VNET Group, Inc. Q3 FY2025 earnings call

• Operational Achievements: Wholesale IDC business sustained robust growth with capacity in service up 16.1% QoQ and utilization rate 74.3%. Retail IDC business progressed smoothly with MRR per cabinet increasing.
• Financial Results: Total net revenues increased by 21.7% YoY to RMB 2.58 billion. Adjusted EBITDA for Q3 increased by 27.5% YoY to RMB 758 million.
• New Orders: Secured three wholesale orders totaling 63 megawatts in Q3, including 40-megawatt from Internet company and 3-megawatt from intelligent driving company.
• ESG Efforts: ESG score improved to 73 from 70 in 2024, ranking in top 8% of IT service industry globally, strong in risk management, info security, etc.

Wholesale IDC Business: Total net revenues grew by 82.7% year over year to RMB 956 million, being the key growth driver. As of 09/30/2025, wholesale capacity in service grew by 16.1% quarter over quarter to 783 megawatts, with utilization rate at 74.3%. Retail IDC Business: Retail capacity in service was 52,288 cabinets, utilization rate 64.8%, and retail MRR per cabinet increased for six consecutive quarters to RMB 8,948.

• Full-year revenue expected RMB 9.55 billion - 9.867 billion (+16%-19% YoY), adjusted EBITDA RMB 2.91 billion - 2.945 billion (+20%-21% YoY). Excluding disposal gains, growth rate 24%-26%.
• Updated guidance factors in private REIT transactions and excludes target IDC project's financials.
• Plan to complete private REITs issuance with wholesale IDC assets by Q1 2026, consolidating financials of successful projects.

Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from current expectations. Detailed discussions of risks refer to latest annual report and SEC filings.

Q: About 2026 outlook on auto tendering and domestic chips.

A: Market expected stable with moderate increase; domestic chip sector to see intensive competition with more players.

Q: Regarding private REITs projects.

A: Underlying assets of new REITs are wholesale IDCs, being reviewed by exchanges, expected valuation better than first, goal to complete issuance by Q1 2026.

Q: Customer preferences and campus differences in Hebei and Jiangsu.

A: Clients consider business type, proximity to headquarters, and scalability; campuses in different regions serve varying needs.

Q: Pricing of wholesale business and resource acquisition.

A: Pricing stable; planning resources over 5-year horizon, focusing on Greater Beijing and Yangtze River Delta areas.

Q: Wholesale IDC utilization rate target and retail MRR sustainability.

A: Utilization rate expected to steadily increase; retail MRR growth due to repurposing cabinets, value-added services, etc.

Q: Full-year guidance and EBITDA margin trend.

A: Full-year guidance prudent, Q4 revenue unlikely to decline sequentially; EBITDA margin reasonable with seasonal fluctuations due to tariffs.