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    Daley Li • Bank of America Securities

    Daley Li's questions to VNET Group Inc (VNET) leadership

    Daley Li's questions to VNET Group Inc (VNET) leadership • Q1 2025

    Question

    Daley Li of Bank of America Merrill Lynch inquired about the key drivers for the strong Q1 gross profit margin improvement and the future outlook, as well as the progress of the company's REITs plan.

    Answer

    CFO Qiyu Wang attributed the gross profit margin improvement to two factors: an increasing proportion of higher-margin wholesale business and the strategic repurposing of retail cabinets for high-value AI demand while phasing out lower-margin services. Regarding REITs, Wang stated the private REIT project has been accepted by the Shanghai Stock Exchange with results expected in H2, and the company remains confident in its RMB 2 billion asset recovery target for the year.

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    Daley Li's questions to VNET Group Inc (VNET) leadership • Q3 2024

    Question

    Daley Li asked for the demand outlook by region for the next 2-3 years, specifically comparing Ulanqab and Huailai, and inquired where future CapEx would be concentrated. She also questioned the key drivers behind the improving gross profit margin and its expected future trend.

    Answer

    Rotating President Chenggang Shen detailed the strategic focus on three campuses: Ulanqab for large-scale AI training, Huailai for inference and smaller training, and Taicang as a core regional node. CFO Qiyu Wang attributed the higher gross margin to IDC optimization, a rising mix of high-margin wholesale business, and favorable adjustments to depreciation terms.

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