Technology

VNET Reports Unaudited Second Quarter 2024 Financial Results

Published

4 weeks ago

August 27, 2024

BEIJING, Aug. 27, 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 second quarter ended June 30, 2024.

“We delivered another solid quarter through continued strong execution of our effective dual-core development strategy,” said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET. “The wholesale IDC business remained our key growth driver, highlighted by three new orders totaling 235MW for our Ulanqab IDC Campus in the Greater Beijing Area. Climbing utilization rates and a high pre-commitment rate for capacity under construction demonstrate our reliable, high-quality IDC services’ enduring customer appeal in the competitive market. Furthermore, we advanced our AI data center development with steady progress on our green, high-tech Ulanqab IDC Campus, enabling us to seamlessly meet the increasing AI-driven demand. Going forward, we will continue to strengthen our innovative service offerings, vast high-power density resources and diverse AI-related capabilities to drive our healthy development and create value for all of our stakeholders.”

Qiyu Wang, Chief Financial Officer of VNET, commented, “In the second quarter, we remained focused on high-quality revenue businesses while enhancing efficiency and profitability, tactics that continued to yield positive outcomes. Our total net revenues increased by 9.4% year over year to RMB1.99 billion, mainly driven by wholesale revenue growth of 81% year over year, while operating expenses decreased by 7.7% year over year and 36.8% quarter over quarter. Our adjusted EBITDA also grew by 7.3% year over year to RMB573.8 million. In addition, we recorded a net income of RMB71.8 million in the second quarter, a significant improvement from the net loss of RMB159.0 million in the first quarter of 2024, representing a quarter over quarter increase of RMB230.9 million, thanks to our consistent operational improvements. Supported by our robust business fundamentals and healthy cash position, we will continue to invest in our core capabilities and AI-driven opportunities, propelling high-quality, sustainable growth.”

Second Quarter 2024 Financial Highlights

Total net revenues increased by 9.4% to RMB1.99 billion (US$274.4 million) from RMB1.82 billion in the same period of 2023.Net revenues from the IDC business[1] increased by 12.1% to RMB1.37 billion (US$188.1 million) from RMB1.22 billion in the same period of 2023.Net revenues from the wholesale IDC business (“wholesale revenues”) increased by 81.0% to RMB402.0 million (US$55.3 million) from RMB222.1 million in the same period of 2023.Net revenues from the retail IDC business (“retail revenues”) decreased by 3.2% to RMB964.8 million (US$132.8 million) from RMB996.6 million in the same period of 2023.Net revenues from the non-IDC business[2] increased by 4.0% to RMB627.0 million (US$86.3 million) from RMB603.1 million in the same period of 2023.Adjusted cash gross profit (non-GAAP) increased by 6.0% to RMB787.3 million (US$108.3 million) from RMB742.9 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) was 39.5%, compared with 40.8% in the same period of 2023.Adjusted EBITDA (non-GAAP) increased by 7.3% to RMB573.8 million (US$79.0 million) from RMB535.0 million in the same period of 2023. Adjusted EBITDA margin (non-GAAP) was 28.8%, compared with 29.4% in the same period of 2023.Net income increased by RMB309.4 million and RMB230.9 million to RMB71.8 million (US$9.9 million) in the second quarter, compared with a net loss of RMB237.6 million in the same period of 2023 and a net loss of RMB159.0 million in the first quarter of 2024, respectively.

Second Quarter 2024 Operational Highlights

Wholesale IDC Business[3]

Capacity in service was 332MW as of June 30, 2024, compared with 332MW as of March 31, 2024, and 224MW as of June 30, 2023. Capacity under construction was 279MW as of June 30, 2024.Capacity utilized by customers reached 252MW as of June 30, 2024, compared with 236MW as of March 31, 2024, and 142MW as of June 30, 2023. The sequential increase during the second quarter of 2024 was 16MW, which was mainly contributed by E-JS Campus 02 C data center.Utilization rate[4] of wholesale capacity was 75.9% as of June 30, 2024, compared with 71.0% as of March 31, 2024, and 63.4% as of June 30, 2023.Utilization rate of mature wholesale capacity[5] was 94.9% as of June 30, 2024, compared with 94.6% as of March 31, 2024, and 94.2% as of June 30, 2023.Utilization rate of ramp-up wholesale capacity[6] was 45.7% as of June 30, 2024, compared with 33.6% as of March 31, 2024, and 39.9% as of June 30, 2023.Total capacity committed[7] was 326MW as of June 30, 2024, compared with 326MW as of March 31, 2024, and 194MW as of June 30, 2023.Commitment rate[8] for capacity in service was 98.1% as of June 30, 2024, compared with 98.1% as of March 31, 2024 and 86.7% as of June 30, 2023.Total capacity pre-committed[9] was 238MW and pre-commitment rate[10] for capacity under construction was 85.5% as of June 30, 2024.

Retail IDC Business[11]

Capacity in service was 52,177 cabinets as of June 30, 2024, compared with 52,068 cabinets as of March 31, 2024, and 53,702 cabinets as of June 30, 2023.Capacity utilized by customers reached 33,253 cabinets as of June 30, 2024, compared with 33,312 cabinets as of March 31, 2024, and 33,320 cabinets as of June 30, 2023.Utilization rate of retail capacity was 63.7% as of June 30, 2024, compared with 64.0% as of March 31, 2024, and 62.0% as of June 30, 2023.Utilization rate of mature retail capacity[12] was 72.5% as of June 30, 2024, compared with 72.8% as of March 31, 2024, and 73.5% as of June 30, 2023.Utilization rate of ramp-up retail capacity[13] was 12.7% as of June 30, 2024, compared with 13.0% as of March 31, 2024, and 16.3% as of June 30, 2023.Monthly recurring revenue (MRR) per retail cabinet was RMB8,753 in the second quarter of 2024, compared with RMB8,742 in the first quarter of 2024 and RMB8,931 in the second 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 our 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 that such projects had been delivered to the client based on the terms of the MOU.

[4] Utilization rate is calculated by dividing capacity utilized 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 a 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 June 30, 2023, March 31, 2024, and June 30, 2024, 4,426, 4,426, and 4,150 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.

Second Quarter 2024 Financial Results

TOTAL NET REVENUES: Total net revenues in the second quarter of 2024 were RMB1.99 billion (US$274.4 million), representing an increase of 9.4% from RMB1.82 billion in the same period of 2023. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business.

Net revenues from IDC business increased by 12.1% to RMB1.37 billion (US$188.1 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 81.0% to RMB402.0 million (US$55.3 million) from RMB222.1 million in the same period of 2023.Retail revenues decreased to RMB964.8 million (US$132.8 million) from RMB996.6 million in the same period of 2023.

Net revenues from non-IDC business increased by 4.0% to RMB627.0 million (US$86.3 million) from RMB603.1 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 second quarter of 2024 was RMB424.9 million (US$58.5 million), representing an increase of 24.0% from RMB342.7 million in the same period of 2023. Gross margin in the second quarter of 2024 was 21.3%, compared with 18.8% 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 RMB787.3 million (US$108.3 million) in the second quarter of 2024, compared with RMB742.9 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) in the second quarter of 2024 was 39.5%, compared with 40.8% in the same period of 2023.

OPERATING EXPENSES: Total operating expenses in the second quarter of 2024 were RMB230.3 million (US$31.7 million), compared with RMB249.5 million in the same period of 2023. The decrease in operating expenses was primarily due to a decrease in professional service fees and personnel costs.

Sales and marketing expenses were RMB58.2 million (US$8.0 million) in the second quarter of 2024, compared with RMB63.1 million in the same period of 2023.

Research and development expenses were RMB62.0 million (US$8.5 million) in the second quarter of 2024, compared with RMB81.1 million in the same period of 2023.

General and administrative expenses were RMB107.3 million (US$14.8 million) in the second quarter of 2024, compared with RMB128.0 million in the same period of 2023.

ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses, were RMB243.2 million (US$33.5 million) in the second quarter of 2024, compared with RMB241.5 million in the same period of 2023. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the second quarter of 2024 were 12.2%, compared with 13.3% in the same period of 2023.

ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the second quarter of 2024 was RMB573.8 million (US$79.0 million), representing an increase of 7.3% from RMB535.0 million in the same period of 2023. Adjusted EBITDA margin (non-GAAP) in the second quarter of 2024 was 28.8%, compared with 29.4% in the same period of 2023.

NET INCOME/LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net income attributable to VNET Group, Inc. in the second quarter of 2024 was RMB63.7 million (US$8.8 million), compared with a net loss attributable to VNET Group, Inc. of RMB232.9 million in the same period of 2023. The year-over-year increase was mainly due to our consistent operational improvement and decreases in sales and marketing expenses, research and development expenses, general and administrative expenses and foreign exchange loss.

EARNINGS PER SHARE: Basic and diluted earnings per share in the second quarter of 2024 were both RMB0.04 (US$0.01), equivalent to both RMB0.24 (US$0.06) per American depositary share (“ADS”). Each ADS represents six Class A ordinary shares. Diluted earnings per share is calculated using adjusted net income attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

LIQUIDITY: As of June 30, 2024, the aggregate amount of the Company’s cash and cash equivalents, restricted cash and short-term investments was RMB2.22 billion (US$306.0 million).

Total short-term debt consisting of short-term bank borrowings and the current portion of long-term borrowings was RMB1.67 billion (US$230.1 million). Total long-term debt was RMB8.45 billion (US$1.16 billion), comprised of long-term borrowings of RMB6.67 billion (US$917.7 million) and convertible promissory notes of RMB1.78 billion (US$245.1 million).

Net cash generated from operating activities in the second quarter of 2024 was RMB405.2 million (US$55.8 million), compared with RMB423.5 million in the same period of 2023. During the second quarter of 2024, the Company obtained new debt financing, refinancing facilities and other financings of RMB1.45 billion (US$199.3 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 Tuesday, August 27, 2024, or 9:00 AM Beijing Time on Wednesday, August 28, 2024.

For participants who wish to join the call, please access the links provided below to complete the online registration process.

English line:
https://s1.c-conf.com/diamondpass/10041484-y4obcl.html

Chinese line (listen-only mode):
https://s1.c-conf.com/diamondpass/10041485-qdkvjp.html

Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call.

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.vnet.com.

A replay of the conference call will be accessible through September 4, 2024, by dialing the following numbers:

US/Canada:

1 855 883 1031

Mainland China:

400 1209 216

Hong Kong, China:

800 930 639

International:

+61 7 3107 6325

Replay PIN (English line):

10041484

Replay PIN (Chinese line):

10041485

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 RMB7.2672 to US$1.00, the noon buying rate in effect on June 28, 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

December 31, 2023

June 30, 2024

RMB

US$

Assets

Current assets:

Cash and cash equivalents

2,243,537

1,796,105

247,152

Restricted cash

2,854,568

338,846

46,627

Accounts and notes receivable, net

1,715,975

1,802,572

248,042

Short-term investments

356,820

87,871

12,091

Prepaid expenses and other current assets

2,375,341

2,673,585

367,898

Amounts due from related parties

277,237

345,408

47,530

Total current assets

9,823,478

7,044,387

969,340

Non-current assets:

Property and equipment, net

13,024,393

14,281,580

1,965,211

Intangible assets, net

1,383,406

1,340,625

184,476

Land use rights, net

602,503

593,309

81,642

Operating lease right-of-use assets, net

4,012,329

4,384,000

603,258

Restricted cash

882

121

Deferred tax assets, net

247,644

285,199

39,245

Long-term investments, net

757,949

816,423

112,344

Other non-current assets

533,319

372,144

51,209

Total non-current assets

20,562,425

22,074,162

3,037,506

Total assets

30,385,903

29,118,549

4,006,846

Liabilities and Shareholders’ Equity

Current liabilities:

Short-term bank borrowings

30,000

562,270

77,371

Accounts and notes payable

696,177

726,827

100,015

Accrued expenses and other payables

2,783,102

2,717,898

373,995

Advances from customers

1,605,247

1,530,852

210,652

Deferred revenue

95,477

87,103

11,986

Income taxes payable

35,197

61,930

8,522

Amounts due to related parties

356,080

379,070

52,162

Current portion of long-term borrowings

723,325

1,110,202

152,769

Current portion of finance lease liabilities

115,806

95,687

13,167

Current portion of deferred government grants

8,062

10,311

1,419

Current portion of operating lease liabilities

780,164

860,446

118,401

Convertible promissory notes

4,208,495

–

Total current liabilities

11,437,132

8,142,596

1,120,459

Non-current liabilities:

Long-term borrowings

5,113,521

6,668,842

917,663

Convertible promissory notes

1,769,946

1,781,082

245,085

Non-current portion of finance lease liabilities

1,159,525

1,142,194

157,171

Unrecognized tax benefits

98,457

13,548

Deferred tax liabilities

688,362

698,162

96,070

Deferred government grants

145,112

260,876

35,898

Non-current portion of operating lease liabilities

3,270,759

3,596,438

494,886

Derivative liability

188,706

185,297

25,498

Total non-current liabilities

12,434,388

14,431,348

1,985,819

Shareholders’ equity

Ordinary shares

107

109

Additional paid-in capital

17,291,312

17,260,924

2,375,182

Accumulated other comprehensive loss

(14,343)

(20,084)

(2,764)

Statutory reserves

80,615

11,093

Accumulated deficit

(11,016,323)

(11,139,653)

(1,532,867)

Treasury stock

(326,953)

(173,427)

(23,864)

Total VNET Group, Inc. shareholders’ equity

6,014,415

6,008,484

826,795

Noncontrolling interest

499,968

536,121

73,773

Total shareholders’ equity

6,514,383

6,544,605

900,568

Total liabilities and shareholders’ equity

30,385,903

29,118,549

4,006,846

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

Six months ended

June 30, 2023

March 31, 2024

June 30, 2024

June 30, 2023

June 30, 2024

RMB

US$

RMB

US$

Net revenues

1,821,744

1,898,126

1,993,760

274,351

3,627,526

3,891,886

535,541

Cost of revenues

(1,478,995)

(1,487,405)

(1,568,865)

(215,883)

(2,932,397)

(3,056,270)

(420,557)

Gross profit

342,749

410,721

424,895

58,468

695,129

835,616

114,984

Operating income (expenses)

Operating income

13,895

3,949

–

47,274

3,949

543

Sales and marketing expenses

(63,068)

(71,743)

(58,225)

(8,012)

(128,844)

(129,968)

(17,884)

Research and development expenses

(81,126)

(75,389)

(61,998)

(8,531)

(160,876)

(137,387)

(18,905)

General and administrative expenses

(128,017)

(226,297)

(107,297)

(14,765)

(255,464)

(333,594)

(45,904)

Reversal of (allowance for) doubtful debt

8,833

5,175

(2,753)

(379)

11,282

2,422

333

Total operating expenses

(249,483)

(364,305)

(230,273)

(31,687)

(486,628)

(594,578)

(81,817)

Operating profit

93,266

46,416

194,622

26,781

208,501

241,038

33,167

Interest income

10,038

12,129

5,449

750

15,719

17,578

2,419

Interest expense

(71,709)

(137,682)

(92,172)

(12,683)

(141,495)

(229,854)

(31,629)

Other income

14,192

4,814

30,475

4,193

15,356

35,289

4,856

Other expenses

(320)

(1,422)

(6,900)

(949)

(3,912)

(8,322)

(1,145)

Changes in the fair value of financial liabilities

154

3,858

712

21,452

4,570

629

Foreign exchange loss

(271,630)

(28,361)

(4,387)

(604)

(192,997)

(32,748)

(4,506)

(Loss) income before income taxes
and gain from equity method investments

(226,009)

(100,248)

127,799

17,586

(77,376)

27,551

3,791

Income tax expenses

(12,545)

(61,384)

(59,149)

(8,139)

(57,431)

(120,533)

(16,586)

Gain from equity method investments

983

2,606

3,199

440

809

5,805

799

Net (loss) income

(237,571)

(159,026)

71,849

9,887

(133,998)

(87,177)

(11,996)

Net loss (income) attributable to noncontrolling interest

4,692

(27,979)

(8,174)

(1,125)

(16,588)

(36,153)

(4,975)

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

(232,879)

(187,005)

63,675

8,762

(150,586)

(123,330)

(16,971)

(Loss) earnings per share

Basic

(0.26)

(0.12)

0.04

0.01

(0.17)

(0.08)

(0.01)

Diluted

(0.26)

(0.12)

0.04

0.01

(0.19)

(0.08)

(0.01)

Shares used in (loss) earnings per share
computation

Basic*

888,705,981

1,568,300,360

1,594,662,099

888,555,145

1,581,481,229

Diluted*

888,705,981

1,568,300,360

1,595,517,338

905,386,636

1,581,481,229

(Loss) earnings per ADS (6 ordinary shares equal to 1 ADS)

Basic

(1.56)

(0.72)

0.24

0.06

(1.02)

(0.48)

(0.06)

Diluted

(1.56)

(0.72)

0.24

0.06

(1.14)

(0.48)

(0.06)

* Shares used in (loss) earnings 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

Six months ended

June 30, 2023

March 31, 2024

June 30, 2024

June 30, 2023

June 30, 2024

RMB

US$

RMB

US$

Gross profit

342,749

410,721

424,895

58,468

695,129

835,616

114,985

Plus: depreciation and amortization

400,173

352,604

364,616

50,173

802,050

717,220

98,693

Plus: share-based compensation expenses

–

2,190

(2,190)

(301)

–

Adjusted cash gross profit

742,922

765,515

787,321

108,340

1,497,179

1,552,836

213,678

Adjusted cash gross margin

40.8 %

40.3 %

39.5 %

41.3 %

39.9 %

Operating expenses

(249,483)

(364,305)

(230,273)

(31,687)

(486,628)

(594,578)

(81,817)

Plus: share-based compensation expenses

8,006

111,681

(12,962)

(1,784)

16,342

98,719

13,584

Adjusted operating expenses

(241,477)

(252,624)

(243,235)

(33,471)

(470,286)

(495,859)

(68,233)

Operating profit

93,266

46,416

194,622

26,781

208,501

241,038

33,168

Plus: depreciation and amortization

433,735

379,551

394,334

54,262

866,364

773,885

106,490

Plus: share-based compensation expenses

8,006

113,871

(15,152)

(2,085)

16,342

98,719

13,584

Adjusted EBITDA

535,007

539,838

573,804

78,958

1,091,207

1,113,642

153,242

Adjusted EBITDA margin

29.4 %

28.4 %

28.8 %

30.1 %

28.6 %

VNET GROUP, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

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

Three months ended

June 30, 2023

March 31, 2024

June 30, 2024

RMB

US$

CASH FLOWS FROM OPERATING ACTIVITIES

Net (loss) income

(237,571)

(159,026)

71,849

9,887

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

Depreciation and amortization

433,015

377,086

388,711

53,488

Share-based compensation expenses

8,006

113,871

(15,152)

(2,085)

Others

357,787

137,297

101,890

14,021

Changes in operating assets and liabilities

Accounts and notes receivable

8,388

(226,973)

142,469

19,604

Prepaid expenses and other current assets

70,627

(44,104)

(79,893)

(10,993)

Accounts and notes payable

33,434

77,668

(47,018)

(6,470)

Accrued expenses and other payables

(5,950)

56,105

(61,463)

(8,458)

Deferred revenue

(35,743)

5,626

(14,000)

(1,926)

Advances from customers

(114,977)

(11,090)

(63,305)

(8,711)

Others

(93,540)

(58,873)

(18,884)

(2,599)

Net cash generated from operating activities

423,476

267,587

405,204

55,758

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property and equipment

(394,812)

(1,005,368)

(998,489)

(137,397)

Purchases of intangible assets

(10,178)

(5,965)

(7,594)

(1,045)

(Payments for) proceeds from investments

(655,815)

359,239

(138,224)

(19,020)

Proceeds from other investing activities

9,295

1,154

117,209

16,128

Net cash used in investing activities

(1,051,510)

(650,940)

(1,027,098)

(141,334)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from bank borrowings

169,204

1,156,279

690,848

95,064

Repayments of bank borrowings

(55,865)

(51,441)

(533,324)

(73,388)

Repurchase of 2025 Convertible Notes

(380,333)

–

Repurchase of 2026 Convertible Notes

–

(4,262,340)

–

Payments for finance leases

(67,172)

(39,602)

(9,586)

(1,319)

Proceeds from other financing activities

285,013

591,446

516,493

71,072

Net cash (used in) generated from financing activities

(49,153)

(2,605,658)

664,431

91,429

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

51,314

(20,050)

3,370

464

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

(625,873)

(3,009,061)

45,907

6,317

Cash, cash equivalents and restricted cash at

beginning of period

3,242,842

5,098,987

2,089,926

287,583

Cash, cash equivalents and restricted cash at end of period

2,616,969

2,089,926

2,135,833

293,900

View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-second-quarter-2024-financial-results-302231598.html

SOURCE VNET Group, Inc.

Technology

PEAC Institute Launches “24 Hour Pause for Peace: A Global Concert”

Published

47 mins ago

September 21, 2024

24 Hour Pause for Peace Will Be the Largest Peace Initiative Ever Worldwide, Unifying 96 Countries on Six Continents Through Music

MONTCLAIR, N.J., Sept. 21, 2024 /PRNewswire-PRWeb/ — On this International Day of Peace, PEAC Institute, part of the 2017 Nobel Peace Prize winning team, has launched “24 Hour Pause for Peace: A Global Concert,” the largest peace initiative ever organized worldwide through music.

“Now, we need companies, government entities, other nonprofits and donors who care about our cause for peace to join us in lifting up the biggest event of this generation.”

On October 4, 2025, this ground-breaking program will activate a massive network of youth ensembles that spans 96 countries and territories across six continents and host two 24-hour commercial festivals featuring some of the biggest acts in music and entertainment. This extraordinary day-long event will be live-streamed globally, allowing millions to participate simultaneously.

“It has been 40 years since Live Aid and We Are the World historically unified and changed the world through music,” said Rebecca Irby, president and CEO of PEAC Institute. “With our planet riddled with post-pandemic fatigue, climate chaos, unsettling wars and more, we believe it is time to create a new trajectory for humanity by inviting everyone around the globe to a 24 hour pause for peace to enjoy the sounds of music and feel the transformative power of human connection,” Irby explained.

Additionally, 24 Hour Pause for Peace plans to amass more than 100 million ambassadors to sign an appeal to the United Nations calling for a 24 hour ceasefire during the children’s concerts and commercial music events. All countries are welcome to participate with no exceptions. One of Pause for Peace’s core beliefs is everyone has the right to be equally respected and heard, particularly in collectively calling for peace.

“Achieving this ambitious global endeavor requires the support and participation from the most impactful brands, organizations, and influential leaders, artists and celebrities,” said Jennifer McKenna, 24 Hour Pause for Peace CEO.

Pause for Peace is a $165 million global initiative. Currently, it is in its first phase of raising seed capital through consumer brand-aligned sponsorships and private donors. Funding for the program is tax-deductible through PEAC’s 501(c)(3) status.

“We have assembled an exceptional executive team of change agents in entertainment, production, consumer marketing, charitable development and global security to make this extraordinary, worldwide peace event happen.” McKenna added. “Now, we need companies, government entities, other nonprofits and donors who care about our cause for peace to join us in lifting up the biggest event of this generation.” To become involved in 24 Hour Pause for Peace: A Global Concert as a sponsor, partner or donor, sign up to be an Ambassador, or for more information, go to www.24hourpauseforpeace.org.

About PEAC Institute

PEAC Institute is a 501(c)(3) nonprofit organization based in the United States. PEAC stands for peace, education, art and communication. It was formed in 2016 through a campaign with partner organization, International Campaign to Abolish Nuclear Weapons (ICAN), which garnered a 2017 Nobel Peace Prize. PEAC now holds special consultative status with the Economic and Social Council of the United Nations and has a global presence working with countries and territories worldwide to reach the most marginalized youth through art and communication activities to help them explore and express. For more information on PEAC Institute, go to www.peacinstitute.org.

Media Contact

Chadwick Boyd, Pause for Peace, 1 4046060611, chadwick@24hourpauseforpeace.org, www.24hourpauseforpeace.org

View original content to download multimedia:https://www.prweb.com/releases/peac-institute-launches-24-hour-pause-for-peace-a-global-concert-302254527.html

SOURCE Pause for Peace

Technology

Global Times: China opens 12 nuclear research facilities to global scientists

Published

2 hours ago

September 21, 2024

The involved facilities span areas such as basic nuclear research, isotope production, nuclear environment simulation, equipment testing, and radioactive waste treatment and disposal.

VIENNA, Sept. 21, 2024 /PRNewswire/ — China will open 12 nuclear research facilities and testing platforms to international scientists and institutions to enhance global cooperation, a senior Chinese official said here on Monday.

These include the China Advanced Research Reactor, the new-generation tokamak device Huanliu-3, and the Beishan Underground Research Laboratory, Liu Jing, vice chairman of the China Atomic Energy Authority (CAEA), said at a meeting on the sidelines of the International Atomic Energy Agency’s (IAEA) annual general conference.

The facilities span areas such as basic nuclear research, isotope production, nuclear environment simulation, equipment testing, and radioactive waste treatment and disposal.

Monday’s meeting, themed “Share for Development,” was organized by the CAEA to promote international cooperation in nuclear technology research and development, as China marks the 40th anniversary of its accession to the IAEA.

Yu Jianfeng, chairman of China National Nuclear Corporation, said at the event that the company aims to deepen cooperation with the IAEA and expand international collaboration. He expressed hope that opening China’s nuclear research facilities will contribute to advancing nuclear technology globally.

IAEA’s Deputy Director General Mikhail Chudakov commended China’s remarkable achievements in nuclear energy development and highlighted the long-standing, fruitful relationship between the IAEA and the CAEA.

Welcoming China’s decision to open up more of its nuclear research and development facilities, Chudakov said the move will further strengthen the agency’s technical capacity to support its member states.

On Monday evening, the CAEA and China’s permanent mission to the United Nations (UN) and other international organizations in Vienna jointly held a reception at the UN headquarters in Vienna to celebrate the 40th anniversary of China’s accession to the IAEA. More than 200 participants, including IAEA representatives and foreign envoys to Vienna, attended the event.

Li Song, China’s permanent representative to the UN and other international organizations in Vienna, said at the reception that China and the IAEA have expanded practical cooperation and jointly promoted the development of nuclear energy over the past 40 years.

China, he said, will continue to strengthen collaboration with the IAEA and its member states to address emerging challenges in international security, safeguard the global non-proliferation regime, and promote the use of nuclear energy and technology for the benefit of the Global South.

At the reception, Liu, Li and IAEA Director General Rafael Grossi jointly unveiled a bronze statue of Qian Sanqiang, a renowned Chinese nuclear physicist and one of the founders of China’s nuclear industry.

The statue, donated by China, will be permanently displayed at the IAEA headquarters, alongside sculptures of Polish-French physicist Marie Curie and other prominent figures who have made significant contributions to the peaceful use of nuclear energy.

Contact: xutianshu@globaltimes.com.cn

View original content:https://www.prnewswire.com/news-releases/global-times-china-opens-12-nuclear-research-facilities-to-global-scientists-302254830.html

SOURCE Global Times

Technology

The Ar-King of Spirits: Ed Arking’s Impact on the Liquor Industry

Published

3 hours ago

September 21, 2024

In the interest of providing luxury liquors in a convenient and stress-free format, Served Neat was born. When asked about his intentions for the company, Ed states, “My goal with Served Neat is to create a one-stop shop where customers can easily discover these rare gems.”

MOORESTOWN, N.J., Sept. 21, 2024 /PRNewswire-PRWeb/ — Served Neat is an emerging online platform with a curated selection of some of the world’s most popular luxury spirits. The website offers daily flash deals that highlight a variety of high-end international brands including Pappy Van Winkle, Buffalo Trace, Clase Azul, and more.

“While there are websites selling spirits, none have the decades of experience that we bring from WTSO. Served Neat will offer not only incredible bottles but also the best customer service in the industry.”

Ed and Joe Arking, the father-son team behind the concept of Served Neat, have decades of experience hand-selecting and supplying sought-after liquors. Ed Arking, CEO of New Jersey’s Roger Wilco, grew up in the world of wine and spirits and formed his own business aspirations.

“Growing up, I watched my father navigate and succeed in the ever-evolving wine and spirits industry,” Ed explains. “While I always aspired to create something similar, I knew I needed to wait for the right moment.” Ed has gone on to manage his own liquor store and lead projects for up-and-coming brands, such as the vodka-infused and non-carbonated Smooth Water.

As he evolved in his career, Ed discovered the perfect time to make his lifelong vision a reality. He recalls, “I noticed a gap in the market—especially for whiskey and tequila. These categories have surged in popularity, making it difficult for the everyday consumer to find those elusive sought-after allocated bottles.”

When it comes to Served Neat, quality and knowledge is key. Ed adds, “While there are websites selling spirits, none have the decades of experience that we bring from WTSO. Served Neat will offer not only incredible bottles but also the best customer service in the industry.”

Served Neat is the sister company to WTSO and The Wine Market, two online platforms dedicated to sourcing and distributing top-notch wines from every corner of the globe.

At The Wine Market, an online marketplace for the world’s most popular wine brands, convenience and quality are key. Each bottle in their curated collection is a testament to exceptional flavor and craftsmanship.

Since 2006, WTSO has enjoyed creating a unique wine experience and sharing it with new beginners and seasoned connoisseurs alike. Using an extensive network of wineries and wine makers, WTSO connects customers to thousands of brands from top wine appellations around the globe. The strong relationships they’ve formed within the wine world allow the business to deliver authentic and high-quality bottles to homes across the United States.

Wine and spirits lovers alike are invited to explore Served Neat, WTSO, and The Wine Market to find their next favorite bottle. Visit their websites to learn more about these one-of-a-kind online marketplaces!

Media Contact

Julie Blount, WTSO, 1 8669572795, marketing@wtso.com

View original content to download multimedia:https://www.prweb.com/releases/the-ar-king-of-spirits-ed-arkings-impact-on-the-liquor-industry-302254517.html

SOURCE WTSO