GlobeNewswire Inc | Mar 23, 2021 05:00PM EDT

March 23, 2021

BEIJING, March 23, 2021 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq: VNET) ("21Vianet" or the "Company"), a leading carrier- and cloud-neutral Internet data center services provider in China, today announced its unaudited financial results for the fourth quarter ended December 31, 2020. The Company will hold a conference call at 8:30 P.M. on Tuesday, March 23, 2021, U.S. Eastern Time to discuss the financial results. Dial-in details are provided at the end of this release.

Fourth Quarter 2020 Financial Highlights

-- Net revenues increased by 28.6% to RMB1.35 billion (US$206.6 million) from RMB1.05 billion in the same period of 2019. -- Adjusted cash gross profit (non-GAAP) increased by 36.6% to RMB581.9 million (US$89.2 million) from RMB425.9 million in the same period of 2019. Adjusted cash gross margin (non-GAAP) was 43.2%, compared to 40.6% in the same period of 2019. -- Adjusted EBITDA (non-GAAP) increased by 47.7% to RMB389.8 million (US$59.7 million) from RMB263.8 million in the same period of 2019. Adjusted EBITDA margin (non-GAAP) was 28.9%, compared to 25.2% in the same period of 2019.

Full Year 2020 Financial Highlights

-- Net revenues increased by 27.4% to RMB4.83 billion (US$740.1 million) from RMB3.79 billion in the full year of 2019. -- Adjusted cash gross profit (non-GAAP) increased by 22.0% to RMB1.99 billion (US$305.4 million) from RMB1.63 billion in the full year of 2019. Adjusted cash gross margin (non-GAAP) was 41.3%, compared to 43.1% in the full year of 2019. -- Adjusted EBITDA (non-GAAP) increased by 26.0% to RMB1.32 billion (US$202.9 million) from RMB1.05 billion in the full year of 2019. Adjusted EBITDA margin (non-GAAP) was 27.4%, compared to 27.7% in the full year of 2019.

Fourth Quarter 2020 Operational Highlights

-- Total cabinets under management net increased by 2,077 to 53,553 as of December 31, 2020, compared to 51,476 as of September 30, 2020, and 36,291 as of December 31, 2019. -- Retail IDC MRR1 per cabinet increased to RMB9,131 in the fourth quarter of 2020, compared to RMB8,822 in the same period of 2019 and RMB9,074 in the third quarter of 2020. -- Compound utilization rate was 60.4%, compared to 64.2% in the third quarter of 2020. Utilization rate for mature IDCs delivered prior to 2019 was 77.8%, compared to 77.0% in the third quarter of 2020.Utilization rate for ramp-up and newly-built IDCs was 31.7%, compared to 35.9% in the third quarter of 2020.

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1Retail IDC MRR: Refers to Monthly Recurring Revenues for the retail IDC business.

Mr. Samuel Shen, Chief Executive Officer and Executive Chairman of Retail IDC, stated, We delivered robust financial and operating results in the fourth quarter and full year of 2020 due to the growing market demand as well as our methodical resource expansion, meticulous customer service, and strong sales momentum. During the quarter, we remained committed to expanding our capacity pipeline and growing our resources. We acquired a data center in Beijing which is already under commitment to a public cloud customer. We were able to secure additional wholesale demand in recent months and accumulated our MOU in service or under contract to 180 MW. We are currently preparing an initial ESG report and plan to publish it later this year, to keep in line with our commitment to transparency around our corporate sustainability practices, and to ensure our environmental sustainability while executing expansion initiatives going forward.

Ms. Sharon Liu, Chief Financial Officer of the Company, commented, In the fourth quarter and full year of 2020, our revenues exceeded the high-end of our previous guidance ranges, while our adjusted EBITDA were both within our previous guidance ranges. Such strong financial results continued to illustrate our on-track and efficient cabinet delivery to customers, as well as our improved operating efficiency. Recognizing the significant potential for future growth and expansion, we made the decision to execute a convertible notes offering in an aggregate principal amount of US$600 million in January 2021. This has further demonstrated our recognized growth prospects, substantial brand value, and potent investor interest.

Fourth Quarter 2020 Financial Results

NET REVENUES: Net revenues in the fourth quarter of 2020 increased by 28.6% to RMB1.35 billion (US$206.6 million) from RMB1.05 billion in the fourth quarter of 2019, representing an increase of 8.2% from RMB1.25 billion in the third quarter of 2020. This increase was mainly due to the Companys increased engagement with existing wholesale customers as well as the addition of new retail IDC customers.

GROSS PROFIT: Gross profit in the fourth quarter of 2020 was RMB294.4 million (US$45.1 million), representing an increase of 18.8% from RMB247.9 million in the same period of 2019 and an increase of 7.0% from RMB275.1 million in the third quarter of 2020. Gross margin in the fourth quarter of 2020 was 21.8%, compared to 23.6% in the same period of 2019 and 22.1% in the third quarter of 2020. The year-over-year decrease in gross margin was primarily attributable to the delivery of additional IDC capacity.

ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was RMB581.9 million (US$89.2 million) in the fourth quarter of 2020, compared to RMB425.9 million in the same period of 2019 and RMB526.2 million in the third quarter of 2020. Adjusted cash gross margin in the fourth quarter of 2020 was 43.2%, compared to 40.6% in the same period of 2019 and 42.2% in the third quarter of 2020.

OPERATING EXPENSES: Total operating expenses in the fourth quarter of 2020 were RMB369.2 million (US$56.6 million), compared to RMB244.4 million in the same period of 2019 and RMB199.3 million in the third quarter of 2020. As a percentage of net revenues, total operating expenses in the fourth quarter of 2020 were 27.4%, compared to 23.3% in the same period of 2019 and 16.0% in the third quarter of 2020.

Sales and marketing expenses in the fourth quarter of 2020 were RMB88.9 million (US$13.6 million), compared to RMB63.2 million in the same period of 2019 and RMB45.8 million in the third quarter of 2020. The year-over-year increase in sales and marketing expenses was in line with the Companys business expansion efforts.

Research and development expenses in the fourth quarter of 2020 were RMB42.2 million (US$6.5 million), compared to RMB24.9 million in the same period of 2019 and RMB26.1 million in the third quarter of 2020. This increase was primarily due to the Companys ongoing efforts to explore various technology upgrades and more scalable delivery methods for its cloud-neutral solutions.

General and administrative expenses in the fourth quarter of 2020 were RMB162.9 million (US$25.0 million), compared to RMB110.0 million in the same period of 2019 and RMB127.5 million in the third quarter of 2020. The increase in general and administrative expenses was primarily due to share-based compensation recognized.

ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses, impairment of receivables from equity investees and impairment of long-lived assets, were RMB215.5 million (US$33.0 million) in the fourth quarter of 2020, compared to RMB184.2 million in the same period of 2019 and RMB180.5 million in the third quarter of 2020. As a percentage of net revenues, adjusted operating expenses in the fourth quarter of 2020 were 16.0%, compared to 17.6% in the same period of 2019 and 14.5% in the third quarter of 2020.

ADJUSTED EBITDA: Adjusted EBITDA in the fourth quarter of 2020 was RMB389.8 million (US$59.7 million), representing an increase of 47.7% from RMB263.8 million in the same period of 2019 and an increase of 5.8% from RMB368.5 million in the third quarter of 2020. Adjusted EBITDA in the fourth quarter of 2020 excluded share-based compensation expenses of RMB82.0 million (US$12.6 million). Adjusted EBITDA margin was 28.9% in the fourth quarter of 2020, compared to 25.2% in the same period of 2019 and 29.6% in the third quarter of 2020.

NET PROFIT/LOSS: Net loss attributable to ordinary shareholders in the fourth quarter of 2020 was RMB1.02 billion (US$155.6 million), compared to net loss attributable to ordinary shareholders of RMB16.4 million in the same period of 2019 and net profit attributable to ordinary shareholders of RMB97.1 million in the third quarter of 2020. The year-over-year increase of loss was primarily attributable to a loss of RMB957.1 million (US$146.7 million) from changes in the fair value of convertible promissory notes.

PROFIT/LOSS PER SHARE: Basic and diluted loss per share both were RMB1.28 (US$0.20) in the fourth quarter of 2020, which represents the equivalent of RMB7.68 (US$1.20) per American depositary share ("ADS"). Each ADS represents six Class A ordinary shares. Diluted profit/loss per share is calculated using net profit/loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

As of December 31, 2020, the aggregate amount of the Company's cash andcash equivalents, restricted cash, and short-term investments was RMB3.40 billion (US$521.4 million).

Net cash generated from operating activities in the fourth quarter of 2020 was RMB283.8 million (US$43.5 million), compared to RMB444.8 million in the same period of 2019 and RMB210.0 million in the third quarter of 2020.

Full Year 2020 Financial Results

NET REVENUES: Net revenues in the full year of 2020 increased by 27.4% to RMB4.83 billion (US$740.1 million) from RMB3.79 billion in the full year of 2019.

GROSS PROFIT: Gross profit in the full year of 2020 was RMB1.08 billion (US$164.9 million), representing an increase of 14.5% from RMB939.4 million in the full year of 2019. Gross margin in the full year of 2020 was 22.3%, compared to 24.8% in the full year of 2019.

ADJUSTED CASH GROSS PROFIT, which excludes depreciation, amortization, and share-based compensation expenses, was RMB1.99 billion (US$305.4 million) in the full year of 2020, compared to RMB1.63 billion in the full year of 2019. Adjusted cash gross margin in the full year of 2020 was 41.3%, compared to 43.1% in the full year of 2019.

OPERATING EXPENSES: Total operating expenses in the full year of 2020 were RMB959.4 million (US$147.0 million), compared to RMB757.2 million in the full year of 2019. As a percentage of net revenues, total operating expenses in the full year of 2020 were 19.9%, compared to 20.0% in the full year of 2019.

Sales and marketing expenses in the full year of 2020 were RMB235.0 million (US$36.0 million), representing an increase of 13.9% from RMB206.3 million in the full year of 2019.

Research and development expenses in the full year of 2020 were RMB112.9 million (US$17.3 million), representing an increase of 27.1% from RMB88.8 million in the full year of 2019.

General and administrative expenses in the full year of 2020 were RMB535.1 million (US$82.0 million), representing an increase of 28.9% from RMB415.3 million in the full year of 2019.

ADJUSTED OPERATING EXPENSES, which exclude share-based compensation expenses, impairment of receivables from equity investees and impairment of long-lived assets, were RMB756.2 million (US$115.9 million) in the full year of 2020, compared to RMB663.0 million in the full year of 2019. As a percentage of net revenues, adjusted operating expenses in the full year of 2020 were 15.7%, compared to 17.5% in the full year of 2019.

ADJUSTED EBITDA: Adjusted EBITDA in the full year of 2020 was RMB1.32 billion (US$202.9 million), representing an increase of 26.0% from RMB1.05 billion in the full year of 2019. Adjusted EBITDA in the full year of 2020 excluded share-based compensation expenses of RMB136.8 million (US$21.0 million). Adjusted EBITDA margin in the full year of 2020 was 27.4%, compared to 27.7% in the full year of 2019.

NET PROFIT/LOSS: Net loss attributable to ordinary shareholders in the full year of 2020 was RMB3.18 billion (US$487.4 million), compared to net loss attributable to ordinary shareholders of RMB182.3 million in the full year of 2019. The increase of loss was primarily attributable to a loss of RMB2.54 billion (US$389.9 million) from changes in the fair value of convertible promissory notes.

PROFIT/LOSS PER SHARE: Basic and diluted loss per share both were RMB4.47 (US$0.69), which represents the equivalent of RMB26.82 (US$4.14) per ADS. Diluted profit/loss per share is calculated using net profit/loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

Net cash generated from operating activities in the full year of 2020 was RMB714.2 million (US$109.5 million), compared to RMB802.9 million in the full year of 2019.

Financial Outlook

For the first quarter of 2021, the Company expects net revenues to be in the range of RMB1,375 million to RMB1,395 million. Adjusted EBITDA is expected to be in the range of RMB395 million to RMB415 million.

For the full year of 2021, the Company expects net revenues to be in the range of RMB6,100 million to RMB6,300 million. Adjusted EBITDA is expected to be in the range of RMB1,680 million to RMB1,780 million. The midpoints of the Companys updated estimates imply an increase of 28.4% and 30.7% year over year in net revenues and adjusted EBITDA, respectively.

The forecast reflects the Companys current and preliminary views on the market and its operational conditions, which do not factor in any of the potential future impacts caused by the COVID-19 pandemic, and are subject to change.

Conference Call

The Company will hold a conference call at 8:30 P.M. on Tuesday, March 23, 2021, U.S. Eastern Time, or 8:30 A.M. on Wednesday, March 24, 2021, Beijing Time, 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: 6392518Registration Link: http://apac.directeventreg.com/registration/event/6392518

The replay will be accessible through March 31, 2021, by dialing the following numbers:

United States Toll Free: +1-855-452-5696International: +61-2-8199-0299Conference ID: 6392518

A live and archived 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 Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. 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 announcement contains translations of certain RMB amounts into U.S. dollars (USD) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.5250 to US$1.00, the noon buying rate in effect on December 31, 2020, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Statement Regarding Unaudited Condensed Financial Information

The unaudited financial information set forth above is 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 a leading carrier- and cloud-neutral Internet data center services provider in China. 21Vianet provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security and speed of its customers' Internet infrastructure. Customers may locate their servers and equipment in 21Vianet's data centers and connect to China's Internet backbone. 21Vianet operates in more than 20 cities throughout China, servicing a diversified and loyal base of over 6,000 hosting and related enterprise customers that span numerous 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," target, "believes," "estimates" and similar statements. Among other things, 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. 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.

Investor Relations Contacts:

21Vianet Group, Inc.Rene Jiang+86 10 8456 2121IR@21Vianet.com

Julia Jiang+86 10 8456 2121IR@21Vianet.com

ICR, Inc.Xinran Rao+1 (646) 405-4922IR@21Vianet.com

21VIANET GROUP, INC. CONSOLIDATED BALANCE SHEETS (Amount in thousands of Renminbi (?RMB?) and US dollars (?US$?)) As of As of December 31, December 31, 2020 2019 RMB RMB US$ (Audited) (Unaudited) (Unaudited) Assets Current assets: Cash and cash equivalents 1,808,483 2,710,349 415,379 Restricted cash 478,873 270,450 41,448 Accounts and notes receivable, net 657,158 847,233 129,844 Short-term investments 363,856 285,872 43,812 Prepaid expenses and other current 1,618,149 1,866,184 286,005 assetsAmounts due from related parties 301,665 75,519 11,574 Total current assets 5,228,184 6,055,607 928,062 Non-current assets: Property and equipment, net 5,443,565 8,104,069 1,242,003 Intangible assets, net 410,595 660,551 101,234 Land use rights, net 233,154 255,373 39,138 Operating lease right-of-use assets, 1,221,616 1,325,526 203,146 netGoodwill 989,530 994,993 152,489 Restricted cash 69,821 135,638 20,787 Deferred tax assets 209,366 185,481 28,426 Long-term investments 169,653 135,517 20,769 Amounts due from related parties 20,654 20,562 3,151 Other non-current assets 277,568 1,500,438 229,952 Total non-current assets 9,045,522 13,318,148 2,041,095 Total assets 14,273,706 19,373,755 2,969,157 Liabilities and Shareholders' Equity Current liabilities: Short-term bank borrowings 234,500 34,000 5,211 Accounts and notes payable 303,128 289,387 44,350 Accrued expenses and other payables 978,935 1,631,563 250,048 Advances from customers 1,068,692 1,041,594 159,631 Deferred revenue 57,625 63,245 9,693 Income taxes payable 48,032 29,028 4,449 Amounts due to related parties 166,935 51,007 7,817 Current portion of long-term 32,500 180,328 27,636 borrowingsCurrent portion of finance lease 227,115 403,843 61,892 liabilitiesCurrent portion of deferred government 2,595 2,074 318 grantCurrent portion of bonds payable 911,147 1,943,619 297,873 Current portion of operating lease 437,817 452,272 69,314 liabilitiesTotal current liabilities 4,469,021 6,121,960 938,232 Non-current liabilities: Long-term borrowings 79,500 886,996 135,938 Bonds payable 2,060,708 - - Convertible promissory notes - 3,014,057 461,924 Non-current portion of finance lease 896,927 688,128 105,460 liabilitiesUnrecognized tax benefits 2,443 68,696 10,528 Deferred tax liabilities 202,572 299,093 45,838 Non-current portion of deferred 5,906 4,100 628 government grantAmounts due to related parties 745,899 747,746 114,597 Non-current portion of operating lease 579,102 645,499 98,927 liabilitiesTotal non-current liabilities 4,573,057 6,354,315 973,840 Shareholders' equity Treasury stock (349,523 ) (349,523 ) (53,567 ) Ordinary shares 46 56 9 Additional paid-in capital 9,202,567 13,083,119 2,005,076 Accumulated other comprehensive gain 77,904 (55,535 ) (8,511 ) (loss)Statutory reserves 60,469 74,462 11,412 Accumulated deficit (4,038,390 ) (7,235,113 ) (1,108,830 ) Series A perpetual convertible - 1,047,468 160,531 preferred sharesTotal 21Vianet Group, Inc. 4,953,073 6,564,934 1,006,120 shareholders? equityNoncontrolling interest 278,555 332,546 50,965 Total shareholders' equity 5,231,628 6,897,480 1,057,085 Total liabilities and shareholders' 14,273,706 19,373,755 2,969,157 equity

21VIANET GROUP, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(Amount in thousands of Renminbi (?RMB?) and US dollars (?US$?) except fornumber of shares and per share data) Three months ended Twelve months ended December September December 31, 2020 December December 31, 2020 31, 2019 30, 2020 31, 2019 RMB RMB RMB US$ RMB RMB US$ (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited) Net revenues 1,048,119 1,245,794 1,348,367 206,646 3,788,967 4,829,019 740,080 Cost of (800,248 ) (970,651 ) (1,053,942 ) (161,524 ) (2,849,518 ) (3,753,008 ) (575,174 ) revenuesGross profit 247,871 275,143 294,425 45,122 939,449 1,076,011 164,906 Operating expensesOtheroperating 6,862 - 7,619 1,168 6,862 7,619 1,168 incomeSales and (63,188 ) (45,760 ) (88,890 ) (13,623 ) (206,309 ) (235,012 ) (36,017 ) marketingResearch and (24,920 ) (26,078 ) (42,164 ) (6,462 ) (88,792 ) (112,891 ) (17,301 ) developmentGeneral and (109,984 ) (127,546 ) (162,869 ) (24,961 ) (415,277 ) (535,111 ) (82,009 ) administrative(Allowance)reversal for (1,072 ) 111 (1,321 ) (202 ) (1,557 ) (2,393 ) (367 ) doubtful debtImpairment ofreceivables (52,142 ) - - - (52,142 ) - - from equityinvesteesImpairment oflong-lived - - (81,619 ) (12,509 ) - (81,619 ) (12,509 ) assetsTotaloperating (244,444 ) (199,273 ) (369,244 ) (56,589 ) (757,215 ) (959,407 ) (147,035 ) expenses Operating 3,427 75,870 (74,819 ) (11,467 ) 182,234 116,604 17,871 profitInterest 14,988 6,440 4,176 640 54,607 31,711 4,860 incomeInterest (88,375 ) (96,366 ) (79,243 ) (12,145 ) (345,955 ) (380,609 ) (58,331 ) expenseImpairment oflong-term - - (13,030 ) (1,997 ) - (13,030 ) (1,997 ) investmentOther income 22,160 2,747 4,736 726 36,380 16,539 2,535 Other expense (1,270 ) (4,995 ) (7,926 ) (1,215 ) (5,632 ) (36,912 ) (5,657 ) Changes in thefair value ofconvertible - 24,939 (957,105 ) (146,683 ) - (2,544,220 ) (389,919 ) promissorynotesForeignexchange gain 22,512 114,101 155,496 23,831 (27,995 ) 228,125 34,962 (loss)Loss on debt (122 ) - - - (18,895 ) - - extinguishment(Loss) gainbefore incometaxes and(loss) gain (26,680 ) 122,736 (967,715 ) (148,310 ) (125,256 ) (2,581,792 ) (395,676 ) from equitymethodinvestmentsIncome taxbenefits 24,686 (25,230 ) (41,210 ) (6,316 ) (5,437 ) (109,336 ) (16,756 ) (expenses)(Loss) gainfrom equity (20,260 ) 2,265 15,194 2,329 (50,553 ) 10,869 1,666 methodinvestmentsNet (loss) (22,254 ) 99,771 (993,731 ) (152,297 ) (181,246 ) (2,680,259 ) (410,766 ) profitNet loss(profit)attributable 5,838 (2,627 ) (21,647 ) (3,318 ) (1,046 ) (29,088 ) (4,458 ) tononcontrollinginterestNet (loss)profitattributable (16,416 ) 97,144 (1,015,378 ) (155,615 ) (182,292 ) (2,709,347 ) (415,224 ) to 21 VianetGroup, Inc.Deemeddistributionto Series Aperpetual - - - - - (470,643 ) (72,129 ) convertiblepreferredshareholdersNet (loss)profitattributableto the (16,416 ) 97,144 (1,015,378 ) (155,615 ) (182,292 ) (3,179,990 ) (487,353 ) Company?sordinaryshareholders (Loss) profit per shareBasic (0.02 ) 0.11 (1.28 ) (0.20 ) (0.27 ) (4.47 ) (0.69 ) Diluted (0.02 ) 0.08 (1.28 ) (0.20 ) (0.27 ) (4.47 ) (0.69 ) Shares used in(loss) profit per sharecomputationBasic* 670,523,195 716,409,506 802,963,713 802,963,713 668,833,756 716,888,919 716,888,919 Diluted* 670,523,195 805,640,008 802,963,713 802,963,713 668,833,756 716,888,919 716,888,919 (Loss) profitper ADS (6ordinary shares equalto 1 ADS)Basic (0.12 ) 0.66 (7.68 ) (1.20 ) (1.62 ) (26.82 ) (4.14 ) Diluted (0.12 ) 0.48 (7.68 ) (1.20 ) (1.62 ) (26.82 ) (4.14 ) * Shares used in (loss) profit 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$?)) Three months ended Twelve months ended December September December 31, 2020 December December 31, 2020 31, 2019 30, 2020 31, 2019 RMB RMB RMB US$ RMB RMB US$ Gross profit 247,871 275,143 294,425 45,122 939,449 1,076,011 164,906 Plus:depreciation 177,529 246,747 277,543 42,535 691,764 901,497 138,160 andamortizationPlus:share-based 487 4,340 9,882 1,514 1,884 15,251 2,337 compensationexpensesAdjustedcash gross 425,887 526,230 581,850 89,171 1,633,097 1,992,759 305,403 profitAdjustedcash gross 40.6 % 42.2 % 43.2 % 43.2 % 43.1 % 41.3 % 41.3 % margin Operating (244,444 ) (199,273 ) (369,244 ) (56,589 ) (757,215 ) (959,407 ) (147,035 ) expensesPlus:share-based 8,102 18,768 72,152 11,058 42,032 121,553 18,629 compensationexpensesPlus:impairmentof 52,142 - - - 52,142 - - receivablesfrom equityinvesteesPlus:impairmentof - - 81,619 12,509 - 81,619 12,509 long-livedassetsAdjustedoperating (184,200 ) (180,505 ) (215,473 ) (33,022 ) (663,041 ) (756,235 ) (115,897 ) expenses Operatingprofit 3,427 75,870 (74,819 ) (11,467 ) 182,234 116,604 17,871 (loss)Plus:depreciation 199,642 269,478 300,917 46,118 772,205 988,983 151,568 andamortizationPlus:share-based 8,589 23,108 82,034 12,572 43,916 136,804 20,966 compensationexpensesPlus:impairmentof 52,142 - - - 52,142 - - receivablesfrom equityinvesteesPlus:impairmentof - - 81,619 12,509 - 81,619 12,509 long-livedassetsAdjusted 263,800 368,456 389,751 59,732 1,050,497 1,324,010 202,914 EBITDAAdjustedEBITDA 25.2 % 29.6 % 28.9 % 28.9 % 27.7 % 27.4 % 27.4 % margin

21VIANET GROUP, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Amount in thousands of Renminbi (?RMB?) and US dollars (?US$?)) Three months ended December September December 31, 2020 31, 2019 30, 2020 RMB RMB RMB US$ (Unaudited) (Unaudited) (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIESNet (loss) profit (22,254 ) 99,771 (993,731 ) (152,297 ) Adjustments to reconcile net (loss) profit to net cash generated from operating activities:Depreciation and 199,642 269,478 300,917 46,118 amortizationStock-based 8,589 23,108 82,034 12,572 compensation expensesOthers 11,992 (60,721 ) 968,802 148,475 Changes in operatingassets and liabilitiesAccounts and notes 126,542 74,342 35,348 5,417 receivablePrepaid expenses and 2,499 438,214 (420,382 ) (64,426 ) other current assetsAccounts and notes (36,190 ) (4,676 ) (43,339 ) (6,642 ) payableAccrued expenses and (23,517 ) 8,016 (56,107 ) (8,599 ) other payablesDeferred revenue (3,391 ) (2,334 ) 11,252 1,724 Advances from 72,628 (559,680 ) 413,613 63,389 customersOthers 108,285 (75,547 ) (14,576 ) (2,234 ) Net cash generatedfrom operating 444,825 209,971 283,831 43,497 activities CASH FLOWS FROM INVESTING ACTIVITIESPurchases of property (458,230 ) (786,554 ) (772,513 ) (118,393 ) and equipmentPurchases of (6,919 ) (8,923 ) (4,932 ) (756 ) intangible assetsPayments for (136,840 ) (106,368 ) (1,522,143 ) (233,279 ) investmentsProceeds from(payments for) other 51,283 (12,626 ) (12,426 ) (1,903 ) investing activitiesNet cash used in (550,706 ) (914,471 ) (2,312,014 ) (354,331 ) investing activities CASH FLOWS FROM FINANCING ACTIVITIESProceeds fromissuance of ordinary - 2,680,706 - - sharesProceeds from bank 4,500 24,776 160,996 24,674 borrowingsRepayment of bank (13,000 ) (200,000 ) (21,500 ) (3,295 ) borrowingsPayments for finance (91,487 ) (137,982 ) (87,749 ) (13,448 ) leaseRepurchase of 2020 - (915,543 ) - - NotesPayment for sharesrepurchase and - - (130,472 ) (19,996 ) cancellationProceeds (paymentsfor) from other 21,892 (6,628 ) (86,209 ) (13,212 ) financing activitiesNet cash (used in)generated from (78,095 ) 1,445,329 (164,934 ) (25,277 ) financing activities Effect of foreignexchange rate changeson cash, cash (46,956 ) (108,885 ) (144,757 ) (22,185 ) equivalents andrestricted cashNet (decrease)increase in cash, (230,932 ) 631,944 (2,337,874 ) (358,296 ) cash equivalents andrestricted cashCash, cashequivalents and 2,588,109 4,822,367 5,454,311 835,910 restricted cash atbeginning of periodCash, cashequivalents and 2,357,177 5,454,311 3,116,437 477,614 restricted cash atend of period