• 21Vianet Group, Inc. Reports Unaudited First Quarter 2018 Financial Results

    ソース: Nasdaq GlobeNewswire / 17 5 2018 21:30:23   Europe/London

    Adjusted EBITDA up 95.5% YoY to RMB196.0 million
    Adjusted EBITDA margin expanded to 24.5% from 11.6% in prior year period

    BEIJING, May 18, 2018 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq:VNET) ("21Vianet" or the "Company"), a leading carrier-neutral Internet data center services provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2018. The Company will hold a conference call at 8:00 pm on Thursday, May 17, 2018, U.S. Eastern Time to discuss the financial results. Dial-in details are provided at the end of this release.

    First Quarter 2018 Financial Highlights (including hosting and related services & MNS1 business)

    • Revenues from hosting and related services increased by 13.3% year over year to RMB800.8 million (US$127.7 million).
    • Adjusted cash gross profit increased by 7.6% year over year to RMB347.5 million (US$55.4 million). Adjusted cash gross margin expanded to 43.4% from 37.5% in the same period of 2017.
    • Operating profit improved to RMB56.4 million from an operating loss of RMB72.1 million in the same period of 2017.
    • Adjusted EBITDA increased by 95.5% year over year to RMB196.0 million (US$31.2 million). Adjusted EBITDA margin expanded to 24.5% from 11.6% in the same period of 2017.
    • Net cash generated from operating activities was RMB95.9 million (US$15.3 million) in the first quarter of 2018 compared to RMB46.4 million in the same period of 2017.

    The financial numbers of the same period of 2017 include hosting and related services and MNS business. The year-over-year increase was partially driven by the disposal of the MNS business in September 2017.

    First Quarter 2018 Operational Highlights

    • Hosting MRR2 per cabinet increased to RMB7,905 in the first quarter of 2018 compared to RMB7,598 in the first quarter of 2017.
    • Total cabinets under management decreased slightly to 29,035 as of March 31, 2018 from 29,080 as of December 31, 2017. As of March 31, 2018, the Company had 23,839 cabinets in its self-built data centers and 5,196 cabinets in its partnered data centers.
    • Utilization rate was 70.0% in the first quarter of 2018 compared to 75.7% in the fourth quarter of 2017 due to the incremental cabinet capacity the Company delivered at the end of 2017.

    __________________

    1MNS: Refers to managed network services.
    2Hosting MRR: Refers to Monthly Recurring Revenues for the hosting business.

     

    Mr. Alvin Wang, Chief Executive Officer and President of the Company, stated, “We entered 2018 with accelerated financial and operating performance in the first quarter. We are pleased to see continued improvement on our results following our successful business restructuring in 2017. During the quarter, the demand for computing and storage capacity from both large and small corporations in China continued to grow. To capitalize on the market opportunities, we further expanded our data center network while maintaining our industry-leading service quality. This not only made us the clear choice of data center providers for our clients, it also made us the ideal partner for world-class technology leaders such as Microsoft Corp. With our long-term partnership with Microsoft, we will continue to improve our capabilities and capacities to deliver localized and customized cloud solutions with optimal user experiences to Chinese customers in the future.”

    Ms. Sharon Liu, Chief Financial Officer of the Company, commented, “We are delighted to sustain our strong momentum and deliver another quarter of robust financial growth. In the first quarter of 2018, our revenue from the hosting and related services business increased by 13.3% year over year to RMB800.8 million, exceeding the high end of our previous guidance. More importantly, as a result of our improved operating efficiency, we recorded adjusted EBITDA of RMB196.0 million in the first quarter of 2018, representing a year-over-year increase of 95.5%. As our restructuring strategy to fully focus on our core hosting and related services business continues to prove successful, we expect our growth momentum to carry into the quarters ahead.” 

    First Quarter 2018 Financial Results

    To fully reflect the Company’s performance, all analysis between “REVENUES” and “ADJUSTED EBITDA” presents only the results of the hosting and related service business. The MNS business, which was disposed of in the third quarter of 2017, is excluded.

    REVENUES: Net revenues increased by 13.3% to RMB800.8 million (US$127.7 million) in the first quarter of 2018 from RMB706.7 million in the same period of 2017 and increased by 4.6% from RMB765.8 million in the fourth quarter of 2017. The increase was primarily due to increasing demand from the Company’s new and existing customers.

    GROSS PROFIT: Gross profit increased by 10.5% to RMB227.9 million (US$36.3 million) in the first quarter of 2018 from RMB206.3 million in the same period of 2017 and increased by 13.9% from RMB200.2 million in the fourth quarter of 2017. Gross margin decreased slightly to 28.5% in the first quarter of 2018 from 29.2% in the same period of 2017. The decrease was mainly due to an increase in depreciation.

    Adjusted cash gross profit, which excludes depreciation, amortization, and share-based compensation expenses, increased by 18.1% to RMB347.5 million (US$55.4 million) in the first quarter of 2018 from RMB 294.3 million in the same period of 2017 and increased by 8.6% from RMB320.1 million in the fourth quarter of 2017. Adjusted cash gross margin expanded to 43.4% in the first quarter of 2018 from 41.6% in the same period of 2017 and 41.8% in the previous quarter. The increase was a result of cabinet resource management. Since the first quarter of 2017, the Company eliminated approximately 1,000 lower-margin cabinets in partnered data centers, bringing the total number of partnered cabinets to 5,196 in the first quarter of 2018 from 6,119 in the same period of 2017.
                                                                                                                                                 
    OPERATING EXPENSES: Total operating expenses increased by 11.3% to RMB171.5 million (US$27.3 million) in the first quarter of 2018 from RMB154.0 million in the same period of 2017 but decreased by 10.9% compared to the fourth quarter of 2017. The year-over-year fluctuation was mainly caused by the increase of office related expenses and personnel cost. The quarter-over-quarter decrease was mainly caused by expenses incurred and recorded for the disposal of the MNS business in the fourth quarter of 2017.

    Adjusted operating expenses, which exclude share-based compensation expenses and changes in the fair value of contingent purchase consideration payable, were RMB167.2 million (US$26.7 million) in the first quarter of 2018 compared to RMB154.1 million in the same period of 2017 and RMB173.2 million in the fourth quarter of 2017. As a percentage of net revenues, adjusted operating expenses decreased to 20.9% in the first quarter of 2018 from 21.8% in the same period of 2017 and 22.6% in the previous quarter. The decrease was primarily due to expense control measures implemented.

    Sales and marketing expenses increased by 21.2% to RMB41.2 million (US$6.6 million) in the first quarter of 2018 from RMB34.0 million in the same period of 2017 and decreased from RMB42.7 million in the fourth quarter of 2017.  The year-over-year increase was mainly driven by sales expansion.

    Research and development expenses were RMB22.0 million (US$3.5 million) in the first quarter of 2018 compared to RMB22.2 million in the same period of 2017 and RMB29.3 million in the previous quarter. The quarter-over-quarter decrease was mainly due to a drop in headcount and the enhancement of working efficiency.

    General and administrative expenses increased by 14.4% to RMB112.3 million (US$17.9 million) in the first quarter of 2018 from RMB98.2 million in the same period of 2017 and decreased from RMB115.4 million in the previous quarter. The year-over-year increase was primarily due to the expansion of the business and the increase of office related expenses.

    ADJUSTED EBITDA: Adjusted EBITDA for the first quarter of 2018 increased by 28.3% to RMB196.0 million (US$31.2 million) from RMB152.7 million in the same period of 2017 and increased by 14.6% compared to the previous quarter. Adjusted EBITDA for the first quarter of 2018 excludes share-based compensation expenses of RMB 6.6 million (US$1.0 million) and changes in the fair value of contingent purchase consideration payable, which was a gain of RMB2.3 million (US$0.4 million). Adjusted EBITDA margin expanded to 24.5% in the first quarter of 2018 from 21.6% in the same period of 2017 and 22.3% in the fourth quarter of 2017.

    NET PROFIT/LOSS: Net profit for the first quarter of 2018 was RMB34.7 million (US$5.5 million) compared to a net loss of RMB116.8 million in the same period of 2017. The improvement in net profit was mainly driven by the strong performance of the Company’s hosting and related services and its improved operating efficiency following the disposal of the MNS business in September 2017.

    PROFIT/LOSS PER SHARE: Diluted profit per share was RMB0.05 (US$0.01) in the first quarter of 2018, which represents the equivalent of RMB0.30 (US$0.06) per American Depositary Share ("ADS"). Each ADS represents six ordinary shares. Diluted profit per share is calculated using net profit divided by the weighted average number of shares.

    As of March 31, 2018, the Company's cash and cash equivalents and short-term investments were RMB2.38 billion (US$379.9 million).

    Net cash generated from operating activities was RMB95.9 million (US$15.3 million) in the first quarter of 2018.

    Recent Developments

    On March 14, 2018, the Company announced that it has extended its long-term partnership with Microsoft Corp. to provide world-class public cloud services to Chinese customers.

    Financial Outlook

    The following forecast reflects the Company’s current and preliminary view on the market and its operational conditions, which is subject to change.

    For the second quarter of 2018, the Company expects net revenues to be in the range of RMB810 million to RMB830 million compared to hosting and related service revenues of RMB743 million in the prior year period. Adjusted EBITDA is expected to be in the range of RMB200 million to RMB220 million compared to RMB171 million in the prior year period.

    Conference Call

    The Company will hold a conference call at 8:00 pm on Thursday, May 17, 2018 U.S. Eastern Time, or 8:00 am on Friday, May 18, 2018 Beijing Time, to discuss the financial results.

            
    Participants may access the call by dialing the following numbers:
            
    United States Toll Free:      +1-855-500-8701
    International:      +65-6713-5440
    China Domestic:      400-120-0654
    Hong Kong:      +852-3018-6776
    Conference ID:      9383759
            
    The replay will be accessible through May 25, 2018 by dialing the following numbers:
            
    United States Toll Free:      +1-855-452-5696
    International:      +61-2-9003-4211
    Conference ID:      9383759
            

    A live and archived webcast of the conference call will be available through the Company's investor relation 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 SEC as supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA, 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 RMB6.2726 to US$1.00, the noon buying rate in effect on March 31, 2018 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-neutral Internet data center services provider in China. 21Vianet provides hosting and related services, cloud services, and business VPN services, improving the reliability, security and speed of its customers' Internet infrastructure. Customers may locate their servers and networking equipment in 21Vianet's data centers and connect to China's Internet backbone through 21Vianet's extensive fiber optic network. 21Vianet operates in more than 30 cities throughout China, servicing a diversified and loyal base of nearly 5,000 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," "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.
    Jack Wang
    +1 (646) 405-4922
    IR@21Vianet.com

      
    21VIANET GROUP, INC. 
    CONSOLIDATED BALANCE SHEETS 
    (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 
     As ofAs of  
    December 31, 2017March 31, 2018 
     RMB RMB US$ 
     (Audited) (Unaudited) (Unaudited) 
    Assets    
    Current assets:    
    Cash and cash equivalents  1,949,631   1,850,440   295,004  
    Restricted cash  242,494   254,576   40,585  
    Accounts and notes receivable, net  455,811   506,475   80,744  
    Short-term investments  548,890   532,689   84,923  
    Prepaid expenses and other current assets  934,460   994,780   158,595  
    Amount due from related parties  114,256   93,294   14,873  
    Total current assets  4,245,542   4,232,254   674,724  
    Non-current assets:       
    Property and equipment, net  3,319,424   3,282,857   523,365  
    Intangible assets, net  401,115   382,416   60,966  
    Land use rights, net  163,671   162,713   25,940  
    Goodwill  989,530   989,530   157,754  
    Long-term investments  510,926   504,679   80,458  
    Amount due from related parties  20,210   20,385   3,250  
    Restricted cash  3,344   3,221   514  
    Deferred tax assets172,818 157,693 25,140  
    Other non-current assets81,581
     142,036 22,644  
    Total non-current assets  5,662,619   5,645,530   900,031  
    Total assets  9,908,161   9,877,784   1,574,755  
    Liabilities and Shareholders' Equity       
    Current liabilities:    
    Short-term bank borrowings  50,000   69,999   11,159  
    Accounts and notes payable  252,892   293,135   46,733  
    Accrued expenses and other payables  657,133   593,652   94,642  
    Deferred revenue  55,753   35,248   5,619  
    Advances from customers  403,244   477,239   76,083  
    Income taxes payable  13,309   28,456   4,537  
    Amounts due to related parties  55,675   59,386   9,468  
    Current portion of long-term bank borrowings  70,289   70,289   11,206  
    Current portion of capital lease obligations  201,315   194,449   31,000  
    Current portion of deferred government grant  4,574   4,574   729  
    Current portion of bonds payable  11,139   10,939   1,744  
    Total current liabilities  1,775,323   1,837,366   292,920  
    Non-current liabilities:       
    Long-term bank borrowings  187,638   187,638   29,914  
    Unrecognized tax benefits  16,511   16,701   2,663  
    Deferred tax liabilities  190,873   188,539   30,058  
    Non-current portion of capital lease obligations  600,882   611,232   97,445  
    Non-current portion of deferred government grant  17,861   16,112   2,569  
    Bonds payable  1,918,069   1,848,263   294,657  
    Total non-current liabilities  2,931,834   2,868,485   457,306  
    Shareholders' equity       
    Treasury stock  (337,683)  (337,683)  (53,835) 
    Ordinary shares   46   46   7  
    Additional paid-in capital  8,980,407   8,991,665   1,433,483  
    Accumulated other comprehensive loss  (2,673)  (77,733)  (12,392) 
    Statutory reserves  38,736   38,969   6,213  
    Accumulated deficit  (3,629,300)  (3,596,693)  (573,397) 
    Total 21Vianet Group, Inc. shareholders’ equity  5,049,533   5,018,571   800,079  
    Noncontrolling interest  151,471   153,362   24,450  
    Total shareholders' equity  5,201,004   5,171,933   824,529  
    Total liabilities and shareholders' equity  9,908,161   9,877,784   1,574,755  
            

     

    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 
     March 31, 2017December 31, 2017March 31, 2018
     RMBRMBRMBUS$
     (Unaudited)(Unaudited)(Unaudited)(Unaudited)
    Net revenues    
    Hosting and related services  706,711   765,814   800,765   127,661 
    Managed network services  155,466   -    -    -  
    Total net revenues  862,177   765,814   800,765   127,661 
    Cost of revenues  (681,700  (565,645  (572,863  (91,328)
    Gross profit  180,477   200,169   227,902   36,333 
    Operating expenses    
    Sales and marketing  (65,832)  (42,702)  (41,232)  (6,573)
    Research and development  (38,387)  (29,340)  (22,030)  (3,512)
    General and administrative  (135,803)  (115,351)  (112,340)  (17,910)
    (Allowance) reversal for doubtful debt  (15,465)  (1,147)  1,855   296 
    Changes in the fair value of contingent purchase consideration payable  2,867   (3,834)  2,284   364 
    Total operating expenses  (252,620)  (192,374)  (171,463)  (27,335)
    Operating (loss) profit  (72,143)  7,795   56,439   8,998 
    Interest income  8,252   10,821   8,527   1,359 
    Interest expense  (37,027)  (50,836)  (51,542)  (8,217)
    Impairment of long-term investment   -   139   -   - 
    Gain on disposal of subsidiaries  -   677,084   -   - 
    Other income  4,826   3,260   22,161   3,533 
    Other expense  (1,562)  (232)  (1,526)  (243)
    Foreign exchange (loss) gain  (5,481)  4,328   44,841   7,149 
    (Loss) gain before income taxes and gain (loss) from equity method investments  (103,135)  652,359   78,900   12,579 
    Income tax (expenses) benefits  (16,127)  127,478   (34,080)  (5,433)
    Gain (loss) from equity method investments  2,425   17,732   (10,089)  (1,608)
    Net (loss) profit  (116,837)  797,569   34,731   5,538 
    Net loss (profit) attributable to noncontrolling interest  17,043   1,073   (1,891)  (301)
    Net (loss) profit attributable to ordinary shareholders  (99,794)  798,642   32,840   5,237 
             
    (Loss) profit per share    
    Basic  (0.17)  1.19   0.05   0.01 
    Diluted  (0.17)  1.18   0.05   0.01 
    Shares used in (loss) profit per share computation    
    Basic*  678,649,016   671,279,121   672,741,909   672,741,909 
    Diluted*  678,649,016   675,505,879   677,158,404   677,158,404 
         
    (Loss) profit per ADS (6 ordinary shares equal to 1 ADS)    
    Basic(1.02)7.14 0.30 0.06 
    Diluted(1.02)7.08 0.30 0.06 
         
    * 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  
     March 31, 2017December 31, 2017March 31, 2018 
     RMBRMBRMBUS$ 
    Gross profit  180,477   200,169   227,902   36,333  
    Plus: depreciation and amortization  142,810   119,814   119,562   19,061  
    Plus: share-based compensation expenses  (222)  84   14   2  
    Adjusted cash gross profit  323,065   320,067   347,478   55,396  
    Adjusted cash gross margin37.5% 41.8% 43.4% 43.4%  
    Operating expenses  (252,620)  (192,374)  (171,463)  (27,335) 
    Plus: share-based compensation expenses  4,545   15,317   6,555   1,045  
    Plus: changes in the fair value of contingent purchase consideration payable  (2,867)  3,834   (2,284)  (364) 
    Adjusted operating expenses  (250,942)  (173,223)  (167,192)  (26,654) 
    Operating (loss) profit  (72,143)  7,795   56,439   8,998  
    Plus: depreciation and amortization  170,953   143,966   135,290   21,568  
    Plus: share-based compensation expenses  4,323   15,401   6,569   1,047  
    Plus: changes in the fair value of contingent purchase consideration payable  (2,867)  3,834   (2,284)  (364) 
    Adjusted EBITDA  100,266   170,996   196,014   31,249  
    Adjusted EBITDA margin11.6% 22.3% 24.5% 24.5%  
          


    21VIANET GROUP, INC. 
    SUPPLEMENTARY DISCLOSURE FOR HOSTING AND RELATED SERVICES 
    (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 
          
     Three months ended  
     March 31, 2017December 31, 2017March 31, 2018 
    GAAP DisclosureRMBRMBRMBUS$ 
    Net revenues  706,711   765,814   800,765   127,661  
    Cost of revenues  (500,430)  (565,645)  (572,863)  (91,328) 
    Gross profit  206,281   200,169   227,902   36,333  
    Sales and marketing  (34,015)  (42,702)  (41,232)  (6,573) 
    Research and development  (22,206)  (29,340)  (22,030)  (3,512) 
    General and administrative  (98,214)  (115,351)  (112,340)  (17,910) 
    (Allowance) reversal for doubtful debt  (2,440)  (1,147)  1,855   296  
    Changes in the fair value of contingent purchase consideration payable  2,867   (3,834)  2,284   364  
    Total operating expenses  (154,008)  (192,374)  (171,463)  (27,335) 
    Operating profit  52,273   7,795   56,439   8,998  
          
    Non-GAAP disclosure     
    Gross profit  206,281   200,169   227,902   36,333  
    Plus: depreciation and amortization  88,146   119,814   119,562   19,061  
    Plus: share-based compensation expenses  (138)  84   14   2  
    Adjusted cash gross profit  294,289   320,067   347,478   55,396  
    Adjusted cash gross margin41.6% 41.8% 43.4% 43.4%  
    Operating expenses  (154,008)  (192,374)  (171,463)  (27,335) 
    Plus: share-based compensation expenses  2,819   15,317   6,555   1,045  
    Plus: changes in the fair value of contingent purchase consideration payable  (2,867)  3,834   (2,284)  (364) 
    Adjusted operating expenses  (154,056)  (173,223)  (167,192)  (26,654) 
    Operating profit  52,273   7,795   56,439   8,998  
    Plus: depreciation and amortization  100,633   143,966   135,290   21,568  
    Plus: share-based compensation expenses  2,681   15,401   6,569   1,047  
    Plus: changes in the fair value of contingent purchase consideration payable  (2,867)  3,834   (2,284)  (364) 
    Adjusted EBITDA  152,720   170,996   196,014   31,249  
    Adjusted EBITDA margin21.6% 22.3% 24.5% 24.5%  
          


    21VIANET GROUP, INC. 
    CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
    (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 
          
      Three months ended  
     March 31,2017December 31, 2017March 31, 2018 
      RMB  RMB  RMB  US$  
      (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  
    CASH FLOWS FROM OPERATING ACTIVITIES      
    Net (loss) profit(116,837)797,569 34,731 5,538  
    Adjustments to reconcile net (loss) profit to net cash generated from operating activities:      
      Depreciation and amortization170,953 143,966 135,290 21,568  
      Stock-based compensation expenses4,323 15,513 6,569 1,047  
      Gain from disposal of subsidiaries- (677,084)- -  
      Others15,894 (148,681)(47,256)(7,535) 
    Changes in operating assets and liabilities      
      Accounts and notes receivable(80,864)32,070 (49,722)(7,927) 
      Prepaid expenses and other current assets(85,428)(23,235)(92,181)(14,696) 
      Accounts and notes payable60,490 (38,841)40,243 6,416  
      Accrued expenses and other payables(4,161)92,272 (25,300)(4,033) 
      Deferred revenue(43,074)8,674 (20,505)(3,269) 
      Advances from customers111,899 (23,683)73,995 11,797  
      Others13,155 (21,413)39,989 6,375  
    Net cash generated from operating activities 46,350 157,127 95,853 15,281  
              
    CASH FLOWS FROM INVESTING ACTIVITIES      
    Purchases of property and equipment(99,432)(74,603)(91,027)(14,512) 
    Purchases of intangible assets(9,386)(4,062)(1,887)(301) 
    Payments for investments(207,003)(275,766)(14,473)(2,307) 
    Payments for assets acquisition, net of cash acquired(15,053)- - -  
    Proceeds from other investing activities- 100,000 26,654 4,249  
    Net cash used in investing activities (330,874)(254,431)(80,733)(12,871) 
              
    CASH FLOWS FROM FINANCING ACTIVITIES      
    Net proceeds from issuance of 2020 bonds- 612,723 - -  
    Proceeds from bank borrowings59,038 - 69,999 11,159  
    Repayments of bank borrowings(96,974)(1,587,871)(50,000)(7,971) 
    Payments for capital lease(32,055)(67,239)(29,287)(4,669) 
    Payments for other financing activities(74,523)(9,925)(19,650)(3,132) 
    Net cash used in financing activities (144,514)(1,052,312)(28,938)(4,613) 
    Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (17,255)(4,967)(73,414)(11,703) 
    Net decrease in cash, cash equivalents and restricted cash (446,293)(1,154,583)(87,232)(13,906) 
    Cash, cash equivalents and restricted cash at beginning of period 3,294,523 3,350,052 2,195,469 350,009  
    Cash, cash equivalents and restricted cash at end of period 2,848,230 2,195,469 2,108,237 336,103  
              
    Notes:      
    The Company adopted Accounting Standards Update (“ASU”) No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash on January 1, 2018 and retrospectively adjusted the condensed consolidated statement of cash flows for the three months ended March 31, 2017 and December 31,2017 by excluding the movement of restricted cash of RMB71.6 million and RMB1,619.3 million respectively. 
          



     

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