VNET Group, Inc. · NASDAQ:VNET
VNET — Q1 2025 Earnings Presentation
32 slides from VNET's earnings presentation, May 28, 2025
Slide 1: VNET Group, Inc. Earnings Presentation for 1Q25
VNET Group, Inc. Earnings Presentation for 1Q25 May 28, 2025
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by VNET Group, Inc. (the “Company”) solely for informational purposes and has not been independently verified. No representations, warranties or undertakings, express or implied, are made by the Company or any of its affiliates, advisers or representati
Slide 3: Ju Ma, Rotating President of VNET
Ju Ma Rotating President of VNET
Slide 4: 1Q25 Earnings Highlights
1Q25 Earnings Highlights ⚫ Wholesale IDC Business: capacity in service increased to 573MW (+88MW, +18.1% QoQ), capacity utilized increased to IDC Business Growth 437MW ( +84MW, +23.9% QoQ) Remained Strong ⚫ Retail IDC Business: remained stable, the 1Q25 utilization rate of our Retail IDC business wa
Slide 5: Largest IDC Customer Order Wins
Largest IDC Customer Order Wins Capacity Contracted Signing Time of Region IDC Code Customer Sector Project Type / Under MoU (MW) Contract / MoU N-OR Campus 02(1) 55 1Q25 Cloud Services Wholesale Greater Beijing Area JV Project(1) 64 1Q25 Internet Wholesale N-HB Campus 01 6 1Q25 Intelligent Driving
Slide 6: DeepSeek Accelerates IDC Business Growth
DeepSeek Accelerates IDC Business Growth Impacts of DeepSeek’s Breakthroughs Rapid Growth of IDC Business At the beginning of 2025, China’s AI development Owing to our high-performance data centers and entered an explosive new phase of growth driven premium services, we quickly seized growth by Deep
Slide 7: Data Centers by Region
Data Centers by Region Wholesale Capacity In Service (573MW) Region % Yangtze River Delta 52.1% Greater Beijing Area 47.9% Total 100.0% Wholesale Capacity Under Construction (377MW) Ulanqab Region % BTH Greater Beijing Yangtze River Delta 10.5% Area Greater Beijing Area 89.5% Total 100.0% Xi‘an Whol
Slide 8: Wholesale Data Centers at a Glance - New Growth Driver
Wholesale Data Centers at a Glance - New Growth Driver Total Capacity in Service & Capacity Utilized (MW) Utilization Rate (1) 573 75.9% 78.0% 76.2% 71.0% 72.6% 486 437 358 03/31/2024 06/30/2024 09/30/2024 12/31/2024 03/31/2025 332 332 353 Mature & Ramp-up Capacity Contribution & Utilization Rate 27
Slide 9: Wholesale Data Centers – Backlog Growth
Wholesale Data Centers – Backlog Growth (MW) 1,620 1,500 Held for Future Development +73 414 Company’s Expansion Pipeline to Support Long-term Growth (Long-term) +44 341 Held for Future Development 1,139 1,145 (Short-term) Robust Infrastructure and Operational Capabilities Enabling -11 256 +75 267 R
Slide 10: Retail Data Centers at a Glance - Solid Foundation
Retail Data Centers at a Glance - Solid Foundation Total Capacity in Service (Cabinet) Utilization Rate (1) 52,068 52,177 52,250 52,107 51,960 64.0% 63.7% 63.1% 63.5% 63.7% 03/31/2024 06/30/2024 09/30/2024 12/31/2024 03/31/2025 03/31/2024 06/30/2024 09/30/2024 12/31/2024 03/31/2025 MRR per Retail Ca
Slide 11: Resource Pipeline for the Next 12 Months
Resource Pipeline for the Next 12 Months 1Q25 Capacity 2Q25E-3Q25E Capacity 4Q25E-1Q26E Capacity Next 12M Total Region IDC Code Tenure Status (MW) (MW) (MW) (MW) E-JS Campus 03 Owned Under Construction 32 - 27 27 Yangtze River Delta E-JS04 Leased Under Construction - 13 - 13 N-HB Campus 01 A Owned U
Slide 12: Qiyu Wang, Chief Financial Officer of VNET
Qiyu Wang Chief Financial Officer of VNET
Slide 13: 1Q25 Financial Highlights
1Q25 Financial Highlights 4Q24 (3) QoQ (3) RMB MM 1Q24 4Q24 1Q25 YoY (Excl. One-Off Item) (Excl. One-Off Item) Net revenues 1,898 2,246 2,171 2,246 18.3% 3.5% Gross profit 411 505 449 565 37.6% 25.9% Adjusted cash gross profit (1) 766 924 868 968 26.4% 11.5% Adjusted cash gross margin 40.3% 41.1% 40
Slide 14: Total Net Revenues Breakdown
Total Net Revenues Breakdown (RMB MM) 2,171 2,246 2,121 75(3) 1,994 1,898 523 673 402 590 361 613 627 622 616 605 924 965 975 965 968 1Q24 2Q24 3Q24 4Q24 1Q25 (1) (2) (1) Retail IDC Business Non-IDC Business Wholesale IDC Business Source: Company data as of March 31, 2025 Notes: (1) IDC business ref
Slide 15: Healthy Margins through Efficiency Enhancement
Healthy Margins through Efficiency Enhancement Adjusted Cash Gross Profit & Margin (1) Adjusted EBITDA & Margin (2) (RMB MM) (RMB MM) 40.3% 39.5% 40.6% 40.0% 43.1% 28.4% 28.8% 28.0% 26.6% 30.4% +26.4% YoY +26.4% YoY +11.5% QoQ +18.1% QoQ 968 721 924 682 56(3) 595 144(4) 861 574 540 787 766 868 578 1
Slide 16: Strong Liquidity Position
Strong Liquidity Position Net Operating Cash Flow Cash Position (1) (RMB MM) (RMB MM) Credit line availability: RMB 5,057 MM unused 2,440 5,789 5,456 21 2,063 2,005 357 1,958 2,989 1,608 5,099 5,768 1,738 2,081 (2) 2,989 (2) 300 2,081 483 455 104 268 196 (2) 2022 2023 2024 1Q25 12/31/2022 12/31/2023
Slide 17: Well Laddered Debt Profile
Well Laddered Debt Profile Total Debt & Net Debt / TTM Adj. EBITDA (1) Debt Breakdown by Maturity (RMB MM) 6.5x 8,159 5.8x 5.3x 4.8x 3,013 4.7x 5.0x 4.2x 3,600 3.8x 2,299 1,763 2,232 5,146 1,206 1,763 2,299 1,367 1,206 2022 2023 2024 1Q25 2025 end 2026 end 2027 end 2028 end 2029 and thereafter Total
Slide 18: Capex Paid by Year
Capex Paid by Year Capital Expenditure (1) Highlights (RMB MM) FY2025 Guidance: 10,000–12,000 ◼ Within the RMB1.82 billion capex for 1Q25, majority allocated to the expansion of our wholesale IDC business. 4,982 ◼ To support our strong delivery plan for 2025, which is expected to be 3,991 3,352 3,57
Slide 19: Guidance
Guidance RMB MM FY2024 Actual FY2025 Guidance Implied YoY Revenues 8,259 9,100 - 9,300 10% - 13% Adjusted EBITDA(1) 2,342 (2) 2,700 - 2,760 15% - 18% Capex 4,982 10,000 - 12,000 101% - 141% Delivery Plan (MW) 153 400 - 450 161% - 194% Source: Company data Notes: (1) Adjusted EBITDA is calculated as
Slide 20: ESG Initiatives – Commitment to Sustainability
ESG Initiatives – Commitment to Sustainability Commitment to achieve both targets of operational carbon neutrality and 100% renewable energy usage by 2030 Received A rating by MSCI, representing the highest ranking to-date in China’s Internet Services & Infrastructure industry for the third consecut
Slide 21: Appendix
UESIELS; VNET Appendix
Slide 22: Differentiated Business Model with Comprehensive Offerings
Differentiated Business Model with Comprehensive Offerings Managed Hosting Services Cloud Services VPN Services (1) (IDC) • Co-location • Multi-protocol Label Switching (MPLS) & • Interconnectivity Software-defined Wide Area Network (SD-WAN) • Hybrid IT Services Solutions • Other Value-added Service
Slide 23: Dual-Core Growth Strategy of IDC Business
Dual-Core Growth Strategy of IDC Business Wholesale Retail Hyperscale IDC Interconnectivity Services Retail Colocation Full-stack Services Targeting hyperscalers which require huge amount of space and power to Covering large and loyalty customer base across verticals including: financial services, s
Slide 24: Wholesale Capacity in Service – Yangtze River Delta
Wholesale Capacity in Service – Yangtze River Delta Capacity in Service Capacity Utilized Total Capacity Region IDC Code Tenure Utilization Rate (2) Commitment Rate (3) (MW) (MW) Committed (1) (MW) E-JS Campus 01 Phase 1 Owned 28 26 28 91.8% 100.0% E-JS Campus 01 Phase 2 Owned 16 8 16 52.1% 100.0% E
Slide 25: Wholesale Capacity in Service – Greater Beijing Area
Wholesale Capacity in Service – Greater Beijing Area Capacity in Service Capacity Utilized Total Capacity Region IDC Code Tenure Utilization Rate (2) Commitment Rate (3) (MW) (MW) Committed (1) (MW) BJ15 Owned 9 2 9 19.2% 100.0% N-HB02 Phase 1 Owned 28 27 28 96.8% 100.0% N-HB Campus 01 B Owned 36 31
Slide 26: Wholesale Capacity Under Construction & Held for Future Development
Wholesale Capacity Under Construction & Held for Future Development Under Construction Capacity Under Total Capacity Region IDC Code Tenure Pre-commitment rate (2) Ready for Service Construction (MW) Pre-committed (MW) (1) E-JS Campus 03 Owned 27 27 100.0% 1H26 Yangtze River Delta (1) (2) E-JS04 Lea
Slide 27: Key P&L Items
Key P&L Items Three months ended Amount in thousands March 31, 2024 December 31, 2024 March 31, 2025 RMB RMB RMB US$ Net revenues 1,898,126 2,246,389 2,246,220 309,537 Cost of revenues (1,487,405) (1,741,533) (1,680,879) (231,631) Gross profit 410,721 504,856 565,341 77,906 Sales and marketing expen
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Three months ended Amount in thousands March 31, 2024 December 31, 2024 March 31, 2025 RMB RMB RMB US$ Gross profit 410,721 504,856 565,341 77,906 Plus: depreciation and amortization 352,604 414,364 402,399 55,452 Plus: share-based compensation expenses 2,190 4,652 1
Slide 29: Key Balance Sheet Items
Key Balance Sheet Items As of As of Amount in thousands December 31, 2024 March 31, 2025 RMB RMB US$ Cash, cash equivalents and Restricted cash 2,081,073 5,767,658 794,804 Accounts and notes receivable, net 1,655,984 2,028,264 279,502 Property and equipment, net 17,216,635 18,421,841 2,538,598 Intan
Slide 30: Key Cash Flow Items
Key Cash Flow Items Three months ended Amount in thousands March 31, 2024 December 31, 2024 March 31, 2025 RMB RMB RMB US$ Net cash generated from operating activities 267,587 572,236 195,713 26,969 Net cash used in investing activities (650,940) (1,376,160) (1,884,770) (259,728) Net cash (used in)
Slide 31: Definitions
Definitions Term Definition 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 IDC Business subdivided into wholesale IDC business and retail IDC business according to the
Slide 32: THANKS!
http://ir.vnet.com THANKS! Email: [email protected] IR Contact: Xinyuan Liu