Q1 2026 VNET Group Inc Earnings Call

May 26, 2026

Speaker #2: Hello, ladies and gentlemen. Thank you for standing by for the first quarter 2026 earnings conference call for VNET Group, Inc. After the management's prepared remarks, there will be a question-and-answer session.

Operator 2: Hello, ladies and gentlemen. Thank you for standing by for the Q1 2026 earnings conference call for VNET 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 language line. Participants from our management include Ms. Sharon Liu, Rotating President, Mr. Peter Zhang, SVP of Operational Finance, Ms. Xinyuan Liu, Head of Investor Relations of 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.

Operator: Hello, ladies and gentlemen. Thank you for standing by for the Q1 2026 Earnings Conference Call for VNET 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 language line. Participants from our management include Ms. Sharon Liu, Rotating President, Mr. Peter Zhang, SVP of Operational Finance, Ms. Xinyuan Liu, Head of Investor Relations of 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 listen-only mode. If you wish to ask questions, please dial in through the English language line. Participants from our management include Ms. Sharon Liu, Rotating President; Mr. Peter Zhang, SVP of Operational Finance; and Ms. Xinyuan Liu, Head of Investor Relations of the company.

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. Please go ahead.

Speaker #3: Thank you all, Peter. Hello, everyone, and welcome to our first quarter 2026 earnings conference call. Our earnings release was distributed earlier today, and you can find a copy on our IR site as well as on newswire services.

Xinyuan Liu: Thank you, operator. Hello, everyone, and welcome to our Q1 2026 Earnings Conference Call. Our earnings release was distributed earlier today, and you can find a copy on our IR site as well as on Newswire 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 of these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC. VNET does not undertake any obligations to update any forward-looking statements except as required under applicable laws. Please also note that VNET's earnings release and this conference call include the disclosure of audited GAAP and non-GAAP financial measures.

Xinyuan Liu: Thank you, operator. Hello, everyone, and welcome to our Q1 2026 Earnings Conference Call. Our earnings release was distributed earlier today, and you can find a copy on our IR site as well as on Newswire Services. Please note that today's call will contain forward-looking statements made under the safe harbor provisions of the US 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 of these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC. VNET does not undertake any obligations to update any forward-looking statements except as required under applicable laws. Please also note that VNET's earnings release and this conference call include the disclosure of audited GAAP and non-GAAP financial measures.

Speaker #3: 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.

Speaker #3: For detailed discussions of these risks and uncertainties, please refer to our latest annual report and other documents filed with the SEC. VNET 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 audited GAAP and non-GAAP financial matters. VNET's earnings press release contains a reconciliation of the audited non-GAAP matters to the audited GAAP matters.

Xinyuan Liu: VNET's earnings release contains a reconciliation of the audited non-GAAP measures to the audited GAAP measures. A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our IR 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 Ms. Sharon Liu, our Rotating President, and Mr. Peter Zhang, our SVP of Operational Finance. 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 site at ir.vnet.com. Now let's get started with today's presentation. Ms. Liu, please go ahead.

Speaker #3: A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our IR site 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 Ms. Sharon Liu.

Speaker #3: Our rotating president and Mr. Peter Zhang, our SVP of operational finance, will be joining us. The management team will join the Q&A session in person. Additionally, this conference is being recorded.

Speaker #3: A webcast of this conference call will also be available on our IR site at ir.vnet.com. Now, let's get started with today's presentation.

Speaker #2: Ms. Liu.

Speaker #3: Please go ahead.

Speaker #2: 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 first quarter of 2026.

Sharon Liu: Good morning and good evening, everyone. Thank you for joining our call today. I'll start with an overview of our major accomplishments during Q1 2026. We began this year with strong results, thanks to strong execution of our effective dual-core strategy and Hyperscale 2.0 framework. On the operational side, our wholesale IDC business delivered robust growth driven by strong customer demand and fast customer move-ins. As of 31 March 2026, our wholesale capacity in service rose by 18 MW to 907 MW, in line with our plan to concentrate our capacity expansion deliveries in H2 of the year. Meanwhile, driven by customers' fast move-ins, wholesale capacity utilized by customers grew by 64 MW to 687 MW, bringing the utilization rate to 75.7%, up 5.6 percentage points quarter-over-quarter. Our retail IDC business continued to progress smoothly, supported by growing AI-driven demand.

Speaker #2: We began this year with strong results, thanks to strong execution of our effective dual-core strategy and Hyperscale 2.0 framework. On the operational side, our wholesale IDC business delivered robust growth, driven by strong customer demand and fast customer move-ins, as of March 31, 2026.

Speaker #2: Our wholesale capacity in service rose by 18 megawatts to 907 megawatts, in line with our plan to concentrate our capacity expansion deliveries in the second half of the year.

Speaker #2: Meanwhile, driven by customers' fast move-ins, wholesale capacity utilized by customers grew by 64 megawatts to 687 megawatts, bringing the utilization rate to 75.7%, up 5.6 percentage points quarter over quarter.

Speaker #2: Our retail IDC business continued to progress smoothly, supported by growing AI-driven demand. Retail MRR per cabinet increased slightly to RMB 9,448 sequentially, and retail utilization rate remained stable at 64.1% during the first quarter.

Sharon Liu: Retail MRR per cabinet increased slightly to RMB 9,448 sequentially, and retail utilization rate remained stable at 64.1% during the Q1. On the financial side, our total net revenues increased by 19.8% year over year to RMB 2.69 billion for the Q1. Wholesale revenues remained the key growth driver, reaching RMB 1.06 billion, a significant year over year increase of 58.1%. Our adjusted EBITDA for the Q1 also increased by 30.6% year over year to RMB 891.5 million, driven by the strong growth of our wholesale IDC business. In addition, our premium reliable services continue to earn customer trust and gain market share, evidenced by multiple high-quality order wins totaling 519 MW year to date 2026. I will go through the details on the next slide. Moving on to our new order wins on Slide five.

Speaker #2: On the financial side, our total net revenues increased by 19.8% year over year to RMB 2.69 billion for the first quarter. Wholesale revenues remained the key growth driver, reaching RMB 1.06 billion, a significant year-over-year increase of 58.1%.

Speaker #2: Our adjusted EBITDA for the first quarter also increased by 30.6% year over year, to RMB 891.5 million, driven by the strong growth of our wholesale IDC business.

Speaker #2: In addition, our premium, reliable services continue to earn customer trust and gain market share, evidenced by multiple high-quality order wins. Totaling 519 megawatts year-to-date 2026, I will go through the details on the next slide.

Speaker #2: Moving on to our new order wins on slide 5. Year-to-date 2026, order momentum remained strong, with three wholesale orders secured totaling 517 megawatts, fueled by continued growth in AI-driven demand for high-quality data center resources.

Sharon Liu: Year to date 2026 order momentum remained strong with three wholesale orders secured totaling 517 MW, fueled by continued growth in AI-driven demand for high-quality data center resources. We secured two orders, 110 MW and 400 MW from an internet customer at separate data centers in the Greater Beijing area. Meanwhile, another data center in the Greater Beijing area won a 7 MW order from a local services customer. Bolstered by AI-driven demand, we also secured new retail orders totaling approximately 2 MW across multiple retail data centers from customers in the local services, internet, and IT services sectors. This robust order momentum underscores our strengthened competitive positioning and growing ability to capture market share. At the same time, continued policy support for AI plus initiatives is reinforcing industry tailwinds. Authorities are promoting the development of large-scale

Speaker #2: We secured two orders—110 megawatts and 400 megawatts—from an internet customer at separate data centers in the Greater Beijing area. Meanwhile, another data center in the Greater Beijing area won a 7-megawatt order from a local services customer.

Speaker #2: Furthermore, bolstered by AI-driven demand, we also secured new retail orders totaling approximately 2 megawatts across multiple retail data centers from customers in the local services, internet, and IT services sectors.

Speaker #2: This robust order momentum underscores our strengthened competitive positioning and growing ability to capture market share. At the same time, continued policy support for AI+ initiatives is reinforcing industry tailwinds.

Speaker #2: Authorities are promoting the development of large-scale, clustered green computing infrastructure, which is accelerating the broader adoption of computing power across industries and further expanding the addressable market.

Sharon Liu: Clustered green computing infrastructure, which is accelerating the broader adoption of computing power across industries and further expanding the addressable market. Meanwhile, driven by the AI industry's rapid progress, demand for AI-related computing power and data center resources is surging, driving the industry into a new growth phase. However, the effective supply of high-quality data centers remains relatively limited, constrained by utility and power quotas limitations in core regions. Against this backdrop, IDC players with long-term industry accumulation, sufficient resource reserves, and project deployments in core regions are best positioned to fully capture the structural opportunities arising from the expansion of AI demand. As a pioneer in AIDC, VNET is poised to benefit from these structural shifts. Our high-performance, large-scale data center clusters, coupled with a robust resource pipeline in core regions, represent a significant advantage.

Speaker #2: Meanwhile, driven by the AI industry's rapid progress, demand for AI-related computing power and data center resources is surging, driving the industry into a new growth phase.

Speaker #2: However, the effective supply of high-quality data centers remains relatively limited, constrained by utility and power quota limitations in core regions. Against this backdrop, IDC players with long-term industry accumulation, sufficient resource reserves, and project deployments in core regions are best positioned to fully capture the structural opportunities arising from the expansion of AI demand.

Speaker #2: As a pioneer in AIDC, VNET is poised to benefit from these structural shifts. Our high-performance, large-scale data center clusters, coupled with a robust resource pipeline in core regions, represent a significant advantage.

Speaker #2: Furthermore, our proven track record in rapid delivery, and operation and maintenance excellence, are our competitive strengths that are becoming increasingly difficult to replicate at scale.

Sharon Liu: Furthermore, our proven track record in rapid delivery and operation and maintenance excellence are competitive strengths that are becoming increasingly difficult to replicate at scale. Supported by favorable policies and an ongoing structural transformation within the industry, we are confident in our ability to consistently capture emerging market opportunities and cement our leadership position. Now let's delve into our business updates, starting with our wholesale business on slide seven. Our wholesale business continued to grow, with capacity in service increasing by 18 MW quarter-over-quarter to 907 MW. Utilized capacity grew by 64 MW sequentially to 687 MW, driving the utilization rate up to 75.7% from 70.1% last quarter, mainly attributable to customers' fast move-ins at N-OR Campus 02A and N-HB Campus 03. Our mature capacity utilization rate also reached 93.8%, a relatively high level. We have a clear growth path for our wholesale data center capacity.

Speaker #2: Supported by favorable policies and an ongoing structural transformation within the industry, we are confident in our ability to consistently capture emerging market opportunities and cement our leadership position.

Speaker #2: Now, let's delve into our business updates, starting with our wholesale business on slide 7. Our wholesale business continued to grow, with capacity in service increasing by 18 megawatts quarter over quarter, to 907 megawatts.

Speaker #2: Utilized capacity grew by 64 megawatts sequentially, to 687 megawatts, driving the utilization rate up to 75.7% from 70.1% last quarter. This was mainly attributable to customers' fast move-ins at NOR campus 02A and NHB campus 03.

Speaker #2: Our mature capacity utilization rate also reached 93.8%, a relatively high level. We have a clear growth path for our wholesale data center capacity. Let's move on to slide 8.

Sharon Liu: Let's move on to Slide eight. Our total wholesale resource capacity continued its upward trajectory, reaching 2.48 gigawatts as of March 31, 2026. Specifically, our capacity under construction rose to 516 megawatts with a pre-commitment rate of 85.8% year to date 2026. Capacity held for short-term and long-term future development grew to 697 megawatts and 359 megawatts, respectively. It is worth noting that the majority of the capacity reserved for future development is driven by resources we have secured at our Ulanqab IDC campus, demonstrating our ability to secure critical resources and rapidly scale capacity in strategic regions. Our secured resources provide us with a meaningful competitive edge, particularly given the tightening effective supply in the IDC industry, and reinforce our confidence in the long-term growth potential driven by AI-related demand. Moving to our retail IDC business on Slide nine. Our retail business progressed smoothly in Q1.

Speaker #2: Our total wholesale resource capacity continued its upward trajectory, reaching 2.48 gigawatts as of March 31, 2026. Specifically, our capacity under construction rose to 516 megawatts, with a pre-commitment rate of 85.8% year-to-date 2026.

Speaker #2: Capacity held for short-term and long-term future development grew to 697 megawatts and 359 megawatts, respectively. It's worth noting that the majority of the capacity reserved for future development is driven by resources we have secured at our Wulanshabu IDC campus, demonstrating our ability to secure critical resources and rapidly scale capacity in strategic regions.

Speaker #2: Our secured resources provide us with a meaningful competitive edge, particularly given the tightening effective supply in the IDC industry, and reinforce our confidence in the long-term growth potential driven by AI-related demand.

Speaker #2: Moving to our retail IDC business on slide 9. Our retail business progressed smoothly in the first quarter. Retail capacity in service increased to 50,170 cabinets.

Sharon Liu: Retail capacity in service increased to 50,170 cabinets from 49,863 cabinets last quarter. The utilization rate remained stable at 64.1% as of the end of March. MRR per retail cabinet slightly increased to RMB9,448 this quarter. Turning to our delivery plan on Slide 10. We delivered 18 MW in Q1 2026, in line with our delivery plan, which concentrates the majority of the year's deliveries in H2. We currently have eight data centers under construction, with seven in the Greater Beijing area and one in the Yangtze River Delta.

Speaker #2: From 49,863 cabinets last quarter, the utilization rate remained stable at 64.1% as of the end of March. MRR per retail cabinet slightly increased to RMB 9,448 this quarter.

Speaker #2: Turning to our delivery plan on slide 10. We delivered 18 megawatts in the first quarter of 2026. In line with our delivery plan, which concentrates the majority of the year's deliveries in the second half, we currently have eight data centers under construction, with seven in the Greater Beijing area and one in the Yangtze River Delta.

Speaker #2: We plan to deliver 516 megawatts of capacity over the next 12 months, around 250 megawatts during the second and third quarters of 2026, and around 266 megawatts during the fourth quarter of 2026.

Sharon Liu: We plan to deliver 516MW of capacity over the next 12 months, around 250MW during the Q2 and Q3 of 2026, and around 266MW during the Q4 of 2026 and the Q1 of 2027, with the majority allocated to our data centers at the Ulanqab IDC campus to meet the strong demand from wholesale customers. In conclusion, our Q1 performance demonstrated both strategic effectiveness and execution strength. Looking forward, we will remain focused on advancing our dual-core strategy and Hyperscale 2.0 framework, further developing our scalable green data center clusters, and enhancing our comprehensive AIDC solutions to meet growing AI-driven demand. In parallel with our long-term strategy, we have also strengthened our shareholder base by welcoming new strategic investors.

Speaker #2: And the first quarter of 2027, with a majority allocated to our data centers at the Wulanshabu IDC campus to meet the strong demand from wholesale customers.

Speaker #2: In conclusion, our first quarter performance demonstrated both strategic effectiveness and execution strength. Looking forward, we will remain focused on advancing our dual-core strategy and Hyperscale 2.0 framework, further developing our scalable green data center clusters, and enhancing our comprehensive AIDC solutions to meet growing AI-driven demand.

Speaker #2: In parallel with our long-term strategy, we have also strengthened our shareholder base by welcoming new strategic investors. Affiliates of CATL have entered into a share purchase agreement to acquire up to approximately 38.1% of our shares from subsidiaries of Shandong High-Speed Holdings Group.

Sharon Liu: Affiliates of CATL have entered into a share purchase agreement to acquire up to approximately 38.1% of our shares from subsidiaries of Shandong Hi-Speed Holdings Group, with closing expected in Q4 of this year. We would also like to express our sincere appreciation to Shandong Hi-Speed Holdings Group for their trust in our vision and years of partnership and support in our growth journey with CATL's entry. We believe that this new relationship will generate meaningful strategic synergies, and bring opportunities for fruitful collaboration across technological innovation, supply chain, and next-generation AI data center development, enhancing our long-term competitiveness and growth momentum. Overall, we remain confident in capturing the growth opportunities ahead and delivering sustainable long-term value for all shareholders. Now, I will turn the call over to our SVP of Operational Finance, Peter, for a further discussion of our operating and financial performance. Thank you, everyone.

Speaker #2: With closing expected in the fourth quarter of this year, we would also like to express our sincere appreciation to Shandong High-Speed Holdings Group for their trust in our vision and years of partnership, and support in our growth journey, with CATL's entry.

Speaker #2: We believe that this new relationship will generate meaningful strategic synergies and bring opportunities for fruitful collaboration across technological innovation, supply chain, and next-generation AI data center development.

Speaker #2: Enhancing our long-term competitiveness and growth momentum, overall, we remain confident in capturing the growth opportunities ahead and delivering sustainable long-term value for all shareholders.

Speaker #2: Now, I will turn the call over to our SVP of Operational Finance, Peter, for further discussion of our operating and financial performance. Thank you, everyone.

Speaker #3: Good morning and good evening, everyone. Before we start the detailed discussion of our financial performance, please note that, unless otherwise stated, all the financials we present today are for the first quarter of 2026 and are in renminbi terms.

Peter Zhang: Good morning and good evening, everyone. Before we start the detailed discussion of our financial performance, please note that, unless otherwise stated, all the financials we present today are for Q1 2026 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 12. In Q1, we continued to focus on high-quality development. Our total net revenues increased by 19.8% to RMB 2.69 billion, mainly driven by the rapid growth of our wholesale business. Our adjusted cash gross profit rose by 25.1% to RMB 1.21 billion, while our adjusted EBITDA also grew year-over-year by 30.6% to RMB 891.5 million. Let's look more closely at our top line. As you can see on Slide 13, we have a new milestone this quarter as wholesale revenues have surpassed retail revenues for the first time.

Speaker #3: Furthermore, unless otherwise specified, all the growth rates I am reviewing are on a year-over-year basis. Let's turn to slide 12. In the first quarter, we continued to focus on high-quality development.

Speaker #3: Our total net revenues increased by 19.8% to RMB 2.69 billion. Mainly driven by the rapid growth of our wholesale business, our adjusted cash gross profit rose by 25.1% to RMB 1.21 billion.

Speaker #3: While our adjusted EBITDA also grew year-over-year by 30.6% to RMB 891.5 million, let's look more closely at our top line. As you can see on slide 13, we have a new milestone this quarter, as wholesale revenues have surpassed retail revenues for the first time.

Speaker #3: Wholesale revenues, our key revenue growth driver, increased significantly by 58.1% to RMB 1.06 billion for the first quarter. Mainly attributable to activity at the NOR Campus 01 and NOR Campus 02A, retail revenues increased by 5.4% to RMB 1.02 billion for the first quarter.

Peter Zhang: Wholesale revenues, our key revenue growth driver, increased significantly by 58.1% to RMB 1.06 billion for the first quarter, mainly attributable to activity at the N-OR Campus 01 and N-OR Campus 02A. Retail revenues increased by 5.4% to RMB 1.02 billion for the first quarter. Our non-IDC business revenues increased by 0.3% to RMB 606.6 million for the first quarter. During the first quarter, we maintained solid margins, thanks to ongoing efficiency enhancement initiatives. As shown on Slide 14, our adjusted cash gross margin improved to 45% from 43.1% in the same period last year. Our adjusted EBITDA margin rose to 33.1%, compared with 30.4% in the same period last year. Moving on to liquidity on Slide 15, we maintained robust and healthy liquidity. Our net operating cash inflow reached RMB 173.7 million during the first quarter.

Speaker #3: Our non-IDC business revenues increased by 0.3% to RMB 606.6 million for the first quarter. During the first quarter, we maintained solid margins thanks to ongoing efficiency enhancement initiatives.

Speaker #3: As shown on slide 14, our adjusted cash growth margin improved to 45% from 43.1% in the same period last year. Our adjusted EBITDA margin rose to 33.1%, compared with 30.4% in the same period last year.

Speaker #3: Moving on to liquidity, on slide 15, we maintained robust and healthy liquidity; our net operating cash inflow reached RMB 173.7 million during the first quarter.

Speaker #3: Excluding the impact of RMB 119.1 million in income tax related to capital transactions and other one-off items, the net operating cash inflow for this quarter would be RMB 292.8 million.

Peter Zhang: Excluding the impact of RMB 119.1 million in income tax related to capital transactions and other one-off items, the net operating cash inflow for this quarter would be RMB 292.8 million. Our cash position remains solid, with total cash and cash equivalents, restricted cash, and short-term investments reaching RMB 8.8 billion as of 31 March 2026. Next, let's take a look at our debt structure on Slide 16. We maintained our prudent approach to debt management. As of 31 March 2026, our net debt to the adjusted last quarter annualized EBITDA ratio was 3.8, and total debt to the adjusted last quarter annualized EBITDA ratio was 6.1, both remaining at healthy levels. Our adjusted trailing 12 months EBITDA to interest coverage ratio was 5.8. We prioritize long-term debt maturity planning in our debt and strategic management to ensure the security of debt repayment.

Speaker #3: Our cash position remained solid, with total cash and cash equivalents, restricted cash, and short-term investments reaching RMB 8.8 billion as of March 31, 2026.

Speaker #3: Next, let's take a look at our debt structure on slide 16. We maintained our prudent approach to debt management. As of March 31, 2026, our net debt to the adjusted last quarter annualized EBITDA ratio was 3.8, and total debt to the adjusted last quarter annualized EBITDA ratio.

Speaker #3: Our adjusted trailing 12-month EBITDA to interest coverage ratio was 5.8. Both were remaining at healthy levels. We prioritize long-term debt maturity planning in our debt and strategic management to ensure the security of debt repayment.

Speaker #3: Currently, the company's short- and medium-term debt maturing in 2026 to 2028 comprises 45.8% of our total debt. Turning now to CapEx spending on slide 17.

Peter Zhang: Currently, the company's short- and medium-term debt maturing in 2026 to 2028 comprises 45.8% of our total debt. Turning now to CapEx spending on Slide 17. Our CapEx was RMB1.91 billion in Q1, with the majority allocated to the expansion of our wholesale IDC business. We continue to expect our CapEx for the full year 2026 to be in the range of RMB10 billion to RMB12 billion, mainly to support our planned delivery of 450 to 500 MW in 2026. We continued to advance our asset monetization strategy and made meaningful progress during Q1. As we mentioned on our last call, in March 2026, two of our private REIT projects were successfully listed on the Shanghai Stock Exchange, with a combined offering size of approximately RMB6.36 billion and an EV to EBITDA multiple of around 13x to 14x.

Speaker #3: Our CapEx was RMB 1.91 billion in the first quarter, with the majority allocated to the expansion of our wholesale IDC business. We continue to expect our CapEx for the full year 2026 to be in the range of RMB 10 billion to RMB 12 billion.

Speaker #3: Mainly to support our planned delivery of 450 to 500 megawatts in 2026. We continue to advance our asset monetization strategy and made meaningful progress during the first quarter.

Speaker #3: As we mentioned on our last call, in March 2026, two of our private rate projects were successfully listed on the Shanghai Stock Exchange, with a combined offering size of approximately RMB 6.36 billion and an EV to EBITDA multiple of around 13 times to 14 times.

Speaker #3: By establishing a scalable, efficient capital recycling model, these rate listings give us an advantage in this inherently capital-intensive industry, allowing us to reinvest in new project development.

Peter Zhang: By establishing a scalable, efficient capital recycling model, these REIT listings give us an advantage in this inherently capital-intensive industry, allowing us to reinvest in new project development. We expect to realize no less than RMB 2 billion in total cash proceeds from our REIT-related initiatives this fiscal year, substantially strengthening our liquidity position and setting a new benchmark for sustainable growth in digital infrastructure. Now moving to our full year guidance for 2026 on slide 18. As we expect strong demand from our wholesale IDC customers and ongoing operational efficiency gains throughout 2026, we expect total net revenues to be in the range of RMB 11.5 to 11.8 billion, a year-over-year increase of 15.6% to 18.6%, and adjusted EBITDA to be in the range of RMB 3.55 to 3.75 billion, representing a year-over-year increase of 19.2% to 25.9%. The above outlook remains unchanged from the previously provided estimates.

Speaker #3: We expect to realize no less than RMB 2 billion in total cash proceeds from our REIT-related initiatives this fiscal year, substantially strengthening our liquidity position and setting a new benchmark for sustainable growth in digital infrastructure.

Speaker #3: Now, moving to our full-year guidance for 2026. On slide 18, as we expect strong demand from our wholesale IDC customers and ongoing operational efficiency gains throughout 2026, we expect total net revenues to be in the range of RMB 11.5 billion to RMB 11.8 billion.

Speaker #3: A year-over-year increase of 15.6% to 18.6%. And adjusted EBITDA to be in the range of RMB 3.55 billion to RMB 3.75 billion, representing a year-over-year increase of 19.2% to 25.9%.

Speaker #3: The above outlook remains unchanged from the previously provided estimates. Before I conclude, I'd like to briefly update you on our ESG efforts. Sustainability remains important to our business strategy, supporting our operational excellence and long-term growth.

Peter Zhang: Before I conclude, I'd like to briefly update you on our ESG efforts. Sustainability remains important to our business strategy, supporting our operational excellence and long-term growth. In April, we published our sixth ESG report highlighting our ESG progress and achievements in 2025. Our average annual power usage efficiency improved to 1.24 in 2025 compared with 1.27 in 2024. Total renewable energy consumption accounted for 36% of total resources utilized by VNET in 2025, compared with 18% in 2024. These accomplishments also won continued recognition from leading ESG rating agencies. We were included in the global edition of the S&P Global Sustainability Yearbook for two consecutive years, 2025 and 2026, and were also selected for the China edition for four consecutive years, where we were once again recognized among the top 1% in IT services industry.

Speaker #3: In April, we published our sixth ESG report, highlighting our ESG progress and achievements in 2025. Our average annual power usage efficiency improved to 1.24 in 2025.

Speaker #3: Compared with 1.27 in 2024. Total renewable energy consumption accounted for 36% of total resources utilized by VNET in 2025, compared with 18% in 2024.

Speaker #3: These accomplishments also won continued recognition from leading ESG rating agencies. We were included in the global edition of the S&P Global Sustainability Yearbook for two consecutive years, 2025 and 2026, and were also selected for the China edition for four consecutive years, where we were once again recognized among the top 1% in the IT services industry.

Speaker #3: Going forward, we will deepen our commitment to sustainability, strengthening our investments in intelligent infrastructure and green data center operations to create long-term sustainable value.

Peter Zhang: Going forward, we will deepen our commitment to sustainability, strengthening our investments in intelligent infrastructure and green data center operations to create long-term sustainable value. To sum up, we delivered robust Q1 results reflecting continued strong execution and strategic direction. Looking ahead, we will stay focused on strengthening our core capabilities to capture the opportunities arising from accelerating AI adoption and digital transformation, delivering sustainable, high-quality growth and creating long-term value for all stakeholders. This concludes our prepared remarks for today. We are now ready to take questions.

Speaker #3: To sum up, we delivered robust first-quarter results, reflecting continued strong execution and strategic direction. Looking ahead, we will stay focused on strengthening our core capabilities to capture the opportunities arising from accelerating AI adoption and digital transformation.

Speaker #3: Delivering sustainable, high-quality growth and creating long-term value for all stakeholders. This concludes our prepared remarks for today. We are now ready to take questions.

Speaker #1: Thank you. We will now begin the question-and-answer session. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced.

Operator 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. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. 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 Peng from Morgan Stanley.

Operator: 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. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. 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 Peng from Morgan Stanley.

Speaker #1: If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question.

Speaker #1: For the benefit of all participants on today's call, please ask your question to management in English and then repeat it in Chinese. Your first question comes from Tom Tang from Morgan Stanley.

Speaker #2: Thank you, Manager Lin, for the opportunity to ask the question. So again, congratulations on a very strong result and winning the over 500 megawatt order.

Tom Peng: Thank you, management, for the opportunity to ask a question. Again, congratulations on a very strong result and winning the over 500 MW order. My question is on the delivery pattern of the new order. How should we think about the time or the pattern we're going to deliver this 500 MW order? On a quarterly basis, when we will see a significant impact to our revenue and EBITDA from this new order? Are we going to see upside to our current full-year CapEx guidance given we are winning a very large amount of orders?

Tom Tang: Thank you, management, for the opportunity to ask a question. Again, congratulations on a very strong result and winning the over 500 MW order. My question is on the delivery pattern of the new order. How should we think about the time or the pattern we're going to deliver this 500 MW order? On a quarterly basis, when we will see a significant impact to our revenue and EBITDA from this new order? Are we going to see upside to our current full-year CapEx guidance given we are winning a very large amount of orders?

Speaker #2: So my question is on the delivery pattern of the new order. So how should we think about the time or the pattern we're going to deliver this 500 megawatt order and also on a quarterly basis, what is the impact to when or when we will see a significant impact to our revenue and EBITDA from this new order?

Speaker #2: And also, are we going to see upside to our current full-year CapEx guidance given we're winning a very large amount of orders? 首先，感谢管理层给我这个提问的机会，也再次恭喜是一个非常强劲的业绩，以及我们获得这个超过500兆瓦的订单。我的问题主要是关于这个订单的交付节奏。我们应该怎么去看这个500兆瓦订单在未来几个季度的落地时间，以及对我们收入和EBITDA会在什么时候产生比较显著的影响。最后，想请问我们全年的资本开支是否也会有一个潜在上修的可能。谢谢。

Sharon Liu: [Foreign language]

Speaker #3: 谢谢Tom。我来回答你的问题。首先我们这个超过500兆瓦的新订单实际上是会在未来两到三年去分期交付的，也就是会在2026年、27年、28年分期交付。那第一批的交付会发生在2026年的下半年，我们是完全去基于客户的一个交付节奏去上架的。那随着上架，它必然会对我们未来的一些未来三年的收入和EBITDA去产生一个比较正向的影响。即使26年交付的部分公司已经price in在我们的guidance里面了。包括就是我们CapEx的指引也不会做调整，因为整个的交付节奏是分批的，我们的在给资本市场CapEx指引的时候也已经把这个交付节奏反映在里面了。谢谢。

Speaker #2: Thank you, Tom, for your question. This is Sharon. With regard to the 500-megawatt new orders, we are planning to deliver these new orders in the next two to three years.

Peter Zhang: Thank you, Tom, for your question. This is Sharon. With regard to the 500MW new orders, we are planning to deliver these new orders in the next two to three years, effectively from 2026 throughout 2028. We are going to deliver the very first batch in H1 2026.

[Translator]: Thank you, Tom, for your question. This is Sharon. With regard to the 500MW new orders, we are planning to deliver these new orders in the next two to three years, effectively from 2026 throughout 2028. We are going to deliver the very first batch in H1 2026. Based on the pace of our customers moving in pace, so that will translate into some positive impact on our next to three years EBITDA. Also, we are not going to adjust our CapEx guidance for the full year of 2026, because the CapEx guidance we give is actually based on our annual delivery target of 550 to 500MW. Therefore, we are going to keep our annual CapEx guidance untouched.

Speaker #2: Effectively, from 2026 throughout 2028. And we are going to deliver the very first batch in the first, second half of 2026, based on the pace of our clients, our customers moving in pace.

Sharon Liu: Based on the pace of our customers moving in pace, so that will translate into some positive impact on our next to three years EBITDA. Also, we are not going to adjust our CapEx guidance for the full year of 2026, because the CapEx guidance we give is actually based on our annual delivery target of 550 to 500MW. Therefore, we are going to keep our annual CapEx guidance untouched.

Speaker #2: So that will translate into some positive impact on our next three years' EBITDA. And also, we are not going to adjust our CapEx guidance for the full year of 2026, because the CapEx guidance we give is actually based on our annual delivery target of 450 to 500 megawatt.

Speaker #2: Therefore, we're going to keep our annual CapEx guidance untouched.

Speaker #3: Next question, please.

Xinyuan Liu: Next question, please.

Speaker #1: Your next question comes from Edison Lee with Jefferies.

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

Operator: Your next question comes from Edison Lee with Jefferies.

Speaker #4: Hey, hi. Thank you for taking my questions. I have two questions. Number one is that now that CATL has become a strategic investor in VNET, can you maybe share with us how investors should think about the synergies going forward?

Edison Lee: Hi, thank you for taking my questions. I got two questions. Number one is that now that CATL has become a strategic investor in VNET, so can you maybe share with us how investors should think about the synergies going forward? Previously, I think that Shandong Hi-Speed has been building some green power plants in Wuhan to help supply to your data center campus, so I wonder if that is ongoing and whether there will be any change to that. That's number one. Number two is, can you comment on the pricing situation now that you have won pretty good projects? In fact, what are you seeing in terms of pricing trend in the market? Whether you think pricing in 2027 will actually be stable or even going up?

Speaker #4: And also, previously, I think that Shandong High Speed has been building some green power plants in Yunnan to help supply to your data center campus.

Speaker #4: So I wonder if that is ongoing, and whether there will be any change to that. So that's number one. Number two is, can you comment on the pricing situation now that you have won pretty big projects?

Speaker #4: And, in fact, what are you seeing in terms of pricing trend in the market, and whether you think pricing in 2027 will actually be stable or even going up?

Edison Lee: 非常感谢给我提问的机会。我有两个问题，第一个问题就是关于你们新的这个投资人，就是CATL。其实能不能就是展开一些你们跟CATL带来的这个协同的效应到底是在哪些领域？然后之前山东高速在这个乌兰察布应该是要跟你们去建一个绿电的合作的计划，我想知道这个计划现在的进展是什么样，然后未来有没有一些改变？这是第一个问题。第二个问题就是关于这个价格的问题，就是现在从下半年来看，你觉得整个行业的价格连2027年的现在的这个趋势，你觉得是有机会涨价还是维持平稳？好，谢谢。

Edison Lee: [Foreign language]. 非常感谢给我提问的机会。我有两个问题，第一个问题就是关于你们新的这个投资人，就是CATL。其实能不能就是展开一些你们跟CATL带来的这个协同的效应到底是在哪些领域？然后之前山东高速在这个乌兰察布应该是要跟你们去建一个绿电的合作的计划，我想知道这个计划现在的进展是什么样，然后未来有没有一些改变？这是第一个问题。第二个问题就是关于这个价格的问题，就是现在从下半年来看，你觉得整个行业的价格连2027年的现在的这个趋势，你觉得是有机会涨价还是维持平稳？好，谢谢。

Speaker #4: 这个是第一个问题。第二个问题就是关于这个价格的问题，就是现在从下半年来看，你觉得整个行业的价格连2027年的现在的这个趋势你觉得是有机会涨价还是维持平稳？谢谢。

Speaker #3: 好的，谢谢Edison的提问。我来回答您的两个问题。第一个就是确实是公司在季报里也披露了未来CATL会成为公司的战略股东。如果这个CATL和山高控股去顺利地完成交割，那我们觉得未来在战略协同上还是和CATL会有很多的领域可以去探讨的，比如说AIDC的储能，比如说AIDC研发中台，还有供应链的协同等等方面。那在技术与资源的协同上，其实依托于这个电力产业的资源、储能等等的这些能力在叠加上，其实CATL在整个产业链的上下游都有各种的布局，包括一些高压直流的供电技术。那未来会和我们在供应链侧在这个高压直流、绿电直链方面大家会有更多的协同的机会。另外在产业的场景上，因为世纪互联我们现在是有接近一个GW，如果今年顺利的交付之后是接近1.5GW的容量，可以为CATL那边的一些落地场景提供一个非常好的助力。那我们将来可以在一些相关的能源产品上积累更多的一些运营数据，更多的实际操作的实例来实现一个双向的赋能。那提到这个山高控股，我们之前和山东高速在绿色能源方面是保持了非常良好的沟通与合作。在此也是非常感谢山高控股在过去对于公司的支持以及在于整个绿色能源合作领域对于公司的支持。那未来公司还是会继续围绕着这个绿色低碳的方向去发展，去拓展和这个山高的合作的机会。那未来其实在绿色能源、数字基础建设、基础设施发展方面还是会有多方的资源的协同的。我们会采取一些比较审慎的市场化的原则，基于商业的合理性以及这个资源的匹配程度，最重要的是其实我们是要以客户的需求为中心去动态的推进我们双方的合作。那相信我们双方的目标其实都是要提升能源的效率，增强绿色的能源的竞争力，保持这个长期合作的关系。这是第一个问题。就是和股东们的一些战略协作，对。那第二个问题是关于这个价格趋势的。实际上就像公司披露的，那我们这个季度也是拿到了客户非常大的订单，也是一个两到三年的一个交付的节奏。我们还是能看到其实今年整个市场从客户需求的角度来说还是很旺盛的。从年初到今年的这个Q1、Q2都会有比较大的一个锁定当期已经锁定未来资源的订单的出现。那客户其实续签的意愿是很强的，都是通过这种长期的协议来锁定我们向互联这样的大的供应商的未来的资源。我们现在预期价格是会保持稳定的，对。当然我们也很期待如果这个未来供需会有进一步的变化，价格可以回暖。但是目前在这个阶段我们还是觉得价格会比较稳定。谢谢。

Sharon Liu: 好的，谢谢Edison的提问，我来回答您的两个问题。第一个就是确实是公司在季报里也披露了未来CATL会成为公司的战略股东，如果这个CATL和山高控股去顺利地完成交割，那我们觉得未来在战略协同上还是和CATL会有很多的领域可以去探讨的，比如说IDC的储能，比如说IDC研发中台，还有供应链的协同等等方面。那在技术与资源的协同上，其实依托于电力产业的资源、储能等等的这些能力，再叠加上CATL在整个产业链的上、下游都有各种的布局，包括一些高压直流的供电技术。未来会和我们在供应链侧，在这个高压直流、绿电直链方面，大家会有更多的协同的机会。另外在产业的场景上，因为世纪互联我们现在是有接近1GW，如果今年顺利地交付之后是接近1.5GW的容量，可以为CATL那边的一些落地场景提供一个非常好的助力。我们将来可以在一些相关的能源产品上积累更多的一些运营数据，更多的实际操作的实力，来实现一个双向的赋能。那提到这个山高控股，我们之前和山东高速在绿色能源方面是保持了非常良好的沟通与合作，在此也是非常感谢山高控股在过去对于公司的支持，以及在整个绿色能源合作领域对于公司的支持。未来公司还是会继续围绕着绿色低碳的这个方向去发展，去拓展和山高的合作的机会。未来其实在绿色能源、数据基础设施发展方面，还是会有多方的资源的协同的。我们会采取一些比较审慎的市场化的原则，基于商业的合理性，以及资源的匹配程度。最重要的是，其实我们是要以客户的需求为中心，去动态地推进我们双方的合作。相信我们双方的目标其实都是要提升能源的效率，增强绿色能源的竞争力，保持长期合作的关系。这是第一个问题，就是和股东们的一些战略协作。第二个问题是关于这个价格趋势的。实际上就像公司披露的，我们这个季度也是拿到了客户非常大的订单，也是一个两到三年的交付的节奏。我们还是能看到，其实今年整个市场从客户需求的角度来说还是很旺盛的，从年初到今年的这个Q1、Q2都会有比较大的一个锁定当期已经锁定未来资源的订单的出现。那客户其实续签的意愿是很强的，都是通过这种长期的协议来锁定我们像互联网这样的大的供应商的未来的资源。我们现在预期价格是会保持稳定的。当然我们也很期待，如果未来供需会有进一步的变化，价格可以回暖。但是目前在这个阶段，我们还是觉得价格会比较稳定。谢谢。

Sharon Liu: [Foreign language]. 好的，谢谢Edison的提问，我来回答您的两个问题。第一个就是确实是公司在季报里也披露了未来CATL会成为公司的战略股东，如果这个CATL和山高控股去顺利地完成交割，那我们觉得未来在战略协同上还是和CATL会有很多的领域可以去探讨的，比如说IDC的储能，比如说IDC研发中台，还有供应链的协同等等方面。那在技术与资源的协同上，其实依托于电力产业的资源、储能等等的这些能力，再叠加上CATL在整个产业链的上、下游都有各种的布局，包括一些高压直流的供电技术。未来会和我们在供应链侧，在这个高压直流、绿电直链方面，大家会有更多的协同的机会。另外在产业的场景上，因为世纪互联我们现在是有接近1GW，如果今年顺利地交付之后是接近1.5GW的容量，可以为CATL那边的一些落地场景提供一个非常好的助力。我们将来可以在一些相关的能源产品上积累更多的一些运营数据，更多的实际操作的实力，来实现一个双向的赋能。那提到这个山高控股，我们之前和山东高速在绿色能源方面是保持了非常良好的沟通与合作，在此也是非常感谢山高控股在过去对于公司的支持，以及在整个绿色能源合作领域对于公司的支持。未来公司还是会继续围绕着绿色低碳的这个方向去发展，去拓展和山高的合作的机会。未来其实在绿色能源、数据基础设施发展方面，还是会有多方的资源的协同的。我们会采取一些比较审慎的市场化的原则，基于商业的合理性，以及资源的匹配程度。最重要的是，其实我们是要以客户的需求为中心，去动态地推进我们双方的合作。相信我们双方的目标其实都是要提升能源的效率，增强绿色能源的竞争力，保持长期合作的关系。这是第一个问题，就是和股东们的一些战略协作。第二个问题是关于这个价格趋势的。实际上就像公司披露的，我们这个季度也是拿到了客户非常大的订单，也是一个两到三年的交付的节奏。我们还是能看到，其实今年整个市场从客户需求的角度来说还是很旺盛的，从年初到今年的这个Q1、Q2都会有比较大的一个锁定当期已经锁定未来资源的订单的出现。那客户其实续签的意愿是很强的，都是通过这种长期的协议来锁定我们像互联网这样的大的供应商的未来的资源。我们现在预期价格是会保持稳定的。当然我们也很期待，如果未来供需会有进一步的变化，价格可以回暖。但是目前在这个阶段，我们还是觉得价格会比较稳定。谢谢。

Speaker #2: Thank you for your question. As we have disclosed in our quarterly report, CATL's affiliate is going to become our strategic shareholder. Shall the deal with Shandong High Speed Holding Group close successfully?

Xinyuan Liu: Thank you for your question. As we have disclosed in our quarterly report that the CATL's affiliate is going to become our strategic shareholder. Shut the deal with Shandong Hi-Speed Holdings Group closed successfully. Actually, we see synergies across several areas, and we see that in our AIDC energy storage. We see the synergy in the supply chain, specifically the synergy that we saw in technology and resources. To elaborate, we are going to leverage CATL's extensive supply chain resources, energy storage, and dispatch capability, augmented by their proprietary high-voltage DC technology through their own investments. We are going to significantly enhance our data center's power stability and dynamic frequency regulation. I think this integration is vital to supporting the robust operational demands of hyperscale AIDC clusters, directly sharpening our long-term competitive edge. Also the synergy we saw in commercial and operational side.

[Translator]: Thank you for your question. As we have disclosed in our quarterly report that the CATL's affiliate is going to become our strategic shareholder. Shut the deal with Shandong Hi-Speed Holdings Group closed successfully. Actually, we see synergies across several areas, and we see that in our AIDC energy storage. We see the synergy in the supply chain, specifically the synergy that we saw in technology and resources. To elaborate, we are going to leverage CATL's extensive supply chain resources, energy storage, and dispatch capability, augmented by their proprietary high-voltage DC technology through their own investments. We are going to significantly enhance our data center's power stability and dynamic frequency regulation. I think this integration is vital to supporting the robust operational demands of hyperscale AIDC clusters, directly sharpening our long-term competitive edge. Also the synergy we saw in commercial and operational side.

Speaker #2: Actually, we see synergies across several areas. And we see that in our AIDC energy storage. We see the synergy in the supply chain—specifically, the synergy that we saw in technology and resources.

Speaker #2: To elaborate, we are going to leverage CATL's extensive supply chain resources, energy storage, and dispatch capabilities, augmented by their proprietary high-voltage DC technology through their own invested investments.

Speaker #2: And we are going to significantly enhance our data centers' power stability and dynamic frequency regulation. I think this integration is vital to supporting the robust operational demands of hyperscale AIDC clusters, directly sharpening our long-term competitive edge.

Speaker #2: And also, the synergy we saw in the commercial and operational side of VNET—if we deliver the rest of the wholesale AIDC targets this year, this is going to bring our total wholesale capacity in service to 1.5 GW.

Xinyuan Liu: VNET, if we deliver the rest of the wholesale AIDC targets this year, this is going to bring our total wholesale capacity in service to 1.5 GW. This provides CATL with concrete use cases which can feed back into their businesses. Also with our collaboration, we are going to accumulate a lot of critical operational data. This will also drive the mutual ecosystem value. With regards to our prior collaboration with the Shandong Hi-Speed Holdings Group in terms of the green energy integration. We have maintained a fairly good communication and collaboration with Shandong Hi-Speed Holdings Group in terms of green energy development, and we extend our gratitude to their support in this regard. Going forward, VNET will continue to pursue the development of green and low-carbon data centers. We will actively evaluate or explore cooperation opportunities and expand our cooperation on that side.

[Translator]: VNET, if we deliver the rest of the wholesale AIDC targets this year, this is going to bring our total wholesale capacity in service to 1.5 GW. This provides CATL with concrete use cases which can feed back into their businesses. Also with our collaboration, we are going to accumulate a lot of critical operational data. This will also drive the mutual ecosystem value. With regards to our prior collaboration with the Shandong Hi-Speed Holdings Group in terms of the green energy integration. We have maintained a fairly good communication and collaboration with Shandong Hi-Speed Holdings Group in terms of green energy development, and we extend our gratitude to their support in this regard. Going forward, VNET will continue to pursue the development of green and low-carbon data centers. We will actively evaluate or explore cooperation opportunities and expand our cooperation on that side.

Speaker #2: So this provides CATL with concrete use cases, which can feed back into their businesses. And also, with our collaboration, we are going to accumulate a lot of critical operational data that will also drive the mutual ecosystem value.

Speaker #2: And with regard to our prior collaboration with Shandong High Speed Holding Group in terms of green energy integration, we have maintained fairly good communication and collaboration with Shandong High Speed Holding Group in terms of green energy development.

Speaker #2: And we extend our gratitude for their support in this regard. And going forward, VNET will continue to pursue the development of green and low-carbon data centers. We will actively evaluate or explore cooperation opportunities and expand our cooperation on that side.

Speaker #2: And on top of that, the green energy and the digital infrastructure development takes the coordination of multiple parties, and we, VNET, will continue to remain committed to the principles of prudence, in the market-oriented approach. We want to assess collaboration opportunities based on their economics. At the end of the day, we want to match resources that can best serve our customers' needs.

Xinyuan Liu: On top of that, the green energy and the digital infrastructure development takes the coordination of multiple parties. We, VNET, will continue to remain committed to the principles of prudent and market-oriented approach. We want to assess collaboration opportunities based on its economics. At the end of the day, we want to match resources that can best serve our customers' needs. Our goal is to increase our energy efficiency and promote our competitiveness in the green energy space. That is the question on the new strategic investor as well as our collaboration with the Shandong Hi-Speed Holdings in terms of green development. Now coming back to the question on pricing. As we have disclosed in our earnings report that we have secured large orders that is going to be delivered within the next two to three years.

[Translator]: On top of that, the green energy and the digital infrastructure development takes the coordination of multiple parties. We, VNET, will continue to remain committed to the principles of prudent and market-oriented approach. We want to assess collaboration opportunities based on its economics. At the end of the day, we want to match resources that can best serve our customers' needs. Our goal is to increase our energy efficiency and promote our competitiveness in the green energy space. That is the question on the new strategic investor as well as our collaboration with the Shandong Hi-Speed Holdings in terms of green development. Now coming back to the question on pricing. As we have disclosed in our earnings report that we have secured large orders that is going to be delivered within the next two to three years.

Speaker #2: So our goal is to increase our energy efficiency and promote our competitiveness in the green energy space. So that is the question on the new strategic investor, as well as our collaboration with Shandong High Speed Holdings in terms of the green development.

Speaker #2: And now, coming back to the question on pricing, as we have disclosed in our earnings report, we have secured large orders that are going to be delivered within the next two to three years.

Speaker #2: And according to our observations, we have seen fairly strong demand from our customers in terms of premium and quality AIDC resources. And we're seeing that through Q1, also straight to Q2.

Xinyuan Liu: According to our observations, we have seen fairly strong demand from our customers in terms of premium and quality AIDC resources. We're seeing that through Q1, also straight into Q2. For now, all of these customers are signing long-term contracts with us so as to secure these quality resources from us. We expect the price to stable at the moment. Shall the supply and demand dynamics improve in the future, we might see the possibilities of prices trending upward as well. Thanks.

[Translator]: According to our observations, we have seen fairly strong demand from our customers in terms of premium and quality AIDC resources. We're seeing that through Q1, also straight into Q2. For now, all of these customers are signing long-term contracts with us so as to secure these quality resources from us. We expect the price to stable at the moment. Shall the supply and demand dynamics improve in the future, we might see the possibilities of prices trending upward as well. Thanks.

Speaker #2: I think so for now, all of these customers are signing long-term contracts with us so as to secure these quality resources from us. We expect the price to be stable at the moment, and should the supply and demand dynamics improve in the future, we might see the possibility of prices trending upward as well.

Speaker #2: Thanks.

Speaker #3: Next question, please.

Xinyuan Liu: Next question please.

Speaker #4: Your next question comes from Timothy Zhao with Goldman Sachs.

Operator 2: Your next question comes from Timothy Zhou with Goldman Sachs.

Operator: Your next question comes from Timothy Zhou with Goldman Sachs.

Speaker #5: Great. Thank you, Manjima, for taking my question, and congrats on the solid results. My question is regarding the wholesale capacity reserves that you have.

Timothy Zhou: Great. Thank you very much for taking that question, and congrats on the solid results. My question is regarding the wholesale capacity reserves that you have. I noticed that in Q1, the company added another 300 MW capacity for the wholesale data centers. Just wondering if you have any targets for your capacity reserve for this year and probably in the midterm. Out of that 1.3 GW capacity that you have in terms of expansion pipeline and the capacity under construction, just wondering if you can share what proportion of that already received the power quota approval from the government. Thank you.

Speaker #5: I noticed that in the first quarter, the company added another 300 megawatts of capacity for the wholesale data centers. Just wondering if you have any targets for your capacity reserve for this year, and probably in the midterm?

Speaker #5: And out of that 1.3 GW capacity that you have, in terms of the expansion pipeline and the capacity under construction, just wondering if you can share what proportion of that has already received the power quota approval from the government.

Speaker #5: Thank you.

Speaker #3: Thomson,谢谢你的问题。对于公司未来的储备的策略来说，长期来，中长期来看，我们还是会继续加大资源的布局的。那公司目前资源布局主要还是会未来集中在内蒙、长三角以及东数西算的核心节点上，我们的目标是获取GW级别以上的资源。那在后续的季报里，随着我们去获取这些资源，我们也会逐步地去披露。那从公司的角度来说，刚才您也问到了说这个所谓的资源，其实我们包含土地也是包含这个能平指标的。那实际上国家的这个有窗口指导的政策，那其实窗口的指导政策我们说现在从流程上还是已经理顺了，因为已经批过两批了。那从世界互联的角度，其实我们有四个项目已经顺利地通过了窗口指导，我们其他的几个项目也拿到了能平的扩容。公司对于未来我们在资源储备，无论是土地还是这个能平测还是非常有信心的。我们正在积极地做这个资源的拓展，尤其是GW级的基地，后续会逐步地披露给资本市场。谢谢。

Sharon Liu: 汤姆森，谢谢你的问题。对于公司未来的储备和策略来说，中长期来看，我们还是会继续加大资源的布局。公司目前资源布局主要还是会未来集中在内蒙、长三角以及东数西算的核心节点上。我们的目标是获取巨瓦级别以上的资源。在后续的季报里，随着我们去获取这些资源，我们也会逐步地去披露。从公司的角度来说，刚才您也问到了，所谓的资源，其实我们包含土地，也是包含能评指标的。实际上国家的有窗口指导的政策，其实窗口的指导政策我们说现在从流程上还是已经理顺了，因为已经批过两批了。从实际互联的角度，其实我们有四个项目已经顺利地通过了窗口指导，我们其他的几个项目也拿到了能评的扩容。公司对于未来我们在资源储备，无论是土地还是能评侧，还是非常有信心的。我们正在积极地做资源的拓展，尤其是巨瓦级的基地，后续会逐步地披露给资本市场。谢谢。

Sharon Liu: [Foreign language]. 汤姆森，谢谢你的问题。对于公司未来的储备和策略来说，中长期来看，我们还是会继续加大资源的布局。公司目前资源布局主要还是会未来集中在内蒙、长三角以及东数西算的核心节点上。我们的目标是获取巨瓦级别以上的资源。在后续的季报里，随着我们去获取这些资源，我们也会逐步地去披露。从公司的角度来说，刚才您也问到了，所谓的资源，其实我们包含土地，也是包含能评指标的。实际上国家的有窗口指导的政策，其实窗口的指导政策我们说现在从流程上还是已经理顺了，因为已经批过两批了。从实际互联的角度，其实我们有四个项目已经顺利地通过了窗口指导，我们其他的几个项目也拿到了能评的扩容。公司对于未来我们在资源储备，无论是土地还是能评侧，还是非常有信心的。我们正在积极地做资源的拓展，尤其是巨瓦级的基地，后续会逐步地披露给资本市场。谢谢。

Speaker #5: Thank you, Timothy, for your question. The company's strategy in the medium to long term is that we are going to increase our efforts in acquiring more resources.

Xinyuan Liu: Thank you Timothy for your question. The company's strategy in the medium to long term is that we are going to increase our efforts in acquiring more resources. According to the company's plan, we are going to acquire gigawatt worth of resources primarily in Inner Mongolia, Yangtze River Delta, as well as the key notes along the East Data, West Compute route. We are going to disclose the resources acquired in the subsequent quarterly results. Speaking of the resources that compromise consists of both the land as well as the power quotas. As you may know, there is a window guidance imposed by the government. Right now we have seen that whole flow being tested already, because at VNET, we got four of our projects approved by the government, and with others being reviewed at the moment. The company is quite confident in acquiring more resources in terms of the land as well as our power quotas. Also, the company is, like I said, actively exploring and acquiring potential more resources along the few regions that I've mentioned. Thank you.

[Translator]: Thank you Timothy for your question. The company's strategy in the medium to long term is that we are going to increase our efforts in acquiring more resources. According to the company's plan, we are going to acquire gigawatt worth of resources primarily in Inner Mongolia, Yangtze River Delta, as well as the key notes along the East Data, West Compute route. We are going to disclose the resources acquired in the subsequent quarterly results. Speaking of the resources that compromise consists of both the land as well as the power quotas. As you may know, there is a window guidance imposed by the government. Right now we have seen that whole flow being tested already, because at VNET, we got four of our projects approved by the government, and with others being reviewed at the moment.

Speaker #5: As we have mentioned, and according to the company's plan, we are going to acquire gigawatt-worth of resources primarily in Inner Mongolia, the Yangtze River Delta, as well as the key nodes along the West-East Data, West Compute route.

Speaker #5: And we are going to disclose the resources acquired in the subsequent quarterly results. And speaking of the resources, that compromise consists of both land as well as power quotas.

Speaker #5: As you may know, there is window guidance imposed by the government. And right now, we have seen that whole flow being tested already, because at VNET, we got four of our projects approved by the government.

Speaker #5: And with others being reviewed at the moment, the company is quite confident in acquiring more resources, both in terms of land as well as our power quotas.

[Translator]: The company is quite confident in acquiring more resources in terms of the land as well as our power quotas. Also, the company is, like I said, actively exploring and acquiring potential more resources along the few regions that I've mentioned. Thank you.

Speaker #5: And also, the company is, like I said, actively exploring acquiring potential more resources along the few regions that I've mentioned. Thank you.

Speaker #3: Next question, please.

Xinyuan Liu: Next question please.

Speaker #4: Your next question comes from Ming Renli with CICC.

Operator 2: Your next question comes from Mingran Li with CICC.

Operator: Your next question comes from Mingran Li with CICC.

Speaker #6: Thanks, Manjima, for taking my question. I really appreciate it. And congrats on a very strong result. I have questions about our overseas business regarding ATL's proposed strategic investment.

Mingran Li: Thanks management for taking my question. Really appreciate it. Congrats on a very strong result. I have questions about our overseas business regarding the CATL potential strategic investment. Could you share any thoughts on how this partnership might shape your overseas expansion strategy? 我翻译一下。感谢管理层这次提供机会。也祝贺非常强劲的一个业绩。这边想请教一下，其实关于宁德战略入股后，公司在出海方面有什么样的战略规划和布局考量？谢谢。

Speaker #6: Could you share any thoughts on how this partnership might shape your overseas expansion strategy?

Mingran Li: [Foreign language]. 我翻译一下。感谢管理层这次提供机会。也祝贺非常强劲的一个业绩。这边想请教一下，其实关于宁德战略入股后，公司在出海方面有什么样的战略规划和布局考量？谢谢。

Speaker #3: Ming Ren,谢谢你的问题。就是问到出海的布局，实际上坦白讲，由于我们和这些头部客户有非常良好的客户关系，其实我们也是直接到这个头部客户关于我们海外资源的一个反向的询问。公司其实也正在这个比较积极地布局海外的一些资源，包括东南亚还有其他区域的一些资源。如果未来有一些进一步的消息，我们会和资本市场再去沟通。那另外随着这个宁德的这个成为互联的战略客户，战略投资方，实际上我们未来由于宁德在全球都有布局，那我们未来在一些供应链和这个绿色能源方面都可以有进一步的合作。这个对公司的海外战略也是大大的注意助力的。谢谢。

Sharon Liu: 明然，谢谢你的问题。就是问到出海的布局。实际上，坦白讲，由于我们和这些头部客户有非常良好的客户关系，其实我们也一直接到头部客户关于我们海外资源的反向询问。公司其实也正在比较积极地布局海外的一些资源，包括东南亚还有其他区域的一些资源。如果未来有一些进一步的消息，我们会和资本市场再去沟通。另外随着宁德成为互联的战略投资方，实际上我们未来由于宁德在全球都有布局，我们未来在一些供应链和绿色能源方面都可以有进一步的合作，这对公司的海外战略也是大大的助力的。谢谢。Thank you Mingran for your question. With regard to our overseas deployment, we maintain a fairly close relationship with our leading or key clients or customers, and they have been sending inquiries on our resource acquisition or planning in overseas. The company is actively preparing and looking for potential resources in overseas. Specifically, we are talking about resources in Southeast Asia as well as other areas. Shall there be any further updates, we will communicate them with you in a timely manner going forward. Also with regard to the new strategic investor of the CATL, because they have a global presence and they have matured capability in supply chain as well as green energy, I believe these will complement to our advantages.

Sharon Liu: [Foreign language]. 明然，谢谢你的问题。就是问到出海的布局。实际上，坦白讲，由于我们和这些头部客户有非常良好的客户关系，其实我们也一直接到头部客户关于我们海外资源的反向询问。公司其实也正在比较积极地布局海外的一些资源，包括东南亚还有其他区域的一些资源。如果未来有一些进一步的消息，我们会和资本市场再去沟通。另外随着宁德成为互联的战略投资方，实际上我们未来由于宁德在全球都有布局，我们未来在一些供应链和绿色能源方面都可以有进一步的合作，这对公司的海外战略也是大大的助力的。谢谢。

[Translator]: Thank you Mingran for your question. With regard to our overseas deployment, we maintain a fairly close relationship with our leading or key clients or customers, and they have been sending inquiries on our resource acquisition or planning in overseas. The company is actively preparing and looking for potential resources in overseas. Specifically, we are talking about resources in Southeast Asia as well as other areas. Shall there be any further updates, we will communicate them with you in a timely manner going forward. Also with regard to the new strategic investor of the CATL, because they have a global presence and they have matured capability in supply chain as well as green energy, I believe these will complement to our advantages. Also, in terms of the business we are going to conduct in overseas countries. Thank you.

Speaker #5: Thank you, Ming Ren, for your question. With regard to our overseas deployment, we maintain a fairly close relationship with our leading or key clients or customers.

Speaker #5: And they have been sending inquiries on our resource acquisition or planning in the overseas. The company is actively preparing and looking for potential resources in overseas, specifically we're talking about resources in Southeast Asia as well as other areas.

Speaker #5: Should there be any further updates, we will communicate them with you in a timely manner going forward. And also, with regard to the new strategic investor of CATL, because they have a global presence and they have matured capability in supply chain, as well as green energy.

Speaker #5: I believe these will be fairly good complementary. This will complement to our advantages also in terms of the business we're going to conduct in overseas countries.

Xinyuan Liu: Also, in terms of the business we are going to conduct in overseas countries. Thank you.

Speaker #5: Thank you.

Speaker #3: Next question, please.

Xinyuan Liu: Next question, please.

Speaker #4: Your next question comes from Daily Lee with BofA Securities.

Operator 2: Your next question comes from Daley Lee with BofA Securities.

Operator: Your next question comes from Daley Lee with BofA Securities.

Speaker #5: Hi, Manjima. Thanks for taking my question. I have one question regarding our financing channels. With our full-year guidance for the CAPEX, how do we see the operating cash flow and also the financing channel rates to finance our CAPEX?

Daley Lee: Hi, everyone. Thanks for taking my question. I have one question regarding our financing channels. With our full year guidance for the CapEx, how do we see the operating cash flow and also the financing channel like REITs to finance our CapEx? Could management share our future REITs project, what will be our plan?

Daley Li: Hi, everyone. Thanks for taking my question. I have one question regarding our financing channels. With our full year guidance for the CapEx, how do we see the operating cash flow and also the financing channel like REITs to finance our CapEx? Could management share our future REITs project, what will be our plan?

Speaker #5: And could Manjima share our future rates project? What will be our plan? 好的，感谢管理层接受我的提问。我这边翻译一下。就是这边想请教一个关于我们这个融资的一个结构的一个计划，比如说我们全年的这个有CAPEX一个指引，然后我们也有比较强的现金，还有这个operating cash flow。也有这个rate项目。想问一下我们这个整个的一个预算是怎么样的，然后未来对我们rate项目的计划是有怎样的一个计划。谢谢。好的，谢谢您的问题。那个从指引的角度来讲的话，其实前面也提到了，就是我们全年基于450到500兆瓦的交付计划，我们的CAPEX投入指引是维持不变的。这是第一点。第二点来讲，从融资的角度来讲，其实大家都看到我们还是多渠道去做，尤其您提到ABS这个Q1我们发了也几单，它持续的我们也会有这个计划。那除了这个以外，其实从项目以及项目维度穿透渠道，我们都会考虑这种融资。对，来支撑我们今年整个的交付。谢谢。

Sharon Liu: 好的，感谢管理层接受我的提问，我这边翻译一下。这边想请教关于我们融资结构的一个计划，比如说我们全年的CapEx计划，我们也有比较强的现金，还有operating cash flow，也有REIT项目，想问一下我们整个的预算是怎么样的？然后未来对我们REIT项目有怎样的计划？谢谢。

Daley Li: [Foreign language]. 好的，感谢管理层接受我的提问，我这边翻译一下。这边想请教关于我们融资结构的一个计划，比如说我们全年的CapEx计划，我们也有比较强的现金，还有operating cash flow，也有REIT项目，想问一下我们整个的预算是怎么样的？然后未来对我们REIT项目有怎样的计划？谢谢。

Peter Zhang: 好的，谢谢你的问题。从职业角度来讲的话，其实前面也提到了，我们全年基于 450 到 500 兆瓦的交付计划，我们开始投入资金是会逐步变的，这是第一点。第二点来讲，从融资的角度来讲，其实大家看到我们还是多渠道去做，尤其你提到 ABS，Q1 我们发了也几单，持续的我们也会有这个计划。除了这个以外，其实从项目以及项目维度、渠道、渠道，我们都会考虑这种融资来支持我们今年整个的交付。谢谢。Thanks for your question. Our full year CapEx guidance for 2026 is based on the annual delivery target of 450 to 500 MW. We have a very diversified financing channels, both from the project level as well as the traditional financing channels. All of them serves the same purpose of supporting our full year delivery target. Actually, in terms of the ABS or asset-backed securities, we have successfully issued two of them in Q1 and we are continuing our efforts in this regard. Thank you.

Peter Zhang: [Foreign language]. 好的，谢谢你的问题。从职业角度来讲的话，其实前面也提到了，我们全年基于 450 到 500 兆瓦的交付计划，我们开始投入资金是会逐步变的，这是第一点。第二点来讲，从融资的角度来讲，其实大家看到我们还是多渠道去做，尤其你提到 ABS，Q1 我们发了也几单，持续的我们也会有这个计划。除了这个以外，其实从项目以及项目维度、渠道、渠道，我们都会考虑这种融资来支持我们今年整个的交付。谢谢。

[Translator]: Thanks for your question. Our full year CapEx guidance for 2026 is based on the annual delivery target of 450 to 500 MW. We have a very diversified financing channels, both from the project level as well as the traditional financing channels. All of them serves the same purpose of supporting our full year delivery target. Actually, in terms of the ABS or asset-backed securities, we have successfully issued two of them in Q1 and we are continuing our efforts in this regard. Thank you.

Speaker #2: Thank you for your question. Our full-year CAPEX guidance for 2026 is based on the annual delivered target of 450 to 500 megawatts. We have very diversified financing channels, both from the project level as well as through traditional financing channels.

Speaker #2: All of them serve the same purpose of supporting our full-year delivery target. Actually, in terms of ABS, or asset-backed securities, we have successfully issued two of them in the first quarter, and we are continuing our efforts in this regard.

Speaker #2: Thank you.

Speaker #3: Next question, please.

Xinyuan Liu: Next question, please.

Speaker #4: Your next question comes from Ethan Zheng with Nomura.

Operator 2: Your next question comes from Ethan Zhang with Nomura.

Operator: Your next question comes from Ethan Zhang with Nomura.

Speaker #6: Okay, thanks for the opportunity to ask him the question. So I've got two questions. The first one is a follow-up on the land reserve strategy.

Ethan Zhang: Okay. Thanks for the opportunity for asking the question. I've got two questions. The first one is a follow-up on the land reserve strategy. Could management give us more color on our current reserve in the Inner Mongolia region, as well as what's our thoughts on the demands in other data center computing hub cities? My second question is, could management give us some color on the potential listing in Hong Kong market?

Speaker #6: So, could Manjima give us more color on our current reserve in the Mongolia region, as well as what's our thoughts on the demands in other eastern data— with the computing hub cities?

Speaker #6: And my second question is, could Manjima give us some color on the potential listing in the Hong Kong market? 我自己翻译一下两个问题。第一个还是关于我们土地储备的一个问题，就是可不可以让管理层给我们再讲一讲，就是我们在乌兰现在的储备，以及我们怎么看在中枢计算其他的这个节点的一个需求，以及我们的计划。第二个是可不可以就是给我们分享一下在香港上市的一些可能或者想法。谢谢。

Ethan Zhang: 我可以翻译一下两个问题，第一个还是关于我们土地储备的一个问题，可不可以让管理层给我们再讲一讲，我们在乌兰现在的储备，以及我们怎么看在东数西算其他的节点的需求，以及我们的计划。第二个是可不可以给我们分享一下在香港上市的一些可能或者想法？谢谢。

Ethan Zhang: [Foreign language]. 我可以翻译一下两个问题，第一个还是关于我们土地储备的一个问题，可不可以让管理层给我们再讲一讲，我们在乌兰现在的储备，以及我们怎么看在东数西算其他的节点的需求，以及我们的计划。第二个是可不可以给我们分享一下在香港上市的一些可能或者想法？谢谢。

Speaker #3: 好的，Ethan，谢谢你的问题。关于第一个问题，其实公司的整个的土地的储备情况，我们刚才在分享整体的资源储备的时候，也提到了中长期来看，公司的资源布局还是会在内蒙、长三角以及中枢计算的核心节点上，我们去布计瓦级的基地。那计瓦级的基地其实一个计瓦级的基地对应的就是大概1000亩的土地。那从土地储备的角度来说，我还想说明一点的是，其实鉴于这些地区的地价都比较便宜，其实整体上我们土地储备的CAPEX占整个项目CAPEX只是这个lower single digit这么一个range，所以公司其实肯定会积极的去做这个土地资源的布局。那第二点是关于这个香港IPO的，对，我刚才回应一下Peter关于公司融资节奏的融资方式的解读，其实我们有各种各样的这个上市公司层面的，也有这个资产平台，包括资产层面的各种融资。那公司策略上还是会提前做融资来应对我们后续不管是CAPEX还有一些CB的还款的计划的。那其实公司也一直在积极的探索香港上市的可行性方案，这个本来也是公司的多样化的融资渠道之一。那可以用来优化公司的资本结构，那更好的支撑公司的长期的战略发展，然后包括去夯实我们国际投资者的基础。但是相关的这个香港上市的事项还在评估当中，公司在有明确的进展之后再及时的披露给资本市场。谢谢。

Sharon Liu: 好的，Ethan，谢谢你的问题。关于第一个问题，其实公司的整个的土地的储备情况，我们刚才在分享整体的资源储备的时候也提到了，中长期来看，公司的资源布局还是会在内蒙、长三角以及东数西算的核心节点上，我们去布吉瓦级的基地。一个吉瓦级的基地对应的就是大概1000亩的土地。那从土地储备的角度来说，我还想说明一点的是，其实鉴于这些地区的地价都比较便宜，其实整体上我们土地储备的CapEx占整个项目CapEx只是lower single digit这么一个range，所以公司其实肯定会积极地去做土地资源的布局。那第二点是关于香港IPO的。我刚才回应一下Peter关于公司融资节奏的融资方式的解读，其实我们有各种各样的上市公司层面的，也有资产平台，包括资产层面的各种融资，公司策略上还是会提前做融资来应对我们后续不管是CapEx还有一些CB的还款的计划。其实公司也一直在积极地探索香港上市的可行性方案，这个本来也是公司的多样化的融资渠道之一，可以用来优化公司的资本结构，更好地支撑公司的长期的战略发展，包括去夯实我们国际投资者的基础。但是相关的香港上市的事项还在评估当中，公司在有明确的进展之后，再及时地披露给资本市场。谢谢。

Sharon Liu: [Foreign language]. 好的，Ethan，谢谢你的问题。关于第一个问题，其实公司的整个的土地的储备情况，我们刚才在分享整体的资源储备的时候也提到了，中长期来看，公司的资源布局还是会在内蒙、长三角以及东数西算的核心节点上，我们去布吉瓦级的基地。一个吉瓦级的基地对应的就是大概1000亩的土地。那从土地储备的角度来说，我还想说明一点的是，其实鉴于这些地区的地价都比较便宜，其实整体上我们土地储备的CapEx占整个项目CapEx只是lower single digit这么一个range，所以公司其实肯定会积极地去做土地资源的布局。那第二点是关于香港IPO的。我刚才回应一下Peter关于公司融资节奏的融资方式的解读，其实我们有各种各样的上市公司层面的，也有资产平台，包括资产层面的各种融资，公司策略上还是会提前做融资来应对我们后续不管是CapEx还有一些CB的还款的计划。其实公司也一直在积极地探索香港上市的可行性方案，这个本来也是公司的多样化的融资渠道之一，可以用来优化公司的资本结构，更好地支撑公司的长期的战略发展，包括去夯实我们国际投资者的基础。但是相关的香港上市的事项还在评估当中，公司在有明确的进展之后，再及时地披露给资本市场。谢谢。

Speaker #2: Thank you, Ethan, for your question. With regard to your question on our land reserve strategy, like I said, in the medium to long term, VNET is planning to acquire one gigawatt worth of campuses in Mongolia, the Yangtze River Delta, as well as the Eastern Data, Western Compute hubs.

Xinyuan Liu: Thank you, Ethan, for your question. With regard to your question on our land reserve strategy, like I said, in the medium to long term, VNET is planning to acquire 1 gigawatt worthy of campuses in Inner Mongolia, Yangtze River Delta, as well as the East Data, West Compute hubs. To give you a specific number, the 1 gigawatt worthy of a campus would roughly translate to 1,000 acres of land. Given the prices of the land is quite cheap, in actual percentage-wise, the CapEx for acquiring land will account for only low single digits of our total full-year CapEx. The company would proactively acquire land to prepare for our reserve capacity. To add on to the question in terms of financing channels, as a listed company, we have diversified financing channels, both from the listed company perspective as well as the asset level.

[Translator]: Thank you, Ethan, for your question. With regard to your question on our land reserve strategy, like I said, in the medium to long term, VNET is planning to acquire 1 gigawatt worthy of campuses in Inner Mongolia, Yangtze River Delta, as well as the East Data, West Compute hubs. To give you a specific number, the 1 gigawatt worthy of a campus would roughly translate to 1,000 acres of land. Given the prices of the land is quite cheap, in actual percentage-wise, the CapEx for acquiring land will account for only low single digits of our total full-year CapEx. The company would proactively acquire land to prepare for our reserve capacity. To add on to the question in terms of financing channels, as a listed company, we have diversified financing channels, both from the listed company perspective as well as the asset level.

Speaker #2: To give you a specific number, one gigawatt, worthy of a campus, would roughly translate to 1,000 acres of land. Given that land prices are quite cheap, in actual percentage terms, the CAPEX for acquiring land will account for only a low single digit of our total full-year CAPEX.

Speaker #2: So, the company would proactively acquire land to prepare for our reserve capacity. And to add on to the question in terms of financing channels, as a listed company, we have diversified financing channels both from the listed company perspective as well as the asset level.

Speaker #2: The company is proactively raising funds to support our CAPEX as well as our debt repayment. Now, moving on to the Hong Kong Stock Exchange, we have been actively exploring the feasibility of a potential Hong Kong listing as part of our efforts to optimize our capital structure and better support the company's long-term strategic development while broadening our international investor base.

Xinyuan Liu: The company is proactively raising funds to support our CapEx as well as our debt repayment. Now moving on to the potential listing in the Hong Kong Stock Exchange. We have been actively exploring the feasibility of potential Hong Kong listing as part of our efforts to optimize our capital structure and better support the company's long-term strategic development while broadening our international investor base. We will communicate with the public market in a timely manner once there is a more defined plan or any definitive progress. Thank you.

[Translator]: The company is proactively raising funds to support our CapEx as well as our debt repayment. Now moving on to the potential listing in the Hong Kong Stock Exchange. We have been actively exploring the feasibility of potential Hong Kong listing as part of our efforts to optimize our capital structure and better support the company's long-term strategic development while broadening our international investor base. We will communicate with the public market in a timely manner once there is a more defined plan or any definitive progress. Thank you.

Speaker #2: We will communicate with the public market in a timely manner once there is a more defined plan or any definitive progress. Thank you.

Speaker #3: Next question, please.

Xinyuan Liu: Next question, please.

Speaker #4: Your next question comes from Sarah Wang with UBS.

Operator 2: Your next question comes from Sarah Wang with UBS.

Operator: Your next question comes from Sarah Wang with UBS.

Speaker #5: Hi, thank you for the opportunity to ask a question. And again, congratulations on the solid results. I actually have one question. I noticed that the commitment and pre-commitment rate of our resources is already quite high.

Sarah Wang: Hi. Thank you for the opportunity to ask a question. Again, congratulations on the solid results. I have actually one question. I noticed that the commitment and pre-commitment rate of our resources is already quite high. On top of that, we have another 1 GW resources held for future development. May I ask for this 1 GW, what is the expected average lead time from order to delivery? At the same time, how shall we think about the unit CapEx, say, CapEx per MW, and how shall we think of the trend going forward?

Sara Wang: Hi. Thank you for the opportunity to ask a question. Again, congratulations on the solid results. I have actually one question. I noticed that the commitment and pre-commitment rate of our resources is already quite high. On top of that, we have another 1 GW resources held for future development. May I ask for this 1 GW, what is the expected average lead time from order to delivery? At the same time, how shall we think about the unit CapEx, say, CapEx per MW, and how shall we think of the trend going forward?

Speaker #5: And then on top of that, we have another one gigaworth of resources held for future development. So may I ask, for this one gigaworth, what is the expected average lead time from order to delivery?

Speaker #5: And then at the same time, how should we think about the unit CAPEX, say, CAPEX per megawatt, and how should we think about the trend going forward?

Sara Wang: [Foreign language]

Xinyuan Liu: [Foreign language]

Speaker #5: 感谢提问的机会。那也恭喜公司取得非常强劲的业绩。那我想请教一下，就是我看到我们有披露我们为未来的资源储备目前是有一个计瓦，想请教一下这些项目大概如果客户下订单，我们可以交付的这个时间需要多久？然后另外呢，就是我们预计这个对应的大概每单位的资本支出大概会是多少，以及这个单位资本支出未来会不会有一些变化，还是维持稳定？谢谢。

Speaker #3: Oh, sorry. 谢谢你的提问。我可能想澄清一点，就是刚才在说资源策略的时候，我们是说其实公司在这三个区域都是看计瓦级别的基地，对，那我们落地了之后再跟资本市场去披露。对于这个单千瓦的造价来说，那目前就是我们会在2万人民币左右，这个也是得益于整个我们供应链能力的一个提升，以及大规模的采购，实际上我们单千瓦的造价一直在持续的优化。那其实对于未来的一个交付和客户的pre-commitment，公司还是会比较有信心的，像刚才提到了我们这个超过500 megawatt的订单，客户其实也是一个分期交付的节奏，也就是说公司明年的一些交付实际上还是拿到了pre-commitment，那我们对于明年的一个pre-commitment rate也是比较有信心的。但是公司还是会按照我们的披露节奏，对，我们目前是披露到明年Q1，我们下个季度就会往后递延。那基于对整个市场的客户需求的一个判断，我们对于这个比较高比例的pre-commitment rate还是很有信心的，对于未来。谢谢。

Speaker #2: Thank you, Sarah, for your question. A clarification: on the company's strategy, we are planning to acquire gigawatt-level worth of resources in the three key regions, like I mentioned.

Xinyuan Liu: Thank you, Sarah, for your question. A clarification on the company's strategy. We are planning to acquire gigawatts level worth of resources in the three key regions, like I mentioned. We are going to disclose the updates going forward. Moving back to the unit CapEx. For one megawatts of unit we deliver, the unit CapEx is around RMB 20,000 per kilowatt. That is achieved thanks to our supply chain capabilities as well as our large-scale batch procurement. We are fairly confident. Also, that is for the unit CapEx per kilowatt. Now moving on to the pre-commitment rate. We are quite confident in maintaining a fairly high pre-commitment rate, and we have now disclosed our data as of Q1 2027. In terms of the 500 megawatts order we secured, we are going to deliver them in batches.

[Translator]: Thank you, Sarah, for your question. A clarification on the company's strategy. We are planning to acquire gigawatts level worth of resources in the three key regions, like I mentioned. We are going to disclose the updates going forward. Moving back to the unit CapEx. For 1 megawatts of unit we deliver, the unit CapEx is around RMB 20,000 per kilowatt. That is achieved thanks to our supply chain capabilities as well as our large-scale batch procurement. We are fairly confident. Also, that is for the unit CapEx per kilowatt. Now moving on to the pre-commitment rate. We are quite confident in maintaining a fairly high pre-commitment rate, and we have now disclosed our data as of Q1 2027. In terms of the 500 megawatts order we secured, we are going to deliver them in batches.

Speaker #2: And we are going to disclose the updates going forward. And, moving back to the unit CAPEX, for one unit—for one megawatt of units—we deliver, the unit CAPEX is around RMB 20,000.

Speaker #2: And that per kilowatt, so that is achieved thanks to our supply chain capabilities as well as our large-scale batch procurement. And we are fairly confident in also—so that is for the unit CAPEX per kilowatt.

Speaker #2: And now, moving on to the pre-commitment rate, we are quite confident in maintaining a fairly high pre-commitment rate, and we have now disclosed our data as of Q1 2027.

Speaker #2: And in terms of the 500-megawatt order we secured, we are going to deliver them in batches. So we are going to keep updating the market on the orders we have locked in, as well as the pace of their delivery.

Xinyuan Liu: We are going to keep updating the market on the orders we have locked in, as well as the pace of their delivery. All in all, we want to say we are fairly confident in maintaining or securing a high pre-commitment rate for our capacities to be delivered. Thank you.

[Translator]: We are going to keep updating the market on the orders we have locked in, as well as the pace of their delivery. All in all, we want to say we are fairly confident in maintaining or securing a high pre-commitment rate for our capacities to be delivered. Thank you.

Speaker #2: And all in all, we want to say we are fairly confident in maintaining or securing a high pre-commitment rate for our capacities to be delivered.

Speaker #2: Thank you.

Speaker #4: There are no further questions at this time. Ladies and gentlemen, that concludes our conference for today. Thank you for participating. You may now disconnect your lines.

Operator 2: There are no further questions at this time. Ladies and gentlemen, that concludes our conference for today. Thank you for participating. You may now disconnect your lines.

Operator: There are no further questions at this time. Ladies and gentlemen, that concludes our conference for today. Thank you for participating. You may now disconnect your lines.