VNET GROUP INC Stock Price, News & Analysis

21Vianet Group, Inc. (VNET) reported a strong Q3 2020, with net revenues increasing by 27% to RMB1.25 billion (US$183.5 million). Adjusted cash gross profit rose by 32.6% to RMB526.2 million (US$77.5 million), resulting in a gross margin of 42.2%. Adjusted EBITDA also grew by 35.2% to RMB368.5 million (US$54.3 million). The company improved its operational metrics, adding 7,426 cabinets to reach 51,476 total. For Q4 2020, VNET expects revenues of RMB1.32 billion to RMB1.34 billion, reflecting ongoing demand for its data center services amidst a strong growth outlook.

21Vianet Group, Inc. (Nasdaq: VNET) will announce its third quarter 2020 financial results on November 24, 2020, after market close, followed by a conference call at 8:00 P.M. ET. Participants must register online to receive call details. A replay of the call will be available until December 2, 2020. 21Vianet is a leading Internet data center services provider in China, offering various hosting and cloud services to nearly 5,000 customers across different sectors. The company operates in over 20 cities in China, ensuring reliable Internet infrastructure for its clients.

21Vianet Group, a leading data center services provider in China, has announced significant leadership changes aimed at driving growth. The Board of Directors has appointed three executives as Chief Executive Officers for different business units: Samuel Shen as Group CEO, Alvin Wang as Wholesale IDC CEO, and Chunfeng Cai as Retail IDC CEO. Effective January 1, 2021, this restructuring is intended to leverage cross-functional expertise to support the company’s three-year growth strategy in the wholesale and retail markets.

21Vianet Group announced that underwriters exercised their option to purchase an additional 2,550,000 American depositary shares (ADSs) at US$20.75 each from its follow-on offering, raising about US$390.5 million. The company plans to allocate approximately 80% of the net proceeds for expanding its data center infrastructure through organic growth and acquisitions, with the remainder for R&D and corporate purposes, including debt repayment. This offering follows its shelf registration statement filed with the SEC.

21Vianet Group, Inc. (Nasdaq: VNET) has announced the pricing of a follow-on offering of 17 million American depositary shares (ADSs) at $20.75 each, expected to close on August 28, 2020. The company plans to use approximately 80% of the net proceeds to expand its data center infrastructure through organic growth and acquisitions, with the remainder allocated for research, development, and debt repayment. The offering includes a 30-day option for underwriters to purchase an additional 2.55 million ADSs.

21Vianet Group, Inc. (Nasdaq: VNET) announced plans to offer 17 million American depositary shares (ADSs) in an underwritten public offering, with an option for underwriters to purchase an additional 2.55 million ADSs.

Approximately 80% of net proceeds will be allocated for expanding data center infrastructure and the remainder for research, development, and debt repayment. The offering is made under the company's effective shelf registration statement filed with the SEC. Credit Suisse, Morgan Stanley, and Jefferies are leading the offering.

21Vianet Group (VNET) reported a 28.8% increase in net revenues for Q2 2020, totaling RMB1.14 billion (US$161.9 million), driven by rising demand for IDC services. Adjusted cash gross profit grew by 15.8% to RMB467.6 million (US$66.2 million). However, the adjusted cash gross margin decreased to 40.9% from 45.5% year-over-year. The company reported a significant net loss of RMB2.12 billion (US$300.5 million), mainly due to non-cash losses linked to convertible notes. For Q3 2020, net revenues are expected between RMB1,230 million and RMB1,250 million.

21Vianet Group, Inc. (Nasdaq: VNET) announced that Tim Chen will join as Chief Strategy Officer in August 2020. With over 20 years in finance and experience at Morgan Stanley and J.P. Morgan, Chen aims to enhance the company's international mergers, acquisitions, and investor relations. His appointment is expected to drive growth in 21Vianet’s dual-core strategy for retail and wholesale data center services. Recent investments include US$150 million from Blackstone and US$200 million from Goldman Sachs, aiding the company's expansion in China's data center market.

On June 22, 2020, 21Vianet Group, Inc. (Nasdaq: VNET) announced a strategic investment of US$150 million from Blackstone, a leading global investment firm. This partnership aims to strengthen 21Vianet's balance sheet, enabling growth in the rapidly expanding wholesale and enterprise data center markets in China. The investment involves subscribing to newly issued Series A perpetual preferred shares convertible into American Depositary Shares at a premium. 21Vianet plans to use the funds for capital expenditures to bolster its position in the data center sector.