BEIJING, Aug. 27, 2024 /PRNewswire/ — VNET Workforce, Inc. (Nasdaq: VNET) (“VNET” or the “Company”), a eminent carrier- and cloud-neutral web knowledge heart services and products supplier in China, as of late introduced its unaudited monetary effects for the second one quarter ended June 30, 2024.

“We delivered another solid quarter through continued strong execution of our effective dual-core development strategy,” mentioned Josh Sheng Chen, Founder, Government Chairperson and meantime Eminent Government Officer of VNET. “The wholesale IDC business remained our key growth driver, highlighted by three new orders totaling 235MW for our Ulanqab IDC Campus in the Greater Beijing Area. Climbing utilization rates and a high pre-commitment rate for capacity under construction demonstrate our reliable, high-quality IDC services’ enduring customer appeal in the competitive market. Furthermore, we advanced our AI data center development with steady progress on our green, high-tech Ulanqab IDC Campus, enabling us to seamlessly meet the increasing AI-driven demand. Going forward, we will continue to strengthen our innovative service offerings, vast high-power density resources and diverse AI-related capabilities to drive our healthy development and create value for all of our stakeholders.” 

Qiyu Wang, Eminent Monetary Officer of VNET, commented, “In the second quarter, we remained focused on high-quality revenue businesses while enhancing efficiency and profitability, tactics that continued to yield positive outcomes. Our total net revenues increased by 9.4% year over year to RMB1.99 billion, mainly driven by wholesale revenue growth of 81% year over year, while operating expenses decreased by 7.7% year over year and 36.8% quarter over quarter. Our adjusted EBITDA also grew by 7.3% year over year to RMB573.8 million. In addition, we recorded a net income of RMB71.8 million in the second quarter, a significant improvement from the net loss of RMB159.0 million in the first quarter of 2024, representing a quarter over quarter increase of RMB230.9 million, thanks to our consistent operational improvements. Supported by our robust business fundamentals and healthy cash position, we will continue to invest in our core capabilities and AI-driven opportunities, propelling high-quality, sustainable growth.”

2d Quarter 2024 Monetary Highlights

• Overall web revenues greater by way of 9.4% to RMB1.99 billion (US$274.4 million) from RMB1.82 billion in the similar duration of 2023.
  • Web revenues from the IDC industry^[1] greater by way of 12.1% to RMB1.37 billion (US$188.1 million) from RMB1.22 billion in the similar duration of 2023.
    • Web revenues from the wholesale IDC industry (“wholesale revenues”) greater by way of 81.0% to RMB402.0 million (US$55.3 million) from RMB222.1 million in the similar duration of 2023.
    • Web revenues from the retail IDC industry (“retail revenues”) diminished by way of 3.2% to RMB964.8 million (US$132.8 million) from RMB996.6 million in the similar duration of 2023.
  • Web revenues from the non-IDC industry^[2] greater by way of 4.0% to RMB627.0 million (US$86.3 million) from RMB603.1 million in the similar duration of 2023.
• Adjusted money rude benefit (non-GAAP) greater by way of 6.0% to RMB787.3 million (US$108.3 million) from RMB742.9 million in the similar duration of 2023. Adjusted money rude margin (non-GAAP) was once 39.5%, when put next with 40.8% in the similar duration of 2023.
• Adjusted EBITDA (non-GAAP) greater by way of 7.3% to RMB573.8 million (US$79.0 million) from RMB535.0 million in the similar duration of 2023. Adjusted EBITDA margin (non-GAAP) was once 28.8%, when put next with 29.4% in the similar duration of 2023.
• Web source of revenue greater by way of RMB309.4 million and RMB230.9 million to RMB71.8 million (US$9.9 million) in the second one quarter, when put next with a web lack of RMB237.6 million in the similar duration of 2023 and a web lack of RMB159.0 million within the first quarter of 2024, respectively.

2d Quarter 2024 Operational Highlights

Wholesale IDC Industry^[3]

• Capability in provider was once 332MW as of June 30, 2024, when put next with 332MW as of March 31, 2024, and 224MW as of June 30, 2023. Capability beneath building was once 279MW as of June 30, 2024.
• Capability used by consumers reached 252MW as of June 30, 2024, when put next with 236MW as of March 31, 2024, and 142MW as of June 30, 2023. The sequential building up right through the second one quarter of 2024 was once 16MW, which was once principally contributed by way of E-JS Campus 02 C knowledge heart.
• Usage price^[4] of wholesale capability was once 75.9% as of June 30, 2024, when put next with 71.0% as of March 31, 2024, and 63.4% as of June 30, 2023.
  • Usage price of mature wholesale capability^[5] was once 94.9% as of June 30, 2024, when put next with 94.6% as of March 31, 2024, and 94.2% as of June 30, 2023.
  • Usage price of ramp-up wholesale capability^[6] was once 45.7% as of June 30, 2024, when put next with 33.6% as of March 31, 2024, and 39.9% as of June 30, 2023.
• Overall capability dedicated^[7] was once 326MW as of June 30, 2024, when put next with 326MW as of March 31, 2024, and 194MW as of June 30, 2023.
• Constancy price^[8] for capability in provider was once 98.1% as of June 30, 2024, when put next with 98.1% as of March 31, 2024 and 86.7% as of June 30, 2023.
• Overall capability pre-committed^[9] was once 238MW and pre-commitment price^[10] for capability beneath building was once 85.5% as of June 30, 2024.

Retail IDC Industry^[11]

• Capability in provider was once 52,177 cupboards as of June 30, 2024, when put next with 52,068 cupboards as of March 31, 2024, and 53,702 cupboards as of June 30, 2023.
• Capability used by consumers reached 33,253 cupboards as of June 30, 2024, when put next with 33,312 cupboards as of March 31, 2024, and 33,320 cupboards as of June 30, 2023.
• Usage price of retail capability was once 63.7% as of June 30, 2024, when put next with 64.0% as of March 31, 2024, and 62.0% as of June 30, 2023.
  • Usage price of mature retail capability^[12] was once 72.5% as of June 30, 2024, when put next with 72.8% as of March 31, 2024, and 73.5% as of June 30, 2023.
  • Usage price of ramp-up retail capability^[13] was once 12.7% as of June 30, 2024, when put next with 13.0% as of March 31, 2024, and 16.3% as of June 30, 2023.
• Per thirty days routine income (MRR) in step with retail cupboard was once RMB8,753 in the second one quarter of 2024, when put next with RMB8,742 within the first quarter of 2024 and RMB8,931 in the second one quarter of 2023.

2d Quarter 2024 Monetary Effects

TOTAL NET REVENUES: Overall web revenues in the second one quarter of 2024 had been RMB1.99 billion (US$274.4 million), representing an building up of 9.4% from RMB1.82 billion in the similar duration of 2023. The year-over-year building up was once principally pushed by way of the ongoing expansion of our wholesale IDC industry.

Web revenues from IDC industry greater by way of 12.1% to RMB1.37 billion (US$188.1 million) from RMB1.22 billion in the similar duration of 2023. The year-over-year building up was once principally pushed by way of an building up in wholesale revenues and in part offset by way of a cut in retail revenues.

• Wholesale revenues greater by way of 81.0% to RMB402.0 million (US$55.3 million) from RMB222.1 million in the similar duration of 2023.
• Retail revenues diminished to RMB964.8 million (US$132.8 million) from RMB996.6 million in the similar duration of 2023.

Web revenues from non-IDC industry greater by way of 4.0% to RMB627.0 million (US$86.3 million) from RMB603.1 million in the similar duration of 2023. The year-over-year building up was once pushed by way of cloud and VPN companies.

GROSS PROFIT: Improper benefit in the second one quarter of 2024 was once RMB424.9 million (US$58.5 million), representing an building up of 24.0% from RMB342.7 million in the similar duration of 2023. Improper margin in the second one quarter of 2024 was once 21.3%, when put next with 18.8% in the similar duration of 2023. The year-over-year building up was once basically due to a discount in depreciation expense because of the exchange within the estimated helpful lives of feature and gear inauguration from January 1, 2024.

ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation, amortization, and share-based repayment bills, was once RMB787.3 million (US$108.3 million) in the second one quarter of 2024, when put next with RMB742.9 million in the similar duration of 2023. Adjusted money rude margin (non-GAAP) in the second one quarter of 2024 was once 39.5%, when put next with 40.8% in the similar duration of 2023.

OPERATING EXPENSES: Overall working bills in the second one quarter of 2024 had been RMB230.3 million (US$31.7 million), when put next with RMB249.5 million in the similar duration of 2023. The cut in working bills was once basically because of a cut in skilled provider charges and team of workers prices.

Gross sales and advertising bills had been RMB58.2 million (US$8.0 million) in the second one quarter of 2024, when put next with RMB63.1 million in the similar duration of 2023.

Analysis and construction bills had been RMB62.0 million (US$8.5 million) in the second one quarter of 2024, when put next with RMB81.1 million in the similar duration of 2023.

Common and administrative bills had been RMB107.3 million (US$14.8 million) in the second one quarter of 2024, when put next with RMB128.0 million in the similar duration of 2023.

ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based repayment bills, had been RMB243.2 million (US$33.5 million) in the second one quarter of 2024, when put next with RMB241.5 million in the similar duration of 2023. As a proportion of overall web revenues, adjusted working bills (non-GAAP) in the second one quarter of 2024 had been 12.2%, when put next with 13.3% in the similar duration of 2023.

ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the second one quarter of 2024 was once RMB573.8 million (US$79.0 million), representing an building up of seven.3% from RMB535.0 million in the similar duration of 2023. Adjusted EBITDA margin (non-GAAP) in the second one quarter of 2024 was once 28.8%, when put next with 29.4% in the similar duration of 2023.

NET INCOME/LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Web source of revenue due to VNET Workforce, Inc. in the second one quarter of 2024 was once RMB63.7 million (US$8.8 million), when put next with a web loss due to VNET Workforce, Inc. of RMB232.9 million in the similar duration of 2023. The year-over-year building up was once principally because of our constant operational growth and reduces in gross sales and advertising bills, analysis and construction bills, common and administrative bills and foreign currency loss.

EARNINGS PER SHARE: Modest and diluted profits in step with proportion in the second one quarter of 2024 had been each RMB0.04 (US$0.01), identical to each RMB0.24 (US$0.06) in step with American depositary proportion (“ADS”). Each and every ADS represents six Magnificence A familiar stocks. Diluted profits in step with proportion is calculated the use of adjusted web source of revenue due to familiar shareholders divided by way of the weighted reasonable choice of diluted stocks exceptional.

LIQUIDITY: As of June 30, 2024, the combination quantity of the Corporate’s money and money equivalents, limited money and momentary investments was once RMB2.22 billion (US$306.0 million).

Overall momentary debt consisting of momentary deposit borrowings and the modern portion of long-term borrowings was once RMB1.67 billion (US$230.1 million). Overall long-term debt was once RMB8.45 billion (US$1.16 billion), created from long-term borrowings of RMB6.67 billion (US$917.7 million) and convertible promissory notes of RMB1.78 billion (US$245.1 million).

Web money generated from working actions in the second one quarter of 2024 was once RMB405.2 million (US$55.8 million), when put next with RMB423.5 million in the similar duration of 2023. All the way through the second one quarter of 2024, the Corporate bought unutilized debt financing, refinancing amenities and alternative financings of RMB1.45 billion (US$199.3 million).

Industry Outlook

The Corporate expects overall web revenues for 2024 to be between RMB7,800 million to RMB8,000 million, representing year-over-year expansion of five.2% to 7.9%, and changed EBITDA (non-GAAP) to be within the territory of RMB2,220 million to RMB2,280 million, representing year-over-year expansion of 8.9% to 11.8%. The above outlook residue unchanged from the prior to now equipped estimates.

The forecast displays the Corporate’s modern and initial perspectives in the marketplace and its operational situations and is topic to modify.

Convention Name

The Corporate’s control will host an profits convention name at 9:00 PM U.S. Japanese Month on Tuesday, August 27, 2024, or 9:00 AM Beijing Month on Wednesday, August 28, 2024.

For individuals who need to connect the decision, please get right of entry to the hyperlinks equipped beneath to finish the net registration procedure.

English layout:
https://s1.c-conf.com/diamondpass/10041484-y4obcl.html

Chinese language layout (listen-only method):
https://s1.c-conf.com/diamondpass/10041485-qdkvjp.html

Individuals can choose from the English and Chinese language choices for pre-registration above. Please notice that the Chinese language choice will likely be in listen-only method. Upon registration, each and every player will obtain an e mail containing main points for the convention name, together with dial-in numbers, a convention name passcode and a novel get right of entry to PIN, which will likely be impaired to connect the convention name.

Moreover, a are living and archived webcast of the convention name will likely be to be had at the Corporate’s investor family members web site at http://ir.vnet.com.

A replay of the convention name will likely be available thru September 4, 2024, by way of dialing refer to numbers:

Non-GAAP Disclosure

In comparing its industry, VNET considers and makes use of refer to non-GAAP measures outlined as non-GAAP monetary measures by way of the U.S. Securities and Trade Fee as a supplemental measure to study and assess its working efficiency: adjusted money rude benefit, adjusted money rude margin, adjusted working bills, adjusted EBITDA and changed EBITDA margin. The presentation of those non-GAAP monetary measures isn’t supposed to be regarded as in isolation or as an alternative choice to the monetary data ready and offered in line with U.S. GAAP. For more info on those non-GAAP monetary measures, refer to the desk captioned “Reconciliations of GAAP and non-GAAP results” eager forth on the terminate of this press let go.

The non-GAAP monetary measures are equipped as extra data to assistance buyers evaluate industry traits amongst other reporting classes on a constant foundation and to make stronger buyers’ total figuring out of the Corporate’s modern monetary efficiency and possibilities for the life. Those non-GAAP monetary measures must be regarded as along with effects ready in line with U.S. GAAP, however must no longer be regarded as an alternative choice to, or superb to, U.S. GAAP effects. As well as, the Corporate’s calculation of the non-GAAP monetary measures is also other from the calculation impaired by way of alternative corporations, and subsequently comparison is also restricted.

Trade Fee

This announcement accommodates translations of sure RMB quantities into U.S. bucks (“USD”) at specified charges only for the benefit of the reader. Except in a different way said, all translations from RMB to USD had been made on the price of RMB7.2672 to US$1.00, the midday purchasing price in impact on June 28, 2024, within the H.10 statistical let go of the Federal Book Board. The Corporate makes negative illustration that the RMB or USD quantities referred may well be transformed into USD or RMB, because the case is also, at any explicit price or in any respect. For analytical presentation, all percentages are calculated the use of the numbers offered within the monetary statements contained on this profits let go.

Observation Relating to Unaudited Condensed Monetary Knowledge

The unaudited monetary data eager forth above is initial and topic to attainable changes. Changes to the consolidated monetary statements is also recognized when audit paintings has been carried out for the Corporate’s year-end audit, which might lead to vital variations from this initial unaudited condensed monetary data.

About VNET

VNET Workforce, Inc. is a eminent carrier- and cloud-neutral web knowledge heart services and products supplier in China. VNET supplies webhosting and indistinguishable services and products, together with IDC services and products, cloud services and products, and industry VPN services and products to enhance the reliability, safety, and pace of its consumers’ web infrastructure. Consumers would possibly find their servers and gear in VNET’s knowledge facilities and join to China’s web spine. VNET operates in additional than 30 towns all the way through China, servicing a assorted and dependable bottom of over 7,500 webhosting and indistinguishable endeavor consumers that span various industries starting from web corporations to executive entities and blue-chip enterprises to small- to mid-sized enterprises.

Safeguard Harbor Observation

This announcement accommodates forward-looking statements. Those forward-looking statements are made beneath the “safe harbor” provisions of the U.S. Non-public Securities Litigation Reform Business of 1995. Those statements will also be recognized by way of terminology similar to “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “target,” “believes,” “estimates” and indistinguishable statements. Amongst alternative issues, quotations from control on this announcement in addition to VNET’s strategic and operational plans include forward-looking statements. VNET might also form written or oral forward-looking statements in its reviews filed with, or furnished to, the U.S. Securities and Trade Fee, in its annual reviews to shareholders, in press releases and alternative written fabrics and in oral statements made by way of its officials, administrators or staff to 3rd events. Statements that aren’t ancient details, together with statements about VNET’s ideals and expectancies, are forward-looking statements. Ahead-looking statements contain inherent dangers and uncertainties. Quite a lot of components may just motive fresh effects to range materially from the ones contained in any forward-looking remark, together with however no longer restricted to refer to: VNET’s objectives and methods; VNET’s liquidity situations; VNET’s enlargement plans; the predicted expansion of the information heart services and products marketplace; expectancies relating to call for for, and marketplace acceptance of, VNET’s services and products; VNET’s expectancies relating to holding and nutritious its relationships with consumers; VNET’s plans to spend money on analysis and construction to make stronger its resolution and repair choices; and common financial and industry situations within the areas the place VNET supplies answers and services and products. Additional data relating to those and alternative dangers is incorporated in VNET’s reviews filed with, or furnished to, the U.S. Securities and Trade Fee. All data equipped on this press let go is as of the month of this press let go, and VNET undertakes negative responsibility to replace such data, except for as required beneath acceptable regulation.

Investor Family members Touch:

Xinyuan Liu
Tel: +86 10 8456 2121
E-mail: [email protected]

SOURCE VNET Workforce, Inc.