21Vianet Group, Inc. (NASDAQ:VNET) Q2 2020 Earnings Conference Call August 19, 2020 8:00 AM ET Company Participants Rene Jiang - Director of Investor Relations Shiqi Wang - President and Chief Executive Officer Sharon Liu - Chief Financial Officer Conference Call Participants Yang Liu - Morgan Stanley James Wang - UBS Investment Bank Colin McCallum - Credit Suisse Xin Yang - China International Capital Corporation Limited Yu Sang Lee - Jefferies LLC Chris Ko - DBS Vickers Securities Tina Hou - Goldman Sachs ...

Financial Performance & Growth - 1Q20 net revenues increased by 25.1% year-over-year to CNY 1,090.797 million[65] - 1Q20 adjusted EBITDA increased by 2.3% year-over-year to CNY 259.389 million[65] - The company projects 2020 revenue to be between CNY 4,600 million and CNY 4,800 million, representing a 24% year-over-year increase[88] - The company projects 2020 adjusted EBITDA to be between CNY 1,250 million and CNY 1,350 million, representing a 24% year-over-year increase[88] IDC Capacity & Expansion - Total IDC capacity reached 39,646 R as of 1Q20[14] - The company is targeting 15,000 cabinet expansion in FY2020 and another 15,000 in FY2021[26] - Self-built cabinets accounted for 89% of the total capacity as of 1Q20[47] - Beijing accounted for approximately 50% of the company's self-built cabinets, with approximately 17,800 cabinets[34] Market Position & Strategy - The company is a leading carrier-neutral IDC service provider in China[16,47] - The company employs a dual-core strategy, addressing both wholesale and scale retail IDC market opportunities[16] - Over 90% of net revenues were recurring revenues since IPO[54] Shareholding Structure - Tuspark Innovation Venture Ltd holds 21.0% of share and 50.7% of voting power[92]

21Vianet Group, Inc. (NASDAQ:VNET) Q1 2020 Earnings Conference Call May 14, 2020 8:00 PM ET Company Participants Rene Jiang - Director, Investor Relations Alvin Wang - President & Chief Executive Officer Sharon Liu - Chief Financial Officer Conference Call Participants Edison Lee - Jefferies Yang Liu - Morgan Stanley Jonathan Atkin - RBC Capital Markets Operator Good morning and good evening, ladies and gentlemen. Thank you, and welcome to 21Vianet Group's First Quarter 2020 Earnings Conference Call. With u ...

Foreign Exchange and Market Risks - Fluctuations in exchange rates, particularly between the Renminbi and the U.S. dollar, could materially affect the company's revenues and financial condition, with costs primarily in RMB [90]. - The company has not engaged in any hedging transactions to mitigate foreign currency exchange risk, which may expose it to potential currency exchange losses [90]. - The trading prices of the company's ADSs have shown significant volatility, ranging from $6.31 to $11.00 per ADS in 2019, with a closing price of $13.45 on April 1, 2020 [94]. - The market price of the company's ADSs may be influenced by the performance of other Chinese companies listed in the U.S., as well as ongoing regulatory scrutiny affecting the sector [94]. Corporate Governance and Shareholder Rights - The company's triple-class voting structure allows Class B and Class C shareholders significantly more voting power, potentially limiting the influence of Class A shareholders [97]. - The company has a triple-class voting structure that may limit the ability of others to acquire control, potentially affecting shareholder rights [105]. - The company is exempt from certain Nasdaq corporate governance requirements, which may limit investor protections [101]. - Future sales of a substantial number of ADSs could lead to a decline in the market price of the company's ADSs, impacting capital-raising efforts [100]. Regulatory Compliance and Legal Risks - The company is subject to PRC regulations that may limit its ability to acquire local companies or inject capital into its subsidiaries, which could adversely affect operations [91]. - Compliance with SAFE regulations is critical for PRC resident beneficial owners, and failure to do so may result in fines and limit profit distribution capabilities [91]. - The company has not completed all necessary registrations for employee share option plans, which could expose it to legal sanctions [93]. - The company faces risks related to negative publicity and allegations against it or its competitors, which could adversely affect investor sentiment and market performance [96]. Financial Performance and Revenue Growth - Total net revenues from hosting and related services increased from RMB2,975.2 million in 2017 to RMB3,789.0 million (US$544.3 million) in 2019, representing a CAGR of 12.9% from 2017 to 2019 [168]. - Hosting and related services revenues were RMB3,789.0 million (US$544.3 million) in 2019, representing 100% of total net revenues [176]. - The average monthly recurring revenue from the top 20 customers increased from RMB96.4 million in 2017 to RMB110.3 million (US$15.8 million) in 2019 [113]. - Revenue from the top five customers accounted for approximately 22% of total net revenues in 2019, with the largest customer contributing less than 12% [129]. Operational Capacity and Infrastructure - The company operates 26 self-built data centers and 51 partnered data centers, managing 36,291 cabinets that house 190,260 servers as of December 31, 2019 [112]. - The total number of servers housed in the data centers increased to 190,260 as of December 31, 2019, up from 180,177 in 2018, representing a growth of approximately 6% [126]. - The average monthly hosting churn rate for the core internet data center business was 0.5%, 0.3%, and 0.5% in 2017, 2018, and 2019, respectively [113]. - The company guarantees 99.9% uptime for power in its service level agreements, supported by fully-redundant data centers and resilient power supplies [114]. Research and Development - The company holds 70 patents, 45 patent applications, and 72 software copyright registrations related to internet infrastructure services, showcasing its commitment to research and development [132]. - Research and development expenses were RMB88.8 million (US$12.8 million) in 2019, with a focus on smart routing technology and cloud computing infrastructure [221]. Taxation and Financial Structure - The Cayman Islands imposes no taxes on profits, income, or gains, and there are no withholding taxes on dividends paid to shareholders [278]. - Under the EIT Law, foreign enterprises with effective management in the PRC are subject to a 25% income tax on worldwide income [279]. - The company believes it is not classified as a PRC resident enterprise, which could result in unfavorable tax consequences [279]. - The company does not plan to pay any dividends on its ordinary shares in the foreseeable future, intending to retain available funds for business operations and expansion [266]. Employee and Executive Compensation - The company had a total of 2,295 employees, with 1,072 in operations (47%), 350 in sales and marketing (15%), 193 in research and development (8%), and 680 in general and administrative roles (30%) [250]. - In 2019, the total cash compensation paid to executive officers was approximately RMB20.9 million (US$3.0 million), including RMB0.73 million (US$0.1 million) for benefits [238]. - The total share-based compensation provided to directors and officers amounted to RMB36.8 million (US$5.3 million) in 2019 [238]. - The company aims to attract and retain top talent through its share incentive plans [239]. Legal Proceedings and Settlements - The company reached a settlement agreement for US$9,000,000 to resolve class action lawsuits related to alleged misstatements in financial disclosures [264]. - The company was awarded RMB150,000 in damages for each of the two intellectual property rights infringement cases against Shanghai 21Vianet Information System Co., Ltd. [265].

Financial Data and Key Metrics Changes - In Q4 2019, the company reported revenues of RMB1.05 billion, a 16.2% increase from RMB901.9 million in Q4 2018 [13] - Adjusted EBITDA for the same quarter grew by 3.3% to RMB263.8 million from RMB255.3 million in Q4 2018 [15] - Adjusted cash gross profit in Q4 was RMB425.9 million, compared to RMB409.2 million in the same period of 2018, with a gross margin of 40.6% [14] - Net loss attributable to ordinary shares in Q4 was RMB16.4 million, with basic and diluted losses of RMB0.02 per ordinary share and RMB0.12 per ADS respectively [15] Business Line Data and Key Metrics Changes - The company expanded its total cabinet capacity to 36,291 by the end of Q4 2019, including 32,047 self-built cabinets [5] - Hosting MRR per cabinet improved to RMB8,822 from RMB8,457 in Q4 2018 [13] - The overall utilization rate in Q4 was 65.6%, with a higher rate of 71.8% when excluding newly added cabinets [13] Market Data and Key Metrics Changes - The company noted a mixed impact from COVID-19, with increased demand in sectors like online education and entertainment, while other sectors like retail and hospitality faced declines [10] - The company expects to see a surge in demand for certain industries due to the ongoing digital transformation [8] Company Strategy and Development Direction - The company established a dual-core strategy targeting both wholesale and retail IDC markets, adapting cabinet delivery to meet diverse customer needs [6] - Plans for 2020 include delivering 15,000 cabinets and achieving over 20% year-over-year revenue growth [9] - The company aims to enhance its cloud services and partnerships to support digital transformation for enterprise customers [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential despite short-term uncertainties due to COVID-19 [11] - The company anticipates a favorable banking environment and increased long-term contracts with well-known customers [16] - For Q1 2020, net revenue is expected to be between RMB1.07 billion and RMB1.09 billion, with adjusted EBITDA between RMB245 million and RMB265 million [17] Other Important Information - The company plans to maintain a healthy balance sheet to maximize growth opportunities, with CapEx projected between RMB2.4 billion and RMB2.8 billion for 2020 [16] - A private placement of $200 million in convertible notes was announced to support capacity expansion plans [16] Q&A Session Summary Question: Government support for data center construction - Management views the central government's support for data center construction as a positive policy that will encourage growth in the industry [20] Question: COVID-19 impact on construction - Construction has resumed outside of Beijing, with efforts to work closely with local authorities to resume projects in Beijing [22] Question: CapEx breakdown - Approximately RMB2.1 billion to RMB2.2 billion of the CapEx will be for the 15,000 cabinets to be delivered in 2020, with the remainder for future projects [23] Question: Wholesale segment demand - Demand from major customers, especially in the cloud sector, remains strong despite some delays [26] Question: MOU details and revenue recognition - The MOU signed in Q4 is expected to start contributing revenue in the first half of 2020 [30] Question: Impairment of receivables - The impairment was a one-off expense and is not expected to recur in 2020 [45]

21Vianet Group, Inc. (NASDAQ:VNET) Q3 2019 Earnings Conference Call November 18, 2019 8:00 PM ET Company Participants Rene Jiang - IR Alvin Wang - CEO and President Sharon Liu - CFO Conference Call Participants Rex Wu - Jefferies Camille Xu - Morgan Stanley Stella Li - Citigroup Operator Operator Ladies and gentlemen, thank you, and welcome to 21Vianet Group's Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer sessi ...