   1,207,210   168,895  
Adjusted cash gross margin 45.0%   45.5%   40.4%   40.4%     44.2%   44.0%   44.0%  
                 
Operating expenses (176,550 ) (168,214 ) (157,079 ) (21,976 )   (525,950 ) (512,771 ) (71,739 )
Plus: share-based compensation expenses 12,240   6,932   10,833   1,516     29,342   33,930   4,747  
Plus: changes in the fair value of contingent purchase consideration payables 1,413   -   -   -     4,623   -   -  
Adjusted operating expenses (162,897 ) (161,282 ) (146,246 ) (20,460 )   (491,985 ) (478,841 ) (66,992 )
                 
                 
Operating profit 64,645   60,034   65,476   9,161     172,580   178,807   25,017  
Plus: depreciation and amortization 166,244   193,302   195,729   27,383     454,847   572,563   80,105  
Plus: share-based compensation expenses 12,929   7,391   11,297   1,581     30,338   35,327   4,942  
Plus: changes in the fair value of contingent purchase consideration payables 1,413   -   -   -     4,623   -   -  
Adjusted EBITDA 245,231   260,727   272,502   38,125     662,388   786,697   110,064  
Adjusted EBITDA margin 28.2%   29.4%   27.8%   27.8%     26.5%   28.7%   28.7%  
                 

 

21VIANET GROUP, INC.  
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS  
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))  
                 
  Three months ended  
  September 30, 2018   June 30, 2019   September 30, 2019  
  RMB   RMB   RMB   US$  
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
CASH FLOWS FROM OPERATING ACTIVITIES                
Net loss (27,894)   (99,275)   (66,299)   (9,276)  
Adjustments to reconcile net loss to net cash generated from operating activities:        
  Depreciation and amortization 166,244   193,302   195,729   27,383  
  Stock-based compensation expenses 12,929   7,391   11,297   1,581  
  Others 41,616   69,061   33,913   4,744  
Changes in operating assets and liabilities                
  Accounts and notes receivable (34,113)   (119,144)   (133,929)   (18,737)  
  Prepaid expenses and other current assets (37,448)   (50,381)   (84,332)   (11,798)  
  Accounts and notes payable 37,690   14,644   (60,121)   (8,411)  
  Accrued expenses and other payables (19,359)   9,996   105,076   14,701  
  Deferred revenue 11,154   936   16,138   2,258  
  Advances from customers 114,528   125,227   103,772   14,518  
  Others (4,632)   (24,647)   (18,259)   (2,554)  
Net cash generated from operating activities 260,715   127,110   102,985   14,409  
                 
CASH FLOWS FROM INVESTING ACTIVITIES                
Purchases of property and equipment (123,027)   (208,520)   (448,614)   (62,763)  
Purchases of intangible assets (4,032)   (6,990)   (8,278)   (1,158)  
Payments for investments (196,319)   (127,148)   (320,660)   (44,862)  
Proceeds from other investing activities 18,061   11,575   162,811   22,778  
Net cash used in investing activities (305,317)   (331,083)   (614,741)   (86,005)  
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
Proceeds from short-term bank borrowings -   -   200,000   27,981  
Repayment of long-term bank borrowings -   (27,779)   (44,331)   (6,202)  
Payments for capital lease (50,996)   (66,316)   (83,274)   (11,650)  
Repurchase of 2020 Notes -   (1,021,539)   (126,553)   (17,705)  
Proceeds from issuance of 2021 Notes -   2,012,084   -   -  
Payment of issuance cost of 2021 Notes -   (35,427)   (183)   (26)  
Proceeds from (payments for) other financing activities 328,801   (3,542)   88   12  
Net cash generated from (used in) financing activities 277,805   857,481   (54,253)   (7,590)  
                 
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 63,580   56,386   68,718   9,614  
Net increase (decrease) in cash, cash equivalents and restricted cash 296,783   709,894   (497,291)   (69,572)  
Cash, cash equivalents and restricted cash at beginning of period 2,439,152   2,375,506   3,085,400   431,663  
Cash, cash equivalents and restricted cash at end of period 2,735,935   3,085,400   2,588,109   362,091  
                 

 

Source: 21Vianet Group, Inc.