Hello, ladies and gentlemen. Thank you for standing by for the 4th quarter and full year 2022 earnings conference call for VNET Group, Inc.. At this time, all participants are in listen-only mode. After the management's prepared remarks, there will be a question-and-answer session. Participants from our management include Mr. Jeff Dong, Chief Executive Officer, Mr. Tim Chen, Chief Financial Officer, and Ms. Xinyuan Liu, Investor Relations Director of the company. Please note that today's conference is being recorded. I will now turn the call over to your first speaker today, Ms. Xinyuan Liu. Please go ahead. Thank you, operator. Hello, everyone, and welcome to our fourth quarter and full year 2022 earnings conference call. Our earnings release was distributed earlier today, and you can find a copy on our IR website as well as on Newswire services. Please note that the discussion today 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 press release and this conference call include the disclosure of audited GAAP financial measures as well as audited non-GAAP financial measures. VNET's earnings press release contains a reconciliation of the audited non-GAAP measures to the audited GAAP measures. As a reminder, this conference is being recorded. In addition, a webcast of this conference call will also be available on our IR website at ir.vnet.com. I will now turn the call over to our CEO, Jeff. Thank you, Xinyuan. Good morning and good evening, everyone. Thank you for joining our fourth quarter and full year 2022 earnings conference call. Laden with macroeconomic headwinds and COVID-related disruptions, 2022 was an extraordinary year. Amidst these challenging environments, we delivered solid financial and operational results through excellent execution of our Dual-Core strategy. We achieved our 2022 delivery target by ending approx 8,400 self-built CapEx. By the end of the fourth quarter, our total CapEx under management had grown to approx 87,320 from 78,540 a year ago. Cabinets utilized by customers increased sequentially by approx 2,500 to approx 48,000 compared to approx 41,700 one year ago. Our overall utilization rates was 55%. Our retail MRR per cabinet increased to CNY 9,371 in the fourth quarter, up from CNY 9,287 in the third quarter. We concluded 2022 with a resilient fourth quarter revenue of CNY 1,881 million, an increase of 7.7% year-over-year, and adjusted EBITDA of CNY 424 million. For the full year, our revenue grew 14.1% to CNY 7,065 million and adjusted EBITDA increased 6.8% to CNY 1,873 million. Before we get deeper into our business details for the fourth quarter, I'd like to touch on the broader macro climate in China for some context. According to 2023 government work report issued early this month, the central government set a GDP growth target of around 5% for this year, up from last year's 3%. In addition, the government will continue to accelerate the digital transformation of traditional industries and small and medium-sized enterprises, who are also supporting the development of the platform economy. Last month, the central government rolled out a plan to build a Digital China by 2025, which highlights the country's focus on expanding data resources and improving digital infrastructure. Encouraged by these supportive measures and positive signals, we expect industry vitality to gradually recover and business confidence to rebound. In particular, we believe the internet giants will play to their strengths in technology to empower development of the digital economy and unleash greater demand across all markets. As China's leading IDC service provider, we are well-positioned to capture new growth opportunities ahead. Now let's take a closer look at our Q4 business updates. Execution of our Dual-Core strategy continues to prove strongly effective, both in the wholesale and retail IDC markets. On wholesale fronts, we continue to gain robust sales momentum with two major orders despite the macro challenges. In the fourth quarter, we extended our wholesale data center services contract with one of our largest existing customers, a leading social platform in China. This extended order will generate a capacity of approx 33 megawatt. More encouragingly, we recently won the bid-To deploy IDC services in multiple phases to support the business expansion for a new customer, one of China's internet giants. During the first phase, we expect to provide customer with capacity of over 100 megawatt through our IDC assets located in the Yangtze River Delta region. This collaboration represents a significant development opportunity for us and into our proven track record of providing IDC services to powerhouse companies across China's internet industry. Moving on to our retail business. We continue to make meaningful progress on our customer base expansion in the fourth quarter, supported by our premier co-location and interconnectivity offerings, as well as our value-added services. We continue to extend our services to existing customers and attract new customers, meeting increasing demands from a wide spectrum of industries, including financial services, local services, mobility, online gaming, and some traditional industries. In particular, our connectivity services have tapped into a variety of sectors, including public transportation, public cloud, and healthcare, another testament to our industry-leading service capabilities. Next, I would like to highlight our progress on hybrid cloud offerings. In the fourth quarter, we successfully facilitated digital transformation for the mainland China operations of Watsons, a leading Asian health and beauty retailer. We provided the customer with a one-stop Infrastructure as a Service or IaaS solution, as well as complete operations and maintenance services for both software and hardware to optimize customers' IT architecture, enhance its business reliability, and improve operational efficiency. Looking ahead, we'll continue to empower our customers' transitions into the evolving digital area by leveraging our IDC asset network and service capabilities. Turning to our ESG initiatives. We have always held our long-term commitments and responsibilities to our industry, environment, and society as a foundation of our ongoing success. Our dedication and hard work are paying off, earning the company broad recognition from global renowned ESG rating agencies. We made great progress in our ESG ratings in 2022. Thanks to our continuous efforts in improving our ESG performance, MSCI upgraded us to a A rating in December 2022, which represents the highest ranking to date in China's internet service and infrastructure industry. In addition, our ESG score measured by the S&P Global Corporate Sustainability Assessment reached 57, ranking in the top 10% among all companies in the IT services industry globally. We also submitted CDP's climate change questionnaire in 2022, and achieved a B grade, which exceeded that of 96% of participating companies in China. These accomplishments and accolades clearly demonstrate the effectiveness of our ESG strategy, while strongly affirming our long-term investment value and development prospects. Moving into 2023. While the economic recovery is still underway and may need time to realize the full rebounds, we remain confident in the long-term growth potential of China's market, as well as the IDC service industry as a whole. We set our 2023 delivery plan in the range of 8,000-9,000 CapEx. We believe supportive government policies will accelerate China's digitalization across multiple industries. Our proven Dual-Core strategy and industry-leading service capabilities will keep us at the helm of the market recovery. We'll remain agile as we navigate shifting market dynamics and capitalize our future growth opportunities, creating sustainable and long-term value for our shareholder. Thank you, everyone. I will now turn the call to our CFO Tim to discuss our financial performance for the quarter and our business outlook. Thank you, Jeff. Good morning and good evening, everyone. Before we start the detailed discussions of our financials, please note that we will present non-GAAP measures today. Our non-GAAP results exclude certain non-cash expenses, which are not part of our core operations. The details of these expenses may be found in the reconciliation tables included in our earnings press release. Please also note that unless otherwise stated, all the financials we present today are for the fourth quarter of 2022 and in renminbi terms. As Jeff just mentioned, we concluded 2022 with resilient operating and financial performance amidst a myriad of external challenges, which speaks to our outstanding execution. Next, let me walk you through our fourth quarter financial results. Unless otherwise specified, the growth rates I will be reviewing are all on a year-over-year basis. In the fourth quarter, our net revenue increased by 7.7% to $1.88 billion from the same period last year, mainly due to increased customer demand for our highly scalable carrier- and cloud-neutral IDC solutions from both wholesale and retail IDC businesses, as well as the continued growth of our cloud and VPN services. Gross profit was $328.4 million in the fourth quarter of 2022, representing a decrease of 13.6% from the same period of 2021. Gross margin was 17.5% in the fourth quarter of 2022, compared to 21.8% in the same period of 2021. Adjusted cash gross profit, which excludes depreciation, amortization, and share-based compensation expenses, was $740.1 million in the fourth quarter of 2022, an increase of 3.7% from the same period of 2021. Adjusted cash gross margin in the fourth quarter of 2022 was 39.4% compared to 40.9% in the same period of 2021. Adjusted operating expenses, which exclude share-based compensation expenses, compensation for post-combination employment and acquisition, impairment of loan receivable to potential investee and impairment of long-lived assets were $355.4 million in the fourth quarter of 2022, compared to $273.7 million in the same period of 2021. As a percentage of net revenues, adjusted operating expenses in the fourth quarter of 2022 were 18.9% compared to 15.7% in the same period of 2021. Adjusted EBITDA in the fourth quarter of 2022 was $424.3 million, representing a decrease of 8.3% from the same period of 2021. Adjusted EBITDA in the fourth quarter of 2022 excluded a reversal of share-based compensation expense of $7.8 million. Adjusted EBITDA margin in the fourth quarter of 2022 was 22.6% compared to 26.5% in the same period of 2021. Our net loss attributable to ordinary shareholders in the fourth quarter of 2022 was $64.2 million, compared to a net loss of $27.3 million in the same period of 2021. Basic and diluted loss were both $0.07 per ordinary share and both $0.42 per ADS. Each ADS represents 6 Class A ordinary shares. Turning to our balance sheet. As of December 31st, 2022, the aggregate amount of the company's cash equivalents and restricted cash was $2.99 billion. Net cash generated from operating activities in the fourth quarter of 2022 was $569.6 million, compared to $664 million in the same period of 2021. Our CapEx in the fourth quarter of 2022 was CNY 1.21 billion, and the total CapEx for the full year 2022 was CNY 3.35 billion. Now move-in to our outlook. We expect net revenues for the full year of 2023 to be in the range of CNY 7,600 million-CNY 7,900 million, representing a year-over-year increase of 7.6%-11.8%. Adjusted EBITDA to be in range of CNY 2,025 million-CNY 2,125 million, representing a year-over-year increase of 8.1%-13.5%. Looking forward, we will continue to execute on our Dual-Core strategy and remain focused on our core business as well as higher quality revenues. We will continue to explore more capital resources to further strengthen our financial position. This concludes the prepared remarks for today. Operator, we are now ready to take questions. Thank you. Thank you. At this time, we will conduct the question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Yang Liu of Morgan Stanley. Please proceed with your question. Good morning. Thanks for the opportunity to ask questions. Two question from my side. The first one is about move-in. Could management share the color year to date? What is the move-in look like from your retail and wholesale customer? What should be the utilization rate by the end of this year if we add another 8,000-9,000 CapEx? Yeah, that's the first question. The second question is, we're glad to see that company onboard a new wholesale customer with pretty big order size. When should we expect the financial contribution will be visible in future? Thank you. Hi, Yang. Can you hear me? Yes, I can. Okay. Let me take the second question. I'll pass back to Jeff and the team on the first question on the ramp ups. For the new customer that we've announced just now, we're expecting the financial contribution to take place next... basically end of this year, early next year. Obviously it's gonna take us time to deliver the CapEx. By the time meaningful financial contribution takes place, I think it'll be 2024. I hope that's helpful. Let me pass the ramp up in terms of what we've been seeing in fourth quarter and the first few months of the first quarter to Jeff and team. Hi. Hi, Yang. It's Jeff. We ramp up. Regarding the ramp up, at the end of 2022 will be 55% utilization rate. We expect more for this year. Let me give you some colors on the new customers, just the team mentioned. Essentially, it's actually the large majority of the available CapEx in Q4. We can see, as you mentioned, the move-in from internet players is very good and faster than what we expect from the cloud service providers. Given the contribution to our financials, I would say in terms of this contract, we'll see, you know, by the end of this year. over 70 megawatts we be next year. We see substantially and logical financial contributions will be come up by the end of this year and early next year. Thank you. One moment for our next question. Our next question comes from the line of Sara Wang of UBS. Please proceed with your question. Hi. Thank you for the opportunity to ask a question. I have one question. Would management please walk us through the financing plan and also the major cash inflows and outflows for this year, especially given one of the convertible bond might be puttable early next year? Thank you. Thanks, Sara, for the question. It's Tim here. With regards to the overall financing plan, we've obviously started already at the end of last year, going through the alternatives available to the company. We've seen with quite positive news that, you know, the public markets are gradually opening up. As to the major sort of inflows and outflows, obviously the business continues to generate a very healthy operating cash flow. Outflows would be mainly the CapEx, and at this moment, we're expecting CapEx to be quite similar to what it was in 2022, which is between CNY 3 billion-CNY 3.5 billion. However, I would then point out next is that this CapEx is not all committed or contracted. We do have the ability to ratchet back during the course of the year, and we'll do so really for 2 areas. One is as we see the customer demand and also the customer requirements in terms of delivery dates, if they shift. You've seen us also in 2022 adjust during the course of the year as required. Secondly, obviously is we are planning our overall cash flow for the potential refinancing of the convertible bond, that would be in 1st quarter of 2024. That's something that we're keeping a very close eye on and obviously looking to the various alternatives. Obviously, given where share prices are for us and our peers, we will be looking mainly at debt and convertible as the main instruments. Also something that we have already mentioned last year, we continue to work on would be onshore renminbi financings, both in the form of private and public REITs. I hope that answers your question, Sara. Thank you. Just a quick follow-up. On the operating cash flow for 2022, it seems was CNY 2.6 billion. How shall we think about the operating cash flow level for 2023? Thank you. Yeah, I would say that, look, the working capital points will not move very, very much. You're looking at underlying EBITDA as a good proxy. Obviously, we've given some guidance on EBITDA. I think you'd use that as a proxy on where, directionally, we expect operating cash flow to go as well. Got it. That's clear. Thank you. Thank you, Sara. As a reminder to ask a question, please press star one one on your telephone. Please stand by. One moment, please. Our next question comes from the line of Edison Lee of Jefferies. Please proceed with your question. Okay. Hi. Thank you. Hi, Tim and Jeff. Thank you for the presentation. I have two questions. Number one is, on this new customer that you have signed up, for over 100 megawatt. Based on your comment a little bit earlier, I assume that the 3,000 CapEx that you're including in your 2023 guidance is not related to this customer. I just want to confirm that. Also, could you give us some color on the pricing and also on the potential for follow-on orders for this particular customer in the same region or in the same data center campus? My number two question is it possible for you guys to give us an update on your joint venture IDC fund with the Changzhou government? In fact, is that being factored into your 2023 guidance, or how much of that is being factored into that? Yeah, that would be great. Thank you. Hi, Edison. Let me answer your question. The first one in terms of new customers. Yes, it is. We include the 3,000 CapEx as is here, which is from the first phase of the new customer. Oh, sorry, Jeff. Can I confirm that this 3,000 CapEx will be delivered toward the end of the year, so that's why the financial contribution in 2024? Yeah, Edison, that's correct. It's Tim here. That's correct. We're expecting that these will be delivered at the very tail end of the year. I don't expect, at least from my side, any meaningful financial contribution, probably a little bit the very beginning of it, but really the meaningful contribution will be in 2024, first quarter. All right. Can I also follow up with just one related question? Will this 100 megawatt be fully delivered within 2024 or it's gonna go into 2025? It's gonna be divided into the different phase. The first phase will be this year and early next year, we'll deliver like one third, sorry, two thirds, and the remaining will be delivered in the next year. It will be completely delivered in 2024? No, no. No, sorry. The first phase, the first part is gonna be if from mainly in 2023 into the early part of 2024. The balance, we will need to see whether the customer will give us the heads-up, so it depends on their move-in rate. If the move-in rate is very, very strong, they may give us an earlier go ahead, in which case, yes, it would be in 2024. If not, it could actually drag into the outer years. I'm sorry. I want to further clarify because I think that's an important point. This 100 megawatt contract, you already signed the MOU with the customer. However, the timing of delivery is actually not specified in the MOU. Is this understanding correct? Only part of it is specified and the balance is not. the customer commitment The indication that they've given us, yeah. Yes, correct. I think. Tim, let me put it this way. Edison, we will be fully delivered within the three years per the MOU with the customer. Okay. In the same location, right? All these capacities are the same location. Yeah. Yes, same location. Yes. Okay. Thank you. Yeah. In terms of the second question Yeah. Sorry, Jeff. Please go ahead. Okay. Let me answer your questions on, in terms of the JV with Changzhou. We have actually, we recently signed a SPA in Langfang area with one project, which is the largest one from the identified portfolio. The JV has already commit over RMB 500 million and, as a proportion, we also committed the capital. This Langfang project will achieve IT scale of about 140 megawatt, and also will be delivering the CapEx, more than 17,000 CapEx in total. That's what we have done, so far. On some other projects, we are also closely in discussion with Changzhou, we'll be ramp up soon, probably by the end of this year, including Shenzhen, Dongguan, and also in central Beijing areas. Thank you. Just a follow-up. Will this Langfang project be contributing profitability to VNET this year? I wouldn't say it's contribute to VNET financials. It's also divided into the different phase. The phase one and phase two already has the customers. We are sending the SPA on phase three and phase four, which is a greenfield project with full regulatory license. Hopefully will be delivered by the end of this year and ramped in maybe next year. Okay. Thank you very much. Ladies and gentlemen, that concludes our conference today. Thank you for participating. You may now disconnect.