On August 21, 2025, Beijing time, VNET Group (VNET.US), a leading technology-driven digital infrastructure company and China's first IDC company listed on U.S. stock exchanges, announced its unaudited financial performance for the second quarter of 2025.

VNET Group achieved total revenue of RMB 2.43 billion in Q2 2025, representing a 22.1% year-over-year increase; adjusted cash gross profit grew 34.9% year-over-year to RMB 1.06 billion; adjusted EBITDA increased 27.7% year-over-year to RMB 732 million.

Adjusted cash gross margin improved to 43.6% from 39.5% in the same period last year; adjusted EBITDA margin increased to 30.1% from 28.8% in the prior year period.

Mr. Chen Sheng, Founder and Chairman of VNET Group, commented: "Through continued efficient strategic execution, we delivered strong second-quarter performance. Driven by accelerated customer deployments, our hyperscale IDC business maintained robust growth momentum. During the quarter, hyperscale business operating capacity increased by 101 megawatts quarter-over-quarter to 674 megawatts; utilized capacity grew by 74 megawatts quarter-over-quarter to 511 megawatts. We continue to attract customers across various industries with high-performance data centers and premium IDC services. In the second quarter, we secured approximately 4 megawatts of retail colocation business orders and recently won a 20-megawatt hyperscale business order in Hebei Province.

In late June, we officially launched the Hyperscale 2.0 framework for future AIDC development. Simultaneously, we unveiled our company's future development blueprint, planning to scale our managed data center assets to 10 gigawatts by 2036. As a pioneer in the AIDC sector, leveraging our solid capabilities and deep industry expertise, VNET Group will lead new industry trends through the Hyperscale 2.0 framework. Looking ahead, we will continue to enhance competitiveness through efficient delivery and reliable IDC services. With the implementation and advancement of the Hyperscale 2.0 framework, we are committed to building greener and more intelligent data centers for the AI era."

Mr. Wang Qiyu, CFO of VNET Group, stated: "Our business maintained strong momentum in the second quarter with robust financial performance. The hyperscale business was particularly impressive, with revenue surging 112.5% year-over-year. This drove our total revenue growth of 22.1% year-over-year to RMB 2.43 billion. Adjusted EBITDA increased 27.7% year-over-year to RMB 732 million, with adjusted EBITDA margin at 30.1%, up 1.3 percentage points year-over-year. With our effective business strategy and solid balance sheet, we are well-positioned to lead the AIDC transformation, capitalize on sustained growth opportunities in the AI-driven market, and create long-term, sustainable value for all stakeholders."

**Strong IDC Business Growth with Continued Hyperscale Advantages**

With AI driving surging IDC demand, VNET Group's IDC business demonstrates strong development momentum. In the second quarter, hyperscale IDC business, as the core growth engine, continued its rapid expansion with impressive operational metrics showcasing market competitiveness. As of June 30, 2025, hyperscale business operating capacity grew 17.5% quarter-over-quarter, adding approximately 101 megawatts to reach 674 megawatts; utilized capacity increased 17.0% quarter-over-quarter, adding 74 megawatts to reach 511 megawatts, maintaining a utilization rate of 75.9%. By the end of June, hyperscale data centers had approximately 326 megawatts under construction, near-term reserved capacity of approximately 374 megawatts, and long-term reserved capacity of approximately 418 megawatts. The retail colocation IDC business operated steadily, continuing to contribute value. In the second quarter, retail colocation business scale remained stable with operating capacity of 52,131 cabinets, utilization rate slightly increased to 63.9%, and monthly recurring revenue per cabinet improved to RMB 8,915.

In the first half of 2025, VNET Group delivered approximately 188 megawatts in total. Eight data centers are under construction, with six located in the Greater Beijing area and two in the Yangtze River Delta region. The company plans to deliver approximately 326 megawatts over the next 12 months. This strong delivery pipeline not only confirms urgent customer demand for high-quality computing resources but also highlights VNET Group's exceptional delivery capabilities.

**Revenue and Adjusted EBITDA Exceed Expectations, Profitability Steadily Improving**

In the second quarter, VNET Group continued focusing on high-quality, high-margin businesses, maintaining stable profit margin levels through operational efficiency optimization and deep cultivation of core areas.

Total revenue for Q2 2025 reached RMB 2.43 billion, up 22.1% year-over-year and 8.4% quarter-over-quarter. As the core growth engine, hyperscale business revenue performed exceptionally well, surging to RMB 854 million this quarter, up 112.5% year-over-year and 26.9% quarter-over-quarter, primarily driven by revenue contributions from N-OR Campus 01 and E-JS Campus 03 data centers. Retail colocation IDC revenue was RMB 959 million. Adjusted EBITDA reached RMB 732 million, up 27.7% year-over-year and 7.3% quarter-over-quarter, with adjusted EBITDA margin improving 1.3 percentage points year-over-year to 30.1%.

**Dual-Engine Strategy Steadily Advancing, Quality Orders Continuously Materializing**

Currently, artificial intelligence development is experiencing a critical transition from technological breakthroughs to industrial penetration, with deep vertical sector advancement, intelligent reconstruction of traditional industries, and parallel evolution of training centralization and edge inference deployment. As numerous industry customers actively deploy intelligent applications, AI-driven demand for training and inference is particularly strong.

This quarter, VNET Group secured approximately 4 megawatts of orders from IT services, internet, smart IoT, and financial services industry customers across multiple retail colocation data centers in Greater Beijing, Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, and other core regions. The company also won a 20-megawatt hyperscale business order from a leading cloud computing customer in Hebei Province.

**Launch of Hyperscale 2.0, Anchoring Ten-Year Development Strategy**

Artificial intelligence is gradually penetrating all global sectors, with data centers, as the cornerstone of AI infrastructure, continuously welcoming new growth opportunities. The IDC industry has reached a critical inflection point, with traditional IDC transforming toward AIDC to meet evolving market demands. As a pioneer in the AIDC sector, VNET Group officially launched the Hyperscale 2.0 framework for future AIDC development this quarter and unveiled the company's future development blueprint, planning to scale managed data center assets to 10 gigawatts by 2036.

Under the Hyperscale 2.0 framework, through "three modernizations" innovation, VNET Group will upgrade data center business models from providing single project resource delivery to providing comprehensive AIDC solution platforms. Architectural standardization technology uses standardized modules as basic construction units for data centers; electrical and mechanical modularization technology integrates power systems, cooling systems, and other functions into different functional modules for factory production and pre-commissioning; power bus technology connects high voltage levels with power grids, enables energy interchange between parks, and flexible AC/DC networking within parks. Through innovative technology, VNET Group can build high-quality AIDCs more efficiently and flexibly, ensuring rapid delivery to meet customer needs.

Hyperscale 2.0 has now launched, starting with Inner Mongolia, Hebei, and Beijing to build data center hubs featuring megawatt-level cabinets, hundred-megawatt-level individual buildings, and gigawatt-level parks, ultimately achieving seamless coordination of cross-park computing power and energy management.