Sina science and technology news, in the early morning of March 31, Beijing time, Century Internet (Nasdaq: VNET) today released the unaudited financial statements for the fourth quarter and the whole year of fiscal year 2021 as of December 31. The report shows that the net revenue of 21Vianet in the fourth quarter was 1.75 billion yuan (about 273.9 million dollars), an increase of 29.4% compared with 1.35 billion yuan in the same period of the previous year, and an increase of 11.9% compared with 1.56 billion yuan in the previous quarter; The net loss attributable to common shareholders was 27.3 million yuan (about 4.3 million US dollars), significantly narrowed compared with the net loss attributable to common shareholders of 1.02 billion yuan in the same period last year, while the net profit attributable to common shareholders in the previous quarter was 156.2 million yuan.
According to the data collected by Yahoo Finance, the three analysts had predicted on average that the total revenue of 21Vianet in the fourth quarter would reach 275.93 million dollars. The financial report shows that the net revenue of 21Vianet in the fourth quarter was 1.75 billion yuan (about 273.9 million dollars), slightly lower than analysts' expectations.
In addition, on average, the two analysts predicted that the loss per share of 21Vianet in the fourth quarter would reach US $0.22 according to the US GAAP. The financial report shows that the diluted loss per ordinary share of 21Vianet in the fourth quarter was 0.28 yuan (about US $0.04), which is equivalent to the diluted loss per American depositary receipt of 1.68 yuan (about US $0.24), which is lower than analysts' expectations.
According to the data collected by Yahoo Finance, 14 analysts had predicted on average that the total revenue of 21Vianet would reach 9719.2 million dollars in 2021. The financial report shows that 21Vianet's net revenue in 2021 is 6.19 billion yuan (about 971.3 million dollars), slightly lower than analysts' expectations.
In addition, on average, the four analysts predicted that the earnings per share of 21Vianet would reach US $0.50 in 2021 according to the US GAAP. The financial report shows that in 2021, the diluted earnings per ordinary share of 21Vianet will be 0.36 yuan (about US $0.06), which is equivalent to 2.16 yuan (about US $0.36) per American depositary receipts, which is not up to analysts' expectations.
Main performance in the fourth quarter:
-The net revenue of 21Vianet in the fourth quarter was 1.75 billion yuan (about 273.9 million US dollars), an increase of 29.4% compared with 1.35 billion yuan in the same period of the previous year;
-In violation of the US GAAP, 21Vianet's adjusted gross cash profit in the fourth quarter was 713.8 million yuan (about $112 million), up 22.7% from 581.9 million yuan in the same period last year. The adjusted cash gross profit rate of 21Vianet in the fourth quarter was 40.9%, compared with 43.2% in the same period of the previous year, not in accordance with the US GAAP;
-In violation of the US GAAP, 21Vianet's adjusted EBITDA (i.e. earnings before interest, tax, depreciation and amortization) in the fourth quarter was 463.0 million yuan (about 72.7 million US dollars), an increase of 18.8% compared with 389.8 million yuan in the same period of the previous year. 21Vianet defines adjusted EBITDA as EBITDA that is not included in equity incentive expenses and changes in the fair value of contingent acquisition consideration. The adjusted EBITDA profit margin of 21Vianet in the fourth quarter was 26.5%, compared with 28.9% in the same period of the previous year, not in accordance with the US GAAP. 21Vianet defines adjusted EBITDA profit margin as the percentage of adjusted EBITDA in total net revenue.
Major achievements in 2021:
-The net revenue of 21Vianet in 2021 is 6.19 billion yuan (about 971.3 million dollars), an increase of 28.2% compared with 4.83 billion yuan in 2020;
-In violation of the US GAAP, 21Vianet's adjusted gross cash profit in 2021 will be 2.63 billion yuan (about 413.3 million US dollars), an increase of 32.2% compared with 1.99 billion yuan in 2020. In violation of the US GAAP, 21Vianet's adjusted cash gross margin in 2021 will be 42.6%, compared with 41.3% in 2020;
-In violation of the US GAAP, 21Vianet's adjusted EBITDA in 2021 will be 1.75 billion yuan (about 275.2 million US dollars), an increase of 32.4% compared with 1.32 billion yuan in 2020. The adjusted EBITDA profit margin of 21Vianet in 2021 is 28.3%, compared with 27.4% in 2020, not in accordance with the US GAAP.
Operation highlights in the fourth quarter:
-As of December 31, 2021, the total number of cabinets managed by 21Vianet was 78540, up 46.7% from 53553 as of December 31, 2020, and 65264 as of September 30, 2021;
-In the fourth quarter of 21Vianet, the monthly revolving revenue per cabinet of retail IDC business was 9301 yuan, compared with 9131 yuan in the same period of the previous year and 9296 yuan in the previous quarter;
-The cabinet compound utilization rate of 21Vianet in the fourth quarter was 61.6%, compared with 59.8% in the third quarter. Among them, the utilization rate of mature cabinets was 76.7%, compared with 75.5% in the previous quarter; The utilization rate of newly delivered cabinets was 39.6%, compared with 34.7% in the previous quarter.
Shen Yuanqing, CEO of 21Vianet, said, "2021 will be a fruitful year for us. In the face of numerous external challenges, we have always adhered to the" dual engine "strategy. Under the long-term trend of favorable policies and digital transformation, we not only maintained strong business growth, but also further diversified financing solutions and enhanced business resilience. By adhering to long-term sustainable development and effectively implementing the "dual engine" strategy, we firmly believe that the business will continue to grow, and the leading position of 21Vianet in China's data center industry will be further consolidated. "
Chen Junhua, chief financial officer of 21Vianet, said: "In the fourth quarter of 2021, we still maintained a healthy financial performance, with a year-on-year growth of 29.4% in net revenue, and a year-on-year growth of nearly 19% in adjusted EBITTA. Under the macro uncertainty and external challenges, we reached an annual guideline for cabinet delivery. Looking ahead, we will continue to explore various financing solutions, further improve financial stability, seize the development opportunities of IDC industry, and bring sustained growth value to our shareholders. "
Financial analysis of the fourth quarter:
Net revenue:
The net revenue of 21Vianet in the fourth quarter was 1.75 billion yuan (about 273.9 million US dollars), an increase of 29.4% compared with 1.35 billion yuan in the same period of the previous year, and an increase of 11.9% compared with 1.56 billion yuan in the previous quarter. The year-on-year and month on month growth of 21Vianet's net revenue is mainly due to the growth of demand from wholesale and retail IDC customers, as well as the growth of revenue from cloud business.
Gross profit:
The gross profit of 21Vianet in the fourth quarter was 380 million yuan (about US $59.6 million), an increase of 29.1% compared with 294.4 million yuan in the same period last year and 1.3% compared with 375.2 million yuan in the previous quarter. The gross profit rate of 21Vianet in the fourth quarter was 21.8%, compared with 21.8% in the same period last year, and 24.0% in the previous quarter. The month on month decline of 21Vianet's gross profit margin is mainly due to the large number of new cabinets delivered in the fourth quarter, and the new cabinets usually need a warm-up stage to reach the expected profitability.
Excluding depreciation expenses, amortization and equity incentive expenses (not in accordance with the U.S. GAAP), the adjusted gross cash profit of 21Vianet in the fourth quarter was 713.8 million yuan (about $112 million), compared with 581.9 million yuan in the same period last year and 674.5 million yuan in the previous quarter. Excluding depreciation expenses, amortization and equity incentive expenses (not in accordance with the U.S. GAAP), the adjusted cash gross margin of 21Vianet in the fourth quarter was 40.9%, compared with 43.2% in the same period of last year and the previous quarter.
Operating expenses:
The total operating expenditure of 21Vianet in the fourth quarter was 649.7 million yuan (about 102 million dollars), compared with 369.2 million yuan in the same period last year and 261.3 million yuan in the previous quarter. The total operating expenses of 21Vianet accounted for 37.2% of the net revenue in the fourth quarter, compared with 27.4% in the same period last year and 16.7% in the previous quarter.
The sales and marketing expenses of 21Vianet in the fourth quarter were 85.5 million yuan (US $13.4 million), compared with 88.9 million yuan in the same period last year and 36.4 million yuan in the previous quarter.
The R&D expenditure of 21Vianet in the fourth quarter was 63 million yuan (about US $9.9 million), compared with 42.2 million yuan in the same period last year and 53.6 million yuan in the previous quarter.
The general and administrative expenses of 21Vianet in the fourth quarter were 390.9 million yuan (about US $61.3 million), compared with 162.9 million yuan in the same period last year and 161.9 million yuan in the previous quarter. The year-on-year growth of general and administrative expenses was mainly due to one-time equity incentive expenses.
Excluding equity incentive expenses, post merger employee compensation in a merger transaction, impairment of loans receivable to potential investees and long-term asset impairment, the adjusted total operating expenses of 213.7 million yuan (about 43 million dollars) in the fourth quarter of 213.7 million yuan, compared with 215.5 million yuan in the same period last year and 244.0 million yuan in the previous quarter. The adjusted total operating expenses of 21Vianet in the fourth quarter accounted for 15.7% of the net revenue, compared with 16.0% in the same period last year and 15.6% in the previous quarter.
Adjusted EBITDA:
In violation of the US GAAP, 21Vianet's adjusted EBITDA in the fourth quarter was 463.0 million yuan (about 72.7 million US dollars), up 18.8% from 389.8 million yuan in the same period last year. The adjusted EBITDA profit margin of 21Vianet in the fourth quarter was 26.5%, compared with 28.9% in the same period of the previous year, not in accordance with the US GAAP.
Net profit/loss:
The net loss attributable to common shareholders of 21Vianet in the fourth quarter was 27.3 million yuan (about 4.3 million US dollars), significantly narrowed compared with the net loss attributable to common shareholders of 1.02 billion yuan in the same period last year, while the net profit attributable to common shareholders in the previous quarter was 156.2 million yuan. The net loss of 21Vianet in the fourth quarter included the impairment of long-term assets of RMB109.3 million (approximately US $17.1 million) and the gains from changes in the fair value of convertible promissory notes of RMB227.8 million (approximately US $35.8 million).
Earnings/losses per share:
In the fourth quarter, the basic and diluted losses per ordinary share of 21Vianet were 0.03 yuan (about 0.005 US dollars) and 0.28 yuan (about 0.04 US dollars), respectively, equivalent to the basic and diluted losses per American depositary receipt of 0.18 yuan (about 0.03 US dollars) and 1.68 yuan (about 0.24 US dollars), respectively. Each ADR of 21Vianet represents 6 ordinary shares.
Balance Sheet:
As of December 31, 2021, the total amount of cash and cash equivalents, restricted cash and short-term investments held by 21Vianet was 1.71 billion yuan (about 268.1 million dollars).
Cash flow information:
The net cash from business operations of 21Vianet in the fourth quarter was 664 million yuan (about 104.2 million dollars), compared with 283.8 million yuan in the same period of the previous year and 134.7 million yuan in the previous quarter.
Financial analysis in 2021:
The net revenue of 21Vianet in 2021 is 6.19 billion yuan (about 971.3 million dollars), an increase of 28.2% compared with 4.83 billion yuan in 2020.
Gross profit:
The gross profit of 21Vianet in 2021 will be 1.44 billion yuan (about 225.7 million dollars), an increase of 33.6% compared with 1.08 billion yuan in 2020. The gross profit rate of 21Vianet will be 23.2% in 2021, compared with 22.3% in 2020.
Excluding depreciation expenses, amortization and equity incentive expenses (not in accordance with U.S. GAAP), 21Vianet's adjusted gross cash profit in 2021 will be 2.63 billion yuan (about 413.3 million dollars), compared with 1.99 billion yuan in 2020. Excluding depreciation expenses, amortization and equity incentive expenses (not in accordance with the U.S. GAAP), 21Vianet's adjusted cash gross margin in 2021 will be 42.6%, compared with 41.3% in 2020.
Operating expenses:
The total operating expenses of 21Vianet in 2021 will be 1.42 billion yuan (about 222.3 million dollars), compared with 959.4 million yuan in 2020. The total operating expenses of 21Vianet will account for 22.9% of the net revenue in 2021, compared with 19.9% in 2020.
The sales and marketing expenses of 21Vianet in 2021 will be 255.4 million yuan (about US $40.1 million), an increase of 8.7% compared with 235 million yuan in 2020.
21Vianet's R&D expenditure in 2021 will be 188.5 million yuan (about US $29.6 million), an increase of 67.0% compared with 112.9 million yuan in 2020.
The general and administrative expenses of 21Vianet in 2021 will be 842.4 million yuan (about 132.2 million dollars), an increase of 57.4% compared with 535.1 million yuan in 2020.
Excluding equity incentive expenses, post merger employee compensation in a merger transaction, impairment of loans receivable to potential investees and long-term asset impairment, the adjusted total operating expenses of 21Vianet in 2021 will be 965.7 million yuan (about 151.5 million dollars), compared with 756.2 million yuan in 2020. The adjusted total operating expenses of 21Vianet will account for 15.6% of net revenue in 2021, compared with 15.7% in 2020.
Adjusted EBITDA:
Excluding changes in equity incentive expenses and the fair value of contingent acquisition consideration payable (not in accordance with U.S. GAAP), 21Vianet's adjusted EBITDA in 2021 will be 1.75 billion yuan (about 275.2 million dollars), an increase of 32.4% compared with 1.32 billion yuan in 2020. Excluding equity incentive expenses and changes in the fair value of contingent acquisition consideration payable (not in accordance with the U.S. GAAP), 21Vianet's adjusted EBITDA in 2021 excludes equity incentive expenses of RMB 320 million (about US $50.2 million). The adjusted EBITDA profit margin of 21Vianet in 2021 will be 28.3%, compared with 27.4% in 2020, excluding the changes in the fair value of equity incentive expenses and contingent acquisition consideration payable (not in accordance with the U.S. GAAP).
Net profit/loss:
The net profit attributable to common shareholders of 21Vianet in 2021 is RMB 500.1 million (about US $78.5 million), compared with the net loss attributable to common shareholders in 2020 of RMB 3.18 billion. The net profit attributable to common shareholders of 21Vianet in 2021 includes the income from changes in the fair value of convertible promissory notes of RMB 829.1 million (about US $130.1 million) due to the decline of the company's share price.
Earnings/losses per share:
In 2021, the basic and diluted earnings per ordinary share of 21Vianet will be 0.57 yuan (about US $0.09) and 0.36 yuan (about US $0.06) respectively, which is equivalent to the basic and diluted earnings per American depositary receipt of 3.42 yuan (about US $0.54) and 2.16 yuan (about US $0.36) respectively. The diluted income/loss per common share of 21Vianet is calculated by dividing the adjusted net profit/net loss attributable to common shareholders by the weighted average total number of shares.
Cash flow information:
In 2021, 21Vianet's net cash from business operations was 1.39 billion yuan (about 217.8 million dollars), compared with 714.2 million yuan in 2020.
Performance Outlook:
21Vianet predicts that the net revenue in fiscal year 2022 will reach 7.450 billion yuan to 7.750 billion yuan, and the adjusted EBITDA will reach 1.975 billion yuan to 2.125 billion yuan. The median of this updated expected range means that the company's total revenue and adjusted EBITDA will increase by 22.8% and 16.9% respectively year on year.
The above expectations reflect the current and preliminary views of the company and do not take into account any impact that the COVID-19 epidemic may have in the future, which may be adjusted in the future.
Note: The exchange rate conversion ratio in this financial report is 1 US dollar=6.3726 yuan.
Teleconferencing:
After the release of the financial report, the 21Vianet management team will hold a teleconference at 9:00 p.m. on March 30 (9:00 a.m. on March 31, Beijing time) to interpret the financial report results. The phone numbers for receiving conference calls are as follows:
Meeting ID: 7127417
Pre registration link: http://apac.directeventreg.com/registration/event/7127417
After the conference call, until April 7, 2022, you can call the following numbers to listen repeatedly:
United States:+1-855-452-5696
International:+61-2-9003-4211
Meeting ID: 7127417
In addition, Century Internet Investor Relations Channel http://ir.21vianet.com The teleconference will be broadcast live and recorded.
Change in share price:
On that day, 21Vianet's share price NASDAQ In regular trading, it fell $0.16, or 2.20%, to close at $7.12. In the subsequent after hours trading up to 5:15 p.m. on the 30th (5:15 a.m. on the 31st Beijing time), 21Vianet's share price rose by $0.13, or 1.83%, to $7.25. In the past 52 weeks, the highest price of 21Vianet was 34.88 dollars, and the lowest price was 3.51 dollars.
