VNET Group, Inc. (NASDAQ:VNET) Q1 2022 Earnings Conference Call May 24, 2022 9:00 PM ET Company Participants Xinyuan Liu - IR Director Samuel Shen - CEO & Executive Chairman of Retail IDC Tim Chen - CFO Conference Call Participants Yang Liu - Morgan Stanley Edison Lee - Jefferies Hongjie Li - CICC Albert Hung - JPMorgan Clive Cheung - Credit Suisse Sara Wang - UBS Ethan Zhang - Nomura Securities Guohan Wang - Daiwa Securities Operator Hello, ladies and gentlemen. Thank you for standing by for the Firs ...

VNET First Quarter 2022 Financial Report [Performance Highlights](index=1&type=section&id=Performance%20Highlights) The company reported solid Q1 2022 growth in revenue and adjusted EBITDA alongside an expansion in cabinet capacity Q1 2022 Financial Highlights (YoY) | Metric | Q1 2022 | Q1 2021 | Change | | :--- | :--- | :--- | :--- | | Net Revenues | RMB 1.65 billion | RMB 1.39 billion | +18.6% | | Adjusted Cash Gross Profit (non-GAAP) | RMB 684.8 million | RMB 605.3 million | +13.1% | | Adjusted EBITDA (non-GAAP) | RMB 506.2 million | RMB 415.1 million | +21.9% | | Adjusted EBITDA Margin (non-GAAP) | 30.8% | 29.9% | +0.9 p.p. | Q1 2022 Operational Highlights | Metric | As of Mar 31, 2022 | As of Mar 31, 2021 | Q1 2022 Change | | :--- | :--- | :--- | :--- | | Total Cabinets Under Management | 78,964 | 55,926 | +424 (QoQ) | | Utilized Cabinets | 43,032 | 33,582 | +1,329 (QoQ) | | Overall Utilization Rate | 54.5% | 60.0% | -5.5 p.p. (YoY) | | Retail IDC MRR per Cabinet | RMB 9,236 | RMB 9,144 | +1.0% (YoY) | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributed strong Q1 results to its dual-core strategy, despite adverse impacts from a COVID-19 resurgence - The CEO emphasized that the **dual-core strategy** (wholesale and retail IDC) drove solid operational and financial results, bolstered by the digital economy and favorable policies[4](index=4&type=chunk) - Key business achievements in Q1 include signing wholesale contracts for **~16MW of capacity** and steady order growth in the retail business from new and existing customers[4](index=4&type=chunk) - The CFO noted that revenue and adjusted EBITDA growth were in line with expectations, despite seasonal factors and adverse effects from the **COVID-19 resurgence** in several tier-1 cities[4](index=4&type=chunk) [Detailed Financial Results](index=1&type=section&id=First%20Quarter%202022%20Financial%20Results) The company achieved a significant net profit turnaround driven by fair value gains, despite a slight decrease in gross margin Q1 2022 Profit & Loss Summary (YoY) | Metric | Q1 2022 | Q1 2021 | Change | | :--- | :--- | :--- | :--- | | Net Revenues | RMB 1.65 billion | RMB 1.39 billion | +18.6% | | Gross Profit | RMB 355.5 million | RMB 323.3 million | +10.0% | | Gross Margin | 21.6% | 23.3% | -1.7 p.p. | | Net Profit/(Loss) Attributable to Shareholders | RMB 90.7 million | (RMB 84.7 million) | Turnaround to Profit | | Diluted Profit/(Loss) per ADS | RMB 0.18 | (RMB 0.60) | Turnaround to Profit | - The **turnaround to net profit** was mainly contributed by gains from fair value changes of convertible promissory notes and other operating income[9](index=9&type=chunk) - As of March 31, 2022, the company's cash, cash equivalents, restricted cash, and short-term investments totaled **RMB 3.36 billion** (US$530.8 million)[10](index=10&type=chunk) - Net cash generated from operating activities increased significantly to **RMB 482.6 million** from RMB 274.5 million in the same period of 2021[10](index=10&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) VNET reaffirmed its full-year 2022 guidance for net revenues and adjusted EBITDA, noting the forecast is preliminary Full Year 2022 Guidance | Metric | Guidance Range (RMB) | | :--- | :--- | | Net Revenues | 7,450 million - 7,750 million | | Adjusted EBITDA | 1,975 million - 2,125 million | - The provided outlook remains unchanged from previous estimates and does not account for potential future impacts from the ongoing **COVID-19 pandemic**[11](index=11&type=chunk)[12](index=12&type=chunk) Financial Statements and Supplementary Information [Consolidated Balance Sheets](index=5&type=section&id=VNET%20GROUP%2C%20INC.%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets and liabilities grew, driven by increases in cash and cash equivalents and convertible promissory notes, respectively Key Balance Sheet Items (in thousands RMB) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash and cash equivalents | 3,042,359 | 1,372,481 | | Total Current Assets | 7,416,385 | 5,324,123 | | Total Assets | 25,515,209 | 23,095,039 | | Total Current Liabilities | 5,312,962 | 5,179,995 | | Total Liabilities | 17,817,780 | 15,494,038 | | Total Shareholders' Equity | 7,697,429 | 7,601,001 | [Consolidated Statements of Operations](index=7&type=section&id=VNET%20GROUP%2C%20INC.%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The company reported net revenues of RMB 1.65 billion and achieved a net profit of RMB 90.7 million for the quarter Q1 2022 vs Q1 2021 Income Statement (in thousands RMB) | Account | Q1 2022 (Unaudited) | Q1 2021 (Unaudited) | | :--- | :--- | :--- | | Net revenues | 1,645,486 | 1,386,923 | | Gross profit | 355,521 | 323,312 | | Operating profit (loss) | 96,058 | 80,132 | | Net (loss) profit attributable to shareholders | 90,706 | (84,659) | [Reconciliations of GAAP and Non-GAAP Results](index=8&type=section&id=VNET%20GROUP%2C%20INC.%20RECONCILIATIONS%20OF%20GAAP%20AND%20NON-GAAP%20RESULTS) This section provides reconciliations from GAAP metrics to non-GAAP measures, detailing adjustments for items like depreciation and amortization Reconciliation to Adjusted Cash Gross Profit (Q1 2022, in thousands RMB) | Item | Amount | | :--- | :--- | | Gross profit (GAAP) | 355,521 | | Plus: depreciation and amortization | 327,393 | | Plus: share-based compensation expenses | 1,860 | | **Adjusted cash gross profit (Non-GAAP)** | **684,774** | Reconciliation to Adjusted EBITDA (Q1 2022, in thousands RMB) | Item | Amount | | :--- | :--- | | Operating profit (GAAP) | 96,058 | | Plus: depreciation and amortization | 349,609 | | Plus: share-based compensation expenses | 43,245 | | Plus: compensation for postcombination employment | 17,260 | | **Adjusted EBITDA (Non-GAAP)** | **506,172** | [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=VNET%20GROUP%2C%20INC.%20CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) Strong cash from operations and financing activities offset investing outflows, resulting in a net increase in cash of RMB 1.66 billion Cash Flow Summary (Q1 2022, in thousands RMB) | Activity | Amount | | :--- | :--- | | Net cash generated from operating activities | 482,599 | | Net cash used in investing activities | (1,032,758) | | Net cash generated from financing activities | 2,213,904 | | **Net increase in cash and cash equivalents** | **1,656,417** | Other Information [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) The company provided details for its Q1 2022 earnings conference call, including webcast and dial-in information - An earnings conference call was scheduled for May 24, 2022 (US) / May 25, 2022 (Beijing) to discuss the results[14](index=14&type=chunk) - Registration and dial-in information were provided for participants, and a live and archived webcast is available on the company's investor relations website[13](index=13&type=chunk)[14](index=14&type=chunk) [Notes and Disclaimers](index=3&type=section&id=Notes%20and%20Disclaimers) This section clarifies the use of non-GAAP measures, the RMB to USD exchange rate, and contains forward-looking statement disclaimers - The company uses **non-GAAP measures** like adjusted EBITDA and adjusted cash gross profit to supplement its U.S. GAAP results and help investors assess operating performance[15](index=15&type=chunk)[16](index=16&type=chunk) - All translations from RMB to USD were made at a rate of **RMB6.3393 to US$1.00**, the rate in effect on March 31, 2022[17](index=17&type=chunk) - The financial information is **unaudited and preliminary**, subject to potential adjustments, and the report contains forward-looking statements[18](index=18&type=chunk)[20](index=20&type=chunk)

Financial Position - As of December 31, 2021, the company had long-term borrowings (current portions) of RMB384.2 million (US$60.3 million) and long-term borrowings (excluding current portions) of RMB2,215.0 million (US$347.6 million) [430] - The weighted average interest rate for short-term bank borrowings was 5.22% per annum, while long-term borrowings bore a weighted average interest rate of 5.31% per annum [430] - A hypothetical 1% decrease in interest rates would have resulted in a decrease of approximately RMB26.0 million (US$4.1 million) in interest expense for the year ended December 31, 2021 [430] - The company had total U.S. dollar-denominated cash and cash equivalents of US$66.9 million as of December 31, 2021 [431] - A hypothetical 10% increase in the exchange rate of the U.S. dollar against the RMB would have resulted in an increase of RMB42.6 million (US$6.7 million) in the value of U.S. dollar-denominated financial assets [431] Economic Indicators - The annual average percent changes in the consumer price index in China for 2019, 2020, and 2021 were 2.9%, 2.5%, and 0.9%, respectively [432] Internal Controls - The company's internal control over financial reporting was assessed as effective as of December 31, 2021, based on the COSO criteria [444] - No changes in internal controls over financial reporting that materially affected or are likely to materially affect the internal controls were reported during the period covered by the annual report [449] - The internal control process is designed to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements [447] - Internal controls include policies and procedures for maintaining accurate records of transactions and asset dispositions [447] - Reasonable assurance is provided that transactions are recorded to permit financial statement preparation in accordance with generally accepted accounting principles [447] - Internal controls aim to prevent or detect unauthorized acquisition, use, or disposition of company assets that could materially affect financial statements [447] - Limitations of internal controls may prevent or detect misstatements, and effectiveness evaluations are subject to risks of inadequacy due to changing conditions [447] ADS Program - The company received no reimbursement from the depositary for expenses incurred in connection with the establishment and maintenance of the ADS program for the year ended December 31, 2021 [438] - The depositary may charge fees of up to US$0.05 per ADS for various services, including issuance and cancellation of ADSs [436] Asset Composition - Beijing TenxCloud Technology Co., Ltd. constituted 0.7% and 1.0% of total and net assets, respectively, as of December 31, 2021 [444]

VNET Group, Inc. (NASDAQ:VNET) Q4 2021, Earnings Conference Call March 30, 2022 9:00 PM ET Company Participants Samuel Shen – Chief Executive Officer and Executive Chairman of Retail IDC Tim Chen – Chief Financial Officer Xinyuan Liu – Director of Investor Relations Conference Call Participants Yang Liu – Morgan Stanley Edison Lee – Jefferies Cong Sherry – CICC Sarah Wang – UBS Clive Cheung – Credit Suisse Ethan Zhang – Nomura Securities Albert Hung – JP Morgan Guohan Wang – Daiwa Operator Good morning and ...

Financial Data and Key Metrics Changes - The company achieved net revenues of RMB1.56 billion in Q3 2021, a 25.3% increase from RMB1.25 billion in Q3 2020, driven by increased customer demand for scalable IDC solutions [16][15] - Adjusted EBITDA rose by 22.2% to RMB450.4 million, with an adjusted EBITDA margin of 28.9%, compared to 29.6% in the same period of 2020 [18][15] - Gross profit increased by 36.4% to RMB375.2 million, with a gross margin of 24%, up from 22.1% year-over-year [16][15] Business Line Data and Key Metrics Changes - The wholesale business saw healthy momentum, with increased cabinet utilization from internet and cloud service customers [9] - The retail business expanded its client base, securing new relationships with companies like China Chengxin Credit Rating Group and Real AI, while also receiving add-on orders from existing customers [10] - The cloud business is generating additional interest, particularly from partnerships beyond Microsoft, indicating growth potential in this segment [11] Market Data and Key Metrics Changes - The company added 2,388 cabinets on a net basis during Q3 2021, with a utilization rate for newly-built cabinets increasing by 5.5 percentage points to 34.7% [8] - The compound utilization rate remained stable at around 60%, with expectations to achieve a full-year target of 25,000 standard cabinets [8] Company Strategy and Development Direction - The company is executing a dual-core growth engine strategy, focusing on both wholesale and retail IDC services to capitalize on digitalization trends [6][7] - Plans to deepen market penetration, diversify sector coverage, and broaden the customer base are in place to capture growth opportunities from digital transformation [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand in the coming quarters despite regulatory uncertainties, citing trends in data generation and cloud adoption [24][26] - The company is cautiously optimistic about the impact of potential regulatory changes and power tariffs, expecting limited effects on margins due to pass-through mechanisms in contracts [27][28] Other Important Information - The company received recognition for its ESG initiatives, with several data centers awarded for their environmental sustainability performance [12] - The company anticipates net revenues for Q4 2021 to be in the range of RMB1.75 billion to RMB1.77 billion, with full-year revenues expected between RMB6.19 billion and RMB6.21 billion [20] Q&A Session All Questions and Answers Question: Customer demand outlook and wholesale sales momentum - Management noted that datasets are doubling every 18 months and that COVID-19 has accelerated digital transformation, leading to bullish demand outlook [24] - Regarding margin risks from utility costs, management indicated that any potential tariff increases would have limited impact due to pass-through clauses in contracts [27][28] Question: CapEx guidance and retail MRR trends - Management explained the reduction in CapEx guidance from RMB5.5 billion to RMB1.8 billion due to fewer opportunities for securing future resources and lack of M&A activity [30][32] - Retail MRR growth is attributed to value-added services and hybrid multi-cloud offerings, with expectations for continued upward trends [34][36] Question: Cabinet addition guidance and margin outlook - Management confirmed the guidance of adding 25,000 cabinets annually, with 80% of resources secured for the next year [39] - The expected reduction in EBITDA margin for Q4 is due to increased costs associated with cabinet deliveries, which will stabilize over time [40] Question: Impact of power restrictions and green power utilization - Management stated that power control measures had limited impact on operations, with expectations for easing of restrictions [44] - The company is exploring partnerships to increase green power utilization, currently constrained by grid purchasing limitations [45][46] Question: Power quota challenges and future growth strategies - Management acknowledged challenges in obtaining power quotas but expressed confidence in securing necessary resources due to long-standing industry presence [69] - The company is prepared to adjust its CapEx strategy based on customer demand and market conditions [80]

Financial Highlights - VNET Group's net revenue grew by 25.3% year-over-year in 3Q21[12] - Adjusted EBITDA increased by 22.2% year-over-year in 3Q21[12] - The adjusted cash gross margin was 43.2% in 3Q21, a 1.0 percentage point increase year-over-year[53] - The company's revenue guidance for 2021 is RMB 6190 million to RMB 6210 million, representing a 28.5% year-over-year increase[65] - The adjusted EBITDA guidance for 2021 is RMB 1740 million to RMB 1760 million, representing a 32.2% year-over-year increase[65] Capacity and Operations - Net cabinet additions in 3Q21 were 2,388 R[12] - Total capacity reached 65,264 R[12] - Mature cabinets had a utilization rate of 75.5%[12] - Retail MRR (Monthly Recurring Revenue) per cabinet was RMB 9,296[12] - The company has approximately 230 MW of capacity in service and/or under MOU (Memorandum of Understanding)[12, 21, 22] Strategic Positioning - VNET Group has an approximately 11% market share in China's carrier-neutral data center services market[13] - The company employs a dual-core strategy, targeting both wholesale and retail IDC market opportunities[16]

[Performance Highlights](index=1&type=section&id=Performance%20Highlights) VNET reported robust Q3 2021 financial and operational results, exceeding guidance with significant revenue and adjusted EBITDA growth [Third Quarter 2021 Financial Highlights](index=1&type=section&id=Third%20Quarter%202021%20Financial%20Highlights) VNET's Q3 2021 financial performance saw net revenues increase to RMB 1.56 billion, with strong growth in adjusted cash gross profit and adjusted EBITDA Q3 2021 Financial Highlights (vs. Q3 2020) | Metric | Q3 2021 | Q3 2020 | YoY Change | | :--- | :--- | :--- | :--- | | Net Revenues | RMB 1.56 billion | RMB 1.25 billion | +25.3% | | Adjusted Cash Gross Profit (non-GAAP) | RMB 674.5 million | RMB 526.2 million | +28.2% | | Adjusted Cash Gross Margin (non-GAAP) | 43.2% | 42.2% | +1.0 ppt | | Adjusted EBITDA (non-GAAP) | RMB 450.4 million | RMB 368.5 million | +22.2% | | Adjusted EBITDA Margin (non-GAAP) | 28.9% | 29.6% | -0.7 ppt | [Third Quarter 2021 Operational Highlights](index=1&type=section&id=Third%20Quarter%202021%20Operational%20Highlights) VNET expanded its cabinet capacity to 65,264 in Q3 2021, with increased retail IDC MRR per cabinet and improved utilization rates for new IDCs Q3 2021 Operational Metrics | Metric | Q3 2021 | Q2 2021 | Q3 2020 | | :--- | :--- | :--- | :--- | | Total Cabinets Under Management | 65,264 | 62,876 | 51,476 | | Retail IDC MRR per Cabinet (RMB) | 9,296 | 9,015 | 9,074 | | Compound Utilization Rate | 59.8% | 59.9% | N/A | | Mature IDC Utilization Rate | 75.5% | 76.3% | N/A | | Ramp-up & Newly-built IDC Utilization Rate | 34.7% | 29.2% | N/A | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributed strong Q3 performance to the successful dual-core strategy and unique IDC solutions, exceeding guidance despite regulatory uncertainties - CEO Samuel Shen emphasized that the company's **dual-core strategy** in retail and wholesale IDC services is effectively meeting growing demand and strengthening its **market leadership**[4](index=4&type=chunk) - CFO Tim Chen noted that Q3 financial performance was a milestone, with top- and bottom-line growth **exceeding the high end of guidance**, driven by a **unique mix** of wholesale/retail solutions and digital transformation trends[6](index=6&type=chunk) [Third Quarter 2021 Financial Results](index=2&type=section&id=Third%20Quarter%202021%20Financial%20Results) Q3 2021 net revenues grew 25.3% to RMB 1.56 billion, with gross profit increasing to RMB 375.2 million and net profit significantly impacted by fair value changes of convertible notes Q3 2021 Income Statement Highlights (YoY & QoQ) | Metric | Q3 2021 (RMB) | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Net Revenues | 1.56 billion | +25.3% | +4.2% | | Gross Profit | 375.2 million | +36.4% | +4.4% | | Gross Margin | 24.0% | +1.9 ppt | 0.0 ppt | | Operating Expenses | 261.3 million | +31.1% | -0.5% | | Net Profit (to shareholders) | 156.2 million | +60.8% | -65.7% | - The year-over-year increase in gross margin was primarily attributed to the Company's **optimized operating efficiency**[7](index=7&type=chunk) - Net profit for Q3 2021 included a **gain of RMB 185.8 million** from changes in the **fair value of convertible promissory notes** due to a decrease in the Company's stock price[13](index=13&type=chunk) - As of September 30, 2021, the company held **RMB 3.94 billion** in cash, cash equivalents, restricted cash, and short-term investments[14](index=14&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) VNET projects Q4 2021 net revenues between RMB 1.75-1.77 billion and adjusted EBITDA between RMB 450-470 million, with strong full-year growth anticipated Q4 2021 and Full Year 2021 Guidance | Period | Metric | Guidance Range (RMB) | | :--- | :--- | :--- | | **Q4 2021** | Net Revenues | 1.75 billion - 1.77 billion | | | Adjusted EBITDA | 450 million - 470 million | | **Full Year 2021** | Net Revenues | 6.19 billion - 6.21 billion | | | Adjusted EBITDA | 1.74 billion - 1.76 billion | - The midpoints of the full-year 2021 guidance represent a **28.5% YoY increase in net revenues** and a **32.2% YoY increase in adjusted EBITDA**[15](index=15&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) VNET's consolidated financial statements show total assets of RMB 23.65 billion, with Q3 2021 net cash from operations at RMB 134.7 million and significant investing activities [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) VNET reported Q3 2021 net revenues of RMB 1.56 billion, gross profit of RMB 375.2 million, and net profit of RMB 156.2 million, influenced by fair value changes Q3 2021 Statement of Operations (in thousands RMB) | Line Item | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Net revenues | 1,560,460 | 1,245,794 | | Gross profit | 375,235 | 275,143 | | Operating profit | 113,902 | 75,870 | | Net profit attributable to VNET Group, Inc. | 156,183 | 97,144 | Q3 2021 Earnings Per Share (EPS) | Metric | Value (RMB) | Value (USD) | | :--- | :--- | :--- | | Basic EPS | 0.18 | 0.03 | | Diluted EPS | (0.03) | (0.00) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2021, VNET's total assets reached RMB 23.65 billion, with liabilities increasing to RMB 16.22 billion, primarily from borrowings Balance Sheet Summary (in thousands RMB) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Total Current Assets | 7,447,654 | 6,055,607 | | Total Non-current Assets | 16,202,865 | 13,318,148 | | **Total Assets** | **23,650,519** | **19,373,755** | | Total Current Liabilities | 6,794,908 | 6,121,960 | | Total Non-current Liabilities | 9,424,876 | 6,354,315 | | **Total Liabilities** | **16,219,784** | **12,476,275** | | **Total Shareholders' Equity** | **7,430,735** | **6,897,480** | [Condensed Consolidated Statement of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Q3 2021 net cash from operations was RMB 134.7 million, with RMB 1.49 billion used in investing activities and RMB 256.4 million generated from financing Q3 2021 Cash Flow Summary (in thousands RMB) | Cash Flow Activity | Q3 2021 | Q2 2021 | Q3 2020 | | :--- | :--- | :--- | :--- | | Net cash from Operating Activities | 134,672 | 314,806 | 209,971 | | Net cash used in Investing Activities | (1,492,614) | (522,340) | (914,471) | | Net cash from (used in) Financing Activities | 256,400 | (1,887,775) | 1,445,329 | | **Cash at end of period** | **3,931,488** | **5,021,490** | **5,454,311** | [Reconciliation of GAAP and Non-GAAP Results](index=10&type=section&id=Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) This section reconciles Q3 2021 GAAP to non-GAAP results, detailing adjustments for adjusted EBITDA of RMB 450.4 million and adjusted cash gross profit of RMB 674.5 million Q3 2021 GAAP to Non-GAAP Reconciliation (in thousands RMB) | Metric | GAAP Value | Adjustments | Non-GAAP Value | | :--- | :--- | :--- | :--- | | Gross Profit | 375,235 | +297,046 (D&A) <br> +2,211 (SBC) | 674,492 (Adj. Cash Gross Profit) | | Operating Profit | 113,902 | +316,951 (D&A) <br> +4,608 (SBC) <br> +14,959 (Other) | 450,420 (Adj. EBITDA) | [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides supplementary details including conference call information, non-GAAP measure definitions, exchange rates, and forward-looking statements [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) A conference call to discuss Q3 financial results was scheduled for November 18, 2021, at 8 P.M. U.S. Eastern Time - A conference call to discuss the financial results was scheduled for November 18, 2021, at 8 P.M. U.S. Eastern Time[16](index=16&type=chunk) [Non-GAAP Disclosure & Other Notes](index=4&type=section&id=Non-GAAP%20Disclosure%20%26%20Other%20Notes) VNET clarifies its use of non-GAAP measures, specifies the RMB to USD exchange rate, and notes that financial information is unaudited and preliminary - The company uses **non-GAAP measures** like adjusted cash gross profit and adjusted EBITDA to supplement U.S. GAAP results and help investors assess business trends[17](index=17&type=chunk)[18](index=18&type=chunk) - All RMB to USD translations are for convenience and based on the exchange rate of **RMB 6.4434 to US$1.00** as of September 30, 2021[19](index=19&type=chunk) - The financial information presented is **unaudited and preliminary**, subject to potential adjustments upon completion of the year-end audit[20](index=20&type=chunk)