Shares of VNET Group, a leading Chinese internet data center services provider, plummeted 10.92% in intraday trading on Wednesday following the release of its disappointing first-quarter 2025 financial results and underwhelming full-year guidance.

The company reported a wider net loss of RMB 237.6 million (US$32.7 million) for Q1 2025, compared to a loss of RMB 187.0 million in the same period last year. VNET's loss per American Depositary Share (ADS) came in at RMB 0.90 (US$0.12), significantly missing analyst estimates of RMB 0.12 loss per ADS. Despite reporting revenue of RMB 2,250 million (US$309.54 million), which slightly surpassed expectations, investors focused on the bottom-line miss.

Adding to the negative sentiment, VNET Group provided full-year 2025 revenue guidance of RMB 9,100-9,300 million, falling short of the consensus estimate of RMB 9,330 million. This cautious outlook, combined with the wider Q1 loss, has prompted investors to reassess the company's growth prospects and profitability in the competitive Chinese data center market. The stock's sharp decline reflects growing concerns about VNET's ability to achieve sustainable profitability amid challenging market conditions.