VNET Group Inc (VNET) 2024 Q3 法說會逐字稿

Hello, ladies and gentlemen.

女士們、先生們，大家好。

Thank you for standing by for the third-quarter 2024 earnings conference call for VNET Group Inc.

感謝您出席 VNET Group Inc. 2024 年第三季財報電話會議。

After the management's prepared remarks, there will be a question and answer session.

管理階層準備好發言後，將進行問答環節。

(Operator Instructions)

（操作員說明）

Participants from our management include Mr. Gavin Shen, rotating President; Mr. Qiyu Wang, Chief Financial Officer; Mr. Ju Ma, Executive Vice President; Mr. Qi Yang, Senior Vice President; Ms. Xinyuan Liu, Investor Relations Director of the company.

管理階層的與會者包括輪值總裁沈嘉文先生；王啟宇先生，財務長；馬炬先生，執行副總裁；齊陽先生，資深副總裁；劉欣媛女士，公司投資人關係總監。

Please note that today's conference call is being recorded.

請注意，今天的電話會議正在錄音。

I would now like to turn the call over to the first speaker today, Ms. Xinyuan Liu.

現在我想把電話轉給今天第一位發言的劉欣媛女士。

Please go ahead.

請繼續。

Thank you, operator.

謝謝你，接線生。

Hello, everyone and welcome to our third-quarter 2024 earnings conference call.

大家好，歡迎參加我們的 2024 年第三季財報電話會議。

Our earnings release was distributed earlier today, and you can find a copy on our IR website, as well as on newswire services.

我們的財報已於今天早些時候發布，您可以在我們的 IR 網站以及新聞專線服務上找到副本。

Please note that today's call will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995.

請注意，今天的電話會議將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款做出的前瞻性陳述。

Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.

前瞻性陳述存在風險和不確定性，可能導致實際結果與我們目前的預期有重大差異。

For detailed discussions of these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC.

有關這些風險和不確定性的詳細討論，請參閱我們向 SEC 提交的最新年度報告和其他文件。

VNET does not undertake any obligations to update any forward-looking statements, except as required under applicable laws.

除適用法律要求外，VNET 不承擔任何更新任何前瞻性聲明的義務。

Please also note that VNET's earnings press release and this conference call include the disclosure of unaudited GAAP and non-GAAP financial measures.

另請注意，VNET 的收益新聞稿和本次電話會議包括未經審計的 GAAP 和非 GAAP 財務指標的揭露。

VNET's earnings press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures.

VNET 的收益新聞稿包含未經審計的非 GAAP 措施與未經審計的 GAAP 措施的調整表。

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.

我們將在本次電話會議期間參考的摘要簡報可以從我們的 IR 網站 ir.vnet.com 查看和下載。

Next, I'd like to alert you that we will be utilizing text-to-speech technology powered by Neolink.ai to deliver this quarter's prepared remarks by Gavin Shen, our rotating President; and Qiyu Wang, our CFO.

接下來，我想提醒您，我們將利用由 Neolink.ai 支援的文字轉語音技術來發表輪值總裁 Gavin Shen 準備好的本季演講；和我們的財務長王啟宇。

Gavin and Qiyu will join the Q&A session in person.

Gavin和Qiyu將親自參加問答環節。

Additionally, this conference is being recorded.

此外，本次會議正在錄製中。

A webcast of this conference call will also be available on our IR website at ir.vnet.com.

本次電話會議的網路直播也將在我們的 IR 網站 ir.vnet.com 上提供。

Now, let's get started with today's presentation.

現在，讓我們開始今天的演講。

Good morning and good evening, everyone.

大家早安，晚上好。

Thank you for joining our call today.

感謝您今天加入我們的電話會議。

I’ll start with an overview of our third quarter results.

我將首先概述我們第三季的業績。

Let’s turn to slide 4.

讓我們轉到投影片 4。

We delivered a strong quarter, led by a 12.4% year-over-year increase in net revenues to RMB2.12 billion, mainly driven by the rapid growth of our wholesale IDC business.

我們的季度表現強勁，淨收入年增 12.4% 至人民幣 21.2 億元，這主要得益於批發 IDC 業務的快速成長。

Adjusted EBITDA also increased by 20.2% year over year to RMB595 million, thanks to our cost and resource allocation optimization efforts.

得益於成本和資源配置優化，調整後 EBITDA 也較去年同期成長 20.2% 至人民幣 5.95 億元。

Our wholesale business maintained its strong growth momentum, with net revenues from this segment increasing by a remarkable 86.4% year over year to RMB523 million as we capitalized on rising demand.

我們的批發業務保持了強勁的成長勢頭，隨著需求的增長，該業務的淨收入同比大幅增長 86.4% 至人民幣 5.23 億元。

Wholesale capacity in service reached 358 megawatts as of the end of September, increasing by 69 megawatts year over year, and 26 megawatts quarter over quarter.

截至9月底，批發裝置容量達358兆瓦，年增69兆瓦，季增26兆瓦。

Wholesale capacity utilized reached 279 megawatts, increasing by 119 megawatts year over year, and 27 megawatts quarter over quarter.

批發產能利用率達279兆瓦，較去年增加119兆瓦，季增27兆瓦。

This reflects our ability to scale effectively and respond to the market's expanding digital infrastructure needs.

這反映了我們有效擴展和回應市場不斷擴大的數位基礎設施需求的能力。

The utilization rate of our wholesale business rose by 2.1 percentage points quarter over quarter to 78%, a healthy pace in this high-demand environment, and the utilization rate of our mature wholesale business reached a new high of 95.6%.

批發業務的利用率較上季上升2.1個百分點至78%，在高需求環境下維持健康成長，成熟批發業務的利用率達到95.6%的新高。

Our retail IDC business continued to progress smoothly, with capacity in service and utilization rate remaining stable as of the end of September.

零售IDC業務持續順利推進，截至9月底服務容量和使用率保持穩定。

Furthermore, our ample cash position and unused credit line provided reliable support for the company’s current business operations and future development.

此外，充裕的現金狀況和未使用的授信額度為公司目前的營運和未來的發展提供了可靠的支援。

Together, these results position us well for sustained growth and demonstrate our dedication to enhancing shareholder value.

總之，這些業績使我們能夠實現持續成長，並表明我們致力於提高股東價值。

Moving on to our new order wins during this quarter.

繼續我們在本季贏得的新訂單。

We continued attracting high-quality customers during the third quarter, with six new order wins totaling 84 megawatts.

第三季度，我們持續吸引優質客戶，新增訂單6個，總計84兆瓦。

As you can see on slide 5, in addition to the two IT services orders totaling 35 megawatts for our Ulanqab Campus that we mentioned on our last earnings call, we have secured another three orders for our data centers in the Greater Beijing area and one elsewhere.

正如您在投影片5 中看到的，除了我們在上次財報電話會議上提到的烏蘭察布園區總計35 兆瓦的兩份IT 服務訂單外，我們還為大北京地區的資料中心和其他地方的資料中心獲得了另外三份訂單。

Specifically, we won a new wholesale order from an Internet customer for 32 megawatts at our Huailai IDC Campus located in Hebei province, one of our green computing clusters, which I will review in more detail later.

具體來說，我們在位於河北省的懷來IDC園區贏得了互聯網客戶32兆瓦的新批發訂單，這是我們的綠色計算集群之一，我將在稍後詳細介紹。

We also received a 14-megawatt wholesale order from another Internet customer and a 1.2-megawatt retail order from a semiconductor customer for our data centers in Hebei province, as well as a 1.8-megawatt retail order from an Information and Communications Technology services customer for our data center in the northern region.

我們也收到另一家網路客戶的14 兆瓦批發訂單和一家半導體客戶的1.2 兆瓦零售訂單，用於我們位於河北省的資料中心，以及來自一家資訊和通訊技術服務客戶的1.8 兆瓦零售訂單。

The strong demand for our wholesale and retail data centers across key regions underscores the enduring customer appeal of our reliable and high-quality IDC services.

關鍵地區對我們的批發和零售資料中心的強勁需求凸顯了我們可靠、高品質的 IDC 服務對客戶的持久吸引力。

Now, let’s turn to slide 8 to look at the AI demand trends that shaped our development during the third quarter.

現在，讓我們轉向投影片 8，看看影響我們第三季發展的人工智慧需求趨勢。

We made significant strides in harnessing the growing AI-driven demand for high-performance computing power.

我們在利用人工智慧驅動的高效能運算能力日益增長的需求方面取得了重大進展。

We continue to see an increasing number of industries adopting AI applications for enhanced operational efficiency.

我們繼續看到越來越多的行業採用人工智慧應用程式來提高營運效率。

AI-driven demand among our customers primarily stems from leading internet clients and industry leaders in the cloud computing services, short video, local services, financial, and semiconductors sectors.

客戶的人工智慧驅動需求主要來自雲端運算服務、短視訊、本地服務、金融和半導體領域的領先網路客戶和行業領導者。

We have expanded our AI computing capabilities in response, aligning our infrastructure with the market’s surging needs for AI model training and data processing.

作為回應，我們擴展了人工智慧運算能力，使我們的基礎設施滿足市場對人工智慧模型訓練和資料處理不斷增長的需求。

Currently, over 98% of our wholesale capacity in service is capable of meeting high-performance computing power requirements, empowering us to quickly capture and accommodate customers’ AI-driven demand.

目前，我們超過98%的批發服務能力能夠滿足高效能算力需求，使我們能夠快速捕捉並滿足客戶人工智慧驅動的需求。

We have witnessed the unprecedented surge of large language model development starting in 2023.

從 2023 年開始，我們見證了大型語言模型開發的前所未有的激增。

During the past year, we have won around 300 megawatts of new orders, approximately 90% of which are set to facilitate AI demands of our customers.

去年，我們贏得了約300兆瓦的新訂單，其中約90%用於滿足客戶的人工智慧需求。

Additionally, we have deepened our collaboration with clients to better understand their specific AI requirements, enabling us to tailor our services to our customers more effectively.

此外，我們還加深了與客戶的合作，以更好地了解他們的特定人工智慧需求，使我們能夠更有效地為客戶量身定制服務。

We are consistently advancing our research and development on power modules and refrigeration and heat dissipation solutions that can achieve air cooling of up to 30 kilowatts per cabinet and liquid cooling of up to 120 kilowatts per cabinet.

我們不斷推進功率模組和製冷散熱解決方案的研發，可實現每機櫃風冷最高30千瓦、每機櫃液冷最高120千瓦。

We also continued to enhance our data centers with innovative designs, high-density cabinet deployments, and cutting-edge cooling technology.

我們也繼續透過創新設計、高密度機櫃部署和尖端冷卻技術來增強我們的資料中心。

Moving to slide 9.

轉到投影片 9。

I’d like to introduce our Huailai IDC Campus, which is part of the Zhangjiakou cluster of the national East Data, West Computing project, and serves as a demonstration project for the national collaborative innovation system for national integrated big data centers.

我想介紹一下我們懷來IDC園區，它是國家東數據西計算工程張家口集群的一部分，是國家綜合大數據中心協同創新體系示範工程。

It is situated just approximately 60 kilometers from downtown Beijing, close to customers, enabling us to efficiently meet their high demands for computing power, including the integration of training and inference for large language models as well as model fine-tuning.

它距離北京市中心僅約60公里，靠近客戶，使我們能夠有效率地滿足客戶對運算能力的高要求，包括大型語言模型的訓練和推理整合以及模型微調。

Our Huailai IDC Campus is a hyperscale green computing cluster, with a total planned construction land area of around 326,000 square meters.

懷來IDC園區是超大規模綠色運算集群，規劃總建設用地面積約32.6萬平方公尺。

Huailai, located in Hebei Province, northwest of Beijing, is home to our third computing power cluster, succeeding those in Ulanqab and Taicang.

懷來位於北京西北部的河北省，是繼烏蘭察布和太倉之後的第三個算力集群的所在地。

Huailai offers multiple strategic and geographic advantages.

懷來具有多重策略和地理優勢。

Currently, our Huailai IDC Campus' capacity stands at approximately 500 megawatts, and we plan to build the Campus into a gigawatt-level capacity computing cluster in phases.

目前，懷來IDC園區容量約500兆瓦，計畫分階段將園區打造為千兆瓦級容量的運算集群。

Owing to its exceptional service capabilities, our Huailai IDC Campus recently won a 32-megawatt order from an Internet customer to meet its demand for AI computing power.

憑藉卓越的服務能力，懷來IDC園區近期獲準網路客戶32兆瓦訂單，滿足其對AI算力的需求。

On a related note, we continue to develop our green data center business and recently received approval from the Energy Administration of Inner Mongolia for our first source-grid-load-storage integrated project, a 300,000-kilowatt project known as the Ulanqab Green Energy Project.

與此相關的是，我們繼續發展綠色資料中心業務，並於近期獲得內蒙古能源局批准我們的首個源網荷儲一體化項目－30萬千瓦項目，稱為烏蘭察布綠色能源項目。

The approved project encompasses 200,000 kilowatts of wind power, and 100,000 kilowatts of photovoltaic power, as well as 45,000 kilowatts of co-located energy storage, equivalent to 180,000 kilowatt-hours.

獲批項目包括風電20萬千瓦、光伏發電10萬千瓦、並置儲能4.5萬千瓦，相當於18萬千瓦時。

It also includes the construction of a dedicated electricity transmission line from renewable energy sources to our Ulanqab data center.

它還包括建造一條從再生能源到我們的烏蘭察布資料中心的專用輸電線路。

Once stable operations are achieved, the project is expected to generate approximately 700 million kilowatt-hours of green energy annually, providing our Ulanqab Campus with a steady, long-term supply of green energy.

工程穩定運作後，預計每年可發電綠色能源約7億千瓦時，為烏蘭察布校區提供穩定、長期的綠色能源供應。

We view the Ulanqab Green Energy Project as another value creator for our business, and are very excited about its approval.

我們將烏蘭察布綠色能源專案視為我們業務的另一個價值創造者，對其獲得批准感到非常興奮。

It is one of just a few source-grid-load-storage integrated projects in the China’s data center industry equipped with a dedicated electricity transmission line.

它是中國資料中心產業為數不多的配備專用輸電線路的源網荷儲一體化專案之一。

Not only will this project supply renewable, cost-efficient, green power to our Ulanqab Campus, but it will also create more synergies for our strategic cooperation with Shandong Hi-Speed Holdings Group Limited to develop renewable energy projects in northern China.

該項目不僅將為我們烏蘭察佈園區提供可再生、經濟高效的綠色電力，還將為我們與山東高速控股集團有限公司在中國北方開發再生能源項目的戰略合作創造更多協同效應。

Furthermore, Ulanqab’s approval will elevate the proportion of green power used in our data centers, propelling progress in carbon neutrality, one of our key ESG initiatives.

此外，烏蘭察布的批准將提高我們資料中心使用綠色電力的比例，推動碳中和（我們的關鍵 ESG 措施之一）的進展。

Now, moving on to a regional data update.

現在，繼續進行區域資料更新。

As you can see on slide 10, we remained focused on the development of the Yangtze River Delta and the Greater Beijing Area, with the latter region’s under construction capacity proportion increasing during the third quarter, mainly driven by the construction of our Huailai IDC Campus.

如投影片10所示，我們仍關注長三角和大北京地區的發展，第三季後者在建產能比例有所上升，主要是受到懷來工程建設的推動。

Now, let’s delve into our business updates, starting with our wholesale business on slide 11.

現在，讓我們從投影片 11 上的批發業務開始，深入了解我們的業務動態。

Wholesale business continues to drive our overall growth, recording an 86.4% year-over-year increase in revenue this quarter.

批發業務繼續推動我們的整體成長，本季營收年增 86.4%。

Our capacity in service increased by 26 MW quarter over quarter, reaching a total of 358 megawatts as of the end of September for an increase of 69 megawatts from the end of September of last year.

我們的在運容量較上月增加了26兆瓦，截至9月底總計達到358兆瓦，比去年9月底增加了69兆瓦。

The utilization rate increased to 78.0% compared with 75.9% last quarter, with a mature capacity utilization rate of 95.6% and a ramp-up capacity utilization rate of 46.4%.

利用率由上季的75.9%提升至78.0%，成熟產能利用率為95.6%，爬坡產能利用率為46.4%。

These utilization rate improvements reflect our ability to facilitate quick customer move-ins and our timely responses to customer needs during the quarter.

這些利用率的提高反映了我們在本季度促進客戶快速入住以及及時回應客戶需求的能力。

We have a clear growth path for our wholesale data center capacity.

我們的批發資料中心容量有明確的成長路徑。

Let’s move on to slide 12, which illustrates our progress in capacity development and utilization.

讓我們繼續看投影片 12，它展示了我們在產能開發和利用方面的進展。

Notably, our utilized capacity continued increasing during the past quarters, from 236 megawatts in the first quarter, to 252 megawatts in the second quarter, to 279 megawatts in the third quarter, primarily driven by strong customer demand from E-JS Campus 02 C and N-OR06.

值得注意的是，我們的利用容量在過去幾季持續成長，從第一季度的236 兆瓦增加到第二季的252 兆瓦，再到第三季的279 兆瓦，這主要是受到E -JS Campus 02 C 和N-OR06。

We also further ramped up construction in the past quarters to capture future rising demand, increasing capacity under construction from 139 megawatts in the first quarter to 279 megawatts in the second quarter to a total of 297 megawatts in the third quarter.

我們也在過去幾季進一步加大了建設力度，以應對未來不斷增長的需求，在建產能從第一季的139兆瓦增加到第二季的279兆瓦，第三季總計297兆瓦。

This increase is mainly attributed to the new order for our N-OR Campus 01 and N-HB Campus 01 B, which will provide reliable, high-performance computing infrastructure to our client.

這一增長主要歸功於我們的 N-OR Campus 01 和 N-HB Campus 01 B 的新訂單，這將為我們的客戶提供可靠的高效能運算基礎設施。

By the end of September, the pre-commitment rate for capacity under construction had risen to 88.4%.

截至9月底，在建產能預承諾率已升至88.4%。

Additionally, the capacity held for short-term future development increased by 72 megawatts to 192 megawatts, primarily due to an abundance of demand with high certainty.

此外，未來短期開發的容量增加了72兆瓦，達到192兆瓦，這主要是由於需求充足且確定性高。

We are closely communicating with our potential customers on multiple orders, which are soon expected to enter the construction phase.

我們正在與潛在客戶就多個訂單進行密切溝通，預計很快就會進入施工階段。

Given our high pre-commitment rate and the continuous growth in market demand, we are planning to further expand the capacity of our wholesale data centers, targeting a total capacity of approximately 1 gigawatt to solidify our leadership position in the data center services sector.

鑑於我們的高預承諾率和市場需求的持續成長，我們計劃進一步擴大批發資料中心的容量，目標總容量約為1吉瓦，以鞏固我們在資料中心服務領域的領導地位。

Moving to our retail business on slide 13.

前往投影片 13 上的零售業務。

Our retail IDC business continued to operate smoothly in the third quarter.

第三季零售IDC業務持續順利運作。

The retail capacity in-service has increased slightly to 52,250 cabinets.

零售容量小幅增加至52,250個櫃子。

The utilization rate was 63.1% as of the end of September, with mature capacity utilization rate holding steady at 69.5%.

截至9月底，產能利用率為63.1%，成熟產能利用率穩定在69.5%。

Our MRR per retail cabinet has slightly increased to RMB8,788 this quarter from RMB8,753 last quarter.

我們每個零售櫃的 MRR 從上季度的人民幣 8,753 元小幅增加至本季的 8,788 元人民幣。

Turning to our new capacity on slide 14, we see that the resource pipeline for our IDC business remains robust.

轉向幻燈片 14 上的新產能，我們看到 IDC 業務的資源管道仍然強勁。

Currently, we have seven data centers under construction.

目前，我們有七個資料中心正在建置中。

We plan to deliver an IT capacity of approximately 297 megawatts over the next 12 months from the fourth quarter of 2024 to the third quarter of 2025.

我們計劃在2024年第四季至2025年第三季的未來12個月內提供約297兆瓦的IT容量。

Our capacity in service for the wholesale business was 358 megawatts as of the end of the third quarter of 2024, meaning, that our expected new capacity is equivalent to approximately 83% of our current capacity in service.

截至 2024 年第三季末，我們的批發業務服務容量為 358 兆瓦，這意味著我們預期的新增容量相當於我們目前服務容量的約 83%。

Specifically, we anticipate delivering approximately 191 megawatts in total during the upcoming fourth quarter of 2024 and the first quarter of 2025, and approximately 105 megawatts in total during the second and third quarters of 2025.

具體來說，我們預計在 2024 年第四季和 2025 年第一季總共交付約 191 兆瓦，在 2025 年第二季和第三季總共交付約 105 兆瓦。

For our non-IDC business, our DYX business continued to expand its customer base by acquiring two new customers in the industrial and manufacturing sectors, offering its premium ICT consultation and SD-WAN services to support customers’ digital upgrades and business operations.

非IDC業務方面，DYX業務繼續擴大客戶群，獲得了兩個工業和製造領域的新客戶，提供優質的ICT諮詢和SD-WAN服務，支援客戶的數位升級和業務營運。

DYX currently boasts more than 220 PoPs in over 100 cities worldwide and will strategically expand its footprint to other countries and regions going forward.

DYX 目前在全球 100 多個城市擁有超過 220 個 PoP，並將策略性地將其足跡擴展到其他國家和地區。

In conclusion, the strong execution of our effective strategy drove strong third-quarter results.

總之，我們有效策略的強有力執行推動了第三季的強勁業績。

Looking ahead, we will continue to refine our core strengths to build high-performance data centers and offer innovative IDC services.

展望未來，我們將持續強化核心優勢，打造高效能資料中心，提供創新的IDC服務。

We are confident that our industry know-how and innovation capabilities will empower our success amid the AI boom.

我們相信，我們的產業知識和創新能力將助力我們在人工智慧熱潮中取得成功。

Additionally, building on our strategic cooperation with Shandong Hi-Speed Holdings Group, we will continue to develop our green energy business and deepen our commitment to our ESG goals.

此外，我們將在與山東高速控股集團的策略合作基礎上，繼續發展綠色能源業務，深化對ESG目標的承諾。

Propelling VNET’s high-quality and sustainable development remains our priority as we strive to deliver value to all of our stakeholders.

推動互聯互通高品質、永續發展仍然是我們的首要任務，努力為所有利害關係人創造價值。

Thank you, everyone.

謝謝大家。

I will now turn the call over to Qiyu to discuss more about our operating and financial performance.

我現在將把電話轉給齊宇，進一步討論我們的營運和財務表現。

Good morning and good evening, everyone.

大家早安，晚上好。

Before we start the detailed discussion of our third-quarter performance, please note that unless otherwise stated, all the financials we present today are for the third quarter of 2024, and are in Renminbi terms.

在我們開始詳細討論第三季業績之前，請注意，除非另有說明，我們今天提供的所有財務數據均為 2024 年第三季的數據，並以人民幣計價。

Furthermore, unless otherwise specified, all the growth rates I am reviewing are on a year over year basis.

此外，除非另有說明，我所審查的所有成長率都是逐年計算的。

Moving on to slide 16.

繼續看投影片 16。

In the third quarter, we remained focused on high quality revenue businesses, with high margins and delivered strong financial and operational results.

第三季度，我們仍然專注於高品質的收入業務，利潤率高，並取得了強勁的財務和營運業績。

Our total net revenues increased by 12.4% to RMB2.12 billion.

我們的總淨收入成長 12.4% 至 21.2 億元人民幣。

Our adjusted cash gross profit increased by 16.6% to RMB861 million， while our adjusted EBITDA also grew year over year by 20.2% to RMB595 million.

調整後現金毛利潤成長 16.6% 至 8.61 億元，調整後 EBITDA 也較去年同期成長 20.2% 至 5.95 億元。

In addition, our efforts to improve operational efficiency paid off, with sales and marketing, research and development, and general and administrative expenses decreasing by 12.9% year over year to RMB246 million for the third quarter.

此外，我們提高營運效率的努力得到了回報，第三季銷售和行銷、研發以及一般和管理費用較去年同期下降12.9%至人民幣2.46億元。

Going forward, we will continue to refine cost control measures and optimize our working capital to maintain our robust financial position.

展望未來，我們將持續改善成本控制措施並優化營運資金，以維持穩健的財務狀況。

Additionally, the company has deepened its emphasis on profitability through high-quality development, controlling costs and increasing efficiencies.

此外，公司透過高品質發展、控製成本和提高效率，加深了對獲利能力的重視。

While maintaining healthy cash flow, we also significantly improved our profitability this year, delivering a net profit for the third quarter as well as a cumulative net profit for the first nine months of 2024.

在保持健康現金流的同時，我們今年的獲利能力也顯著提高，實現了第三季淨利以及2024年前9個月的累計淨利。

In the third quarter of 2024, the company recorded a net profit of RMB332 million.

2024年第三季度，公司淨利3.32億元。

A significant improvement from the net loss of RMB40 million in the same period of last year.

較去年同期淨虧損4,000萬元大幅改善。

Sequentially, we recorded a substantial increase of 362% primarily due to the company's consistent operational improvements and a gain on debt extinguishment.

隨後，我們實現了 362% 的大幅成長，這主要是由於公司持續的營運改善和債務清償帶來的收益。

Let's look more closely at our topline, as we have mentioned previously, we have subdivided total net revenues from IDC business into wholesale and retail IDC business based on the nature and scale of our data center projects with revenues from non IDC business remaining separate.

讓我們更仔細地看看我們的營收，正如我們之前提到的，我們根據資料中心專案的性質和規模將IDC業務的總淨收入細分為批發和零售IDC業務，非IDC業務的收入保持獨立。

As you can see on slide 17, our wholesale revenues remained our key revenue growth driver with strong momentum increasing by 86% year over year to RMB523 million, mainly driven by the E-JS Campus 02 C and N-OR06 data centers.

正如您在幻燈片17 中看到的，我們的批發收入仍然是我們的主要收入增長動力，勢頭強勁，同比增長86% 至人民幣5.23 億元，主要由E-JS Campus 02 C 和N-OR06 數據中心推動。

Our retail revenues continued to account for the largest part of net revenues.

我們的零售收入繼續佔淨收入的最大部分。

Our retail revenues remained relatively stable increasing sequentially by 1.1% to RMB975 million.

我們的零售收入保持相對穩定，季增1.1%至人民幣9.75億元。

Our non-IDC business continued to progress smoothly.

非IDC業務繼續順利推進。

During the third quarter, we maintained solid margins thanks to our continuous efforts to enhance overall efficiency.

第三季度，由於我們不斷努力提高整體效率，我們保持了穩健的利潤率。

As we have shown on slide 18, our adjusted cash gross margins and EBITDA margins remain quite stable.

正如我們在幻燈片 18 中所示，我們調整後的現金毛利率和 EBITDA 利潤率保持相當穩定。

Moving on to liquidity on slide 19, we maintained a strong cash flow during the quarter.

轉向幻燈片 19 上的流動性，我們在本季保持強勁的現金流。

We recorded a net operating cash inflow of RMB1.43 billion for the first nine months of 2024, slightly higher than that of the same period of last year, primarily due to steady payment collection from customers and effectively measured expenditures.

2024 年頭 9 個月，我們錄得經營性現金流淨流入人民幣 14.3 億元，略高於去年同期，主要是因為客戶回款穩定，支出計量有效。

Our cash position remained healthy with the company's total cash equivalents or strictly cash and short term investments reaching RMB2.1 billion stable compared to that as of the end of the second quarter.

我們的現金狀況保持健康，公司現金等價物總額（嚴格來說是現金和短期投資）達到 21 億元，與第二季末相比保持穩定。

Next, let's take a look at debt on slide.

接下來，讓我們來看看投影片上的債務。

20.

20.

We maintained our prudent approach to debt management, with our net debt to the trailing 12 months adjusted EBITDA ratio at 4.9, and total debt to the trailing 12 months adjusted EBITDA ratio at 5.6 both remaining at a healthy level.

我們維持審慎的債務管理態度，淨債務與過去 12 個月調整後 EBITDA 的比率為 4.9，總債務與過去 12 個月調整後 EBITDA 的比率為 5.6，均維持在健康水準。

We prioritize long term debt maturity planning in our debt and strategic management to ensure the security of debt repayment.

我們將長期債務期限規劃放在債務和策略管理中，確保債務償還安全。

Notably, the company's short and medium term debt maturing in 2024 to 2026 comprises only 32% of our total debt.

值得注意的是，該公司2024年至2026年到期的中短期債務僅占我們總債務的32%。

Turning now to CapEx spending which we view as a critical investment in our future growth and industry presence.

現在轉向資本支出，我們認為這是對我們未來成長和產業影響力的關鍵投資。

As you can see on slide 21, our CapEx has remained relatively stable over the past three years of between RMB3 billion and RMB4 billion.

正如您在幻燈片 21 中看到的，我們的資本支出在過去三年中保持相對穩定，在 30 億元人民幣至 40 億元人民幣之間。

In the first nine months of 2024 our CapEx was RMB3.35 billion, of which RMB2.3 billion was used for wholesale business expansion.

2024 年頭 9 個月，我們的資本支出為人民幣 33.5 億元，其中 23 億元用於批發業務擴張。

We expect our CapEx for the full year 2024 will likely reach the high end of our guidance around RMB5.5 billion supported by our healthy balance sheet, solid cash flow, and the steady progress we're making in selling mature assets.

我們預計，在我們健康的資產負債表、穩健的現金流以及我們在出售成熟資產方面取得的穩步進展的支持下，2024 年全年的資本支出可能會達到我們指引的上限，即55 億元人民幣左右。

We have sufficient capital to support our CapEx plan for the near future, while maintaining a reasonable leverage position.

我們有足夠的資本來支持近期的資本支出計劃，同時保持合理的槓桿狀況。

Now, moving to our full year guidance for 2024 on slide 22. we have decided to increase our full year guidance for total net revenues and adjusted EBITDA, primarily because faster than expected move ins from our core customers’ wholesale projects are accelerating the growth of our wholesale IDC business, along iwth our retail business is steady progress.

現在，轉向幻燈片 22 上的 2024 年全年指導。批發IDC業務隨著我們的零售業務穩步發展。

Specifically, we expect total net revenues to be in the range of RMB8 billion to RMB8.1 billion a year over year increase of 7.9% to 9.3% an adjusted EBITDA to be in the range of RMB2.28 billion to RMB2.3 billion, representing a year over year increase of 16.4% to 17.4%.

具體來說，我們預計總淨收入將在人民幣80億元至人民幣81億元之間，年增7.9%至9.3%，調整後的EBITDA將在人民幣22.8億元至人民幣23億元之間，年比成長16.4%至17.4%。

Next, I want to share some details on our pre-REITs project.

接下來，我想分享一些有關我們預先 REITs 專案的細節。

As previously mentioned, we are proactively advancing the capitalization of our wholesale data centers and have made significant progress recently.

如前所述，我們正在積極提高批發資料中心的資本化，並且最近取得了重大進展。

Currently, we are in the final stages of entering into a definitive agreement with one of China's leading insurance companies and expect to sign this agreement by the end of 2024 to co-establish a pre-REITs fund through which the fund will acquire a 100% stake in the first and second phases of our Taicang IDC campus.

目前，我們正處於與中國領先的保險公司之一達成最終協議的最後階段，預計在 2024 年底前簽署該協議，共同設立一隻 pre-REITs 基金，該基金將透過該基金收購 100% 的股權入股太倉IDC園區一期和二期。

VNET will retain a 51% equity interest in the underlying assets through the fund and will continue to consolidate the project's financial results in the company's financial statement, and manage the daily operations of the assets to provide a seamless customer experience.

VNET將透過該基金保留基礎資產51%的股權，並將繼續將該專案的財務表現合併到公司的財務報表中，並管理資產的日常運營，以提供無縫的客戶體驗。

The underlying assets have a total IT capacity of approximately 210 megawatts and are valued at RMB5.74 billion. VNET

基礎資產總IT容量約210兆瓦，價值人民幣57.4億元。網際網路

will receive approximately RMB1.15 billion, as the consideration of equity interest held by the insurance company.

將獲得約人民幣11.5億元，作為持有保險公司股權的對價。

This transaction marks the first direct investment by a major Chinese insurance company in mature data center assets in China.

此次交易標誌著中國大型保險公司首次對中國成熟資料中心資產進行直接投資。

It highlights VNET's prowess in effectively managing capital cycle, bolstering and diversifying the company's capital sources with long term investors, while further enhancing the company's balance sheet efficiency.

它凸顯了VNET在有效管理資本週期、透過長期投資者支持和多元化公司資本來源、同時進一步提高公司資產負債表效率方面的實力。

If this project progresses as planned, it will further strengthen our cash reserves and reduce our debt ratio.

如果該專案按計劃進展，將進一步增強我們的現金儲備並降低我們的負債比率。

The company will continue to pursue exits for our existing premium data centers through multi-tiered REITs structures including public REITs.

該公司將繼續透過包括公共房地產投資信託在內的多層房地產投資信託結構尋求退出現有的優質資料中心。

This will create a steady source of incremental cash flow and build a healthy sustainable capital structure and asset operating cycle supporting our high quality long term development.

這將為我們創造穩定的增量現金流來源，建立健康可持續的資本結構和資產營運週期，支撐我們高品質的長期發展。

As Gavin mentioned earlier, our source grid load storage integrated project in Ulanqab, facilitated in collaboration with Shandong Hi-Speed Holdings Group Limited, recently obtained a local governmental approval.

正如Gavin先前所提到的，我們與山東高速控股集團有限公司合作的烏蘭察布源網荷儲一體化計畫最近獲得了當地政府的批准。

This project is expected to come into service during the second half of next year and will further increase the proportion of VNET's green energy usage.

該計畫預計明年下半年投入使用，將進一步提升互聯新網綠色能源使用比例。

Going forward, we will further deepen our commitment to our ESG initiatives.

展望未來，我們將進一步深化對 ESG 舉措的承諾。

To sum up, we are pleased to deliver another better-than-expected quarter led by robust growth in our wholesale business, continued revenue growth, and significantly enhanced profitability, thanks to the strong execution of our effective dual core strategy.

總而言之，我們很高興再次實現好於預期的季度業績，得益於我們有效的雙核戰略的有力執行，我們的批發業務強勁增長，收入持續增長，盈利能力顯著提高。

Supported by our robust business fundamentals and healthy cash position, we will continue to invest in business development especially AI driven opportunities to propel our high quality sustainable growth.

在我們穩健的業務基礎和健康的現金狀況的支持下，我們將繼續投資於業務發展，特別是人工智慧驅動的機會，以推動我們的高品質永續成長。

This concludes our prepared remarks for today.

我們今天準備好的演講到此結束。

We are now ready to take questions.

我們現在準備好回答問題。

(Operator Instructions) Sara Wang, UBS.

（操作員指令） Sara Wang，UBS。

(interpreted)

（解釋）

Thank you for the opportunity to ask a question.

感謝您給我提問的機會。

I have two questions.

我有兩個問題。

First is that it's actually encouraging to see that we have like multiple new orders for this quarter rather than a one and two, only have a new customer.

首先，看到我們本季有多個新訂單，而不是一個和兩個，只有一個新客戶，這實際上令人鼓舞。

So when I ask, what is driving the demand here, is it still AI computing demand?

所以當我問，是什麼推動了這裡的需求，還是人工智慧運算需求嗎？

And how is the pricing or return on the new orders we see this year?

今年我們看到的新訂單的定價或回報如何？

Maybe a little bit more on the pricing.

也許在定價上多一點。

So given some of our peers also raising CapEx, how shall we see the competition going forward?

鑑於我們的一些同業也在提高資本支出，我們將如何看待未來的競爭？

My second question is on the green energy project in Ulanqab.

我的第二個問題是關於烏蘭察布市綠色能源計畫。

I believe it's definitely helping to win more customers and long-term relationships.

我相信這肯定有助於贏得更多客戶和長期合作關係。

How shall we think about pricing and margin of this project, given we now have an integrated solution of the green power supply?

既然我們已經有了綠色供電的整體解決方案，我們該如何考慮這個專案的定價和利潤呢？

So can we think about the pricing and margin maybe better than before?

那麼我們是否可以考慮定價和利潤可能比以前更好？

(interpreted)

（解釋）

This is Ju Ma, Executive Vice President.

我是馬菊，執行副總裁。

I will take your first question.

我將回答你的第一個問題。

As you rightly pointed out to that, we did have a lot of new orders from Q3.

正如您正確指出的那樣，我們確實從第三季度獲得了許多新訂單。

And to be specific, we signed 6 new orders [in Q3], totaling 84 megawatts.

具體來說，我們[第三季]簽署了6個新訂單，總計84兆瓦。

And most of them are AI workload-related requests.

其中大部分是與人工智慧工作負載相關的請求。

And so with that being said, our total new orders received for the past year totaled 300 megawatts.

話雖如此，我們去年收到的新訂單總數為 300 兆瓦。

And among them, 90% of them are AI workload related.

其中，90%與AI工作負載相關。

So of course, you are right that the growth is mainly driven by the market demand from AI-related workload.

當然，你說的對，成長主要是由人工智慧相關工作負載的市場需求所推動的。

And looking forward, that we do notice that in the market there is stronger demand for inference as more applications are being rolled out because of the AI boom.

展望未來，我們確實注意到，由於人工智慧的繁榮，隨著更多應用程式的推出，市場對推理的需求更加強勁。

And we are seeing a faster growth of inference-related requests in the market.

我們看到市場上與推理相關的請求成長更快。

So our reading is that [training-related demand will remain the major part of new orders accounting for around 90%], inference will become a stronger market demand going into next year [with higher] (added by company after the call) proportion among the new orders.

因此，我們的解讀是[培訓相關需求仍將是新訂單的主要部分，約佔90%]，推斷明年的市場需求將成為更強勁的[且]（由公司在電話會議後添加）比例新訂單。

So to respond to market needs like this, we are planning ahead.

因此，為了因應這樣的市場需求，我們正在提前規劃。

And one of the moves that we did is plan for our Huailai IDC center campus because, given its geographic proximity to Beijing, and we are actually launching integrated training and inference services to cater to users' needs.

我們所做的舉措之一就是規劃懷來IDC中心園區，因為考慮到其地理位置靠近北京，我們實際上正在推出綜合培訓和推理服務來滿足用戶的需求。

And just a quick add to that, we have started to serve our clients for their inferencing needs starting from Q3 in our retail campus.

快速補充一下，我們從第三季開始在我們的零售園區開始滿足客戶的推理需求。

So that's an answer for your question on the new orders.

這就是您關於新訂單的問題的答案。

(interpreted)

（解釋）

On your second question, this is Gavin, rotating President.

關於第二個問題，我是輪值主席加文。

For the pricing of our newly secured orders, it remained consistent with our previous orders.

對於我們新獲得的訂單的定價，它與我們先前的訂單保持一致。

As we are seeing a more balanced supply and demand, we are anticipating the price will become gradually stable in the second half of the next year and even starting to pick up.

隨著供需更加平衡，我們預計明年下半年價格將逐漸穩定，甚至開始回升。

And for our wholesale campus, because we are seeing more effect of economies of scale, our construction cost is gradually coming down, also, we are having

對於我們的批發園區來說，因為我們看到了更多的規模經濟效應，我們的建設成本正在逐漸下降，而且我們正在

[lower financing cost] (corrected by company after the call).

[降低融資成本]（公司在電話會議後更正）。

So that brings the total cost for these operational costs for these centers are coming down.

因此，這些中心的營運成本總成本正在下降。

And as a result, we are seeing increased ROI.

因此，我們看到投資報酬率有所提高。

(interpreted)

（解釋）

This is Qi Yang.

這是齊陽。

I will take your third question on the Ulanqab green project.

我將回答你關於烏蘭察布市綠色工程的第三個問題。

Recently, we have received the approval from related energy authorities in Inner Mongolia Autonomous Region.

近日，我們已獲得內蒙古自治區相關能源主管機關的批准。

I think the approval will significantly increase the synergies between us and the Shandong Hi-Speed.

我認為此次批准將顯著增強我們與山東高速之間的協同效應。

With related to the construction work, it's going to be carried out by the subsidiaries owned by Shandong Hi-Speed.

相關建設工作將由山東高速旗下子公司實施。

That's the new energy construction company.

那就是新能源建設公司。

They will be doing the construction work for that.

他們將為此進行建設工作。

So we have received a total granted capacity of 300,000 kilowatts for this project.

所以我們這個計畫總共獲得了30萬千瓦的授標容量。

So once this project is put into operation, it is expected to generate a total of 700 million worth of kilowatt hours of green electricity.

該項目一旦投產，預計將產生總計7億千瓦時的綠色電力。

So this would provide long-term，[stable] green energy supply to our Ulanqab campus.

這將為我們烏蘭察布校區提供長期[穩定]的綠色能源供應。

We are expecting that in the second half of the year, the electricity will be integrated into the grid, and start to supply the power.

預計下半年，電力將併入電網，並開始供電。

So once that's done, it's going to significantly increase the proportion of green energy used by the Ulanqab campus next year.

一旦完成，明年烏蘭察布校區使用綠色能源的比例將大幅增加。

And with regard to the margin, with all of that being said, I think the [project’s] (added by company after the call) margin will improve.

關於利潤率，儘管如此，我認為[專案]（由公司在電話會議後添加）利潤率將會提高。

Next question, please.

請下一個問題。

Shuyun Che, CICC.

車淑雲，中金公司。

(interpreted)

（解釋）

Congratulations on the strong results.

祝賀取得了優異的成績。

My first question is for the pre-REITs in Taicang.

我的第一個問題是關於太倉預REITs的。

This project has made progress, may I know more details such as the current utilization rate, revenue and EBITDA margin.

該專案已取得進展，請詢問目前的使用率、收入和 EBITDA 利潤率等更多詳細資訊。

And will the company carry out similar projects in the future?

公司未來是否會開展類似項目？

And my second question is about VNET plans to deliver 297 megawatts in the wholesale business in the next 12 months.

我的第二個問題是關於 VNET 計劃在未來 12 個月內提供 297 兆瓦的批發業務。

Could management please share with us the outlook of the CapEx next year?

管理階層能否與我們分享明年資本支出的展望？

(interpreted)

（解釋）

I'll take your first question.

我來回答你的第一個問題。

Actually, the Taicang project has been in the making for a while, and I'm very pleased to be able to share more details at this earnings call.

事實上，太倉計畫已經醞釀了一段時間，我很高興能夠在本次財報電話會議上分享更多細節。

For the first phase and second phase of our Taicang campus, right now, the utilization rate is around 50% plus, give or take.

對於我們太倉園區的一期和二期來說，目前利用率約50%。

And given that is still at the ramping up stage, we expected that the utilization rate will rise to 95% by the end of next year.

鑑於仍處於爬坡階段，我們預計明年年底利用率將升至95%。

And by that time, we would have an EBITDA at around RMB570 million.

到那時，我們的 EBITDA 約為 5.7 億元。

The Taicang project marks the very first example where China's large-scale insurance company directly purchased the equity stake of domestic IDC.

太倉專案是國內大型保險公司直接收購國內IDC股權的首例。

And we have gained a lot of experience through this project.

我們透過這個專案獲得了很多經驗。

In the process, we have engaged four to five large insurance companies and has had engaged with them extensively.

在這個過程中，我們已經與四到五家大型保險公司進行了合作，並且與他們進行了廣泛的合作。

And this laid a very good, solid foundation for our future cooperation.

這為我們以後的合作打下了非常好的、堅實的基礎。

So going forward, we would advance similar projects.

因此，展望未來，我們將推進類似的項目。

So at the moment, the utilization rate for our Taicang campus is around 50%.

所以目前我們太倉園區的使用率在50%左右。

So we would likely to advance to such a project when the utilization rate is lower than this because this would allow us to generate some [equity] cash flow

因此，當利用率低於此值時，我們可能會推進這樣的項目，因為這將使我們能夠產生一些[股權]現金流

[in early stage] (corrected by company after the call).

[早期階段]（電話後由公司更正）。

Meanwhile, we will still consolidate the financial statements into our group level statements.

同時，我們仍會將財務報表合併到集團層級的報表中。

And our goal for 2025 is to carry out the pre-REITs project for our first phase of Ulanqab project.

我們2025年的目標是為烏蘭察布計畫一期進行預REITs計畫。

(interpreted)

（解釋）

Next, on CapEx.

接下來，關於資本支出。

We are seeing robust demand for our wholesale services, and that would translate into increased CapEx for 2025.

我們看到對批發服務的強勁需求，這將轉化為 2025 年資本支出的增加。

Our strategy is to work closely with our strategic suppliers and to maximize the synergies in order to make sure that our CapEx grow at a steady pace.

我們的策略是與策略供應商密切合作，最大限度地發揮協同效應，以確保我們的資本支出穩定成長。

Daley Li, Bank of America Securities.

Daley Li，美國銀行證券。

(interpreted)

（解釋）

Hi, management.

嗨，管理層。

Thanks for taking my questions.

感謝您回答我的問題。

Congrats on the strong results.

祝賀取得強勁的成果。

I have two questions.

我有兩個問題。

First one is regarding the demand outlook by region, we have a project in Mongolia Ulanqab, but also in Huailai in Hebei province.

第一個是關於分地區的需求前景，我們在蒙古烏蘭察布有一個項目，在河北懷來也有一個項目。

So how do we see the demand in the two regions in the next two to three years?

那我們該如何看待未來兩三年這兩個地區的需求呢？

And which region we may spend more CapEx in the future?

未來我們可能會在哪些地區花費更多的資本支出？

My second question is about the gross profit margin.

我的第二個問題是關於毛利率。

We see the Q3 gross margin is in a good trend.

我們看到第三季的毛利率趨勢良好。

And what's the key drivers for the better gross profit margin?

毛利率提高的關鍵驅動因素是什麼？

How do we see the future gross margin trend?

我們如何看待未來的毛利率走勢？

(interpreted)

（解釋）

I'll take your first question.

我來回答你的第一個問題。

Right now, for the group's development strategy, we would strategically focus on three campuses or three regions, while exploring the possibilities and opportunities at other regions.

目前集團的發展策略，我們會策略性地聚焦三個校區、三個區域，同時探索其他區域的可能性和機會。

So the first strategic focus area is the Ulanqab campus.

所以第一個戰略重點區域是烏蘭察布校區。

So we position this as a green, scalable, large language model driven or oriented campus.

因此，我們將其定位為綠色、可擴展、大型語言模型驅動或導向的校園。

And our goal is to build it into a gigawatt scale campus.

我們的目標是把它建成千兆瓦規模的園區。

The majority of the requests or tasks we're handling at this campus is training related.

我們在這個校園處理的大部分請求或任務都與訓練有關。

So that's the majority of the request or the workloads that we're handling at this campus，[while it will also supports some inference-related demand] (added by company after the call).

這就是我們在這個園區處理的大部分請求或工作負載[同時它也將支援一些與推理相關的需求]（由公司在電話會議後添加）。

And the second strategic focus region is our Huailai campus at Hebei province.

第二個戰略重點區域是我們位於河北省的懷來園區。

We have started to receive new orders for this campus.

我們已經開始收到該校區的新訂單。

So we are very pleased to see that.

所以我們很高興看到這一點。

And our goal is also to scale this into a gigawatt campus.

我們的目標是將其擴展為千兆瓦園區。

Given its geographic proximity to Beijing, it could enjoy the spillover benefit.

鑑於其地理位置靠近北京，它可以享受溢出效應。

So we're going to use this campus to accommodate inference as well as some small-scale training-related workloads.

因此，我們將使用這個園區來容納推理以及一些與小規模訓練相關的工作負荷。

And other than that, we're going to use this campus to accommodate some other requests by our existing clients from Beijing.

除此之外，我們將利用這個園區來滿足北京現有客戶的一些其他要求。

And the next strategic campus for us is the Taicang campus located in Jiangsu province.

我們的下一個戰略校區是位於江蘇省的太倉校區。

This is a core node to support our clients in the Jiangsu region.

這是支持我們江蘇地區客戶的核心節點。

We're planning to carry out the construction for the third phases.

我們計劃進行第三期的建設。

Meanwhile, we'll explore other opportunities in Suzhou and within Jiangsu province to expand our wholesale business in that region.

同時，我們將在蘇州和江蘇省內探索其他機會，以擴大我們在該地區的批發業務。

(interpreted)

（解釋）

On your question on gross profit margin, there are three reasons that could explain the increase of our gross profit margin.

關於你提到的毛利率問題，我們的毛利率上升有三個原因。

One, we are constantly optimizing our IDC centers’[operation] (added by company after the call).

第一，我們不斷優化我們的IDC中心－[營運]（電話後由公司新增）。

That includes the optimization for the personnel as well as PUE.

這包括人員和 PUE 的優化。

And the second reason is the rising share of wholesale business among our revenue because it has a higher gross profit margin than retail business as well as non-IDC business.

第二個原因是批發業務在我們收入中的比例不斷上升，因為它的毛利率高於零售業務以及非IDC業務。

And the third reason is that last year, we made adjustment to our discount term so that we have a lower discount rate.

第三個原因是去年我們對折扣條款進行了調整，使我們的折扣率更低。

All these three reasons explained the rise of our gross profit margin.

這三個原因解釋了我們毛利率的上升。

On the last reason, third reason, we adjust the term for our depreciation.

最後一個原因，第三個原因，我們調整折舊期限。

So hence, it's more -- it's reflecting the actual situation on the ground.

因此，它更多地反映了當地的實際情況。

So with these three conditions and reasons we are having a better gross profit margin.

所以有了這三個條件和原因，我們就有了更好的毛利率。

[All these three reasons explained the rise of our gross profit margin] (added by company after the call).

[這三個原因解釋了我們毛利率的上升]（公司在電話會議後補充）。

Tom Tang, Morgan Stanley.

湯姆唐，摩根士丹利。

(interpreted)

（解釋）

Thanks for the opportunity to ask question.

感謝您有機會提問。

Congratulations on the very strong results.

祝賀取得了非常強勁的成果。

I only have one question, which is on the fourth quarter outlook.

我只有一個問題，就是第四季的前景。

So can we have some more details on how we think about the demand in the fourth quarter, especially for wholesale business and if we're expecting to see more new orders coming in, whether it's from AI or training or different traditional demand?

那麼，我們能否詳細了解我們如何看待第四季度的需求，特別是批發業務，以及我們是否預計會看到更多新訂單，無論是來自人工智慧、培訓還是不同的傳統需求？

(interpreted)

（解釋）

Let me take your question.

讓我回答你的問題。

If you look at our guidance, we expect that our wholesale business to grow at a faster pace in Q4.

如果你看看我們的指導，我們預計我們的批發業務在第四季度將以更快的速度成長。

And in terms of the revenue and gross profit for our retail business and non-IDC business, that will be consistent with the guidance that we give.

就我們的零售業務和非IDC業務的收入和毛利而言，這將與我們給予的指導一致。

So it's going to be relatively consistent or flat.

所以它會相對一致或平坦。

If you look at our deliveries in Q3, and based on that, we are confident that we are able to fulfill the annual delivery target set.

如果你看看我們第三季的交付情況，基於此，我們有信心完成設定的年度交付目標。

So with that being said, we are confident that we can fulfill our operational plan going forward.

話雖如此，我們有信心實現未來的營運計劃。

Edison Lee, Jefferies.

愛迪生李，傑弗里斯。

(interpreted)

（解釋）

(technical difficulty) in terms of CapEx, in terms of maybe tech requirement for AI training versus inferencing demand?

（技術難度）就資本支出而言，就人工智慧訓練的技術要求與推理需求而言？

That's question number one.

這是第一個問題。

Question number two is

第二個問題是

(technical difficulty).

（技術難度）。

And question number three is looking at (technical difficulty) your amount of power held for short-term development actually went up from 120 megawatts to 192 megawatts.

第三個問題是（技術難度）你為短期發展而持有的電量實際上從 120 兆瓦增加到 192 兆瓦。

So can you explain to us what was driving that growth?

那麼您能否向我們解釋一下是什麼推動了這種成長？

(technical difficulty)

（技術難度）

Hello, Edison, can you please repeat your third question?

你好，愛迪生，你能重複一下你的第三個問題嗎？

Number one question or number three question?

第一個問題還是第三個問題？

Number three.

第三。

Number three is on your page 12, future development short term

第三個在你的第12頁，未來的短期發展

(technical difficulty).

（技術難度）。

Sorry, your connection is not stable.

抱歉，您的連線不穩定。

I'll ask in the call back, don't worry.

我會在回電中詢問，不用擔心。

Just, let's talk about the first two questions.

只是，我們先來談談前兩個問題。

(interpreted)

（解釋）

I'll take your first question.

我來回答你的第一個問題。

Given the current landscape supply and demand for the AI in China, we expect the demand for training-related workload will continue to perform very strongly, and that's going to last into next year.

鑑於目前中國人工智慧的供需格局，我們預計與培訓相關的工作量的需求將繼續表現強勁，並將持續到明年。

However, we did notice that there are some industries like quantitative trading firms, as well as autonomous driving firms. they are having stronger demand for inference and training, integrated services, as well as pure inferencing-related requests.

不過我們也注意到有一些產業，像是量化交易公司，還有自動駕駛公司。他們對推理和培訓、綜合服務以及純粹的推理相關請求有更強烈的需求。

That's why we are actually expanding our services at Huailai and our retail service campuses to accommodate such demand.

這就是為什麼我們實際上正在擴大我們在懷來和零售服務園區的服務，以滿足這種需求。

So we expect such a trend to continue well into next year and then with a stronger, quicker growth some time in Q4 and next year.

因此，我們預計這種趨勢將持續到明年，然後在第四季度和明年的某個時候出現更強勁、更快的成長。

(interpreted)

（解釋）

I'll talk about the CapEx.

我會談談資本支出。

Other than the investment in our wholesale business, so with regard to the RMB1 billion, over half of that is spent on our retail data centers that is used for the maintenance, [expansion] (added by company after the call), repairs and repurposing of these retail data centers.

除了我們批發業務的投資之外，所以這10億元人民幣，其中一半以上是用於我們的零售數據中心，用於維護、[擴展]（公司在通話後添加）、維修和重新利用這些零售數據中心。

And we used the other half of the RMB1 billion to purchase GPU-related hardwares to meet users' demand.

我們用這10億元的另一半購買GPU相關的硬體來滿足用戶的需求。

So that will be delivered coupled with their other related

因此，這將與其他相關的一起交付

[demand for our data centers] (added by company after the call).

[對我們資料中心的需求]（由公司在通話後添加）。

Timothy Zhao, Goldman Sachs.

提摩西·趙，高盛。

(interpreted)

（解釋）

Great.

偉大的。

I have two questions here.

我在這裡有兩個問題。

One is that, I think on your wholesale IDC business, based on my calculation, I think in terms of the monthly recurring revenue or monthly services revenue, it seems that there is a Q on Q increase to a bigger extent.

一是，我覺得你們的批發IDC業務，根據我的計算，我認為從每月的經常性收入或每月的服務收入來看，似乎有一個更大程度的Q on Q的增長。

Could you explain the reason or the drivers behind?

您能解釋一下原因或背後的驅動因素嗎？

And secondly, I think for your in service capacity for the wholesale IDC business, just wondering if management can give us any outlook for the fourth quarter this year and next year, please?

其次，我認為你們批發IDC業務的服務能力，只是想知道管理階層是否可以給我們今年第四季和明年的展望？

(interpreted)

（解釋）

Let me take your first question.

讓我回答你的第一個問題。

I think that's mainly because for our wholesale business, the clients are moving in a lot faster than we expected.

我認為這主要是因為對於我們的批發業務來說，客戶的進入速度比我們預期的要快得多。

So that's why we are seeing the monthly recurring revenue increasing quarter over quarter.

這就是為什麼我們看到每月經常性收入逐季成長。

And other than that, thanks to the effective scale of economies, the decrease in construction costs as well as the funding costs, our profitability is also improving, and it's better than our expectation.

除此之外，由於經濟有效規模的擴大，建設成本以及融資成本的下降，我們的獲利能力也在改善，而且比我們的預期好。

So these two reasons explain the increased MRR.

這兩個原因解釋了 MRR 的增加。

(interpreted)

（解釋）

On the delivery outlook, we maintain our current delivery plan unchanged.

關於交付前景，我們維持目前的交付計畫不變。

We are going to deliver the rest of the planned deliveries in Q4.

我們將在第四季交付剩餘的計畫交付量。

So that's on the planned delivery for this year.

這就是今年的計畫交付。

Looking ahead to the next year, given the orders that we have received as well as the potential expansion with our existing clients, we have already also given our guidance on the capacity to be delivered

展望明年，考慮到我們收到的訂單以及現有客戶的潛在擴張，我們也已經對交付能力給出了指導

[in next four quarters] (corrected by company after the call).

[未來四個季度]（公司在電話會議後更正）。

Ladies and gentlemen, that concludes our conference for today.

女士們、先生們，今天的會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect your lines.

現在您可以斷開線路。

Statements in English on this transcript were spoken by an interpreter present on the live call.

本筆錄中的英語陳述是由現場通話中的口譯員說出的。

The interpreter was provided by the company sponsoring this event.

口譯員由贊助本次活動的公司提供。