Dai Li Li's questions to VNET Group Inc (VNET) leadership • Q2 2025
Question
Dai Li Li from BofA Securities questioned the reason for the slight drop in GAAP gross margin despite healthy adjusted gross margin growth and asked for an update on the progress of REITs financing.
Answer
VNet Management explained the GAAP gross margin fluctuation is due to seasonal timing of converting Construction in Progress (CIP) to PPE and related depreciation. They highlighted that the adjusted cash gross margin shows a healthy, steady increase. Regarding financing, management confirmed they are actively pursuing public and private REITs with a goal to recover CNY 2 billion this year.