VNET Group (VNET.US), a leading technology-driven digital infrastructure enterprise and the first U.S.-listed Chinese IDC company, released its unaudited financial results for the second quarter of 2026 on August 18, 2026 (Beijing time).

The company's total revenue for Q2 2026 grew 14.2% year-over-year to RMB 2.78 billion. Adjusted EBITDA increased 25.4% year-over-year to RMB 920 million, with the adjusted EBITDA margin expanding by 3.0 percentage points to 33.0%. Adjusted net profit reached RMB 7.38 million, marking a return to profitability compared to the same period last year.

Mr. Chen Sheng, Founder and Chairman of VNET Group, commented, "In the second quarter of 2026, the company's core financial and operational metrics all achieved robust growth, with solid execution and high-quality delivery capabilities continuing to secure new orders. This quarter, we secured a 345MW hyperscale order from a leading cloud computing customer, bringing our cumulative new hyperscale orders since the beginning of the year to 862MW. Meanwhile, we continue to expand our strategic resource reserves, adding approximately 1.4GW of new land reserve capacity in the quarter, including 908MW domestically and 478MW overseas. As a result, the company's total operational and reserve capacity has surpassed 4GW, establishing a clearly visible development pathway for long-term growth in both domestic and international markets. We have further deepened our collaboration with CATL, formally signing a strategic cooperation agreement to jointly build a three-tier computing-power synergy system encompassing 'gigawatt-level computing-power plants + distributed computing-power networks + zero-carbon token ecosystems'. Leveraging our highly complementary resource endowments, we will deepen cooperation in technology, infrastructure, and supply chain, working together to drive innovation in the integrated computing-power system and support the construction of next-generation AI-driven digital energy infrastructure."

Mr. Zhang Zhihua, Senior Vice President of Finance at VNET Group, stated, "In the second quarter, total revenue grew 14.2% year-over-year to RMB 2.78 billion, with hyperscale business revenue leading the growth at a 29.3% year-over-year increase. Hyperscale business revenue once again exceeded urban business revenue, with its share of total revenue rising to 39.8%, further cementing its position as one of the company's primary growth engines. Strong order momentum, long-term customer commitments, and an orderly delivery cadence have further enhanced the visibility of future revenue growth. Adjusted EBITDA grew 25.4% year-over-year to RMB 920 million, with the adjusted EBITDA margin expanding by 3.0 percentage points to 33.0%. Looking ahead, we will continue to adhere to a rigorous execution strategy across project delivery, capacity expansion, and capital allocation, driving high-quality growth and creating value for shareholders."

Accelerating High-Quality Development with Rising Profitability

Through refined operations and technological innovation, VNET Group has driven enterprise efficiency improvements, significantly enhanced profitability, and achieved high-quality growth.

In the second quarter, total revenue grew 14.2% year-over-year to RMB 2.78 billion. The hyperscale business, as the primary growth driver, saw revenue increase 29.3% year-over-year to RMB 1.10 billion. Adjusted EBITDA rose 25.4% year-over-year to RMB 920 million. Adjusted cash gross profit grew 9.4% year-over-year to RMB 1.16 billion. The adjusted EBITDA margin expanded by 3.0 percentage points to 33.0%, and adjusted net profit reached RMB 7.38 million, achieving a turnaround from losses in the same period last year.

AI Demand Further Unleashed with Robust Hyperscale Growth

Benefiting from the surging AI-driven demand for computing power, VNET Group leveraged its solid resource reserves and high-quality delivery capabilities to precisely meet customer needs, with overall operational metrics continuing to grow in the second quarter.

As of June 30, 2026, total operational capacity for hyperscale IDC business grew 49.4% year-over-year to 1,007MW, surpassing the 1GW milestone for the first time, with a contracted rate of 96.3%. Total installed capacity for hyperscale business increased 45.5% year-over-year to 744MW, with an installed rate of 73.9%. Meanwhile, urban IDC business grew steadily, with second-quarter monthly recurring revenue per cabinet rising to RMB 9,799 and the installed rate stable at 64.5%.

Hyperscale 2.0 Framework Secures Premium Orders

Guided by the Hyperscale 2.0 framework, the company has continuously strengthened its market development and customer acquisition capabilities. Combined with steadily rising market demand for high-performance data centers, order growth has maintained strong momentum.

In the second quarter, the company secured 347MW of new orders. Notably, a data center in the Beijing-Tianjin-Hebei region won a 345MW hyperscale new order from a leading cloud computing customer. Cumulative hyperscale orders on hand since the beginning of 2026 total approximately 862MW. Additionally, urban business progressed steadily, with multiple urban data centers securing approximately 2MW of new orders from customers in IT services, local life services, and financial services sectors. Cumulative urban orders on hand since the start of 2026 total approximately 4MW, further validating the company's balanced growth trajectory with multi-segment synergy and increasingly diversified customer composition.

Strategic Partnerships Deepen and Industry Footprint Expands

On August 18, VNET Group announced the signing of a strategic cooperation agreement with CATL, establishing a comprehensive strategic partnership to jointly seize the historic opportunity presented by computing-power synergy. Centered on deep integration of computing power and energy, the two parties will jointly define industry technical standards and innovative business models, building a three-tier system of "gigawatt-level computing-power plants + distributed computing-power networks + zero-carbon token ecosystems". The initiative aims to create a computing-power synergy network covering China and extending globally, positioning both companies as definers and industry leaders in AI-era digital energy infrastructure.

In July, VNET Group reached a strategic cooperation with Haier Group. Building on the shared philosophy of "RenDanHeYi", the two companies will collaborate comprehensively across core areas including the "FDE+OPC" innovative cooperation model and the Super-Interconnected Group Intelligence Joint Laboratory, jointly exploring pathways to an AI-native intelligent agent society. The two enterprises will also focus on co-constructing green, energy-efficient data centers, jointly developing low-carbon and zero-carbon data center solutions and a full-chain carbon footprint management platform, while promoting technological innovation, standards co-creation, supply chain system synergy, and zero-carbon park development.

To seize the opportunities of the AI era, the company is simultaneously advancing resource reserve expansion. In the second quarter, total domestic hyperscale IDC resources surpassed 3.5GW, with overseas resources totaling approximately 500MW, further strengthening the company's long-term competitiveness on a global scale.