STOCK TITAN

VNET Reports Unaudited Third Quarter 2021 Financial Results

Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Positive)
Tags
Rhea-AI Summary

VNET Group, Inc. (Nasdaq: VNET) reported strong Q3 2021 financial results, with net revenues of RMB1.56 billion (US$242.2 million), a 25.3% increase year-over-year. Adjusted cash gross profit rose 28.2% to RMB674.5 million (US$104.7 million), reflecting a gross margin of 43.2%. Adjusted EBITDA increased 22.2% to RMB450.4 million (US$69.9 million) with a margin of 28.9%. Total cabinets under management rose by 2,388 to 65,264. Looking ahead, VNET anticipates Q4 2021 revenues between RMB1.75 billion and RMB1.77 billion, positioning for approximately 28.5% growth for the full year.

Positive
  • Net revenues increased by 25.3% year-over-year to RMB1.56 billion.
  • Adjusted cash gross profit rose by 28.2% to RMB674.5 million.
  • Adjusted EBITDA grew by 22.2% to RMB450.4 million.
  • Total cabinets under management increased by 2,388 to 65,264.
Negative
  • Net profit dropped to RMB156.2 million, down from RMB455.9 million in Q2 2021.
  • Net cash generated from operating activities decreased to RMB134.7 million from RMB210.0 million in Q3 2020.

BEIJING, Nov. 18, 2021 (GLOBE NEWSWIRE) -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrier- and cloud-neutral Internet data center services provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2021. The Company will hold a conference call at 8 P.M. on November 18, 2021, U.S. Eastern Time to discuss the financial results. Dial-in details are provided at the end of this release.

Third Quarter 2021 Financial Highlights

  • Net revenues in the third quarter of 2021 increased by 25.3% to RMB1.56 billion (US$242.2 million) from RMB1.25 billion in the same period of 2020.
  • Adjusted cash gross profit (non-GAAP) in the third quarter of 2021 increased by 28.2% to RMB674.5 million (US$104.7 million) from RMB526.2 million in the same period of 2020. Adjusted cash gross margin (non-GAAP) in the third quarter of 2021 was 43.2%, compared to 42.2% in the same period of 2020.
  • Adjusted EBITDA (non-GAAP) in the third quarter of 2021 increased by 22.2% to RMB450.4 million (US$69.9 million) from RMB368.5 million in the same period of 2020. Adjusted EBITDA margin (non-GAAP) in the third quarter of 2021 was 28.9%, compared to 29.6% in the same period of 2020.

Third Quarter 2021 Operational Highlights

  • Total cabinets under management net increased by 2,388 to 65,264, as of September 30, 2021, compared to 62,876 as of June 30, 2021, and 51,476 as of September 30, 2020.
  • Retail IDC MRR1 per cabinet was RMB9,296, compared to RMB9,074 in the same period of 2020 and RMB9,015 in the second quarter of 2021.
  • Compound utilization rate was 59.8%, compared to 59.9% in the second quarter of 2021.
    • Utilization rate for mature IDCs, which consisted of IDC deliveries prior to and during 2019, was 75.5%, compared to 76.3% in the second quarter of 2021.
    • Utilization rate for ramp-up and newly-built IDCs, which consisted of IDC deliveries in 2020 and 2021, was 34.7%, compared to 29.2% in the second quarter of 2021.

Mr. Samuel Shen, Chief Executive Officer and Executive Chairman of Retail IDC, stated, “We achieved robust financial and operating results in the quarter thanks to our methodical execution of our dual-core growth engine strategy. Leveraging our combined strengths in retail and wholesale IDC services, we successfully capitalized on growing demand for IT infrastructure across all our business segments to achieve a healthy pace in ramping up our wholesale capacity, grow and diversify our retail client base, and generate growing interest in our cloud business. By maintaining a pinpoint focus on the execution of our dual-core strategy, we are confident in our growth potential as we augment our leadership position in the carrier- and cloud-neutral Internet data center services sector in China.”

Mr. Tim Chen, Chief Financial Officer of the Company, commented, “We delivered a milestone financial performance this quarter with strong top- and bottom-line growth. Despite regulatory uncertainties, both our net revenues and adjusted EBITDA during the third quarter exceeded the high end of our guidance range, increasing by 25.3% and 22.2% year over year respectively. Our strong growth was derived from our unique mix of wholesale and retail IDC solutions, and increasing demand driven by the ongoing digital transformation. As we continue to execute our growth strategies, prudently leverage our healthy balance sheet, and broaden our sector coverage, we will continue to deliver long-term value for our investors going forward.”

Third Quarter 2021 Financial Results

NET REVENUES: Net revenues in the third quarter of 2021 increased by 25.3% to RMB1.56 billion (US$242.2 million) from RMB1.25 billion in the third quarter of 2020, representing an increase of 4.2% from RMB1.50 billion in the second quarter of 2021. The year-over-year increase was mainly due to the increased demand from both wholesale and retail IDC customers, as well as the growth of revenue from cloud business.

GROSS PROFIT: Gross profit in the third quarter of 2021 was RMB375.2 million (US$58.2 million), representing an increase of 36.4% from RMB275.1 million in the same period of 2020 and an increase of 4.4% from RMB359.5 million in the second quarter of 2021. Gross margin in the third quarter of 2021 was 24.0%, compared to 22.1% in the same period of 2020 and 24.0% in the second quarter of 2021. The year-over-year increase in gross margin was primarily attributable to the Company’s optimized operating efficiency.

ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was RMB674.5 million (US$104.7 million) in the third quarter of 2021, compared to RMB526.2 million in the same period of 2020 and RMB640.2 million in the second quarter of 2021. Adjusted cash gross margin in the third quarter of 2021 was 43.2%, compared to 42.2% in the same period of 2020 and 42.8% in the second quarter of 2021.

OPERATING EXPENSES: Total operating expenses in the third quarter of 2021 were RMB261.3 million (US$40.6 million), compared to RMB199.3 million in the same period of 2020 and RMB262.5 million in the second quarter of 2021. As a percentage of net revenues, total operating expenses in the third quarter of 2021 were 16.7%, compared to 16.0% in the same period of 2020 and 17.5% in the second quarter of 2021.

Sales and marketing expenses in the third quarter of 2021 were RMB36.4 million (US$5.6 million), compared to RMB45.8 million in the same period of 2020 and RMB59.6 million in the second quarter of 2021.

Research and development expenses in the third quarter of 2021 were RMB53.6 million (US$8.3 million), compared to RMB26.1 million in the same period of 2020 and RMB38.3 million in the second quarter of 2021.

General and administrative expenses in the third quarter of 2021 were RMB161.9 million (US$25.1 million), compared to RMB127.5 million in the same period of 2020 and RMB154.2 million in the second quarter of 2021.

ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses, compensation for postcombination employment in an acquisition and impairment of loan receivable to potential investee, were RMB244.0 million (US$37.9 million) in the third quarter of 2021, compared to RMB180.5 million in the same period of 2020 and RMB235.6 million in the second quarter of 2021. As a percentage of net revenues, adjusted operating expenses in the third quarter of 2021 were 15.6%, compared to 14.5% in the same period of 2020 and 15.7% in the second quarter of 2021.

ADJUSTED EBITDA: Adjusted EBITDA in the third quarter of 2021 was RMB450.4 million (US$69.9 million), representing an increase of 22.2% from RMB368.5 million in the same period of 2020 and an increase of 6.0% from RMB425.1 million in the second quarter of 2021. Adjusted EBITDA in the third quarter of 2021 excluded share-based compensation expenses of RMB4.6 million (US$0.7 million). Adjusted EBITDA margin in the third quarter of 2021 was 28.9%, compared to 29.6% in the same period of 2020 and 28.4% in the second quarter of 2021.

NET PROFIT: Net profit attributable to ordinary shareholders in the third quarter of 2021 was RMB156.2 million (US$24.2 million), compared to RMB97.1 million in the same period of 2020 and RMB455.9 million in the second quarter of 2021. Net profit attributable to ordinary shareholders in the third quarter of 2021 included changes in the fair value of convertible promissory notes of RMB185.8 million (US$28.8 million) due to the decrease in the Company’s stock price.

PROFIT/LOSS PER SHARE: Basic profit per share and diluted loss per share were RMB0.18 (US$0.03) and RMB0.03 (US$0.5 cent) in the third quarter of 2021, respectively, which represented the equivalent of RMB1.08 (US$0.18) and RMB0.18 (US$0.03) per American depositary share ("ADS"), respectively. Each ADS represents six Class A ordinary shares.

As of September 30, 2021, the aggregate amount of the Company's cash and cash equivalents, restricted cash, and short-term investments was RMB3.94 billion (US$612.2 million).

Net cash generated from operating activities, in the third quarter of 2021 was RMB134.7 million (US$20.9 million), compared to RMB210.0 million in the same period of 2020 and RMB314.8 million in the second quarter of 2021.

Financial Outlook

For the fourth quarter of 2021, the Company expects net revenues to be in the range of RMB1.75 billion to RMB1.77 billion. Adjusted EBITDA is expected to be in the range of RMB450 million to RMB470 million.

For the full year of 2021, the Company expects net revenues to be in the range of RMB6.19 billion to RMB6.21 billion. Adjusted EBITDA is expected to be in the range of RMB1.74 billion to RMB1.76 billion. The midpoints of the Company’s updated estimates imply an increase of 28.5% and 32.2% year over year in net revenues and adjusted EBITDA, respectively.

The forecast reflects the Company’s current and preliminary views on the market and its operational conditions, which do not factor in any of the potential future impacts caused by the ongoing COVID-19 pandemic, and are subject to change.

Conference Call

The Company will hold a conference call at 8 P.M. on November 18, 2021, U.S. Eastern Time, or 9 A.M. on November 19, 2021 Beijing Time, to discuss the financial results.

In advance of the conference call, all participants must use the following link to complete the online registration process to receive a unique registrant ID and a set of participant dial-in numbers to join the conference call.

Conference ID:6186131
Registration Link:http://apac.directeventreg.com/registration/event/6186131
  
The replay will be accessible through November 26, 2021, by dialing the following numbers:
  
United States Toll Free:+1-855-452-5696
International: +61-2-8199-0299
Conference ID:6186131

A live and archived webcast of the conference call will be available through 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 RMB6.4434 to US$1.00, the noon buying rate in effect on September 30, 2021, 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 6,000 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 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 and in the attachments 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 Contacts:

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

Julia Jiang
Tel: +86 10 8456 2121
Email: ir@vnet.com

_________________________________
1
Retail IDC MRR: Refers to Monthly Recurring Revenues for the retail IDC business.


  
VNET GROUP, INC. 
CONSOLIDATED BALANCE SHEETS 
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 
 As ofAs of  
December 31, 2020September 30, 2021 
 RMBRMBUS$ 
 (Audited)(Unaudited)(Unaudited) 
Assets     
Current assets:    
Cash and cash equivalents2,710,349 3,479,069 539,943  
Restricted cash270,450 324,804 50,409  
Accounts and notes receivable, net847,233 1,525,177 236,704  
Short-term investments285,872 12,971 2,013  
Prepaid expenses and other current assets1,866,184 2,031,667 315,307  
Amounts due from related parties75,519 73,966 11,479  
Total current assets6,055,607 7,447,654 1,155,855  
     
Non-current assets:    
Property and equipment, net8,106,425 9,008,245 1,398,058  
Intangible assets, net658,195 913,834 141,825  
Land use rights, net255,373 339,262 52,653  
Operating lease right-of-use assets, net1,325,526 1,904,744 295,612  
Goodwill994,993 1,322,167 205,197  
Restricted cash135,638 127,615 19,806  
Deferred tax assets, net185,481 173,089 26,863  
Long-term investments, net135,517 99,972 15,515  
Amounts due from related parties20,562 - -  
Other non-current assets1,500,438 2,313,937 359,117  
Total non-current assets13,318,148 16,202,865 2,514,646  
Total assets19,373,755 23,650,519 3,670,501  
     
Liabilities and Shareholders' Equity    
Current liabilities:    
Short-term bank borrowings34,000 - -  
Accounts and notes payable289,387 490,055 76,055  
Accrued expenses and other payables1,631,563 2,001,310 310,598  
Advances from customers1,041,594 988,402 153,398  
Deferred revenue63,245 68,494 10,630  
Income taxes payable29,028 46,649 7,240  
Amounts due to related parties51,007 1,775 275  
Current portion of long-term borrowings180,328 371,091 57,592  
Current portion of finance lease liabilities403,843 382,024 59,289  
Current portion of deferred government grant2,074 2,074 322  
Current portion of bonds payable1,943,619 1,945,087 301,873  
Current portion of operating lease liabilities452,272 497,947 77,280  
Total current liabilities6,121,960 6,794,908 1,054,552  
     
Non-current liabilities:    
Long-term borrowings886,996 1,917,020 297,517  
Convertible promissory notes3,014,057 4,569,313 709,146  
Non-current portion of finance lease liabilities688,128 1,055,535 163,816  
Unrecognized tax benefits68,696 81,256 12,611  
Deferred tax liabilities299,093 352,113 54,647  
Non-current portion of deferred government grant4,100 2,426 377  
Amounts due to related parties747,746 - -  
Non-current portion of operating lease liabilities645,499 1,447,213 224,604  
Total non-current liabilities6,354,315 9,424,876 1,462,718  
     
Shareholders' equity    
Treasury stock(349,523)(349,523)(54,245) 
Ordinary shares56 59 9  
Additional paid-in capital13,083,119 14,976,505 2,324,317  
Accumulated other comprehensive loss(55,535)(61,063)(9,477) 
Statutory reserves74,462 74,462 11,556  
Accumulated deficit(7,235,113)(7,565,741)(1,174,185) 
Series A perpetual convertible preferred shares1,047,468 - -  
Total VNET Group, Inc. shareholders’ equity6,564,934 7,074,699 1,097,975  
Noncontrolling interest332,546 356,036 55,256  
Total shareholders' equity6,897,480 7,430,735 1,153,231  
Total liabilities and shareholders' equity19,373,755 23,650,519 3,670,501  
     


VNET GROUP, INC. 
CONSOLIDATED STATEMENTS OF OPERATIONS 
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 
          
 Three months ended  Nine months ended  
 September 30,2020June 30, 2021September 30, 2021 September 30,2020September 30, 2021 
 RMBRMBRMBUS$ RMBRMBUS$ 
 (Unaudited)(Unaudited)(Unaudited)(Unaudited) (Unaudited)(Unaudited)(Unaudited) 
Net revenues1,245,794 1,496,978 1,560,460 242,180  3,480,652 4,444,361 689,754  
Cost of revenues(970,651)(1,137,463)(1,185,225)(183,944) (2,699,066)(3,386,299)(525,545) 
Gross profit275,143 359,515 375,235 58,236  781,586 1,058,062 164,209  
          
Operating expenses         
Sales and marketing(45,760)(59,589)(36,361)(5,643) (146,122)(169,926)(26,372) 
Research and development(26,078)(38,296)(53,591)(8,317) (70,727)(125,452)(19,470) 
General and administrative(127,546)(154,243)(161,930)(25,131) (372,242)(451,419)(70,059) 
Reversal (allowance) for doubtful debt111 (7,527)(9,451)(1,467) (1,072)(17,371)(2,696) 
Impairment of loan receivable to potential investee- (2,816)- -  - (2,816)(437) 
Total operating expenses(199,273)(262,471)(261,333)(40,558) (590,163)(766,984)(119,034) 
          
Operating profit75,870 97,044 113,902 17,678  191,423 291,078 45,175  
Interest income6,440 8,103 9,148 1,420  27,535 22,960 3,563  
Interest expense(96,366)(87,095)(88,013)(13,659) (301,366)(259,587)(40,287) 
Impairment of long-term investment- - (3,495)(542) - (3,495)(542) 
Other income2,747 5,263 4,351 675  11,803 11,786 1,829  
Other expense(4,995)(11,872)(3,908)(607) (28,986)(19,202)(2,980) 
Changes in the fair value of convertible promissory notes24,939 424,107 185,840 28,842  (1,587,115)601,306 93,321  
Foreign exchange gain (loss)114,101 78,026 (16,588)(2,574) 72,629 27,592 4,282  
Gain (loss) before income tax and gain (loss) from equity method investments122,736 513,576 201,237 31,233  (1,614,077)672,438 104,361  
Income tax expenses(25,230)(29,499)(29,060)(4,510) (68,126)(95,858)(14,877) 
Gain (loss) from equity method investments2,265 (23,605)(12,027)(1,867) (4,325)(36,937)(5,733) 
Net profit (loss) 99,771 460,472 160,150 24,856  (1,686,528)539,643 83,751  
Net gain attributable to noncontrolling interest(2,627)(4,620)(3,967)(616) (7,441)(12,267)(1,904) 
Net profit (loss) attributable to VNET Group, Inc.97,144 455,852 156,183 24,240  (1,693,969)527,376 81,847  
Deemed distribution to Series A perpetual convertible preferred shareholders- - - -  (470,643)- -  
Net profit (loss) attributable to the Company’s ordinary shareholders97,144 455,852 156,183 24,240  (2,164,612)527,376 81,847  
          
Profit (loss) per share         
Basic0.11 0.52 0.18 0.03  (3.17)0.60 0.09  
Diluted0.08 0.04 (0.03)(0.00) (3.17)(0.08)(0.01) 
Shares used in profit (loss) per share computation         
Basic*716,409,506 869,645,966 863,643,659 863,643,659  686,292,393 863,755,692 863,755,692  
Diluted*805,640,008 905,446,557 897,643,660 897,643,660  686,292,393 902,513,487 902,513,487  
          
Profit (loss) per ADS (6 ordinary shares equal to 1 ADS)         
Basic0.66 3.12 1.08 0.18  (19.02)3.60 0.54  
Diluted0.48 0.24 (0.18)(0.03) (19.02)(0.48)(0.06) 
          
* Shares used in profit (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  Nine months ended  
 September 30,2020June 30, 2021September 30, 2021 September 30,2020September 30, 2021 
 RMBRMBRMBUS$ RMBRMBUS$ 
Gross profit275,143 359,515 375,235 58,236  781,586 1,058,062 164,209  
Plus: depreciation and amortization246,747 277,288 297,046 46,101  623,954 852,185 132,257  
Plus: share-based compensation expenses4,340 3,444 2,211 343  5,369 9,781 1,518  
Adjusted cash gross profit526,230 640,247 674,492 104,680  1,410,909 1,920,028 297,984  
Adjusted cash gross margin42.2%42.8%43.2%43.2% 40.5%43.2%43.2% 
          
Operating expenses(199,273)(262,471)(261,333)(40,558) (590,163)(766,984)(119,034) 
Plus: share-based compensation expenses18,768 24,063 2,397 372  49,401 57,189 8,876  
Plus: compensation for postcombination employment in an acquisition- - 14,959 2,322  - 14,959 2,322  
Plus: impairment of loan receivable to potential investee- 2,816 - -  - 2,816 437  
Adjusted operating expenses(180,505)(235,592)(243,977)(37,864) (540,762)(692,020)(107,399) 
          
Operating profit75,870 97,044 113,902 17,678  191,423 291,078 45,175  
Plus: depreciation and amortization269,478 297,738 316,951 49,190  688,066 914,794 141,974  
Plus: share-based compensation expenses23,108 27,507 4,608 715  54,770 66,970 10,394  
Plus: compensation for postcombination employment in an acquisition- - 14,959 2,322  - 14,959 2,322  
Plus: impairment of loan receivable to potential investee- 2,816 - -  - 2,816 437  
Adjusted EBITDA368,456 425,105 450,420 69,905  934,259 1,290,617 200,302  
Adjusted EBITDA margin29.6%28.4%28.9%28.9% 26.8%29.0%29.0% 
          


VNET GROUP, INC. 
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 
      
 Three months ended  
 September 30,2020June 30, 2021September 30, 2021 
 RMBRMBRMBUS$ 
 (Unaudited)(Unaudited)(Unaudited)(Unaudited) 
CASH FLOWS FROM OPERATING ACTIVITIES     
Net profit99,771 460,472 160,150 24,856  
Adjustments to reconcile net profit to net cash generated from operating activities:   
    Depreciation and amortization269,478 297,738 316,951 49,190  
    Stock-based compensation expenses23,108 27,507 4,608 715  
    Others(60,721)(344,711)(41,287)(6,408) 
Changes in operating assets and liabilities     
    Accounts and notes receivable74,342 (198,696)(245,169)(38,050) 
    Prepaid expenses and other current assets438,214 324,091 (148,754)(23,086) 
    Accounts and notes payable(4,676)34,035 51,462 7,987  
    Accrued expenses and other payables8,016 (1,761)113,093 17,552  
    Deferred revenue(2,334)4,228 5,183 804  
    Advances from customers(559,680)(180,551)8,314 1,290  
    Others(75,547)(107,546)(89,879)(13,949) 
Net cash generated from operating activities209,971 314,806 134,672 20,901  
      
CASH FLOWS FROM INVESTING ACTIVITIES     
Purchases of property and equipment(786,554)(430,071)(650,599)(100,971) 
Purchases of intangible assets(8,923)(17,672)(8,466)(1,314) 
(Payments for) proceeds from investments(106,368)139,711 (391,522)(60,763) 
Payments for other investing activities(12,626)(214,308)(442,027)(68,602) 
Net cash used in investing activities(914,471)(522,340)(1,492,614)(231,650) 
      
CASH FLOWS FROM FINANCING ACTIVITIES     
Proceeds from issuance of ordinary shares2,680,706 - - -  
Proceeds from bank borrowings24,776 33,623 385,364 59,808  
Repayments of bank borrowings(200,000)(30,300)(7,469)(1,159) 
Payments for finance lease(137,982)(241,709)(129,699)(20,129) 
Repurchase of 2020 Notes(915,543)- - -  
Payment for shares repurchase- (1,701,807)- -  
(Payments for) proceeds from other financing activities(6,628)52,418 8,204 1,273  
Net cash generated from (used in) financing activities1,445,329 (1,887,775)256,400 39,793  
      
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (108,885)(60,905)11,540 1,791  
Net increase (decrease) in cash, cash equivalents and restricted cash631,944 (2,156,214)(1,090,002)(169,165) 
Cash, cash equivalents and restricted cash at beginning of period4,822,367 7,177,704 5,021,490 779,323  
Cash, cash equivalents and restricted cash at end of period5,454,311 5,021,490 3,931,488 610,158  
      

FAQ

What were VNET's Q3 2021 net revenues?

VNET reported net revenues of RMB1.56 billion (US$242.2 million) for Q3 2021.

How much did VNET's adjusted EBITDA increase in Q3 2021?

Adjusted EBITDA increased by 22.2% to RMB450.4 million (US$69.9 million) in Q3 2021.

What is VNET's revenue outlook for Q4 2021?

VNET expects Q4 2021 net revenues to be in the range of RMB1.75 billion to RMB1.77 billion.

How did VNET's net profit change in Q3 2021?

Net profit attributable to ordinary shareholders was RMB156.2 million in Q3 2021, down from RMB455.9 million in Q2 2021.

VNET Group, Inc. American Depositary Shares

NASDAQ:VNET

VNET Rankings

VNET Latest News

VNET Stock Data

963.75M
240.42M
9.55%
33.91%
1.73%
Information Technology Services
Technology
Link
United States of America
Beijing