VNET Reports Unaudited Second Quarter 2022 Financial Results

BEIJING, Aug. 30, 2022 /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 three months ended June 30, 2022.

"We delivered solid results in the second quarter amid macro uncertainties and tightened restrictions to contain COVID resurgences," said Samuel Shen, Chief Executive Officer of VNET and Executive Chairman of VNET's Retail IDC. "Notably, our wholesale business continued making good progress. We extended our contract with a leading social platform in China in the second quarter, generating a capacity of approximately 14MW, and recently signed a new contract generating a capacity of 15MW with a leading cloud service provider in China. Our retail business also achieved impressive results driven by rising digital demand from various industries. With our strong operating capabilities, deep industry experience and proven technology expertise, we are confident our compelling value proposition will enable us to seize new growth opportunities and create additional value for all of our stakeholders."

Tim Chen, Chief Financial Officer of VNET, commented, "Fueled by our dual-core growth strategy, this quarter we delivered a robust financial performance with a year-over-year growth 15.2% and 14.5% in revenue and adjusted EBITDA, respectively. Our solid financial position provides a firm foundation from which to drive long-term, sustainable growth as we continue to leverage our scalable service offerings, build our customer base across a wider variety of industries and maximize the opportunities ahead."

Second Quarter 2022 Financial Highlights

  • Net revenues increased by 15.2% to RMB1.72 billion (US$257.5 million) from RMB1.50 billion in the same period of 2021.
  • Adjusted cash gross profit (non-GAAP) increased by 11.5% to RMB713.7 million (US$106.6 million) from RMB640.2 million in the same period of 2021. Adjusted cash gross margin (non-GAAP) was 41.4%, compared to 42.8% in the same period of 2021.
  • Adjusted EBITDA (non-GAAP) increased by 14.5% to RMB486.9 million (US$72.7 million) from RMB425.1 million in the same period of 2021. Adjusted EBITDA margin (non-GAAP) was 28.2%, compared to 28.4% in the same period of 2021.

 Second Quarter 2022 Operational Highlights

  • Total cabinets under management increased by 1,867 in the second quarter of 2022 to reach 80,831 as of June 30, 2022, compared to 62,876 as of June 30, 2021.
  • Cabinets utilized by customers increased by 1,468 in the second quarter of 2022 to reach 44,500 as of June 30, 2022, compared to 36,625 as of June 30, 2021.
  • Overall utilization rate of cabinets[1] was 55.1% as of June 30, 2022, compared to 58.2% as of June 30, 2021.
  • Retail IDC MRR[2] per cabinet reached RMB9,186 in the second quarter of 2022, compared to RMB9,015 in the second quarter of 2021.

[1] The overall utilization rate is calculated by dividing the number of customer-utilized cabinets by the total cabinets under management at the end of the period. Before the first quarter of 2022, the Company used the compound utilization rate, a metric that was calculated based on the weighted average number of customer-utilized cabinets over the reported period.

[2] Retail IDC MRR refers to Monthly Recurring Revenues for the retail IDC business.

 

Update on the Non-binding Acquisition Proposal

The Company has retained Citigroup Global Markets Asia Limited as its financial advisor and Davis Polk & Wardwell LLP as its legal counsel to assist it in review and evaluation of the previously announced preliminary non-binding proposal letter dated April 6, 2022 to acquire all of the outstanding ordinary shares of the Company (the "Proposal") and any alternative strategic option that the Company may pursue.

The Board of Directors (the "Board") cautions the Company's shareholders and others considering trading the Company's securities that the Board has not made any decisions with respect to the Proposal or any alternative strategic option that the Company may pursue. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.

Second Quarter 2022 Financial Results

NET REVENUES: Net revenues in the second quarter of 2022 were RMB1.72 billion (US$257.5 million), representing an increase of 15.2% from RMB1.50 billion in the same period 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 second quarter of 2022 was RMB357.8 million (US$53.4 million), compared with RMB359.5 million in the same period of 2021. Gross margin in the second quarter of 2022 was 20.7%, compared to 24.0% in the same period of 2021.

ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was RMB713.7 million (US$106.6 million) in the second quarter of 2022, compared to RMB640.2 million in the same period of 2021. Adjusted cash gross margin in the second quarter of 2022 was 41.4%, compared to 42.8% in the same period of 2021.

OPERATING EXPENSES: Total operating expenses in the second quarter of 2022 were RMB321.7 million (US$48.0 million), compared to RMB262.5 million in the same period of 2021. As a percentage of net revenues, total operating expenses in the second quarter of 2022 were 18.7%, compared to 17.5% in the same period of 2021.

Sales and marketing expenses in the second quarter of 2022 were RMB80.4 million (US$12.0 million), compared to RMB59.6 million in the same period of 2021.

Research and development expenses in the second quarter of 2022 were RMB76.7 million (US$11.5 million), compared to RMB38.3 million in the same period of 2021.

General and administrative expenses in the second quarter of 2022 were RMB167.0 million (US$24.9 million), compared to RMB154.2 million in the same period 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 RMB250.7 million (US$37.4 million) in the second quarter of 2022, compared to RMB235.6 million in the same period of 2021. As a percentage of net revenues, adjusted operating expenses in the second quarter of 2022 were 14.5%, compared to 15.7% in the same period of 2021.

ADJUSTED EBITDA: Adjusted EBITDA in the second quarter of 2022 was RMB486.9 million (US$72.7 million), representing an increase of 14.5% from RMB425.1 million in the same period of 2021. Adjusted EBITDA in the second quarter of 2022 excluded share-based compensation expenses of RMB47.5 million (US$7.1 million). Adjusted EBITDA margin in the second quarter of 2022 was 28.2%, compared to 28.4% in the same period of 2021.

NET PROFIT/LOSS: Net loss attributable to ordinary shareholders in the second quarter of 2022 was RMB377.2 million (US$56.3 million), compared to a net profit of RMB455.9 million in the same period of 2021. Net loss attributable to ordinary shareholders in the second quarter of 2022 included a foreign exchange loss of RMB319.9 million (US$47.8 million), compared to a foreign exchange gain of RMB78.0 million in the same period of 2021.

PROFIT/LOSS PER SHARE: Basic and diluted loss per share in the second quarter of 2022 were both RMB0.43 (US$0.06) which represented the equivalent of both RMB2.58 (US$0.36) per American depositary share ("ADS"). Each ADS represents six Class A ordinary shares. Diluted profit/loss per share is calculated using adjusted net profit/loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

As of June 30, 2022, the aggregate amount of the Company's cash, cash equivalents and restricted cash was RMB3.62 billion (US$539.9 million).

Net cash generated from operating activities, in the second quarter of 2022, was RMB942.7 million (US$140.7 million), compared to RMB314.8 million in the same period of 2021.

Business Outlook

In consideration of COVID-related disruptions in the second quarter 2022 and softer economic conditions, the Company currently expects net revenues for the full year of 2022 to be in the range of RMB7,250 million to RMB7,550 million, and adjusted EBITDA to be in the range of RMB1,800 million to RMB1,950 million. 

The forecast reflects the Company's current and preliminary views on the market and its operational conditions, which does not factor in any of the potential future impacts caused by the ongoing COVID-19 pandemic, 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 30, 2022, or 9:00 AM Beijing Time on Wednesday, August 31, 2022.

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 Second Quarter 2022 Earnings Conference Call
Registration Link: https://register.vevent.com/register/BIe1ecf9e092d04400b0020b258448551c

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 RMB6.6981 to US$1.00, the noon buying rate in effect on June 30, 2022, 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 6,500 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 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 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, 2021

 

June 30, 2022
 

 RMB

 

RMB

  

 US$

 

 (Audited)

 

(Unaudited)

  

 (Unaudited)

 Assets

         

 Current assets:

         

 Cash and cash equivalents

1,372,481

  

3,408,381

  

508,858

 Restricted cash

327,767

  

202,374

  

30,214

 Accounts and notes receivable, net

1,405,997

  

1,745,156

  

260,545

 Prepaid expenses and other current assets

2,049,911

  

1,916,422

  

286,114

 Amounts due from related parties

167,967

  

173,142

  

25,848

 Total current assets

5,324,123

  

7,445,475

  

1,111,579
           

 Non-current assets:

         

 Property and equipment, net

10,092,419

  

10,485,412

  

1,565,431

 Intangible assets, net

900,335

  

871,067

  

130,047

 Land use rights, net

337,235

  

333,187

  

49,744

 Operating lease right-of-use assets, net

2,869,338

  

2,801,343

  

418,229

 Goodwill

1,339,657

  

1,339,657

  

200,006

 Restricted cash

8,225

  

5,500

  

821

 Deferred tax assets, net

168,002

  

157,719

  

23,547

 Long-term investments, net

98,243

  

29,506

  

4,405

 Other non-current assets

1,957,462

  

2,007,789

  

299,755

 Total non-current assets

17,770,916

  

18,031,180

  

2,691,985

 Total assets

23,095,039

  

25,476,655

  

3,803,564
           

 Liabilities and Shareholders' Equity

         

 Current liabilities:

         

 Accounts and notes payable

493,506

  

695,034

  

103,766

 Accrued expenses and other payables

2,298,089

  

2,009,115

  

299,953

 Advances from customers

1,041,902

  

1,238,029

  

184,833

 Deferred revenue

55,695

  

75,766

  

11,312

 Income taxes payable

43,770

  

47,492

  

7,090

 Amounts due to related parties

8,772

  

4,791

  

715

 Current portion of long-term borrowings

384,158

  

415,907

  

62,093

 Current portion of finance lease liabilities 

244,032

  

224,454

  

33,510

 Current portion of deferred government grant

2,074

  

2,074

  

310

 Current portion of operating lease liabilities 

607,997

  

579,956

  

86,585

 Total current liabilities

5,179,995

  

5,292,618

  

790,167
           

 Non-current liabilities:

         

 Long-term borrowings

2,215,015

  

2,835,549

  

423,336

 Convertible promissory notes

4,266,951

  

6,117,694

  

913,348

 Non-current portion of finance lease liabilities 

1,119,751

  

1,117,232

  

166,798

 Unrecognized tax benefits

77,573

  

80,621

  

12,036

 Deferred tax liabilities

348,404

  

360,873

  

53,877

 Non-current portion of deferred government grant

2,294

  

1,114

  

166

 Non-current portion of operating lease liabilities

2,284,055

  

2,258,049

  

337,118

 Total non-current liabilities

10,314,043

  

12,771,132

  

1,906,679
           

 Shareholders' equity

         

 Treasury stock

(349,523)

  

(349,523)

  

(52,182)

 Ordinary shares 

60

  

60

  

9

 Additional paid-in capital

15,198,055

  

15,229,505

  

2,273,705

 Accumulated other comprehensive loss

(90,443)

  

(29,383)

  

(4,387)

 Statutory reserves

74,462

  

75,540

  

11,278

 Accumulated deficit

(7,590,382)

  

(7,877,958)

  

(1,176,148)

 Total VNET Group, Inc. shareholders' equity

7,242,229

  

7,048,241

  

1,052,275

 Noncontrolling interest

358,772

  

364,664

  

54,443

 Total shareholders' equity

7,601,001

  

7,412,905

  

1,106,718

 Total liabilities and shareholders' equity

23,095,039

  

25,476,655

  

3,803,564

 

 

 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, 2021

  

March 31, 2022

  

June 30, 2022

  

June 30, 2021

  

June 30, 2022
 

 RMB

 

 RMB

 

 RMB

 

 US$

 

 RMB

 

 RMB

 

 RMB

 

 (Unaudited)

 

 (Unaudited)

 

 (Unaudited)

 

 (Unaudited)

 

 (Unaudited)

 

 (Unaudited)

 

 (Unaudited)

 Net revenues

1,496,978

  

1,645,486

  

1,724,863

  

257,515

  

2,883,901

  

3,370,349

  

503,180

 Cost of revenues

(1,137,463)

  

(1,289,965)

  

(1,367,086)

  

(204,101)

  

(2,201,074)

  

(2,657,051)

  

(396,687)

 Gross profit

359,515

  

355,521

  

357,777

  

53,414

  

682,827

  

713,298

  

106,493
                           

 Operating income (expense)

                         

 Other operating income

-

  

39,697

  

1,588

  

237

  

-

  

41,285

  

6,164

 Sales and marketing

(59,589)

  

(74,941)

  

(80,368)

  

(11,999)

  

(133,565)

  

(155,309)

  

(23,187)

 Research and development

(38,296)

  

(72,615)

  

(76,740)

  

(11,457)

  

(71,861)

  

(149,355)

  

(22,298)

 General and administrative

(154,243)

  

(154,237)

  

(167,044)

  

(24,939)

  

(289,489)

  

(321,281)

  

(47,966)

 (Allowance) reversal for doubtful debt

(7,527)

  

2,633

  

845

  

126

  

(7,920)

  

3,478

  

519

 Impairment of loan receivable to potential investee

(2,816)

  

-

  

-

  

-

  

(2,816)

  

-

  

-

 Total operating expenses

(262,471)

  

(259,463)

  

(321,719)

  

(48,032)

  

(505,651)

  

(581,182)

  

(86,768)
                           

 Operating profit

97,044

  

96,058

  

36,058

  

5,382

  

177,176

  

132,116

  

19,725

 Interest income

8,103

  

4,549

  

8,814

  

1,316

  

13,812

  

13,363

  

1,995

 Interest expense

(87,095)

  

(53,119)

  

(68,530)

  

(10,231)

  

(171,574)

  

(121,649)

  

(18,162)

 Other income

5,263

  

5,391

  

2,896

  

432

  

7,435

  

8,287

  

1,237

 Other expenses

(11,872)

  

(352)

  

(693)

  

(103)

  

(15,294)

  

(1,045)

  

(156)

 Changes in the fair value of convertible promissory notes

424,107

  

60,278

  

(2,321)

  

(347)

  

415,466

  

57,957

  

8,653

 Foreign exchange gain (loss)

78,026

  

24,749

  

(319,875)

  

(47,756)

  

44,180

  

(295,126)

  

(44,061)

 Gain (loss) before income taxes and (loss) gain from equity method investments

513,576

  

137,554

  

(343,651)

  

(51,307)

  

471,201

  

(206,097)

  

(30,769)

 Income tax expenses

(29,499)

  

(46,700)

  

(30,946)

  

(4,620)

  

(66,798)

  

(77,646)

  

(11,592)

 (Loss) gain from equity method investments

(23,605)

  

2,047

  

1,090

  

163

  

(24,910)

  

3,137

  

468

 Net profit (loss)

460,472

  

92,901

  

(373,507)

  

(55,764)

  

379,493

  

(280,606)

  

(41,893)

 Net gain attributable to noncontrolling interest

(4,620)

  

(2,195)

  

(3,696)

  

(552)

  

(8,300)

  

(5,891)

  

(880)

 Net profit (loss) attributable to the Company's ordinary shareholders

455,852

  

90,706

  

(377,203)

  

(56,316)

  

371,193

  

(286,497)

  

(42,773)
                           

 Profit (loss) per share

                         

 Basic

0.52

  

0.10

  

(0.43)

  

(0.06)

  

0.42

  

(0.32)

  

(0.05)

 Diluted

0.04

  

0.03

  

(0.43)

  

(0.06)

  

(0.05)

  

(0.37)

  

(0.06)

 Shares used in profit (loss) per share computation

                         

 Basic*

869,645,966

  

885,771,728

  

886,204,618

  

886,204,618

  

863,960,057

  

885,915,878

  

132,263,758

 Diluted*

905,446,557

  

938,146,240

  

886,204,618

  

886,204,618

  

905,136,178

  

919,915,879

  

137,339,825
                           

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

                          

Basic

3.12

  

0.60

  

(2.58)

  

(0.36)

  

2.52

  

(1.92)

  

(0.30)

Diluted

0.24

  

0.18

  

(2.58)

  

(0.36)

  

(0.30)

  

(2.22)

  

(0.36)
                           

 * 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

Six months ended
 

June 30, 2021

  

March 31, 2022

  

June 30, 2022

  

June 30, 2021

  

June 30, 2022
 

 RMB

 

 RMB

 

 RMB

 

 US$

 

 RMB

 

 RMB

 

 US$

Gross profit

359,515

  

355,521

  

357,777

  

53,414

  

682,827

  

713,298

  

106,493

Plus: depreciation and amortization

277,288

  

327,393

  

362,003

  

54,046

  

555,139

  

689,396

  

102,924

Plus: share-based compensation expenses

3,444

  

1,860

  

(6,066)

  

(906)

  

7,570

  

(4,206)

  

(628)

Adjusted cash gross profit

640,247

  

684,774

  

713,714

  

106,554

  

1,245,536

  

1,398,488

  

208,789

Adjusted cash gross margin

42.8 %

  

41.6 %

  

41.4 %

  

41.4 %

  

43.2 %

  

41.5 %

  

41.5 %
                           

Operating expenses

(262,471)

  

(259,463)

  

(321,719)

  

(48,032)

  

(505,651)

  

(581,182)

  

(86,768)

Plus: share-based compensation expenses

24,063

  

41,385

  

53,551

  

7,995

  

54,792

  

94,936

  

14,174

Plus: compensation for postcombination employment in an acquisition

-

  

17,260

  

17,453

  

2,606

  

-

  

34,713

  

5,183

Plus: impairment of loan receivable to potential investee

2,816

  

-

  

-

  

-

  

2,816

  

-

  

-

Adjusted operating expenses

(235,592)

  

(200,818)

  

(250,715)

  

(37,431)

  

(448,043)

  

(451,533)

  

(67,411)
                           

Operating profit

97,044

  

96,058

  

36,058

  

5,382

  

177,176

  

132,116

  

19,724

Plus: depreciation and amortization

297,738

  

349,609

  

385,876

  

57,610

  

597,843

  

735,485

  

109,805

Plus: share-based compensation expenses

27,507

  

43,245

  

47,485

  

7,089

  

62,362

  

90,730

  

13,546

Plus: compensation for postcombination employment in an acquisition

-

  

17,260

  

17,453

  

2,606

  

-

  

34,713

  

5,183

Plus: impairment of loan receivable to potential investee

2,816

  

-

  

-

  

-

  

2,816

  

-

  

-

Adjusted EBITDA

425,105

  

506,172

  

486,872

  

72,687

  

840,197

  

993,044

  

148,258

Adjusted EBITDA margin

28.4 %

  

30.8 %

  

28.2 %

  

28.2 %

  

29.1 %

  

29.5 %

  

29.5 %

 

 

 VNET GROUP, INC.

 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

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

               
 

 Three months ended 

 

June 30, 2021

  

March 31, 2022

  

June 30, 2022
 

 RMB

 

 RMB

 

 RMB

 

 US$

 

 (Unaudited)

 

 (Unaudited)

 

 (Unaudited)

 

 (Unaudited)

 CASH FLOWS FROM OPERATING ACTIVITIES

             

 Net profit (loss)

460,472

  

92,901

  

(373,507)

  

(55,764)

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

              

     Depreciation and amortization

297,738

  

349,609

  

385,876

  

57,610

     Stock-based compensation expenses

27,507

  

43,245

  

47,485

  

7,089

     Others

(344,711)

  

39,992

  

447,480

  

66,807

 Changes in operating assets and liabilities

             

     Accounts and notes receivable

(198,696)

  

(197,962)

  

(137,720)

  

(20,561)

     Prepaid expenses and other current assets

324,091

  

(115,458)

  

526,090

  

78,543

     Accounts and notes payable

34,035

  

125,459

  

76,070

  

11,357

     Accrued expenses and other payables

(1,761)

  

101,002

  

21,363

  

3,189

     Deferred revenue

4,228

  

82

  

19,989

  

2,984

     Advances from customers

(180,551)

  

125,243

  

70,884

  

10,583

     Others

(107,546)

  

(81,514)

  

(141,299)

  

(21,095)

 Net cash generated from operating activities

314,806

  

482,599

  

942,711

  

140,742
               

 CASH FLOWS FROM INVESTING ACTIVITIES

             

 Purchases of property and equipment

(430,071)

  

(1,005,736)

  

(527,867)

  

(78,808)

 Purchases of intangible assets

(17,672)

  

(10,497)

  

(12,690)

  

(1,895)

 Proceeds from (payments for) investments

139,711

  

(14,487)

  

(38,280)

  

(5,715)

 (Payments for) proceeds from other investing activities

(214,308)

  

(2,038)

  

208

  

31

 Net cash used in investing activities

(522,340)

  

(1,032,758)

  

(578,629)

  

(86,387)
               

 CASH FLOWS FROM FINANCING ACTIVITIES

             

 Proceeds from bank borrowings

33,623

  

650,952

  

18,860

  

2,816

 Repayment of bank borrowings

(30,300)

  

(65,570)

  

(43,275)

  

(6,461)

 Payments for finance lease

(241,709)

  

(102,073)

  

(75,145)

  

(11,219)

 Proceed from issuance of convertible promissory notes

-

  

1,592,627

  

-

  

-

 Payment for shares repurchase and cancellation

(1,701,807)

  

-

  

-

  

-

 Proceeds from (payments for) other financing activities 

52,418

  

137,968

  

(62,119)

  

(9,273)

 Net cash (used in) generated from financing activities

(1,887,775)

  

2,213,904

  

(161,679)

  

(24,137)
               

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

(60,905)

  

(7,328)

  

48,962

  

7,310

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

(2,156,214)

  

1,656,417

  

251,365

  

37,528

 Cash, cash equivalents and restricted cash at beginning of period

7,177,704

  

1,708,473

  

3,364,890

  

502,365

 Cash, cash equivalents and restricted cash at end of period

5,021,490

  

3,364,890

  

3,616,255

  

539,893
                 

 

 

 

Cision View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-second-quarter-2022-financial-results-301614819.html

SOURCE VNET Group, Inc.