VNET Group Q1 2025 Earnings Report

VNET Group EPS Results

• Actual EPS: -$0.12
• Consensus EPS: -$0.01
• Beat/Miss: Missed by -$0.11
• One Year Ago EPS: -$0.28

VNET Group Revenue Results

• Actual Revenue: $309.52 million
• Expected Revenue: $2.22 billion
• Beat/Miss: Missed by -$1.91 billion
• YoY Revenue Growth: N/A

VNET Group Announcement Details

• Quarter: Q1 2025
• Date: 5/28/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, May 28, 2025
• Conference Call Time: 8:00AM ET

VNET Group (NASDAQ:VNET), an investment holding company, provides hosting and related services in China. It offers managed hosting services consisting of managed retail services, such as colocation services that dedicate data center space to house customers' servers and networking equipment, as well as allow customers to lease partial or entire cabinets for their servers; interconnectivity services that allow customers to connect their servers; value-added services, including hybrid IT, bare metal, firewall, server load balancing, data backup and recovery, data center management, server management, and backup server services; cloud services that allow customers to run applications over the internet using IT infrastructure; and VPN Services that extend customers' private networks by setting up connections through the public internet. The company also provides server administration services, such as operating system support and assistance with updates, server monitoring, server backup and restoration, server security evaluation, firewall services, and disaster recovery services. It serves information technology and cloud services, communications and social networking, gaming and entertainment, e-commerce, automobile, financial services, and blue-chip and small-to-mid-sized enterprises; government agencies; individuals; and telecommunication carriers. The company was formerly known as 21Vianet Group, Inc. and changed its name to VNET Group, Inc. in October 2021. VNET Group, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

VNET Group Q1 2025 Earnings Call Transcript

Key Takeaways

• Q1 wholesale IDC capacity in service rose 18.1% Q/Q to 573 MW with utilization up to 76.2%, while retail cabinet MRR climbed to RMB 8,898, reflecting robust customer move-ins and pricing power.
• Total net revenues grew 18.3% Y/Y to RMB 2.25 billion, led by an 86.5% Y/Y surge in wholesale revenue to a record RMB 673 million, driving adjusted EBITDA up 26.4% Y/Y to RMB 682 million (30.4% margin).
• Strengthened financing with a $430 million convertible note at 2.5% and a RMB 500 million sustainability-linked loan at 3.7%, achieving a record low all-in borrowing cost of 3.05%.
• Secured quality new orders including a 55 MW cloud computing deal, 64 MW internet order, and 4 MW of AI-driven retail IDC capacity, while private large-language-model deployments jumped 309% in March.
• Reiterated 2025 guidance of RMB 9.1–9.3 billion in net revenues (+10–13%), RMB 2.7–2.76 billion in adjusted EBITDA (+15–18%), and CapEx of RMB 10–12 billion to support rapid capacity build-out.

Presentation

[Operator]

Hello, ladies and gentlemen. Thank you for standing by for the First Quarter twenty twenty five 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 line.

[Operator]

Participants from our management include Mr. Zhu Ma, rotating president Mr. Qi Yu Wang, Chief Financial Officer Ms. Jinhua Liu, Head of Investor Relations of the company. Please note that today's conference call is being recorded.

[Operator]

I will now turn the call over to the first speaker today, Ms. Jinhua Liu. Please go ahead.

[Xinyuan Liu, GM, Board Secretary and Head - Investor Relations & ESG at VNET Group]

Thank you, operator. Hello, everyone, and welcome to our first quarter twenty twenty five earnings conference call.

[Xinyuan Liu, GM, Board Secretary and Head - Investor Relations & ESG at VNET Group]

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.

[Xinyuan Liu, GM, Board Secretary and Head - Investor Relations & ESG at VNET Group]

Please also know 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 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.vina.com. Next, I'd like to alert you that we will be utilizing text to speech technology powered by NewLink dot ai to deliver this quarter's prepared remarks by mister Chima, our rotating president, and mister Qi Yu Wang, our CFO. The management team will join the Q and A session in person.

[Xinyuan Liu, GM, Board Secretary and Head - Investor Relations & ESG at VNET Group]

Additionally, this conference is being recorded. A webcast of this conference call will also be available on our IR website at ir.vina.com. Now let's get started with today's presentation. Mr. Ma, please go ahead.

[Ju Ma, Rotating President and GM - AIDC Strategic Business Group at VNET Group]

Good morning and good evening everyone. Thank you for joining our call today. I would like to begin by sharing our primary accomplishments during the first quarter of twenty twenty five. As we embarked on the new year journey, we achieved a strong set of results that set a positive tone for the year ahead. On the operational side our wholesale IDC business recorded another impressive performance supported by our robust deliveries and our customers fast moving pace.

[Ju Ma, Rotating President and GM - AIDC Strategic Business Group at VNET Group]

As of 03/31/2025, our wholesale capacity in service grew 18.1% quarter over quarter to five seventy three megawatts, an increase of 88 megawatts. O cell capacity utilized grew 23.9% quarter over quarter to four thirty seven megawatts a record high increase of 84 megawatts while the utilization rate increased by 3.6 percentage points to 76.2% indicating that newly delivered orders are being moved in faster than ever before meanwhile our retail business continued to progress smoothly benefiting from the rapid deployment of DeepSeq Furthermore propelled by our dual core strategy we consistently secured high quality orders from customers across various industries. I will elaborate on this in detail on the next slide. On the financial side we maintained our solid growth trajectory across both total net revenues and adjusted EBITDA. Our total net revenues increased by 18.3% year over year to RMB2.25 billion for the first quarter notably wholesale revenues reached a new record high of RMB 673 million for the quarter representing an impressive year over year growth rate of 86.5%.

[Ju Ma, Rotating President and GM - AIDC Strategic Business Group at VNET Group]

Thanks to the rapid growth of our wholesale IDC business our adjusted EBITDA for the first quarter also increased by 26.4% year over year to RMB682 million with an adjusted EBITDA margin of 30.4% up 1.9 percentage points year over year. Excluding the one off impact of asset disposals last quarter adjusted EBITDA increased by 18.1% quarter over quarter. We also further strengthened our financing capabilities diversifying our channels at a relatively low cost. In March we issued $430,000,000 US dollars of convertible senior notes due in 02/1930 at an interest rate of 2.5% per annum. We also secured our first sustainability linked loan of RMB 500,000,000 with a 3.7% interest rate per annum.

[Ju Ma, Rotating President and GM - AIDC Strategic Business Group at VNET Group]

Furthermore our all in cost for one of our new loan projects reached a record low at three point zero five percent fifty five basis points lower than the five year LPR. Next let's delve into our first quarter accomplishments in more detail. Moving on to our new order wins on slide five, we continue to win quality wholesale and retail orders in the first quarter in addition to the wholesale orders we disclosed last quarter a 55 megawatt order from a leading cloud computing customer and a 64 megawatt order from an internet customer through our jv project We won a six megawatt wholesale order from an intelligent driving customer for our data centers in the Greater Beijing area. Furthermore breakthroughs by DeepSeq are propelling growing demand among customers for our retail IDC services to deploy intelligent applications. During the quarter, we secured a combined capacity of around four megawatts in retail orders from customers in the internet, finance, local services, intelligent driving and gaming sectors.

[Ju Ma, Rotating President and GM - AIDC Strategic Business Group at VNET Group]

These orders span multiple retail data centers in Greater Beijing area, the Yangtze River Delta, the Greater Bay Area and other regions. At the beginning of 2025 China's AI development entered an explosive new phase of growth driven by deep sea breakthrough technology. This created surging AI related demand for premium IDC services boosting the IDC industry's growth. As an industry leading player known for our high performance data centers and reliable premium services we quickly seized growth opportunities winning quality new orders and driving progress notably fueled by the rising demand for private deployments triggered by DeepSeq our retail IDC businesses revenues from customer private deployments of open source large language models increased by three zero nine percent in March compared to January. Looking ahead we remain confident in the China market's growth potential.

[Ju Ma, Rotating President and GM - AIDC Strategic Business Group at VNET Group]

We believe that the increasing maturity of open source model technology and the continuous expansion of intelligent application scenarios will continue to drive high demand for computing power and premium IDC services further fueling our sustainable high quality growth. Now let's delve into our business updates starting with our wholesale business on slide eight. Our wholesale business maintained its robust growth momentum with capacity in service increasing to five seventy three megawatts and utilization rate rising to 76.2 thanks to our strong delivery capabilities at our NOR Campus 1 and EJS Campus 3 and faster than expected move ins at our EJS Campus 2 and NHB Campus 01B we also delivered mature capacity utilization rate of 94.5% a relatively high level and a ramp up capacity utilization rate of 32.1%. 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 continued to grow In the first quarter our capacity under construction was three seventy seven MW with a pre commitment rate for capacity under construction stable at 81.6% as of the March Additionally, capacity held for short term future development remained relatively steady at two fifty six MW capacity held for long term future development further expanded to four fourteen megawatts as we remain confident in China's market growth potential as AI spurs greater demand for premium IDC services we will maintain our robust expansion plan to ensure we are well prepared for further business growth.

[Ju Ma, Rotating President and GM - AIDC Strategic Business Group at VNET Group]

Moving to our retail IDC business on slide 10, our retail business continued to progress smoothly in the first quarter. Retail capacity in service was 51,960 cabinets with the utilization rate increasing slightly to 63.7% as of the March. MRR per retail cabinet increased to RMB 8,898 this quarter Turning to our delivery plan on slide 11, supported by our robust and efficient delivery capabilities, we successfully delivered a total of 88 MW in the first quarter. 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 three seventy seven megawatts of capacity over the next twelve months or around 165 megawatts during the second and third quarters of twenty twenty five and around two twelve megawatts during the fourth quarter of twenty twenty five and the first quarter of twenty twenty six.

[Ju Ma, Rotating President and GM - AIDC Strategic Business Group at VNET Group]

This ambitious delivery plan reflects strong demand from our customers and our outstanding delivery capabilities. Now turning to our non IDC business, a key component of our overall business. Continued to expand its customer base by acquiring new customers from several state owned enterprises as well as the financial services and home appliances sectors for their premium dedicated internet services and internet connection services. What's more, I am pleased to share that DECN recently received approval as a zero voltage supplier for a fifth consecutive year from T Systems which is part of Deutsche Telekom in recognition of DECN's reliable outstanding services. In conclusion, thanks to the strong execution of our effective dual core strategy we delivered robust first quarter results propelling progress across both our wholesale and retail businesses.

[Ju Ma, Rotating President and GM - AIDC Strategic Business Group at VNET Group]

Going forward we will continue leveraging our high performance data center network, reliable solutions and outstanding delivery capabilities to meet our customers growing demand driving growth and advancing the development of China's digital economy Now I will turn the call over to our CFO, Qi Yu, for further discussion of our operating and financial performance. Thank you, everyone.

[Qiyu Wang, Chief Financial Officer at VNET Group]

Good morning, and good evening, everyone. Before we start the detailed discussion of our first quarter performance, please note that unless otherwise stated, all the financials we present today are for the first quarter of twenty twenty five 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 first quarter, we continued to pursue high quality, high margin business.

[Qiyu Wang, Chief Financial Officer at VNET Group]

Our total net revenues increased by 18.3% to RMB2.25 billion, mainly driven by rapid growth of wholesale business. Our adjusted cash gross profit rose by 26.4% to RMB 9 and 67,800,000.0, while our adjusted EBITDA also grew year over year by 26.4% to RMB 682,400,000.0. Meanwhile, excluding the one off impact of asset disposals last quarter, our adjusted cash gross profit and adjusted EBITDA increased by 11.518.1%, respectively, quarter over quarter. Let's look more closely at our top line. As you can see on slide 14, in the first quarter, wholesale revenues, our key revenue growth driver, increased significantly by 86.5% to RMB673.2 million, mainly attributable to sales at the EGS Campo two and Enghbi Campo 1B.

[Qiyu Wang, Chief Financial Officer at VNET Group]

Also, excluding the one off impact of asset disposals last quarter, wholesale revenues increased by 14.1% quarter over quarter. Retail revenues continued to account for the largest part of our total net revenues and increased by 4.8% to RMB 9 and 68,300,000.0. Our non IDC business remained stable. During the first 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 43.1% from 40.3% in the same period last year.

[Qiyu Wang, Chief Financial Officer at VNET Group]

Our adjusted EBITDA margin rose to 30.4% compared with 28.4% in the same period last year. Moving on to liquidity on slide 16. We maintain robust and healthy liquidity, bolstered by net operating cash inflow of RMB195.7 million during the first quarter. Our cash positions remain solid with total cash and cash equivalents, restricted cash and short term investments reaching RMB5.79 billion as of 03/31/2025. Next, let's take a look at our debt structure on slide 17.

[Qiyu Wang, Chief Financial Officer at VNET Group]

We maintained our prudent approach to debt management with our net debt to the trailing twelve months adjusted EBITDA ratio at five and total debt to the trailing twelve months adjusted EBITDA ratio at 6.5, both remaining at a healthy level. Our trailing twelve months adjusted EBITDA to interest coverage ratio improved to 7.5 as of 03/31/2025. 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 45.6% of our total debt. Turning now to CapEx spending.

[Qiyu Wang, Chief Financial Officer at VNET Group]

As you can see on slide 18, for the first quarter, our CapEx was RMB1.82 billion, with the majority allocated to the expansion of our wholesale IDC business. As disclosed last quarter, we expect our CapEx for full year 2025 to be in the range of RMB10 billion and RMB12 billion. The increase is mainly to support our planned delivery of 400 to four fifty megawatts in 2025 or approximately three times twenty twenty four's total deliveries and surpassing our total deliveries in the past three years combined. Now moving to our full year guidance for 2025 on slide 19. We are reiterating our previous guidance for the full year of 2025 with anticipated total net revenues to be between RMB9.1 billion to RMB9.3 billion, representing year over year growth of 10% to 13%.

[Qiyu Wang, Chief Financial Officer at VNET Group]

Adjusted EBITDA is expected to be in the range of RMB 2,700,000,000.0 to RMB 2,760,000,000.00, representing year over year growth of 15% to 18%. Based on our new orders and the delivery plan, our capital expenditure for 2025 is still expected to be in the range of RMB 10,000,000,000 to RMB 12,000,000,000, representing year over year growth of 101% to 141%. Before I conclude, I'd like to briefly update you on our ESG initiatives. In April, we issued our fifth annual ESG report detailing the company's 2024 endeavors and progress in sustainability, including our verified carbon inventory results. During 2024, we upgraded our Shield Sustainability System to broaden stakeholder coverage and amplified our impact.

[Qiyu Wang, Chief Financial Officer at VNET Group]

We achieved encouraging progress across green power engagement, efficient energy consumption, and employee diversity and equality. Notably, our total energy usage from renewable sources reached about 360,880 megawatt hour during the year, marking a fivefold increase year over year and accounting for 18% of total resources utilized by VNet. Also, our average annual power usage efficiency reached 1.27, and the percentage of female employees in our management positions increased to 33%. These efforts continued to garner recognition from top ESG rating authorities. This year, we ranked first among Chinese enterprises in the IT services industry in the China edition of the S and P Global Sustainability Yearbook for the third consecutive year and won the twenty twenty five Top 1% and Industry Mover Awards.

[Qiyu Wang, Chief Financial Officer at VNET Group]

Moving forward, we will remain committed to integrating ESG best practices across our business, facilitating the development of China's green digital economy. In summary, we got off to a strong start for 2025, highlighted by robust business growth and enhanced growth and ability. We'll remain dedicated to our sustainable, high quality growth strategy and continue to invest in future development, capturing market opportunities and creating sustainable long term value for our stakeholders. This concludes our prepared remarks for today. We are now ready to take questions.

[Operator]

Thank you. We will now begin the question and answer session. If you wish to ask a question, please press 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press 2. If you're on a speakerphone, please pick up the handset to ask your question.

[Operator]

We will now pause a moment to allow to order our queue. Your first question comes from Tom Tang from Morgan Stanley. Please go ahead.

[Yue Tang, Analyst at Morgan Stanley]

Okay. Thanks management for the opportunity to ask questions and congratulations on a very robust result for the first quarter. So I have one question on the demand side. So we know that H20 has been banned by The United States. So just wanted to have an update on the customer demand and all the procurement processes after the chip has been banned.

[Yue Tang, Analyst at Morgan Stanley]

Just wondering if there's any changes and if we have any outlooks in the future. Thank you.

[Moderator]

Thank you for your question. Let me take your very first question. Yes, as we are aware that the H20 chip embargo was in place starting from this year. And because of that, it has caused a short term impact on our clients' demand, particularly for those hyperscalers. However, there was a quick adjustment.

[Moderator]

Now everything is back on track. So our current order on hand is sufficient to fill all the capacities to be delivered this year as well as the first half of next year. Like I said, the hyperscalers quickly adjusted their demand after the short lived impact because of the chip embargo. Now everything is back on track. And we expect that there is going to be sustained demand from these hyperscalers.

[Moderator]

And they are also asking us to scale up the capacity to be delivered to them. We expect that there is going to be still a lot of demand for GPUs used for large language model training as well as scaled up data centers. So therefore, there's going to be continued and sustained demand from these hyperscalers. Thank you.

[Xinyuan Liu, GM, Board Secretary and Head - Investor Relations & ESG at VNET Group]

Next question please.

[Operator]

Thank you. Your next question comes from Edison Lee from Jefferies. Please go ahead.

[Edison Lee, Head - HK/China Tech, Telecom & Software Research at Jefferies]

Hi. Thank you for taking my questions. I have two quick questions. Number one is on your retail demand. I think that right now you disclosed that four megawatt of new retail contracts. I want to know if these are AI driven applications and whether you are charging based on power rather than cabinets? And number two question is that your MRR has gone up materially in the first quarter of this year, and maybe you can share some colors on the drivers behind that increase in MRR.

[Moderator]

Thank you for question. As you rightly mentioned that we did win a four megawatt order for our retail IDC business in the first quarter. And as you correctly mentioned that most of the demand are from AI driven and that covers the demand for FinTech, local services, Internet companies as well as intelligent driving. So these are all AI driven demand for these retail IDC services. And very little of that demand is for cloud based gaming.

[Moderator]

And this is Zhu Yu. I would like just to make a quick add to what Mr. Ma has mentioned that on the drivers behind the MMR, most of the recent orders that we win for the retail IDC business is indeed from AI driven and that require high voltage cabinets. Therefore, the company has been continuously repurposing some of the cabinets to accommodate such needs. And for that, we do charge a higher price, so the build is higher. So that explains the upgrowing MMR. Thank you.

[Operator]

Next question please. Thank you. Your next question comes from Timothy Zhao from Goldman Sachs. Please go ahead. Your next question comes from Dailey Le from Bank of America Securities.

[Daley Li, Vice President, Equity Research Analyst - China Software & Semis Sector at Bank of America Merrill Lynch]

Firstly, congrats on the strong 1Q results. I have two questions here. Number one is regarding our gross profit margin in 1Q. We see a strong quarter on quarter improvement. And could management give you some color?

[Daley Li, Vice President, Equity Research Analyst - China Software & Semis Sector at Bank of America Merrill Lynch]

What's key drivers for the gross profit margin improvement? And what should be our future target or normalized gross profit margin? And the same question is about our rates progress. If you look at our peer company, they also submit the application. And how do we see our rates plan for private rates or public rates is set up this year?

[Moderator]

This is Chiyi Wang. I will take your questions. First, on the drivers of the improved gross profit margin. Reason number one, the share or proportion of our wholesale IDC service is gradually improving. This is a business that has a higher gross profit margin.

[Moderator]

Therefore, overall, it is contributing to a higher gross profit margin on a corporate level. Reason number two, we are repurposing some of the cabinets to accommodate the demand for retail IDC services and because that brings a higher MMR. And with that going in progress, we are automatically closing or gradually phasing out some of those low margin services. So these two reasons combined have pushed up the overall gross profit margin, and we expected that to continue in the future. As you rarely mentioned that this year marks a critical year for the Chinese rates sector.

[Moderator]

And most the two peers in the IDC business have also seen fairly smooth progress in terms of their public rates. And as we see it, the valuation of these REITs is reasonable and our public REITs project is also progressing well. And the current situation stands, the current valuation of these private rates is reasonable and it is progressing as we have expected. As you have noticed that our private risk project has been formally accepted and approved by the Shanghai Stock Exchange. So hopefully, we will hear some good results in the second half of the year.

[Moderator]

With our successful pre REITs project, we are actively advancing all types of asset securitization project. And we will maintain our annual target of recovering RMB2 billion target unchanged, and we are confident in achieving that goal for this year. Thank you.

[Xinyuan Liu, GM, Board Secretary and Head - Investor Relations & ESG at VNET Group]

Next question please.

[Operator]

Thank you. Your next question comes from Louis Tseng from Citi. Please go ahead.

[Louis Tsang, Analyst at Citi]

Okay. Thank you. Thank you very much for taking my question. Congratulations on a strong result. So I have two quick questions.

[Louis Tsang, Analyst at Citi]

So first of all, like, if we have any plans for the Eight Share IPO in Hong Kong. And then if you do you like wondering if we can like share more details? That's my first question. And then my second question is about the electricity tablet because we spoke that there is some downswing for some electricity tablet. So wondering if you would see there's any, like, positive impact to the EBITDA margin that had or there's, no impact.

[Moderator]

Thank you for your question. Yes, we looking at the potential Hong Kong listing, we know that the Hong Kong Stock Exchange extends its hands wide open to welcome those U. S. Listed companies to do dual listing in Hong Kong. And we have held in-depth conversation with the Hong Kong Stock Exchange, and we have also had formal engagement in written form.

[Moderator]

It's progressing. However, at this moment, I cannot give you a specific time line on that. With regard to your question on the electricity bills, we at the moment do not see a declining trend for the utility bills across our IDCs. It's fairly stable, so no change whatsoever on that front. You.

[Operator]

Next question please. Thank you. Your next question comes from Sarah Wong from UBS. Please go ahead.

[Xinyi Wang, Equity Research Analyst - Greater China Telecom & Data Center at UBS Group]

Thank you for the opportunity to ask a question and congratulations on a solid result.

[Xinyi Wang, Equity Research Analyst - Greater China Telecom & Data Center at UBS Group]

I only have a one question on the wholesale business. So I noticed that our delivery plan is actually rolling forward by a quarter to the to cover the first quarter of next year. So does that mean we also have visibility of utilization ramp up into next year? In other words, given our like solid delivery plan, how shall we think about utilization rate for the next three to four quarters?

[Moderator]

Thank you. I'll take your question. As you really mentioned and have observed from our financials that our clients do have a lot of demand for the capacity. And to accommodate their capacity need, we have actually responded actively and delivered the capacity needed, and they have been moving in fairly quickly. And actually, we have just hit a record high in terms of the capacity that's utilized that we just added for the past quarter.

[Moderator]

And according to the communications with these clients as well as assessing their willingness and also how firm they are about moving in scheduling. So we are confident to that for the upcoming three quarters plus the other another quarter next year, we are going to see very pleasant move in rhythm from these clients. Thank you.

[Operator]

Ladies and gentlemen, that concludes our conference for today. Thank you for participating. You may now disconnect your line.

Participants

Executives

• Xinyuan Liu, GM, Board Secretary and Head - Investor Relations & ESG
• Ju Ma, Rotating President and GM - AIDC Strategic Business Group
• Qiyu Wang, Chief Financial Officer

Analysts

• Yue Tang, Analyst at Morgan Stanley
• Moderator
• Edison Lee, Head - HK/China Tech, Telecom & Software Research at Jefferies
• Daley Li, Vice President, Equity Research Analyst - China Software & Semis Sector at Bank of America Merrill Lynch
• Louis Tsang, Analyst at Citi
• Xinyi Wang, Equity Research Analyst - Greater China Telecom & Data Center at UBS Group