VNET Reports Unaudited Fourth Quarter and Full Year 2021 Financial Results
BEIJING,
Fourth Quarter 2021 Financial Highlights
- Net revenues increased by 29.4% to
RMB1.75 billion (US$273.9 million ) fromRMB1.35 billion in the same period of 2020. - Adjusted cash gross profit (non-GAAP) increased by 22.7% to
RMB713.8 million (US$112.0 million ) fromRMB581.9 million in the same period of 2020. Adjusted cash gross margin (non-GAAP) was 40.9%, compared to 43.2% in the same period of 2020. - Adjusted EBITDA (non-GAAP) increased by 18.8% to
RMB463.0 million (US$72.7 million ) fromRMB389.8 million in the same period of 2020. Adjusted EBITDA margin (non-GAAP) was 26.5%, compared to 28.9% in the same period of 2020.
Full Year 2021 Financial Highlights
- Net revenues increased by 28.2% to
RMB6.19 billion (US$971.3 million ) fromRMB4.83 billion in the full year of 2020. - Adjusted cash gross profit (non-GAAP) increased by 32.2% to
RMB2.63 billion (US$413.3 million ) fromRMB1.99 billion in the full year of 2020. Adjusted cash gross margin (non-GAAP) was 42.6%, compared to 41.3% in the full year of 2020. - Adjusted EBITDA (non-GAAP) increased by 32.4% to
RMB1.75 billion (US$275.2 million ) fromRMB1.32 billion in the full year of 2020. Adjusted EBITDA margin (non-GAAP) was 28.3%, compared to 27.4% in the full year of 2020.
Fourth Quarter 2021 Operational Highlights
- Total cabinets under management net increased by 13,276 in the fourth quarter of 2021 to 78,540 as of
December 31, 2021 , a 46.7% year-over-year growth, compared to 53,553 as ofDecember 31, 2020 , and 65,264 as ofSeptember 30, 2021 . - Retail IDC MRR[1] per cabinet was
RMB9,301 , compared toRMB9,131 in the same period of 2020 andRMB9,296 in the third quarter of 2021. - Compound utilization rate was 61.6%, compared to 59.8% in the third quarter of 2021.
- Utilization rate for mature cabinets, which consisted of cabinet deliveries prior to and during 2019, was 76.7%, compared to 75.5% in the third quarter of 2021.
- Utilization rate for ramp-up and newly-built cabinets, which consisted of cabinet deliveries in 2020 and 2021, was 39.6%, compared to 34.7% in the third quarter of 2021.
[1] Retail IDC MRR refers to Monthly Recurring Revenues for the retail IDC business. |
Mr.
Mr.
Fourth Quarter 2021 Financial Results
NET REVENUES: Net revenues in the fourth quarter of 2021 was
GROSS PROFIT: Gross profit in the fourth quarter of 2021 was
ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was
OPERATING EXPENSES: Total operating expenses in the fourth quarter of 2021 were
Sales and marketing expenses in the fourth quarter of 2021 were
Research and development expenses in the fourth quarter of 2021 were
General and administrative expenses in the fourth quarter of 2021 were
ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses, compensation for postcombination employment in an acquisition, impairment of loan receivable to potential investee and impairment of long-lived assets, were
ADJUSTED EBITDA: Adjusted EBITDA in the fourth quarter of 2021 was
NET PROFIT/LOSS: Net loss attributable to ordinary shareholders in the fourth quarter of 2021 was
PROFIT/LOSS PER SHARE: Basic and diluted loss per share were
As of
Net cash generated from operating activities, in the fourth quarter of 2021 was
Full Year 2021 Financial Results
NET REVENUES: Net revenues in the full year of 2021 increased by 28.2% to
GROSS PROFIT: Gross profit in the full year of 2021 was
ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was
OPERATING EXPENSES: Total operating expenses in the full year of 2021 were
Sales and marketing expenses in the full year of 2021 were
Research and development expenses in the full year of 2021 were
General and administrative expenses in the full year of 2021 were
ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses, compensation for postcombination employment in an acquisition, impairment of loan receivable to potential investee and impairment of long-lived assets, were
ADJUSTED EBITDA: Adjusted EBITDA in the full year of 2021 was
NET PROFIT/LOSS: Net profit attributable to ordinary shareholders in the full year of 2021 was
PROFIT/LOSS PER SHARE: Basic profit per share and diluted loss per share were
Net cash generated from operating activities in the full year of 2021 was
Financial Outlook
For the full year of 2022, the Company expects net revenues to be in the range of
The forecast reflects the Company's current and preliminary views on the market and its operational conditions, which does not factor in any of the potential future impacts caused by the ongoing COVID-19 pandemic, and is subject to change.
Conference Call
The Company will hold a conference call at
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: |
7127417 |
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Registration Link: |
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The replay will be accessible through |
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United States Toll Free: |
+1-855-452-5696 |
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International: |
+61-2-9003-4211 |
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Conference ID: |
7127417 |
A live and archived webcast of the conference call will be available through the Company's investor relations website at http://ir.vnet.com.
Non-GAAP Disclosure
In evaluating its business,
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
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the
Investor Relations Contact:
Tel: +86 10 8456 2121
Email: ir@vnet.com
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CONSOLIDATED BALANCE SHEETS |
|||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) |
|||||
As of |
As of |
||||
|
|
||||
RMB |
RMB |
US$ |
|||
(Audited) |
(Unaudited) |
(Unaudited) |
|||
Assets |
|||||
Current assets: |
|||||
Cash and cash equivalents |
2,710,349 |
1,372,481 |
215,372 |
||
Restricted cash |
270,450 |
327,767 |
51,434 |
||
Accounts and notes receivable, net |
847,233 |
1,405,997 |
220,632 |
||
Short-term investments |
285,872 |
- |
- |
||
Prepaid expenses and other current assets |
1,866,184 |
2,049,911 |
321,673 |
||
Amounts due from related parties |
75,519 |
167,967 |
26,358 |
||
Total current assets |
6,055,607 |
5,324,123 |
835,469 |
||
Non-current assets: |
|||||
Property and equipment, net |
8,106,425 |
10,092,419 |
1,583,721 |
||
Intangible assets, net |
658,195 |
900,335 |
141,282 |
||
Land use rights, net |
255,373 |
337,235 |
52,920 |
||
Operating lease right-of-use assets, net |
1,325,526 |
2,869,338 |
450,262 |
||
Goodwill |
994,993 |
1,339,657 |
210,221 |
||
Restricted cash |
135,638 |
8,225 |
1,291 |
||
Deferred tax assets, net |
185,481 |
168,002 |
26,363 |
||
Long-term investments, net |
135,517 |
98,243 |
15,416 |
||
Amounts due from related parties |
20,562 |
- |
- |
||
Other non-current assets |
1,500,438 |
1,957,462 |
307,169 |
||
Total non-current assets |
13,318,148 |
17,770,916 |
2,788,645 |
||
Total assets |
19,373,755 |
23,095,039 |
3,624,114 |
||
Liabilities and Shareholders' Equity |
|||||
Current liabilities: |
|||||
Short-term bank borrowings |
34,000 |
- |
- |
||
Accounts and notes payable |
289,387 |
493,506 |
77,442 |
||
Accrued expenses and other payables |
1,631,563 |
2,298,089 |
360,620 |
||
Advances from customers |
1,041,594 |
1,041,902 |
163,497 |
||
Deferred revenue |
63,245 |
55,695 |
8,740 |
||
Income taxes payable |
29,028 |
43,770 |
6,868 |
||
Amounts due to related parties |
51,007 |
8,772 |
1,377 |
||
Current portion of long-term borrowings |
180,328 |
384,158 |
60,283 |
||
Current portion of finance lease liabilities |
403,843 |
244,032 |
38,294 |
||
Current portion of deferred government grant |
2,074 |
2,074 |
325 |
||
Current portion of bonds payable |
1,943,619 |
- |
- |
||
Current portion of operating lease liabilities |
452,272 |
607,997 |
95,408 |
||
Total current liabilities |
6,121,960 |
5,179,995 |
812,854 |
||
Non-current liabilities: |
|||||
Long-term borrowings |
886,996 |
2,215,015 |
347,584 |
||
Convertible promissory notes |
3,014,057 |
4,266,951 |
669,578 |
||
Non-current portion of finance lease liabilities |
688,128 |
1,119,751 |
175,713 |
||
Unrecognized tax benefits |
68,696 |
77,573 |
12,173 |
||
Deferred tax liabilities |
299,093 |
348,404 |
54,672 |
||
Non-current portion of deferred government grant |
4,100 |
2,294 |
360 |
||
Amounts due to related parties |
747,746 |
- |
- |
||
Non-current portion of operating lease liabilities |
645,499 |
2,284,055 |
358,418 |
||
Total non-current liabilities |
6,354,315 |
10,314,043 |
1,618,498 |
||
Shareholders' equity |
|||||
Treasury stock |
(349,523) |
(349,523) |
(54,848) |
||
Ordinary shares |
56 |
60 |
9 |
||
Additional paid-in capital |
13,083,119 |
15,198,055 |
2,384,906 |
||
Accumulated other comprehensive loss |
(55,535) |
(90,443) |
(14,192) |
||
Statutory reserves |
74,462 |
74,462 |
11,685 |
||
Accumulated deficit |
(7,235,113) |
(7,590,382) |
(1,191,097) |
||
Series A perpetual convertible preferred shares |
1,047,468 |
- |
- |
||
Total VNET Group, Inc. shareholders' equity |
6,564,934 |
7,242,229 |
1,136,463 |
||
Noncontrolling interest |
332,546 |
358,772 |
56,299 |
||
Total shareholders' equity |
6,897,480 |
7,601,001 |
1,192,762 |
||
Total liabilities and shareholders' equity |
19,373,755 |
23,095,039 |
3,624,114 |
||
VNET GROUP, INC. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) |
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Three months ended |
Twelve months ended |
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|
|
|
|
|
||||||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
||||||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Audited) |
(Unaudited) |
(Unaudited) |
||||||||
Net revenues |
1,348,367 |
1,560,460 |
1,745,440 |
273,898 |
4,829,019 |
6,189,801 |
971,315 |
|||||||
Cost of revenues |
(1,053,942) |
(1,185,225) |
(1,365,472) |
(214,272) |
(3,753,008) |
(4,751,771) |
(745,657) |
|||||||
Gross profit |
294,425 |
375,235 |
379,968 |
59,626 |
1,076,011 |
1,438,030 |
225,658 |
|||||||
Operating income (expense) |
||||||||||||||
Other operating income |
7,619 |
- |
- |
- |
7,619 |
- |
- |
|||||||
Sales and marketing |
(88,890) |
(36,361) |
(85,474) |
(13,413) |
(235,012) |
(255,400) |
(40,078) |
|||||||
Research and development |
(42,164) |
(53,591) |
(63,037) |
(9,892) |
(112,891) |
(188,489) |
(29,578) |
|||||||
General and administrative |
(162,869) |
(161,930) |
(390,935) |
(61,346) |
(535,111) |
(842,354) |
(132,184) |
|||||||
Allowance for doubtful debt |
(1,321) |
(9,451) |
(1,028) |
(161) |
(2,393) |
(18,399) |
(2,887) |
|||||||
Impairment of loan receivable to potential investee |
- |
- |
9 |
1 |
- |
(2,807) |
(440) |
|||||||
Impairment of long-lived assets |
(81,619) |
- |
(109,267) |
(17,146) |
(81,619) |
(109,267) |
(17,146) |
|||||||
Total operating expenses |
(369,244) |
(261,333) |
(649,732) |
(101,957) |
(959,407) |
(1,416,716) |
(222,313) |
|||||||
Operating (loss) profit |
(74,819) |
113,902 |
(269,764) |
(42,331) |
116,604 |
21,314 |
3,345 |
|||||||
Interest income |
4,176 |
9,148 |
8,937 |
1,402 |
31,711 |
31,897 |
5,005 |
|||||||
Interest expense |
(79,243) |
(88,013) |
(75,363) |
(11,826) |
(380,609) |
(334,950) |
(52,561) |
|||||||
Impairment of long-term investment |
(13,030) |
(3,495) |
- |
- |
(13,030) |
(3,495) |
(548) |
|||||||
Other income |
4,736 |
4,351 |
22,137 |
3,474 |
16,539 |
33,923 |
5,323 |
|||||||
Other expenses |
(7,926) |
(3,908) |
(3,498) |
(549) |
(36,912) |
(22,700) |
(3,562) |
|||||||
Changes in the fair value of convertible promissory notes |
(957,105) |
185,840 |
227,843 |
35,754 |
(2,544,220) |
829,149 |
130,112 |
|||||||
Foreign exchange gain (loss) |
155,496 |
(16,588) |
82,444 |
12,937 |
228,125 |
110,036 |
17,267 |
|||||||
(Loss) gain before income taxes and gain (loss) from equity method investments |
(967,715) |
201,237 |
(7,264) |
(1,139) |
(2,581,792) |
665,174 |
104,381 |
|||||||
Income tax expenses |
(41,210) |
(29,060) |
(15,549) |
(2,440) |
(109,336) |
(111,407) |
(17,482) |
|||||||
Gain (loss) from equity method investments |
15,194 |
(12,027) |
(1,729) |
(271) |
10,869 |
(38,666) |
(6,068) |
|||||||
Net (loss) profit |
(993,731) |
160,150 |
(24,542) |
(3,850) |
(2,680,259) |
515,101 |
80,831 |
|||||||
Net gain attributable to noncontrolling interest |
(21,647) |
(3,967) |
(2,736) |
(429) |
(29,088) |
(15,003) |
(2,354) |
|||||||
Net (loss) profit attributable to |
(1,015,378) |
156,183 |
(27,278) |
(4,279) |
(2,709,347) |
500,098 |
78,477 |
|||||||
Deemed distribution to Series A perpetual convertible preferred shareholders |
- |
- |
- |
- |
(470,643) |
- |
- |
|||||||
Net (loss) profit attributable to the Company's ordinary shareholders |
(1,015,378) |
156,183 |
(27,278) |
(4,279) |
(3,179,990) |
500,098 |
78,477 |
|||||||
(Loss) profit per share |
||||||||||||||
Basic |
(1.28) |
0.18 |
(0.03) |
(0.00) |
(4.47) |
0.57 |
0.09 |
|||||||
Diluted |
(1.28) |
(0.03) |
(0.28) |
(0.04) |
(4.47) |
(0.36) |
(0.06) |
|||||||
Shares used in (loss) profit per share computation |
||||||||||||||
Basic* |
802,963,713 |
863,643,659 |
867,823,835 |
867,823,835 |
716,888,919 |
865,352,554 |
865,352,554 |
|||||||
Diluted* |
802,963,713 |
897,643,660 |
901,823,836 |
901,823,836 |
716,888,919 |
911,591,433 |
911,591,433 |
|||||||
(Loss) profit per ADS (6 ordinary shares equal to 1 ADS) |
||||||||||||||
Basic |
(7.68) |
1.08 |
(0.18) |
(0.03) |
(26.82) |
3.42 |
0.54 |
|||||||
Diluted |
(7.68) |
(0.18) |
(1.68) |
(0.24) |
(26.82) |
(2.16) |
(0.36) |
|||||||
* Shares used in (loss) profit per share/ADS computation were computed under weighted average method. |
VNET GROUP, INC. |
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RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
|||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) |
|||||||||||||
Three months ended |
Twelve months ended |
||||||||||||
|
|
|
|
|
|||||||||
RMB |
RMB |
RMB |
US$ |
RMB |
RMB |
US$ |
|||||||
Gross profit |
294,425 |
375,235 |
379,968 |
59,626 |
1,076,011 |
1,438,030 |
225,658 |
||||||
Plus: depreciation and amortization |
277,543 |
297,046 |
329,929 |
51,773 |
901,497 |
1,182,114 |
185,499 |
||||||
Plus: share-based compensation expenses |
9,882 |
2,211 |
3,932 |
617 |
15,251 |
13,713 |
2,152 |
||||||
Adjusted cash gross profit |
581,850 |
674,492 |
713,829 |
112,016 |
1,992,759 |
2,633,857 |
413,309 |
||||||
Adjusted cash gross margin |
43.2% |
43.2% |
40.9% |
40.9% |
41.3% |
42.6% |
42.6% |
||||||
Operating expenses |
(369,244) |
(261,333) |
(649,732) |
(101,957) |
(959,407) |
(1,416,716) |
(222,313) |
||||||
Plus: share-based compensation expenses |
72,152 |
2,397 |
249,108 |
39,090 |
121,553 |
306,297 |
48,065 |
||||||
Plus: compensation for postcombination employment in an acquisition |
- |
14,959 |
17,644 |
2,769 |
- |
32,603 |
5,116 |
||||||
Plus: impairment of loan receivable to potential investee |
- |
- |
(9) |
(1) |
- |
2,807 |
440 |
||||||
Plus: impairment of long-lived assets |
81,619 |
- |
109,267 |
17,146 |
81,619 |
109,267 |
17,146 |
||||||
Adjusted operating expenses |
(215,473) |
(243,977) |
(273,722) |
(42,953) |
(756,235) |
(965,742) |
(151,546) |
||||||
Operating (loss) profit |
(74,819) |
113,902 |
(269,764) |
(42,331) |
116,604 |
21,314 |
3,345 |
||||||
Plus: depreciation and amortization |
300,917 |
316,951 |
352,784 |
55,360 |
988,983 |
1,267,578 |
198,911 |
||||||
Plus: share-based compensation expenses |
82,034 |
4,608 |
253,040 |
39,707 |
136,804 |
320,010 |
50,217 |
||||||
Plus: compensation for postcombination employment in an acquisition |
- |
14,959 |
17,644 |
2,769 |
- |
32,603 |
5,116 |
||||||
Plus: impairment of loan receivable to potential investee |
- |
- |
(9) |
(1) |
- |
2,807 |
440 |
||||||
Plus: impairment of long-lived assets |
81,619 |
- |
109,267 |
17,146 |
81,619 |
109,267 |
17,146 |
||||||
Adjusted EBITDA |
389,751 |
450,420 |
462,962 |
72,650 |
1,324,010 |
1,753,579 |
275,175 |
||||||
Adjusted EBITDA margin |
28.9% |
28.9% |
26.5% |
26.5% |
27.4% |
28.3% |
28.3% |
VNET GROUP, INC. |
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
|||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) |
|||||||
Three months ended |
|||||||
|
|
|
|||||
RMB |
RMB |
RMB |
US$ |
||||
(Unaudited) |
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|||||||
Net (loss) profit |
(993,731) |
160,150 |
(24,542) |
(3,850) |
|||
Adjustments to reconcile net (loss) profit to net cash generated from operating activities: |
|||||||
Depreciation and amortization |
300,917 |
316,951 |
352,784 |
55,360 |
|||
Stock-based compensation expenses |
82,034 |
4,608 |
253,040 |
39,707 |
|||
Others |
968,802 |
(41,287) |
(8,128) |
(1,275) |
|||
Changes in operating assets and liabilities |
|||||||
Accounts and notes receivable |
35,348 |
(245,169) |
113,974 |
17,885 |
|||
Prepaid expenses and other current assets |
(420,382) |
(148,754) |
93,473 |
14,668 |
|||
Accounts and notes payable |
(43,339) |
51,462 |
1,399 |
220 |
|||
Accrued expenses and other payables |
(56,107) |
113,093 |
70,162 |
11,010 |
|||
Deferred revenue |
11,252 |
5,183 |
(12,799) |
(2,008) |
|||
Advances from customers |
413,613 |
8,314 |
53,499 |
8,395 |
|||
Others |
(14,576) |
(89,879) |
(228,871) |
(35,915) |
|||
Net cash generated from operating activities |
283,831 |
134,672 |
663,991 |
104,197 |
|||
CASH FLOWS FROM INVESTING ACTIVITIES |
|||||||
Purchases of property and equipment |
(772,513) |
(650,599) |
(935,772) |
(146,843) |
|||
Purchases of intangible assets |
(4,932) |
(8,466) |
(8,625) |
(1,353) |
|||
Payments for investments |
(1,522,143) |
(391,522) |
(566,460) |
(88,890) |
|||
(Payments for) proceeds from other investing activities |
(12,426) |
(442,027) |
374,013 |
58,691 |
|||
Net cash used in investing activities |
(2,312,014) |
(1,492,614) |
(1,136,844) |
(178,395) |
|||
CASH FLOWS FROM FINANCING ACTIVITIES |
|||||||
Proceeds from bank borrowings |
160,996 |
385,364 |
490,815 |
77,020 |
|||
Repayment of bank borrowings |
(21,500) |
(7,469) |
(141,686) |
(22,234) |
|||
Payments for finance lease |
(87,749) |
(129,699) |
(97,772) |
(15,343) |
|||
Payment for shares repurchase and cancellation |
(130,472) |
- |
- |
- |
|||
Repayment of 2021 Notes |
- |
- |
(1,945,620) |
(305,310) |
|||
(Payments for) proceeds from other financing activities |
(86,209) |
8,204 |
(48,644) |
(7,633) |
|||
Net cash (used in) generated from financing activities |
(164,934) |
256,400 |
(1,742,907) |
(273,500) |
|||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
(144,757) |
11,540 |
(7,255) |
(1,141) |
|||
Net decrease in cash, cash equivalents and restricted cash |
(2,337,874) |
(1,090,002) |
(2,223,015) |
(348,839) |
|||
Cash, cash equivalents and restricted cash at beginning of period |
5,454,311 |
5,021,490 |
3,931,488 |
616,936 |
|||
Cash, cash equivalents and restricted cash at end of period |
3,116,437 |
3,931,488 |
1,708,473 |
268,097 |
|||
View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-fourth-quarter-and-full-year-2021-financial-results-301513953.html
SOURCE