Chinacache Intl (CCIH) research, news, and more from GeoInvesting

Company description

Fri, 17 Sep 2010 04:00:00 GMT

We are the leading provider of Internet content and application delivery services in China. We provide a portfolio of services and solutions to businesses, government agencies and other enterprises to enhance the reliability and scalability of their online services and applications and improve end-user experience. Our nationwide service platform, which consists of our network, servers and intelligent software, is designed to handle planned and unplanned peaks without significant upfront and ongoing capital outlay and other investments on the part of our customers.

We began providing content and application delivery services in China in 2000 and were the first company that is not a telecommunications carrier to obtain from the Ministry of Industry and Information Technology of China a nationwide operating permit to provide content and application delivery services. As an early mover, we have expanded our business alongside the growth of the Internet in China and have acquired extensive local knowledge about the Internet infrastructure and telecommunications environment in China. Substantially all of our business operations are conducted in China and substantially all of our revenues are derived from sales in China. Building on our knowledge and experience, we have developed a portfolio of services and solutions designed to address complex and unique issues arising from China's Internet infrastructure and a wide range of turnkey solutions to meet customer and industry specific needs.

Comments & Business Outlook

Mon, 29 Apr 2013 04:00:00 GMT

BEIJING, April 29, 2013 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd. ("ChinaCache" or the "Company") (Nasdaq:CCIH), the leading total solutions provider of Internet content and application delivery services in China, today issued a letter to the Company's shareholders from Mr. Song Wang, Founder, Chairman and Chief Executive Officer of ChinaCache. In the letter, Mr. Wang commented on ChinaCache's 2012 full year performance, key trends in its target markets and the Company's outlook for 2013.

Dear Shareholders,

2012 was a year of strategic repositioning and progress for ChinaCache. Thanks to our high-quality customer wins, our annual revenue grew more than 30% to a record RMB 813.7 million, our gross margin increased 120 basis points over 2011 to 31.2%, while our overall customer count grew more than 63% in 2012 to 1,265, compared with 775 at the end of 2011.

This focus on sustainable, high-quality customers and comprehensive, value-added solutions has helped change the way ChinaCache is perceived within the industry, both in China and abroad. We are building upon our leadership position in the CDN space and introducing new services to meet the needs of customers in multiple segments.

We entered 2013 well positioned for a year of growth and success as a result of favorable trends in China's Internet industry and our targeted end markets, as well as a series of strategic initiatives we undertook throughout last year that are having a lasting, positive effect on our business.

With that, I would like to share with you some of the highlights of 2012 and how they position ChinaCache for future growth.

In the third quarter of 2012, we initiated the strategic reorganization of our sales force. During this process, we took steps to re-align our sales team to better support our strategy of pursuing higher quality revenue opportunities. We now have four sales units, including teams focused on Internet companies, enterprises and telecom operators, and a fourth team that is targeting small to medium customers and government agencies. This structure enables us to deliver solutions and products designed specifically for the distinct needs of each vertical, and I am pleased with the progress we have made as well as the initial results of this transition.

As a result of these initiatives, we won business with a number of renowned companies including China Eastern Airlines, Air China, Hainan Airlines and Air France, financial institutions such as China Everbright Bank and China UnionPay, leading Android app store gfan.com and global brands such as Cartier and Hermes, just to name a few. I believe that these high-profile customer wins clearly demonstrate the strength and potential of our new industry-focused sales approach.

Looking at the industry in which ChinaCache operates, I believe that we are in the right market, with the right product at the right time. The majority of the world's population has some way of connecting to the Internet, whether it is through a desktop PC, mobile handset or other device. The online population is growing every day, and ChinaCache is poised to benefit from this rapid growth.

According to Gartner estimates, the number of smart phones will grow to 1.8 billion units globally by the end of 2013, surpassing the 1.7 billion PCs in use to make handsets the world's preeminent Internet devices. In China, according to iResearch, the number of mobile Internet users will reach 710 million around 2015, surpassing desktop Internet users. There is a tremendous need to improve the speed, reliability and safety of users' Internet connections both in China and internationally, and this need is creating a significant, unmet demand for solutions such as ours.

I believe that we are leveraging our industry-leading technology and R&D capabilities to capture this large, growing market opportunity for both fixed line and mobile Internet applications. Since late 2011, we have been aggressively promoting our proprietary Content-aware Network Services, which we see as the next phase in the evolution of CDN technology. While legacy CDN technology was designed to support fixed-line networks with content consumed mainly on the desktop, we have built upon this core function to create a solution that is network-aware, device-aware and application-aware, and capable of optimizing content for any situation.

Network-aware enables us to determine the type of network through which specific online content is traveling, whether it is a fixed line or mobile network, and even whether it is a 2G, 3G or 4G mobile network.
Our device-aware capabilities allow us to identify each end-user's device and optimize data accordingly. We determine whether a user is accessing data on an iOS, Android or other device, and transmit the data in a way that maximizes user experience on that particular device, without straining the network.
Our application-aware technology allows us to provide network services tailored to specific applications such as e-commerce or online video, which require different capabilities and resources than static content.

In short, we are able to provide the best end-to-end solutions for our customers and their end-users regardless of the network, the device or the application, and we believe this is the right approach to address the needs of China's rapidly developing Internet market. According to the China Internet Networks Information Center, the number of Internet users in China reached 538 million by the end of June 2012, increasing 11% in the first half of 2012, with Internet penetration growing to 39.9%.

Building upon our Content-aware Network Services, we have introduced enhanced services such as our CC Index platform, which identifies bottlenecks in Internet networks and provides real-time data as well as a comprehensive quarterly report on network status and Internet statistics throughout China. Our Intelligent Traffic Reduction, or ITR technology, helps optimize bandwidth utilization efficiency, and Cloud Extension Solutions leverages our cloud computing capabilities to improve end-user experience.

Our business is not only growing in China, but we are also expanding our international footprint. In 2012, we established a subsidiary in Hong Kong, which serves the Southeast Asia market alongside our U.S. office and led to strategic partnerships with Hutchison Global Communications, SmarTone, Telecom Malaysia and others. With our technology currently covering parts of Asia, North America, Western Europe, the Middle East and North Africa, we are positioning ourselves as an international player and serve as a gateway for companies who do business in China or for Chinese companies who expand overseas.

By focusing on execution, with an eye toward developing great technology and network services, we will continue to enhance Internet quality to benefit more Internet users. Thanks to our Content-Aware Network Services, which provide speedy, secure and intelligent mobile and fixed-line Internet solutions, we believe that we have tremendous opportunities ahead of us and we can create significant value for our shareholders and partners over the long term.

In 2013, we are celebrating the Company's 15th anniversary. I always believe that our greatest asset is the people who work for us and I am truly proud of them. Going forward, we will continue to invest in the future and work to increase CDN penetration rates in China. We remain confident in our ability to maintain our leadership in technology, market share and influence in this industry, and we thank you for your continued support.

Sincerely,

Song Wang

Founder, Chairman and Chief Executive Officer

Joint Venture

Mon, 22 Apr 2013 04:00:00 GMT

BEIJING, April 22, 2013 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd. ("ChinaCache" or the "Company") (Nasdaq:CCIH), the leading total solutions provider of Internet content and application delivery services in China, today announced that it has established a strategic partnership with China Tietong Telecommunications Corporation ("China Tietong"), a wholly-owned subsidiary of China Mobile Communications Corporation and the third largest fixed-line Internet service provider in China.

Under the partnership, the two parties will join efforts to develop a content delivery network in China for China Tietong. ChinaCache will leverage its technical expertise and dedicate its resources including technical support, customer care, marketing and professional services support. In conjunction with these efforts, China Tietong will deploy servers and other necessary hardware to build the content delivery network infrastructure and operate the network with the support of ChinaCache. Together, the companies strive to maximize both Internet and mobile end user experience, while reducing network-related costs and improving network efficiencies.

"We are delighted to partner with China Tietong on this exciting initiative, which we believe is the first of its kind in the industry. Under this agreement, we will embed our leading CDN technologies into China Tietong's nationwide network to help improve end-user experience," commented Mr. Song Wang, Founder, Chairman and CEO of ChinaCache. "We are pleased to be able to contribute our substantial experience and industry-leading technologies and we look forward to potentially extending international expansion opportunities through this important partnership with China Tietong. We will continue to seek various types of strategic partnerships with carriers that benefit both parties, as well as millions of Internet users."

Comments & Business Outlook

Wed, 10 Apr 2013 04:00:00 GMT

Fourth Quarter 2012 Financial Results

Net revenues for the fourth quarter 2012 were RMB225.0 million (US$36.1 million), representing a 7.6% increase from the third quarter of 2012 and a 25.3% increase from the corresponding period in 2011.
Net loss was RMB26.7 million (US$4.3 million) in the fourth quarter of 2012, compared to net income of RMB2.9 million in the third quarter of 2012 and a net income of RMB19.5 million in the corresponding period in 2011. Basic and diluted loss per American depositary share ("ADS') for the fourth quarter of 2012 was RMB1.17 (US$0.19) and RMB1.17 (US$0.19), respectively. Each ADS represents 16 ordinary shares of the Company.
Adjusted net income (non-GAAP), defined as income from continuing operations before share-based compensation expenses, foreign exchange loss or gain, penalties on uncertain tax positions and post-acquisition settlement consideration, was negative RMB19.9 million (US$3.2 million), compared to adjusted net income of RMB8.2 million in the third quarter of 2012 and an adjusted net income of negative RMB3.5 million in the corresponding period in 2011.
Non-GAAP basic and diluted loss per ADS for the fourth quarter of 2012 amounted to RMB0.88 (US$0.14) and RMB0.88 (US$0.14), respectively.

"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. We have now re-aligned our sales efforts to concentrate on specific verticals, which we believe will support our growth and continued leadership in China's CDN and Internet services market."

"Looking ahead, we plan to leverage our technological leadership to expand our Content-aware Network Services. This unique offering combines our best-in-class CDN platform with cloud infrastructure, security, data analytics and other value-added services to create a comprehensive suite of services for our clients in the Internet, enterprise and e-commerce, telecom and mobile communications markets. We are confident that this technology-driven, industry-focused approach will best position ChinaCache for sustainable growth over the long-term, and are excited about the opportunities ahead of us."

Outlook for the Company's First Quarter of 2013

ChinaCache currently expects to generate total net revenues ranging from RMB225 million (US$36.1 million) to RMB230 million (US$36.9 million) for the first quarter of 2013, representing up to approximately 2.2% increase from the fourth quarter of 2012, and approximately a 23.6% to 26.4% increase year-over-year. This forecast reflects ChinaCache's current and preliminary view, which is subject to change.

CFO Trail

Thu, 28 Mar 2013 04:00:00 GMT

BEIJING, March 28, 2013 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd. ("ChinaCache" or the "Company") (Nasdaq:CCIH), the leading total solutions provider of Internet content and application delivery services in China, today announced the promotion of Dr. Ken Zhang, Chief Technology Officer to the position of President, effective immediately. Additionally, the Board has appointed Ms. Jing An, Vice President of Finance, to the position of Acting Chief Financial Officer, effective immediately. Ms. Jackie You Kazmerzak recently resigned as Chief Financial Officer of the Company to pursue other personal interests. The Company has commenced the process of searching for a permanent Chief Financial Officer.

"I would like to congratulate Ken on his promotion, which follows the numerous contributions that he has made to ChinaCache since joining the Company as CTO in 2011. I believe that his dedication and leadership skills will be an important asset as we continue to move the Company forward," said Mr. Song Wang, Founder, Chairman and CEO of ChinaCache. "Ken's solid vision, vast global experience in the mobile communications space, and relationships with leading telecom operators around the world make him well suited for this new position, and we are excited for the role he will play in our continued domestic and international expansion, particularly in the mobile Internet segment."

Dr. Zhang joined the Company in September 2011, and since then has led the development of ChinaCache's corporate strategy, technology and product portfolio. Prior to joining ChinaCache, he served in senior executive roles at Ericsson from 1994 to 2011. His work included spearheading the development of new teams to service the telecom operator business in China, as well as leadership positions across a number of fields including mobile product management, technology, business development, strategic marketing and sales. Most recently, he was Chief Technology Officer of Ericsson Greater China and North East Asia, where he was responsible for the development of technology and business strategy.

Mr. Wang added, "I would like to thank Jackie for her dedication and service to ChinaCache during her time as our CFO, as well as her assistance in this transition, and wish her the best in her future endeavors. I have confidence in Jing and her ability to lead the finance team during the interim period before the permanent CFO is appointed."

Ms. An has held senior corporate finance and management positions in technology and startup companies for more than 14 years and has prior auditing experience at PricewaterhouseCoopers. She holds a Master of Science degree in Management from the Stanford Graduate School of Business and a bachelor's degree in Economics with major in Accounting from the Renmin University of China.

Comments & Business Outlook

Wed, 30 Jan 2013 05:00:00 GMT

BEIJING, Jan. 30, 2013 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd. ("ChinaCache" or the "Company") (Nasdaq:CCIH), the leading total solutions provider of Internet content and application delivery services in China, today announced that it has expanded its services in the Asia-Pacific region with Equinix, Inc. ("Equinix")(Nasdaq:EQIX), the global interconnection and data center company. This new deployment in Equinix's International Business Exchange data center in Hong Kong expands ChinaCache's presence to nine Equinix facilities worldwide. Full release here.

Contract Awards

Thu, 13 Dec 2012 05:00:00 GMT

BEIJING, Dec. 13, 2012 (GLOBE NEWSWIRE) -- ChinaCache North America Inc. ("CCNA"), the global business unit of ChinaCache International Holdings Ltd., ("ChinaCache" or the "Company") (Nasdaq:CCIH), the leading total solutions provider of Internet content and application delivery services in China, today announced that it has signed a contract with Mascus, the world's leading online marketplace for construction, agriculture, material handling, forestry, grounds care machinery and transportation vehicles.

Under the contract, ChinaCache will provide solutions to improve the speed and reliability of the Chinese arm of Mascus's website, which serves as the online marketplace and platform for its customers in China.

"We are happy to work with ChinaCache to improve the user experience of our website in China, where we see growing number of visitors and strong customer demand," said Anders Nilsson, Chief Executive Officer of Mascus in Asia. "ChinaCache has proven capabilities in delivering satisfying results, as well as quick feedback and is responsive to all matters. We see our relationship with ChinaCache as a long-term cooperation."

"It is a pleasure to work with a worldwide leading online platform such as Mascus," commented Mr. Song Wang, founder, chairman and CEO of ChinaCache. "China presents an increasingly important demographic for companies worldwide. As a growing number of global companies look to enhance their online capabilities in China, we are delighted that ChinaCache is being recognized as the partner of choice."

Comments & Business Outlook

Tue, 20 Nov 2012 05:00:00 GMT

Highlights for the Third Quarter of 2012

Net revenues in the third quarter were RMB209.2 million (US$33.3 million), representing a 5.9% increase from the previous quarter and a 30.4% increase year-over-year.
Net income was RMB2.9 million (US$0.5 million) in the third quarter of 2012, compared to net income of RMB4.3 million in the second quarter of 2012 and RMB3.4 million in the corresponding period in 2011. Basic and diluted income per American depositary share ("ADS") from continuing operations for the third quarter of 2012 was RMB0.13 (US$0.02) and RMB0.12 (US$0.02), respectively. Each ADS represents 16 ordinary shares of the Company.

"We are pleased to deliver another quarter of financial improvement, while making important progress toward a number of key strategic initiatives," said Mr. Song Wang, co-founder, chairman and chief executive officer of ChinaCache. "Our primary focus, the enterprise vertical, delivered strong performance in the third quarter. Enterprise demand for our value-added services is accelerating, and we are investing the necessary resources to strengthen this segment of the business. These services, together with our Content-aware Network Services, form a comprehensive solution for customers in a variety of industries looking to establish or improve an online presence."

"During the quarter, we continued to enhance our operational capabilities on all fronts," said Ms. Jackie You Kazmerzak, chief financial officer of ChinaCache. "Given the current macroeconomic environment, we have sharpened our strategic focus on what we consider Sustainable Markets. We are allocating more resources to penetrate the enterprise market and taking a more selective approach to signing new customers. It is this focus that resulted in improved revenue mix favoring enterprises and e-commerce customers, and supported a third consecutive quarter of gross margin expansion. Moreover, we delivered record quarterly increase in customer count. We are confident that our pursuit of quality growth will pay off in the long run, both for ChinaCache and for our shareholders."

Outlook for the Company's Fourth Quarter of 2012

ChinaCache currently expects to generate total net revenues in the range of RMB225 million (US$35.8 million) to RMB230 million (US$36.6 million) for the fourth quarter of 2012, representing an increase of 7.6% to 9.9% from the third quarter of 2012, and an increase of 25.3% to 28.1% year-over-year. This forecast reflects ChinaCache's current view, which is subject to change.

Comments & Business Outlook

Thu, 18 Oct 2012 04:00:00 GMT

Comments & Business Outlook

Tue, 21 Aug 2012 04:00:00 GMT

Highlights for the Second Quarter of 2012

Net revenues in the second quarter were RMB197.5 million (US$31.1 million), representing an 8.6% increase from the previous quarter and a 36.3% increase year-over-year.
Gross profit in the second quarter was RMB62.1 million (US$9.8 million), up 10.3% from the previous quarter and 44.4% year-over-year.
Gross margin in the second quarter was 31.4%, compared to 30.9% in the first quarter of 2012 and 29.7% in the corresponding quarter in 2011. Adjusted gross margin (non-GAAP) in the second quarter was 39.1%.
Net income in the second quarter was RMB4.3 million (US$0.7 million), compared to RMB2.5 million in the first quarter of 2012, up 70.8% sequentially and compared to a net loss of RMB5.7 million in the corresponding period in 2011.
Diluted Earnings per ADS for the 2nd quarter 2012 is ($0.23) vs. last years $0.11

"We are pleased that we delivered another strong quarter, which is a reflection of ChinaCache's clear strategy and solid execution," said Mr. Song Wang, co-founder, chairman and chief executive officer of ChinaCache. "Looking ahead, we will continue to benefit from the secular industry growth in China and the rest of Asia and embrace the vast opportunities particularly in the mobile Internet space. We remain focused on investing in innovations to build our Content-aware Network Services and deliver differentiated services to our diverse customer base."

"The second quarter was highlighted by our strong top line growth coupled with continued improvement in gross margin and net profit," said Ms. Jackie You Kazmerzak, chief financial officer of ChinaCache. "With improved operating efficiency, continuous introduction of new solutions and the penetration into brick-and-mortar customers, we aim to increase our profitability and enhance shareholder value."

Outlook for the Company's Third Quarter of 2012

ChinaCache currently expects to generate total net revenues in the range of RMB215 million (US$34.1 million) to RMB220 million (US$34.9 million) for the third quarter of 2012, representing an increase of 8.8% to 11.4% from the second quarter of 2012, and an increase of approximately 34.0% to 37.1% year-over-year. This forecast reflects ChinaCache's current view, which is subject to change.

Joint Venture

Tue, 05 Jun 2012 04:00:00 GMT

BEIJING, June 5, 2012 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd. ("ChinaCache" or the"Company") (Nasdaq:CCIH), the leading total solutions provider of internet content and application delivery services in China, announced today that it has established a strategic partnership with Telecom Malaysia Berhad ("TM"), Malaysia's leading new generation communications provider and broadband champion, to provide China-originated internet content locally in Malaysia.

Under the partnership, ChinaCache will provide the technology to localize China-originated content in Malaysia, allowing content to be stored in and served via caches deployed in Malaysia before reaching end customers through TM's network. The partnership will thereby improve the accessibility of China-originated content for Malaysian internet users, enhancing their experience and reducing costs for carriers.

Historically, internet users in Southeast Asia received large amounts of content such as websites and videos from the North American region. This partnership between ChinaCache and TM will cater to and further encourage the increasing demand for China-originated content in Malaysia.

Commenting on the partnership, Rozaimy Abd Rahman, Executive Vice President, TM Global said, "TM is very pleased with this collaboration with ChinaCache, where Malaysians, especially TM's customers, will not only be able to enjoy excellent Chinese content but also enjoy enhanced surfing experience as the source of content is stored locally here, which will result in seamless network performance. This new collaborative effort will definitely help cement the value of Malaysia as an important content hub in this region, complementing Malaysia's existing sound internet infrastructure."

Joe Zhu, General Manager of ChinaCache's North American branch stated: "The strong social media presence in Malaysia has led to growing interest in Chinese content and ChinaCache is committed to the goal of making that content easily accessible internationally."

"We are very pleased to partner with one of Malaysia's leading telecoms providers and to enhance the internet experience of Malaysia's 17.5 million internet users. This partnership enhances ChinaCache's international footprint and is illustrative of ChinaCache's ambition to boost its presence across Asia in the coming years," commented Mr. Song Wang, founder, chairman and CEO of ChinaCache.

Notable Share Transactions

Tue, 29 May 2012 04:00:00 GMT

BEIJING, May 29, 2012 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd., ("ChinaCache" or the "Company") (Nasdaq:CCIH), a leading total solutions provider of internet content and application delivery services in China, announced today that its Board of Directors approved a share repurchase plan. Under the plan, ChinaCache is authorized to repurchase, through open market purchase or privately negotiated transactions, up to US$10 million worth of outstanding American Depositary Shares representing the ordinary shares of ChinaCache over the next 12 months, depending on market conditions, share price and other factors, subject to relevant rules and regulations under the U.S. securities laws.

The share repurchase plan will be funded by the Company's available cash balance. As of March 31, 2012, the Company had cash and cash equivalents of approximately US$59.7 million.

Comments & Business Outlook

Tue, 22 May 2012 04:00:00 GMT

First Quarter 2012 Results

Net revenues in the first quarter were RMB182.0 million (US$28.9 million), representing a 1.3% increase from the previous quarter and a 36.4% increase year-over-year.
Gross profit in the first quarter was RMB56.3 million (US$8.9 million), up 5.7% from the previous quarter and 38.7% year-over-year. Gross margin in the first quarter was 30.9% while adjusted gross margin (non-GAAP) was 39.5%.
Adjusted EBITDA (non-GAAP) in the first quarter was RMB26.7 million (US$4.2million), a 38.1% increase from the prior quarter and a 1.3% decrease year-over-year.
Net income in the first quarter was RMB2.5 million (US$0.4 million), compared to RMB19.5 million in the fourth quarter of 2011 and RMB3.2 million in the corresponding period in 2011.
Adjusted net income (non-GAAP) was an income of RMB8.6 million (US$1.4 million) in the first quarter, compared to an adjusted net loss of RMB3.5 million in the fourth quarter of 2011 and an adjusted net income of RMB10.9 million in the corresponding period in 2011.
Non-GAAP basic and diluted earnings per ADS in the first quarter of 2012 wereRMB0.38 (US$0.06) and RMB0.37 (US$0.06), respectively vs (US$0.07) in first quarter of 2011

"ChinaCache has achieved a great start to the year with solid financial results," said Mr. Song Wang, co-founder, chairman and chief executive officer of ChinaCache. "Our customer count increased by 120 this quarter, setting a new record. We are very optimistic about the demand in the coming years. With the plethora of dynamic technologies fast emerging in the internet space, we will continue to enhance our Content-aware Network Services to accelerate the development of the internet industry in China."

"We are glad to see that our past investments in our core competencies have started to translate into improved profitability in this quarter," said Ms. Jackie You Kazmerzak, chief financial officer of ChinaCache. "During the quarter, we improved revenue mix, enhanced service differentiation and increased operating efficiencies, all of which contributed to the higher profitability. We are confident that with our continued efforts in building the Content-aware Network Services, we will further enhance shareholder value."

Comments & Business Outlook

Wed, 02 May 2012 04:00:00 GMT

BEIJING, May 2, 2012 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd. ("ChinaCache" or the "Company") (Nasdaq:CCIH), a leading total solutions provider of internet content and application delivery services in China, today announced that it has established the Content Aware & Intelligent Services Lab ("CAIS" or the "Lab") jointly with Beijing University of Posts and Telecommunications ("BUPT"), one of China's most renowned universities in the field of telecommunications.

The Lab aims to leverage ChinaCache's rich experience in CDN technology and BUPT's strong research capabilities to provide total solutions to the next generation of internet networks. According to the MIIT, which is responsible for the regulation and development of China's internet among other things, the Chinese government's "Broadband China" strategy calls for improving China's internet bandwidth speed to 20 Mbps for urban households by the end of 2015. This government initiative, states Dr. Ken Zhang, ChinaCache's CTO, "will provide an opportunity for the Lab to address a national need while also providing a unique market opportunity."

ChinaCache and BUPT will collaborate to conduct research involving content awareness, intelligent services, and other key technologies to enable the next generation of networks, which is expected to use IPv6 protocols. According to Dr. Zhang, ChinaCache's Index will be a significant asset in developing content-aware technologies because the Lab will be able to use the rich and abundant internet data that pass through ChinaCache's network and are stored in the Index, "Ultimately, the Lab aims to develop solutions that will accelerate internet data delivery speeds while utilizing content-aware networks," commented Dr. Zhang. "We believe this research will lead to enhanced internet services and improved user experiences."

The first research project will focus on developing a client-based system of internet awareness and network acceleration to increase data delivery speeds over the internet. This technology can be applied in personal computers, mobile devices, IPTV, and other terminals.

"ChinaCache is excited to establish a partnership with such a prestigious university. Its academic and research leadership, together with its commitment to excellence, will help ensure the future success of CAIS," commented Mr. Song Wang, the founder, chairman and CEO of ChinaCache. "The Lab's establishment comes at an opportune time and coincides with China's broadband initiative, which seeks to accomplish what ChinaCache does best: improve network speeds."

Contract Awards

Wed, 18 Apr 2012 04:00:00 GMT

BEIJING, April 18, 2012 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd., ("ChinaCache" or the "Company") (Nasdaq:CCIH), a leading total solutions provider of internet content and application delivery services in China, announced today that it has successfully signed a contract with Unity Technologies ApS ("Unity"), a privately held and awarding-winning development platform for games, apps, and tools.

The agreement calls for ChinaCache to provide CDN services for Unity's software downloading in China, which will ensure a better user experience for Unity's community of users.

"We are very pleased to sign this contract with Unity, an outstanding development platform with a thriving community over one million registered developers that has seen remarkable growth in China and Asia," commented Mr. Song Wang, the founder, chairman and CEO of ChinaCache. "To accommodate the rapidly growing user demand for game sharing and downloading, ChinaCache will further work with Unity in the future to provide the best security services, cloud-based total solutions and other value-added services."

Comments & Business Outlook

Thu, 22 Dec 2011 05:00:00 GMT

BEIJING, Dec. 22, 2011 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd., ("ChinaCache" or the "Company") (Nasdaq:CCIH), a leading provider of content delivery network services in China, today announced it has reached an agreement with the Shanxi branch of China Unicom ("Shanxi Unicom") and Shanxi Wentian Technology Co., Ltd ("Wentian Technology"), the first online game company in Shanxi province of China, to build Shanxi's largest cloud computing data center to enable facilities including disaster recovery centers, enterprise data centers and Internet data centers.

"We are delighted to form this comprehensive strategic cooperation with Shanxi Unicom and Wentian Technology," commented Mr. Song Wang, the founder, chairman and chief executive officer of ChinaCache. "We believe Shanxi Unicom's integrated communications network combined with Wentian Technology's strong capabilities in software development and ChinaCache's industry-leading position in China's CDN market will help promote the application of next-generation information technologies such as 3G, cloud computing, tri-networks integration and Internet of Things."

"We hope this project will help encourage the development of emerging Internet and e-commerce enterprises in Shanxi province, facilitating the industrial tr 6ansition of this fast-growing region," Mr. Wang continued.

Comments & Business Outlook

Wed, 14 Dec 2011 05:00:00 GMT

BEIJING, Dec. 14, 2011 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd., ("ChinaCache" or the "Company") (Nasdaq:CCIH), a leading provider of content delivery network services in China, today announced it has reached an agreement to provide acceleration supporting services to the Shanghai branch of China Telecom Corporation Limited ("Shanghai Telecom").

Under the cooperation, ChinaCache will support Shanghai Telecom's deployment and usage of acceleration supporting servers in order to maximize end-user experience and ensure the carrier's download speeds remain among the fastest in China.

"This strategic cooperation demonstrates the value of our solutions to carriers. Such collaboration produces the best possible end-user experience and creates a win-win situation for both the carrier and us," said Mr. Song Wang, the founder, chairman and chief executive officer of ChinaCache. "As China's leading CDN provider, we are committed to working side-by-side with China's telecom carriers to improve the performance of China's Internet with our next-generation of Content-aware Network Services."

Comments & Business Outlook

Tue, 22 Nov 2011 05:00:00 GMT

Third Quarter 2011 Results

Net revenues for the third quarter 2011 were RMB162.9 million (US$25.5 million), representing a 9.7% increase from the second quarter of 2011 and a 49.3% increase from the corresponding period in 2010.
Non-GAAP net income defined as net income before share-based compensation expenses, foreign exchange loss or gain, penalties on uncertain tax positions and post-acquisition settlement consideration, was RMB11.3 million (US$1.8 million), compared to an adjusted net income of RMB10.6 million in the second quarter of 2011 and RMB14.8 million in the corresponding period in 2010. Non-GAAP basic and diluted earnings per ADS for the third quarter of 2011 were RMB0.47 (US$0.07) and RMB0.46 (US$0.07), respectively.

"We're pleased to report a quarter of profitable growth, as we continue to build out our network to achieve critical mass and capture the opportunities emerging from the fast development of China's Internet market in line with the Chinese government's 12^th Five-Year Plan," said Mr. Song Wang, co-founder, Chairman and Chief Executive Officer of ChinaCache.

"To realize our vision, we will maintain our commitment to being the technology leader as we continue to improve CDN penetration rates. In the third quarter, we brought on top-level talent both in China and in our new research center in Silicon Valley. These key hires will give us a powerful competitive advantage in building the next-generation of content-aware network services," Mr. Wang continued.

"We are pleased that ChinaCache posted strong results this quarter," said Ms. Jackie You Kazmerzak, Chief Financial Officer of ChinaCache. "We successfully maintained our gross margin within the highest band amongst our peer group. We remain optimistic about our long-term growth potential, and will continue to take a long-term view towards making strategic investments in talent, technology and network reach."

Outlook for the Company's Fourth Quarter of 2011

ChinaCache currently expects to generate total net revenues ranging from RMB175 million (US$27.4 million) to RMB180 million (US$28.2 million) for the fourth quarter of 2011, representing approximately a 41% to 45% year-over-year increase from the corresponding period of 2010, and approximately a 7% to 11% quarter-over-quarter increase from the previous quarter. This forecast reflects ChinaCache's current and preliminary view, which is subject to change.

Comments & Business Outlook

Tue, 16 Aug 2011 04:00:00 GMT

Second Quarter 2011 Results

Net revenues in the second quarter were RMB148.4 million (US$23.0 million), representing a 8.8% increase from the previous quarter, and 57.2% increase from the corresponding period in 2010.
Operating profit in the second quarter was RMB0.9 million (US$0.1 million), compared to an operating income of RMB5.3 million in the first quarter of 2011 and loss of RMB1.2 million in the corresponding period in 2010.
Adjusted EBITDA (Non-GAAP) was RMB31.1 million (US$4.8 million), a 5.7% increase from the previous quarter and 12.1% increase from the corresponding period in 2010.
Net loss in the second quarter was RMB5.7 million (US$0.9 million), compared to net income of RMB 3.2 million in the first quarter and RMB10.7 million in the corresponding period in 2010.
Adjusted net income (Non-GAAP) was RMB10.6 million (US$1.6 million) in the second quarter, compared to RMB 11.7 million in the first quarter and RMB25.2 million in the corresponding period in 2010. Non-GAAP EPS was $0.07 vs $0.04

"We are delighted to report another strong quarter with revenues up by 57.2% from the second quarter last year," said Mr. Song Wang, co-founder, Chairman and Chief Executive Officer of ChinaCache. "We continued to solidify ChinaCache's industry leading position, expanding market share and acquiring clients across each of our business verticals."

"While China's Internet industry is experiencing explosive traffic growth, the penetration rate of CDN services is still very low compared to mature markets," Mr. Wang continued. "As Chinese companies grow in size and sophistication, we expect to see increasing numbers of customers choosing to save resources and improve end-user service by leveraging outsourced CDN services. I am confident that with China's largest and most advanced content delivery network, ChinaCache is well positioned to be the long term industry leader."

Ms. Jackie You Kazmerzak, Chief Financial Officer of ChinaCache, said, "We were encouraged by the continuing strong top-line growth this quarter. Our ability to maintain strong ASPs this quarter in the face of competition demonstrates that customers acknowledge the value of partnering with the recognized leader in China's CDN industry. To further strengthen our core competencies in anticipation of strong industry growth, we plan to accelerate our planned investment in expanding our network reach, our talent pool and our technology repertoire."

Outlook for the Company's Third Quarter of 2011

ChinaCache currently expects to generate total net revenues in an amount ranging from RMB155 million (US$24 million) to RMB160 million (US$25 million) for the third quarter of 2011, representing a 42% to 47% year-over-year increase from the corresponding period of 2010, a 4.4% to 7.8% quarter-over-quarter increase from the previous quarter. This forecast reflects ChinaCache's current and preliminary view, which is subject to change.

Liquidity Requirements

Sat, 04 Jun 2011 04:00:00 GMT

We believe that our current cash and cash equivalents, anticipated cash flow from operations and the proceeds from our initial public offering will be sufficient to meet our anticipated cash needs, including our cash needs for working capital and capital expenditures for at least the next 12 months.

We may, however, require additional cash due to changing business conditions or other future developments, including any investments or acquisitions we may decide to pursue. If our existing cash is insufficient to meet our requirements, we may seek to sell additional equity securities, debt securities or borrow from banks.

Comments & Business Outlook

Tue, 10 May 2011 04:00:00 GMT

First Quarter Results:

Net revenues in the first quarter were RMB136.4 million (US$20.8 million), representing a 79.6% increase from the corresponding period in 2010
Net income in the first quarter was RMB3.2 million (US$489,000), compared to a net loss of RMB34.9 million in the corresponding period in 2010
Operating profit in the first quarter was RMB5.3 million (US$806,000), compared to an operating loss of RMB32.4 million in the corresponding period in 2010
Adjusted net income (Non-GAAP) was RMB11.7 million (US$1.8 million), compared to RMB3.5 million in the corresponding period in 2010
Adjusted EBITDA (Non-GAAP) was RMB29.5 million (US$4.5 million), a 43.7% increase from the corresponding period in 2010

"We are pleased to report the third consecutive quarter of record net revenues since our IPO last October," said Mr. Song Wang, co-founder, chairman and chief executive officer of ChinaCache. "We continued to see the benefit of our ongoing investment in network infrastructure as we expanded ChinaCache's market share in keyverticals such as media and entertainment, Internet mobile, and e-commerce and enterprises. ChinaCache remained profitable in the quarter on a GAAP basis, the second consecutive quarter since turning profitable in the fourth quarter of 2010."

Basic and diluted earnings per ADS for the first quarter of 2011 amounted to RMB0.13 (US$0.02) and RMB0.13 (US$0.02)

ChinaCache currently expects to generate total net revenues in an amount ranging from RMB144.0 million (US$22.0 million) to RMB149.0 million (US$22.8 million) for the second quarter of 2011, representing a 52.5% to 57.8% year-over-year increase. This forecast reflects ChinaCache's current and preliminary view, which is subject to change.

Comments & Business Outlook

Mon, 07 Mar 2011 05:00:00 GMT

Highlights for Fourth Quarter 2010

Net revenues increased by 74.4% to RMB124.0 million (US$18.8 million) in the fourth quarter 2010 from the corresponding period in 2009
Net income in the fourth quarter 2010 was RMB6.2 million (US$0.9 million), compared to a net loss of RMB13.9 million in the corresponding period in 2009
Adjusted net income (Non-GAAP), which excluded share-based compensation expenses, foreign exchange loss or gain, penalties on uncertain tax positions, post acquisition settlement consideration, impairment of goodwill and acquired intangible assets, was RMB17.5 million (US$2.7 million) in the fourth quarter 2010, compared to an adjusted net loss of RMB10.4 million in the corresponding period in 2009
Operating profit in the fourth quarter 2010 was RMB6.9 million (US$1.0 million), compared to operating loss of RMB2.2 million in the corresponding period in 2009
Non-GAAP operating profit, which excluded share-based compensation expenses and post acquisition settlement consideration, was RMB10.2 million (US$1.5 million) in the fourth quarter of 2010, compared to RMB1.3 million in the corresponding period in 2009
Adjusted EBITDA (Non-GAAP) was RMB30.6 million (US$4.6 million), a 68.7% increase from the corresponding period in 2009
Adjusted EPS was $0.11 vs. ($0.25)

Highlights for Fiscal Year 2010

Net revenues in 2010 increased 48.1% from 2009 to RMB403.4 million (US$61.1 million)
Net loss in 2010 was RMB55.7 million (US$8.4 million), compared to a net loss of RMB39.2 million in 2009
Adjusted net income (Non-GAAP) was RMB61.0 million (US$9.2 million) in 2010, compared to a loss of RMB16.1 million in 2009
Operating loss in 2010 was RMB61.3 million (US$9.3 million), compared to operating loss of RMB12.7 million in 2009
Non-GAAP operating profit was RMB48.7 million (US$7.4 million) in 2010, a significant increase from RMB1.7 million in 2009
Adjusted EBITDA (Non-GAAP) in 2010 was RMB114.1 million (US$17.3 million), a 61.4% increase from 2009
The number of active customers as at December 31, 2010 totaled 504, compared to 281 as at December 31, 2009
Adjusted EPS was $0.93 vs. ($0.39)

"We were pleased to achieve profitability in the fourth quarter as we recorded another period of revenue growth," said Mr. Song Wang, co-founder, chairman and chief executive officer of ChinaCache. "Our mobile Internet, media and entertainment, and enterprise and e-commerce verticals performed strongly as customers took advantage of our services to enhance end user experience. In particular, we were pleased to add contracts with new provincial subsidiaries of China Mobile and we saw exceptionally strong growth in the Internet video space. We also entered into a number of exciting content and application delivery service contracts with leading provincial television stations to improve the reliability of TV programs delivered across the Internet."

Mr. Wang continued, "Looking to the year ahead, we are optimistic that the rapid growth of content delivered over the Internet will continue to drive strong demand for ChinaCache's CDN solutions."

"During the quarter we saw continued improvement in adjusted net income even as we increased investment in our bandwidth, collocation and storage facilities to meet growing customer demand," added Mr. Robert Yong Sha, chief financial officer of ChinaCache. "2010 witnessed the healthy development of ChinaCache's business, as we expanded our industry leadership and improved profitability. In 2011, we look forward to building out our customer base further while managing for profitable growth."

Outlook for First Quarter 2011

ChinaCache currently expects to generate total net revenues in an amount ranging from RMB128.0 million (US$19.3 million) to RMB133.0 million (US$20.2 million) for the first quarter of 2011, representing a 68.6% to 75.2% year-over-year increase from the corresponding period of 2010. This forecast reflects ChinaCache's current and preliminary view, which is subject to change.

IPO Activity

Fri, 17 Sep 2010 04:00:00 GMT

ChinaCache International Holdings Ltd. set to commence IPO.

Company Snapshot:

Provider of Internet content and application delivery services in China

Industry Snapshot:

Growth Drivers

Increasing Internet usage and broadband penetration in China.
Growth of rich media content.
Growth of the mobile Internet and mobile data services;
Growth of online game industry.
Growth of online advertising and e-commerce.
Growth of Software-as-a-Service and cloud computing.
Increasing need for networks with greater interconnectivity and efficiency.

Use Of proceeds:

We intend to use the net proceeds from this offering to expand our research and development efforts, to fund our capital expenditures for network and other equipment and to fund working capital and for other general corporate purposes, including strategic investment in and acquisitions of complementary businesses.

Underwriter(s):

Merrill Lynch, Pierce, Fenner & Smith Inc.
Deutsche Bank Securities Inc

Proposed offering price: $10.00 to $12.00.

Post IPO Share Calculation: (Using a 16 to 1 Ordinary to ADS conversion ratio).

18,133,832: Pre IPO fully diluted share count used in EPS calculation.
4,454,100: Newly issued ADS shares
825,147: Over-allotments ADS shares

GeoTeam® best effort calculation of total post IPO ADS count to be used in EPS calculations, assuming full conversions and a Ordinary to ADS conversion ratio of 16 to 1: 23,413,079

Our net revenues were RMB161.0 million, RMB291.4 million and RMB272.4 million (US$39.9 million) in 2007, 2008 and 2009, respectively. We incurred net losses of RMB87.9 million, RMB151.8 million and RMB39.2 million (US$5.7 million), respectively, in the same periods. Our net revenues for the six months ended June 30, 2010 were RMB170.3 million (US$25.1 million), and we incurred a net loss of RMB24.2 million (US$3.6 million) for the same period.