VNET Group, Inc.

Hello, ladies and gentlemen. Thank you for standing by for the third quarter 2025 earnings conference call for VNet Group Inc. After the management's prepared remarks, there will be a question and answer session. Please note the Chinese line is in listen-only mode. If you wish to ask questions, please dial in through the English line. Participants from our management include Mr. Zhu Ma, Rotating President, Mr. Key Yu Wang, Chief Financial Officer, Ms. Jin Huan Lu, Head of Investor Relations of the company. Please note that today's conference call is being recorded. I will now turn the call over to the first speaker today, Ms. Jin Huan Lu. Please go ahead.

Thank you, Operator. Hello, everyone, and welcome to our third quarter 2025 earnings conference call. Our earnings release was distributed earlier today. and you can find a copy on our website as well as on newswire services. Please note that today's call will contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussions of these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC. VNAT does not undertake any obligations to update any forward-looking statements except as required under applicable laws. Please also know that VNAT's earnings press release and this conference call include the disclosure of unaudited GAAP and non-GAAP financial matters. VNAT's earnings press release contains a reconciliation of the unaudited non-GAAP matters to the unaudited GAAP matters. A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our IR website at ir.vnet.com. Next, I'd like to alert you that we will be utilizing text-to-speech technology powered by Newlink.ai to deliver this quarter's prepared remarks by Mr. Ju Ma, our rotating president, and Mr. Qi Yu Wang, our CFO. The management team will join the Q&A session in person. Additionally, this conference is being recorded. A webcast of this conference call will also be available on our website at ir.vnet.com. Now let's get started with today's presentation. Mr. Ma, please go ahead.

Good morning and good evening, everyone. Thank you for joining our call today. I'll start with an overview of our major accomplishments during the third quarter of 2025. Let's turn to slide four. we delivered another strong quarter, demonstrating our strategy's effectiveness in capturing opportunities. On the operational side, our wholesale IDC business sustained its robust growth trajectory, driven by our rapid delivery capabilities and customers' fast-moving pace. As of September 30, 2025, Our wholesale capacity in service grew by 16.1% quarter over quarter to 783 megawatts, an increase of around 109 megawatts. Wholesale capacity utilized by customers rose by 13.8% quarter over quarter to 582 megawatts, an increase of around 70 megawatts. while the utilization rate was 74.3%, reflecting customers' continuous demand for our high-quality, high-performance AIDC services. Our retail IDC business continued to progress smoothly, benefiting from growing AI-driven demand. This quarter, our retail MRR per cabinet increased for six consecutive quarters, reaching RMB 8,948. On the financial side, Our total net revenues increased by 21.7% year-over-year to RMB 2.58 billion for the third quarter. Wholesale revenues remained our key growth driver, reaching RMB 956 million, a significant year-over-year increase of 82.7%, fueled by the rapid growth of our wholesale IDC business. Our adjusted EBITDA for the third quarter also increased by 27.5% year-over-year to RMB 758 million. In addition, building on the increase we announced to our full-year guidance before Q2 earnings this year, we are further increasing our full-year revenue and adjusted EBITDA guidance this quarter, thanks to faster-than-anticipated movings among wholesale IDC customers and ongoing operational efficiency gains. Supported by our premium wholesale and retail IDC services, we continue to capitalize on strong customer momentum and secure new orders in the third quarter. I'll share more on the next slide. Moving on to our new order wins on slide five. In the third quarter, we secured three wholesale orders totaling 63 megawatts, specifically In addition to the 20 megawatt order from our JV project we mentioned on our last call, we won a 40 megawatt order from an internet company as announced in September, and a three megawatt order from an intelligent driving company, all four data centers in the greater Beijing area. Entering the fourth quarter, we are seeing continued order momentum, including a 32 megawatt wholesale order we just secured from an internet company for a data center in the Yangtze River Delta. Furthermore, driven by growing demand from customers for intelligent deployment, we secured a combined capacity of approximately two megawatts in new retail orders across multiple retail data centers from customers in the cloud services, local services, and financial services sectors. During the quarter, Rapid AI development and broader adoption of AI applications continued to fuel growth in China's IDC industry. We saw sustained momentum in AI-related investments, especially from hyperscalers that are executing strong CapEx expansion plans. This has further accelerated demand for high-performance data centers. Driven by AI training and inference needs, AI has become the core growth driver of the IDC industry. propelling the industry's business model evolution from project-based resource delivery to platform-based services that provide integrated AIDC solutions. Meanwhile, customer demand and critical resources, such as power, are increasingly concentrated among leading IDC players. As an industry pioneer in AIDC development, we're leveraging our acute insights strong resources, and premium, reliable services to seize these structural growth opportunities by quickly meeting customers' needs. Now, let's delve into our business updates, starting with our wholesale business on slide 7. Our wholesale business maintained strong growth momentum. with capacity in service increasing by around 109 MW quarter over quarter to 783 MW and utilization rate remaining stable at 74.3%, mainly attributable to our delivery capacities at our NOR Campus 02 and NHB Campus 01A and faster-than-expected move-ins at our NOR Campus 01. Our mature capacity utilization rate also reached 94.7%, a relatively high level. We have a clear growth path for our wholesale data center capacity. Let's move on to slide eight. As of the end of the third quarter, our total wholesale resource capacity was around 1.8 gigawatts. Specifically, our capacity under construction was around 306 megawatts. Capacity held for short-term future development was around 414 megawatts, and capacity held for long-term future development was around 291 megawatts. These secured resources represent a significant advantage in light of the IDC industry's limited effective supply and are in line with our optimistic view of AI-driven demand's long-term growth potential. Moving to our retail IDC business on slide nine. our retail business continued to progress smoothly in the third quarter. Retail capacity in service was 52,288 cabinets, with the utilization rate increasing slightly to 64.8% as of the end of September. As I just mentioned, our retail MRR per cabinet has increased for six consecutive quarters, reaching RMB 8,948. Turning to our delivery plan on slide 10, with our strong and efficient delivery capabilities, we successfully delivered a total of around 109 megawatts in the third quarter of 2025, bringing our total deliveries around 297 megawatts as of the end of September this year. We currently have seven data centers under construction, with six in the greater Beijing area and one in the Yangtze River Delta. We plan to deliver around 306 megawatts of capacity over the next 12 months or around 132 megawatts during the fourth quarter of 2025 and the first quarter of 2026 and around 174 megawatts during the second and third quarters of 2026. This delivery plan reflects our view as of the end of September. but we may update these estimates as we gain greater visibility over the next couple of quarters. In conclusion, our strong third quarter results showcase our ability to identify opportunities and our readiness to seamlessly meet evolving market demand. Our visionary Hyperscale 2.0 framework has positioned us to lead under the new global AI-driven paradigm. Supported by advantages across high-density deployment, delivery speed and quality, and cutting-edge, sustainable technology. As AI-related demand grows, we will continue to advance our effective dual-core strategy and hyperscale 2.0 framework, seizing opportunities to further unleash our growth potential in the AI era. Now, I will turn the call over to our CFO, Qi Yu, for further discussion of our operating and financial performance. Thank you, everyone.