Century Internet's Q3 net revenue was Rmb2.12bn, with its base IDC business up 86.4%
1min read On November 21, VNET (VNET.US), China's first US-listed IDC company, released its unaudited financial results for the third quarter of 2024. In the third quarter of this year, its net revenue reached Rmb2.12bn (US$302.2mn), up 12.4% YoY; its net profit grew by Rmb372mn YoY and Rmb260.3mn QoQ to Rmb332.2mn (US$473.3mn).
This performance is a reflection of the booming AI technology. In the third quarter, VNET won six new orders, totaling 84MW. Notably, its Huaile Algorithmic Power Base in Hebei received 32MW orders from internet customers, which is one of its large-scale green algorithmic power clusters.
VNET's adjusted EBITDA grew 17.1% YoY to Rmb594.8mn. Its adjusted EBITDA in the third quarter of 2023 was Rmb507.9mn, including VAT-added tax refunds of Rmb13.3mn.
Regarding this, VNET's CFO Qiyi Wang said that due to the expiration of some tax preferential policies on January 1, 2024, it is no longer sustainable (the VAT refunds have been terminated). If the terminated VAT refunds in the same period last year are deducted, the YoY growth rate is 20.2%.
VNET is actively promoting the capitalization of its base-type data centers. It plans to sign a pre-REITs cooperation agreement with China's leading insurance group, which is now in the final stage and is expected to be completed before the end of 2024. The fund established by the two sides will hold 100% of the equity of the first and second phases of the Taicang base, of which VNET will hold 51%.
The development of AI has fueled the demand for computing power. From this report, VNET's data center business achieved a net revenue of Rmb1.5bn, up 18.4% YoY, compared with Rmb1.27bn in the same period of 2023.
Among them, the net revenue of base-type data centers was Rmb523mn, up 86.4% YoY, compared with Rmb280.6mn in the same period of 2023. The net revenue of urban data centers was Rmb975.5mn, down 1.0% YoY, compared with Rmb984.9mn in the same period of 2023. Specifically, as of September 30, 2024, the operating capacity of base-type data centers was 358MW, and the under-construction capacity was 297MW. The installed capacity was 279MW, with a base-type data center installation rate of 78.0% and a mature base-type project installation rate of 95.6%.
Regarding urban data centers, as of September 30, 2024, the operating cabinet numbers were 52,250, and the installed cabinet numbers were 32,950, with an installation rate of 63.1%.