VNET(US:VNET) Xin Lang Cai Jing·2025-11-20 15:31Core Viewpoint - Century Internet (VNET.US) reported strong financial performance for Q3 2025, with significant year-on-year growth in revenue and adjusted EBITDA, reflecting the effectiveness of its strategic initiatives in the rapidly growing AI-driven market [1][4]. Financial Performance - Total revenue for Q3 2025 reached 2.58 billion RMB, representing a year-on-year increase of 21.7% [1][4]. - Adjusted EBITDA grew by 27.5% year-on-year to 758 million RMB, with an adjusted EBITDA margin increasing from 28% to 29.4% [1][4]. - Adjusted cash gross profit rose by 22.1% year-on-year to 1.05 billion RMB, with an adjusted cash gross margin slightly increasing from 40.6% to 40.7% [1][4]. Business Growth - The base IDC business saw a remarkable year-on-year revenue increase of 82.7%, contributing 956 million RMB to total revenue [2][4]. - The operational capacity of the base IDC business reached 783 MW, with a quarterly increase of 109 MW, while the on-shelf capacity grew by 70 MW to 582 MW, achieving a 74.3% on-shelf rate [3][4]. Strategic Initiatives - The company is implementing a "dual-engine" strategy to expand its customer base and enhance its multi-layered business layout, which is expected to drive long-term growth [5][6]. - Century Internet secured three new base IDC orders totaling 63 MW in Q3, including significant contracts from an internet company and a smart driving company [5][6]. Market Position and Future Outlook - The company is well-positioned to capitalize on the AI-driven market demand, with plans to deepen its dual-engine strategy and Hyperscale 2.0 framework [2][3]. - Following a revision in guidance earlier in the year, the company has further raised its 2025 revenue and adjusted EBITDA forecasts, expecting total revenue between 9.55 billion and 9.867 billion RMB, and adjusted EBITDA between 2.91 billion and 2.945 billion RMB [4].