Group 1 - The Nasdaq China Golden Dragon Index rose over 3%, indicating a positive trend for Chinese concept stocks [1] - NIO saw a significant increase of 18.32%, leading the gains among the component stocks [2] - Other notable performers included VNET with a rise of 16.97% and MNSO with an increase of 16.44% [2] Group 2 - Tiger Securities (TIGR) increased by 13.49%, while Kingsoft Cloud (KC) rose by 8.99% [2] - Smaller gains were observed in companies like Xiaoying Technology (XYF) at 8.55% and RLX Technology at 7.14% [2] - Other companies such as Lufax (LU) and Zhongjin Ke Industrial (ZJK) also experienced gains of 6.72% and 6.44% respectively [2]

Group 1 - The core viewpoint of the article highlights Century Internet's financial performance and its position as a leading digital infrastructure provider in China, despite reporting a significant decline in net profit [1][2] - As of June 30, 2025, Century Internet's total revenue is projected to be 4.68 billion RMB, reflecting a year-on-year growth of 20.26%, while the net profit attributable to shareholders is expected to be -249 million RMB, a decrease of 102.28% year-on-year [1] - The company operates over 50 data centers across more than 30 cities in China, with a base business operational capacity exceeding 480 MW and over 52,000 cabinets in urban business operations [2] Group 2 - Century Internet is recognized as the first publicly listed IDC company in the U.S. from China and is a key player in the digital infrastructure sector, focusing on both base and urban IDC business models [1][2] - The company has established a robust digital core base in regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macau, facilitating smooth data migration from first-tier cities to edge cities [2] - As a strategic partner of Microsoft, Century Internet operates international-standard cloud services including Microsoft Azure and Microsoft 365, serving over 6,000 high-quality enterprise clients globally [2]

Core Insights - Century Internet (VNET.US) reported a strong financial performance for Q2 2025, with total revenue increasing by 22.1% year-on-year to 2.43 billion RMB [1][2] - The company is focusing on the transition to AI-driven data centers (AIDC) through its newly launched Hyperscale 2.0 framework, aiming to enhance competitiveness and sustainability [2][4] Financial Performance - Total revenue for Q2 2025 reached 2.43 billion RMB, reflecting a year-on-year growth of 22.1% [1][2] - Adjusted cash gross profit increased by 34.9% to 1.06 billion RMB, with an adjusted cash gross margin rising from 39.5% to 43.6% [1] - Adjusted EBITDA grew by 27.7% to 732 million RMB, with an adjusted EBITDA margin improving from 28.8% to 30.1% [1][2] Business Operations - The base IDC business saw a significant year-on-year revenue increase of 112.5%, contributing to the overall revenue growth [2] - As of June 30, the operational capacity of the base IDC business increased by 17.5% to 674 MW, with a total of 326 MW under construction and 374 MW in reserve [3] - The company secured approximately 4 MW of orders in urban IDC business and won a 20 MW order for base IDC in Hebei [3] Strategic Initiatives - The Hyperscale 2.0 framework aims to transform the business model from single project resource delivery to providing comprehensive AIDC solutions [4] - The company plans to increase its managed data center asset scale to 10 GW by 2036, with initial developments in Inner Mongolia, Hebei, and Beijing [4] - Century Internet is focusing on high-quality, high-margin business operations while optimizing operational efficiency [3]

Core Insights - Century Internet (VNET.US) reported a strong financial performance for Q2 2025, with total revenue increasing by 22.1% year-on-year to reach 2.43 billion RMB [1][4] - The company’s adjusted cash gross profit grew by 34.9% to 1.06 billion RMB, while adjusted EBITDA rose by 27.7% to 732 million RMB, reflecting improved profitability [1][4] - The company’s founder emphasized the robust growth of its base IDC business, which saw operational capacity increase by 101 MW to 674 MW, driven by strong customer demand [1][3] Group 1: IDC Business Growth - The base IDC business continued to be a key growth driver, with operational capacity increasing by 17.5% and new capacity added reaching 101 MW [3][4] - The company’s urban IDC business maintained stable operations, with operational capacity reaching 52,131 cabinets and a slight increase in the cabinet utilization rate to 63.9% [3] - In the first half of 2025, Century Internet delivered approximately 188 MW, with plans to deliver an additional 326 MW in the next 12 months, indicating strong demand for high-quality computing resources [3] Group 2: Revenue and Profitability - Total revenue for Q2 2025 was 2.43 billion RMB, reflecting a year-on-year increase of 22.1% and a quarter-on-quarter increase of 8.4% [4] - The base IDC business revenue surged to 854 million RMB, marking a significant year-on-year growth of 112.5% [4] - Adjusted EBITDA reached 732 million RMB, with a year-on-year increase of 27.7% and an EBITDA margin of 30.1%, up 1.3 percentage points from the previous year [4] Group 3: Strategic Initiatives - Century Internet launched the Hyperscale 2.0 framework aimed at enhancing its AIDC capabilities and plans to increase its managed data center assets to 10 GW by 2036 [2][6] - The company is focusing on innovative technologies to improve the efficiency and flexibility of data center construction, transitioning from traditional IDC to AIDC solutions [6][7] - The Hyperscale 2.0 initiative will begin in regions such as Inner Mongolia, Hebei, and Beijing, aiming to create a seamless collaboration between computing power and energy management across data center hubs [7] Group 4: Order Acquisition - In Q2 2025, Century Internet secured approximately 4 MW of orders from various sectors, including IT services and financial services, indicating strong demand for AI-driven solutions [5] - The company also won a significant 20 MW order for its base IDC business from a leading cloud computing client in Hebei [5]

Core Viewpoint - Century Internet (VNET.US) reported a significant increase in its financial performance for Q2 2025, with total revenue reaching 2.43 billion RMB, reflecting a year-on-year growth of 22.1% [1][2]. Financial Performance Summary - Total net revenue for Q2 2025 was 2.43 billion RMB (339.8 million USD), up from 1.99 billion RMB in Q2 2024, marking a 22.1% increase [2]. - IDC business net revenue grew by 32.6%, from 1.37 billion RMB to 1.81 billion RMB (253.1 million USD) [2]. - Wholesale business revenue surged by 112.5%, increasing from 402 million RMB to 854.1 million RMB (119.2 million USD) [2]. - Retail business revenue slightly decreased from 964.8 million RMB to 958.7 million RMB (133.8 million USD) [2]. - Non-IDC business net revenue saw a minor decline of 0.9%, from 627 million RMB to 621.4 million RMB (86.7 million USD) [2]. Profitability Metrics - Adjusted cash gross profit for Q2 2025 was 1.06 billion RMB (148.2 million USD), up from 787.3 million RMB in Q2 2024, representing a 34.9% increase [3]. - Adjusted cash gross margin improved to 43.6% from 39.5% year-on-year [3]. - Total gross profit for Q2 2025 was 547.7 million RMB (76.5 million USD), a 28.9% increase from 424.9 million RMB in Q2 2024, with a gross margin of 22.5% [2]. Operating Expenses - Total operating expenses for Q2 2025 were 374.7 million RMB (52.3 million USD), compared to 230.3 million RMB in Q2 2024 [3]. - Sales and marketing expenses increased to 70 million RMB (9.8 million USD) from 58.2 million RMB [4]. - R&D expenses rose to 67.6 million RMB (9.4 million USD) from 62 million RMB [5]. - General and administrative expenses increased significantly to 212.5 million RMB (29.7 million USD) from 107.3 million RMB [6]. EBITDA and Net Income - Adjusted EBITDA for Q2 2025 was 732.5 million RMB (102.2 million USD), up 27.7% from 573.8 million RMB in Q2 2024, with an EBITDA margin of 30.1% [6]. - The company reported a net loss attributable to the parent company of 11.9 million RMB (1.7 million USD) for Q2 2025, compared to a net profit of 63.7 million RMB in Q2 2024, primarily due to increased interest and tax expenses [6]. Liquidity and Debt - As of June 30, 2025, the company had cash and cash equivalents totaling 4.66 billion RMB (651.1 million USD) [7]. - Total short-term debt amounted to 2.73 billion RMB (380.5 million USD), while long-term debt was 14.65 billion RMB (2.05 billion USD) [8]. Stock Buyback Plan - The company's board approved a stock buyback plan on June 27, 2025, allowing for the repurchase of up to 50 million USD worth of American Depositary Shares over the next 12 months [9]. Business Outlook - The company expects total net revenue for 2025 to be between 9.15 billion RMB and 9.35 billion RMB, representing a year-on-year growth of 11% to 13% [10]. - Adjusted EBITDA is projected to be between 2.76 billion RMB and 2.82 billion RMB, indicating a growth of 14% to 16% [10].

Financial Data and Key Metrics Changes - Total net revenues increased by 22.1% year over year to RMB2.43 billion for the second quarter [9][20] - Adjusted EBITDA for the second quarter increased by 27.7% year over year to RMB732 million, with an adjusted EBITDA margin of 30.1%, up 1.3 percentage points year over year [9][20] - Adjusted cash gross profit rose by 34.9% to RMB1.06 billion, with adjusted cash gross margins improving to 43.6% from 39.5% in the same period last year [20][21] Business Line Data and Key Metrics Changes - Wholesale revenues reached RMB854 million for the quarter, representing year over year growth of 112.5%, driven by the rapid growth of the wholesale IDC business [9][20] - Retail capacity in service was 52,131 cabinets, with the utilization rate increasing slightly to 63.9% as of June [15] - Monthly Recurring Revenue (MRR) per retail cabinet increased to RMB8,915 this quarter [16] Market Data and Key Metrics Changes - Wholesale capacity in service grew by 17.5% quarter over quarter to 674 megawatts, with utilization rate stable at 75.9% [8][14] - Capacity under construction was around 326 megawatts with a pre-commitment rate of 55.2% as of June [15] - The company secured a combined capacity of around 4 megawatts in retail orders from various sectors, indicating strong demand in the Greater Beijing area and the Yangtze River Delta [10] Company Strategy and Development Direction - The company unveiled its Hyperscale 2.0 framework aimed at developing AIDC solutions, with a goal to grow data center assets under management to 10 gigawatts by 2036 [11][12] - The business model is evolving from project-based capacity delivery to comprehensive AIDC solutions, positioning the company as a pioneer in AIDC development [11][13] - The company plans to establish data center hubs in Inner Mongolia, Hebei province, and Beijing, focusing on rapid construction and flexible solutions [13] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about future demand, particularly in AI-driven sectors, and noted that the market is relatively active [30][54] - The company raised its full-year revenue and adjusted EBITDA guidance, expecting total net revenues to be in the range of RMB9.15 billion to RMB9.35 billion, a year-over-year increase of 11% to 13% [26][27] - Management acknowledged potential impacts from AI chip supply constraints but remains optimistic about maintaining order momentum [54] Other Important Information - The company maintained robust liquidity with total cash and cash equivalents reaching RMB4.66 billion as of June 30, 2025 [22] - A buyback program was authorized to repurchase up to US$50 million in shares, reflecting confidence in future growth [25] Q&A Session Summary Question: Future demand and orders related to NVIDIA's chipsets - Management noted that AI demand is strong in active digital economy regions and is monitoring potential demand closely, especially for large clients [30][31] Question: Update on wind power build-out in Yulan Top - The wind power project is underway and expected to deliver power by the end of this year, with a positive impact anticipated on the company's IR [36] Question: Gross margin fluctuations - Changes in gross margin were attributed to timing and depreciation factors, with cash gross margin still showing healthy growth [41][42] Question: Full-year guidance and second half outlook - Management remains optimistic about the second half, monitoring utilization speed and client orders closely [48][54] Question: Retail IDC revenue decline - A slight decline in retail IDC revenue was noted but is considered within a reasonable range, with expectations for stability and potential increase [50]

Financial Data and Key Metrics Changes - Total net revenues increased by 22.1% year over year to RMB2.43 billion for the second quarter [8][19] - Adjusted EBITDA for the second quarter increased by 27.7% year over year to RMB732 million, with an adjusted EBITDA margin of 30.1%, up 1.3 percentage points year over year [8][20] - Adjusted cash gross profit rose by 34.9% to RMB1.06 billion, with adjusted cash gross margins improving to 43.6% from 39.5% in the same period last year [19][20] Business Line Data and Key Metrics Changes - Wholesale revenues reached RMB854 million for the quarter, representing year over year growth of 112.5%, driven by the rapid growth of the wholesale IDC business [8][19] - Retail capacity in service was 52,131 cabinets, with the utilization rate increasing slightly to 63.9% as of June [15] - Monthly Recurring Revenue (MRR) per retail cabinet increased to RMB8,915 this quarter [15] Market Data and Key Metrics Changes - Wholesale capacity in service grew by 17.5% quarter over quarter to 674 megawatts, with utilization rate stable at 75.9% [7][13] - Capacity under construction was around 326 megawatts with a pre-commitment rate of 55.2% as of June [14] - The company secured a combined capacity of around 4 megawatts in retail orders from various sectors, including IT services and AIoT [9] Company Strategy and Development Direction - The company unveiled its Hyperscale 2.0 framework aimed at developing AIDCs and plans to grow the capacity of its data center assets to 10 gigawatts by 2036 [10][12] - The business model is evolving from project-based capacity delivery to offering comprehensive AIDC solutions [10] - The company aims to establish data center hubs with megawatt scale cabinets and gigawatt scale campuses [12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about future demand, particularly in regions with active digital economies like Greater Beijing and the Yangtze River Delta [30] - The company is closely monitoring the impact of AI chip supply constraints on new orders and customer movements [55] - Management remains committed to driving innovation and fostering industry development while delivering value to stakeholders [26] Other Important Information - The company maintained robust liquidity with total cash and cash equivalents reaching RMB4.66 billion as of June 30, 2025 [21] - CapEx for 2025 was RMB3.89 billion, with expectations to be in the range of RMB10 billion to RMB12 billion for the full year [22][23] - A buyback program was authorized to repurchase up to USD50 million in the open market over the next twelve months [23] Q&A Session Summary Question: Future demand and orders related to NVIDIA's chipsets - Management noted that the market is relatively active, with strong AI demand in key regions and attention to potential demand releases around September [30] Question: Update on wind power build-out in Yulan Top and its impact - The wind power project is underway and expected to deliver power by the end of this year, with a positive impact anticipated on IR [36] Question: Gross margin fluctuations and future expectations - Changes in gross margin were attributed to timing and depreciation factors, with cash gross margin showing healthy growth [41][42] Question: Full year guidance and second half outlook - Management remains optimistic about the second half, monitoring utilization speed and potential impacts from AI chip supply [55] Question: Retail IDC revenue decline in the second quarter - Slight decline in retail IDC revenue was noted, but management expects stability and potential increases moving forward [49]

Core Viewpoint - VNET Group reported a quarterly loss of $0.01 per share, missing the Zacks Consensus Estimate of $0.02, and showing a significant decline from earnings of $0.06 per share a year ago, indicating a -150.00% earnings surprise [1] Financial Performance - The company posted revenues of $339.8 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 5.75%, and representing an increase from $274.35 million in the same quarter last year [2] - Over the last four quarters, VNET Group has surpassed consensus revenue estimates three times [2] Stock Performance - VNET Group shares have increased approximately 68.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.7% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at $0.03 for the coming quarter and $0.03 on $1.31 billion in revenues for the current fiscal year [4][7] - The estimate revisions trend for VNET Group was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which VNET Group belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Total Net Revenues reached RMB 2,434 million, a 22.1% year-over-year increase and an 8.4% quarter-over-quarter increase[8] - Wholesale IDC Revenue was RMB 854 million, showing a significant increase of 112.5% year-over-year and 26.9% quarter-over-quarter[8] - Adjusted EBITDA reached RMB 732 million, representing a 27.7% year-over-year increase and a 7.3% quarter-over-quarter increase[8] - The company's FY2025 revised guidance projects revenues between RMB 9,150 million and RMB 9,350 million, implying an 11%-13% year-over-year growth[66] - The company's FY2025 revised guidance projects Adjusted EBITDA between RMB 2,760 million and RMB 2,820 million, implying an 18%-20% year-over-year growth[66] IDC Business Growth - Wholesale IDC Business capacity in service increased to 674MW, with a quarter-over-quarter increase of 101MW, representing a 17.5% growth[8] - Wholesale IDC Business capacity utilized increased to 511MW, with a quarter-over-quarter increase of 74MW, representing a 17.0% growth[8] - The utilization rate of the company's wholesale IDC business was 75.9% in 2Q25[8] - The company secured a 20MW order from a leading cloud services provider via its JV project[8] - The company plans to grow data center assets under management to 10GW by 2036[12] Capacity and Infrastructure - Wholesale capacity in service is distributed with 55.0% in the Greater Beijing Area and 45.0% in the Yangtze River Delta[18] - Wholesale capacity under construction is distributed with 77.4% in the Greater Beijing Area and 22.6% in the Yangtze River Delta[19] - Wholesale capacity held for future development is heavily concentrated in the Greater Beijing Area, accounting for 98.1%[20]

Exhibit 99.1 Qiyu Wang, Chief Financial Officer of VNET, commented, "We maintained our business's vibrant momentum with strong financial results during the second quarter. Our total net revenues rose 22.1% year over year to RMB2.43 billion, driven by significant wholesale revenue growth of 112.5% year over year. Adjusted EBITDA also increased by 27.7% year over year to RMB732.5 million, with an adjusted EBITDA margin of 30.1%, up 1.3 percentage points year over year. With our effective business strategy and ...