VNET Group, Inc. (NASDAQ:VNET) Q4 2023 Earnings Call Transcript

Qiyu Wang: Thank you. Let me answer the first question about guidance. The main reason for the company’s EBITDA growth higher than the revenue growth in this year’s guidance as follows, there’s 3 reasons. The first one, the expected growth in this year is primarily driven by the wholesale business. Considering the nature of the wholesale business, we does not include the exact revenue in income. The wholesale business tend to have — the wholesale business, the EBITDA margin is higher than the retail. So the growth of the wholesale business in this year is to contribute more EBITDA for this — for the company. The second is that we plan to update and improve certain retail data center, that’s a lower EBITDA margin, for this initial arms to enhance our operating efficiency and increase their contribution to the EBITDA. Three, further cost control matter will be employment to improve the company’s operating efficiency will positively impact EBITDA growth.

Jie Dong: In terms of the 100 to 120 megawatts will deliver in 2024, I would say, the pace will be similar to our previous years. So the majority of our deliveries will be — happen in the second half of this year.

Operator: Thank you. This concludes today’s conference call. Thank you all for participating. You may now disconnect. Have a great day, everyone. Thank you very much.