VNET Group Inc

NASDAQ:VNETUnited States

May 29, 2024

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• VNET Groups Swings to Q1 Loss, Revenue Rises, from 5:11PM ET on Wednesday May 29, 2024 by MT Newswires

  5:11PM ET on Wednesday May 29, 2024 by MT Newswires
  Companies Mentioned: VNET
  05:11 PM EDT, 05/29/2024 (MT Newswires) -- VNET Group (VNET) Wednesday night reported a Q1 net loss of 0.72 renminbi ($0.12) per diluted American depository share compared with net income of 0.42 renminbi a year earlier. Two analysts polled by Capi...

• VNET Reports Unaudited First Quarter 2024 Financial Results, from 4:43PM ET on Wednesday May 29, 2024 by PR Newswire

  4:43PM ET on Wednesday May 29, 2024 by PR Newswire
  Companies Mentioned: VNET

  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.

• Press Release: VNET Reports Unaudited First Quarter 2024 Financial Results, from 4:43PM ET on Wednesday May 29, 2024 by Dow Jones

  4:43PM ET on Wednesday May 29, 2024 by Dow Jones
  Companies Mentioned: VNET

• VNET Reports Unaudited First Quarter 2024 Financial Results, from 4:43PM ET on Wednesday May 29, 2024 by Dow Jones

  4:43PM ET on Wednesday May 29, 2024 by Dow Jones
  Companies Mentioned: VNET
  Other income 1,164 4,452 4,814 667 Other expenses (3,592) (1,199) (1,422) (197) Changes in the fair value of financial liabilities 21,298 (187,648) 3,858 534 Foreign exchange gain (loss) 78,633 89,426 (28,361) (3,928) ------------- ----------- ------------- ------------- Income (loss) before income taxes and (loss) gain from equity method investments 148,633 (2,372,290) (100,248) (13,884) Income tax expenses (44,886) (50,626) (61,384) (8,502) (Loss) gain from equity method investments (174) (372) 2,606 361 ------------- ----------- ------------- ------------- Net income (loss) 103,573 (2,423,288) (159,026) (22,025) Net profit attributable to noncontrolling interest (21,280) (19,500) (27,979) (3,875) ------------- ----------- ------------- ------------- Net income (loss) attributable to VNET Group, Inc. 82,293 (2,442,788) (187,005) (25,900) ============= =========== ============= ============= Earnings (loss) per share Basic 0.09 (2.65) (0.12) (0.02) Diluted 0.07 (2.65) (0.12) (0.02) Shares used in earnings (loss) per share computation Basic* 888,383,240 923,034,050 1,568,300,360 1,568,300,360 Diluted* 1,056,829,494 923,034,050 1,568,300,360 1,568,300,360 Earnings (loss) per ADS (6 ordinary shares equal to 1 ADS) Basic 0.54 (15.88) (0.72) (0.12) Diluted 0.42 (15.88) (0.72) (0.12) * Shares used in earnings (loss) per share/ADS computation were computed under weighted average method. VNET GROUP, INC. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended December 31, March 31, 2023 2023 March 31, 2024 RMB RMB RMB US$ Gross profit 352,380 290,878 410,721 56,884 Plus: depreciation and amortization 401,877 450,859 352,604 48,835 Plus: share-based compensation expenses - - 2,190.00 303 -------------- ---------------- --------- -------- Adjusted cash gross profit 754,257 741,737 765,515 106,022 ============== ================ ========= ======== Adjusted cash gross margin 41.8 % 39.1 % 40.3 % 40.3 % Operating expenses (237,145) (2,502,467) (364,305) (50,456) Plus: share-based compensation expenses 8,336 9,479 111,681 15,468 Plus: allowance of loan receivables - 287,900 - - Plus: impairment of long-lived assets - 506,686 - - Plus: impairment of goodwill - 1,364,191 - - -------------- ---------------- --------- -------- Adjusted operating expenses (228,809) (334,211) (252,624) (34,988) ============== ================ ========= ======== Operating (loss) profit 115,235 (2,211,589) 46,416 6,429 Plus: depreciation and amortization 432,629 483,579 379,551 52,567 Plus: share-based compensation expenses 8,336 9,479 113,871 15,771 Plus: allowance of loan receivables - 287,900 - - Plus: impairment of long-lived assets - 506,686 - - Plus: impairment of goodwill - 1,364,191 - - -------------- ---------------- --------- -------- Adjusted EBITDA 556,200 440,246 539,838 74,767 ============== ================ ========= ======== Adjusted EBITDA margin 30.8 % 23.2 % 28.4 % 28.4 % VNET GROUP, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended December 31, March 31, 2023 2023 March 31, 2024 RMB RMB RMB US$ CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) 103,573 (2,423,288) (159,026) (22,025) Adjustments to reconcile net income (loss) to net cash generated from operating activities: Depreciation and amortization 431,654 481,067 377,086 52,226 Share-based compensation expenses 8,336 9,479 113,871 15,771 Others 62,631 2,333,785 137,297 19,015 Changes in operating assets and liabilities Accounts and notes receivable (254,293) 311,035 (226,973) (31,435) Prepaid expenses and other current assets (378,933) (9,076) (44,104) (6,108) Accounts and notes payable (3,377) (76,250) 77,668 10,757 Accrued expenses and other payables 192,063 68,523 56,105 7,770 Deferred revenue 24,139 (24,005) 5,626 779 Advances from customers 405,945 31,500 (11,090) (1,536) Others (136,727) 27,910 (58,873) (8,154) -------------- ------------- ----------- --------- Net cash generated from operating activities 455,011 730,680 267,587 37,060 -------------- ------------- ----------- --------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (608,717) (1,017,474) (1,005,368) (139,242) Purchases of intangible assets (2,312) (20,188) (5,965) (826) (Payments for) proceeds from investments - (346,056) 359,239 49,754 (Payments for) proceeds from other investing activities (90,489) (18,217) 1,154 160 -------------- ------------- ----------- --------- Net cash used in investing activities (701,518) (1,401,935) (650,940) (90,154) -------------- ------------- ----------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 279,916 638,706 1,156,279 160,143 Repayments of borrowings (73,070) (85,640) (51,441) (7,124) Proceeds from issuance of ordinary shares - 2,122,123 - - Repurchase of 2026 Convertible Notes - - (4,262,340) (590,327) Payment for finance leases (84,882) (28,482) (39,602) (5,485) Proceeds from other financing activities 395,096 110,967 591,446 81,914 -------------- ------------- ----------- --------- Net cash generated from (used in) financing activities 517,060 2,757,674 (2,605,658) (360,879) -------------- ------------- ----------- --------- Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (17,205) (11,645) (20,050) (2,777) Net increase (decrease) in cash, cash equivalents and restricted cash 253,348 2,074,774 (3,009,061) (416,750) Cash, cash equivalents and restricted cash at beginning of period 2,989,494 3,024,214 5,098,987 706,202 -------------- ------------- ----------- --------- Cash, cash equivalents and restricted cash at end of period 3,242,842 5,098,988 2,089,926 289,452 ============== ============= =========== =========