{"id":31216,"date":"2014-09-16T06:27:22","date_gmt":"2014-09-16T10:27:22","guid":{"rendered":"https:\/\/cablemanpro.com\/wallstreetpr\/?p=31216"},"modified":"2014-09-16T06:27:22","modified_gmt":"2014-09-16T10:27:22","slug":"21vianet-group-inc-nasdaqvnet-chairman-josh-chen-respond-to-allegations-of-fraud","status":"publish","type":"post","link":"https:\/\/cablemanpro.com\/wallstreetpr\/21vianet-group-inc-nasdaqvnet-chairman-josh-chen-respond-to-allegations-of-fraud-31216","title":{"rendered":"21Vianet Group Inc (NASDAQ:VNET) Chairman, Josh Chen, Respond To Allegations Of Fraud"},"content":{"rendered":"<p style=\"text-align: justify;\">Boston, MA 09\/16\/2014 (wallstreetpr) \u2013 Provider of a carrier-neutral Internet data center services in China, <strong>21Vianet Group Inc (NASDAQ:VNET)<\/strong> Chairman and Chief Executive Officer, Josh Chen, has responded to the allegations of fraud through a detailed letter to its shareholders. The Chairman has categorically denied all the allegations and explained the ground realities to the shareholders.<\/p>\n<p style=\"text-align: justify;\"><strong>Denies Allegations<\/strong><\/p>\n<p style=\"text-align: justify;\">Expressing shock over the wild allegations against the company, the Chairman said that he has been involved with the 21Vianet Group Inc (NASDAQ:VNET) for over one and half decades leading the internet infrastructure business in China, a <a href=\"http:\/\/finance.yahoo.com\/news\/21vianet-issues-ceo-letter-shareholders-131509120.html\" target=\"_blank\">statement<\/a> from the company said. He said that it has been operating with tangible assets and earned key contracts and industry leading customers thereby providing consistent recurring revenue on a monthly basis. This leads to a consistent and expected cash flow. Its monthly recurring revenue per cabinet was more than RMB10,000 in the last nine fiscal quarters.<\/p>\n<p style=\"text-align: justify;\">Therefore, he said that the charge that the company was a \u2018Ponzhi Scheme\u2019 was not only malicious but also baseless attack. He also cited that it has been providing details through filings with the SEC.<\/p>\n<p style=\"text-align: justify;\"><strong>Stand By Financial Data<\/strong><\/p>\n<p style=\"text-align: justify;\">\u00a021Vianet Group Inc (NASDAQ:VNET) CEO said that the company stood firmly on its financial data such as data centers and cabinet growth apart from utilization rates. Denying all charges of overstatement of utilization rate and cabinet numbers, he said that there were 82 data centers at the end of June. This included 67 partnered and 15 self-built data centers, which had 5,462 cabinets 11,482 cabinets respectively.<\/p>\n<p style=\"text-align: justify;\">Though the company was not required to disclose its data center utilization rates, the Chairman said that it was doing so voluntarily after becoming a public company to provide visibility to its shareholders. He also welcomed any investors to review its current, as well as, past public disclosure.<\/p>\n<p style=\"text-align: justify;\"><strong>Adequately Capitalized<\/strong><\/p>\n<p style=\"text-align: justify;\">Chen said that the company has been adequately capitalized since it gets finance for its ongoing operations from debt instruments. However, there was no overleveraging of its balance sheet as accused. He also said that 21Vianet Group Inc (NASDAQ:VNET) would continue to pursue investments strategies that are complementary in nature.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Boston, MA 09\/16\/2014 (wallstreetpr) \u2013 Provider of a carrier-neutral Internet data center services in China, 21Vianet Group Inc (NASDAQ:VNET) Chairman and Chief Executive Officer, Josh [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":31217,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[9167,4920,9168,4921],"stock_ticker":[],"class_list":["post-31216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-21vianet-group-inc","tag-21vianet-group-inc-nasdaqvnet","tag-josh-chen","tag-nasdaqvnet","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - 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