Technology
VNET Reports Unaudited Third Quarter 2024 Financial Results
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BEIJING, Nov. 20, 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 third quarter ended September 30, 2024.
“We achieved strong third quarter results mainly driven by our wholesale IDC business,” said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET. “Our wholesale IDC business maintained its strong growth momentum as we capitalized on rising AI-driven demand. We also continued attracting high-quality customers during the third quarter, with six new order wins totaling 84MW. Notably, we won a new wholesale order from an Internet customer for 32MW at our Huailai IDC Campus, one of our green computing clusters in Hebei province. Moving forward, we will continue to develop our high-performance data centers and green business, providing reliable, premium IDC services to meet market demand. Propelling VNET’s high-quality, sustainable development remains our priority as we strive to deliver value to all of our stakeholders.”
Qiyu Wang, Chief Financial Officer of VNET, commented, “In the third quarter, we remained focused on high-quality revenue businesses with high margins. Our total net revenues increased by 12.4% year over year to RMB2.12 billion, mainly driven by remarkable wholesale revenue growth of 86.4% year over year. Our adjusted EBITDA also grew by 17.1% year over year to RMB594.8 million in the third quarter of 2024. We previously reported adjusted EBITDA for the third quarter of 2023 at RMB507.9 million. Such figure included VAT surplus deduction benefit of RMB13.3 million, which is now considered non-continuable due to the termination of preferential tax policies since January 1, 2024 (the “Discontinued VAT Benefits”). The year-over-year growth in adjusted EBITDA would be 20.2% if the Discontinued VAT Benefits were excluded from the adjusted EBITDA calculation for the same period last year. We also aim to enter a definitive agreement with one of China’s leading insurance companies by the end of 2024 to form a pre-REITs fund. The fund will feature the first and second phases of our Taicang IDC Campus as the underlying assets, with us retaining approximately a 51% interest in the fund. This will further strengthen our cash reserves and support our sustainable development. Looking ahead, we will continue strengthening our core capabilities and capitalizing on AI-driven opportunities to create long-term shareholder value.”
Third Quarter 2024 Financial Highlights
Total net revenues increased by 12.4% to RMB2.12 billion (US$302.2 million) from RMB1.89 billion in the same period of 2023.Net revenues from the IDC business[1] increased by 18.4% to RMB1.50 billion (US$213.5 million) from RMB1.27 billion in the same period of 2023.Net revenues from the wholesale IDC business (“wholesale revenues”) increased by 86.4% to RMB523.0 million (US$74.5 million) from RMB280.6 million in the same period of 2023.Net revenues from the retail IDC business (“retail revenues”) decreased slightly by 1.0% to RMB975.5 million (US$139.0 million) from RMB984.9 million in the same period of 2023.Net revenues from the non-IDC business[2] increased by 0.2% to RMB622.3 million (US$88.7 million) from RMB621.4 million in the same period of 2023.Adjusted cash gross profit (non-GAAP) increased by 16.6% to RMB860.7 million (US$122.6 million) from RMB738.4 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) was 40.6%, compared with 39.1% in the same period of 2023.Adjusted EBITDA (non-GAAP) increased by 17.1% to RMB594.8 million (US$84.8 million) from RMB507.9 million in the same period of 2023. Such figure in the third quarter of 2023 included Discontinued VAT Benefits of RMB13.3 million. The year-over-year growth in adjusted EBITDA would be 20.2% if the Discontinued VAT Benefits were excluded from the adjusted EBITDA calculation for the same period last year. Adjusted EBITDA margin (non-GAAP) was 28.0%, compared with 26.9% in the same period of 2023.Net income increased by RMB372.0 million and RMB260.3 million to RMB332.2 million (US$47.3 million) in the third quarter, compared with a net loss of RMB39.9 million in the same period of 2023 and a net income of RMB71.8 million in the second quarter of 2024, respectively.
Third Quarter 2024 Operational Highlights
Wholesale IDC Business[3]
Capacity in service was 358MW as of September 30, 2024, compared with 332MW as of June 30, 2024, and 290MW as of September 30, 2023. Capacity under construction was 297MW as of September 30, 2024.Capacity utilized by customers reached 279MW as of September 30, 2024, compared with 252MW as of June 30, 2024, and 161MW as of September 30, 2023. The sequential increase during the third quarter of 2024 was 27MW, which was mainly contributed by the E-JS Campus 02 C data center and the N-OR06 data center.Utilization rate[4] of wholesale capacity was 78.0% as of September 30, 2024, compared with 75.9% as of June 30, 2024, and 55.4% as of September 30, 2023.Utilization rate of mature wholesale capacity[5] was 95.6% as of September 30, 2024, compared with 94.9% as of June 30, 2024, and 94.4% as of September 30, 2023.Utilization rate of ramp-up wholesale capacity[6] was 46.4% as of September 30, 2024, compared with 45.7% as of June 30, 2024, and 18.4% as of September 30, 2023.Total capacity committed[7] was 352MW as of September 30, 2024, compared with 326MW as of June 30, 2024, and 236MW as of September 30, 2023.Commitment rate[8] for capacity in service was 98.2% as of September 30, 2024, compared with 98.1% as of June 30, 2024, and 81.3% as of September 30, 2023.Total capacity pre-committed[9] was 262MW and pre-commitment rate[10] for capacity under construction was 88.4% as of September 30, 2024.
Retail IDC Business[11]
Capacity in service was 52,250 cabinets as of September 30, 2024, compared with 52,177 cabinets as of June 30, 2024, and 52,200 cabinets as of September 30, 2023.Capacity utilized by customers reached 32,950 cabinets as of September 30, 2024, compared with 33,253 cabinets as of June 30, 2024, and 33,845 cabinets as of September 30, 2023.Utilization rate of retail capacity was 63.1% as of September 30, 2024, compared with 63.7% as of June 30, 2024, and 64.8% as of September 30, 2023.Utilization rate of mature retail capacity[12] was 69.5% as of September 30, 2024, compared with 72.5% as of June 30, 2024, and 73.1% as of September 30, 2023.Utilization rate of ramp-up retail capacity[13] was 16.8% as of September 30, 2024, compared with 12.7% as of June 30, 2024, and 18.7% as of September 30, 2023.Monthly recurring revenue (MRR) per retail cabinet was RMB8,788 in the third quarter of 2024, compared with RMB8,753 in the second quarter of 2024 and RMB8,845 in the third 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 September 30, 2023, June 30, 2024, and September 30, 2024, 4,426, 4,150, 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.
Third Quarter 2024 Financial Results
TOTAL NET REVENUES: Total net revenues in the third quarter of 2024 were RMB2.12 billion (US$302.2 million), representing an increase of 12.4% from RMB1.89 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 18.4% to RMB1.50 billion (US$213.5 million) from RMB1.27 billion in the same period of 2023. The year-over-year increase was mainly driven by an increase in wholesale revenues.
Wholesale revenues increased by 86.4% to RMB523.0 million (US$74.5 million) from RMB280.6 million in the same period of 2023.Retail revenues decreased to RMB975.5 million (US$139.0 million) from RMB984.9 million in the same period of 2023.
Net revenues from non-IDC business increased by 0.2% to RMB622.3 million (US$88.7 million) from RMB621.4 million in the same period of 2023.
GROSS PROFIT: Gross profit in the third quarter of 2024 was RMB491.7 million (US$70.1 million), representing an increase of 60.4% from RMB306.5 million in the same period of 2023. Gross margin in the third quarter of 2024 was 23.2%, compared with 16.2% 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 RMB860.7 million (US$122.6 million) in the third quarter of 2024, compared with RMB738.4 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) in the third quarter of 2024 was 40.6%, compared with 39.1% in the same period of 2023.
OPERATING EXPENSES: Total operating expenses in the third quarter of 2024 were RMB300.3 million (US$42.8 million), compared with RMB274.3 million in the same period of 2023.
Sales and marketing expenses were RMB60.7 million (US$8.7 million) in the third quarter of 2024, compared with RMB64.1 million in the same period of 2023.
Research and development expenses were RMB53.1 million (US$7.6 million) in the third quarter of 2024, compared with RMB80.7 million in the same period of 2023.
General and administrative expenses were RMB132.5 million (US$18.9 million) in the third quarter of 2024, compared with RMB137.9 million in the same period of 2023.
ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses, were RMB293.6 million (US$41.8 million) in the third quarter of 2024, compared with RMB264.8 million in the same period of 2023. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the third quarter of 2024 were 13.8%, compared with 14.0% in the same period of 2023.
ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the third quarter of 2024 was RMB594.8 million (US$84.8 million), representing an increase of 17.1% from RMB507.9 million in the same period of 2023. Such figure in the third quarter of 2023 included Discontinued VAT Benefits of RMB13.3 million. The year-over-year growth in adjusted EBITDA would be 20.2% if the Discontinued VAT Benefits were excluded from the adjusted EBITDA calculation for the same period last year). Adjusted EBITDA margin (non-GAAP) in the third quarter of 2024 was 28.0%, compared with 26.9% in the same period of 2023.
NET INCOME/LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net income attributable to VNET Group, Inc. in the third quarter of 2024 was RMB317.6 million (US$45.3 million), compared with a net loss attributable to VNET Group, Inc. of RMB50.5 million in the same period of 2023. The year-over-year increase was mainly due to a gain in debt extinguishment.
EARNINGS PER SHARE: Basic and diluted earnings per share in the third quarter of 2024 were RMB0.20 (US$0.03) and RMB0.05 (US$0.01), respectively, which represents the equivalent to RMB1.20 (US$0.18) and RMB0.30 (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 September 30, 2024, the aggregate amount of the Company’s cash and cash equivalents, restricted cash and short-term investments was RMB2.10 billion (US$298.9 million).
Total short-term debt consisting of short-term bank borrowings and the current portion of long-term borrowings was RMB1.87 billion (US$266.4 million). Total long-term debt was RMB8.88 billion (US$1.26 billion), comprised of long-term borrowings of RMB7.08 billion (US$1.0 billion) and convertible promissory notes of RMB1.79 billion (US$255.6 million).
Net cash generated from operating activities in the third quarter of 2024 was RMB760.4 million (US$108.4 million), compared with RMB454.3 million in the same period of 2023. During the third quarter of 2024, the Company obtained new debt financing, refinancing facilities and other financings of RMB0.95 billion (US$134.7 million).
Recent Development
The Company plans to sign a definitive agreement by the end of 2024 on a pre-REITs project with one of China’s leading insurance companies, under which the Company will form a pre-REITs fund (the “Fund”) to feature the first and second phases of our Taicang IDC Campus as the underlying assets with approximately 210MW total IT capacity and RMB5.74 billion estimated value.
The Company is expected to own approximately 51% interest in the Fund and sell the remaining 49% interest to the insurance company, the consideration of which would be approximately RMB1.15 billion, calculated based on the assets and liabilities of the fund at the establishment date.
After the completion of this transaction, VNET intends to consolidate the Fund for financial reporting purpose, while operating the Taicang IDC project to offer stable and premium infrastructure services. The financial results of the Fund’s underlying assets are expected to be consolidated into the Company’s financial statement.
Business Outlook
The Company increased its full year 2024 guidance for total net revenues and adjusted EBITDA. Specifically, the Company now expects total net revenues for 2024 to be between RMB8,000 million to RMB8,100 million, representing year-over-year growth of 7.9% to 9.3%, and adjusted EBITDA (non-GAAP) to be in the range of RMB2,280 million to RMB2,300 million, representing year-over-year growth of 11.8% to 12.8%. Such figure in the third quarter of 2023 adjusted EBITDA included Discontinued VAT Benefits of RMB13.3 million. The year-over-year growth in adjusted EBITDA would be 16.4% to 17.4% if the Discontinued VAT Benefits were excluded from the adjusted EBITDA calculation for the same period last year.
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 8:00 PM U.S. Eastern Time on Wednesday, November 20, 2024, or 9:00 AM Beijing Time on Thursday, November 21, 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/10043189-1ej64l.html
Chinese line (listen-only mode):
https://s1.c-conf.com/diamondpass/10043190-a2lrfs.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 November 28, 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
Reply PIN (English line):
10043189
Reply PIN (Chinese line):
10043190
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 RMB7.0176 to US$1.00, the noon buying rate in effect on September 30, 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, including the plan to sign a definitive agreement on a pre-REITs project, 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
September 30, 2024
RMB
RMB
US$
Assets
Current assets:
Cash and cash equivalents
2,243,537
1,524,819
217,285
Restricted cash
2,854,568
556,266
79,267
Accounts and notes receivable, net
1,715,975
1,861,828
265,308
Short-term Investments
356,820
15,879
2,263
Prepaid expenses and other current assets
2,375,341
2,665,924
379,891
Amounts due from related parties
277,237
317,619
45,260
Total current assets
9,823,478
6,942,335
989,274
Non-current assets:
Property and equipment, net
13,024,393
15,153,253
2,159,321
Intangible assets, net
1,383,406
1,347,751
192,053
Land use rights, net
602,503
588,846
83,910
Operating lease right-of-use assets, net
4,012,329
4,412,834
628,824
Restricted cash
882
882
126
Deferred tax assets, net
247,644
309,390
44,088
Long-term investments, net
757,949
798,638
113,805
Other non-current assets
533,319
371,501
52,938
Total non-current assets
20,562,425
22,983,095
3,275,065
Total assets
30,385,903
29,925,430
4,264,339
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term bank borrowings
30,000
552,270
78,698
Accounts and notes payable
696,177
728,361
103,791
Accrued expenses and other payables
2,783,102
2,527,584
360,178
Advances from customers
1,605,247
1,752,935
249,791
Deferred revenue
95,477
87,354
12,448
Income taxes payable
35,197
51,554
7,346
Amounts due to related parties
356,080
354,903
50,573
Current portion of long-term borrowings
723,325
1,317,343
187,720
Current portion of finance lease liabilities
115,806
107,785
15,359
Current portion of deferred government grants
8,062
8,538
1,217
Current portion of operating lease liabilities
780,164
874,957
124,680
Convertible promissory notes
4,208,495
–
–
Total current liabilities
11,437,132
8,363,584
1,191,801
Non-current liabilities:
Long-term borrowings
5,113,521
7,082,026
1,009,181
Convertible promissory notes
1,769,946
1,793,894
255,628
Non-current portion of finance lease liabilities
1,159,525
1,169,573
166,663
Unrecognized tax benefits
98,457
98,457
14,030
Deferred tax liabilities
688,362
703,390
100,232
Deferred government grants
145,112
265,941
37,896
Non-current portion of operating lease liabilities
3,270,759
3,587,701
511,243
Derivative liability
188,706
–
–
Total non-current liabilities
12,434,388
14,700,982
2,094,873
Shareholders’ equity
Ordinary shares
107
109
16
Additional paid-in capital
17,291,312
17,256,955
2,459,096
Accumulated other comprehensive loss
(14,343)
(16,088)
(2,293)
Statutory reserves
80,615
94,276
13,434
Accumulated deficit
(11,016,323)
(10,835,688)
(1,544,073)
Treasury stock
(326,953)
(163,073)
(23,238)
Total VNET Group, Inc. shareholders’
equity
6,014,415
6,336,491
902,942
Noncontrolling interest
499,968
524,373
74,723
Total shareholders’ equity
6,514,383
6,860,864
977,665
Total liabilities and shareholders’
equity
30,385,903
29,925,430
4,264,339
VNET GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data)
Three months ended
Nine months ended
September 30, 2023
June 30, 2024
September 30, 2024
September 30, 2023
September 30, 2024
RMB
RMB
RMB
US$
RMB
RMB
US$
Net revenues
1,886,924
1,993,760
2,120,794
302,211
5,514,450
6,012,680
856,800
Cost of revenues
(1,580,446)
(1,568,865)
(1,629,111)
(232,146)
(4,512,843)
(4,685,381)
(667,661)
Gross profit
306,478
424,895
491,683
70,065
1,001,607
1,327,299
189,139
Operating income (expenses)
Operating income
26,706
–
11,767
1,677
73,980
15,716
2,240
Sales and marketing expenses
(64,077)
(58,225)
(60,700)
(8,650)
(192,921)
(190,668)
(27,170)
Research and development expenses
(80,673)
(61,998)
(53,127)
(7,571)
(241,549)
(190,514)
(27,148)
General and administrative expenses
(137,931)
(107,297)
(132,482)
(18,879)
(393,395)
(466,076)
(66,415)
Allowance for doubtful debt
(18,316)
(2,753)
(65,731)
(9,367)
(7,034)
(63,309)
(9,021)
Total operating expenses
(274,291)
(230,273)
(300,273)
(42,790)
(760,919)
(894,851)
(127,514)
Operating profit
32,187
194,622
191,410
27,275
240,688
432,448
61,625
Interest income
12,887
5,449
4,218
601
28,606
21,796
3,106
Interest expense
(91,800)
(92,172)
(93,996)
(13,394)
(233,295)
(323,850)
(46,148)
Impairment of long-term investments
(11,115)
–
–
–
(11,115)
–
–
Other income
7,536
30,475
15,584
2,221
22,892
50,873
7,249
Other expenses
(10,975)
(6,900)
(8,783)
(1,252)
(14,887)
(17,105)
(2,437)
Changes in the fair value of financial liabilities
266
712
(7,107)
(1,013)
21,718
(2,537)
(362)
Gain on debt extinguishment
–
–
246,175
35,080
–
246,175
35,080
Foreign exchange gain (loss)
24,606
(4,387)
14,833
2,114
(168,391)
(17,915)
(2,553)
(Loss) income before income taxes and
gain from equity method investments
(36,408)
127,799
362,334
51,632
(113,784)
389,885
55,560
Income tax expenses
(6,317)
(59,149)
(31,149)
(4,439)
(63,748)
(151,682)
(21,615)
Gain from equity method investments
2,842
3,199
965
138
3,651
6,770
965
Net (loss) income
(39,883)
71,849
332,150
47,331
(173,881)
244,973
34,910
Net income attributable to noncontrolling
interest
(10,579)
(8,174)
(14,524)
(2,070)
(27,167)
(50,677)
(7,221)
Net (loss) income attributable to the
VNET Group, Inc.
(50,462)
63,675
317,626
45,261
(201,048)
194,296
27,689
(Loss) earnings per share
Basic
(0.06)
0.04
0.20
0.03
(0.23)
0.12
0.02
Diluted
(0.06)
0.04
0.05
0.01
(0.24)
(0.02)
(0.00)
Shares used in (loss) earnings per share
computation
Basic*
889,058,872
1,594,662,099
1,602,860,426
1,602,860,426
888,724,901
1,588,659,647
1,588,659,647
Diluted*
889,058,872
1,595,517,338
1,740,565,086
1,740,565,086
899,884,241
1,725,023,283
1,725,023,283
(Loss) earnings per ADS (6 ordinary shares equal to 1 ADS)
Basic
(0.36)
0.24
1.20
0.18
(1.38)
0.72
0.12
Diluted
(0.36)
0.24
0.30
0.06
(1.44)
(0.12)
(0.02)
* 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$”))
Three months ended
Nine months ended
September 30, 2023
June 30, 2024
September 30, 2024
September 30, 2023
September 30, 2024
RMB
RMB
RMB
US$
RMB
RMB
US$
Gross profit
306,478
424,895
491,683
70,065
1,001,607
1,327,299
189,139
Plus: depreciation and amortization
431,933
364,616
368,764
52,548
1,233,983
1,085,984
154,751
Plus: share-based compensation
expenses
–
(2,190)
234
33
–
234
33
Adjusted cash gross profit
738,411
787,321
860,681
122,646
2,235,590
2,413,517
343,923
Adjusted cash gross margin
39.1 %
39.5 %
40.6 %
40.6 %
40.5 %
40.1 %
40.1 %
Operating expenses
(274,291)
(230,273)
(300,273)
(42,790)
(760,919)
(894,851)
(127,514)
Plus: share-based compensation
expenses
9,475
(12,962)
6,709
956
25,817
105,428
15,023
Adjusted operating expenses
(264,816)*
(243,235)
(293,564)
(41,834)
(735,102)
(789,423)
(112,491)
Operating profit
32,187*
194,622
191,410
27,275
240,688
432,448
61,625
Plus: depreciation and amortization
466,285
394,334
396,428
56,491
1,332,649
1,170,313
166,768
Plus: share-based compensation
expenses
9,475
(15,152)
6,943
989
25,817
105,662
15,057
Adjusted EBITDA
507,947*
573,804
594,781
84,755
1,599,154
1,708,423
243,450
Adjusted EBITDA margin
26.9 %
28.8 %
28.0 %
28.0 %
29.0 %
28.4 %
28.4 %
* Included VAT surplus deduction benefit of RMB13.3 million, which is now considered non-continuable due to the termination of preferential tax policies since January 1, 2024.
VNET GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))
Three months ended
September 30, 2023
June 30, 2024
September 30, 2024
RMB
RMB
RMB
US$
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income
(39,883)
71,849
332,150
47,331
Adjustments to reconcile net (loss) income to net cash generated from operating activities:
Depreciation and amortization
461,603
388,711
393,719
56,105
Share-based compensation expenses
9,475
(15,152)
6,943
989
Others
130,633
101,890
(107,550)
(15,326)
Changes in operating assets and liabilities
Accounts and notes receivable
(70,896)
142,469
(138,968)
(19,803)
Prepaid expenses and other current assets
(48,380)
(79,893)
116,055
16,538
Accounts and notes payable
21,763
(47,018)
8,463
1,206
Accrued expenses and other payables
(54,577)
(61,463)
65,481
9,329
Deferred revenue
36,008
(14,000)
2,300
328
Advances from customers
124,816
(63,305)
222,083
31,647
Others
(116,249)
(18,884)
(140,310)
(19,994)
Net cash generated from operating activities
454,313
405,204
760,366
108,350
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment
(946,444)
(998,489)
(1,426,892)
(203,330)
Purchases of intangible assets
(18,228)
(7,594)
(33,806)
(4,817)
Proceeds from (payments for) investments
144,516
(138,224)
92,426
13,171
Proceeds from other investing activities
70,010
117,209
31,762
4,526
Net cash used in investing activities
(750,146)
(1,027,098)
(1,336,510)
(190,450)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank borrowings
756,101
690,848
745,534
106,238
Repayments of bank borrowings
(78,050)
(533,324)
(129,893)
(18,510)
Repayments of 2025 Convertible Notes
(148,842)
–
–
–
Payments for finance leases
(30,366)
(9,586)
(27,669)
(3,943)
Proceeds from (payments for) other financing activities
216,711
516,493
(59,645)
(8,499)
Net cash generated from financing activities
715,554
664,431
528,327
75,286
Effect of foreign exchange rate changes on
cash, cash equivalents and restricted cash
(12,476)
3,370
(6,049)
(862)
Net increase (decrease) in cash, cash
equivalents and restricted cash
407,245
45,907
(53,866)
(7,676)
Cash, cash equivalents and restricted cash at
beginning of period
2,616,969
2,089,926
2,135,833
304,354
Cash, cash equivalents and restricted cash at
end of period
3,024,214
2,135,833
2,081,967
296,678
View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-third-quarter-2024-financial-results-302311297.html
SOURCE VNET Group, Inc.
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Safeguard Global Pay to Feature New Product Capabilities in Partnership with Workday at Marquee EMEA Event
Published
17 minutes agoon
November 21, 2024By
Safeguard Global Pay will serve as a key partner for joint go-to-market activities at Workday Rising EMEA
AMSTERDAM, Nov. 21, 2024 /PRNewswire/ — Safeguard Global Pay, a leading global managed payroll provider, today announced it will host an exclusive demo of Workday’s Global Payroll Connect at next month’s Workday Rising EMEA event. The innovations were born from Race to Rising, a competition hosted by Workday, Inc. (NASDAQ: WDAY), which Safeguard won earlier this year.
“As Workday’s original global payroll partner, we’re passionate about global pay and we’ve been doing it longer than anyone,” said Tristan Woods, Chief Product Officer at Safeguard Global Pay. “It is our mission to serve as a payroll provider that manages, accelerates and scales payroll for organizations globally, through a community of local payroll experts, partners, and a single, agile platform. And that’s why we’re positioned to offer the very best solutions in the global payroll market.”
In May 2024, Workday announced its Race to Rising competition, aimed at unifying the experience between Workday and global payroll providers. Safeguard Global Pay competed alongside six other invited brands and was given eight weeks to build and implement next-gen integrations for Workday’s Global Payroll Connect – a unified global payroll solution that can seamlessly connect with payroll providers to deliver an end-to-end global payroll experience. Only two of the seven global payroll providers made it to the finish line, with Safeguard Global Pay emerging as one of the winners
Safeguard Global Pay is bringing these innovations to life at Workday Rising EMEA. Attendees are invited to an exclusive demo of Workday’s Global Payroll Connect, presented by Woods, on Tuesday, December 10th, at 17:30 at Safeguard Global Pay’s booth #206.
Workday’s API-driven integrations were all designed to provide greater connectivity between Workday and payroll systems, increasing efficiency and eliminating reliance on manual spreadsheets. Together, the integrations revolutionize payroll processes by delivering more automation, easier access to accurate data, and less maintenance.
This announcement comes on the heels of Safeguard Global Pay being named a Platinum Innovation Partner with Workday earlier this year. As the first global payroll partner to attain Platinum Innovation Partner, Safeguard Global Pay seamlessly connects with Workday and standardizes payroll data and processes, streamlining and unifying everything into one platform and one process for customers in over 170 countries.
To learn more, visit safeguardglobal.com/pay.
About Safeguard Global Pay
Safeguard Global Pay manages, accelerates and scales payroll for organizations around the world. We deliver a unified client experience through a global community of local payroll experts, partners, and an agile platform, for accurate, compliant, complete and timely pay with every cycle. As a leading global managed payroll provider, we offer certified, bi-directional integrations with Workday for a consistent and optimized experience. Seamlessly integrate HR and payroll data around the world, gain comprehensive insights to labor costs, and ensure maximum engagement with Workday.
Media Contact
Lindsay Mahaney
safeguardglobal@meetkickstand.com
View original content:https://www.prnewswire.co.uk/news-releases/safeguard-global-pay-to-feature-new-product-capabilities-in-partnership-with-workday-at-marquee-emea-event-302312264.html
Technology
U.S. MORTGAGE LENDING RISES IN Q3 2024 AMID REFINANCING SURGE, BUT REMAINS BELOW HISTORIC HIGHS
Published
17 minutes agoon
November 21, 2024By
Residential Lending Grows Just 2 Percent Even as Rates Keep Declining; Refinance and Home-Equity Deals Rise While Purchase Loans Decrease
IRVINE, Calif., Nov. 21, 2024 /PRNewswire/ — ATTOM, a leading curator of land, property data, and real estate analytics, today released its third-quarter 2024 U.S. Residential Property Mortgage Origination Report, which shows that 1.67 million mortgages secured by residential property (1 to 4 units) were issued in the United States during the third quarter. That led to modest quarterly and annual increases of 1.9 percent.
The growth marked the second straight quarterly gain – a pattern not seen for more than three years. But even as home-mortgage rates dropped close to 6 percent for a 30-year fixed loan by the end of Q3 2024, the increase in business for lenders was far below a spike during the Spring of 2024 and still left total mortgages off by nearly two-thirds from a high point hit in 2021.
The latest trend resulted from improvements in refinance and home-equity lending as opposed to more buyers taking out loans. Mortgage rollovers increased 6.9 percent quarterly, to about 588,000, while home-equity packages went up 2.3 percent, to roughly 297,000.
Those improvements more than made up for a 1.7 percent decrease in purchase loans, to 782,000, as the annual peak home-buying season wound down and supplies of properties for sale remained tight.
Measured monetarily, lenders issued roughly $550 billion worth of residential mortgages in the third quarter of 2024. That was up 2.9 percent from the second quarter of 2024 and 6.6 percent from the third quarter of last year.
The differing pattern of increases among various loan types slightly raised the portion of all residential mortgages represented by refinance and home-equity credit lines, while lowering the purchase component. Still, purchase loans remained the most common form of mortgages around the U.S. during the third quarter, comprising almost half.
“Mortgage lending rose again in the third quarter, but at a far slower pace than during the Spring of this year when activity spiked nearly 25 percent,” said Rob Barber, CEO at ATTOM. “The latest increase, small as it was, likely came mainly from homeowners trading higher-rate loans they got in 2021 and 2022 for cheaper mortgages resulting from declining mortgage rates. But it looked like the third-quarter rate dip wasn’t as helpful for purchase lending as buyers kept facing elevated prices and low supplies of properties for sale.”
The latest lending trends reflected another round of mixed forces affecting home sales and the cost of borrowing. Average 30-year mortgage rates dropped a full percentage point in the third quarter, the kind of decline that can save homeowners thousands of dollars a year on all kinds of loans. But the number of homes for sale remained at some of the lowest levels in the past decade, which continues putting a damper on the market, and purchase loans.
Total lending up again but still far below peaks
Banks and other lenders issued a total of 1,666,816 residential mortgages in the third quarter of 2024, up from 1,636,073 in the second quarter of 2024 and from 1,635,056 in the third quarter of 2023.
Total activity rose for the second quarter in a row – a pattern that hadn’t happened since early in 2021. But the latest figure still remained 60 percent behind a recent high point of 4,165,695 hit in the first quarter of 2021 when average 30-year mortgages rate hovered around 3 percent.
A total of $553.1 billion was lent to homeowners and buyers in the third quarter of this year. That was up from $537.5 billion in the prior quarter and from $518.6 billion in the third quarter of 2023, although still less than half the recent peak of $1.3 trillion in 2021.
Overall lending activity also rose quarterly and annually in a majority of metropolitan areas around the U.S. with enough data to analyze. The total increased from the second quarter to the third quarter of this year in 125, or 60.4 percent, of the 207 metropolitan statistical areas that had a population of 200,000 or more and at least 1,000 total residential mortgages issued from July through September of 2024.
The largest quarterly increases came in Anchorage, AK (total lending up 78.6 percent from the second quarter of 2024 to the third quarter of 2024); Yuma, AZ (up 33.3 percent); Ann Arbor, MI (up 33 percent); Huntington, WV (up 21 percent) and Trenton, NJ (up 20.5 percent).
Metro areas with a population of least 1 million that had the biggest increases in total loans from the second to the third quarter of 2024 were Rochester, NY (up 20.1 percent); Detroit, MI (up 14.7 percent); Grand Rapids, MI (up 13.5 percent); San Diego, CA (up 13.2 percent) and Hartford, CT (up 12.7 percent).
Metro areas with enough data to analyze where lending went down the most quarterly were Boulder, CO (down 44.3 percent); St. Louis, MO (down 36.5 percent); Jackson, MS (down 25.2 percent); Myrtle Beach, SC (down 20.4 percent) and Springfield, MO (down 19.4 percent)
Measured annually, the largest increases in total lending among metro areas with a population of at least 1 million were in Orlando, FL (total lending up 29.3 percent from the third quarter of 2023 to the third quarter of 2024); San Jose, CA (up 28.7 percent); San Diego, CA (up 27.9 percent); Honolulu, HI (up 25.9 percent) and Tucson, AZ (up 17.6 percent).
Purchase mortgages decline amid tight market but still make up almost 50 percent of all lending
While overall third-quarter lending activity increased, the number of mortgages issued to home buyers was down both quarterly and annually. The count of purchase loans remained only half of where it stood in 2021.
The third-quarter total of 782,220 was off from 796,046 in the second quarter of 2024, 814,610 in the third quarter of 2023 and 1.6 million in mid-2021.
The latest dollar volume of purchase loans, $306.6 billion, was 2.5 percent less than the $314.3 billion second-quarter level, although still up 0.8 percent from $304.1 billion a year earlier. It sat 43 percent below the 2021 peak
Residential purchase-mortgage originations decreased quarterly in 55.1 percent of the 207 metro areas in the report and annually in 56 percent of those markets.
The largest quarterly decreases were in Boulder, CO (purchase loans down 50.1 percent from the second quarter of 2024 to the third quarter of 2024); St. Louis, MO (down 42.4 percent); Springfield, MO (down 25.7 percent); Savannah, GA (down 25 percent) and Lake Havasu City, AZ (down 23.1 percent).
Including St. Louis, the biggest quarterly decreases in metro areas with a population of at least 1 million in the third quarter of 2024 came in Austin, TX (down 20.6 percent); San Francisco, CA (down 17.7 percent); Tucson, AZ (down 16.8 percent) and Atlanta, GA (down 15 percent).
The top annual decreases in purchase lending in metro areas with a population of at least 1 million were in St. Louis, MO (down 50.3 percent from the third quarter of 2023 to the third quarter of 2024); Austin, TX (down 48.2 percent); Houston, TX (down 29.7 percent); Dallas, TX (down 22.5 percent) and Raleigh, NC (down 21.3 percent).
Refinance mortgages up to highest level in two years
As interest rates declined during the third quarter of this year, lenders issued 587,691 residential refinance mortgages. That was up from 549,812 in the second quarter of 2024 and 539,738 a year earlier.
The most recent figure stood out as the most since the third quarter of 2022. It represented the latest in a series of increases following a spike in interest rates in 2021 and 2022 that caused refinance lending to plummet more than 80 percent.
The $191.1 billion dollar volume of refinance packages in the third quarter of 2024 was up 13.5 percent from $168.5 billion in the prior quarter and up 16.1 percent, from $164.7 billion, in the third quarter of 2023.
Refinancing activity increased quarterly in 75.8 percent and annually in 75.4 percent of the metro areas around the U.S. with enough data to analyze.
The largest quarterly increases were in Anchorage, AK (refinance loans up 59.1 percent from the second to the third quarter of 2024); Ann Arbor, MI (up 46.9 percent); Vallejo, CA (up 46.7 percent); Colorado Springs, CO (up 42.4 percent) and Charlottesville, VA (up 41.7 percent).
Metro areas with a population of least 1 million where refinance activity increased most quarterly were San Jose, CA (up 28.7 percent); Milwaukee, WI (up 27.4 percent); San Diego, CA (up 27.2 percent); Richmond, VA (up 24.4 percent) and Los Angeles, CA (up 24 percent).
Metro areas with a population of least 1 million and the largest year-over-year increases in the number of refinance loans were San Diego, CA (up 62.5 percent from the third quarter of 2023 to the third quarter of 2024); San Jose, CA (up 59.1 percent); Los Angeles, CA (up 40.3 percent); Seattle, WA (up 39.8 percent) and Las Vegas, NV (up 39.3 percent).
Refinance packages comprised 35.3 percent of all loan originations in the third quarter of 2024. That was up from 33.6 percent in the prior quarter but far less than the 65.8 percent portion in early 2021.
HELOC lending up quarterly and annually
Home-equity lines of credit (HELOCs) also increased, to 296,905 in the latest three-month period. That was up from 290,215 in the second quarter of 2024 and 280,708 in the third quarter of last year. The improvement continued to reverse losses sustained from 2022 into early 2024.
The $55.4 billion volume of HELOC loans in the third quarter of 2024 was up from $54.7 billion in the prior quarter and from the $49.8 billion lent in the third quarter of last year.
HELOCs comprised 17.8 percent of all loans in the most recent quarter. That was almost the same as the 17.7 percent portion in the second quarter of 2024 but still almost four times the level recorded in early 2021.
HELOC mortgage originations increased from the second quarter to the third quarter of 2024 in 63.1 percent of the metro areas analyzed. The largest quarterly increases in metro areas with a population of at least 1 million were in Fresno, CA (up 33.4 percent); Hartford, CT (up 29.5 percent); Louisville, KY (up 22.9 percent); San Antonio, TX (up 20.8 percent) and San Jose, CA (up 20.6 percent).
FHA mortgage level holds steady while VA loan portion rises
Lenders issued 229,196 mortgages backed by the Federal Housing Administration (FHA) during the third quarter, or 13.8 percent of all residential property loans. That was unchanged from the second quarter of this year after 10 consecutive quarterly increases but was down from 15.1 percent in the third quarter of 2023.
Residential loans backed by the U.S. Department of Veterans Affairs (VA) totaled 97,669, or 5.9 percent of all residential property loans originated in the third quarter of 2024. That was up from 5 percent in the previous quarter and 4.8 percent in the third quarter of 2023.
Report methodology
ATTOM analyzed recorded mortgage and deed of trust data for single-family homes, condos, town homes and multi-family properties of two to four units for this report. Each recorded mortgage or deed of trust was counted as a separate loan origination. Dollar volume was calculated by multiplying the total number of loan originations by the average loan amount for those loan originations.
About ATTOM
ATTOM provides premium property data and analytics that power a myriad of solutions that improve transparency, innovation, digitization and efficiency in a data-driven economy. ATTOM multi-sources property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties covering 99 percent of the nation’s population. A rigorous data management process involving more than 20 steps validates, standardizes, and enhances the real estate data collected by ATTOM, assigning each property record with a persistent, unique ID — the ATTOM ID. The 30TB ATTOM Data Warehouse fuels innovation in many industries including mortgage, real estate, insurance, marketing, government and more through flexible data delivery solutions that include ATTOM Cloud, bulk file licenses, property data APIs, real estate market trends, property navigator and more. Also, introducing our newest innovative solution, making property data more readily accessible and optimized for AI applications – AI-Ready Solutions.
Media Contact:
Megan Hunt
Megan.hunt@attomdata.com
Data and Report Licensing:
949.502.8313
datareports@attomdata.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/us-mortgage-lending-rises-in-q3-2024-amid-refinancing-surge-but-remains-below-historic-highs-302312304.html
SOURCE ATTOM
Technology
DP Technology and Lepu Biopharma Announce Milestone Collaboration: Leveraging Advanced Computational Methods to Accelerate ADC Drug Innovation
Published
17 minutes agoon
November 21, 2024By
This partnership has effectively integrated DP’s ADC Linker-Payload design platform with Lepu’s ADC technology development platform, capitalizing on their respective strengths. The overall optimization of the ADC drug has been achieved in a relatively short time.
BEIJING, Nov. 20, 2024 /PRNewswire/ — Lepu Biopharma Co., Ltd. (Lepu Biopharma) and Beijing DP Tech Co., Ltd. (DP Technology) have recently announced a significant milestone in their Antibody-Drug Conjugate (ADC) drug collaboration. This partnership has effectively integrated DP’s ADC Linker-Payload design platform with Lepu’s ADC technology development platform, capitalizing on their respective strengths. The overall optimization of the ADC drug has been achieved in a relatively short time. This project has reached an important milestone, further validating the approach of accelerating ADC innovative drug development through computational design. Moving forward, both parties will continue to deepen their R&D collaboration in this field, jointly committed to promoting the continuous optimization and advancement of innovative drug development processes.
The ADC Linker Payload design platform, meticulously crafted by DP Technology, utilizes “RiDYMO®”, an AI-for-Science driven hit discovery platform. Furthermore, “AI + first principles” based computational methods are employed to predict linker cleavage sites and ensure the correct payload release, achieving outstanding cell-killing and bystander effects. Additionally, the designed antibody-drug conjugates (ADCs) maintain excellent hydrophilicity and plasma stability. Leveraging Lepu’s mature and complete ADC development system, candidates developed by the new ADC platform have demonstrated significant efficacy in CDX models targeting multiple targets. This project has been successfully validated in animal models and is currently advancing the candidate ADC to the clinical stage.
Lei Fang, Ph.D., Vice President of Lepu Biopharma and CEO of CtM Bio Co., Ltd., expressed high appreciation for this cooperation: “Introducing advanced computational methods to solve scientific problems and jointly pioneering breakthrough explorations is our goal in the ADC project collaboration. As a leader in ‘AI for Science’, DP Technology has played a crucial role in this project with its newly developed ADC design platform. By integrating Lepu Biopharma’s advanced ADC development platform with AI-driven design, we proposed novel perspectives on ADC development while significantly expediting the process. By complementing each other’s strengths, we jointly provide new inspiration and ideas for innovative ADC drug design.”
Weijie Sun, CEO of DP Technology, expressed great anticipation for future collaboration: “Lepu Biopharma, as an innovative biopharmaceutical company focused on cancer treatment, particularly in the areas of targeted therapy and immunotherapy, has extensive experience and a long-standing track record in developing innovative ADC drugs. We firmly believe that our close cooperation will significantly accelerate the design and development of ADC drugs, and we are optimistic about the potential to develop innovative, highly effective, and differentiated new ADC therapies. I am eagerly anticipating the ongoing and deepened collaboration between both companies in the field of pharmaceutical innovation!”
Concerning the various demands from industry partners in the ADC field, DP Technology’s ADC platform has successfully empowered various scenarios and projects. For instance, it utilizes AI combined with first-principles calculations to predict linker cleavage sites and improve attachment stability. By integrating pre-trained models with fine-tuning strategies and expert insights, the platform can predict and modify physicochemical properties such as payload efflux and bystander effects. Additionally, there is ongoing exploration and collaboration in the overall evaluation of properties like aggregation effects in ADCs.
About Lepu Biopharma
Lepu Biopharma Co., Ltd. is an innovation-driven biopharmaceutical company focusing on oncology therapeutics, in particular, targeted therapy and oncology immunotherapy, with a strong China foundation and global vision. We are dedicated to developing innovative ADCs through an advanced ADC technology development platform. We aim to develop more optimal and innovative drugs to better serve the unmet medical needs of cancer patients. We endeavor to continuously develop a market-differentiating pipeline by combining in-house research and development as well as strategic collaborations, strengthen our in-house manufacturing capabilities and commercialize our pipeline products in China through dedicated sales and marketing forces, and internationally via partnerships. We have an integrated end-to-end capability across drug discovery, clinical development, CMC and GMP-compliant manufacturing, encompassing critical functions of the biopharmaceutical value chain, and are building dedicated sales and marketing forces.
About DP Technology
At DP Technology, we’re at the forefront of integrating artificial intelligence into scientific research and industrial R&D. Our “AI for Science” initiative is redefining how we tackle complex scientific challenges, making groundbreaking discoveries more accessible and actionable.
We’ve developed the “DP Particle Universe,” a suite of advanced pre-trained models that seamlessly connect cutting-edge research with real-world industrial applications. Our software suite includes: Bohrium® Scientific Computing Space Station, Hermite® Computational Drug Design Platform, RiDYMO® Hit Discovery Platform, Piloteye® Battery Design Automation Platform. Together, these platforms form a robust foundation for industrial innovation and an open ecosystem for AI in science, fostering advancements in key areas such as drug discovery, energy, materials science and information technology.
View original content:https://www.prnewswire.com/news-releases/dp-technology-and-lepu-biopharma-announce-milestone-collaboration-leveraging-advanced-computational-methods-to-accelerate-adc-drug-innovation-302312430.html
SOURCE DP Technology
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DP Technology and Lepu Biopharma Announce Milestone Collaboration: Leveraging Advanced Computational Methods to Accelerate ADC Drug Innovation
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