Financial Data and Key Metrics Changes - Total net revenues increased by 18.3% year over year to RMB 2.25 billion for Q1 2025, driven by strong growth in the wholesale business [10][19] - Adjusted EBITDA rose by 26.4% year over year to RMB 682 million, with an adjusted EBITDA margin of 30.4%, up 1.9 percentage points year over year [10][21] - Wholesale revenues reached a record high of RMB 673 million for the quarter, representing a year-over-year growth rate of 86.5% [10][19] - Adjusted cash gross profit increased by 26.4% to RMB 967.8 million, with adjusted cash gross margins improving to 43.1% from 40.3% in the same period last year [20][21] Business Line Data and Key Metrics Changes - Wholesale IDC business capacity in service grew 18.1% quarter over quarter to 573 megawatts, with a utilization rate of 76.2% [9][13] - Retail capacity in service was 51,960 cabinets, with a slight increase in utilization rate to 63.7% [14] - Retail revenues increased by 4.8% to RMB 968.3 million, while the monthly recurring revenue (MRR) per retail cabinet rose to RMB 8,898 [14][20] Market Data and Key Metrics Changes - The demand for premium IDC services surged due to the explosive growth of AI applications, with retail IDC business revenues from customer private deployments of open-source large language models increasing by 309% in March compared to January [12] - The company secured new orders across various sectors, including a 55 megawatt order from a leading cloud computing customer and a 64 megawatt order from an internet customer [11] Company Strategy and Development Direction - The company is focused on leveraging its high-performance data center network and reliable solutions to meet growing customer demand, driving growth in China's digital economy [16][27] - The company plans to maintain a robust expansion plan to prepare for further business growth, particularly in the wholesale IDC sector [13][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the China market, driven by the increasing maturity of open-source model technology and the expansion of intelligent application scenarios [12][27] - The company reiterated its full-year guidance for 2025, expecting total net revenues between RMB 9.1 billion to RMB 9.3 billion, representing year-over-year growth of 10% to 13% [24] Other Important Information - The company issued $430 million of convertible senior notes at an interest rate of 2.5% per annum and secured a sustainability-linked loan of RMB 500 million at a 3.7% interest rate [10][21] - The company achieved significant progress in its ESG initiatives, including a fivefold increase in energy usage from renewable sources [26] Q&A Session Summary Question: Update on customer demand after the H20 chip ban - Management noted a short-term impact on demand from hyperscalers due to the H20 chip embargo, but clients quickly adjusted, and current orders are sufficient to fill capacities for this year and the first half of next year [29][31] Question: Retail demand and MRR increase drivers - Most new retail contracts are driven by AI applications, and the increase in MRR is attributed to repurposing cabinets for high-voltage needs, allowing for higher pricing [36][38] Question: Gross profit margin improvement drivers - The improvement in gross profit margin is due to a higher proportion of wholesale IDC services and the repurposing of cabinets for higher-margin retail services [40][42] Question: Plans for a Hong Kong IPO and electricity costs - The company is exploring a potential dual listing in Hong Kong but has no specific timeline yet; utility bills remain stable with no expected decline [49][51] Question: Utilization rate outlook - Management is confident in a positive utilization ramp-up for the next three to four quarters due to strong client demand and effective delivery plans [53][55]

Financial Data and Key Metrics Changes - Total net revenues increased by 18.3% year over year to RMB 2.25 billion for Q1 2025, driven by strong growth in the wholesale business [7][17] - Adjusted EBITDA rose by 26.4% year over year to RMB 682 million, with an adjusted EBITDA margin of 30.4%, up 1.9 percentage points year over year [8][19] - Wholesale revenues reached a record high of RMB 673 million for the quarter, representing an impressive year over year growth rate of 86.5% [7][17] Business Line Data and Key Metrics Changes - Wholesale IDC business capacity in service grew 18.1% quarter over quarter to 573 megawatts, with a utilization rate of 76.2% [7][12] - Retail capacity in service was 51,960 cabinets, with a utilization rate increasing slightly to 63.7% [13] - Monthly Recurring Revenue (MRR) per retail cabinet increased to RMB 8,898, driven by AI-driven demand [13][37] Market Data and Key Metrics Changes - The demand for premium IDC services surged due to the explosive growth of AI development in China, particularly for private deployments of open-source large language models, which increased by 309% in March compared to January [11] - The company secured new orders across various sectors, including internet, finance, local services, intelligent driving, and gaming [10][36] Company Strategy and Development Direction - The company is focused on leveraging its high-performance data center network and reliable solutions to meet growing customer demand, driving growth in China's digital economy [14][25] - A dual-core strategy is being implemented to secure high-quality orders from various industries [6][14] Management's Comments on Operating Environment and Future Outlook - Management noted that the short-term impact of the H20 chip embargo has been mitigated, with sustained demand expected from hyperscalers [28][30] - The company remains confident in the growth potential of the Chinese market, driven by the increasing maturity of open-source model technology [12] Other Important Information - The company issued $430 million in convertible senior notes and secured a sustainability-linked loan of RMB 500 million [9] - Capital expenditures for 2025 are expected to be between RMB 10 billion and RMB 12 billion, aimed at supporting significant capacity deliveries [21][22] Q&A Session Summary Question: Update on customer demand after the H20 chip ban - Management acknowledged a short-term impact on demand but noted that hyperscalers quickly adjusted, and current orders are sufficient to fill capacities for this year and the first half of next year [28][30] Question: Retail demand and MRR increase drivers - Most new retail contracts are AI-driven, and the increase in MRR is attributed to higher pricing for high-voltage cabinets [36][37] Question: Drivers for gross profit margin improvement - The improvement is due to a higher proportion of wholesale IDC services and repurposing cabinets for higher-margin retail services [40][41] Question: Plans for an IPO in Hong Kong - The company is exploring a potential dual listing in Hong Kong but did not provide a specific timeline [47] Question: Impact of electricity costs on EBITDA margin - Management indicated that utility bills are stable, with no expected impact on EBITDA margins [48] Question: Visibility of utilization ramp-up into next year - Management expressed confidence in continued demand and a pleasant move-in rhythm from clients for the upcoming quarters [50]

Financial Performance - Total net revenues for 1Q25 reached RMB 2,246 million, an increase of 18.3% year-over-year and 3.5% quarter-over-quarter[8] - Wholesale IDC revenue for 1Q25 reached RMB 673 million, representing a significant increase of 86.5% year-over-year and 14.1% quarter-over-quarter[8] - Adjusted EBITDA for 1Q25 reached RMB 682 million, up 26.4% year-over-year and 18.1% quarter-over-quarter[8] - Adjusted cash gross profit reached RMB 968 million in 1Q25, with an adjusted cash gross margin of 43.1%[39] IDC Business Growth - Wholesale IDC business capacity in service increased to 573MW, with a quarter-over-quarter increase of 88MW, representing an 18.1% growth[8] - Wholesale IDC business capacity utilized increased to 437MW, a quarter-over-quarter increase of 84MW, representing a 23.9% growth[8] - The retail IDC business maintained a stable utilization rate of 63.7% in 1Q25[8] - The company secured a total of 129MW in new orders, including 55MW from a cloud computing customer, 64MW from an Internet customer, and 6MW from an intelligent driving customer for the wholesale IDC business[8, 9] Capacity and Infrastructure - Wholesale capacity in service is primarily located in the Yangtze River Delta (52.1%) and Greater Beijing Area (47.9%)[18] - Wholesale capacity under construction is heavily concentrated in the Greater Beijing Area (89.5%)[19] - The company expects FY2025 capital expenditure to be between RMB 10 billion and RMB 12 billion to support delivery plans[59, 62] Future Outlook - The company anticipates revenues between RMB 9,100 million and RMB 9,300 million for FY2025, implying a year-over-year growth of 10% to 13%[62] - Adjusted EBITDA is projected to be between RMB 2,700 million and RMB 2,760 million for FY2025, indicating a year-over-year growth of 15% to 18%[62] - The company plans to deliver between 400MW and 450MW in FY2025, a significant increase compared to the 153MW delivered in FY2024[62]

Group 1 - The core viewpoint of the article emphasizes the importance of new generation information technologies, such as artificial intelligence and cloud computing, in driving economic and social transformation [2] - The collaboration between China Telecom Guangdong and Century Internet Group aims to build an intelligent computing data center cluster in the Greater Bay Area, focusing on the application of emerging technologies like AI and big data in key industries [3] - The partnership will establish a comprehensive strategic collaboration mechanism in areas such as communication networks, data center operations, and cloud computing services, leveraging each other's resources and technological advantages [4] Group 2 - The signing marks a commitment to jointly promote the construction and commercialization of computing resource pools, with a focus on GPU intelligent computing resource pool projects [4] - The collaboration aims to create a more efficient, intelligent, and green digital infrastructure service system, addressing diverse business scenario needs through innovative resource allocation mechanisms [4]

Exhibit 99.1 VNET Reports Unaudited First Quarter 2025 Financial Results BEIJING, May 28, 2025 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2025. "We kicked off 2025 with a strong first quarter thanks to excellent execution of our effective dual-core strategy," said Josh Sheng Chen, Founder, Executive Chairpe ...

Core Viewpoint - VNET Group, Inc. reported strong financial results for the first quarter of 2025, driven by significant growth in its wholesale IDC business and effective execution of its dual-core strategy [2][11][25]. Financial Highlights - Total net revenues increased by 18.3% year-over-year to RMB2.25 billion (US$309.5 million) from RMB1.90 billion in the same period of 2024 [6][11]. - Net revenues from the IDC business rose by 27.8% to RMB1.64 billion (US$226.2 million) from RMB1.28 billion in the same period of 2024 [12]. - Wholesale revenues surged by 86.5% to RMB673.2 million (US$92.8 million) from RMB361.0 million in the same period of 2024 [17]. - Retail revenues increased by 4.8% to RMB968.3 million (US$133.4 million) from RMB923.7 million in the same period of 2024 [17]. - Adjusted EBITDA grew by 26.4% year-over-year to RMB682.4 million (US$94.0 million), with an adjusted EBITDA margin of 30.4%, up from 28.4% in the same period of 2024 [20]. Operational Highlights - As of March 31, 2025, wholesale capacity in service increased by 88MW quarter-over-quarter to 573MW, with utilized capacity reaching a record high of 437MW [2][6]. - The utilization rate of wholesale capacity was 76.2% as of March 31, 2025, compared to 72.6% as of December 31, 2024 [6][12]. - Total capacity committed was 571MW as of March 31, 2025, with a commitment rate for capacity in service of 99.7% [6][12]. Business Outlook - The company expects total net revenues for 2025 to be between RMB9,100 million to RMB9,300 million, representing year-over-year growth of 10% to 13% [25]. - Adjusted EBITDA is projected to be in the range of RMB2,700 million to RMB2,760 million, indicating year-over-year growth of 11% to 14% [25].

Group 1 - The core viewpoint of the articles highlights Century Internet's strong financial performance and its position as a leading digital infrastructure provider in China, with significant growth in revenue and net profit [1][2] - As of December 31, 2024, Century Internet's total revenue is projected to be 8.259 billion RMB, representing a year-on-year growth of 11.41%, while the net profit attributable to shareholders is expected to reach 183 million RMB, showing a remarkable increase of 106.93% [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 has established a robust digital infrastructure in key 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, Microsoft 365, Dynamics 365, and Power Platform in China [2] - The company has built a solid foundation for business development for over 6,000 high-quality enterprise clients, including nearly 100 leading companies in high-growth industries, leveraging its strong resources, technological innovation, and operational capabilities [2]

Market Overview - The U.S. stock market experienced a significant decline, with all three major indices posting their largest drop in a month. The Dow Jones fell by 1.91%, the Nasdaq decreased by 1.41%, and the S&P 500 dropped by 1.61% [3] - Major technology stocks also saw declines, with Tesla and Apple each dropping over 2%, while Microsoft, Amazon, and Nvidia fell more than 1%. In contrast, Google saw an increase of nearly 3% [3] Economic Indicators - The yield on the 30-year Treasury bond rose to 5.09%, while the yield on the benchmark 10-year Treasury increased by 11.5 basis points to 4.59%. The 2-year Treasury yield also rose by 4.7 basis points to 4.01%, indicating a close relationship with interest rate expectations [3] Policy Measures - A joint announcement from several Chinese financial regulatory bodies outlined 23 measures to support financing for small and micro enterprises, focusing on increasing financing supply, reducing costs, and improving efficiency [4] - The Shanghai government released a special action plan to boost consumption, emphasizing the integration of advanced technologies like AI and big data into consumer sectors [5] Corporate Actions - Guokai Micro announced plans to acquire assets through a combination of stock issuance and cash payment, focusing on semiconductor wafer foundry and customized chip manufacturing, which is expected to constitute a major asset restructuring [7] - Vanke A signed a borrowing agreement with Shenzhen Metro Group for up to 4.2 billion yuan, using up to 6 billion yuan worth of stock as collateral [8] - Myp Medical is planning to acquire at least 51% of Easy Medical, which is expected to constitute a major asset restructuring [10] - Hongming Co. is planning to purchase 83% of Shenzhen Chisu Automation Equipment for an estimated 151 million yuan, which will also constitute a major asset restructuring [12]

Investment Rating - The report maintains an "Outperform" rating for the computer industry, indicating a positive outlook compared to the market [3]. Core Insights - The report highlights significant developments in the domestic AI chip sector, particularly the upcoming launch of the Harmony PC and advancements in AI applications, which are expected to drive growth in the cloud computing market [3][4]. - The performance of major players like Meta and Tencent shows a mixed trend, with capital expenditures declining, raising concerns about market dynamics [4]. - The report emphasizes the increasing demand for AI applications, with a notable surge in the usage of large models, indicating a robust growth trajectory for the industry [63]. Summary by Sections Industry Data - In Q1 2025, the software industry revenue reached 3.15 trillion yuan, growing by 10.6% year-on-year, with profit margins also improving [12][13]. - The IC design sector showed the highest growth rate at 19.7%, driven by the demand for AI applications and the need for domestic chip production [17]. Domestic Developments - The report discusses the impact of U.S. export controls on AI chips, which have led to increased uncertainty for domestic server ecosystems [26][30]. - The launch of the Harmony PC on May 19, 2025, is seen as a critical step towards enhancing the domestic operating system landscape [56][58]. AI Sector - The report notes that the demand for AI applications has exploded, with daily token usage for the Doubao large model reaching 12.7 trillion, a 3.18-fold increase from December 2024 [63]. - The upcoming release of the DeepSeek-R2 model, which boasts 1.2 trillion parameters, is expected to be a focal point in the market [72]. Computing Power - The report indicates a clear differentiation in the performance of data center operators, with traditional IDC competition intensifying while AIDC is experiencing rapid growth [4]. - Major tech companies are increasing their capital expenditures for AI and core business investments, with Meta raising its investment range for 2025 to between 64 billion and 72 billion USD [4].

Group 1 - UBS analysts believe that market concerns regarding the sustainability of AI investments in China's data center industry are "excessive" and that the sector's valuation has become attractive after a 40%-60% pullback from its peak in February [1] - UBS maintains a "Buy" rating on GDS Holdings Limited (GDS.US) and Century Internet Group (VNET.US) due to strong fundamentals and potential catalysts from data center REITs that may boost stock prices [1] - The report indicates that despite macroeconomic uncertainties, UBS has lowered the target price for GDS from $58 to $45 and for VNET from $23 to $12.80, while reaffirming GDS as its preferred stock [1] Group 2 - UBS expects GDS to benefit from new AI-driven orders and its core infrastructure layout, while VNET's wholesale business is projected to achieve a 56% growth in EBITDA by 2026 [1] - Key conclusions from industry research include manageable impacts from U.S. chip bans, optimization of data center site selection around first-tier cities, and an increase in demand for high-power density racks [1] - UBS also notes that the progress of GDS's REIT approval may support its valuation, predicting that the industry's EBITDA compound annual growth rate (CAGR) will reach 20% by 2026 [2]