BEIJING, March 12,
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 fourth quarter and full year ended December 31, 2024.
"We closed 2024 with a strong fourth quarter,
highlighted by our wholesale IDC business's remarkable performance
as we continued to capitalize on AI-driven demand," said
Josh Sheng Chen, Founder, Executive
Chairperson and interim Chief Executive Officer of VNET. "Our
high-performance data centers, outstanding delivery capabilities,
and premium services continued to attract quality orders. During
the fourth quarter, we secured 32MW order from an internet customer
in the Yangtze River Delta. One of our retail datacenters located
in the Greater Bay Area won a 1.5MW order from a new customer in
intelligent driving industry. Meanwhile, in Ulanqab, we signed a
100MW framework agreement with another internet customer, with 28MW
to be delivered in the fourth quarter of 2025. In addition,
recently we secured a 55MW order from a leading cloud computing
customer in this region. Furthermore, we recently won a 64MW order
for capacity operated with our strategic partner, Changzhou Gaoxin
Group, allowing us to serve more customers."
"Moving into 2025, we remain confident in
China market's growth potential.
Recent AI breakthroughs are propelling AI development domestically,
spurring inference demand, and reducing costs. This is
boosting industrywide enthusiasm for investing in AI,
unlocking greater demand for high-performance data centers and
reliable IDC services. As a leading player with a clear expansion
path for such advanced capacity, we are well-positioned to capture
rising market opportunities, driving our sustainable growth."
Qiyu Wang, Chief
Financial Officer of VNET, commented, "Our full-year 2024 results
exceeded our expectations, capped by a robust fourth quarter.
Revenues from our wholesale business remained the key growth
driver, reaching a record high of RMB665.2
million with an accelerated year-over-year growth of 125.4%
during the fourth quarter. Our adjusted EBITDA also increased by
63.8% year over year to RMB721.3
million during the quarter. Looking ahead, we will continue
to execute our effective dual-core strategy while investing in
future growth to propel our high-quality development and create
long-term shareholder value."
Fourth Quarter 2024 Financial
Highlights
- Total net revenues increased by 18.3% to RMB2.25 billion (US$307.8
million) from RMB1.90 billion
in the same period of 2023.
- Net revenues from the IDC business[1] increased
by 28.3% to RMB1.63 billion
(US$223.3 million) from RMB1.27 billion in the same period of 2023.
- Net revenues from the wholesale IDC business ("wholesale
revenues") increased by 125.4% to RMB665.2
million (US$91.1million) from
RMB295.1 million in the same period
of 2023.
- Net revenues from the retail IDC business ("retail
revenues") decreased slightly by 1.1% to RMB964.8 million (US$132.2
million) from RMB975.2 million
in the same period of 2023.
- Net revenues from the non-IDC business[2]
decreased by 1.9% to RMB616.5 million
(US$84.5 million) from RMB628.2 million in the same period of 2023.
- Adjusted cash gross profit (non-GAAP) increased by 24.6% to
RMB923.9 million (US$126.6 million) from RMB741.7 million in the same period of 2023.
Adjusted cash gross margin (non-GAAP) was 41.1%, compared with
39.1% in the same period of 2023.
- Adjusted EBITDA (non-GAAP) increased by 63.8% to RMB721.3 million (US$98.8
million), including RMB87.7
million (US$12.0 million)
disposal gain of E-JS02 data center. Adjusted EBITDA margin
(non-GAAP) was 32.1%, compared with 23.2% in the same period of
2023.
- Net income was RMB3.5 million
compared with a net loss of RMB2.42
billion in the same period of 2023.
Full Year 2024 Financial Highlights
- Total net revenues increased by 11.4% to RMB8.26 billion (US$1.13
billion) from RMB7.41billion
in the full year of 2023.
- Net revenues from the IDC business increased by 16.1% to
RMB5.78 billion (US$791.8 million) from RMB4.98 billion in the full year of 2023.
- Net revenues from the wholesale IDC business ("wholesale
revenues") increased by 90.4% to RMB1.95
billion (US$267.3 million)
from RMB1.02 billion in the full year
of 2023.
- Net revenues from the retail IDC business ("retail
revenues") decreased slightly by 3.1% to RMB3.83 billion (US$524.5
million) from RMB3.95 billion
in the full year of 2023.
- Net revenues from the non-IDC business increased by 1.7%
to RMB2.48 billion (US$339.7 million) from RMB2.44 billion in the full year of 2023.
- Adjusted cash gross profit (non-GAAP) increased by 12.1% to
RMB3.34 billion (US$457.2 million) from RMB2.98 billion in the full year of 2023.
Adjusted cash gross margin (non-GAAP) was 40.4%, compared with
40.2% in the full year of 2023.
- Adjusted EBITDA (non-GAAP) increased by 19.1% to RMB2.43 billion (US$332.9
million), including RMB87.7
million (US$12.0 million)
disposal gain of E-JS02 data center.
- Net income increased by RMB2.85
billion to RMB248.4 million
(US$34.0 million) in the full year of
2024, compared with a net loss of RMB2.60
billion in the full year of 2023.
Fourth Quarter 2024 Operational
Highlights
Wholesale IDC Business
- Capacity in service was 486MW as of December 31, 2024, compared with 358MW as of
September 30, 2024, and 332MW as of
December 31, 2023. Capacity under
construction was 406MW as of December 31,
2024.
- Capacity utilized by customers reached 353MW as of December 31, 2024, compared with 279MW as of
September 30, 2024, and 219MW as of
December 31, 2023. The sequential
increase during the fourth quarter of 2024 was 73MW, which was
mainly contributed by the E-JS Campus 02 data center.
- Utilization rate[3] of wholesale capacity was 72.6%
as of December 31, 2024, compared
with 78.0% as of September 30, 2024,
and 65.8% as of December 31, 2023.
- Utilization rate of mature wholesale capacity[4] was
95.6% as of December 31, 2024,
compared with 95.6% as of September 30,
2024, and 95.0% as of December 31,
2023.
- Utilization rate of ramp-up wholesale capacity[5]
was 34.0% as of December 31, 2024,
compared with 46.4% as of September 30,
2024, and 19.7% as of December 31,
2023.
- Total capacity committed[6] was 479MW as of
December 31, 2024, compared with
352MW as of September 30, 2024, and
326MW as of December 31, 2023.
- Commitment rate[7] for capacity in service was 98.7%
as of December 31, 2024, compared
with 98.2% as of September 30, 2024,
and 98.1% as of December 31,
2023.
- Total capacity pre-committed[8] was 337MW and
pre-commitment rate[9] for capacity under construction
was 82.9% as of December 31,
2024.
Retail IDC Business[10]
- Capacity in service was 52,107 cabinets as of December 31, 2024, compared with 52,250 cabinets
as of September 30, 2024, and 52,233
cabinets as of December 31,
2023.
- Capacity utilized by customers reached 33,068 cabinets as of
December 31, 2024, compared with
32,950 cabinets as of September 30,
2024, and 33,450 cabinets as of December 31, 2023.
- Utilization rate of retail capacity was 63.5% as of
December 31, 2024, compared with
63.1% as of September 30, 2024, and
64.0% as of December 31, 2023.
- Utilization rate of mature retail capacity[11] was
68.9% as of December 31, 2024,
compared with 69.5% as of September 30,
2024, and 73.2% as of December 31,
2023.
- Utilization rate of ramp-up retail capacity[12] was
21.3% as of December 31, 2024,
compared with 16.8% as of September 30,
2024, and 10.8% as of December 31,
2023.
- Monthly recurring revenue (MRR) per retail cabinet was
RMB8,794 in the fourth quarter of
2024, compared with RMB8,788 in the
third quarter of 2024 and RMB8,759 in
the fourth quarter of 2023.
|
[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 December 31, 2023, September
30, 2024, and December 31, 2024, 4,426, 4,150, 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.
|
Fourth Quarter 2024 Financial Results
TOTAL NET REVENUES: Total net revenues in
the fourth quarter of 2024 were RMB2.25
billion (US$307.8 million),
representing an increase of 18.3% from RMB1.90 billion in the same period of 2023. The
year-over-year increase was mainly driven by the continued growth
of our wholesale IDC business.
Net revenues from IDC business
increased by 28.3% to RMB1.63 billion
(US$223.3 million) from RMB1.27 billion in the same period of 2023. The
year-over-year increase was mainly driven by an increase in
wholesale revenues.
- Wholesale revenues increased by 125.4% to
RMB665.2 million (US$91.1 million) from RMB295.1 million in the same period of 2023.
- Retail revenues decreased to RMB964.8 million (US$132.3
million) from RMB975.2 million
in the same period of 2023.
Net revenues from non-IDC business
decreased by 1.9% to RMB616.5 million
(US$84.5 million) from RMB628.2 million in the same period of 2023.
GROSS PROFIT: Gross profit in the fourth
quarter of 2024 was RMB504.9 million
(US$69.2 million), representing an
increase of 73.6% from RMB290.9
million in the same period of 2023. Gross margin in the
fourth quarter of 2024 was 22.5%, compared with 15.3% in the same
period of 2023. The year-over-year increase was primarily
attributable to a reduction in depreciation expense due to the
change in the estimated useful lives of property and equipment
starting from January 1, 2024.
ADJUSTED CASH GROSS PROFIT (non-GAAP),
which excludes depreciation, amortization, and share-based
compensation expenses, was RMB923.9
million (US$126.6 million) in
the fourth quarter of 2024, compared with RMB741.7 million in the same period of 2023.
Adjusted cash gross margin (non-GAAP) in the fourth quarter of 2024
was 41.1%, compared with 39.1% in the same period of 2023.
OPERATING EXPENSES: Total operating
expenses in the fourth quarter of 2024 were RMB267.9 million (US$36.7
million), compared with RMB2.50
billion in the same period of 2023.
Sales and marketing expenses were
RMB73.1 million (US$10.0 million) in the fourth quarter of 2024,
compared with RMB73.3 million in the
same period of 2023.
Research and development expenses
were RMB56.1 million (US$7.7 million) in the fourth quarter of
2024, compared with RMB80.7 million
in the same period of 2023.
General and administrative expenses
were RMB193.0 million (US$26.4 million) in the fourth quarter of 2024,
compared with RMB148.5 million in the
same period of 2023.
ADJUSTED OPERATING EXPENSES (non-GAAP),
which exclude share-based compensation expenses, were RMB229.6 million (US$31.5
million) in the fourth quarter of 2024, compared with
RMB334.2 million in the same period
of 2023. As a percentage of total net revenues, adjusted operating
expenses (non-GAAP) in the fourth quarter of 2024 were 10.2%,
compared with 17.6% in the same period of 2023.
ADJUSTED EBITDA (non-GAAP): Adjusted
EBITDA in the fourth quarter of 2024 was RMB721.3 million (US$98.8
million), including RMB87.7
million (US$12.0 million)
disposal gain of E-JS02 data center, representing an increase of
63.8% from RMB440.2 million in the
same period of 2023. Adjusted EBITDA margin (non-GAAP) in the
fourth quarter of 2024 was 32.1%, compared with 23.2% in the same
period of 2023.
NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss
attributable to VNET Group, Inc. in the fourth quarter of 2024 was
RMB11.1 million (US$1.5 million), compared with a net loss
attributable to VNET Group, Inc. of RMB2.44
billion in the same period of 2023. The year-over-year
increase was mainly due to the impairment of long-lived assets and
goodwill in the same period of 2023.
LOSS PER SHARE: Basic and diluted loss per
share in the fourth quarter of 2024 were both RMB0.01 (US$0.001),
which represents the equivalent to RMB0.06 (US$0.01)
per American depositary share ("ADS"), respectively. Each ADS
represents six Class A ordinary shares. Diluted loss per share is
calculated using adjusted net loss attributable to ordinary
shareholders divided by the weighted average number of diluted
shares outstanding.
LIQUIDITY: As of December 31, 2024, the aggregate amount of the
Company's cash and cash equivalents and restricted cash was
RMB2.08 billion (US$285.1 million).
Total short-term debt consisting of short-term
bank borrowings and the current portion of long-term borrowings was
RMB2.01 billion (US$275.3 million). Total long-term debt was
RMB9.67 billion (US$1.32 billion), comprised of long-term
borrowings of RMB7.77 billion
(US$1.06 billion) and convertible
promissory notes of RMB1.90 billion
(US$260.0 million).
Net cash generated from operating activities in
the fourth quarter of 2024 was RMB572.2
million (US$78.4 million),
compared with RMB730.7 million in the
same period of 2023. During the fourth quarter of 2024, the Company
obtained new debt financing, refinancing facilities and other
financings of RMB1.42 billion
(US$194.6 million).
Full Year 2024 Financial Results
TOTAL NET REVENUES: Total net revenues in
the full year of 2024 were RMB8.26
billion (US$1.13 billion),
representing an increase of 11.4% from RMB7.41 billion in the full year of 2023.
Net revenues from IDC business
increased by 16.1% to RMB5.78 billion
(US$791.8 million) from RMB4.98 billion in the full year of 2023.
- Wholesale revenues increased by 90.4% to
RMB1.95 billion (US$267.3 million) from RMB1.02 billion in the full year of 2023.
- Retail revenues decreased to RMB3.83 million (US$524.5
million) from RMB3.95 billion
in the full year of 2023.
Net revenues from non-IDC business
increased by 1.7% to RMB2.48 billion
(US$339.7 million) from RMB2.44 billion in full year of 2023.
GROSS PROFIT: Gross profit in the full
year of 2024 was RMB1.83 billion
(US$251.0 million), representing an
increase of 41.8% from RMB1.29
billion in the full year of 2023. Gross margin in the full
year of 2024 was 22.2%, compared with 17.4% in the full year of
2023. The year-over-year increase was primarily attributable to a
reduction in depreciation expense due to the change in the
estimated useful lives of property and equipment starting from
January 1, 2024.
ADJUSTED CASH GROSS PROFIT (non-GAAP),
which excludes depreciation, amortization, and share-based
compensation expenses, was RMB3.34
billion (US$457.2 million) in
the full year of 2024, compared with RMB2.98
billion in the full year of 2023. Adjusted cash gross margin
(non-GAAP) in the full year of 2024 was 40.4%, compared with 40.2%
in the full year of 2023.
OPERATING EXPENSES: Total operating
expenses in the full year of 2024 were RMB1.16 billion (US$159.3
million), compared with RMB3.26
billion in the full year of 2023.
Sales and marketing expenses were
RMB263.8 million (US$36.1 million) in the full year of 2024,
compared with RMB266.2 million in the
full year of 2023.
Research and development expenses
were RMB246.6 million (US$33.8 million) in the full year of 2024,
compared with RMB322.2 million in the
full year of 2023.
General and administrative expenses
were RMB659.0 million (US$90.3 million) in the full year of 2024,
compared with RMB541.9 million in the
full year of 2023.
ADJUSTED OPERATING EXPENSES (non-GAAP),
were RMB1.02 billion (US$139.6 million) in the full year of 2024,
compared with RMB1.07 billion in the
full year of 2023. As a percentage of total net revenues, adjusted
operating expenses (non-GAAP) in the full year of 2024 were 12.3%,
compared with 14.4% in the full year of 2023.
ADJUSTED EBITDA (non-GAAP): Adjusted
EBITDA in the full year of 2024 was RMB2.43
billion (US$332.9 million),
including RMB87.7 million
(US$12.0 million) disposal gain of
E-JS02 data center, representing an increase of 19.1% from
RMB2.04 billion in the full year of
2023.
NET INCOME/LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net
income attributable to VNET Group, Inc. in the full year of 2024
was RMB183.2 million (US$25.1 million), compared with a net loss
attributable to VNET Group, Inc. of RMB2.64
billion in the full year of 2023. Net loss attributable to
VNET Group, Inc. in the full year of 2023 included impairment of
long-lived assets of RMB506.7 million
and impairment of goodwill of RMB1.36
billion.
EARNINGS PER SHARE: Basic and
diluted earnings per share in the full year of 2024 were
RMB0.11 (US$0.02) and RMB0.02 (US$0.003),
respectively, which represents the equivalent to RMB0.66 (US$0.12)
and RMB0.12 (US$0.02) per American depositary share ("ADS").
Each ADS represents six Class A ordinary shares. Diluted earnings
per share is calculated using adjusted net income attributable to
ordinary shareholders divided by the weighted average number of
diluted shares outstanding.
LIQUIDITY: Net cash generated from
operating activities in the full year of 2024 was RMB2.01 billion (US$274.7
million), compared with RMB2.06
billion in the full year of 2023. During the full year of
2024, the Company obtained new debt financing, refinancing
facilities and other financings of RMB5.68
billion (US$777.7
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 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, March 12,
2025, or 8:00 PM Beijing Time
on Wednesday, March 12, 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/10045747-6dg8fh.html
Chinese line (listen-only mode):
https://s1.c-conf.com/diamondpass/10045749-w8ghr5.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 March 19, 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):
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10045747
|
|
Reply PIN (Chinese
line):
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10045749
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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
RMB7.2993 to US$1.00, the noon buying rate in effect on
December 31, 2024, in the H.10
statistical release of the Federal Reserve Board. The Company makes
no representation that the RMB or USD amounts referred 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,
2023
|
|
December 31,
2024
|
|
|
RMB
|
|
RMB
|
|
US$
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
2,243,537
|
|
1,492,436
|
|
204,463
|
|
Restricted
cash
|
|
2,854,568
|
|
545,795
|
|
74,774
|
|
Accounts and
notes receivable, net
|
|
1,715,975
|
|
1,655,984
|
|
226,869
|
|
Short-term
Investments
|
|
356,820
|
|
-
|
|
-
|
|
Prepaid expenses
and other current assets
|
|
2,375,341
|
|
2,789,573
|
|
382,171
|
|
Amounts due from
related parties
|
|
277,237
|
|
336,360
|
|
46,081
|
|
Total current
assets
|
|
9,823,478
|
|
6,820,148
|
|
934,358
|
|
|
|
|
|
|
|
|
Non-current
assets:
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
13,024,393
|
|
17,216,635
|
|
2,358,669
|
|
Intangible
assets, net
|
|
1,383,406
|
|
1,403,787
|
|
192,318
|
|
Land use rights,
net
|
|
602,503
|
|
766,213
|
|
104,971
|
|
Operating lease
right-of-use assets, net
|
|
4,012,329
|
|
4,618,212
|
|
632,692
|
|
Derivative
financial instruments
|
|
-
|
|
6,768
|
|
927
|
|
Restricted
cash
|
|
882
|
|
42,842
|
|
5,869
|
|
Deferred tax
assets, net
|
|
247,644
|
|
306,623
|
|
42,007
|
|
Long-term
investments, net
|
|
757,949
|
|
794,688
|
|
108,872
|
|
Other non-current
assets
|
|
533,319
|
|
381,126
|
|
52,214
|
|
Total
non-current assets
|
|
20,562,425
|
|
25,536,894
|
|
3,498,539
|
|
Total
assets
|
|
30,385,903
|
|
32,357,042
|
|
4,432,897
|
|
|
|
|
|
|
|
|
Liabilities
and Shareholders' Equity
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Short-term bank
borrowings
|
|
30,000
|
|
589,000
|
|
80,693
|
|
Accounts and
notes payable
|
|
696,177
|
|
709,260
|
|
97,168
|
|
Accrued expenses
and other payables
|
|
2,783,102
|
|
3,618,237
|
|
495,696
|
|
Advances from
customers
|
|
1,605,247
|
|
1,378,806
|
|
188,896
|
|
Deferred
revenue
|
|
95,477
|
|
87,830
|
|
12,033
|
|
Income taxes
payable
|
|
35,197
|
|
69,569
|
|
9,531
|
|
Amounts due to
related parties
|
|
356,080
|
|
355,679
|
|
48,728
|
|
Current portion
of long-term borrowings
|
|
723,325
|
|
1,420,190
|
|
194,565
|
|
Current portion
of finance lease liabilities
|
|
115,806
|
|
208,299
|
|
28,537
|
|
Current portion
of deferred government grants
|
|
8,062
|
|
6,727
|
|
922
|
|
Current portion
of operating lease liabilities
|
|
780,164
|
|
899,818
|
|
123,275
|
|
Convertible
promissory notes
|
|
4,208,495
|
|
-
|
|
-
|
|
Total current
liabilities
|
|
11,437,132
|
|
9,343,415
|
|
1,280,044
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
Long-term
borrowings
|
|
5,113,521
|
|
7,767,390
|
|
1,064,128
|
|
Convertible
promissory notes
|
|
1,769,946
|
|
1,897,738
|
|
259,989
|
|
Non-current
portion of finance lease liabilities
|
|
1,159,525
|
|
1,532,309
|
|
209,925
|
|
Unrecognized tax
benefits
|
|
98,457
|
|
107,850
|
|
14,775
|
|
Deferred tax
liabilities
|
|
688,362
|
|
734,404
|
|
100,613
|
|
Deferred
government grants
|
|
145,112
|
|
273,824
|
|
37,514
|
|
Non-current
portion of operating lease liabilities
|
|
3,270,759
|
|
3,779,293
|
|
517,761
|
|
Derivative
liability
|
|
188,706
|
|
-
|
|
-
|
|
Total
non-current liabilities
|
|
12,434,388
|
|
16,092,808
|
|
2,204,705
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
|
|
Ordinary
shares
|
|
107
|
|
112
|
|
15
|
|
Additional
paid-in capital
|
|
17,291,312
|
|
17,298,692
|
|
2,369,911
|
|
Accumulated other
comprehensive loss
|
|
(14,343)
|
|
(18,504)
|
|
(2,535)
|
|
Statutory
reserves
|
|
80,615
|
|
107,380
|
|
14,711
|
|
Accumulated
deficit
|
|
(11,016,323)
|
|
(10,859,888)
|
|
(1,487,799)
|
|
Treasury
stock
|
|
(326,953)
|
|
(161,892)
|
|
(22,179)
|
|
Total VNET
Group, Inc. shareholders'
equity
|
|
6,014,415
|
|
6,365,900
|
|
872,124
|
|
Noncontrolling
interest
|
|
499,968
|
|
554,919
|
|
76,024
|
|
Total
shareholders' equity
|
|
6,514,383
|
|
6,920,819
|
|
948,148
|
|
Total
liabilities and shareholders'
equity
|
|
30,385,903
|
|
32,357,042
|
|
4,432,897
|
|
|
|
|
|
|
|
|
VNET GROUP,
INC.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(Amount in
thousands of Renminbi ("RMB") and US dollars ("US$") except for
number of shares and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
December 31,
2023
|
|
September 30,
2024
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Net
revenues
|
1,898,480
|
|
2,120,794
|
|
2,246,389
|
|
307,754
|
|
7,412,930
|
|
8,259,069
|
|
1,131,488
|
|
Cost of
revenues
|
(1,607,602)
|
|
(1,629,111)
|
|
(1,741,533)
|
|
(238,589)
|
|
(6,120,445)
|
|
(6,426,914)
|
|
(880,484)
|
|
Gross
profit
|
290,878
|
|
491,683
|
|
504,856
|
|
69,165
|
|
1,292,485
|
|
1,832,155
|
|
251,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income (expenses)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
32,293
|
|
11,767
|
|
98,869
|
|
13,545
|
|
106,273
|
|
114,585
|
|
15,698
|
|
Sales and
marketing expenses
|
(73,286)
|
|
(60,700)
|
|
(73,088)
|
|
(10,013)
|
|
(266,207)
|
|
(263,756)
|
|
(36,134)
|
|
Research and
development expenses
|
(80,671)
|
|
(53,127)
|
|
(56,098)
|
|
(7,685)
|
|
(322,220)
|
|
(246,612)
|
|
(33,786)
|
|
General and
administrative expenses
|
(148,455)
|
|
(132,482)
|
|
(192,954)
|
|
(26,435)
|
|
(541,850)
|
|
(659,030)
|
|
(90,287)
|
|
Allowance for
doubtful debt
|
(361,471)
|
|
(65,731)
|
|
(44,590)
|
|
(6,109)
|
|
(368,505)
|
|
(107,899)
|
|
(14,782)
|
|
Impairment of
long-lived assets
|
(506,686)
|
|
-
|
|
-
|
|
-
|
|
(506,686)
|
|
-
|
|
-
|
|
Impairment of
goodwill
|
(1,364,191)
|
|
-
|
|
-
|
|
-
|
|
(1,364,191)
|
|
-
|
|
-
|
|
Total
operating expenses
|
(2,502,467)
|
|
(300,273)
|
|
(267,861)
|
|
(36,697)
|
|
(3,263,386)
|
|
(1,162,712)
|
|
(159,291)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
(loss) profit
|
(2,211,589)
|
|
191,410
|
|
236,995
|
|
32,468
|
|
(1,970,901)
|
|
669,443
|
|
91,713
|
|
Interest
income
|
13,196
|
|
4,218
|
|
6,162
|
|
844
|
|
41,802
|
|
27,958
|
|
3,830
|
|
Interest
expense
|
(78,877)
|
|
(93,996)
|
|
(77,125)
|
|
(10,566)
|
|
(312,172)
|
|
(400,975)
|
|
(54,933)
|
|
Impairment of
long-term investments
|
(51)
|
|
-
|
|
-
|
|
-
|
|
(11,166)
|
|
-
|
|
-
|
|
Other
income
|
4,452
|
|
15,584
|
|
1,855
|
|
254
|
|
27,344
|
|
52,728
|
|
7,225
|
|
Other
expenses
|
(1,199)
|
|
(8,783)
|
|
(10,185)
|
|
(1,395)
|
|
(16,086)
|
|
(27,290)
|
|
(3,739)
|
|
Changes in the
fair value of financial
instruments
|
(187,648)
|
|
(7,107)
|
|
(71,575)
|
|
(9,806)
|
|
(165,930)
|
|
(74,112)
|
|
(10,154)
|
|
Gain on debt
extinguishment
|
-
|
|
246,175
|
|
-
|
|
-
|
|
-
|
|
246,175
|
|
33,726
|
|
Foreign exchange
gain (loss)
|
89,426
|
|
14,833
|
|
(1,327)
|
|
(182)
|
|
(78,965)
|
|
(19,242)
|
|
(2,636)
|
|
(Loss) income
before income taxes
and gain from equity
method
investments
|
(2,372,290)
|
|
362,334
|
|
84,800
|
|
11,617
|
|
(2,486,074)
|
|
474,685
|
|
65,032
|
|
Income tax
expenses
|
(50,626)
|
|
(31,149)
|
|
(82,547)
|
|
(11,309)
|
|
(114,374)
|
|
(234,229)
|
|
(32,089)
|
|
(Loss) gain from
equity method investments
|
(372)
|
|
965
|
|
1,197
|
|
164
|
|
3,279
|
|
7,967
|
|
1,091
|
|
Net (loss)
income
|
(2,423,288)
|
|
332,150
|
|
3,450
|
|
472
|
|
(2,597,169)
|
|
248,423
|
|
34,034
|
|
Net income
attributable to noncontrolling
interest
|
(19,500)
|
|
(14,524)
|
|
(14,546)
|
|
(1,993)
|
|
(46,667)
|
|
(65,223)
|
|
(8,936)
|
|
Net (loss)
income attributable to the
VNET Group,
Inc.
|
(2,442,788)
|
|
317,626
|
|
(11,096)
|
|
(1,521)
|
|
(2,643,836)
|
|
183,200
|
|
25,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(2.65)
|
|
0.20
|
|
(0.01)
|
|
(0.00)
|
|
(2.93)
|
|
0.11
|
|
0.02
|
|
Diluted
|
(2.65)
|
|
0.05
|
|
(0.01)
|
|
(0.00)
|
|
(2.93)
|
|
0.02
|
|
0.00
|
|
Shares used in
(loss) earnings per share
computation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic*
|
923,034,050
|
|
1,602,860,426
|
|
1,608,291,868
|
|
1,608,291,868
|
|
901,143,138
|
|
1,593,594,519
|
|
1,593,594,519
|
|
Diluted*
|
923,034,050
|
|
1,740,565,086
|
|
1,608,291,868
|
|
1,608,291,868
|
|
901,143,138
|
|
1,742,346,367
|
|
1,742,346,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per ADS
(6 ordinary shares equal to 1 ADS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
(15.88)
|
|
1.20
|
|
(0.06)
|
|
(0.01)
|
|
(17.58)
|
|
0.66
|
|
0.12
|
|
Diluted
|
(15.88)
|
|
0.30
|
|
(0.06)
|
|
(0.01)
|
|
(17.58)
|
|
0.12
|
|
0.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Shares used in
(loss) earnings 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$"))
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
December 31,
2023
|
|
September 30,
2024
|
|
December 31,
2024
|
|
December 31,
2023
|
|
December 31,
2024
|
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
RMB
|
|
RMB
|
|
US$
|
|
Gross
profit
|
|
290,878
|
|
491,683
|
|
504,856
|
|
69,165
|
|
1,292,485
|
|
1,832,155
|
|
251,004
|
|
Plus:
depreciation and amortization
|
|
450,859
|
|
368,764
|
|
414,364
|
|
56,768
|
|
1,684,842
|
|
1,500,348
|
|
205,547
|
|
Plus: share-based
compensation
expenses
|
|
-
|
|
234
|
|
4,652
|
|
637
|
|
-
|
|
4,886
|
|
669
|
|
Adjusted cash
gross profit
|
|
741,737
|
|
860,681
|
|
923,872
|
|
126,570
|
|
2,977,327
|
|
3,337,389
|
|
457,220
|
|
Adjusted
cash gross margin
|
|
39.1 %
|
|
40.6 %
|
|
41.1 %
|
|
41.1 %
|
|
40.2 %
|
|
40.4 %
|
|
40.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
(2,502,467)
|
|
(300,273)
|
|
(267,861)
|
|
(36,697)
|
|
(3,263,386)
|
|
(1,162,712)
|
|
(159,291)
|
|
Plus: share-based
compensation
expenses
|
|
9,479
|
|
6,709
|
|
38,243
|
|
5,239
|
|
35,296
|
|
143,671
|
|
19,683
|
|
Plus: allowance
of loan receivables
|
|
287,900
|
|
-
|
|
-
|
|
-
|
|
287,900
|
|
-
|
|
-
|
|
Plus: impairment
of long-lived assets
|
|
506,686
|
|
-
|
|
-
|
|
-
|
|
506,686
|
|
-
|
|
-
|
|
Plus: impairment
of goodwill
|
|
1,364,191
|
|
-
|
|
-
|
|
-
|
|
1,364,191
|
|
-
|
|
-
|
|
Adjusted
operating expenses
|
|
(334,211)
|
|
(293,564)
|
|
(229,618)
|
|
(31,458)
|
|
(1,069,313)
|
|
(1,019,041)
|
|
(139,608)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating (loss)
profit
|
|
(2,211,589)
|
|
191,410
|
|
236,995
|
|
32,468
|
|
(1,970,901)
|
|
669,443
|
|
91,713
|
|
Plus:
depreciation and amortization
|
|
483,579
|
|
396,428
|
|
441,447
|
|
60,478
|
|
1,816,228
|
|
1,611,760
|
|
220,810
|
|
Plus: share-based
compensation
expenses
|
|
9,479
|
|
6,943
|
|
42,895
|
|
5,877
|
|
35,296
|
|
148,557
|
|
20,352
|
|
Plus: allowance
of loan receivable
|
|
287,900
|
|
-
|
|
-
|
|
-
|
|
287,900
|
|
-
|
|
-
|
|
Plus: impairment
of long-lived assets
|
|
506,686
|
|
-
|
|
-
|
|
-
|
|
506,686
|
|
-
|
|
-
|
|
Plus: impairment
of goodwill
|
|
1,364,191
|
|
-
|
|
-
|
|
-
|
|
1,364,191
|
|
-
|
|
-
|
|
Adjusted
EBITDA
|
|
440,246
|
|
594,781
|
|
721,337
|
|
98,823
|
|
2,039,400
|
|
2,429,760
|
|
332,875
|
|
Adjusted
EBITDA margin
|
|
23.2 %
|
|
28.0 %
|
|
32.1 %
|
|
32.1 %
|
|
27.5 %
|
|
29.4 %
|
|
29.4 %
|
|
VNET GROUP,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
(Amount in
thousands of Renminbi ("RMB") and US dollars
("US$"))
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
December 31,
2023
|
|
September 30, 2024
|
|
December 31,
2024
|
|
RMB
|
|
RMB
|
|
RMB
|
|
US$
|
|
CASH FLOWS
FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
(2,423,288)
|
|
332,150
|
|
3,450
|
|
472
|
|
Adjustments to
reconcile net (loss) income to net cash generated from operating
activities:
|
|
|
|
Depreciation and
amortization
|
481,067
|
|
393,719
|
|
438,740
|
|
60,107
|
|
Share-based compensation
expenses
|
9,479
|
|
6,943
|
|
42,895
|
|
5,877
|
|
Others
|
2,333,785
|
|
(107,550)
|
|
146,514
|
|
20,072
|
|
Changes in
operating assets and liabilities
|
|
|
|
|
|
|
|
|
Accounts and notes
receivable
|
311,035
|
|
(138,968)
|
|
161,426
|
|
22,115
|
|
Prepaid expenses and other
current assets
|
(9,076)
|
|
116,055
|
|
122,920
|
|
16,841
|
|
Accounts and notes
payable
|
(76,250)
|
|
8,463
|
|
(19,070)
|
|
(2,613)
|
|
Accrued expenses and other
payables
|
68,523
|
|
65,481
|
|
120,840
|
|
16,555
|
|
Deferred
revenue
|
(24,005)
|
|
2,300
|
|
486
|
|
67
|
|
Advances from
customers
|
31,500
|
|
222,083
|
|
(374,129)
|
|
(51,255)
|
|
Others
|
27,910
|
|
(140,310)
|
|
(71,836)
|
|
(9,841)
|
|
Net cash
generated from operating activities
|
730,680
|
|
760,366
|
|
572,236
|
|
78,397
|
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchases of
property and equipment
|
(1,017,474)
|
|
(1,426,892)
|
|
(1,492,972)
|
|
(204,536)
|
|
Purchases of
intangible assets
|
(20,188)
|
|
(33,806)
|
|
(82,693)
|
|
(11,329)
|
|
(Payments for)
proceeds from investments
|
(346,056)
|
|
92,426
|
|
22,087
|
|
3,026
|
|
(Payments for)
proceeds from other investing activities
|
(18,217)
|
|
31,762
|
|
177,418
|
|
24,306
|
|
Net cash used
in investing activities
|
(1,401,935)
|
|
(1,336,510)
|
|
(1,376,160)
|
|
(188,533)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from
bank borrowings
|
638,706
|
|
745,534
|
|
1,240,147
|
|
169,899
|
|
Repayments of
bank borrowings
|
(85,640)
|
|
(129,893)
|
|
(366,664)
|
|
(50,233)
|
|
Proceeds from
issuance of ordinary shares
|
2,120,243
|
|
-
|
|
-
|
|
-
|
|
Payments for
finance leases
|
(28,482)
|
|
(27,669)
|
|
(25,789)
|
|
(3,533)
|
|
Proceeds from
(payments for) other financing activities
|
112,846
|
|
(59,645)
|
|
(62,448)
|
|
(8,555)
|
|
Net cash
generated from financing activities
|
2,757,673
|
|
528,327
|
|
785,246
|
|
107,578
|
|
|
|
|
|
|
|
|
|
Effect of
foreign exchange rate changes on
cash, cash
equivalents and restricted cash
|
(11,645)
|
|
(6,049)
|
|
17,784
|
|
2,436
|
|
Net increase
(decrease) in cash, cash
equivalents and
restricted cash
|
2,074,773
|
|
(53,866)
|
|
(894)
|
|
(122)
|
|
Cash, cash
equivalents and restricted cash at
beginning of
period
|
3,024,214
|
|
2,135,833
|
|
2,081,967
|
|
285,228
|
|
Cash, cash
equivalents and restricted cash at
end of
period
|
5,098,987
|
|
2,081,967
|
|
2,081,073
|
|
285,106
|
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-fourth-quarter-and-full-year-2024-financial-results-302399672.html
SOURCE VNET Group, Inc.
