VNET Group, Inc.

Good morning and good evening, ladies and gentlemen. Thank you and welcome to 21 ViaNet Group's fourth quarter 2020 earnings conference call. With us today are Mr. Samuel Shen, Chief Executive Officer and Executive Chairman of Retail IBC, Ms. Sharon Liu, Chief Financial Officer, and Ms. Renee Chang, Investor Relations Director of the company. I'll now turn the call over to your first speaker today, Ms. Renee Chang, IR Director of ViaNet, Please go ahead, ma'am.

Thank you, operator. Hello, everyone. Welcome to our fourth quarter and full year 2020 earnings call. Before we start, please note that this call may contain forward-looking statements made pursuant to the Safe Harbor provisions for the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different from the results, performance, or expectations implied by these forward-looking statements. All forward-looking statements are expressly qualified in their entirety by the cautionary statements, risk factors, and details of the company's with the SEC. 211 undertakes no duty to revise or update any forward-looking statements for selected events or circumstances after the state of this conference call. I will now turn the call over to Mr. Samuel Hsin, CEO of 211.

All right. Thank you, Renee. Good morning and good evening, everyone. Thank you for joining us on our earnest call today. During the fourth quarter of 2020, we exceeded our previous guidance range and grew our net revenues by 28.6% to RMB 1.35 billion from RMB 1.05 billion a year ago. In addition, we expanded our adjusted EBITDA margin to 28.9% from 25.2% and grew our adjusted EBITDA to RMB 389.8 million from RMB 263.8 million during comparable periods. We attribute such solid results to robust market demand, methodical resource expansion, meticulous customer services, and strong sales momentum. 2020 was an extraordinary year as we encountered both unprecedented challenges and tremendous opportunities. The challenges brought on by COVID-19 were certainly exceptional, yet out of the heap of challenges blossomed the robust demand for data center services. Since the pandemic outbreak, we have witnessed substantial changes in both consumer behaviors and corporate mentalities. Some of those changes were transitory, while others are permanent. We believe that the migration towards online entertainment, e-commerce, mobile computing, remote collaboration, and digitized services are permanent, thus filling the tremendous demand for IDC services. In addition, favorable government policies are also accelerating the digitization trend, which in turn are further stimulating the market demand for our solutions and services. To satisfy such growing market demand, we have been proactively expanding our capacity and resources. As of December 31, 2020, our capacity reached 53,553 cabinets in total, 93% of which were self-built and the remaining 7% of which were partnered. In the fourth quarter, we added 2,077 cabinets on a net basis. Our compound capacity utilization rate was 60.4% during the fourth quarter, among which our utilization rate was 77.8% for mature IDCs and 31.7% for ramp-up and newly built IDCs. As we envision unabated market demand for the foreseeable future, we have proactively expanded our resources. During the fourth quarter, we acquired a data center in Beijing with approximately 2,000 ready-to-use cabinets already under commitment to a public cloud customer. Such additional capacity should enable us to better serve large enterprise customers who continue to locate their mission-critical data processing operations in Tier 1 cities to achieve ultra-low latency. The requirements and preferences of these large enterprises limit the potential locations of their data centers to within a 100 kilometers radius from metropolitan areas. While we are expanding our capacity, we are also implementing strategic initiatives to ensure our capacity environmental sustainability. Such efforts include increasing our renewable energy utilization mix, improving the effectiveness of our power and water usage, and reducing our carbon intensity across all of our data centers. To increase the transparency of our corporate sustainability practices, we are currently preparing our initial ESG report and plan to publish it later this year. Beyond expanding our capacity in a methodical and sustainable manner, We also continued to leverage our flexibility in providing hybrid and multi-cloud infrastructure solutions, which enhancing our client services. Witnessing the consumer and corporate behavior changes in 2020, we have taken a proactive and data-driven approach that enabled us to not only measure, forecast, and address the unique IDC requirements for individual clients across industries. but also strategically plan our resource expansion and optimize our site selection to align our development with our client's growth trajectory. As a result, we have forged tight bonds with our customers and become an indispensable partner for our clients to cultivate their own evolving ecosystems. During the fourth quarter, we acquired a new public cloud customer who had started moving in as of the first quarter of 2021. In addition to securing new cloud customers, we also ramp up our engagement with large scale enterprises. We were able to sign an MOU with a popular content community and social platform company. As of today, we have accumulated wholesale MOU in service or under contract to over 180 megawatts. We also continued our extensive discussions with an online entertainment company, which is interested in utilizing a portion of our ITC capacity in Shanghai, where its headquarters are located, to support its rapid growth. In summary, we have accumulated abundant capacity, procured additional resources, and forged strong client relationships. With the additional capital raised from our recent convertible bond offering, we are well positioned to capitalize on the robust market demand emerging in the post-pandemic era. With that, I will turn the call over to Ms. Sharon Liu, our CFO, to review our financial results for the quarter. Sharon?