ChinaCache International Holdings Ltd (NASDAQ:CCIH) 1H2017 Performance Impacted BY Competitive Headwinds

Song Wang, the CEO and Chairman of ChinaCache International Holdings Ltd (NASDAQ:CCIH), expressed that in 1H2017, while their core CDN segment was influenced by current competitive problems from large cloud operators, the competitive environment didn’t slow them from continuing to execute their strategic measures with a focus on integrating their resources to offer a leading three-layer planned network total solution offering.

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The CEO of ChinaCache added that they took several measures to respond to the decelerating growth with lowering costs and further enhancing their product mix. In 1H2017, their initiatives resulted in prominent gross profit improvement in spite of the substantial topline pressure from exaggerated pricing competition. They also witnessed considerable decline in their R&D and SG&A expenses as they continued to carry out wise cost control methods. Hence, the company posted an improved net loss linked to ordinary stockholders of RMB125.6 million for 1H2017, versus RMB247.2 million for the comparable period of 2016.

Mr. Wang said that they further aligned their vision to offer consumers with total solutions from their three-layer structured offering portfolio comprising of content delivery networks, data centers and Internet exchange centers and achieved substantial progress in this respect. For their CDN business, they are delighted to post that their HPCC marked a stable operating level in 1H2017. HPCC now hosts over 70% of their CDN traffic and offers improved service quality with increased efficiency, higher flexibility and new protocol support and content encryption transmission. They consider that the optimized platform will mark as their long-term differentiator in the respective market.

The CEO of ChinaCache further added that their CHN-IX network offers a cloud ecosystem with downstream and upstream partners providing latest interconnection and peering services. With bases in first-tier cities, these leading carrier-neutral internet exchange facilities enhance connectivity via private backbone lines with best-speed IP interconnection, high-level network security and cloud access. In 2017, they expanded cooperation deals with cloud industry pioneers and, as a result, are witnessing a growing count of customers from the finance, Internet and government divisions attracted to these exchange facilities.

 

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Culver Stinson

Culver Stinson

Stinson is US Markets Daily’s Senior Producer for News & Public Affairs.