BEIJING, Jan. 9, 2024 /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 the results of its extraordinary general meeting held on January 9, 2024, in Beijing. The Company's shareholders adopted the following resolutions: THAT the currently effective fourth amended and restated memorandum and articles of association of the Company be amended and restated by the deletion in their ent ...

Core Viewpoint - VNET Group, Inc. has completed a strategic equity investment totaling US$299 million from Success Flow International Investment Limited and Choice Faith Group Holdings Limited, both affiliated with Shandong Hi-Speed Holdings Group Limited, enhancing its capital structure and shareholder base [1][2]. Investment Details - The strategic investment resulted in Success Flow and Choice Faith acquiring 455,296,932 and 195,127,260 newly issued Class A ordinary shares, representing approximately 29.5% and 12.6% of the total issued shares, respectively [2]. - The voting power held by Success Flow and Choice Faith is approximately 25.0% and 10.7%, respectively [2]. - Success Flow is restricted from transferring any Class A ordinary shares acquired in the investment for three years, subject to certain conditions [2]. Convertible Notes Repurchase - The company is notifying holders of its 0.00% Convertible Senior Notes due 2026 about their right to require the company to repurchase their notes for cash on February 1, 2024 [3][5]. - The repurchase price will be 100% of the principal amount plus any accrued and unpaid special interest, with US$600 million in aggregate principal amount of the notes outstanding as of December 28, 2023 [5]. - The opportunity to exercise the repurchase right begins on January 2, 2024, and ends on January 30, 2024 [6]. Company Overview - VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China, offering hosting, IDC services, cloud services, and business VPN services [9]. - The company operates in over 30 cities in China, serving a diverse customer base of over 7,000 enterprise clients across various industries [9]. Parent Company Overview - Shandong Hi-Speed Holdings Group Limited is a Hong Kong-listed company that serves as an important investment and financing platform, focusing on industrial investment and resource integration [10].

BEIJING, Dec. 28, 2023 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrier- and cloud-neutral internet data center services provider in China, announced that it has entered into a strategic cooperation agreement (the "Agreement") with Shandong Hi-Speed Holdings Group Limited ("SDHG," 00412.HK), an important overseas investment and financing as well as emerging industrial holding platform of Shandong Hi-Speed Group. Pursuant to the Agreement, SDHG and VNET will levera ...

Financial Performance - Revenue reached RMB 1,887 million, a 40% year-over-year increase[6] - Adjusted EBITDA was RMB 508 million, up 116% year-over-year[6] - Adjusted cash gross margin was 391%[33] - The company maintains a strong liquidity position with RMB 2,240 million in unused credit line and a cash position of RMB 3,024 million[6] Capacity and Utilization - Total cabinets under management reached 88,922[6] - Utilized cabinets numbered 52,408[6] - Overall utilization rate was 589%[6] - Wholesale capacity in service and under MoU increased by 45 MW in 3Q[6] Customer Base - The company serves over 7,000 enterprise customers, with over 1,400 using colocation, connectivity, and other services[31] - Recurring revenues account for approximately 90% of net revenues since IPO[31] - The churn rate for the core IDC business remains low, below 1%[31] - The top 20 customers contribute 415% of total revenues in 3Q23[31] Future Growth and Strategy - The company employs a dual-core strategy targeting both wholesale and retail IDC markets[13] - The company is committed to achieving carbon neutrality and 100% renewable energy usage by 2030[16] - The company has secured resources for 3,490 cabinets and has an expansion target of 8,000-9,000 cabinets[20]

Financial Data and Key Metrics Changes - Total net revenues increased by 4% year-over-year to RMB1.89 billion, driven by growth in the mine business [6][15] - Adjusted EBITDA grew by 11.6% year-over-year to RMB507.9 million, with an adjusted EBITDA margin of 26.9% compared to 25.1% in the same period of 2022 [6][17] - Net loss attributable to VNET Group was RMB50.5 million, significantly improved from a net loss of RMB425.2 million in the same period of 2022 [17] Business Line Data and Key Metrics Changes - The number of utilized cabinets increased by 1,092 to 52,408, resulting in an overall utilization rate of 59% [5] - Retail MRR per cabinet remained high at RMB9,495, although there was a quarter-on-quarter decline in utilization rate and retail MRR [5][28] - The company successfully delivered over 2,600 high-power density cabinets to a wholesale customer in the Yangtze River-Delta region [8] Market Data and Key Metrics Changes - The demand for premium IDC services is increasing, particularly driven by AI applications and large language model training [6][7] - The company is seeing rising demand from various industries, including local services, healthcare, and autonomous driving [9][10] Company Strategy and Development Direction - The company is focusing on high-quality revenues in both wholesale and retail IDC markets, with a strategic shift towards AI-driven demand [6][19] - Plans to reduce exposure to low-margin businesses while enhancing resources for high-profit areas, particularly in wholesale and AI-driven sectors [25][34] Management's Comments on Operating Environment and Future Outlook - Management highlighted the supportive government policies for computing power infrastructure development in China, which is expected to accelerate growth [12] - The company anticipates a continued increase in AI-driven demand across various sectors, with a focus on maintaining high-quality growth [19][39] Other Important Information - The company expects full-year 2023 total net revenue to be between RMB7,400 million and RMB7,600 million, reflecting a year-over-year growth of 4.7% to 7.6% [18] - Capital expenditure for the full year is expected to be around RMB3.8 billion, with a significant increase anticipated in 2024 due to growing demand [31] Q&A Session Summary Question: Update on convertible bond repayment and asset monetization - Management is prioritizing liability management and is working on new funding from equity and debt investments, as well as engaging with CB creditors for the best way forward [22][23] Question: Revenue and EBITDA guidance revision - The company is focusing on higher profit margin businesses, particularly in AI-driven wholesale, while reducing low-profit business exposure [25] Question: Third quarter MRR decline - Management noted that the decline in MRR is normal and expects it to recover by the end of the year, particularly for wholesale customers [28][29] Question: CapEx outlook - Full-year CapEx is expected to be around RMB3.8 billion, with a significant increase anticipated in 2024 due to growing demand in the wholesale business [31] Question: Revenue breakdown for updated guidance - Management is reallocating resources from traditional retail to AI-driven wholesale customers, which has impacted revenue guidance but is expected to improve EBITDA margins [34]

Exhibit 99.1 VNET Reports Unaudited Third Quarter 2023 Financial Results BEIJING, November 15, 2023 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrierand cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the third quarter ended September 30, 2023. "We recorded another solid performance in the third quarter of 2023, highlighted by smooth and timely deliveries of approximately 3,500 cabinets as well as n ...

VNET Group, Inc. (NASDAQ:VNET) Q2 2023 Results Conference Call August 23, 2023 9:00 PM ET Company Participants Xinyuan Liu - IRO Jeff Dong - CEO Qiyu Wang - CFO Tim Chen - CSO Conference Call Participants Edison Lee - Jefferies Sara Wang - UBS Timothy Zhao - Goldman Sachs Operator Hello, ladies and gentlemen. Thank you for standing by for the Second Quarter 2023 Earnings Conference Call from VNET Group, Inc. [Operator Instructions]. Participants from our management include Mr. Jeff Dong, Chief Executive Of ...

[Management Commentary & Strategy](index=1&type=section&id=Management%20Commentary%20%26%20Strategy) Management highlighted a successful dual-core growth strategy, securing significant new wholesale (45MW) and retail (7MW) contracts, driving 9.9% YoY adjusted EBITDA growth and a 29.4% margin expansion - The company is seeing emerging demand for IDC services driven by new AI application scenarios in China and remains poised to capture this growth with its high-performance data center resources[2](index=2&type=chunk) - VNET continues to build sales momentum, securing an extended **45MW wholesale contract** with an internet giant and a new **7MW retail contract** with a local service sector customer[3](index=3&type=chunk) - Management's focus on high-quality revenue and enhanced operating efficiency drove a **9.9% YoY increase** in adjusted EBITDA to **RMB535.0 million** and expanded the adjusted EBITDA margin to **29.4%**[4](index=4&type=chunk) [Q2 2023 Financial & Operational Highlights](index=1&type=section&id=Q2%202023%20Financial%20%26%20Operational%20Highlights) VNET reported solid Q2 2023 growth with a 5.6% YoY revenue increase, 9.9% adjusted EBITDA rise, and improved cabinet utilization to 59.0% [Financial Highlights](index=1&type=section&id=Second%20Quarter%202023%20Financial%20Highlights) Q2 2023 Key Financial Metrics (YoY) | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | Change | Margin | | :--- | :--- | :--- | :--- | :--- | | Net Revenues | 1.82 billion | 1.72 billion | +5.6% | N/A | | Adjusted Cash Gross Profit | 742.9 million | 713.7 million | +4.1% | 40.8% | | Adjusted EBITDA | 535.0 million | 486.9 million | +9.9% | 29.4% | [Operational Highlights](index=1&type=section&id=Second%20Quarter%202023%20Operational%20Highlights) Key Operational Metrics Comparison | Metric | June 30, 2023 | March 31, 2023 | June 30, 2022 | | :--- | :--- | :--- | :--- | | Total Cabinets Under Management | 86,927 | 87,310 | 80,831 | | Cabinets Utilized by Customers | 51,316 | 49,316 | 44,500 | | Overall Utilization Rate | 59.0% | 56.5% | 55.1% | | Retail IDC MRR per Cabinet (RMB) | 9,530 | 9,486 | 9,186 | [Detailed Financial Results (Q2 2023)](index=3&type=section&id=Detailed%20Financial%20Results%20%28Q2%202023%29) VNET's Q2 2023 net revenues grew 5.6% YoY to RMB 1.82 billion, with gross margin declining to 18.8%, but strong cost control narrowed net loss to RMB 232.9 million from RMB 377.2 million YoY Q2 2023 Income Statement Summary (YoY) | Metric | Q2 2023 (RMB) | Q2 2022 (RMB) | Change | | :--- | :--- | :--- | :--- | | Net Revenues | 1.82 billion | 1.72 billion | +5.6% | | Gross Profit | 342.7 million | 357.8 million | -4.2% | | Total Operating Expenses | 249.5 million | 321.7 million | -22.4% | | Net Loss Attributable to VNET | (232.9 million) | (377.2 million) | Loss Narrowed | - As of June 30, 2023, the company's cash, cash equivalents, restricted cash, and short-term investments totaled **RMB 2.76 billion**[11](index=11&type=chunk) - Net cash generated from operating activities was **RMB 423.5 million**, a decrease from **RMB 942.7 million** in the same period of 2022[12](index=12&type=chunk) [Business Outlook](index=4&type=section&id=Business%20Outlook) VNET reaffirms full-year 2023 financial guidance, projecting continued growth in both revenue and adjusted EBITDA Full Year 2023 Guidance | Metric | 2023 Forecast Range (RMB) | YoY Growth | | :--- | :--- | :--- | | Net Revenues | 7,600 million - 7,900 million | 7.6% - 11.8% | | Adjusted EBITDA | 2,025 million - 2,125 million | 8.1% - 13.5% | - The provided business outlook remains unchanged from previous estimates[13](index=13&type=chunk) [Appendix: Financial Statements](index=6&type=section&id=Appendix%3A%20Financial%20Statements) This appendix presents the unaudited condensed consolidated financial statements for Q2 2023, including Balance Sheets, Statements of Operations, GAAP to Non-GAAP Reconciliations, and Cash Flows [Consolidated Balance Sheets](index=6&type=section&id=VNET%20GROUP%2C%20INC.%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) [Consolidated Statements of Operations](index=7&type=section&id=VNET%20GROUP%2C%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) [Reconciliations of GAAP and Non-GAAP Results](index=8&type=section&id=VNET%20GROUP%2C%20INC.%20RECONCILIATIONS%20OF%20GAAP%20AND%20NON-GAAP%20RESULTS) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=VNET%20GROUP%2C%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS)

Financial Data and Key Metrics Changes - First quarter revenue reached RMB 1.81 billion, representing a year-over-year increase of 9.7% [6][14] - Adjusted EBITDA grew about 10% year-over-year to RMB 756.2 million, indicating stable growth amid China's post-pandemic recovery [6][14] - Gross profit was RMB 352.4 million, a decrease of 0.9% from the same period in 2022, with a gross margin of 19.5% [14][15] - Net income attributable to ordinary shareholders was RMB 82.3 million, down from RMB 90.7 million in the same period of 2022 [16] Business Line Data and Key Metrics Changes - The company ended the quarter with 1,300 utilized cabinets, increasing the overall utilization rate to 56.5% from 55% in the previous quarter [5] - Retail MRR per cabinet reached a record high of RMB 9,486, up from RMB 9,371 in the previous quarter [5] - The majority of new utilized cabinets added in the first quarter came from the wholesale business, driven by large Internet companies [27][29] Market Data and Key Metrics Changes - China's GDP grew 4.5% year-over-year in the first quarter, indicating a clear post-pandemic recovery path [6] - The digital economy is expected to be a key growth driver for China, supported by government initiatives [6][7] Company Strategy and Development Direction - The company is committed to a dual core growth strategy focusing on both wholesale and retail IDC markets [7][12] - The company aims to leverage its strategic position in the IDC space to provide improved services and capitalize on favorable policy landscapes [7][12] - The introduction of Microsoft Teams in China is expected to enhance the company's service offerings and customer engagement [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the domestic IDC service industry's growth prospects, driven by digital transformation demands [12] - The company is focused on delivering sustainable value to stakeholders while navigating the evolving market landscape [18] Other Important Information - The company released its third annual ESG report, highlighting initiatives such as a green power purchase agreement and increased female representation in management [10][11] - The outlook for 2023 remains unchanged, with net revenues expected to be between RMB 7,600 million and RMB 7,900 million [17] Q&A Session Summary Question: Will customer demand continue to improve in the second quarter? - Management noted that while there are positive signals from the market, patience is required for full recovery [21] Question: How does management view recent price cuts by public cloud vendors? - Management indicated that there is no direct competition with cloud service players and that pricing has already been determined in contracts [22] Question: What is the outlook for the Microsoft business and VPN business? - The non-IDC business is expected to continue growing, particularly with new Microsoft product launches [28] Question: What is driving the increase in retail MRR? - The increase is attributed to additional value-added services from existing customers and the addition of higher MRR cabinets [35] Question: What is the outlook for EBITDA margins going forward? - Management expects some fluctuations in margins due to seasonality and cost management efforts [42]

Exhibit 99.1 VNET Reports Unaudited First Quarter 2023 Financial Results BEIJING, May 24, 2023 /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, 2023. "We were pleased to kick off 2023 with a solid first quarter, thanks to our effective dual-core growth strategy and competitive service offerings," said Jeff Dong, ...