Q2 2025 21Vianet Group Inc Earnings Call

Speaker #2: Hello, ladies and gentlemen. Thank you for standing by for the second quarter 2025 earnings conference call for VNet Group Inc. After the management's prepared remarks, there will be a question-and-answer session.

Speaker 2: Hello, ladies and gentlemen. Thank you for standing by for the second quarter 2025 earnings conference call for 21Vianet Group Inc. After the management's prepared remarks, there will be a question and answer session. Please note the Chinese line is in listen-only mode. If you wish to ask questions, please dial in through the English line. Participants from our management include Mr. Ju Ma, Rotating President; Mr. Qiyu Wang, Chief Financial Officer; Ms. Xinyuan Liu, Head of Investor Relations at the company. Please note that today's conference call is being recorded. I will now turn the call over to the first speaker today, Ms. Xinyuan Liu. Please go ahead.

Speaker #2: Please note, the Chinese line is in English. Listen-only mode. If you wish to ask questions, please dial in through the English line. Participants from our management include Mr. Yu Ma, rotating president; Mr. Qiyu Wang, chief financial officer; and Ms. Xinyuan Liu, head of investor relations.

Speaker #2: Please note that today's conference call is being recorded. I will now turn the call over to the first speaker today, Ms. Xinyuan Liu.

Speaker #2: Please go ahead.

Speaker #3: Thank you, Arpiter. Hello everyone, and welcome to our second quarter 2025 earnings conference call. Our earnings release was distributed earlier today, and you can find a copy on our newswire services.

Xinyuan Liu: Thank you, our Peter. Hello everyone, and welcome to our second quarter 2025 earnings conference call. Our earnings release was distributed earlier today, and you can find a copy on our site as well as our newsletter services. 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. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations. For detailed discussions on these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC. 21Vianet Group Inc. does not undertake any obligations to update any forward-looking statements except as required under applicable laws. Please also note that 21Vianet Group Inc.'s earnings press release and this conference call include the disclosure of unaudited GAAP and non-GAAP financial matters.

Speaker #3: Please note that today's call will contain forward-looking statements made under the Safe Harbor provisions of the Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from our current expectations.

Speaker #3: For detailed discussions on these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC. 21Vianet does not undertake any obligations to update any forward-looking statements, except as required under applicable laws.

Speaker #3: Please also note that VNet's earnings press release and this conference call include the disclosure of unaudited GAAP and non-GAAP financial matters. VNet's earnings press release contains a reconciliation of the unaudited non-GAAP matters to the unaudited GAAP matters.

Xinyuan Liu: 21Vianet Group Inc.'s earnings press release contains a reconciliation of the unaudited non-GAAP matters to the unaudited GAAP matters. A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our IR website at ir.vianet.com. Next, I would like to alert you that we will be utilizing text-to-speech technology powered by Newlink.ai to deliver this quarter's prepared remarks by Mr. Ju Ma, our Rotating President, and Mr. Qiyu Wang, our CFO. The management team will join the Q&A session in person. Additionally, this conference is being recorded. A webcast of this conference call will also be available on our IR website at ir.vianet.com. Now let's get started with today's presentation. Mr. Ma, please go ahead.

Speaker #3: A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our website at ir.vnet.com. Next, I'd like to alert you that we will be utilizing text-to-speech technology powered by Neolink.ai to deliver this quarter's prepared remarks by Mr. Ju Ma, our rotating president, and Mr. Qiyu Wang, our CFO.

Speaker #3: The management team will join the Q&A session in person. Additionally, this conference is being recorded. A webcast of this conference call will also be available on our error website at ir.vnet.com.

Speaker #3: Now, let's get started with today's presentation. Mr. Ma, please go ahead.

Speaker #4: Good morning and good evening, everyone. Thank you for joining our call today. I'll start with an overview of our major accomplishments. During the second quarter of 2025, we delivered strong quarterly results, thanks to continued effective strategic execution.

Ju Ma: Good morning and good evening, everyone. Thank you for joining our call today. I will start with an overview of our major accomplishments during the second quarter of 2025. We delivered strong quarterly results, thanks to continued effective strategic execution. On the operational side, our wholesale IDC business maintained its significant growth momentum, supported by our customers' fast move-in pace. As of June 30, 2025, our wholesale capacity in service grew by 17.5% quarter over quarter to 674 megawatts, an increase of around 101 megawatts. Wholesale capacity utilized by customers rose by 17% quarter over quarter to 511 megawatts, an increase of around 74 megawatts, while the utilization rate was stable at 75.9%, reflecting a fast moving pace in our wholesale data centers. Our retail IDC business continued to progress smoothly, supported by growing AI-driven demand from customers.

Speaker #4: On the operational side, our wholesale IDC business maintained its significant growth momentum. Supported by our customers' fast move in pace, as of June 30, 2025, our wholesale capacity in service grew by seventeen point five percent quarter over quarter to six hundred and seventy-four megawatts.

Speaker #4: An increase of around one hundred and one megawatts. Wholesale capacity utilized by customers rose by seventeen percent quarter over quarter to five hundred and eleven megawatts.

Speaker #4: An increase of around 74 megawatts. While the utilization rate was stable at 75.9 percent, reflecting a fast move in pace. In our wholesale data centers, our retail IDC business continued to progress smoothly, supported by growing AI-driven demand from customers.

Speaker #4: Both our high-quality wholesale and retail IDC services continued to attract customers from various industries in the second quarter. I'll dig into those details on the next slide.

Ju Ma: Both our high-quality wholesale and retail IDC services continued to attract customers from various industries in the second quarter. I will dig into those details on the next slide. On the financial side, both our revenues and adjusted EBITDA maintained solid growth. Specifically, our total net revenues increased by 22.1% year over year to RMB 2.43 billion for the second quarter. Notably, wholesale revenues reached RMB 854 million for the quarter, representing impressive year-over-year growth of 112.5%, fueled by the rapid growth of our wholesale IDC business. Our adjusted EBITDA for the second quarter also increased by 27.7% year over year to RMB 732 million, with an adjusted EBITDA margin of 30.1%, up 1.3 percentage points year over year. Moving on to our new order wins on slide five.

Speaker #4: On the financial side, both our revenues and adjusted EBITDA maintained solid growth. Specifically, our total net revenues increased by twenty-two point one percent year over year to RMB two point four three billion for the second quarter.

Speaker #4: Notably, wholesale revenues reached RMB eight hundred and fifty-four million for the quarter. Representing impressive year over year growth of one hundred and twelve point five percent.

Speaker #4: Fueled by the rapid growth of our wholesale IDC business, our adjusted EBITDA for the second quarter also increased by twenty-seven point seven percent year over year to RMB seven hundred and thirty-two million.

Speaker #4: With an adjusted EBITDA margin of thirty point one percent, up one point three percentage points year over year. Moving on to our new order wins on slide five, in the second quarter, driven by growing demand from customers for intelligent deployment, we secured a combined capacity of around four megawatts in retail orders from customers in the IT services and internet AIoT and financial services sectors.

Ju Ma: In the second quarter, driven by growing demand from customers for intelligent deployment, we secured a combined capacity of around 4 megawatts in retail orders from customers in the IT services, internet, AIoT, and financial services sectors. These orders span multiple retail data centers in the Greater Beijing area, the Yangtze River Delta, the Greater Bay Area, and other regions. Furthermore, we recently won a 20-megawatt wholesale order from a leading cloud services provider for the project we operate in Hebei Province with our joint venture partner. As AI permeates every aspect of the world, new growth opportunities for data centers, the bedrock of AI infrastructure, continue to emerge. AI-driven demand remains especially robust in China, including training and inference demand from customers across multiple industries conducting intelligent deployments.

Speaker #4: These orders spanned multiple retail data centers in the Greater Beijing area, the Yangtze River Delta, the Greater Bay Area, and other regions. Furthermore, we recently won a 20 megawatt wholesale order from a leading cloud services provider for the project we operate in Hebei Province with our joint venture partner.

Speaker #4: As AI permeates every aspect of the world, new growth opportunities for data centers—the bedrock of AI infrastructure—continue to emerge. AI-driven demand remains especially robust in China, including training and inference demand from customers across multiple industries conducting intelligent deployments.

Speaker #4: To capture these opportunities and strengthen our competitiveness, we unveiled our hyperscale Two Point Zero framework. For the future of our AI/DC development at our Investor Day in Wulanchabu in late June, we also outlined our blueprint for growing the capacity of our data center assets under management to 10 gigawatts by 2036.

Ju Ma: To capture these opportunities and strengthen our competitiveness, we unveiled our Hyperscale 2.0 framework for the future of our AIDC development at our investor day in Wulan, Chabu, in late June. We also outlined our blueprint for growing the capacity of our data center assets under management to 10 gigawatts by 2036. Driven by the proliferation of AI, the data center industry's development has reached an inflection point, where traditional IDCs are shifting to AIDCs to meet dynamic market demand. In parallel, data centers' business model is evolving from simply providing project-based capacity delivery to serving as a platform offering comprehensive AIDC solutions. As a pioneer in AIDC development with strong fundamentals and deep industry know-how, 21Vianet Group Inc is poised to shape this trend through our Hyperscale 2.0 framework. Our innovative technologies enable us to construct high-quality, flexible AIDCs faster, ensuring rapid deliveries to meet customer needs.

Speaker #4: Driven by the proliferation of AI, the data center industry's development has reached an inflection point, where traditional IDCs are shifting to AI/DCs. To meet dynamic market demand, in parallel, data center business models are evolving from simply providing project-based capacity delivery to serving as a platform offering comprehensive AI/DC solutions.

Speaker #4: As a pioneer in AI/DC development with strong fundamentals and deep industry know-how, VNet is poised to shape this trend through our hyperscale 2.0 framework.

Speaker #4: Our innovative technologies enable us to construct high-quality, flexible AI/DCs faster, ensuring rapid deliveries to meet customer needs. For example, our building standardization technology utilizes standardized modules as data centers' core building units, allowing us to rapidly construct data centers tailored to diverse customer needs.

Ju Ma: For example, our building standardization technology utilizes standardized modules as data centers' core building units, allowing us to rapidly construct data centers tailored to diverse customer needs. This method cuts construction cycles by one-third compared to traditional construction methods. Additionally, our modular data center technology integrates various functions, including power supply systems, cooling systems, etc., into separate functional modules. These modules are manufactured and pre-tested in factories and shipped to data center sites for installation, which significantly enhances our installation efficiency. They can also be swapped out, allowing us to selectively upgrade only specific modules instead of entire systems, reducing improvement costs and extending data centers' life cycles. By leveraging these technologies, we can build quickly and combine modules with different functions flexibly to meet customer-specific requirements, ensuring fast capacity delivery to our customers. We believe these innovations position us as a frontrunner in the IDC industry going forward.

Speaker #4: This method cuts construction cycles by one-third, compared to traditional construction methods. Additionally, our modular data center technology integrates various functions, including power supply systems and cooling systems, into separate functional modules.

Speaker #4: These modules are manufactured and pre-tested in factories and shipped to data center sites for installation, which significantly enhances our installation efficiency. They can also be swapped out, allowing us to selectively upgrade only specific modules instead of entire systems.

Speaker #4: Reducing improvement costs and extending data centers' lifecycles, by leveraging these technologies, we can build quickly and combine modules with different functions flexibly to meet customers' specific requirements.

Speaker #4: Ensuring fast capacity delivery to our customers, we believe these innovations position us as a frontrunner in the IDC industry going forward. Execution of our Hyperscale 2.0 framework is already underway, starting in Inner Mongolia, Hebei Province, and Beijing.

Ju Ma: Execution of our Hyperscale 2.0 framework is already underway, starting in Inner Mongolia, Hebei Province, and Beijing, where we plan to establish data center hubs encompassing megawatt-scale cabinets, 100-megawatt-scale buildings, and gigawatt-scale campuses. Ultimately, as I mentioned earlier, we aim to manage a 10-gigawatt integrated data center asset cluster by 2036 that seamlessly combines computing power and energy management across multiple campuses, empowering us to shape the future development of AIDC solutions. Now, let's delve into our business updates, starting with our wholesale business on slide eight. Our wholesale business continued to grow rapidly, with capacity in service increasing by around 101 megawatts quarter over quarter to 674 megawatts, and utilization rate remaining stable at 75.9%, mainly attributable to our strong delivery capabilities at our NOR campus 01 and faster-than-expected move-ins at our NOR campus 01 and EJS campus 03.

Speaker #4: We plan to establish data center hubs encompassing megawatt-scale cabinets, hundred-megawatt-scale buildings, and gigawatt-scale campuses. Ultimately, as I mentioned earlier, we aim to manage a 10-gigawatt integrated data center asset cluster by 2036.

Speaker #4: That seamlessly combines computing power and energy management across multiple campuses, empowering us to shape the future development of AI/DC solutions. Now, let's delve into our business updates, starting with our wholesale business on slide eight.

Speaker #4: Our wholesale business continued to grow rapidly, with capacity in service increasing by around one hundred and one megawatts quarter over quarter to six hundred and seventy-four megawatts.

Speaker #4: And utilization rate remaining stable at 75.9%. This is mainly attributable to our strong delivery capabilities at our NOR Campus 01 and faster than expected move-ins at our NOR Campus 01 and EJS Campus 03.

Speaker #4: Our mature capacity utilization rate also reached 94.6%, a relatively high level. We have a clear growth path for our wholesale data center capacity.

Ju Ma: Our mature capacity utilization rate also reached 94.6%, a relatively high level. We have a clear growth path for our wholesale data center capacity. Let's move on to slide nine. Our overall wholesale data center capacity maintained its growth trajectory in the second quarter. Our capacity under construction was around 326 megawatts, with a pre-commitment rate for capacity under construction of 55.2% as of the end of June. Capacity held for short-term future development was around 374 megawatts, and capacity held for long-term future development was around 418 megawatts, as we remained confident in the long-term growth potential of AI-driven demand. Moving to our retail IDC business on slide 10, our retail business continued to progress smoothly in the second quarter. Retail capacity in service was 52,131 cabinets, with the utilization rate increasing slightly to 63.9% as of the end of June.

Speaker #4: Let's move on to slide nine. Our overall wholesale data center capacity maintained its growth trajectory in the second quarter. Our capacity under construction was around three hundred and twenty-six megawatts, with a pre-commitment rate for capacity under construction of fifty-five point two percent, as of the end of June.

Speaker #4: Capacity held for short-term future development was around three hundred and seventy-four megawatts, and capacity held for long-term future development was around four hundred and eighteen megawatts, as we remain confident in the long-term growth potential of AI-driven demand.

Speaker #4: Moving to our retail IDC business on slide ten, our retail business continued to progress smoothly in the second quarter. Retail capacity in service was fifty-two thousand one hundred and thirty-one cabinets, with the utilization rate increasing slightly to sixty-three point nine percent as of the end of June.

Speaker #4: MRR per retail cabinet increased to RMB eight thousand nine hundred and fifteen this quarter. Turning to our delivery plan on slide eleven, with our robust and efficient delivery capabilities, we successfully delivered a total of around one hundred and eighty-eight megawatts in the first half of 2025.

Ju Ma: MRR per retail cabinet increased to RMB 8,915 this quarter. Turning to our delivery plan on slide 11, with our robust and efficient delivery capabilities, we successfully delivered a total of around 188 megawatts in the first half of 2025. We currently have eight data centers under construction, with six in the Greater Beijing area and two in the Yangtze River Delta. We plan to deliver around 326 megawatts of capacity over the next 12 months, or around 227 megawatts during the second half of 2025 and around 99 megawatts during the first half of 2026. This ambitious delivery plan reflects strong demand from our customers and our outstanding delivery prowess. Now turning to our non-IDC business, a key component of our business.

Speaker #4: We currently have eight data centers under construction, with six in the Greater Beijing area and two in the Yangtze River Delta. We plan to deliver around 326 megawatts of capacity over the next twelve months.

Speaker #4: Or around 227 megawatts during the second half of 2025, and around 99 megawatts during the first half of 2026. This ambitious delivery plan reflects strong demand from our customers and our outstanding delivery prowess.

Speaker #4: Now turning to our non-IDC business, a key component of our business, ??? further expanded its customer base by winning new customers. In the consulting and intelligent driving industries, for its premium dedicated internet services, VPN services, IDC services, and cloud services.

Ju Ma: Dijin further expanded its customer base by winning new customers in the consulting and intelligent driving industries for its premium dedicated internet services, VPN services, IDC services, and cloud services. In conclusion, our robust second quarter results further validate our core strengths and effective strategic execution. Looking ahead, we will continue to sharpen our competitive advantages with faster deliveries and consistently reliable IDC services as we embark on our ambitious Hyperscale 2.0 framework to build greener, more intelligent data centers for the AI era. As always, we will remain committed to driving innovation and fostering industry development as we grow, delivering value to all of our stakeholders. Now, I will turn the call over to our CFO, Qiyu Wang, for further discussion of our operating and financial performance. Thank you, everyone.

Speaker #4: In conclusion, our robust second quarter results further validate our core strengths and effective strategic execution. Looking ahead, we will continue to sharpen our competitive advantages with faster deliveries and consistently reliable IDC services, as we embark on our ambitious hyperscale 2.0 framework to build greener, more intelligent data centers for the AI era.

Speaker #4: And as always, we will remain committed to driving innovation and fostering industry development as we grow, delivering value to all of our stakeholders. Now, I will turn the call over to our CFO, Qiyu Wang, for further discussion of our operating and financial performance.

Speaker #4: Thank you, everyone.

Speaker #5: Good morning and good evening, everyone. Before we start the detailed discussion of our second quarter performance, please note that, unless otherwise stated, all the financials we present today are for the second quarter of 2025 and are in renminbi terms.

Qiyu Wang: Good morning and good evening, everyone. Before we start the detailed discussion of our second quarter performance, please note that, unless otherwise stated, all the financials we present today are for the second quarter of 2025 and are in renminbi terms. Furthermore, unless otherwise specified, all the growth rates I am reviewing are on a year-over-year basis. Let's turn to slide 13. In the second quarter, we continued to pursue high-quality, high-margin business. Our total net revenues increased by 22.1% to RMB 2.43 billion, mainly driven by the rapid growth of our wholesale business. Our adjusted cash gross profit rose by 34.9% to RMB 1.06 billion, while our adjusted EBITDA also grew year over year by 27.7% to RMB 732.5 million. Let's look more closely at our top line.

Speaker #5: Furthermore, unless otherwise specified, all the growth rates I am reviewing are on a year-over-year basis. Let's turn to slide thirteen, in the second quarter, we continue to pursue high-quality, high-margin business, our total net revenues increased by twenty-two point one percent to RMB two point four three billion, mainly driven by the rapid growth of our wholesale business.

Speaker #5: Our adjusted cash growth profit rose by thirty-four point nine percent to RMB one point zero six billion. While our adjusted EBITDA also grew year over year by twenty-seven point seven percent to RMB seven hundred and thirty-two point five million, let's look more closely at our top line.

Speaker #5: As you can see on slide fourteen, in the second quarter, wholesale revenues our key revenue growth driver increased significantly by one hundred and twelve point five percent to RMB eight hundred and fifty-four point one million.

Qiyu Wang: As you can see on slide 14, in the second quarter, wholesale revenues, our key revenue growth driver, increased significantly by 112.5% to RMB 854.1 million, mainly attributable to sales at the NOR campus 01 and EJS campus 03. Retail revenues continue to account for the largest part of our total net revenues, reaching RMB 959 million for the second quarter. Our non-IDC business revenues were RMB 621 million for the second quarter. During the second quarter, we maintained solid margins thanks to our continuous efforts to enhance overall efficiency. As shown on slide 15, our adjusted cash gross margins improved to 43.6% from 39.5% in the same period last year. Our adjusted EBITDA margin rose to 30.1% compared with 28.8% in the same period last year. Moving on to liquidity.

Speaker #5: Mainly attributable to sales at the NOR Campus Zero One and EJS Campus Zero Three, retail revenues continue to account for the largest part of our total net revenues, reaching RMB 959 million for the second quarter.

Speaker #5: Our non-IDC business revenues were RMB 621 million for the second quarter. During the second quarter, we maintained solid margins thanks to our continuous efforts to enhance overall efficiency.

Speaker #5: As shown on slide fifteen, our adjusted cash growth margins improved to forty-three point six percent from thirty-nine point five percent in the same period last year.

Speaker #5: Our adjusted EBITDA margin rose to thirty point one percent, compared with twenty-eight point eight percent in the same period last year. Moving on to liquidity, on slide sixteen, we maintained robust and healthy liquidity, bolstered by a net operating cash inflow of RMB three hundred and sixty-six point six million during the second quarter.

Qiyu Wang: On slide 16, we maintained robust and healthy liquidity, bolstered by a net operating cash inflow of RMB 366.6 million during the second quarter, bringing the net operating cash flow for the first half of the year to RMB 562.3 million. Our cash positions remained solid with total cash and cash equivalents, restricted cash, and short-term investments reaching RMB 4.66 billion as of June 30, 2025. Next, let's take a look at our debt structure on slide 17. We maintained our prudent approach to debt management. As of June 30, 2025, our net debt to the trailing 12 months' adjusted EBITDA ratio was 5.3, and total debt to the trailing 12 months' adjusted EBITDA ratio was 6.4, both remaining at healthy levels. Also, our trailing 12 months' adjusted EBITDA to interest coverage ratio was 6.9.

Speaker #5: Bringing the net operating cash flow for the first half of the year to RMB five hundred and sixty-two point three million. Our cash positions remained solid, with total cash and cash equivalents restricted cash and short-term investments reaching RMB four point six six billion.

Speaker #5: As of June thirty, 2025, next, let's take a look at our debt structure on slide seventeen. We maintained our prudent approach to debt management, as of June thirty, 2025, our net debt to the trailing twelve months adjusted EBITDA ratio was five point three, and total debt to the trailing twelve months adjusted EBITDA ratio was six point four.

Speaker #5: Both remaining at healthy levels, our trailing twelve months adjusted EBITDA to interest coverage ratio was 6.9. We prioritized long-term debt maturity planning in our debt management to ensure the security of debt repayment.

Qiyu Wang: We prioritize long-term debt maturity planning in our debt and strategic management to ensure the security of debt repayment. Additionally, the company's short and medium-term debt maturing in 2025 to 2027 comprises 44.1% of our total debt. Turning now to CapEx spending. As you can see on slide 18, for the first half of 2025, our CapEx was RMB 3.89 billion, with the majority allocated to the expansion of our wholesale IDC business. We still expect our CapEx for the full year 2025 to be in the range of RMB 10 billion and RMB 12 billion. The increase is mainly to support our planned delivery of 400 to 450 megawatts in 2025, or approximately three times 2024's total deliveries and surpassing our total deliveries in the past three years combined.

Speaker #5: Additionally, the company's short and medium-term debt maturing in 2025 to 2027 comprises forty-four point one percent of our total debt. Turning now to CapEx spending, as you can see on slide eighteen, for the first half of 2025, our CapEx was RMB three point eight nine billion, with the majority allocated to the expansion of our wholesale IDC business.

Speaker #5: Additionally, the company's short and medium-term debt maturing in 2025 to 2027 comprises forty-four point one percent of our total debt. Turning now to CapEx spending, as you can see on slide eighteen, for the first half of 2025, our CapEx was RMB three point eight nine billion, with the majority allocated to the expansion of our and strategic We still expect our CapEx for the full year 2025 to be in the range of RMB ten billion and RMB twelve billion.

Speaker #5: The increase is mainly to support our planned delivery of 400 to 450 megawatts in 2025, or approximately three times 2024's total deliveries, and surpassing our total deliveries in the past three years combined.

Speaker #5: Furthermore, in late June, our board authorized a buyback program under which we may repurchase up to $50 million from time to time on the open market over the ensuing twelve months.

Qiyu Wang: Furthermore, in late June, our board authorized a buyback program under which we may repurchase up to US$50 million from time to time on the open market over the ensuing 12 months. The buyback program underscores our deep commitment to delivering value to shareholders and our confidence in 21Vianet Group Inc.'s future development and growth prospects. Now moving to our full-year guidance for 2025 on slide 19. As we announced in a press release in late June, we have increased our full-year revenue and adjusted EBITDA guidance, fueled by faster-than-anticipated move-ins among wholesale IDC customers and ongoing operational efficiency gains. We now expect total net revenues to be in the range of RMB 9.15 billion to RMB 9.35 billion, a year-over-year increase of 11% to 13%, and adjusted EBITDA to be in the range of RMB 2.76 billion to RMB 2.82 billion, representing a year-over-year increase of 14% to 16%.

Speaker #5: The buyback program underscores our deep commitment to delivering value to shareholders and our confidence in VNet's future development and growth prospects. Now, moving to our full-year guidance for 2025, on slide nineteen.

Speaker #5: As we announced in a press release in late June, we have increased our full-year revenue and adjusted EBITDA guidance, fueled by faster-than-anticipated movements among wholesale IDC customers.

Speaker #5: An ongoing operational efficiency gains. We now expect total net revenues to be in the range of RMB nine point one five billion to RMB nine point three five billion, a year over year increase of eleven percent to thirteen percent, and adjusted EBITDA to be in the range of RMB two point seven six billion to RMB two point eight two billion.

Speaker #5: Representing a year-over-year increase of fourteen to sixteen percent. If the RMB 87.7 million on the disposal gain of EJS 02 data center were excluded from the adjusted EBITDA calculation for 2024, the year-over-year growth would be eighteen to twenty percent.

Qiyu Wang: If the RMB 87.7 million on disposal gain of EJS 02 data center were excluded from the adjusted EBITDA calculation for 2024, the year-over-year growth would be 18% to 20%. Before I conclude, I'd like to briefly update you on our ESG efforts. We were pleased to receive an A grade, the highest rating in the 2024 Supplier Engagement Assessment by the Carbon Disclosure Project. We were also recognized as a Supplier Engagement Leader for our collaboration with supply chain partners on low-carbon technology R&D, enhancing our IDC operational energy efficiency and empowering our partners to save energy and reduce emissions. Looking ahead, we will remain steadfast in our pursuit of ESG excellence, embracing and promoting a green future. In summary, we maintained our business's vibrant momentum with strong financial results during the second quarter, supported by our effective dual-core strategy and new Hyperscale 2.0 framework.

Speaker #5: Before I conclude, I'd like to briefly update you on our ESG efforts. We were pleased to receive an A grade, the highest rating in the 2024 Supplier Engagement Assessment by the Carbon Disclosure Project.

Speaker #5: We were also recognized as the supplier engagement leader for our collaboration with supply chain partners on low carbon technology and R&D, enhancing our IDC operational energy efficiency and empowering our partners to save energy and reduce emissions.

Speaker #5: Looking ahead, we will remain steadfast in our pursuit of ESG excellence, embracing and promoting a green future. In summary, we maintained our business's vibrant momentum with strong financial results during the second quarter.

Speaker #5: Supported by our effective dual-core strategy and new hyperscale two-point-zero framework, we're well positioned to lead the AI/DC transformation, capturing surging AI-driven opportunities and delivering sustainable, long-term value for all stakeholders.

Qiyu Wang: We're well-positioned to lead the AIDC transformation, capturing surging AI-driven opportunities and delivering sustainable long-term value for all stakeholders. This concludes our prepared remarks for today. We are now ready to take questions.

Speaker #5: This concludes our prepared remarks for today. We are now ready to take questions.

Speaker #6: Thank you. We will now begin the question and answer session. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced.

Speaker 2: Thank you. We will now begin the question and answer session. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. For 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 Tom Tang with Morgan Stanley.

Speaker #6: For 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 Tom Tang with Morgan Stanley.

Speaker #7: Thanks, management, for the opportunity to ask questions. First of all, congratulations on a very strong quarterly result, especially in the wholesale business. For my question, it's mainly about future demand and orders.

Tom Tang: Thanks, management, for the opportunity to ask questions. First of all, congratulations on a very strong quarterly result, especially on the wholesale business. My question is mainly about the future demand and orders. We noticed that Nvidia has regained its permission to ship their new AI chips to China again last month. I am just wondering, based on our communication with our big customers, what is our current expectation of their future demand and the pattern of their order tendering? Thank you.

Speaker #7: So, we noticed that Nvidia has regained its permission to ship their new chipsets to China again last month. So, just wondering, based on all the communication with our big customers, what is our current expectation of their future demand and the pattern of their order tendering?

Speaker #7: Thank you. would I get another? 就是感谢管理层提供的机会啊。首先就是非常恭喜公司有一个非常强劲的业绩, 尤其是在批发业务这里。呃, 我的问题主要是关于客户未来需求的订单的。呃, 我们看到上个月英伟达的芯片也重新获得了出口的许可, 所以想请教一下, 结合我们和客户的一些沟通, 我们现在对未来的一个需求以及招标的节奏是一个什么样的看法? 感谢。

Tom Tang: 我来简单的翻译一下，就是感谢管理层提供的机会。首先就是非常恭喜公司有一个非常强劲的业绩，尤其是在批发业务这里。我的问题主要是关于客户未来需求和订单的。我们看到上个月 Nvidia 的 AI chip 也重新获得了出口的许可，所以想请教一下，结合我们和客户的一些沟通，我们现在对未来的一个需求以及招标的节奏是一个什么样的看法？感谢。

Speaker #8: Okay. Good. 好, 谢谢您的提问。我来回答您的一个问题。就像这个您看到的一样, 就是最近的市场呢, 呃, 非常的这个活跃。那么我们也根据第三方的行业需求报告也看到, 就是在数字经济比较活跃的, 呃, 大陆的地区呢, 呃, 比方说在环北京地区和长三角地区, 呃, 确实得益于这个AI的持续的这个需求。那么数据中心的供需关系呢, 较之前也得到了很大的改善。

Tom Tang: data centers has greatly improved compared to before, thanks to the continuous AI-driven demand.

Speaker #7: Hmm, thank you for your question. And now, the market is relatively active, and according to the report of the third-party institutions, we find that in the regions where the digital economy is relatively active, for example, in the Greater Beijing area and in the Yangtze River Delta, I think the AI demand is relatively strong, and also the relation between supply and demand has improved a lot.

Xinyuan Liu: Thank you for your question. The market is relatively active. According to the report of third-party institutions, we find that in the regions where the digital economy is relatively active, for example, in the Greater Beijing area and in the Yangtze River Delta, the AI-driven demand is relatively strong, and the relation between supply and demand has improved a lot.

Speaker #8: 那涉及到您提到的关于后续的大客户的一些招标和需求情况呢, 呃, 您知道我们今年的交付计划, 呃, 超过了四百兆瓦, 是比较大的。而新的订单呢, 一般呢, 都要在六个月左右就要交付。所以呢, 我们现在呢, 非常关注在下半年客户会陆续释放出来的一些需求, 特别是九月份前后释放出来的需求。我们会尽可能的多拿到这一部分的订单。

Tom Tang: 涉及到您提到的关于后续的大客户的一些招标和需求情况呢, 您知道我们今年的交付计划超过了400 megawatt, 是比较大的, 而新的订单呢, 一般呢, 都要在六个月左右就要交付。所以呢, 我们现在呢, 非常关注在下半年客户会陆续释放出来的一些需求, 特别是9月份前后释放出来的需求, 我们会尽可能的多拿到这一部分的订单。

Speaker #7: And your question also mentioned the bidding and the demand. For the big client, since you have also noticed that this year our delivery plan is over 400 megawatts, it is relatively large.

Xinyuan Liu: Your question also mentioned the bidding and the demand for the big client. Since you have also noticed that this year our delivery plan is over 400 megawatts, it is relatively large. The new orders should be delivered in six months, so we will pay more attention to the demand released around September.

Speaker #7: And also, the new orders should be delivered in six months, so we will pay more attention to the demand released around September.

Speaker #8: 那补充一句呢, 就是除了我们刚刚披露的有一个二十兆瓦的一个基地型业务的新订单之外, 我们目前呢, 也在和潜在的需求呢, 在紧密的沟通。这种需求呢, 仍然是以AI需求为主的。谢谢。

Tom Tang: 那补充一句呢, 就是除了我们刚刚披露的有一个20 megawatt的一个基地型业务的新订单之外, 我们目前呢, 也在和潜在的需求呢, 在紧密的沟通, 这个需求呢, 仍然是以 AI 需求为主的。谢谢。

Speaker #7: So, in addition to the 20-megawatt wholesale business, I think we are also paying a lot of attention to the potential demand, and we are also communicating for this potential demand.

Xinyuan Liu: In addition to the 20-megawatt wholesale business, I think we are also paying a lot of attention to the potential demand, and we are also communicating for this potential demand. I think most of them are highly relevant to the AI.

Speaker #7: I think most of them are highly relevant to the AI.

Speaker #8: Next question, please.

Speaker 8: Next question, please.

Speaker #6: Your next question comes from Edison Lee with Jefferies.

Speaker 2: Your next question comes from Edison Lee with Jefferies.

Speaker #7: Oh, hi, yeah, thank you for taking my questions. I have two, right? Number one, can you update us on the build-out of wind power in Yulanchabu and when it will actually come into effect, and how that's going to impact the revenue and also the margin of the company?

Edison Lee: Oh, hi. Thank you for taking my questions. I have two. Number one, can you update us on the build-out of wind power in Yulangzhou and when that will actually come into effect and how that is going to impact the revenue and also the margin of the company? Number two, can you comment on your MRR on wholesale? It seems that your MRR on the wholesale in the second quarter is actually up on a year-on-year basis. Maybe if you can explain a little bit what is driving that unit price, that would be great. 感谢提问的机会, 我要来问问题, 第一个问题就是我想知道其实现在乌兰察布这个风电的建设的节奏是什么样, 然后如果这个风电建完之后其实对于公司的收入跟EBITDA margin其实有什么影响。第二个问题就是我看到第二季度其实这个批发这一块呢, 单价好像有点上升, 能讲一下其实背后的驱动因素是什么吗? 谢谢。

Speaker #7: Number two, can you comment on your MSR for wholesale? It seems that your MSR, or your MRR for wholesale, in the second quarter is actually up on a year-on-year basis.

Speaker #7: So maybe if you can explain a little bit what is driving that, unit price, that would be great. I can share. Do you want to give a way on everyone?

Speaker #7: Did you go and did you hear what I'm about, Qixi Xiangzhang Yulanchabu ???????????????, ????????????, ??????????, ?, EBITDA margin ????????????????????????, ?, ????????, ??????????, ?????????????????? ?????, ?, ??, ?, Edison, ????????????, ????????????????, ??????, ?, ?????????, ?, ????????????, ?, ???????, ?, ??????, ????????????????????, ?????????????????? P&L ???, ?, ?, ?????????????? IR ?????????????????????, ??????????, ?, ????????, I think, now the wind power projects in Yulanchabu is well underway, and I think by the end of this year and also in the beginning of next year it will going to deliver power.

Qiyu Wang: After we truly start supplying power, and after our calculations, then we can give you this data.

Xinyuan Liu: I think now the wind power project in Yulangzhou is well underway. I think by the end of this year and also in the beginning of next year, it will go into deliver power. This is relatively a new trial for us, so we cannot expect its impact on our P&L. However, I think it will mainly deliver positive impacts on our IR. I think the detailed statistics and the figures will be offered when it begins to deliver power.

Speaker #7: I think this is relatively a new trial for us, and so we cannot expect its impact on our P&L. However, I think it will mainly deliver a positive impact on our IR.

Speaker #7: So I think the detailed statistics and the figures will be offered when it begins to deliver power. The?????????, ?, ????????????, ???, ?, ?? wholesale ?????????????????????, ??????????? MSR ??????, ????????, ??, ?, ???????????????????, ?, ?????????????, ????????, ?, ?????????????? And so for the second question, I think, oh, it's mainly relevant, it has two factors.

Qiyu Wang: this quarter, wholesale had some one-time revenue, so it is a normal change.

Xinyuan Liu: For the second question, I think it has two factors. The first one is the wholesale price is relatively very stable. You also mentioned that the improvement in the MSR, I think it is mainly due to the seasonal factors because of the increase in the revenue from the electricity bills. Also, in this quarter, we have the one-off income.

Speaker #7: The first one is, I think the wholesale price is relatively, very stable. And you also mentioned that the improvement in the MSR, I think it's mainly due to the seasonal factors, s, because of the increase in the revenue from the electricity bills.

Speaker #7: And also in this quarter, we have the one-off income.

Speaker #8: Next question, please.

Speaker 8: Next question, please.

Speaker #6: Your next question comes from Daily Lee with BFA Securities.

Speaker 2: Your next question comes from Daley Lee with BAB Securities.

Speaker #7: Hi, management. Thanks for taking my question. I have two questions here. The first one is regarding our growth margin. Our adjusted growth margin was quite healthy, with growth and improvement.

Tom Tang: Hi, management. Thanks for taking my question. I have two questions here. The first one is regarding our gross margin. Our adjusted gross margin was quite a healthy growth and improvement. For our GAAP level gross margin, if we look at, quote unquote, it seems dropped a little bit. What is the reason behind this? How do you think the future normalized gross profit margin? My second question is about the new financing channel, the REITs. Could you please update us the progress of the private REITs and the C-REITs going forward?

Speaker #7: And for our gap-level growth margin, if we look at, quote-unquote, it seems to have dropped a little bit. What's the reason behind this?

Speaker #7: And how do you think the future normalized growth profit margin will be? My second question is about the new financing channel, the REITs. Could you please update us on the progress of the private REITs and the C-REITs going forward?

Speaker #7: how does it relate to, 接受我的提问。啊, 首先恭喜公司非常强劲的业绩啊。这边有两个问题。第一个是关于我们这个毛利率的, 嗯, 想问一下我们二季度换这个环比的毛利率, 呃, 略微略微下跌的原因是什么? 呃, 当然我们调整后的这个确实是一个非常好的一个同比, 啊, 增长的一个趋势啊。嗯, 是这里面比如说折旧是因为折旧原因还是其他原因? 未来的话, 稳态的这个毛利率会在什么水平? 嗯, 第二个问题是关于我们这个融资渠道的, 关于, 呃, REITs这边, 嗯, 可否更新一下咱们这边, 嗯, 私募 REITs 还有这个 C-REITs 啊, 未来的一个这个, 呃, 进展还有时间表。好, 谢谢。 Oh, I see.

Tom Tang: 好的，谢谢管理层接受我的提问。首先，恭喜公司非常强劲的业绩。这边有两个问题，第一个是关于我们这个毛利率的，想问一下我们Q2这个环比的毛利率略微下跌的原因是什么？当然我们调整后的这个adjusted EBITDA确实是一个非常好的一个同比增长的一个趋势。是这里面比如说折旧，是因为折旧原因还是其他原因？未来的话，稳态的这个毛利率会在什么水平？然后第二个问题是关于我们这个融资渠道的，关于REITs这边，可否更新一下咱们这边私募REITs还有这个C-REITs未来的一个进展还有时间表？好，谢谢。

Speaker #7: 谢谢, 我来回答你的两个问题啊。就是, 呃, 正如你说的, 就毛利率的变化实际上是受我们固定资产转, 呃, 转股, 然后折旧计提的这个时间点的影响。啊, 所以它各个季度之间会有一定的波动。那如果考虑现金毛利的话呢, 就剔除一些季节性的因素, 是一个平稳上升的一个趋势。 thank you for your question. for the changes in the GP margin, I think it's affected by the, timing of turning the CID into PPE and also the depreciation.

Qiyu Wang: 谢谢, 我来回答你的两个问题。正如你说的, 这个毛利率的变化实际上是受我们固定资产转股, 然后折旧计提的这个时间点的影响。所以它各个季度之间会有一定的波动。那如果考虑现金毛利的话呢, 就剔除一些季节性的因素, 是一个平稳上升的一个趋势。

Xinyuan Liu: Thank you for your question. For the changes in the margin, I think it is affected by the timing of turning the IDC into PBE and also the depreciation. There can be some seasonal factors that lead to the fluctuation. If we exclude, if we only consider the cash DP margin, I think it is still very unhealthy and a steady increase.

Speaker #7: So there can be some seasonal factors that lead to the fluctuations. But if we exclude those and only consider the cash GP margin, I think it's still very healthy and on a steady increase.

Speaker #7: Uh,关于 REITs 的进展, 呃, 就是, 就像年初说的哈, 我们, 呃, 这几个 REITs 的项目都在很积极的推进。那现在我们有, 呃, 包括你说的公募 REITs, 还有正在推进的私募 REITs, 以及其他的几个类似的项目, 现在有四到五个项目都在推进。呃, 今年我们也仍然维持通过各项的 REITs 在资产层面, 呃, 得到不少于二十亿的净回款, 这个目标也是不变的。啊, 我希望很快能给市场一些好的消息。 And also for the REITs project, we have been actively promoting the REITs projects.

Qiyu Wang: REITs 以及其他的几个类似的项目。现在有 4 到 5 个项目都在推进。今年我们也仍然维持通过各项的 REITs 在资产层面得到不少于 20 亿的净回款, 这个目标也是不变的。我希望很快能给市场一些好的消息。

Xinyuan Liu: For the REITs project, we have been actively promoting the REITs projects. We have the public and also the private REITs. I think we have 4 to 5. As mentioned, this year through the REITs project, we hope to have a recovery of 2 billion.

Speaker #7: We have both public and private REITs, and I think we have four to five. As mentioned, this year through the REITs project, we hope to achieve a recovery of $2 billion.

Speaker #8: Next question, next question, please.

Speaker 8: Next question, please.

Speaker #6: Your next question comes from Timothy Zhao with Goldman Sachs.

Speaker 2: Your next question comes from Timothy Zhao with Goldman Sachs.

Speaker #7: Great. Thank you, management, for taking my question, and congrats on the very strong results. I have two questions here as well. First is regarding your guidance; I'm pretty glad to see that you raised guidance actually two months ago.

Edison Lee: Great. Thank you, management, for taking my question and congrats on the very strong result. Two questions here as well. First is regarding your guidance. I am pretty glad to see that you raised guidance actually two months ago. But after the very strong first half result, just wondering how management thinks about the second half outlook. If my calculation is correct, I think toward the high end of your guidance, I think the second half growth implied only around single-digit growth. Just wondering how do we think about the second half outlook? Secondly is regarding the retail IDC business. As I see, there is some revenue decline on this retail IDC revenue in the second quarter of this year versus a stronger first quarter. Just wondering what is the reason behind. 那我很快翻译一下。感谢管理层接受我的提问, 也非常恭喜这个很强劲的业绩。那我第一条问题是关于我们今年全年的一个 guidance。那我也看到在两个月前我们也 把今年全年的guidance向上有所提高, 但是在一个非常强劲的上半年的业绩之后, 其实我倒算下来可能下半年的增速大概就是在一个个位数的情况。那想请管理层分享一下我们现在对于下半年整体的增速的预期是怎样。那第二条问题是关于我们的零售的IDC的业务的。那我看到二季度零售IDC的收入有一些略微的下滑, 相对于一季度是一个比较强的 收入的 恢复。那想请管理层分享一下我们看到背后的 原因有哪些? 谢谢。

Speaker #7: But after the very strong first half results, I'm just wondering how management thinks about the second half outlook. If my calculation is correct, I believe that toward the high end of your guidance, the second half growth implied is only around single-digit growth.

Speaker #7: Just wondering how should we think about the second half outlook. secondly is regarding the retail, IDC business. As I see, there's, some, revenue decline.

Speaker #7: On this, retail IDC, revenue in the second quarter of this year versus, stronger first quarter. Just wondering what is the reason behind. now,很快翻译一下, 呃, , 感谢管理层接受我的提问, 也非常恭喜这个很强劲的业绩。那我第一条问题是关于我们今年全年的一个, 呃, guidance 的。那我也看到在两个月前我们也, 呃, 把今年全年的 guidance, 呃, 向上有所提高, 但是在一个非常强劲的上半年的业绩之后, 其实我倒算下来可能下半年的增速大概就是在一个个位数的情况。那想请管理层分享一下我们现在对于下半年整体的增速的预期是怎样。那第二条问题是关于我们的零售的 IDC 的业务的。那我看到二季度零售 IDC 的收入有一些略微的下滑, 相对于一季度是一个比较强的, 呃, 收入的, 呃, 恢复。那想请管理层分享一下我们看到背后的, 呃, 原因有哪些。谢谢。 嗯, 好, 我来回答一下你的问题啊。就是, 呃, 确实是正如你说的, 我们, 呃, 即使是上调了 guidance 以后, 呃, 目前的 guidance 仍然显得比较保守。呃, 我们的核心考量是, 呃, 我们也在观察, 呃, 如果, 呃, 这个客户的这个, 呃, 上架速度不受这个芯片供应的影响的情况下, 那下半年我们 wholesale 的这个业务的上架仍然保持目前的一个速度。那假如是这样的话呢, 我们可能会考虑进一步的再调整全年的 guidance。 thank you for your question.

Qiyu Wang: 我来回答一下你的问题。确实是正如你说的, 我们即使是上调了 guidance 以后, 目前的 guidance 仍然显得比较保守。我们的核心考量是我们也在观察, 如果这个客户的这个上架速度不受这个 AI chip 供应的影响的情况下, 那下半年我们 wholesale 的这个业务的上架仍然保持目前的一个速度。那假如是这样的话呢, 我们可能会考虑进一步的再调增全年的 guidance。

Xinyuan Liu: Thank you for your question. I think that mentioned in spite of the upgrading in the guidance, the guidance for the second half of this year is still relatively conservative. Our consideration is that we needed to watch and see if the utilization speed and the pace of our customer or client will not be affected by the chips. If so, and if our wholesale utilization business can maintain its speed, I think we can upgrade the guidance for the second half of the year.

Speaker #7: The information in spite of the, upgrading in the guidance, I think, the guidance for the second half of this year is still relatively conservative, so our consideration is that we needed to watch, we needed to, watch and see that, if the utilization speed and the pace of our customer or client, will not be affected by the chips.

Speaker #7: So if so, and if our wholesale utilization, business can maintain its speed, I think we can upgrade the guidance for the second half of the year.

Speaker #7: So So indeed,第二个说到, 呃, 零售 IDC 收入其实是正常, 没有什么, 我们没有看到稍微有一点下降, 实际都是一些正常的波动。我们零售业务整体上是比较平稳的, 而且我们预计后面应该还会有一定的这个涨幅。 And your second question is relatively to the IDC revenue from, for the retail business.

Qiyu Wang: 对, 你第二个说到零售 IDC 收入其实是正常, 没有什么, 我们没有看到稍微有一点下降, 实际都是一些正常的波动。我们零售业务整体上是比较平稳的, 而且我们预计后面应该还会有一定的这个涨幅。

Xinyuan Liu: Your second question is relatively to the IDC revenue for the retail business. Yes, there can be some slight decline, but I think it's still within the reasonable range. I think the revenue for the retail IDC will maintain relatively stable and even some increase.

Speaker #7: so yes, there can be some slight decline but I think it's still within the reasonable range. And I think, the revenue for the retail IDC will maintain a relatively stable, and even some increase.

Speaker #8: Next question, please.

Speaker 8: Next question, please.

Speaker #6: Your next question comes from Andy Yu with DBS.

Speaker 2: Your next question comes from Andy Yu with DBS.

Speaker #7: Hi, thank you for taking my question. Congratulations on a solid result. I have a question regarding the second half outlook. Could management share some color on whether the rapid momentum of client looping can be sustained? Also, do we expect that the impact of AI chip supply constraints could affect new orders or customer movements in the second half of '25?

Tom Tang: Hi, thank you for taking my question. Congratulations on the solid result. I have a question regarding the second half outlook. Could management share some color on whether the rapid momentum of client lift-in can be sustained? Also, do we expect that the impact of AI chip supply constraints could affect new orders or customer lift-ins in the second half of 2025? Let me translate the question. 恭喜公司取得很好的业绩。我想问一个关于下半年涨万的问题, 管理层能不能分享一下客户上架加速的这个好势头能不能持续? 另外, 关于AI芯片供应的问题, 我们会不会担心它对下半年的新订单和上架带来影响? 谢谢。

Speaker #7: let me translate the question. 恭喜公司取得很好的业绩。我想问一个关于下半年展望的问题。啊, 管理层能不能分享一下, 呃, 客户上架加速的这个好处头能不能持续? 啊, 另外关于 AI 芯片供应的问题, 呃, 我们会不会担心它对下半年的新订单和上架带来影响? 谢谢。

Speaker #8: 好, 谢谢您的问题。我来回答您这个问题。呃, 关于今年下半年的情况呢, 我们参照上半年的我们比对来看, 我们对下半年的发展呢仍然保持一定的非常乐观的一个, 一个分析和判断。同时呢, 根据我们公司自己的上半年交付的任务, 我们也分析了下半年, 呃, 市场对于, 呃, 客户对于订单的释放的这个大概的一个规律。所以我们会在下半年呢, 积极的争取获得这些订单。所以总的来说呢, 我们保持了一个非常好的一个积极的一个乐观的一个判断。同时呢, 对于, 呃, 客户的这个上架节奏呢, 我们经过这么长时间来的服务于客户的经验, 只要客户定下来订单以后, 他们会, 呃, 上架的节奏会非常的快。好, 第一。

Ju Ma: 好, 谢谢您的问题。我来回答您这个问题。关于今年下半年的情况呢, 我们参照上半年的我们比对来看, 我们对下半年的发展呢, 仍然保持一定的非常乐观的一个分析和判断。同时呢, 根据我们公司自己的上半年交付的任务, 我们也分析了下半年市场对于客户对于订单的释放的这个大概的一个规律。所以我们会在下半年呢, 积极的争取获得这些订单。所以总的来说呢, 我们保持了一个非常好的一个积极的一个乐观的一个判断。同时呢, 对于客户的这个上架节奏呢, 我们经过这么长时间来的服务于客户的经验, 只要客户定下来订单以后, 他们会上架的节奏会非常的快。好, 谢谢。

Speaker #7: So, for the outlook for the second half of this year, I think if we compare the second half with the first half of this year, I am relatively optimistic about the second half.

Xinyuan Liu: As for the outlook for the second half of this year, I think if we compare the second half with the first half of this year, I am relatively optimistic about the second half. Because if we take into account the delivery in the first half of this year, and we will also closely follow the rules of the new orders unleashed by our client, I think we will be very optimistic generally about the second half of this year. Also, as for the move-in pace of our client, I think according to the practice, once the order has been confirmed, we usually have a very fast move-in pace.

Speaker #7: because, if we take into account, the delivery of the, or the delivery in the first half of this year and then we will also closely, follow the rules, of the new orders unleashed by our client, and I think, we will be very optimistic generally about the second half of this year.

Speaker #7: And also, as for the move-in pace of our, client, I think according to the, practice, once the, order has been confirmed, we usually have very fast move-in pace.

Speaker #8: 关于正常您观察到的, 就是关于 AI 芯片的一些供给情况, 我们也在密切的关注。那么无论是英伟达的芯片还是国产的芯片, 我们相信呢都会很快呢有个非常非常明朗的预期。同时根据之前我们服务于客户的情况, 我们我们已经关已经深刻的体会到, 客户的需求一旦确定, 上架节奏会非常快。而这个这而这里来讲的话呢, 在激励型的, 呃, 项目当中我们已经反复的和核心客户确认, 目前公司在走在走订单上架的节奏不会受影响。

Ju Ma: 关于就像您观察到的, 就是关于AI芯片的一些供给情况, 我们也在密切的关注。那么无论是Nvidia的芯片还是国产的芯片, 我们相信呢, 都会很快呢, 有个非常非常明朗的预期。同时, 根据之前我们服务于客户的情况, 我们已经深刻的体会到客户的需求一旦确定, 上架节奏会非常快。而这里来讲的话呢, 在基地型的项目当中, 我们已经反复的和核心客户确认, 目前公司在手订单上架的节奏不会受影响。

Speaker #7: And also, as for the supply of the chips for AI, we will closely follow companies like Nvenda, Nvenda's chips, and also the domestic chips. I think the expectation will be very clear, very soon. According to our experiences of serving our clients or customers, I think once the order is confirmed, the move-in pace will be very fast.

Xinyuan Liu: As for the supply of the AI chips, we will closely follow companies like Nvidia chips and also the domestic chips. I think the expectation will be very clear very soon. According to our experiences of serving our clients or customers, I think once the order is confirmed, the move-in pace will be very fast. As for the wholesale business, we have also confirmed with the core client that the orders at hand for most of our clients will not be affected.

Speaker #7: And also, as for the wholesale business, we have confirmed with the core client that the orders at hand for most of our clients will not be affected.

Speaker #8: Next question, please.

Speaker 8: Next question, please.

Speaker #6: Your Your next question comes from Sarah Wang with UBS.

Speaker 2: Your next question comes from Sarah Wang with DBS.

Speaker #8: Thank you for the, opportunity to ask a question. And again, congratulations on the very solid results. I only have one question is that, management just mentioned that there could be potential new, tenders from the, customers.

Speaker 8: Thank you for the opportunity to ask a question. Again, congratulations on the very solid results. I only have one question. Management just mentioned that there could be potential new tenders from the customers. Do we expect similar customers and similar workload going forward, or could there be some change? 感谢提问的机会。那再次恭喜公司管理层取得非常强劲的业绩。就一个很快的问题, 因为刚刚管理层提到可能之后客户会有更多释放出来的需求, 那请问这个客户的这个profile是跟之前比较像, 或者说他们的这个需求的类型是训练还是推理, 这个跟之前我们会预计会有一些变化吗? 谢谢。

Speaker #8: do we expect similar customers and similar workload, going forward, or there could be some change? Uh,感谢提问的机会。那再次恭喜公司管理层取得非常强劲的业绩。呃, 就一个很快的问题, 因为刚刚管理层提到可能之后客户会有更多释放出来的需求, 那请问这个客户, 嗯, 呃, 的这个, 呃, profile 是跟之前比较像, 或者说他们的这个需求的类型是训练还是推理, 这个跟之前会我们会预计会有一些变化吗?

Speaker #8: 谢谢。

Speaker #7: 对, 谢,

Ju Ma: 对, 谢谢。我来回答您的一个问题。从目前来看的话呢, 一个呢是, 我们现在的客户呢, 会逐步的释放他们的需求。从我们目前来看的话, 对于这个需求侧来讲, 它的这个业务的属性和对AI这方面的需求呢, 目前看没有什么太大的变化。

Speaker #8: 我来回答您的一个问题。从目前来看的话呢, 一个呢是, 呃, 我们现在的客户呢, 呃, 会逐步的释放他们的需求。从我们目前来看的话, 对于这个需求侧来讲, 它的, 呃, 这个业务的方, 呃, 属性和对 AI 这方面的需求呢, 目前看, 呃, 没有什么太大的变化。

Speaker #7: 嗯, so thank you for your question. I think our client will unleash it, their demand gradually, and from the demand side, I think, in terms of the business, the demand for AI, remain unchanged.

Xinyuan Liu: Thank you for your question. I think our client will unleash their demand gradually. From the demand side, I think in terms of the business, the demand for AI remains unchanged.

Speaker #8: Next question, please.

Speaker 8: Next question, please.

Speaker #6: Your next question comes from Min Ren Li with CICC. Min Ren Li, your line is open with CICC. Min Ren Li, your line is open for your question.

Speaker 2: Your next question comes from Ming Ran Li with CICC. Ming Ran Li, your line is open with CICC. Ming Ran Li, your line is open for your question. We will just pause for a moment to see if we will have Ming Ran back in the queue. That does conclude our call and conference for today. Thank you for participating. You may now disconnect.

Speaker #6: We will just pause for a moment to see if we'll have Min Ren back in the queue. That does conclude our call and conference for today.