Accessibility StatementSkip Navigation BEIJING, Nov. 20, 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 third quarter ended September 30, 2025. "We delivered another strong quarter, demonstrating our strategy's effectiveness in capturing opportunities," said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Of ...

Financial Data and Key Metrics Changes - Total net revenues increased by 22.1% year over year to RMB2.43 billion for the second quarter [9][20] - Adjusted EBITDA for the second quarter increased by 27.7% year over year to RMB732 million, with an adjusted EBITDA margin of 30.1%, up 1.3 percentage points year over year [9][20] - Adjusted cash gross profit rose by 34.9% to RMB1.06 billion, with adjusted cash gross margins improving to 43.6% from 39.5% in the same period last year [20][21] Business Line Data and Key Metrics Changes - Wholesale revenues reached RMB854 million for the quarter, representing year over year growth of 112.5%, driven by the rapid growth of the wholesale IDC business [9][20] - Retail capacity in service was 52,131 cabinets, with the utilization rate increasing slightly to 63.9% as of June [15] - Monthly Recurring Revenue (MRR) per retail cabinet increased to RMB8,915 this quarter [16] Market Data and Key Metrics Changes - Wholesale capacity in service grew by 17.5% quarter over quarter to 674 megawatts, with utilization rate stable at 75.9% [8][14] - Capacity under construction was around 326 megawatts with a pre-commitment rate of 55.2% as of June [15] - The company secured a combined capacity of around 4 megawatts in retail orders from various sectors, indicating strong demand in the Greater Beijing area and the Yangtze River Delta [10] Company Strategy and Development Direction - The company unveiled its Hyperscale 2.0 framework aimed at developing AIDC solutions, with a goal to grow data center assets under management to 10 gigawatts by 2036 [11][12] - The business model is evolving from project-based capacity delivery to comprehensive AIDC solutions, positioning the company as a pioneer in AIDC development [11][13] - The company plans to establish data center hubs in Inner Mongolia, Hebei province, and Beijing, focusing on rapid construction and flexible solutions [13] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about future demand, particularly in AI-driven sectors, and noted that the market is relatively active [30][54] - The company raised its full-year revenue and adjusted EBITDA guidance, expecting total net revenues to be in the range of RMB9.15 billion to RMB9.35 billion, a year-over-year increase of 11% to 13% [26][27] - Management acknowledged potential impacts from AI chip supply constraints but remains optimistic about maintaining order momentum [54] Other Important Information - The company maintained robust liquidity with total cash and cash equivalents reaching RMB4.66 billion as of June 30, 2025 [22] - A buyback program was authorized to repurchase up to US$50 million in shares, reflecting confidence in future growth [25] Q&A Session Summary Question: Future demand and orders related to NVIDIA's chipsets - Management noted that AI demand is strong in active digital economy regions and is monitoring potential demand closely, especially for large clients [30][31] Question: Update on wind power build-out in Yulan Top - The wind power project is underway and expected to deliver power by the end of this year, with a positive impact anticipated on the company's IR [36] Question: Gross margin fluctuations - Changes in gross margin were attributed to timing and depreciation factors, with cash gross margin still showing healthy growth [41][42] Question: Full-year guidance and second half outlook - Management remains optimistic about the second half, monitoring utilization speed and client orders closely [48][54] Question: Retail IDC revenue decline - A slight decline in retail IDC revenue was noted but is considered within a reasonable range, with expectations for stability and potential increase [50]

Financial Data and Key Metrics Changes - Total net revenues increased by 22.1% year over year to RMB2.43 billion for the second quarter [8][19] - Adjusted EBITDA for the second quarter increased by 27.7% year over year to RMB732 million, with an adjusted EBITDA margin of 30.1%, up 1.3 percentage points year over year [8][20] - Adjusted cash gross profit rose by 34.9% to RMB1.06 billion, with adjusted cash gross margins improving to 43.6% from 39.5% in the same period last year [19][20] Business Line Data and Key Metrics Changes - Wholesale revenues reached RMB854 million for the quarter, representing year over year growth of 112.5%, driven by the rapid growth of the wholesale IDC business [8][19] - Retail capacity in service was 52,131 cabinets, with the utilization rate increasing slightly to 63.9% as of June [15] - Monthly Recurring Revenue (MRR) per retail cabinet increased to RMB8,915 this quarter [15] Market Data and Key Metrics Changes - Wholesale capacity in service grew by 17.5% quarter over quarter to 674 megawatts, with utilization rate stable at 75.9% [7][13] - Capacity under construction was around 326 megawatts with a pre-commitment rate of 55.2% as of June [14] - The company secured a combined capacity of around 4 megawatts in retail orders from various sectors, including IT services and AIoT [9] Company Strategy and Development Direction - The company unveiled its Hyperscale 2.0 framework aimed at developing AIDCs and plans to grow the capacity of its data center assets to 10 gigawatts by 2036 [10][12] - The business model is evolving from project-based capacity delivery to offering comprehensive AIDC solutions [10] - The company aims to establish data center hubs with megawatt scale cabinets and gigawatt scale campuses [12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about future demand, particularly in regions with active digital economies like Greater Beijing and the Yangtze River Delta [30] - The company is closely monitoring the impact of AI chip supply constraints on new orders and customer movements [55] - Management remains committed to driving innovation and fostering industry development while delivering value to stakeholders [26] Other Important Information - The company maintained robust liquidity with total cash and cash equivalents reaching RMB4.66 billion as of June 30, 2025 [21] - CapEx for 2025 was RMB3.89 billion, with expectations to be in the range of RMB10 billion to RMB12 billion for the full year [22][23] - A buyback program was authorized to repurchase up to USD50 million in the open market over the next twelve months [23] Q&A Session Summary Question: Future demand and orders related to NVIDIA's chipsets - Management noted that the market is relatively active, with strong AI demand in key regions and attention to potential demand releases around September [30] Question: Update on wind power build-out in Yulan Top and its impact - The wind power project is underway and expected to deliver power by the end of this year, with a positive impact anticipated on IR [36] Question: Gross margin fluctuations and future expectations - Changes in gross margin were attributed to timing and depreciation factors, with cash gross margin showing healthy growth [41][42] Question: Full year guidance and second half outlook - Management remains optimistic about the second half, monitoring utilization speed and potential impacts from AI chip supply [55] Question: Retail IDC revenue decline in the second quarter - Slight decline in retail IDC revenue was noted, but management expects stability and potential increases moving forward [49]