VNET (VNET) grows Q1 revenue and EBITDA as CATL-backed investors plan 38% stake

Rhea-AI Filing Summary

VNET Group, Inc. reported solid first-quarter 2026 growth while remaining loss-making. Total net revenues rose 19.8% year-over-year to RMB2.69 billion, driven by a 58.1% surge in wholesale IDC revenues to RMB1.06 billion, while retail IDC revenues grew 5.4% to RMB1.02 billion.

Adjusted EBITDA increased 30.6% to RMB891.5 million, lifting the adjusted EBITDA margin to 33.1%. Wholesale capacity in service reached 907MW with a 75.7% utilization rate and total committed capacity of 869MW, showing strong demand, particularly in the Greater Beijing Area.

Despite better operating metrics, net loss attributable to VNET widened to RMB531.8 million, mainly due to RMB486.2 million of capital transactions-related income tax expenses and significant accretion on redeemable non-controlling interests. Liquidity remained sizable with RMB8.80 billion in cash, restricted cash and short-term investments.

Strategically, new CATL-affiliated investors agreed to acquire up to 650,424,192 Class A shares at US$1.4486 per share, potentially holding about 38.1% of outstanding shares after an expected fourth-quarter 2026 closing, subject to shareholder and other conditions.

Positive

• Strong growth and margin expansion: Q1 2026 net revenues rose 19.8% to RMB2.69 billion, wholesale IDC revenues grew 58.1%, and adjusted EBITDA increased 30.6% to RMB891.5 million, lifting the adjusted EBITDA margin to 33.1%.
• Strategic CATL-linked investment: New CATL-affiliated investors agreed to buy up to 650,424,192 Class A shares at US$1.4486 per share and could own about 38.1% of total shares after closing, potentially strengthening strategic and financial support.

Negative

• Widened net loss: Net loss attributable to VNET expanded to RMB531.8 million in Q1 2026 from a smaller loss a year earlier, mainly due to RMB486.2 million of capital transactions-related income tax expenses.
• High leverage and rising mezzanine equity: Short-term debt totaled RMB5.18 billion and long-term debt RMB17.77 billion, while redeemable non-controlling interests increased to RMB5.14 billion, indicating a leveraged and complex capital structure.

Insights

Equity research analyst

Strong wholesale and EBITDA growth offset by larger losses and leverage.

VNET delivered robust top-line expansion in Q1 2026, with total net revenues up 19.8% to RMB2.69 billion and wholesale IDC revenues up 58.1%. Adjusted EBITDA rose 30.6% to RMB891.5 million, improving the adjusted EBITDA margin to 33.1%, indicating better operating efficiency in a capital-intensive business.

However, the company posted a net loss attributable to VNET of RMB531.8 million, significantly worse than a year earlier, largely due to RMB486.2 million of capital transactions-related income tax expenses and higher accretion on redeemable non-controlling interests. Total short-term debt was RMB5.18 billion and long-term debt RMB17.77 billion, underscoring a heavy debt load.

The proposed investment by CATL-affiliated buyers, who agreed to purchase up to 650,424,192 Class A shares at US$1.4486 per share and could reach about 38.1% ownership after an expected Q4 2026 closing, may reshape the shareholder base and governance. Future filings detailing the closing status and any governance changes in 2026 will help clarify long-term implications.

Key Figures

Total net revenues: RMB2.69 billion Wholesale IDC revenues: RMB1.06 billion Adjusted EBITDA: RMB891.5 million +5 more

8 metrics

Total net revenues RMB2.69 billion Q1 2026; up 19.8% year-over-year

Wholesale IDC revenues RMB1.06 billion Q1 2026; up 58.1% year-over-year

Adjusted EBITDA RMB891.5 million Q1 2026; up 30.6% year-over-year

Net loss attributable to VNET RMB531.8 million Q1 2026; impacted by RMB486.2 million tax expenses

Cash, restricted cash and short-term investments RMB8.80 billion As of March 31, 2026

Short-term debt RMB5.18 billion As of March 31, 2026

Long-term debt RMB17.77 billion As of March 31, 2026

2026 revenue guidance RMB11.5–11.8 billion Full-year 2026; 15.6–18.6% YoY growth

Key Terms

adjusted EBITDA, Hyperscale 2.0 framework, redeemable non-controlling interests, mezzanine equity, +2 more

6 terms

adjusted EBITDA financial

"adjusted EBITDA (non-GAAP), which exclude depreciation and amortization, and share-based compensation expenses from operating profit, was RMB891.5 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Hyperscale 2.0 framework technical

"through effective execution of our dual-core strategy and Hyperscale 2.0 framework"

redeemable non-controlling interests financial

"Redeemable non-controlling interests 1,711,591 ... 5,135,112"

Redeemable non-controlling interests are ownership stakes in a company’s unit held by outside investors that can be forced to be bought back by the parent company for cash or a set value. Think of it like a part-owner who has the contractual right to ‘cash out’ their share; for investors this matters because it can create a future cash obligation, change reported equity versus debt, and affect earnings and ownership percentages.

mezzanine equity financial

"Mezzanine equity: Redeemable non-controlling interests"

Mezzanine equity is a layer of financing that sits between bank loans and full ownership, combining elements of borrowed money and equity. It often gives lenders higher potential returns in exchange for taking more risk, sometimes with the option to convert into ownership or receive extra payments; think of it as a middle seat that pays more because it’s less secure than front-row debt. Investors watch it because it affects a company’s debt risk, potential dilution of ownership, and expected returns.

American depositary share financial

"which represents the equivalent of RMB8.16 (US$1.20) per American depositary share (“ADS”). Each ADS represents six Class A ordinary shares."

An American Depositary Share (ADS) is a U.S.-listed certificate that represents a specified number of shares in a foreign company, held by a custodian bank; it works like a receipt that allows U.S. investors to buy and trade foreign equity on American exchanges without dealing with another country’s markets. Investors care because ADSs make foreign stocks easier to access, improve liquidity and settlement in dollars, and can affect dividend payments, voting rights and regulatory oversight compared with buying the underlying foreign shares directly.

Investor Rights Agreement regulatory

"the Buyers have entered into an Investor Rights Agreement with the company"

A legally binding contract between a company and its investors that spells out investors’ core protections and privileges—such as voting rights, how and when shares can be sold, information access, and steps for resolving disputes. Think of it like a rulebook or homeowner association agreement for ownership: it clarifies who gets a say, how value can be realized, and what protections exist if things go wrong, making investment risks and expectations clearer for shareholders.

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Form 6-K: How Foreign Companies Report to the SEC →

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the Month of May 2026

Commission File Number: 001-35126

VNET Group, Inc.

Guanjie Building, Southeast 1st Floor

10# Jiuxianqiao East Road

Chaoyang District

Beijing 100016

The People’s Republic of China

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x   Form 40-F o

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	VNET Group, Inc.
	By:	/s/ Peter Zhihua Zhang
	Name:	Peter Zhihua Zhang
	Title:	Senior Vice President of Operational Finance
Date: May 26, 2026

EXHIBIT INDEX

Exhibit		Description
99.1		Press release tilted “VNET Reports Unaudited First Quarter 2026 Financial Results”

Exhibit 99.1

 

VNET Reports Unaudited First Quarter 2026 Financial Results

BEIJING, May 26, 2026 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET) (“VNET” or the “Company”), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2026.

“We delivered a strong first quarter through effective execution of our dual-core strategy and Hyperscale 2.0 framework,” said Josh Sheng Chen, Founder, Executive Chairperson and Interim Chief Executive Officer of VNET. “Our wholesale IDC business continued to thrive, securing a total of 517MW of new orders year-to-date 2026, including 510MW from a leading internet customer for our data centers in the Greater Beijing Area. As a pioneer in AIDC, we also advanced the development of high-performance, large-scale, green data center clusters, a segment where surging demand is increasingly constrained by limited resource availability. Moreover, we further strengthened our shareholder base by welcoming the affiliates of Contemporary Amperex Technology Co., Limited (“CATL”) as strategic investors. At the same time, we would like to thank Shandong Hi-Speed Holdings Group Limited for their continued trust and support over the years. Looking ahead, our strategic alignment with CATL will unlock meaningful synergies across technology and supply chain, accelerating the development of next-generation AIDC. Going forward, our deep resource reserves in core regions, combined with rapid delivery capabilities and operational excellence, position us well to capture growing demand and reinforce our industry leadership.”

Peter Zhihua Zhang, Senior Vice President, Operational Finance of VNET, commented, “We sustained our high-quality development trajectory in the first quarter of 2026. Total net revenues increased by 19.8% year-over-year to RMB2.69 billion, driven by 58.1% year-over-year growth in wholesale revenues, while adjusted EBITDA increased by 30.6% year-over-year to RMB891.5 million. This quarter marks a new milestone for us, as wholesale revenues surpassed retail revenues for the first time. Additionally, we further advanced our asset monetization strategy with the successful listing of two REIT projects in March, establishing a scalable capital recycling model that supports efficient reinvestment into new project development and deepens our competitive positioning in this capital-intensive industry. Looking ahead, we remain focused on strengthening our core capabilities to capitalize on AI-driven opportunities, delivering sustainable growth and long-term value for all stakeholders.”

First Quarter 2026 Financial Highlights

· Total net revenues increased by 19.8% to RMB2.69 billion (US$390.1 million) from RMB2.25 billion in the same period of 2025.

· Net revenues from the IDC business¹ increased by 27.0% to RMB2.08 billion (US$302.2 million) from RMB1.64 billion in the same period of 2025.

	·	Net revenues from the wholesale IDC business (“wholesale revenues”) increased by 58.1% to RMB1.06 billion (US$154.3 million) from RMB673.2 million in the same period of 2025.
	·	Net revenues from the retail IDC business (“retail revenues”) increased by 5.4% to RMB1.02 billion (US$147.9 million) compared with RMB968.3 million in the same period of 2025.

· Net revenues from the non-IDC business² increased by 0.3% to RMB606.6 million (US$87.9 million) from RMB604.8 million in the same period of 2025.

· Adjusted cash gross profit (non-GAAP) increased by 25.1% to RMB1.21 billion (US$175.6 million) from RMB967.8 million in the same period of 2025. Adjusted cash gross margin (non-GAAP) was 45.0%, compared with 43.1% in the same period of 2025.

¹ IDC business refers to managed hosting services, which consists of wholesale IDC business and retail IDC business. Such categorization is based on the nature and scale of our data center projects.

² Non-IDC business consists of cloud services and VPN services.

1 

 

· Adjusted EBITDA (non-GAAP) increased by 30.6% to RMB891.5 million (US$129.2 million) from RMB682.4 million in the same period of 2025. Adjusted EBITDA margin (non-GAAP) was 33.1%, compared with 30.4% in the same period of 2025.

First Quarter 2026 Operational Highlights

Wholesale IDC Business

	·	Capacity in service was 907MW as of March 31, 2026, compared with 889MW as of December 31, 2025, and 573MW as of March 31, 2025. Capacity under construction was 516MW as of March 31, 2026.
	·	Capacity utilized by customers reached 687MW as of March 31, 2026, compared with 623MW as of December 31, 2025, and 437MW as of March 31, 2025. The sequential increase of 64MW was mainly contributed by the N-OR Campus 02A and N-HB Campus 03 data centers.
	·	Utilization rate3 of wholesale capacity was 75.7% as of March 31, 2026, compared with 70.1% as of December 31, 2025, and 76.2% as of March 31, 2025.

	·	Utilization rate of mature wholesale capacity4 was 93.8% as of March 31, 2026, compared with 93.1% as of December 31, 2025, and 94.5% as of March 31, 2025.
	·	Utilization rate of ramp-up wholesale capacity5 was 45.0% as of March 31, 2026, compared with 31.7% as of December 31, 2025, and 32.1% as of March 31, 2025.

	·	Total capacity committed6 was 869MW as of March 31, 2026, compared with 848MW as of December 31, 2025, and 571MW as of March 31, 2025.
	·	Commitment rate7 for capacity in service was 95.7% as of March 31, 2026, compared with 95.3% as of December 31, 2025, and 99.7% as of March 31, 2025.

Retail IDC Business⁸

	·	Capacity in service was 50,170 cabinets as of March 31, 2026, compared with 49,863 cabinets as of December 31, 2025, and 51,960 cabinets as of March 31, 2025.
	·	Capacity utilized by customers was 32,165 cabinets as of March 31, 2026, compared with 31,906 cabinets as of December 31, 2025, and 33,093 cabinets as of March 31, 2025.
	·	Utilization rate of retail capacity was 64.1% as of March 31, 2026, compared with 64.0% as of December 31, 2025, and 63.7% as of March 31, 2025.

	·	Utilization rate of mature retail capacity9 was 68.5% as of March 31, 2026, compared with 68.5% as of December 31, 2025, and 69.1% as of March 31, 2025.
	·	Utilization rate of ramp-up retail capacity10 was 24.2% as of March 31, 2026, compared with 23.9% as of December 31, 2025, and 21.5% as of March 31, 2025.

· Monthly recurring revenue (MRR) per retail cabinet was RMB9,448 in the first quarter of 2026, compared with RMB9,420 in the fourth quarter of 2025 and RMB8,898 in the first quarter of 2025.

³ Utilization rate is calculated by dividing capacity utilized by customers by capacity in service.

⁴ Mature wholesale capacity refers to wholesale data centers with utilization rate at or above 80%.

⁵ Ramp-up wholesale capacity refers to wholesale data centers with utilization rate below 80%.

⁶ Total capacity committed represents capacity committed to customers under effective agreements.

⁷ Commitment rate is calculated by dividing total capacity committed by total capacity in service.

⁸ For the retail IDC business, since the first quarter of 2024, we have excluded a certain number of reserved cabinets from the capacity in service. Reserved cabinets include those with limited utilization, those scheduled for closure, or those planned for upgrades. As of March 31, 2025, December 31, 2025, and March 31, 2026, 3,766, 3,791 and 4,097 reserved cabinets, respectively, were excluded from retail IDC utilization rate calculations.

⁹ Mature retail capacity refers to retail data centers that came into service over 24 months ago.

¹⁰ Ramp-up retail capacity refers to retail data centers that entered service within the past 24 months, or mature retail data centers that underwent improvements within the past 24 months.

2 

 

First Quarter 2026 Financial Results

TOTAL NET REVENUES: Total net revenues in the first quarter of 2026 were RMB2.69 billion (US$390.1 million), representing an increase of 19.8% from RMB2.25 billion in the same period of 2025. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business.

Net revenues from IDC business increased by 27.0% to RMB2.08 billion (US$302.2 million) from RMB1.64 billion in the same period of 2025. The year-over-year increase was mainly driven by an increase in wholesale revenues.

	·	Wholesale revenues increased by 58.1% to RMB1.06 billion (US$154.3 million) from RMB673.2 million in the same period of 2025.
	·	Retail revenues increased by 5.4% to RMB1.02 billion (US$147.9 million) from RMB968.3 million in the same period of 2025.

Net revenues from non-IDC business increased by 0.3% to RMB606.6 million (US$87.9 million) from RMB604.8 million in the same period of 2025.

GROSS PROFIT: Gross profit in the first quarter of 2026 was RMB615.9 million (US$89.3 million), representing an increase of 8.9% from RMB565.3 million in the same period of 2025. Gross margin in the first quarter of 2026 was 22.9%, compared with 25.2% in the same period of 2025.

ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation and amortization and share-based compensation expenses from gross profit, increased by 25.1% to RMB1.21 billion (US$175.6 million) in the first quarter of 2026 from RMB967.8 million in the same period of 2025. Adjusted cash gross margin (non-GAAP) in the first quarter of 2026 was 45.0%, compared with 43.1% in the same period of 2025.

OPERATING EXPENSES: Total operating expenses in the first quarter of 2026 were RMB368.9 million (US$53.5 million), compared with RMB316.8 million in the same period of 2025.

Sales and marketing expenses were RMB53.7 million (US$7.8 million) in the first quarter of 2026, compared with RMB64.3 million in the same period of 2025.

Research and development expenses were RMB74.4 million (US$10.8 million) in the first quarter of 2026, compared with RMB43.6 million in the same period of 2025.

General and administrative expenses were RMB162.4 million (US$23.5 million) in the first quarter of 2026, compared with RMB179.8 million in the same period of 2025.

ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses from operating expenses, were RMB362.2 million (US$52.5 million) in the first quarter of 2026, compared with RMB310.5 million in the same period of 2025. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the first quarter of 2026 were 13.5%, compared with 13.8% in the same period of 2025.

ADJUSTED EBITDA (non-GAAP), which exclude depreciation and amortization, and share-based compensation expenses from operating profit, was RMB891.5 million (US$129.2 million) in the first quarter of 2026, representing an increase of 30.6% from RMB682.4 million in the same period of 2025. Adjusted EBITDA margin (non-GAAP) in the first quarter of 2026 was 33.1%, compared with 30.4% in the same period of 2025.

NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the first quarter of 2026 was RMB531.8 million (US$77.1 million), compared with RMB237.6 million in the same period of 2025, primarily attributable to RMB486.2 million capital transactions-related income tax expenses incurred in the first quarter of 2026.

LOSS PER SHARE: Basic and diluted loss per share in the first quarter of 2026 were both RMB1.36 (US$0.20), which represents the equivalent of RMB8.16 (US$1.20) per American depositary share (“ADS”). Each ADS represents six Class A ordinary shares. Diluted earnings/loss per share is calculated using adjusted net profit/loss attributable to ordinary shareholders divided by the weighted average number of diluted shares outstanding.

3 

 

LIQUIDITY: As of March 31, 2026, the aggregate amount of the Company’s cash and cash equivalents, restricted cash and short-term investments was RMB8.80 billion (US$1.28 billion).

Total short-term debt, consisting of short-term bank borrowings and the current portion of long-term borrowings, was RMB5.18 billion (US$750.4 million). Total long-term debt was RMB17.77 billion (US$2.58 billion), comprised of long-term borrowings of RMB12.93 billion (US$1.87 billion) and convertible notes of RMB4.83 billion (US$700.8 million).

Net cash generated from operating activities in the first quarter of 2026 was RMB173.7 million (US$25.2 million), compared with RMB195.7 million in the same period of 2025. During the first quarter of 2026, the Company obtained new debt financing, refinancing facilities, equity financing and other financings of RMB8.14 billion (US$1.78 billion).

Recent Developments

On May 13, 2026, the Company announced that certain new strategic investors that are non-controlled and non-consolidated affiliates of Contemporary Amperex Technology Co., Limited (CATL) (the “Buyers”) entered into a share purchase agreement with wholly owned subsidiaries of Shandong Hi-Speed Holdings Group Limited (the “Sellers”). Pursuant to the share purchase agreement, the Buyers have agreed to acquire up to 650,424,192 Class A ordinary shares of the Company from the Sellers at a purchase price of US$1.4486 per ordinary share (equivalent to US$8.6914 per ADS) (the “Proposed Investment”). The closing of the transaction is expected to take place in the fourth quarter of 2026, and is subject to conditions set forth in the share purchase agreement, including approval by the shareholders of Shandong Hi-Speed Holdings Group Limited. Upon closing, the Buyers will hold up to approximately 38.1% of the Company’s total issued and outstanding shares. Additionally, the Buyers have entered into an Investor Rights Agreement with the company and a voting and consortium agreement with Mr. Josh Sheng Chen, Founder, Executive Chairperson and Interim Chief Executive Officer of VNET, and certain of his affiliated investment vehicles (collectively, the “Founder Parties”), both of which will become effective upon closing of the Proposed Investment. Meanwhile, pursuant to the Investor Rights Agreement, the Company will grant the Buyers certain investor rights and the Buyers will be restricted from transferring or otherwise disposing of certain Class A ordinary shares of the Company acquired in the Proposed Investment for a specified period, subject to terms and conditions of the Investor Rights Agreement. In addition, the Buyers undertake to take necessary actions to support the stability of control of the Company.

Business Outlook

For the full year of 2026, the Company expects its total net revenues to be in the range of RMB11.5 billion to RMB11.8 billion, representing year-over-year growth of 15.6% to 18.6%, and adjusted EBITDA (non-GAAP) to be in the range of RMB3,550 million to RMB3,750 million, representing year-over-year growth of 19.2% to 25.9%. In addition, the Company expects capital expenditure to be in the range of RMB10 billion to RMB12 billion for the full year of 2026. The above outlook remains unchanged from the previously provided estimates.

The forecast reflects the Company’s current and preliminary views on the market and its operational conditions and is subject to change.

Conference Call

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Tuesday, May 26, 2026, or 8:00 PM Beijing Time on Tuesday, May 26, 2026.

4 

 

For participants who wish to join the call, please access the links provided below to complete the online registration process.

English line:

https://s1.c-conf.com/diamondpass/10054823-igj5ty.html

Chinese line (listen-only mode):

https://s1.c-conf.com/diamondpass/10054824-q1g6uk.html

Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call.

Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at http://ir.vnet.com.

A replay of the conference call will be accessible through June 3, 2026, by dialing the following numbers:

US/Canada:	1 855 883 1031
Mainland China:	400 1209 216
Hong Kong, China:	800 930 639
International:	+61 7 3107 6325
Replay PIN (English line):	10054823
Replay PIN (Chinese line):	10054824

Non-GAAP Disclosure

In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this press release.

The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the Company’s current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company’s calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.8980 to US$1.00, the noon buying rate in effect on March 31, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

5 

 

Statement Regarding Unaudited Condensed Financial Information

The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.

About VNET

VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers' internet infrastructure. Customers may locate their servers and equipment in VNET's data centers and connect to China's internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.

Safe Harbor Statement

This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "target," "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement. VNET's strategic and operational plans as well as Business Outlook contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET's goals and strategies; VNET's liquidity conditions; VNET's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET's services; VNET's expectations regarding keeping and strengthening its relationships with customers; VNET's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET's reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law.

Investor Relations Contact:

Xinyuan Liu

Tel: +86 10 8456 2121

Email: ir@vnet.com

6 

VNET GROUP, INC.

CONSOLIDATED BALANCE SHEETS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 

		As of				As of
		December 31, 2025				March 31, 2026
		RMB				RMB				US$
Assets
Current assets:
Cash and cash equivalents			5,523,571				7,772,136				1,126,723
Restricted cash			656,010				284,500				41,244
Short-term Investments			379,198				718,207				104,118
Accounts and notes receivable, net			2,222,106				2,682,764				388,919
Amounts due from related parties			429,411				430,143				62,358
Prepaid expenses and other current assets			2,241,570				2,602,208				377,243
Total current assets			11,451,866				14,489,958				2,100,605
Non-current assets:
Restricted cash			22,104				23,392				3,391
Long-term investments, net			1,062,660				1,025,257				148,631
Property and equipment, net			22,775,579				24,533,134				3,556,558
Intangible assets,net			2,004,710				1,987,282				288,095
Land use rights, net			867,765				868,577				125,917
Operating lease right-of-use assets, net			4,871,341				4,709,302				682,705
Deferred tax assets, net			251,572				244,058				35,381
Derivative financial instrument			11,185				-				-
Other non-current assets			1,275,380				1,235,496				179,109
Total non-current assets			33,142,296				34,626,498				5,019,787
Total assets			44,594,162				49,116,456				7,120,392
Liabilities and Shareholders' Equity
Current liabilities:
Short-term bank borrowings			1,172,561				2,559,857				371,101
Current portion of long-term borrowings			2,059,154				2,616,547				379,320
Current portion of finance lease liabilities			357,995				364,084				52,781
Current portion of operating lease liabilities			962,275				963,193				139,634
Accounts and notes payable			741,878				832,786				120,729
Amounts due to related parties			415,889				406,549				58,937
Income taxes payable			154,343				480,831				69,706
Advances from customers			933,920				1,107,869				160,607
Deferred revenue			138,671				157,897				22,890
Current portion of deferred government grants			51,062				50,327				7,296
Accrued expenses and other payables			5,459,465				5,115,594				741,605
Total current liabilities			12,447,213				14,655,534				2,124,606
Non-current liabilities:
Long-term borrowings			11,579,664				12,932,223				1,874,779
Convertible notes			5,138,664				4,833,867				700,764
Non-current portion of finance lease liabilities			1,643,713				1,615,569				234,208
Non-current portion of operating lease liabilities			4,001,047				3,884,787				563,176
Unrecognized tax benefits			118,734				118,734				17,213
Deferred tax liabilities			840,387				832,982				120,757
Deferred government grants			260,268				249,319				36,144
Total non-current liabilities			23,582,477				24,467,481				3,547,041
Mezzanine equity:
Redeemable non-controlling interests			1,711,591				5,135,112				744,435
Total mezzanine equity			1,711,591				5,135,112				744,435
Shareholders' equity
Ordinary shares			112				118				17
Treasury stock			(179,087	)			(179,087	)			(25,962	)
Additional paid-in capital			17,360,323				17,602,639				2,551,847
Statutory reserves			116,316				116,316				16,862
Accumulated other comprehensive income			46,375				47,190				6,841
Accumulated deficit			(11,125,595	)			(13,355,062	)			(1,936,077	)
Total VNET Group, Inc. shareholders’ equity			6,218,444				4,232,114				613,528
Noncontrolling interest			634,437				626,215				90,782
Total shareholders' equity			6,852,881				4,858,329				704,310
Total liabilities，mezzanine equity and shareholders' equity			44,594,162				49,116,456				7,120,392

7 

 VNET GROUP, INC.

 CONSOLIDATED STATEMENTS OF OPERATIONS

 (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 

		Three months ended
		March 31, 2025				December 31, 2025				March 31, 2026
		RMB				RMB				RMB				US$
Net revenues			2,246,220				2,687,089				2,691,136				390,133
Cost of revenues			(1,680,879	)			(2,146,705	)			(2,075,269	)			(300,851	)
Gross profit			565,341				540,384				615,867				89,282
Operating income (expenses)
Operating income			1,461				14,670				83				12
Sales and marketing expenses			(64,346	)			(73,564	)			(53,682	)			(7,782	)
Research and development expenses			(43,603	)			(78,665	)			(74,423	)			(10,789	)
General and administrative expenses			(179,770	)			(218,853	)			(162,380	)			(23,540	)
Allowance for doubtful debt			(30,552	)			(30,965	)			(78,536	)			(11,385	)
Total operating expenses			(316,810	)			(387,377	)			(368,938	)			(53,484	)
Operating profit			248,531				153,007				246,929				35,798
Interest income			6,751				5,014				10,390				1,506
Interest expense			(100,653	)			(189,447	)			(221,042	)			(32,044	)
Other income			1,811				41,176				1,376				199
Other expenses			(2,438	)			(4,971	)			(2,991	)			(434	)
Changes in the fair value of financial instruments			(334,904	)			287,384				(32,095	)			(4,653	)
Gain on deconsolidation of a subsidiary			-				469,838				-				-
Foreign exchange gain  (loss)			9,527				(29,436	)			36,083				5,231
(Loss) income before income taxes and gain from equity method investments			(171,375	)			732,565				38,650				5,603
Income tax expenses			(52,062	)			(388,933	)			(486,161	)			(70,479	)
Gain from equity method investments			3,214				1,710				2,611				379
Net (loss) income			(220,223	)			345,342				(444,900	)			(64,497	)
Net income attributable to noncontrolling interests			(17,335	)			(20,056	)			(19,752	)			(2,863	)
Net income attributable to redeemable non-controlling interests			-				(20,613	)			(67,189	)			(9,740	)
Net (loss) income attributable to the VNET Group, Inc.			(237,558	)			304,673				(531,841	)			(77,100	)
Accretion to redemption amount of redeemable non-controlling interests			-				(4,839	)			(1,697,626	)			(246,104	)
Net (loss) profit attributable to the Company’s ordinary shareholders			(237,558	)			299,834				(2,229,467	)			(323,204	)
Loss (earnings) per share
Basic			(0.15	)			0.17				(1.36	)			(0.20	)
Diluted			(0.15	)			(0.00	)			(1.36	)			(0.20	)
Shares used in (loss) earnings per share computation
Basic*			1,608,799,842				1,616,275,922				1,644,810,699				1,644,810,699
Diluted*			1,608,799,842				1,762,607,179				1,644,810,699				1,644,810,699
Loss (earnings) per ADS (6 ordinary shares equal to 1 ADS)
Basic			(0.90	)			1.02				(8.16	)			(1.20	)
Diluted			(0.90	)			(0.01	)			(8.16	)			(1.20	)

 * Shares used in (loss) earnings per share/ADS computation were computed under weighted average method. 

8 

 VNET GROUP, INC.

 RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

 (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

		Three months ended
		March 31, 2025				December 31, 2025				March 31, 2026
		RMB				RMB				RMB				US$
Gross profit			565,341				540,384				615,867				89,282
Plus: depreciation and amortization			402,399				596,766				595,092				86,270
Plus: share-based compensation expenses			109				507				297				43
Adjusted cash gross profit			967,849				1,137,657				1,211,256				175,595
Adjusted cash gross margin			43.1	%			42.3	%			45.0	%			45.0	%
Operating expenses			(316,810	)			(387,377	)			(368,938	)			(53,484	)
Plus: share-based compensation expenses			6,329				7,191				6,757				980
Adjusted operating expenses			(310,481	)			(380,186	)			(362,181	)			(52,504	)
Operating profit			248,531				153,007				246,929				35,798
Plus: depreciation and amortization			427,440				644,349				637,551				92,425
Plus: share-based compensation expenses			6,438				7,698				7,054				1,023
Adjusted EBITDA			682,409				805,054				891,534				129,246
Adjusted EBITDA margin			30.4	%			30.0	%			33.1	%			33.1	%

9 

 VNET GROUP, INC.

 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 

		Three months ended
		March 31, 2025				December 31, 2025				March 31, 2026
		RMB				RMB				RMB				US$
CASH FLOWS FROM OPERATING ACTIVITIES
Net cash generated from operating activities			195,713				546,424				173,676				25,178
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment			(1,792,051	)			(1,809,905	)			(1,752,448	)			(254,052	)
Purchases of intangible assets			(33,952	)			(91,438	)			(42,073	)			(6,099	)
(Payments for) proceeds from investments			(21,440	)			1,380,795				(308,408	)			(44,710	)
Proceeds from disposal of a subsidiary, net			-				755,964				-				-
Payments for other investing activities			(37,327	)			(791,034	)			(115,851	)			(16,795	)
Net cash used in investing activities			(1,884,770	)			(555,618	)			(2,218,780	)			(321,656	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from bank borrowings			1,893,386				1,537,209				6,560,103				951,015
Repayments of bank borrowings			(369,366	)			(486,814	)			(3,954,802	)			(573,326	)
Proceeds from issuance of 2030 Convertible Notes			3,084,519				-				-				-
Payments for finance leases			(37,950	)			(84,359	)			(91,453	)			(13,258	)
Proceeds from issuance of ordinary shares			-				-				951,393				137,923
Contribution from noncontrolling interest in subsidiaries			635,000				702,659				4,976,468				721,436
Proceeds from (payments for) other financing activities			161,033				461,622				(4,493,902	)			(651,479	)
Net cash generated from financing activities			5,366,622				2,130,316				3,947,807				572,311
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash			9,020				(673	)			(24,360	)			(3,531	)
Net increase in cash, cash equivalents and restricted cash			3,686,585				2,120,450				1,878,343				272,302
Cash, cash equivalents and restricted cash at beginning of period			2,081,073				4,081,235				6,201,685				899,056
Cash, cash equivalents and restricted cash at end of period			5,767,658				6,201,685				8,080,028				1,171,358

10 

FAQ

How did VNET (VNET) perform financially in Q1 2026?

VNET’s Q1 2026 net revenues reached RMB2.69 billion, up 19.8% year-over-year, driven mainly by wholesale IDC growth. Adjusted EBITDA rose 30.6% to RMB891.5 million, though the company still reported a net loss attributable to VNET of RMB531.8 million.

What drove VNET’s revenue growth in the first quarter of 2026?

Revenue growth was led by the wholesale IDC business, where net revenues increased 58.1% to RMB1.06 billion. Retail IDC revenues grew 5.4% to RMB1.02 billion, and non-IDC revenues were stable at RMB606.6 million, supporting overall 19.8% net revenue growth.

Why did VNET report a larger net loss in Q1 2026?

VNET’s net loss attributable to the company widened to RMB531.8 million, mainly because of RMB486.2 million in capital transactions-related income tax expenses. These items outweighed improved operating profit and higher adjusted EBITDA during the quarter.

What is the significance of the CATL-affiliated investment in VNET (VNET)?

CATL-affiliated buyers agreed to acquire up to 650,424,192 Class A shares at US$1.4486 per share. Upon expected closing in Q4 2026, they could hold about 38.1% of total shares, becoming major strategic shareholders with specified investor rights.

What guidance did VNET provide for full-year 2026?

For 2026, VNET expects total net revenues of RMB11.5–11.8 billion, implying 15.6–18.6% growth, and adjusted EBITDA of RMB3,550–3,750 million, implying 19.2–25.9% growth. Planned capital expenditure is RMB10–12 billion for the year.

How strong is VNET’s liquidity and debt position after Q1 2026?

As of March 31, 2026, VNET held RMB8.80 billion in cash, restricted cash and short-term investments. Short-term debt was RMB5.18 billion and long-term debt RMB17.77 billion, reflecting substantial liquidity alongside significant leverage obligations.

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