• 21Vianet Group, Inc. Reports Unaudited Fourth Quarter and Full Year 2020 Financial Results

    Source: Nasdaq GlobeNewswire / 23 Mar 2021 17:00:00   America/New_York

    BEIJING, March 23, 2021 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq: VNET) ("21Vianet" or the "Company"), a leading carrier- and cloud-neutral Internet data center services provider in China, today announced its unaudited financial results for the fourth quarter ended December 31, 2020. The Company will hold a conference call at 8:30 P.M. on Tuesday, March 23, 2021, U.S. Eastern Time to discuss the financial results. Dial-in details are provided at the end of this release.

    Fourth Quarter 2020 Financial Highlights

    • Net revenues increased by 28.6% to RMB1.35 billion (US$206.6 million) from RMB1.05 billion in the same period of 2019.
    • Adjusted cash gross profit (non-GAAP) increased by 36.6% to RMB581.9 million (US$89.2 million) from RMB425.9 million in the same period of 2019. Adjusted cash gross margin (non-GAAP) was 43.2%, compared to 40.6% in the same period of 2019.
    • Adjusted EBITDA (non-GAAP) increased by 47.7% to RMB389.8 million (US$59.7 million) from RMB263.8 million in the same period of 2019. Adjusted EBITDA margin (non-GAAP) was 28.9%, compared to 25.2% in the same period of 2019.

    Full Year 2020 Financial Highlights

    • Net revenues increased by 27.4% to RMB4.83 billion (US$740.1 million) from RMB3.79 billion in the full year of 2019.
    • Adjusted cash gross profit (non-GAAP) increased by 22.0% to RMB1.99 billion (US$305.4 million) from RMB1.63 billion in the full year of 2019. Adjusted cash gross margin (non-GAAP) was 41.3%, compared to 43.1% in the full year of 2019.
    • Adjusted EBITDA (non-GAAP) increased by 26.0% to RMB1.32 billion (US$202.9 million) from RMB1.05 billion in the full year of 2019. Adjusted EBITDA margin (non-GAAP) was 27.4%, compared to 27.7% in the full year of 2019.

    Fourth Quarter 2020 Operational Highlights

    • Total cabinets under management net increased by 2,077 to 53,553 as of December 31, 2020, compared to 51,476 as of September 30, 2020, and 36,291 as of December 31, 2019.
    • Retail IDC MRR1 per cabinet increased to RMB9,131 in the fourth quarter of 2020, compared to RMB8,822 in the same period of 2019 and RMB9,074 in the third quarter of 2020.
    • Compound utilization rate was 60.4%, compared to 64.2% in the third quarter of 2020.
      • Utilization rate for mature IDCs delivered prior to 2019 was 77.8%, compared to 77.0% in the third quarter of 2020.
      • Utilization rate for ramp-up and newly-built IDCs was 31.7%, compared to 35.9% in the third quarter of 2020.

    _____________________

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

    Mr. Samuel Shen, Chief Executive Officer and Executive Chairman of Retail IDC, stated, “We delivered robust financial and operating results in the fourth quarter and full year of 2020 due to the growing market demand as well as our methodical resource expansion, meticulous customer service, and strong sales momentum. During the quarter, we remained committed to expanding our capacity pipeline and growing our resources. We acquired a data center in Beijing which is already under commitment to a public cloud customer. We were able to secure additional wholesale demand in recent months and accumulated our MOU in service or under contract to 180 MW. We are currently preparing an initial ESG report and plan to publish it later this year, to keep in line with our commitment to transparency around our corporate sustainability practices, and to ensure our environmental sustainability while executing expansion initiatives going forward.”

    Ms. Sharon Liu, Chief Financial Officer of the Company, commented, “In the fourth quarter and full year of 2020, our revenues exceeded the high-end of our previous guidance ranges, while our adjusted EBITDA were both within our previous guidance ranges. Such strong financial results continued to illustrate our on-track and efficient cabinet delivery to customers, as well as our improved operating efficiency. Recognizing the significant potential for future growth and expansion, we made the decision to execute a convertible notes offering in an aggregate principal amount of US$600 million in January 2021. This has further demonstrated our recognized growth prospects, substantial brand value, and potent investor interest.”

    Fourth Quarter 2020 Financial Results

    NET REVENUES: Net revenues in the fourth quarter of 2020 increased by 28.6% to RMB1.35 billion (US$206.6 million) from RMB1.05 billion in the fourth quarter of 2019, representing an increase of 8.2% from RMB1.25 billion in the third quarter of 2020. This increase was mainly due to the Company’s increased engagement with existing wholesale customers as well as the addition of new retail IDC customers.

    GROSS PROFIT: Gross profit in the fourth quarter of 2020 was RMB294.4 million (US$45.1 million), representing an increase of 18.8% from RMB247.9 million in the same period of 2019 and an increase of 7.0% from RMB275.1 million in the third quarter of 2020. Gross margin in the fourth quarter of 2020 was 21.8%, compared to 23.6% in the same period of 2019 and 22.1% in the third quarter of 2020. The year-over-year decrease in gross margin was primarily attributable to the delivery of additional IDC capacity.

    ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was RMB581.9 million (US$89.2 million) in the fourth quarter of 2020, compared to RMB425.9 million in the same period of 2019 and RMB526.2 million in the third quarter of 2020. Adjusted cash gross margin in the fourth quarter of 2020 was 43.2%, compared to 40.6% in the same period of 2019 and 42.2% in the third quarter of 2020.

    OPERATING EXPENSES: Total operating expenses in the fourth quarter of 2020 were RMB369.2 million (US$56.6 million), compared to RMB244.4 million in the same period of 2019 and RMB199.3 million in the third quarter of 2020. As a percentage of net revenues, total operating expenses in the fourth quarter of 2020 were 27.4%, compared to 23.3% in the same period of 2019 and 16.0% in the third quarter of 2020.

    Sales and marketing expenses in the fourth quarter of 2020 were RMB88.9 million (US$13.6 million), compared to RMB63.2 million in the same period of 2019 and RMB45.8 million in the third quarter of 2020. The year-over-year increase in sales and marketing expenses was in line with the Company’s business expansion efforts.

    Research and development expenses in the fourth quarter of 2020 were RMB42.2 million (US$6.5 million), compared to RMB24.9 million in the same period of 2019 and RMB26.1 million in the third quarter of 2020. This increase was primarily due to the Company’s ongoing efforts to explore various technology upgrades and more scalable delivery methods for its cloud-neutral solutions.

    General and administrative expenses in the fourth quarter of 2020 were RMB162.9 million (US$25.0 million), compared to RMB110.0 million in the same period of 2019 and RMB127.5 million in the third quarter of 2020. The increase in general and administrative expenses was primarily due to share-based compensation recognized.

    ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses, impairment of receivables from equity investees and impairment of long-lived assets, were RMB215.5 million (US$33.0 million) in the fourth quarter of 2020, compared to RMB184.2 million in the same period of 2019 and RMB180.5 million in the third quarter of 2020. As a percentage of net revenues, adjusted operating expenses in the fourth quarter of 2020 were 16.0%, compared to 17.6% in the same period of 2019 and 14.5% in the third quarter of 2020.

    ADJUSTED EBITDA: Adjusted EBITDA in the fourth quarter of 2020 was RMB389.8 million (US$59.7 million), representing an increase of 47.7% from RMB263.8 million in the same period of 2019 and an increase of 5.8% from RMB368.5 million in the third quarter of 2020. Adjusted EBITDA in the fourth quarter of 2020 excluded share-based compensation expenses of RMB82.0 million (US$12.6 million). Adjusted EBITDA margin was 28.9% in the fourth quarter of 2020, compared to 25.2% in the same period of 2019 and 29.6% in the third quarter of 2020.

    NET PROFIT/LOSS: Net loss attributable to ordinary shareholders in the fourth quarter of 2020 was RMB1.02 billion (US$155.6 million), compared to net loss attributable to ordinary shareholders of RMB16.4 million in the same period of 2019 and net profit attributable to ordinary shareholders of RMB97.1 million in the third quarter of 2020. The year-over-year increase of loss was primarily attributable to a loss of RMB957.1 million (US$146.7 million) from changes in the fair value of convertible promissory notes.

    PROFIT/LOSS PER SHARE: Basic and diluted loss per share both were RMB1.28 (US$0.20) in the fourth quarter of 2020, which represents the equivalent of RMB7.68 (US$1.20) per American depositary share ("ADS"). Each ADS represents six Class A ordinary shares. Diluted profit/loss per share is calculated using net profit/loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

    As of December 31, 2020, the aggregate amount of the Company's cash and cash equivalents, restricted cash, and short-term investments was RMB3.40 billion (US$521.4 million).

    Net cash generated from operating activities in the fourth quarter of 2020 was RMB283.8 million (US$43.5 million), compared to RMB444.8 million in the same period of 2019 and RMB210.0 million in the third quarter of 2020.

    Full Year 2020 Financial Results

    NET REVENUES: Net revenues in the full year of 2020 increased by 27.4% to RMB4.83 billion (US$740.1 million) from RMB3.79 billion in the full year of 2019.

    GROSS PROFIT: Gross profit in the full year of 2020 was RMB1.08 billion (US$164.9 million), representing an increase of 14.5% from RMB939.4 million in the full year of 2019. Gross margin in the full year of 2020 was 22.3%, compared to 24.8% in the full year of 2019.

    ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was RMB1.99 billion (US$305.4 million) in the full year of 2020, compared to RMB1.63 billion in the full year of 2019. Adjusted cash gross margin in the full year of 2020 was 41.3%, compared to 43.1% in the full year of 2019.

    OPERATING EXPENSES: Total operating expenses in the full year of 2020 were RMB959.4 million (US$147.0 million), compared to RMB757.2 million in the full year of 2019. As a percentage of net revenues, total operating expenses in the full year of 2020 were 19.9%, compared to 20.0% in the full year of 2019.

    Sales and marketing expenses in the full year of 2020 were RMB235.0 million (US$36.0 million), representing an increase of 13.9% from RMB206.3 million in the full year of 2019.

    Research and development expenses in the full year of 2020 were RMB112.9 million (US$17.3 million), representing an increase of 27.1% from RMB88.8 million in the full year of 2019.

    General and administrative expenses in the full year of 2020 were RMB535.1 million (US$82.0 million), representing an increase of 28.9% from RMB415.3 million in the full year of 2019.

    ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses, impairment of receivables from equity investees and impairment of long-lived assets, were RMB756.2 million (US$115.9 million) in the full year of 2020, compared to RMB663.0 million in the full year of 2019. As a percentage of net revenues, adjusted operating expenses in the full year of 2020 were 15.7%, compared to 17.5% in the full year of 2019.

    ADJUSTED EBITDA: Adjusted EBITDA in the full year of 2020 was RMB1.32 billion (US$202.9 million), representing an increase of 26.0% from RMB1.05 billion in the full year of 2019. Adjusted EBITDA in the full year of 2020 excluded share-based compensation expenses of RMB136.8 million (US$21.0 million). Adjusted EBITDA margin in the full year of 2020 was 27.4%, compared to 27.7% in the full year of 2019.

    NET PROFIT/LOSS: Net loss attributable to ordinary shareholders in the full year of 2020 was RMB3.18 billion (US$487.4 million), compared to net loss attributable to ordinary shareholders of RMB182.3 million in the full year of 2019. The increase of loss was primarily attributable to a loss of RMB2.54 billion (US$389.9 million) from changes in the fair value of convertible promissory notes.

    PROFIT/LOSS PER SHARE: Basic and diluted loss per share both were RMB4.47 (US$0.69), which represents the equivalent of RMB26.82 (US$4.14) per ADS. Diluted profit/loss per share is calculated using net profit/loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

    Net cash generated from operating activities in the full year of 2020 was RMB714.2 million (US$109.5 million), compared to RMB802.9 million in the full year of 2019.

    Financial Outlook

    For the first quarter of 2021, the Company expects net revenues to be in the range of RMB1,375 million to RMB1,395 million. Adjusted EBITDA is expected to be in the range of RMB395 million to RMB415 million.

    For the full year of 2021, the Company expects net revenues to be in the range of RMB6,100 million to RMB6,300 million. Adjusted EBITDA is expected to be in the range of RMB1,680 million to RMB1,780 million. The midpoints of the Company’s updated estimates imply an increase of 28.4% and 30.7% 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 COVID-19 pandemic, and are subject to change.

    Conference Call

    The Company will hold a conference call at 8:30 P.M. on Tuesday, March 23, 2021, U.S. Eastern Time, or 8:30 A.M. on Wednesday, March 24, 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:6392518
    Registration Link:http://apac.directeventreg.com/registration/event/6392518

    The replay will be accessible through March 31, 2021, by dialing the following numbers:

    United States Toll Free:+1-855-452-5696
    International:+61-2-8199-0299
    Conference ID:6392518

    A live and archived webcast of the conference call will be available through the Company's investor relations website at http://ir.21vianet.com.

    Non-GAAP Disclosure

    In evaluating its business, 21Vianet considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the 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 RMB6.5250 to US$1.00, the noon buying rate in effect on December 31, 2020, 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 21Vianet

    21Vianet Group, Inc. is a leading carrier- and cloud-neutral Internet data center services provider in China. 21Vianet 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 21Vianet's data centers and connect to China's Internet backbone. 21Vianet operates in more than 20 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 21Vianet's strategic and operational plans contain forward-looking statements. 21Vianet 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 21Vianet'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: 21Vianet's goals and strategies; 21Vianet's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, 21Vianet's services; 21Vianet's expectations regarding keeping and strengthening its relationships with customers; 21Vianet'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 21Vianet provides solutions and services. Further information regarding these and other risks is included in 21Vianet's reports filed with, or furnished to, the 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 21Vianet undertakes no duty to update such information, except as required under applicable law.

    Investor Relations Contacts:

    21Vianet Group, Inc.
    Rene Jiang
    +86 10 8456 2121
    IR@21Vianet.com

    Julia Jiang
    +86 10 8456 2121
    IR@21Vianet.com

    ICR, Inc.
    Xinran Rao
    +1 (646) 405-4922
    IR@21Vianet.com



    21VIANET GROUP, INC. 
    CONSOLIDATED BALANCE SHEETS 
    (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 
     As ofAs of  
    December 31, 2019December 31, 2020 
     RMBRMBUS$ 
     (Audited)(Unaudited)(Unaudited) 
    Assets     
    Current assets:    
    Cash and cash equivalents1,808,483 2,710,349 415,379  
    Restricted cash478,873 270,450 41,448  
    Accounts and notes receivable, net657,158 847,233 129,844  
    Short-term investments363,856 285,872 43,812  
    Prepaid expenses and other current assets1,618,149 1,866,184 286,005  
    Amounts due from related parties301,665 75,519 11,574  
    Total current assets5,228,184 6,055,607 928,062  
         
         
    Non-current assets:    
    Property and equipment, net5,443,565 8,104,069 1,242,003  
    Intangible assets, net410,595 660,551 101,234  
    Land use rights, net233,154 255,373 39,138  
    Operating lease right-of-use assets, net1,221,616 1,325,526 203,146  
    Goodwill989,530 994,993 152,489  
    Restricted cash69,821 135,638 20,787  
    Deferred tax assets209,366 185,481 28,426  
    Long-term investments169,653 135,517 20,769  
    Amounts due from related parties20,654 20,562 3,151  
    Other non-current assets277,568 1,500,438 229,952  
    Total non-current assets9,045,522 13,318,148 2,041,095  
    Total assets14,273,706 19,373,755 2,969,157  
         
         
    Liabilities and Shareholders' Equity    
    Current liabilities:    
    Short-term bank borrowings234,500 34,000 5,211  
    Accounts and notes payable303,128 289,387 44,350  
    Accrued expenses and other payables978,935 1,631,563 250,048  
    Advances from customers1,068,692 1,041,594 159,631  
    Deferred revenue57,625 63,245 9,693  
    Income taxes payable48,032 29,028 4,449  
    Amounts due to related parties166,935 51,007 7,817  
    Current portion of long-term borrowings32,500 180,328 27,636  
    Current portion of finance lease liabilities227,115 403,843 61,892  
    Current portion of deferred government grant2,595 2,074 318  
    Current portion of bonds payable911,147 1,943,619 297,873  
    Current portion of operating lease liabilities437,817 452,272 69,314  
    Total current liabilities4,469,021 6,121,960 938,232  
         
         
    Non-current liabilities:    
    Long-term borrowings79,500 886,996 135,938  
    Bonds payable2,060,708 - -  
    Convertible promissory notes- 3,014,057 461,924  
    Non-current portion of finance lease liabilities896,927 688,128 105,460  
    Unrecognized tax benefits2,443 68,696 10,528  
    Deferred tax liabilities202,572 299,093 45,838  
    Non-current portion of deferred government grant5,906 4,100 628  
    Amounts due to related parties745,899 747,746 114,597  
    Non-current portion of operating lease liabilities579,102 645,499 98,927  
    Total non-current liabilities4,573,057 6,354,315 973,840  
         
         
    Shareholders' equity    
    Treasury stock(349,523)(349,523)(53,567) 
    Ordinary shares46 56 9  
    Additional paid-in capital9,202,567 13,083,119 2,005,076  
    Accumulated other comprehensive gain (loss)77,904 (55,535)(8,511) 
    Statutory reserves60,469 74,462 11,412  
    Accumulated deficit(4,038,390)(7,235,113)(1,108,830) 
    Series A perpetual convertible preferred shares- 1,047,468 160,531  
    Total 21Vianet Group, Inc. shareholders’ equity4,953,073 6,564,934 1,006,120  
    Noncontrolling interest278,555 332,546 50,965  
    Total shareholders' equity5,231,628 6,897,480 1,057,085  
    Total liabilities and shareholders' equity14,273,706 19,373,755 2,969,157  
         
         



    21VIANET 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  Twelve months ended
    		  
     December 31, 2019 September 30, 2020 December 31, 2020
    		  December 31, 2019 December 31, 2020
    		  
     RMB RMB RMB US$  RMB RMB US$  
     (Unaudited) (Unaudited) (Unaudited) (Unaudited)  (Audited) (Unaudited) (Unaudited)  
    Net revenues1,048,119 1,245,794 1,348,367 206,646  3,788,967 4,829,019 740,080  
    Cost of revenues(800,248)(970,651)(1,053,942)(161,524) (2,849,518)(3,753,008)(575,174) 
    Gross profit247,871 275,143 294,425 45,122  939,449 1,076,011 164,906  
               
    Operating expenses         
    Other operating income6,862 - 7,619 1,168  6,862 7,619 1,168  
    Sales and marketing(63,188)(45,760)(88,890)(13,623) (206,309)(235,012)(36,017) 
    Research and development(24,920)(26,078)(42,164)(6,462) (88,792)(112,891)(17,301) 
    General and administrative(109,984)(127,546)(162,869)(24,961) (415,277)(535,111)(82,009) 
    (Allowance) reversal for doubtful debt(1,072)111 (1,321)(202) (1,557)(2,393)(367) 
    Impairment of receivables from equity investees(52,142)- - -  (52,142)- -  
    Impairment of long-lived assets- - (81,619)(12,509) - (81,619)(12,509) 
    Total operating expenses(244,444)(199,273)(369,244)(56,589) (757,215)(959,407)(147,035) 
              
              
    Operating profit3,427 75,870 (74,819)(11,467) 182,234 116,604 17,871  
    Interest income14,988 6,440 4,176 640  54,607 31,711 4,860  
    Interest expense(88,375)(96,366)(79,243)(12,145) (345,955)(380,609)(58,331) 
    Impairment of long-term investment- - (13,030)(1,997) - (13,030)(1,997) 
    Other income22,160 2,747 4,736 726  36,380 16,539 2,535  
    Other expense(1,270)(4,995)(7,926)(1,215) (5,632)(36,912)(5,657) 
    Changes in the fair value of convertible promissory notes- 24,939 (957,105)(146,683) - (2,544,220)(389,919) 
    Foreign exchange gain (loss)22,512 114,101 155,496 23,831  (27,995)228,125 34,962  
    Loss on debt extinguishment(122)- - -  (18,895)- -  
    (Loss) gain before income taxes and (loss) gain from equity method investments(26,680)122,736 (967,715)(148,310) (125,256)(2,581,792)(395,676) 
    Income tax benefits (expenses)24,686 (25,230)(41,210)(6,316) (5,437)(109,336)(16,756) 
    (Loss) gain from equity method investments(20,260)2,265 15,194 2,329  (50,553)10,869 1,666  
    Net (loss) profit(22,254)99,771 (993,731)(152,297) (181,246)(2,680,259)(410,766) 
    Net loss (profit) attributable to noncontrolling interest5,838 (2,627)(21,647)(3,318) (1,046)(29,088)(4,458) 
    Net (loss) profit attributable to 21 Vianet Group, Inc.(16,416)97,144 (1,015,378)(155,615) (182,292)(2,709,347)(415,224) 
    Deemed distribution to Series A perpetual convertible preferred shareholders- - - -  - (470,643)(72,129) 
    Net (loss) profit attributable to the Company’s ordinary shareholders(16,416)97,144 (1,015,378)(155,615) (182,292)(3,179,990)(487,353) 
              
              
    (Loss) profit per share         
    Basic(0.02)0.11 (1.28)(0.20) (0.27)(4.47)(0.69) 
    Diluted(0.02)0.08 (1.28)(0.20) (0.27)(4.47)(0.69) 
    Shares used in (loss) profit per share computation         
    Basic*670,523,195 716,409,506 802,963,713 802,963,713  668,833,756 716,888,919 716,888,919  
    Diluted*670,523,195 805,640,008 802,963,713 802,963,713  668,833,756 716,888,919 716,888,919  
              
    (Loss) profit per ADS (6 ordinary shares equal to 1 ADS)         
    Basic(0.12)0.66 (7.68)(1.20) (1.62)(26.82)(4.14) 
    Diluted(0.12)0.48 (7.68)(1.20) (1.62)(26.82)(4.14) 
              
    * Shares used in (loss) profit per share/ADS computation were computed under weighted average method.      
              



    21VIANET GROUP, INC. 
    RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS  
    (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 
      
     Three months ended
    		  Twelve months ended  
     December 31, 2019 September 30, 2020 December 31, 2020
    		  December 31, 2019 December 31, 2020
    		  
     RMB RMB RMB US$  RMB RMB US$  
    Gross profit247,871 275,143 294,425 45,122  939,449 1,076,011 164,906  
    Plus: depreciation and amortization177,529 246,747 277,543 42,535  691,764 901,497 138,160  
    Plus: share-based compensation expenses487 4,340 9,882 1,514  1,884 15,251 2,337  
    Adjusted cash gross profit425,887 526,230 581,850 89,171  1,633,097 1,992,759 305,403  
    Adjusted cash gross margin40.6%42.2%43.2%43.2% 43.1%41.3%41.3% 
              
    Operating expenses(244,444)(199,273)(369,244)(56,589) (757,215)(959,407)(147,035) 
    Plus: share-based compensation expenses8,102 18,768 72,152 11,058  42,032 121,553 18,629  
    Plus: impairment of receivables from equity investees52,142 - - -  52,142 - -  
    Plus: impairment of long-lived assets- - 81,619 12,509  - 81,619 12,509  
    Adjusted operating expenses(184,200)(180,505)(215,473)(33,022) (663,041)(756,235)(115,897) 
              
              
    Operating profit (loss)3,427 75,870 (74,819)(11,467) 182,234 116,604 17,871  
    Plus: depreciation and amortization199,642 269,478 300,917 46,118  772,205 988,983 151,568  
    Plus: share-based compensation expenses8,589 23,108 82,034 12,572  43,916 136,804 20,966  
    Plus: impairment of receivables from equity investees52,142 - - -  52,142 - -  
    Plus: impairment of long-lived assets- - 81,619 12,509  - 81,619 12,509  
    Adjusted EBITDA263,800 368,456 389,751 59,732  1,050,497 1,324,010 202,914  
    Adjusted EBITDA margin25.2%29.6%28.9%28.9% 27.7%27.4%27.4% 
              



    21VIANET GROUP, INC. 
    CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
    (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 
          
     Three months ended  
     December 31, 2019 September 30, 2020 December 31, 2020
    		  
     RMB RMB RMB US$  
     (Unaudited) (Unaudited) (Unaudited) (Unaudited)  
    CASH FLOWS FROM OPERATING ACTIVITIES     
    Net (loss) profit(22,254)99,771 (993,731)(152,297) 
    Adjustments to reconcile net (loss) profit to net cash generated from operating activities:   
    Depreciation and amortization199,642 269,478 300,917 46,118  
    Stock-based compensation expenses8,589 23,108 82,034 12,572  
    Others11,992 (60,721)968,802 148,475  
    Changes in operating assets and liabilities     
    Accounts and notes receivable126,542 74,342 35,348 5,417  
    Prepaid expenses and other current assets2,499 438,214 (420,382)(64,426) 
    Accounts and notes payable(36,190)(4,676)(43,339)(6,642) 
    Accrued expenses and other payables(23,517)8,016 (56,107)(8,599) 
    Deferred revenue(3,391)(2,334)11,252 1,724  
    Advances from customers72,628 (559,680)413,613 63,389  
    Others108,285 (75,547)(14,576)(2,234) 
    Net cash generated from operating activities444,825 209,971 283,831 43,497  
          
          
    CASH FLOWS FROM INVESTING ACTIVITIES     
    Purchases of property and equipment(458,230)(786,554)(772,513)(118,393) 
    Purchases of intangible assets(6,919)(8,923)(4,932)(756) 
    Payments for investments(136,840)(106,368)(1,522,143)(233,279) 
    Proceeds from (payments for) other investing activities51,283 (12,626)(12,426)(1,903) 
    Net cash used in investing activities(550,706)(914,471)(2,312,014)(354,331) 
          
          
    CASH FLOWS FROM FINANCING ACTIVITIES     
    Proceeds from issuance of ordinary shares- 2,680,706 - -  
    Proceeds from bank borrowings4,500 24,776 160,996 24,674  
    Repayment of bank borrowings(13,000)(200,000)(21,500)(3,295) 
    Payments for finance lease(91,487)(137,982)(87,749)(13,448) 
    Repurchase of 2020 Notes- (915,543)- -  
    Payment for shares repurchase and cancellation- - (130,472)(19,996) 
    Proceeds (payments for) from other financing activities21,892 (6,628)(86,209)(13,212) 
    Net cash (used in) generated from financing activities(78,095)1,445,329 (164,934)(25,277) 
          
          
    Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (46,956)(108,885)(144,757)(22,185) 
    Net (decrease) increase in cash, cash equivalents and restricted cash(230,932)631,944 (2,337,874)(358,296) 
    Cash, cash equivalents and restricted cash at beginning of period2,588,109 4,822,367 5,454,311 835,910  
    Cash, cash equivalents and restricted cash at end of period2,357,177 5,454,311 3,116,437 477,614  
          
          

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