VNET Group Inc (VNET) 2025 Q1 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for the First Quarter 2025 Earnings Conference Call for VNET Group, Inc. The management's prepared remarks, there will be a question-and-answer session. Participants from our management include Mr. Ju Ma, Rotating President. Mr. Qiyu Wang, Chief Financial Officer Ms. Xinyuan Liu, Head of Investor Relations of the company. Please note that today's conference call is being recorded.

女士們、先生們，大家好。感謝您參加 VNET Group, Inc. 2025 年第一季財報電話會議。管理階層準備好的發言，將會有一個問答環節。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；劉欣媛女士，公司投資人關係主管。請注意，今天的電話會議正在錄音。

I will now turn the call over to the first speaker today, Ms. Xinyuan Liu. Please go ahead.

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 first quarter 2025 earnings conference call. Our earnings release was distributed earlier today, and you can find a copy on our IR site as well as on newswire services. Please note that today's call will contain forward-looking statements made under the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995.

謝謝您，接線生。大家好，歡迎參加我們的 2025 年第一季財報電話會議。我們的收益報告已於今天早些時候發布，您可以在我們的 IR 網站以及新聞通訊服務上找到副本。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. For 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 obligations to update any forward-looking statements except as required under applicable laws. Please also note that earnings press release and this conference call include the disclosure of unaudited GAAP and non-GAAP financial matters.

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詳細討論，請參閱我們向美國證券交易委員會提交的最新年度報告和其他文件。除適用法律要求外，VNET 不承擔更新任何前瞻性聲明的義務。另請注意，收益新聞稿和本次電話會議包括未經審計的 GAAP 和非 GAAP 財務事項的披露。

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

VNET 的收益新聞稿包含未經審計的非 GAAP 指標與未經審計的 GAAP 指標的對帳。我們將在本次電話會議中參考的摘要簡報可從我們的 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 NewLink.ai to deliver this quarter's prepared remarks by Mr. Ju Ma, our Rotating President and Mr. Qiyu Wang, our CFO.

接下來，我想提醒大家，我們將利用由 NewLink.ai 提供支援的文本轉語音技術來傳達我們輪值總裁馬炬先生和首席財務官王啟宇先生本季的準備好的發言。

The management team will join the Q and A session in person. Additionally, this conference is being recorded. A webcast of this conference call will also be available on our IR website at ir.vnet.com. Now let's get started with today's presentation. Mr. Ma, please go ahead.

管理團隊將親自參加問答環節。此外，本次會議正在錄製。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。現在我們開始今天的演講。馬先生，請講。

Good morning and good evening, everyone. Thank you for joining our call today. I would like to begin by sharing our primary accomplishments during the first quarter of 2025. As we embarked on the New Year journey, we achieved a strong set of results that set a positive tone for the year ahead. On the operational side, our wholesale IDC business recorded another impressive performance supported by our robust deliveries and our customers' fast moving pace.

大家早安，晚上好。感謝您今天參加我們的電話會議。首先，我想分享我們在 2025 年第一季取得的主要成就。當我們踏上新年旅程時，我們取得了一系列強勁的業績，為來年奠定了積極的基調。在營運方面，由於強勁的交付和客戶快速的發展步伐，我們的批發IDC業務再次取得了令人印象深刻的業績。

As of March 31, 2025, our wholesale capacity in service grew 18.1% quarter over quarter to 573 megawatts, an increase of 88 megawatts. Wholesale capacity utilized grew 23.9% quarter over quarter to 437 megawatts, a record high increase of 84 megawatts, while the utilization rate increased by 3.6 percentage points to 76.2%, indicating that newly delivered orders are being moved in faster than ever before. Meanwhile, our retail business continued to progress smoothly benefiting from the rapid deployment of DeepSeek. Furthermore, propelled by our dual core strategy, we consistently secured high quality orders from customers across various industries. I will elaborate on this in detail on the next slide.

截至 2025 年 3 月 31 日，我們在役批發容量較上季成長 18.1% 至 573 兆瓦，增加 88 兆瓦。批發產能利用率季增23.9%，達到437兆瓦，增幅達84兆瓦，創歷史新高；利用率上升3.6個百分點，達到76.2%，顯示新交付訂單的轉移速度比以往任何時候都快。同時，由於DeepSeek的快速部署，我們的零售業務繼續順利推進。此外，在雙核心策略的推動下，我們始終如一地獲得各行各業客戶的高品質訂單。我將在下一張投影片中詳細闡述這一點。

On the financial side, we maintained our solid growth trajectory across both total net revenues and adjusted EBITDA. Our total net revenues increased by 18.3% year-over-year to RMB2.25 billion for the first quarter. Notably, wholesale revenues reached a new record high of RMB673 million for the quarter, representing an impressive year-over-year growth rate of 86.5%. Thanks to the rapid growth of our wholesale IDC business, our adjusted EBITDA for the first quarter also increased by 26.4% year-over-year to RMB682 million with an adjusted EBITDA margin of 30.4%, up 1.9 percentage points year-over-year. Excluding the one-off impact of asset disposals last quarter, adjusted EBITDA increased by 18.1% quarter over quarter.

在財務方面，我們的總淨收入和調整後 EBITDA 均保持了穩健的成長軌跡。第一季度，我們的總淨收入年增18.3%至人民幣22.5億元。值得注意的是，本季批發收入創下6.73億元的新高，較去年同期成長86.5%。受惠於批發IDC業務的快速成長，第一季調整後EBITDA為6.82億元，較去年同期成長26.4%；調整後EBITDA利潤率為30.4%，較去年同期上升1.9個百分點。剔除上季資產處分的一次性影響，調整後EBITDA季增18.1%。

We also further strengthened our financing capabilities, diversifying our channels at a relatively low cost. In March, we issued USD430 million dollars of convertible senior notes due in 2030 at an interest rate of 2.5% per annum. We also secured our first sustainability linked loan of RMB500 million with a 3.7% interest rate per annum. Furthermore, our all in cost for one of our new loan projects reached a record low at 3.05%, 55 basis points lower than the five year LPR.

我們也進一步加強了融資能力，以相對較低的成本實現通路多元化。3月份，我們發行了4.3億美元的可轉換優先票據，該票據將於2030年到期，年利率為2.5%。我們也獲得了首筆與永續發展掛鉤的貸款，金額為 5 億元，年利率為 3.7%。其中，新發放貸款項目綜合成本率創歷史新低3.05%，比5年期LPR低55個基點。

Next, let's delve into our first quarter accomplishments in more detail. Moving on to our new order wins on slide 5, we continue to win quality wholesale and retail orders in the first quarter. In addition to the wholesale orders, we disclosed last quarter a 55 megawatt order from a leading cloud computing customer and a 64 megawatt order from an Internet customer through our JV project. We won a 6 megawatt wholesale order from an intelligent driving customer for our data centers in the Greater Beijing area. Furthermore, breakthroughs by DeepSeek are propelling growing demand among customers for our retail IDC services to deploy intelligent applications. During the quarter, we secured a combined capacity of around 4 megawatts in retail orders from customers in the Internet, finance, local services, intelligence driving and gaming sectors.

接下來，讓我們更詳細地探討第一季的成就。繼續看投影片 5 上我們獲得的新訂單，我們在第一季繼續贏得優質的批發和零售訂單。除了批發訂單外，上個季度我們還透過合資專案揭露了來自一家領先雲端運算客戶的 55 兆瓦訂單和來自一家網路客戶的 64 兆瓦訂單。我們贏得了智慧駕駛客戶的6兆瓦批發訂單，用於大北京地區的資料中心。此外，DeepSeek 的突破也推動了客戶對我們的零售 IDC 服務部署智慧應用程式的需求不斷增長。本季度，我們獲得了來自網路、金融、本地服務、智慧駕駛和遊戲產業客戶約4兆瓦的零售訂單。

These orders span multiple retail data centers in Greater Beijing area, the Yangtze River Delta, the Greater Bay Area and other regions. At the beginning of 2025, China's AI development entered an explosive new phase of growth driven by DeepSeek breakthrough technology. This created surging AI related demand for premium IDC services, boosting the IDC industry's growth As an industry leading player known for our high performance data centers and reliable premium services, we quickly seized growth opportunities winning quality new orders and driving progress notably fueled by the rising demand for private deployment triggered by DeepSeek.

這些訂單涉及大北京地區、長三角、粵港澳大灣區等地區的多個零售資料中心。2025年伊始，在DeepSeek突破性技術的推動下，中國人工智慧發展進入爆炸性成長的新階段。這導致對優質 IDC 服務的 AI 相關需求激增，從而推動了 IDC 行業的成長。作為以高效能資料中心和可靠的優質服務而聞名的行業領先企業，我們迅速抓住成長機會，贏得了優質的新訂單並推動了進步，尤其是受到 DeepSeek 引發的私有部署需求成長的推動。

Our retail IDC businesses revenues from customer private deployments of open source large language models increased by 309% in March compared to January. Looking ahead, we remain confident in the China market growth potential. We believe that the increasing maturity of open source model technology and the continuous expansion of intelligent application scenarios will continue to drive high demand for computing power and premium IDC services further fueling our sustainable high quality growth.

我們的零售IDC業務3月份來自客戶私人部署開源大語言模式的營收較上月成長了309%。展望未來，我們仍對中國市場的成長潛力充滿信心。我們相信，開源模型技術的日趨成熟和智慧應用場景的不斷拓展，將持續驅動對算力和優質IDC服務的需求，進一步助力我們實現可持續的高品質成長。

Now let's delve into our business update. Starting with our wholesale business on slide 8, our wholesale business maintained its robust growth momentum with capacity in service increasing to 573 megawatts and utilization rate rising to 76.2%. Thanks to our strong delivery capability at our NOR Campus 01 and EJS Campus 03 and faster than expected moving at our EJS Campus 02 and NHP Campus 01B. We also delivered a mature capacity utilization rate of 94.5%, a relatively high level and a ramp up capacity utilization rate of 32.1%. We have a clear growth path for our wholesale data center capacity.

現在讓我們深入了解我們的業務更新。從第 8 張投影片上的批發業務開始，我們的批發業務保持了強勁的成長勢頭，服務容量增加到 573 兆瓦，利用率上升到 76.2%。這得益於我們在 NOR Campus 01 和 EJS Campus 03 的強大交付能力，以及在 EJS Campus 02 和 NHP Campus 01B 的遷移速度比預期更快。我們的成熟產能利用率達到 94.5%，處於相對較高的水平，產能利用率達 32.1%。我們對批發資料中心容量有明確的成長路徑。

Let's move on to slide 9. Our overall wholesale data center capacity continued to grow. In the first quarter, our capacity under construction was 377 megawatts with a pre commitment rate for capacity under construction stable at 81.6% as of the end of March. Additionally, capacity held for short term future development remained relatively steady at 256 megawatts. Capacity held for long term future development further expanded to 414 megawatts as we remain confident in China's market growth potential as AI spurs greater demand for premium IDC services. We will maintain our robust expansion plan to ensure we are well prepared for further business growth.

我們繼續看第 9 張投影片。我們的整體批發資料中心容量持續成長。一季度，公司在建容量377兆瓦，截至3月底，在建容量預承諾率穩定在81.6%。此外，短期內未來開發的容量保持相對穩定，為 256 兆瓦。由於人工智慧刺激了對優質 IDC 服務的需求增加，我們對中國市場的成長潛力充滿信心，因此長期未來開發的容量進一步擴大至 414 兆瓦。我們將保持強勁的擴張計劃，以確保為進一步的業務成長做好充分準備。

Moving to our retail IDC business on slide 10, our retail business continued to progress smoothly in the first quarter. Retail capacity in service was 51,960 cabinets with the utilization rate increasing slightly to 63.7% as of the March. MRR per retail cabinet increased to RMB8,898 this quarter.

轉到第 10 張投影片上的零售 IDC 業務，我們的零售業務在第一季繼續順利進展。截至 3 月份，零售容量為 51,960 個櫃位，利用率略有上升，達到 63.7%。本季每個零售櫃的每月經常性收入 (MRR) 增至 8,898 元。

Turning to our delivery plan on slide 11, supported by our robust and efficient delivery capabilities, we successfully delivered a total of 88 megawatts in the first quarter. We currently have eight data centers under construction with six in the Greater Beijing area and two in the Yangtze River Delta. We plan to deliver 377 megawatts of capacity over the next 12 months or around 165 megawatts during the second and third quarters of 2025 and around 212 megawatts during the fourth quarter of 2025 and the first quarter of 2026. This ambitious delivery plan reflects strong demand from our customers and our outstanding delivery capabilities.

談到第 11 張投影片上的交付計劃，在我們強大而高效的交付能力的支持下，我們在第一季度成功交付了總計 88 兆瓦的電力。我們目前正在建造八個資料中心，其中六個位於大北京地區，兩個位於長江三角洲地區。我們計劃在未來 12 個月內交付 377 兆瓦的容量，或在 2025 年第二季和第三季交付約 165 兆瓦，並在 2025 年第四季和 2026 年第一季交付約 212 兆瓦。這項雄心勃勃的交付計畫反映了我們客戶的強勁需求和我們卓越的交付能力。

Now turning to our non IDC business, a key component of our overall business. [DECN] continued to expand its customer base by acquiring new customers from several state owned enterprises, as well as the financial services and home appliances sectors for their premium dedicated internet services and internet connection services. What's more, I am pleased to share that DECN recently received approval as a zero outage supplier for a fifth consecutive year from T-Systems, which is part of Deutsche Telekom in recognition of DECN reliable outstanding services.

現在談談我們的非 IDC 業務，這是我們整體業務的關鍵組成部分。 [DECN] 繼續擴大其客戶群，從多家國有企業以及金融服務和家電行業獲取新客戶，為其提供優質的專用互聯網服務和互聯網連接服務。此外，我很高興地告訴大家，DECN 最近連續第五年獲得了德國電信旗下 T-Systems 的零中斷供應商認證，以表彰其可靠的優質服務。

In conclusion, thanks to the strong execution of our effective dual core strategy, we delivered robust first quarter results propelling progress across both our wholesale and retail business. Going forward, we will continue leveraging our high performance data center network, reliable solutions and outstanding delivery capabilities to meet our customers' growing demand, driving growth and advancing the development of China's digital economy.

總而言之，由於我們有效實施了雙核心策略，我們取得了強勁的第一季業績，推動了批發和零售業務的進步。未來，我們將繼續利用高效能資料中心網路、可靠的解決方案和卓越的交付能力，滿足客戶日益增長的需求，推動成長，促進中國數位經濟的發展。

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 first quarter performance, please note that unless otherwise stated, all the financials we present today are for the first quarter of 2025 and are in renminbi terms. Furthermore, unless otherwise specified all the growth rates I am reviewing are on a year-over-year basis.

大家早安，晚上好。在我們開始詳細討論第一季的業績之前，請注意，除非另有說明，我們今天提供的所有財務數據均為 2025 年第一季的數據，並以人民幣計算。此外，除非另有說明，我所審查的所有成長率都是按同比計算的。

Let's turn to slide 13. In the first quarter, we continued to pursue high quality, high margin business. Our total net revenues increased by 18.3% to RMB2.25 billion mainly driven by rapid growth of wholesale business. Our adjusted cash gross profit rose by 26.4% to RMB967.8 million while our adjusted EBITDA also grew year-over-year by 26.4% to RMB682.4 million. Meanwhile excluding the one off impact of asset disposals last quarter, our adjusted cash gross profit and adjusted EBITDA increased by 11.5% and 18.1% respectively quarter over quarter.

讓我們翻到第 13 張投影片。第一季度，我們繼續追求高品質、高利潤的業務。我們的總淨收入成長18.3%至人民幣22.5億元，主要得益於批發業務的快速成長。我們的調整後現金毛利成長26.4%至人民幣9.678億元，而我們的調整後EBITDA也較去年同期成長26.4%至人民幣6.824億元。同時，剔除上季資產處置的一次性影響，我們的調整後現金毛利和調整後EBITDA分別較上季成長11.5%和18.1%。

Let's look more closely at our top line. As you can see on slide 14, in the first quarter wholesale revenues, our key revenue growth driver increased significantly by 86.5% to RMB673.2 million mainly attributable to sales at the EGS Campus 02 and NH-B Campus 01B. Also excluding the one off impact of asset disposals last quarter, wholesale revenues increased by 14.1% quarter over quarter. Retail revenues continued to account for the largest part of our total net revenues and increased by 4.8% to RMB968.3 million.

讓我們更仔細地看看我們的頂線。正如您在幻燈片 14 中看到的，在第一季批發收入中，我們的主要收入增長動力大幅增長了 86.5%，達到人民幣 6.732 億元，這主要歸功於 EGS 園區 02 和 NH-B 園區 01B 的銷售。另外，排除上季資產處置的一次性影響，批發收入較上季成長 14.1%。零售收入繼續占我們總淨收入的最大部分，成長4.8%至人民幣9.683億元。

Our non-IDC business remained stable. During the first quarter, we maintained solid margins, thanks to our continuous efforts to enhance overall efficiency. As shown on slide 15, our adjusted cash gross margins improved to 43.1% from 40.3% in the same period last year. Our adjusted EBITDA margin rose to 30.4% compared with 28.4% in the same period last year.

非IDC業務保持穩定。第一季度，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。如投影片 15 所示，我們的調整後現金毛利率從去年同期的 40.3% 提高到 43.1%。我們的調整後 EBITDA 利潤率從去年同期的 28.4% 上升至 30.4%。

Moving on to liquidity on slide 16, we maintain robust and healthy liquidity bolstered by net operating cash inflow of RMB195.7 million during the first quarter. Our cash positions remain solid with total cash and cash equivalents, restricted cash and short term investments reaching RMB5.79 billion as of March 31, 2025.

談到幻燈片 16 上的流動性，我們保持了強勁健康的流動性，這得益於第一季 1.957 億元人民幣的淨經營現金流入。我們的現金狀況仍穩健，截至 2025 年 3 月 31 日，現金及現金等價物、受限現金及短期投資總額已達 57.9 億元。

Next, let's take a look at our debt structure on slide 17. We maintained our prudent approach to debt management with our net debt to the trailing 12 months adjusted EBITDA ratio at 5 and total debt to the trailing 12 months adjusted EBITDA ratio at 6.5, both remaining at a healthy level. Our trailing 12 months adjusted EBITDA to interest coverage ratio improved to 7.5 as of March 31, 2025. We prioritize long term debt maturity planning in our debt and strategic management to ensure the security of debt repayment. Additionally, the company's short and medium term debt maturing in 2025 to 2027 comprises 45.6% of our total debt.

接下來，我們來看看投影片 17 上的債務結構。我們繼續保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 5，總債務與過去 12 個月調整後 EBITDA 的比率為 6.5，均維持在健康水準。截至 2025 年 3 月 31 日，我們過去 12 個月調整後的 EBITDA 利息覆蓋率提高至 7.5。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，公司 2025 年至 2027 年到期的短期和中期債務佔總債務的 45.6%。

Turning now to CapEx spending. As you can see on slide 18, for the first quarter, our CapEx was RMB1.82 billion with the majority allocated to the expansion of our wholesale IDC business. As disclosed last quarter, we expect our CapEx for full year 2025 to be in the range of RMB10 billion and RMB12 billion. The increase is mainly to support our planned delivery of 400 megawatts to 450 megawatts in 2025 or approximately three times 2024’s total deliveries and surpassing our total deliveries in the past three years combined.

現在談談資本支出。正如您在第 18 張投影片上看到的，第一季度，我們的資本支出為 18.2 億元，其中大部分用於擴大我們的批發 IDC 業務。正如上個季度所揭露的那樣，我們預計 2025 年全年資本支出將在 100 億元人民幣至 120 億元之間。此次增產主要是為了支持我們計劃在 2025 年交付 400 兆瓦至 450 兆瓦的電力，約為 2024 年總交付量的三倍，並超過我們過去三年的總交付量。

Now moving to our full year guidance for 2025 on slide 19. We are reiterating our previous guidance for the full year of 2025 with anticipated total net revenues 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%. Based on our new orders and the delivery plan, our capital expenditure for 2025 is still expected to be in the range of RMB10 billion to RMB12 billion representing year-over-year growth of 101% to 141%.

現在轉到第 19 張投影片上的 2025 年全年指引。我們重申先前對 2025 年全年的預期，預計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%。根據我們的新訂單和交付計劃，我們預計2025年的資本支出仍將在人民幣100億元至人民幣120億元之間，年增101％至141％。

Before I conclude, I'd like to briefly update you on our ESG initiatives. In April, we issued our fifth annual ESG report detailing the company's 2024 endeavors and progress in sustainability, including our verified carbon inventory results. During 2024, we upgraded our Shield Sustainability System to broaden stakeholder coverage and amplified our impact. We achieved encouraging percuss across green power engagement, efficient energy consumption and employee diversity and equality. Notably, our total energy usage from renewable sources reached about 360,880 megawatt hour during the year marking a fivefold increase year-over-year and accounting for 18% of total resources utilized by VNET.

在結束之前，我想先簡單介紹一下我們的 ESG 舉措。今年4月，我們發布了第五份年度ESG報告，詳細介紹了公司2024年在永續發展方面的努力和進展，包括我們經過驗證的碳清單結果。2024 年，我們升級了 Shield 永續發展系統，以擴大利害關係人的覆蓋範圍並擴大我們的影響力。我們在綠色能源參與、高效能能源利用以及員工多元化與平等方面取得了令人鼓舞的成果。值得注意的是，我們今年的再生能源總使用量達到約 360,880 兆瓦時，年增五倍，佔 VNET 使用的總資源的 18%。

Also our average annual power usage efficiency reached 1.27 and the percentage of female employees in our management positions increased to 33%. These efforts continued to garner recognition from top ESG rating authorities. This year we ranked first among Chinese enterprises in the IT services industry in the China edition of the S&P Global Sustainability Yearbook for the third consecutive year and won the 2025 Top 1% and Industry Mover Awards. Moving forward, we will remain committed to integrating ESG best practices across our business, facilitating the development of China's green digital economy.

年平均電力使用效率達1.27，管理職缺女性員工比例提升至33%。這些努力繼續獲得頂級 ESG 評級機構的認可。今年，我們在標普全球永續發展年鑑中國版中連續第三年位列中國IT服務業企業第一名，並榮獲2025年度「Top 1%」和「產業推動者」兩項大獎。展望未來，我們將繼續致力於將ESG最佳實踐融入我們的業務中，促進中國綠色數位經濟的發展。

In summary, we got off to a strong start for 2025 highlighted by robust business growth and enhanced growth and ability. We will remain dedicated to our sustainable high quality growth strategy and continue to invest in future development, capturing market opportunities and creating sustainable long term value for our stakeholders.

總而言之，我們在 2025 年取得了良好的開端，突顯出在業務強勁成長以及成長能力增強。我們將持續致力於永續的高品質成長策略，持續投資未來發展，掌握市場機遇，為利害關係人創造永續的長期價值。

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。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。（操作員指示）

Tom Tang, Morgan Stanley

摩根士丹利的湯姆唐

Okay. Thanks management for the opportunity to ask questions and congratulations on a very robust result for the first quarter. So I have one question on the demand side. So we know that H20 has been banned by the United States. So just wanted to have an update on the customer demand and order procurement processes after the chip has been banned. Just wondering if there's any changes and if we have any outlooks in the future? Thank you. (spoken in foreign language)

好的。感謝管理層提供的提問機會，並祝賀第一季取得非常強勁的業績。所以我有一個關於需求方面的問題。所以我們知道H20已經被美國禁止了。因此，只是想了解一下晶片被禁後客戶需求和訂單採購流程的最新情況。只是想知道是否有任何變化以及我們對未來有何展望？謝謝。（用外語說）

(spoken in foreign language) Thank you for your question. Let me take your very first question. Yes, as we are aware that the H20 chip embargo was in place starting from this year. And because of that, it has caused a short term impact on our clients demand, particularly for those hyperscalers. However, there was a quick adjustment. Now everything is back on track. So our current order on hand is sufficient to fill all the capacities to be delivered this year as well as the first half of next year.

（外語）感謝您的提問。讓我來回答你的第一個問題。是的，我們知道從今年開始H20晶片禁運就已實施。正因為如此，它對我們客戶的需求造成了短期影響，特別是對那些超大規模客戶。然而，很快就進行了調整。現在一切都回到了正軌。因此，我們目前的訂單足以滿足今年以及明年上半年交付的所有產能。

(spoken in foreign language) Like I said, the hyperscalers quickly adjusted their demand after the short lived impact because of the chip embargo. Now everything is back on track and we expect that there is going to be sustained demand from these hyperscalers. And they are also asking us to scale up the capacity to be delivered to them. We expect that there is going to be still a lot of demand for GPUs used for large language model training as well as scaled up data centers. So therefore, there's going to be continued and sustained demand from these hyperscalers.

（用外語說）就像我說的，超大規模企業在晶片禁運造成的短暫影響之後迅速調整了他們的需求。現在一切都回到了正軌，我們預計這些超大規模企業的需求將會持續下去。他們也要求我們擴大交付能力。我們預計，用於大型語言模型訓練以及擴大資料中心的 GPU 的需求仍將很大。因此，這些超大規模企業的需求將會持續存在。

Thank you. Next question please.

謝謝。請問下一個問題。

(Operator Instructions)

（操作員指示）

Edison Lee, Jefferies.

傑富瑞 (Jefferies) 的 Edison Lee。

I thank you for taking my questions. I have two quick questions. Number one is on your retail demand. I think that right now you disclosed that four megawatt of new retail contracts. I want to know if these are AI driven applications and whether you are charging based on power rather than cabinets? And number two question is that your MRR has gone up materially in first quarter of this year and maybe you can share some colors on the drivers behind that increase in MRR. (spoken in foreign language)

感謝您回答我的問題。我有兩個簡單的問題。第一是您的零售需求。我認為您現在披露了四兆瓦的新零售合約。我想知道這些是否是人工智慧驅動的應用程序，以及您是否根據功率而不是機櫃收費？第二個問題是，你們的 MRR 在今年第一季大幅上升，也許你們可以分享 MRR 成長背後的驅動因素。（用外語說）

(spoken in foreign language) Thank you for the question. As you rightly mentioned that we did win a four megawatt order for our retail IDC business in the first quarter. And as you correctly mentioned that most of the demand are from AI driven and that covers the demand for fintech, local services, Internet companies as well as intelligent driving. So these are all AI driven demand for these retail IDC services.

（以外語說）謝謝你的提問。正如您正確提到的，我們確實在第一季贏得了零售 IDC 業務的四兆瓦訂單。正如您正確提到的，大多數需求是由人工智慧驅動的，涵蓋了金融科技、本地服務、網路公司以及智慧駕駛的需求。因此，這些都是人工智慧驅動的零售 IDC 服務需求。

And very little of that demand is for cloud based gaming.

其中，基於雲端的遊戲需求非常小。

(spoken in foreign language) I would like just to make a quick add to what Mr. Ma has mentioned that on the drivers behind the MMR, most of the recent orders that we win for the retail IDC business is indeed from AI driven and that require high voltage cabinets. Therefore, the company has been continuously repurposing some of the cabinets to accommodate such needs. And for that we do charge a higher price, so the build is higher. So that explains the upgrowing MMR.

（用外語說）我想快速補充一下馬先生提到的關於 MMR 背後的驅動因素，我們最近贏得的零售 IDC 業務的大多數訂單確實是由人工智慧驅動的，並且需要高壓機櫃。因此，該公司一直在不斷重新利用一些櫥櫃來滿足此類需求。因此，我們確實收取了更高的價格，因此建造成本也更高。這也解釋了 MMR 盛行率不斷上升的原因。

Thank you. Next question please.

謝謝。請問下一個問題。

Daley Li, Bank of America Securities.

美國銀行證券公司的戴利李（Daley Li）。

Hi, thanks for taking my question. Firstly, congrats on the strong 1Q results. I have two questions here. Number one is regarding our gross profit margin in 1Q. We see a strong quarter on quarter improvement and could management give some color what's key drivers for the gross profit margin improvement and what should be our future target or normalized gross profit margin? And the same question is about our rates progress. If you look at our peer company, they also submitted the application. And how do we see our rates plan for private rates or public rates in second half this year? (spoken in foreign language)

你好，謝謝你回答我的問題。首先，恭喜第一季業績強勁。我這裡有兩個問題。第一是關於我們第一季的毛利率。我們看到了季度環比強勁的成長，管理層能否說明毛利率提高的關鍵驅動因素是什麼，以及我們未來的目標或正常化毛利率應該是多少？同樣的問題也與我們的利率進展有關。如果你看看我們的同業公司，他們也提交了申請。我們如何看待今年下半年私人利率或公共利率的利率計劃？（用外語說）

(spoken in foreign language) First on the drivers of the improved gross profit margin. Reason number one, the share or proportion of our wholesale IDC service is gradually improving. This is a business that has a higher gross profit margin. Therefore, overall, it is contributing to a higher gross profit margin on a corporate level. Reason number two, we are repurposing some of the cabinets to accommodate the demand for retail IDC services and because that brings a higher MMR and with that going in progress, we are automatically closing or gradually phasing out some of those low margin services. So these two reasons combined have pushed up the overall gross profit margin and we expected that to continue in the future.

（外語）首先談談毛利率提高的驅動因素。原因一是我們的批發IDC服務的份額或說比例在逐步提高。這是一項毛利率較高的業務。因此，總體而言，它有助於提高企業層面的毛利率。第二個原因是，我們正在重新利用一些機櫃來滿足零售 IDC 服務的需求，因為這會帶來更高的 MMR，隨著這個過程的進行，我們將自動關閉或逐步淘汰一些低利潤服務。因此，這兩個原因共同推高了整體毛利率，我們預計未來將持續下去。

(spoken in foreign language) As you rightly mentioned that this year marks a critical year for the Chinese rates sector. And the two peers in the IDC business have also seen fairly smooth progress in terms of their public rates. And as we see it, the valuation of these rates is reasonable and our public risk project is also progressing well. As the current situation stands, the current valuation of these private rates is reasonable and it is progressing as we have expected. As you have noticed that our private risk project has been formally accepted and approved by the Shanghai Stock Exchange. So hopefully we will hear some good results in the second half of the year.

（外語）正如您所說，今年對中國利率產業來說是關鍵的一年。而IDC業務的兩家同業在公開費率方面也都進展得比較順利。我們認為，這些費率的估值是合理的，我們的公共風險項目也進展順利。從目前的情況來看，這些私人利率的當前估值是合理的，並且正在按照我們的預期進展。大家也注意到了，我們的私募風險項目已經正式獲得上交所的受理和批准。因此，希望我們能在下半年聽到一些好的結果。

With our successful pre REITs project, we are actively advancing all types of asset securitization project and we will maintain our annual target recovering RMB2 billion target unchanged and we are confident in achieving that goal for this year.

在Pre REITs計畫取得成功的基礎上，我們正​​積極推動各類資產證券化項目，全年收回20億元的目標不變，並對實現今年的目標充滿信心。

Thank you. Next question.

謝謝。下一個問題。

Louis Tseng, Citi.

花旗銀行的 Louis Tseng。

Thank you much for taking my question. Congratulations on a strong yourself. I have two quick questions. So first of all, wondering if we have any plans for the Asia IPO in Hong Kong? And then if you do like wondering if we can like share more like details? That's my first question. And then my second question is about the electricity tariff because we spoke that there is some downswing for some electricity tariff. So wondering if there is any positive impact to the EBITDA margin that had or there is like no impact. (spoken in foreign language)

非常感謝您回答我的問題。恭喜你變得堅強。我有兩個簡單的問題。那麼首先，想知道我們是否有在香港進行亞洲 IPO 的計劃嗎？然後，如果您想知道我們是否可以分享更多類似的細節？這是我的第一個問題。我的第二個問題是關於電價的，因為我們談到一些電價有所下降。所以想知道這是否會對 EBITDA 利潤率產生積極影響，或者根本沒有影響。（用外語說）

(spoken in foreign language) Thank you for your question. Yes, looking at the potential Hong Kong listing, we know that the Hong Kong Stock Exchange extends its hands wide open to welcome those US listed companies to do dual listing in Hong Kong. And we have held in-depth conversation with the Hong Kong Stock Exchange and we have also had formal engagement in written form. It's progressing. However, at this moment, I cannot give you a specific timeline on that.

（外語）感謝您的提問。是的，從香港上市的可能性來看，我們知道香港交易所張開雙臂歡迎那些在美國上市的公司在香港雙重上市。我們與香港交易所進行了深入的溝通，並達成了書面形式的正式協議。正在取得進展。不過，目前我還無法給出具體的時間表。

With regard to your question on the electricity bills, we at the moment do not see a declining trend for the utility bills across our IDCs. It's fairly stable, so no change whatsoever on that front.

關於您提到的電費問題，目前我們並沒有看到我們各個IDC的水電費呈現下降趨勢。它相當穩定，所以在這方面沒有任何變化。

Thank you. Next question please.

謝謝。請問下一個問題。

Sarah Wong, UBS.

瑞銀的 Sarah Wong。

Thank you for the opportunity to ask a question and congratulations on a solid result. I only have a one question on the wholesale business. So I noticed that our delivery plan is actually rolling forward by a quarter to cover the first quarter of next year. So does that mean we also have visibility of utilization ramp up into next year? In other words, given our like solid delivery plan, how shall we think about utilization rate for the next three to four quarters? (spoken in foreign language)

感謝您給予我提問的機會，並祝賀您取得了堅實的成果。關於批發業務我只有一個問題。因此我注意到我們的交付計劃實際上正在提前一個季度以覆蓋明年第一季。那麼這是否意味著我們也能看到明年利用率的上升？換句話說，鑑於我們如此穩健的交付計劃，我們應該如何考慮未來三到四個季度的使用率？（用外語說）

(spoken in foreign language) As you really mentioned and have observed from our financials that our clients do have a lot of demand for the capacity and to accommodate their capacity need, we have actually responded actively and delivered the capacity needed and they have been moving in fairly quickly. Actually we have just hit a record high in terms of the capacity that's utilized that we just added for the past quarter.

（以外語說）正如您所提到的，並且從我們的財務狀況可以看出，我們的客戶對產能確實有很大的需求，為了滿足他們的產能需求，我們實際上已經積極響應並提供了所需的產能，而且他們已經相當迅速地進入市場。實際上，就上個季度新增的產能利用率而言，我們剛剛創下了歷史新高。

And according to the communications with these clients as well as assessing their willingness and also how firm they are about moving in scheduling. So we are confident to that for the upcoming three quarters plus another quarter next year. We're going to see very pleasant move in rhythm from these clients. Thank you.

並根據與這些客戶的溝通以及評估他們的意願以及他們對安排搬遷的堅定程度。因此，我們對未來三個季度以及明年的一個季度充滿信心。我們將看到這些客戶的節奏非常愉快地轉變。謝謝。

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

謝謝。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。