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21Vianet Group, Inc. Reports Unaudited First Quarter 2018 Financial Results

Adjusted EBITDA up 95.5% YoY to RMB196.0 million
Adjusted EBITDA margin expanded to 24.5% from 11.6% in prior year period

BEIJING, May 18, 2018 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq:VNET) ("21Vianet" or the "Company"), a leading carrier-neutral Internet data center services provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2018. The Company will hold a conference call at 8:00 pm on Thursday, May 17, 2018, U.S. Eastern Time to discuss the financial results. Dial-in details are provided at the end of this release.

First Quarter 2018 Financial Highlights (including hosting and related services & MNS1 business)

  • Revenues from hosting and related services increased by 13.3% year over year to RMB800.8 million (US$127.7 million).
  • Adjusted cash gross profit increased by 7.6% year over year to RMB347.5 million (US$55.4 million). Adjusted cash gross margin expanded to 43.4% from 37.5% in the same period of 2017.
  • Operating profit improved to RMB56.4 million from an operating loss of RMB72.1 million in the same period of 2017.
  • Adjusted EBITDA increased by 95.5% year over year to RMB196.0 million (US$31.2 million). Adjusted EBITDA margin expanded to 24.5% from 11.6% in the same period of 2017.
  • Net cash generated from operating activities was RMB95.9 million (US$15.3 million) in the first quarter of 2018 compared to RMB46.4 million in the same period of 2017.

The financial numbers of the same period of 2017 include hosting and related services and MNS business. The year-over-year increase was partially driven by the disposal of the MNS business in September 2017.

/EIN News/ -- First Quarter 2018 Operational Highlights

  • Hosting MRR2 per cabinet increased to RMB7,905 in the first quarter of 2018 compared to RMB7,598 in the first quarter of 2017.
  • Total cabinets under management decreased slightly to 29,035 as of March 31, 2018 from 29,080 as of December 31, 2017. As of March 31, 2018, the Company had 23,839 cabinets in its self-built data centers and 5,196 cabinets in its partnered data centers.
  • Utilization rate was 70.0% in the first quarter of 2018 compared to 75.7% in the fourth quarter of 2017 due to the incremental cabinet capacity the Company delivered at the end of 2017.

__________________

1MNS: Refers to managed network services.
2Hosting MRR: Refers to Monthly Recurring Revenues for the hosting business.

 

Mr. Alvin Wang, Chief Executive Officer and President of the Company, stated, “We entered 2018 with accelerated financial and operating performance in the first quarter. We are pleased to see continued improvement on our results following our successful business restructuring in 2017. During the quarter, the demand for computing and storage capacity from both large and small corporations in China continued to grow. To capitalize on the market opportunities, we further expanded our data center network while maintaining our industry-leading service quality. This not only made us the clear choice of data center providers for our clients, it also made us the ideal partner for world-class technology leaders such as Microsoft Corp. With our long-term partnership with Microsoft, we will continue to improve our capabilities and capacities to deliver localized and customized cloud solutions with optimal user experiences to Chinese customers in the future.”

Ms. Sharon Liu, Chief Financial Officer of the Company, commented, “We are delighted to sustain our strong momentum and deliver another quarter of robust financial growth. In the first quarter of 2018, our revenue from the hosting and related services business increased by 13.3% year over year to RMB800.8 million, exceeding the high end of our previous guidance. More importantly, as a result of our improved operating efficiency, we recorded adjusted EBITDA of RMB196.0 million in the first quarter of 2018, representing a year-over-year increase of 95.5%. As our restructuring strategy to fully focus on our core hosting and related services business continues to prove successful, we expect our growth momentum to carry into the quarters ahead.” 

First Quarter 2018 Financial Results

To fully reflect the Company’s performance, all analysis between “REVENUES” and “ADJUSTED EBITDA” presents only the results of the hosting and related service business. The MNS business, which was disposed of in the third quarter of 2017, is excluded.

REVENUES: Net revenues increased by 13.3% to RMB800.8 million (US$127.7 million) in the first quarter of 2018 from RMB706.7 million in the same period of 2017 and increased by 4.6% from RMB765.8 million in the fourth quarter of 2017. The increase was primarily due to increasing demand from the Company’s new and existing customers.

GROSS PROFIT: Gross profit increased by 10.5% to RMB227.9 million (US$36.3 million) in the first quarter of 2018 from RMB206.3 million in the same period of 2017 and increased by 13.9% from RMB200.2 million in the fourth quarter of 2017. Gross margin decreased slightly to 28.5% in the first quarter of 2018 from 29.2% in the same period of 2017. The decrease was mainly due to an increase in depreciation.

Adjusted cash gross profit, which excludes depreciation, amortization, and share-based compensation expenses, increased by 18.1% to RMB347.5 million (US$55.4 million) in the first quarter of 2018 from RMB 294.3 million in the same period of 2017 and increased by 8.6% from RMB320.1 million in the fourth quarter of 2017. Adjusted cash gross margin expanded to 43.4% in the first quarter of 2018 from 41.6% in the same period of 2017 and 41.8% in the previous quarter. The increase was a result of cabinet resource management. Since the first quarter of 2017, the Company eliminated approximately 1,000 lower-margin cabinets in partnered data centers, bringing the total number of partnered cabinets to 5,196 in the first quarter of 2018 from 6,119 in the same period of 2017.
                                                                                                                                             
OPERATING EXPENSES: Total operating expenses increased by 11.3% to RMB171.5 million (US$27.3 million) in the first quarter of 2018 from RMB154.0 million in the same period of 2017 but decreased by 10.9% compared to the fourth quarter of 2017. The year-over-year fluctuation was mainly caused by the increase of office related expenses and personnel cost. The quarter-over-quarter decrease was mainly caused by expenses incurred and recorded for the disposal of the MNS business in the fourth quarter of 2017.

Adjusted operating expenses, which exclude share-based compensation expenses and changes in the fair value of contingent purchase consideration payable, were RMB167.2 million (US$26.7 million) in the first quarter of 2018 compared to RMB154.1 million in the same period of 2017 and RMB173.2 million in the fourth quarter of 2017. As a percentage of net revenues, adjusted operating expenses decreased to 20.9% in the first quarter of 2018 from 21.8% in the same period of 2017 and 22.6% in the previous quarter. The decrease was primarily due to expense control measures implemented.

Sales and marketing expenses increased by 21.2% to RMB41.2 million (US$6.6 million) in the first quarter of 2018 from RMB34.0 million in the same period of 2017 and decreased from RMB42.7 million in the fourth quarter of 2017.  The year-over-year increase was mainly driven by sales expansion.

Research and development expenses were RMB22.0 million (US$3.5 million) in the first quarter of 2018 compared to RMB22.2 million in the same period of 2017 and RMB29.3 million in the previous quarter. The quarter-over-quarter decrease was mainly due to a drop in headcount and the enhancement of working efficiency.

General and administrative expenses increased by 14.4% to RMB112.3 million (US$17.9 million) in the first quarter of 2018 from RMB98.2 million in the same period of 2017 and decreased from RMB115.4 million in the previous quarter. The year-over-year increase was primarily due to the expansion of the business and the increase of office related expenses.

ADJUSTED EBITDA: Adjusted EBITDA for the first quarter of 2018 increased by 28.3% to RMB196.0 million (US$31.2 million) from RMB152.7 million in the same period of 2017 and increased by 14.6% compared to the previous quarter. Adjusted EBITDA for the first quarter of 2018 excludes share-based compensation expenses of RMB 6.6 million (US$1.0 million) and changes in the fair value of contingent purchase consideration payable, which was a gain of RMB2.3 million (US$0.4 million). Adjusted EBITDA margin expanded to 24.5% in the first quarter of 2018 from 21.6% in the same period of 2017 and 22.3% in the fourth quarter of 2017.

NET PROFIT/LOSS: Net profit for the first quarter of 2018 was RMB34.7 million (US$5.5 million) compared to a net loss of RMB116.8 million in the same period of 2017. The improvement in net profit was mainly driven by the strong performance of the Company’s hosting and related services and its improved operating efficiency following the disposal of the MNS business in September 2017.

PROFIT/LOSS PER SHARE: Diluted profit per share was RMB0.05 (US$0.01) in the first quarter of 2018, which represents the equivalent of RMB0.30 (US$0.06) per American Depositary Share ("ADS"). Each ADS represents six ordinary shares. Diluted profit per share is calculated using net profit divided by the weighted average number of shares.

As of March 31, 2018, the Company's cash and cash equivalents and short-term investments were RMB2.38 billion (US$379.9 million).

Net cash generated from operating activities was RMB95.9 million (US$15.3 million) in the first quarter of 2018.

Recent Developments

On March 14, 2018, the Company announced that it has extended its long-term partnership with Microsoft Corp. to provide world-class public cloud services to Chinese customers.

Financial Outlook

The following forecast reflects the Company’s current and preliminary view on the market and its operational conditions, which is subject to change.

For the second quarter of 2018, the Company expects net revenues to be in the range of RMB810 million to RMB830 million compared to hosting and related service revenues of RMB743 million in the prior year period. Adjusted EBITDA is expected to be in the range of RMB200 million to RMB220 million compared to RMB171 million in the prior year period.

Conference Call

The Company will hold a conference call at 8:00 pm on Thursday, May 17, 2018 U.S. Eastern Time, or 8:00 am on Friday, May 18, 2018 Beijing Time, to discuss the financial results.

               
Participants may access the call by dialing the following numbers:
               
United States Toll Free:             +1-855-500-8701
International:             +65-6713-5440
China Domestic:             400-120-0654
Hong Kong:             +852-3018-6776
Conference ID:             9383759
               
The replay will be accessible through May 25, 2018 by dialing the following numbers:
               
United States Toll Free:             +1-855-452-5696
International:             +61-2-9003-4211
Conference ID:             9383759
               

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 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 RMB6.2726 to US$1.00, the noon buying rate in effect on March 31, 2018 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-neutral Internet data center services provider in China. 21Vianet provides hosting and related services, cloud services, and business VPN services, improving the reliability, security and speed of its customers' Internet infrastructure. Customers may locate their servers and networking equipment in 21Vianet's data centers and connect to China's Internet backbone through 21Vianet's extensive fiber optic network. 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

   
21VIANET GROUP, INC.  
CONSOLIDATED BALANCE SHEETS  
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))  
  As of As of   
December 31, 2017 March 31, 2018  
  RMB  RMB  US$  
  (Audited)  (Unaudited)  (Unaudited)  
Assets        
Current assets:        
Cash and cash equivalents   1,949,631     1,850,440     295,004    
Restricted cash   242,494     254,576     40,585    
Accounts and notes receivable, net   455,811     506,475     80,744    
Short-term investments   548,890     532,689     84,923    
Prepaid expenses and other current assets   934,460     994,780     158,595    
Amount due from related parties   114,256     93,294     14,873    
Total current assets   4,245,542     4,232,254     674,724    
Non-current assets:              
Property and equipment, net   3,319,424     3,282,857     523,365    
Intangible assets, net   401,115     382,416     60,966    
Land use rights, net   163,671     162,713     25,940    
Goodwill   989,530     989,530     157,754    
Long-term investments   510,926     504,679     80,458    
Amount due from related parties   20,210     20,385     3,250    
Restricted cash   3,344     3,221     514    
Deferred tax assets 172,818   157,693   25,140    
Other non-current assets 81,581
  142,036   22,644    
Total non-current assets   5,662,619     5,645,530     900,031    
Total assets   9,908,161     9,877,784     1,574,755    
Liabilities and Shareholders' Equity              
Current liabilities:        
Short-term bank borrowings   50,000     69,999     11,159    
Accounts and notes payable   252,892     293,135     46,733    
Accrued expenses and other payables   657,133     593,652     94,642    
Deferred revenue   55,753     35,248     5,619    
Advances from customers   403,244     477,239     76,083    
Income taxes payable   13,309     28,456     4,537    
Amounts due to related parties   55,675     59,386     9,468    
Current portion of long-term bank borrowings   70,289     70,289     11,206    
Current portion of capital lease obligations   201,315     194,449     31,000    
Current portion of deferred government grant   4,574     4,574     729    
Current portion of bonds payable   11,139     10,939     1,744    
Total current liabilities   1,775,323     1,837,366     292,920    
Non-current liabilities:              
Long-term bank borrowings   187,638     187,638     29,914    
Unrecognized tax benefits   16,511     16,701     2,663    
Deferred tax liabilities   190,873     188,539     30,058    
Non-current portion of capital lease obligations   600,882     611,232     97,445    
Non-current portion of deferred government grant   17,861     16,112     2,569    
Bonds payable   1,918,069     1,848,263     294,657    
Total non-current liabilities   2,931,834     2,868,485     457,306    
Shareholders' equity              
Treasury stock   (337,683 )   (337,683 )   (53,835 )  
Ordinary shares    46     46     7    
Additional paid-in capital   8,980,407     8,991,665     1,433,483    
Accumulated other comprehensive loss   (2,673 )   (77,733 )   (12,392 )  
Statutory reserves   38,736     38,969     6,213    
Accumulated deficit   (3,629,300 )   (3,596,693 )   (573,397 )  
Total 21Vianet Group, Inc. shareholders’ equity   5,049,533     5,018,571     800,079    
Noncontrolling interest   151,471     153,362     24,450    
Total shareholders' equity   5,201,004     5,171,933     824,529    
Total liabilities and shareholders' equity   9,908,161     9,877,784     1,574,755    
               

 

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 
  March 31, 2017 December 31, 2017 March 31, 2018
  RMB RMB RMB US$
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net revenues        
Hosting and related services   706,711     765,814     800,765     127,661  
Managed network services   155,466     -      -      -   
Total net revenues   862,177     765,814     800,765     127,661  
Cost of revenues   (681,700   (565,645   (572,863   (91,328 )
Gross profit   180,477     200,169     227,902     36,333  
Operating expenses        
Sales and marketing   (65,832 )   (42,702 )   (41,232 )   (6,573 )
Research and development   (38,387 )   (29,340 )   (22,030 )   (3,512 )
General and administrative   (135,803 )   (115,351 )   (112,340 )   (17,910 )
(Allowance) reversal for doubtful debt   (15,465 )   (1,147 )   1,855     296  
Changes in the fair value of contingent purchase consideration payable   2,867     (3,834 )   2,284     364  
Total operating expenses   (252,620 )   (192,374 )   (171,463 )   (27,335 )
Operating (loss) profit   (72,143 )   7,795     56,439     8,998  
Interest income   8,252     10,821     8,527     1,359  
Interest expense   (37,027 )   (50,836 )   (51,542 )   (8,217 )
Impairment of long-term investment    -     139     -     -  
Gain on disposal of subsidiaries   -     677,084     -     -  
Other income   4,826     3,260     22,161     3,533  
Other expense   (1,562 )   (232 )   (1,526 )   (243 )
Foreign exchange (loss) gain   (5,481 )   4,328     44,841     7,149  
(Loss) gain before income taxes and gain (loss) from equity method investments   (103,135 )   652,359     78,900     12,579  
Income tax (expenses) benefits   (16,127 )   127,478     (34,080 )   (5,433 )
Gain (loss) from equity method investments   2,425     17,732     (10,089 )   (1,608 )
Net (loss) profit   (116,837 )   797,569     34,731     5,538  
Net loss (profit) attributable to noncontrolling interest   17,043     1,073     (1,891 )   (301 )
Net (loss) profit attributable to ordinary shareholders   (99,794 )   798,642     32,840     5,237  
                 
(Loss) profit per share        
Basic   (0.17 )   1.19     0.05     0.01  
Diluted   (0.17 )   1.18     0.05     0.01  
Shares used in (loss) profit per share computation        
Basic*   678,649,016     671,279,121     672,741,909     672,741,909  
Diluted*   678,649,016     675,505,879     677,158,404     677,158,404  
         
(Loss) profit per ADS (6 ordinary shares equal to 1 ADS)        
Basic (1.02 ) 7.14   0.30   0.06  
Diluted (1.02 ) 7.08   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   
  March 31, 2017 December 31, 2017 March 31, 2018  
  RMB RMB RMB US$  
Gross profit   180,477     200,169     227,902     36,333    
Plus: depreciation and amortization   142,810     119,814     119,562     19,061    
Plus: share-based compensation expenses   (222 )   84     14     2    
Adjusted cash gross profit   323,065     320,067     347,478     55,396    
Adjusted cash gross margin 37.5%   41.8%   43.4%   43.4%    
Operating expenses   (252,620 )   (192,374 )   (171,463 )   (27,335 )  
Plus: share-based compensation expenses   4,545     15,317     6,555     1,045    
Plus: changes in the fair value of contingent purchase consideration payable   (2,867 )   3,834     (2,284 )   (364 )  
Adjusted operating expenses   (250,942 )   (173,223 )   (167,192 )   (26,654 )  
Operating (loss) profit   (72,143 )   7,795     56,439     8,998    
Plus: depreciation and amortization   170,953     143,966     135,290     21,568    
Plus: share-based compensation expenses   4,323     15,401     6,569     1,047    
Plus: changes in the fair value of contingent purchase consideration payable   (2,867 )   3,834     (2,284 )   (364 )  
Adjusted EBITDA   100,266     170,996     196,014     31,249    
Adjusted EBITDA margin 11.6%   22.3%   24.5%   24.5%    
           


21VIANET GROUP, INC.  
SUPPLEMENTARY DISCLOSURE FOR HOSTING AND RELATED SERVICES  
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))  
           
  Three months ended   
  March 31, 2017 December 31, 2017 March 31, 2018  
GAAP Disclosure RMB RMB RMB US$  
Net revenues   706,711     765,814     800,765     127,661    
Cost of revenues   (500,430 )   (565,645 )   (572,863 )   (91,328 )  
Gross profit   206,281     200,169     227,902     36,333    
Sales and marketing   (34,015 )   (42,702 )   (41,232 )   (6,573 )  
Research and development   (22,206 )   (29,340 )   (22,030 )   (3,512 )  
General and administrative   (98,214 )   (115,351 )   (112,340 )   (17,910 )  
(Allowance) reversal for doubtful debt   (2,440 )   (1,147 )   1,855     296    
Changes in the fair value of contingent purchase consideration payable   2,867     (3,834 )   2,284     364    
Total operating expenses   (154,008 )   (192,374 )   (171,463 )   (27,335 )  
Operating profit   52,273     7,795     56,439     8,998    
           
Non-GAAP disclosure          
Gross profit   206,281     200,169     227,902     36,333    
Plus: depreciation and amortization   88,146     119,814     119,562     19,061    
Plus: share-based compensation expenses   (138 )   84     14     2    
Adjusted cash gross profit   294,289     320,067     347,478     55,396    
Adjusted cash gross margin 41.6%   41.8%   43.4%   43.4%    
Operating expenses   (154,008 )   (192,374 )   (171,463 )   (27,335 )  
Plus: share-based compensation expenses   2,819     15,317     6,555     1,045    
Plus: changes in the fair value of contingent purchase consideration payable   (2,867 )   3,834     (2,284 )   (364 )  
Adjusted operating expenses   (154,056 )   (173,223 )   (167,192 )   (26,654 )  
Operating profit   52,273     7,795     56,439     8,998    
Plus: depreciation and amortization   100,633     143,966     135,290     21,568    
Plus: share-based compensation expenses   2,681     15,401     6,569     1,047    
Plus: changes in the fair value of contingent purchase consideration payable   (2,867 )   3,834     (2,284 )   (364 )  
Adjusted EBITDA   152,720     170,996     196,014     31,249    
Adjusted EBITDA margin 21.6%   22.3%   24.5%   24.5%    
           


21VIANET GROUP, INC.  
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS  
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))  
           
   Three months ended   
  March 31,2017 December 31, 2017 March 31, 2018  
   RMB   RMB   RMB   US$   
   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   
CASH FLOWS FROM OPERATING ACTIVITIES           
Net (loss) profit (116,837 ) 797,569   34,731   5,538    
Adjustments to reconcile net (loss) profit to net cash generated from operating activities:           
  Depreciation and amortization 170,953   143,966   135,290   21,568    
  Stock-based compensation expenses 4,323   15,513   6,569   1,047    
  Gain from disposal of subsidiaries -   (677,084 ) -   -    
  Others 15,894   (148,681 ) (47,256 ) (7,535 )  
Changes in operating assets and liabilities           
  Accounts and notes receivable (80,864 ) 32,070   (49,722 ) (7,927 )  
  Prepaid expenses and other current assets (85,428 ) (23,235 ) (92,181 ) (14,696 )  
  Accounts and notes payable 60,490   (38,841 ) 40,243   6,416    
  Accrued expenses and other payables (4,161 ) 92,272   (25,300 ) (4,033 )  
  Deferred revenue (43,074 ) 8,674   (20,505 ) (3,269 )  
  Advances from customers 111,899   (23,683 ) 73,995   11,797    
  Others 13,155   (21,413 ) 39,989   6,375    
Net cash generated from operating activities  46,350   157,127   95,853   15,281    
                   
CASH FLOWS FROM INVESTING ACTIVITIES           
Purchases of property and equipment (99,432 ) (74,603 ) (91,027 ) (14,512 )  
Purchases of intangible assets (9,386 ) (4,062 ) (1,887 ) (301 )  
Payments for investments (207,003 ) (275,766 ) (14,473 ) (2,307 )  
Payments for assets acquisition, net of cash acquired (15,053 ) -   -   -    
Proceeds from other investing activities -   100,000   26,654   4,249    
Net cash used in investing activities  (330,874 ) (254,431 ) (80,733 ) (12,871 )  
                   
CASH FLOWS FROM FINANCING ACTIVITIES           
Net proceeds from issuance of 2020 bonds -   612,723   -   -    
Proceeds from bank borrowings 59,038   -   69,999   11,159    
Repayments of bank borrowings (96,974 ) (1,587,871 ) (50,000 ) (7,971 )  
Payments for capital lease (32,055 ) (67,239 ) (29,287 ) (4,669 )  
Payments for other financing activities (74,523 ) (9,925 ) (19,650 ) (3,132 )  
Net cash used in financing activities  (144,514 ) (1,052,312 ) (28,938 ) (4,613 )  
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash  (17,255 ) (4,967 ) (73,414 ) (11,703 )  
Net decrease in cash, cash equivalents and restricted cash  (446,293 ) (1,154,583 ) (87,232 ) (13,906 )  
Cash, cash equivalents and restricted cash at beginning of period  3,294,523   3,350,052   2,195,469   350,009    
Cash, cash equivalents and restricted cash at end of period  2,848,230   2,195,469   2,108,237   336,103    
                   
Notes:           
The Company adopted Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash on January 1, 2018 and retrospectively adjusted the condensed consolidated statement of cash flows for the three months ended March 31, 2017 and December 31,2017 by excluding the movement of restricted cash of RMB71.6 million and RMB1,619.3 million respectively.  
           



 

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