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21Vianet Group, Inc. Reports Third Quarter 2012 Financial Results

21Vianet Group, Inc. Reports Third Quarter 2012 Financial Results

              3Q12 Net Revenues Up 51.4% YOY to RMB396.1 Million
             3Q12 Adjusted EBITDA Up 41.4% YOY to RMB76.0 Million

  Live Conference Call to be Held at 8:00 AM U.S. Eastern Time, November 16,
                                     2012

BEIJING, Nov. 15, 2012 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq:VNET)
("21Vianet" or the "Company"), the largest carrier-neutral Internet data
center services provider in China, today announced its unaudited financial
results for the third quarter of 2012. The Company will hold a conference call
at 8:00 a.m. Eastern Time on November 16, 2012. Dial-in details are provided
at the end of the release.

Third Quarter 2012 Financial Highlights

  *Net revenues increased by 51.4% to RMB396.1 million (US$63.0 million) from
    RMB261.6 million in the comparative period in 2011.
  *Adjusted EBITDA^1  increased by 41.4% to RMB76.0 million (US$12.1 million)
    from RMB53.7 million in the comparative period in 2011.
  *Adjusted EBITDA margin^2  was 19.2%, compared with 19.3% in the previous
    quarter and 20.5% in the comparative period in 2011.

Mr. Josh Chen, Founder, Chairman and Chief Executive Officer of the Company,
stated, "We continued to deliver solid results in the third quarter by further
expansion and diversification of our Internet and cloud infrastructure
capabilities. As we remain focused on expanding our data center footprint, we
also believe that we are well positioned to capitalize on new emerging
opportunities in China. As an example, our recent acquisition of Fastweb
International Holdings ("Fastweb"), as well as our recent partnership with
Microsoft to offer cloud services in China, together, offer us promising new
revenue streams. We believe that these initiatives, combined with the
increasing Internet data usage in China, will significantly strengthen
21Vianet's future growth potential over the coming years."

Mr. Shang-Wen Hsiao, President and Chief Financial Officer of the Company,
commented, "We are pleased with the steady expansion of our self-built data
centers and our partnership with Microsoft, which will not only help us meet
the growing customer demands for our services, but will also improve our
ability to drive meaningful margin improvement. As we continue to leverage our
core data center business by integrating Fastweb and building-up our cloud
platform, we believe these new initiatives will further solidify our
foundation and growth potential going forward."

Third Quarter 2012 Financial Results

REVENUES: Net revenues for the third quarter of 2012 increased by 51.4% to
RMB396.1 million (US$63.0 million) from RMB261.6 million in the comparative
period in 2011.

Net revenues from hosting and related services increased by 32.8% to RMB218.9
million (US$34.8 million) in the third quarter of 2012 from RMB164.8 million
in the comparative period in 2011, primarily due to an increase in the total
number of cabinets under management in both the Company's self-built and
partnered data centers, which was attributable to growing customer demand. Net
revenues from managed network services increased by 83.0% to RMB177.2 million
(US$28.2 million) in the third quarter of 2012 from RMB96.8 million in the
comparative period in 2011, primarily driven by an increase in network
capacity demand for data transmission services.

GROSS PROFIT: For the third quarter of 2012, gross profit increased by 54.2%
to RMB110.4 million (US$17.6 million) from RMB71.6 million in the comparative
period in 2011. Gross margin for the third quarter of 2012 increased to 27.9%
from 27.4% in the comparative period in 2011.

Adjusted gross profit, which excludes share-based compensation expenses and
amortization of intangible assets derived from acquisitions, increased by
50.9% to RMB118.7 million (US$18.9 million) from RMB78.7 million in the
comparative period in 2011. Adjusted gross margin remained stable at 30.0%,
compared with 30.1% in the comparative period in 2011.

OPERATING EXPENSES: Total operating expenses were RMB102.3 million (US$16.3
million), compared to RMB38,000 in the comparative period in 2011. The
increase in operating expenses primarily reflected a RMB12.0 million (US$1.9
million) non-cash expense in the change in the fair value of contingent
purchase consideration payable recorded this quarter, as compared with a
RMB54.9 million gain in the third quarter of 2011.

Sales and marketing expenses increased to RMB28.9 million (US$4.6 million)
from RMB20.9 million in the comparative period in 2011, primarily due to the
expansion of the Company's sales and service support team.

General and administrative expenses increased to RMB42.6 million (US$6.8
million) from RMB24.6 million in the comparative period in 2011, primarily due
to an increase in headcount, office rentals and other expansion related
expenses.

Research and development expenses increased to RMB18.8 million (US$3.0
million) from RMB9.4 million in the comparative period in 2011, which
reflected the Company's efforts to further strengthen its research and
development capabilities and expand its cloud computing service offerings.

Change in the fair value of contingent purchase consideration payable was
RMB12.0 million (US$1.9 million) during the third quarter of 2012, compared
with a gain in the change in fair value of contingent purchase consideration
payable of RMB54.9 million in the prior year period. This non-cash expense was
primarily due to an increase in the market value of the Company's shares,
which resulted in an increase in the fair value of share-based contingent
purchase considerations payable as of September 30, 2012 associated with the
Company's acquisitions of the Managed Network Entities, Gehua and Fastweb.

Adjusted operating expenses, which exclude share-based compensation expenses
and the changes in the fair value of contingent purchase consideration
payable, increased to RMB68.8 million (US$10.9 million) from RMB41.4 million
in the comparative period in 2011. As a percentage of net revenue, adjusted
operating expenses were 17.4%, compared to 15.8% in the comparative period in
2011.

ADJUSTED EBITDA: Adjusted EBITDA for the third quarter of 2012 increased by
41.4% to RMB76.0 million (US$12.1 million) from RMB53.7 million in the
comparative period in 2011. Adjusted EBITDA margin for the quarter was 19.2%,
compared with 19.3% in the previous quarter and 20.5% in the comparative
period in 2011. Adjusted EBITDA in the third quarter of 2012 excludes
share-based compensation expenses of RMB23.0 million (US$3.7 million) and
changes in the fair value of contingent purchase consideration payable of
RMB12.0 million (US$1.9 million).

NET PROFIT/LOSS: Net profit for the third quarter of 2012 was RMB12.2 million
(US$1.9 million), compared to RMB87.7 million in the comparative period in
2011. The decrease in net profit was due to the aforementioned change in the
fair value of contingent purchase consideration payable that the Company
recorded during the quarter and an RMB1.2 million (US$193,000) foreign
exchange loss in this quarter, compared with a RMB$24.2 million gain in the
comparative period in 2011.

Adjusted net profit for the third quarter of 2012 was RMB52.2 million (US$8.3
million), compared with RMB61.6 million in the comparative period in 2011.
Adjusted net profit in the third quarter of 2012 excludes share-based
compensation expenses of RMB23.0 million (US$3.7 million), amortization of
intangible assets derived from acquisitions of RMB6.8 million (US$1.1
million), and changes in the fair value of contingent purchase consideration
payable and related deferredtaximpact of RMB10.2 million (US$1.6 million) in
the aggregate. Adjusted net margin was 13.2%, compared to 23.6% in the
comparative period in 2011.

EARNING/LOSS PER SHARE: Diluted earnings per ordinary share for the third
quarter of 2012 was RMB0.03, which represents the equivalent of RMB0.18
(US$0.03) per American Depositary Share ("ADS").Each ADS represents six
ordinary shares. Adjusted diluted earnings per share for the third quarter of
2012 was RMB0.15, which represents the equivalent of RMB0.90 (US$0.14) per
ADS. Adjusted earnings per share is calculated using adjusted net profit as
discussed above to divide the weighted average shares number.

As of September 30, 2012, the Company had a total of 346.4 million ordinary
shares outstanding, or the equivalents of 57.7 million ADSs outstanding.

BALANCE SHEET: As of September 30, 2012, the Company's cash and cash
equivalents and short-term investment were RMB0.7 billion (US$113.6 million),
compared to RMB1.3 billion as of December 31, 2011.

Third Quarter 2012 Operational Highlights

  *Monthly Recurring Revenues ("MRR") per cabinet remained stable at
    RMB10,027 in the third quarter of 2012, compared to RMB10,053 in the
    second quarter of 2012.
  *Total cabinets under management increased to 11,648 as of September 30,
    2012, from 10,394 as of June 30, 2012, with 7,334 cabinets in the
    Company's self-built data centers and 4,313 cabinets in its partnered data
    centers.
  *Utilization rate was 67.7% in the third quarter 2012, compared to 81.2% in
    the second quarter of 2012, reflecting the increased capacity the Company
    experienced with the addition of 1,254 new cabinets.
  *Churn rate remained stable at 0.87% in the third quarter of 2012, compared
    to 0.93% in the second quarter of 2012. Top 20 customers' churn rate
    remained 0%.
  *The largest customer represented 3.8% of total net revenues.

Nine Months Ended September 30, 2012 Financial Performance

For the nine months ended September 30, 2012, net revenue increased by 57.5%
to RMB1.1 billion (US$176.0 million) from RMB702.7 million in the prior year
comparative period. Adjusted EBITDA for the nine months ended September 30,
2012 increased by 50.0% to RMB215.9 million (US$34.4 million) from RMB143.9
million in the prior year comparative period. Adjusted EBITDA margin was
19.5%, compared to 20.5% in the prior year comparative period. Adjusted EBITDA
for the nine months of 2012 excludes share-based compensation expense of
RMB45.3 million (US$7.2 million) and changes in the fair value of contingent
purchase consideration payable of RMB57.5 million (US$9.1 million). Adjusted
net profit for the nine months ended September 30, 2012 increased by 3.3% to
RMB127.8 million (US$20.3 million) from RMB123.7 million in the prior year
comparative period. Adjusted net profit in the nine months of 2012 excludes
share-based compensation expense of RMB45.3 million (US$7.2 million),
amortization of intangible assets derived from acquisitions of RMB19.1 million
(US$3.0 million), and changes in the fair value of contingent purchase
consideration payable and related deferred tax assets of RMB48.9 million
(US$7.8 million).

Recent Developments

In November, 2012, 21Vianet entered into a strategic partnership agreement
with Microsoft Corporation (Nasdaq:MSFT) to expand Microsoft's premier
commercial cloud services—Office 365 and Windows Azure—into China. 21Vianet
has been licensed the technology and other rights to operate and offer Office
365 and Windows Azure services in China. Microsoft and 21Vianet will co-market
the services targeting small-to medium-sized enterprises, multinationals,
government agencies and others, which is expected to help further broaden
21Vianet's client base. In addition, 21Vianet will hire 200 to 300 software
engineers, who will focus on developing, implementing and maintaining these
cloud computing services and platform.

In October 2012, the Company enhanced the independence of its Board of
Directors (the "Board") through the appointment of Mr. Zhonghe Tai as an
independent Director and Chairman of the Nominating and Corporate Governance
Committee. Mr. Tai replaced Mr. David Ying Zhang, a non-Independent Director,
who voluntarily tendered his resignation from his position as Director and
Chairman of the Nominating and Corporate Governance Committee. In addition,
Mr. Jun Zhang, Co-founder and Chief Operating Officer of 21Vianet ("COO"), was
also nominated to serve as Director of the Company.Mr. Zhonghe Tai is a
prominent figure in the Taiwanese technology sector with over 35 years of
industry experience with leading technology and hardware companies in Taiwan
and the United States.

In September 2012, the Company completed its acquisition of Fastweb, a leading
Internet content delivery network ("CDN") services provider in China, to
expand its CDN and cloud technology capabilities.In connection with the
acquisition, Mr. Edward Liu, the Chief Executive Officer of Fastweb, joined
21Vianet as the Chief Software Officer and part of his responsibilities will
be to oversee 21Vianet's cloud computing initiatives as well as business
partnership strategies. Prior to Fastweb, Mr. Liu was the director of business
development at Akamai Technologies, Inc. ("Akamai"), one of the world's
leading CDN service providers. The Company is in the process of obtaining
information to value certain tangible and intangible assets of Fastweb.
Therefore the consolidated financial statements as of September 30, 2012
reflects the preliminary purchase price allocation for Fastweb.

Financial Outlook

For the fourth quarter of 2012, the Company expects net revenues to be in the
range of RMB413 million to RMB420 million.Adjusted EBITDA is expected to be
in the range of RMB77 million to RMB83 million. As a result, for the full year
of 2012, the Company expects net revenues to be approximately in the range of
RMB1.519 billion to RMB1.526 billion and adjusted EBITDA to be in the range of
RMB292 million to RMB298 million. These forecasts reflect the Company's
current and preliminary view, which is subject to change.

Conference Call

The Company will hold a conference call on Friday, November 16, 2012 at 8:00
a.m. Eastern Time, or 9:00 p.m. Beijing Time, to discuss the financial
results.Listeners may access the call by dialing the following numbers:

United States:            +1-646-254-3515
International Toll Free:  +1-855-500-8701
China Domestic:           400-1200654
Hong Kong:                +852-3051-2745
Conference ID:            #45805822

The replay will be accessible through November 23, 2012 by dialing the
following numbers:

United States Toll Free:  +1- 855-452-5696
International:           +61-2-8199-0299
Conference ID:            # 45805822

A webcast of the conference call will be available through the Company's
investor relations website at http://ir.21vianet.com.

Non-GAAP Disclosure

In evaluating its business, 21Vianet considers and uses the following non-GAAP
measures defined as non-GAAP financial measures by the SEC as supplemental
measure to review and assess its operating performance: adjusted gross profit,
adjusted gross margin, adjusted operating expenses, adjusted net profit,
adjusted net margin, adjusted EBITDA, adjusted EBITDA margin, adjusted basic
earnings per share, adjusted diluted earnings per share, adjusted basic
earnings per ADS and adjusted diluted earnings per ADS. 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 GAAP
and non-GAAP results" set forth at the end of this press release.

The non-GAAP financial measures are provided as additional information to help
investors compare business trends among different reporting periods on a
consistent basis and to enhance investors' overall understanding of the
Company's current financial performance and prospects for the future. These
non-GAAP financial measures should be considered in addition to results
prepared in accordance with U.S. GAAP, but should not be considered a
substitute for, or superior to, U.S. GAAP results. In addition, the Company's
calculation of the non-GAAP financial measures may be different from the
calculation used by other companies, and therefore comparability may be
limited.

Exchange Rate

This press release contains translations of certain Renminbi amounts into U.S.
dollars at specified rates solely for the convenience of readers. Unless
otherwise noted, all translations from Renminbi to U.S. dollars, in this press
release, were made at a rate of RMB6.2848 to US$1.00, the noon buying rate in
effect on September 28, 2012 in the City of New York for cable transfers in
Renminbi per U.S. dollar as certified for customs purposes by the Federal
Reserve Bank of New York.

Statement Regarding Unaudited Condensed Financial Information

The unaudited financial information set forth belowis preliminary and subject
to potential adjustments. Adjustments to the consolidated financial statements
may be identified when audit work has been performed for the Company's
year-end audit, which could result in significant differences from this
preliminary unaudited condensed financial information.

About 21Vianet

21Vianet Group, Inc. is the largest carrier-neutral Internet data center
services provider in China. 21Vianet provides hosting and related services,
managed network services and cloud computing infrastructure services,
improving the reliability, security and speed of its customers' Internet
connections through 21Vianet's Internet infrastructure. Customers may locate
their servers and networking equipment in 21Vianet's data centers and connect
to China's Internet backbone through 21Vianet's extensive fiber optic network.
In addition, 21Vianet's proprietary smart routing technology, BroadEx, enables
customers' data to be delivered across the Internet in a faster and more
reliable manner. 21Vianet operates in 33 cities throughout China, servicing a
diversified and loyal base of more than 1,900 customers that span many
industries ranging from Internet companies to government entities and
blue-chip enterprises to small- to mid-sized enterprises.

Safe Harbor Statement

This announcement contains forward-looking statements. These forward-looking
statements are made under the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These statements can be identified
by terminology such as "will," "expects," "anticipates," "future," "intends,"
"plans," "believes," "estimates" and similar statements. Among other things,
the outlook for the fourth quarter and full year of 2012 and quotations from
management in this announcement, as well as 21Vianet's strategic and
operational plans, contain forward-looking statements. 21Vianet may also make
written or oral forward-looking statements in its reports filed with, 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.
Statements that are not historical facts, including statements about
21Vianet'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: 21Vianet's goals and strategies; 21Vianet's expansion plans; the
expected growth of the data center services market; expectations regarding
demand for, and market acceptance of, 21Vianet's services; 21Vianet's
expectations regarding keeping and strengthening its relationships with
customers; 21Vianet's plans to invest in research and development to enhance
its solution and service offerings; and general economic and business
conditions in the regions where 21Vianet provides solutions and
services.Further information regarding these and other risks is included in
21Vianet's reports filed with, or furnished to the Securities and Exchange
Commission. 21Vianet does not undertake any obligation to update any
forward-looking statement, except as required under applicable law. All
information provided in this press release and in the attachments is as of the
date of this press release, and 21Vianet undertakes no duty to update such
information, except as required under applicable law.

^1 Adjusted EBITDA is anon-GAAP financial measure, whichis defined as EBITDA
excluding share-based compensation expenses and changes in the fair value of
contingent purchase consideration payable.

^2 Adjusted EBITDA margin is a non-GAAP financial measure, which is defined as
adjusted EBITDA as a percentage of total net revenues.

21VIANET GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))
                                                                
                                                                
                                   As of             As of
                                   December 31, 2011 September 30, 2012
                                   RMB               RMB          US$
                                   (Audited)         (Unaudited)  (Unaudited)
Assets                                                           
Current assets:                                                  
Cash and cash equivalents           410,389          446,701     71,076
Restricted cash                     4,578            192,941     30,700
Accounts receivable, net            147,624          295,247     46,978
Short term investments              894,540          267,434     42,553
Prepaid expenses and other current  47,575           67,462      10,734
assets
Deferred tax assets                 4,872            9,795       1,559
Amount due from related parties     41,643           16,080      2,559
Total current assets                1,551,221        1,295,660   206,159
Non-current assets:                                              
Property and equipment, net         453,883          790,714     125,814
Intangible assets, net              159,439          284,796     45,315
Deferred tax assets                 12,773           21,929      3,489
Goodwill                            217,436          296,688     47,207
Investment                          8,200            58,729      9,345
Restricted cash                     --              219,732     34,962
Total non-current assets            851,731          1,672,588   266,132
Total assets                        2,402,952        2,968,248   472,291
Liabilities and Shareholders'                                    
(Deficit) Equity
Current liabilities:                                             
Short term bank borrowings          100,000          247,686     39,410
Accounts payable                    82,131           141,806     22,563
Notes payable                       4,578            --         --
Accrued expenses and other payables 124,326          185,451     29,507
Advances from customers             23,238           34,054      5,418
Income tax payable                  5,634            29,663      4,720
Amounts due to related parties      96,618           212,590     33,826
Current portion of capital lease    26,012           27,698      4,407
obligations
Total current liabilities           462,537          878,948     139,851
Non-current liabilities:                                         
Long term bank borrowings           --              66,000      10,502
Amounts due to related parties      124,493          143,741     22,871
Non-current portion of capital      73,896           65,605      10,439
lease obligations
Unrecognized tax benefits           26,801           12,447      1,980
Deferred tax liabilities            39,682           43,796      6,969
Deferred government grant           5,819            19,717      3,137
Total non-current liabilities       270,691          351,306     55,898
Commitments and contingencies                                    
Mezzanine equity                    --              --         --
Shareholders' equity                                             
Treasury stock                      (168,018)        (26,675)    (4,244)
Ordinary shares                    23               23          4
Additional paid-in capital          3,277,658        3,182,868   506,439
Accumulated other comprehensive     (54,779)         (47,584)    (7,571)
income loss
Statutory reserves                  15,837           15,837      2,520
Accumulated deficit                 (1,418,167)      (1,404,580) (223,487)
Total 21Vianet Group, Inc.          1,652,554        1,719,889   273,661
shareholders' equity
Non-controlling interest            17,170           18,105      2,881
Total shareholders' equity          1,669,724        1,737,994   276,542
Total liabilities, mezzanine equity 2,402,952        2,968,248   472,291
and shareholders' equity


21VIANET GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share
data)
                                                                                       
               Three months ended                                 Nine months ended September 30
               September    June 30,     September 30, 2012        2011         2012
                30, 2011     2012
               RMB          RMB          RMB          US$          RMB          RMB          US$
               (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
Net revenues                                                                            
Hosting and
related         164,814     205,078     218,861     34,824      439,365     613,440     97,607
services
Managed network 96,831      159,384     177,198     28,195      263,287     492,900     78,427
services
Total net       261,645     364,462     396,059     63,019      702,652     1,106,340   176,034
revenues
Cost of         (190,071)   (261,088)   (285,662)   (45,453)    (514,149)   (794,397)   (126,400)
revenues
Gross profit    71,574      103,374     110,397     17,566      188,503     311,943     49,634
Operating                                                                   --         --
expenses
Sales and       (20,894)    (24,262)    (28,885)    (4,596)     (55,427)    (78,295)    (12,458)
marketing
General and     (24,643)    (32,004)    (42,622)    (6,782)     (58,508)    (104,125)   (16,568)
administrative
Research and    (9,396)     (16,477)    (18,758)    (2,985)     (24,637)    (46,605)    (7,416)
development
Changes in the
fair value of
contingent      54,895      (2,210)     (12,043)    (1,916)     (43,206)    (57,492)    (9,148)
purchase
consideration
payable
Total operating (38)        (74,953)    (102,308)   (16,279)    (181,778)   (286,517)   (45,590)
expenses
Operating       71,536      28,421      8,089       1,287       6,725       25,426      4,044
profit
Interest income 7,051       4,466       4,216       671         10,591      10,442      1,661
Interest        (1,241)     (1,483)     (1,592)     (253)       (3,693)     (5,391)     (858)
expense
Investment      --          --          29          5                       29          5
income
Other income    395         406         11,209      1,784       1,341       11,616      1,848
Other expense   (65)        (22)        (107)       (17)        (276)       (500)       (80)
Foreign
exchange gain   24,195      (3,134)     (1,213)     (193)       26,013      (5,729)     (912)
(loss)
Profit before   101,871     28,654      20,631      3,284       40,701      35,893      5,708
income taxes
Income tax      (14,186)    (10,443)    (8,417)     (1,339)     (6,305)     (21,371)    (3,400)
expense
Net profit     87,685      18,211      12,214      1,945       34,396      14,522      2,308
Net income
attributable to (6,141)     (214)       (363)       (58)        (18,909)    (935)       (149)
non-controlling
interest
Net profit
attributable to
the Company's   81,544      17,997      11,851      1,887       15,487      13,587      2,159
ordinary
shareholders
                                                                                       
                                                                                       
                                                                                       
Earnings per                                                                            
share
Basic           0.24        0.05        0.03        0.01        0.06        0.04        0.01
Diluted         0.23        0.05        0.03        0.01        0.05        0.04        0.01
Shares used in
earnings per                                                                            
share
computation
Basic*          338,719,421 342,958,701 340,885,136 340,885,136 239,527,651 341,971,679 341,971,679
Diluted*        354,085,623 354,879,200 352,729,739 352,729,739 311,198,141 353,994,266 353,994,266
                                                                                       
Earnings per ADS (6 ordinary                                                             
shares equal to 1 ADS)
EPS - Basic     1.44         0.30         0.18         0.03         0.36         0.24         0.04
EPS - Diluted   1.38         0.30         0.18         0.03         0.30         0.24         0.04
                                                                                       
* Shares used in earnings per share/ADS computation were computed under weighted average method.


21VIANET GROUP, INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share
data)
                                                                                       
               Three months ended                                  Nine months ended September 30
               September    June 30,     September 30, 2012        2011         2012
                30, 2011     2012
               RMB          RMB          RMB          US$          RMB          RMB          US$
Gross profit    71,574      103,374     110,397     17,566      188,503     311,943     49,634
Plus:
share-based     356         800         1,513       241         1,579       2,987       475
compensation
expense
Plus:
amortization of
intangible      6,741       6,150       6,788       1,080       21,044      19,133      3,044
assets derived
from
acquisitions
Adjusted gross  78,671      110,324     118,698     18,887      211,126     334,063     53,153
profit
Adjusted gross  30.1%        30.3%        30.0%        30.0%        30.0%        30.2%        30.2%
margin
Operating       (38)        (74,953)    (102,308)   (16,279)    (181,778)   (286,517)   (45,590)
expenses
Plus:
share-based     13,525      10,597      21,462      3,415       29,927      42,279      6,727
compensation
expense
Plus: changes
in the fair
value of
contingent      (54,895)    2,210       12,043      1,916       43,206      57,492      9,148
purchase
consideration
payable
Adjusted
operating       (41,408)    (62,146)    (68,803)    (10,948)    (108,645)   (186,746)   (29,715)
expenses
Net profits     87,685      18,211      12,214      1,945       34,396      14,522      2,308
Plus:
share-based     13,881      11,397      22,975      3,656       31,506      45,266      7,202
compensation
expense
Plus:
amortization of
intangible      6,741       6,150       6,788       1,080       21,044      19,133      3,044
assets derived
from
acquisitions
Plus: changes
in the fair
value of
contingent
purchase        (46,661)    1,879       10,237      1,629       36,725      48,868      7,776
consideration
payable and
related
deferred tax
impact
Adjusted net    61,646      37,637      52,214      8,310       123,671     127,789     20,330
profit
Adjusted net    23.6%        10.3%        13.2%        13.2%        17.6%        11.6%        11.6%
margin
Operating       71,536      28,421      8,089       1,287       6,725       25,426      4,044
profit
Plus:           16,022      19,704      23,724      3,776       40,101      63,218      10,059
depreciation
Plus:           7,198       8,682       9,176       1,460       22,372      24,492      3,897
amortization
Plus:
share-based     13,881      11,397      22,975      3,656       31,506      45,266      7,202
compensation
expense
Plus: changes
in the fair
value of
contingent      (54,895)    2,210       12,043      1,916       43,206      57,492      9,148
purchase
consideration
payable
Adjusted EBITDA 53,742      70,414      76,007      12,095      143,910     215,894     34,350
Adjusted EBITDA 20.5%        19.3%        19.2%        19.2%        20.5%        19.5%        19.5%
margin
                                                                                       
                                                                                       
                                                                                       
Adjusted net    61,646      37,637      52,214      8,310       123,671     127,789     20,330
profit
Less: Net
income
attributable to (6,141)     (214)       (363)       (58)        (18,909)    (935)       (149)
non-controlling
interest
Adjusted net
profit
attributable to 55,505      37,423      51,851      8,252       104,762     126,854     20,181
the Company's
ordinary
shareholders
                                                                                       
Adjusted
earnings per                                                                            
share
Basic           0.16        0.11        0.15        0.02        0.44        0.37        0.06
Diluted         0.16        0.11        0.15        0.02        0.35        0.36        0.06
Shares used in
adjusted
earnings per                                                                            
share
computation:
Basic*          338,719,421 342,958,701 340,885,136 340,885,136 239,527,651 341,971,679 341,971,679
Diluted*        338,719,421 354,879,200 352,729,739 352,729,739 297,004,465 353,994,266 353,994,266
                                                                                       
Earnings per
ADS (6 ordinary                                                                         
shares equal to
1 ADS)
EPS - Basic     0.96        0.66        0.90        0.14         2.64        2.22        0.35
EPS - Diluted   0.96        0.66        0.90        0.14         2.10        2.16        0.34
                                                                                       
* Shares used in adjusted earnings per share/ADS computation were computed under weighted average method.

CONTACT: Investor Relations Contact:
         ICR, Inc.
         Jeremy Peruski
         +1 (646) 405-4922
         IR@21Vianet.com
 
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