VNET Group Inc (VNET) 2024 Q4 法說會逐字稿

Thank you for standing by for the fourth quarter and full year 2024 earnings conference call for VNET Group Incorporated. After the management's prepared remarks, there will be a question-and-answer session.

感謝您參加 VNET Group Incorporated 2024 年第四季和全年財報電話會議。管理層準備好的發言之後，將有一個問答環節。

(Operator Instructions)

（操作員指令）

Participants from our management include Mr. Ju Ma, Rotating President; Mr. Qiyu Wang, Chief Financial Officer; Mr. Qi Yang, Senior Vice President; and Ms. Xinyuan Liu, Head of Investor Relations of the company.

我們管理階層的參與者包括輪值總裁馬炬先生；王啟宇先生，財務長；齊陽先生，資深副總裁；以及公司投資人關係主管劉新媛女士。

Please note that today's conference call is being recorded. I will now turn the call over to the first speaker today, Ms. Xinyuan Liu. Please go ahead.

請注意，今天的電話會議正在錄音。現在我將把電話交給今天的第一位發言者劉新媛女士。請繼續。

Thank you, operator. Hello everyone, and welcome to our fourth quarter and full year 2024 earnings conference call. Our earnings release was distributed earlier today. And you can find a copy on our site as well as our newswire services.

謝謝您，接線生。大家好，歡迎參加我們的 2024 年第四季和全年財報電話會議。我們的收益報告已於今天稍早發布。您可以在我們的網站和新聞通訊服務上找到副本。

Please note that today's call will contain forward-looking statements made under these harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995.

請注意，今天的電話會議將包含根據美國 1995 年私人證券訴訟改革法案的這些規定做出的前瞻性陳述。

Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. More detailed discussions of these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC. VNET does not undertake any obligation to update any forward-looking statements, except as required under applicable laws.

前瞻性陳述受風險和不確定性的影響，可能導致實際結果與我們目前的預期有重大差異。有關這些風險和不確定性的更多詳細討論，請參閱我們最新的年度報告和向美國證券交易委員會提交的其他文件。VNET 不承擔更新任何前瞻性聲明的義務，除非適用法律要求。

Please also note that VNET's earnings press release and this conference call include the disclosure of unaudited GAAP and non-GAAP financial matters. VNET's earnings press release contains a reconciliation of the unaudited net GAAP measures to the unaudited GAAP matters. A summary presentation, which we will refer to during this conference call can be viewed and downloaded from our website at ir.vnet.com.

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 財務事項的揭露。VNET 的收益新聞稿包含未經審計的淨 GAAP 指標與未經審計的 GAAP 事項的對帳。我們將在本次電話會議中參考的摘要簡報可在我們的網站 ir.vnet.com 上查看和下載。

Now let's get started with today's presentation. Mr. Ma, please go ahead.

現在我們開始今天的演講。馬先生，請說。

Good morning and good evening, everyone. Thank you for joining our call today. I'd like to begin with several key achievements from our fourth quarter and the full-year performance in 2024. Firstly, our wholesale business has delivered remarkable growth, while our retail business has remained stable. Secondly, our net revenue and adjust EBITDA have significantly surpassed our previous guidance.

大家早安，晚上好。感謝您今天參加我們的電話會議。首先，我想介紹一下我們第四季和 2024 年全年的幾項重要成就。首先，我們的批發業務取得了顯著成長，而零售業務保持穩定。其次，我們的淨收入和調整後EBITDA已大幅超過我們先前的預期。

Thirdly, we have recently secured a total of 252.5 megawatts in orders from customers across the internet, cloud computing, and intelligence-driving industries. Looking ahead to 2025, all the delivery plan and orders from customers for the next 12 months have seen substantially increases. I will now provide a detailed overview of these achievements.

第三，近期我們獲得了來自網路、雲端運算、智慧駕駛等產業客戶的訂單，總計252.5兆瓦。展望2025年，未來12個月的所有交付計畫和客戶訂單均大幅增加。現在我將詳細概述這些成就。

Let's turn to slide 5. We closed 2024 with a strong fourth quarter highlighted by our wholesale IDC business, remarkable performance as we identified and capitalized on emerging market opportunities, especially at advanced technology driven demand.

讓我們翻到幻燈片 5。我們在 2024 年第四季取得了強勁的成績，這得益於我們的批發 IDC 業務，我們發現並利用了新興市場機遇，尤其是在先進技術驅動的需求方面，取得了卓越的業績。

As of December 31, 2024, our wholesale capacity in service increased significantly, rising by [127] megawatts quarter over quarter to 486 megawatts. Wholesale capacity utilized reached 353 megawatts, increasing by 73 megawatts quarter over quarter, thanks to strong customer demand for our wholesale data centers. We have also observed a notable uptake in our wholesale customers moving pace recently accelerating to 6 to 12 months from around 24 months in the past.

截至 2024 年 12 月 31 日，我們在役的批發容量大幅增加，季增 [127] 兆瓦，達到 486 兆瓦。由於客戶對我們批發資料中心的強勁需求，批發容量利用率達到 353 兆瓦，季增 73 兆瓦。我們還觀察到，我們的批發客戶的搬遷速度最近明顯加快，從過去的 24 個月左右加快到 6 至 12 個月。

Meanwhile, our retail IDC business continued to progress smoothly as of December 31, 2024. Our retail capacity in service was 52,107 cabinets, with self-built cabinets increasing by 212 year over year and 189 quarter over quarter. We also delivered impressive financial results for the fourth quarter and the full year.

同時，截至2024年12月31日，我們的零售IDC業務持續順利進行。在役零售運力52107個櫃，其中自建櫃較去年同期增加212個，較上季增加189個。我們也取得了令人印象深刻的第四季和全年財務表現。

Let's move on to slide 6. Our net revenue increased by 18.3% year over year to RMB2.25 billion for the fourth quarter. Notably, revenue from the wholesale business reached a record high at RMB665 million for the quarter, representing our fastest year-over-year growth rates at 125.4% for any quarter of 2024.

讓我們繼續看第 6 張投影片。第四季度，我們的淨營收年增18.3%至人民幣22.5億元。值得注意的是，本季批發業務收入創下人民幣 6.65 億元的歷史新高，年成長率達 125.4%，為 2024 年任何季度中最快的。

Adjusted EBITDA for the fourth quarter also increased by 63.8% year over year to RMB721.3 million, meaning due to our wholesale IDC business rapid growth. Our adjusted EBITDA margin for the fourth quarter increased by nearly 10% points year over year to 32.1%. For the full year, we delivered net revenue of RMB8.26 billion, up 11.4% year over year, and adjusted EBITDA of RMB2.43 billion, up 19.1% year over year, both exceeding the high end of increased guidance we provided last quarter. Meanwhile, we achieved a full-year net profit of RMB248 million, marking a turnaround from net loss in 2023 through continuous profit related improvements.

第四季調整後EBITDA也較去年同期成長63.8%至7.213億元人民幣，這得益於我們批發IDC業務的快速成長。我們第四季的調整後 EBITDA 利潤率年增近 10 個百分點，達到 32.1%。全年淨營收達82.6億元人民幣，年增11.4%；調整後息稅折舊攤銷前利潤（EBITDA）達24.3億元人民幣，較去年同期成長19.1%，均超過上季給出的預期上限。同時，我們透過持續的利潤改善，扭轉了2023年淨虧損的局面，實現全年淨利2.48億元。

Moving on to our new order wins on slide 7. Our high performance standards, outstanding delivery capabilities, and premium services continued to attract quality orders. In the fourth quarter, we secured a 32 megawatts order from an existing internet customer for our capacity in the [Yangtze River Delta] And one of our retail data centers located in the Great Bay Area also win a 1.5 megawatts order from a new customer in intelligent driving industry during the quarter.

繼續討論幻燈片 7 上的新訂單勝利。我們的高效能標準、出色的交付能力和優質的服務持續吸引優質訂單。第四季度，我們從長三角地區的一家現有互聯網客戶那裡獲得了 32 兆瓦的訂單，而我們位於大灣區的一家零售數據中心也在本季度從智能駕駛行業的新客戶那裡贏得了 1.5 兆瓦的訂單。

Meanwhile, in overland travel, we signed a framework agreement with an internet customer for 100 megawatts of capacity, including a 28-megawatt order to be delivered in the fourth quarter of 2025. Additionally, we also secured a 55-megawatt order from a leading cross computing customer in this region, demonstrating our customers' deep and enduring trust in our high-quality services. Furthermore, we recently win a 64-megawatt wholesale order from an international customer for the project. We operate in Hebei Province with our joint venture partner [Changzhouaoing] Group.

同時，在陸地出行方面，我們與一家網路客戶簽署了100兆瓦容量的框架協議，其中包括將於2025年第四季交付的28兆瓦訂單。此外，我們還獲得了該地區領先的跨計算客戶的55兆瓦訂單，顯示了客戶對我們高品質服務的深厚而持久的信任。此外，我們最近也贏得了一位國際客戶的64兆瓦項目批發訂單。我們與合資夥伴[常州奧鷹]集團在河北省開展業務。

This joint venture enable us to serve more customers while minimizing the impact on our balance sheet, providing an efficient means of growing our customer base and optimizing our business layout. Looking ahead, we will continue utilizing joint venture structures to further enhance our efficiency and facilitate high quality business development.

這項合資企業使我們能夠服務更多的客戶，同時最大限度地減少對我們資產負債表的影響，為擴大客戶群和優化業務佈局提供有效的手段。展望未來，我們將繼續利用合資結構進一步提高效率，促進高品質的業務發展。

Now moving to our full-year guidance for 2025 on slide 8. We expected total net revenues for 2025 to be between RMB9.1 billion to RMB9.3 billion, representing year-over-year growth of 10% to 13%. Adjusted EBITDA is expected to be in the range of RMB2.7 billion to RMB2.76 billion, representing year-over-year growth of 15% to 18%.

現在轉到第 8 張投影片上的 2025 年全年指引。我們預計2025年總淨收入將在人民幣91億元至人民幣93億元之間，年增10%至13%。調整後EBITDA預計在27億元至27.6億元之間，年增15%至18%。

Based on our new orders and the delivery plan, our capital expenditure for 2025 is expected to be in the range of RMB10 billion to RMB12 billion, representing year over year growth of 101% to 141%. Also, we expected to deliver 400 megawatts to 450 megawatts in the next 12 months, an increase of 161% to 194% from 2024's total deliveries.

根據我們的新訂單和交付計劃，我們預計2025年的資本支出將在人民幣100億元至人民幣120億元之間，年增101％至141％。此外，我們預計未來 12 個月將交付 400 兆瓦至 450 兆瓦，比 2024 年的總交付量增加 161% 至 194%。

Moving into 2025, we are seeing persistent high demand for high performance data centers with recent breakthroughs by DIC propelling the domestic AI development and driving the IDC industry's rapid growth. As such, we are confident that the growth potential in China's IDC market is poised to be further allocated. Let's take a closer look at our recent observations on slide 9, starting with Deepseek impact.

進入2025年，我們看到對高效能資料中心的持續高需求，DIC最近的突破推動了國內人工智慧的發展並帶動了IDC產業的快速成長。因此，我們有信心中國IDC市場的成長潛力將會進一步釋放。讓我們仔細看看幻燈片 9 上我們最近的觀察結果，從 Deepseek 的影響開始。

Deepseek innovative achievements have significantly bolstered confidence in domestic AI development, catalizing a surge in influence demand and enterprises, enthusiasm for investing in AI, including large [CSP] internet enterprises, and the small, medium enterprises.

深智庫的創新成果大大增強了國內人工智慧發展的信心，激發了包括大型網路企業、中小企業在內的影響力需求和企業對人工智慧的投資熱情。

Deepseek innovative models and technologies are enhancing efficiency and reducing both cost and dependencies on high performance chips for training and inference. It will become easier for companies to execute their AI strategies, triggering wider AI adoption industry-wide, and the greater need to build out AI infrastructure. In turn, lower all barriers to entry for AI will lead greater demand for our reliable wholesale IDC services.

Deepseek 創新模型和技術正在提高效率、降低成本以及對訓練和推理高性能晶片的依賴。企業將更容易執行其人工智慧策略，從而引發整個產業更廣泛的人工智慧應用，以及建立人工智慧基礎設施的更大需求。反過來，降低人工智慧的所有進入門檻將導致對我們可靠的批發 IDC 服務的需求增加。

Furthermore, as more companies integrate AI into their operations, insurance demand is expected to surge. We have already observed significant. Demand from small and medium-sized enterprises for private deployment of Deepsake. We expect this positive market trend to persist for the foreseeable future, bringing exciting business opportunities for our retail IDC business. We will seize these opportunities to effectively enhance our retail data centers, utilization rate, and IRR, laying a solid foundation for our long-term business development.

此外，隨著越來越多的公司將人工智慧融入其營運中，保險需求預計將激增。我們已經觀察到了顯著的現象。中小企業對Deepsake私有部署的需求。我們預計這種積極的市場趨勢將在可預見的未來持續下去，為我們的零售IDC業務帶來令人興奮的商機。我們將抓住這些機遇，有效提升零售資料中心的使用率和內部報酬率，為長期業務發展奠定堅實的基礎。

That turn to slide 10. As we have shared previously, the Yangtze River Delta and the Great Beijing Area are our core business regions. The layout of our wholesale capacity in service is dynamically balanced in two regions, with the proportion of capacity under construction in the Great Beijing area increasing.

轉到第 10 張投影片。正如我們之前分享的，長三角和大北京地區是我們的核心業務區域。公司在役批發運力在兩大區域實現動態平衡佈局，大北京地區在建運佔比不斷提升。

On a related note, industry research suggests that overall utilization rates at China's state center are set to increase steadily. Tier one cities with vibrant digital economies are expected to begin experiencing supply shortages of the high performance data centers needed to run AI applications as AI related business expand.

相關消息稱，產業研究表明，中國國家中心的總體利用率將穩步上升。隨著人工智慧相關業務的擴展，預計擁有活躍數位經濟的一線城市將開始面臨運行人工智慧應用所需的高性能資料中心的供應短缺。

More physically as a crucial area for the development of China's AI internet and high technology industry, the Great Beijing region is experiencing steady growth in data centered adoption and utilization rates. With the deepening application of generated AI and enhancement of computing power and the network infrastructure, the overall utilization rate of wholesale data center in the Great Beijing area is projected to reach 85% as early as 2025, marking the first potential supply shortage in the market.

作為中國人工智慧互聯網和高科技產業發展的關鍵區域，大北京地區資料中心的採用率和利用率正在穩步增長。隨著人工智慧產生的應用不斷深入，運算能力和網路基礎設施的增強，預計到2025年，大北京地區批發資料中心的整體利用率將達到85%，標誌著市場首次出現潛在的供應短缺。

In the Yangtze River Delta region, a new wave of structural upgrades in AI technology will temporarily relieve pressure on the supply demand balance in 2025. Given the sustained growth in demand, the overall utilization rate of wholesale data center in Yangtze River Delta region is expected to reach 85% by 2026, at which point this area will also face supply shortages.

在長三角地區，人工智慧技術的新一輪結構性升級將暫時緩解2025年的供需平衡壓力。鑑於需求的持續成長，預計到2026年長三角地區批發資料中心的整體利用率將達到85%，屆時該地區也將面臨供應短缺。

As a leading player in the computing infrastructure industry, we have a clear growth path for our IDC. Our strong delivery and service capabilities position us well to capture market opportunities stemming from these shortages driving our sustainable growth.

作為運算基礎設施產業的領導企業，我們的IDC有著清晰的成長路徑。我們強大的交付和服務能力使我們能夠抓住這些短缺所帶來的市場機遇，推動我們的永續成長。

Now, let's delve into our business updates, starting with our wholesale business on slide 11. As the company's primary growth engine of a wholesale business achieved outstanding fourth quarter results in terms of both revenue, which reached RMB665 million and the growth rates which accelerated to 125.4% year over year. This segment is striving as high performance IDC services remain in high demand across the market, especially as leading internet players continue to deepen their investment in AI for driving demand growth.

現在，讓我們深入了解我們的業務更新，從幻燈片 11 上的批發業務開始。作為該公司主要成長引擎的批發業務第四季度取得了優異的業績，營業收入達到6.65億元，成長速度年增至125.4%。由於高效能 IDC 服務在整個市場仍然需求旺盛，這一領域正在努力發展，特別是隨著領先的互聯網公司繼續深化對人工智慧的投資以推動需求成長。

To meet this demand, we increased capacity in service during the quarter by 127 megawatts to 486 megawatts. Meanwhile, capacity utilized rolls by 73 megawatts to 353 megawatts, mainly driven by high utilization and faster than expired moving at our [GS campus 02] Our wholesale business utilization rate decreased slightly to 72.6, due to our delivery of 127 megawatts concentrated in the fourth quarter of 2024.

為了滿足這一需求，我們本季將服務容量增加了 127 兆瓦，達到 486 兆瓦。同時，利用率增加了 73 兆瓦，達到 353 兆瓦，這主要是由於我們的 [GS 園區 02] 利用率高且移動速度快於到期日。我們的批發業務利用率略有下降，至 72.6，因為我們在 2024 年第四季集中交付了 127 兆瓦。

We also delivered a mature capacity utilization rate of 95.6%, a relatively high level and a ramp up capacity utilization rate of 34%. We have a clear growth path for our wholesale data center capacity. Let's move on to slide 12. We maintained our growth trend in overall wholesale data center capacity with 486 megawatts in services and utilize the capacity increasing to 353 megawatts by the end of the fourth quarter.

我們的成熟產能利用率也達到了 95.6%，處於相對較高的水平，產能利用率也達到了 34%。我們對批發資料中心容量有明確的成長路徑。讓我們繼續看第 12 張投影片。我們維持了整體批發資料中心容量的成長趨勢，服務容量為 486 兆瓦，到第四季末，利用容量增加到 353 兆瓦。

Our capacity under construction was 406 megawatts in the fourth quarter with a pre-commitment rate for capacity under construction of 82.9% by the end of December. Additionally, capacity held for short-term future development increased sequentially by 75 megawatts to 267 megawatts, primarily due to an abundance of demand with high certainty.

第四季度，我們的在建容量為406兆瓦，截至12月底，在建容量預承諾率為82.9%。此外，短期未來開發的容量環比增加了 75 兆瓦，達到 267 兆瓦，這主要是由於高度確定的需求充足。

With striving AI development, driving greater market demand for IDC services, we will continue to press forward with our robust expansion plan for wholesale data center capacity, laying a foundation for further business growth.

隨著人工智慧的大力發展，帶動IDC服務的市場需求增加，我們將繼續大力推動資料中心批發容量的擴張計劃，為進一步的業務成長奠定基礎。

Moving to our retail IPC business on slide 13. Our retail business remains stable and continued to progress smoothly in the fourth quarter. Retail capacity in service was 52,107 cabinets with 33,068 utilized cabinets for utilization rate of 63.5% as of the end of December. MR per retail cabinet increased slightly to RMB8,794 square.

前往第 13 張投影片上的零售 IPC 業務。我們的零售業務保持穩定並在第四季度繼續順利進展。截至 12 月底，零售容量在用機櫃 52,107 個，利用機櫃 33,068 個，利用率為 63.5%。每櫃零售價略為上漲，至人民幣8,794元/平方。

Turning to our delivery pair on slide 14. In 2024, we successfully brought a total of 153 megawatts into services, showcasing our robust and efficiency delivery capabilities and the deep commitment to meeting customer demand. This includes over 127 megawatts during the fourth quarter and 26 megawatts in the first nine months, fast surpassing our guidance.

前往投影片 14 上的交付對。2024年，我們成功將總計153兆瓦的電力投入服務，展現了我們強大而高效的交付能力以及滿足客戶需求的堅定承諾。其中包括第四季度的 127 兆瓦和前九個月的 26 兆瓦，迅速超出了我們的預期。

For 2025, customer demand for high performance, reliable IDC resources remains strong, and we expected all the deliveries will set a new annual record. We currently have eight data centers under construction and a plan to deliver 406 megawatts of capacity over the next 12 months, or around 140 megawatts during the first half of 2025 and around 266 megawatts in total during the second half of 2025, reflecting strong customer demand and our outstanding delivery capabilities.

展望2025年，客戶對高效能、可靠的IDC資源的需求依然強勁，我們預期所有交付量都將創下新的年度紀錄。我們目前有 8 個資料中心在建，計劃在未來 12 個月內交付 406 兆瓦的容量，即 2025 年上半年交付約 140 兆瓦，2025 年下半年交付總計約 266 兆瓦，這反映了強勁的客戶需求和我們出色的交付能力。

IDC business also remains a key component of our overall business growth. Notably, we continued to expand our business customer base by acquiring new customers from the medical technology, professional services, and consulting industries for [DEX] premium, dedicated internet services, EVPL and SD1 services.

IDC業務仍然是我們整體業務成長的關鍵組成部分。值得注意的是，我們繼續擴大我們的商業客戶群，從醫療技術、專業服務和諮詢行業獲取 [DEX] 優質專用互聯網服務、EVPL 和 SD1 服務的新客戶。

In conclusion, our effective new core strategy and a strong execution drove excellent fourth quarter and the full year 2024 results. Moving into 2025, we remain confident in China's growth potential, led by demand in the IDC industry due to the AI boom. To capitalize on this opportunity, we will continue to innovate, strengthening our capability and expanding our high performance data center network to offer our customer solution designed to seamlessly address their demands in the AI era. As always, we are committed to delivering sustainable long-term value to all of our stakeholders.

總而言之，我們有效的新核心策略和強大的執行力推動了第四季和 2024 年全年的優異業績。展望2025年，我們仍對中國的成長潛力充滿信心，這主要得益於人工智慧蓬勃發展所帶來的IDC產業需求。為了利用這一機會，我們將繼續創新，增強我們的能力並擴展我們的高效能資料中心網絡，為客戶提供旨在無縫滿足他們人工智慧時代需求的解決方案。一如既往，我們致力於為所有利害關係人提供可持續的長期價值。

Now I will turn the call over to our CFO, Qiyu for further discussion of our operating and financial performance. Thank you, everyone.

現在，我將把電話轉給我們的財務長齊宇，進一步討論我們的營運和財務表現。謝謝大家。

Good morning and good evening, everyone. Before we start the detailed discussion of our fourth quarter performance, please note that unless otherwise stated, all the financials we present today are for the fourth quarter and the full year of 2024 and are RMB terms. Furthermore, unless otherwise successive, old growth rates, I'm reviewing on a year-over-year basis.

大家早安，晚上好。在我們開始詳細討論第四季度業績之前，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 年第四季度和全年的財務數據，且均以人民幣計算。此外，除非另有連續的舊成長率，否則我將按同比基礎進行審查。

Let's turn to slide 16, we exceeded our expectations for the full year 2024 cap by a strong fourth quarter as we remaining focused on high quality revenue business. In the fourth quarter, our total net revenue increased by 18.3% to RMB2.25 billion. Our adjusted cash growth profit increased by 24.6% to RMB923.9 million. Well, our adjusted EBITDA also grew year over year by 63.8% to RMB721.3 million.

讓我們翻到第 16 張投影片，由於我們仍然專注於高品質的營收業務，我們在第四季表現強勁，超出了我們對 2024 年全年上限的預期。第四季度，我們的總淨營收成長18.3%至人民幣22.5億元。我們的調整後現金成長利潤成長24.6%至人民幣9.239億元。我們的調整後 EBITDA 也較去年同期成長 63.8%，達到 7.213 億元。

For the full year, our total net revenue was RMB8.3 billion, representing an increase of 11.4% compared to the same period last year. And adjusted EBITDA reached RMB2.4 billion, reflecting an impressive 19.1% increase from the prior year, both exceeding our guidance. Furthermore, our bottom line profitable with net income reaching RMB238.4 million, achieving a significant improvement from net loss of RMB2.6 billion for the full-year 2023.

全年我們總淨營業收入為人民幣83億元，較去年同期成長11.4%。調整後EBITDA達到人民幣24億元，較上年增長19.1%，均超出我們的預期。此外，我們的獲利獲利，淨收入達到人民幣2.384億元，較2023年全年淨虧損人民幣26億元實現顯著改善。

Let's look more closely at our top line. As we have mentioned previously, we have subdivided total net revenue from IDC business into wholesale and retail IDC business based on the nature and the scale of our data center projects. This revenue from non-IDC business remains separate.

讓我們更仔細地看看我們的營收情況。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 業務的收入仍然單獨存在。

As you can see on slide 17, in the fourth quarter, our wholesale revenues remained our key revenue growth driver with strong momentum, significantly increasing by 125.4% year over year to RMB665.2 million, mainly driven by the [EJS contents 02]

正如您在第 17 張幻燈片中看到的那樣，在第四季度，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 125.4%，達到人民幣 6.652 億元，主要原因是[EJS 內容 02]

Our retail revenues continue to account for the largest part of our net revenue. Our retail revenues remain relatively stable at [RMB964.8 million]. Our non-ITC business continued to progress smoothly.

我們的零售收入仍然占我們淨收入的最大部分。我們的零售收入保持相對穩定【人民幣9.648億元】非投資、貿易及零售業務持續順利進行。

During the fourth quarter, we maintained solid margins thanks to our continuous efforts to enhance overall efficiency. As we have shown on slide 18, our adjusted cash growth margin remained quite stable. Our adjusted EBITDA margin rose significantly to 32.1% compared with 23.2% in the same period of 2023.

第四季度，由於我們不斷努力提高整體效率，我們維持了穩健的利潤率。正如我們在第 18 張投影片上所展示的，我們的調整後現金成長利潤率保持相當穩定。我們的調整後 EBITDA 利潤率從 2023 年同期的 23.2% 大幅上升至 32.1%。

Moving on liquidity on slide 19, we maintained a strong cash flow during the quarter. Also, we recorded a net operating cash flow of RMB2.01 billion for the full year of 2024. Our cash position remained healthy, with the company's total cash equivalent and restricted cash reaching RMB2.08 billion as of December 31, 2024, stable compared to the end of the third quarter.

在第 19 張投影片上，我們繼續討論流動性問題，我們在本季保持了強勁的現金流。此外，我們2024年全年實現淨經營現金流20.1億元人民幣。我們的現金狀況保持健康，截至2024年12月31日，公司總現金等價物及受限現金達到人民幣20.8億元，與第三季末相比保持穩定。

Next, let's take a look at the data on slide 20. We maintain our prudent approach to debt management with our net debt to the [trailing] 12 months adjust EBITDA ratio at 4.9, and the total debt to trailing 12 months adjusted EBITDA ratio at 5.5. Both remaining at health level and our trailing 12 months adjust to interest cover rate improved to 6.5% as of December 31, 2024.

接下來我們來看看第20張投影片上的數據。我們維持審慎的債務管理方式，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 5.5。兩者均維持在健康水平，截至 2024 年 12 月 31 日，過去 12 個月的利息覆蓋率調整已提高至 6.5%。

We prioritize long-term debt maturity planning in our debt and strategic management to ensure the security of debt repayments. Additionally, the company's short and the medium-term debt maturing in 2025 to 2027 comprised 56.9% of our total debt.

我們在債務和策略管理中優先考慮長期債務到期規劃，以確保債務償還的安全。此外，該公司 2025 年至 2027 年到期的短期和中期債務占我們總債務的 56.9%。

Turning now to CapEx spending. As you can see on slide 21 for the full year 2024, or CapEx was RMB4.98 billion with a majority allocated to the expansion of our wholesale business, mainly due to linear supply and chain expenditure management, some caps were deferred to 2025.

現在談談資本支出。正如您在第 21 張投影片上看到的，2024 年全年資本支出為 49.8 億元人民幣，其中大部分用於擴大批發業務，這主要歸功於線性供應和鏈支出管理，一些上限被推遲到 2025 年。

We expand our CapEx for full year 2025 to be in the range between RMB10 billion and RMB12 billion, exceeding the level of 2024. The increase is mainly to support our 400 megawatts to 450 megawatts delivery plan for 2025, which is expected to 3 times greater than that of 2024, surpassing the total delivery capacity of the past three year combined.

我們將2025年全年資本支出擴大至人民幣100億元至人民幣120億元之間，超過2024年的水準。此次增資主要是為了支持我們2025年400兆瓦至450兆瓦的交付計劃，預計交付量將是2024年的3倍，超過過去三年交付量的總和。

Before I conclude, let me share a few of our achievements in ESG. We review our commitments and responsibilities to our industry, environment, and the society as cornerstones of our ongoing success, and I am proud of reports that our ESG efforts continue to win recognition from global renewed ESG rating institutions this year. Recently, we secured a spot in the S&P Global sustainability yearbook 2025 with our record score of 70 in S&P's 2024 corporate sustainability assessment.

最後，讓我分享一下我們在 ESG 方面取得的一些成就。我們將對產業、環境和社會的承諾和責任視為我們持續成功的基石，我很自豪地看到，我們的 ESG 努力今年繼續贏得全球新 ESG 評級機構的認可。最近，我們在標準普爾 2024 年企業永續評估中創紀錄的 70 分，在標準普爾 2025 年全球永續發展年鑑中佔有一席之地。

This is VNET's fourth inclusion in the global edition following two consecutive years in the China edition. Normally, VNET is one of just 21 China mainland enterprise recognized in the 2025 yearbook and so on from Chinese IT service industry, our score also lands us in the top 7% of IT service industry globally.

這是VNET繼連續兩年入選中國版之後第四次入選全球版。維信電子是中國IT服務業2025年鑑等中僅有的21家入選的中國大陸企業之一，得分也位列全球IT服務業前7%。

In addition to this recognition by S&P Global, we received an A rating from MSCI for the third consecutive year, reaffirming our leadership of China's internet service and infrastructure industry. We attend a B grade in CDP's climate change questionnaire in 2024 with 8 out of 16 categories achieving a agreed recognition. This accomplishments not only highlight our effective EIC strategy, but also reflect our long-term investment value and development prospects.

除了獲得標普全球的認可外，我們還連續第三年獲得MSCI明晟的A級評級，再次確立了我們在中國互聯網服務和基礎設施行業的領導地位。我們在 2024 年 CDP 氣候變遷問卷中獲得了 B 級評分，16 個類別中有 8 個獲得了一致認可。這項成就不僅彰顯了我們有效的EIC策略，也反映了我們的長期投資價值與發展前景。

In summary, we are delighted to the end of 2024 with stronger than anticipated results driven by impressive growth in our wholesale business. Looking ahead, we will continue to execute our high quality development strategy and invest in future growth, particularly AI related opportunities to propose our long term sustainable development.

總而言之，我們很高興看到 2024 年底的業績強於預期，這得益於我們批發業務的強勁成長。展望未來，我們將繼續執行高品質發展策略，投資未來成長，特別是人工智慧相關機會，以促進我們的長期永續發展。

This concludes our prepared remarks for today. We are now ready to take questions.

我們今天的準備演講到此結束。我們現在準備好回答問題。

(Operator Instructions)

（操作員指示）

Shuyun Che, CICC.

車淑雲，中金公司。

Thank you for taking my question and congratulations on the strong results and others. My first question is the wholesale business order in last quarter and recently have been really strong to deliver these orders, the CapEx outlook for 2025 has been increased. So could management provide details on the arrangement of CapEx for 2025 and how much of this spending will be covered through the funds from our projects?

感謝您回答我的問題，並祝賀您取得的優異成績和其他成績。我的第一個問題是上個季度的批發業務訂單，最近這些訂單的交付非常強勁，2025 年的資本支出前景已經增加。那麼管理層能否提供有關 2025 年資本支出安排的詳細信息，以及其中有多少支出將透過我們的專案資金來支付？

Also, according to the announcement, the retail data center run a new order from customers in intelligent driving industry. So my second question is, given the strong demand from the AI computing, could management provide insights into the potential impact of AI related orders on the retail segment? Could you share with us the utilization trends and the pricing trends in the retail?

另外，公告顯示，零售資料中心也接到了智慧駕駛產業客戶的新訂單。所以我的第二個問題是，鑑於人工智慧運算的強勁需求，管理階層能否提供人工智慧相關訂單對零售領域的潛在影響的見解？您能否與我們分享零售業的利用趨勢和定價趨勢？

(spoken in foreign language)

（用外語說）

Thank you for the question. I want to take up the question to begin the answer. In 2025, we are setting a high threshold, a high standard for the CapEx compared to that of 2024, we gave it a 100% increase and over 90% of the 2025 caps will go directly into the wholesale IDC business. In 2025, 400 megawatts will be delivered in our wholesale IDC business.

謝謝你的提問。我想提出這個問題來開始回答。2025 年，我們設定了一個高門檻，與 2024 年相比，資本支出標準很高，我們將其提高了 100%，並且 2025 年資本支出的 90% 以上將直接用於批發 IDC 業務。2025年，我們的批發IDC業務將交付400兆瓦。

(spoken in foreign language)

（用外語說）

Among them, 83% have been on the determined orders as well as the capacity to deliver. And for the remnant capacities, we are about to sum them up recently, and the remnant caps will go directly into the retail IDCs for the purpose of the high-powered density CapEx in [retrofit] as well as the value-added business.

其中83%的客戶已經確定訂單並具備交貨能力。對於剩餘容量，我們近期將進行匯總，剩餘容量將直接進入零售IDC，用於[改造]高功率密度資本支出以及增值業務。

(spoken in foreign language)

（用外語說）

And I also want to add a few more comments about the questions on the rates. I have to say that 2025 marks the starting point for China to the security assets of the data as well as it is also recognized as the starting year for different types of being implemented.

我還想針對利率問題補充一些評論。應該說，2025年是中國資料資產安全戰略的起點，也是各類安全戰略實施的開局之年。

In last Q3, of 2024 we experienced the first (inaudible) and last week I'm so happy to see two of my partners have launched their [EBA] the asset backed securities, in the name of the author known as the rates, and their rates have also been affected by the exchange.

在 2024 年第三季度，我們經歷了第一次（聽不清楚），上週我很高興看到我的兩個合作夥伴推出了他們的 [EBA] 資產支持證券，以作者的名義稱為利率，他們的利率也受到了交易所的影響。

(spoken in foreign language)

（用外語說）

And please be noted, overpriced risk projects have also been accepted by the Shanghai Stock Exchange. Our rates are in the key stage of being examined and proved. It is estimated that in 2025, two to three of our [reits] of a different nature and background will be implemented. As a result, we're able to recover up to RMB2 billion.

值得注意的是，定價過高的風險項目也已被上海證券交易所接受。我們的費率正處於審核和論證的關鍵階段。預計到2025年，我們將有兩到三個性質和背景不同的REITs落地實施。結果，我們收回了高達20億元。

(spoken in foreign language)

（用外語說）

And now let me check with you about the second question about development of the large model and AI application. We are very happy to see that in the beginning of 2025, the operation of Deepseek has driven up the demand on the AI application. And the application of Deepsake play down the threshold of adopting the language models, giving us a strong push in the model referencing. And we are also seeing that the threshold of deploying Deepsake in the private sector has been played down. As a result, the development and adoption of the smart applications has been expanded.

現在我想問第二個問題，關於大模型和人工智慧應用的發展。我們非常高興的看到，在2025年伊始，Deepseek的營運帶動了AI應用的需求。而Deepsake的應用降低了採用語言模型的門檻，為我們在模型引用方面提供了強大的推動力。我們也看到，私部門部署 Deepsake 的門檻已經降低。因此，智慧應用程式的開發和採用得到了擴大。

(spoken in foreign language)

（用外語說）

You just mentioned autonomous driving. This is one of the key vertical scenarios I have explained to you. We have to say that driving is extremely and dramatically important. In the Q4 of 2025, our company had already made very good breakthroughs in this regard. And in 2025, we will continue the autonomous driving as a key sector for us to expand our customers as well as to offer services.

您剛才提到了自動駕駛。這是我向您解釋的關鍵垂直場景之一。不得不說，駕駛是極為重要且極為重要的。2025年第四季我們公司在這方面已經取得了非常好的突破。2025年，我們將繼續把自動駕駛作為擴大客戶和提供服務的重點領域。

(spoken in foreign language)

（用外語說）

To be more specific, I want to share with you my understanding on the utilization. We have already experienced the boost from the demand from this market, and we are staying very positive about that in terms of the pricing mechanism and pricing trend of the single cabinet, those AI server deployment friendly or specific single cabinet. The price will be higher than that of the traditional.

更具體地說，我想與大家分享我對利用的理解。我們已經感受到了來自這個市場的需求帶來的提升，我們對於單機櫃的定價機制和定價趨勢、那些AI伺服器部署友好型或特定的單機櫃持非常樂觀的態度。價格會比傳統的高。

Next question.

下一個問題。

Sarah Wang, UBS.

瑞銀的 Sarah Wang。

Thank you for the opportunity to ask questions, and congratulations on the solid set of results. I have two questions. First one is that I noticed that, among our new auto wings, there are 64 megawatt (inaudible) project with [Changzhou] Group, would please look, walk us through the framework, partnership with, the Changzhou partner and then how that are reflected in our revenue or guidance.

感謝您給予我提問的機會，並祝賀您所取得的堅實成果。我有兩個問題。首先，我注意到，在我們的新汽車部門中，有與常州集團合作的 64 兆瓦（聽不清楚）項目，請您介紹一下框架、與常州合作夥伴的合作關係，以及這些如何反映在我們的收入或指導中。

And then, my second question is regarding the supply and demand dynamics. I think, from the management comments that the management is really confident in the supply demand dynamics over the next one or two years, and even mentioned supply shortage. How should we think about this? Because, the supply chain in China is still quite efficient, and then, are there any new entrants into the market or are competitors delivering new products into the market? How shall we think about the supply, given the demand is already quite strong.

然後，我的第二個問題是關於供需動態。我認為，從管理層的評論來看，管理層對未來一兩年的供需動態確實很有信心，甚至提到了供應短缺。我們該如何思考這個問題？因為，中國的供應鏈還是相當有效率的，那麼，有沒有新進者進入市場，或是競爭對手有新的產品進入市場？鑑於需求已經相當強勁，我們該如何考慮供應？

Thank you for the question. I want to share with you a little bit of a background of this question. And first of all, I have to say that the demand is really going high in this year. And two years ago our company created the JV together with the Changzhou SOE. And from that JV we are holding 13% of the equity, which is equivalent to the 64-megawatt order you are mentioning.

謝謝你的提問。我想和大家分享這個問題的一些背景。首先，我必須說今年的需求確實很高。兩年前，我們公司與常州國營企業成立了合資企業。我們持有該合資企業 13% 的股權，相當於您提到的 64 兆瓦的訂單。

(spoken in foreign language)

（用外語說）

And please be noted, the order on the 64 megawatts together with the JV will never be incorporated into the CapEx I just introduced and is no longer and it was not in over back Street as well.

請注意，64 兆瓦的訂單和合資企業的訂單永遠不會被納入我剛才介紹的資本支出中，而且不再被納入，而且它也不存在於後街。

(spoken in foreign language)

（用外語說）

And we have to say we are going to win profit from this project of 64 megawatts in the name of the management fee or in the format of the capital operation fee. This is a great milestone for us to run and operate a project to serve our customers. But we are not going to have that to put that in our balance sheets. In other words, we are going to drive up our capacity to use up the light assets satisfying the strong demand from the core customers.

而且我們必須說，我們將以管理費的名義，或以資本營運費的形式從這個64兆瓦的專案中獲取利潤。對於我們運作和經營一個服務客戶的專案來說，這是一個重要的里程碑。但我們不會將其放入我們的資產負債表中。換句話說，我們將提高產能，用盡輕量資產來滿足核心客戶的強勁需求。

(spoken in foreign language)

（用外語說）

Your next question is about the train as well as the market competition, and let me check with you about several observations. According to the latest survey from the third party, according to the supply and demand situations. It is estimated that in 2025, the Great Beijing Beijing area, the wholesale IDC business will experience the supply shortage. Well, in 2026, this will also happen in the Yangtze River Delta.

您的下一個問題是關於火車以及市場競爭的，讓我向您核實一下幾點觀察。根據第三方最新調查顯示，根據供需情況。預計2025年，大北京地區IDC批發業務將出現供給短缺。那麼，2026年，長江三角洲地區也會發生這種情況。

(spoken in foreign language)

（用外語說）

This conclusion from the third-party data industry association is in line with my gut feeling about this market. And your next part of this question is about the general competition of this market. To be honest, most of my peers or peers have prioritized the overseas market instead, which means for the bidding process, we are engaging for the recent times withpeencing different peers at different sessions without the consolidated or major peers or competitors.

第三方數據產業協會的這個結論與我對這個市場的直覺一致。這個問題的下一部分是關於這個市場的整體競爭情況。說實話，我的大多數同行或同行都優先考慮海外市場，這意味著在競標過程中，我們最近在不同的場合與不同的同行接觸，而沒有合併或主要的同行或競爭對手。

Next question please.

請回答下一個問題。

Yang Liu, Morgan Stanley.

摩根士丹利的劉洋。

Thanks for the opportunity. Congratulations on the strong booking first. I have two questions. The first one is regarding the future trend of the industry, rental. As you mentioned, that it is likely to see supply shortage and also the hyperscalar demand of quite strong. What's your expectation of the per kilowatt rental in the next one or two years? Is it likely to see some price hike?

謝謝你的機會。首先恭喜您成功預約。我有兩個問題。第一個是關於租賃這個行業未來的趨勢。正如您所說，可能會出現供應短缺的情況，而且超標量需求也會相當強勁。您對未來一兩年每千瓦租金的預期是多少？價格有可能漲嗎？

And my second question is regarding the unit cost or unit CapEx. Because of the data center upstream, like the diesel generator or other UPS, etc. Those equipment, the key components and whether there will be enough supply from upstream and whether there will be any pricing hike to to keep pressure on the unit CapEx.

我的第二個問題是關於單位成本或單位資本支出。因為資料中心的上游，像柴油發電機或其他UPS等等，這些設備，關鍵的零件，上游是否有足夠的供應，是否會有價格上漲，以保持單位資本支出的壓力。

(spoken in foreign language)

（用外語說）

Thank you for the excellent questions, and I will share with you some of my understanding about this market. We are seeing that ever since the launch of the large language models into this market, we are seeing the wholesale IDC centers demands have been gradually released into this market from the end of last year in 2020.

非常感謝大家提出的這些非常好的問題，我來跟大家分享我對這個市場的一些理解。我們看到，自從大型語言模型進入這個市場以來，批發IDC中心的需求從去年年底到2020年逐漸釋放到這個市場。

All the way down to the first quarter of 2025, we are also seeing that the supply is a little bit in the shortage side when we are talking and discussing with the leading online and internet companies in China, we have to say that the resources they are going to choose and the companies they are going to work with are a little bit limited.

到2025年第一季度，我們也看到供應有點短缺，當我們與中國領先的線上和網路公司交談和討論時，我們不得不說，他們要選擇的資源和要合作的公司有點有限。

(spoken in foreign language)

（用外語說）

As my colleague has already briefed on the general market situations in China, I want to add a few more comments. In China, the leading online and internet companies are choosing and working with different wholesale IDC suppliers. In different cities and regions, we are experiencing competitions. Well, even though the peers are different in different regions, in terms of the price as well as the pricing mechanism, we are offering the IDC business to meet a demand, which means that our price mechanism is driven by the market and our pricing is quite stable.

由於我的同事已經介紹了中國市場的整體情況，我想補充幾點。在中國，領先的線上和網路公司正在選擇並與不同的IDC批發供應商合作。在不同的城市、不同的地區，我們都在經歷競爭。嗯，雖然不同地區的同業不一樣，但是從價格，以及定價機制上來說，我們提供IDC業務是為了滿足需求，也就是說我們的價格機制是由市場驅動的，我們的定價是比較穩定的。

(spoken in foreign language)

（用外語說）

And I want to add a few more comments about this on the cost front. When we are discussing about the diesel generator units and equipment, we are seeing that as the construction and installment are picking up, the traditional brands, especially those imported ones and JV brands, are not adequate.

我想就成本方面補充幾點評論。當我們討論柴油發電機組及設備時，我們發現隨著建造和安裝的不斷升溫，傳統品牌，特別是進口品牌和合資品牌已經不夠用了。

(spoken in foreign language)

（用外語說）

And we have to check the other side of the coin. The good news is the most -- majority -- and the most part of the coins are increasingly comfortable in using the Made-in-China equipment instead, and we're also seeing that through different optimization, the price is even slightly lower.

我們還必須檢查硬幣的另一面。好消息是，大多數——大多數——的比特幣用戶越來越習慣使用中國製造的設備，而且我們也看到，透過不同的優化，比特幣的價格甚至會略低一些。

(spoken in foreign language)

（用外語說）

Since we are having very large IDC gear on the market, the single cabinet will cover [15 to 16] megawatts for building, or bring us huge rooms to even refine the design. So generally speaking, the unit is a little bit of a slightly lower.

由於我們在市場上擁有非常大的 IDC 設備，單一機櫃將覆蓋 [15 至 16] 兆瓦的建築功率，或為我們提供巨大的房間以改進設計。所以一般來說單位是稍微低一點的。

(spoken in foreign language)

（用外語說）

When we are seeing the general picture of the supply and demand relationship on this market, the cost is slightly lower. The revenue will pick up. As a result, the return will pick up as well.

當我們看到這個市場的供需關係整體狀況時，成本是稍微低一些的。收入將會回升。因此，回報率也會上升。

Next question please.

請回答下一個問題。

Edison Lee, Jefferies.

傑富瑞 (Jefferies) 的 Edison Lee。

Hi, thank you for taking my questions and congratulations again on great results and very good orders. I have two questions. I think the number one question is still more related to supply and demand, but more on the retail side. So I believe that I totally agree with your assessment that I think SMEs can actually benefit from Deepsake by, deploying their deploying the model in private cloud or even on-premise.

您好，感謝您回答我的問題，再次恭喜您取得優異的成績和非常好的訂單。我有兩個問題。我認為首要問題仍然與供需有關，但更多是與零售方面有關。因此，我相信我完全同意您的評估，我認為中小企業實際上可以透過在私有雲甚至內部部署模型從 Deepsake 中受益。

So based on what you saw in the first quarter of this year, do you think that your retail revenue this year can actually get back to, let's say, mid-single digit growth, is that possible? And then 2026, do you think it will further accelerate? So that's question number one.

那麼根據您今年第一季看到的情況，您認為今年的零售收入實際上可以恢復到中位數個位數成長嗎？這可能嗎？那麼到 2026 年，您認為它會進一步加速嗎？這是第一個問題。

Question number two is about financing. Can you help us understand how you would actually fund the RMB10 billion CapEx back in 2025, because your operating cash flow is somewhere around RMB2 billion, and you can raise RMB2 billion from it and you still have RMB6 billion to finance.

第二個問題是關於融資。您能否幫助我們了解一下，到 2025 年，您將如何實際為 100 億元人民幣的資本支出提供資金，因為您的經營現金流大約為 20 億元人民幣，您可以從中籌集 20 億元人民幣，但仍有 60 億元人民幣需要融資。

(spoken in foreign language)

（用外語說）

Thank you for the question. I'm very much willing to share with you my personal views on the entry of the and what its impact on the retail sector. First of all, through the extreme innovation of the language model, we are seeing the threshold for the medium and small enterprises as well as individuals has been cut dramatically.

謝謝你的提問。我非常願意跟大家分享我個人對WTO的進入以及對零售業的影響的看法。首先，透過語言模型的極大創新，我們看到中小企業和個人的門檻大大降低。

And I want to share with you my personal observation and personal judgment according to the practices we have already experienced. For the recent days, we are seeing a large number of small and medium sized enterprises as well as individual developers show the strong demand in adopting and using the retail IDCs.

我也想根據我們已經經歷過的實踐，跟大家分享我個人的觀察和判斷。近段時間以來，我們看到大量中小企業以及個人開發者對於採用和使用零售IDC表現出了強烈的需求。

(spoken in foreign language)

（用外語說）

I want to share with you a couple of business models, the small and medium-sized enterprises as well as those individual developers are using. First of all, they will deploy their servers in the range of two servers all the way all the way up to 16, and they will entrust their servers into the retail IDC we are running coupled with the Deepsake, whether it is Deepsake or --

我想和大家分享一些中小企業以及個人開發者正在使用的商業模式。首先，他們會把伺服器部署在兩台伺服器到 16 台伺服器的範圍內，然後他們會把伺服器委託給我們正在運作的零售 IDC，再加上 Deepsake，無論是 Deepsake 還是--

(spoken in foreign language)

（用外語說）

And let me check with you and share with you the business model too. Some of the clients will come to us requiring the IDC, the retail IDC rental services, together with the procurement of the extra GPU. With that being done, we are creating the new business model of the HIT, the hybrid IT services.

讓我與您核實一下，並與您分享商業模式。有些客戶會來找我們要求IDC，零售IDC租賃服務，以及購買額外的GPU。透過這些，我們正在創建 HIT 的新業務模式，即混合 IT 服務。

(spoken in foreign language)

（用外語說）

And we are experiencing a new round of demand from our clients. They are using our IDC as well as HIT, as I explained to you. We are also requiring for us to deploy or to dispatch software engineers to work with them in developing value added applications for them.

我們正在經歷來自客戶的新一輪需求。正如我向您解釋的那樣，他們正在使用我們的 IDC 和 HIT。我們還需要部署或派遣軟體工程師與他們合作開發增值應用程式。

(spoken in foreign language)

（用外語說）

I know that you must be expert in reading my company, and we know that VNET is running and implementing the corporate structure of the dual engine operation with retail and wholesale IDCs. When we are running the retail IDC business, we are reaching out to thousands of clients. And when in this round of a large language model application we reach the price first time to offer them either the retail services or the referencing models.

我知道您一定很了解我的公司，我們知道VNET正在運作和實施零售和批發IDC雙引擎營運的公司架構。當我們經營零售IDC業務時，我們正在接觸成千上萬的客戶。當這一輪大型語言模型應用時，我們第一次達到價格，並向他們提供零售服務或參考模型。

Thank you for staying with me.

謝謝你一直陪著我。

(spoken in foreign language)

（用外語說）

You are mentioning that we are having a very large in 2025, agreed. It is due to the strong demand from the wholesale IDC new wins, the new orders, and we're having two channels as well. The very much we're running cash flow as well as the project I have just briefed.

您提到我們在 2025 年將有一個非常大的規模，同意。這是由於批發IDC新贏家、新訂單的強勁需求，而且我們也有兩個管道。我們正在進行現金流以及我剛才介紹的項目。

(spoken in foreign language)

（用外語說）

And due to the corporate structure of the board, we are very much -- we are in the advantageous stage in having the low financing. For instance, if we are going to carry out releasing the project back low financing, we're going to have 80% of the [LOB] with the interest rate of no more than 3.5% with the total maturity duration of 15 years.

而且由於董事會的公司結構，我們非常——我們處於低融資的優勢階段。例如，如果我們要進行專案低利率融資，我們將擁有 80％ 的 [LOB]，利率不超過 3.5%，總期限為 15 年。

(spoken in foreign language)

（用外語說）

And I also want to share with you the results of our corporate estimations. Based on our loan ratio as for now, and we have already paid back the majority of the transferable loans by the end of last year. And according to the current CapEx we are releasing, the for the capita; will be [6.5] folds as we are estimating and calculating.

我還想與大家分享我們公司的估算結果。按照我們目前的貸款比例，到去年年底我們已經償還了大部分可轉讓貸款。根據我們發布的當前資本支出，資本支出為；正如我們估計和計算的那樣，將是 [6.5] 倍。

Next question please.

請回答下一個問題。

Timothy Zhao, Goldman Sachs.

高盛的趙蒂姆（Timothy Zhao）

Great. Thank you, Magma for taking my question and congrats on the very solid results. I have two questions here. One is, I think about your downstream customers. I think given the rising data center demand from AI, just wondering if maybe can share your observations on the customers in terms of their, I think preferences between the in-house data centers and third party data center operators, and how is that different now versus a couple of years ago?

偉大的。謝謝 Magma 回答我的問題，並祝賀您取得了非常可靠的成果。我有兩個問題。一是，我會考慮你的下游客戶。我認為，鑑於人工智慧對資料中心的需求不斷增長，我只是想知道您是否可以分享您對客戶的觀察，我認為客戶對內部資料中心和第三方資料中心營運商的偏好，以及現在與幾年前有何不同？

And secondly is on the wholesale data centers, as we are seeing faster influences demand growth. Could you please comment on how your wholesale campuses cater to the influences versus training demand and what is the customer requirement in terms of the power call in terms of latency, etc?

其次是批發資料中心，我們看到影響需求成長更快。您能否評論一下您的批發園區如何滿足影響力與培訓需求，以及客戶對延遲等方面的電力需求是什麼？

(spoken in foreign language)

（用外語說）

Thank you for this question. It is very important, but also a very sensitive question, I have to say that. You are raising up the questions on the orders as well as which pathway they are selecting, be it from the path of the rental, or they are going to have their in-house choices. And In the deck, we have already delivered and shared with all the analysts. You could check some of the details as well. And in this year, we are seeing the boosted demand from the online and industries when they are deploying the large le models, we are also collecting a lot of feedback.

感謝您的提問。我必須得說，這是一個非常重要，但也非常敏感的問題。您提出了有關訂單的問題以及他們選擇的途徑，無論是從租賃途徑，還是他們將有內部選擇。在簡報中，我們已經將其交付給所有分析師並進行了分享。您也可以檢查一些細節。今年，我們看到線上和產業在部署大型模型時的需求不斷增加，我們也收集了許多回饋。

(spoken in foreign language)

（用外語說）

As of now, the online and internet business is still one of the most important industries we are working with, and they are also offering the most important source of training customers. And as AI demand is driving up in the beginning of this year, we are seeing that the companies in the cloud computing, intelligent driving, as well as financing is also very much important. And please be noted, those companies in the large land models is also mattering.

截至目前，線上和網路業務仍然是我們合作的最重要的行業之一，也是提供培訓客戶最重要的來源。隨著今年年初人工智慧需求的不斷增長，我們看到雲端運算、智慧駕駛以及融資領域的公司也非常重要。值得注意的是，大型土地模型中的那些公司也很重要。

(spoken in foreign language)

（用外語說）

And you're also trying to find out whether those clients will go directly with the in-house choices or they will collaborate and rental from the third-party. According to the feedback I collected from this as well as my personal observations, scenarios coexisting.

您也想了解這些客戶是否會直接選擇內部產品還是會與第三方合作租賃。根據我從中收集到的回饋以及我的個人觀察，情況並存。

(spoken in foreign language)

（用外語說）

Generally speaking, a few number of clients will go with choices. And the majority of the clients will go with the rental selection, which means that largest proportion of the clients will go with a rental choice with the complementary part of the clients will go and build by themselves.

一般來說，會有少數客戶選擇。而大部分客戶會選擇租賃，也就是說，大部分客戶會選擇租賃，而另一部分客戶則會選擇自己建造。

(spoken in foreign language)

（用外語說）

I want to share with a little bit of the rationale behind the market and the client has booming demand in this regard. I don't think it is rationale to build their own equipment by themselves. They're not going to use up that much resources, so the general pathway is rental plus, and these orders should never be reversed. That is what we have observed from this market.

我想分享一下市場和客戶在這方面需求旺盛背後的原因。我認為自己建造設備是不合理的。他們不會耗費那麼多資源，所以整體途徑是租金加成，這些命令永遠不應該被撤銷。這就是我們從這個市場觀察到的。

(spoken in foreign language)

（用外語說）

And I also want to share with you the second part of the question. I want to start with you by analyzing a little bit of the wholesale IDC services we are offering. We are seeing the need is booming. And in the beginning of 2025, the determined on contracted orders are on the way and the deliveries are also on the way. But as for now, we are collecting two pieces for new ideas from the customers. The first piece of idea is they are requiring the expand the capacity from us. And with that being said, they want us to have an even better efficiency or high efficiency.

我還想和大家分享問題的第二部分。首先我想跟大家分析一下我們提供的批發IDC服務。我們看到需求正在蓬勃發展。2025年初，已確定的合約訂單正在路上，交貨也在路上。但就目前而言，我們正在向客戶收集兩件作品以獲得新的想法。第一個想法是他們要求我們擴大產能。話雖如此，他們希望我們能夠有更好的效率，或者說更高的效率。

(spoken in foreign language)

（用外語說）

And I also want to add a few more comments on the referencing part. The referencing models will happen within the retail IDC for most of the scenarios, because the clients will consider convenience more more than the price of the [car] In terms of the terms of the models, it is whether as a private deployment or it is for the purpose of the application of the development of intelligent applications, which means that latency is not going to be troublesome.

我還想對引用部分補充一些評論。參考模型在零售IDC大部分場景下都會出現，因為顧客更重視便利性而不是價格。從模型的角度來說，無論是私域部署還是用於智慧應用開發，都意味著延遲不會成為問題。

(spoken in foreign language)

（用外語說）

To wrap it up for our clients, they will deploy their influence models in the retail IDC instead of the wholesale IDCs. Thank you for the question. Next question please.

為了給我們的客戶更好的服務，他們將在零售 IDC 而不是批發 IDC 中部署他們的影響模型。謝謝你的提問。請回答下一個問題。

[Daili Lee] Bank of America Securities.

[Daili Lee] 美國銀行證券。

Thanks to the management for taking my questions. Congrats on the solid results and the strong, new orders. Here I have one question regarding the wholesale business. As a company have achieved a strong new order in the past two quarters, and then we also have quite solid delivery plan for this year. And by the end of this year, our capacity service probably will almost double compared to the number in '24. So how do we think about the growth outlook, maybe in 2026 and, or even 2027 regarding the revenue or new orders pipeline? Thank you.

感謝管理層回答我的問題。恭喜我們取得的堅實業績和強勁的新訂單。這裡我有一個關於批發業務的問題。該公司在過去兩個季度取得了強勁的新訂單，今年我們也制定了相當穩健的交貨計畫。到今年年底，我們的運力服務可能將比 24 年增加近一倍。那麼，我們如何看待 2026 年甚至 2027 年的營收或新訂單的成長前景？謝謝。

(spoken in foreign language)

（用外語說）

Thank you for this question, and I want to share with you my view on this. The company has established a five-year plan ahead of time, because we are estimating that the AI deployment is going to be really strong in this Chinese market, driving up the demand for the domestic IDC extensively.

感謝您的提問，我想跟大家分享我對此的看法。公司提前製定了五年計劃，因為我們估計中國市場的人工智慧部署將會非常強勁，從而大幅推動國內IDC的需求。

(spoken in foreign language)

（用外語說）

In 2025, the total number of CapEx is in the range of the totality as the last three years. And in the year of 2026 to 2027, the company will continue to boost up the CapEx to meet up the requirements of our clients and customers in the market.

2025年資本支出總額將與過去三年的總額持平。而在2026年至2027年，公司將持續增加資本支出，以滿足市場客戶和客戶的需求。

(spoken in foreign language)

（用外語說）

Our CapEx is strongly determined by the contract signed up with the clients, which means that our CapEx is offering a new round of uncertainties to the growth of the future business.

我們的資本支出很大程度上取決於與客戶簽訂的合同，這意味著我們的資本支出為未來業務的成長帶來了新一輪的不確定性。

(spoken in foreign language)

（用外語說）

And I also want to release a little bit of different models of the IDC sectors. Normally, we will go and construct to start off, It will take six to nine months as a different project and place goes. After that, we will take around. 6 to 12 months to stack up all the requirements of the customers. It will be meeting 90% of the customers demands. At the end of the day, you are going to find that the growth of the [EBITDA] will be a little bit of a slower than that of the CapEx.

我還想發布一些 IDC 領域的不同模型。通常情況下，我們會先去施工，但根據不同的項目和地點，這將需要六到九個月的時間。之後，我們將四處走走。 6到12個月的時間來滿足客戶的所有要求。它將滿足90%的客戶需求。最終，你會發現 [EBITDA] 的成長速度會比資本支出的成長速度慢一點。

Ladies and gentlemen, that concludes our conference for today. Thank you for participating. You may now disconnect your lines.

女士們、先生們，今天的會議到此結束。感謝您的參與。現在您可以斷開線路了。