IDCNOVA news: The surging wave continues.In 2018,China data center is vigorous in launching new projects and expanding established parks.The carrier neutral operators are pouring more on R&D to introduce more intelligent solutions to guarantee security and reliability,service vendors are enhancing service awareness and improving service level to bring about more convenient services,provides are becoming stricter on quality to deliver better products.
So,what’s the genuine results of China data center enterprises in 2018?Let’s observe to access insights via financial reports 2018,represented by several typical players.
Insights on financial reports 2018
Sinnet:6 billion yuan of annual revenue in 2018,cloud computing for 70%
Back on January 28,2019 Sinnet released its financial report 2018,which showed that the total revenue consisting of cloud computing and data center reached by 6 billion yuan,increasing around 50%than the previous year and the net profit of 2018 is estimated at 700 million yuan.Among its revenue 2018,cloud computing contributed around 4.2 billion yuan,accounting for about 70%.The EBITDA 2018 is estimated between 1.3 billion to 1.4 billion yuan,up 70%year-on-year.
21Vianet:annual revenue up 17.8%year-on-year
On March 5,2019,21Vianet released its financial reports the fourth quarter of 2018 and the whole year in 2018.The net revenue on hos business and related services in 2018 is 3.4 billion yuan,up 14.3%compared with last year;the gross profit increased by 11.8%,the gross profit rate is 27.8%,compared with that of 28.4%in last year;gross profit(after adjustment)increased by 21.2%and the gross profit rate(after adjustment)is 44.5%;the adjusted EBITDA increased by 36.8%and the adjusted EBITDA rate is 27.0%,compared with that of 22.5%in last year;the net cash generated from operations is 705 million yuan,increasing slightly than last year.
GDS:annual net revenue increased by 72.8%
On March 14,2019,GDS released the financial reports on the fourth quarter of 2018 and the whole year in 2018.The annual net income in 2018 is 2.79 billion yuan(406 million US dollars),increasing 72.8%year on year;service income 2.76 billion yuan(401 million US dollars),increasing 73.4%year on year;the EBITDA(after adjustment)increased by 104.3%to 1.0 billion yuan(152 million US dollars).
In 2018,GDS signed 22,000 square meters of data center space in tier-I cities in China,and 81,000 square meters in total,increased 100%compared with that of 2017.Besides,that the booming development of cloud computing,AI and fintech are driving the demand on data center market.GDS is expanding and deepening its strategic partnership with clients from cloud computing and internet industries,which are contributing crucial growth for GDS.At present,GDS is expanding broader and more diverse hyperscale clients,including mainstream cloud service providers in China data center market from home and abroad.
Athub Co.:net profit increased by 24%
On March 14,2019,Athub Co.released financial report of 2018,showed the prime operating revenue reached 910 million yuan,increasing by 74.9%year on year,and the net profit attributed to the shareholders of the parent company was 143 million yuan,increasing by 24.35 year on year,which is in conformity with the previous expectation.It’s cited that,Athub Co.achieved revenues of 213 million yuan,298 million yuan,352 million yuan,249 million yuan and 1.8 million yuan in Shanghai,Zhejiang,Hebei,Shenzhen and Beijing respectively.Among the above,Beijing and Shenzhen are newly explored markets,the revenues from Hebei and Hangzhou of Zhejiang increased by 425.2%and and 31.6%respectively.
The operating income of Athub Co.In 2018 increased greatly in 2018,which was mainly driven by the acceleration of 2A-2 cabinet power supply of Zhangbei Data Center,Xiaoshan Big Data
Operational Platform and Shenzhen Chuangyi Project Stage I coming into service and the smooth delivery on acceptance of Changshan Cloud Project.
By the end of 2018,Athub Co.was operating 15 self-constructed data centers.Besides that,Athub Co.has already gradually set foot firmly across the country and embraced new growth point by active deployment in the key areas.Athub established subsidiaries in Hangzhou of Zhejiang Province,Nantong of Jiangsu Province,Ulanqab of Inner Mongolia Autonomous Region,etc.and purchased 60%equities of Beijing Yunchuang Hutong Technology Co.,Ltd.to invest and build up a project in Fangshan District,Beijing,thus Athub supplemented resources reserve in tier-I cities and laid steady foundation for its following expansion in Beijing data center market.
Wangsu:6.3 billion annual revenue in 2018,up 18%
On March 19,2019,Wangsu released its financial report of 2018.The annual revenue in 2018 reached 6.3 billion yuan,increasing by 18%compared with that of 2017.The net profit reached 804 million yuan,decreasing by 3.2%year on year.Wangsu is planning to dispatch 0.3 yuan(tax added)per 10 shares.
Two major factors contributed to the excellent performance of Wangsu in 2018.
First,the continual growth of internet traffic pushed by apps of short video,live streaming,mobile gaming and so on.In the face of deepening and diversifying customer scenarios and demands,Wangsu is further optimizing product performance and enrich produce line via continual R&D investment.In 2018,Wangsu achieved 5.7 billion yuan of CDN operating income,up 17.3%year on year.Among that,value-added business like cloud security and cloud computing accomplished rapid growth,thus cloud computing achieved 172 million yuan of operating income and cloud security 54.5 million yuan.
Second,Wangsu explored overseas market in the past year.The overseas revenue of Wangsu reached 2.1 billion yuan,accounting for 32.4%of the total revenue and increased by 60.3%year on year.
Prospects for 2019
Bearing the overall pretty performance in 2018,how do those typical China data center enterprises cope with the following move in 2019 for better performance?Here are summarized priorities of them.
Wangsu:Unceasingly pushing CDN platform node and launch edge computing
Edge computing acts as one of the crucial strategic directions for Wangsu in the future.The coming new-gen information technologies such as 5G,IoT,AI,etc.are stimulating new and enormous market and opportunities,at the same time,also putting the traditional cloud computing source-platform pressure and bandwidth pressure as well as challenges from storage and latency,thus edge computing demand is emerging.With numerous geographically distributed nodes within its CDN platform,Wangsu is just in the place for demand on distributed network infrastructure from edge computing.Meanwhile,Wangsu is constantly advancing CDN platform node towards“physically submergence,locally coverage”and developing“supporting platform aiming at edge computing”projects.
21Vianet:strategic partnership underway and client resources come first
To maintain the strong growth,21Vianet is actively searching for land and client resources,and expanding towards other emerging tier-I cities as well as other markets.In addition,21Vianet will further deepen its strategic partnership with with leading technological companies like Red Hat,explore more solutions,enable clients with continuous expansion of business scope.Moreover,21Vianet will implement its established growth tactic to forge up its market status firmly.
Athub Co.:8 billion deal secures long-lasting development
After inking the 8 billion deal with Alibaba,Athub Co.will bind itself with Alibaba Cloud deeply in terms of business scope,which makes Athub Co.access to the growth bonus of Alibaba Cloud.The customized data center of Athub Co.enjoys high customer loyalty and access threshold,the customized operational mode of“order first,construction and operation followed”and the deeper integration with top clients like Alibaba,which guarantees the long-lasting and steady growth of Athub Co.Performance.
GDS:fundraising for future data center
As is well-known,data center industry is a heavy asset industry.Recently,GDS accomplished fundraising 600 million US dollars within 48 hours,which will fuels GDS for its future expansion in data center construction and development.GDS is attempting to focus more on data center business,achieve scale effect and take up larger market share and better its domestic deployment.
Led by those typical giants,will China data center industry continue a thriving landscape?Let’s keep watching.
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