Highlights for the Full Year 2012
Net revenues in 2012 were RMB813.7 million (US$130.6 million), representing a 31.6% increase from the previous year.
Gross profit in 2012 was RMB254.3 million (US$40.8 million), up 36.9% from 2011.
Adjusted EBITDA (non-GAAP) in 2012 was RMB69.1 million (US$11.1million), a 34.9% decrease from the previous year.
Net loss from continuing operations in 2012 was RMB17.0 million (US$2.7 million), compared to a net loss from continuing operations of RMB11.5 million in 2011.
Adjusted net income (non-GAAP) was RMB3.4 million (US$0.5 million) in 2012, compared to an adjusted net income of RMB28.1 million in 2011.
"We continued to ramp our business throughout 2012. We achieved strong year-over-year growth in both revenue and gross profit, and grew our customer base more than 63%. Our bottom-line performance in the fourth quarter was impacted by accruals for bad debt provision of RMB17.1 million. We believe that by taking this charge in the fourth quarter, we will be able to help stabilize our business in the future by bringing our accounts receivables down to a more prudent level and reducing our exposure to bad debt risk," said Mr. Song Wang, Founder, Chairman and Chief Executive Officer of ChinaCache. "In the second half of 2012, we began transitioning our customer acquisition strategy to more effectively target high-quality, long-term customers for whom we can be a value-added service provider.