Technology
VNET Reports Unaudited Second Quarter 2024 Financial Results
Published
4 weeks agoon
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BEIJING, Aug. 27, 2024 /PRNewswire/ — VNET Group, Inc. (Nasdaq: VNET) (“VNET” or the “Company”), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the second quarter ended June 30, 2024.
“We delivered another solid quarter through continued strong execution of our effective dual-core development strategy,” said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET. “The wholesale IDC business remained our key growth driver, highlighted by three new orders totaling 235MW for our Ulanqab IDC Campus in the Greater Beijing Area. Climbing utilization rates and a high pre-commitment rate for capacity under construction demonstrate our reliable, high-quality IDC services’ enduring customer appeal in the competitive market. Furthermore, we advanced our AI data center development with steady progress on our green, high-tech Ulanqab IDC Campus, enabling us to seamlessly meet the increasing AI-driven demand. Going forward, we will continue to strengthen our innovative service offerings, vast high-power density resources and diverse AI-related capabilities to drive our healthy development and create value for all of our stakeholders.”
Qiyu Wang, Chief Financial Officer of VNET, commented, “In the second quarter, we remained focused on high-quality revenue businesses while enhancing efficiency and profitability, tactics that continued to yield positive outcomes. Our total net revenues increased by 9.4% year over year to RMB1.99 billion, mainly driven by wholesale revenue growth of 81% year over year, while operating expenses decreased by 7.7% year over year and 36.8% quarter over quarter. Our adjusted EBITDA also grew by 7.3% year over year to RMB573.8 million. In addition, we recorded a net income of RMB71.8 million in the second quarter, a significant improvement from the net loss of RMB159.0 million in the first quarter of 2024, representing a quarter over quarter increase of RMB230.9 million, thanks to our consistent operational improvements. Supported by our robust business fundamentals and healthy cash position, we will continue to invest in our core capabilities and AI-driven opportunities, propelling high-quality, sustainable growth.”
Second Quarter 2024 Financial Highlights
Total net revenues increased by 9.4% to RMB1.99 billion (US$274.4 million) from RMB1.82 billion in the same period of 2023.Net revenues from the IDC business[1] increased by 12.1% to RMB1.37 billion (US$188.1 million) from RMB1.22 billion in the same period of 2023.Net revenues from the wholesale IDC business (“wholesale revenues”) increased by 81.0% to RMB402.0 million (US$55.3 million) from RMB222.1 million in the same period of 2023.Net revenues from the retail IDC business (“retail revenues”) decreased by 3.2% to RMB964.8 million (US$132.8 million) from RMB996.6 million in the same period of 2023.Net revenues from the non-IDC business[2] increased by 4.0% to RMB627.0 million (US$86.3 million) from RMB603.1 million in the same period of 2023.Adjusted cash gross profit (non-GAAP) increased by 6.0% to RMB787.3 million (US$108.3 million) from RMB742.9 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) was 39.5%, compared with 40.8% in the same period of 2023.Adjusted EBITDA (non-GAAP) increased by 7.3% to RMB573.8 million (US$79.0 million) from RMB535.0 million in the same period of 2023. Adjusted EBITDA margin (non-GAAP) was 28.8%, compared with 29.4% in the same period of 2023.Net income increased by RMB309.4 million and RMB230.9 million to RMB71.8 million (US$9.9 million) in the second quarter, compared with a net loss of RMB237.6 million in the same period of 2023 and a net loss of RMB159.0 million in the first quarter of 2024, respectively.
Second Quarter 2024 Operational Highlights
Wholesale IDC Business[3]
Capacity in service was 332MW as of June 30, 2024, compared with 332MW as of March 31, 2024, and 224MW as of June 30, 2023. Capacity under construction was 279MW as of June 30, 2024.Capacity utilized by customers reached 252MW as of June 30, 2024, compared with 236MW as of March 31, 2024, and 142MW as of June 30, 2023. The sequential increase during the second quarter of 2024 was 16MW, which was mainly contributed by E-JS Campus 02 C data center.Utilization rate[4] of wholesale capacity was 75.9% as of June 30, 2024, compared with 71.0% as of March 31, 2024, and 63.4% as of June 30, 2023.Utilization rate of mature wholesale capacity[5] was 94.9% as of June 30, 2024, compared with 94.6% as of March 31, 2024, and 94.2% as of June 30, 2023.Utilization rate of ramp-up wholesale capacity[6] was 45.7% as of June 30, 2024, compared with 33.6% as of March 31, 2024, and 39.9% as of June 30, 2023.Total capacity committed[7] was 326MW as of June 30, 2024, compared with 326MW as of March 31, 2024, and 194MW as of June 30, 2023.Commitment rate[8] for capacity in service was 98.1% as of June 30, 2024, compared with 98.1% as of March 31, 2024 and 86.7% as of June 30, 2023.Total capacity pre-committed[9] was 238MW and pre-commitment rate[10] for capacity under construction was 85.5% as of June 30, 2024.
Retail IDC Business[11]
Capacity in service was 52,177 cabinets as of June 30, 2024, compared with 52,068 cabinets as of March 31, 2024, and 53,702 cabinets as of June 30, 2023.Capacity utilized by customers reached 33,253 cabinets as of June 30, 2024, compared with 33,312 cabinets as of March 31, 2024, and 33,320 cabinets as of June 30, 2023.Utilization rate of retail capacity was 63.7% as of June 30, 2024, compared with 64.0% as of March 31, 2024, and 62.0% as of June 30, 2023.Utilization rate of mature retail capacity[12] was 72.5% as of June 30, 2024, compared with 72.8% as of March 31, 2024, and 73.5% as of June 30, 2023.Utilization rate of ramp-up retail capacity[13] was 12.7% as of June 30, 2024, compared with 13.0% as of March 31, 2024, and 16.3% as of June 30, 2023.Monthly recurring revenue (MRR) per retail cabinet was RMB8,753 in the second quarter of 2024, compared with RMB8,742 in the first quarter of 2024 and RMB8,931 in the second quarter of 2023.
[1] IDC business refers to managed hosting services, consisting of the wholesale IDC business and the retail IDC business. Beginning in the first quarter of 2024, our IDC business was subdivided into wholesale IDC business and retail IDC business according to the nature and scale of our data center projects. Prior to 2024, the subdivision was based on customer contract types.
[2] Non-IDC business consists of cloud services and VPN services.
[3] For wholesale IDC business, certain projects hosted in our E-JS02 data center with an aggregate of 27MW capacity were excluded and are expected to be continuously excluded from in-service wholesale due to pending commercial discussion with the client. Such projects were included as in-service wholesale from the first quarter of 2021 to the fourth quarter of 2023, given that such projects had been delivered to the client based on the terms of the MOU.
[4] Utilization rate is calculated by dividing capacity utilized by customers by the capacity in service.
[5] Mature wholesale capacity refers to wholesale data centers in which utilization rate is at or above 80%.
[6] Ramp-up wholesale capacity refers to wholesale data centers in which utilization rate is below 80%.
[7] Total capacity committed is the capacity committed to customers pursuant to customer agreements remaining in effect.
[8] Commitment rate is calculated by total capacity committed divided by total capacity in service.
[9] Total capacity pre-committed is the capacity under construction which is pre-committed to customers pursuant to customer agreements remaining in effect.
[10] Pre-commitment rate is calculated by total capacity pre-committed divided by total capacity under construction.
[11] For retail IDC business, since the first quarter of 2024, we have excluded a certain number of reserved cabinets from the capacity in service. Reserved cabinets refer to those that have not been utilized on a large scale, those that are planned to be closed, or those that are planned to be further upgraded. As of June 30, 2023, March 31, 2024, and June 30, 2024, 4,426, 4,426, and 4,150 reserved cabinets, respectively, were excluded from the calculation of utilization rate of retail IDC business capacity.
[12] Mature retail capacity refers to retail data centers that came into service prior to the past 24 months.
[13] Ramp-up retail capacity refers to retail data centers that came into service within the past 24 months, or mature retail data centers that have undergone improvements within the past 24 months.
Second Quarter 2024 Financial Results
TOTAL NET REVENUES: Total net revenues in the second quarter of 2024 were RMB1.99 billion (US$274.4 million), representing an increase of 9.4% from RMB1.82 billion in the same period of 2023. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business.
Net revenues from IDC business increased by 12.1% to RMB1.37 billion (US$188.1 million) from RMB1.22 billion in the same period of 2023. The year-over-year increase was mainly driven by an increase in wholesale revenues and partially offset by a decrease in retail revenues.
Wholesale revenues increased by 81.0% to RMB402.0 million (US$55.3 million) from RMB222.1 million in the same period of 2023.Retail revenues decreased to RMB964.8 million (US$132.8 million) from RMB996.6 million in the same period of 2023.
Net revenues from non-IDC business increased by 4.0% to RMB627.0 million (US$86.3 million) from RMB603.1 million in the same period of 2023. The year-over-year increase was driven by cloud and VPN businesses.
GROSS PROFIT: Gross profit in the second quarter of 2024 was RMB424.9 million (US$58.5 million), representing an increase of 24.0% from RMB342.7 million in the same period of 2023. Gross margin in the second quarter of 2024 was 21.3%, compared with 18.8% in the same period of 2023. The year-over-year increase was primarily attributable to a reduction in depreciation expense due to the change in the estimated useful lives of property and equipment starting from January 1, 2024.
ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation, amortization, and share-based compensation expenses, was RMB787.3 million (US$108.3 million) in the second quarter of 2024, compared with RMB742.9 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) in the second quarter of 2024 was 39.5%, compared with 40.8% in the same period of 2023.
OPERATING EXPENSES: Total operating expenses in the second quarter of 2024 were RMB230.3 million (US$31.7 million), compared with RMB249.5 million in the same period of 2023. The decrease in operating expenses was primarily due to a decrease in professional service fees and personnel costs.
Sales and marketing expenses were RMB58.2 million (US$8.0 million) in the second quarter of 2024, compared with RMB63.1 million in the same period of 2023.
Research and development expenses were RMB62.0 million (US$8.5 million) in the second quarter of 2024, compared with RMB81.1 million in the same period of 2023.
General and administrative expenses were RMB107.3 million (US$14.8 million) in the second quarter of 2024, compared with RMB128.0 million in the same period of 2023.
ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses, were RMB243.2 million (US$33.5 million) in the second quarter of 2024, compared with RMB241.5 million in the same period of 2023. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the second quarter of 2024 were 12.2%, compared with 13.3% in the same period of 2023.
ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the second quarter of 2024 was RMB573.8 million (US$79.0 million), representing an increase of 7.3% from RMB535.0 million in the same period of 2023. Adjusted EBITDA margin (non-GAAP) in the second quarter of 2024 was 28.8%, compared with 29.4% in the same period of 2023.
NET INCOME/LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net income attributable to VNET Group, Inc. in the second quarter of 2024 was RMB63.7 million (US$8.8 million), compared with a net loss attributable to VNET Group, Inc. of RMB232.9 million in the same period of 2023. The year-over-year increase was mainly due to our consistent operational improvement and decreases in sales and marketing expenses, research and development expenses, general and administrative expenses and foreign exchange loss.
EARNINGS PER SHARE: Basic and diluted earnings per share in the second quarter of 2024 were both RMB0.04 (US$0.01), equivalent to both RMB0.24 (US$0.06) per American depositary share (“ADS”). Each ADS represents six Class A ordinary shares. Diluted earnings per share is calculated using adjusted net income attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.
LIQUIDITY: As of June 30, 2024, the aggregate amount of the Company’s cash and cash equivalents, restricted cash and short-term investments was RMB2.22 billion (US$306.0 million).
Total short-term debt consisting of short-term bank borrowings and the current portion of long-term borrowings was RMB1.67 billion (US$230.1 million). Total long-term debt was RMB8.45 billion (US$1.16 billion), comprised of long-term borrowings of RMB6.67 billion (US$917.7 million) and convertible promissory notes of RMB1.78 billion (US$245.1 million).
Net cash generated from operating activities in the second quarter of 2024 was RMB405.2 million (US$55.8 million), compared with RMB423.5 million in the same period of 2023. During the second quarter of 2024, the Company obtained new debt financing, refinancing facilities and other financings of RMB1.45 billion (US$199.3 million).
Business Outlook
The Company expects total net revenues for 2024 to be between RMB7,800 million to RMB8,000 million, representing year-over-year growth of 5.2% to 7.9%, and adjusted EBITDA (non-GAAP) to be in the range of RMB2,220 million to RMB2,280 million, representing year-over-year growth of 8.9% to 11.8%. The above outlook remains unchanged from the previously provided estimates.
The forecast reflects the Company’s current and preliminary views on the market and its operational conditions and is subject to change.
Conference Call
The Company’s management will host an earnings conference call at 9:00 PM U.S. Eastern Time on Tuesday, August 27, 2024, or 9:00 AM Beijing Time on Wednesday, August 28, 2024.
For participants who wish to join the call, please access the links provided below to complete the online registration process.
English line:
https://s1.c-conf.com/diamondpass/10041484-y4obcl.html
Chinese line (listen-only mode):
https://s1.c-conf.com/diamondpass/10041485-qdkvjp.html
Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call.
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.vnet.com.
A replay of the conference call will be accessible through September 4, 2024, by dialing the following numbers:
US/Canada:
1 855 883 1031
Mainland China:
400 1209 216
Hong Kong, China:
800 930 639
International:
+61 7 3107 6325
Replay PIN (English line):
10041484
Replay PIN (Chinese line):
10041485
Non-GAAP Disclosure
In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this press release.
The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the Company’s current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company’s calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2672 to US$1.00, the noon buying rate in effect on June 28, 2024, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.
Statement Regarding Unaudited Condensed Financial Information
The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.
About VNET
VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers’ internet infrastructure. Customers may locate their servers and equipment in VNET’s data centers and connect to China’s internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,500 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “target,” “believes,” “estimates” and similar statements. Among other things, quotations from management in this announcement as well as VNET’s strategic and operational plans contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET’s goals and strategies; VNET’s liquidity conditions; VNET’s expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET’s services; VNET’s expectations regarding keeping and strengthening its relationships with customers; VNET’s plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET’s reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law.
Investor Relations Contact:
Xinyuan Liu
Tel: +86 10 8456 2121
Email: ir@vnet.com
VNET GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))
As of
As of
December 31, 2023
June 30, 2024
RMB
RMB
US$
Assets
Current assets:
Cash and cash equivalents
2,243,537
1,796,105
247,152
Restricted cash
2,854,568
338,846
46,627
Accounts and notes receivable, net
1,715,975
1,802,572
248,042
Short-term investments
356,820
87,871
12,091
Prepaid expenses and other current assets
2,375,341
2,673,585
367,898
Amounts due from related parties
277,237
345,408
47,530
Total current assets
9,823,478
7,044,387
969,340
Non-current assets:
Property and equipment, net
13,024,393
14,281,580
1,965,211
Intangible assets, net
1,383,406
1,340,625
184,476
Land use rights, net
602,503
593,309
81,642
Operating lease right-of-use assets, net
4,012,329
4,384,000
603,258
Restricted cash
882
882
121
Deferred tax assets, net
247,644
285,199
39,245
Long-term investments, net
757,949
816,423
112,344
Other non-current assets
533,319
372,144
51,209
Total non-current assets
20,562,425
22,074,162
3,037,506
Total assets
30,385,903
29,118,549
4,006,846
Liabilities and Shareholders’ Equity
Current liabilities:
Short-term bank borrowings
30,000
562,270
77,371
Accounts and notes payable
696,177
726,827
100,015
Accrued expenses and other payables
2,783,102
2,717,898
373,995
Advances from customers
1,605,247
1,530,852
210,652
Deferred revenue
95,477
87,103
11,986
Income taxes payable
35,197
61,930
8,522
Amounts due to related parties
356,080
379,070
52,162
Current portion of long-term borrowings
723,325
1,110,202
152,769
Current portion of finance lease liabilities
115,806
95,687
13,167
Current portion of deferred government grants
8,062
10,311
1,419
Current portion of operating lease liabilities
780,164
860,446
118,401
Convertible promissory notes
4,208,495
–
–
Total current liabilities
11,437,132
8,142,596
1,120,459
Non-current liabilities:
Long-term borrowings
5,113,521
6,668,842
917,663
Convertible promissory notes
1,769,946
1,781,082
245,085
Non-current portion of finance lease liabilities
1,159,525
1,142,194
157,171
Unrecognized tax benefits
98,457
98,457
13,548
Deferred tax liabilities
688,362
698,162
96,070
Deferred government grants
145,112
260,876
35,898
Non-current portion of operating lease liabilities
3,270,759
3,596,438
494,886
Derivative liability
188,706
185,297
25,498
Total non-current liabilities
12,434,388
14,431,348
1,985,819
Shareholders’ equity
Ordinary shares
107
109
15
Additional paid-in capital
17,291,312
17,260,924
2,375,182
Accumulated other comprehensive loss
(14,343)
(20,084)
(2,764)
Statutory reserves
80,615
80,615
11,093
Accumulated deficit
(11,016,323)
(11,139,653)
(1,532,867)
Treasury stock
(326,953)
(173,427)
(23,864)
Total VNET Group, Inc. shareholders’ equity
6,014,415
6,008,484
826,795
Noncontrolling interest
499,968
536,121
73,773
Total shareholders’ equity
6,514,383
6,544,605
900,568
Total liabilities and shareholders’ equity
30,385,903
29,118,549
4,006,846
VNET GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data)
Three months ended
Six months ended
June 30, 2023
March 31, 2024
June 30, 2024
June 30, 2023
June 30, 2024
RMB
RMB
RMB
US$
RMB
RMB
US$
Net revenues
1,821,744
1,898,126
1,993,760
274,351
3,627,526
3,891,886
535,541
Cost of revenues
(1,478,995)
(1,487,405)
(1,568,865)
(215,883)
(2,932,397)
(3,056,270)
(420,557)
Gross profit
342,749
410,721
424,895
58,468
695,129
835,616
114,984
Operating income (expenses)
Operating income
13,895
3,949
–
–
47,274
3,949
543
Sales and marketing expenses
(63,068)
(71,743)
(58,225)
(8,012)
(128,844)
(129,968)
(17,884)
Research and development expenses
(81,126)
(75,389)
(61,998)
(8,531)
(160,876)
(137,387)
(18,905)
General and administrative expenses
(128,017)
(226,297)
(107,297)
(14,765)
(255,464)
(333,594)
(45,904)
Reversal of (allowance for) doubtful debt
8,833
5,175
(2,753)
(379)
11,282
2,422
333
Total operating expenses
(249,483)
(364,305)
(230,273)
(31,687)
(486,628)
(594,578)
(81,817)
Operating profit
93,266
46,416
194,622
26,781
208,501
241,038
33,167
Interest income
10,038
12,129
5,449
750
15,719
17,578
2,419
Interest expense
(71,709)
(137,682)
(92,172)
(12,683)
(141,495)
(229,854)
(31,629)
Other income
14,192
4,814
30,475
4,193
15,356
35,289
4,856
Other expenses
(320)
(1,422)
(6,900)
(949)
(3,912)
(8,322)
(1,145)
Changes in the fair value of financial liabilities
154
3,858
712
98
21,452
4,570
629
Foreign exchange loss
(271,630)
(28,361)
(4,387)
(604)
(192,997)
(32,748)
(4,506)
(Loss) income before income taxes
and gain from equity method investments
(226,009)
(100,248)
127,799
17,586
(77,376)
27,551
3,791
Income tax expenses
(12,545)
(61,384)
(59,149)
(8,139)
(57,431)
(120,533)
(16,586)
Gain from equity method investments
983
2,606
3,199
440
809
5,805
799
Net (loss) income
(237,571)
(159,026)
71,849
9,887
(133,998)
(87,177)
(11,996)
Net loss (income) attributable to noncontrolling interest
4,692
(27,979)
(8,174)
(1,125)
(16,588)
(36,153)
(4,975)
Net (loss) income attributable to the VNET Group, Inc.
(232,879)
(187,005)
63,675
8,762
(150,586)
(123,330)
(16,971)
(Loss) earnings per share
Basic
(0.26)
(0.12)
0.04
0.01
(0.17)
(0.08)
(0.01)
Diluted
(0.26)
(0.12)
0.04
0.01
(0.19)
(0.08)
(0.01)
Shares used in (loss) earnings per share
computation
Basic*
888,705,981
1,568,300,360
1,594,662,099
1,594,662,099
888,555,145
1,581,481,229
1,581,481,229
Diluted*
888,705,981
1,568,300,360
1,595,517,338
1,595,517,338
905,386,636
1,581,481,229
1,581,481,229
(Loss) earnings per ADS (6 ordinary shares equal to 1 ADS)
Basic
(1.56)
(0.72)
0.24
0.06
(1.02)
(0.48)
(0.06)
Diluted
(1.56)
(0.72)
0.24
0.06
(1.14)
(0.48)
(0.06)
* Shares used in (loss) earnings per share/ADS computation were computed under weighted average method.
VNET GROUP, INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))
Three months ended
Six months ended
June 30, 2023
March 31, 2024
June 30, 2024
June 30, 2023
June 30, 2024
RMB
RMB
RMB
US$
RMB
RMB
US$
Gross profit
342,749
410,721
424,895
58,468
695,129
835,616
114,985
Plus: depreciation and amortization
400,173
352,604
364,616
50,173
802,050
717,220
98,693
Plus: share-based compensation expenses
–
2,190
(2,190)
(301)
–
–
–
Adjusted cash gross profit
742,922
765,515
787,321
108,340
1,497,179
1,552,836
213,678
Adjusted cash gross margin
40.8 %
40.3 %
39.5 %
39.5 %
41.3 %
39.9 %
39.9 %
Operating expenses
(249,483)
(364,305)
(230,273)
(31,687)
(486,628)
(594,578)
(81,817)
Plus: share-based compensation expenses
8,006
111,681
(12,962)
(1,784)
16,342
98,719
13,584
Adjusted operating expenses
(241,477)
(252,624)
(243,235)
(33,471)
(470,286)
(495,859)
(68,233)
Operating profit
93,266
46,416
194,622
26,781
208,501
241,038
33,168
Plus: depreciation and amortization
433,735
379,551
394,334
54,262
866,364
773,885
106,490
Plus: share-based compensation expenses
8,006
113,871
(15,152)
(2,085)
16,342
98,719
13,584
Adjusted EBITDA
535,007
539,838
573,804
78,958
1,091,207
1,113,642
153,242
Adjusted EBITDA margin
29.4 %
28.4 %
28.8 %
28.8 %
30.1 %
28.6 %
28.6 %
VNET GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))
Three months ended
June 30, 2023
March 31, 2024
June 30, 2024
RMB
RMB
RMB
US$
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income
(237,571)
(159,026)
71,849
9,887
Adjustments to reconcile net (loss) income to net cash generated from operating activities:
Depreciation and amortization
433,015
377,086
388,711
53,488
Share-based compensation expenses
8,006
113,871
(15,152)
(2,085)
Others
357,787
137,297
101,890
14,021
Changes in operating assets and liabilities
Accounts and notes receivable
8,388
(226,973)
142,469
19,604
Prepaid expenses and other current assets
70,627
(44,104)
(79,893)
(10,993)
Accounts and notes payable
33,434
77,668
(47,018)
(6,470)
Accrued expenses and other payables
(5,950)
56,105
(61,463)
(8,458)
Deferred revenue
(35,743)
5,626
(14,000)
(1,926)
Advances from customers
(114,977)
(11,090)
(63,305)
(8,711)
Others
(93,540)
(58,873)
(18,884)
(2,599)
Net cash generated from operating activities
423,476
267,587
405,204
55,758
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment
(394,812)
(1,005,368)
(998,489)
(137,397)
Purchases of intangible assets
(10,178)
(5,965)
(7,594)
(1,045)
(Payments for) proceeds from investments
(655,815)
359,239
(138,224)
(19,020)
Proceeds from other investing activities
9,295
1,154
117,209
16,128
Net cash used in investing activities
(1,051,510)
(650,940)
(1,027,098)
(141,334)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank borrowings
169,204
1,156,279
690,848
95,064
Repayments of bank borrowings
(55,865)
(51,441)
(533,324)
(73,388)
Repurchase of 2025 Convertible Notes
(380,333)
–
–
–
Repurchase of 2026 Convertible Notes
–
(4,262,340)
–
–
Payments for finance leases
(67,172)
(39,602)
(9,586)
(1,319)
Proceeds from other financing activities
285,013
591,446
516,493
71,072
Net cash (used in) generated from financing activities
(49,153)
(2,605,658)
664,431
91,429
Effect of foreign exchange rate changes on cash, cash
equivalents and restricted cash
51,314
(20,050)
3,370
464
Net (decrease) increase in cash, cash equivalents and
restricted cash
(625,873)
(3,009,061)
45,907
6,317
Cash, cash equivalents and restricted cash at
beginning of period
3,242,842
5,098,987
2,089,926
287,583
Cash, cash equivalents and restricted cash at end of period
2,616,969
2,089,926
2,135,833
293,900
View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-second-quarter-2024-financial-results-302231598.html
SOURCE VNET Group, Inc.
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Technology
Supreme Court Justice Michelle O’Bonsawin Joins Elementary Students for Live Virtual Q&A and Chapter One Storybook Reading on Sep. 24
Published
1 hour agoon
September 21, 2024By
The Honourable Justice Michelle O’Bonsawin, the first Indigenous person appointed to the Supreme Court of Canada, will join elementary students in a live virtual Q&A on September 24, from 1:00-2:15 pm ET, following a reading of the children’s storybook, “Daanis the Judge.” This event is hosted by Chapter One, a children’s literacy charity, to commemorate the National Day for Truth and Reconciliation. Lawyer Victoria Perrie, writer of “Daanis the Judge,” will read aloud the inspiring story, which is based on Justice O’Bonsawin’s remarkable journey. Illustrator EJ Miller-Larson will join Justice O’Bonsawin and Perrie in a moderated Q&A session with over 1900 elementary students.
TORONTO, Sept. 21, 2024 /PRNewswire-PRWeb/ — The Honourable Justice Michelle O’Bonsawin, the first Indigenous person to be appointed to the Supreme Court of Canada, will join elementary students in a live virtual Q&A following a live online reading of the original children’s storybook “Daanis the Judge,” on September 24, from 1:00-2:15 pm ET. The event will be hosted by Chapter One to mark the National Day for Truth and Reconciliation. Chapter One is a children’s literacy charity that provides 1:1 high-impact reading tutoring and co-creates original storybooks with participating communities nationwide.
Métis-Cree lawyer Victoria Perrie, who wrote “Daanis the Judge,” will lead the live reading. Students will ask questions during a moderated Q&A with Justice O’Bonsawin, Perrie, and illustrator EJ Miller-Larson, of the Fond du Lac Band and Oneida Nation.
“Daanis the Judge” was inspired by Justice O’Bonsawin’s trailblazing career. It tells the story of a young student, Daanis, who dreams of becoming a judge after learning about Justice O’Bonsawin’s achievements.
The story is part of Chapter One’s growing collection of original children’s e-storybooks, co-created with Indigenous writers, illustrators and communities. The e-storybooks celebrate Indigenous experiences and perspectives, and feature audio clips of Elders pronouncing foundational words in their communities’ first languages. All e-storybooks are provided for free through the Global Free Library.
About Chapter One
Chapter One (chapterone.org/ca) is a global nonprofit and registered Canadian charity that provides one-on-one early literacy tutoring programs to 2,300 children in eight provinces and territories across Canada. Its proven “short burst” high-impact tutoring approach—five-minute sessions, three to five times a week—is ideally suited to young children’s attention spans and aligns with the Science of Reading. In one of the largest randomized control trials conducted on early literacy instruction, researchers from Stanford University found that 7 out of 10 students receiving Chapter One high impact tutoring achieved phonics benchmarks by the end of Kindergarten, compared to 32% in the control group.
Children at risk of reading failure receive 1:1 reading support from trained, paid paraprofessional tutors through Chapter One’s online reading platform and custom software. Programs are delivered in-person and virtually in classrooms through agreements with schools and school boards, and at home on families’ smartphones, connecting struggling readers with individualized reading support—regardless of location and circumstance, even in some of the most geographically remote communities in Canada.
In addition to its tutoring programs, Chapter One collaborates with Indigenous communities to co-create children’s stories that represent the communities’ priorities and experiences and advance language revitalization efforts. The e-storybooks are provided for free online, as part of the Global Free Library.
Event details
The Live Virtual Q&A and Reading of “Daanis the Judge” with the Honourable Justice O’Bonsawin takes place on Tuesday, September 24, from 1:00-2:15 pm ET via Zoom. The event is open to elementary classes (Grades 1-6). Teachers/principals must register their classes in advance using this link.
Media Contact
Denise Orosa, Chapter One Canada, 1 4374224825, denise.orosa@chapterone.org, chapterone.org/ca
View original content to download multimedia:https://www.prweb.com/releases/supreme-court-justice-michelle-obonsawin-joins-elementary-students-for-live-virtual-qa-and-chapter-one-storybook-reading-on-sep-24-302254639.html
SOURCE Chapter One Canada
Technology
PEAC Institute Launches “24 Hour Pause for Peace: A Global Concert”
Published
3 hours agoon
September 21, 2024By
24 Hour Pause for Peace Will Be the Largest Peace Initiative Ever Worldwide, Unifying 96 Countries on Six Continents Through Music
MONTCLAIR, N.J., Sept. 21, 2024 /PRNewswire-PRWeb/ — On this International Day of Peace, PEAC Institute, part of the 2017 Nobel Peace Prize winning team, has launched “24 Hour Pause for Peace: A Global Concert,” the largest peace initiative ever organized worldwide through music.
On October 4, 2025, this ground-breaking program will activate a massive network of youth ensembles that spans 96 countries and territories across six continents and host two 24-hour commercial festivals featuring some of the biggest acts in music and entertainment. This extraordinary day-long event will be live-streamed globally, allowing millions to participate simultaneously.
“It has been 40 years since Live Aid and We Are the World historically unified and changed the world through music,” said Rebecca Irby, president and CEO of PEAC Institute. “With our planet riddled with post-pandemic fatigue, climate chaos, unsettling wars and more, we believe it is time to create a new trajectory for humanity by inviting everyone around the globe to a 24 hour pause for peace to enjoy the sounds of music and feel the transformative power of human connection,” Irby explained.
Additionally, 24 Hour Pause for Peace plans to amass more than 100 million ambassadors to sign an appeal to the United Nations calling for a 24 hour ceasefire during the children’s concerts and commercial music events. All countries are welcome to participate with no exceptions. One of Pause for Peace’s core beliefs is everyone has the right to be equally respected and heard, particularly in collectively calling for peace.
“Achieving this ambitious global endeavor requires the support and participation from the most impactful brands, organizations, and influential leaders, artists and celebrities,” said Jennifer McKenna, 24 Hour Pause for Peace CEO.
Pause for Peace is a $165 million global initiative. Currently, it is in its first phase of raising seed capital through consumer brand-aligned sponsorships and private donors. Funding for the program is tax-deductible through PEAC’s 501(c)(3) status.
“We have assembled an exceptional executive team of change agents in entertainment, production, consumer marketing, charitable development and global security to make this extraordinary, worldwide peace event happen.” McKenna added. “Now, we need companies, government entities, other nonprofits and donors who care about our cause for peace to join us in lifting up the biggest event of this generation.” To become involved in 24 Hour Pause for Peace: A Global Concert as a sponsor, partner or donor, sign up to be an Ambassador, or for more information, go to www.24hourpauseforpeace.org.
About PEAC Institute
PEAC Institute is a 501(c)(3) nonprofit organization based in the United States. PEAC stands for peace, education, art and communication. It was formed in 2016 through a campaign with partner organization, International Campaign to Abolish Nuclear Weapons (ICAN), which garnered a 2017 Nobel Peace Prize. PEAC now holds special consultative status with the Economic and Social Council of the United Nations and has a global presence working with countries and territories worldwide to reach the most marginalized youth through art and communication activities to help them explore and express. For more information on PEAC Institute, go to www.peacinstitute.org.
Media Contact
Chadwick Boyd, Pause for Peace, 1 4046060611, chadwick@24hourpauseforpeace.org, www.24hourpauseforpeace.org
View original content to download multimedia:https://www.prweb.com/releases/peac-institute-launches-24-hour-pause-for-peace-a-global-concert-302254527.html
SOURCE Pause for Peace
Technology
Global Times: China opens 12 nuclear research facilities to global scientists
Published
4 hours agoon
September 21, 2024By
The involved facilities span areas such as basic nuclear research, isotope production, nuclear environment simulation, equipment testing, and radioactive waste treatment and disposal.
VIENNA, Sept. 21, 2024 /PRNewswire/ — China will open 12 nuclear research facilities and testing platforms to international scientists and institutions to enhance global cooperation, a senior Chinese official said here on Monday.
These include the China Advanced Research Reactor, the new-generation tokamak device Huanliu-3, and the Beishan Underground Research Laboratory, Liu Jing, vice chairman of the China Atomic Energy Authority (CAEA), said at a meeting on the sidelines of the International Atomic Energy Agency’s (IAEA) annual general conference.
The facilities span areas such as basic nuclear research, isotope production, nuclear environment simulation, equipment testing, and radioactive waste treatment and disposal.
Monday’s meeting, themed “Share for Development,” was organized by the CAEA to promote international cooperation in nuclear technology research and development, as China marks the 40th anniversary of its accession to the IAEA.
Yu Jianfeng, chairman of China National Nuclear Corporation, said at the event that the company aims to deepen cooperation with the IAEA and expand international collaboration. He expressed hope that opening China’s nuclear research facilities will contribute to advancing nuclear technology globally.
IAEA’s Deputy Director General Mikhail Chudakov commended China’s remarkable achievements in nuclear energy development and highlighted the long-standing, fruitful relationship between the IAEA and the CAEA.
Welcoming China’s decision to open up more of its nuclear research and development facilities, Chudakov said the move will further strengthen the agency’s technical capacity to support its member states.
On Monday evening, the CAEA and China’s permanent mission to the United Nations (UN) and other international organizations in Vienna jointly held a reception at the UN headquarters in Vienna to celebrate the 40th anniversary of China’s accession to the IAEA. More than 200 participants, including IAEA representatives and foreign envoys to Vienna, attended the event.
Li Song, China’s permanent representative to the UN and other international organizations in Vienna, said at the reception that China and the IAEA have expanded practical cooperation and jointly promoted the development of nuclear energy over the past 40 years.
China, he said, will continue to strengthen collaboration with the IAEA and its member states to address emerging challenges in international security, safeguard the global non-proliferation regime, and promote the use of nuclear energy and technology for the benefit of the Global South.
At the reception, Liu, Li and IAEA Director General Rafael Grossi jointly unveiled a bronze statue of Qian Sanqiang, a renowned Chinese nuclear physicist and one of the founders of China’s nuclear industry.
The statue, donated by China, will be permanently displayed at the IAEA headquarters, alongside sculptures of Polish-French physicist Marie Curie and other prominent figures who have made significant contributions to the peaceful use of nuclear energy.
Contact: xutianshu@globaltimes.com.cn
View original content:https://www.prnewswire.com/news-releases/global-times-china-opens-12-nuclear-research-facilities-to-global-scientists-302254830.html
SOURCE Global Times
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