#China #Beijing #Cloud Computing #VNET Group #IDC Services

VNET Group, Inc. Reports First Quarter 2025 Financial Results

VNET Group, Inc. (Nasdaq: VNET), a prominent carrier- and cloud-neutral internet data center services provider in China, has released its unaudited results for the first quarter ending on March 31, 2025. The announcement reveals strong financial performance driven by a dual-core strategy that emphasizes both wholesale and retail internet data center (IDC) business models.

Financial Highlights

In Q1 2025, VNET reported total net revenues of RMB 2.25 billion (approximately $309.5 million), which represents an 18.3% increase compared to RMB 1.90 billion from the previous year. This surge in revenue was significantly driven by a remarkable 86.5% growth in wholesale IDC revenue, which reached RMB 673.2 million.

According to Josh Sheng Chen, the Founder, Executive Chairperson, and interim Chief Executive Officer of VNET, the company experienced robust deliveries and a rapid pace of customer onboarding. By the end of the first quarter, the wholesale capacity in service expanded to 573 MW, a growth of 88 MW from the previous quarter. Notably, the utilized capacity in the wholesale segment surged to 437 MW, with a utilization rate of 76.2%, indicating strong demand and performance in the wholesale sector.

Operational Insights

VNET's operational success was mirrored in its IDC business, which saw an impressive 27.8% increase in revenue, reaching RMB 1.64 billion. Backed by the company's robust capabilities, the wholesale business played a critical role in this achievement, characterized by efficient operations and solid customer engagement.

Moreover, VNET secured new orders in both wholesale and retail sectors during this quarter. Among these were 119 MW worth of wholesale orders disclosed in the previous quarter and an additional 6 MW order from a customer specializing in intelligent driving technologies. Illustrious orders also came from diversified sectors including finance, gaming, and local services, demonstrating VNET's versatility.

Future Outlook

The first quarter was marked by a solid performance, indicating a promising outlook for VNET’s growth. The Chief Financial Officer, Qiyu Wang, highlighted that the company is diversifying its financing capabilities at low costs, laying a foundation for sustainable growth. The company estimates total net revenues for the year 2025 to fall between RMB 9,100 million to RMB 9,300 million, projecting growth rates of 10% to 13%.

VNET Group, Inc.'s commitment to maintaining high-performance standards and adapting to market needs positions it as a key player in advancing the digital economy in China. The company continues to seek out quality partnerships and investments that will enable it to leverage its state-of-the-art data center network and build value for its stakeholders moving forward.

Conclusion

In conclusion, VNET Group's Q1 2025 results showcase not only the company's current success but also its strategic vision for future expansion in the highly competitive digital infrastructure landscape. As VNET continues to foster growth while optimizing operational efficiencies, it stands to play a significant role in shaping the future of internet data center services in China.

For investors and stakeholders interested in the details of VNET's financial metrics, the full earnings conference call will take place at 8:00 AM U.S. Eastern Time on May 28, 2025. This will provide opportunities for in-depth discussions about the company's prospects and market position.

With forward-looking strategies firmly in place, VNET is poised to capitalize on the increasing demand for cloud and data services, further cementing its standing within the industry.