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 May 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):  ☐

 

 

 

 

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EXHIBITS

 

 

 

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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.

 

 

Date: May 26, 2022

 

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Exhibit Index

 

 

 

 

Exhibit 99.1

 

Chindata Group Reports First Quarter 2022 Unaudited Financial Results

BEIJING, May 26, 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 first quarter ended March 31, 2022. 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

 

Management Quote

Mr. Huapeng Wu, Chief Executive Officer of Chindata Group, commented, “Despite the headwind in macro environment and COVID related issues, we continued to manage the challenges and grow our business. Our total capacity reached 704MW by the end of the first quarter, making Chindata one of the largest IDC service providers in the entire APAC emerging market. We kept proceeding with our delivery schedule, putting two projects of 58MW into service. Thanks to our healthy client profile, we continued our steady ramp-up by adding 40MW utilized capacity in the first quarter, representing a 45% YoY growth. COVID-related control measures did create challenges, and we’ve been responding to these challenges actively as a trusted partner of our clients. Thanks to our differentiated geographic layout and unique business model, we managed to keep the impact within a very limited range. Our growth plan is being well executed. In APAC emerging market, we continued to proceed with our MY06 project in Malaysia. We are also delighted to have

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completed the Thailand business acquisition, which marked a further step on top of our existing 117MW capacity to further expand in the region.”

Mr. Dongning WANG, Chief Financial Officer of Chindata Group, commented, “Once again, we are delivering solid financial performance. Revenue in the first quarter was RMB920.6 million, representing a 43.1% YoY growth. Adjusted EBITDA in the first quarter was RMB494.5 million, representing a 60.7% YoY growth with a historical-high margin of 53.7%. Net income for the first quarter was RMB94.6 million, achieving net profit performance for five consecutive quarters with a margin of 10.3%. These performances again showcased the efficiency, economy of scale and healthy client profile that we enjoyed under our cornerstone green-field hyperscale business model. We’ve also finalized a 500 million USD syndicated loan financing recently, which will further support the growth of the Company in the future. With the strong confidence in our business momentum going forward, we are raising our full year 2022 guidance for both top line and bottom line”

 

Business Highlights

 

Asset Overview

Thailand Business Acquisition

Progress was achieved in the Company’s deployment in APAC emerging market through M&A initiatives, as the Company has successfully completed the business acquisition in Thailand. The project is located in Bangkok and is currently running a minor capacity for a local client. With further technical upgrade, we expect to bring the total capacity of the project to 5MW and to better serve our potential clients in the region.

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Financing Activity

The Company finalized a 500 million USD syndicated loan financing in May, with reputable domestic and international banks selected as lenders. The financing is expected to close by end of June and proceeds of the financing is planned to be used to support business development and to refinance existing debt. This key financing activity will better support the Company’s business growth going forward under current macro environment.

 

First Quarter Year 2022 Financial Results Summary

 

TOTAL REVENUES

Total revenues in the first quarter of 2022 increased by 43.1% to RMB920.6 million (US$145.2 million) from RMB643.4 million in the same period of 2021, primarily driven by the robust growth of the Company’s colocation services.

 

COST OF REVENUE

In line with the Company’s revenue growth, total cost of revenue in the first quarter of 2022 increased by 29.1% to RMB499.6 million (US$78.8 million) from RMB386.9 million in the same period of 2021, mainly driven by increases in utility costs, and depreciation and amortization expenses.

 

GROSS PROFIT

Gross profit in the first quarter of 2022 increased by 64.2% to RMB421.0 million (US$66.4 million) from RMB256.5 million in the same period of 2021. Gross margin in the first quarter of 2022 was 45.7%, compared with 39.9% in the same period of 2021 and 44.3% in the fourth quarter of 2021.

 

OPERATING EXPENSES

Total operating expenses in the first quarter of 2022 increased by 25.1% to RMB169.5 million (US$26.7 million) from RMB135.4 million in the same period of 2021.

•Selling and marketing expenses in the first quarter of 2022 increased by 6.8% to RMB22.4 million (US$3.5 million) from RMB21.0 million in the same period of 2021, primarily due to higher share-based compensation expense.

•General and administrative expenses in the first quarter of 2022 increased by 32.9% to RMB127.8 million (US$20.2 million) from RMB96.2 million in the same period of 2021, primarily due to higher share-based compensation expense.

•Research and development expenses in the first quarter of 2022 increased by 5.4% to RMB19.2 million (US$3.0 million) from RMB18.2 million in the same period of 2021, 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 first quarter of 2022 increased by 107.9% to RMB251.6 million (US$39.7 million) from RMB121.0 million in the same period of 2021. Operating income margin in the first quarter of 2022 was 27.3%, compared with 18.8% in the same period of 2021 and 28.3% in the fourth quarter of 2021.

 

NET INCOME

Net income in the first quarter of 2022 increased by 62.5% to RMB94.6 million (US$14.9 million) from RMB58.2 million in the same period of 2021. Net income margin in the first quarter of 2022 was 10.3%, compared with 9.0% in the same period of 2021 and 14.7% in the fourth quarter of 2021.

 

EARNINGS PER ADS

Basic and diluted earnings per American Depositary Share ("ADS") in the first quarter of 2022 were RMB0.26 (US$0.04). Basic and diluted earnings per share were RMB0.13 (US$0.02). Each ADS represents two of the Company's Class A ordinary share.

 

ADJUSTED EBITDA

Adjusted EBITDA in the first quarter of 2022 increased by 60.7% to RMB494.5 million (US$78.0 million), from RMB307.8 million in the same period of 2021. Adjusted EBITDA is defined as net income excluding depreciation and

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amortization, net interest expenses, income tax expenses, share-based compensation, 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 first quarter of 2022 was 53.7%, compared with 47.8% in the same period of 2021 and 51.7% in the fourth quarter of 2021.

 

ADJUSTED NET INCOME

Adjusted net income in the first quarter of 2022 increased by 62.4% to RMB177.5 million (US$28.0 million), from RMB109.3 million in the same period of 2021. Adjusted net income is defined as net income excluding share-based compensation 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 first quarter of 2022 was 19.3%, compared with 17.0% in the same period of 2021 and 18.3% in the fourth quarter of 2021.

 

BALANCE SHEET

As of March 31, 2022, the Company had cash, cash equivalents and restricted cash of RMB4.4 billion (US$689.7 million), compared to cash, cash equivalents and restricted cash of RMB5.2 billion as of December 31, 2021.

 

2022 Full Year Business Outlook

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

 

TOTAL REVENUES

ADJUSTED EBITDA

 

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

 

Conference Call Information

 

The Company will hold a conference call on Thursday, May 26, 2022, at 8:00 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.

 

 

The replay will be accessible through June 2, 2022, by dialing the following numbers:

 

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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.

 

Exchange Rate Information

Unless otherwise stated, all translations from Renminbi into U.S. dollars were made at RMB6.3393 to US$1.00, the noon buying rate on March 31, 2022 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

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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

 

 

 

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CHINDATA GROUP HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

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

 

 

 

 

 

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CHINDATA GROUP HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

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

 

 

 

 

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CHINDATA GROUP HOLDINGS LIMITED

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

 

 

 

 

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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)

 

 

Note:

 

 

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