Technology

VNET Reports Unaudited First Quarter 2024 Financial Results

Published

4 months ago

May 29, 2024

BEIJING, May 29, 2024 /PRNewswire/ — VNET Group, Inc. (Nasdaq: VNET) (“VNET” or the “Company”), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2024.

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

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

First Quarter 2024 Financial Highlights

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

First Quarter 2024 Operational Highlights

Wholesale IDC Business[3]

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

Retail IDC Business[11]

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

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

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

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

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

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

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

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

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

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

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

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

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

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

First Quarter 2024 Financial Results

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

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

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

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

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

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

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

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

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

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

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

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

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

LOSS PER SHARE: Basic and diluted loss per share in the first quarter of 2024 were both RMB2.65 (US$0.12), equivalent to both RMB15.88 (US$0.72) per American depositary share (“ADS”). Each ADS represents six Class A ordinary shares. Diluted loss per share is calculated using adjusted net loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

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

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

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

Business Outlook

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

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

Conference Call

The Company’s management will host an earnings conference call at 9:00 PM U.S. Eastern Time on Wednesday, May 29, 2024, or 9:00 AM Beijing Time on Thursday, May 30, 2024.

For participants who wish to join the call, please access the link provided below to complete the online registration process and dial in 5 minutes prior to the scheduled call start time.

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

Upon registration, each participant will receive a set of dial-in numbers by location, a personal PIN and an email with further detailed instructions, which will be used to join the conference call.

A simultaneous audio webcast and replay of the conference call will be accessible on the Company’s investor relations website at http://ir.vnet.com.

Non-GAAP Disclosure

In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this press release.

The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the Company’s current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company’s calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2203 to US$1.00, the noon buying rate in effect on March 29, 2024, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Statement Regarding Unaudited Condensed Financial Information

The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.

About VNET

VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers’ internet infrastructure. Customers may locate their servers and equipment in VNET’s data centers and connect to China’s internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,500 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.

Safe Harbor Statement

This announcement contains forward-looking statements. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “target,” “believes,” “estimates” and similar statements. Among other things, quotations from management in this announcement as well as VNET’s strategic and operational plans contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET’s goals and strategies; VNET’s liquidity conditions; VNET’s expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET’s services; VNET’s expectations regarding keeping and strengthening its relationships with customers; VNET’s plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET’s reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law.

Investor Relations Contact:

Xinyuan Liu
Tel: +86 10 8456 2121
Email: ir@vnet.com

VNET GROUP, INC.

CONSOLIDATED BALANCE SHEETS

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

As of

December 31, 2023

March 31, 2024

RMB

US$

Assets

Current assets:

Cash and cash equivalents

2,243,537

1,782,732

246,906

Restricted cash

2,854,568

306,312

42,424

Accounts and notes receivable, net

1,715,975

1,948,129

269,813

Short-term Investments

356,820

–

Prepaid expenses and other current assets

2,375,341

2,481,588

343,695

Amounts due from related parties

277,237

317,717

44,003

Total current assets

9,823,478

6,836,478

946,841

Non-current assets:

Property and equipment, net

13,024,393

13,778,444

1,908,292

Intangible assets, net

1,383,406

1,361,055

188,504

Land use rights, net

602,503

597,906

82,809

Operating lease right-of-use assets, net

4,012,329

4,042,957

559,943

Restricted cash

882

122

Deferred tax assets, net

247,644

254,358

35,228

Long-term investments, net

757,949

760,552

105,335

Other non-current assets

533,319

516,582

71,546

Total non-current assets

20,562,425

21,312,736

2,951,779

Total assets

30,385,903

28,149,214

3,898,620

Liabilities and Shareholders’ Equity

Current liabilities:

Short-term bank borrowings

30,000

477,749

66,167

Accounts and notes payable

696,177

773,845

107,176

Accrued expenses and other payables

2,783,102

2,928,158

405,545

Advances from customers

1,605,247

1,594,157

220,788

Deferred revenue

95,477

101,103

14,003

Income taxes payable

35,197

54,071

7,489

Amounts due to related parties

356,080

381,524

52,840

Current portion of long-term borrowings

723,325

845,831

117,146

Current portion of finance lease liabilities

115,806

95,668

13,250

Current portion of deferred government grants

8,062

11,328

1,569

Current portion of operating lease liabilities

780,164

821,000

113,707

Convertible promissory notes

4,208,495

–

Total current liabilities

11,437,132

8,084,434

1,119,680

Non-current liabilities:

Long-term borrowings

5,113,521

6,266,916

867,958

Convertible promissory notes

1,769,946

1,773,055

245,565

Non-current portion of finance lease liabilities

1,159,525

1,147,268

158,895

Unrecognized tax benefits

98,457

13,636

Deferred tax liabilities

688,362

693,898

96,104

Deferred government grants

145,112

143,862

19,925

Non-current portion of operating lease liabilities

3,270,759

3,292,955

456,069

Derivative liability

188,706

185,180

25,647

Total non-current liabilities

12,434,388

13,601,591

1,883,799

Shareholders’ equity

Ordinary shares

107

109

Additional paid-in capital

17,291,312

17,403,894

2,410,411

Accumulated other comprehensive loss

(14,343)

(20,623)

(2,856)

Statutory reserves

80,615

11,165

Accumulated deficit

(11,016,323)

(11,203,328)

(1,551,643)

Treasury stock

(326,953)

(325,425)

(45,071)

Total VNET Group, Inc. shareholders’ equity

6,014,415

5,935,242

822,021

Noncontrolling interest

499,968

527,947

73,120

Total shareholders’ equity

6,514,383

6,463,189

895,141

Total liabilities and shareholders’ equity

30,385,903

28,149,214

3,898,620

VNET GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data)

Three months ended

March 31, 2023

December 31, 2023

March 31, 2024

RMB

US$

Net revenues

1,805,782

1,898,480

1,898,126

262,887

Cost of revenues

(1,453,402)

(1,607,602)

(1,487,405)

(206,003)

Gross profit

352,380

290,878

410,721

56,884

Operating income (expenses)

Operating income

33,379

32,293

3,949

547

Sales and marketing expenses

(65,776)

(73,286)

(71,743)

(9,936)

Research and development expenses

(79,750)

(80,671)

(75,389)

(10,441)

General and administrative expenses

(127,447)

(148,455)

(226,297)

(31,342)

Reversal of (allowance for) doubtful debt

2,449

(361,471)

5,175

717

Impairment of long-lived assets

–

(506,686)

–

Impairment of goodwill

–

(1,364,191)

–

Total operating expenses

(237,145)

(2,502,467)

(364,305)

(50,455)

Operating profit (loss)

115,235

(2,211,589)

46,416

6,429

Interest income

5,681

13,196

12,129

1,680

Interest expense

(69,786)

(78,877)

(137,682)

(19,069)

Impairment of long-term investments

–

(51)

–

Other income

1,164

4,452

4,814

667

Other expenses

(3,592)

(1,199)

(1,422)

(197)

Changes in the fair value of financial liabilities

21,298

(187,648)

3,858

534

Foreign exchange gain (loss)

78,633

89,426

(28,361)

(3,928)

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

from equity method investments

148,633

(2,372,290)

(100,248)

(13,884)

Income tax expenses

(44,886)

(50,626)

(61,384)

(8,502)

(Loss) gain from equity method investments

(174)

(372)

2,606

361

Net income (loss)

103,573

(2,423,288)

(159,026)

(22,025)

Net profit attributable to noncontrolling interest

(21,280)

(19,500)

(27,979)

(3,875)

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

82,293

(2,442,788)

(187,005)

(25,900)

Earnings (loss) per share

Basic

0.09

(2.65)

(0.12)

(0.02)

Diluted

0.07

(2.65)

(0.12)

(0.02)

Shares used in earnings (loss) per share computation

Basic*

888,383,240

923,034,050

1,568,300,360

Diluted*

1,056,829,494

923,034,050

1,568,300,360

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

Basic

0.54

(15.88)

(0.72)

(0.12)

Diluted

0.42

(15.88)

(0.72)

(0.12)

* Shares used in earnings (loss) per share/ADS computation were computed under weighted average method.

VNET GROUP, INC.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

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

Three months ended

March 31, 2023

December 31, 2023

March 31, 2024

RMB

US$

Gross profit

352,380

290,878

410,721

56,884

Plus: depreciation and amortization

401,877

450,859

352,604

48,835

Plus: share-based compensation expenses

–

2,190.00

303

Adjusted cash gross profit

754,257

741,737

765,515

106,022

Adjusted cash gross margin

41.8 %

39.1 %

40.3 %

Operating expenses

(237,145)

(2,502,467)

(364,305)

(50,456)

Plus: share-based compensation expenses

8,336

9,479

111,681

15,468

Plus: allowance of loan receivables

–

287,900

–

Plus: impairment of long-lived assets

–

506,686

–

Plus: impairment of goodwill

–

1,364,191

–

Adjusted operating expenses

(228,809)

(334,211)

(252,624)

(34,988)

Operating (loss) profit

115,235

(2,211,589)

46,416

6,429

Plus: depreciation and amortization

432,629

483,579

379,551

52,567

Plus: share-based compensation expenses

8,336

9,479

113,871

15,771

Plus: allowance of loan receivables

–

287,900

–

Plus: impairment of long-lived assets

–

506,686

–

Plus: impairment of goodwill

–

1,364,191

–

Adjusted EBITDA

556,200

440,246

539,838

74,767

Adjusted EBITDA margin

30.8 %

23.2 %

28.4 %

VNET GROUP, INC.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

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

Three months ended

March 31, 2023

December 31, 2023

March 31, 2024

RMB

US$

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss)

103,573

(2,423,288)

(159,026)

(22,025)

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

Depreciation and amortization

431,654

481,067

377,086

52,226

Share-based compensation expenses

8,336

9,479

113,871

15,771

Others

62,631

2,333,785

137,297

19,015

Changes in operating assets and liabilities

Accounts and notes receivable

(254,293)

311,035

(226,973)

(31,435)

Prepaid expenses and other current assets

(378,933)

(9,076)

(44,104)

(6,108)

Accounts and notes payable

(3,377)

(76,250)

77,668

10,757

Accrued expenses and other payables

192,063

68,523

56,105

7,770

Deferred revenue

24,139

(24,005)

5,626

779

Advances from customers

405,945

31,500

(11,090)

(1,536)

Others

(136,727)

27,910

(58,873)

(8,154)

Net cash generated from operating activities

455,011

730,680

267,587

37,060

CASH FLOWS FROM INVESTING ACTIVITIES

Purchases of property and equipment

(608,717)

(1,017,474)

(1,005,368)

(139,242)

Purchases of intangible assets

(2,312)

(20,188)

(5,965)

(826)

(Payments for) proceeds from investments

–

(346,056)

359,239

49,754

(Payments for) proceeds from other investing activities

(90,489)

(18,217)

1,154

160

Net cash used in investing activities

(701,518)

(1,401,935)

(650,940)

(90,154)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings

279,916

638,706

1,156,279

160,143

Repayments of borrowings

(73,070)

(85,640)

(51,441)

(7,124)

Proceeds from issuance of ordinary shares

–

2,122,123

–

Repurchase of 2026 Convertible Notes

–

(4,262,340)

(590,327)

Payment for finance leases

(84,882)

(28,482)

(39,602)

(5,485)

Proceeds from other financing activities

395,096

110,967

591,446

81,914

Net cash generated from (used in) financing activities

517,060

2,757,674

(2,605,658)

(360,879)

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

(17,205)

(11,645)

(20,050)

(2,777)

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

253,348

2,074,774

(3,009,061)

(416,750)

Cash, cash equivalents and restricted cash at beginning of

period

2,989,494

3,024,214

5,098,987

706,202

Cash, cash equivalents and restricted cash at end of period

3,242,842

5,098,988

2,089,926

289,452

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

SOURCE VNET Group, Inc.

Technology

Disparities Narrowing Among Patients Undergoing Blood Stem Cell Transplant, Roswell Park Study Reveals

Published

9 mins ago

September 20, 2024

Historically, some patients with blood cancers have been less likely than others to receive stem cell transplant, also known as bone marrow transplant. Theresa Hahn, PhD, of Roswell Park is lead author of a new study showing that older adults and Black patients are much less likely than people from other groups to receive a blood stem cell transplant.

BUFFALO, N.Y., Sept. 20, 2024 /PRNewswire-PRWeb/ —

Study led by Dr. Theresa Hahn published in JAMA Network OpenNumber of transplants for blood cancers rose from 2009 to 2018Research team analyzed trends in transplant utilization for that period

Every year, more than 22,000 patients in the U.S. undergo a potentially lifesaving blood stem cell transplant — often called a “bone marrow transplant” — for the treatment of hematologic diseases. But historically, some patients with blood cancers have been less likely than others to receive the treatment. Theresa Hahn, PhD, of Roswell Park Comprehensive Cancer Center is lead author of a new study in the journal JAMA Network Open showing that while progress has been made in reducing those disparities, older adults and Black patients are much less likely than people from other groups to receive a blood stem cell transplant.

“This study shows that while progress has been made to reduce disparities among racial and ethnic groups, there’s a need to improve hematopoietic cell transplant utilization rates in older adults and in Black patients of all ages.” — Theresa Hahn, PhD, Roswell Park Comprehensive Cancer Center

The research team analyzed data provided by the Center for International Blood and Marrow Transplant Research (CIBMTR) for 136,280 patients who underwent hematopoietic cell transplant (HCT) in the U.S. between 2009 and 1018, comparing those numbers with the incidence of six blood cancers (acute myeloid and lymphoblastic leukemia, multiple myeloma, Hodgkin and non-Hodgkin lymphoma and myelodysplastic syndrome) in various age, race and ethnic groups the U.S. as reported by the National Cancer Institute’s Surveillance Epidemiology and End Results (SEER) Program.

The team found that during that period, the use of HCT increased for the treatment of most blood cancers — and rose among all age, race and ethnic groups.

The researchers also discovered that in the most recent years analyzed, from 2017-2018:

The rate of HCT utilization for blood cancers rose among Hispanic and younger patients to equal the rate of non-Hispanic white patients.Non-Hispanic Black patients had a lower rate of HCT for all six diseases studied.Pediatric, adolescent and young adult patients had a higher rate than adult patients of allogeneic HCT, which involves receiving cells from a healthy donor.

“This study shows that while progress has been made to reduce disparities among racial and ethnic groups, there’s a need to improve hematopoietic cell transplant utilization rates in older adults and in Black patients of all ages,” says Dr. Hahn, Professor of Oncology in the Department of Cancer Prevention and Control at Roswell Park and the study’s first author.

The research team also include Dr. Hahn’s Roswell Park colleague Megan Herr, PhD, and collaborators from the Medical College of Wisconsin, Milwaukee; the CIBMTR; and the Mayo Clinic.

From the world’s first chemotherapy research to the PSA prostate cancer biomarker, Roswell Park Comprehensive Cancer Center generates innovations that shape how cancer is detected, treated and prevented worldwide. Driven to eliminate cancer’s grip on humanity, the Roswell Park team of 4,000 makes compassionate, patient-centered cancer care and services accessible across New York State and beyond. Founded in 1898, Roswell Park was among the first three cancer centers nationwide to become a National Cancer Institute-designated comprehensive cancer center and is the only one to hold this designation in Upstate New York. To learn more about Roswell Park Comprehensive Cancer Center and the Roswell Park Care Network, visit http://www.roswellpark.org, call 1-800-ROSWELL (1-800-767-9355) or email ASKRoswell@RoswellPark.org.

Media Contact

Julia Telford, Roswell Park Comprehensive Cancer Center, 716-845-4919, julia.telford@roswellpark.org, roswellpark.org

View original content to download multimedia:https://www.prweb.com/releases/disparities-narrowing-among-patients-undergoing-blood-stem-cell-transplant-roswell-park-study-reveals-302254312.html

SOURCE Roswell Park Comprehensive Cancer Center

Technology

IFIC Monthly Investment Fund Statistics – August 2024

Published

9 mins ago

September 20, 2024

Mutual fund and exchange-traded fund (ETF) assets and sales

TORONTO, Sept. 20, 2024 /CNW/ – The Investment Funds Institute of Canada (IFIC) today announced investment fund net sales and net assets for August 2024.

Mutual fund assets totalled $2.145 trillion at the end of August, up by $7.7 billion or 0.4 per cent since July. Mutual fund net sales were $2.4 billion in August.

ETF assets totalled $464.0 billion at the end of August, up by $5.9 billion or 1.3 per cent since July. ETF net sales were $4.3 billion in August.

August insights

Mutual fund net sales were positive for the second consecutive month.Year to date, mutual funds experienced inflows of $3.6 billion, compared to outflows of $23.2 billion over the same period last year.Money market funds experienced the largest single month of outflows since November 2021, largely the result of outflows from high-interest saving account funds.Year to date, ETFs experienced inflows of $41.6 billion, which is 82 per cent higher than inflows over the same period last year.

Mutual fund net sales/net redemptions ($ millions)*

Asset class

Aug 2024

Jul 2024

Aug 2023

YTD 2024

YTD 2023

Long-term funds

Balanced

(1,383)

(1,025)

(4,750)

(21,271)

(31,002)

Equity

1,093

2,088

(2,152)

1,212

(13,584)

Bond

2,538

3,307

(427)

16,339

8,591

Specialty

547

800

366

5,157

2,642

Total long-term funds

2,795

5,169

(6,963)

1,436

(33,353)

Total money market funds

(420)

1,302

2,194

10,142

Total

2,375

5,200

(5,661)

3,630

(23,211)

Mutual fund net assets ($ billions)*

Asset class

Aug 2024

Jul 2024

Aug 2023

Dec 2023

Long-term funds

Balanced

964.3

962.9

893.6

904.3

Equity

823.5

821.3

701.3

714.4

Bond

268.7

264.7

234.5

242.3

Specialty

34.1

33.7

25.8

27.0

Total long-term funds

2,090.6

2,082.6

1,855.2

1,888.0

Total money market funds

54.4

54.8

45.7

50.7

Total

2,145.0

2,137.4

1,900.9

1,938.7

See below for important information about this data.

ETF net sales/net redemptions ($ millions)*

Asset class

Aug 2024

Jul 2024

Aug 2023

YTD 2024

YTD 2023

Long-term funds

Balanced

464

558

140

3,305

1,103

Equity

1,748

2,380

330

22,822

6,776

Bond

1,176

1,463

641

13,359

7,085

Specialty

991

254

(280)

1,288

1,047

Total long-term funds

4,378

4,655

832

40,775

16,011

Total money market funds

(94)

310

1,051

863

6,864

Total

4,285

4,965

1,883

41,638

22,875

ETF net assets ($ billions)*

Asset class

Aug 2024

Jul 2024

Aug 2023

Dec 2023

Long-term funds

Balanced

20.2

19.6

13.9

15.1

Equity

290.5

286.6

219.7

232.5

Bond

109.2

107.7

86.3

94.6

Specialty

17.8

17.7

11.7

14.4

Total long-term funds

437.8

431.7

331.6

356.7

Total money market funds

26.3

26.4

23.1

25.3

Total

464.0

458.1

354.7

382.0

See below for important information about data.

IFIC direct survey data (which accounts for approximately 87 per cent of total mutual fund industry assets and approximately 80 per cent of total ETF industry assets) is complemented by estimated data to provide comprehensive industry totals.

IFIC makes every effort to verify the accuracy, currency, and completeness of the information, however, IFIC does not guarantee, warrant, represent or undertake that the information provided is correct, accurate or current.

* Important information about investment fund data

Mutual fund data is adjusted to remove double counting arising from mutual funds that invest in other mutual funds.Starting with January 2022 data, ETF data is adjusted to remove double counting arising from Canadian-listed ETFs that invest in units of other Canadian-listed ETFs. Any references to IFIC ETF assets and sales figures prior to 2022 data should indicate that the data has not been adjusted for ETF of ETF double counting.The balanced funds category includes funds that invest directly in a mix of stocks and bonds or obtain exposure through investing in other funds.Mutual fund data reflects the investment activity of Canadian retail investors.ETF data reflects the investment activity of Canadian retail and institutional investors.

About IFIC

The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation. Learn more about IFIC

SOURCE The Investment Funds Institute of Canada

Technology

VINFAST REPORTS UNAUDITED SECOND QUARTER 2024 FINANCIAL RESULTS

Published

10 mins ago

September 20, 2024

SINGAPORE, Sept. 20, 2024 /PRNewswire/ — VinFast Auto Ltd. (“VinFast” or the “Company”) (Nasdaq: VFS), a subsidiary of Vingroup JSC, and Vietnam’s only pure-play electric vehicle manufacturer, today announced its unaudited financial results for the second quarter ended June 30, 2024.

VinFast delivered 13,172 EVs in Q2, up by 44% QoQ and 43% YoY, bringing its delivery total for the first half of 2024 to 22,348 vehicles, a 101% increase compared to the same period last year.The Company recorded $357 million in revenue for Q2, up by 33% QoQ and 9% YoY.Vietnam, where momentum is accelerating, will play a key role in driving VinFast’s revenue in the remainder of 2024.

Madam Thuy Le, Chairwoman of VinFast, said: “We remain focused on our mission to contribute to a sustainable future for everyone. Our strategy is unchanged with regards to being a vertically-integrated green mobility solutions company providing high quality and good-value electric vehicles. With the delivery of VF 3 starting in Q3, we have completed the development of all 7 e-SUV models.”

Ms. Lan Anh Nguyen, Chief Financial Officer of VinFast, added: “Q2 of 2024 aligned with our forecasts, driven in large part by the increasing demand for VinFast’s EVs in Vietnam. This growth in our home market has been crucial in advancing our mission to promote EV adoption and green mobility. The momentum we’ve built in Vietnam has laid a solid foundation for our strong position in this key market to continue thriving.”

VinFast EV Deliveries Rose 44% QoQ and Revenue Grew 33% QoQ

During the quarter, VinFast delivered 13,172 vehicles, a 44% increase compared to the previous quarter and a 43% increase year-over-year. This brings total deliveries for the first half of 2024 to 22,348 vehicles, representing a 101% increase compared to the same period last year.

One of the key drivers behind this growth was the increasing adoption of electric vehicles in the Vietnamese market, where VinFast recorded a 108% year-over-year increase in B2C deliveries in Q2.

VinFast reported $357 million in revenue in Q2, up by 9% year-over-year and by 33% quarter-over-quarter.

The Company’s gross loss for Q2 was ($224) million, equivalent to a gross margin of (62.7%). This was primarily due to an impairment charge on Net Residual Value (NRV) of $104 million, compared to $5 million in Q1.

Expanding Global Footprint to Drive Sales

VinFast’s strategic expansion through dealership network has shown progress.

As of August 31, VinFast had 155 showrooms across all markets, of which around 70% were dealerships.

Strengthening Presence in Key Markets

Vietnam

VinFast achieved its highest year-over-year growth for Vietnam in the first half of 2024. The VF 5 model has been instrumental in driving the Company’s strong sales performance, securing the VF 5’s position as a domestic leader in its segment. Additionally, the Company began delivering its highly anticipated VF 3, VinFast’s mini electric SUV, in the third quarter of 2024.

North America

In the second quarter of 2024, VinFast continued to build its foundation in the U.S. by introducing its products and strategies to key dealerships. To bolster brand awareness, VinFast expanded customer outreach through its dealer network and established a Dealer Advisory Council to gain valuable insights. As of the second quarter, VinFast now operates in eight states, California, Connecticut, Florida, Kansas, Kentucky, North Carolina, New York, and Texas, with a combined network of dealer stores and VinFast-owned showrooms.

In Canada, VinFast recorded 15% quarter-over-quarter growth in the second quarter and is seeing this momentum continue in the third quarter, with July and August seeing its highest delivery levels for North America in the past year.

Southeast Asia

VinFast entered the Indonesian market less than six months ago and has since established 15 showrooms across major cities, including Jakarta and Surabaya. VinFast began delivering its first batch of VF e34 electric vehicle during the third quarter of 2024, making Indonesian customers the first globally to receive right-hand drive VinFast EVs. VinFast also broke ground its completely knocked down (CKD) facility in Indonesia.

VinFast’s innovative battery subscription offer has been a key driver of sales in Indonesia, accounting for nearly 100% of its total sales and orders. This program has also garnered positive feedback in the Philippines, further validating its commitment to making electric vehicles more accessible.

Building on the positive response from dealers in the Philippines, VinFast is eager to introduce additional models to the market in the coming months, further expanding its footprint and product offerings in the region.

Outlook for the Remainder of 2024

VinFast reaffirms its target to deliver approximately 80,000 units in 2024.

Vietnam is expected to play a key role in driving revenue for the remainder of 2024. The growing success of the VF 5 model, along with VinFast’s extensive charging infrastructure, flexible battery subscription program, and strong after-sales services, are expected to reinforce its leadership position in the Vietnamese electric vehicle market.

While international markets continue to face near-term challenges, they remain integral to VinFast’s longer-term growth strategy as the company expands its global brand and distribution network.

VinFast remains committed to its mission of accelerating the global shift to sustainable electric mobility through continuous innovation, product expansion, and market presence./.

Conference Call

The Company’s management will host its second quarter 2024 earnings conference call at 8:00 AM U.S. Eastern Time on September 20, 2024.

Live Webcast: https://edge.media-server.com/mmc/p/urnhoxtg
For additional information, please visit https://vinfastauto.us/investor-relations/
Investor Relations – Email: ir@vinfastauto.com
Media Relations – Email: info@vingroup.com

About VinFast

VinFast (NASDAQ: VFS), a subsidiary of Vingroup JSC, one of Vietnam’s largest conglomerates, is a pure-play electric vehicle (“EV”) manufacturer with the mission of making EVs accessible to everyone. VinFast’s product lineup today includes a wide range of electric SUVs, e-scooters, and e-buses. VinFast is currently embarking on its next growth phase through rapid expansion of its distribution and dealership network globally and increasing its manufacturing capacities with a focus on key markets across North America, Europe and Asia. Learn more at www.vinfastauto.us

Forward-Looking Statements

Forward-looking statements in this announcement, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1955. These statements include statements regarding our future results of operations and financial position, planned products and services, business strategy and plans, objectives of management for future operations of VinFast, market size and growth opportunities, competitive position and technological and market trends and involve known and unknown risks that are difficult to predict. As a result, our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “shall,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” “goal,” “objective,” “seeks,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (i) the effect of the consummation of the business combination and the public listing of the Company’s securities on its business relationships, performance, financial condition and business generally, (ii) the risk that the Company’s securities may experience a material price decline and volatility in the price of such securities due to a variety of factors, (iii) the adverse impact of any legal proceedings and regulatory inquiries and investigations on the Company’s business, (iv) the Company’s potential inability to maintain the listing of its securities on Nasdaq, (v) the risk associated with the Company’s limited operating history, (vi) the ability of the Company to achieve profitability, positive cash flows from operating activities and a net working capital surplus, (vii) the ability of the Company to fund its capital requirements through additional debt and equity financing under commercially reasonable terms and the risk of shareholding dilution as a result of additional capital raising, if applicable, (viii) risks associated with being a new entrant in the EV industry, (ix) the risks of the Company’s brand, reputation, public credibility and consumer confidence in its business being harmed by negative publicity, (x) the Company’s ability to successfully introduce and market new products and services, (xi) competition in the automotive industry, (xii) the Company’s ability to adequately control the costs associated with its operations, (xiii) the ability of the Company to obtain components and raw materials according to schedule at acceptable prices, quality and volumes acceptable from its suppliers, (xiv) the Company’s ability to maintain relationships with existing suppliers who are critical and necessary to the output and production of its vehicles and to create relationships with new suppliers, (xv) the Company’s ability to establish manufacturing facilities outside of Vietnam and expand capacity in a timely manner and within budget, (xvi) the risk that the Company’s actual vehicle sales and revenue could differ materially from expected levels based on the number of reservations received, (xvii) the demand for, and consumers’ willingness to adopt, EVs, (xiii) the availability and accessibility of EV charging stations or related infrastructure, (xix) the unavailability, reduction or elimination of government and economic incentives or government policies which are favorable for EV manufacturers and buyers, (xx) failure to maintain an effective system of internal control over financial reporting and to accurately and timely report the Company’s financial condition, results of operations or cash flows, (xxi) battery pack failures in the Company or its competitor’s EVs, (xxii) failure of the Company’s business partners to deliver their services, (xxiii) errors, bugs, vulnerabilities, design defects or other issues related to technology used or involved in the Company’s EVs or operations, (xxiv) the risk that the Company’s research and development efforts may not yield expected results, (xxv) risks associated with autonomous driving technologies, (xxvi) product recalls that the Company may be required to make, (xxvii) the ability of the Company’s controlling shareholder to control and exert significant influence on the Company, (xxiii) the Company’s reliance on financial and other support from Vingroup and its affiliates and the close association between the Company and Vingroup and its affiliates, (xxix) conflicts of interests with or any events impacting the reputation of Vingroup affiliates or unfavorable market conditions or adverse business operations of Vingroup and Vingroup affiliates and (xxx) other risks discussed in our reports filed or furnished to the Securities and Exchange Commission.

All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. You are cautioned not to place undue reliance on any forward-looking statements, which are made only as of the date of this announcement. VinFast does not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If VinFast updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. The inclusion of any statement in this announcement does not constitute an admission by VinFast or any other person that the events or circumstances described in such statement are material. Undue reliance should not be placed upon the forward-looking statements.

View original content to download multimedia:https://www.prnewswire.com/news-releases/vinfast-reports-unaudited-second-quarter-2024-financial-results-302254421.html

SOURCE VinFast