BEIJING, May 28, 2025 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) ("VNET" or the "Company"), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2025.
"We kicked off 2025 with a strong first quarter thanks to excellent execution of our effective dual-core strategy," said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET. "Our wholesale IDC business recorded another impressive performance, marked by our robust deliveries and customers' fast move-in pace. As of March 31, 2025, our wholesale capacity in service increased by 88MW quarter over quarter to 573MW. Wholesale capacity utilized increased by a record high of 84MW quarter over quarter to 437MW. We continued to win quality wholesale and retail orders in the first quarter, including the 119MW of wholesale orders we disclosed last quarter, along with a 6MW wholesale order from an intelligent driving customer and a total of 4MW in retail orders from customers in internet, finance, local services, intelligent driving, and gaming across multiple retail data centers. Going forward, we will continue leveraging our high-performance data center network, reliable solutions, and outstanding delivery capabilities to address customers' needs and meet their rising demand, driving growth and advancing the development of China's digital economy."
Qiyu Wang, Chief Financial Officer of VNET, commented, "The solid start of the year 2025 was characterized by vibrant growth and a significantly enhanced margin. In the first quarter, our total net revenues rose 18.3% year over year to RMB2.25 billion, driven by wholesale revenues' strong year-over-year growth of 86.5%. Adjusted EBITDA for the first quarter increased by 26.4% year over year to RMB682.4 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. Moreover, we further strengthened our financing capabilities, diversifying our financing channels at a relatively low cost to support our continued investments in future development. Looking ahead, we will remain dedicated to our sustainable, high-quality growth strategy, seizing market opportunities and delivering long-term value for our stakeholders."
First Quarter 2025 Financial Highlights
-- Total net revenues increased by 18.3% to RMB2.25 billion (US$309.5
million) from RMB1.90 billion in the same period of 2024.
-- Net revenues from the IDC business[1] increased by 27.8% to
RMB1.64 billion (US$226.2 million) from RMB1.28 billion in the
same period of 2024.
-- Net revenues from the wholesale IDC business ("wholesale
revenues") increased by 86.5% to RMB673.2 million (US$92.8
million) from RMB361.0 million in the same period of 2024.
-- Net revenues from the retail IDC business ("retail
revenues") increased by 4.8% to RMB968.3 million (US$133.4
million) from RMB923.7 million in the same period of 2024.
-- Net revenues from the non-IDC business[2] decreased slightly by
1.4% to RMB604.8 million (US$83.3 million) from RMB613.5 million
in the same period of 2024.
-- Adjusted cash gross profit (non-GAAP) increased by 26.4% to RMB967.8
million (US$133.4 million) from RMB765.5 million in the same period of
2024. Adjusted cash gross margin (non-GAAP) was 43.1%, compared with
40.3% in the same period of 2024.
-- Adjusted EBITDA (non-GAAP) increased by 26.4% to RMB682.4 million
(US$94.0 million) from RMB539.8 million in the same period of 2024.
Adjusted EBITDA margin (non-GAAP) was 30.4%, compared with 28.4% in the
same period of 2024.
First Quarter 2025 Operational Highlights
Wholesale IDC Business
-- Capacity in service was 573MW as of March 31, 2025, compared with 486MW
as of December 31, 2024, and 332MW as of March 31, 2024. Capacity under
construction was 377MW as of March 31, 2025.
-- Capacity utilized by customers reached 437MW as of March 31, 2025,
compared with 353MW as of December 31, 2024, and 236MW as of March 31,
2024. The sequential increase during the first quarter of 2025 was 84MW,
which was mainly contributed by the E-JS Campus 02 and N-HB Campus 03
data centers.
-- Utilization rate[3] of wholesale capacity was 76.2% as of March 31, 2025,
compared with 72.6% as of December 31, 2024, and 71.0% as of March 31,
2024.
-- Utilization rate of mature wholesale capacity[4] was 94.5% as of
March 31, 2025, compared with 95.6% as of December 31, 2024, and
94.6% as of March 31, 2024.
-- Utilization rate of ramp-up wholesale capacity[5] was 32.1% as of
March 31, 2025, compared with 34.0% as of December 31, 2024, and
33.6% as of March 31, 2024.
-- Total capacity committed[6] was 571MW as of March 31, 2025, compared with
479MW as of December 31, 2024, and 326MW as of March 31, 2024.
-- Commitment rate[7] for capacity in service was 99.7% as of March 31,
2025, compared with 98.7% as of December 31, 2024, and 98.1% as of March
31, 2024.
-- Total capacity pre-committed[8] was 307MW and pre-commitment rate[9] for
capacity under construction was 81.6% as of March 31, 2025.
Retail IDC Business([10])
-- Capacity in service was 51,960 cabinets as of March 31, 2025, compared
with 52,107 cabinets as of December 31, 2024, and 52,068 cabinets as of
March 31, 2024.
-- Capacity utilized by customers reached 33,093 cabinets as of March 31,
2025, compared with 33,068 cabinets as of December 31, 2024, and 33,312
cabinets as of March 31, 2024.
-- Utilization rate of retail capacity was 63.7% as of March 31, 2025,
compared with 63.5% as of December 31, 2024, and 64.0% as of March 31,
2024.
-- Utilization rate of mature retail capacity[11] was 69.1% as of
March 31, 2025, compared with 68.9% as of December 31, 2024, and
72.8% as of March 31, 2024.
-- Utilization rate of ramp-up retail capacity[12] was 21.5% as of
March 31, 2025, compared with 21.3% as of December 31, 2024, and
13.0% as of March 31, 2024.
-- Monthly recurring revenue $(MRR.AU)$ per retail cabinet was RMB8,898 in the
first quarter of 2025, compared with RMB8,794 in the fourth quarter of
2024 and RMB8,742 in the first quarter of 2024.
[1] IDC business refers to managed hosting services, consisting of the
wholesale IDC business and the retail IDC business. Beginning in the first
quarter of 2024, our IDC business was subdivided into wholesale IDC business
and retail IDC business according to the nature and scale of our data center
projects. Prior to 2024, the subdivision was based on customer contract
types.
[2] Non-IDC business consists of cloud services and VPN services.
[3] Utilization rate is calculated by dividing capacity utilized by customers
by the capacity in service.
[4] Mature wholesale capacity refers to wholesale data centers in which
utilization rate is at or above 80%.
[5] Ramp-up wholesale capacity refers to wholesale data centers in which
utilization rate is below 80%.
[6] Total capacity committed is the capacity committed to customers pursuant
to customer agreements remaining in effect.
[7] Commitment rate is calculated by total capacity committed divided by total
capacity in service.
[8] Total capacity pre-committed is the capacity under construction which is
pre-committed to customers pursuant to customer agreements remaining in
effect.
[9] Pre-commitment rate is calculated by total capacity pre-committed divided
by total capacity under construction.
[10] For retail IDC business, since the first quarter of 2024, we have
excluded a certain number of reserved cabinets from the capacity in service.
Reserved cabinets refer to those that have not been utilized on a large scale,
those that are planned to be closed, or those that are planned to be further
upgraded. As of March 31, 2024, December 31, 2024, and March 31, 2025, 4,426,
3,766 and 3,766 reserved cabinets, respectively, were excluded from the
calculation of utilization rate of retail IDC business capacity.
[11] Mature retail capacity refers to retail data centers that came into
service prior to the past 24 months.
[12] Ramp-up retail capacity refers to retail data centers that came into
service within the past 24 months, or mature retail data centers that have
undergone improvements within the past 24 months.
First Quarter 2025 Financial Results
TOTAL NET REVENUES: Total net revenues in the first quarter of 2025 were RMB2.25 billion (US$309.5 million), representing an increase of 18.3% from RMB1.90 billion in the same period of 2024. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business.
Net revenues from IDC business increased by 27.8% to RMB1.64 billion (US$226.2 million) from RMB1.28 billion in the same period of 2024. The year-over-year increase was mainly driven by an increase in wholesale revenues.
-- Wholesale revenues increased by 86.5% to RMB673.2 million (US$92.8
million) from RMB361.0 million in the same period of 2024.
-- Retail revenues increased to RMB968.3 million (US$133.4 million) from
RMB923.7 million in the same period of 2024.
Net revenues from non-IDC business decreased slightly by 1.4% to RMB604.8 million (US$83.3 million) from RMB613.5 million in the same period of 2024.
GROSS PROFIT: Gross profit in the first quarter of 2025 was RMB565.3 million (US$77.9 million), representing an increase of 37.6% from RMB410.7 million in the same period of 2024. Gross margin in the first quarter of 2025 was 25.2%, compared with 21.6% in the same period of 2024.
ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation, amortization, and share-based compensation expenses, was RMB967.8 million (US$133.4 million) in the first quarter of 2025, compared with RMB765.5 million in the same period of 2024. Adjusted cash gross margin (non-GAAP) in the first quarter of 2025 was 43.1%, compared with 40.3% in the same period of 2024.
OPERATING EXPENSES: Total operating expenses in the first quarter of 2025 were RMB316.8 million (US$43.7 million), compared with RMB364.3 million in the same period of 2024.
Sales and marketing expenses were RMB64.3 million (US$8.9 million) in the first quarter of 2025, compared with RMB71.7 million in the same period of 2024.
Research and development expenses were RMB43.6 million (US$6.0 million) in the first quarter of 2025, compared with RMB75.4 million in the same period of 2024.
General and administrative expenses were RMB179.8 million (US$24.8 million) in the first quarter of 2025, compared with RMB226.3 million in the same period of 2024.
ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses, were RMB310.5 million (US$42.8 million) in the first quarter of 2025, compared with RMB252.6 million in the same period of 2024. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the first quarter of 2025 were 13.8%, compared with 13.3% in the same period of 2024.
ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the first quarter of 2025 was RMB682.4 million (US$94.0 million), representing an increase of 26.4% from RMB539.8 million in the same period of 2024. Adjusted EBITDA margin (non-GAAP) in the first quarter of 2025 was 30.4%, compared with 28.4% in the same period of 2024.
NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the first quarter of 2025 was RMB237.6 million (US$32.7 million), compared with a net loss attributable to VNET Group, Inc. of RMB187.0 million in the same period of 2024. The year-over-year increase in loss was mainly due to the changes in the fair value of financial instruments.
LOSS PER SHARE: Basic and diluted loss per share in the first quarter of 2025 were both RMB0.15 (US$0.02), which represents the equivalent of RMB0.90 (US$0.12) per American depositary share ("ADS"), respectively. Each ADS represents six Class A ordinary shares.
LIQUIDITY: As of March 31, 2025, the aggregate amount of the Company's cash and cash equivalents, restricted cash and short-term investments was RMB5.79 billion (US$797.8 million).
Total short-term debt, consisting of short-term bank borrowings and the current portion of long-term borrowings, was RMB2.58 billion (US$355.7 million). Total long-term debt was RMB14.20 billion (US$1.96 billion), comprised of long-term borrowings of RMB8.96 billion (US$1.20 billion) and convertible promissory notes of RMB5.24 billion (US$722.8 million).
Net cash generated from operating activities in the first quarter of 2025 was RMB195.7 million (US$27.0 million), compared with RMB267.6 million in the same period of 2024. During the first quarter of 2025, the Company obtained new debt financing, refinancing facilities, convertible senior notes and other financings of RMB5.42 billion (US$746.8 million).
Business Outlook
The Company expects total net revenues for 2025 to be between RMB9,100 million to RMB9,300 million, representing year-over-year growth of 10% to 13%, and adjusted EBITDA (non-GAAP) to be in the range of RMB2,700 million to RMB2,760 million, representing year-over-year growth of 11% to 14%. If the RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center were excluded from the adjusted EBITDA calculation for 2024, the year-over-year growth would be 15% to 18%. The above outlook remains unchanged from the previously provided estimates.
The forecast reflects the Company's current and preliminary views on the market and its operational conditions and is subject to change.
Conference Call
The Company's management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, May 28, 2025, or 8:00 PM Beijing Time on Wednesday, May 28, 2025.
For participants who wish to join the call, please access the links provided below to complete the online registration process.
English line:
https://s1.c-conf.com/diamondpass/10047350-c2tgiy.html
Chinese line (listen-only mode):
https://s1.c-conf.com/diamondpass/10047351-lcxi4d.html
Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call.
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.vnet.com.
A replay of the conference call will be accessible through June 4, 2025, by dialing the following numbers:
US/Canada: 1 855 883 1031 Mainland China: 400 1209 216 Hong Kong, China: 800 930 639 International: +61 7 3107 6325 Reply PIN (English line): 10047350 Reply PIN (Chinese line): 10047351
Non-GAAP Disclosure
In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of GAAP and non-GAAP results" set forth at the end of this press release.
The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors' overall understanding of the Company's current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company's calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollars ("USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.
Statement Regarding Unaudited Condensed Financial Information
The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company's year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.
About VNET
VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "target," "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement as well as VNET's strategic and operational plans, including the plan to sign a definitive agreement on a pre-REITs project, contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are
forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law.
Investor Relations Contact:
Xinyuan Liu
Tel: +86 10 8456 2121
Email: ir@vnet.com
VNET GROUP, INC.
CONSOLIDATED BALANCE SHEETS
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))
As of As of
December 31, 2024 March 31, 2025
RMB RMB US$
Assets
Current assets:
Cash and cash equivalents 1,492,436 3,949,940 544,316
Restricted cash 545,795 1,774,403 244,519
Accounts and notes
receivable, net 1,655,984 2,028,264 279,502
Short-term Investments - 21,491 2,962
Prepaid expenses and other
current assets 2,789,573 2,983,864 411,187
Amounts due from related
parties 336,360 382,734 52,742
----------------- ------------ -----------
Total current assets 6,820,148 11,140,696 1,535,228
----------------- ------------ -----------
Non-current assets:
Property and equipment, net 17,216,635 18,421,841 2,538,598
Intangible assets and other
long-term assets, net 2,170,000 2,768,074 381,451
Operating lease
right-of-use assets, net 4,618,212 4,966,194 684,360
Derivative financial
instruments 6,768 16,307 2,247
Restricted cash 42,842 43,315 5,969
Deferred tax assets, net 306,623 309,428 42,640
Long-term investments, net 794,688 788,119 108,606
Other non-current assets 381,126 378,687 52,184
----------------- ------------ -----------
Total non-current assets 25,536,894 27,691,965 3,816,055
----------------- ------------ -----------
Total assets 32,357,042 38,832,661 5,351,283
================= ============ ===========
Liabilities and
Shareholders' Equity
Current liabilities:
Short-term bank borrowings 589,000 1,020,997 140,697
Accounts and notes payable 709,260 813,337 112,081
Accrued expenses and other
payables 3,618,237 3,736,633 514,922
Advances from customers 1,378,806 1,311,898 180,784
Deferred revenue 87,830 94,985 13,089
Income taxes payable 69,569 48,748 6,718
Amounts due to related
parties 355,679 351,966 48,502
Current portion of
long-term borrowings 1,420,190 1,560,064 214,983
Current portion of finance
lease liabilities 208,299 227,918 31,408
Current portion of deferred
government grants 6,727 9,339 1,287
Current portion of
operating lease
liabilities 899,818 938,292 129,300
Total current liabilities 9,343,415 10,114,177 1,393,771
----------------- ------------ -----------
Non-current liabilities:
Long-term borrowings 7,767,390 8,958,785 1,234,554
Convertible promissory
notes 1,897,738 5,244,979 722,777
Non-current portion of
finance lease liabilities 1,532,309 1,556,327 214,468
Unrecognized tax benefits 107,850 107,850 14,862
Deferred tax liabilities 734,404 875,054 120,586
Deferred government grants 273,824 267,078 36,804
Non-current portion of
operating lease
liabilities 3,779,293 4,105,999 565,822
Total non-current
liabilities 16,092,808 21,116,072 2,909,873
----------------- ------------ -----------
Mezzanine equity:
Redeemable non-controlling
interests - 869,303 119,793
Total mezzanine equity - 869,303 119,793
----------------- ------------ -----------
Shareholders' equity
Ordinary shares 112 112 15
Additional paid-in capital 17,298,692 17,340,396 2,389,570
Accumulated other
comprehensive loss (18,504) (11,695) (1,612)
Statutory reserves 107,380 107,380 14,797
Accumulated deficit (10,859,888) (11,097,446) (1,529,269)
Treasury stock (161,892) (161,892) (22,309)
----------------- ------------ -----------
Total VNET Group, Inc.
shareholders' equity 6,365,900 6,176,855 851,192
Noncontrolling interest 554,919 556,254 76,654
----------------- ------------ -----------
Total shareholders' equity 6,920,819 6,733,109 927,846
----------------- ------------ -----------
Total liabilities and
shareholders' equity 32,357,042 38,832,661 5,351,283
================= ============ ===========
VNET GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for
number of shares and per share data)
Three months ended
March 31, December 31,
2024 2024 March 31, 2025
RMB RMB RMB US$
Net revenues 1,898,126 2,246,389 2,246,220 309,537
Cost of
revenues (1,487,405) (1,741,533) (1,680,879) (231,631)
------------- ------------- ------------- -------------
Gross profit 410,721 504,856 565,341 77,906
Operating
income
(expenses)
Operating
income 3,949 98,869 1,461 201
Sales and
marketing
expenses (71,743) (73,088) (64,346) (8,867)
Research and
development
expenses (75,389) (56,098) (43,603) (6,009)
General and
administrative
expenses (226,297) (192,954) (179,770) (24,773)
Allowance for
doubtful debt 5,175 (44,590) (30,552) (4,210)
Total operating
expenses (364,305) (267,861) (316,810) (43,658)
------------- ------------- ------------- -------------
Operating
profit 46,416 236,995 248,531 34,248
Interest income 12,129 6,162 6,751 930
Interest
expense (137,682) (77,125) (100,653) (13,870)
Other income 4,814 1,855 1,811 250
Other expenses (1,422) (10,185) (2,438) (336)
Changes in the
fair value of
financial
instruments 3,858 (71,575) (334,904) (46,151)
Foreign
exchange
(loss) gain (28,361) (1,327) 9,527 1,313
------------- ------------- ------------- -------------
(Loss) income
before income
taxes and gain
from equity
method
investments (100,248) 84,800 (171,375) (23,616)
Income tax
expenses (61,384) (82,547) (52,062) (7,174)
Gain from
equity method
investments 2,606 1,197 3,214 443
------------- ------------- ------------- -------------
Net (loss)
income (159,026) 3,450 (220,223) (30,347)
Net income
attributable
to
noncontrolling
interest (27,979) (14,546) (17,335) (2,389)
------------- ------------- ------------- -------------
Net loss
attributable
to the VNET
Group, Inc. (187,005) (11,096) (237,558) (32,736)
============= ============= ============= =============
Loss per share
Basic (0.12) (0.01) (0.15) (0.02)
Diluted (0.12) (0.01) (0.15) (0.02)
Shares used in
loss per share
computation
Basic* 1,568,300,360 1,608,291,868 1,608,799,842 1,608,799,842
Diluted* 1,568,300,360 1,608,291,868 1,608,799,842 1,608,799,842
Loss per ADS (6 ordinary shares
equal to 1 ADS)
Basic (0.72) (0.06) (0.90) (0.12)
Diluted (0.72) (0.06) (0.90) (0.12)
* Shares used in loss per share/ADS computation were
computed under weighted average method.
VNET GROUP, INC.
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))
Three months ended
March 31, December 31,
2024 2024 March 31, 2025
RMB RMB RMB US$
Gross profit 410,721 504,856 565,341 77,906
Plus:
depreciation
and
amortization 352,604 414,364 402,399 55,452
Plus:
share-based
compensation
expenses 2,190 4,652 109 15
------------- ------------ --------- --------
Adjusted cash
gross
profit 765,515 923,872 967,849 133,373
============= ============ ========= ========
Adjusted cash
gross
margin 40.3 % 41.1 % 43.1 % 43.1 %
Operating
expenses (364,305) (267,861) (316,810) (43,658)
Plus:
share-based
compensation
expenses 111,681 38,243 6,329 872
------------- ------------ --------- --------
Adjusted
operating
expenses (252,624) (229,618) (310,481) (42,786)
============= ============ ========= ========
Operating
profit 46,416 236,995 248,531 34,248
Plus:
depreciation
and
amortization 379,551 441,447 427,440 58,903
Plus:
share-based
compensation
expenses 113,871 42,895 6,438 887
------------- ------------ --------- --------
Adjusted
EBITDA 539,838 721,337 682,409 94,038
============= ============ ========= ========
Adjusted
EBITDA
margin 28.4 % 32.1 % 30.4 % 30.4 %
VNET GROUP, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$"))
Three months ended
March 31, December
2024 31, 2024 March 31, 2025
RMB RMB RMB US$
CASH FLOWS FROM
OPERATING ACTIVITIES
Net cash generated
from operating
activities 267,587 572,236 195,713 26,969
----------- ----------- ----------- ---------
CASH FLOWS FROM
INVESTING ACTIVITIES
Purchases of property
and equipment (1,005,368) (1,492,972) (1,792,051) (246,951)
Purchases of
intangible assets (5,965) (82,693) (33,952) (4,679)
Proceeds from
(payments for)
investments 359,239 22,087 (21,440) (2,955)
Proceeds from
(payments for) other
investing
activities 1,154 177,418 (37,327) (5,143)
----------- ----------- ----------- ---------
Net cash used in
investing
activities (650,940) (1,376,160) (1,884,770) (259,728)
----------- ----------- ----------- ---------
CASH FLOWS FROM
FINANCING ACTIVITIES
Proceeds from bank
borrowings 1,156,279 1,240,147 1,893,386 260,916
Repayments of bank
borrowings (51,441) (366,664) (369,366) (50,900)
Repurchase of 2026
Convertible Notes (4,262,340) - - -
Proceeds from
issuance of 2030
Convertible Notes - - 3,084,519 425,058
Payments for finance
leases (39,602) (25,789) (37,950) (5,230)
Contribution from
noncontrolling
interest in a
subsidiary - 16,000 635,000 87,505
Proceeds from
(payments for) other
financing
activities 591,446 (78,448) 161,033 22,191
Net cash (used in)
generated from
financing
activities (2,605,658) 785,246 5,366,622 739,540
----------- ----------- ----------- ---------
Effect of foreign
exchange rate
changes on cash,
cash equivalents and
restricted cash (20,050) 17,784 9,020 1,243
Net (decrease)
increase in cash,
cash equivalents and
restricted cash (3,009,061) (894) 3,686,585 508,024
Cash, cash
equivalents and
restricted cash at
beginning of period 5,098,987 2,081,967 2,081,073 286,780
----------- ----------- ----------- ---------
Cash, cash
equivalents and
restricted cash at
end of period 2,089,926 2,081,073 5,767,658 794,804
=========== =========== =========== =========
View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-first-quarter-2025-financial-results-302466848.html
SOURCE VNET Group, Inc.
(END) Dow Jones Newswires
May 28, 2025 05:00 ET (09:00 GMT)
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