VNET Group, Inc. · NASDAQ:VNET
VNET — Q2 2025 Earnings Presentation
32 slides from VNET's earnings presentation, Aug 21, 2025
Slide 1: VNET Group, Inc. Earnings Presentation for 2Q25
VNET Group, Inc. Earnings Presentation for 2Q25 August 21, 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: 2Q25 Earnings Highlights
2Q25 Earnings Highlights ⚫ Wholesale IDC Business: capacity in service increased to 674MW (+101MW, +17.5% QoQ), capacity utilized increased to IDC Business Growth 511MW (+74MW, +17.0% QoQ), and the 2Q25 utilization rate of our wholesale IDC business was 75.9% Remained Strong ⚫ Retail IDC Business: r
Slide 5: Key IDC Customer Order Wins
Key IDC Customer Order Wins Capacity Contracted Signing Time of Region IDC Code Customer Sector Project Type / under MoU (MW) Contract / MoU Greater Beijing Area, IT services, Internet, Yangtze River Delta, Multiple Retail IDCs 4 2Q25 AIoT, and Financial Retail Greater Bay Area, and Services Other R
Slide 6: Hyperscale 2.0 Framework for Future Development
Hyperscale 2.0 Framework for Future Development Driven by the proliferation of AI, our blueprint is to grow data center assets under management to 10GW by 2036 By Leveraging innovative technologies Simply Providing Project-Based Capacity Delivery Offering Comprehensive AIDC Solutions to construct hi
Slide 7: Data Centers by Region
Data Centers by Region Wholesale Capacity in Service (674MW) Region % Yangtze River Delta 45.0% Greater Beijing Area 55.0% Total 100.0% Wholesale Capacity under Construction (326MW) Ulanqab Region % BTH Greater Beijing Yangtze River Delta 22.6% Area Greater Beijing Area 77.4% Total 100.0% Xi‘an Whol
Slide 8: Wholesale Data Centers at a Glance - Key Growth Driver
Wholesale Data Centers at a Glance - Key Growth Driver Total Capacity in Service & Capacity Utilized (MW) Utilization Rate (1) 674 75.9% 78.0% 573 76.2% 75.9% 72.6% 486 511 358 437 332 06/30/2024 09/30/2024 12/31/2024 03/31/2025 06/30/2025 353 Mature & Ramp-up Capacity Contribution & Utilization Rat
Slide 9: Wholesale Data Centers – Backlog Growth
Wholesale Data Centers – Backlog Growth 1,792 (MW) 1,620 1,500 +4 418 Company’s Expansion Pipeline to Support Long-term Growth Held for Future Development (Long-term) +73 414 +44 341 Held for Future Development 1,145 Robust Infrastructure and Operational Capabilities Enabling (Short-term) +119 374 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) 52,177 52,250 52,107 51,960 52,131 63.7% 63.1% 63.5% 63.7% 63.9% 06/30/2024 09/30/2024 12/31/2024 03/31/2025 06/30/2025 06/30/2024 09/30/2024 12/31/2024 03/31/2025 06/30/2025 MRR per Retail Ca
Slide 11: Resource Pipeline for the Next 12 Months
Resource Pipeline for the Next 12 Months 1H25 Capacity 2H25E Capacity 1H26E Capacity Next 12M Total Region IDC Code Tenure Status (MW) (MW) (MW) (MW) E-JS Campus 03 Owned Under Construction 32 - 66 66 Yangtze River Delta E-JS04 Leased Under Construction 5 8 - 8 N-HB Campus 01 A Owned Under Construct
Slide 12: Qiyu Wang, Chief Financial Officer of VNET
Qiyu Wang Chief Financial Officer of VNET
Slide 13: 2Q25 Financial Highlights
2Q25 Financial Highlights RMB MM 2Q24 1Q25 2Q25 YoY QoQ Net revenues 1,994 2,246 2,434 22.1% 8.4% Gross profit 425 565 548 28.9% -3.1% Adjusted cash gross profit (1) 787 968 1,062 34.9% 9.7% Adjusted cash gross margin 39.5% 43.1% 43.6% 4.1 pps. 0.5 pps. Adjusted EBITDA (2) 574 682 732 27.7% 7.3% Adj
Slide 14: Total Net Revenues Breakdown
Total Net Revenues Breakdown (RMB MM) 2,434 2,246 2,246 2,121 1,994 854 523 665 673 402 627 622 616 605 621 965 975 965 968 959 2Q24 3Q24 4Q24 1Q25 2Q25 Retail IDC Business (1) Non-IDC Business (2) Wholesale IDC Business (1) Source: Company data as of June 30, 2025 Notes: (1) IDC business refers to
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) 39.5% 40.6% 41.1% 43.1% 43.6% 28.8% 28.0% 32.1% 30.4% 30.1% +34.9% YoY +27.7% YoY +9.7% QoQ +7.3% QoQ 1,062 721 732 682 968 574 595 924 861 787 2Q24 3Q24 4Q24 1Q25 2Q
Slide 16: Strong Liquidity Position
Strong Liquidity Position Net Operating Cash Flow Cash Position (1) (RMB MM) (RMB MM) Credit line availability: RMB 6,955 MM unused 2,440 2,063 2,005 5,456 357 1,015 4,664 1,244 1,185 1,332 2,989 5,099 (2) 2,081 1,425 666 (2) 104 3,420 2,989 (2) 878 673 2,081 562 2022 2023 2024 1H25 12/31/2022 12/31
Slide 17: Well Laddered Debt Profile
Well Laddered Debt Profile Total Debt & Net Debt / TTM Adj. EBITDA (1) Debt Breakdown by Maturity (RMB MM) 8,585 6.4x 5.8x 5.3x 4.8x 3,008 3.9x 5.3x 4.7x 3,787 4.2x 3.8x 2,655 3.1x 2,169 5,577 1,363 1,216 2,655 1,216 1,618 1,363 2021 2022 2023 2024 2Q25 2025 2026 2027 2028 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 ◼ The majority of the RMB3.89 billion in capex for the first half of 2025 was allocated to the expansion of our wholesale IDC business. 4,982 3,991 3,894 ◼ To support our strong delivery plan for 2025, wh
Slide 19: Guidance
Guidance FY2025 Original FY2025 Revised RMB MM FY2024 Actual Implied YoY Implied YoY Guidance Guidance (3) Revenues 8,259 9,100 - 9,300 10% - 13% 9,150 - 9,350 11% - 13% Adjusted EBITDA (1) 2,342 (2) 2,700 - 2,760 15% - 18% 2,760 - 2,820 18% - 20% Capex 4,982 10,000 - 12,000 101% - 141% Unchanged -
Slide 20: ESG Initiatives – Commitment to Sustainability
ESG Initiatives – Commitment to Sustainability Commitment to achieve both targets of operational carbon neutrality in Scope 1 and Scope 2 emissions, and 100% renewable energy usage by 2030 Received A rating by MSCI, representing the highest ranking to date in China’s Internet Services & Infrastructu
Slide 21: Appendix
URSIELS 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 92.9% 100.0% E-JS Campus 01 Phase 2 Owned 16 8 16 52.5% 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 1 9 13.5% 100.0% N-HB02 Phase 1 Owned 28 27 28 97.1% 100.0% N-HB Campus 01 B Owned 36 33
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 66 0 0.0% 1H26 Yangtze River Delta (1) (2) E-JS04 Leased
Slide 27: Key P&L Items
Key P&L Items Three months ended Amount in thousands June 30, 2024 March 31, 2025 June 30, 2025 RMB RMB RMB US$ Net revenues 1,993,760 2,246,220 2,434,205 339,802 Cost of revenues (1,568,865) (1,680,879) (1,886,470) (263,341) Gross profit 424,895 565,341 547,735 76,461 Sales and marketing expenses (
Slide 28: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Three months ended Amount in thousands June 30, 2024 March 31, 2025 June 30, 2025 RMB RMB RMB US$ Gross profit 424,895 565,341 547,735 76,461 Plus: depreciation and amortization 364,616 402,399 513,891 71,736 Plus: share-based compensation expenses (2,190) 109 196 27
Slide 29: Key Balance Sheet Items
Key Balance Sheet Items As of As of Amount in thousands December 31, 2024 June 30, 2025 RMB RMB US$ Cash, cash equivalents and restricted cash 2,081,073 3,420,083 477,425 Short-term investments - 1,244,183 173,681 Accounts and notes receivable, net 1,655,984 2,216,078 309,353 Property and equipment,
Slide 30: Key Cash Flow Items
Key Cash Flow Items Three months ended Amount in thousands June 30, 2024 March 31, 2025 June 30, 2025 RMB RMB RMB US$ Net cash generated from operating activities 405,204 195,713 366,596 51,174 Net cash used in investing activities (1,027,098) (1,884,770) (3,282,065) (458,158) Net cash generated fro
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: ir@vnet.com IR Contact: Xinyuan Liu