BEIJING, March 21,
2023 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET)
("VNET" or the "Company"), a leading carrier- and cloud-neutral
internet data center services provider in China, today announced its unaudited financial
results for the fourth quarter and full year ended December 31, 2022.
"We concluded a challenging 2022 with solid fourth quarter
results, achieving meaningful development on a broad scale," said
Jeff Dong, Chief Executive Officer
of VNET. "Amid the macro headwinds, our dual-core strategy
encompassing both the wholesale and retail IDC markets continued to
prove strongly effective. We continued to grow our wholesale
business with two major orders totaling over 100MW, extending the
service contract with one of our largest existing customers in the
fourth quarter and winning a bid for an IDC project with a new
customer recently. On the retail business front, we made decent
progress in expanding our customer base and fueling deeper
collaboration with existing customers as we have been consistently
building out our high-quality service offerings. Heading into 2023,
with a gradual but noticeable economic recovery, we remain
optimistic about the long-term prospects of the IDC industry."
Tim Chen, Chief Financial Officer
of VNET, commented, "We delivered a resilient performance in the
fourth quarter of 2022, with year-over-year revenue growth of 7.7%
and adjusted EBITDA margin of 22.6%. For the full year of 2022, we
achieved our annual cabinet delivery target by adding approximately
8,400 self-built cabinets despite external challenges, which speaks
to our outstanding execution. Looking ahead, we will continue to
execute on our dual-core growth strategy and remain focused on our
core businesses, while continuing to explore more capital resources
to strengthen our financial position."
Fourth Quarter 2022 Financial Highlights
- Net revenues increased by 7.7% to RMB1.88 billion (US$272.7 million) from RMB1.75 billion in the same period of
2021.
- Adjusted cash gross profit (non-GAAP) increased by 3.7% to
RMB740.1 million (US$107.3 million) from RMB713.8 million in the same period of 2021.
Adjusted cash gross margin (non-GAAP) was 39.4%, compared to 40.9%
in the same period of 2021.
- Adjusted EBITDA (non-GAAP) decreased by 8.3% to RMB424.3 million (US$61.5
million) from RMB463.0 million
in the same period of 2021. Adjusted EBITDA margin (non-GAAP) was
22.6%, compared to 26.5% in the same period of 2021.
Full Year 2022 Financial Highlights
- Net revenues increased by 14.1% to RMB7.07 billion (US$1.02 billion) from RMB6.19 billion in the full year of
2021.
- Adjusted cash gross profit (non-GAAP) increased by 8.1% to
RMB2.85 billion (US$412.7 million) from RMB2.63 billion in the full year of 2021.
Adjusted cash gross margin (non-GAAP) was 40.3%, compared to 42.6%
in the full year of 2021.
- Adjusted EBITDA (non-GAAP) increased by 6.8% to RMB1.87 billion (US$ 271.5 million) from
RMB1.75 billion in the full year
of 2021. Adjusted EBITDA margin (non-GAAP) was 26.5%, compared to
28.3% in the full year of 2021.
Fourth Quarter 2022 Operational Highlights
- Total cabinets under management increased by 4,662 in the
fourth quarter of 2022 to reach 87,322 as of December 31, 2022, compared to 78,540 as of
December 31, 2021.
- Cabinets utilized by customers increased by 2,489 in the fourth
quarter of 2022 to reach 48,016 as of December 31, 2022, compared to 45,527 as of
September 30, 2022 and 41,703 as of
December 31, 2021.
- Overall utilization rate of cabinets[1] was 55.0% as
of December 31, 2022, compared to
55.1% as of September 30, 2022 and
53.1% as of December 31, 2021.
- Retail IDC MRR[2] per cabinet increased to
RMB9,371 in the fourth quarter
of 2022, compared to RMB9,287 in the
third quarter of 2022 and RMB9,301 in the fourth quarter of 2021.
|
[1] The overall
utilization rate is calculated by dividing the number of
customer-utilized cabinets by the total cabinets under management
at the end of the period. Before the first quarter of 2022, the
Company used the compound utilization rate, a metric that was
calculated based on the weighted average number of
customer-utilized cabinets over the reported period.
|
|
[2] Retail IDC MRR
refers to Monthly Recurring Revenues for the retail IDC
business.
|
Fourth Quarter 2022 Financial Results
NET REVENUES: Net revenues in the fourth
quarter of 2022 were RMB1.88 billion
(US$272.7 million), representing an
increase of 7.7% from RMB1.75
billion in the same period of 2021. The year-over-year
increase was mainly due to the increased demand from both wholesale
and retail IDC customers, as well as the growth of our cloud and
VPN services.
GROSS PROFIT: Gross profit in the fourth
quarter of 2022 was RMB328.4 million
(US$47.6 million), compared with
RMB380.0 million in the same period
of 2021. Gross margin in the fourth quarter of 2022 was 17.5%,
compared to 21.8% in the same period of 2021.
ADJUSTED CASH GROSS PROFIT, which
excludes depreciation, amortization, and share-based compensation
expenses, was RMB740.1 million
(US$107.3 million) in the fourth
quarter of 2022, compared to RMB713.8 million in the same period of 2021.
Adjusted cash gross margin in the fourth quarter of 2022 was 39.4%,
compared to 40.9% in the same period of 2021.
OPERATING EXPENSES: Total operating expenses in
the fourth quarter of 2022 were RMB345.7 million (US$50.1 million), compared to RMB649.7 million in the same period of 2021. As a
percentage of net revenues, total operating expenses in the fourth
quarter of 2022 were 18.4%, compared to 37.2% in the same period of
2021.
Sales and marketing expenses in the fourth
quarter of 2022 were RMB76.4 million
(US$11.1 million), compared to
RMB85.5 million in the same period of
2021.
Research and development expenses in the
fourth quarter of 2022 were RMB84.1
million (US$12.2 million),
compared to RMB63.0 million in
the same period of 2021.
General and administrative expenses in the
fourth quarter of 2022 were RMB156.2
million (US$22.7 million),
compared to RMB390.9 million in the
same period of 2021.
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
RMB355.4 million (US$51.5 million) in the fourth quarter of 2022,
compared to RMB273.7 million in the
same period of 2021. As a percentage of net revenues, adjusted
operating expenses in the fourth quarter of 2022 were 18.9%,
compared to 15.7% in the same period of 2021.
ADJUSTED EBITDA: Adjusted EBITDA in the fourth
quarter of 2022 was RMB424.3 million
(US$61.5 million), representing a
decrease of 8.3% from RMB463.0 million in the same period of 2021.
Adjusted EBITDA in the fourth quarter of 2022 excluded reverse of
share-based compensation expenses of RMB7.8
million (US$1.1 million).
Adjusted EBITDA margin in the fourth quarter of 2022 was 22.6%,
compared to 26.5% in the same period of 2021.
NET LOSS ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS: Net loss attributable to ordinary
shareholders in the fourth quarter of 2022 was RMB64.2 million (US$9.3
million), compared to a net loss attributable to ordinary
shareholders of RMB27.3 million in
the same period of 2021. Net loss attributable to ordinary
shareholders in the fourth quarter of 2022 included a loss from
changes in the fair value of convertible promissory notes of
RMB48.5 million (US$7.0 million), compared to a gain of
RMB227.8 million in the same period
of 2021.
LOSS PER SHARE: Basic and diluted loss per share
in the fourth quarter of 2022 were both RMB0.07 (US$0.01)
which represented the equivalent of both RMB0.42 (US$0.06)
per American depositary share ("ADS"). Each ADS represents six
Class A ordinary shares. Diluted loss per share is calculated using
adjusted net loss attributable to ordinary shareholders divided by
the weighted average number of diluted shares outstanding.
As of December 31, 2022, the
aggregate amount of the Company's cash, cash equivalents
and restricted cash was RMB2.99 billion (US$433.4 million).
Net cash generated from operating
activities, in the fourth quarter of 2022, was
RMB569.6 million (US$82.6 million), compared to RMB664.0 million in the same period of
2021.
Full Year 2022 Financial Results
NET REVENUES: Net revenues in the full year
of 2022 increased by 14.1% to RMB7.07
billion (US$1.02 billion) from
RMB6.19 billion in the full year of
2021.
GROSS PROFIT: Gross profit in the full year
of 2022 was RMB1.36 billion
(US$196.9 million), representing
a decrease of 5.5% from RMB1.44
billion in the full year of 2021. Gross margin in the full
year of 2022 was 19.2%, compared to 23.2% in the full year of
2021.
ADJUSTED CASH GROSS PROFIT, which
excludes depreciation, amortization, and share-based compensation
expenses, was RMB2.85 billion
(US$412.7 million) in the full
year of 2022, compared to RMB2.63 billion in the full year of 2021.
Adjusted cash gross margin in the full year of 2022 was 40.3%,
compared to 42.6% in the full year of 2021.
OPERATING EXPENSES: Total operating expenses in
the full year of 2022 were RMB1.24 billion (US$179.4 million), compared to RMB1.42 billion in the full year of 2021. As a
percentage of net revenues, total operating expenses in the full
year of 2022 were 17.5%, compared to 22.9% in the full year of
2021.
Sales and marketing expenses in the full year
of 2022 were RMB311.9 million
(US$45.2 million), compared to
RMB255.4 million in the full year of
2021.
Research and development expenses in the full
year of 2022 were RMB306.8 million (US$44.5 million), compared to RMB188.5 million in the full year of
2021.
General and administrative expenses in the
full year of 2022 were RMB642.9
million (US$93.2 million),
compared to RMB842.4 million in the
full year of 2021.
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
RMB1.08 billion (US$156.9 million) in the full year of 2022,
compared to RMB965.7 million in the
full year of 2021. As a percentage of net revenues, adjusted
operating expenses in the full year of 2022 were 15.3%, compared to
15.6% in the full year of 2021.
ADJUSTED EBITDA: Adjusted EBITDA in the full year
of 2022 was RMB1.87 billion
(US$271.5 million), representing an
increase of 6.8% from RMB1.75 billion in the full year of 2021.
Adjusted EBITDA in the full year of 2022 excluded share-based
compensation expenses of RMB118.2
million (US$17.1 million). Adjusted EBITDA margin in
the full year of 2022 was 26.5%, compared to 28.3% in the full year
of 2021.
NET PROFIT/LOSS ATTRIBUTABLE TO ORDINARY
SHAREHOLDERS: Net loss attributable to ordinary
shareholders in the full year of 2022 was RMB776.0 million (US$112.5
million), compared to a net profit attributable to ordinary
shareholders of RMB500.1 million in
the full year of 2021. Net loss attributable to ordinary
shareholders in the full year of 2022 included foreign exchange
loss of RMB523.2 million
(US$75.9 million), compared to a
foreign exchange gain of RMB110.0
million in the full year of 2021.
LOSS PER SHARE: Basic and diluted loss per share
in the full year of 2022 were both RMB0.87 (US$0.13)
which represented the equivalent of both RMB5.22 (US$0.78)
per American depositary share ("ADS"). Each ADS represents six
Class A ordinary shares. Diluted loss per share is calculated using
adjusted net loss attributable to ordinary shareholders divided by
the weighted average number of diluted shares outstanding.
Net cash generated from operating activities in the
full year of 2022 was RMB2.60 billion
(US$377.3 million), compared to
RMB1.39 billion in the full year
of 2021.
Business Outlook
The Company expects net revenues for the full year of 2023 to be
in the range of RMB7,600 million to
RMB7,900 million, representing a
year-over-year growth of 7.6% to 11.8%, and adjusted EBITDA to be
in the range of RMB2,025 million to
RMB2,125 million, representing a
year-over-year growth of 8.1% to 13.5%.
The forecast reflects the Company's current and preliminary
views on the market and its operational conditions, and is subject
to change.
Conference Call
The Company's management will host an earnings conference call
at 9:00 PM U.S. Eastern Time on
Tuesday, March 21, 2023, or
9:00 AM Beijing Time on Wednesday, March 22, 2023.
For participants who wish to join the call, please access the
link provided below to complete the online registration process and
dial in 5 minutes prior to the scheduled call start time.
|
Event Title:
|
|
VNET Fourth Quarter and
Full Year 2022 Earnings Conference Call
|
|
Registration
Link:
|
|
https://register.vevent.com/register/BI709e0aa4469e467db06fa0d18082d4bf
|
Upon registration, each participant will receive a set of
dial-in numbers by location, a personal PIN and an email with
further detailed instructions, which will be used to join the
conference call.
A simultaneous audio webcast and replay of the conference call
will be accessible on the Company's investor relations website
at http://ir.vnet.com.
Non-GAAP Disclosure
In evaluating its business, VNET considers and uses the
following non-GAAP measures defined as non-GAAP financial measures
by the U.S. 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 RMB6.8972 to US$1.00, the noon buying rate in effect on
December 30, 2022, 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 VNET
VNET Group, Inc. is a leading carrier- and cloud-neutral
Internet data center services provider in China. VNET 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 VNET's data centers and connect to
China's internet backbone. VNET
operates in more than 30 cities throughout China, servicing a diversified and loyal base
of over 6,500 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,"
"target," "believes," "estimates" and similar statements. Among
other things, quotations from management in this announcement as
well as VNET's strategic and operational plans contain
forward-looking statements. VNET 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 VNET'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: VNET's goals and strategies; VNET's expansion plans; the
expected growth of the data center services market; expectations
regarding demand for, and market acceptance of, VNET's services;
VNET's expectations regarding keeping and strengthening its
relationships with customers; VNET'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 VNET
provides solutions and services. Further information regarding
these and other risks is included in VNET's reports filed with, or
furnished to, the U.S. 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 VNET undertakes no
duty to update such information, except as required under
applicable law.
Investor Relations Contact:
Xinyuan Liu
Tel: +86 10 8456 2121
Email: ir@vnet.com
|
VNET GROUP,
INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(Amount in
thousands of Renminbi ("RMB") and US dollars
("US$"))
|
|
As
of
|
|
As
of
|
|
December 31,
2021
|
|
December 31,
2022
|
|
RMB
|
|
RMB
|
|
US$
|
|
(Audited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
1,372,481
|
|
2,661,321
|
|
385,855
|
|
Restricted
cash
|
327,767
|
|
327,673
|
|
47,508
|
|
Accounts and
notes receivable, net
|
1,405,997
|
|
1,763,693
|
|
255,711
|
|
Prepaid expenses
and other current assets
|
2,049,911
|
|
2,147,500
|
|
311,361
|
|
Amounts due from
related parties
|
167,967
|
|
152,089
|
|
22,051
|
|
Total current
assets
|
5,324,123
|
|
7,052,276
|
|
1,022,486
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
Property and
equipment, net
|
10,092,419
|
|
11,964,498
|
|
1,734,689
|
|
Intangible
assets, net
|
900,335
|
|
1,497,131
|
|
217,064
|
|
Land use rights,
net
|
337,235
|
|
576,020
|
|
83,515
|
|
Operating lease
right-of-use assets, net
|
2,869,338
|
|
3,503,925
|
|
508,021
|
|
Goodwill
|
1,339,657
|
|
1,364,191
|
|
197,789
|
|
Restricted
cash
|
8,225
|
|
500
|
|
72
|
|
Deferred tax
assets, net
|
168,002
|
|
196,098
|
|
28,432
|
|
Long-term
investments, net
|
98,243
|
|
242,194
|
|
35,115
|
|
Other non-current
assets
|
1,957,462
|
|
551,572
|
|
79,970
|
|
Total
non-current assets
|
17,770,916
|
|
19,896,129
|
|
2,884,667
|
|
Total
assets
|
23,095,039
|
|
26,948,405
|
|
3,907,153
|
|
|
|
|
|
|
|
Liabilities
and Shareholders' Equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Accounts and
notes payable
|
493,506
|
|
713,628
|
|
103,466
|
|
Accrued expenses
and other payables
|
2,298,089
|
|
2,410,479
|
|
349,487
|
|
Advances from
customers
|
1,041,902
|
|
1,157,963
|
|
167,889
|
|
Deferred
revenue
|
55,695
|
|
95,078
|
|
13,785
|
|
Income taxes
payable
|
43,770
|
|
42,017
|
|
6,092
|
|
Amounts due to
related parties
|
8,772
|
|
6,928
|
|
1,004
|
|
Current portion
of long-term borrowings
|
384,158
|
|
484,020
|
|
70,176
|
|
Current portion
of convertible promissory notes
|
-
|
|
537,778
|
|
77,970
|
|
Current portion
of finance lease liabilities
|
244,032
|
|
206,260
|
|
29,905
|
|
Current portion
of deferred government grant
|
2,074
|
|
3,646
|
|
529
|
|
Current portion
of operating lease liabilities
|
607,997
|
|
674,288
|
|
97,763
|
|
Total current
liabilities
|
5,179,995
|
|
6,332,085
|
|
918,066
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
Long-term
borrowings
|
2,215,015
|
|
3,049,856
|
|
442,188
|
|
Convertible
promissory notes
|
4,266,951
|
|
5,859,259
|
|
849,513
|
|
Non-current
portion of finance lease liabilities
|
1,119,751
|
|
1,047,640
|
|
151,894
|
|
Unrecognized tax
benefits
|
77,573
|
|
87,174
|
|
12,639
|
|
Deferred tax
liabilities
|
348,404
|
|
682,580
|
|
98,965
|
|
Non-current
portion of deferred government grant
|
2,294
|
|
2,673
|
|
388
|
|
Non-current
portion of operating lease liabilities
|
2,284,055
|
|
2,905,283
|
|
421,226
|
|
Total
non-current liabilities
|
10,314,043
|
|
13,634,465
|
|
1,976,813
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
Treasury
stock
|
(349,523)
|
|
(349,523)
|
|
(50,676)
|
|
Ordinary
shares
|
60
|
|
60
|
|
9
|
|
Additional
paid-in capital
|
15,198,055
|
|
15,239,926
|
|
2,209,582
|
|
Accumulated other
comprehensive (loss) income
|
(90,443)
|
|
11,022
|
|
1,598
|
|
Statutory
reserves
|
74,462
|
|
77,995
|
|
11,308
|
|
Accumulated
deficit
|
(7,590,382)
|
|
(8,369,868)
|
|
(1,213,517)
|
|
Total VNET
Group, Inc. shareholders' equity
|
7,242,229
|
|
6,609,612
|
|
958,304
|
|
Noncontrolling
interest
|
358,772
|
|
372,243
|
|
53,970
|
|
Total
shareholders' equity
|
7,601,001
|
|
6,981,855
|
|
1,012,274
|
|
Total
liabilities and shareholders' equity
|
23,095,039
|
|
26,948,405
|
|
3,907,153
|
|
|
|
|
|
|
|
VNET GROUP,
INC.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Amount in
thousands of Renminbi ("RMB") and US dollars ("US$") except for
number of shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
December 31,
2021
|
|
September 30,
2022
|
|
December 31,
2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Audited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Net
revenues
|
1,745,440
|
|
1,814,210
|
|
1,880,673
|
|
272,672
|
|
6,189,801
|
|
7,065,232
|
|
1,024,362
|
|
Cost of
revenues
|
(1,365,472)
|
|
(1,497,627)
|
|
(1,552,298)
|
|
(225,062)
|
|
(4,751,771)
|
|
(5,706,976)
|
|
(827,434)
|
|
Gross
profit
|
379,968
|
|
316,583
|
|
328,375
|
|
47,610
|
|
1,438,030
|
|
1,358,256
|
|
196,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other operating
income
|
-
|
|
5,763
|
|
12,965
|
|
1,880
|
|
-
|
|
60,013
|
|
8,701
|
|
Sales and
marketing
|
(85,474)
|
|
(80,245)
|
|
(76,363)
|
|
(11,072)
|
|
(255,400)
|
|
(311,917)
|
|
(45,224)
|
|
Research and
development
|
(63,037)
|
|
(73,350)
|
|
(84,137)
|
|
(12,199)
|
|
(188,489)
|
|
(306,842)
|
|
(44,488)
|
|
General and
administrative
|
(390,935)
|
|
(165,436)
|
|
(156,228)
|
|
(22,651)
|
|
(842,354)
|
|
(642,945)
|
|
(93,218)
|
|
(Allowance)
reversal for doubtful debt
|
(1,028)
|
|
3,096
|
|
(41,983)
|
|
(6,087)
|
|
(18,399)
|
|
(35,409)
|
|
(5,134)
|
|
Impairment of
loan receivable to potential investee
|
9
|
|
-
|
|
-
|
|
-
|
|
(2,807)
|
|
-
|
|
-
|
|
Impairment of
long-lived assets
|
(109,267)
|
|
-
|
|
-
|
|
-
|
|
(109,267)
|
|
-
|
|
-
|
|
Total
operating expenses
|
(649,732)
|
|
(310,172)
|
|
(345,746)
|
|
(50,129)
|
|
(1,416,716)
|
|
(1,237,100)
|
|
(179,363)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) profit
|
(269,764)
|
|
6,411
|
|
(17,371)
|
|
(2,519)
|
|
21,314
|
|
121,156
|
|
17,565
|
|
Interest
income
|
8,937
|
|
9,455
|
|
8,756
|
|
1,270
|
|
31,897
|
|
31,574
|
|
4,578
|
|
Interest
expense
|
(75,363)
|
|
(78,733)
|
|
(72,923)
|
|
(10,573)
|
|
(334,950)
|
|
(273,305)
|
|
(39,626)
|
|
Impairment of
long-term investment
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,495)
|
|
-
|
|
-
|
|
Other
income
|
22,137
|
|
2,169
|
|
6,872
|
|
996
|
|
33,923
|
|
17,328
|
|
2,512
|
|
Other
expenses
|
(3,498)
|
|
(3,174)
|
|
(22,380)
|
|
(3,245)
|
|
(22,700)
|
|
(26,599)
|
|
(3,856)
|
|
Changes in the
fair value of convertible promissory notes
|
227,843
|
|
13,179
|
|
(48,510)
|
|
(7,033)
|
|
829,149
|
|
22,626
|
|
3,280
|
|
Foreign exchange
gain (loss)
|
82,444
|
|
(317,157)
|
|
89,048
|
|
12,911
|
|
110,036
|
|
(523,235)
|
|
(75,862)
|
|
(Loss) gain
before income taxes and (loss) gain
from equity method investments
|
(7,264)
|
|
(367,850)
|
|
(56,508)
|
|
(8,193)
|
|
665,174
|
|
(630,455)
|
|
(91,409)
|
|
Income tax
expenses
|
(15,549)
|
|
(55,717)
|
|
(101)
|
|
(15)
|
|
(111,407)
|
|
(133,464)
|
|
(19,350)
|
|
(Loss) gain from
equity method investments
|
(1,729)
|
|
(384)
|
|
(828)
|
|
(120)
|
|
(38,666)
|
|
1,925
|
|
279
|
|
Net (loss)
profit
|
(24,542)
|
|
(423,951)
|
|
(57,437)
|
|
(8,328)
|
|
515,101
|
|
(761,994)
|
|
(110,480)
|
|
Net gain
attributable to noncontrolling interest
|
(2,736)
|
|
(1,260)
|
|
(6,807)
|
|
(987)
|
|
(15,003)
|
|
(13,958)
|
|
(2,024)
|
|
Net (loss)
profit attributable to the Company's
ordinary shareholders
|
(27,278)
|
|
(425,211)
|
|
(64,244)
|
|
(9,315)
|
|
500,098
|
|
(775,952)
|
|
(112,504)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(0.03)
|
|
(0.48)
|
|
(0.07)
|
|
(0.01)
|
|
0.57
|
|
(0.87)
|
|
(0.13)
|
|
Diluted
|
(0.28)
|
|
(0.48)
|
|
(0.07)
|
|
(0.01)
|
|
(0.36)
|
|
(0.87)
|
|
(0.13)
|
|
Shares used in
(loss) profit per share computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic*
|
867,823,835
|
|
888,443,329
|
|
888,327,554
|
|
888,327,554
|
|
865,352,554
|
|
886,817,620
|
|
128,576,469
|
|
Diluted*
|
901,823,836
|
|
888,443,329
|
|
888,327,554
|
|
888,327,554
|
|
911,591,433
|
|
886,817,620
|
|
128,576,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit per
ADS (6 ordinary shares equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(0.18)
|
|
(2.88)
|
|
(0.42)
|
|
(0.06)
|
|
3.42
|
|
(5.22)
|
|
(0.78)
|
|
Diluted
|
(1.68)
|
|
(2.88)
|
|
(0.42)
|
|
(0.06)
|
|
(2.16)
|
|
(5.22)
|
|
(0.78)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Shares used in
(loss) profit per share/ADS computation were computed under
weighted average method.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VNET GROUP,
INC.
|
|
RECONCILIATIONS OF GAAP AND NON-GAAP
RESULTS
|
|
(Amount in
thousands of Renminbi ("RMB") and US dollars
("US$"))
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
December 31,
2021
|
|
September 30,
2022
|
|
December 31, 2022
|
|
December 31,
2021
|
|
December 31,
2022
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Gross
profit
|
379,968
|
|
316,583
|
|
328,375
|
|
47,610
|
|
1,438,030
|
|
1,358,256
|
|
196,929
|
|
Plus:
depreciation and amortization
|
329,929
|
|
388,217
|
|
409,825
|
|
59,419
|
|
1,182,114
|
|
1,487,438
|
|
215,658
|
|
Plus: share-based
compensation expenses
|
3,932
|
|
2,876
|
|
1,893
|
|
274
|
|
13,713
|
|
563
|
|
82
|
|
Adjusted cash
gross profit
|
713,829
|
|
707,676
|
|
740,093
|
|
107,303
|
|
2,633,857
|
|
2,846,257
|
|
412,669
|
|
Adjusted
cash gross margin
|
40.9 %
|
|
39.0 %
|
|
39.4 %
|
|
39.4 %
|
|
42.6 %
|
|
40.3 %
|
|
40.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
(649,732)
|
|
(310,172)
|
|
(345,746)
|
|
(50,129)
|
|
(1,416,716)
|
|
(1,237,100)
|
|
(179,363)
|
|
Plus: share-based
compensation expenses
|
249,108
|
|
32,355
|
|
(9,684)
|
|
(1,404)
|
|
306,297
|
|
117,607
|
|
17,051
|
|
Plus:
compensation for postcombination
employment in an acquisition
|
17,644
|
|
2,685
|
|
-
|
|
-
|
|
32,603
|
|
37,398
|
|
5,422
|
|
Plus: impairment
of loan receivable to
potential investee
|
(9)
|
|
-
|
|
-
|
|
-
|
|
2,807
|
|
-
|
|
-
|
|
Plus: impairment
of long-lived assets
|
109,267
|
|
-
|
|
-
|
|
-
|
|
109,267
|
|
-
|
|
-
|
|
Adjusted
operating expenses
|
(273,722)
|
|
(275,132)
|
|
(355,430)
|
|
(51,533)
|
|
(965,742)
|
|
(1,082,095)
|
|
(156,890)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
(269,764)
|
|
6,411
|
|
(17,371)
|
|
(2,519)
|
|
21,314
|
|
121,156
|
|
17,566
|
|
Plus:
depreciation and amortization
|
352,784
|
|
410,988
|
|
449,469
|
|
65,167
|
|
1,267,578
|
|
1,595,942
|
|
231,390
|
|
Plus: share-based
compensation expenses
|
253,040
|
|
35,231
|
|
(7,791)
|
|
(1,130)
|
|
320,010
|
|
118,170
|
|
17,133
|
|
Plus:
compensation for postcombination
employment in an acquisition
|
17,644
|
|
2,685
|
|
-
|
|
-
|
|
32,603
|
|
37,398
|
|
5,422
|
|
Plus: impairment
of loan receivable to
potential investee
|
(9)
|
|
-
|
|
-
|
|
-
|
|
2,807
|
|
-
|
|
-
|
|
Plus: impairment
of long-lived assets
|
109,267
|
|
-
|
|
-
|
|
-
|
|
109,267
|
|
-
|
|
-
|
|
Adjusted
EBITDA
|
462,962
|
|
455,315
|
|
424,307
|
|
61,518
|
|
1,753,579
|
|
1,872,666
|
|
271,511
|
|
Adjusted
EBITDA margin
|
26.5 %
|
|
25.1 %
|
|
22.6 %
|
|
22.6 %
|
|
28.3 %
|
|
26.5 %
|
|
26.5 %
|
|
VNET GROUP,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
(Amount in
thousands of Renminbi ("RMB") and US dollars
("US$"))
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
December 31,
2021
|
|
September 30,
2022
|
|
December 31,
2022
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
CASH FLOWS
FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net
loss
|
(24,542)
|
|
(423,951)
|
|
(57,437)
|
|
(8,328)
|
|
Adjustments to
reconcile net loss to net cash generated from operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
352,784
|
|
410,988
|
|
449,469
|
|
65,167
|
|
Share-based compensation
expenses
|
253,040
|
|
35,231
|
|
(7,791)
|
|
(1,130)
|
|
Others
|
(8,128)
|
|
436,876
|
|
131,774
|
|
19,105
|
|
Changes in
operating assets and liabilities
|
|
|
|
|
|
|
|
|
Accounts and notes
receivable
|
113,974
|
|
64,291
|
|
(109,803)
|
|
(15,920)
|
|
Prepaid expenses and other
current assets
|
93,473
|
|
84,574
|
|
175,880
|
|
25,500
|
|
Accounts and notes
payable
|
1,399
|
|
(47,279)
|
|
65,879
|
|
9,552
|
|
Accrued expenses and other
payables
|
70,162
|
|
158,009
|
|
108,598
|
|
15,745
|
|
Deferred
revenue
|
(12,799)
|
|
20,086
|
|
(774)
|
|
(112)
|
|
Advances from
customers
|
53,499
|
|
(33,711)
|
|
(46,355)
|
|
(6,721)
|
|
Others
|
(228,871)
|
|
(97,697)
|
|
(139,873)
|
|
(20,280)
|
|
Net cash
generated from operating activities
|
663,991
|
|
607,417
|
|
569,567
|
|
82,578
|
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchases of
property and equipment
|
(935,772)
|
|
(563,546)
|
|
(898,459)
|
|
(130,264)
|
|
Purchases of
intangible assets
|
(8,625)
|
|
(16,976)
|
|
(17,132)
|
|
(2,484)
|
|
Payments for
investments
|
(566,460)
|
|
(36,631)
|
|
(209,998)
|
|
(30,447)
|
|
Proceeds from
(payments for) other investing activities
|
374,013
|
|
2,670
|
|
(207,794)
|
|
(30,127)
|
|
Net cash used
in investing activities
|
(1,136,844)
|
|
(614,482)
|
|
(1,333,383)
|
|
(193,322)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from
bank borrowings
|
490,815
|
|
273,169
|
|
156,912
|
|
22,750
|
|
Repayment of bank
borrowings
|
(141,686)
|
|
(73,070)
|
|
(56,390)
|
|
(8,176)
|
|
Payments for
finance lease
|
(97,772)
|
|
(116,896)
|
|
(65,886)
|
|
(9,553)
|
|
Repayment of 2021
Notes
|
(1,945,620)
|
|
-
|
|
-
|
|
-
|
|
Payments for
other financing activities
|
(48,644)
|
|
(10,438)
|
|
(23,625)
|
|
(3,425)
|
|
Net cash (used
in) generated from financing activities
|
(1,742,907)
|
|
72,765
|
|
11,011
|
|
1,596
|
|
|
|
|
|
|
|
|
|
Effect of
foreign exchange rate changes on cash, cash equivalents and
restricted cash
|
(7,255)
|
|
74,119
|
|
(13,774)
|
|
(1,996)
|
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
(2,223,015)
|
|
139,818
|
|
(766,579)
|
|
(111,144)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
3,931,488
|
|
3,616,255
|
|
3,756,073
|
|
544,579
|
|
Cash, cash
equivalents and restricted cash at end of
period
|
1,708,473
|
|
3,756,073
|
|
2,989,494
|
|
433,435
|
View original
content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-fourth-quarter-and-full-year-2022-financial-results-301777513.html
SOURCE VNET Group, Inc.