VNET's 2025 Earnings Call: Unpacking Contradictions in AI Demand, Revenue Projections, and Growth Outlook

Strong Quarterly Results and Wholesale IDC Growth:
- VNET reported total net revenues of RMB 2.43 billion for Q2 2025, up 22.1% year-over-year.
- Notably, wholesale revenues reached RMB 854 million, representing 112.5% year-over-year growth, driven by rapid expansion of the wholesale IDC business.

AI-Driven Demand and New Order Wins:
- In Q2, VNET secured a combined capacity of around 4 megawatts in retail orders and a 20-megawatt wholesale order.
- The growth was driven by increasing demand for intelligent deployment across various sectors, reflecting strong AI-driven demand.

Delivery Plan and CapEx Spending:
- VNET plans to deliver around 326 megawatts over the next 12 months, with 227 megawatts scheduled for the second half of 2025.
- CapEx spending for the first half of 2025 was RMB 3.89 billion, focused on expanding wholesale IDC capacity in anticipation of increased deliveries.

Improved Financial Performance and Liquidity:
- Adjusted cash gross profit rose by 34.9% year-over-year to RMB 1.06 billion.
- VNET maintained robust liquidity, with RMB 4.66 billion in cash and cash equivalents, supported by a net operating cash inflow of RMB 366.6 million in Q2.