Slides
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VNET Group, Inc. Earnings Presentation for 2Q26 August 18, 2026
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This presentation has been prepared by VNET Group, Inc. (the “Company”) solely for informational purposes and has not been independently verified. No representations, warranties or undertakings, express or implied, are made by the Company or any of its affiliates, advisers or representatives as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctness of the information or opinions presented or contained in this presentation. None of the Company nor any of its affiliates, advisers, or representatives accept any responsibility whatsoever (in negligence or otherwise) for any loss howsoever arising from any information presented or contained in this presentation or otherwise arising in connection with the presentation. The information presented or contained in this presentation is subject to change without notice and its accuracy is not guaranteed. Certain statements in this presentation, and other statements that the Company may make, are forward-looking statements. These statements reflect the Company’s intent, beliefs or current expectations about the future. These statements can be recognized by the use of words such as “expects,” “plans,” “will,” “estimates,” “projects,” “intends,” “anticipates,” “believes,” “confident” or words of similar meaning. These forward-looking statements are not guarantees of future performance and are based on a number of assumptions about the Company’s operations and other factors, many of which are beyond the Company’s control, and accordingly, actual results may differ materially from these forward-looking statements. Neither the Company nor any of its affiliates, advisers or representatives have any obligation and they do not undertake to revise forward-looking statements to reflect future events or circumstances. This presentation does not constitute an offer to sell or issue or an invitation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations thereunder. No part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Specifically, these materials do not constitute a “prospectus” within the meaning of the Securities Act. This presentation does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. In evaluating its business, the Company uses certain non-GAAP measures as supplemental measures to review and assess its operating performance. These non-GAAP financial measures have limitations as analytical tools, and when assessing its operating performances, investors should not consider them in isolation, or as a substitute for profit or other consolidated statements of operation data prepared in accordance with U.S. GAAP. Disclaimer 2
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Rotating President of VNET Wen Teng
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2Q26 Earnings Highlights 4 Customer Commitments • Wholesale IDC Business: 345MW of new orders, 862MW of new orders in 2026 YTD • Retail IDC Business: 2MW of new orders, 4MW of new orders in 2026 YTD • Wholesale IDC Business: • *99MW capacity delivered, capacity in service surpassed 1GW to 1,007MW, +49.4% YoY • *57MW capacity utilized , utilized capacity reached 744MW, +45.5% YoY; the utilization rate was 73.9% • Retail IDC Business: MRR per cabinet was RMB9,799; the utilization rate was 64.5% Financial Results • Total Net Revenues were RMB2,779MM, +14.2% YoY • Wholesale IDC Revenues were RMB1,105MM, +29.3% YoY • Adj. EBITDA was RMB918MM, +25.4% YoY; Adj EBITDA margin was 33.0% Recent Development • Strategic Cooperation: Signed a strategic cooperation agreement with CATL to jointly develop a three-layer integrated compute-energy ecosystem • Resource Reserved: Total domestic wholesale resource capacity of 3.5GW+, with an additional ~500MW of secured overseas Source: Company data Operational Results
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Key IDC Customer Order Wins 5 Region IDC Code Capacity Contracted/ under MoU (MW) Signing Time Customer Sector Project Type Greater Beijing Area N-OR Campus 03 345 2Q26 Cloud services Wholesale Greater Beijing Area, Yangtze River Delta, Greater Bay Area, and Other Regions Multiple Retail IDCs 2 2Q26 IT services, local services, financial services, etc. Retail 合计 347 Source: Company data
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Wholesale Data Centers – Orders & Reservations and Delivery Plan 6 Orders 862 MW Reservations 355 MW Total 1,217 MW Delivery Plan of Orders Capacity of Orders & Reservations （MW） Source: Company data
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Wholesale Data Centers - Long-term Contracts Drive Revenue Visibility 7 Source: Company data > 90% Recurring revenues 7 yrs Weighted avg. remaining lease term 3% 2% 1% 9% 3% 18% 14% 1% 10% 40% 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 and thereafter % Distribution of Remaining Terms for Contracted Capacity
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Mature Capacity Mix: 66.7% Ramp-up Capacity Mix: 33.3% Mature Capacity Ramp-up Capacity(2) (3) UR 36.6% UR 92.5% 8 Utilization Rate (1) Wholesale Data Centers at a Glance - Key Growth Driver Total Capacity in Service & Capacity Utilized (MW) Mature & Ramp-up Capacity Contribution & Utilization Rate Source: Company data as of June 30, 2026 Notes: (1) The utilization rate (”UR”) is calculated by dividing utilized capacity by the capacity in service (2) Mature wholesale capacity refers to wholesale data centers in which utilization rate is at or above 80% (3) Ramp-up capacity for wholesale data centers refers to the wholesale data centers with a utilization rate below 80% 674 783 889 907 1,007 511 582 623 687 744 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Capacity in Service Capacity Utilized 75.9% 74.3% 70.1% 75.7% 73.9% 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026
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9 Total Resource Capacity 4GW+ Secured Land Bank ~1.4GW Capacity under Construction 585MW Capacity in Service 1GW+ Pre-commitment Rate(3) 94.2% Commitment Rate(2) 96.3% Wholesale Data Centers – Backlog Growth Source: Company data as of June 30, 2026 (1) Secured Land Bank refers to capacity with secured power quotas, as well as the resources earmarked by local governments specifically for future development. (2) Commitment rate is calculated by total capacity committed divided by total capacity in service (3) Pre-commitment rate is calculated by total capacity pre-committed divided by capacity under construction 908 1,007 516 585 1,056 1,050 908 478 2,480 3,550 478 1Q26 2Q26 2Q26 Overseas Secured Land Bank Held For Future Development Capacity Under Construction Capacity In Service +1.5GW (+62.4%) (MW) (1)
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Source: Company data as of June 30, 2026 Notes: (1) Utilization rate is calculated by dividing utilized capacity by customers by the capacity in service (2) MRR per retail cabinet refers to monthly recurring revenues per cabinet for the retail IDC business (3) Mature capacity for retail data centers refers to the retail data centers that came into service prior to the past 24 months (4) Ramp-up retail capacity refers to retail data centers that came into service within the past 24 months, or mature retail data centers that have undergone improvements within the past 24 months Mature Capacity Mix: 90.0% Ramp-up Capacity Mix: 10.0% Mature Capacity Ramp-up Capacity(4)(3) UR 26.9% UR 68.7% 10 Retail Data Centers at a Glance - Solid Foundation Total Capacity in Service (Cabinet) Utilization Rate (1) Mature & Ramp-up Capacity Contribution & Utilization RateMRR per Retail Cabinet (2) 52,131 52,288 49,863 50,170 50,081 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 8,915 8,948 9,420 9,448 9,799 2Q25 3Q25 4Q25 1Q26 2Q26 63.9% 64.8% 64.0% 64.1% 64.5% 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026
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Resource Pipeline for the Next 12 Months Region IDC Code Tenure 1H26 Capacity (MW) 2H26E Capacity (MW) 1H27E Capacity (MW) Next 12M Total (MW) Yangtze River Delta E-JS Campus 03B Owned 32 12 - 12 Greater Beijing Area N-HB Campus 02 Owned - - 29 29 N-HB Campus 03 Owned 22 - - - N-HB04 Leased - 7 - 7 N-OR Campus 01 Owned 9 - - - N-OR Campus 02A Owned 29 79 - 79 N-OR Campus 02B Owned - 65 - 65 N-OR Campus 03 Owned 25 170 223 393 Total 117 333 252 585 11 Source: Company data as of June 30, 2026
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A leading carrier- and cloud-neutral internet data center services provider in China A global leader in zero-carbon new energy technology Gigawatt-Scale Compute-Energy Facilities Distributed Compute- Energy Networks Zero-Carbon Token Ecosystem Green Power Direct Connection × Green Direct Current Dedicated to becoming a definer and industry leader of digital energy infrastructure in the AI era Have established a strategic partnership to advance compute-energy collaboration 12
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Peter Zhang SVP , Operational Finance of VNET
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RMB MM 2Q25 1Q26 2Q26 YoY QoQ Total net revenues 2,434 2,691 2,779 14.2% 3.3% Gross profit 548 616 505 -7.8% -18.0% Adjusted cash gross profit (1) 1,062 1,211 1,162 9.4% -4.1% Adjusted cash gross margin 43.6% 45.0% 41.8% -1.8 pps. -3.2 pps. Adjusted EBITDA (2) 732 892 918 25.4% 3.0% Adjusted EBITDA margin 30.1% 33.1% 33.0% 3.0 pps. -0.1pps. Adjusted net (loss) income (3) （54） (413) 7 - - 14 Source: Company data as of June 30, 2026 Notes: (1) Adjusted cash gross profit is defined as gross profit excluding depreciation, amortization, and share-based compensation expense (2) Adjusted EBITDA is calculated as operating profit excluding depreciation and amortization, share-based compensation expenses, compensation for postcombination employment in an acquisition, allowance of loan receivables, impairment of long-lived assets, and impairment of goodwill (3) Adjusted net (loss) income is defined as net (loss) income excluding changes in the fair value of financial instruments 2Q26 Financial Highlights
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(RMB MM) 854 956 978 1,064 1,105 959 999 1,038 1,020 1,046 621 627 671 607 628 2,434 2,582 2,687 2,691 2,779 2Q25 3Q25 4Q25 1Q26 2Q26 Wholesale IDC Business Retail IDC Business Non-IDC Business (1) (2)(1) 15 Total Net Revenues YoY Wholesale IDC Revenues YoY +112.5% +47.1% +58.1%+82.7 % +29.3% +22.1% +19.6% +19.8%+21.7% +14.2% Total Net Revenues Breakdown Source: Company data as of June 30, 2026 Notes: (1) IDC business refers to managed hosting services, consisting of the wholesale IDC business and the retail IDC business (2) Non-IDC business consists of cloud services and VPN services
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Healthy Margins through Efficiency Enhancement 16 Adjusted Cash Gross Profit & Margin (1) Adjusted EBITDA & Margin (2) (RMB MM)(RMB MM) Source: Company data as of June 30, 2026 Notes: (1) Adjusted cash gross profit is defined as gross profit excluding depreciation, amortization, and share-based compensation expense (2) Adjusted EBITDA is calculated as operating profit excluding depreciation and amortization, share-based compensation expenses, compensation for postcombination employment in an acquisition, allowance of loan receivables, impairment of long-lived assets, and impairment of goodwill 40.7%43.6% 41.8%42.3% 30.1% 29.4% 30.0% 33.1% 1,062 1,051 1,138 1,211 1,162 2Q25 3Q25 4Q25 1Q26 2Q26 Adjusted Cash Gross Profit 732 758 805 892 918 2Q25 3Q25 4Q25 1Q26 2Q26 Adjusted EBITDA +9.4% YoY -4.1% QoQ +25.4% YoY +3.0% QoQ 45.0% 33.0%
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(2) (2) 17 Strong Liquidity Position Net Operating Cash Flow Cash Position (1) (RMB MM)(RMB MM) Credit line availability: RMB8,497MM unused (2) Source: Company data as of June 30, 2026 Notes: (1) Cash position refers to cash, cash equivalents, restricted cash, and short-term investments (2) Income tax related to capital transactions and other one-off items totaled approximately RMB390 million in 1H26 5,099 2,081 6,202 7,214 357 379 5,456 2,081 6,581 7,214 12/31/2023 12/31/2024 12/31/2025 6/30/2026 Cash，Cash Equivalents and Restricted Cash Short-term Investment 878 673 562 392 1,185 1,333 1,356 390 2,063 2,005 1,919 781 2023 2024 2025 1H26 1H 2H
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Borrowings Mix: 79.3% Convertible Notes Mix: 20.7% 5.6x 3.8x 3.9x 6.2x 6.4x 4.1x 3.0x 3.4x 4.3x 4.6x 2022 2023 2024 2025 2Q26 Total Debt/Adj. LQA EBITDA Net Debt/Adj. LQA EBITDA 18 Well Laddered Debt Profile Total Debt & Net Debt / Adj. LQA EBITDA (1) Debt Breakdown by Maturity (RMB MM) Debt StructureAdj. LQA EBITDA Interest Coverage (2) Source: Company data as of June 30, 2026 Notes: (1) Total Debt = Short-term and long-term borrowings + Convertible notes; Net Debt = Total debt – Cash and cash equivalents – Short-term investments; Adjusted LQA (Last Quarter Annualized) EBITDA is calculated as the annualized value of the Adjusted EBITDA for 2Q26, after deducting the finance lease expense of RMB 27 million for 2Q26 and adding back the allowance for doubtful debt for 2Q26 (2) Adj. LQA EBITDA Interest Coverage = Adj. LQA EBITDA / LQA Net Interest Expense (interest expense after excluding the finance lease expense - interest income) Total Debt: RMB23.42BN 2,326 3,135 2,135 1,496 9,7771,962 2,875 2,326 5,096 2,135 1,496 12,652 2026 2027 2028 2029 2030 and thereafter Borrowings Convertible Notes 12.4x 11.4x 16.5x 5.1x 5.6x 2022 2023 2024 2025 2Q26
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3,352 3,578 4,982 8,240 3,546 2022 2023 2024 2025 1H26 19 Capex Paid by Year Capital Expenditure (1) (RMB MM) Highlights ◼ The majority of the RMB3.55 billion in capex for the 1H26 was allocated to the expansion of our wholesale IDC business. ◼ Driven by the robust growth of our wholesale business, we plan to deliver 450 - 500MW in 2026. Accordingly, we expect our FY2026 capex to be in the range of RMB10.0 billion - 12.0 billion. Source: Company data as of June 30, 2026 Notes: (1) Capital expenditure refers to the overall outflow of funds for acquiring property and equipment, intangible assets, land use rights, engaging in mergers and acquisitions as well as long-term investments FY2026 Guidance: 10,000 – 12,000
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RMB MM FY2025 Actual FY2026 Guidance Implied YoY Total Net Revenues 9,949 11,500 - 11,800 15.6% - 18.6% Adjusted EBITDA (1) 2,978 3,550 - 3,750 19.2% - 25.9% Capex 8,240 10,000 - 12,000 21.4% - 45.6% Delivery Plan (MW) 404 450 - 500 11.4% - 23.8% 20 Guidance Source: Company data Notes: (1) Adjusted EBITDA is calculated as operating profit excluding depreciation and amortization, share-based compensation expenses, compensation for postcombination employment in an acquisition, allowance of loan receivables, impairment of long-lived assets, and impairment of goodwill
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ESG Initiatives – Commitment to Sustainability Commitment to achieve both targets of operational carbon neutrality in Scope 1 and Scope 2 emissions, and 100% renewable energy usage by 2030 Source: Company data and public information Scored 73, and ranked top 7% of the IT services industry globally in the 2025 S&P Corporate Sustainability Assessment. Earning inclusion in the S&P Global Sustainability Yearbook for two consecutive years. Ranked first among Chinese enterprises in the IT services industry in the S&P Global Sustainability Yearbook (China) for the four consecutive years, winning the "Top 1%" award The average annual power usage effectiveness (PUE) of data centers with stabilized operations in 2025 was 1.24 Achieved B rating from CDP’s 2025 climate change questionnaire, with 9 out of 16 categories achieving A-grade recognition. Also received A rating, which is the highest rating in CDP’s Supplier Engagement Assessment, and has been recognized as a "Supplier Engagement Leader" 21 The total energy from renewable sources was about 1,253,719 MWh, and the percentage of renewable energy reached approximately 36% in 2025
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Appendix
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N-OR Campus 03 660MW+ IT Capacity 393MW Capacity under Construction 100% Pre-commitment Rate ~10 Base Year Term 202509 202604 202512 202607 Source: Company data as of June 30, 2026 23
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Differentiated Business Model with Comprehensive Offerings ✓ Multi-carrier & multi-cloud connectivity ✓ High-performing facility & network ✓ Turn-key solutions tailored to customer needs ✓ Long track record of outstanding operation performance • Co-location • Interconnectivity • Hybrid IT Services • Other Value-added Services • Customized, High-power Density Solutions ✓ Long-term strategic partnership with Microsoft in mainland China for public and hybrid cloud services ✓ IaaS, PaaS, and SaaS to enterprise and individual end customers ✓ Best-in-class, enterprise-grade network services ✓ 220+ POPs (2) across the world ✓ Customized VPN solutions for enterprise customers across various verticals Managed Hosting Services (IDC) Cloud Services VPN Services (1) • Multi-Protocol Label Switching (MPLS) & Software-Defined Wide Area Network (SD-WAN) Solutions • Internet Access & Network Security Solutions • Cloud & SaaS Solutions Services Strengths Broad-based and high quality solution suite to meet customers’ mission critical needs Source: Company information Notes: (1) VPN refers to virtual private network (2) POP refers to point of presence as of June 30, 2026 24
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Dual-Core Growth Strategy of IDC Business Wholesale Targeting hyperscalers which require huge amount of space and power to support massive scaling needs Hyperscale IDC Interconnectivity Services Retail Retail Colocation Full-Stack Services ◼ Around 90% of total net revenues have been recurring revenues since IPO ◼ Maintain high level of customer diversification with top 20 customers contributing 59.4% of total revenues in 2Q26 ◼ Low churn rate for core IDC business, constantlybelow 1% demonstrating our high customer retention ◼ >7,000 enterprise customers, of which ~1,500 customers are using our managed hosting services Covering large and loyalty customer base across verticals including: financial services, IT service, enterprise digitalization, mobility, virtual reality and local service Source: Company data 25
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Wholesale Capacity in Service (1,007MW) Data Centers by Region Region % Greater Beijing Area 65.9% Yangtze River Delta 34.1% Total 100.0% Region % Greater Beijing Area 53.9% Yangtze River Delta 20.1% Greater Bay Area 15.4% Other Regions 10.6% Total 100.0% Retail Capacity in Service (50,081R) Region % Greater Beijing Area 97.9% Yangtze River Delta 2.1% Total 100.0% Wholesale Capacity under Construction (585MW) Region % Greater Beijing Area 96.5% Yangtze River Delta 3.5% Total 100.0% Wholesale Capacity Held for Future Development (1,050MW) Beijing-Tianjin-Hebei Yangtze River Delta Greater Bay Area Ulanqab Greater Beijing Area 26Source: Company data as of June 30, 2026
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Wholesale Capacity in Service – Yangtze River Delta Source: Company data as of June 30, 2026 Notes: (1) Total capacity committed is the capacity committed to customers pursuant to customer agreements remaining in effect (2) Utilization rate is calculated by dividing utilized capacity by customers by the capacity in service (3) Commitment rate is calculated by total capacity committed divided by total capacity in service 27 Region IDC Code Tenure Capacity in Service (MW) Capacity Utilized (MW) Total Capacity Committed (1) (MW) Utilization Rate (2) Commitment Rate (3) Yangtze River Delta E-JS Campus 01 Phase 1 Owned 28 27 28 94.4% 100.0% E-JS Campus 01 Phase 2 Owned 16 13 16 81.9% 100.0% E-JS Campus 02A Owned 25 24 25 95.8% 100.0% E-JS Campus 02B Owned 24 24 24 100.0% 100.0% E-JS Campus 02C Owned 26 26 26 98.1% 100.0% E-JS Campus 02D Owned 26 26 26 99.9% 100.0% E-JS Campus 02E Owned 64 55 64 84.6% 100.0% E-JS Campus 03A Owned 32 29 32 91.6% 100.0% E-JS Campus 03B Owned 32 6 32 17.7% 100.0% E-JS02A Leased 13 12 13 96.8% 100.0% E-JS02B Leased 13 13 13 97.3% 100.0% E-JS02C Leased 13 12 13 95.0% 100.0% E-JS03 Leased 15 14 15 97.7% 100.0% E-JS04 Leased 15 1 15 4.2% 100.0% Subtotal 343 282 343 82.2% 100.0%
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Region IDC Code Tenure Capacity in Service (MW) Capacity Utilized (MW) Total Capacity Committed (1) (MW) Utilization Rate (2) Commitment Rate (3) Greater Beijing Area BJ15 Owned 9 0 0 0.0% 0.0% N-HB02 Phase 1 Owned 28 27 28 96.9% 100.0% N-HB Campus 01A Owned 35 7 7 20.6% 20.6% N-HB Campus 01B Owned 36 32 36 88.7% 100.0% N-HB Campus 03 Owned 51 37 51 73.4% 100.0% N-OR Campus 01 Owned 161 139 161 86.8% 100.0% N-OR Campus 02A Owned 146 61 146 41.5% 100.0% N-OR Campus 03 Owned 25 0 25 0% 100.0% N-HB02 Phase 2 Leased 19 18 19 97.3% 100.0% N-HB03 Leased 12 10 12 89.3% 100.0% N-HB04 Leased 14 8 14 57.0% 100.0% N-OR02 Leased 29 28 29 96.9% 100.0% N-OR04 Leased 14 14 14 95.9% 100.0% N-OR05 Leased 16 15 16 93.4% 100.0% N-OR06 Leased 32 31 32 95.8% 100.0% N-OR07A Leased 19 17 19 93.6% 100.0% N-OR08A Leased 19 17 19 92.4% 100.0% Subtotal 664 462 627 69.6% 94.4% Total 1,007 744 970 73.9% 96.3% 28 Source: Company data as of June 30, 2026 Notes: (1) Total capacity committed is the capacity committed to customers pursuant to customer agreements remaining in effect (2) Utilization rate is calculated by dividing utilized capacity by customers by the capacity in service (3) Commitment rate is calculated by total capacity committed divided by total capacity in service Wholesale Capacity in Service – Greater Beijing Area
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(1) (2) Region IDC Code Tenure Capacity under Construction (MW) Total Capacity Pre-committed (1) (MW) Pre-commitment rate (2) Ready for Service Yangtze River Delta E-JS Campus 03B Owned 12 12 100.0% 2H26 Greater Beijing Area N-HB Campus 02 Owned 29 0 0.0% 1H27 N-HB04 Leased 7 7 100.0% 2H26 N-OR Campus 02A Owned 79 74 94.1% 2H26 N-OR Campus 02B Owned 65 65 100.0% 2H26 N-OR Campus 03 Owned 393 393 100.0% 2H26/1H27 Total 585 551 94.2% Region Capacity Held for Future (MW) Greater Beijing Area 1,013 Yangtze River Delta 37 Total 1,050 29 Under Construction Held for Future Development Wholesale Capacity Under Construction & Held for Future Development Source: Company data Notes: (1) Total capacity pre-committed is the capacity under construction that is pre-committed to customers pursuant to customer agreements remaining in effect (2) Pre-commitment rate is calculated by total capacity pre-committed divided by capacity under construction
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Amount in thousands Three months ended June 30, 2025 March 31, 2026 June 30, 2026 RMB RMB RMB US$ Net revenues 2,434,205 2,691,136 2,778,738 409,535 Cost of revenues (1,886,470) (2,075,269) (2,273,558) (335,081) Gross profit 547,735 615,867 505,180 74,454 Sales and marketing expenses (69,963) (53,682) (58,751) (8,659) Research and development expenses (67,570) (74,423) (75,162) (11,078) General and administrative expenses (212,473) (162,380) (164,947) (24,310) Operating profit 173,018 246,929 229,250 33,786 Net Interest expense (140,639) (210,652) (187,883) (27,691) Others, net (265) (1,615) 4,960 731 Changes in the fair value of financial instruments 70,404 (32,095) (47,130) (6,946) Foreign exchange gain 9,258 36,083 38,104 5,616 Income before income taxes and gain (loss) from equity method investments 111,776 38,650 37,301 5,496 Income tax expenses (95,048) (486,161) (57,843) (8,525) Gain (loss) from equity method investments 41 2,611 (19,205) (2,830) Net income (loss) 16,769 (444,900) (39,747) (5,859) Key P&L Items Source: Company data 30
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Amount in thousands Three months ended June 30, 2025 March 31, 2026 June 30, 2026 RMB RMB RMB US$ Gross profit 547,735 615,867 505,180 74,454 Plus: depreciation and amortization 513,891 595,092 656,509 96,757 Plus: share-based compensation expenses 196 297 201 30 Adjusted cash gross profit 1,061,822 1,211,256 1,161,890 171,241 Adjusted cash gross margin 43.6% 45.0% 41.8% 41.8% Operating profit 173,018 246,929 229,250 33,786 Plus: depreciation and amortization 550,087 637,551 683,995 100,808 Plus: share-based compensation expenses 9,359 7,054 5,084 750 Adjusted EBITDA 732,464 891,534 918,329 135,344 Adjusted EBITDA margin 30.1% 33.1% 33.0% 33.0% Net income (loss) 16,769 (444,900) (39,747) (5,859) Plus: Changes in the fair value of financial instruments (70,404) 32,095 47,130 6,946 Adjusted net (loss) income (53,635) (412,805) 7,383 1,087 GAAP to Non-GAAP Reconciliations 31 Source: Company data
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Amount in thousands As of As of December 31, 2025 June 30, 2026 RMB RMB US$ Cash, cash equivalents and restricted cash 6,201,685 7,214,433 1,063,276 Short-term investments 379,198 - - Accounts and notes receivable, net 2,222,106 2,640,321 389,135 Property and equipment, net 22,775,579 25,463,639 3,752,876 Intangible assets and other long-term assets, net 2,872,475 3,167,199 466,788 Operating lease right-of-use assets, net 4,871,341 5,159,484 760,414 Total assets 44,594,162 49,512,340 7,297,217 Accounts and notes payable 741,878 749,950 110,529 Borrowings 14,811,379 18,582,996 2,738,795 Finance lease liabilities 2,001,708 1,924,747 283,673 Operating lease liabilities 4,963,322 5,284,201 778,795 Convertible notes 5,138,664 4,836,250 712,775 Total liabilities 36,029,690 39,491,978 5,820,399 Total mezzanine equity 1,711,591 5,227,481 770,435 Total VNET Group, Inc. shareholders' equity 6,218,444 4,075,481 600,651 Noncontrolling interest 634,437 717,400 105,732 Total shareholders' equity 6,852,881 4,792,881 706,383 Total liabilities, mezzanine equity and shareholders' equity 44,594,162 49,512,340 7,297,217 32 Key Balance Sheet Items Source: Company data
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Amount in thousands Three months ended June 30, 2025 March 31, 2026 June 30, 2026 RMB RMB RMB US$ Net cash generated from operating activities 366,596 173,676 218,076 32,140 Net cash used in investing activities (3,282,065) (2,218,780) (971,941) (143,246) Net cash generated from (used in) financing activities 582,658 3,947,807 (86,935) (12,813) Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash (14,764) (24,360) (24,795) (3,654) Net (decrease) increase in cash, cash equivalents and restricted cash (2,347,575) 1,878,343 (865,595) (127,573) Cash, cash equivalents and restricted cash at beginning of period 5,767,658 6,201,685 8,080,028 1,190,849 Cash, cash equivalents and restricted cash at end of period 3,420,083 8,080,028 7,214,433 1,063,276 Key Cash Flow Items 33 Source: Company data
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Definitions Term Definition IDC Business IDC business refers to managed hosting services, consisting of the wholesale IDC business and the retail IDC business. Beginning in the first quarter of 2024, our IDC business was subdivided into wholesale IDC business and retail IDC business according to the nature and scale of our data center projects. Prior to 2024, the subdivision was based on customer contract types Non-IDC Business Non-IDC business consists of cloud services and VPN services VPN Services Virtual private network provided by VNET, including Multiprotocol Label Switching (“MPLS”), software-defined wide area network (“SD-WAN”), internet access and network security solutions, and fully managed network enabling connectivity to enterprises across various industries Cloud Services Microsoft’s cloud services, including Azure, Microsoft 365, Dynamics 365 and Power Platform, operated by VNET as strategic partner to customers in mainland China Capacity in Service Data centers which are ready for service Capacity under Construction Data centers which are actively under construction and have not yet reached the stage of being ready for service Capacity Held for Future Development Refers to the secured IDC resources that have been reserved for future development purposes and are not currently active for construction Secured Land Bank Refers to capacity with secured power quotas, as well as the resources earmarked by local governments specifically for future development Mature Capacity for Wholesale Data Centers Refers to wholesale data centers in which utilization rate is at or above 80% Ramp-up Capacity for Wholesale Data Centers Refers to wholesale data centers in which utilization rate is below 80% Mature Capacity for Retail Data Centers Refers to retail data centers that came into service prior to the past 24 months Ramp-up Capacity for Retail Data Centers Refers to retail data centers that came into service within the past 24 months, or mature retail data centers that have undergone improvements within the past 24 months Utilized Capacity Capacity in service that is committed to customers and revenue generating pursuant to the terms of customer agreements remaining in effect Utilization Rate The utilization rate (“UR”) is calculated by dividing utilized capacity by customers by the capacity in service Total Capacity Committed Total capacity committed is the capacity committed to customers pursuant to customer agreements remaining in effect Total Capacity Pre-committed Total capacity pre-committed is the capacity under construction which is pre-committed to customers pursuant to customer agreements remaining in effect Commitment Rate Commitment rate is calculated by total capacity committed divided by total capacity in service Pre-commitment Rate Pre-commitment rate is calculated by total capacity pre-committed divided by capacity under construction MRR per Retail Cabinet MRR per retail cabinet refers to monthly recurring revenues per cabinet for the retail IDC business MW Megawatt BTH Beijing-Tianjin-Hebei Region PUE Power usage effectiveness, a ratio of the total power usage of a data center to the power usage of the IT equipment inside a data center 34
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