VNET Group, Inc 6-K, filed May 29, 2024

VNET Group, Inc. (VNET)

6-K 2024-05-29 For: 2024-05-29

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Added on April 12, 2026

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VNET Group, Inc filed this 6-K on May 29, 2024.

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	VNET Group, Inc.

	By:	/s/ Qiyu Wang
	Name:	Qiyu Wang
	Title:	Chief Financial Officer

Date: May 29, 2024

Exhibit		Description

99.1		Press release tilted “VNET Reports Unaudited First Quarter 2024 Financial Results”

	As of			As of
	December 31, 2023			March 31, 2024
	RMB			RMB			US$
Assets
Current assets:
Cash and cash equivalents		2,243,537			1,782,732			246,906
Restricted cash		2,854,568			306,312			42,424
Accounts and notes receivable, net		1,715,975			1,948,129			269,813
Short-term Investments		356,820			-			-
Prepaid expenses and other current assets		2,375,341			2,481,588			343,695
Amounts due from related parties		277,237			317,717			44,003
Total current assets		9,823,478			6,836,478			946,841

Non-current assets:
Property and equipment, net		13,024,393			13,778,444			1,908,292
Intangible assets, net		1,383,406			1,361,055			188,504
Land use rights, net		602,503			597,906			82,809
Operating lease right-of-use assets, net		4,012,329			4,042,957			559,943
Restricted cash		882			882			122
Deferred tax assets, net		247,644			254,358			35,228
Long-term investments, net		757,949			760,552			105,335
Other non-current assets		533,319			516,582			71,546
Total non-current assets		20,562,425			21,312,736			2,951,779
Total assets		30,385,903			28,149,214			3,898,620

Liabilities and Shareholders' Equity
Current liabilities:
Short-term bank borrowings		30,000			477,749			66,167
Accounts and notes payable		696,177			773,845			107,176
Accrued expenses and other payables		2,783,102			2,928,158			405,545
Advances from customers		1,605,247			1,594,157			220,788
Deferred revenue		95,477			101,103			14,003
Income taxes payable		35,197			54,071			7,489
Amounts due to related parties		356,080			381,524			52,840
Current portion of long-term borrowings		723,325			845,831			117,146
Current portion of finance lease liabilities		115,806			95,668			13,250
Current portion of deferred government grants		8,062			11,328			1,569
Current portion of operating lease liabilities		780,164			821,000			113,707
Convertible promissory notes		4,208,495			-			-
Total current liabilities		11,437,132			8,084,434			1,119,680

Non-current liabilities:
Long-term borrowings		5,113,521			6,266,916			867,958
Convertible promissory notes		1,769,946			1,773,055			245,565
Non-current portion of finance lease liabilities		1,159,525			1,147,268			158,895
Unrecognized tax benefits		98,457			98,457			13,636
Deferred tax liabilities		688,362			693,898			96,104
Deferred government grants		145,112			143,862			19,925
Non-current portion of operating lease liabilities		3,270,759			3,292,955			456,069
Derivative liability		188,706			185,180			25,647
Total non-current liabilities		12,434,388			13,601,591			1,883,799

Shareholders' equity
Ordinary shares		107			109			15
Additional paid-in capital		17,291,312			17,403,894			2,410,411
Accumulated other comprehensive loss		(14,343	)		(20,623	)		(2,856	)
Statutory reserves		80,615			80,615			11,165
Accumulated deficit		(11,016,323	)		(11,203,328	)		(1,551,643	)
Treasury stock		(326,953	)		(325,425	)		(45,071	)
Total VNET Group,Inc. shareholders’ equity		6,014,415			5,935,242			822,021
Noncontrolling interest		499,968			527,947			73,120
Total shareholders' equity		6,514,383			6,463,189			895,141
Total liabilities and shareholders' equity		30,385,903			28,149,214			3,898,620

	Three months ended
	March 31, 2023			December 31, 2023			March 31, 2024
	RMB			RMB			RMB			US$
Net revenues		1,805,782			1,898,480			1,898,126			262,887
Cost of revenues		(1,453,402	)		(1,607,602	)		(1,487,405	)		(206,003	)
Gross profit		352,380			290,878			410,721			56,884

Operating income (expenses)
Operating income		33,379			32,293			3,949			547
Sales and marketing expenses		(65,776	)		(73,286	)		(71,743	)		(9,936	)
Research and development expenses		(79,750	)		(80,671	)		(75,389	)		(10,441	)
General and administrative expenses		(127,447	)		(148,455	)		(226,297	)		(31,342	)
Reversal of (allowance for) doubtful debt		2,449			(361,471	)		5,175			717
Impairment of long-lived assets		-			(506,686	)		-			-
Impairment of goodwill		-			(1,364,191	)		-			-
Total operating expenses		(237,145	)		(2,502,467	)		(364,305	)		(50,455	)

Operating profit (loss)		115,235			(2,211,589	)		46,416			6,429
Interest income		5,681			13,196			12,129			1,680
Interest expense		(69,786	)		(78,877	)		(137,682	)		(19,069	)
Impairment of long-term investments		-			(51	)		-			-
Other income		1,164			4,452			4,814			667
Other expenses		(3,592	)		(1,199	)		(1,422	)		(197	)
Changes in the fair value of financial liabilities		21,298			(187,648	)		3,858			534
Foreign exchange gain (loss)		78,633			89,426			(28,361	)		(3,928	)
Income (loss) before income taxes and (loss) gain from equity method investments		148,633			(2,372,290	)		(100,248	)		(13,884	)
Income tax expenses		(44,886	)		(50,626	)		(61,384	)		(8,502	)
(Loss) gain from equity method investments		(174	)		(372	)		2,606			361
Net income (loss)		103,573			(2,423,288	)		(159,026	)		(22,025	)
Net profit attributable to noncontrolling interest		(21,280	)		(19,500	)		(27,979	)		(3,875	)
Net income (loss) attributable to the VNET Group,Inc.		82,293			(2,442,788	)		(187,005	)		(25,900	)

Earning (loss) per share
Basic		0.09			(2.65	)		(0.12	)		(0.02	)
Diluted		0.07			(2.65	)		(0.12	)		(0.02	)
Shares used in earnings (loss) per share computation
Basic*		888,383,240			923,034,050			1,568,300,360			1,568,300,360
Diluted*		1,056,829,494			923,034,050			1,568,300,360			1,568,300,360

Earnings (loss) per ADS (6 ordinary shares equal to 1 ADS)
Basic		0.54			(15.88	)		(0.72	)		(0.12	)
Diluted		0.42			(15.88	)		(0.72	)		(0.12	)

		Three months ended
	March 31, 2023			December 31, 2023			March 31, 2024
	RMB			RMB			RMB			US$
Gross profit		352,380			290,878			410,721			56,884
Plus: depreciation and amortization		401,877			450,859			352,604			48,835
Plus: share-based compensation expenses		-			-			2,190.00			303
Adjusted cash gross profit		754,257			741,737			765,515			106,022
Adjusted cash gross margin		41.8	%		39.1	%		40.3	%		40.3	%

Operating expenses		(237,145	)		(2,502,467	)		(364,305	)		(50,456	)
Plus: share-based compensation expenses		8,336			9,479			111,681			15,468
Plus: allowance of loan receivables		-			287,900			-			-
Plus: impairment of long-lived assets		-			506,686			-			-
Plus: impairment of goodwill		-			1,364,191			-			-
Adjusted operating expenses		(228,809	)		(334,211	)		(252,624	)		(34,988	)

Operating (loss) profit		115,235			(2,211,589	)		46,416			6,429
Plus: depreciation and amortization		432,629			483,579			379,551			52,567
Plus: share-based compensation expenses		8,336			9,479			113,871			15,771
Plus: allowance of loan receivable		-			287,900			-			-
Plus: impairment of long-lived assets		-			506,686			-			-
Plus: impairment of goodwill		-			1,364,191			-			-
Adjusted EBITDA		556,200			440,246			539,838			74,767
Adjusted EBITDA margin		30.8	%		23.2	%		28.4	%		28.4	%

	Three months ended
	March 31, 2023			December 31, 2023			March 31, 2024
	RMB			RMB			RMB			US$
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)		103,573			(2,423,288	)		(159,026	)		(22,025	)
Adjustments to reconcile net income (loss) to net cash generated from operating activities:
Depreciation and amortization		431,654			481,067			377,086			52,226
Share-based compensation expenses		8,336			9,479			113,871			15,771
Others		62,631			2,333,785			137,297			19,015
Changes in operating assets and liabilities
Accounts and notes receivable		(254,293	)		311,035			(226,973	)		(31,435	)
Prepaid expenses and other current assets		(378,933	)		(9,076	)		(44,104	)		(6,108	)
Accounts and notes payable		(3,377	)		(76,250	)		77,668			10,757
Accrued expenses and other payables		192,063			68,523			56,105			7,770
Deferred revenue		24,139			(24,005	)		5,626			779
Advances from customers		405,945			31,500			(11,090	)		(1,536	)
Others		(136,727	)		27,910			(58,873	)		(8,154	)
Net cash generated from operating activities		455,011			730,680			267,587			37,060

CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(608,717	)		(1,017,474	)		(1,005,368	)		(139,242	)
Purchases of intangible assets		(2,312	)		(20,188	)		(5,965	)		(826	)
(Payments for) proceeds from investments		-			(346,056	)		359,239			49,754
(Payments for) proceeds from other investing activities		(90,489	)		(18,217	)		1,154			160
Net cash used in investing activities		(701,518	)		(1,401,935	)		(650,940	)		(90,154	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings		279,916			638,706			1,156,279			160,143
Repayments of borrowings		(73,070	)		(85,640	)		(51,441	)		(7,124	)
Proceeds from issuance of ordinary shares		-			2,122,123			-			-
Repurchase of 2026 Convertible Notes		-			-			(4,262,340	)		(590,327	)
Payment for finance leases		(84,882	)		(28,482	)		(39,602	)		(5,485	)
Proceeds from other financing activities		395,096			110,967			591,446			81,914
Net cash generated from (used in) financing activities		517,060			2,757,674			(2,605,658	)		(360,879	)

Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		(17,205	)		(11,645	)		(20,050	)		(2,777	)
Net increase (decrease) in cash, cash equivalents and restricted cash		253,348			2,074,774			(3,009,061	)		(416,750	)
Cash, cash equivalents and restricted cash at beginning of period		2,989,494			3,024,214			5,098,987			706,202
Cash, cash equivalents and restricted cash at end of period		3,242,842			5,098,988			2,089,926			289,452