ChinaCache International Holdings Ltd. Announces First Quarter 2013 Financial Results

ChinaCache International Holdings Ltd. Announces First Quarter 2013 Financial
Results

BEIJING, May 29, 2013 (GLOBE NEWSWIRE) -- ChinaCache International Holdings
Ltd. ("ChinaCache" or the "Company") (Nasdaq:CCIH), the leading total
solutions provider of Internet content and application delivery services in
China, today announced its unaudited condensed consolidated financial results
for the first quarter ended March 31, 2013.

Highlights for the First Quarter of 2013

  *Net revenues in the first quarter were RMB230.7 million (US$37.2 million),
    representing a 2.5% increase from the previous quarter and a 26.8%
    increase year-over-year.
  *Gross profit in the first quarter was RMB71.2 million (US$11.5 million),
    an increase of 5.3% from the previous quarter and 26.6% year-over-year.
  *Gross margin in the first quarter was 30.9%, compared to 30.1% in the
    fourth quarter of 2012 and 30.9% in the corresponding quarter in 2012.
    Adjusted gross margin (non-GAAP) in the first quarter was 35.5%. 
  *Adjusted net loss (non-GAAP) was RMB7.5 million (US$1.2 million) in the
    first quarter, compared to adjusted net loss of RMB19.9 million in the
    fourth quarter of 2012.

"We are pleased to report that net revenues in the first quarter exceeded the
high end of our guidance, reaching RMB 231 million. Gross margin in the first
quarter improved to 30.9%, up 80 basis points quarter-over-quarter. We
delivered sequential improvements across many of our key operating metrics in
the first quarter, which speaks to the effectiveness of our enhanced business
development and efficiency optimization initiatives," said Mr. Song Wang,
Founder, Chairman and Chief Executive Officer of ChinaCache. "Our company-wide
efforts to grow ChinaCache's presence in the enterprise segment are continuing
to generate results through increases in customer count and revenue
contribution, as well as through the ongoing expansion of our footprint in the
enterprise market. Over the longer-term, we believe that mobile Internet is
going to become a major driver of demand for services such as ours, as the
rapid increase in mobile data traffic is severely straining China's wireless
networks. ChinaCache will seize these opportunities and further lead the
Chinese market to transition from traditional CDN market to the new generation
of CDN."

First Quarter 2013 Financial Results

Net revenues for the first quarter of 2013 were RMB230.7 million (US$37.2
million), a 2.5% increase from the fourth quarter of 2012 and a 26.8% increase
from the corresponding period in 2012. Net revenue growth was primarily driven
by the enterprise vertical which grew 36.7% quarter over quarter and
contributed 8% of total net revenues in the first quarter of 2013.

Cost of revenues for the first quarter increased 1.4% quarter-over-quarter and
26.9% year-over-year to RMB159.5 million (US$25.7 million). Gross margin was
30.9%, compared to 30.1% in the previous quarter and 30.9% in the
corresponding period in 2012. Non-GAAP gross margin, which excludes
share-based compensation and depreciation and amortization expenses, was
35.5%, compared to 35.1% in the fourth quarter of 2012 and 39.5% in the
corresponding period in 2012.

Sales and marketing expenses for the first quarter decreased 2.4% from the
previous quarter to RMB26.7 million (US$4.3 million) as the Company undertook
fewer promotional activities than in the fourth quarter of 2012. Sales and
marketing expenses increased 32.2% year-over-year and accounted for 11.6% of
net revenues in the first quarter of 2013.

General and administrative expenses for the first quarter declined 29.9% from
the previous quarter to RMB30.3 million (US$4.9 million) and increased 78.0%
year-over-year, accounting for 13.1% of net revenues in the first quarter of
2013. General and administrative expenses in the fourth quarter of 2012
included a bad debt provision of RMB17.1 million.

Research and development expenses for the first quarter increased 1.4% over
the previous quarter to RMB21.1million (US$3.4 million) and increased 49.9%
year-over-year, accounting for 9.2% of net revenues in the first quarter of
2013. The increases were mainly due to the Company's ongoing product
development initiatives.

Operating loss was RMB6.9 million (US$1.1 million) in the first quarter of
2013, compared to an operating loss of RMB23.8 million in the previous quarter
and an operating income of RMB4.9 million in the corresponding period in 2012.
Non-GAAP operating loss, which excludes share-based compensation expense was
RMB5.3 million (US$0.8 million), compared to a Non-GAAP operating loss of
RMB20.8 million in the fourth quarter of 2012 and a Non-GAAP operating income
of RMB11.2 million in the corresponding period in 2012.

Income tax expense was RMB3.1 million (US$0.5 million) in the first quarter of
2013, compared to an income tax benefit of RMB0.3 million in the fourth
quarter of 2012 and an income tax expense of RMB2.8 million in the first
quarter of 2012.

Net loss was RMB8.5 million (US$1.4 million) in the first quarter of 2013,
compared to a net loss of RMB26.7 million in the fourth quarter of 2012 and a
net profit of RMB2.5 million in the corresponding period in 2012. Basic and
diluted loss per American depositary share ("ADS") for the first quarter of
2013 were RMB0.37 (US$0.06) and RMB0.37 (US$0.06), respectively. Each ADS
represents 16 ordinary shares of the Company.

Adjusted net loss (non-GAAP), defined as net loss before share-based
compensation expense, foreign exchange loss or gain and penalties on uncertain
tax positions, was RMB7.5 million (US$1.2 million), compared to an adjusted
net loss (non-GAAP) of RMB19.9 million in the fourth quarter of 2012 and an
adjusted net income (non-GAAP) of RMB8.9 million in the corresponding period
in 2012.Non-GAAP basic and diluted loss per ADS for the first quarter of 2013
were RMB0.33 (US$0.05) and RMB0.33 (US$0.05), respectively.

Adjusted EBITDA (non-GAAP), defined as EBITDA excluding share-based
compensation expense and foreign exchange loss or gain, was RMB9.8 million
(US$1.6 million) compared to negative RMB5.9 million in the fourth quarter of
2012 and RMB27.0 million in the corresponding period in 2012.

Capital Resources

As of March 31, 2013, the Company had cash and cash equivalents of RMB240.5
million (US$38.7 million). In addition, the Company had an available-for-sale
investment amounting to RMB82.9 million (US$13.3 million) in an RMB
denominated short-term fixed income fund which is presented as non-current
assets. Capital expenditures for the first quarter of 2013 were RMB55.6
million (US$8.9 million).

Share Repurchases

In May 2012, the Company's Board authorized a share repurchase program to
repurchase up to US$10 million of the Company's ADSs from May 18, 2012 to May
17, 2013 through open market transactions or in block trades.

As of May 17, 2013, the Company had repurchased a total of 319,827 ADSs for
approximately US$1.5 million at an average price of US$4.65 per ADS under this
buyback program on the open market. The Company currently has approximately
22.6 million ADSs outstanding.

Outlook for the Company's Second Quarter of 2013

ChinaCache currently expects to generate total net revenues in the range of
RMB250 million (US$40.3 million) to RMB255 million (US$41.1 million) for the
second quarter of 2013, representing an increase of 8.3% to 10.5% from the
first quarter of 2013, and an increase of 26.6% to 29.1% year-over-year. This
forecast reflects ChinaCache's current view, which is subject to change.

Conference Call Information

The Company has scheduled a conference call to discuss these results at 8:00
PM Eastern Daylight Time on May 29, 2013, which corresponds to 8:00 AM Beijing
time on May 30, 2012.

The dial-in details for the live conference call are as follows:

  *U.S. dial-in number: +1 (646) 254-3515
  *Hong Kong dial-in number: +852 3051-2745
  *International dial-in number: +65 6723-9385
  *China dial-in number: 400-1200-654
  *Conference ID: 7500-2674

A live and archived webcast of the conference call will be available on the
Investor Relations section of ChinaCache's website at en.chinacache.com.

A replay of the conference call will also be available until June 5, 2013 by
dialing:

  oU.S. dial-in number: +1 (855) 452-5696
  oInternational dial-in number: +61 (2) 8199 0299
  oChina dial-in number: 400-1200-932 
  oConference ID: 7500-2674

About ChinaCache International Holdings Ltd.

ChinaCache International Holdings Ltd. (Nasdaq:CCIH) is the leading total
solutions provider of Internet content and application delivery services in
China. As a carrier-neutral service provider, ChinaCache's network in China is
interconnected with networks operated by all telecom carriers, major
non-carriers and local Internet service providers. With more than a decade of
experience in developing solutions tailored to China's complex internet
infrastructure, ChinaCache is a partner of choice for businesses, government
agencies and other enterprises to enhance the reliability and scalability of
online services and applications and improve end-user experience. For more
information on ChinaCache, please visit en.chinacache.com.

*Use of Non-GAAP Financial Measures

In evaluating its business, ChinaCache considers and uses the following
non-GAAP measures defined as non-GAAP financial measures by the SEC as
supplemental measures to review and assess its operating performance: non-GAAP
gross profit, non-GAAP sales and marketing expenses, non-GAAP general and
administrative expenses, non-GAAP research and development expenses, non-GAAP
operating income/(loss), adjusted net income/(loss) (non-GAAP), EBITDA and
adjusted EBITDA (non-GAAP). The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a substitute for
the financial information prepared and presented in accordance with U.S. GAAP.
For more information on these non-GAAP financial measures, please see the
table captioned "Reconciliations of Non-GAAP to GAAP Financial Measures" set
forth at the end of this press release.

To present non-GAAP sales and marketing expenses, non-GAAP general and
administrative expenses and non-GAAP research and development expenses, the
Company excludes share-based compensation expense.

To present non-GAAP gross profit, the Company excludes depreciation and
amortization expenses and share-based compensation expense.

To present non-GAAP operating income/(loss), the Company excludes share-based
compensation expense.

The Company defines adjusted net income as net income/(loss) before
share-based compensation expense, foreign exchange loss or gain and penalties
on uncertain tax positions.

The Company uses EBITDA to assist in reconciliation to adjusted EBITDA. The
Company defines EBITDA as net income (loss) before interest expense, interest
income, income tax expense, penalties on uncertain tax positions and
depreciation and amortization. The Company defines adjusted EBITDA as EBITDA
before share-based compensation expense and foreign exchange loss or gain that
the Company does not consider reflective of its ongoing operations. The
Company believes that the use of adjusted EBITDA facilitates investors' use of
operating performance comparisons from period to period and company to company
by backing out potential differences caused by variations in items such as
capital structure (affecting relative interest expense and share-based
compensation expense), the book amortization of intangibles (affecting
relative amortization expense), the age and book value of facilities and
equipment (affecting relative depreciation expense) and other non-cash
expenses. The Company also presents adjusted EBITDA because it believes it is
frequently used by securities analysts, investors and other interested parties
as a measure of the financial performance of companies in its industry.

Those non-GAAP financial measures are not defined under U.S. GAAP and are not
measures presented in accordance with U.S. GAAP. Those non-GAAP financial
measures have limitations as analytical tools, and when assessing the
Company's operating performance, investors should not consider them in
isolation, or as a substitute for net income (loss) or other consolidated
income statement data prepared in accordance with U.S. GAAP. Some of these
limitations include, but are not limited to:

  *Adjusted net income/(loss), EBITDA and adjusted EBITDA do not reflect the
    Company's cash expenditures or future requirements for capital
    expenditures or contractual commitments;
  *They do not reflect changes in, or cash requirements for, the Company's
    working capital needs;
  *They do not reflect the interest expense, or the cash requirements
    necessary to service interest or principal payments, on the Company's
    debt;
  *They do not reflect income taxes or the cash requirements for any tax
    payments;
  *Although depreciation and amortization are non-cash charges, the assets
    being depreciated and amortized often will have to be replaced in the
    future, and adjusted net income/(loss), EBITDA and adjusted EBITDA do not
    reflect any cash requirements for such replacements;
  *While share-based compensation is a component of cost of revenues and
    operating expenses, the impact on the Company's financial statements
    compared to other companies can vary significantly due to such factors as
    assumed life of the options and assumed volatility of the Company's
    ordinary shares; and
  *Other companies may calculate adjusted net income/(loss), EBITDA and
    adjusted EBITDA differently than the Company does, limiting their
    usefulness as comparative measures.

Exchange Rate Information

This announcement contains translations of certain RMB amounts into U.S.
dollars at a specified rate solely for the convenience of the reader.Unless
otherwise noted, all translations from RMB to U.S. dollars are based on the
effective exchange rate of 6.2108 as of March 31, 2013.

Safe Harbor Statement

This announcement contains forward-looking statements.These statements are
made under the "safe harbor" provisions of the U.S. Private Securities
Litigation Reform Act of 1995.These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements. Among
other things, the outlook for the second quarter of 2013 and quotations from
management in this announcement, as well as ChinaCache's strategic and
operational plans, contain forward-looking statements. ChinaCache may also
make written or oral forward-looking statements in its reports filed or
furnished to the U.S. Securities and Exchange Commission, in its annual
reports to shareholders, in press releases and other written materials and in
oral statements made by its officers, directors or employees to third parties.
Forward-looking statements involve inherent risks and uncertainties.A number
of factors could cause actual results to differ materially from those
contained in any forward-looking statements, including but not limited to the
following: the Company's goals and strategies, expansion plans, the expected
growth of the content and application delivery services market, the Company's
expectations regarding keeping and strengthening its relationships with its
customers, and the general economic and business conditions in the regions
where the Company provides its solutions and services. Further information
regarding these and other risks is included in the Company's filings with the
U.S. Securities and Exchange Commission. All information provided in this
press release is as of the date of this press release, and ChinaCache
undertakes no duty to update such information, except as required under
applicable law.

Condensed Consolidated Balance Sheets
(amounts in thousands)
                                                                
                                            As of Dec As of Mar   As of Mar
                                             31        31          31
                                            2012      2013        2013
                                            RMB     RMB       US$
                                            (Audited) (Unaudited) (Unaudited)
ASSETS                                                         
Current assets                                                 
Cash and cash equivalents                  317,137   240,537     38,729
Accounts receivable, net                   230,199   311,937     50,225
Prepaid expenses and other current assets  31,240    43,432      6,993
Deferred tax assets                        13,626    9,416       1,516
Amount due from a related party            8,640     3,840       618
Total current assets                       600,842   609,162     98,081
                                                                
Non-current assets                                             
Property, plant and equipment, net         179,239   195,119     31,416
Intangible assets, net                     3,368     5,109       823
Land use right                             --      51,505      8,293
Long term investments                      15,136    15,136      2,437
Available-for-sale investments             82,292    82,850      13,340
Deferred tax assets                        6,166     10,307      1,660
Long-term deposits                         13,847    3,738       602
Total non-current assets                   300,048   363,764     58,571
                                                                
Total Assets                               900,890   972,926     156,652
                                                                
LIABILITIES AND SHAREHOLDERS' EQUITY                           
Current Liabilities                                            
Accounts payable                           106,399   141,607     22,800
Accrued employee benefits                  36,084    45,113      7,264
Accrued expenses and other payables        57,773    88,341      14,224
Income tax payable                         22,537    25,965      4,181
Liabilities for uncertain tax positions    11,786    11,786      1,898
Amounts due to related parties             1,062     1,100       177
Total current liabilities                  235,641   313,912     50,544
                                                                
Non-current liabilities                                        
Deferred government grant                  3,360     3,360       541
Total non-current liabilities              3,360     3,360       541
                                                                
Total Liabilities                          239,001   317,272     51,085
                                                                
Total Shareholders' equity                 661,889   655,654     105,567
                                                                
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 900,890   972,926     156,652


Condensed Consolidated Statements of Comprehensive Income
(amounts in thousands, except for number of shares, per share and per ADS
data)
                                                              
                          For the Three Months Ended
                          Mar 31, 2012 Dec 31, 2012 Mar 31, 2013 Mar 31, 2013
                          RMB          RMB          RMB          US$
                          (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
                                                              
Net revenues               181,975     225,019     230,748     37,153
Cost of revenues           (125,708)   (157,372)   (159,538)   (25,687)
                                                              
Gross profit               56,267      67,647      71,210      11,466
Sales & marketing expenses (20,207)    (27,376)    (26,711)    (4,301)
General & administrative   (17,019)    (43,225)    (30,297)    (4,878)
expenses
Research & development     (14,103)    (20,856)    (21,139)    (3,404)
expenses
                                                              
Operating income/(loss)    4,938       (23,810)    (6,937)     (1,117)
Interest income            696         309         446         72
Interest expense           (311)       (575)       (411)       (66)
Other income /(expense)    138         (1,867)     878         141
Foreign exchange           (139)       (994)       643         104
(loss)/gain, net
                                                              
Income/(loss) before       5,322       (26,937)    (5,381)     (866)
income taxes
Income tax                 (2,804)     266         (3,098)     (499)
(expense)/benefit
                                                              
Net income/(loss)
attributable to ordinary   2,518       (26,671)    (8,479)     (1,365)
shareholders
                                                              
Foreign currency           --         77          28          5
translation
Unrealized gain from
available-for-sale         314         311         557         90
investments
                                                              
Total other comprehensive  314         388         585         95
income, net of tax
                                                              
Comprehensive              2,832       (26,283)    (7,894)     (1,270)
income/(loss)
                                                              
Earnings/(loss) per                                            
ordinary share:
Basic                      0.01         (0.07)       (0.02)       (0.00)
Diluted                    0.01         (0.07)       (0.02)       (0.00)
                                                              
Earnings/(loss) per ADS:                                       
Basic                      0.11         (1.17)       (0.37)       (0.06)
Diluted                    0.11         (1.17)       (0.37)       (0.06)
                                                              
Weighted average number of
ordinary shares used in                                        
earnings/(loss) per share
computation:
Basic                      364,839,393 363,282,183 362,102,972 362,102,972
Diluted                    373,548,975 363,282,183 362,102,972 362,102,972


Supplementary Financial Data
(amounts in thousands, except for percentages)
                                                              
                          For the Three Months Ended
                          Mar 31, 2012 Dec 31, 2012 Mar 31, 2013 Mar 31, 2013
                          RMB          RMB          RMB          US$
                          (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
                                                              
Cost of revenues                                               
breakdown:
Bandwidth, co-location and 100,803     137,313     135,859     21,875
storage fees
Depreciation and           14,398      10,880      10,292      1,657
amortization expenses
Payroll and other
compensation costs of      5,514       7,673       8,728       1,405
network operations
personnel
Other cost of revenues     4,993       1,506       4,659       750
Total cost of revenues     125,708     157,372     159,538     25,687
                                                              
Allocation of share-based                                      
compensation expenses:
Cost of revenues           1,127       545         527         85
Sales and marketing        2,691       1,300       1,259       203
expenses
General and administrative 1,252       605         (686)       (110)
expenses
Research and development   1,189       574         556         90
expenses
Total share-based          6,259       3,024       1,656       268
compensation expenses
                                                              
Depreciation and                                               
amortization expenses:
Cost of revenues           14,398      10,880      10,292      1,657
Sales and marketing        99          262         24          4
expenses
General and administrative 375         414         1,779       286
expenses
Research and development   802         2,464       2,098       338
expenses
Total depreciation and     15,674      14,020      14,193      2,285
amortization expenses
                                                              
Capital expenditures       11,964      15,977      55,584      8,950
As a percentage of net     6.6%         7.1%         24.1%        24.1%
revenues

                                                                      
Supplementary Operating Metrics                                        
(Unaudited)                                                            
                                                                  
                                     For The Three Months Ended
                                     Mar 31, Jun 30, Sept 30, Dec 31, Mar 31,
                                      2012    2012    2012     2012    2013
                                                                  
Revenues breakdown by industry verticals                            
                                                                  
Internet and software                 20%     20%     20%      21%     20%
Mobile internet                       17%     18%     18%      17%     17%
Media and entertainment               32%     30%     29%      30%     30%
E-commerce                            23%     24%     24%      23%     22%
Enterprises                           4%      4%      5%       6%      8%
Government agencies                   4%      4%      4%       3%      3%
Total                                 100%    100%    100%     100%    100%
                                                                  
Revenue contributed by Top 5          24%     29%     22%      27%     28%
customers as a percentage of revenues
                                                                  
Number of active customers            895     1,013   1,138    1,265   1,363
                                                                  
Number of employees                  690     751     758      900     1,060


Supplementary Metrics - Reconciliations of Non-GAAP to GAAP Financial Measures
                                                                  
(amounts in thousands, except for percentages, number of shares, per share and
per ADS data)
(Unaudited)
                                                                  
                             For the Three Months Ended
                             Mar 31, 2012  Dec 31, 2012 Mar 31, 2013 Mar 31,
                                                                      2013
                             RMB           RMB          RMB          US$
Adjusted EBITDA — defined as
EBITDA before share-based                                          
compensation expense and
foreign exchange loss or gain
                                                                  
Net income/(loss)             2,518        (26,671)    (8,479)     (1,365)
Depreciation                  15,674       14,020      13,832      2,227
Amortization                  --          --         361         58
Interest expense              311          575         411         66
Interest income               (696)        (309)       (446)       (72)
Income tax expense            2,804        (266)       3,098       499
Share-based compensation      6,259        3,024       1,656       268
Foreign exchange loss/(gain)  139          994         (643)       (104)
Penalties on uncertain tax    --          2,775       --         --
positions
Adjusted EBITDA               27,009       (5,858)     9,790       1,577
Margin%                       14.8%         (2.6%)       4.2%         4.2%
                                                                  
                                                                  
Adjusted net income — defined
as net income/(loss) before
share-based compensation,                                          
foreign exchange loss or gain
and penalties on uncertain
tax positions
                                                                  
Net income/(loss)             2,518        (26,671)    (8,479)     (1,365)
Share-based compensation      6,259        3,024       1,656       268
Foreign exchange loss/(gain)  139          994         (643)       (104)
Penalties on uncertain tax    --          2,775       --         --
positions
Adjusted net income/(loss)    8,916        (19,878)    (7,466)     (1,201)
Margin%                       4.9%          (8.8%)       (3.2%)       (3.2%)
Earnings/(loss) per ordinary                                       
share:
Basic                         0.02          (0.05)       (0.02)       (0.00)
Diluted                       0.02          (0.05)       (0.02)       (0.00)
Earnings/(loss) per ADS:                                           
Basic                         0.39          (0.88)       (0.33)       (0.05)
Diluted                       0.38          (0.88)       (0.33)       (0.05)
                                                                  
                                                                    
Non-GAAP gross profit –
defined as gross profit
before share-based                                                 
compensation expense and
depreciation and amortization
                                                                  
Gross profit                  56,267       67,647      71,210      11,466
Plus: depreciation and        14,398       10,880      10,292      1,657
amortization
Plus: Share-based             1,127        545         527         85
compensation
Non-GAAP gross profit         71,792       79,072      82,029      13,208
Margin%                       39.5%         35.1%        35.5%        35.5%
                                                                  
                                                                  
Non-GAAP operating expense –
defined as operating expense                                       
before share-based
compensation expense
                                                                  
Sales & marketing expenses    20,207       27,376      26,711      4,301
Minus: Share-based            (2,691)      (1,300)     (1,259)     (203)
compensation
Non-GAAP sales & marketing    17,516       26,076      25,452      4,098
expenses
% of net revenues             9.6%          11.6%        11.0%        11.0%
                                                                  
General & administrative      17,019       43,225      30,297      4,878
expenses
Minus: Share-based            (1,252)      (605)       686         110
compensation
Non-GAAP general &            15,767       42,620      30,983      4,988
administrative expenses
% of net revenues             8.7%          18.9%        13.4%        13.4%
                                                                  
Research & development        14,103       20,856      21,139      3,404
expenses
Minus: Share-based            (1,189)      (574)       (556)       (90)
compensation
Non-GAAP research &           12,914       20,282      20,583      3,314
development expenses
% of net revenues             7.1%          9.0%         8.9%         8.9%
                                                                  
                                                                  
Non-GAAP operating income —
defined as GAAP operating
income/(loss) before                                               
share-based compensation
expense
                                                                  
Operating income/(loss)       4,938        (23,810)    (6,937)     (1,117)
Plus: Share-based             6,259        3,024       1,656       268
compensation
Non-GAAP operating            11,197       (20,786)    (5,281)     (849)
income/(loss)
Margin%                       6.2%          (9.2%)       (2.3%)       (2.3%)

CONTACT: For investor and media inquiries please contact:
        
         Ms. Yujie Li
         Investor Relations
         ChinaCache International Holdings
         Tel: +86 (10) 6408 5305
         Email: ir@chinacache.com
        
         Mr. Lee Roth
         The Piacente Group | Investor Relations
         Tel: +1 212-481-2050
         Email: chinacache@tpg-ir.com