Hello, ladies and gentlemen. Thank you for standing by for the Q3 2023 earnings conference call for VNET Group Inc. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Participants from our management include Mr. Jeff Dong, Chief Executive Officer, Mr. Qiyu Wang, Chief Financial Officer, Mr. Tim Chen, Chief Strategy Officer, and Ms. Xinyuan Liu, Investor Relations Director of the company. Please note that today's conference call is being recorded. I'd now like to turn the call over to the first speaker today, Ms. Xinyuan Liu. Please go ahead. Thank you, operator. Hello, everyone, and welcome to our Q3 2023 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 today's call 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 and 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 call today. I'd like to start with the overview of our Q3 performance. Our solid growth in the Q3 reflects our continued focus on high-quality business opportunities. Cabinet deliveries are progressing smoothly. By end of the quarter, we had grown our total cabinets under management to approx 88,900, compared with approx 82,660 a year ago. The number of utilized cabinets increased by 1,092 to 52,408 in the Q3, driving our overall utilization rate to 59%. Furthermore, our retail MRR per cabinet during the quarter stayed high at CNY 9,495. We remained dedicated to ending high-quality revenues in both the wholesale and the retail IDC markets in the Q3, generating solid quarter-over-quarter growth with our total net revenues increasing by 4% to CNY 1.89 billion and adjusted EBITDA growing by 11.6% to CNY 507.9 million. With the rapid pace of large language model training and AI application deployments, computing power is becoming a new productive force. To meet the growing need for computing power, China's governing authorities have recently unveiled an action plan for the high-quality development of computing power infrastructure nationwide. As an industry-leading player, we are seeing increasing demand for premium IDC services, and we remain a clear choice for customers to ride the wave of digital transformation. Now, let's take a closer look at our Q3 business updates. First, AI is driving increasing demand for computing power and IDC services. Our wholesale data center continues to meet the increasing AI demand, driven by our customers' rapid growing business. Equipped with high power density capabilities, we excel in powering Large Language Model training and the deployments for internet platforms. Our core competencies, spanning resources, and execution capabilities enable us to support our customers evolving and sustain business development needs. As we mentioned on our last call, in August, we won an extended order of 45 MW from the existing internet giant customer, which speaks to our superior wholesale service offerings appeal amid the competitive landscape. Moreover, our cabinet deployment execution has been stellar. During the Q3, we successfully delivered over 2,600 high power density cabinets in the Yangtze River Delta region to one wholesale customer and approximately 800 high power density cabinets in the northern China region of China to another wholesale customer. Throughout the delivery process, we maintain strict quality standards while offering customization options tailored to customer requirements. This execution is a testament to our commitment to timely delivery and top-notch quality, which has earned us a reputation for reliability and customer satisfaction. Our retail customers' AI-driven demand continue to rise, particularly from existing customers in industries such as local services, healthcare, and we are building on this momentum. We expect to attract more retail customers from a wider range of industries, such as autonomous driving and AI solutions. I'd also like to highlight our distinctive proficiency in designing and implementing power and equipment upgrades for our cabinets to meet existing customers' high power density computing needs. This capability is well supported by our engineering experience and expertise, as well as our existing high power density cabinets, which allows us to promptly address growing diverse AI demands from retail customers. In addition, we further expanded and diversify our retail customer base in the Q3, attracting new customers and securing extended contracts from an existing customer in various industries, including IoT, financial services, gaming, and mobility. It's also worth noting, we recently won a new order of 1.5 MW from an existing customer, a world-leading consumer electronic tech brand. Now turning to our value-added services. During the Q3, our full-stack, one-stop Bare Metal as a Service solution continued to gain new customers, one of which is a pioneering unicorn in the VR industry. We won the contract based on our flexible computing power resources that can rapidly meet this customer's specific demands during peak business hours, underpinning the rapid growth of its metaverse business. Our diverse IDC services offerings include a solid IT infrastructure, premium operations, and maintenance services, and impressive cost-efficient solutions, making VNET an outstanding choice for potential customers looking for a trusted partner to support their current and future business development needs. We have also attracted a leading Chinese EV automaker for our interconnectivity services. Throughout our robust data center and network resources nationwide, the customer can store their business data in adjacent data centers and transmit with low latency backhaul. This customer win reaffirms our compelling value proposition and advanced interconnectivity services capabilities. In summary, our robust Q3 results showcase our ability to effectively address both wholesale and retail business IDC needs, backed by timely and strong execution. Looking ahead, AI prevalence and adoption is emerging across industries, and the supportive government policies will accelerate the development of computing power infrastructure in China. As a dedicated industry leader, we look forward to meeting this newest wave of demand driven by AI applications and further unleashing our long-term growth potential. Thank you, everyone. I will now turn the call to Qiyu to discuss our financial performance for this quarter. Thank you, Jeff. Good morning and good evening, everyone. Before we start the detailed discussion of our financials, please note it that we will present non-GAAP measures today. Our non-GAAP results include 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 notice that unless otherwise stated, all the financials we present today are for the Q3 of 2023 and in renminbi terms. Now, let me walk you through our Q3 financial results. Unless otherwise specified, the growth rates I will be reviewing are all on a quarter-over-quarter basis. In the Q3, we continued to deliver solid results with our focus on high-quality revenues. Our net revenue increased by 4% to CNY 1.89 billion from the same period last year, mainly driven by the continued growth of our main business. Gross profit was CNY 306.5 million in the Q3 of 2023, representing a decrease of 3.2% from the same period of 2022. Gross margin was 16.2% in the Q3 of 2023, compared to the 17.5% in the same period of 2022. Adjusted cash gross profit, which includes depreciation, amortization, and share-based compensation expenses, was CNY 738.4 million in the Q3 of 2023, an increase of 4.3% from the same period of 2022. Adjusted cash gross margin in the Q3 of 2023 was 39.1%, compared to 39% in the same period of 2022. Adjusted operating expenses, which excludes share-based compensation expenses and the compensation for the post-combination employment in the acquisition, were CNY 264.8 million in the Q3 of 2023, compared to CNY 27.1 million in the same period of 2022. As a percentage of the net revenue, adjusted operating expenses in the Q3 of 2023 were 14% compared to 15.2% in the same period of 2022. Adjusted EBITDA in the Q3 of 2023 was CNY 507.9 million, representing an increase of 11.6% from the same period of 2022. Adjusted EBITDA in the Q3 of 2023 excludes share-based compensation expenses of CNY 9.5 million. Adjusted EBITDA margin was 26.9% in the Q3 of 2023, compared to 25.1% in the same period of 2022. Our net loss attributable to VNET Group in the Q3 of 2023 was CNY 50.5 million, compared to a net loss of CNY 425.2 million in the same period of 2022. Basic and diluted loss were both 0.06 per ordinary share and both 0.36 per ADS. Each ADS presents 6 Class A ordinary shares. Turning to our balance sheet, as of September 30, 2023, the aggregate amount of the company's cash, cash equivalents and restricted cash was CNY 3.02 billion. Meanwhile, net cash generated from operating activities in the Q3 of 2023 was CNY 454.3 million, compared to CNY 607.4 million in the same period of 2022. Our capital expenditure in the Q3 of 2023 was CNY 964.7 million. Before I conclude, I'd like to provide an update on our financial outlook for full year 2023. For the full year of 2023, the company currently expects total net revenue to be between CNY 7,400 million and CNY 7,600 million, representing a quarter-over-quarter growth of 4.7% to 7.6%. Adjusted EBITDA to be in the range of CNY 2,000 million to CNY 2,060 million, representing a quarter-over-quarter growth of 6.8% to 10%. This compares with total net revenue expected between CNY 7,600 million and CNY 7,900 million, and adjusted EBITDA between CNY 2,025 million and CNY 2,125 million. As previously stated, the outlook update is mainly due to our continuous focus on high-quality revenues to maintain the long-term sustainability of our operations. The forecast reflects the company's current and preliminary views on the market and its operational conditions and is subject to change. Moving forward, we will stay focused on our high-quality growth strategy, promoting our premier IDC services to empower digital transformation across a broader source of industries. As always, we remain committed to create sustainable growth for all our stakeholders. This concludes our prepared remarks for today. Operators, we are now ready to take questions. Thank you. We will now begin the question and answer session. To ask a question, please press star one one on your telephone. To withdraw your question, please press star one one again. The management welcomes questions to be asked in Chinese. For the benefit of all participants on today's call, if you wish to ask your question in Chinese, please immediately repeat your question in English. For the sake of clarity and order, please ask one question at a time. Management will respond and then feel free to follow up with your next question. Once again, that's star one one for questions. Our first question comes from the line of Yang Liu from Morgan Stanley. Please ask your question, Yang. Thanks for the opportunity to ask question. I would like to have an update in terms of the company's upcoming convertible bond repayment in February next year. What has been done or what is the current progress of the other monetization to prepare for the repayment? Both for the potential REITs issuance and also the selling some minority stakes of your existing project, et cetera, whatever you can share now. Thank you. Yeah, and thank you. I know this is the most important question for us. Taking the liability management issue has been my top priority since I took the CFO position. We are busy working on two major ways to resolve the issue. One is to raise new funding from new equity and debt investment. Because we need to follow the NASDAQ rules, so we will be dedicated to pursuing new investor, and then, it's the right time, we will make the public announcement if any concrete progress. Also continue to actively engage with our CB creditors to find the best way forward. Also, we also try our best to present OpEx management and all positive progress in other fundraising, just as you say, including the asset sale, minority share and also the C-REIT. There are these both have some significant progress, but also need some time to closing this deal. So, yeah, we will try our best to leverage this and this incoming CBs, so we are firm plan to the put and leveraging on both internal and external resources. Yeah, thank you. Thank you. May I follow up with another question on the business update? For the downward revision of the revenue and the EBITDA guidance, where do you see more weakness come from? It is from the traditional retail business or more from the wholesale business? Thank you. Yeah, yeah. Yes, we do, well, we do some change to our guidance. What I want to share is, with close to 13 years of IBC industry experience and market insight, we'll be navigating our business towards area- very aware with focus, great, greater profit margin business in short or midterms. For example, this year, we are allocating more of the DC resources to areas such the AI model-driven wholesale business lines. Very clearly, the, a booming market and promote our profit margin. So, we focus this high profit business, and then we try to close some low profit business. So, you can see if you compare the revenue and the EBITDA guidance, the EBITDA guidance, we only decrease a very minor around 2%. So in addition, we're planning to adopt fair value allowance practice within this year. So as our ongoing financial statement could better reflect the nature and condition of our business. And then, we continue to focus the high profit business, for example, the wholesale and then the AI-driven demand business. Thank you. I don't have any other questions. Thank you, Yang. Our next question comes from the line of Charlie Bai from Jefferies. Please ask your question, Charlie. Hi, this is Charlie Bai from Jefferies. My first question is about Q3 MRR. I saw a quarter-over-quarter decline on both the utilization rate and the retail MRR. Might I know what's the reason behind it? Thank you. Hi. In terms of MRR, I would say for the Q3 still say at a high level, and I see in line with our expectation. There might be some fluctuations from quarter to quarter, which is quite normal. So we believe for the at the end of the year, and it's come up again. And also, in terms of the utilization rates, our estimate of UR by the end of 2023 will be on par of the Q3 2023 level, with a faster growth, especially for our wholesale customers. Particularly, those in the short video sectors, we expect a higher utilization rate in 2024. Thank you. Thank you. May I follow up with another question? May I have some color on the outlook of the CapEx plan this year and in 2024? Thank you. Yeah. This year, the full year CapEx is expected to be around CNY 3.8 billion, which is about 10% more than our guidance. The main reason is that the demand for wholesale data center business is growing faster. Next year, there will be a significant increase in the full year CapEx, mainly due to the increased growth rate, growth rate of a wholesale business and the high, and AI-driven the, the demand. So, we will specific figure the CapEx announce in the full year guidance early next year. Okay, thank you. I have no more questions. Thank you, Charlie. Our next question comes from the line of Timothy Zhao from Goldman Sachs. Please ask your question, Timothy. Sure. Thank you, management, for taking my question. I want to understand more about your updated guidance for this year. Just wondering, could you share a little bit more in terms of the revenue breakdown for the full year guidance for your wholesale IDC, retail IDC, and also the non-IDC business? And you mentioned that you are going to turn down or reduce the exposure to those low-margin business. Could you elaborate more on, like, what exactly are those lower-margin business? I believe that those include the retail business and, like, how much more do you expect to reduce the exposure, I think, in this segment? Thank you. Yeah. Yeah, yeah. Because now, because the wholesale and the AI-driven demand is creates faster. So, we try to move find more resources. For example, in some retail data center, we shut down and we close some business for traditional retail customer, and then move the space and the power supply to the AI AI customer. So, this is the my reason our reduced the revenue guidance. And on the same way, you see the EBITDA is impacts this impact EBITDA is very minor. So I think this is a not the our business is the speed of our business is low down. It's on the other way. This is the signal is the EBITDA margin, and then the EBITDA is more positive than before. Got it. That's helpful. Thank you. Thank you, Timothy. Our next question comes from the line of Deli Li from Bank of America Securities. Please ask your question, Deli. Hi, management. Thanks for taking my question. Here I just have one on the AI space. You mentioned more high power density deployment for your data center. Could you please share the demand trend driven by AI? Do we have any, like, breakdown, how much, you know, demand from AI for the retail or the wholesale business? And, looking into next year, how do we view the AI demand for our data center business? Thank you. Okay. In terms of AI, which is very popular since this year, we have seen actually the rapid growth of AIGC in China. Dozens of large language modeling across different sectors has already been launched since the early this year. While many of them are still being trained, and the generic models are dominated by actually the internet giants, while the verticals are led by the leading players in specific industries and some tech startups as well, aside from the internet giants. Back to the impact on our IDC demands. I would say from a wholesale side, the AI-driven demand from wholesale customers are mainly searched by internet giant customers, especially their short video e-commerce business. Notably, we deliver, as announced, this quarter, around 3,500 cabinets during the quarter to two wholesale customers, all of which actually are high power density cabinets. And in terms of retail sides, we are still receiving increasing AI demands from retail customers across various industries such as local services, healthcare, and VR. And also we are further exploring into the demand from some new economy industries such as Fintech. We are in the dialogue with them. And in terms of high power density cabinets, actually, those cabinets locate from VNET, locate in the Greater Beijing Area, Yangtze River Delta, and also Great Bay Area. In terms of their size, we are obviously see about from up to 40 kW to and over 30 kW for the wholesale and the retail. And so far, we have from all the delivered, we received these quarters, about over 90%, I would say, is coming from a high power density area. Okay, correctly. Thank you, management, for your introductions. Thank you. Thank you. Thank you. We have reached the end of the question and answer session. With that, ladies and gentlemen, that concludes our conference for today. Thank you for participating. You may now disconnect your lines. Have a good day.