VNET Group, Inc. (NASDAQ:VNET) Q4 2022 Earnings Call Transcript

Edison Lee: Okay. Thank you.

Jeff Dong: Yes. In terms of the second question…

Edison Lee: Sorry, Jeff, please go ahead.

Jeff Dong: Okay. Let me answer your questions in terms of the JV with Changzhou. We have actually €“ we recently we signed an SPA in Langfang area with one project, which is the largest one from the identified portfolio. The JV has already committed over RMB500 million on asset proportion, we also committed the capital. And this Langfang project will achieve IT scale of about 140 megawatts and also will be delivered cabinets more than 17,000 cabinets in total. So, that’s what we have done so far. And some other projects, we are also closely in discussion with Changzhou and will be ramp up soon, probably by the end of this year, including Shenzhen, Dongguan and also in Central Beijing areas.

Edison Lee: Thank you. Just a follow-up. So, will this Langfang project be contributing profitability to VNET this year.

Jeff Dong: I wouldn’t see it contribute to VNET’s financials, but we will €“ it’s also divided into the different phases. The Phase 1 and Phase 2 has already had customers and we are signing the SPA on the Phase 3 and Phase 4, which is a greenfield project with a full regulatory license, hopefully, will be delivered by the end of this year and ramping maybe next year.

Edison Lee: Okay. Thank you very much.

Operator: Ladies and gentlemen, that concludes our conference today. Thank you for participating. You may now disconnect.