ChinaCache International Holdings Ltd. (“ChinaCache” or the
“Company”) (NASDAQ:CCIH), the leading total solutions provider of
Internet content and application delivery services in China, today
announced its unaudited condensed consolidated financial results
for the second quarter ended June 30, 2016.
Second Quarter 2016 Financial
Overview
- Net revenues were RMB261.5 million (US$39.3
million), compared with RMB353.3 million in the corresponding
period in 2015 and RMB267.8 million in the previous quarter.
- Gross loss was RMB3.9 million (US$0.6
million), compared with gross profit of RMB96.8 million in the
corresponding period in 2015 and gross loss of RMB13.6 million in
the previous quarter.
- Adjusted EBITDA (non-GAAP) was a loss of
RMB55.4 million (US$8.3 million), compared with adjusted EBITDA
(non-GAAP) of RMB41.8 million in the corresponding period in 2015
and a loss of RMB56.9 million in the previous quarter.
- Net loss attributable to ordinary
shareholders was RMB108.8 million (US$16.4 million),
compared with a net loss attributable to ordinary shareholders of
RMB7.3 million in the corresponding period in 2015 and a net loss
attributable to ordinary shareholders of RMB138.5 million in the
previous quarter.
“While the growth rate of China’s Content
Delivery Network (CDN) industry is higher than that of many other
sectors in China’s economy, our performance in the second quarter
of 2016 continued to be hampered by slower-than-expected
improvements in our High Performance Cloud Caching (HPCC) platform.
The HPCC platform was constructed using different technologies from
the prior platform and requires significant time and effort to
achieve optimal operating efficiency. Nevertheless, we believe that
platform optimization will serve as our long-term differentiator in
this market,” commented Mr. Song Wang, Chairman and Chief Executive
Officer of ChinaCache.
“We are making steady progresses in our Internet
Exchange and Data Center business. We have established Internet
Exchange centers in Beijing, Shanghai and Guangzhou, and are
planning more in other major cities in China. Although Internet
Exchange centers are common in other countries, they are a new
development in China. As a leader in the domestic Internet Exchange
center business, we strive to bring innovation to the Chinese
Internet industry, reduce Internet traffic cost for small- and
mid-sized ICPs and ISPs, and improve the end user experience. We
believe our efforts are complementary to current industry practices
and will contribute to a healthier and stronger Internet industry
in China.
“We are working diligently to improve our
performance and to seize the opportunities offered by the CDN and
Data Center businesses in China. We are investing in R&D to
regain technological prominence. We are expanding our U.S. presence
to better serve our customers and recruit more R&D talent, and
we are initiating a corporate restructuring program to better
reward and retain key employees, streamline operations and pursue
sustainable growth,” concluded Mr. Wang.
Second Quarter 2016 Financial
Results
Net revenues for the second
quarter 2016 were RMB261.5 million (US$39.3 million), a 2.3%
decrease from the previous quarter and a 26.0% decrease from the
corresponding period in 2015. The slight decrease
quarter-over-quarter in net revenues was primarily attributable to
reduced customer traffic and industry competition.
Cost of revenues for the second
quarter 2016 decreased by 5.7% quarter-over-quarter and increased
by 3.5% year-over-year to RMB265.4 million (US$39.9 million). Gross
margin was negative 1.5%, compared with negative 5.1% in the
previous quarter and 27.4% in the corresponding period in 2015.
Non-GAAP gross margin, which excludes share-based compensation, was
negative 0.7%, compared with negative 4.0% in the previous quarter
and 27.7% in the corresponding period in 2015. The increase in
gross margin in the second quarter of 2016 compared with that of
the previous quarter was mainly attributable to efforts in
improving bandwidth utilization.
Sales and marketing expenses for the second
quarter 2016 were RMB24.4 million (US$3.7 million), or 9.3% of net
revenues, a 2.9% increase over the previous quarter and a 4.4%
decrease from the corresponding period in 2015. The decrease in
sales and marketing expenses in the second quarter of 2016,
compared with that of the same period last year was primarily
attributable to cost control measures.
General and administrative expenses for the
second quarter 2016 were RMB65.0 million (US$9.8 million), or 24.9%
of net revenues, a 25.7% decrease from the previous quarter and a
19.3% increase from the corresponding period in 2015. The decrease
in general and administrative expenses in the second quarter of
2016 compared with that of the first quarter of 2016 was primarily
attributable to a decrease in share-based compensation
expenses.
Research and development (R&D) expenses for
the second quarter 2016 were RMB26.9 million (US$4.1 million), or
10.3% of net revenues, a 3.6% decrease from the previous quarter
and a 0.4% increase from the corresponding period in 2015.
Adjusted EBITDA (non-GAAP),
defined as EBITDA excluding share-based compensation expenses and
foreign exchange gain (loss), was a loss of RMB55.4 million (US$8.3
million) for the second quarter 2016. Adjusted EBITDA (non-GAAP)
was a loss of RMB56.9 million in the previous quarter and RMB41.8
million in the corresponding period in 2015.
Operating loss was RMB119.2
million (US$17.9 million) in the second quarter 2016, compared with
an operating loss of RMB147.2 million in the previous quarter and
an operating loss of RMB10.0 million in the corresponding period in
2015. Non-GAAP operating loss, which excludes share-based
compensation expenses, was RMB95.7 million (US$14.4 million) for
the second quarter 2016, compared with a non-GAAP operating loss of
RMB97.0 million in the previous quarter and a non-GAAP operating
income of RMB1.5 million in the corresponding period in 2015.
Income tax benefit was RMB4.8
million (US$0.7 million) in the second quarter 2016, compared with
income tax benefit of RMB12.4 million in the previous quarter and
income tax benefit of RMB3.0 million in the corresponding period in
2015.
Net loss was RMB108.9 million
(US$16.4 million) in the second quarter 2016, compared with a net
loss of RMB138.5 million in the previous quarter, and a net loss of
RMB7.3 million in the corresponding period in 2015. Net loss per
basic and diluted American depositary share (“ADS”) for the second
quarter 2016 was RMB4.31 (US$0.65) each. Each ADS represents 16
ordinary shares of the Company.
Adjusted net loss (non-GAAP),
defined as net loss before share-based compensation expenses and
foreign exchange gain (loss), was RMB91.4 million (US$13.8 million)
in the second quarter 2016, compared with adjusted net loss
(non-GAAP) of RMB87.5 million in the previous quarter and adjusted
net income (non-GAAP) of RMB4.0 million in the corresponding period
in 2015. Non-GAAP net loss per basic and diluted ADS for the second
quarter 2016 was RMB3.62 (US$0.55)
each.
Balance Sheet
As of June 30, 2016, the Company had cash and
cash equivalents of RMB367.8 million (US$55.3 million), compared
with RMB606.8 million as of December 31, 2015. Capital expenditures
for the second quarter 2016 were RMB27.7 million (US$4.2
million).
2016 Full Year Guidance
ChinaCache currently expects to generate total
net revenues in the range of RMB1.04 billion to RMB1.10 billion for
the full year of 2016.
This forecast reflects ChinaCache's current
view, which is subject to change.
Subsequent Event
On July 1, 2016, the Company announced that Ms.
Jing An, Chief Financial Officer, resigned from the Company to
pursue other opportunities and will remain as a consultant to the
Company. Mr. Naijiang Zhou, the Company’s senior vice president of
corporate strategy and investment, assumed the role of interim
Chief Financial Officer.
Conference Call
Information
The Company has scheduled a conference call to
discuss these results at 8:00 PM Eastern time on August 18, 2016,
which corresponds to 8:00 AM Beijing time on August 19, 2016.
The dial-in details for the live conference call are as
follows:
- U.S. dial-in number: +1 (845) 675-0438
- Hong Kong dial-in number: +852 3018-6776
- International dial-in number: +65 6713-5440
- China dial-in number: 400-1200-654
- Conference ID: 65818965
A live audio webcast of the call can be accessed by visiting
ChinaCache’s Investor Relations website at ir.chinacache.com. A
replay of the conference call will also be available approximately
two hours after the conclusion of the live call until August 25,
2016 by dialing:
- U.S. dial-in number: +1 (855) 452-5696
- International dial-in number: +61 (2)
9003-4211
- China dial-in number: 400-632-2162
- Conference ID: 65818965
About ChinaCache International Holdings
Ltd.
ChinaCache International Holdings Ltd.
(Nasdaq:CCIH) is the leading total solutions provider of Internet
content and application delivery services in China. As a
carrier-neutral service provider, ChinaCache's network in China is
interconnected with networks operated by all telecom carriers,
major non-carriers and local Internet service providers. With more
than a decade of experience in developing solutions tailored to
China's complex Internet infrastructure, ChinaCache is a partner of
choice for businesses, government agencies and other enterprises to
enhance the reliability and scalability of online services and
applications and improve end-user experience. For more information
on ChinaCache, please visit ir.chinacache.com.
Use of Non-GAAP Financial
Measures
In evaluating its business, ChinaCache considers
and uses the following non-GAAP measures defined as non-GAAP
financial measures by the SEC as supplemental measures to review
and assess its operating performance: non-GAAP gross profit,
non-GAAP sales and marketing expenses, non-GAAP general and
administrative expenses, non-GAAP research and development
expenses, non-GAAP operating income (loss), adjusted net income
(loss) (non-GAAP), EBITDA and adjusted EBITDA (non-GAAP). 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 Non-GAAP to GAAP
Financial Measures" set forth at the end of this press release.
To present non-GAAP sales and marketing
expenses, non-GAAP general and administrative expenses and non-GAAP
research and development expenses, the Company excludes share-based
compensation expense.
To present non-GAAP gross profit (loss), the
Company excludes share-based compensation expense.
To present non-GAAP operating income (loss), the
Company excludes share-based compensation expense.
The Company defines adjusted net income (loss)
as net income (loss) before share-based compensation expense and
foreign exchange gain (loss).
The Company uses EBITDA to assist in
reconciliation to adjusted EBITDA. The Company defines EBITDA as
net income (loss) before interest expense, interest income, income
tax expense and depreciation and amortization. The Company defines
adjusted EBITDA as EBITDA before share-based compensation expense
and foreign exchange gain (loss) that the Company does not consider
reflective of its ongoing operations. The Company believes that the
use of adjusted EBITDA facilitates investors' use of operating
performance comparisons from period to period and company to
company by backing out potential differences caused by variations
in items such as capital structure (affecting relative interest
expense and share-based compensation expense), the book
amortization of intangibles (affecting relative amortization
expense), the age and book value of facilities and equipment
(affecting relative depreciation expense) and other non-cash
expenses. The Company also presents adjusted EBITDA because it
believes it is frequently used by securities analysts, investors
and other interested parties as a measure of the financial
performance of companies in its industry.
Those non-GAAP financial measures are not
defined under U.S. GAAP and are not measures presented in
accordance with U.S. GAAP. Those non-GAAP financial measures have
limitations as analytical tools, and when assessing the Company's
operating performance, investors should not consider them in
isolation, or as a substitute for net income or other consolidated
income statement data prepared in accordance with U.S. GAAP. Some
of these limitations include, but are not limited to:
- Adjusted net income, EBITDA and adjusted EBITDA do not reflect
the Company's cash expenditures or future requirements for capital
expenditures or contractual commitments;
- They do not reflect changes in, or cash requirements for, the
Company's working capital needs;
- They do not reflect the interest expense, or the cash
requirements necessary to service interest or principal payments,
on the Company's debt;
- They do not reflect income taxes or the cash requirements for
any tax payments;
- Although depreciation and amortization are non-cash charges,
the assets being depreciated and amortized often will have to be
replaced in the future, and adjusted net income, EBITDA and
adjusted EBITDA do not reflect any cash requirements for such
replacements;
- While share-based compensation is a component of cost of
revenues and operating expenses, the impact on the Company's
financial statements compared to other companies can vary
significantly due to such factors as assumed life of the options
and assumed volatility of the Company's ordinary shares; and
- Other companies may calculate adjusted net income, EBITDA and
adjusted EBITDA differently than the Company does, limiting their
usefulness as comparative measures.
Exchange Rate Information
This announcement contains translations of
certain RMB amounts into U.S. dollars at a specified rate solely
for the convenience of the reader. Unless otherwise noted, all
translations from RMB to U.S. dollars are based on the effective
exchange rate of 6.6459 as of June 30, 2016.
Safe Harbor Statement
This announcement contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “will,” “expects,” “anticipates,” “future,”
“intends,” “plans,” “believes,” “estimates” and similar statements.
Among other things, the business outlook of the Company and
quotations from management in this announcement, as well as
ChinaCache’s strategic and operational plans, contain
forward-looking statements. ChinaCache may also make written or
oral forward-looking statements in its reports filed 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. 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 statements, including but not limited to the
following: the Company’s goals and strategies, expansion plans, the
expected growth of the content and application delivery services
market, the Company’s expectations regarding keeping and
strengthening its relationships with its customers, and the general
economic and business conditions in the regions where the Company
provides its solutions and services. Further information regarding
these and other risks is included in the Company’s filings with the
U.S. Securities and Exchange Commission. All information provided
in this press release is as of the date of this press release, and
ChinaCache undertakes no duty to update such information, except as
required under applicable law.
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance
Sheets |
|
(amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of Dec 31 |
|
As of Jun 30 |
|
As of Jun 30 |
|
|
|
|
|
2015 |
|
2016 |
|
2016 |
|
|
|
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
(Audited) |
|
(Unaudited) |
|
(Unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
606,796 |
|
367,780 |
|
55,339 |
|
|
Accounts receivable, net |
243,431 |
|
203,005 |
|
30,546 |
|
|
Prepaid
expenses and other current assets |
|
31,560 |
|
30,349 |
|
4,566 |
|
|
Short term
investments |
|
26,169 |
|
76,792 |
|
11,555 |
|
|
Deferred
tax assets |
|
17,923 |
|
18,420 |
|
2,772 |
|
|
Amount due
from a subsidiary held for sale |
|
435 |
|
446 |
|
67 |
|
|
Assets held
for sale |
|
1,060,543 |
|
1,014,937 |
|
152,716 |
|
|
|
Total current
assets |
|
1,986,857 |
|
1,711,729 |
|
257,561 |
|
|
|
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
|
Property
and equipment, net |
|
499,946 |
|
443,005 |
|
66,658 |
|
|
Intangible
assets, net |
|
10,898 |
|
9,461 |
|
1,424 |
|
|
Long term
investments |
|
50,157 |
|
50,633 |
|
7,619 |
|
|
Deferred
tax assets |
|
11,368 |
|
22,574 |
|
3,397 |
|
|
Long term
deposits and other non-current assets |
|
59,390 |
|
63,163 |
|
9,504 |
|
|
|
Total non-current
assets |
|
631,759 |
|
588,836 |
|
88,602 |
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
2,618,616 |
|
2,300,565 |
|
346,163 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
Accounts
payable |
|
205,593 |
|
304,618 |
|
45,835 |
|
|
Accrued
employee benefits |
|
44,690 |
|
50,863 |
|
7,653 |
|
|
Accrued
expenses and other payables |
|
76,409 |
|
54,578 |
|
8,212 |
|
|
Income tax
payable |
|
13,513 |
|
14,554 |
|
2,190 |
|
|
Liabilities
for uncertain tax positions |
|
11,337 |
|
11,337 |
|
1,706 |
|
|
Amounts due
to related parties |
|
18 |
|
19 |
|
3 |
|
|
Current
portion of long term loan |
|
7,180 |
|
7,180 |
|
1,080 |
|
|
Current
portion of capital lease obligations |
|
70,615 |
|
78,100 |
|
11,752 |
|
|
Deferred
government grant |
|
16,360 |
|
13,000 |
|
1,956 |
|
|
Amount due
to a subsidiary held for sale |
|
319,536 |
|
173,751 |
|
26,144 |
|
|
Liabilities
held for sale |
|
1,014,449 |
|
984,947 |
|
148,204 |
|
|
|
Total current
liabilities |
|
1,779,700 |
|
1,692,947 |
|
254,735 |
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loan |
|
4,340 |
|
750 |
|
113 |
|
|
|
Non-current portion of
capital lease obligations |
|
104,450 |
|
77,116 |
|
11,604 |
|
|
|
Deferred government
grant |
|
8,439 |
|
14,409 |
|
2,168 |
|
|
|
Total non-current liabilities |
|
117,229 |
|
92,275 |
|
13,885 |
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities |
|
1,896,929 |
|
1,785,222 |
|
268,620 |
|
|
|
|
|
|
|
|
|
|
|
Total
Shareholders' equity |
|
721,687 |
|
515,343 |
|
77,543 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
2,618,616 |
|
2,300,565 |
|
346,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of
Comprehensive Income |
|
|
(amounts in thousands, except for number of shares,
per share and per ADS data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
Jun 30, 2015 |
|
Mar 31, 2016 |
|
Jun 30, 2016 |
|
Jun 30, 2016 |
|
|
|
|
|
|
|
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues |
|
|
|
353,344 |
|
|
|
267,777 |
|
|
|
261,503 |
|
|
|
39,348 |
|
|
|
|
Cost of revenues |
|
|
|
(256,524 |
) |
|
|
(281,374 |
) |
|
|
(265,376 |
) |
|
|
(39,931 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
|
|
96,820 |
|
|
|
(13,597 |
) |
|
|
(3,873 |
) |
|
|
(583 |
) |
|
|
|
|
Other
operating income |
|
|
|
- |
|
|
|
5,581 |
|
|
|
1,010 |
|
|
|
152 |
|
|
|
|
|
Sales &
marketing expenses |
|
|
|
(25,526 |
) |
|
|
(23,725 |
) |
|
|
(24,402 |
) |
|
|
(3,672 |
) |
|
|
|
|
General
& administrative expenses |
|
|
|
(54,511 |
) |
|
|
(87,515 |
) |
|
|
(65,036 |
) |
|
|
(9,786 |
) |
|
|
|
|
Research
& development expenses |
|
|
|
(26,819 |
) |
|
|
(27,948 |
) |
|
|
(26,931 |
) |
|
|
(4,052 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
|
(10,036 |
) |
|
|
(147,204 |
) |
|
|
(119,232 |
) |
|
|
(17,941 |
) |
|
|
|
|
Interest
income |
|
|
|
1,153 |
|
|
|
420 |
|
|
|
2,361 |
|
|
|
355 |
|
|
|
|
|
Interest
expense |
|
|
|
(3,322 |
) |
|
|
(3,406 |
) |
|
|
(3,218 |
) |
|
|
(484 |
) |
|
|
|
|
Other
income (expense) |
|
|
|
1,718 |
|
|
|
(4 |
) |
|
|
432 |
|
|
|
65 |
|
|
|
|
|
Foreign
exchange gain (loss), net |
|
|
|
188 |
|
|
|
(752 |
) |
|
|
6,031 |
|
|
|
907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
|
(10,299 |
) |
|
|
(150,946 |
) |
|
|
(113,626 |
) |
|
|
(17,098 |
) |
|
|
|
|
Income tax benefit |
|
|
|
2,953 |
|
|
|
12,416 |
|
|
|
4,776 |
|
|
|
719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
|
|
(7,346 |
) |
|
|
(138,530 |
) |
|
|
(108,850 |
) |
|
|
(16,379 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to the noncontrolling interest |
|
|
|
- |
|
|
|
(70 |
) |
|
|
(91 |
) |
|
|
(14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss attributable to the Company's shareholders |
|
|
(7,346 |
) |
|
|
(138,460 |
) |
|
|
(108,759 |
) |
|
|
(16,365 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation |
|
|
|
(148 |
) |
|
|
(44 |
) |
|
|
422 |
|
|
|
63 |
|
|
|
|
Unrealized
holding gain on available-for-sale investments |
|
|
212 |
|
|
|
429 |
|
|
|
190 |
|
|
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income, net of tax |
|
|
|
64 |
|
|
|
385 |
|
|
|
612 |
|
|
|
92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss |
|
|
|
(7,282 |
) |
|
|
(138,145 |
) |
|
|
(108,238 |
) |
|
|
(16,287 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss attributable to the noncontrolling interest |
|
|
- |
|
|
|
(70 |
) |
|
|
(91 |
) |
|
|
(14 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss attributable to the Company's
shareholders |
|
(7,282 |
) |
|
|
(138,075 |
) |
|
|
(108,147 |
) |
|
|
(16,273 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per ordinary share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
(0.02 |
) |
|
|
(0.35 |
) |
|
|
(0.27 |
) |
|
|
(0.04 |
) |
|
|
|
|
Diluted |
|
|
|
|
(0.02 |
) |
|
|
(0.35 |
) |
|
|
(0.27 |
) |
|
|
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per ADS*: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
(0.28 |
) |
|
|
(5.60 |
) |
|
|
(4.31 |
) |
|
|
(0.65 |
) |
|
|
|
|
Diluted |
|
|
|
|
(0.28 |
) |
|
|
(5.60 |
) |
|
|
(4.31 |
) |
|
|
(0.65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares used in earnings
per share computation: |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
419,437,177 |
|
|
|
395,349,144 |
|
|
|
403,422,017 |
|
|
|
403,422,017 |
|
|
|
|
|
Diluted |
|
|
|
|
419,437,177 |
|
|
|
395,349,144 |
|
|
|
403,422,017 |
|
|
|
403,422,017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Note1:1 ADS
= 16 shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary Metrics - Reconciliations of
Non-GAAP to GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
(amounts in thousands, except for percentages, number
of shares, per share and per ADS data) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
|
|
|
|
|
Jun 30, 2015 |
|
Mar 31, 2016 |
|
Jun 30, 2016 |
|
Jun 30, 2016 |
|
|
|
|
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
|
|
Adjusted EBITDA — defined as EBITDA before share-based
compensation expense and foreign exchange loss (gain) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
|
(7,346 |
) |
|
|
(138,530 |
) |
|
|
(108,850 |
) |
|
|
(16,379 |
) |
|
|
|
Depreciation |
|
|
37,737 |
|
|
|
39,338 |
|
|
|
39,144 |
|
|
|
5,890 |
|
|
|
|
Amortization |
|
|
817 |
|
|
|
718 |
|
|
|
796 |
|
|
|
120 |
|
|
|
|
Interest expense |
|
|
3,322 |
|
|
|
3,406 |
|
|
|
3,218 |
|
|
|
484 |
|
|
|
|
Interest income |
|
|
(1,153 |
) |
|
|
(420 |
) |
|
|
(2,361 |
) |
|
|
(355 |
) |
|
|
|
Income tax benefit |
|
|
(2,953 |
) |
|
|
(12,416 |
) |
|
|
(4,776 |
) |
|
|
(719 |
) |
|
|
|
Share-based compensation |
|
|
11,569 |
|
|
|
50,247 |
|
|
|
23,492 |
|
|
|
3,535 |
|
|
|
|
Foreign exchange (gain) loss |
|
|
(188 |
) |
|
|
752 |
|
|
|
(6,031 |
) |
|
|
(907 |
) |
|
|
|
Adjusted EBITDA |
|
|
41,805 |
|
|
|
(56,905 |
) |
|
|
(55,368 |
) |
|
|
(8,331 |
) |
|
|
|
|
Margin% |
|
|
11.8 |
% |
|
|
(21.3 |
%) |
|
|
(21.2 |
%) |
|
|
(21.2 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (loss)— defined as net loss before
share-based compensation and foreign exchange gain (loss) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
|
(7,346 |
) |
|
|
(138,530 |
) |
|
|
(108,850 |
) |
|
|
(16,379 |
) |
|
|
|
Share-based
compensation |
|
|
11,569 |
|
|
|
50,247 |
|
|
|
23,492 |
|
|
|
3,535 |
|
|
|
|
Foreign exchange gain (loss) |
|
|
(188 |
) |
|
|
752 |
|
|
|
(6,031 |
) |
|
|
(907 |
) |
|
|
|
Adjusted net income (loss) |
|
|
4,035 |
|
|
|
(87,531 |
) |
|
|
(91,389 |
) |
|
|
(13,751 |
) |
|
|
|
|
Margin% |
|
|
1.1 |
% |
|
|
(32.7 |
%) |
|
|
(34.9 |
%) |
|
|
(34.9 |
%) |
|
|
|
Earnings (loss) per ordinary share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
0.01 |
|
|
|
(0.22 |
) |
|
|
(0.23 |
) |
|
|
(0.03 |
) |
|
|
|
|
Diluted |
|
|
0.01 |
|
|
|
(0.22 |
) |
|
|
(0.23 |
) |
|
|
(0.03 |
) |
|
|
|
Earnings (loss) per ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
0.15 |
|
|
|
(3.54 |
) |
|
|
(3.62 |
) |
|
|
(0.55 |
) |
|
|
|
|
Diluted |
|
|
0.15 |
|
|
|
(3.54 |
) |
|
|
(3.62 |
) |
|
|
(0.55 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit (loss) – defined as gross profit before
share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
|
96,820 |
|
|
|
(13,597 |
) |
|
|
(3,873 |
) |
|
|
(583 |
) |
|
|
|
Plus: Share-based compensation |
|
|
999 |
|
|
|
2,833 |
|
|
|
2,127 |
|
|
|
320 |
|
|
|
|
Non-GAAP gross profit (loss) |
|
|
97,819 |
|
|
|
(10,764 |
) |
|
|
(1,746 |
) |
|
|
(263 |
) |
|
|
|
|
Margin% |
|
|
27.7 |
% |
|
|
(4.0 |
%) |
|
|
(0.7 |
%) |
|
|
(0.7 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating expense – defined as operating expense
before share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales & marketing expenses |
|
|
25,526 |
|
|
|
23,725 |
|
|
|
24,402 |
|
|
|
3,672 |
|
|
|
|
Minus: Share-based compensation |
|
|
(824 |
) |
|
|
(1,543 |
) |
|
|
(1,334 |
) |
|
|
(201 |
) |
|
|
|
Non-GAAP sales & marketing expenses |
|
|
24,702 |
|
|
|
22,182 |
|
|
|
23,068 |
|
|
|
3,471 |
|
|
|
|
|
% of net
revenues |
|
|
7.0 |
% |
|
|
8.3 |
% |
|
|
8.8 |
% |
|
|
8.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General & administrative expenses |
|
|
54,511 |
|
|
|
87,515 |
|
|
|
65,036 |
|
|
|
9,786 |
|
|
|
|
Minus: Share-based compensation |
|
|
(8,933 |
) |
|
|
(43,936 |
) |
|
|
(18,601 |
) |
|
|
(2,799 |
) |
|
|
|
Non-GAAP general & administrative
expenses |
|
|
45,578 |
|
|
|
43,579 |
|
|
|
46,435 |
|
|
|
6,987 |
|
|
|
|
|
% of net
revenues |
|
|
12.9 |
% |
|
|
16.3 |
% |
|
|
17.8 |
% |
|
|
17.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & development expenses |
|
|
26,819 |
|
|
|
27,948 |
|
|
|
26,931 |
|
|
|
4,052 |
|
|
|
|
Minus: Share-based compensation |
|
|
(813 |
) |
|
|
(1,935 |
) |
|
|
(1,430 |
) |
|
|
(215 |
) |
|
|
|
Non-GAAP research & development expenses |
|
|
26,006 |
|
|
|
26,013 |
|
|
|
25,501 |
|
|
|
3,837 |
|
|
|
|
|
% of net
revenues |
|
|
7.4 |
% |
|
|
9.7 |
% |
|
|
9.8 |
% |
|
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating loss — defined as GAAP operating loss before
share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(10,036 |
) |
|
|
(147,204 |
) |
|
|
(119,232 |
) |
|
|
(17,941 |
) |
|
|
|
Plus: Share-based compensation |
|
|
11,569 |
|
|
|
50,247 |
|
|
|
23,492 |
|
|
|
3,535 |
|
|
|
|
Non-GAAP operating profit (loss) |
|
|
1,533 |
|
|
|
(96,957 |
) |
|
|
(95,740 |
) |
|
|
(14,406 |
) |
|
|
|
|
Margin% |
|
|
0.4 |
% |
|
|
(36.2 |
%) |
|
|
(36.6 |
%) |
|
|
(36.6 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For investor and media inquiries please contact:
Investor Relations Department
ChinaCache International Holdings
Tel: +86 (10) 6408 5307
Email: ir@chinacache.com
Mr. Ross Warner
The Piacente Group | Investor Relations
Tel: +86 (10) 6535 0149
Email: chinacache@tpg-ir.com
Ms. Brandi Piacente
The Piacente Group | Investor Relations
Tel: +1 212 481 2050
Email: chinacache@tpg-ir.com
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