Sara Wang: Hi, thank you for the opportunity to ask questions. So I have one question. So I noticed that we have revised down the cabinet delivery plan. So what’s our latest cabinet budget for this year and next year. And also, as Jeff just mentioned, cost control is one of the long-term target. So just wondering if there’s any timeline target for VNET to achieve a positive free cash flow or self-financing? Thank you.
Tim Chen: Hey, Sara. Can you hear me?
Sara Wang: Yes.
Tim Chen: Okay. Good. I’ll take this one. So your first question was on cabinet delivery. And for that, we are, as we mentioned, revising our cabinet delivery into the range of 8000 to 9000. And basically, the outlook for this sort of rest of this year into next year, we’ve already factored in the overall macro softness that we’ve seen. Also, the slower moving and then there are some construction delays related to COVID-related restrictions. But those are I would say less of a factor but still a factor in terms of shifting perhaps this year into next. In terms of our outlook, in terms of 2023, we’ll give some more color in fourth quarter, but we’re expecting that next year’s delivery will be similar to this year perhaps a little bit better. What’s your second question, Sara?
Sara Wang: So as cost control is one of the long-term target. So just wondering if there’s any timeline target for VNET to achieve self-financing? Or like positive cash flow. Yes.
Tim Chen: So I think overall, if you look at our financing plans, right now, there’s a couple of things that we’re focused on. One is on the CapEx side. And obviously, extra cash out. I would say that we’re increasingly selective on our CapEx and sort of putting CapEx spend. We do also still have very strong support from the domestic banks onshore financing. And then alternative financing, in terms of the Changzhou co-operation, as well as exploring onshore restructures. And then, last but not least, when you’re sort of looking at our overall ramp up, you continue to see the billable cabinets increasing. I would say that just given all these things put together, probably targeting 2024. I think next year still will be quite challenging, just given the fact that we were still targeting something in a range of 3.5 billion to 4 billion of CapEx, but again, some of it we can moderate with these co-operations.
Sara Wang: Got it. Thank you.
Tim Chen: Most welcome.
Operator: One moment for next question. Our next question comes line of Ethan Zang from Nomura. Your line is open. Ethan Zeng from Nomura, your line is open.
Ethan Zhang: Oh, sorry. Thanks. My question is, I noticed that our third quarter EBITDA margin was so like three percentage points, compared to 3Q of last year. Just wonder, could management give us some breakdown or quantitative impacts of different macro factors that affect our EBITDA margin? And what is the outlook for the EBITDA margin for next year? Thank you.
Tim Chen: Hi, Ethan. It’s Tim here. In terms of overall, EBITDA margin, actually, the company has been working quite hard on cost controls, because we have seen during the course of this year, obviously costs like utilities and so forth going up. But we’ve managed to moderate that with some cost controls, and also deferral of costs for third quarter. In terms of the next year and expectations, I think that we expect that the margin compression will also then flatten out. But it will depend on the overall continued ramp up of the business, and that there will be no further changes to our underlying cost of sales. But we’ll have some more details in fourth quarter in terms of our views as we end this year.
Ethan Zhang: Got it. Thank you.
Operator: Thank you. One moment for next question. Our next question comes the line of Alex Wang from Daiwa. Your line is open.
Unidentified Analyst: Yes. Can you hear me?
Tim Chen: Yes, very clear.
