Connect with us

Technology

VNET Reports Unaudited First Quarter 2024 Financial Results

Published

on

BEIJING, May 29, 2024 /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 first quarter ended March 31, 2024.

“2024 is off to a promising start thanks to continued strong execution of our dual-core, high-quality development strategy during the first quarter,” said Josh Sheng Chen, Founder, Co-chairperson and interim Chief Executive Officer of VNET. “Our IDC business gained momentum as we won bids from new and existing customers and captured increasing AI-driven demand from a wide variety of industries. Notably, we secured a new order from one of our esteemed existing clients for approximately 15MW, scheduled to be completed within 2024. For our wholesale IDC business, capacity in service reached 332MW as of the end of the first quarter with the utilization rate increasing to 71.0%. Looking ahead, we will continue to leverage our reliable IDC services, high power density deployment capabilities, and loyal and expanding customer base to drive quality growth while advancing the development of China’s digital economy.”

Qiyu Wang, Chief Financial Officer of VNET, commented, “We kicked off 2024 with solid first quarter results. Our total revenues for the first quarter increased by 5.1% year-over-year to RMB1.9 billion, driven by the 59.1% year-over-year increase in wholesale revenues. As we move through 2024, our focus will remain on high-quality growth and seizing market opportunities arising from the AI boom, while delivering sustainable, long-term value to our stakeholders.” 

First Quarter 2024 Financial Highlights

Net revenues increased by 5.1% to RMB1.90 billion (US$262.9 million) from RMB1.81 billion in the same period of 2023.Net revenues from the IDC business[1] increased by 5.2% to RMB1.28 billion (US$177.9 million) from RMB1.22 billion in the same period of 2023.Net revenues from the wholesale IDC business (“wholesale revenues”) increased by 59.1% to RMB361.0 million (US$50.0 million) from RMB226.9 million in the same period of 2023.Net revenues from the retail IDC business (“retail revenues”) decreased by 7.1% to RMB923.7 million (US$127.9 million) from RMB994.8 million in the same period of 2023.Net revenues from the non-IDC business[2] increased by 5.0% to RMB613.5 million (US$85.0 million) from RMB584.1 million in the same period of 2023.Adjusted cash gross profit (non-GAAP) increased by 1.5% to RMB765.5 million (US$106.0 million) from RMB754.3 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) was 40.3%, compared with 41.8% in the same period of 2023.Adjusted EBITDA (non-GAAP) decreased by 2.9% to RMB539.8 million (US$74.8 million) from RMB556.2 million in the same period of 2023. Adjusted EBITDA margin (non-GAAP) was 28.4%, compared with 30.8% in the same period of 2023.

First Quarter 2024 Operational Highlights

Wholesale IDC Business[3]

Capacity in service was 332MW as of March 31, 2024, compared with 332MW as of December 31, 2023, and 224MW as of March 31, 2023. Capacity under construction was 139MW as of March 31, 2024.Capacity utilized by customers reached 236MW as of March 31, 2024, compared with 219MW as of December 31, 2023, and 116MW as of March 31, 2023. The sequential increase during the first quarter of 2024 was 17MW, which was mainly contributed by N-OR06, N-HB03 and E-JS03 data centers.Utilization rate[4] of wholesale capacity was 71.0% as of March 31, 2024, compared with 65.8% as of December 31, 2023, and 51.7% as of March 31, 2023.Utilization rate of mature wholesale capacity[5] was 94.6% as of March 31, 2024, compared with 95.0% as of December 31, 2023, and 96.0% as of March 31, 2023.Utilization rate of ramp-up wholesale capacity[6] was 33.6% as of March 31, 2024, compared with 19.7% as of December 31, 2023, and 25.8% as of March 31, 2023.Total capacity committed[7] was 326MW as of March 31, 2024, compared with 326MW as of December 31, 2023, and 180MW as of March 31, 2023.Commitment rate[8] for capacity in service was 98.1% as of March 31, 2024, compared with 98.1% as of December 31, 2023 and 80.0% as of March 31, 2023.Total capacity pre-committed[9] was 104MW and pre-commitment rate[10] for capacity under construction was 74.5% as of March 31, 2024.

Retail IDC Business[11]

Capacity in service was 52,068 cabinets as of March 31, 2024, compared with 52,233 cabinets as of December 31, 2023, and 54,105 cabinets as of March 31, 2023.Capacity utilized by customers reached 33,312 cabinets as of March 31, 2024, compared with 33,450 cabinets as of December 31, 2023, and 33,671 cabinets as of March 31, 2023.Utilization rate of retail capacity was 64.0% as of March 31, 2024, compared with 64.0% as of December 31, 2023, and 62.2% as of March 31, 2023.Utilization rate of mature retail capacity[12] was 72.8% as of March 31, 2024, compared with 73.2% as of December 31, 2023, and 74.1% as of March 31, 2023.Utilization rate of ramp-up retail capacity[13] was 13.0% as of March 31, 2024, compared with 10.8% as of December 31, 2023, and 14.4% as of March 31, 2023.Monthly recurring revenue (MRR) per retail cabinet was RMB8,742 in the first quarter of 2024, compared with RMB8,759 in the fourth quarter of 2023 and RMB8,874 in the first quarter of 2023.

[1] IDC business refers to managed hosting services, consisting of the wholesale IDC business and the retail IDC business. Beginning in the first quarter of 2024, our IDC business was subdivided into wholesale IDC business and retail IDC business according to the nature and scale of our data center projects. Prior to 2024, the subdivision was based on customer contract types.

[2] Non-IDC business consists of cloud services and VPN services.

[3] For wholesale IDC business, certain projects hosted in E-JS02 data center with an aggregate of 27MW capacity were excluded and are expected to be continuously excluded from in-service wholesale due to pending commercial discussion with the client. Such projects were included as in-service wholesale from the first quarter of 2021 to the fourth quarter of 2023, given such projects had been delivered to the client based on the terms of MOU.

[4] Utilization rate is calculated by dividing utilized capacity by customers by the capacity in service.

[5] Mature wholesale capacity refers to wholesale data centers in which utilization rate is at or above 80%.

[6] Ramp-up wholesale capacity refers to wholesale data centers in which utilization rate is below 80%.

[7] Total capacity committed is the capacity committed to customers pursuant to customer agreements remaining in effect.

[8] Commitment rate is calculated by total capacity committed divided by total capacity in service.

[9] Total capacity pre-committed is the capacity under construction which is pre-committed to customers pursuant to customer agreements remaining in effect.

[10] Pre-commitment rate is calculated by total capacity pre-committed divided by total capacity under construction.

[11] For retail IDC business, since the first quarter of 2024, we have excluded certain number of reserved cabinets from the capacity in service. Reserved cabinets refer to those that have not been utilized on a large scale, those that are planned to be closed, or those that are planned to be further upgraded. As of March 31, 2023, December 31, 2023, and March 31, 2024, 4,406, 4,426, and 4,426 reserved cabinets, respectively, were excluded from the calculation of utilization rate of retail IDC business capacity.

[12] Mature retail capacity refers to retail data centers that came into service prior to the past 24 months.

[13] Ramp-up retail capacity refers to retail data centers that came into service within the past 24 months, or mature retail data centers that have undergone improvements within the past 24 months.

First Quarter 2024 Financial Results

NET REVENUES: Net revenues in the first quarter of 2024 were RMB1.90 billion (US$262.9 million), representing an increase of 5.1% from RMB1.81 billion in the same period of 2023. The year-over-year increase was mainly driven by the continued growth of our core businesses.

Net revenues from IDC business increased by 5.2% to RMB1.28 billion (US$177.9 million) from RMB1.22 billion in the same period of 2023. The year-over-year increase was mainly driven by an increase in wholesale revenues and partially offset by a decrease in retail revenues.

Wholesale revenues increased by 59.1% to RMB361.0 million (US$50.0 million) from RMB226.9 million in the same period of 2023.Retail revenues decreased to RMB923.7 million (US$127.9 million) from RMB994.8 million in the same period of 2023.

Net revenues from non-IDC business increased by 5.0% to RMB613.5 million (US$85.0 million) from RMB584.1 million in the same period of 2023. The year-over-year increase was driven by cloud and VPN businesses.

GROSS PROFIT: Gross profit in the first quarter of 2024 was RMB410.7 million (US$56.9 million), representing an increase of 16.6% from RMB352.4 million in the same period of 2023. Gross margin in the first quarter of 2024 was 21.6%, compared with 19.5% in the same period of 2023. The year-over-year increase was primarily attributable to a reduction in depreciation expense due to the change in the estimated useful lives of property and equipment starting from January 1, 2024.

ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation, amortization, and share-based compensation expenses, was RMB765.5 million (US$106.0 million) in the first quarter of 2024, compared with RMB754.3 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) in the first quarter of 2024 was 40.3%, compared with 41.8% in the same period of 2023, mainly due to higher utility costs.

OPERATING EXPENSES: Total operating expenses in the first quarter of 2024 were RMB364.3 million (US$50.5 million), compared with RMB237.1 million in the same period of 2023. The increase in operating expenses was primarily due to an increase in share-based compensation resulted from the newly granted RSUs, an increase in professional fees, and partially offset by a decrease in staff cost.

Sales and marketing expenses were RMB71.7 million (US$9.9 million) in the first quarter of 2024, compared with RMB65.8 million in the same period of 2023.

Research and development expenses were RMB75.4 million (US$10.4 million) in the first quarter of 2024, compared with RMB79.8 million in the same period of 2023.

General and administrative expenses were RMB226.3 million (US$31.3 million) in the first quarter of 2024, compared with RMB127.4 million in the same period of 2023.

ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude depreciation, amortization, and share-based compensation expenses, were RMB252.6 million (US$35.0 million) in the first quarter of 2024, compared with RMB228.8 million in the same period of 2023. As a percentage of net revenues, adjusted operating expenses (non-GAAP) in the first quarter of 2024 were 13.3%, compared with 12.7% in the same period of 2023.

ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the first quarter of 2024 was RMB539.8 million (US$74.8 million), representing a decrease of 2.9% from RMB556.2 million in the same period of 2023. Adjusted EBITDA margin (non-GAAP) in the first quarter of 2024 was 28.4%, compared with 30.8% in the same period of 2023.

NET INCOME/LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the first quarter of 2024 was RMB187.0 million (US$25.9 million), compared with a net income attributable to VNET Group, Inc. of RMB82.3 million in the same period of 2023. The year-over-year decrease was mainly due to a one-off recognition of the 2026 Convertible Notes transaction costs due to early redemption, as well as an increase in share-based compensation.

LOSS PER SHARE: Basic and diluted loss per share in the first quarter of 2024 were both RMB2.65 (US$0.12), equivalent to both RMB15.88 (US$0.72) 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.

LIQUIDITY: As of March 31, 2024, the aggregate amount of the Company’s cash and cash equivalents as well as restricted cash was RMB2.09 billion (US$289.5 million).

Total short-term debt consisting of short-term bank borrowings and the current portion of long-term borrowings was RMB1.32 billion (US$183.3 million). Total long-term debt was RMB8.04 billion (US$1.11 billion), comprised of long-term borrowings of RMB6.27 billion (US$868.0 million) and convertible promissory notes of RMB1.77 billion (US$245.6 million).

Net cash generated from operating activities in the first quarter of 2024 was RMB267.6 million (US$37.1 million), compared with RMB455.0 million in the same period of 2023. During the first quarter of 2024, the Company obtained new debt financing, refinancing facilities and other financings of RMB1.86 billion (US$258.0 million). On February 1, 2024, the Company completed the repurchase of the Convertible Senior Notes due 2026, in the aggregate principal amount of US$600 million.

Business Outlook

The Company expects total net revenues for 2024 to be between RMB7,800 million to RMB8,000 million, representing year-over-year growth of 5.2% to 7.9%, and adjusted EBITDA (non-GAAP) to be in the range of RMB2,220 million to RMB2,280 million, representing year-over-year growth of 8.9% to 11.8%. The above outlook remains unchanged from the previously provided estimates.

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 Wednesday, May 29, 2024, or 9:00 AM Beijing Time on Thursday, May 30, 2024.

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 First Quarter 2024 Earnings Conference Call 
Registration Link:                  https://register.vevent.com/register/BI823805f3c9104a07a8ce0fba728fff87

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 RMB7.2203 to US$1.00, the noon buying rate in effect on March 29, 2024, 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 7,500 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 liquidity conditions; 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 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, 2023

March 31, 2024

 RMB 

 RMB 

 US$ 

 Assets 

 Current assets: 

 Cash and cash equivalents 

2,243,537

1,782,732

246,906

 Restricted cash 

2,854,568

306,312

42,424

 Accounts and notes receivable, net 

1,715,975

1,948,129

269,813

 Short-term Investments 

356,820

 Prepaid expenses and other current assets 

2,375,341

2,481,588

343,695

 Amounts due from related parties 

277,237

317,717

44,003

 Total current assets 

9,823,478

6,836,478

946,841

 Non-current assets: 

 Property and equipment, net 

13,024,393

13,778,444

1,908,292

 Intangible assets, net 

1,383,406

1,361,055

188,504

 Land use rights, net 

602,503

597,906

82,809

 Operating lease right-of-use assets, net 

4,012,329

4,042,957

559,943

 Restricted cash 

882

882

122

 Deferred tax assets, net 

247,644

254,358

35,228

 Long-term investments, net 

757,949

760,552

105,335

 Other non-current assets 

533,319

516,582

71,546

 Total non-current assets 

20,562,425

21,312,736

2,951,779

 Total assets 

30,385,903

28,149,214

3,898,620

 Liabilities and Shareholders’ Equity 

 Current liabilities: 

 Short-term bank borrowings 

30,000

477,749

66,167

 Accounts and notes payable 

696,177

773,845

107,176

 Accrued expenses and other payables 

2,783,102

2,928,158

405,545

 Advances from customers 

1,605,247

1,594,157

220,788

 Deferred revenue 

95,477

101,103

14,003

 Income taxes payable 

35,197

54,071

7,489

 Amounts due to related parties 

356,080

381,524

52,840

 Current portion of long-term borrowings 

723,325

845,831

117,146

 Current portion of finance lease liabilities  

115,806

95,668

13,250

 Current portion of deferred government grants 

8,062

11,328

1,569

 Current portion of operating lease liabilities  

780,164

821,000

113,707

 Convertible promissory notes 

4,208,495

 Total current liabilities 

11,437,132

8,084,434

1,119,680

 Non-current liabilities: 

 Long-term borrowings 

5,113,521

6,266,916

867,958

 Convertible promissory notes 

1,769,946

1,773,055

245,565

 Non-current portion of finance lease liabilities  

1,159,525

1,147,268

158,895

 Unrecognized tax benefits 

98,457

98,457

13,636

 Deferred tax liabilities 

688,362

693,898

96,104

 Deferred government grants 

145,112

143,862

19,925

 Non-current portion of operating lease liabilities 

3,270,759

3,292,955

456,069

 Derivative liability 

188,706

185,180

25,647

 Total non-current liabilities 

12,434,388

13,601,591

1,883,799

 Shareholders’ equity 

 Ordinary shares  

107

109

15

 Additional paid-in capital 

17,291,312

17,403,894

2,410,411

 Accumulated other comprehensive loss 

(14,343)

(20,623)

(2,856)

 Statutory reserves 

80,615

80,615

11,165

 Accumulated deficit 

(11,016,323)

(11,203,328)

(1,551,643)

 Treasury stock 

(326,953)

(325,425)

(45,071)

 Total VNET Group, Inc. shareholders’ equity 

6,014,415

5,935,242

822,021

 Noncontrolling interest 

499,968

527,947

73,120

 Total shareholders’ equity 

6,514,383

6,463,189

895,141

 Total liabilities and shareholders’ equity 

30,385,903

28,149,214

3,898,620

 

 

 

 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  

March 31, 2023

December 31, 2023

March 31, 2024

 RMB 

 RMB 

 RMB 

 US$ 

 Net revenues 

1,805,782

1,898,480

1,898,126

262,887

 Cost of revenues 

(1,453,402)

(1,607,602)

(1,487,405)

(206,003)

 Gross profit 

352,380

290,878

410,721

56,884

 Operating income (expenses) 

 Operating income 

33,379

32,293

3,949

547

 Sales and marketing expenses 

(65,776)

(73,286)

(71,743)

(9,936)

 Research and development expenses 

(79,750)

(80,671)

(75,389)

(10,441)

 General and administrative expenses 

(127,447)

(148,455)

(226,297)

(31,342)

 Reversal of (allowance for) doubtful debt 

2,449

(361,471)

5,175

717

 Impairment of long-lived assets 

(506,686)

 Impairment of goodwill 

(1,364,191)

 Total operating expenses 

(237,145)

(2,502,467)

(364,305)

(50,455)

 Operating profit (loss) 

115,235

(2,211,589)

46,416

6,429

 Interest income 

5,681

13,196

12,129

1,680

 Interest expense 

(69,786)

(78,877)

(137,682)

(19,069)

 Impairment of long-term investments 

(51)

 Other income 

1,164

4,452

4,814

667

 Other expenses 

(3,592)

(1,199)

(1,422)

(197)

 Changes in the fair value of financial liabilities 

21,298

(187,648)

3,858

534

 Foreign exchange gain (loss) 

78,633

89,426

(28,361)

(3,928)

 Income (loss) before income taxes and (loss) gain

   from equity method investments 

148,633

(2,372,290)

(100,248)

(13,884)

 Income tax expenses 

(44,886)

(50,626)

(61,384)

(8,502)

 (Loss) gain from equity method investments 

(174)

(372)

2,606

361

 Net income (loss) 

103,573

(2,423,288)

(159,026)

(22,025)

 Net profit attributable to noncontrolling interest 

(21,280)

(19,500)

(27,979)

(3,875)

 Net income (loss) attributable to VNET Group, Inc. 

82,293

(2,442,788)

(187,005)

(25,900)

 Earnings (loss) per share 

 Basic 

0.09

(2.65)

(0.12)

(0.02)

 Diluted 

0.07

(2.65)

(0.12)

(0.02)

 Shares used in earnings (loss) per share computation 

 Basic* 

888,383,240

923,034,050

1,568,300,360

1,568,300,360

 Diluted* 

1,056,829,494

923,034,050

1,568,300,360

1,568,300,360

Earnings (loss) per ADS (6 ordinary shares equal to 1 ADS)

Basic

0.54

(15.88)

(0.72)

(0.12)

Diluted

0.42

(15.88)

(0.72)

(0.12)

 * Shares used in earnings (loss) 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  

March 31, 2023

December 31, 2023

March 31, 2024

 RMB 

 RMB 

 RMB 

 US$ 

 Gross profit 

352,380

290,878

410,721

56,884

 Plus: depreciation and amortization 

401,877

450,859

352,604

48,835

 Plus: share-based compensation expenses 

2,190.00

303

 Adjusted cash gross profit 

754,257

741,737

765,515

106,022

 Adjusted cash gross margin 

41.8 %

39.1 %

40.3 %

40.3 %

 Operating expenses 

(237,145)

(2,502,467)

(364,305)

(50,456)

 Plus: share-based compensation expenses 

8,336

9,479

111,681

15,468

 Plus: allowance of loan receivables 

287,900

 Plus: impairment of long-lived assets 

506,686

 Plus: impairment of goodwill 

1,364,191

 Adjusted operating expenses 

(228,809)

(334,211)

(252,624)

(34,988)

 Operating (loss) profit 

115,235

(2,211,589)

46,416

6,429

 Plus: depreciation and amortization

432,629

483,579

379,551

52,567

 Plus: share-based compensation expenses 

8,336

9,479

113,871

15,771

 Plus: allowance of loan receivables 

287,900

 Plus: impairment of long-lived assets 

506,686

 Plus: impairment of goodwill 

1,364,191

 Adjusted EBITDA 

556,200

440,246

539,838

74,767

 Adjusted EBITDA margin 

30.8 %

23.2 %

28.4 %

28.4 %

 

 

 

 VNET GROUP, INC. 

 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 

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

 Three months ended  

March 31, 2023

December 31, 2023

March 31, 2024

 RMB 

 RMB 

 RMB 

 US$ 

 CASH FLOWS FROM OPERATING ACTIVITIES 

 Net income (loss) 

103,573

(2,423,288)

(159,026)

(22,025)

 Adjustments to reconcile net income (loss) to net cash generated from operating activities: 

     Depreciation and amortization 

431,654

481,067

377,086

52,226

     Share-based compensation expenses 

8,336

9,479

113,871

15,771

     Others 

62,631

2,333,785

137,297

19,015

 Changes in operating assets and liabilities 

     Accounts and notes receivable 

(254,293)

311,035

(226,973)

(31,435)

     Prepaid expenses and other current assets 

(378,933)

(9,076)

(44,104)

(6,108)

     Accounts and notes payable 

(3,377)

(76,250)

77,668

10,757

     Accrued expenses and other payables 

192,063

68,523

56,105

7,770

     Deferred revenue 

24,139

(24,005)

5,626

779

     Advances from customers 

405,945

31,500

(11,090)

(1,536)

     Others 

(136,727)

27,910

(58,873)

(8,154)

 Net cash generated from operating activities 

455,011

730,680

267,587

37,060

 CASH FLOWS FROM INVESTING ACTIVITIES 

 Purchases of property and equipment 

(608,717)

(1,017,474)

(1,005,368)

(139,242)

 Purchases of intangible assets 

(2,312)

(20,188)

(5,965)

(826)

 (Payments for) proceeds from investments 

(346,056)

359,239

49,754

 (Payments for) proceeds from other investing activities 

(90,489)

(18,217)

1,154

160

 Net cash used in investing activities 

(701,518)

(1,401,935)

(650,940)

(90,154)

 CASH FLOWS FROM FINANCING ACTIVITIES 

 Proceeds from borrowings 

279,916

638,706

1,156,279

160,143

 Repayments of borrowings 

(73,070)

(85,640)

(51,441)

(7,124)

 Proceeds from issuance of ordinary shares  

2,122,123

 Repurchase of 2026 Convertible Notes 

(4,262,340)

(590,327)

 Payment for finance leases  

(84,882)

(28,482)

(39,602)

(5,485)

 Proceeds from other financing activities  

395,096

110,967

591,446

81,914

 Net cash generated from (used in) financing activities 

517,060

2,757,674

(2,605,658)

(360,879)

 Effect of foreign exchange rate changes on cash, cash
     equivalents and restricted cash  

(17,205)

(11,645)

(20,050)

(2,777)

 Net increase (decrease) in cash, cash equivalents and
     restricted cash 

253,348

2,074,774

(3,009,061)

(416,750)

 Cash, cash equivalents and restricted cash at beginning of

     period 

2,989,494

3,024,214

5,098,987

706,202

 Cash, cash equivalents and restricted cash at end of period 

3,242,842

5,098,988

2,089,926

289,452

 

View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-first-quarter-2024-financial-results-302158594.html

SOURCE VNET Group, Inc.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

Higer New V Series, Leading Bus New Trend

Published

on

By

SUZHOU, China, Dec. 24, 2024 /CNW/ — In November 2024, Higer New V Series buses officially launched in the Philippines, this batch of electric buses was the first batch of new energy buses introduced by the Philippines and put into commercial operation. And it has aroused extensive attentions and heated discussions from the Philippines local government, media and people.

Higer New V Series products were launched globally in March 2024, and then made a stunning debut at the Higer Global Partners Conference. The New V-series products with a new shape and a new platform are committed to creating new classic models with high quality, high safety and high intelligence.

In 3 years, more than 1000 people participated in the process of R&D, a one-time investment of more than 100 million yuan was made in the R&D and manufacturing of key components, equipment, tooling, molds, inspection tools, verification of components and vehicle, achieving comprehensive innovation, realizing a significant improvement in product quality and reliability, maintenance convenience and customer experience. Measuring from 8 to 13 meters in length, they can be powered by fossil fuels, electricity, hydrogen, etc. and are readily adaptable for the tourist transportation market, urban public transportation market, etc. The luggage compartment volume is 21.6% greater than similar products, the seating space is 50mm larger, and the middle aisle is 30mm wider. The overall component universality rate was greatly improved by the platform, modular, and universal design concept, and the number of component types decreased by 58%.

It is worth mentioning that Higer is committed to creating a technological experience, redefining the domain-centralized electronic and electrical architecture, and Higer launched the industry’s first mass-produced intelligent cabin. It will help the driver concentrate on driving. The new model provides a mobile phone control interface, drivers and tour guides can control lighting, multimedia, air conditioning, etc. through app. In addition, the intelligent cabin can be customized according to the operational needs of the transport company, realizing intelligent dispatching, intelligent charging, intelligent maintenance, AI interaction, and human-computer interaction.

So far, Higer new V series coaches have already received orders from more than 20 countries like Italy, Qatar, UAE, Saudi Arabia, Algeria and etc., showing a fast rising popularity in the international market.

Higer new V series are committed to providing customers with new “classic models” with better quality, higher efficiency, achieving sustainable development and exploring more possibilities.

View original content to download multimedia:https://www.prnewswire.com/news-releases/higer-new-v-series-leading-bus-new-trend-302339047.html

SOURCE HIGER

Continue Reading

Technology

European Wellness Biomedical Group Announces New Klotho Research Initiative Led by Prof. Mike Chan

Published

on

By

HEIDELBERG, Germany, Dec. 25, 2024 /PRNewswire/ — European Wellness Biomedical Group (EWBG) has launched a new research initiative focused on Klotho, a protein with transformative potential in longevity medicine. Led by Professor Dr. Mike Chan, this project will explore Klotho’s role in combating age-related diseases and its ability to regenerate critical organs, including the brain, kidneys, and heart.

Klotho, identified in 1997, is emerging as a key protein in longevity and regenerative medicine. It plays a pivotal role in regulating oxidative stress, mineral metabolism, and inflammation. The research will investigate how boosting Klotho levels could help address chronic conditions like neurodegenerative diseases, kidney failure, and heart disease, ultimately improving healthspan and extending lifespan.

“Klotho represents the next frontier in longevity medicine,” said Professor Mike Chan, Chief Scientist at EWBG. “Our research aims to understand how Klotho affects aging and how we can use it to treat chronic diseases that have long been associated with aging.”

Research Focus Areas

The new initiative will focus on three primary research areas:

Neurological health: Investigating Klotho’s neuroprotective effects and its potential to slow cognitive decline in diseases like Alzheimer’s and Parkinson’s.Kidney function: Examining Klotho’s role in regulating mineral metabolism and its regenerative potential in treating chronic kidney disease (CKD).Cardiovascular health: Studying Klotho’s influence on vascular function and its ability to prevent vascular calcification, a key contributor to heart disease.

This research builds on existing collaborations at EWBG, where leading scientists focus on advancing Klotho-based therapies for regenerative health.

Klotho: A Potential Breakthrough in Longevity Medicine

Klotho is gaining attention for its ability to regenerate tissues and reverse damage caused by age-related diseases. Unlike NAD+, which primarily enhances cellular metabolism and energy production, Klotho offers a broader range of therapeutic applications, including tissue regeneration, cognitive function improvement, and cardiovascular health.

As we age, Klotho levels naturally decline, leading to conditions such as cognitive decline, heart disease, and kidney failure. Research suggests that restoring Klotho levels can reverse the effects of oxidative stress, inflammation, and cellular senescence, offering new treatment possibilities for a range of age-related diseases.

Professor Mike Chan: Leading the Charge in Klotho Research

Professor Mike Chan, a leading expert in stem cell therapy and longevity medicine, is spearheading this groundbreaking initiative at EWBG. His extensive experience in bio-regenerative medicine positions him as a key figure in exploring Klotho’s potential to revolutionize the treatment of age-related diseases. Through FCTI, a subsidiary of EWBG, Professor Chan and his team are developing therapies that combine stem cell technology and Klotho proteins to stimulate tissue regeneration in the brain, kidneys, and heart.

“By harnessing Klotho’s regenerative properties, we hope to address chronic conditions that were previously untreatable,” said Professor Chan. “Our ultimate goal is to improve quality of life and provide lasting solutions for those affected by aging-related diseases.”

The Future of Klotho in Longevity Medicine

The future of Klotho-based therapies looks promising, with Professor Mike Chan and EWBG at the forefront of this innovative field. As more research is conducted, Klotho is expected to play a pivotal role in advancing longevity medicine, offering a new approach to treating aging and chronic diseases. The potential applications of Klotho are vast, from neurodegenerative disease treatment to kidney regeneration and cardiovascular health.

With strong research partnerships, significant funding, and ongoing clinical trials, Klotho is poised to become a cornerstone of longevity medicine, transforming how we approach aging and disease. Professor Mike Chan’s leadership ensures that this promising protein will soon offer new hope to those seeking longer, healthier lives.

Photo – https://mma.prnewswire.com/media/2587407/Prof_Dr_Mike_Chan_talks_growing_importance_Klotho_anti_aging_medicine.jpg

Logo – https://mma.prnewswire.com/media/2362609/EW_COLOR_Logo.jpg

View original content:https://www.prnewswire.co.uk/news-releases/european-wellness-biomedical-group-announces-new-klotho-research-initiative-led-by-prof-mike-chan-302338980.html

Continue Reading

Technology

Apas Port Launches $20M Vehicle Loan Initiative with HARVEST FLOW on Plume Network to Empower Financial Inclusion in Emerging Countries, Starting in Cambodia

Published

on

By

NEW YORK, Dec. 24, 2024 /PRNewswire/ — Apas Port Co., Ltd., a Tokyo-based Web3 company dedicated to deploying “kando”—a Japanese term for deep emotional engagement—into the digital realm, has announced the launch of HARVEST FLOW, a social impact-driven cryptocurrency lending platform. Committed to “social action”ーdelivering stable returns alongside meaningful social impact, HARVEST FLOW’s inaugural project is a $20 million initiative offering loans to TukTuk and four-wheel vehicle drivers in Cambodia who don’t have access to the financial system. This venture is set to operate on Plume Network, the leading Layer 1 blockchain specialized in Real-World Asset Finance (RWAfi), offering the necessary infrastructure to transform HARVEST FLOW’s vision of financial inclusion into scalable action.

Bridging Real-World Challenges Through Blockchain Innovation

HARVEST FLOW’s mission is to empower underserved communities and small businesses by granting access to affordable financing solutions. By leveraging blockchain technology, the platform addresses critical societal issues such as poverty alleviation and economic development, creating pathways for stable financial growth while delivering measurable social impact.

The initial focus of this initiative is to provide affordable financing options for TukTuk and four-wheel vehicle drivers in Cambodia—vital tools for local livelihoods. The project not only supports job creation but also enhances financial inclusion in emerging economies.

Why Plume Network?

As the first fully integrated L1 modular blockchain tailored for RWAfi, Plume Network provides the foundation for scalable, secure, and transparent financial ecosystems. With over 180 projects onboarded in its private devnet, Plume enables seamless tokenization and distribution of RWAs through its composable, EVM-compatible infrastructure.

How Plume Powers HARVEST FLOW:

End-to-End Tokenization: Streamlines the conversion of vehicle loans into blockchain-based assets.Investor Transparency: Advanced tools to track and visualize the social and financial impact of investments.Global Scalability: Infrastructure designed to handle the growing demands of HARVEST FLOW’s multi-region projects.DeFi Integration: Unlocks liquidity through decentralized finance primitives within the Plume ecosystem.

IoT-Backed Innovation for Loan Security

HARVEST FLOW’s projects are uniquely supported by embedded IoT technology within TukTuk engines, ensuring an exceptionally low loan default rate while building investor confidence.

Justin Chen, Head of Asset Strategy at Plume Network, noted: “This project highlights the power of combining blockchain and IoT devices to create innovative financial products that drive real-world impact. We’re excited to see HARVEST FLOW’s success on Plume and the positive change it will bring to the urban motility market in Southeast Asia.”

Looking Ahead

Starting with the vehicle mobility sector through 2025, HARVEST FLOW plans to expand into other sectors addressing social challenges and needs beyond 2026. This approach aims to ensure sustainable growth while delivering meaningful societal benefits, powered by Plume’s blockchain technology.

Masaki Minamide, director of HARVEST FLOW, stated: “Plume’s infrastructure empowers us to amplify our impact and support communities in need while offering our investors transparent and reliable returns. With this launch, we continue our mission to combine blockchain technology with meaningful social action.”

For more information, visit Plume Network or contact press@plumenetwork.xyz.

About Plume Network
Plume is the first fully integrated L1 modular blockchain focused on RWAfi, offering a composable, EVM-compatible environment for onboarding and managing diverse RWAs. With 180+ projects on its private devnet, Plume provides an end-to-end tokenization engine and a network of financial infrastructure partners, simplifying asset onboarding and enabling seamless DeFi integration for RWAs.

About HARVEST FLOW
Founded in April 2023, Apas Port Co., Ltd. is a Web3 production company with a mission to deploy “kando” (deep emotional impact) globally. The company leverages blockchain technology to connect carefully curated content with a co-creative community, acting as a “passport” to a new world of Web3 experiences.

X: https://x.com/HarvestFlow_io
Website: https://www.harvestflow.io/

View original content to download multimedia:https://www.prnewswire.com/news-releases/apas-port-launches-20m-vehicle-loan-initiative-with-harvest-flow-on-plume-network-to-empower-financial-inclusion-in-emerging-countries-starting-in-cambodia-302339001.html

SOURCE Plume Network

Continue Reading

Trending