March 27, 2017

ChinaCache International Holdings Ltd. Announces Fourth Quarter and Full Fiscal Year 2016 Financial Results

Full Year Net Revenues Reached RMB1.05 Billion, Meeting Guidance

BEIJING, March 27, 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 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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