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28-05-2025
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VNET Reports Unaudited First Quarter 2025 Financial Results
BEIJING, May 28, 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 first quarter ended March 31, 2025. "We kicked off 2025 with a strong first quarter thanks to excellent execution of our effective dual-core strategy," said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET. "Our wholesale IDC business recorded another impressive performance, marked by our robust deliveries and customers' fast move-in pace. As of March 31, 2025, our wholesale capacity in service increased by 88MW quarter over quarter to 573MW. Wholesale capacity utilized increased by a record high of 84MW quarter over quarter to 437MW. We continued to win quality wholesale and retail orders in the first quarter, including the 119MW of wholesale orders we disclosed last quarter, along with a 6MW wholesale order from an intelligent driving customer and a total of 4MW in retail orders from customers in internet, finance, local services, intelligent driving, and gaming across multiple retail data centers. Going forward, we will continue leveraging our high-performance data center network, reliable solutions, and outstanding delivery capabilities to address customers' needs and meet their rising demand, driving growth and advancing the development of China's digital economy." Qiyu Wang, Chief Financial Officer of VNET, commented, "The solid start of the year 2025 was characterized by vibrant growth and a significantly enhanced margin. In the first quarter, our total net revenues rose 18.3% year over year to RMB2.25 billion, driven by wholesale revenues' strong year-over-year growth of 86.5%. Adjusted EBITDA for the first quarter increased by 26.4% year over year to RMB682.4 million, with an adjusted EBITDA margin of 30.4%, up 1.9 percentage points year over year. Excluding the one-off impact of asset disposals last quarter, adjusted EBITDA increased by 18.1% quarter over quarter. Moreover, we further strengthened our financing capabilities, diversifying our financing channels at a relatively low cost to support our continued investments in future development. Looking ahead, we will remain dedicated to our sustainable, high-quality growth strategy, seizing market opportunities and delivering long-term value for our stakeholders." First Quarter 2025 Financial Highlights Total net revenues increased by 18.3% to RMB2.25 billion (US$309.5 million) from RMB1.90 billion in the same period of 2024. Net revenues from the IDC business[1] increased by 27.8% to RMB1.64 billion (US$226.2 million) from RMB1.28 billion in the same period of 2024. Net revenues from the wholesale IDC business ("wholesale revenues") increased by 86.5% to RMB673.2 million (US$92.8 million) from RMB361.0 million in the same period of 2024. Net revenues from the retail IDC business ("retail revenues") increased by 4.8% to RMB968.3 million (US$133.4 million) from RMB923.7 million in the same period of 2024. Net revenues from the non-IDC business[2] decreased slightly by 1.4% to RMB604.8 million (US$83.3 million) from RMB613.5 million in the same period of 2024. Adjusted cash gross profit (non-GAAP) increased by 26.4% to RMB967.8 million (US$133.4 million) from RMB765.5 million in the same period of 2024. Adjusted cash gross margin (non-GAAP) was 43.1%, compared with 40.3% in the same period of 2024. Adjusted EBITDA (non-GAAP) increased by 26.4% to RMB682.4 million (US$94.0 million) from RMB539.8 million in the same period of 2024. Adjusted EBITDA margin (non-GAAP) was 30.4%, compared with 28.4% in the same period of 2024. First Quarter 2025 Operational Highlights Wholesale IDC Business Capacity in service was 573MW as of March 31, 2025, compared with 486MW as of December 31, 2024, and 332MW as of March 31, 2024. Capacity under construction was 377MW as of March 31, 2025. Capacity utilized by customers reached 437MW as of March 31, 2025, compared with 353MW as of December 31, 2024, and 236MW as of March 31, 2024. The sequential increase during the first quarter of 2025 was 84MW, which was mainly contributed by the E-JS Campus 02 and N-HB Campus 03 data centers. Utilization rate[3] of wholesale capacity was 76.2% as of March 31, 2025, compared with 72.6% as of December 31, 2024, and 71.0% as of March 31, 2024. Utilization rate of mature wholesale capacity[4] was 94.5% as of March 31, 2025, compared with 95.6% as of December 31, 2024, and 94.6% as of March 31, 2024. Utilization rate of ramp-up wholesale capacity[5] was 32.1% as of March 31, 2025, compared with 34.0% as of December 31, 2024, and 33.6% as of March 31, 2024. Total capacity committed[6] was 571MW as of March 31, 2025, compared with 479MW as of December 31, 2024, and 326MW as of March 31, 2024. Commitment rate[7] for capacity in service was 99.7% as of March 31, 2025, compared with 98.7% as of December 31, 2024, and 98.1% as of March 31, 2024. Total capacity pre-committed[8] was 307MW and pre-commitment rate[9] for capacity under construction was 81.6% as of March 31, 2025. Retail IDC Business[10] Capacity in service was 51,960 cabinets as of March 31, 2025, compared with 52,107 cabinets as of December 31, 2024, and 52,068 cabinets as of March 31, 2024. Capacity utilized by customers reached 33,093 cabinets as of March 31, 2025, compared with 33,068 cabinets as of December 31, 2024, and 33,312 cabinets as of March 31, 2024. Utilization rate of retail capacity was 63.7% as of March 31, 2025, compared with 63.5% as of December 31, 2024, and 64.0% as of March 31, 2024. Utilization rate of mature retail capacity[11] was 69.1% as of March 31, 2025, compared with 68.9% as of December 31, 2024, and 72.8% as of March 31, 2024. Utilization rate of ramp-up retail capacity[12] was 21.5% as of March 31, 2025, compared with 21.3% as of December 31, 2024, and 13.0% as of March 31, 2024. Monthly recurring revenue (MRR) per retail cabinet was RMB8,898 in the first quarter of 2025, compared with RMB8,794 in the fourth quarter of 2024 and RMB8,742 in the first quarter of 2024. [1] IDC business refers to managed hosting services, consisting of the wholesale IDC business and the retail IDC business. Beginning in the first quarter of 2024, our IDC business was subdivided into wholesale IDC business and retail IDC business according to the nature and scale of our data center projects. Prior to 2024, the subdivision was based on customer contract types. [2] Non-IDC business consists of cloud services and VPN services. [3] Utilization rate is calculated by dividing capacity utilized by customers by the capacity in service. [4] Mature wholesale capacity refers to wholesale data centers in which utilization rate is at or above 80%. [5] Ramp-up wholesale capacity refers to wholesale data centers in which utilization rate is below 80%. [6] Total capacity committed is the capacity committed to customers pursuant to customer agreements remaining in effect. [7] Commitment rate is calculated by total capacity committed divided by total capacity in service. [8] Total capacity pre-committed is the capacity under construction which is pre-committed to customers pursuant to customer agreements remaining in effect. [9] Pre-commitment rate is calculated by total capacity pre-committed divided by total capacity under construction. [10] For retail IDC business, since the first quarter of 2024, we have excluded a certain number of reserved cabinets from the capacity in service. Reserved cabinets refer to those that have not been utilized on a large scale, those that are planned to be closed, or those that are planned to be further upgraded. As of March 31, 2024, December 31, 2024, and March 31, 2025, 4,426, 3,766 and 3,766 reserved cabinets, respectively, were excluded from the calculation of utilization rate of retail IDC business capacity. [11] Mature retail capacity refers to retail data centers that came into service prior to the past 24 months. [12] Ramp-up retail capacity refers to retail data centers that came into service within the past 24 months, or mature retail data centers that have undergone improvements within the past 24 months. First Quarter 2025 Financial Results TOTAL NET REVENUES: Total net revenues in the first quarter of 2025 were RMB2.25 billion (US$309.5 million), representing an increase of 18.3% from RMB1.90 billion in the same period of 2024. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business. Net revenues from IDC business increased by 27.8% to RMB1.64 billion (US$226.2 million) from RMB1.28 billion in the same period of 2024. The year-over-year increase was mainly driven by an increase in wholesale revenues. Wholesale revenues increased by 86.5% to RMB673.2 million (US$92.8 million) from RMB361.0 million in the same period of 2024. Retail revenues increased to RMB968.3 million (US$133.4 million) from RMB923.7 million in the same period of 2024. Net revenues from non-IDC business decreased slightly by 1.4% to RMB604.8 million (US$83.3 million) from RMB613.5 million in the same period of 2024. GROSS PROFIT: Gross profit in the first quarter of 2025 was RMB565.3 million (US$77.9 million), representing an increase of 37.6% from RMB410.7 million in the same period of 2024. Gross margin in the first quarter of 2025 was 25.2%, compared with 21.6% in the same period of 2024. ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation, amortization, and share-based compensation expenses, was RMB967.8 million (US$133.4 million) in the first quarter of 2025, compared with RMB765.5 million in the same period of 2024. Adjusted cash gross margin (non-GAAP) in the first quarter of 2025 was 43.1%, compared with 40.3% in the same period of 2024. OPERATING EXPENSES: Total operating expenses in the first quarter of 2025 were RMB316.8 million (US$43.7 million), compared with RMB364.3 million in the same period of 2024. Sales and marketing expenses were RMB64.3 million (US$8.9 million) in the first quarter of 2025, compared with RMB71.7 million in the same period of 2024. Research and development expenses were RMB43.6 million (US$6.0 million) in the first quarter of 2025, compared with RMB75.4 million in the same period of 2024. General and administrative expenses were RMB179.8 million (US$24.8 million) in the first quarter of 2025, compared with RMB226.3 million in the same period of 2024. ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses, were RMB310.5 million (US$42.8 million) in the first quarter of 2025, compared with RMB252.6 million in the same period of 2024. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the first quarter of 2025 were 13.8%, compared with 13.3% in the same period of 2024. ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the first quarter of 2025 was RMB682.4 million (US$94.0 million), representing an increase of 26.4% from RMB539.8 million in the same period of 2024. Adjusted EBITDA margin (non-GAAP) in the first quarter of 2025 was 30.4%, compared with 28.4% in the same period of 2024. NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the first quarter of 2025 was RMB237.6 million (US$32.7 million), compared with a net loss attributable to VNET Group, Inc. of RMB187.0 million in the same period of 2024. The year-over-year increase in loss was mainly due to the changes in the fair value of financial instruments. LOSS PER SHARE: Basic and diluted loss per share in the first quarter of 2025 were both RMB0.15 (US$0.02), which represents the equivalent of RMB0.90 (US$0.12) per American depositary share ("ADS"), respectively. Each ADS represents six Class A ordinary shares. LIQUIDITY: As of March 31, 2025, the aggregate amount of the Company's cash and cash equivalents, restricted cash and short-term investments was RMB5.79 billion (US$797.8 million). Total short-term debt, consisting of short-term bank borrowings and the current portion of long-term borrowings, was RMB2.58 billion (US$355.7 million). Total long-term debt was RMB14.20 billion (US$1.96 billion), comprised of long-term borrowings of RMB8.96 billion (US$1.20 billion) and convertible promissory notes of RMB5.24 billion (US$722.8 million). Net cash generated from operating activities in the first quarter of 2025 was RMB195.7 million (US$27.0 million), compared with RMB267.6 million in the same period of 2024. During the first quarter of 2025, the Company obtained new debt financing, refinancing facilities, convertible senior notes and other financings of RMB5.42 billion (US$746.8 million). Business Outlook The Company expects total net revenues for 2025 to be between RMB9,100 million to RMB9,300 million, representing year-over-year growth of 10% to 13%, and adjusted EBITDA (non-GAAP) to be in the range of RMB2,700 million to RMB2,760 million, representing year-over-year growth of 11% to 14%. If the RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center were excluded from the adjusted EBITDA calculation for 2024, the year-over-year growth would be 15% to 18%. The above outlook remains unchanged from the previously provided estimates. The forecast reflects the Company's current and preliminary views on the market and its operational conditions and is subject to change. Conference Call The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, May 28, 2025, or 8:00 PM Beijing Time on Wednesday, May 28, 2025. For participants who wish to join the call, please access the links provided below to complete the online registration process. English line: Chinese line (listen-only mode): Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call. Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at A replay of the conference call will be accessible through June 4, 2025, by dialing the following numbers: US/Canada: 1 855 883 1031 Mainland China: 400 1209 216 Hong Kong, China: 800 930 639 International: +61 7 3107 6325 Reply PIN (English line): 10047350 Reply PIN (Chinese line): 10047351 Non-GAAP Disclosure In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release. The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. Exchange Rate This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. Statement Regarding Unaudited Condensed Financial Information The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information. About VNET VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises. Safe Harbor Statement This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "target," "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement as well as VNET's strategic and operational plans, including the plan to sign a definitive agreement on a pre-REITs project, contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law. Investor Relations Contact: Xinyuan LiuTel: +86 10 8456 2121Email: ir@ VNET GROUP, INC. CONSOLIDATED BALANCE SHEETS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) As of As of December 31, 2024March 31, 2025 RMB RMB US$ Assets Current assets: Cash and cash equivalents 1,492,4363,949,940544,316 Restricted cash 545,7951,774,403244,519 Accounts and notes receivable, net 1,655,9842,028,264279,502 Short-term Investments -21,4912,962 Prepaid expenses and other current assets 2,789,5732,983,864411,187 Amounts due from related parties 336,360382,73452,742 Total current assets 6,820,14811,140,6961,535,228 Non-current assets: Property and equipment, net 17,216,63518,421,8412,538,598 Intangible assets and other long-term assets, net 2,170,0002,768,074381,451 Operating lease right-of-use assets, net 4,618,2124,966,194684,360 Derivative financial instruments 6,76816,3072,247 Restricted cash 42,84243,3155,969 Deferred tax assets, net 306,623309,42842,640 Long-term investments, net 794,688788,119108,606 Other non-current assets 381,126378,68752,184 Total non-current assets 25,536,89427,691,9653,816,055 Total assets 32,357,04238,832,6615,351,283 Liabilities and Shareholders' Equity Current liabilities: Short-term bank borrowings 589,0001,020,997140,697 Accounts and notes payable 709,260813,337112,081 Accrued expenses and other payables 3,618,2373,736,633514,922 Advances from customers 1,378,8061,311,898180,784 Deferred revenue 87,83094,98513,089 Income taxes payable 69,56948,7486,718 Amounts due to related parties 355,679351,96648,502 Current portion of long-term borrowings 1,420,1901,560,064214,983 Current portion of finance lease liabilities 208,299227,91831,408 Current portion of deferred government grants 6,7279,3391,287 Current portion of operating lease liabilities 899,818938,292129,300 Total current liabilities 9,343,41510,114,1771,393,771 Non-current liabilities: Long-term borrowings 7,767,3908,958,7851,234,554 Convertible promissory notes 1,897,7385,244,979722,777 Non-current portion of finance lease liabilities 1,532,3091,556,327214,468 Unrecognized tax benefits 107,850107,85014,862 Deferred tax liabilities 734,404875,054120,586 Deferred government grants 273,824267,07836,804 Non-current portion of operating lease liabilities 3,779,2934,105,999565,822 Total non-current liabilities 16,092,80821,116,0722,909,873 Mezzanine equity: Redeemable non-controlling interests -869,303119,793 Total mezzanine equity -869,303119,793 Shareholders' equity Ordinary shares 11211215 Additional paid-in capital 17,298,69217,340,3962,389,570 Accumulated other comprehensive loss (18,504)(11,695)(1,612) Statutory reserves 107,380107,38014,797 Accumulated deficit (10,859,888)(11,097,446)(1,529,269) Treasury stock (161,892)(161,892)(22,309) Total VNET Group, Inc. shareholders' equity 6,365,9006,176,855851,192 Noncontrolling interest 554,919556,25476,654 Total shareholders' equity 6,920,8196,733,109927,846 Total liabilities and shareholders' equity 32,357,04238,832,6615,351,283 VNET GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) Three months ended March 31, 2024December 31, 2024March 31, 2025 RMB RMB RMB US$ Net revenues 1,898,1262,246,3892,246,220309,537 Cost of revenues (1,487,405)(1,741,533)(1,680,879)(231,631) Gross profit 410,721504,856565,34177,906 Operating income (expenses) Operating income 3,94998,8691,461201 Sales and marketing expenses (71,743)(73,088)(64,346)(8,867) Research and development expenses (75,389)(56,098)(43,603)(6,009) General and administrative expenses (226,297)(192,954)(179,770)(24,773) Allowance for doubtful debt 5,175(44,590)(30,552)(4,210) Total operating expenses (364,305)(267,861)(316,810)(43,658) Operating profit 46,416236,995248,53134,248 Interest income 12,1296,1626,751930 Interest expense (137,682)(77,125)(100,653)(13,870) Other income 4,8141,8551,811250 Other expenses (1,422)(10,185)(2,438)(336) Changes in the fair value of financial instruments 3,858(71,575)(334,904)(46,151) Foreign exchange (loss) gain (28,361)(1,327)9,5271,313 (Loss) income before income taxes and gain from equity method investments (100,248)84,800(171,375)(23,616) Income tax expenses (61,384)(82,547)(52,062)(7,174) Gain from equity method investments 2,6061,1973,214443 Net (loss) income (159,026)3,450(220,223)(30,347) Net income attributable to noncontrolling interest (27,979)(14,546)(17,335)(2,389) Net loss attributable to the VNET Group, Inc. (187,005)(11,096)(237,558)(32,736) Loss per share Basic (0.12)(0.01)(0.15)(0.02) Diluted (0.12)(0.01)(0.15)(0.02) Shares used in loss per share computation Basic* 1,568,300,3601,608,291,8681,608,799,8421,608,799,842 Diluted* 1,568,300,3601,608,291,8681,608,799,8421,608,799,842 Loss per ADS (6 ordinary shares equal to 1 ADS)Basic (0.72)(0.06)(0.90)(0.12)Diluted (0.72)(0.06)(0.90)(0.12) * Shares used in loss per share/ADS computation were computed under weighted average method. VNET GROUP, INC. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended March 31, 2024December 31, 2024March 31, 2025 RMB RMB RMB US$ Gross profit 410,721504,856565,34177,906 Plus: depreciation and amortization 352,604414,364402,39955,452 Plus: share-based compensation expenses 2,1904,65210915 Adjusted cash gross profit 765,515923,872967,849133,373 Adjusted cash gross margin 40.3 %41.1 %43.1 %43.1 % Operating expenses (364,305)(267,861)(316,810)(43,658) Plus: share-based compensation expenses 111,68138,2436,329872 Adjusted operating expenses (252,624)(229,618)(310,481)(42,786) Operating profit 46,416236,995248,53134,248 Plus: depreciation and amortization 379,551441,447427,44058,903 Plus: share-based compensation expenses 113,87142,8956,438887 Adjusted EBITDA 539,838721,337682,40994,038 Adjusted EBITDA margin 28.4 %32.1 %30.4 %30.4 % VNET GROUP, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended March 31, 2024December 31, 2024March 31, 2025 RMB RMB RMB US$ CASH FLOWS FROM OPERATING ACTIVITIES Net cash generated from operating activities 267,587572,236195,71326,969 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (1,005,368)(1,492,972)(1,792,051)(246,951) Purchases of intangible assets (5,965)(82,693)(33,952)(4,679) Proceeds from (payments for) investments 359,23922,087(21,440)(2,955) Proceeds from (payments for) other investing activities 1,154177,418(37,327)(5,143) Net cash used in investing activities (650,940)(1,376,160)(1,884,770)(259,728) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank borrowings 1,156,2791,240,1471,893,386260,916 Repayments of bank borrowings (51,441)(366,664)(369,366)(50,900) Repurchase of 2026 Convertible Notes (4,262,340)--- Proceeds from issuance of 2030 Convertible Notes --3,084,519425,058 Payments for finance leases (39,602)(25,789)(37,950)(5,230) Contribution from noncontrolling interest in a subsidiary -16,000635,00087,505 Proceeds from (payments for) other financing activities 591,446(78,448)161,03322,191 Net cash (used in) generated from financing activities (2,605,658)785,2465,366,622739,540 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (20,050)17,7849,0201,243 Net (decrease) increase in cash, cash equivalents and restricted cash (3,009,061)(894)3,686,585508,024 Cash, cash equivalents and restricted cash at beginning of period 5,098,9872,081,9672,081,073286,780 Cash, cash equivalents and restricted cash at end of period 2,089,9262,081,0735,767,658794,804 View original content: SOURCE VNET Group, Inc. 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Associated Press
28-04-2025
- Business
- Associated Press
VNET Publishes 2024 Environmental, Social and Governance Report
BEIJING, April 28, 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 it has published its 2024 Environmental, Social and Governance Report (the '2024 ESG Report'). This is VNET's fifth ESG report, highlighting the Company's 2024 efforts and achievements in environmental practices, digital empowerment, ethical governance, and social responsibility. 'As an integral element of VNET's long-term strategy for sustainable growth, our 2024 ESG initiatives drove measurable advancements in our pursuit of a greener future,' Josh Sheng Chen, Founder, Executive Chairperson, and interim Chief Executive Officer of VNET. 'Upgrades to our 'SHIELD' (Society, Human, Innovation, Environment, Leadership, Development) sustainability system broadened stakeholder coverage and amplified our impact, reinforcing our position as an industry leader in sustainability. Heading into 2025, we will remain committed to integrating ESG best practices across our business, facilitating the development of China's green, digital economy while creating sustainable value for all stakeholders.' 2024 ESG Report Highlights: To view the full 2024 ESG Report, please visit the Company's Investor Relations website at or access the report directly at About VNET VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises. Safe Harbor Statement This announcement contains forward-looking statements. These forward-looking statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'target,' 'believes,' 'estimates' and similar statements. Among other things, quotations from management in this announcement as well as VNET's strategic and operational plans, contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law. Investor Relations Contact: Xinyuan Liu Tel: +86 10 8456 2121 Email: [email protected] View original content: SOURCE VNET Group, Inc.
Yahoo
12-03-2025
- Business
- Yahoo
VNET Reports Unaudited Fourth Quarter and Full Year 2024 Financial Results
BEIJING, March 12, 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 fourth quarter and full year ended December 31, 2024. "We closed 2024 with a strong fourth quarter, highlighted by our wholesale IDC business's remarkable performance as we continued to capitalize on AI-driven demand," said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET. "Our high-performance data centers, outstanding delivery capabilities, and premium services continued to attract quality orders. During the fourth quarter, we secured 32MW order from an internet customer in the Yangtze River Delta. One of our retail datacenters located in the Greater Bay Area won a 1.5MW order from a new customer in intelligent driving industry. Meanwhile, in Ulanqab, we signed a 100MW framework agreement with another internet customer, with 28MW to be delivered in the fourth quarter of 2025. In addition, recently we secured a 55MW order from a leading cloud computing customer in this region. Furthermore, we recently won a 64MW order for capacity operated with our strategic partner, Changzhou Gaoxin Group, allowing us to serve more customers." "Moving into 2025, we remain confident in China market's growth potential. Recent AI breakthroughs are propelling AI development domestically, spurring inference demand, and reducing costs. This is boosting industrywide enthusiasm for investing in AI, unlocking greater demand for high-performance data centers and reliable IDC services. As a leading player with a clear expansion path for such advanced capacity, we are well-positioned to capture rising market opportunities, driving our sustainable growth." Qiyu Wang, Chief Financial Officer of VNET, commented, "Our full-year 2024 results exceeded our expectations, capped by a robust fourth quarter. Revenues from our wholesale business remained the key growth driver, reaching a record high of RMB665.2 million with an accelerated year-over-year growth of 125.4% during the fourth quarter. Our adjusted EBITDA also increased by 63.8% year over year to RMB721.3 million during the quarter. Looking ahead, we will continue to execute our effective dual-core strategy while investing in future growth to propel our high-quality development and create long-term shareholder value." Fourth Quarter 2024 Financial Highlights Total net revenues increased by 18.3% to RMB2.25 billion (US$307.8 million) from RMB1.90 billion in the same period of 2023. Net revenues from the IDC business[1] increased by 28.3% to RMB1.63 billion (US$223.3 million) from RMB1.27 billion in the same period of 2023. Net revenues from the wholesale IDC business ("wholesale revenues") increased by 125.4% to RMB665.2 million (US$91.1million) from RMB295.1 million in the same period of 2023. Net revenues from the retail IDC business ("retail revenues") decreased slightly by 1.1% to RMB964.8 million (US$132.2 million) from RMB975.2 million in the same period of 2023. Net revenues from the non-IDC business[2] decreased by 1.9% to RMB616.5 million (US$84.5 million) from RMB628.2 million in the same period of 2023. Adjusted cash gross profit (non-GAAP) increased by 24.6% to RMB923.9 million (US$126.6 million) from RMB741.7 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) was 41.1%, compared with 39.1% in the same period of 2023. Adjusted EBITDA (non-GAAP) increased by 63.8% to RMB721.3 million (US$98.8 million), including RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center. Adjusted EBITDA margin (non-GAAP) was 32.1%, compared with 23.2% in the same period of 2023. Net income was RMB3.5 million compared with a net loss of RMB2.42 billion in the same period of 2023. Full Year 2024 Financial Highlights Total net revenues increased by 11.4% to RMB8.26 billion (US$1.13 billion) from RMB7.41billion in the full year of 2023. Net revenues from the IDC business increased by 16.1% to RMB5.78 billion (US$791.8 million) from RMB4.98 billion in the full year of 2023. Net revenues from the wholesale IDC business ("wholesale revenues") increased by 90.4% to RMB1.95 billion (US$267.3 million) from RMB1.02 billion in the full year of 2023. Net revenues from the retail IDC business ("retail revenues") decreased slightly by 3.1% to RMB3.83 billion (US$524.5 million) from RMB3.95 billion in the full year of 2023. Net revenues from the non-IDC business increased by 1.7% to RMB2.48 billion (US$339.7 million) from RMB2.44 billion in the full year of 2023. Adjusted cash gross profit (non-GAAP) increased by 12.1% to RMB3.34 billion (US$457.2 million) from RMB2.98 billion in the full year of 2023. Adjusted cash gross margin (non-GAAP) was 40.4%, compared with 40.2% in the full year of 2023. Adjusted EBITDA (non-GAAP) increased by 19.1% to RMB2.43 billion (US$332.9 million), including RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center. Net income increased by RMB2.85 billion to RMB248.4 million (US$34.0 million) in the full year of 2024, compared with a net loss of RMB2.60 billion in the full year of 2023. Fourth Quarter 2024 Operational Highlights Wholesale IDC Business Capacity in service was 486MW as of December 31, 2024, compared with 358MW as of September 30, 2024, and 332MW as of December 31, 2023. Capacity under construction was 406MW as of December 31, 2024. Capacity utilized by customers reached 353MW as of December 31, 2024, compared with 279MW as of September 30, 2024, and 219MW as of December 31, 2023. The sequential increase during the fourth quarter of 2024 was 73MW, which was mainly contributed by the E-JS Campus 02 data center. Utilization rate[3] of wholesale capacity was 72.6% as of December 31, 2024, compared with 78.0% as of September 30, 2024, and 65.8% as of December 31, 2023. Utilization rate of mature wholesale capacity[4] was 95.6% as of December 31, 2024, compared with 95.6% as of September 30, 2024, and 95.0% as of December 31, 2023. Utilization rate of ramp-up wholesale capacity[5] was 34.0% as of December 31, 2024, compared with 46.4% as of September 30, 2024, and 19.7% as of December 31, 2023. Total capacity committed[6] was 479MW as of December 31, 2024, compared with 352MW as of September 30, 2024, and 326MW as of December 31, 2023. Commitment rate[7] for capacity in service was 98.7% as of December 31, 2024, compared with 98.2% as of September 30, 2024, and 98.1% as of December 31, 2023. Total capacity pre-committed[8] was 337MW and pre-commitment rate[9] for capacity under construction was 82.9% as of December 31, 2024. Retail IDC Business[10] Capacity in service was 52,107 cabinets as of December 31, 2024, compared with 52,250 cabinets as of September 30, 2024, and 52,233 cabinets as of December 31, 2023. Capacity utilized by customers reached 33,068 cabinets as of December 31, 2024, compared with 32,950 cabinets as of September 30, 2024, and 33,450 cabinets as of December 31, 2023. Utilization rate of retail capacity was 63.5% as of December 31, 2024, compared with 63.1% as of September 30, 2024, and 64.0% as of December 31, 2023. Utilization rate of mature retail capacity[11] was 68.9% as of December 31, 2024, compared with 69.5% as of September 30, 2024, and 73.2% as of December 31, 2023. Utilization rate of ramp-up retail capacity[12] was 21.3% as of December 31, 2024, compared with 16.8% as of September 30, 2024, and 10.8% as of December 31, 2023. Monthly recurring revenue (MRR) per retail cabinet was RMB8,794 in the fourth quarter of 2024, compared with RMB8,788 in the third quarter of 2024 and RMB8,759 in the fourth quarter of 2023. [1] IDC business refers to managed hosting services, consisting of the wholesale IDC business and the retail IDC business. Beginning in the first quarter of 2024, our IDC business was subdivided into wholesale IDC business and retail IDC business according to the nature and scale of our data center projects. Prior to 2024, the subdivision was based on customer contract types. [2] Non-IDC business consists of cloud services and VPN services. [3] Utilization rate is calculated by dividing capacity utilized by customers by the capacity in service. [4] Mature wholesale capacity refers to wholesale data centers in which utilization rate is at or above 80%. [5] Ramp-up wholesale capacity refers to wholesale data centers in which utilization rate is below 80%. [6] Total capacity committed is the capacity committed to customers pursuant to customer agreements remaining in effect. [7] Commitment rate is calculated by total capacity committed divided by total capacity in service. [8] Total capacity pre-committed is the capacity under construction which is pre-committed to customers pursuant to customer agreements remaining in effect. [9] Pre-commitment rate is calculated by total capacity pre-committed divided by total capacity under construction. [10] For retail IDC business, since the first quarter of 2024, we have excluded a certain number of reserved cabinets from the capacity in service. Reserved cabinets refer to those that have not been utilized on a large scale, those that are planned to be closed, or those that are planned to be further upgraded. As of December 31, 2023, September 30, 2024, and December 31, 2024, 4,426, 4,150, and 3,766 reserved cabinets, respectively, were excluded from the calculation of utilization rate of retail IDC business capacity. [11] Mature retail capacity refers to retail data centers that came into service prior to the past 24 months. [12] Ramp-up retail capacity refers to retail data centers that came into service within the past 24 months, or mature retail data centers that have undergone improvements within the past 24 months. Fourth Quarter 2024 Financial Results TOTAL NET REVENUES: Total net revenues in the fourth quarter of 2024 were RMB2.25 billion (US$307.8 million), representing an increase of 18.3% from RMB1.90 billion in the same period of 2023. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business. Net revenues from IDC business increased by 28.3% to RMB1.63 billion (US$223.3 million) from RMB1.27 billion in the same period of 2023. The year-over-year increase was mainly driven by an increase in wholesale revenues. Wholesale revenues increased by 125.4% to RMB665.2 million (US$91.1 million) from RMB295.1 million in the same period of 2023. Retail revenues decreased to RMB964.8 million (US$132.3 million) from RMB975.2 million in the same period of 2023. Net revenues from non-IDC business decreased by 1.9% to RMB616.5 million (US$84.5 million) from RMB628.2 million in the same period of 2023. GROSS PROFIT: Gross profit in the fourth quarter of 2024 was RMB504.9 million (US$69.2 million), representing an increase of 73.6% from RMB290.9 million in the same period of 2023. Gross margin in the fourth quarter of 2024 was 22.5%, compared with 15.3% in the same period of 2023. The year-over-year increase was primarily attributable to a reduction in depreciation expense due to the change in the estimated useful lives of property and equipment starting from January 1, 2024. ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation, amortization, and share-based compensation expenses, was RMB923.9 million (US$126.6 million) in the fourth quarter of 2024, compared with RMB741.7 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) in the fourth quarter of 2024 was 41.1%, compared with 39.1% in the same period of 2023. OPERATING EXPENSES: Total operating expenses in the fourth quarter of 2024 were RMB267.9 million (US$36.7 million), compared with RMB2.50 billion in the same period of 2023. Sales and marketing expenses were RMB73.1 million (US$10.0 million) in the fourth quarter of 2024, compared with RMB73.3 million in the same period of 2023. Research and development expenses were RMB56.1 million (US$7.7 million) in the fourth quarter of 2024, compared with RMB80.7 million in the same period of 2023. General and administrative expenses were RMB193.0 million (US$26.4 million) in the fourth quarter of 2024, compared with RMB148.5 million in the same period of 2023. ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses, were RMB229.6 million (US$31.5 million) in the fourth quarter of 2024, compared with RMB334.2 million in the same period of 2023. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the fourth quarter of 2024 were 10.2%, compared with 17.6% in the same period of 2023. ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the fourth quarter of 2024 was RMB721.3 million (US$98.8 million), including RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center, representing an increase of 63.8% from RMB440.2 million in the same period of 2023. Adjusted EBITDA margin (non-GAAP) in the fourth quarter of 2024 was 32.1%, compared with 23.2% in the same period of 2023. NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the fourth quarter of 2024 was RMB11.1 million (US$1.5 million), compared with a net loss attributable to VNET Group, Inc. of RMB2.44 billion in the same period of 2023. The year-over-year increase was mainly due to the impairment of long-lived assets and goodwill in the same period of 2023. LOSS PER SHARE: Basic and diluted loss per share in the fourth quarter of 2024 were both RMB0.01 (US$0.001), which represents the equivalent to RMB0.06 (US$0.01) per American depositary share ("ADS"), respectively. Each ADS represents six Class A ordinary shares. Diluted loss per share is calculated using adjusted net loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding. LIQUIDITY: As of December 31, 2024, the aggregate amount of the Company's cash and cash equivalents and restricted cash was RMB2.08 billion (US$285.1 million). Total short-term debt consisting of short-term bank borrowings and the current portion of long-term borrowings was RMB2.01 billion (US$275.3 million). Total long-term debt was RMB9.67 billion (US$1.32 billion), comprised of long-term borrowings of RMB7.77 billion (US$1.06 billion) and convertible promissory notes of RMB1.90 billion (US$260.0 million). Net cash generated from operating activities in the fourth quarter of 2024 was RMB572.2 million (US$78.4 million), compared with RMB730.7 million in the same period of 2023. During the fourth quarter of 2024, the Company obtained new debt financing, refinancing facilities and other financings of RMB1.42 billion (US$194.6 million). Full Year 2024 Financial Results TOTAL NET REVENUES: Total net revenues in the full year of 2024 were RMB8.26 billion (US$1.13 billion), representing an increase of 11.4% from RMB7.41 billion in the full year of 2023. Net revenues from IDC business increased by 16.1% to RMB5.78 billion (US$791.8 million) from RMB4.98 billion in the full year of 2023. Wholesale revenues increased by 90.4% to RMB1.95 billion (US$267.3 million) from RMB1.02 billion in the full year of 2023. Retail revenues decreased to RMB3.83 million (US$524.5 million) from RMB3.95 billion in the full year of 2023. Net revenues from non-IDC business increased by 1.7% to RMB2.48 billion (US$339.7 million) from RMB2.44 billion in full year of 2023. GROSS PROFIT: Gross profit in the full year of 2024 was RMB1.83 billion (US$251.0 million), representing an increase of 41.8% from RMB1.29 billion in the full year of 2023. Gross margin in the full year of 2024 was 22.2%, compared with 17.4% in the full year of 2023. The year-over-year increase was primarily attributable to a reduction in depreciation expense due to the change in the estimated useful lives of property and equipment starting from January 1, 2024. ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation, amortization, and share-based compensation expenses, was RMB3.34 billion (US$457.2 million) in the full year of 2024, compared with RMB2.98 billion in the full year of 2023. Adjusted cash gross margin (non-GAAP) in the full year of 2024 was 40.4%, compared with 40.2% in the full year of 2023. OPERATING EXPENSES: Total operating expenses in the full year of 2024 were RMB1.16 billion (US$159.3 million), compared with RMB3.26 billion in the full year of 2023. Sales and marketing expenses were RMB263.8 million (US$36.1 million) in the full year of 2024, compared with RMB266.2 million in the full year of 2023. Research and development expenses were RMB246.6 million (US$33.8 million) in the full year of 2024, compared with RMB322.2 million in the full year of 2023. General and administrative expenses were RMB659.0 million (US$90.3 million) in the full year of 2024, compared with RMB541.9 million in the full year of 2023. ADJUSTED OPERATING EXPENSES (non-GAAP), were RMB1.02 billion (US$139.6 million) in the full year of 2024, compared with RMB1.07 billion in the full year of 2023. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the full year of 2024 were 12.3%, compared with 14.4% in the full year of 2023. ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the full year of 2024 was RMB2.43 billion (US$332.9 million), including RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center, representing an increase of 19.1% from RMB2.04 billion in the full year of 2023. NET INCOME/LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net income attributable to VNET Group, Inc. in the full year of 2024 was RMB183.2 million (US$25.1 million), compared with a net loss attributable to VNET Group, Inc. of RMB2.64 billion in the full year of 2023. Net loss attributable to VNET Group, Inc. in the full year of 2023 included impairment of long-lived assets of RMB506.7 million and impairment of goodwill of RMB1.36 billion. EARNINGS PER SHARE: Basic and diluted earnings per share in the full year of 2024 were RMB0.11 (US$0.02) and RMB0.02 (US$0.003), respectively, which represents the equivalent to RMB0.66 (US$0.12) and RMB0.12 (US$0.02) per American depositary share ("ADS"). Each ADS represents six Class A ordinary shares. Diluted earnings per share is calculated using adjusted net income attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding. LIQUIDITY: Net cash generated from operating activities in the full year of 2024 was RMB2.01 billion (US$274.7 million), compared with RMB2.06 billion in the full year of 2023. During the full year of 2024, the Company obtained new debt financing, refinancing facilities and other financings of RMB5.68 billion (US$777.7 million). Business Outlook The Company expects total net revenues for 2025 to be between RMB9,100 million to RMB9,300 million, representing year-over-year growth of 10% to 13%, and adjusted EBITDA (non-GAAP) to be in the range of RMB2,700 million to RMB2,760 million, representing year-over-year growth of 11% to 14%. If the RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center were excluded from the adjusted EBITDA calculation for 2024, the year-over-year growth would be 15% to 18%. The forecast reflects the Company's current and preliminary views on the market and its operational conditions and is subject to change. Conference Call The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, March 12, 2025, or 8:00 PM Beijing Time on Wednesday, March 12, 2025. For participants who wish to join the call, please access the links provided below to complete the online registration process. English line: Chinese line (listen-only mode): Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call. Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at A replay of the conference call will be accessible through March 19, 2025, by dialing the following numbers: US/Canada: 1 855 883 1031 Mainland China: 400 1209 216 Hong Kong, China: 800 930 639 International: +61 7 3107 6325 Reply PIN (English line): 10045747 Reply PIN (Chinese line): 10045749 Non-GAAP Disclosure In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release. The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. Exchange Rate This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. Statement Regarding Unaudited Condensed Financial Information The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information. About VNET VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises. Safe Harbor Statement This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "target," "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement as well as VNET's strategic and operational plans, including the plan to sign a definitive agreement on a pre-REITs project, contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law. Investor Relations Contact: Xinyuan LiuTel: +86 10 8456 2121Email: ir@ VNET GROUP, INC. CONSOLIDATED BALANCE SHEETS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) As of As of December 31, 2023December 31, 2024 RMB RMB US$ Assets Current assets: Cash and cash equivalents 2,243,5371,492,436204,463 Restricted cash 2,854,568545,79574,774 Accounts and notes receivable, net 1,715,9751,655,984226,869 Short-term Investments 356,820-- Prepaid expenses and other current assets 2,375,3412,789,573382,171 Amounts due from related parties 277,237336,36046,081 Total current assets 9,823,4786,820,148934,358 Non-current assets: Property and equipment, net 13,024,39317,216,6352,358,669 Intangible assets, net 1,383,4061,403,787192,318 Land use rights, net 602,503766,213104,971 Operating lease right-of-use assets, net 4,012,3294,618,212632,692 Derivative financial instruments -6,768927 Restricted cash 88242,8425,869 Deferred tax assets, net 247,644306,62342,007 Long-term investments, net 757,949794,688108,872 Other non-current assets 533,319381,12652,214 Total non-current assets 20,562,42525,536,8943,498,539 Total assets 30,385,90332,357,0424,432,897 Liabilities and Shareholders' Equity Current liabilities: Short-term bank borrowings 30,000589,00080,693 Accounts and notes payable 696,177709,26097,168 Accrued expenses and other payables 2,783,1023,618,237495,696 Advances from customers 1,605,2471,378,806188,896 Deferred revenue 95,47787,83012,033 Income taxes payable 35,19769,5699,531 Amounts due to related parties 356,080355,67948,728 Current portion of long-term borrowings 723,3251,420,190194,565 Current portion of finance lease liabilities 115,806208,29928,537 Current portion of deferred government grants 8,0626,727922 Current portion of operating lease liabilities 780,164899,818123,275 Convertible promissory notes 4,208,495-- Total current liabilities 11,437,1329,343,4151,280,044 Non-current liabilities: Long-term borrowings 5,113,5217,767,3901,064,128 Convertible promissory notes 1,769,9461,897,738259,989 Non-current portion of finance lease liabilities 1,159,5251,532,309209,925 Unrecognized tax benefits 98,457107,85014,775 Deferred tax liabilities 688,362734,404100,613 Deferred government grants 145,112273,82437,514 Non-current portion of operating lease liabilities 3,270,7593,779,293517,761 Derivative liability 188,706-- Total non-current liabilities 12,434,38816,092,8082,204,705 Shareholders' equity Ordinary shares 10711215 Additional paid-in capital 17,291,31217,298,6922,369,911 Accumulated other comprehensive loss (14,343)(18,504)(2,535) Statutory reserves 80,615107,38014,711 Accumulated deficit (11,016,323)(10,859,888)(1,487,799) Treasury stock (326,953)(161,892)(22,179) Total VNET Group, Inc. shareholders' equity 6,014,4156,365,900872,124 Noncontrolling interest 499,968554,91976,024 Total shareholders' equity 6,514,3836,920,819948,148 Total liabilities and shareholders' equity 30,385,90332,357,0424,432,897 VNET GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) Three months ended Twelve months ended December 31, 2023September 30, 2024December 31, 2024December 31, 2023December 31, 2024 RMB RMB RMB US$ RMB RMB US$ Net revenues 1,898,4802,120,7942,246,389307,7547,412,9308,259,0691,131,488 Cost of revenues (1,607,602)(1,629,111)(1,741,533)(238,589)(6,120,445)(6,426,914)(880,484) Gross profit 290,878491,683504,85669,1651,292,4851,832,155251,004 Operating income (expenses) Operating income 32,29311,76798,86913,545106,273114,58515,698 Sales and marketing expenses (73,286)(60,700)(73,088)(10,013)(266,207)(263,756)(36,134) Research and development expenses (80,671)(53,127)(56,098)(7,685)(322,220)(246,612)(33,786) General and administrative expenses (148,455)(132,482)(192,954)(26,435)(541,850)(659,030)(90,287) Allowance for doubtful debt (361,471)(65,731)(44,590)(6,109)(368,505)(107,899)(14,782) Impairment of long-lived assets (506,686)---(506,686)-- Impairment of goodwill (1,364,191)---(1,364,191)-- Total operating expenses (2,502,467)(300,273)(267,861)(36,697)(3,263,386)(1,162,712)(159,291) Operating (loss) profit (2,211,589)191,410236,99532,468(1,970,901)669,44391,713 Interest income 13,1964,2186,16284441,80227,9583,830 Interest expense (78,877)(93,996)(77,125)(10,566)(312,172)(400,975)(54,933) Impairment of long-term investments (51)---(11,166)-- Other income 4,45215,5841,85525427,34452,7287,225 Other expenses (1,199)(8,783)(10,185)(1,395)(16,086)(27,290)(3,739) Changes in the fair value of financial instruments (187,648)(7,107)(71,575)(9,806)(165,930)(74,112)(10,154) Gain on debt extinguishment -246,175---246,17533,726 Foreign exchange gain (loss) 89,42614,833(1,327)(182)(78,965)(19,242)(2,636) (Loss) income before income taxes and gain from equity method investments (2,372,290)362,33484,80011,617(2,486,074)474,68565,032 Income tax expenses (50,626)(31,149)(82,547)(11,309)(114,374)(234,229)(32,089) (Loss) gain from equity method investments (372)9651,1971643,2797,9671,091 Net (loss) income (2,423,288)332,1503,450472(2,597,169)248,42334,034 Net income attributable to noncontrolling interest (19,500)(14,524)(14,546)(1,993)(46,667)(65,223)(8,936) Net (loss) income attributable to the VNET Group, Inc. (2,442,788)317,626(11,096)(1,521)(2,643,836)183,20025,098 (Loss) earnings per share Basic (2.65)0.20(0.01)(0.00)(2.93)0.110.02 Diluted (2.65)0.05(0.01)(0.00)(2.93)0.020.00 Shares used in (loss) earnings per share computation Basic* 923,034,0501,602,860,4261,608,291,8681,608,291,868901,143,1381,593,594,5191,593,594,519 Diluted* 923,034,0501,740,565,0861,608,291,8681,608,291,868901,143,1381,742,346,3671,742,346,367 (Loss) earnings per ADS (6 ordinary shares equal to 1 ADS) Basic (15.88)1.20(0.06)(0.01)(17.58)0.660.12 Diluted (15.88)0.30(0.06)(0.01)(17.58)0.120.02 * Shares used in (loss) earnings per share/ADS computation were computed under weighted average method. VNET GROUP, INC. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended Twelve months ended December 31, 2023September 30, 2024December 31, 2024December 31, 2023December 31, 2024 RMB RMB RMB US$ RMB RMB US$ Gross profit 290,878491,683504,85669,1651,292,4851,832,155251,004 Plus: depreciation and amortization 450,859368,764414,36456,7681,684,8421,500,348205,547 Plus: share-based compensation expenses -2344,652637-4,886669 Adjusted cash gross profit 741,737860,681923,872126,5702,977,3273,337,389457,220 Adjusted cash gross margin 39.1 %40.6 %41.1 %41.1 %40.2 %40.4 %40.4 % Operating expenses (2,502,467)(300,273)(267,861)(36,697)(3,263,386)(1,162,712)(159,291) Plus: share-based compensation expenses 9,4796,70938,2435,23935,296143,67119,683 Plus: allowance of loan receivables 287,900---287,900-- Plus: impairment of long-lived assets 506,686---506,686-- Plus: impairment of goodwill 1,364,191---1,364,191-- Adjusted operating expenses (334,211)(293,564)(229,618)(31,458)(1,069,313)(1,019,041)(139,608) Operating (loss) profit (2,211,589)191,410236,99532,468(1,970,901)669,44391,713 Plus: depreciation and amortization 483,579396,428441,44760,4781,816,2281,611,760220,810 Plus: share-based compensation expenses 9,4796,94342,8955,87735,296148,55720,352 Plus: allowance of loan receivable 287,900---287,900-- Plus: impairment of long-lived assets 506,686---506,686-- Plus: impairment of goodwill 1,364,191---1,364,191-- Adjusted EBITDA 440,246594,781721,33798,8232,039,4002,429,760332,875 Adjusted EBITDA margin 23.2 %28.0 %32.1 %32.1 %27.5 %29.4 %29.4 % VNET GROUP, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended December 31, 2023September 30, 2024December 31, 2024 RMB RMB RMB US$ CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income (2,423,288)332,1503,450472 Adjustments to reconcile net (loss) income to net cash generated from operating activities: Depreciation and amortization 481,067393,719438,74060,107 Share-based compensation expenses 9,4796,94342,8955,877 Others 2,333,785(107,550)146,51420,072 Changes in operating assets and liabilities Accounts and notes receivable 311,035(138,968)161,42622,115 Prepaid expenses and other current assets (9,076)116,055122,92016,841 Accounts and notes payable (76,250)8,463(19,070)(2,613) Accrued expenses and other payables 68,52365,481120,84016,555 Deferred revenue (24,005)2,30048667 Advances from customers 31,500222,083(374,129)(51,255) Others 27,910(140,310)(71,836)(9,841) Net cash generated from operating activities 730,680760,366572,23678,397 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (1,017,474)(1,426,892)(1,492,972)(204,536) Purchases of intangible assets (20,188)(33,806)(82,693)(11,329) (Payments for) proceeds from investments (346,056)92,42622,0873,026 (Payments for) proceeds from other investing activities (18,217)31,762177,41824,306 Net cash used in investing activities (1,401,935)(1,336,510)(1,376,160)(188,533) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank borrowings 638,706745,5341,240,147169,899 Repayments of bank borrowings (85,640)(129,893)(366,664)(50,233) Proceeds from issuance of ordinary shares 2,120,243--- Payments for finance leases (28,482)(27,669)(25,789)(3,533) Proceeds from (payments for) other financing activities 112,846(59,645)(62,448)(8,555) Net cash generated from financing activities 2,757,673528,327785,246107,578 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (11,645)(6,049)17,7842,436 Net increase (decrease) in cash, cash equivalents and restricted cash 2,074,773(53,866)(894)(122) Cash, cash equivalents and restricted cash at beginning of period 3,024,2142,135,8332,081,967285,228 Cash, cash equivalents and restricted cash at end of period 5,098,9872,081,9672,081,073285,106 View original content: SOURCE VNET Group, Inc. 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Associated Press
12-03-2025
- Business
- Associated Press
VNET Reports Unaudited Fourth Quarter and Full Year 2024 Financial Results
BEIJING, March 12, 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 fourth quarter and full year ended December 31, 2024. 'We closed 2024 with a strong fourth quarter, highlighted by our wholesale IDC business's remarkable performance as we continued to capitalize on AI-driven demand,' said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET. 'Our high-performance data centers, outstanding delivery capabilities, and premium services continued to attract quality orders. During the fourth quarter, we secured 32MW order from an internet customer in the Yangtze River Delta. One of our retail datacenters located in the Greater Bay Area won a 1.5MW order from a new customer in intelligent driving industry. Meanwhile, in Ulanqab, we signed a 100MW framework agreement with another internet customer, with 28MW to be delivered in the fourth quarter of 2025. In addition, recently we secured a 55MW order from a leading cloud computing customer in this region. Furthermore, we recently won a 64MW order for capacity operated with our strategic partner, Changzhou Gaoxin Group, allowing us to serve more customers.' 'Moving into 2025, we remain confident in China market's growth potential. Recent AI breakthroughs are propelling AI development domestically, spurring inference demand, and reducing costs. This is boosting industrywide enthusiasm for investing in AI, unlocking greater demand for high-performance data centers and reliable IDC services. As a leading player with a clear expansion path for such advanced capacity, we are well-positioned to capture rising market opportunities, driving our sustainable growth.' Qiyu Wang, Chief Financial Officer of VNET, commented, 'Our full-year 2024 results exceeded our expectations, capped by a robust fourth quarter. Revenues from our wholesale business remained the key growth driver, reaching a record high of RMB665.2 million with an accelerated year-over-year growth of 125.4% during the fourth quarter. Our adjusted EBITDA also increased by 63.8% year over year to RMB721.3 million during the quarter. Looking ahead, we will continue to execute our effective dual-core strategy while investing in future growth to propel our high-quality development and create long-term shareholder value.' Fourth Quarter 2024 Financial Highlights Total net revenues increased by 18.3% to RMB2.25 billion (US$307.8 million) from RMB1.90 billion in the same period of 2023. Net revenues from the IDC business[1] increased by 28.3% to RMB1.63 billion (US$223.3 million) from RMB1.27 billion in the same period of 2023. Net revenues from the wholesale IDC business ('wholesale revenues') increased by 125.4% to RMB665.2 million (US$91.1million) from RMB295.1 million in the same period of 2023. Net revenues from the retail IDC business ('retail revenues') decreased slightly by 1.1% to RMB964.8 million (US$132.2 million) from RMB975.2 million in the same period of 2023. Net revenues from the non-IDC business[2] decreased by 1.9% to RMB616.5 million (US$84.5 million) from RMB628.2 million in the same period of 2023. Adjusted cash gross profit (non-GAAP) increased by 24.6% to RMB923.9 million (US$126.6 million) from RMB741.7 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) was 41.1%, compared with 39.1% in the same period of 2023. Adjusted EBITDA (non-GAAP) increased by 63.8% to RMB721.3 million (US$98.8 million), including RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center. Adjusted EBITDA margin (non-GAAP) was 32.1%, compared with 23.2% in the same period of 2023. Net income was RMB3.5 million compared with a net loss of RMB2.42 billion in the same period of 2023. Full Year 2024 Financial Highlights Total net revenues increased by 11.4% to RMB8.26 billion (US$1.13 billion) from RMB7.41billion in the full year of 2023. Net revenues from the IDC business increased by 16.1% to RMB5.78 billion (US$791.8 million) from RMB4.98 billion in the full year of 2023. Net revenues from the wholesale IDC business ('wholesale revenues') increased by 90.4% to RMB1.95 billion (US$267.3 million) from RMB1.02 billion in the full year of 2023. Net revenues from the retail IDC business ('retail revenues') decreased slightly by 3.1% to RMB3.83 billion (US$524.5 million) from RMB3.95 billion in the full year of 2023. Net revenues from the non-IDC business increased by 1.7% to RMB2.48 billion (US$339.7 million) from RMB2.44 billion in the full year of 2023. Adjusted cash gross profit (non-GAAP) increased by 12.1% to RMB3.34 billion (US$457.2 million) from RMB2.98 billion in the full year of 2023. Adjusted cash gross margin (non-GAAP) was 40.4%, compared with 40.2% in the full year of 2023. Adjusted EBITDA (non-GAAP) increased by 19.1% to RMB2.43 billion (US$332.9 million), including RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center. Net income increased by RMB2.85 billion to RMB248.4 million (US$34.0 million) in the full year of 2024, compared with a net loss of RMB2.60 billion in the full year of 2023. Fourth Quarter 2024 Operational Highlights Wholesale IDC Business Capacity in service was 486MW as of December 31, 2024, compared with 358MW as of September 30, 2024, and 332MW as of December 31, 2023. Capacity under construction was 406MW as of December 31, 2024. Capacity utilized by customers reached 353MW as of December 31, 2024, compared with 279MW as of September 30, 2024, and 219MW as of December 31, 2023. The sequential increase during the fourth quarter of 2024 was 73MW, which was mainly contributed by the E-JS Campus 02 data center. Utilization rate[3] of wholesale capacity was 72.6% as of December 31, 2024, compared with 78.0% as of September 30, 2024, and 65.8% as of December 31, 2023. Utilization rate of mature wholesale capacity[4] was 95.6% as of December 31, 2024, compared with 95.6% as of September 30, 2024, and 95.0% as of December 31, 2023. Utilization rate of ramp-up wholesale capacity[5] was 34.0% as of December 31, 2024, compared with 46.4% as of September 30, 2024, and 19.7% as of December 31, 2023. Total capacity committed[6] was 479MW as of December 31, 2024, compared with 352MW as of September 30, 2024, and 326MW as of December 31, 2023. Commitment rate[7] for capacity in service was 98.7% as of December 31, 2024, compared with 98.2% as of September 30, 2024, and 98.1% as of December 31, 2023. Total capacity pre-committed[8] was 337MW and pre-commitment rate[9] for capacity under construction was 82.9% as of December 31, 2024. Retail IDC Business[10] Capacity in service was 52,107 cabinets as of December 31, 2024, compared with 52,250 cabinets as of September 30, 2024, and 52,233 cabinets as of December 31, 2023. Capacity utilized by customers reached 33,068 cabinets as of December 31, 2024, compared with 32,950 cabinets as of September 30, 2024, and 33,450 cabinets as of December 31, 2023. Utilization rate of retail capacity was 63.5% as of December 31, 2024, compared with 63.1% as of September 30, 2024, and 64.0% as of December 31, 2023. Utilization rate of mature retail capacity[11] was 68.9% as of December 31, 2024, compared with 69.5% as of September 30, 2024, and 73.2% as of December 31, 2023. Utilization rate of ramp-up retail capacity[12] was 21.3% as of December 31, 2024, compared with 16.8% as of September 30, 2024, and 10.8% as of December 31, 2023. Monthly recurring revenue (MRR) per retail cabinet was RMB8,794 in the fourth quarter of 2024, compared with RMB8,788 in the third quarter of 2024 and RMB8,759 in the fourth quarter of 2023. [1] IDC business refers to managed hosting services, consisting of the wholesale IDC business and the retail IDC business. Beginning in the first quarter of 2024, our IDC business was subdivided into wholesale IDC business and retail IDC business according to the nature and scale of our data center projects. Prior to 2024, the subdivision was based on customer contract types. [2] Non-IDC business consists of cloud services and VPN services. [3] Utilization rate is calculated by dividing capacity utilized by customers by the capacity in service. [4] Mature wholesale capacity refers to wholesale data centers in which utilization rate is at or above 80%. [5] Ramp-up wholesale capacity refers to wholesale data centers in which utilization rate is below 80%. [6] Total capacity committed is the capacity committed to customers pursuant to customer agreements remaining in effect. [7] Commitment rate is calculated by total capacity committed divided by total capacity in service. [8] Total capacity pre-committed is the capacity under construction which is pre-committed to customers pursuant to customer agreements remaining in effect. [9] Pre-commitment rate is calculated by total capacity pre-committed divided by total capacity under construction. [10] For retail IDC business, since the first quarter of 2024, we have excluded a certain number of reserved cabinets from the capacity in service. Reserved cabinets refer to those that have not been utilized on a large scale, those that are planned to be closed, or those that are planned to be further upgraded. As of December 31, 2023, September 30, 2024, and December 31, 2024, 4,426, 4,150, and 3,766 reserved cabinets, respectively, were excluded from the calculation of utilization rate of retail IDC business capacity. [11] Mature retail capacity refers to retail data centers that came into service prior to the past 24 months. [12] Ramp-up retail capacity refers to retail data centers that came into service within the past 24 months, or mature retail data centers that have undergone improvements within the past 24 months. Fourth Quarter 2024 Financial Results TOTAL NET REVENUES: Total net revenues in the fourth quarter of 2024 were RMB2.25 billion (US$307.8 million), representing an increase of 18.3% from RMB1.90 billion in the same period of 2023. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business. Net revenues from IDC business increased by 28.3% to RMB1.63 billion (US$223.3 million) from RMB1.27 billion in the same period of 2023. The year-over-year increase was mainly driven by an increase in wholesale revenues. Wholesale revenues increased by 125.4% to RMB665.2 million (US$91.1 million) from RMB295.1 million in the same period of 2023. Retail revenues decreased to RMB964.8 million (US$132.3 million) from RMB975.2 million in the same period of 2023. Net revenues from non-IDC business decreased by 1.9% to RMB616.5 million (US$84.5 million) from RMB628.2 million in the same period of 2023. GROSS PROFIT: Gross profit in the fourth quarter of 2024 was RMB504.9 million (US$69.2 million), representing an increase of 73.6% from RMB290.9 million in the same period of 2023. Gross margin in the fourth quarter of 2024 was 22.5%, compared with 15.3% in the same period of 2023. The year-over-year increase was primarily attributable to a reduction in depreciation expense due to the change in the estimated useful lives of property and equipment starting from January 1, 2024. ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation, amortization, and share-based compensation expenses, was RMB923.9 million (US$126.6 million) in the fourth quarter of 2024, compared with RMB741.7 million in the same period of 2023. Adjusted cash gross margin (non-GAAP) in the fourth quarter of 2024 was 41.1%, compared with 39.1% in the same period of 2023. OPERATING EXPENSES: Total operating expenses in the fourth quarter of 2024 were RMB267.9 million (US$36.7 million), compared with RMB2.50 billion in the same period of 2023. Sales and marketing expenses were RMB73.1 million (US$10.0 million) in the fourth quarter of 2024, compared with RMB73.3 million in the same period of 2023. Research and development expenses were RMB56.1 million (US$7.7 million) in the fourth quarter of 2024, compared with RMB80.7 million in the same period of 2023. General and administrative expenses were RMB193.0 million (US$26.4 million) in the fourth quarter of 2024, compared with RMB148.5 million in the same period of 2023. ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses, were RMB229.6 million (US$31.5 million) in the fourth quarter of 2024, compared with RMB334.2 million in the same period of 2023. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the fourth quarter of 2024 were 10.2%, compared with 17.6% in the same period of 2023. ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the fourth quarter of 2024 was RMB721.3 million (US$98.8 million), including RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center, representing an increase of 63.8% from RMB440.2 million in the same period of 2023. Adjusted EBITDA margin (non-GAAP) in the fourth quarter of 2024 was 32.1%, compared with 23.2% in the same period of 2023. NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the fourth quarter of 2024 was RMB11.1 million (US$1.5 million), compared with a net loss attributable to VNET Group, Inc. of RMB2.44 billion in the same period of 2023. The year-over-year increase was mainly due to the impairment of long-lived assets and goodwill in the same period of 2023. LOSS PER SHARE: Basic and diluted loss per share in the fourth quarter of 2024 were both RMB0.01 (US$0.001), which represents the equivalent to RMB0.06 (US$0.01) per American depositary share ('ADS'), respectively. Each ADS represents six Class A ordinary shares. Diluted loss per share is calculated using adjusted net loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding. LIQUIDITY: As of December 31, 2024, the aggregate amount of the Company's cash and cash equivalents and restricted cash was RMB2.08 billion (US$285.1 million). Total short-term debt consisting of short-term bank borrowings and the current portion of long-term borrowings was RMB2.01 billion (US$275.3 million). Total long-term debt was RMB9.67 billion (US$1.32 billion), comprised of long-term borrowings of RMB7.77 billion (US$1.06 billion) and convertible promissory notes of RMB1.90 billion (US$260.0 million). Net cash generated from operating activities in the fourth quarter of 2024 was RMB572.2 million (US$78.4 million), compared with RMB730.7 million in the same period of 2023. During the fourth quarter of 2024, the Company obtained new debt financing, refinancing facilities and other financings of RMB1.42 billion (US$194.6 million). Full Year 2024 Financial Results TOTAL NET REVENUES: Total net revenues in the full year of 2024 were RMB8.26 billion (US$1.13 billion), representing an increase of 11.4% from RMB7.41 billion in the full year of 2023. Net revenues from IDC business increased by 16.1% to RMB5.78 billion (US$791.8 million) from RMB4.98 billion in the full year of 2023. Wholesale revenues increased by 90.4% to RMB1.95 billion (US$267.3 million) from RMB1.02 billion in the full year of 2023. Retail revenues decreased to RMB3.83 million (US$524.5 million) from RMB3.95 billion in the full year of 2023. Net revenues from non-IDC business increased by 1.7% to RMB2.48 billion (US$339.7 million) from RMB2.44 billion in full year of 2023. GROSS PROFIT: Gross profit in the full year of 2024 was RMB1.83 billion (US$251.0 million), representing an increase of 41.8% from RMB1.29 billion in the full year of 2023. Gross margin in the full year of 2024 was 22.2%, compared with 17.4% in the full year of 2023. The year-over-year increase was primarily attributable to a reduction in depreciation expense due to the change in the estimated useful lives of property and equipment starting from January 1, 2024. ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation, amortization, and share-based compensation expenses, was RMB3.34 billion (US$457.2 million) in the full year of 2024, compared with RMB2.98 billion in the full year of 2023. Adjusted cash gross margin (non-GAAP) in the full year of 2024 was 40.4%, compared with 40.2% in the full year of 2023. OPERATING EXPENSES: Total operating expenses in the full year of 2024 were RMB1.16 billion (US$159.3 million), compared with RMB3.26 billion in the full year of 2023. Sales and marketing expenses were RMB263.8 million (US$36.1 million) in the full year of 2024, compared with RMB266.2 million in the full year of 2023. Research and development expenses were RMB246.6 million (US$33.8 million) in the full year of 2024, compared with RMB322.2 million in the full year of 2023. General and administrative expenses were RMB659.0 million (US$90.3 million) in the full year of 2024, compared with RMB541.9 million in the full year of 2023. ADJUSTED OPERATING EXPENSES (non-GAAP), were RMB1.02 billion (US$139.6 million) in the full year of 2024, compared with RMB1.07 billion in the full year of 2023. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the full year of 2024 were 12.3%, compared with 14.4% in the full year of 2023. ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the full year of 2024 was RMB2.43 billion (US$332.9 million), including RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center, representing an increase of 19.1% from RMB2.04 billion in the full year of 2023. NET INCOME/LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net income attributable to VNET Group, Inc. in the full year of 2024 was RMB183.2 million (US$25.1 million), compared with a net loss attributable to VNET Group, Inc. of RMB2.64 billion in the full year of 2023. Net loss attributable to VNET Group, Inc. in the full year of 2023 included impairment of long-lived assets of RMB506.7 million and impairment of goodwill of RMB1.36 billion. EARNINGS PER SHARE: Basic and diluted earnings per share in the full year of 2024 were RMB0.11 (US$0.02) and RMB0.02 (US$0.003), respectively, which represents the equivalent to RMB0.66 (US$0.12) and RMB0.12 (US$0.02) per American depositary share ('ADS'). Each ADS represents six Class A ordinary shares. Diluted earnings per share is calculated using adjusted net income attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding. LIQUIDITY: Net cash generated from operating activities in the full year of 2024 was RMB2.01 billion (US$274.7 million), compared with RMB2.06 billion in the full year of 2023. During the full year of 2024, the Company obtained new debt financing, refinancing facilities and other financings of RMB5.68 billion (US$777.7 million). Business Outlook The Company expects total net revenues for 2025 to be between RMB9,100 million to RMB9,300 million, representing year-over-year growth of 10% to 13%, and adjusted EBITDA (non-GAAP) to be in the range of RMB2,700 million to RMB2,760 million, representing year-over-year growth of 11% to 14%. If the RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center were excluded from the adjusted EBITDA calculation for 2024, the year-over-year growth would be 15% to 18%. The forecast reflects the Company's current and preliminary views on the market and its operational conditions and is subject to change. Conference Call The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, March 12, 2025, or 8:00 PM Beijing Time on Wednesday, March 12, 2025. For participants who wish to join the call, please access the links provided below to complete the online registration process. English line: Chinese line (listen-only mode): Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call. Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at A replay of the conference call will be accessible through March 19, 2025, by dialing the following numbers: Non-GAAP Disclosure In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned 'Reconciliations of GAAP and non-GAAP results' set forth at the end of this press release. The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. Exchange Rate This announcement contains translations of certain RMB amounts into U.S. dollars ('USD') at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. Statement Regarding Unaudited Condensed Financial Information The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information. About VNET VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises. Safe Harbor Statement This announcement contains forward-looking statements. These forward-looking statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'target,' 'believes,' 'estimates' and similar statements. Among other things, quotations from management in this announcement as well as VNET's strategic and operational plans, including the plan to sign a definitive agreement on a pre-REITs project, contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law. Investor Relations Contact: Xinyuan Liu VNET GROUP, INC. CONSOLIDATED BALANCE SHEETS (Amount in thousands of Renminbi ('RMB') and US dollars ('US$")) As of As of December 31, 2023 December 31, 2024 RMB RMB US$ Assets Current assets: Cash and cash equivalents 2,243,537 1,492,436 204,463 Restricted cash 2,854,568 545,795 74,774 Accounts and notes receivable, net 1,715,975 1,655,984 226,869 Short-term Investments 356,820 - - Prepaid expenses and other current assets 2,375,341 2,789,573 382,171 Amounts due from related parties 277,237 336,360 46,081 Total current assets 9,823,478 6,820,148 934,358 Non-current assets: Property and equipment, net 13,024,393 17,216,635 2,358,669 Intangible assets, net 1,383,406 1,403,787 192,318 Land use rights, net 602,503 766,213 104,971 Operating lease right-of-use assets, net 4,012,329 4,618,212 632,692 Derivative financial instruments - 6,768 927 Restricted cash 882 42,842 5,869 Deferred tax assets, net 247,644 306,623 42,007 Long-term investments, net 757,949 794,688 108,872 Other non-current assets 533,319 381,126 52,214 Total non-current assets 20,562,425 25,536,894 3,498,539 Total assets 30,385,903 32,357,042 4,432,897 Liabilities and Shareholders' Equity Current liabilities: Short-term bank borrowings 30,000 589,000 80,693 Accounts and notes payable 696,177 709,260 97,168 Accrued expenses and other payables 2,783,102 3,618,237 495,696 Advances from customers 1,605,247 1,378,806 188,896 Deferred revenue 95,477 87,830 12,033 Income taxes payable 35,197 69,569 9,531 Amounts due to related parties 356,080 355,679 48,728 Current portion of long-term borrowings 723,325 1,420,190 194,565 Current portion of finance lease liabilities 115,806 208,299 28,537 Current portion of deferred government grants 8,062 6,727 922 Current portion of operating lease liabilities 780,164 899,818 123,275 Convertible promissory notes 4,208,495 - - Total current liabilities 11,437,132 9,343,415 1,280,044 Non-current liabilities: Long-term borrowings 5,113,521 7,767,390 1,064,128 Convertible promissory notes 1,769,946 1,897,738 259,989 Non-current portion of finance lease liabilities 1,159,525 1,532,309 209,925 Unrecognized tax benefits 98,457 107,850 14,775 Deferred tax liabilities 688,362 734,404 100,613 Deferred government grants 145,112 273,824 37,514 Non-current portion of operating lease liabilities 3,270,759 3,779,293 517,761 Derivative liability 188,706 - - Total non-current liabilities 12,434,388 16,092,808 2,204,705 Shareholders' equity Ordinary shares 107 112 15 Additional paid-in capital 17,291,312 17,298,692 2,369,911 Accumulated other comprehensive loss (14,343) (18,504) (2,535) Statutory reserves 80,615 107,380 14,711 Accumulated deficit (11,016,323) (10,859,888) (1,487,799) Treasury stock (326,953) (161,892) (22,179) Total VNET Group, Inc. shareholders' equity 6,014,415 6,365,900 872,124 Noncontrolling interest 499,968 554,919 76,024 Total shareholders' equity 6,514,383 6,920,819 948,148 Total liabilities and shareholders' equity 30,385,903 32,357,042 4,432,897 VNET GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Amount in thousands of Renminbi ('RMB') and US dollars ('US$") except for number of shares and per share data) Three months ended Twelve months ended December 31, 2023 September 30, 2024 December 31, 2024 December 31, 2023 December 31, 2024 RMB RMB RMB US$ RMB RMB US$ Net revenues 1,898,480 2,120,794 2,246,389 307,754 7,412,930 8,259,069 1,131,488 Cost of revenues (1,607,602) (1,629,111) (1,741,533) (238,589) (6,120,445) (6,426,914) (880,484) Gross profit 290,878 491,683 504,856 69,165 1,292,485 1,832,155 251,004 Operating income (expenses) Operating income 32,293 11,767 98,869 13,545 106,273 114,585 15,698 Sales and marketing expenses (73,286) (60,700) (73,088) (10,013) (266,207) (263,756) (36,134) Research and development expenses (80,671) (53,127) (56,098) (7,685) (322,220) (246,612) (33,786) General and administrative expenses (148,455) (132,482) (192,954) (26,435) (541,850) (659,030) (90,287) Allowance for doubtful debt (361,471) (65,731) (44,590) (6,109) (368,505) (107,899) (14,782) Impairment of long-lived assets (506,686) - - - (506,686) - - Impairment of goodwill (1,364,191) - - - (1,364,191) - - Total operating expenses (2,502,467) (300,273) (267,861) (36,697) (3,263,386) (1,162,712) (159,291) Operating (loss) profit (2,211,589) 191,410 236,995 32,468 (1,970,901) 669,443 91,713 Interest income 13,196 4,218 6,162 844 41,802 27,958 3,830 Interest expense (78,877) (93,996) (77,125) (10,566) (312,172) (400,975) (54,933) Impairment of long-term investments (51) - - - (11,166) - - Other income 4,452 15,584 1,855 254 27,344 52,728 7,225 Other expenses (1,199) (8,783) (10,185) (1,395) (16,086) (27,290) (3,739) Changes in the fair value of financial instruments (187,648) (7,107) (71,575) (9,806) (165,930) (74,112) (10,154) Gain on debt extinguishment - 246,175 - - - 246,175 33,726 Foreign exchange gain (loss) 89,426 14,833 (1,327) (182) (78,965) (19,242) (2,636) (Loss) income before income taxes and gain from equity method investments (2,372,290) 362,334 84,800 11,617 (2,486,074) 474,685 65,032 Income tax expenses (50,626) (31,149) (82,547) (11,309) (114,374) (234,229) (32,089) (Loss) gain from equity method investments (372) 965 1,197 164 3,279 7,967 1,091 Net (loss) income (2,423,288) 332,150 3,450 472 (2,597,169) 248,423 34,034 Net income attributable to noncontrolling interest (19,500) (14,524) (14,546) (1,993) (46,667) (65,223) (8,936) Net (loss) income attributable to the VNET Group, Inc. (2,442,788) 317,626 (11,096) (1,521) (2,643,836) 183,200 25,098 (Loss) earnings per share Basic (2.65) 0.20 (0.01) (0.00) (2.93) 0.11 0.02 Diluted (2.65) 0.05 (0.01) (0.00) (2.93) 0.02 0.00 Shares used in (loss) earnings per share computation Basic* 923,034,050 1,602,860,426 1,608,291,868 1,608,291,868 901,143,138 1,593,594,519 1,593,594,519 Diluted* 923,034,050 1,740,565,086 1,608,291,868 1,608,291,868 901,143,138 1,742,346,367 1,742,346,367 (Loss) earnings per ADS (6 ordinary shares equal to 1 ADS) Basic (15.88) 1.20 (0.06) (0.01) (17.58) 0.66 0.12 Diluted (15.88) 0.30 (0.06) (0.01) (17.58) 0.12 0.02 * Shares used in (loss) earnings per share/ADS computation were computed under weighted average method. VNET GROUP, INC. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amount in thousands of Renminbi ('RMB') and US dollars ('US$")) Three months ended Twelve months ended December 31, 2023 September 30, 2024 December 31, 2024 December 31, 2023 December 31, 2024 RMB RMB RMB US$ RMB RMB US$ Gross profit 290,878 491,683 504,856 69,165 1,292,485 1,832,155 251,004 Plus: depreciation and amortization 450,859 368,764 414,364 56,768 1,684,842 1,500,348 205,547 Plus: share-based compensation expenses - 234 4,652 637 - 4,886 669 Adjusted cash gross profit 741,737 860,681 923,872 126,570 2,977,327 3,337,389 457,220 Adjusted cash gross margin 39.1 % 40.6 % 41.1 % 41.1 % 40.2 % 40.4 % 40.4 % Operating expenses (2,502,467) (300,273) (267,861) (36,697) (3,263,386) (1,162,712) (159,291) Plus: share-based compensation expenses 9,479 6,709 38,243 5,239 35,296 143,671 19,683 Plus: allowance of loan receivables 287,900 - - - 287,900 - - Plus: impairment of long-lived assets 506,686 - - - 506,686 - - Plus: impairment of goodwill 1,364,191 - - - 1,364,191 - - Adjusted operating expenses (334,211) (293,564) (229,618) (31,458) (1,069,313) (1,019,041) (139,608) Operating (loss) profit (2,211,589) 191,410 236,995 32,468 (1,970,901) 669,443 91,713 Plus: depreciation and amortization 483,579 396,428 441,447 60,478 1,816,228 1,611,760 220,810 Plus: share-based compensation expenses 9,479 6,943 42,895 5,877 35,296 148,557 20,352 Plus: allowance of loan receivable 287,900 - - - 287,900 - - Plus: impairment of long-lived assets 506,686 - - - 506,686 - - Plus: impairment of goodwill 1,364,191 - - - 1,364,191 - - Adjusted EBITDA 440,246 594,781 721,337 98,823 2,039,400 2,429,760 332,875 Adjusted EBITDA margin 23.2 % 28.0 % 32.1 % 32.1 % 27.5 % 29.4 % 29.4 % VNET GROUP, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Amount in thousands of Renminbi ('RMB') and US dollars ('US$")) Three months ended December 31, 2023 September 30, 2024 December 31, 2024 RMB RMB RMB US$ CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) income (2,423,288) 332,150 3,450 472 Adjustments to reconcile net (loss) income to net cash generated from operating activities: Depreciation and amortization 481,067 393,719 438,740 60,107 Share-based compensation expenses 9,479 6,943 42,895 5,877 Others 2,333,785 (107,550) 146,514 20,072 Changes in operating assets and liabilities Accounts and notes receivable 311,035 (138,968) 161,426 22,115 Prepaid expenses and other current assets (9,076) 116,055 122,920 16,841 Accounts and notes payable (76,250) 8,463 (19,070) (2,613) Accrued expenses and other payables 68,523 65,481 120,840 16,555 Deferred revenue (24,005) 2,300 486 67 Advances from customers 31,500 222,083 (374,129) (51,255) Others 27,910 (140,310) (71,836) (9,841) Net cash generated from operating activities 730,680 760,366 572,236 78,397 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (1,017,474) (1,426,892) (1,492,972) (204,536) Purchases of intangible assets (20,188) (33,806) (82,693) (11,329) (Payments for) proceeds from investments (346,056) 92,426 22,087 3,026 (Payments for) proceeds from other investing activities (18,217) 31,762 177,418 24,306 Net cash used in investing activities (1,401,935) (1,336,510) (1,376,160) (188,533) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from bank borrowings 638,706 745,534 1,240,147 169,899 Repayments of bank borrowings (85,640) (129,893) (366,664) (50,233) Proceeds from issuance of ordinary shares 2,120,243 - - - Payments for finance leases (28,482) (27,669) (25,789) (3,533) Proceeds from (payments for) other financing activities 112,846 (59,645) (62,448) (8,555) Net cash generated from financing activities 2,757,673 528,327 785,246 107,578 Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (11,645) (6,049) 17,784 2,436 Net increase (decrease) in cash, cash equivalents and restricted cash 2,074,773 (53,866) (894) (122) Cash, cash equivalents and restricted cash at beginning of period 3,024,214 2,135,833 2,081,967 285,228 Cash, cash equivalents and restricted cash at end of period 5,098,987 2,081,967 2,081,073 285,106 View original content: SOURCE VNET Group, Inc.
Associated Press
13-02-2025
- Business
- Associated Press
VNET Earns First-Ever Inclusion in S&P Global Sustainability Yearbook
BEIJING, Feb. 13, 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 that the Company secured a spot in the S&P Global Sustainability Yearbook 2025 (or '2025 Yearbook'), marking the Company's first inclusion in the global edition following two consecutive years in the China edition. This recognition underscores VNET's outstanding ESG performance and expanding global influence in sustainable development. The S&P Global Sustainability Yearbook 2025 showcases companies that excel in sustainable development, as assessed by the 2024 S&P Global Corporate Sustainability Assessment (CSA). In 2024, 7,690 companies across 62 industries participated in the CSA were considered for inclusion in the 2025 Yearbook, with 780 top performers selected as Yearbook Members. VNET earned its spot in the 2025 Yearbook with a score of 70 in the 2024 CSA, a record-setting performance for the Company. Notably, VNET is one of just 21 China mainland enterprises recognized in the 2025 Yearbook and the sole honoree from China's IT services industry. To date, VNET's CSA score ranked in the top 7% of the global IT services industry and attained the highest position within China's IT services sector, demonstrating the Company's industry leadership. Josh Sheng Chen, Founder, Executive Chairperson, and interim Chief Executive Officer of VNET, commented, 'VNET has been dedicated to integrating ESG best practices throughout our operations since inception, and we are thrilled to see our effective ESG strategy once again win recognition by global ESG rating institutions. By leveraging cutting-edge technologies such as liquid cooling and source-grid-load-storage, we are advancing the development of green, intelligent data centers and computing power infrastructures, building a more sustainable future for the IT industry. We view ESG as the cornerstone of our ongoing success, and moving forward, sustainability will remain central to our efforts to deliver long-term value to all our stakeholders.' In addition to this recognition by S&P Global, VNET has received an ESG rating of A from MSCI, the world's leading provider of ESG indices, for three consecutive years. The Company also boasts a B rating of climate change from CDP, exceeding that of 94% of participating companies in China, as well as a Low ESG Risk Rating from Sustainalytics, a leading independent ESG and corporate governance research, ratings and analytics firm. About VNET VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises. Safe Harbor Statement This announcement contains forward-looking statements. These forward-looking statements are made under the 'safe harbor' provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as 'will,' 'expects,' 'anticipates,' 'future,' 'intends,' 'plans,' 'target,' 'believes,' 'estimates' and similar statements. Among other things, quotations from management in this announcement as well as VNET's strategic and operational plans, including the plan to operate the Assets under the pre-REITs project, contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law.
