GlobeNewswire Inc | Nov 18, 2020 04:30PM EST

November 18, 2020

BEIJING, Nov. 19, 2020 (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 third quarter ended September 30, 2020.

Third Quarter 2020 Financial and Operating Highlights

-- Total revenues increased by 64.5% to RMB467.5 million (US$68.9 million) from RMB284.1 million in the same period of 2019. -- Net loss was RMB173.7 million (US$25.6 million), compared to RMB45.7 million in the same period of 2019. -- Adjusted EBITDA increased by 143.3% to RMB228.0 million (US$33.6 million) from RMB93.7 million in the same period of 2019. Adjusted EBITDA margin expanded to 48.8%, compared to 33.0% in the same period of 2019. -- As of September 30, 2020, total data center IT capacity in service had increased to 248MW from 196MW as of June 30, 2020. -- As of September 30, 2020, total data center IT capacity under construction was 226MW.

Mr. Jing Ju, Chief Executive Officer and the founder of Chindata Group, commented, In the third quarter of 2020, we maintained our commitment towards helping leading enterprises manage their core assets and focused on providing our clients with key tasks solutions as well as developing our own core capabilities. As such, we were able to not only sustain a high growth trajectory for our hyperscale data center business, but also meet global digital industry leaders needs for data center capacity expansion in emerging markets in a speedy manner.

During the quarter, we delivered strong financial results as our total revenue grew by 11.8% quarter over quarter to RMB467.5, thus demonstrating our strong execution capability and firm commitment to our Customer First business philosophy. Mr. Dongning Wang, Chief Financial Officer of Chindata Group, commented, As we continuously enhance our full-stack service capabilities along the industry value chain, we should be able to further improve our company-wide operational efficiency. We also foresee strong demands for our customized hyperscale solutions for the rest of 2020 and beyond.

Third quarter 2020 Financial Results

TOTAL REVENUESTotal revenues in the third quarter of 2020 increased by 64.5% to RMB467.5 million (US$68.9 million) from RMB284.1 million in the same period of 2019, primarily driven by the robust growth of the Companys colocation services in the period.

COST OFREVENUESIn line with the Companys revenue growth, total cost of revenues in the third quarter of 2020 increased by 37.2% to RMB277.2 million (US$40.8 million) from RMB201.9 million in the same period of 2019, mainly driven by the increases in utility costs and depreciation and amortization expenses.

GROSS PROFITGross profit in the third quarter of 2020 increased by 131.6% to RMB190.3 million (US$28.0 million) from RMB82.2 million in the same period of 2019. Gross margin in the third quarter of 2020 expanded to 40.7% from 28.9% in the same period of 2019.

OPERATING EXPENSESTotal operating expenses in the third quarter of 2020 increased by 159.1% to RMB283.6 million (US$41.8 million) from RMB109.4 million in the same period of 2019.

-- Selling and marketing expenses in the third quarter of 2020 increased by 107.7% to RMB34.5 million (US$5.1 million) from RMB16.6 million in the same period of 2019, primarily due to more marketing activities and higher personnel costs as the Company continued to expand its business. -- General and administrative expenses in the third quarter of 2020 increased by 186.6% to RMB236.6 million (US$34.8 million) from RMB82.5 million in the same period of 2019. This increase was mainly driven by (i) higher share-based compensation expenses, which increased to RMB121.3 million (US$17.9 million) in the third quarter of 2020 from RMB45.9 million in the same period of 2019; and (ii) a one-off management consulting services fee, incurred in connection of the initial public offering, in the amount of RMB61.0 million. -- Research and development expenses in the third quarter of 2020 increased by 21.3% to RMB12.5 million (US$1.8 million) from RMB10.3 million in the same period of 2019, mostly due to higher personnel costs as the Company continued to invest in its research and development initiatives to further enhance its service offerings.

OPERATING LOSSOperating loss in the third quarter of 2020 was RMB93.2 million (US$13.7 million), compared to RMB27.3 million in the same period of 2019.

ADJUSTED EBITDAAdjusted EBITDA in the third quarter of 2020 increased by 143.3% to RMB228.0 million (US$33.6 million) from RMB93.7 million in the same period of 2019. Adjusted EBITDA is defined as net loss excluding depreciation and amortization, interest income and expenses, income tax (benefits) expenses, share-based compensation, expense related to the reorganization, management consulting service fee, 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 third quarter of 2020 was 48.8%, compared to 33.0% in the same period of 2019.

NET LOSSNet loss in the third quarter of 2020 was RMB173.7 million (US$25.6 million), compared to RMB45.7 million in the same period of 2019.

NET LOSS PER ADSBasic and diluted net loss per American Depositary Share (ADS) were RMB0.58 (US$0.08). Basic and diluted net loss per share were RMB0.29 (US$0.04). Each ADS represents two of the Companys Class A ordinary shares.

BALANCE SHEETAs of September 30, 2020, the Company had RMB3.50 billion (US$515.2 million) in cash, cash equivalents and restricted cash, compared to RMB1.12 billion as of December 31, 2019.

RECENT DEVELOPMENTOn October 2, 2020, the Company successfully completed its initial public offering (IPO) of 40,000,000 ADSs, each representing two Class A ordinary shares of the Company, at a price of US$13.50 per ADS for a total offering size of US$540 million.

On October 2, 2020, the Companys underwriters exercised their options to acquire additional 6,000,000 ADSs at the public offering price. On the same day, the Company also closed its private placement of 9,629,630, 5,925,926 and 4,444,444 Class A ordinary shares to Joyful Phoenix Limited, SCEP Master Fund, and Shiying Finance Limited, respectively.

Business OutlookFor full year 2020, the Company expects its total revenues range from RMB1,770 million to RMB1,790 million and adjusted EBITDA to range from RMB830 million to RMB850 million. These forecasts reflect the Companys 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, November 19, 2020, at 7:30 A.M. Eastern Time (or 8:30 P.M. Beijing Time on the same day) 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: 4252618Registration Link: http://apac.directeventreg.com/registration/event/4252618

The replay will be accessible through November 27, 2020, by dialing the following numbers:

United States Toll Free: +1-855-452-5696International: +61-2-8199-0299Conference ID: 4252618

A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://investor.chindatagroup.com/.

About Chindata GroupChindata 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.

Exchange Rate Information Unless otherwise stated, all translations from Renminbi into U.S. dollars were made at RMB6.7896 to US$1.00, the noon buying rate on September 30, 2020 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 StatementThis 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 Groups 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 Groups 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 Groups 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 Groups 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 Groups 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.

Use of Non-GAAP Financial Measures To supplement Chindata Groups consolidated financial results presented in accordance with U.S. GAAP, Chindata Group uses adjusted EBITDA and adjusted EBITDA 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 Companys 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 Companys 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 Companys data.

For Enquiries, Please Contact:

Ms. Joy ZhangZhuo.zhang@chindatagroup.com

Ms. Xiaolin Zhaoxiaolin.zhao@chindatagroup.com



CHINDATA GROUP HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) As of December31, As of September30, 2020 2019 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 1,038,897 3,383,027 498,266 Restricted cash 14,365 36,794 5,419 Accounts receivable, net 304,695 328,524 48,386 Value added taxes recoverable 80,715 150,921 22,228 Prepayments and other current assets 134,459 202,607 29,841 Total current assets 1,573,131 4,101,873 604,140 Non?current assets Property and equipment, net 4,404,587 5,480,468 807,186 Operating lease right-of-use assets 430,288 550,540 81,086 Finance lease right-of-use assets 155,347 147,843 21,775 Goodwill and intangible assets, net 827,069 797,311 117,431 Restricted cash 66,578 77,845 11,465 Value added taxes recoverable 247,851 311,208 45,836 Other non-current assets 66,332 157,041 23,130 Total non?current assets 6,198,052 7,522,256 1,107,909 Total assets 7,771,183 11,624,129 1,712,049 LIABILITIES AND SHAREHOLDERS? EQUITY Current liabilities Short-term bank loans and current 63,347 134,183 19,763 portion of long-term bank loansAccounts payable 959,372 817,650 120,427 Current portion of operating lease 37,767 38,284 5,639 liabilitiesCurrent portion of finance lease 5,485 4,946 728 liabilitiesAccrued expenses and other current 200,808 1,017,178 149,814 liabilities Total current liabilities 1,266,779 2,012,241 296,371 Non?current liabilities Long-term bank loans 2,692,154 3,924,398 578,001 Operating lease liabilities 217,523 209,953 30,923 Finance lease liabilities 61,161 60,200 8,867 Other non-current liabilities 296,393 428,551 63,119 Total non?current liabilities 3,267,231 4,623,102 680,910 Total liabilities 4,534,010 6,635,343 977,281 Shareholders? equity: Ordinary shares 34 38 6 Additional paid-in capital 3,512,291 5,535,666 815,315 Statutory reserves 13,908 13,908 2,048 Accumulated other comprehensive 40,011 1,373 202 incomeAccumulated deficit (329,071 ) (562,199 ) (82,803 ) Total shareholders? equity 3,237,173 4,988,786 734,768 Total liabilities and shareholders? 7,771,183 11,624,129 1,712,049 equity

CHINDATA GROUP HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) For the three months ended For the nine months ended September30, June30, September30, September30, September30, 2019 2020 2020 2019 2020 RMB RMB RMB US$ RMB RMB US$ Revenue 284,136 418,128 467,484 68,853 505,625 1,278,088 188,242 Cost of revenue (201,949 ) (251,391 ) (277,157 ) (40,821 ) (377,505 ) (771,422 ) (113,618 ) Gross profit 82,187 166,737 190,327 28,032 128,120 506,666 74,624 Operating expensesSelling andmarketing (16,602 ) (21,323 ) (34,475 ) (5,078 ) (33,082 ) (71,491 ) (10,529 )expensesGeneral andadministrative (82,535 ) (99,127 ) (236,583 ) (34,845 ) (170,249 ) (420,236 ) (61,894 )expensesResearch anddevelopment (10,314 ) (7,414 ) (12,513 ) (1,843 ) (12,721 ) (28,311 ) (4,170 )expenses Total operating (109,451 ) (127,864 ) (283,571 ) (41,766 ) (216,052 ) (520,038 ) (76,593 )expenses Operating (27,264 ) 38,873 (93,244 ) (13,734 ) (87,932 ) (13,372 ) (1,969 )(loss) incomeInterest income 1,017 2,315 6,280 925 3,890 10,299 1,517 Interest (20,613 ) (65,975 ) (60,915 ) (8,972 ) (49,936 ) (178,543 ) (26,297 )expenseForeignexchange gain 449 907 (1,293 ) (190 ) (2,089 ) (512 ) (75 )(loss)Changes in fairvalue of (990 ) (8,216 ) (9,965 ) (1,468 ) (3,263 ) (8,499 ) (1,252 )financialinstrumentsOthers, net 1,280 2,689 1,894 279 (2,629 ) 2,767 408 Loss before (46,121 ) (29,407 ) (157,243 ) (23,160 ) (141,959 ) (187,860 ) (27,668 )income taxesIncome taxbenefit 405 (15,941 ) (16,454 ) (2,423 ) 1,386 (45,268 ) (6,667 )(expense) Net loss (45,716 ) (45,348 ) (173,697 ) (25,583 ) (140,573 ) (233,128 ) (34,335 )Less: Netincomeattributable to 694 - - - 4,742 - - non?controllinginterestsNet lossattributable toChindata Group (46,410 ) (45,348 ) (173,697 ) (25,583 ) (145,315 ) (233,128 ) (34,335 )HoldingsLimited Net loss per share:Basic and (0.09 ) (0.08 ) (0.29 ) (0.04 ) (0.43 ) (0.40 ) (0.06 )dilutedOthercomprehensive(loss) income, net of tax ofnil:Foreigncurrency (11,234 ) 3,151 2,363 348 (11,156 ) (38,638 ) (5,691 )translationadjustments Comprehensive (56,950 ) (42,197 ) (171,334 ) (25,235 ) (151,729 ) (271,766 ) (40,026 )lossLess:Comprehensiveincome 694 - - - 4,742 - - attributable tonon?controllinginterestsComprehensivelossattributable to (57,644 ) (42,197 ) (171,334 ) (25,235 ) (156,471 ) (271,766 ) (40,026 )Chindata GroupHoldingsLimited

CHINDATA GROUP HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) For the three months ended For the nine months ended September30, June30, September30, September30, September30, 2019 2020 2020 2019 2020 RMB RMB RMB US$ RMB RMB US$ Net loss (45,716 ) (45,348 ) (173,697 ) (25,583 ) (140,573 ) (233,128 ) (34,335 )Depreciationand 67,201 95,932 102,319 15,070 152,378 293,743 43,264 amortizationShare-based 45,862 60,991 150,416 22,154 45,862 251,740 37,077 compensationAmortizationof debt 3,787 7,176 12,003 1,768 5,821 24,749 3,645 issuancecostOthers (1,019 ) 6,287 (8,447 ) (1,244 ) 7,930 (8,706 ) (1,282 )Changes inoperating 17,277 83,489 55,887 8,231 13,144 118,420 17,441 assets andliabilities Net cashgeneratedfrom 87,392 208,527 138,481 20,396 84,562 446,818 65,810 operatingactivities Purchases ofproperty andequipment (679,616 ) (469,114 ) (804,889 ) (118,547 ) (869,213 ) (1,606,010 ) (236,540 )andintangibleassetsPurchase ofland use (3,141 ) (10,825 ) (160,879 ) (23,695 ) (23,711 ) (194,358 ) (28,626 )rightsCash paidfor businesscombination, - - - - (1,879,040 ) - - net of cashacquiredNet cashused in (682,757 ) (479,939 ) (965,768 ) (142,242 ) (2,771,964 ) (1,800,368 ) (265,166 )investingactivities Net proceedsfrom 879,458 916,465 2,498,256 367,953 3,472,944 3,789,095 558,073 financingactivities Net cashgeneratedfrom 879,458 916,465 2,498,256 367,953 3,472,944 3,789,095 558,073 financingactivities Exchangerate effecton cash,cash (23,453 ) 236 (60,708 ) (8,942 ) (25,331 ) (57,719 ) (8,502 )equivalentsandrestrictedcash Net increasein cash,cashequivalents 260,640 645,289 1,610,261 237,165 760,211 2,377,826 350,215 andrestrictedcash Cash, cashequivalentsandrestricted 644,274 1,242,116 1,887,405 277,985 144,703 1,119,840 164,935 cash atbeginning ofperiod Cash, cashequivalentsand 904,914 1,887,405 3,497,666 515,150 904,914 3,497,666 515,150 restrictedcash at endof period

CHINDATA GROUP HOLDINGS LIMITED UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except forpercentage data) For the three months ended For the nine months ended September30, June30, September30, September30, September30, 2019 2020 2020 2019 2020 RMB RMB RMB US$ RMB RMB US$ Net loss (45,716 ) (45,348 ) (173,697 ) (25,583 ) (140,573 ) (233,128 ) (34,335 )Add:Depreciation & 68,141 96,953 103,342 15,221 153,833 296,812 43,716 Amortization^(1)Add: Interestincome & 19,596 63,660 54,635 8,047 46,046 168,244 24,780 expenseAdd: Incometax (benefit) (405 ) 15,941 16,454 2,423 (1,386 ) 45,268 6,667 expenses Add:Share-based 45,862 60,991 150,416 22,154 45,862 251,740 37,077 compensationAdd: Expensesrelated to the 2,169 - - - 36,312 - - Reorganization^(2)Add:Management 3,149 3,934 64,862 9,553 12,208 72,757 10,715 consultingservices feeAdd: Changesin fair value 990 8,216 9,965 1,468 3,263 8,499 1,252 of financialinstrumentsAdd: Foreignexchange (449 ) (907 ) 1,293 190 2,089 512 75 (gain) lossAdd: Non-cashoperatinglease cost 389 745 721 106 634 2,081 306 relating toprepaid landuse rightsAdjusted 93,726 204,185 227,991 33,579 158,288 612,785 90,253 EBITDAAdjusted 33.0 % 48.8 % 48.8 % 48.8 % 31.3 % 47.9 % 47.9 %EBITDA margin Note: (1) Before the deduction of government grants. (2) Expenses related to the Reorganization are non-recurring expenses related to the transactions in the Reorganization.