HomeTechnologyChindata Group Reports Second Quarter and Half Year 2022 Unaudited Financial Results

Chindata Group Reports Second Quarter and Half Year 2022 Unaudited Financial Results

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BEIJING, Aug. 25, 2022 (GLOBE NEWSWIRE) — Chindata Group Holdings Limited (“Chindata Group” or the “Company”) (Nasdaq: CD), a leading carrier-neutral hyperscale data center solution provider in Asia-Pacific emerging markets, today announced its unaudited financial results for the second quarter and half year 2022 ended June 30, 2022. To supplement the Company’s consolidated financial results presented in accordance with U.S. GAAP, Chindata Group uses adjusted EBITDA, adjusted EBITDA margin, adjusted net income and adjusted net income margin as non-GAAP financial measures, which are described further below.



Recent Financial and Operating Highlights


  • Solid growth and profitability momentum continued, upbeat results for eight straight quarters.

    Revenue in the second quarter of 2022 increased by 51.2% year over year (“YoY”) to RMB1,038.1 million. Net income in the second quarter of 2022 increased by 206.3% YoY to RMB199.6 million, with a margin of 19.2%. Adjusted EBITDA in the second quarter of 2022 increased by 60.8% YoY to RMB544.3 million, with a margin of 52.4%. The Company has been delivering upbeat revenue and adjusted EBITDA results for eight straight quarters.

  • Business continued to expand, total capacity increased by 72MW during the second quarter to reach 776MW.

    Two new under construction hyperscale projects in northern China with a total capacity of 73MW were added to our asset portfolio. One 13MW leased hyperscale project supporting a Chinese cloud service provider was put into service. Quarter end total capacity reached 776MW, representing a 34.3% YoY increase compared with 578W in the same quarter of 2021.

  • Ramp-up remained strongly on track, utilized capacity increased by 57MW to reach 401MW.

    With our clients’ healthy business performance, an additional utilized capacity of 57MW was added in the second quarter, mostly from our northern China and Malaysia campus, supporting existing clients including the anchor client, a Chinese cloud service provider and one of the key international clients. Quarter end utilized capacity reached 401MW, representing a 59.6% YoY growth. Overall utilization ratio remained healthy at 78% by end of the second quarter, compared with 69% in FY22Q1 and 70% in FY21Q2.

  • Continued to support our client’s business growth and received 32MW new commitment from our existing clients.

    Contracted capacity increased by 75MW in the second quarter, mainly contributed by Indication of Interest (“IOI”) conversion and new contract from the anchor client. A new 3MW IOI for an existing project in Yangtze River region was received to support a key international client. Total contracted and IOI capacity reached 650MW in the second quarter, representing a 31.2% YoY increase.

  • 500 million USD syndicated loan financing officially closed in June, BBB- rating reaffirmed by international rating agency.

    The Company officially closed a 500 million USD syndicated loan financing on June 24

    th

    , 2022. The facility, joined by 15 lenders, has a 3-year tenor with a 2-year extension option. On July 25

    th

    , 2022, Fitch rating reaffirmed the Company’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) and foreign-currency senior unsecured rating at ‘BBB-‘, with a stable outlook.


Management


Quote

Mr. Huapeng Wu, Chief Executive Officer of Chindata Group, commented, “Our business in China and Southeast Asia continued its solid momentum in the second quarter of 2022. Total capacity of the Company reached 776MW, which is a 72MW increase during the quarter and we have been delivering upbeat revenue results for eight straight quarters. We believe our early and ongoing layout in Asia Pacific emerging market and key regions under the “East-Data-West-Computation” in China, along with our hyperscale model that serves digital leaders and enterprise clients, constitutes the solid fundamentals for such momentum. The Company is also constantly devoting itself to pursuing growth with quality through constant innovation and research and development. As a demonstration of that, our approved and pending patents by end of the second quarter was 361, representing an increase of 51 compared with that in the first quarter of 2022.”

Mr. Dongning WANG, Chief Financial Officer of Chindata Group, commented, “Once again, we are delivering outstanding financial performance. With the firm execution of our core mission – to find the most efficient way to convert electric power to computing power – we continued to bring industry leading efficiency, sustainable scale, customized service to our top quality clients. As a result, our financials remain healthy and our momentum remained strong. Revenue in the second quarter increased by 50.5% YoY to RMB1,038.1 million, and adjusted EBITDA increased by 60.8% YoY to RMB544.3 million. We managed to keep our strong profitability as well. Our adjusted EBITDA margin managed to stay at above 50% level, while our GAAP net margin recorded a new high of 19.2% in the second quarter. Furthermore, the Company has successfully closed the $500 million syndicated loan in late June, and the reaffirmation of our investment grade credit rating by notable rating agency recently has enabled the Company to maintain its diversified financing options.”



Business Highlights


Asset Overview

  • Total Capacity. Total capacity continued to grow at a steady pace. Total capacity increased by 72MW to 776MW by the end of the second quarter of 2022, representing a 34.3% YoY growth. (vs. 704MW in FY22Q1, 578MW in FY21Q2).

    • In-service capacity. In-service capacity increased by 13MW to 511MW, representing a 41.8% YoY growth (vs. 498MW in FY22Q1, 361MW in FY21Q2), mainly contributed by CN13, a 13MW leased hyperscale project located in client’s campus in Tianjin, China supporting the business of a Chinese cloud service provider.
    • Under-construction capacity. Under-construction capacity was 265MW by the end of the second quarter of 2022 (vs.206MW in FY22Q1, 217MW in FY21Q2). Two new under-construction hyperscale project were added to the Company’s asset portfolio, including CN19, a 26MW project located in Hebei province and CN20, a 47MW project located in Shanxi province. Both projects are scheduled for delivery in 2023.
  • Contracted and IOI capacity. The Company continued to receive commitments from existing clients during the second quarter to support their growth.

    • Total contracted and IOI capacity increased by 32MW during the second quarter to reach 650MW, representing a 31.2% YoY growth (vs. 619MW in FY22Q1, 496MW in FY21Q2). Contracted capacity increased by 75MW in the second quarter, mostly contributed by conversion of a total of 45MW IOI on project CN09, CN11-C and CN14 in northern China for the anchor client, and a newly contracted 30MW on CN18 in northern China for the anchor client. With such, the aforementioned four projects turned fully contracted by end of the second quarter. An additional 3MW IOI commitment was received from one of the key international clients on the existing project CE01 in Yangtze River Delta area in China.
    • Commitment ratio remained healthy for the Company’s asset portfolio. Contracted & IOI ratio for in-service capacity was 95% by the end of the second quarter of 2022 (vs. 95% by end of FY22Q1, 91% by end of FY21Q2). Contracted & IOI ratio for total capacity was 84% by the end of the second quarter of 2022 (vs. 88% by end of FY22Q1, 86% by end of FY21Q2).
  • Utilized capacity. Ramp up remained on track during the quarter as our client continued to grow their business. Total utilized capacity increased by 57MW to 401MW, representing a 59.6% YoY growth (vs. 344MW by end of FY22Q1, 251MW by end of FY21Q2).

    • Additional utilized capacity of 57MW was contributed by projects in northern China (including Shanxi province, Hebei province, and Tianjin) and Malaysia. (CN08, CN09, CN11-B, CN11-C, MY0102, CN13, CN15), supporting our existing clients including the anchor client, a Chinese cloud service provider and one of the key international clients.
    • Utilized ratio was 78% by the end of the second quarter of 2022 (vs. 69% by the end of FY22Q1, 70% by the end of FY21Q2).


Recent Development on Business Ecosystem and Capacity Expansion

Going beyond the successful inclusion of certain diversified clients in the last two years, the Company continued its effort in leveraging its competitive strength and building up business partnership ecosystem in pursuit of improved client, geography and business model diversification and sustainable business development under the “East-Data-West-Computation” national policy. Recently on July 27

th

, 2022, the Company entered into strategic cooperation with Taiji Computer Co., LTD., one of the leading players in e-government, smart city and industrial internet in China. Through such cooperation, both parties intended to make full use of their resource advantages and to cooperate to expand services to more potential industry customers under the new national policy.

The Company also further strengthened its foothold in its existing layout in key region under the “East-Data-West-Computation” national policy. On August 19

th

, 2022, the Company entered into agreement with local government in Datong, Shanxi Province, where one of the Company’s key northern China campus is located (less than 300km away from Beijing). According to the agreement, the Company will further expand its existing capacity in the Datong campus to build up a total of over 500MW capacity going forward. Once completed, the campus is expected to become the largest IDC campus in Asia.


Syndicated Loan Financing Closed and Credit Rating Reaffirmed

The Company officially closed the 500 million USD syndicated loan financing on June 24

th

, 2022. The facility, joined by 15 lenders, has a 3-year tenor with a 2-year extension option. Meanwhile, rating agencies conducted annual review with the Company and provided updated credit opinion. On June 14

th

, Moody’s reaffirmed the Company’s Ba2 corporate family rating with a stable outlook. On July 25

th

, 2022, Fitch rating reaffirmed the Company’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) and foreign-currency senior unsecured rating at ‘BBB-‘, with a stable outlook. Quoting the remarks of Fitch, “Chindata’s ratings reflect its position as a major developer, owner and operator of hyperscale data centers, with a strong presence in China and other Asian emerging markets. Chindata’s business risk profile is characterized by high entry barriers, given the strategic location of its data centers and the mission-critical services it provides. Cash flow visibility is high, backed by long-term lease contracts with counterparties that have strong market positions”.


Recent Development on Research & Development and Innovation

On July 29

th

, 2022, the Company and its technical partner, Vertiv Technology, jointly released a waterless cooling technology. Coined “X-Cooling”, the solution enables data centers to achieve zero Water Use Efficiency (“WUE”) cooling, which is setting a new benchmark for the industry, providing a new alternative for better datacenter power and water usage efficiency under the national “East-Data-West-Computing” policy. With the integration of control and sensing technology, the solution makes cooling system capable of automatically adjusting itself to factors such as outdoors environment, workload, and various operation modes so as to run with optimized energy efficiency performance. Under its testing in the Company’s data center campus in Hebei province, China, the solution yielded a PUE performance of less than 1.1 and a WUE performance of 0, indicating a potential save of 1.2 million tons of water per year for a 100MW data center in a real world scenario, offering favorable evidence for massive application going forward. By the end of the second quarter of 2022, the Company has a total of 361 approved and pending patents, compared with 310 by end of the previous quarter and 256 by end of the same quarter in 2021.



Second Quarter and Half Year 2022 Financial Results Summary


TOTAL REVENUES

Total revenues in the second quarter of 2022 increased by 51.2% to RMB1,038.1 million (US$155.0 million) from RMB686.4 million in the same period of 2021, primarily driven by the robust growth of the Company’s colocation services.

For the first half of 2022, total revenues increased by 47.3% to RMB1,958.7 million (US$292.4 million) from RMB1,329.8 million in the same period of 2021.


COST OF REVENUE

In line with the Company’s revenue growth, total cost of revenue in the second quarter of 2022 increased by 47.7% to RMB602.2 million (US$89.9 million) from RMB407.6 million in the same period of 2021, mainly driven by increases in utility costs, and depreciation and amortization expenses.

For the first half of 2022, total cost of revenue increased by 38.7% to RMB1,101.8 million (US$164.5 million) from RMB794.5 million in the same period of 2021, mainly driven by increases in utility costs, and depreciation and amortization expenses.


GROSS PROFIT

Gross profit in the second quarter of 2022 increased by 56.4% to RMB435.9 million (US$65.1 million) from RMB278.8 million in the same period of 2021. Gross margin in the second quarter of 2022 was 42.0%, compared with 40.6% in the same period of 2021 and 45.7% in the first quarter of 2022.

For the first half of 2022, gross profit increased by 60.1% to RMB856.9 million (US$127.9 million) from RMB535.2 million in the same period of 2021. Gross margin in the first half of 2022 was 43.8%, compared to 40.2% in the same period of 2021.


OPERATING EXPENSES

Total operating expenses in the second quarter of 2022 decreased by 3.6% to RMB125.9 million (US$18.8 million) from RMB130.5 million in the same period of 2021.

For the first half of 2022, total operating expenses increased by 11.0% to RMB295.4 million (US$44.1 million) from RMB266.0 million in the same period of 2021.


  • Selling and marketing expenses

    in the second quarter of 2022 decreased by 33.5% to RMB15.4 million (US$2.3 million) from RMB23.2 million in the same period of 2021, primarily due to less share-based compensation expense and less marketing activity as the headquarter of the Company in Beijing was under work-from-home mode during the month of May due to Covid-19 related administration. For the first half of 2022, selling and marketing expenses decreased by 14.4% to RMB37.8 million (US$5.7 million) from RMB44.2 million in the same period of 2021, primarily due to less marketing activity as the headquarter of the Company in Beijing were under work-from-home mode during the month of May due to Covid-19 related administration.

  • General and administrative expenses

    in the second quarter of 2022 increased by 5.3% to RMB91.1 million (US$13.6 million) from RMB86.5 million in the same period of 2021, primarily due to higher share-based compensation expense and increased personnel cost as the Company grew its business. For the first half of 2022, general and administrative expenses increased by 19.8% to RMB218.9 million (US$32.7 million) from RMB182.7 million in the same period of 2021, primarily due to higher share-based compensation expense and increasing personnel cost as the Company grew its business.

  • Research and development expenses

    in the second quarter of 2022 decreased by 7.0% to RMB19.4 million (US$2.9 million) from RMB20.8 million in the same period of 2021. For the first half of 2022, research and development expenses decreased by 1.2% to RMB38.6 million (US$5.8 million) from RMB39.0 million in the same period of 2021.


OPERATING INCOME

As a result of the foregoing, operating income in the second quarter of 2022 increased by 109.2% to RMB310.0 million (US$46.3 million) from RMB148.2 million in the same period of 2021. Operating income margin in the second quarter of 2022 was 29.9%, compared with 21.6% in the same period of 2021 and 27.3% in the first quarter of 2022.

For the first half of 2022, operating income increased by 108.6% to RMB561.6 million (US$83.8 million) from RMB269.3 million in the same period of 2021. Operating income margin in the first half of 2022 was 28.7%, compared to 20.2% in the same period of 2021.


NET INCOME

Net income in the second quarter of 2022 increased by 206.3% to RMB199.6 million (US$29.8 million) from RMB65.1 million in the same period of 2021. Net income margin in the second quarter of 2022 was 19.2%, compared with 9.5% in the same period of 2021 and 10.3% in the first quarter of 2022.

For the first half of 2022, net income increased by 138.5% to RMB294.1 million (US$43.9 million), compared with RMB123.3 million in the same period of 2021. Net income margin in the first half of 2022 was 15.0%, compared to 9.3% in the same period of 2021.


EARNINGS PER ADS

Basic and diluted earnings per American Depositary Share (“ADS”) in the second quarter of 2022 were RMB0.54 (US$0.08). Basic and diluted earnings per share were RMB0.27 (US$0.04). Each ADS represents two of the Company’s Class A ordinary share.

For the first half of 2022, basic and diluted earnings per American Depositary Share (“ADS”) were RMB0.80 (US$0.12). Basic and diluted earnings per share were RMB0.40 (US$0.06).


ADJUSTED EBITDA

Adjusted EBITDA in the second quarter of 2022 increased by 60.8% to RMB544.3 million (US$81.3 million), from RMB338.5 million in the same period of 2021. Adjusted EBITDA is defined as net income excluding depreciation and amortization, net interest expenses, income tax expenses, share-based compensation, change in fair value of financial instruments, foreign exchange gain (loss) and non-cash operating lease cost relating to prepaid land use rights.

Adjusted EBITDA margin in the second quarter of 2022 was 52.4%, compared with 49.3% in the same period of 2021 and 53.7% in the first quarter of 2022.

For the first half of 2022, Adjusted EBITDA increased by 60.7% to RMB1,038.8 million (US$155.1 million), from RMB646.3 million in the same period of 2021. Adjusted EBITDA margin in the first half of 2022 was 53.0%, compared with 48.6% in the same period of 2021.


ADJUSTED NET INCOME

Adjusted net income in the second quarter of 2022 increased by 114.1% to RMB241.9 million (US$36.1 million), from RMB113.0 million in the same period of 2021. Adjusted net income is defined as net income excluding share-based compensation and depreciation and amortization of property and equipment and intangible assets resulting from business combination, as adjusted for the tax effects on non-GAAP adjustments.

Adjusted net income margin in the second quarter of 2022 was 23.3%, compared with 16.5% in the same period of 2021 and 19.3% in the first quarter of 2022.

For the first half of 2022, Adjusted net income increased by 88.7% to RMB419.5 million (US$62.6 million), from RMB222.3 million in the same period of 2021. Adjusted net income margin in the first half of 2022 was 21.4%, compared with 16.7% in the same period of 2021.


BALANCE SHEET

As of June 30, 2022, the Company had cash, cash equivalents and restricted cash of RMB5.8 billion (US$860.5 million), compared to cash, cash equivalents and restricted cash of RMB4.4 billion as of March 31, 2022.



2022 Full Year Business Outlook

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


TOTAL REVENUES

  • RMB4,130 million – RMB4,230 million, a 44.8-48.3% increase over full year 2021


ADJUSTED EBITDA

  • RMB2,100 million – RMB2,180 million, a 48.0-53.6% increase over full year 2021

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



Conference Call Information

The Company will hold a conference call on Thursday, August 25, 2022, at 8:00 A.M. Eastern Time (or 8:00 P.M. Beijing Time on the same day) to discuss the financial results.

In advance of the conference call, all participants must use the link provided below to complete the online registration process. Upon registering, each participant will receive a set of participant dial-in numbers and a unique access PIN, which can be used to join the conference call.

Event Title:  Chindata Group Holdings Limited Q2 2022 Earnings Call

Registration Link:

https://register.vevent.com/register/BI9ac874204bd442dea5b1cbc2f0514a5a

A live and archived webcast of the conference call will be available at the Company’s investor relations website at

https://investor.chindatagroup.com/

.



Investor Presentation and Supplemental Financial Information

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

https://investor.chindatagroup.com/

.



About Chindata Group

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

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



Use of Non-GAAP Financial Measures

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

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



Exchange Rate Information

Unless otherwise stated, all translations from Renminbi into U.S. dollars were made at RMB6.6981 to US$1.00, the noon buying rate on June 30, 2022 as set forth in the H.10 statistical release of the Federal Reserve Board. The percentages stated in this press release are calculated based on the RMB amounts.



Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident,” “potential,” “continue” or other similar expressions. Among other things, the business outlook and quotations from management in this announcement, as well as Chindata Group’s strategic and operational plans, contain forward-looking statements. Chindata Group may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about Chindata Group’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Chindata Group’s goals and strategies; its future business development, financial condition and results of operations; the expected growth and competition of the data center and IT market; its ability to generate sufficient capital or obtain additional capital to meet its future capital needs; its ability to maintain competitive advantages; its ability to keep and strengthen its relationships with major clients and attract new clients; its ability to locate and secure suitable sites for additional data centers on commercially acceptable terms; government policies and regulations relating to Chindata Group’s business or industry; general economic and business conditions in the regions where Chindata Group operates and globally and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Chindata Group’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Chindata Group undertakes no obligation to update any forward-looking statement, except as required under applicable law.



For Enquiries, Please Contact:

Chindata IR Team


[email protected]




CHINDATA


GROUP


HOLDINGS


LIMITED


UNAUDITED


CONDENSED


CONSOLIDATED


BALANCE


SHEETS


(Amount


in


thousands


of


Renminbi


(“RMB”)


and


US


dollars


(“US$”))


As of December 31,

2021

As of June 30, 2022

RMB

RMB

US$

ASSETS

Current assets
Cash and cash equivalents 4,390,293 5,043,283 752,942
Restricted cash 460,174 604,682 90,277
Accounts receivable, net 661,027 927,933 138,537
Value added taxes recoverable 327,553 393,631 58,768
Prepayments and other current assets 508,276 342,226 51,093

Total current assets

6,347,323

7,311,755

1,091,617

Non-current assets
Property and equipment, net 9,427,591 10,649,916 1,589,991
Operating lease right-of-use assets 803,544 906,657 135,360
Finance lease right-of-use assets 136,825 132,762 19,821
Goodwill and intangible assets, net 778,683 786,780 117,463
Restricted cash 390,535 115,888 17,302
Value added taxes recoverable 424,011 371,931 55,528
Other non-current assets 373,439 453,574 67,716

Total non-current assets

12,334,628

13,417,508

2,003,181

Total assets

18,681,951

20,729,263

3,094,798

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities
Short-term bank loans and current portion of long-term bank loans 1,950,525 931,121 139,013
Accounts payable 1,701,299 1,548,654 231,208
Current portion of operating lease liabilities 45,501 44,115 6,586
Current portion of finance lease liabilities 4,765 4,860 726
Accrued expenses and other current liabilities 599,257 398,344 59,471

Total current liabilities

4,301,347

2,927,094

437,004

Non-current liabilities
Long-term bank loans 3,526,460 6,529,707 974,860
Operating lease liabilities 198,806 200,950 30,001
Finance lease liabilities 57,002 56,691 8,464
Other non-current liabilities 483,704 546,770 81,631

Total non-current liabilities

4,265,972

7,334,118

1,094,956

Total liabilities

8,567,319

10,261,212

1,531,960

Shareholders’ equity:
Ordinary shares 46 46 7
Additional paid-in capital 10,646,328 10,753,458 1,605,449
Statutory reserves 189,700 189,700 28,321
Accumulated other comprehensive income (257,977 ) (305,820 ) (45,658 )
Accumulated deficit (463,465 ) (169,333 ) (25,281 )

Total shareholders’ equity

10,114,632

10,468,051

1,562,838

Total liabilities and shareholders’ equity

18,681,951

20,729,263

3,094,798




CHINDATA


GROUP


HOLDINGS


LIMITED


UNAUDITED


CONDENSED


CONSOLIDATED


STATEMENTS


OF


COMPREHENSIVE INCOME


(Amount


in


thousands


of


Renminbi (“RMB”) and US dollars (“US$”) except for per share information)


For the three months ended

For the six months ended

June 30, 2021

March 31, 2022

June 30, 2022

June 30, 2021

June 30, 2022

RMB

RMB

RMB

US$

RMB

RMB

US$

Revenue

686,398

920,608

1,038,097

154,984

1,329,780

1,958,705

292,426
Cost of revenue (407,626 ) (499,574 ) (602,182 ) (89,903 ) (794,546 ) (1,101,756 ) (164,488 )

Gross profit

278,772

421,034

435,915

65,081

535,234

856,949

127,938

Operating expenses
Selling and marketing expenses (23,213 ) (22,416 ) (15,426 ) (2,303 ) (44,198 ) (37,842 ) (5,650 )
General and administrative expenses (86,510 ) (127,838 ) (91,104 ) (13,601 ) (182,733 ) (218,942 ) (32,687 )
Research and development expenses (20,823 ) (19,214 ) (19,360 ) (2,890 ) (39,048 ) (38,574 ) (5,759 )

Total operating expenses

(130,546

)

(169,468

)

(125,890

)

(18,794

)

(265,979

)

(295,358

)

(44,096

)

Operating income

148,226

251,566

310,025

46,287

269,255

561,591

83,842
Net interest expense (55,006 ) (84,627 ) (60,518 ) (9,035 ) (112,762 ) (145,145 ) (21,670 )
Foreign exchange gain (loss) 519 (529 ) 3,667 547 582 3,138 468
Changes in fair value of financial instruments (15 ) (55 ) 10,436 1,558 12,841 10,381 1,550
Others, net 5,624 618 13,637 2,036 9,864 14,255 2,128

Income before income taxes

99,348

166,973

277,247

41,393

179,780

444,220

66,318
Income tax expense (34,199 ) (72,405 ) (77,683 ) (11,598 ) (56,431 ) (150,088 ) (22,408 )

Net income

65,149

94,568

199,564

29,795

123,349

294,132

43,910

Earnings per share:
Basic 0.09 0.13 0.27 0.04 0.17 0.40 0.06
Diluted 0.09 0.13 0.27 0.04 0.17 0.40 0.06

Other comprehensive loss, net of tax of nil:
Foreign currency translation adjustments (50,943 ) (15,433 ) (32,410 ) (4,839 ) (55,544 ) (47,843 ) (7,143 )

Comprehensive income

14,206

79,135

167,154

24,956

67,805

246,289

36,767




CHINDATA


GROUP


HOLDINGS


LIMITED


UNAUDITED


CONDENSED


CONSOLIDATED


STATEMENTS


OF


CASH


FLOWS


(Amount


in


thousands


of


Renminbi


(“RMB”)


and


US


dollars


(“US$”))


For the three months ended

For the six months ended

June 30, 2021

March 31, 2022

June 30, 2022

June 30, 2021

June 30, 2022

RMB

RMB

RMB

US$

RMB

RMB

US$

Net income

65,149

94,568

199,564

29,795

123,349

294,132

43,910
Depreciation and amortization 143,875 166,356 185,318 27,667 282,486 351,674 52,504
Share-based compensation 37,809 72,993 32,345 4,829 78,858 105,338 15,727
Amortization of debt issuance cost 6,689 40,085 11,042 1,649 14,764 51,127 7,633
Others 11,490 18,630 25,592 3,821 3,949 44,222 6,603
Changes in operating assets and liabilities 20,832 (224,385 ) 21,632 3,230 (24,192 ) (202,753 ) (30,270 )

Net cash generated from operating activities

285,844

168,247

475,493

70,991

479,214

643,740

96,107
Net cash paid for long-lived assets and business combinations (526,203 ) (1,224,885 ) (1,007,840 ) (150,467 ) (1,180,602 ) (2,232,725 ) (333,337 )
Net cash from short-term investment activities (99,998 ) 161,851 33,052 4,935 (99,998 ) 194,903 29,098

Net cash used in investing activities

(626,201

)

(1,063,034

)

(974,788

)

(145,532

)

(1,280,600

)

(2,037,822

)

(304,239

)
Net proceeds from financing activities 513,566 39,274 1,819,657 271,668 960,724 1,858,931 277,531

Net cash generated from financing activities

513,566

39,274

1,819,657

271,668

960,724

1,858,931

277,531
Exchange rate effect on cash, cash equivalents and restricted cash (65,230 ) (13,164 ) 71,166 10,623 (46,106 ) 58,002 8,661

Net increase (decrease) in cash, cash equivalents and restricted cash

107,979

(868,677

)

1,391,528

207,750

113,232

522,851

78,060
Cash, cash equivalents and restricted cash at beginning of period 6,916,716 5,241,002 4,372,325 652,771 6,911,463 5,241,002 782,461

Cash, cash equivalents and restricted cash at end of period

7,024,695

4,372,325

5,763,853

860,521

7,024,695

5,763,853

860,521




CHINDATA


GROUP


HOLDINGS


LIMITED


UNAUDITED


RECONCILIATIONS


OF


GAAP


AND


NON-GAAP


RESULTS


(Amount


in


thousands


of


Renminbi


(“RMB”)


and


US


dollars


(“US$”) except


for


percentage


data)


For the three months ended

For the six months ended

June 30, 2021

March 31, 2022

June 30, 2022

June 30, 2021

June 30, 2022

RMB

RMB

RMB

US$

RMB

RMB

US$

Net income

65,149

94,568

199,564

29,795

123,349

294,132

43,910
Add: Depreciation and amortization

(1)
145,881 168,363 187,324 27,967 286,499 355,687 53,103
Add: Net interest expenses 55,006 84,627 60,518 9,035 112,762 145,145 21,670
Add: Income tax expenses 34,199 72,405 77,683 11,598 56,431 150,088 22,408
Add: Share-based compensation 37,809 72,993 32,345 4,829 78,858 105,338 15,727
Add: Changes in fair value of financial instruments 15 55 (10,436 ) (1,558 ) (12,841 ) (10,381 ) (1,550 )
Add: Foreign exchange (gain) loss (519 ) 529 (3,667 ) (547 ) (582 ) (3,138 ) (468 )
Add: Non-cash operating lease cost relating to prepaid land use rights 949 959 959 143 1,785 1,918 286

Adjusted EBITDA

338,489

494,499

544,290

81,262

646,261

1,038,789

155,086

Net income margin

9.5

%

10.3

%

19.2

%

19.2

%

9.3

%

15.0

%

15.0

%

Adjusted EBITDA margin

49.3

%

53.7

%

52.4

%

52.4

%

48.6

%

53.0

%

53.0

%

Note:
(1) Before the deduction of government grants.


For the three months ended

For the six months ended

June 30, 2021

March 31, 2022

June 30, 2022

June 30, 2021

June 30, 2022

RMB

RMB

RMB

US$

RMB

RMB

US$

Net income

65,149

94,568

199,564

29,795

123,349

294,132

43,910
Add: Depreciation and amortization of property and equipment

and intangible assets resulting from business combination

(1)
12,253 12,170 12,240 1,827 24,535 24,410 3,644
Add: Share-based compensation 37,809 72,993 32,345 4,829 78,858 105,338 15,727
Add: Tax effects on non-GAAP adjustments

(2)
(2,214 ) (2,194 ) (2,210 ) (330 ) (4,435 ) (4,404 ) (657 )

Adjusted Net Income

112,997

177,537

241,939

36,121

222,307

419,476

62,624

Net income margin

9.5

%

10.3

%

19.2

%

19.2

%

9.3

%

15.0

%

15.0

%

Adjusted Net Income margin

16.5

%

19.3

%

23.3

%

23.3

%

16.7

%

21.4

%

21.4

%

Note:
(1) Consists of expenses resulting from the depreciation and amortization of the fair value adjustment on property and equipment and intangible assets resulting from business combination. While we exclude such expenses in this non-GAAP measure, the revenue from the acquired companies is reflected in this non-GAAP measure and the acquired assets contribute to revenue generation.
(2) Tax effects on non-GAAP adjustments primarily comprised of tax effects relating to depreciation and amortization of property and equipment and intangible assets resulting from business combination.

Chindata Group Reports Second Quarter and Half Year 2022 Unaudited Financial Results

Featured image: Megapixl © Alexandersikov

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