cd-6k_20211231.htm

 

 

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 March 2022

Commission File Number: 001-39556

 

 

Chindata Group Holdings Limited

 

 

No. 47 Laiguangying East Road,

Chaoyang District, Beijing, 100012

The People’s Republic of China

(Address of principal executive office)

 

 

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              Form 40-F   

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):  

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):  

 

 

 

 


 

 

EXHIBITS

 

 

 

 

99.1

  

Press release — Chindata Group Holdings Limited Reports Fourth Quarter and Full Year 2021 Results

 

 


 

 

SIGNATURE

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.

 

 

 

 

 

 

Chindata Group Holdings Limited

 

 

By:

 

/s/ Huapeng Wu

 

 

Name:

 

Huapeng Wu

 

 

Title:

 

Director and Chief Executive Officer

 

Date: March 10, 2022

 


 

Exhibit Index

 

 

 

 

Exhibit

    No.    

  

Description

 

 

Exhibit 99.1

  

Press Release

 

 

cd-ex991_6.htm

 

Exhibit 99.1

 

Chindata Group Reports Fourth Quarter and Full Year 2021 Unaudited Financial Results

BEIJING, March 10, 2022 (GLOBE NEWSWIRE) -- Chindata Group Holdings Limited (“Chindata Group” or the “Company”) (Nasdaq: CD), a leading carrier-neutral hyperscale data center solution provider in Asia-Pacific emerging markets, today announced its unaudited financial results for the fourth quarter and full year 2021. To supplement the Company’s consolidated financial results presented in accordance with U.S. GAAP, Chindata Group uses adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income margin as non-GAAP financial measures, which are described further below.

Recent Financial and Operating Highlights

 

New senior management team announced and solid leadership in place. The Company announced new senior management team in late February and early March. New and experienced leadership are in place and in good shape to further lead the Company forward. Mr. Huapeng Wu, President of Chindata China business since 2019, was appointed as Chief Executive Officer (“CEO”) and director of the Company. Ms. Qian Xiao (Sandy), Chief Operating Officer and director of the Company since 2019, was appointed as President of Chindata Group. Mr. Xinyue Fan (Eric), VP of business operation of the Company since December 2021, was appointed as Chief Operating Officer (“COO”). Mr. Binghua Zhang, former technical director, senior director and general manager of system department and IDC engineering department in Baidu, joined the Company in 2022 and was appointed as Chief Technology Officer (“CTO”).

 

2021 full year financials exceeded our previous guidance range. Full year revenue and adjusted EBITDA both exceeded our guidance range. Revenue for full year 2021 was RMB2,852.3 million, representing a 55.8% YoY growth. Full year net income was RMB316.4 million with a net margin of 11.1%, compared with net loss of RMB283.3 million in year 2020. Adjusted EBITDA was RMB1,418.9 million, representing a 66.5% YoY growth. For the fourth quarter of 2021, revenue increased by 41.4% YoY to RMB781.7 million. Net income was RMB114.7 million. Adjusted EBITDA increased by 68.8% YoY to RMB404.2 million.

 

Capacity continued to grow at healthy pace, total capacity increased by 85MW to 673MW with inclusion of 4 new under construction projects. Four new projects, located in Greater Beijing region and Malaysia serving the new Chinese cloud service provider client and the overseas business of the anchor client respectively, were put under construction in the fourth quarter, bringing an additional 85MW to total capacity to reach 673MW.  

 

Delivery and ramp-up remained on track. An additional 70MW was put into service in the fourth quarter in Hebei campus of the Company to support the business of the anchor client, bringing the total in-service capacity to 440MW. Utilized capacity increased by 36MW to 304MW, representing a YoY 37.6% growth, contributed by projects in Greater Beijing region. Overall utilization ratio remained healthy at 69% by end of fourth quarter.

 

Net additional commitment of 96MW received to support new and existing clients’ growth. Total contracted and indication of interest (“IOI”) capacity increased by 96MW in the fourth quarter, contributed by the inclusion of four new under construction projects, as well as an additional 15MW IOI capacity from the anchor client for an existing under construction project.

Management Quote

Mr. Huapeng Wu, newly appointed CEO of Chindata Group, commented, “Firstly of all, I would like to extend my gratitude to the Board of Directors for their recognition and trust. We are confident in providing customers with superior services, providing employees with better opportunities, and creating more long period value for our shareholders. Going forward, Chindata will continue to focus on its core IDC business, in areas such as key computing nodes under the China’s new "East Data West Computing" initiatives, overseas business development, and renewable energy development. We will sharpen our focus on the needs of customers by continuously improving products and solutions, and strengthen our position as the leader of Asia’s hyperscale data centers”

Mr. Dongning WANG, Chief Financial Officer of Chindata Group, commented, “Once again, we are delivering outstanding performance, with both our full year revenue and adjusted EBITDA exceeding the upper limit of the guidance range by 0.8% and 1.5% respectively. Furthermore, net income turned positive for the year 2021 and recorded a margin of 11.1%, again demonstrating the efficiency that we are enjoying under our hyperscale model and the credible fundamentals of the Company. Our guidance range for revenue and adjusted EBITDA in 2022 imply 44.5% and 46.5% YoY growth at mid-point, which is another example of our solid confidence in the business going forward. We are also in constant progress of pursuing diversified financing channels to support the healthy development of the Company and we look forward to sharing more information in the future.”

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Business Highlights

 

Asset Overview

 

Total Capacity. Total Capacity continued to grow at steady pace. Total capacity increased by 85MW to 673MW by end of the fourth quarter of 2021, a 37.6% YoY growth. (vs.588MW in FY21Q3, 489MW in FY20Q4).

 

o

In-service capacity. In-service capacity increased by 70MW to 440MW, a 51.2% YoY growth (vs. 370MW in FY21Q3, 291MW in FY20Q4), mainly contributed by CN11-C, a Greater Beijing region project put into service during the quarter supporting the business of the anchor client.

 

o

Under Construction capacity. Under construction capacity was 233MW by end of the fourth quarter of 2021 (vs.218MW in FY21Q3, 198MW in FY20Q4). Four new under construction projects (MY06-1&2, CN16, CN17) were added to the Company’s asset portfolio in the fourth quarter with a total capacity of 87MW. These projects, located in Malaysia and Greater Beijing region respectively, will be supporting the overseas business of the anchor client and the recently won Chinese cloud service provider client and are scheduled to be delivered starting from the fourth quarter of 2022.

 

Contracted and IOI capacity. The Company received commitment from both new and existing clients in the fourth quarter to support their growth.

 

o

Total contracted and IOI capacity increased by 96MW during the fourth quarter to reach 589MW, a 37.3% YoY growth (vs. 493MW in FY21Q3, 429MW in FY20Q4). The growth was contributed by the inclusion the new under construction projects with full IOI commitment (MY06-1&2: 60MW, CN16:14MW, CN17:14MW), as well as an additional 15MW IOI commitment from the anchor client for one of its existing under construction project (CN15) in Greater Beijing region. As a recent development, a total of 52MW IOI commitment for CN15 was fully contracted, which demonstrates our long standing and solid relations with our anchor client.

 

o

Commitment ratio remained healthy for the Company’s asset portfolio. Contracted & IOI ratio for in-service capacity was 87% by end of fourth quarter 2021 (vs. 88% by end of FY21Q3, 92% by end of FY20Q4). Contracted & IOI ratio for under construction capacity was 88% by end of fourth quarter (vs. 76% by end of FY21Q3, 82% by end of FY20Q4).

 

Utilized capacity. Ramp up remained on track during the quarter. Total utilized capacity increased by 36MW to 304MW, a 37.6% YoY growth (vs. 268MW by end of FY21Q3, 221MW by end of FY20Q4).

 

o

Additional utilized capacity of 36MW was contributed by projects in Greater Beijing region. (CN08, N09, CN11-A, B, C)

 

o

Utilized ratio was 69% by end of fourth quarter 2021 (vs. 72% by end of FY21Q3, 76% by end of FY20Q4). QoQ change was mainly due to the inclusion of new project in early ramp up stage.

New Senior Management Team in Place

On February 25, 2022, the board of directors of the Company appointed Mr. Huapeng Wu to serve as director and the CEO of the Company. Huapeng has served as President of Chindata China since 2019. The Board has gone through a thorough search process and thought highly of Huapeng’s performance in the past three years. As quoted in the appointment announcement, “He (Huapeng) brought in a series of strategic customers and projects, and successfully established solid relationships with local government and our partners in the data center ecosystem. He is the best fit as the Group’s new CEO, as no one else has better strategic thinking, industry resources or understanding of the company and team than him. We are highly confident that under his leadership, Chindata Group’s business will be more diversified, its culture will be more open, its foundation will be more solid, so that Chindata Group can cement its position as the leading data center platform in Asia-Pacific emerging markets.” Before joining Chindata Group, Mr. Wu was the founder of iTechClub and founder and headmaster of the 1024 Academy, which are the preeminent platforms that helped bring together top technology executives for training and idea exchanges. From 2007 to 2013, Mr. Wu also served as Vice President of Phoenix New Media and CTO of Ifeng.com.

On March 4, 2022, the Company announced the appointment of its new President, COO and CTO. Ms. Qian Xiao (Sandy), who has served as the COO of the Company since August 2019 and as director since July 2019, was appointed as President of Chindata Group. Mr. Xinyue Fan (Eric), who has served as our VP of Business Operation, was appointed as COO of the Company. Mr. Binghua Zhang, who served as technical director, senior director, general manager of system department

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and IDC engineering department in Baidu from 2010 to 2022, joined the Company recently and was appointed as CTO of the Company.

With the recent appointment, a senior management team composed of CEO, President, COO, CTO and CFO is now in place and in good shape, putting the Company in a better position to keep up with its healthy and steady development.

On View over Data Center Industry & Market

The Company believes there is a huge opportunity for hyperscale data centers in the APAC emerging markets. Much of this demand is expected to come from international digital technology giants, cloud computing, and Chinese digital technology companies that are succeeding with their business expansion in the region. With an increasingly stable and market-oriented regulatory environment in the region, the Company’s existing and expanding capacity in this region has positioned it with a first-mover advantage to seize these market opportunities.

On domestic market and from a medium- to long-term perspective, the Company expects that the recently announced “East Data West Computing” will shape industry and market landscape in a manner that is favorable for its business. This policy, a highly viable strategic developed under the grand strategic theme of carbon neutrality and digital economy development of China, aims to address the increasing disparity between insufficient energy supply and computing power demand in densely populated areas of eastern first-tier cities, as well as low energy efficiency and insufficient renewable energy usage. The policy is expected to redirect most of the future computing power demand to areas in the western part of the country where renewable energy supply is abundant. The Company holds the view that goals of this policy are highly consistent with its long-standing views on the nature of the data center business, which at the core is "to efficiently convert green electric power into computing power." As the demand for data centers in the future shifts toward the computing hubs as designated under the "East Data West Computing" policy, the Company sees significant advantages offered by its existing deployment, namely its Zhangjiakou campus, which is right in the Beijing-Tianjin-Hebei computing hub as designed by the policy, and Datong campus, which is enjoying extreme geographic proximity to the Beijing-Tianjin-Hebei computing hub, and its layout under planning in Qingyang city, Gansu Province, another cluster as designated in the policy.

Further on domestic market, although macro economy and supply chain issues are laying impact on market demand, Chindata has its unique highlights. Its anchor customer continues to grow its businesses through new business initiatives such as public cloud and through international market expansion, while the Company’s unique capabilities in supply, resources, technical know-how and efficiency are increasingly being recognized by more customers in various industries, which is likely driving increased demands from a broader range of customers.

On Key Competitive Advantages in Chindata

The Company continues to see several major advantages in its hyperscale business model, characterized by full-stack solution, early energy-abundant region layout, high quality client profile, credible asset and long term contract. Under this model, Chindata is offering customized full-stack solution capabilities covering product design, technical solutions, development & construction, supply chain management, and operation and maintenance management, making itself an efficient developer and operator of the IDC business. Secondly, its early site selection principle of “proximity to energy supply”, under the guidance of “to efficiently convert electric power to computing power”, has led to the majority of its data centers in China located in self-built campus right in or around the Beijing-Tianjin-Hebei computing hub as designated under the “East Data West Computing” policy. Thirdly, the Company enjoys close customer relationships with digital leaders in the international or domestic markets. The healthy development of these clients, is in-turn, bringing the Company long-term, steady and sizable demand. Finally, the Company maintains a high asset ownership under such model. More than 92% of its data center assets are self-owned, with solid asset valuations. Further to such credible asset portfolios, the Company’s contract with its clients are long term based, as most of the company's contracts are ten-year contracts, providing a high degree of business certainty.

Regarding its development in APAC emerging markets, the Company also sees in itself advantages including local business capabilities, current site selection and a domestic business model replicable for overseas business. On localization, the Company has a local team in the APAC regions that is capable of customer management, project development, campus operation and government relations, etc., ensuring business development with best local practice. Secondly, as the Company is pursuing development in the APAC emerging market, it has selected sites for data center in neighboring countries of Singapore, where land and energy are abundant, cost is relatively low and latency not being an obstacle, so as to accommodate the demand in the region with Singapore at the core. Lastly, hyperscale business model in domestic market is replicable for overseas business, thanks to the in-house design and modular capability. Meanwhile, the close customer relationships established in domestic market has enabled Chindata to further support the overseas business of its client.

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Importantly, the Company has been operating its business in a green and energy-efficient manner and will continue to do so. Chindata owns strong energy integration capabilities and can offer comprehensive energy solutions that cover power generation, transmission and distribution. It is also in possession of and is further developing its R&D capabilities in green power development, energy storage and energy efficiency, and it has been maintaining average PUE of 1.2 constantly. On top of these and with the energy-abundant region layout as the cornerstone, Chindata is in good position to further execute its “local generation local consumption” plan through partnership and to establish long term green energy procurement arrangement with relevant parties.

Growth Plan

With such market assessment, Chindata will continue to leverage on its competitive advantages to execute the growth plan through:

Deepening presence in APAC emerging market

On top of our existing 20MW in-service capacity in the region in Malaysia (MY0102), Chindata has another 96MW capacity under construction in Malaysia and India by end of 2021. At the same time, Chindata is also negotiating and evaluating a number of other potential projects.

Further Advancing domestic layout under “East Data West Computing” policy

The Company’s rationale behind its domestic layout since established is quite in line with the idea of the latest policy, and has therefore established sizable capacity in or around those key computing hubs. The Company’s first presence in Zhangjiakou city can be traced back to 2017. Over the last five years, Chindata has established its computing infrastructure in Zhangjiakou to accommodate the demand in the Beijing-Tianjin-Hebei region. Zhangjiakou city is now the designated cluster in the Beijing-Tianjin-Hebei computing hub, where Chindata owns a total capacity of 268MW. Chindata has also made an early presence in Datong city, Shanxi Province, and owns a total capacity of 210MW there. These capacity and other reserve the Company own in these regions can be conveniently converted into more hyperscale data centers going forward to meet the growing demand from various customers, in particular the anchor customer.

Chindata also initiated its site selection process for potential computing infrastructure development in western China in as early as 2020. Since then, we have established healthy working relationship with local government of Qingyang City, Gansu Province, which is now the designated cluster in the Gansu computing hub under the policy. Chindata is currently planning to acquire 300 acres of land for the development of hyperscale computing infrastructure cluster in the region in the next 3 to 5 years.

Expanding Geographical Resources and Client Base through Active Acquisition and JV Partnership

With entrance requirements becoming more stringent, Chindata expects those old, inefficient medium-small sized data centers will become increasingly less competitive, which will help market prices in the IDC sector return to reasonable levels. Once this happens, more acquisition opportunities shall be available and Chindata can leverage its capital reserve, technical know-how, and superior leading client profile to actively pursue and negotiate potential opportunities that can provide synergy to its geological layout, client base, and business model, so as to generate additional value for our long term development.

Obtaining Renewable Energy through Diversified Approaches

In the energy abundant region, Chindata plans to stick with the “local generation, local consumption” approach. With its datacenters in these energy abundant region as the leverage, the Company will introduce strategic partner into the region to conduct local power generation, while the Company will assume the role of local power consumption. Along with this, the Company will further strengthen its in-house R&D capabilities and improve energy efficiency and energy storage. Meanwhile, Chindata will cooperate with green energy enterprises and the Grid for long term green energy procurement arrangement.

Commitment to Operating Efficiency and Robust Performance

Under the growth plan, Chindata’s dedicated commitment to all of its customers and stakeholders remain unchanged, which are to be the leading industry player in operational efficiency, project delivery, cost management, energy efficiency and emission reductions, and to deliver outstanding asset return. Financially, the Company has been delivering financial results that are beyond market expectations for six consecutive quarters since its IPO in 2020. The Company expects such momentum in business and financials to continue in 2022, and is highly confident in its business and financial prospects going forward.

 

Fourth Quarter and Full Year 2021 Financial Results Summary

 

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TOTAL REVENUES

Total revenues in the fourth quarter of 2021 increased by 41.4% to RMB781.7 million (US$122.7 million) from RMB553.0 million in the same period of 2020, primarily driven by the robust growth of the Company’s colocation services.

For full year 2021, total revenues increased by 55.8% to RMB2,852.3 million (US$447.6 million) from RMB1,831.1 million in the same period of 2020.

 

COST OF REVENUE

In line with the Company’s revenue growth, total cost of revenue in the fourth quarter of 2021 increased by 33.1% to RMB435.2 million (US$68.3 million) from RMB326.9 million in the same period of 2020, mainly driven by increases in utility costs, and depreciation and amortization expenses.

For fiscal year 2021, total cost of revenue increased by 50.5% to RMB1,652.7 million (US$259.3 million) from RMB1,098.3 million in the same period of 2020.

 

GROSS PROFIT

Gross profit in the fourth quarter of 2021 increased by 53.2% to RMB346.5 million (US$54.4 million) from RMB226.1 million in the same period of 2020. Gross margin in the fourth quarter of 2021 was 44.3%, compared with 40.9% in the same period of 2020.

For fiscal year 2021, gross profit increased by 63.7% to RMB1,199.6 million (US$188.2 million) from RMB732.8 million in the same period of 2020. Gross margin in fiscal year 2021 was 42.1%, compared to 40.0% in the same period of 2020.

 

OPERATING EXPENSES

Total operating expenses in the fourth quarter of 2021 decreased by 22.6% to RMB125.0 million (US$19.6 million) from RMB161.4 million in the same period of 2020.

For fiscal year 2021, total operating expenses decreased by 25.6% to RMB524.5 million (US$82.3 million) from RMB704.6 million in the same period of 2020.

Selling and marketing expenses in the fourth quarter of 2021 decreased by 32.3% to RMB18.7 million (US$2.9 million) from RMB27.6 million in the same period of 2020, primarily due to lower share-based compensation expense. For fiscal year 2021, selling and marketing expenses decreased by 9.5% to RMB89.7 million (US$14.1 million) from RMB99.1 million in the same period of 2020, primarily due to lower share-based compensation expense.

General and administrative expenses in the fourth quarter of 2021 decreased by 24.4% to RMB91.5 million (US$14.4 million) from RMB121.0 million in the same period of 2020, primarily due to lower share-based compensation expense. For fiscal year 2021, general and administrative expenses decreased by 36.3% to RMB359.5 million (US$56.4 million) from RMB564.3 million in the same period of 2020, primarily due to lower share-based compensation expense.

Research and development expenses in the fourth quarter of 2021 increased by 15.4% to RMB14.8 million (US$2.3 million) from RMB12.9 million in the same period of 2020, primarily due to higher personnel costs as the Company continued to invest in its research and development initiatives to further enhance its service offerings. For fiscal year 2021, research and development expenses increased by 83.0% to RMB75.3 million (US$11.8 million) from RMB41.2 million in the same period of 2020, primarily due to higher personnel costs as the Company continued to invest in its research and development initiatives to further enhance its service offerings.

 

OPERATING INCOME

As a result of the foregoing, operating income in the fourth quarter of 2021 increased by 242.3% to RMB221.5 million (US$34.8 million) from RMB64.7 million in the same period of 2020. Operating income margin in the fourth quarter of 2021 was 28.3%, compared with 11.7% in the same period of 2020.

For fiscal year 2021, operating income increased by 2291.8% to RMB675.1 million (US$105.9 million) from RMB28.2 million in the same period of 2020. Operating income margin in fiscal year 2021 was 23.7%, compared to 1.5% in the same period of 2020.

 

NET INCOME

Net income in the fourth quarter of 2021 was RMB114.7 million (US$18.0 million), compared to net loss of RMB27.1 million in the same period of 2020. Net income margin in the fourth quarter of 2021 was 14.7%, compared with -4.9% in the same period of 2020.

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For fiscal year 2021, net income was RMB316.4 million (US$49.7 million), compared with net loss of RMB283.3 million in the same period of 2020. Net income margin in fiscal year 2021 was 11.1%, compared to -15.5% in the same period of 2020.

 

EARNINGS PER ADS

Basic and diluted earnings per American Depositary Share ("ADS") in the fourth quarter of 2021 were RMB0.32 (US$0.06). Basic and diluted earnings per share were RMB0.16 (US$0.03). Each ADS represents two of the Company's Class A ordinary share.

For fiscal year 2021, basic and diluted earnings per American Depositary Share ("ADS") were RMB0.88 (US$0.14) and RMB0.86 (US$0.14) respectively. Basic and diluted earnings per share were RMB0.44 (US$0.07) and RMB0.43 (US$0.07) respectively.

 

ADJUSTED EBITDA

Adjusted EBITDA in the fourth quarter of 2021 increased by 68.8% to RMB404.2 million (US$63.4 million), from RMB239.4 million in the same period of 2020. Adjusted EBITDA is defined as net (loss) income excluding depreciation and amortization, net interest expenses, income tax expenses, share-based compensation, management consulting services fee, change in fair value of financial instruments, foreign exchange gain (loss) and non-cash operating lease cost relating to prepaid land use rights.

Adjusted EBITDA margin in the fourth quarter of 2021 was 51.7%, compared with 43.3% in the same period of 2020 and 49.7% in the third quarter of 2021.

For fiscal year 2021, Adjusted EBITDA increased by 66.5% to RMB1,418.9 million (US$222.7 million), from RMB852.2 million in the same period of 2020. Adjusted EBITDA margin in fiscal year 2021 was 49.7%, compared with 46.5% in the same period of 2020.

 

ADJUSTED NET INCOME

Adjusted net income in the fourth quarter of 2021 increased by 146.5% to RMB142.9 million (US$22.4 million), compared with RMB58.0 million in the same period 2020. Adjusted net income is defined as net (loss) income excluding share-based compensation, management consulting services fee, and depreciation and amortization of property and equipment and intangible assets resulting from business combination, as adjusted for the tax effects on Non-GAAP adjustments.

Adjusted net income margin in the fourth quarter of 2021 was 18.3%, compared with 10.5% in the same period of 2020 and 15.1% in the third quarter of 2021.

For fiscal year 2021, Adjusted net income increased by 172.9% to RMB477.2 million (US$74.9 million), from RMB174.9 million in the same period of 2020. Adjusted net income margin in fiscal year 2021 was 16.7%, compared with 9.5% in the same period of 2020.

 

BALANCE SHEET

As of December 31, 2021, the Company had cash and cash equivalents and restricted cash of RMB5.2 billion (US$822.4 million), compared to cash and cash equivalents and restricted cash of RMB6.9 billion as of December 31, 2020.

 

2022 Full Year Business Outlook

Taking numerous factors into consideration, the Company sets its guidance for full year 2022 as follows.

 

TOTAL REVENUES

 

RMB4,070 million – RMB4,170 million, a 42.7-46.2% increase over full year 2021

ADJUSTED EBITDA

 

RMB2,040 million – RMB2,120 million, a 43.7-49.3% increase over full year 2021

 

These forecasts reflect the Company’s current and preliminary views on the market and operational conditions, which are subject to change.

 

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Conference Call Information

 

The Company will hold a conference call on Thursday, March 10, 2022, at 7:00 A.M. Eastern Time (or 8:00 P.M. Beijing Time on the same day) to discuss the financial results.

 

In advance of the conference call, all participants must use the following link to complete the online registration process to receive a unique registrant ID and a set of participant dial-in numbers to join the conference call.

 

Conference ID:

1710978

Registration Link:

http://apac.directeventreg.com/registration/event/1710978

 

The replay will be accessible through March 18, 2021, by dialing the following numbers:

 

United States Toll Free:

+1-855-452-5696

International:

+61-2-8199-0299

Mainland China:

4006-322162

Hong Kong:

800-963117

Conference ID:

1710978

 

A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://investor.chindatagroup.com/

 

Investor Presentation and Supplemental Financial Information

The Company has made available on its website a presentation designed to accompany the discussion of Chindata Group's results and future outlook, along with certain supplemental financial information and other data. Interested parties may access this information through the Chindata Group Investor Relations website at https://investor.chindatagroup.com/.

 

 

About Chindata Group

Chindata Group is a leading carrier-neutral hyperscale data center solution provider in Asia-Pacific emerging markets and a first mover in building next-generation hyperscale data centers in China, India and Southeast Asia markets, focusing on the whole life cycle of facility planning, investment, design, construction and operation of ecosystem infrastructure in the IT industry. Chindata Group provides its clients with business solutions in major countries and regions in Asia-Pacific emerging markets, including asset-heavy ecosystem chain services such as industrial bases, data centers, network and IT value-added services.

 

Chindata Group operates two sub-brands: "Chindata" and "Bridge Data Centres". Chindata operates hyper-density IT cluster infrastructure in the Greater Beijing Area, the Yangtze River Delta Area and the Greater Bay Area, the three key economic areas in China, and has become the engine of the regional digital economies. Bridge Data Centres, with its top international development and operation talents in the industry, owns fast deployable data center clusters in Malaysia and India, and seeks business opportunities in other Asia-Pacific emerging markets.

 

Use of Non-GAAP Financial Measures

 

To supplement Chindata Group’s consolidated financial results presented in accordance with U.S. GAAP, Chindata Group uses adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income margin as non-GAAP financial measure. The presentation of the non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.

 

The Company believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating its operating results as they do not include all items that impact its net loss or income for the period, and are presented to enhance investors’ overall understanding of the Company’s financial performance. A limitation of using the non-GAAP financial measure is that the non-GAAP measure exclude certain items that have been and will continue to be for the foreseeable future a significant component in the Company’s results of operations. The non-GAAP financial measure presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data.

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Exchange Rate Information

Unless otherwise stated, all translations from Renminbi into U.S. dollars were made at RMB6.3726 to US$1.00, the noon buying rate on December 31, 2021 as set forth in the H.10 statistical release of the Federal Reserve Board. The percentages stated in this press release are calculated based on the RMB amounts.

 

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,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as Chindata Group’s strategic and operational plans, contain forward-looking statements. Chindata Group may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Chindata Group’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Chindata Group’s goals and strategies; its future business development, financial condition and results of operations; the expected growth and competition of the data center and IT market; its ability to generate sufficient capital or obtain additional capital to meet its future capital needs; its ability to maintain competitive advantages; its ability to keep and strengthen its relationships with major clients and attract new clients; its ability to locate and secure suitable sites for additional data centers on commercially acceptable terms; government policies and regulations relating to Chindata Group’s business or industry; general economic and business conditions in the regions where Chindata Group operates and globally and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Chindata Group’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Chindata Group undertakes no obligation to update any forward-looking statement, except as required under applicable law.

 

For Enquiries, Please Contact:

 

Chindata IR Team

ir@chindatagroup.com

 

 

 

8


 

 

CHINDATA GROUP HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

 

As of December 31, 2020

 

 

As of December 31, 2021

 

 

 

RMB

 

 

RMB

 

 

US$

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

6,705,612

 

 

 

4,390,293

 

 

 

688,933

 

Restricted cash

 

 

102,598

 

 

 

460,174

 

 

 

72,211

 

Accounts receivable, net

 

 

422,224

 

 

 

661,027

 

 

 

103,730

 

Value added taxes recoverable

 

 

182,982

 

 

 

327,553

 

 

 

51,400

 

Prepayments and other current assets

 

 

176,560

 

 

 

508,276

 

 

 

79,760

 

Total current assets

 

 

7,589,976

 

 

 

6,347,323

 

 

 

996,034

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

6,423,830

 

 

 

9,427,591

 

 

 

1,479,395

 

Operating lease right-of-use assets

 

 

635,683

 

 

 

803,544

 

 

 

126,094

 

Finance lease right-of-use assets

 

 

144,615

 

 

 

136,825

 

 

 

21,471

 

Goodwill and intangible assets, net

 

 

793,182

 

 

 

778,683

 

 

 

122,192

 

Restricted cash

 

 

103,253

 

 

 

390,535

 

 

 

61,283

 

Value added taxes recoverable

 

 

357,125

 

 

 

424,011

 

 

 

66,537

 

Other non-current assets

 

 

211,934

 

 

 

400,613

 

 

 

62,865

 

Total non-current assets

 

 

8,669,622

 

 

 

12,361,802

 

 

 

1,939,837

 

Total assets

 

 

16,259,598

 

 

 

18,709,125

 

 

 

2,935,871

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Short-term bank loans and current portion of long-term bank loans

 

 

296,913

 

 

 

1,950,525

 

 

 

306,080

 

Accounts payable

 

 

1,186,030

 

 

 

1,701,299

 

 

 

266,971

 

Current portion of operating lease liabilities

 

 

40,131

 

 

 

45,501

 

 

 

7,140

 

Current portion of finance lease liabilities

 

 

4,906

 

 

 

4,765

 

 

 

748

 

Accrued expenses and other current liabilities

 

 

304,960

 

 

 

599,257

 

 

 

94,037

 

Total current liabilities

 

 

1,832,940

 

 

 

4,301,347

 

 

 

674,976

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Long-term bank loans

 

 

3,892,120

 

 

 

3,526,460

 

 

 

553,379

 

Operating lease liabilities

 

 

204,305

 

 

 

198,806

 

 

 

31,197

 

Finance lease liabilities

 

 

59,986

 

 

 

57,002

 

 

 

8,945

 

Other non-current liabilities

 

 

530,779

 

 

 

510,878

 

 

 

80,168

 

Total non-current liabilities

 

 

4,687,190

 

 

 

4,293,146

 

 

 

673,689

 

Total liabilities

 

 

6,520,130

 

 

 

8,594,493

 

 

 

1,348,665

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares

 

 

46

 

 

 

46

 

 

 

7

 

Additional paid-in capital

 

 

10,510,516

 

 

 

10,646,328

 

 

 

1,670,641

 

Statutory reserves

 

 

82,792

 

 

 

189,700

 

 

 

29,768

 

Accumulated other comprehensive income

 

 

(172,586

)

 

 

(257,977

)

 

 

(40,482

)

Accumulated deficit

 

 

(681,300

)

 

 

(463,465

)

 

 

(72,728

)

Total shareholders’ equity

 

 

9,739,468

 

 

 

10,114,632

 

 

 

1,587,206

 

Total liabilities and shareholders’ equity

 

 

16,259,598

 

 

 

18,709,125

 

 

 

2,935,871

 

 

 

 

 


 

 

CHINDATA GROUP HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

 

For the three months ended

 

 

For the years ended

 

 

 

December 31, 2020

 

 

September 30, 2021

 

 

December 31, 2021

 

 

December 31, 2020

 

 

December 31, 2021

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

RMB

 

 

RMB

 

 

US$

 

Revenue

 

 

552,989

 

 

 

740,768

 

 

 

781,729

 

 

 

122,670

 

 

 

1,831,077

 

 

 

2,852,277

 

 

 

447,584

 

Cost of revenue

 

 

(326,874

)

 

 

(422,885

)

 

 

(435,233

)

 

 

(68,298

)

 

 

(1,098,296

)

 

 

(1,652,664

)

 

 

(259,339

)

Gross profit

 

 

226,115

 

 

 

317,883

 

 

 

346,496

 

 

 

54,372

 

 

 

732,781

 

 

 

1,199,613

 

 

 

188,245

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

 

(27,601

)

 

 

(26,762

)

 

 

(18,694

)

 

 

(2,933

)

 

 

(99,092

)

 

 

(89,654

)

 

 

(14,069

)

General and administrative expenses

 

 

(120,954

)

 

 

(85,259

)

 

 

(91,478

)

 

 

(14,355

)

 

 

(564,286

)

 

 

(359,470

)

 

 

(56,409

)

Research and development expenses

 

 

(12,864

)

 

 

(21,454

)

 

 

(14,842

)

 

 

(2,329

)

 

 

(41,175

)

 

 

(75,344

)

 

 

(11,823

)

Total operating expenses

 

 

(161,419

)

 

 

(133,475

)

 

 

(125,014

)

 

 

(19,617

)

 

 

(704,553

)

 

 

(524,468

)

 

 

(82,301

)

Operating income

 

 

64,696

 

 

 

184,408

 

 

 

221,482

 

 

 

34,755

 

 

 

28,228

 

 

 

675,145

 

 

 

105,944

 

Interest income

 

 

17,317

 

 

 

13,191

 

 

 

11,487

 

 

 

1,803

 

 

 

27,616

 

 

 

58,607

 

 

 

9,197

 

Interest expense

 

 

(59,841

)

 

 

(79,918

)

 

 

(68,369

)

 

 

(10,729

)

 

 

(238,384

)

 

 

(294,978

)

 

 

(46,288

)

Foreign exchange (loss) gain

 

 

(3,036

)

 

 

208

 

 

 

(5,516

)

 

 

(866

)

 

 

(3,548

)

 

 

(4,726

)

 

 

(742

)

Changes in fair value of financial instruments

 

 

(4,218

)

 

 

45

 

 

 

(281

)

 

 

(44

)

 

 

(12,717

)

 

 

12,605

 

 

 

1,978

 

Others, net

 

 

(19,968

)

 

 

5,512

 

 

 

8,807

 

 

 

1,382

 

 

 

(17,201

)

 

 

24,183

 

 

 

3,795

 

(Loss) income before income taxes

 

 

(5,050

)

 

 

123,446

 

 

 

167,610

 

 

 

26,301

 

 

 

(216,006

)

 

 

470,836

 

 

 

73,884

 

Income tax expense

 

 

(22,071

)

 

 

(45,040

)

 

 

(52,945

)

 

 

(8,308

)

 

 

(67,339

)

 

 

(154,416

)

 

 

(24,231

)

Net (loss) income

 

 

(27,121

)

 

 

78,406

 

 

 

114,665

 

 

 

17,993

 

 

 

(283,345

)

 

 

316,420

 

 

 

49,653

 

(Loss) earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

(0.04

)

 

 

0.11

 

 

 

0.16

 

 

 

0.03

 

 

 

(0.46

)

 

 

0.44

 

 

 

0.07

 

Diluted

 

 

(0.04

)

 

 

0.11

 

 

 

0.16

 

 

 

0.03

 

 

 

(0.46

)

 

 

0.43

 

 

 

0.07

 

Other comprehensive loss, net of tax of nil:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

(173,959

)

 

 

(8,546

)

 

 

(21,301

)

 

 

(3,343

)

 

 

(212,597

)

 

 

(85,391

)

 

 

(13,400

)

Comprehensive (loss) income

 

 

(201,080

)

 

 

69,860

 

 

 

93,364

 

 

 

14,650

 

 

 

(495,942

)

 

 

231,029

 

 

 

36,253

 

 

 

 


 

 

CHINDATA GROUP HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

 

For the three months ended

 

 

For the years ended

 

 

 

December 31, 2020

 

 

September 30, 2021

 

 

December 31, 2021

 

 

December 31, 2020

 

 

December 31, 2021

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

RMB

 

 

RMB

 

 

US$

 

Net (loss) income

 

 

(27,121

)

 

 

78,406

 

 

 

114,665

 

 

 

17,993

 

 

 

(283,345

)

 

 

316,420

 

 

 

49,653

 

Depreciation and amortization

 

 

116,951

 

 

 

151,940

 

 

 

152,654

 

 

 

23,955

 

 

 

410,694

 

 

 

587,080

 

 

 

92,126

 

Share-based compensation

 

 

75,010

 

 

 

23,578

 

 

 

18,288

 

 

 

2,870

 

 

 

349,846

 

 

 

120,724

 

 

 

18,944

 

Amortization of debt issuance cost

 

 

8,706

 

 

 

9,127

 

 

 

11,917

 

 

 

1,870

 

 

 

33,455

 

 

 

35,808

 

 

 

5,619

 

Others

 

 

32,926

 

 

 

14,394

 

 

 

(17,891

)

 

 

(2,807

)

 

 

24,220

 

 

 

452

 

 

 

72

 

Changes in operating assets and liabilities

 

 

11,620

 

 

 

11,338

 

 

 

17,875

 

 

 

2,805

 

 

 

130,040

 

 

 

5,021

 

 

 

788

 

Net cash generated from operating activities

 

 

218,092

 

 

 

288,783

 

 

 

297,508

 

 

 

46,686

 

 

 

664,910

 

 

 

1,065,505

 

 

 

167,202

 

Purchases of property and equipment and other long-lived assets,

    net of proceeds from sale of property and equipment

 

 

(818,637

)

 

 

(1,227,388

)

 

 

(1,108,373

)

 

 

(173,928

)

 

 

(2,424,647

)

 

 

(3,452,962

)

 

 

(541,845

)

Purchase of land use rights

 

 

(93,272

)

 

 

(45,016

)

 

 

(55,479

)

 

 

(8,706

)

 

 

(287,630

)

 

 

(163,896

)

 

 

(25,719

)

Cash paid for investment and business combination,

    net of cash acquired

 

 

(56,992

)

 

 

(150,000

)

 

 

 

 

 

 

 

 

(56,992

)

 

 

(150,000

)

 

 

(23,538

)

Purchase of short-term investments

 

 

 

 

 

(149,487

)

 

 

(36,021

)

 

 

(5,652

)

 

 

 

 

 

(285,506

)

 

 

(44,802

)

Sales and maturities of short-term investments

 

 

 

 

 

 

 

 

99,393

 

 

 

15,597

 

 

 

 

 

 

99,393

 

 

 

15,597

 

Net cash used in investing activities

 

 

(968,901

)

 

 

(1,571,891

)

 

 

(1,100,480

)

 

 

(172,689

)

 

 

(2,769,269

)

 

 

(3,952,971

)

 

 

(620,307

)

Net proceeds from financing activities

 

 

4,399,707

 

 

 

327,527

 

 

 

4,810

 

 

 

755

 

 

 

8,188,802

 

 

 

1,293,061

 

 

 

202,909

 

Net cash generated from financing activities

 

 

4,399,707

 

 

 

327,527

 

 

 

4,810

 

 

 

755

 

 

 

8,188,802

 

 

 

1,293,061

 

 

 

202,909

 

Exchange rate effect on cash, cash equivalents

    and restricted cash

 

 

(235,101

)

 

 

(42

)

 

 

(29,908

)

 

 

(4,695

)

 

 

(292,820

)

 

 

(76,056

)

 

 

(11,936

)

Net increase (decrease) in cash, cash equivalents

    and restricted cash

 

 

3,413,797

 

 

 

(955,623

)

 

 

(828,070

)

 

 

(129,943

)

 

 

5,791,623

 

 

 

(1,670,461

)

 

 

(262,132

)

Cash, cash equivalents and restricted cash at beginning of period

 

 

3,497,666

 

 

 

7,024,695

 

 

 

6,069,072

 

 

 

952,370

 

 

 

1,119,840

 

 

 

6,911,463

 

 

 

1,084,559

 

Cash, cash equivalents and restricted cash at end of period

 

 

6,911,463

 

 

 

6,069,072

 

 

 

5,241,002

 

 

 

822,427

 

 

 

6,911,463

 

 

 

5,241,002

 

 

 

822,427

 

 

 

 


 

CHINDATA GROUP HOLDINGS LIMITED

UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for percentage data)

 

 

For the three months ended

 

 

For the years ended

 

 

 

December 31, 2020

 

 

September 30, 2021

 

 

December 31, 2021

 

 

December 31, 2020

 

 

December 31, 2021

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

RMB

 

 

RMB

 

 

US$

 

Net (loss) income

 

 

(27,121

)

 

 

78,406

 

 

 

114,665

 

 

 

17,993

 

 

 

(283,345

)

 

 

316,420

 

 

 

49,653

 

Add: Depreciation and amortization(1)

 

 

118,880

 

 

 

153,947

 

 

 

154,661

 

 

 

24,270

 

 

 

415,692

 

 

 

595,107

 

 

 

93,385

 

Add: Net interest expenses

 

 

42,524

 

 

 

66,727

 

 

 

56,882

 

 

 

8,926

 

 

 

210,768

 

 

 

236,371

 

 

 

37,091

 

Add: Income tax expenses

 

 

22,071

 

 

 

45,040

 

 

 

52,945

 

 

 

8,308

 

 

 

67,339

 

 

 

154,416

 

 

 

24,231

 

Add: Share-based compensation

 

 

75,010

 

 

 

23,578

 

 

 

18,288

 

 

 

2,870

 

 

 

349,846

 

 

 

120,724

 

 

 

18,944

 

Add: Management consulting services fee

 

 

 

 

 

 

 

 

 

 

 

 

 

 

72,757

 

 

 

 

 

 

 

Add: Changes in fair value of financial instruments

 

 

4,218

 

 

 

(45

)

 

 

281

 

 

 

44

 

 

 

12,717

 

 

 

(12,605

)

 

 

(1,978

)

Add: Foreign exchange loss (gain)

 

 

3,036

 

 

 

(208

)

 

 

5,516

 

 

 

866

 

 

 

3,548

 

 

 

4,726

 

 

 

742

 

Add: Non-cash operating lease cost

     relating to prepaid land use rights

 

 

779

 

 

 

958

 

 

 

966

 

 

 

152

 

 

 

2,860

 

 

 

3,709

 

 

 

582

 

Adjusted EBITDA

 

 

239,397

 

 

 

368,403

 

 

 

404,204

 

 

 

63,429

 

 

 

852,182

 

 

 

1,418,868

 

 

 

222,650

 

Adjusted EBITDA margin

 

 

43.3

%

 

 

49.7

%

 

 

51.7

%

 

 

51.7

%

 

 

46.5

%

 

 

49.7

%

 

 

49.7

%

 

Note:

(1)

Before the deduction of government grants.

 

 

For the three months ended

 

 

For the years ended

 

 

 

December 31, 2020

 

 

September 30, 2021

 

 

December 31, 2021

 

 

December 31, 2020

 

 

December 31, 2021

 

 

 

RMB

 

 

RMB

 

 

RMB

 

 

US$

 

 

RMB

 

 

RMB

 

 

US$

 

Net (loss) income

 

 

(27,121

)

 

 

78,406

 

 

 

114,665

 

 

 

17,993