2023 Q4 Form 20-F Financial Statement

#000110465924052273 Filed on April 26, 2024

View on sec.gov

Income Statement

Concept 2023 Q4 2023
Revenue $1.898B $7.413B
YoY Change 0.95% 4.92%
Cost Of Revenue $1.608B $6.120B
YoY Change 3.56% 7.24%
Gross Profit $290.9M $182.0M
YoY Change -11.42% -86.6%
Gross Profit Margin 15.32% 2.46%
Selling, General & Admin $583.2M $113.8M
YoY Change 112.41% -88.51%
% of Gross Profit 200.5% 62.52%
Research & Development $80.67M $45.38M
YoY Change -4.12% -85.21%
% of Gross Profit 27.73% 24.93%
Depreciation & Amortization $481.0M $254.6M
YoY Change 7.02% 10.01%
% of Gross Profit 165.37% 139.84%
Operating Expenses $631.6M $159.2M
YoY Change 82.67% -87.13%
Operating Profit -$340.7M -$277.6M
YoY Change 1861.38% -329.12%
Interest Expense -$163.9M $312.2M
YoY Change 593.65% -142.05%
% of Operating Profit
Other Income/Expense, Net $3.253M $11.26M
YoY Change -120.98% -221.43%
Pretax Income -$2.372B -$2.483B
YoY Change 4098.15% 293.81%
Income Tax $50.63M $114.4M
% Of Pretax Income
Net Earnings -$2.443B -$2.644B
YoY Change 3702.36% 240.72%
Net Earnings / Revenue -128.67% -35.67%
Basic Earnings Per Share -$2.93
Diluted Earnings Per Share -$2.60 -$2.93
COMMON SHARES
Basic Shares Outstanding 901.1M
Diluted Shares Outstanding 901.1M

Balance Sheet

Concept 2023 Q4 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $2.600B $2.600B
YoY Change -2.29% -2.29%
Cash & Equivalents $316.0M $2.244B
Short-Term Investments $356.8M $356.8M
Other Short-Term Assets $5.230B $4.322B
YoY Change 111.29% 74.63%
Inventory
Prepaid Expenses $1.345B
Receivables $1.716B $1.716B
Other Receivables $277.2M $1.185B
Total Short-Term Assets $1.384B $9.823B
YoY Change -80.38% 39.3%
LONG-TERM ASSETS
Property, Plant & Equipment $13.02B $17.04B
YoY Change -15.8% 10.14%
Goodwill
YoY Change
Intangibles $1.383B
YoY Change 537.33%
Long-Term Investments $738.1M $757.9M
YoY Change 204.77% 212.95%
Other Assets $75.12M $1.384B
YoY Change -94.33% 4.54%
Total Long-Term Assets $2.896B $20.56B
YoY Change -85.44% 3.35%
TOTAL ASSETS
Total Short-Term Assets $1.384B $9.823B
Total Long-Term Assets $2.896B $20.56B
Total Assets $4.280B $30.39B
YoY Change -84.12% 12.76%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $696.2M $696.2M
YoY Change -2.45% -2.45%
Accrued Expenses $3.563B $1.662B
YoY Change 15.51% -46.13%
Deferred Revenue $95.48M
YoY Change 592.62%
Short-Term Debt $30.00M $30.00M
YoY Change
Long-Term Debt Due $753.3M $5.048B
YoY Change -38.66% 311.03%
Total Short-Term Liabilities $1.611B $11.44B
YoY Change -74.56% 80.62%
LONG-TERM LIABILITIES
Long-Term Debt $8.043B $8.043B
YoY Change -19.22% -19.22%
Other Long-Term Liabilities $3.703B $3.703B
YoY Change 23.64% 23.64%
Total Long-Term Liabilities $1.751B $11.75B
YoY Change -86.48% -9.31%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.611B $11.44B
Total Long-Term Liabilities $1.751B $11.75B
Total Liabilities $3.362B $24.37B
YoY Change -83.47% 19.83%
SHAREHOLDERS EQUITY
Retained Earnings -$1.552B
YoY Change 27.86%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $847.1M $6.014B
YoY Change
Total Liabilities & Shareholders Equity $4.280B $30.39B
YoY Change -84.12% 12.76%

Cashflow Statement

Concept 2023 Q4 2023
OPERATING ACTIVITIES
Net Income -$2.443B -$2.644B
YoY Change 3702.36% 240.72%
Depreciation, Depletion And Amortization $481.0M $254.6M
YoY Change 7.02% 10.01%
Cash From Operating Activities $730.7M $290.6M
YoY Change 28.29% -17.85%
INVESTING ACTIVITIES
Capital Expenditures $1.080B $418.0M
YoY Change 17.95% -3.77%
Acquisitions
YoY Change
Other Investing Activities -$322.0M -$844.5M
YoY Change -22.93% 84.13%
Cash From Investing Activities -$1.402B -$550.0M
YoY Change 5.14% 6.58%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $298.9M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.758B 555.1M
YoY Change 24944.36% 66.6%
NET CHANGE
Cash From Operating Activities 730.7M 290.6M
Cash From Investing Activities -1.402B -550.0M
Cash From Financing Activities 2.758B 555.1M
Net Change In Cash 2.086B 297.1M
YoY Change -377.15% 59.97%
FREE CASH FLOW
Cash From Operating Activities $730.7M $290.6M
Capital Expenditures $1.080B $418.0M
Free Cash Flow -$349.2M -$127.3M
YoY Change 0.93% 58.11%

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CY2023 us-gaap Use Of Estimates
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;margin:0pt 0pt 12pt 18pt;"><span style="font-style:italic;">(c)   Use of estimates</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;margin:0pt 0pt 10pt 18pt;"><span style="font-weight:normal;">The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Significant estimates and assumptions reflected in the Company’s financial statements include, but are not limited to, determining the valuation allowance for deferred tax assets, the fair value of convertible promissory notes and derivative liability, the fair value of assets acquired and liabilities assumed in acquisitions, the recoverability of long-lived assets, the fair values of asset groups, the fair value of a reporting unit, the estimated useful lives of property and equipment, and intangible assets, and incremental borrowing rate of leases. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the consolidated financial statements. </span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:0pt;margin:0pt 0pt 12pt 18pt;">The Company regularly assesses the estimated useful lives of its property and equipment, and intangible assets. In January 2024, the Company, with the assistance of an external appraisal firm, completed an assessment of the useful lives of certain data center property and equipment and revised the estimated useful lives from a range of <span style="-sec-ix-hidden:Hidden_AjTVotwM5UC7XsmSnNklhg;"><span style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:normal;font-weight:normal;">2</span></span> to 10 years, to <span style="-sec-ix-hidden:Hidden_YjirWF4DKkiD3wlY1_U7BA;"><span style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:normal;font-weight:normal;">3</span></span> to <span style="-sec-ix-hidden:Hidden_9EKrbHQaHEeh1ITqbi9qVw;"><span style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:normal;font-weight:normal;">15</span></span> years, based on an analysis of the property and equipment’s current use, historical age patterns, and industry trends and practices. This change in estimated useful lives will be accounted for as a change in accounting estimate, prospectively beginning in fiscal year 2024. Based on the carrying amounts of relevant data center property and equipment as of December 31, 2023, the Company expected the effect of this change in estimate to be a reduction in depreciation expense of approximately RMB409 million for the year ending December 31, 2024. </p>
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