UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 


 

For the month of April 2017

 


 

Commission File Number: 001-34873

 

ChinaCache International Holdings Ltd.

 

Section A, Building 3, Dian Tong Creative Square
No. 7 Jiuxianqiao North Road, Chaoyang District
Beijing, 100015
The People’s Republic of China

+86 10 6437 3399

(Address, including zip code, and telephone number, including area code, of Registrant’s
principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F        x              Form 40-F        o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

 

 

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

ChinaCache International Holdings Ltd.

 

 

 

 

 

 

 

By

:

/s/ Song Wang

 

Name:

:

Song Wang

 

Title:

:

Chairman and Chief Executive Officer

 

Date:   April 26, 2017

 

2



 

Exhibit Index

 

Exhibit 99.1 — Press Release

 

3


Exhibit 99.1

 

ChinaCache Reports Adjusted Fourth Quarter and Full Year 2016 Results from New Value-added Tax Treatment

 

BEIJING, April 24, 2017 (GLOBE NEWSWIRE) — 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 reported its adjusted unaudited financial results for the fourth quarter and full year 2016.

 

On April 17, 2017, a Beijing local taxation division notified the Company that it disallowed the value-added tax treatment by the Company on certain transactions that happened in 2016. As a result of this development, the Company recalculated the related value-added taxes and revised the amount of cost of revenues for the fourth quarter of 2016 and full year 2016 from RMB257.7 million and RMB1,059.5 million, respectively, as reported on March 27, 2017, to RMB275.9 million and RMB1,077.8 million, respectively. This revision resulted in an increase in the cost of revenue for the fourth quarter of 2016 and full year 2016 by approximately RMB18.3 million and RMB18.3 million (variance due to rounding), respectively. The revision did not affect the Company’s cash flows for 2016.

 

The following presents the Company’s unaudited financial results for the fourth quarter of 2016 and full year 2016 after giving effect to the aforementioned adjustment.

 



 

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

 

52,697

 

7,590

 

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

 

1,864,184

 

268,499

 

 

 

 

 

 

 

 

 

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

 

1,919,343

 

276,443

 

 

 

 

 

 

 

 

 

Total Shareholders’ equity

 

721,687

 

257,148

 

37,037

 

 

 

 

 

 

 

 

 

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

)

(275,927

)

(39,742

)

(1,041,412

)

(1,077,810

)

(155,237

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss)

 

44,108

 

6,510

 

(12,615

)

(1,816

)

312,215

 

(23,575

)

(3,395

)

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

)

(157,583

)

(22,696

)

(118,964

)

(523,497

)

(75,399

)

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

)

(151,661

)

(21,843

)

(111,349

)

(510,930

)

(73,589

)

Income tax benefit (expense)

 

22,861

 

384

 

(21,805

)

(3,141

)

22,614

 

(4,229

)

(609

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

(36,798

)

(94,313

)

(173,466

)

(24,984

)

(88,735

)

(515,159

)

(74,198

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

(173,003

)

(24,917

)

(88,691

)

(514,383

)

(74,086

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

(173,892

)

(25,045

)

(86,618

)

(519,530

)

(74,828

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

(173,429

)

(24,978

)

(86,574

)

(518,754

)

(74,716

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per ordinary share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

(0.09

)

(0.23

)

(0.41

)

(0.06

)

(0.22

)

(1.26

)

(0.18

)

Diluted

 

(0.09

)

(0.23

)

(0.41

)

(0.06

)

(0.22

)

(1.26

)

(0.18

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per ADS*:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

(1.45

)

(3.68

)

(6.56

)

(0.96

)

(3.49

)

(20.16

)

(2.88

)

Diluted

 

(1.45

)

(3.68

)

(6.56

)

(0.96

)

(3.49

)

(20.16

)

(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

)

(173,466

)

(24,984

)

(88,735

)

(515,159

)

(74,198

)

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

)

(96,920

)

(13,959

)

120,183

 

(255,144

)

(36,748

)

Margin%

 

1.3

%

(17.6

)%

(36.8

)%

(36.8

)%

8.9

%

(24.2

)%

(24.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

(173,466

)

(24,984

)

(88,735

)

(515,159

)

(74,198

)

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

)

(159,898

)

(23,029

)

(23,354

)

(425,445

)

(61,277

)

Margin%

 

(5.1

)%

(33.1

)%

(60.7

)%

(60.7

)%

(1.7

)%

(40.4

)%

(40.4

)%

Loss per ordinary share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

(0.04

)

(0.21

)

(0.38

)

(0.05

)

(0.13

)

(1.04

)

(0.15

)

Diluted

 

(0.04

)

(0.21

)

(0.38

)

(0.05

)

(0.13

)

(1.04

)

(0.15

)

Loss per ADS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

(0.64

)

(3.36

)

(6.08

)

(0.80

)

(2.01

)

(16.64

)

(2.40

)

Diluted

 

(0.64

)

(3.36

)

(6.08

)

(0.80

)

(2.01

)

(16.64

)

(2.40

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP gross profit (loss) — defined as gross profit (loss) before share-based compensation expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit (loss)

 

44,108

 

6,510

 

(12,615

)

(1,816

)

312,215

 

(23,575

)

(3,395

)

Plus: Share-based compensation

 

945

 

378

 

623

 

90

 

3,670

 

5,961

 

859

 

Non-GAAP gross profit (loss)

 

45,053

 

6,888

 

(11,992

)

(1,726

)

315,885

 

(17,614

)

(2,536

)

Margin%

 

14.5

%

2.6

%

(4.6

)%

(4.6

)%

23.3

%

(1.7

)%

(1.7

)%

 



 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

)

(550

)

Non-GAAP research & development expenses

 

24,785

 

23,775

 

24,901

 

3,586

 

99,852

 

100,190

 

14,432

 

% 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

)

(157,583

)

(22,696

)

(118,964

)

(523,497

)

(75,399

)

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

)

(136,658

)

(19,682

)

(42,625

)

(420,232

)

(60,526

)

Margin%

 

(13.0

)%

(34.7

)%

(51.9

)%

(51.9

)%

(3.1

)%

(39.9

)%

(39.9

)%

 



 

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.

 

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 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