ChinaCache International Holdings Ltd. ("ChinaCache" or the
"Company") (NASDAQ:CCIH), a leading total solutions provider of
Internet content and application delivery services in China, today
announced its unaudited condensed consolidated financial results
for the fourth quarter and full fiscal year ended December 31,
2016.
“We achieved success in stabilizing our core
business in the second half of the year, despite continued
challenges from HPCC platform issues in the first half of 2016.
During the third and fourth quarters of 2016, we improved the
performance of our CDN platforms, launched our Internet exchange
business, began offering total solution products, and reorganized
the Company for better efficiency,” said Mr. Song Wang, Chairman
and Chief Executive Officer of ChinaCache. “In particular, we
established several Internet exchange centers in Beijing, Shanghai
and Guangzhou, and are planning on more expansions in other major
cities in China. These are expected to become integral to our total
solution offering. In addition to our R&D efforts in selected
technologies, including big data analysis, cloud exchange platforms
and CDNs for the IoT industry, we also continued to improve our
HPCC platform and upgrade our network hardware. Our turnaround
initiatives are well underway, and we ended the year with full year
2016 net revenues of RMB1.05 billion, meeting our previous
guidance.”
“Our strategy is to capitalize on our strengths
by integrating our resources to provide a unique, three-layer
structured network total solution package that clearly
distinguishes ChinaCache as the provider of choice,” said Mr. Song
Wang. “Combined with our well diversified products and strong
customer relationships, this strategy will enable ChinaCache to
compete favorably in our designated markets. Our recent cooperation
with PacketZoom, the Silicon Valley-based leading mobile
acceleration technology provider, further attests to the markets’
recognition of our compelling value proposition built over fifteen
years of proven experience. We anticipate 2017 to be a year of
gradual recovery and development,” Mr. Wang continued.
“Finally, I’d like to take this opportunity to
announce the hiring of Ms. Cynthia Jinhong Meng as Chief Strategy
Officer and senior VP at ChinaCache. We believe Ms. Meng’s
experience and expertise strongly compliments our management team
and will add value to the company’s strategic initiatives,”
concluded Mr. Wang.
Ms. Meng has 18 years of TMT industry experience
in equity research and strategy consulting for Chinese and global
TMT companies. Prior to joining ChinaCache, she worked for
Jefferies and BofA Merrill Lynch as head of the TMT research team
and led the coverage of Chinese technology, Internet and telecom
companies. She received an MBA from the Kellogg Graduate
School of Management at Northwestern University and completed
executive education at Stanford GSB.
Fourth Quarter Financial
Summary:
- Net revenues were RMB263.3 million (US$37.9
million), compared with RMB311.4 million in the fourth quarter
2015.
- Gross profit was RMB5.7 million (US$0.8
million), compared with RMB44.1 million in the fourth quarter
2015.
- Adjusted EBITDA (non-GAAP) was a loss of
RMB78.6 million (US$11.3 million), compared with an adjusted EBITDA
(non-GAAP) of RMB3.9 million in the fourth quarter 2015.
- Net loss attributable to ordinary shareholders
was RMB155.2 million (US$22.4 million), compared with a net loss of
RMB36.8 million in the fourth quarter
2015.
Full Year Financial
Summary:
- Net revenues were RMB1.1 billion (US$151.8
million), compared with RMB1.4 billion in 2015.
- Gross loss was RMB5.3 million (US$0.8
million), compared with a gross profit of RMB312.2 million in
2015.
- Adjusted EBITDA (non-GAAP) was a loss of
RMB236.9 million (US$34.1 million), compared with an adjusted
EBITDA (non-GAAP) of RMB120.2 million in 2015.
- Net loss attributable to ordinary
shareholders was RMB496.9 million (US$71.6 million),
compared with a net loss of RMB88.7 million in 2015.
Fourth Quarter 2016 Financial
Results
Net revenues for the fourth
quarter of 2016 were RMB263.3 million (US$37.9 million), a 0.6%
increase from the previous quarter and a 15.5% decrease from the
corresponding period in 2015. The sequential revenue stabilization
in the fourth quarter of 2016 was largely due to improved
performance of the HPCC platform, partially offset by increased
competition.
Cost of revenues for the fourth
quarter increased by 1.0% quarter-over-quarter and decreased by
3.6% year-over-year to RMB257.7 million (US$37.1 million).
Gross margin was 2.2%, compared
with 2.5% in the previous quarter and 14.2% in the corresponding
period in 2015. Non-GAAP gross margin, which excludes share-based
compensation, was 2.4%, compared with 2.6% in the third quarter and
14.5% in the corresponding period in 2015.
Sales and marketing expenses for the fourth
quarter of 2016 were RMB22.5 million (US$3.2 million), or 8.5% of
net revenues, representing a 2.4% decrease over the previous
quarter and a 25.5% decrease from the corresponding period in
2015.
General and administrative expenses for the
fourth quarter of 2016 were RMB50.3 million (US$7.2 million), or
19.1% of net revenues, representing a 19.2% decrease from the
previous quarter and a 17.7% decrease from the corresponding period
in 2015. The Company will continue to work to reduce costs and
improve efficiency.
Research and development (R&D) expenses for
the fourth quarter of 2016 were RMB25.1 million (US$3.6 million),
or 9.5% of net revenues, representing a 4.4% increase from the
previous quarter and a 1.7% decrease from the corresponding period
in 2015.
Operating loss was RMB139.3
million (US$20.1 million) in the fourth quarter of 2016, compared
with an operating loss of RMB99.5 million in the previous quarter
and an operating loss of RMB64.1 million in the corresponding
period in 2015. Non-GAAP operating loss, which excludes share-based
compensation expenses, transaction tax on assets transfer and
impairment of long term investments, was RMB118.4 million (US$17.0
million), compared with a non-GAAP operating loss of RMB90.9
million in the third quarter of 2016 and a non-GAAP operating loss
of RMB40.5 million in the fourth quarter of 2015.
Income tax expense was RMB21.8
million (US$3.1 million) in the fourth quarter of 2016, compared
with an income tax benefit of RMB0.4 million in the third quarter
of 2016 and an income tax benefit of RMB22.9 million in the
corresponding period in 2015. The income tax expense for the fourth
quarter of 2016 mainly includes current income tax expense of
RMB1.1 million and deferred tax expense of RMB20.7 million.
Net loss was RMB155.2 million
(US$22.4 million) in the fourth quarter of 2016, compared with net
loss of RMB94.3 million in the third quarter of 2016, and a net
loss of RMB36.8 million in the corresponding period in 2015. Net
loss per basic and diluted American depositary share (“ADS”) for
the fourth quarter of 2016 was RMB5.92 (US$0.80) each. Each ADS
represents 16 ordinary shares of the Company.
Adjusted EBITDA (non-GAAP),
defined as EBITDA excluding share-based compensation expenses,
foreign exchange gain (loss), transaction tax on assets transfer
and impairment of long term investments, was a loss of RMB78.6
million (US$11.3 million), compared with a loss of RMB46.0 million
in the third quarter of 2016, and adjusted EBITDA (non-GAAP) of
RMB3.9 million in the corresponding period in 2015.
Adjusted net loss (non-GAAP),
defined as net loss before share-based compensation expenses,
foreign exchange gain (loss), transaction tax on assets transfer,
impairment of long term investments and penalties on uncertain tax
positions, was RMB141.6 million (US$20.4 million), compared with
adjusted net loss (non-GAAP) of RMB86.6 million in the third
quarter of 2016 and adjusted net loss (non-GAAP) of RMB15.8 million
in the corresponding period in 2015. Non-GAAP net loss per basic
and diluted ADS for the fourth quarter of 2016 was RMB5.44
(US$0.80) each.
Full Year 2016 Financial
Results
For the full year ended December 31, 2016, net
revenues were RMB1.1 billion (US$151.8 million), representing a
22.1% decrease from the previous year.
Gross loss in 2016 was RMB5.3 million (US$0.8
million), compared with a gross profit of RMB312.2 million in
2015.
Adjusted EBITDA (non-GAAP) in 2016 was a loss of
RMB236.9 million (US$34.1 million), compared with an adjusted
EBITDA of RMB120.2 million in 2015.
Net loss in 2016 was RMB496.9 million (US$71.6
million), compared with a net loss of RMB88.7 million in 2015.
Adjusted net loss (non-GAAP) was RMB407.2
million (US$58.6 million) in 2016, compared with an adjusted net
loss (non-GAAP) of RMB23.4 million in 2015.
Balance Sheet
As of December 31, 2016, the Company had cash
and cash equivalents of RMB134.9 million (US$19.4 million),
compared with RMB606.8 million as of December 31, 2015. Capital
expenditures for the fourth quarter and full year of 2016 were
RMB25.6 million (US$3.7 million) and RMB143.1 million (US$20.6
million), respectively.
2017 Revenue Guidance
ChinaCache currently expects to generate total
net revenues in the range of RMB1.18 billion to RMB1.24 billion for
the full year of 2017, representing year-over-year growth of
approximately 12% to 18%. On a year-over-year basis, the Company
expects to see revenue growth starting from the second half of
2017.
This forecast reflects ChinaCache's current
view, which is subject to change.
Conference Call Information
The Company has scheduled a conference call to
discuss these results at 8:00 PM Eastern time on March 27, 2017,
which corresponds to 8:00 AM Beijing time on March 28, 2017.
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: 88613056
A live and archived webcast of the conference
call will be available on the Investor Relations section of
ChinaCache's website at www.chinacache.com.
A replay of the conference call will also be
available approximately two hours after the conclusion of the live
call until April 3, 2017 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: 88613056
About ChinaCache International Holdings
Ltd.
ChinaCache International Holdings Ltd.
(Nasdaq:CCIH) is a 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 operating income (loss), the
Company excludes share-based compensation expense, transaction tax
on assets transfer and impairment of long term investments.
The Company defines adjusted net income (loss)
as net income (loss) before share-based compensation expense,
foreign exchange gain (loss), transaction tax on assets transfer,
impairment of long term investments and penalties on uncertain tax
positions.
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 penalties on uncertain tax positions and
depreciation and amortization. The Company defines adjusted EBITDA
as EBITDA before share-based compensation expense, foreign exchange
gain (loss), transaction tax on assets transfer and impairment of
long term investments 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 or
non-recurrent 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 6.9430 as of December 31, 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 revenue guidance 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.
FINANCIAL TABLES
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance
Sheets |
(amounts in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of Dec 31 |
|
As of Dec 31 |
|
As of Dec 31 |
|
|
|
|
2015 |
|
2016 |
|
2016 |
|
|
|
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
(Audited) |
|
(Unaudited) |
|
(Unaudited) |
ASSETS |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
606,796 |
|
134,924 |
|
19,433 |
|
Accounts receivable, net |
|
243,431 |
|
190,587 |
|
27,450 |
|
Prepaid
expenses and other current assets |
|
31,560 |
|
56,976 |
|
8,206 |
|
Short term
investments |
|
26,169 |
|
- |
|
- |
|
Deferred
tax assets |
|
17,923 |
|
- |
|
- |
|
Amount due
from a subsidiary held for sale |
|
435 |
|
53,169 |
|
7,658 |
|
Assets held
for sale |
|
1,060,543 |
|
1,270,483 |
|
182,988 |
|
|
Total current
assets |
|
1,986,857 |
|
1,706,139 |
|
245,735 |
|
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
Property
and equipment, net |
|
499,946 |
|
387,940 |
|
55,875 |
|
Intangible
assets, net |
|
10,898 |
|
11,728 |
|
1,689 |
|
Long term
investments |
|
50,157 |
|
34,159 |
|
4,920 |
|
Deferred
tax assets |
|
11,368 |
|
- |
|
- |
|
Long term
deposits and other non-current assets |
|
59,390 |
|
36,525 |
|
5,261 |
|
|
Total non-current
assets |
|
631,759 |
|
470,352 |
|
67,745 |
|
|
|
|
|
|
|
|
|
Total
Assets |
|
2,618,616 |
|
2,176,491 |
|
313,480 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
Short-term
loan |
|
- |
|
29,311 |
|
4,222 |
|
Accounts
payable |
|
205,593 |
|
301,569 |
|
43,435 |
|
Accrued
employee benefits |
|
44,690 |
|
46,233 |
|
6,659 |
|
Accrued
expenses and other payables |
|
76,409 |
|
34,419 |
|
4,957 |
|
Income tax
payable |
|
13,513 |
|
13,924 |
|
2,005 |
|
Liabilities
for uncertain tax positions |
|
11,337 |
|
10,020 |
|
1,443 |
|
Amounts due
to related parties |
|
18 |
|
18 |
|
3 |
|
Current
portion of long term loan |
|
7,180 |
|
3,840 |
|
553 |
|
Current
portion of capital lease obligations |
|
70,615 |
|
72,851 |
|
10,493 |
|
Deferred
government grant |
|
16,360 |
|
13,000 |
|
1,872 |
|
Amount due
to a subsidiary held for sale |
|
319,536 |
|
18,063 |
|
2,602 |
|
Liabilities
held for sale |
|
1,014,449 |
|
1,302,658 |
|
187,622 |
|
|
Total current
liabilities |
|
1,779,700 |
|
1,845,906 |
|
265,866 |
|
|
|
|
|
|
|
|
|
Non-current
liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term loan |
|
4,340 |
|
- |
|
- |
|
|
Non-current portion of
capital lease obligations |
|
104,450 |
|
43,951 |
|
6,330 |
|
|
Deferred government
grant |
|
8,439 |
|
11,208 |
|
1,614 |
|
|
Total non-current
liabilities |
|
117,229 |
|
55,159 |
|
7,944 |
|
|
|
|
|
|
|
|
|
Total
Liabilities |
|
1,896,929 |
|
1,901,065 |
|
273,810 |
|
|
|
|
|
|
|
|
|
Total
Shareholders' equity |
|
721,687 |
|
275,426 |
|
39,670 |
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY |
2,618,616 |
|
2,176,491 |
|
313,480 |
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 |
|
For the Twelve Months Ended |
|
|
|
|
|
|
|
|
Dec 31, 2015 |
|
Sep 30, 2016 |
|
Dec 31, 2016 |
|
Dec 31, 2016 |
|
Dec 31, 2015 |
|
Dec 31, 2016 |
|
Dec 31, 2016 |
|
|
|
|
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Audited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenues |
|
|
311,447 |
|
|
261,643 |
|
|
263,312 |
|
|
37,926 |
|
|
1,353,627 |
|
|
1,054,235 |
|
|
151,842 |
|
Cost of revenues |
|
|
(267,339 |
) |
|
(255,133 |
) |
|
(257,650 |
) |
|
(37,109 |
) |
|
(1,041,412 |
) |
|
(1,059,533 |
) |
|
(152,604 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
|
44,108 |
|
|
6,510 |
|
|
5,662 |
|
|
817 |
|
|
312,215 |
|
|
(5,298 |
) |
|
(762 |
) |
|
Other
operating income (loss) |
|
|
13,911 |
|
|
3,260 |
|
|
(28,895 |
) |
|
(4,162 |
) |
|
13,911 |
|
|
(19,044 |
) |
|
(2,743 |
) |
|
Sales &
marketing expenses |
|
|
(30,145 |
) |
|
(23,009 |
) |
|
(22,467 |
) |
|
(3,236 |
) |
|
(115,621 |
) |
|
(93,603 |
) |
|
(13,482 |
) |
|
General
& administrative expenses |
|
|
(61,062 |
) |
|
(62,202 |
) |
|
(50,264 |
) |
|
(7,240 |
) |
|
(198,626 |
) |
|
(265,017 |
) |
|
(38,170 |
) |
|
Research
& development expenses |
|
|
(25,530 |
) |
|
(24,037 |
) |
|
(25,102 |
) |
|
(3,615 |
) |
|
(103,110 |
) |
|
(104,018 |
) |
|
(14,982 |
) |
|
Transaction
tax on assets transfer |
|
|
(5,394 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(27,733 |
) |
|
- |
|
|
- |
|
|
Impairment
of long term investments |
|
|
- |
|
|
- |
|
|
(18,240 |
) |
|
(2,627 |
) |
|
- |
|
|
(18,240 |
) |
|
(2,627 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(64,112 |
) |
|
(99,478 |
) |
|
(139,306 |
) |
|
(20,063 |
) |
|
(118,964 |
) |
|
(505,220 |
) |
|
(72,766 |
) |
|
Interest
income |
|
|
1,940 |
|
|
1,627 |
|
|
261 |
|
|
38 |
|
|
4,618 |
|
|
4,669 |
|
|
672 |
|
|
Interest
expense |
|
|
(2,473 |
) |
|
(2,932 |
) |
|
(2,091 |
) |
|
(301 |
) |
|
(13,158 |
) |
|
(11,647 |
) |
|
(1,678 |
) |
|
Other
income (expense) |
|
|
141 |
|
|
5,171 |
|
|
(263 |
) |
|
(38 |
) |
|
2,991 |
|
|
5,336 |
|
|
769 |
|
|
Foreign
exchange gain, net |
|
|
4,845 |
|
|
915 |
|
|
8,015 |
|
|
1,154 |
|
|
13,164 |
|
|
14,209 |
|
|
2,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(59,659 |
) |
|
(94,697 |
) |
|
(133,384 |
) |
|
(19,210 |
) |
|
(111,349 |
) |
|
(492,653 |
) |
|
(70,956 |
) |
|
Income tax benefit (expense) |
|
|
22,861 |
|
|
384 |
|
|
(21,805 |
) |
|
(3,141 |
) |
|
22,614 |
|
|
(4,229 |
) |
|
(609 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
|
(36,798 |
) |
|
(94,313 |
) |
|
(155,189 |
) |
|
(22,351 |
) |
|
(88,735 |
) |
|
(496,882 |
) |
|
(71,565 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
attributable to the noncontrolling interest |
|
|
(44 |
) |
|
(152 |
) |
|
(463 |
) |
|
(67 |
) |
|
(44 |
) |
|
(776 |
) |
|
(112 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss attributable to the Company's shareholders |
|
(36,754 |
) |
|
(94,161 |
) |
|
(154,726 |
) |
|
(22,284 |
) |
|
(88,691 |
) |
|
(496,106 |
) |
|
(71,453 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation |
|
|
249 |
|
|
(196 |
) |
|
(426 |
) |
|
(61 |
) |
|
264 |
|
|
(666 |
) |
|
(96 |
) |
Unrealized
holding gain on available-for-sale investments |
|
1,106 |
|
|
36 |
|
|
- |
|
|
- |
|
|
1,853 |
|
|
36 |
|
|
5 |
|
Reclassification adjustments for gains included in net income |
|
- |
|
|
(3,741 |
) |
|
- |
|
|
- |
|
|
- |
|
|
(3,741 |
) |
|
(539 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other comprehensive income (loss), net of
tax |
|
1,355 |
|
|
(3,901 |
) |
|
(426 |
) |
|
(61 |
) |
|
2,117 |
|
|
(4,371 |
) |
|
(630 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss |
|
|
(35,443 |
) |
|
(98,214 |
) |
|
(155,615 |
) |
|
(22,412 |
) |
|
(86,618 |
) |
|
(501,253 |
) |
|
(72,195 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss attributable to the noncontrolling interest |
|
(44 |
) |
|
(152 |
) |
|
(463 |
) |
|
(67 |
) |
|
(44 |
) |
|
(776 |
) |
|
(112 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss attributable to the Company's
shareholders |
(35,399 |
) |
|
(98,062 |
) |
|
(155,152 |
) |
|
(22,345 |
) |
|
(86,574 |
) |
|
(500,477 |
) |
|
(72,083 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per ordinary share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
(0.09 |
) |
|
(0.23 |
) |
|
(0.37 |
) |
|
(0.05 |
) |
|
(0.22 |
) |
|
(1.22 |
) |
|
(0.18 |
) |
|
Diluted |
|
|
|
(0.09 |
) |
|
(0.23 |
) |
|
(0.37 |
) |
|
(0.05 |
) |
|
(0.22 |
) |
|
(1.22 |
) |
|
(0.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per ADS*: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
(1.45 |
) |
|
(3.68 |
) |
|
(5.92 |
) |
|
(0.80 |
) |
|
(3.49 |
) |
|
(19.52 |
) |
|
(2.88 |
) |
|
Diluted |
|
|
|
(1.45 |
) |
|
(3.68 |
) |
|
(5.92 |
) |
|
(0.80 |
) |
|
(3.49 |
) |
|
(19.52 |
) |
|
(2.88 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of ordinary shares used in earnings
per share computation: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
404,344,939 |
|
|
412,253,323 |
|
|
421,522,374 |
|
|
421,522,374 |
|
|
407,149,509 |
|
|
408,189,722 |
|
|
408,189,722 |
|
|
Diluted |
|
|
|
404,344,939 |
|
|
412,253,323 |
|
|
421,522,374 |
|
|
421,522,374 |
|
|
407,149,509 |
|
|
408,189,722 |
|
|
408,189,722 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
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 |
|
For the Twelve Months Ended |
|
|
|
|
|
Dec 31, 2015 |
|
Sep 30, 2016 |
|
Dec 31, 2016 |
|
Dec 31, 2016 |
|
Dec 31, 2015 |
|
Dec 31, 2016 |
|
Dec 31, 2016 |
|
|
|
|
|
RMB |
|
RMB |
|
RMB |
|
US$ |
|
RMB |
|
RMB |
|
US$ |
Adjusted EBITDA — defined as EBITDA before share-based
compensation expense, foreign exchange gain, transaction tax on
assets transfer and impairment of long term investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
(36,798 |
) |
|
(94,313 |
) |
|
(155,189 |
) |
|
(22,351 |
) |
|
(88,735 |
) |
|
(496,882 |
) |
|
(71,565 |
) |
Depreciation |
|
40,872 |
|
|
38,653 |
|
|
38,090 |
|
|
5,486 |
|
|
153,313 |
|
|
155,225 |
|
|
22,357 |
|
Amortization |
|
1,151 |
|
|
1,102 |
|
|
1,253 |
|
|
180 |
|
|
4,298 |
|
|
3,869 |
|
|
557 |
|
Interest expense |
|
2,473 |
|
|
2,932 |
|
|
2,091 |
|
|
301 |
|
|
13,158 |
|
|
11,647 |
|
|
1,678 |
|
Interest income |
|
(1,940 |
) |
|
(1,627 |
) |
|
(261 |
) |
|
(38 |
) |
|
(4,618 |
) |
|
(4,669 |
) |
|
(672 |
) |
Income tax (benefit) expense |
|
(22,861 |
) |
|
(384 |
) |
|
21,805 |
|
|
3,141 |
|
|
(22,614 |
) |
|
4,229 |
|
|
609 |
|
Share-based compensation |
|
18,259 |
|
|
8,601 |
|
|
2,685 |
|
|
387 |
|
|
48,606 |
|
|
85,025 |
|
|
12,246 |
|
Foreign exchange gain |
|
(4,845 |
) |
|
(915 |
) |
|
(8,015 |
) |
|
(1,154 |
) |
|
(13,164 |
) |
|
(14,209 |
) |
|
(2,047 |
) |
Penalties on uncertain tax positions |
|
2,206 |
|
|
- |
|
|
658 |
|
|
95 |
|
|
2,206 |
|
|
658 |
|
|
95 |
|
Transaction tax on assets transfer |
|
5,394 |
|
|
- |
|
|
- |
|
|
- |
|
|
27,733 |
|
|
- |
|
|
- |
|
Impairment of long term investments |
|
|
|
- |
|
|
18,240 |
|
|
2,627 |
|
|
- |
|
|
18,240 |
|
|
2,627 |
|
Adjusted EBITDA |
|
3,911 |
|
|
(45,951 |
) |
|
(78,643 |
) |
|
(11,326 |
) |
|
120,183 |
|
|
(236,867 |
) |
|
(34,115 |
) |
|
Margin% |
|
1.3 |
% |
|
(17.6 |
%) |
|
(29.9 |
%) |
|
(29.9 |
%) |
|
8.9 |
% |
|
(22.5 |
%) |
|
(22.5 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss— defined as net loss before share-based
compensation, foreign exchange gain (loss), penalties on uncertain
tax positions, transaction tax on assets transfer and impairment of
long term investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
|
(36,798 |
) |
|
(94,313 |
) |
|
(155,189 |
) |
|
(22,351 |
) |
|
(88,735 |
) |
|
(496,882 |
) |
|
(71,565 |
) |
Share-based
compensation |
|
18,259 |
|
|
8,601 |
|
|
2,685 |
|
|
387 |
|
|
48,606 |
|
|
85,025 |
|
|
12,246 |
|
Foreign exchange gain |
|
(4,845 |
) |
|
(915 |
) |
|
(8,015 |
) |
|
(1,154 |
) |
|
(13,164 |
) |
|
(14,209 |
) |
|
(2,047 |
) |
Penalties on uncertain tax positions |
|
2,206 |
|
|
- |
|
|
658 |
|
|
95 |
|
|
2,206 |
|
|
658 |
|
|
95 |
|
Transaction tax on assets transfer |
|
5,394 |
|
|
- |
|
|
- |
|
|
- |
|
|
27,733 |
|
|
- |
|
|
- |
|
Impairment of long term investments |
|
- |
|
|
- |
|
|
18,240 |
|
|
2,627 |
|
|
- |
|
|
18,240 |
|
|
2,627 |
|
Adjusted net loss |
|
(15,784 |
) |
|
(86,627 |
) |
|
(141,621 |
) |
|
(20,396 |
) |
|
(23,354 |
) |
|
(407,168 |
) |
|
(58,644 |
) |
|
Margin% |
|
(5.1 |
%) |
|
(33.1 |
%) |
|
(53.8 |
%) |
|
(53.8 |
%) |
|
(1.7 |
%) |
|
(38.6 |
%) |
|
(38.6 |
%) |
Loss per ordinary share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.05 |
) |
|
(0.21 |
) |
|
(0.34 |
) |
|
(0.05 |
) |
|
(0.13 |
) |
|
(1.00 |
) |
|
(0.14 |
) |
|
Diluted |
|
(0.05 |
) |
|
(0.21 |
) |
|
(0.34 |
) |
|
(0.05 |
) |
|
(0.13 |
) |
|
(1.00 |
) |
|
(0.14 |
) |
Loss per ADS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
(0.84 |
) |
|
(3.36 |
) |
|
(5.44 |
) |
|
(0.80 |
) |
|
(2.01 |
) |
|
(16.00 |
) |
|
(2.24 |
) |
|
Diluted |
|
(0.84 |
) |
|
(3.36 |
) |
|
(5.44 |
) |
|
(0.80 |
) |
|
(2.01 |
) |
|
(16.00 |
) |
|
(2.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit (loss) – defined as gross profit (loss)
before share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss) |
|
44,108 |
|
|
6,510 |
|
|
5,662 |
|
|
817 |
|
|
312,215 |
|
|
(5,298 |
) |
|
(762 |
) |
Plus: Share-based compensation |
|
945 |
|
|
378 |
|
|
623 |
|
|
90 |
|
|
3,670 |
|
|
5,961 |
|
|
859 |
|
Non-GAAP gross profit |
|
45,053 |
|
|
6,888 |
|
|
6,285 |
|
|
907 |
|
|
315,885 |
|
|
663 |
|
|
97 |
|
|
Margin% |
|
14.5 |
% |
|
2.6 |
% |
|
2.4 |
% |
|
2.4 |
% |
|
23.3 |
% |
|
0.1 |
% |
|
0.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating expense – defined as operating expense
before share-based compensation expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales & marketing expenses |
|
30,145 |
|
|
23,009 |
|
|
22,467 |
|
|
3,236 |
|
|
115,621 |
|
|
93,603 |
|
|
13,482 |
|
Minus: Share-based compensation |
|
(693 |
) |
|
131 |
|
|
(7 |
) |
|
(1 |
) |
|
(2,882 |
) |
|
(2,753 |
) |
|
(397 |
) |
Non-GAAP sales & marketing expenses |
|
29,452 |
|
|
23,140 |
|
|
22,460 |
|
|
3,235 |
|
|
112,739 |
|
|
90,850 |
|
|
13,085 |
|
|
% of net
revenues |
|
9.5 |
% |
|
8.8 |
% |
|
8.5 |
% |
|
8.5 |
% |
|
8.3 |
% |
|
8.6 |
% |
|
8.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General & administrative expenses |
|
61,062 |
|
|
62,202 |
|
|
50,264 |
|
|
7,240 |
|
|
198,626 |
|
|
265,017 |
|
|
38,170 |
|
Minus: Share-based compensation |
|
(15,876 |
) |
|
(8,092 |
) |
|
(1,854 |
) |
|
(267 |
) |
|
(38,796 |
) |
|
(72,483 |
) |
|
(10,440 |
) |
Non-GAAP general & administrative
expenses |
|
45,186 |
|
|
54,110 |
|
|
48,410 |
|
|
6,973 |
|
|
159,830 |
|
|
192,534 |
|
|
27,730 |
|
|
% of net
revenues |
|
14.5 |
% |
|
20.7 |
% |
|
18.4 |
% |
|
18.4 |
% |
|
11.8 |
% |
|
18.3 |
% |
|
18.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research & development expenses |
|
25,530 |
|
|
24,037 |
|
|
25,102 |
|
|
3,615 |
|
|
103,110 |
|
|
104,018 |
|
|
14,982 |
|
Minus: Share-based compensation |
|
(745 |
) |
|
(262 |
) |
|
(201 |
) |
|
(29 |
) |
|
(3,258 |
) |
|
(3,828 |
) |
|
(551 |
) |
Non-GAAP research & development expenses |
|
24,785 |
|
|
23,775 |
|
|
24,901 |
|
|
3,586 |
|
|
99,852 |
|
|
100,190 |
|
|
14,431 |
|
|
% of net
revenues |
|
8.0 |
% |
|
9.1 |
% |
|
9.5 |
% |
|
9.5 |
% |
|
7.4 |
% |
|
9.5 |
% |
|
9.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating loss — defined as GAAP operating loss before
share-based compensation expense, transaction tax on assets
transfer and impairment of long term investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
(64,112 |
) |
|
(99,478 |
) |
|
(139,306 |
) |
|
(20,063 |
) |
|
(118,964 |
) |
|
(505,220 |
) |
|
(72,766 |
) |
Share-based compensation |
|
18,259 |
|
|
8,601 |
|
|
2,685 |
|
|
387 |
|
|
48,606 |
|
|
85,025 |
|
|
12,246 |
|
Transaction tax on assets transfer |
|
5,394 |
|
|
- |
|
|
- |
|
|
- |
|
|
27,733 |
|
|
- |
|
|
- |
|
Impairment of long term investments |
|
- |
|
|
- |
|
|
18,240 |
|
|
2,627 |
|
|
- |
|
|
18,240 |
|
|
2,627 |
|
Non-GAAP operating loss |
|
(40,459 |
) |
|
(90,877 |
) |
|
(118,381 |
) |
|
(17,049 |
) |
|
(42,625 |
) |
|
(401,955 |
) |
|
(57,893 |
) |
|
Margin% |
|
(13.0 |
%) |
|
(34.7 |
%) |
|
(45.0 |
%) |
|
(45.0 |
%) |
|
(3.1 |
%) |
|
(38.1 |
%) |
|
(38.1 |
%) |
For investor and media inquiries please contact:
Investor Relations
ChinaCache International Holdings
Tel: +86 (10) 6408 5307
Email: ir@chinacache.com
Mr. Ross Warner
The Piacente Group | Investor Relations
Tel: +86 10 5730-6200
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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