Q4 2024 VNET Group Inc Earnings Call

March 12, 2025

Levine: Thank you for standing by for the fourth quarter and full year 'twenty 'twenty four earnings conference calls Levine at group incorporated.

Levine: After the managements prepared remarks, there will be a question and answer session.

Levine: Ladies night, the Chinese line is in listen only mode.

Levine: If you wish to ask questions. Please dial in through the English line.

Speaker Change: Participants from our management include Mr. Cheema rotating president Mr. <unk>, Wang Chief Financial Officer, Mr. Qi, Yang Senior Vice President and MS. Shen Yun Lu head of Investor Relations of the company.

Please note that today's conference call is being recorded.

Speaker Change: I will now turn the call are that to the first speaker today Ms. Chignon Lu. Please go ahead.

Speaker Change: Okay.

Chignon Lu: Thank you operator, Hello, everyone and welcome to our fourth quarter and full year 'twenty tangible earnings conference call.

Chignon Lu: Our earnings release was distributed earlier today and you can find a copy of a site that's was unusual activity.

Speaker Change: Please note that today's call will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995.

Speaker Change: All forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.

A detailed discussion of these risks and uncertainties. Please refer to our latest annual report and other documents filed with SEC.

Speaker Change: <unk> does not undertake any obligations to update any forward looking statements, except as required under applicable law.

Speaker Change: Please also note that we now earnings press release and this conference call include the disclosure audited GAAP and non-GAAP financial measures.

Speaker Change: The net earnings press release contains a reconciliation okay, oh, they didn't get matters to the unaudited GAAP measures.

Speaker Change: A summary presentation, which we will refer to during this conference call can be viewed and downloaded from our AMR side at all.

Speaker Change: There'll be no dotcom.

Speaker Change: Now, let's get started with todays presentation. Mr. Mok. Please go ahead.

Speaker Change: Good morning, and good evening.

Speaker Change: Everyone. Thank you for joining our call today.

Speaker Change: I'd like to begin with several key achievements from the.

Speaker Change: Fourth quarter and full year performance in 2024.

Speaker Change: Firstly on the wholesale business I believe.

Speaker Change: Well, let me tell me as we amended stable.

Speaker Change: Oh net revenue.

Speaker Change: Yeah.

Speaker Change: Significantly surpassed our previous guidance suddenly we have recently secured a total of 252.

Speaker Change: They don't want a motor from customers all the Ethernet quality beauty and tonnages 20 industries.

Speaker Change: Yeah, 2025, almost literally plant and orders from customers for the next 12 months it seems that potentially increases.

Speaker Change: I'll provide a detailed overview of these achievements.

Speaker Change: Let's turn to slide five we closed 2034.

Speaker Change: Strong fourth quarter highlighted by our wholesale IDC business remarks.

Speaker Change: As we identified Oh nice.

Speaker Change: Emerging market opportunities, especially technology driving the demand that's at December 31.

Speaker Change: 2024, although wholesale capacity.

Speaker Change: Increased significantly lessened by Henry and 27 megawatt quarter over quarter to 486 megawatts.

Speaker Change: They'll come to utilize reached 353 megawatts increasing by.

Speaker Change: Three megawatt quarter over quarter, thanks to strong customer demand for wholesale data centers.

Speaker Change: A notable uptake in our wholesale customers will be pace recently accelerating to six to 12 months from around.

Speaker Change: 24 months in the past.

Speaker Change: All our retail OTC business continued to progress nicely as of December 31, 2020 for all the retail capacity service was 52, both of them are hedged at a certain.

Speaker Change: We still do depend on is decreasing by 212 year over year and 189 quarter over quarter.

Speaker Change: We also believe our impressive financial results for the fourth quarter and full year.

Speaker Change: Let's move on to slide six our net revenue increased by 18, 3% year over year to two two.

Speaker Change: <unk> 5 billion RMB for the fourth quarter, notably revenue from the wholesale business reached a record high at least.

Speaker Change: 65 million RMB, one quarter, representing almost twice a year over year.

Speaker Change: 425 pounds per cent for any quarter of 'twenty 'twenty four.

Speaker Change: Adjusted EBITDA for the fourth quarter also increased by 63 pumps, 8% year over year to 721 3 million RMB, mainly due to our wholesale IDC business ran its course.

Speaker Change: Adjusted EBITDA margin for the fourth quarter increased by nearly 10% year over year to 32 pump, 11% for the full year, we delivered net revenue of eight pumps, two 6 billion RMB.

Speaker Change: RMB.

Speaker Change: 11 harmful percent year over year, and adjusted EBITDA of two pumps falsely beating RMB up.

Speaker Change: 19 under 1% year over year, both exceeding the high end of increased guidance, we provided last quarter.

Meanwhile, we achieved our full year net profit of 248 million RMB, marking a tender wrong from NEC doors in 2023 through continuous profitability improvement.

Speaker Change: Moving on to our new older ways of lifestyle or high performance defenders outstanding to anywhere capabilities and premium services.

Speaker Change: Yields to attract quality orders in the fourth quarter, we secured 32 megawatts from existing Ethernet culture.

Speaker Change: The capacity in the younger they really went down and one of a retail center located in the Greater Bay area also we one pumps that mega watts older on a new customer.

Speaker Change: That it is driving industry given the corner.

Speaker Change: Meanwhile.

Speaker Change: We signed a framework agreement with this customer for hundreds of megawatts of capacity, including 28 megawatts owner to be delivered in the fourth quarter of 2025. Additionally, we also kills 55 megawatts.

Speaker Change: A leading cloud computing customer in this region, demonstrating our customers' deep and enduring trust high quality services. Furthermore, we recently re 64 megawatts wholesale older format Internet customer for the project.

Speaker Change: In Hubei province, with our joint venture partner <unk>. These joint venture and the loss to serve more customers, while minimizing the pet owner.

Balance sheet, providing an efficient means of core customer base and optimizing our business lay out.

Speaker Change: Looking ahead, we will continue utilizing joint venture structures to further enhance our efficiency and to facilitate high quality business development now moving to our full year guidance for 2025 on slide eight we paid a total net revenues for 2025 to be between nine.

Speaker Change: One P into nighttime sleep Inn, RMB, representing year over year growth of 10% to 13% adjusted EBITDA to be in a range of two 7 billion to two pumps.

Speaker Change: Yeah.

Speaker Change: He said he year over year.

Speaker Change: 15% to 18%.

Speaker Change: Based on the new owners and deliberate plan, although capital expenditure for 2025 is expected to be in the range of 10 billion to 12 billion RMB representing year over year growth of 101% to 141%.

Speaker Change: We expect to deliver 400 to 450 megawatts in the next 12 months.

Speaker Change: Please go ahead.

Speaker Change: Countries and a 61% to 100 at a 94%.

Speaker Change: 'twenty 'twenty four total deliveries will.

Moving into 2025, we are seeing persistent high demand for high performance data center with recent breakthroughs baidu stake propellants domestic development and declining the IV the industry's rapid growth as such we are confident that the mask growth potential in China I think the market.

Speaker Change: <unk> is poised to be for the unlocked it let's take a closer look at our recent Alberta regions on slide nine starting with Pip States impact.

Speaker Change: <unk> six in a reshaped achievements are significantly bolstered confidence in domestic AI development Catalyzing, a surge in acreage demand and enterprises equals he had them for Monday, a AI inquiry launch CFP Internet enterprises, and the small medium enterprises.

Speaker Change: Keep safe and we take models and technologies.

Speaker Change: Efficiency and reducing both cost and dependencies on.

Speaker Change: Our high performance chips for training and English eating all become easier for companies to execute their AI strategies triggering wider adoption.

Speaker Change: Industry wide and the greater need to build out our infrastructure.

Speaker Change: No all these barriers to entry for AI and <unk>.

Speaker Change: Is greater demand for on a reliable wholesale IDC services. Furthermore, as more companies integrate AI into their operations with demand if it pays to search we have already observed significant.

Speaker Change: Demand from small and medium sized enterprises for printed deployment of the stake we expect these positive market trends to persist for the foreseeable future our future.

Speaker Change: An exciting business opportunities for our retail OTC business, we don't see these opportunities to effectively have all the materials. They center utilization rate and I know laying a solid foundation for our long term business development.

Speaker Change: Let's turn to slide 10 as.

Speaker Change: As we have shared previously the Yahoo went downtown and great Beijing area, our core business meetings, the layout of our wholesale capacity in service.

Speaker Change: Likely pilots in two regions with a proportion of capacity under construction in the Greek Beijing area increasing.

Speaker Change: On a related note industrial research suggest that overall utilization rates at China State Center.

Speaker Change: Third to increase steadily tier one cities with wideband digital economies are expected to begin experiencing life. After high performance data center eating to learn AI applications as well he treats business expand.

Speaker Change: Most both physically as a crucial area for the development of China's AI Ethernet and high technology industry at least 18 region. If everything stayed equals eight eight centered adoption and utilization rates with the cheapening applications generally take AI and in Hoffman of computing power.

Speaker Change: And the network infrastructure, the overall utilization rate of wholesale data center in great. Beijing area is projected to reach 85% earlier as 2025, marking the first potential supply shortage in the market.

Speaker Change: And the young River Delta region, a new wave of structural upgrades in AI technology, we are temporarily relieve pressure on the supply demand imbalance in 2025, even 10 vehicles in demand. The overall utilization rate of wholesale data center, a younger you may want to add a leader ASE.

Speaker Change: He's put it to reach 85% by 2026 as we support these area will also face scarring Fridays.

Speaker Change: As a leading player in the computing infrastructure industry, we have a clear growth path for the I think they'd be things are strong delivery and the service capabilities position us well to capture bucket opportunities stemming from this trial. It is driving almost a pinhole calls now.

Speaker Change: Now, let's delve into our business updates starting with our wholesale business on slide 11.

Speaker Change: The company's primary growth engine of the wholesale business achieved outstanding fourth quarter yourself in terms of both revenue, which reached 665 million RMB and of course race with accelerated to 100 and twenty-five pump 4% year over year.

Speaker Change: This segment is thriving as high performance ITC services remain in high demand across the market, especially as leading Internet players continues to deepen their investment in AI for their driving demand growth to meet this demand we increased capacity in service during the quarter by our Henry under.

Speaker Change: 27 megawatts to 486 megawatts. Meanwhile, capacity utilized rose by 73 megawatts to 353 megawatts, mainly driven by high utilization and the faster than expected moving Oh Gee as campus O to O the wholesale busy.

Speaker Change: Utilization rate decreased slightly to 72 pumps, 6% due to all the delivery of 127 megawatts concentrated in the fourth quarter of 2024.

Speaker Change: We also delivered a mature capacity utilization rate of 95 pumps, 6%.

Speaker Change: Relatively high level, and I ramp up capacity utilization rate of 34%.

Speaker Change: We have a clear path for wholesale data center capacity, let's move on to Slide 12, we made 10 days on a growth trend in overall wholesale de central capacity with 486 megawatts in services and to utilize the capacity increasing to 353 megawatts, but.

Speaker Change: At the end of the fourth quarter.

Speaker Change: Although capacity under construction was 406 megawatts in the fourth quarter, we saw a pre commitment rate for capacity under construction.

Speaker Change: 82 pond, 9% by the end of December.

Speaker Change: Additionally capacity held for short term filter development increased sequentially by 17, five megawatts to 267 megawatts.

Speaker Change: Really due to an abundance of demand with highest certainty.

Speaker Change: Mystery AI development driving greater market demand for IDC services, we will continue to press forward with a robust expansion plan for wholesale data center capacity laying a foundation for further business schools.

Speaker Change: Moving to our retail OTC business on slide 13.

Speaker Change: <unk> business remains stable and continued to progress since late in the fourth quarter retail capacity in service was 52 cell death, and 107 tenants with.

33, solvents, and 68 utilized cutting for utilization rate of 63 pump, 5% as of the end of December I'm, Harper, which he'll cabinet increased slightly to 8000 and 794 RMB this quarter.

Speaker Change: Turning to our delivery pad on slide 14 in 2024, we successfully brought a total of 153 megawatts into services showcasing of our robot and the efficiency do you already cook capabilities and a deep commitment to meeting customer demand.

Speaker Change: <unk> hundred 27 megawatts during the fourth quarter and 26 megawatts in the first nine months.

Speaker Change: Surpassing our guidance.

Speaker Change: For 2025 customer demand for high performance reliable IDC resources remained strong and we expanded our deliveries we all set a new annual record.

Speaker Change: We currently have eight datacenters and the construction and plan to deliver 406 megawatts of capacity over the next 12 months all around 140 megawatts. During the first half of 2025 and our one 266 megawatts in total during the second half.

Speaker Change: 2025, reflecting strong customer demand and our outstanding delivery capabilities.

Speaker Change: Non IPC business also remains a key component of our overall business schools, notably we continued to expand all the.

Aegean business customer space by acquiring new customers from the medical technology professional services and consulting industries four Bcf premium dedicated Internet services E V P L and SD Wan services.

Speaker Change: In conclusion or effective new close strategy and strong execution drove excellent fourth quarter and the full year 'twenty 'twenty four yourself moving into 2025, we remain confident in China schools potential anti surge in demand in the ITC industry due to the AI ball tour.

Speaker Change: Capitalized on this opportunity we will continue to innovate strengthening all the kind of capability and is pending on the high performance data Center network to offer our customer solution designed to seamlessly address their demand in the AI era as always we are committed to delivering sustainable.

Speaker Change: Long term value to one of our stakeholders.

Speaker Change: Now I will turn the call over to oversee F O cheesy for further discussion of our operating and financial performance. Thank you everyone.

Speaker Change: Good morning, and good evening, everyone before we start the detailed discussion of our fourth quarter performance. Please note that unless otherwise stated all the financials. We present today are for the fourth quarter and the full year of 2024 and argument would be terms. Furthermore, unless otherwise.

Speaker Change: So for Q1 growth rates, I'm, removing or on a year over year basis.

Speaker Change: Let's turn to slide 16 exceeded our expectations for the full year 2010 people.

Speaker Change: Capped by a strong fourth quarter as we remain focused on high quality revenue business in.

Speaker Change: In the fourth quarter, our total net revenue increased by 18, 3% to 2.25 billion.

Speaker Change: Our adjusted cash gross profit increased by 24.6% to 900, and the $23 9 million.

Speaker Change: Our adjusted EBITDA also grew year over year by six three points, 8% to 721.3 million.

Speaker Change: For the full year, our total net revenue was $8 3 billion, representing an increase of 11, 4% compared to the same period last year.

Speaker Change: And adjusted EBITDA reached $2 4 billion, reflecting an impressive 19, 1% increase from the prior year.

Both exceeding our guidance. Furthermore, our both on long term profitable with net income reaching to hang around the 48.4 million achieving a significant improvement from net loss of two 6 billion for the full year 2023.

Speaker Change: Let's look more closely at our top line I E. How medicine previously we have subdivided total net revenue from our D. C. P. This into wholesale and the retail IDC business based on the nature and the scare of our data center projects with revenue from non IDC business remain separate.

Speaker Change: And you can see on slide 17 in the fourth quarter, our wholesale revenues remain our key revenue growth driver with strong momentum significantly increasing by 120, 514% year over year to 660 512 million mainly driven by.

Speaker Change: The E Commerce zero too.

Speaker Change: Our retail revenues continue to account for the largest part of our next revenue our retail revenues remain relatively stable at $954 8 million, our IDC business continue to progress smoothly.

Speaker Change: During the fourth quarter, we maintained solid margins, thanks to our continuous efforts to enhance overall efficiency as we have shown on slide 18, our adjusted cash gross margin remain quite stable, our adjusted EBIT margin.

Speaker Change: Rose significantly to 32.1% comparable is 23, 2% in the same period of 2023.

Speaker Change: Moving on to liquidity on slide 19, we maintained a strong cash flow during the quarter also we recorded a net operating cash flow of 2.01 billion for the full year of 2024, our cash position remained healthy with the Companys total cash equivalents.

Speaker Change: He was treating cash reaching two on zero 8 billion as of December 31, 2024 stable compared to the end of the third quarter.

Speaker Change: Next let's take a look at the data on slide 20, we maintained our prudent approach to that in the Netherlands. This hour and that's back to the trailing 12 months adjusted EBIT ratio as Bob One night and a total debt to trailing 12 months adjusted EBITDA ratio at 515 Boe.

Speaker Change: Remaining at health level, and our trailing 12 months adjusted EBIT to interest coverage improved to six five.

Speaker Change: December 31 2010 before.

Speaker Change: We prioritize long term about the maturity planning in our bed and strategic management to ensure the security of that repayment.

Speaker Change: Additionally, the covenants fault and the medium term that Mercury in 2025 to 2027 comprised was 50.

Speaker Change: <unk> 56, or 9% of our total debt.

Speaker Change: Hanging out to Capex spending as you can see on slide 21 for the full year 2000, and plentiful. Our Capex was four point, Mike 8 billion with a majority located to the expansion of our wholesale business.

Speaker Change: Due to limited supply and chain expenditure management, some contact with deferred to 2025.

Speaker Change: We expect our Capex for full year 2025 to be in the range between 10 billion and 12 billion exiting the level of 2024. The increase is mainly to support our 400 to 450 megawatts delivery plan for 2025, which is if I did two or three times.

Speaker Change: Greater than that of 2020 for supporting the total delivery capacity of the past three years combined.

Speaker Change: Before I conclude let me share a few of our achievements in ESG, we view, our commitments and responsibilities to our industry environment and society.

Speaker Change: Cornerstones of our ongoing success and I'm proud of reports that our ESG efforts continue to win recognition from global renewed yesterday, reaching institution this year.

Speaker Change: Recently, we secured a fault in the S&P global sustainability Yearbook 2025, with our recalled school of 70 S. M piece to southern plentiful Carboy sustainability assessment.

Speaker Change: This is lina for inclusion in the global Edison following two consecutive years in the China Edison globally. <unk> is one of just 21, China mainland enterprises recognized in the 2025 year book and so on the Li Yu from Chinese I T service industry.

Speaker Change: Our school also land us in the top 7% of I T services industry globally.

Speaker Change: Yeah Theres a note to this into the nation by S&P Global we received.

Speaker Change: Reaching from them as the IDE for the third consecutive year.

For me, our leadership of China's Internet service and infrastructure industry.

Speaker Change: We attend a b grade in Cdp's climate change question. There in 2024 with eight out of 16 categories, achieving a agreed we cognition.

This accomplishment I'll only highlight our effective yesterday strategy and also reflect our long term investment value and development prospects.

Speaker Change: In summary, we are delighted to the end of two southern plentiful with stronger than anticipated results.

Speaker Change: Driven by impressive growth in our wholesale business.

Speaker Change: Looking ahead, we will continue to execute our high quality development strategy and invest in future growth, particularly AI related opportunities to propose our long term so tembo development.

Speaker Change: This concludes our prepared remarks for today, Yeah, now relief will take questions.

Speaker Change: Thank you we will now begin the question and answer session.

Speaker Change: Do you wish to ask a question. Please press star one on your telephone and wait for your name to be announced.

Speaker Change: If you wish to cancel your request. Please press star two if you.

Speaker Change: We're gonna stay could find it please pick up the handset to ask you a question for.

Speaker Change: So the benefit of all participants on today's call. Please ask your question to management in English and then repeat in Chinese.

Your first question comes from Sheehan Chi, but see ICC. Please go ahead.

Speaker Change: Okay.

Speaker Change: Thanks for taking my question and congratulations on a strong result nowadays.

Speaker Change: First question is no wholesale business out or you lost culture around who is going to be how do you really strong cause deliver this our capex outlook for 2005 have been quiet so could management provide details I'm going to rethink all capex of about 2005 and how much of this spending will be powered through their phone from hourly.

Speaker Change: These projects.

Speaker Change: So according to their announcement that they tout it hasnt made how did that go into running a new out here from customers seeking intelligent traveling in that shape. So my second question is given the strong demand from the computing Oh critical could management provide insight into the potential impact of AI.

Eight hours on the retail segment could you share with us the U S has really changed and the pricing change.

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Speaker Change: Fun video high threshold to high standards for the Capex comes down to that until the 'twenty 'twenty. Four we gave me to 100% increase and over 90% hope in 2020 five.

Speaker Change: Go directly into the wholesale I D C business in 2025 over 400 megawatts of wealthy to listen email Oh, It's L. I D say business.

Speaker Change: It will the highway yourself will fund Capex total woman TV also would you go machine.

Got it got it all.

Speaker Change: Okay.

Speaker Change: Among them, 80% has been on the determination of orders as well as our capacity to deliver before the randomness of capacities, we have Alex young from them off recently and the rhythm and Capex 12 to go directly into food.

The retail the retail I D C for the Purple yourself via high power density coupled with retrofits as well as a value add to the business.

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Speaker Change: And I also wanted to ask a few more comments if all the questions on the way I have to say that the 2020 five marks the starting point before China just feeling this accounts. He asked this amortization of the data industry as well as it is also recognized as a start to year four different types of finally the language.

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Speaker Change: And now let me check with you about the second question is about development until they launch them to model N application. We have we are very happy to see that in the big email for 2020 five the operation of Dixie, but has driven up the demand on the application and the application of D C.

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Speaker Change: So a strong push in the module references and we're also seeing that the threshold to call you did see in the private sector has been plagued us as a result, the development and adoption of the smart applications has been expanded.

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Josh: It's just been more specific I wanted to share with you my understanding on the utilization we have already feel rest of the business.

Josh: From their demand from this market and we are seeing very positive about that in terms of feeling right in terms of the pricing mechanism and pricing claim jumper single cabinet those.

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Josh: Next question please.

Sara Wang: Thank you. Your next question comes from Sara Wang with UBS. Please go ahead.

Josh: Yeah.

Sara Wang: Thank you for the opportunity to ask questions and congratulations on a solid result, I have two questions.

Sara Wang: The first one is that I noticed that among other new auto we are there are off they stay for micro led JV project with Changzhou I'm golfing Gorilla were at Magic Mountain. Please walk us through the framework partnership with the Townsville partner.

Sara Wang: In the house that are reflected in our revenue guidance and then my second question is regarding the supply demand dynamics I think are from the announcements comments that.

Speaker Change: James Mcmanus really confident in the supply demand dynamics over the next one or two years and even I shouldn't supply shortage, how should we think about this because.

Speaker Change: The supply chain in China is still quite efficient and then are there any new entrance into the market or our competitors deliver any new product into the market. How shall we think about the supply given the demand is already quite strong.

Speaker Change: That's yet so unless you're quite well, yeah, well M. P. D Lynch, Georgia 10 novel imagines all not entirely now youll notice the draw that then Oh gosh in due time that you've got JV. The Hood Lasalle more naturally no monocular Viacom polymer. These days I don't know how it's all about just a more shaky because all of this at the investor.

Speaker Change: Oklahoma has tightened down and Theres so little gun. So that's just what that's really yet, but they have a bunch of noninterest you're gong Bonnie it's hung of IL $2. So they would rather take I'll go with your wife, you should say Hello, Blah Blah blah.

Speaker Change: Well done guys all that sounds like that's the thing you make on all of them and I think Oh go song Clay tussle going with Yamal What'd I say, yes, you're right I didn't know if there's enough general jobs not huge because she's all hands unless you watch element that that's my Sal de Boer, Our Sundar Gonzi told Osha totally you guys still do.

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Speaker Change: Yes.

Speaker Change: They were supposed to start to seeing that.

Speaker Change: Thank you for the question I wanted to share with you a little bit of a background of this question and first of all I have to say that the demand is really going high Boston This year and three years ago of a company to the JV together with the Changzhou Soe and from that JV, we are holding 13%.

Speaker Change: The equity, which is equivalent to the 16 four megawatt order you are mentioning.

Speaker Change: J J Jill just a dollar tree.

Speaker Change: The capex.

Speaker Change: Sure.

Speaker Change: So that's the top of that.

Speaker Change: Lobbying.

Speaker Change: Taking a closer the barbell, Yeah boy, who will take the course of the Copaxone.

Speaker Change: And please be noted the Ana on the 16 four megawatts together with a JV will never be incorporated into the Capex I just introduced and is no longer in it.

Speaker Change: Not eaten all but that's just as well.

Speaker Change:

Speaker Change: Oh, so that's probably why do you say, oh, well, let's say the fashion Oh shoot.

Speaker Change: So when the lira.

Charlie: Sure Charlie.

Charlie: Do you have in that.

Charlie: Colorado.

Charlie: Well no.

Charlie: Well you don't want a city that's a tough one I bill took many months or a couple of the spiritual genre, mostly a cohort so at this time.

Speaker Change: Sadly Luciano.

Speaker Change: And we have to say we are going to wane profit from this project. So far 64 megawatts in the name of the manager management suite Oh in a full matched healthy capture operations see this is a great milestone half two bond and I'll take a project to serve our customers, but we are not going to.

Speaker Change: Have access to food that he never balance in other words, we are going to drive up our capacity to yourself and like I said, well money well that's fine there's strong demand from the core customers.

Speaker Change: So without the Daniel Island.

Speaker Change:

Speaker Change: Sure sure.

Speaker Change: Oh, Oh Oh.

Speaker Change: T cell phone the highest would you comment your score.

Speaker Change: On the Hollywood.

Speaker Change: One baking the true.

Joseph Giovanni: Good evening, Mr. Joseph Giovanni, that's where you're going to enjoy it.

Speaker Change: So that you are doing yes.

Speaker Change: Thompson, which encoding shortage.

Speaker Change: Your next question is about the trained as well as the market competition and let me check with you about several observations.

Speaker Change: According to the latest survey from the industrial sector.

Speaker Change: Marty According Jerzy supply and demand situation. So domestic market. It is estimated that in 2025, that's way Beijing.

Speaker Change: Great Beijing area, the wholesale IDC business will experience.

Speaker Change: Fly shortage well in 2020 six this will also happen in the yonker for that Delta.

Speaker Change: Sure.

Speaker Change: Did you think about all don't want me, saying that gosh. All this should have some harsher be ourselves to that.

Speaker Change: So you're endorsing the Guangzhou Guangzhou fashion later this year.

Speaker Change: Uh huh.

Speaker Change: Uh Huh Kingdom, Paul Ginocchio.

Speaker Change: Uh huh.

Speaker Change: Oh, well need Chinese yeah. So we all know you'll talk about.

Speaker Change: Hum.

Speaker Change: All right so your woman in Shanghai.

Speaker Change: Yeah.

Speaker Change: So that takes a cobalt.

Speaker Change: Toby on Portugal, well Miss you.

Speaker Change: All of those are put on the T. Monday, so youre, just saying that email.

Speaker Change: Gotcha.

Speaker Change: I'm not sure how much you know.

Speaker Change: This conclusion from these third party data industry Association is in line with my gut feeling about this market and your next part of his question is about the general competition.

Speaker Change: To be honest most of fly peers of our peers have a prioritized the overseas market instead, which means for the bidding process, we are engaging for their business.

Speaker Change: We're feeling different tiers different sessions with all of the consolidated or major peers or competitors.

Speaker Change: Next question please.

Yang Lu: Your next question comes from Yang Lu with Morgan Stanley. Please go ahead.

Speaker Change: Our sense for the off to see a congratulations on the strong booking first I have two.

Speaker Change: Two questions. The first one is regarding the the future trend of the industry rental.

Speaker Change: As you mentioned, that's a it is likely to see supply shortage.

Speaker Change: And also the hyper scanner, Steve on them, so quite strong Oh, what's your expectation of the per kilo Watt a red rental in the next two well two years is it likely to see some price hike.

Speaker Change: And then my second question is regarding the unit cost or unit Capex.

Speaker Change: Because of our data center upstream.

Speaker Change: Like a diesel generator or other U P S et cetera those equipment.

Speaker Change: Oh, the key components, and though whether there will be enough supply from upstream I know, whether there will be any pricing a hike to to keep pressure on the unit Capex Oh, no. We're finding yourself with a wind chill Oh well.

Speaker Change: Once you do you guys look while you are you willing to tinder upon to us.

Speaker Change: Going back onto its own tease out Oh, Yeah, canola, which was you are going.

Speaker Change: I'm being told you on the Chin, calling Josh how would you go out you could touch on the she's hoping on challenge Im not sure if all Yoko known for Xian and Zhengzhou.

Speaker Change: It turns out that you're on the Codell.

Speaker Change: They are going to use Uruguay, you dominates all chowder.

Speaker Change: Suddenly older should or shouldn't pay bocor tayo, if I, if I didn't see a U P. S that you laid out.

Speaker Change: Sure there are some oh promotional Yo Yo Yo milk has always shown a shortage and what you can say beyond that John J O geography, so that vehicle chicken margin that anyway. It's the whole younger ones you have been when you go to a hard she said she was sure Xiang teach a glaring yourself yeah. We live so you don't Wishy washy on before you bought the Dow should.

Speaker Change: Depend on tissue.

Oh, well, yeah without you know do you.

Speaker Change: So you can figure out what you're definitely going to fade off a dog or a T.

Speaker Change: So for me I'm not sure that you'll be polishing. The pucci do you eat is initially it was in the streets or not.

Speaker Change: Sure.

Speaker Change: Hi, I'm sure partly on the shuttle them a country Union of Hitachi yen the chewy nuts.

Speaker Change: Uh huh.

Speaker Change: Sure.

Speaker Change: Yeah not much.

Speaker Change: Okay Chico on Tomo machine.

Speaker Change: Sure.

Speaker Change: Neil Mehta here.

Speaker Change: How much are showing up on me if I am sure you sure you want me gentlemen, hope you're all.

Speaker Change: Sure sure yes, sure. So that you can put some thought for.

Speaker Change: Well by all that you'll just see that's for sure.

Speaker Change: So that should be put yourself out.

Speaker Change: Just had a bunch of azure in the public wash a bunch of them.

Speaker Change: Thank you for the excellent questions and I will share with you. Some of my understanding about this market, we are seeing that ever since the launch of the lots and lots of language model into this.

Speaker Change: We have seen the wholesale I D C centers.

Speaker Change: Demand has been gradually released into this market from the end of last year in 2020 four all the way down to the first quarter 2025. We also have seen that the supply is at least for each of the ink in the shortage side, well, we are talking and discussing with the leading online.

Speaker Change: Internet companies in China, we have to say that the resources are going to choose and the companies that have gone into walkaways are a little bit.

Speaker Change: Ltd.

Speaker Change: Okay.

Speaker Change: Apple watch a short side Jacob.

Sure.

Speaker Change: TV food it was industrial two shotguns hot weather.

Speaker Change: With a T shirt huge hit all that.

Speaker Change: Well then let you you wait.

Speaker Change: Indian.

Speaker Change: Jacob Jim Jong not particle.

Speaker Change: Okay cool.

Speaker Change: Yeah. So you did you say you guys should comments from corner well into <unk>.

Tim: The Fujitsu shouldn't trigger you Tim.

Speaker Change: Thank God, well I'm sure sure.

Tim: Okay, sure all months or Chicago.

Tim: Sure.

Tim: I call upon the particular people I shouldn't that.

Tim: Yeah, well that you could see Jamaat chipotle timber.

Speaker Change: As my colleague has already placed on you that general market situations in China I wanted to add a few more comments in China, the leading online and the internet.

Speaker Change: Companies are choosing and working with different wholesale ITC suppliers in different cities and regions, we I feel racing competitions as well, even though the peers are different in different regions in terms of the price trained as well as our pricing mechanism, we are offering the IDC business too.

Speaker Change: Our property and market demand, which means that all the pricing mechanism is driven by the market and our pricing is quite stable.

Speaker Change: Oh, how much I mean, one I believe.

Speaker Change:

Speaker Change: Uh huh.

Speaker Change: Sure.

Speaker Change: Tayo, how do you see all of it because we are the survey.

Joe Saw: Joe you were doing the same.

Speaker Change: Yeah.

Speaker Change: Thanks Michelle.

Speaker Change: Cool.

Speaker Change: Well that's your call.

Speaker Change: And I want to add a few more comments about this on the call.

Awesome.

Speaker Change: Well, we are discussing about the diesel generator units and equipment, we are seeing that as the construction and installment picking up the traditional fronts, especially those imported at once and JV Brent.

Speaker Change: Not adequate.

Speaker Change: Yes, that's true.

Speaker Change: So I should go sure Cindy.

Speaker Change: Well, we all have a colonoscopy cortina.

Speaker Change: What on the shelf.

Speaker Change: So there's lots of little yeah. There you go.

Speaker Change: A culture and a woman.

Speaker Change: What happened, though does that show up in chocolate with Xiaomi.

Speaker Change: Oh sure sure Yeah, what you're doing so well.

Speaker Change: They want it.

Speaker Change: Yeah.

Speaker Change: We have to check the other sides of the coin.

Speaker Change: Yeah.

Speaker Change: Most a majority.

And most of the part of our clients are increasingly comfortable using being made in China equivalent instead, and we're also seeing that it would do.

Speaker Change: The optimization the prize is even slightly lower.

Speaker Change: Okay.

Speaker Change: Sure.

Speaker Change: So when you dose in Greenville.

Speaker Change: On the balance sheet, Jerry Lewis and I played at all or Saddam He looks at all I don't know.

Speaker Change: Uh Huh, John that should take as Gil said, you'll Oh, yes, you're going to send out of Colombia.

Speaker Change: And that woman.

Speaker Change: Jonathan I'll take that.

Speaker Change: So that's what where they sat down.

Speaker Change: So we are having very large I guess is on the mark.

Speaker Change: The single Cabinet Congress 15 to 16 megawatts for building often ask you two hours so even behind the design. So generally speaking the unit Capex is a little bit of a slightly lower.

Speaker Change: Well it turns out of course, you're going to see a woman.

Speaker Change: Uh huh.

Speaker Change: Very light.

Speaker Change: So real quick.

Speaker Change: Oh that sounds I haven't sat down with all of those.

Speaker Change: Talking about like what does that assume that tell US you don't believe all of it are you sure you're always doing that.

Speaker Change: Well, we are seeing the general picture also supply and demand relationship.

Speaker Change: The cost is a fly to lower the revenue will pick up as a result, the REIT.

Speaker Change: <unk> will pick up as well.

Speaker Change: Next question please.

Speaker Change: Thank you.

Speaker Change: Your next question comes from Edison Lee with Jefferies. Please go ahead.

Edison Lee: Alright, thank him for taking my questions and congratulations again quite yourself and.

Edison Lee: I have two questions I think the number one question is still related to.

Edison Lee: Supply and demand, but more on the retail side.

Edison Lee: So I believe that.

Edison Lee: I totally agree with your assessment that I think.

Edison Lee: Seven years can actually benefit from dipstick body.

Edison Lee: Deploying the deploying the boto in private cloud or on premise.

Speaker Change: So based on what you saw in the first quarter of this year do you think that Youll retail revenue this year could actually get back to let's see.

Speaker Change: Mid single digit growth is that possible and then 2000 and 260 do you think it will further accelerate so that's question number one question number two it's about financing.

Speaker Change: Can you help us understand how you would fund the pedigree and.

Speaker Change: RMP Capex in 2025, because the operating cash flow is somewhere around 2 billion and you can raise to put in some good and just to have.

Expedient RMB two finance okay.

Speaker Change: He took them usually figure out how hard you got to the St. Joe for Joe Joe vehicle, India, Hiseq, while you're closer to one two times or more shallow than the OTI to weigh yourself on your you took on English sheep anyway with whole union when upon Guangzhou for deep Sea accounting for yourself and you always hear towards he or she could create you know once you get that.

Speaker Change: In light that took a fun colorful accommodates ago aorta, even though 90 codelco Judy Monkey 82. The Quanta you showed earlier, we felt it in Q&A you will accumulate it when you put all your car towards how much sort of sometimes we used to go to many in the kind of cost you told me Yeah do you have a one to a few quite a U.

Speaker Change: Uh huh.

Speaker Change: Well you shouldn't even from a true too.

Speaker Change: He noted that you buy either to the Capex. The way you build a union essentially it would have actually Hershey brand hung them until we close out this whole Lynn Lewis.

Speaker Change: And so much food to go that route.

Speaker Change: Oh yeah.

Speaker Change: Okay.

Speaker Change: Yeah.

Speaker Change: Okay.

Can you go into you know without in the low teens for sure.

Speaker Change: Okay.

Speaker Change: Another key win opinion, Hello shots will show you, we keep six what I hope.

Speaker Change: It shows what your tuition the challenge to you Michelle.

Speaker Change: She says it all.

Speaker Change: Did you say Oh gosh, we are the sure tore talking nuts.

Speaker Change: You look oh.

Speaker Change: Yeah sure good how much better you can longhorn.

Speaker Change: Thank you for the question I'm very much willing to share with you My personal view is the entry of the D C and what its impact on the retail sector.

Speaker Change: Also the extreme innovation ultra deep single large language of motto, we have seen the threshold for the medium and small enterprises as well I think the theater has been cut dramatically.

Speaker Change: Well I think Oh.

Speaker Change: But you don't count on that Youll woman by taking you to ask your gender nothing.

Speaker Change: The Eagle sure sure shouldn't that you've got a store that she had to judge it yet.

Speaker Change: Change of bulk for this year.

Speaker Change: How much will come in towards each rollout.

Speaker Change: Sure.

Speaker Change: Oh sure sure.

She'll Kodiak Kodiak General truthful.

Speaker Change: I don't want to share with you my personal.

Speaker Change: So because of Asia, and well that'd be great my personal judgment. According to the practices, we have already feeling for the reasons of days, we are seeing a large number for small and medium size enterprises as well as our integrated developers shoulder Jones Lang and adopting and using the REIT.

Speaker Change: L I D C.

Speaker Change: Thank you from me I know for sure.

Speaker Change: Tom.

Speaker Change: How much did you win you only comments with you the food she pulled out hi, Oscar.

Oscar: Hi, Tom.

Speaker Change: Talk about that one industrial solution.

Speaker Change: Right. Thank Ashok Dipstick, Chico Wuxi, Besides E number like at heart.

Speaker Change: Does it need let's say to all of this juncture I wanted to share with you a couple of things as models. These small and medium sized enterprises as well as the incubator developers our zucchini. So that's hopeful they will deploy their servers.

Speaker Change: The range of Xu servers, all the way down all the way up to 16, and then well talk to because their servers in Q3.

Speaker Change: Retail I D. C. We're Ronnie household waste C D C. Whether it is to be sweet.

Speaker Change: [noise] Oh sure not.

Speaker Change: Chicago Charlotte much useful life.

Speaker Change: Sure.

Speaker Change: I'll put them they'll tell you that she quit while she want him uncle uncle can you on the street corner. My this year, particularly the GPO publisher shouldn't that what type of GPU. So even though people don't know women's joke with you a woman named went up on them.

Speaker Change: Chico.

Speaker Change: Well I T E C H I G G shipyard foolish.

Speaker Change: And let me check with you and share with you that the business model to some of our clients who have come to us requiring the ITC the retail I do see rental services together with a procurement officer extra Gpus.

Speaker Change: We've got a thing Josh we are creating a new business model that H I G. The hybrid <unk> services.

Speaker Change: That's what you don't want to you Mike.

Speaker Change: Shouldn't that Yo Yo Kosawa cheerful fast sure she quit pushing them HIV for the kosher Shimon woman Mountain Cool bushels I can't go to I'm sure we'd have much equal jeep with it some tearful bihac watching them at all.

Speaker Change: And we I think our new vantage outside demand from other clients. They are using our I D C as well as H I T E.

Speaker Change: Flying to you Yeah also requiring you philosophy point or to dispatch software engineers to work with them in Super Lucky value add just the application for them.

Speaker Change: Let's see how all of that but when you get them you can feed on central should you hold in Shandong Shithole huh.

Speaker Change: Oh I'm sorry.

Speaker Change: Sure.

Speaker Change: So we switched from a shelf life.

Speaker Change: Farmland. She told me that you can talk all you want in fact, that's what you do.

Speaker Change: Similar to any other Chile downturn, well I'll, let Sean Shinxiaku plays that Jay you, Paul Farr Mushy I'm sure you'll end up with in terms of when we get an uncle.

Speaker Change: Golf piece, if you had to cope with a huge hole, but I'm not going to do it how much of that.

Speaker Change: Hi, tweet Ito.

Speaker Change: Sure you got Changsha and Chongqing.

Speaker Change: What you'll see here.

Speaker Change: I know that you must be expert reading my company.

Speaker Change: And we know that.

Speaker Change: Is it broadly and implementing the corporate structure of the deal and operation with the retail and wholesale I D. C. When we had run the retail business, we are reaching out it's yours thousands of our clients.

Speaker Change: And when in this round of lodging language module applications will reach supply this time to offer them either the retail services all the references mottos. Thank you for staying with us.

Speaker Change: So what I would I had dinner with the church there sure.

Speaker Change: Yeah, and then Capex.

Speaker Change: Sure.

Speaker Change: Oh, Yeah Oh.

Speaker Change: Because we offer Jacob.

Speaker Change: Yeah, well the thing that I suppose I should touch on Jeff.

Speaker Change: But what do you.

Speaker Change: You can call me and gone into at all levels.

Speaker Change: And you know just a woman.

Speaker Change: So you're going to raise the bar.

Speaker Change: Uh huh.

Speaker Change: You mentioned, that's a way of having a very large capex in 2020 five agree. It is jus here does xiaomi demand from the wholesale I D C. You'll win the new auditors.

Speaker Change: We're having huge genesis well deal with.

Speaker Change: Very much work on the cash flow as well as a link to project I have a job to freeze.

Speaker Change: Uh Huh, Yeah, we don't want to send that Oh.

Speaker Change: Why don't you go Oh, well means that the trial should all feed Honda accord.

Speaker Change: Yeah.

Speaker Change: So that that cloud cleared that up after their posture to our T V.

Speaker Change: Sure.

Speaker Change: We don't all suddenly on wechat.

Speaker Change: And due to the corporate structure.

Speaker Change: Okay.

Speaker Change: We are very much as we are in the advanced stage.

Speaker Change: Stage, having the loan financing for instance, if we are going to carry out kind of releasing the process.

Speaker Change: We're going to have for 80% of the L. D wave of interest of Rachel for no more than three 5% with a total maturity duration in over 15 years.

Speaker Change: Okay.

Speaker Change: Oh no woman.

Speaker Change: So that's what I know Kantar would count all of the Geos.

Speaker Change: I hope to be you know a woman.

Speaker Change: Danielle kosher.

Speaker Change: Finally on the corridor that saying that Oh, no particular Capex square mall.

Speaker Change: Yes.

Speaker Change: Well I mean, the figure out you've made that you can hang on box because I knew that.

Speaker Change: And I also wanted to share with you the results of our corporate information.

Speaker Change: Based on all the loans ratio now and we have already paid back the majority of such a therapy.

Speaker Change: And over last two years and according to the current accounts actually obviously.

Speaker Change: The appetite for the capital will be 6.51st we are estimating sometime.

Speaker Change: Next question please.

Speaker Change: Your next question comes from Timothy Zhao with Goldman Sachs. Please go ahead.

Timothy Zhao: Great. Thank you for taking my question and congrats on the very solid results.

Speaker Change: I have two questions here, one is I think quality of our downstream customers hasn't given the rising data center demand for AI, Chris wondering if Mcmahon cashier your observations on our customers in terms of your preferences between the U haul center against third Party data center operators and how is that different now versus a couple years ago.

Speaker Change: And secondly is on the wholesale data center as we are seeing are fostering and Francis demand growth could you. Please comment on how your wholesale campuses kickoff with again Frances training demand and what is the customer requirement in terms of the power quality in terms of latency et cetera.

Speaker Change: Go ahead go ahead. So I just told me that he was going through your fish Anshan Kinder J E T already or when you're Endopterygote, you, yet not what you'd been unlocked how N. P. D tells you why do you want me to show you a cool now coaching why it's hung a fatality salamander you kept one top hole quite that'll coke with him insights that Jan Kees I found the data center, Okay Cool Jude you answered that much at all.

Speaker Change: I shouldn't say, what's the timing to charge them for that.

Speaker Change: Now since I saw him I'm kind of like you mentioned Hammond up candidly, we're not yet shipping.

Speaker Change: Now if you are going to require women to TD. Soon that you go through what's your narco, which quite I would say Saudi is oh.

Speaker Change: Since I had the J code Twilio to shoe show Conan side can you put a ballpark two aissami now Amanda G. D kind of food don't change should something like you won't do it unless you show who are training to shoot for that between now.

Speaker Change: I will Miss Scioto cohorts age of cool say, she Saturday because she actually I'm, yet I don't know if you put all tissue.

Speaker Change: [noise], Okay, and you never do.

Speaker Change: Can you go with it you know what I would I shop.

Speaker Change: Yes.

Speaker Change: To cope with it and that's G codes that she wants so let's just yeah, well what are your thoughts on.

Speaker Change: The Chilean Xiaomi Kevin.

Speaker Change: I'm not sure if at all.

Speaker Change: Uh huh.

Speaker Change: You've got legal entity.

Speaker Change: Duncan you should've without you shop, Oh, I'm, sorry to tell them into chicken.

Speaker Change: So you got to go up and down you can conduct Jacob Oh, My God I got to go up when I'm on your.

Yeah.

Speaker Change: I'm sure you all I'm watching him.

But oh, not Washington Beach at that Alex.

Speaker Change: Okay.

Speaker Change: That's almost a woman.

Speaker Change: Quintile I caught yeah, sure women's which should have a software that kind of really shocked you looked through all of the hockey.

Speaker Change: Thank you for this question. It is a very important if I could also are of a sensitive question I have to say that youre raising up the questions on the auditors as well as a which pathways are selected.

Speaker Change: Good passwords, the rental or lease you have that in house choices and you're in the deck. We have a graduate degree program called Atlas.

Speaker Change: Some of these details I smell and English.

Speaker Change: This year, we are seeing that boosted demand from the online and the internet industry. When they are deploying the languages large lands models. We are also collecting lots of feedback.

Speaker Change: That's almost element I called Nevada.

Speaker Change: I'm not sure what else yeah, sure you're going to see it.

Cool.

Speaker Change: Yeah, Yeah sure wouldn't say 12 or you go there you go.

Speaker Change: Oh sure no site, so you cannot.

Speaker Change: You'll usually genco, yeah, she told us she somehow.

Speaker Change: Uh huh.

Speaker Change: For.

Speaker Change: Generally the cool HD Saddam Joshua.

Speaker Change: Call me on the call.

Speaker Change: Shouldn't that you'd say Oh boy there sure I'll shoot you tie up between how much you're looking to somebody who had yes sure you've got to aldehydes.

Speaker Change: I spoke now online and Internet.

Speaker Change: I feel one of the most important.

Speaker Change: And we are also offering the most important source of Chinese customers.

Speaker Change: And as I I demand is slightly off in the beginning.

Speaker Change: Here, we have seen that the company is in the cloud computing intelligent driving as well as financing also very much important and place to be and Christy noted those companies in the lost lender motto is awesome actually.

Speaker Change: Even though the kosher shrink so that's what's your how should can T cell phone, what's cool toilet.

Speaker Change: Tricia you can feed all of energy, that's home, which element are Guangzhou should either should have quit I caught a young jeweller Tricia for Toyota.

Speaker Change: And you also.

Speaker Change: To find out whether those clients well go directly with I E health choices, Olivia will collaborate and rentals.

Speaker Change: Hi.

Speaker Change: According to the feedback.

Speaker Change: Oh Wow.

Speaker Change: So it's not real far co existing.

Speaker Change: Got it.

Speaker Change: Should you that you can go on I E.

Speaker Change: Yeah Cool, yes, what you don't see it sit idle, especially if some of that's just a couple of downhole part the shutdown there's potential issuers.

Speaker Change: As usual cool night, gentlemen, actually so we won't be Sun pharma switched comes your way.

So I guess, what are you pushing wasteful, which isn't.

Speaker Change: Yeah, you got to negotiate on the picture.

Speaker Change: We're seeking a few names all the time, so we'll go raise herself.

Speaker Change: And a majority of our clients, who will go over our rental collection, which means that.

Speaker Change: The largest proportion of the clients want to go with our rental choice with a complementary part of US all seen clients will go and build for themselves.

We don't have any mandatory somebody got mutual shares.

Speaker Change: Fishing cohort a huge hold our feet on the walk shop, what Trump jumbo titled suggests you should.

Speaker Change: Let's see that natural lunch I'm not mine, so without such a thought that the St. Kilda suite hallways How're you doing.

Speaker Change: So we'll just yet.

So you get a share of women.

Speaker Change: Do it yourself on this channel.

Speaker Change: So on the international.

Oh for sure.

Speaker Change: Sure way to lose their job for us.

The rationale behind the market and the client has a full means demand.

Speaker Change: God I don't think it is the rationale.

Speaker Change: Client balances.

Speaker Change: Yeah, one equivalent by themselves, they're not going to use up that watch resources. So the general pathways rental stuff they'll fit and hardest should never be reverse that is what we have observed from this market.

Speaker Change:

Speaker Change: Right.

Speaker Change: Got it got it one T shirt.

Speaker Change: English is that Judy centrally to shoot.

Speaker Change: A few months old cohort.

Speaker Change: Coordination between the huge hole either she I, though you called out.

Speaker Change: I don't want to go back to you.

Speaker Change: Totally shut down Okay, cool well put you towards making sure Joe Shan cool she didn't even for your attention.

Hello.

Speaker Change: I know, Sean you Joshua well Mr. G V six what you're talking about which I'm not sure I'm not sure if a long shot.

Paul Holden I shouldn't that you didn't change anything that Oh, yeah, well she all women young.

Children that he thought that you know well, it's also that you're looking at kind of what's cool.

Speaker Change: We'll do a much fuller portal cookie jar quiet Joe for that.

Speaker Change: So each one of our Poland, unless you'd like us to in the future I'm not sure if I'm not sure my Marshall.

Speaker Change: I also want to show it to the second part of my question. So I wanted to start with you if I analyze human interface.

Speaker Change: Wholesale IDC survey.

Speaker Change: We have seen the neat.

Speaker Change: And really became you for 2025.

Speaker Change: Time, they don't contracted orders the weight and the deliveries are also underway such as now we are we are collecting pieces for new ideas from the Kosmos does husky five year, if they are requiring the fungible capacity from us and we got fees that they want us to have.

Speaker Change: Is that sort of efficiency of high efficiency.

Speaker Change: Tom 20 that sure I caught shouldna cohorts shut in so he passes that to fishing before distributions you.

Speaker Change: Do you mean.

Speaker Change: Yeah, Hi, Washington single purpose.

Speaker Change: I should hearts, even Washington, changing too much in a tight spot.

Speaker Change: So I'm not sure that such shouldn't be end up.

Speaker Change: Okay don't shop, though not top we thought.

Speaker Change: G H.

Kendall unless you can feel free to call it out, but it's a pretty good job kind of less diffusion.

Speaker Change: Yeah.

Speaker Change: Called out how to do.

Speaker Change: People from being articulate that you don't you call Shama she puts you.

Speaker Change: Well you could see for when Sheila.

Speaker Change: And I also want to add a few more comments on the referencing hot the referencing motor for will happen within the retail as I D. C for most of us.

Speaker Change: Because our clients will consider convenience more once the price of the carriers in terms of the Resourcing Martin in terms of the reps are modeling it as if it is whether other projects deployment or is it just for the purpose of our Intel is the application of the cause.

Speaker Change: Development of intelligent applications, which makes that latency is not going to be troublesome charge AEG to watch Oh sure. So not cool E bumper wait sorry G. D. Initially Thomas here.

Speaker Change: Just tied up for what she and that's what really I should pace Tweedy, that's useful and helpful for them.

Speaker Change: To wrap it up for all that high.

Speaker Change: Well, it's funny D S inference models can be.

Speaker Change: Retail I D C. Instead, you'll see wholesale I D C.

Speaker Change: Yes.

Speaker Change: Thank you for the question.

Speaker Change: Next question please.

Speaker Change: Your next question comes from Daily Li with Bank of America Securities. Please go ahead.

Speaker Change: Oh, that's management for taking my questions. Congrats on the solid resolves in a strong new orders here I have one question regarding the wholesale business as comedy you know have achieved a strong new orders in this past two quarters and then we also have a quite solid.

Speaker Change #100: Do you leave or plan for this year and by the end of this year over capacities surveys probably will almost doubled compared to like a number again on the full so how how should we think about the growth outlook maybe in 2026.

Speaker Change #100: And or even until those are seven regarding the revenue or new orders pipeline. Thank you.

Speaker Change #100: Oh, do you might that saying Oh gosh, when he says usually with human would you be anywhere you go.

Speaker Change #100: So keep asking are you woman to could you can do that when you do a change because you didn't dying in Freetown challenging brookwood in young people joked with you Oh.

Speaker Change #100: Oh in Yankee. He can now use sure in surveys to do PV I assumed Chico tend only topical quite fun thing honestly without too many times more than I need something to be our union outreach done John Bonn, quoting done that you're going to try and drive Shin young woman with a junkie Cleveland Nokia.

T O P J.

Speaker Change #100: Oh, well episodic events you are well not sure you'll you go when you end up with what you know very well.

Chignon Lu: C J.

Speaker Change #100: Yeah, it won't find Oh.

Speaker Change #100: Good Tiger three.

Speaker Change #100: So when you're going to see Ministry shortly Tricia Vauxhall.

Speaker Change #101: Thank you first question I wanted to share with you My view on this question. The company has established a five year plan ahead. All the time, because we are estimating that the deployment is going to be it's going to be really strong in this Chinese market driving.

Speaker Change #100: The demand for the domestic itc's extensively.

Speaker Change #102: Well Omar on the Energia Union the Capex total would have those senior.

Speaker Change #100: And that's what I'm, saying.

Speaker Change #100: How you are doing in our opinion.

Speaker Change #100: You will see a job she was holder with Jon on the Capex. So you might as well a couple of the spiritual.

Speaker Change #100: In 2025, so you turn off the Capex.

Speaker Change #100: The range of an eye towards hockey I see.

Speaker Change #100: So lots of three years and.

Speaker Change #100: Oh for 2020 six 'twenty 27, the company well continuously.

Speaker Change #100: Capex, you'll meet all the requirements.

Speaker Change #100: And customers in the market.

Speaker Change #100: A young woman Capex totaled.

Speaker Change #100: So that kind of a tolerable doses.

Speaker Change #100: Cohort shutting the thing done.

Speaker Change #100: So yeah.

Speaker Change #103: John kind of a total forgive me like you turned down.

Speaker Change #100: That hasn't changed the trading here.

Speaker Change #100: Our Capex is generally determined by the contract signed up with a client which means that all of our capex.

Speaker Change #104: So your new launch of a sudden piece to the growth.

Speaker Change #100: Oh, yes, absolutely.

Speaker Change #105: Sure well then you bancshares didn't hold with J Schultz.

Speaker Change #105: Don't hold all of the data she thought here is do without you.

Speaker Change #105: Oh cool kind of pushout.

Speaker Change #105: Oh, you sound, all Govs Joshi history I'll kick it.

Speaker Change #105: It was off sharply.

Speaker Change #105: So you don't see the Capex.

Speaker Change #105: Capex with a tolerable sure quietly ridiculous ebay that it's I'm not sure you'd made out of Philadelphia, where he gained a drillship.

Speaker Change #105: I also wanted to.

Speaker Change #105: Released in the Batesville side physical models.

Speaker Change #105: D C sectors normally with logo and construct.

Speaker Change #105: It will take a nice here it will take us six to nine months as a different projects in place goes after that we will take around six to 12 months additional six to 12 months just as have all the requirements of the car.

Speaker Change #105: Well the meeting 90% of the customers at the end of the day, you are going to find that the growth of the.

Speaker Change #106: Yeah, well see a little bit slower than that of the capex.

Okay.

Speaker Change #106: [noise] [noise].

Speaker Change #107: Ladies and gentlemen that concludes our conference for today. Thank you for participating you may now disconnect your lines.

Speaker Change #106: Yeah.