VNET Group, Inc. Q4 FY2025 earnings call

• 2025 was exceptional year for VNet with dual core strategy and hyperscale 2.0 framework. - Wholesale IDC business grew significantly: capacity in service 889 MW as of Dec 31, 2025, QoQ increase 107 MW; utilization rate 70.1%. - Retail IDC business progressed smoothly, Q4 MRR per cabinet RMB 9,420, utilization rate 64.0%. - Total net revenues Q4 RMB 2.69 billion, +19.6% YoY; full-year RMB 9.95 billion, +20.5% YoY. - Adjusted EBITDA Q4 RMB 805.1 million, +11.6% YoY; full-year RMB 2.98 billion, +22.6% YoY. - Secured new orders in Q4: 5 wholesale orders totaling 135 MW, and retail orders with combined capacity ~2 MW. - Advanced capital recycling strategy in 2025: issued RMB 860 million holding type real estate green asset-backed security; two private REIT projects listed on Shanghai Stock Exchange in Mar 2026

Wholesale IDC business: As of Dec 31, 2025, wholesale capacity in service grew to 889 megawatts, QoQ increase of around 107 MW. Full-year 2025 deliveries reached record high 404 MW. Wholesale revenues in Q4 were RMB 978.1 million, +47.1% YoY. Full-year wholesale revenues RMB 3.46 billion, +77.4% YoY. Retail IDC business: Q4 retail MRR per cabinet was RMB 9,420, utilization rate 64.0%. Full-year retail revenues RMB 3.96 billion, +3.5% YoY. Non-IDC business: Q4 non-IDC revenues RMB 670.8 million, +8.8% YoY. Full-year non-IDC revenues RMB 2.52 billion, +1.8% YoY

• Expect 2026 total net revenues RMB 11.5 billion - 11.8 billion, +15.6% - 18.6% YoY. - Expect 2026 adjusted EBITDA RMB 3.55 billion - 3.75 billion, +19.2% - 25.9% YoY. - Plan to deliver 450 - 500 megawatts of capacity over next 12 months. - Expect CapEx 2026 RMB 10 billion - 12 billion, mainly to support capacity delivery and expansion

Not explicitly detailed in the provided transcript regarding specific risks, but mentions forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially from current expectations, and refers to latest annual report and other SEC filings for detailed discussions

Q: Tom Tang asked about participation in large customers' 2026 - 2027 data center tenders and new resources' regions.

A: VNet participated in tenders, new resources mainly in greater Beijing area like Wulan - Chabu and surrounding Beijing, and actively expanding in Yangtze River Delta; will follow earnings release for progress.

Q: Edison Lee asked about capacity addition lock - in percentage, CapEx allocation for 2027, and financing.

A: Locked in 150 MW of 450 - 500 MW capacity, majority CapEx for 2026 capacity delivery, finance via project loans, cash flow, private REIT, private equity etc.

Q: Daily Lee asked about Q4 utilization rate drop reason and CapEx reasons.

A: Q4 utilization rate drop due to delivery concentration at end of year, normal fluctuation; 2025 CapEx lower than target due to economies of scale and supply chain optimization; 2026 CapEx for capacity delivery and expansion.

Q: Timothy Yuziao asked about 2026 guidance breakdown and pricing trend.

A: Retail and wholesale IDC to grow, non - IDC stable; retail MRR up due to value - added services, unit price increase, high power density cabinets.

Q: Ethan Zhang asked about gearing ratio and Ulaan Chabu project green energy progress.

A: Gearing ratio stable, Ulaan Chabu project advancing, will disclose further progress in earnings.

Q: Xion Qi asked about AI agent impact on energy/land plans and customer structure change.

A: Will focus on environment and Yangtze River Delta areas, customer structure diverse with Internet, cloud, smart driving etc. continuing to change.

Q: Sarah Wang asked about new power quota and rental fee trend.

A: Window guidance favorable, got data center approval in greater Beijing area; rental cost stable, may rise as supply - demand tightens