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VNET Reports Unaudited First Quarter 2025 Financial Results

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BEIJING, May 28, 2025 /PRNewswire/ — VNET Group, Inc. (Nasdaq: VNET) (“VNET” or the “Company”), a leading carrier- and cloud-neutral internet data center services provider in China, today announced its unaudited financial results for the first quarter ended March 31, 2025.

“We kicked off 2025 with a strong first quarter thanks to excellent execution of our effective dual-core strategy,” said Josh Sheng Chen, Founder, Executive Chairperson and interim Chief Executive Officer of VNET. “Our wholesale IDC business recorded another impressive performance, marked by our robust deliveries and customers’ fast move-in pace. As of March 31, 2025, our wholesale capacity in service increased by 88MW quarter over quarter to 573MW. Wholesale capacity utilized increased by a record high of 84MW quarter over quarter to 437MW. We continued to win quality wholesale and retail orders in the first quarter, including the 119MW of wholesale orders we disclosed last quarter, along with a 6MW wholesale order from an intelligent driving customer and a total of 4MW in retail orders from customers in internet, finance, local services, intelligent driving, and gaming across multiple retail data centers. Going forward, we will continue leveraging our high-performance data center network, reliable solutions, and outstanding delivery capabilities to address customers’ needs and meet their rising demand, driving growth and advancing the development of China’s digital economy.”

Qiyu Wang, Chief Financial Officer of VNET, commented, “The solid start of the year 2025 was characterized by vibrant growth and a significantly enhanced margin. In the first quarter, our total net revenues rose 18.3% year over year to RMB2.25 billion, driven by wholesale revenues’ strong year-over-year growth of 86.5%. Adjusted EBITDA for the first quarter increased by 26.4% year over year to RMB682.4 million, with an adjusted EBITDA margin of 30.4%, up 1.9 percentage points year over year. Excluding the one-off impact of asset disposals last quarter, adjusted EBITDA increased by 18.1% quarter over quarter. Moreover, we further strengthened our financing capabilities, diversifying our financing channels at a relatively low cost to support our continued investments in future development. Looking ahead, we will remain dedicated to our sustainable, high-quality growth strategy, seizing market opportunities and delivering long-term value for our stakeholders.”

First Quarter 2025 Financial Highlights

Total net revenues increased by 18.3% to RMB2.25 billion (US$309.5 million) from RMB1.90 billion in the same period of 2024.Net revenues from the IDC business[1] increased by 27.8% to RMB1.64 billion (US$226.2 million) from RMB1.28 billion in the same period of 2024.Net revenues from the wholesale IDC business (“wholesale revenues”) increased by 86.5% to RMB673.2 million (US$92.8 million) from RMB361.0 million in the same period of 2024.Net revenues from the retail IDC business (“retail revenues”) increased by 4.8% to RMB968.3 million (US$133.4 million) from RMB923.7 million in the same period of 2024.Net revenues from the non-IDC business[2] decreased slightly by 1.4% to RMB604.8 million (US$83.3 million) from RMB613.5 million in the same period of 2024.Adjusted cash gross profit (non-GAAP) increased by 26.4% to RMB967.8 million (US$133.4 million) from RMB765.5 million in the same period of 2024. Adjusted cash gross margin (non-GAAP) was 43.1%, compared with 40.3% in the same period of 2024.Adjusted EBITDA (non-GAAP) increased by 26.4% to RMB682.4 million (US$94.0 million) from RMB539.8 million in the same period of 2024. Adjusted EBITDA margin (non-GAAP) was 30.4%, compared with 28.4% in the same period of 2024.

First Quarter 2025 Operational Highlights

Wholesale IDC Business

Capacity in service was 573MW as of March 31, 2025, compared with 486MW as of December 31, 2024, and 332MW as of March 31, 2024. Capacity under construction was 377MW as of March 31, 2025.Capacity utilized by customers reached 437MW as of March 31, 2025, compared with 353MW as of December 31, 2024, and 236MW as of March 31, 2024. The sequential increase during the first quarter of 2025 was 84MW, which was mainly contributed by the E-JS Campus 02 and N-HB Campus 03 data centers.Utilization rate[3] of wholesale capacity was 76.2% as of March 31, 2025, compared with 72.6% as of December 31, 2024, and 71.0% as of March 31, 2024.Utilization rate of mature wholesale capacity[4] was 94.5% as of March 31, 2025, compared with 95.6% as of December 31, 2024, and 94.6% as of March 31, 2024.Utilization rate of ramp-up wholesale capacity[5] was 32.1% as of March 31, 2025, compared with 34.0% as of December 31, 2024, and 33.6% as of March 31, 2024.Total capacity committed[6] was 571MW as of March 31, 2025, compared with 479MW as of December 31, 2024, and 326MW as of March 31, 2024.Commitment rate[7] for capacity in service was 99.7% as of March 31, 2025, compared with 98.7% as of December 31, 2024, and 98.1% as of March 31, 2024.Total capacity pre-committed[8] was 307MW and pre-commitment rate[9] for capacity under construction was 81.6% as of March 31, 2025.

Retail IDC Business[10]

Capacity in service was 51,960 cabinets as of March 31, 2025, compared with 52,107 cabinets as of December 31, 2024, and 52,068 cabinets as of March 31, 2024.Capacity utilized by customers reached 33,093 cabinets as of March 31, 2025, compared with 33,068 cabinets as of December 31, 2024, and 33,312 cabinets as of March 31, 2024.Utilization rate of retail capacity was 63.7% as of March 31, 2025, compared with 63.5% as of December 31, 2024, and 64.0% as of March 31, 2024.Utilization rate of mature retail capacity[11] was 69.1% as of March 31, 2025, compared with 68.9% as of December 31, 2024, and 72.8% as of March 31, 2024.Utilization rate of ramp-up retail capacity[12] was 21.5% as of March 31, 2025, compared with 21.3% as of December 31, 2024, and 13.0% as of March 31, 2024.Monthly recurring revenue (MRR) per retail cabinet was RMB8,898 in the first quarter of 2025, compared with RMB8,794 in the fourth quarter of 2024 and RMB8,742 in the first quarter of 2024.

[1] IDC business refers to managed hosting services, consisting of the wholesale IDC business and the retail IDC business. Beginning in the first quarter of 2024, our IDC business was subdivided into wholesale IDC business and retail IDC business according to the nature and scale of our data center projects. Prior to 2024, the subdivision was based on customer contract types.

[2] Non-IDC business consists of cloud services and VPN services.

[3] Utilization rate is calculated by dividing capacity utilized by customers by the capacity in service.

[4] Mature wholesale capacity refers to wholesale data centers in which utilization rate is at or above 80%.

[5] Ramp-up wholesale capacity refers to wholesale data centers in which utilization rate is below 80%.

[6] Total capacity committed is the capacity committed to customers pursuant to customer agreements remaining in effect.

[7] Commitment rate is calculated by total capacity committed divided by total capacity in service.

[8] Total capacity pre-committed is the capacity under construction which is pre-committed to customers pursuant to customer agreements remaining in effect.

[9] Pre-commitment rate is calculated by total capacity pre-committed divided by total capacity under construction.

[10] For retail IDC business, since the first quarter of 2024, we have excluded a certain number of reserved cabinets from the capacity in service. Reserved cabinets refer to those that have not been utilized on a large scale, those that are planned to be closed, or those that are planned to be further upgraded. As of March 31, 2024, December 31, 2024, and March 31, 2025, 4,426, 3,766 and 3,766 reserved cabinets, respectively, were excluded from the calculation of utilization rate of retail IDC business capacity.

[11] Mature retail capacity refers to retail data centers that came into service prior to the past 24 months.

[12] Ramp-up retail capacity refers to retail data centers that came into service within the past 24 months, or mature retail data centers that have undergone improvements within the past 24 months.

First Quarter 2025 Financial Results

TOTAL NET REVENUES: Total net revenues in the first quarter of 2025 were RMB2.25 billion (US$309.5 million), representing an increase of 18.3% from RMB1.90 billion in the same period of 2024. The year-over-year increase was mainly driven by the continued growth of our wholesale IDC business.

Net revenues from IDC business increased by 27.8% to RMB1.64 billion (US$226.2 million) from RMB1.28 billion in the same period of 2024. The year-over-year increase was mainly driven by an increase in wholesale revenues.

Wholesale revenues increased by 86.5% to RMB673.2 million (US$92.8 million) from RMB361.0 million in the same period of 2024.Retail revenues increased to RMB968.3 million (US$133.4 million) from RMB923.7 million in the same period of 2024.

Net revenues from non-IDC business decreased slightly by 1.4% to RMB604.8 million (US$83.3 million) from RMB613.5 million in the same period of 2024.

GROSS PROFIT: Gross profit in the first quarter of 2025 was RMB565.3 million (US$77.9 million), representing an increase of 37.6% from RMB410.7 million in the same period of 2024. Gross margin in the first quarter of 2025 was 25.2%, compared with 21.6% in the same period of 2024.

ADJUSTED CASH GROSS PROFIT (non-GAAP), which excludes depreciation, amortization, and share-based compensation expenses, was RMB967.8 million (US$133.4 million) in the first quarter of 2025, compared with RMB765.5 million in the same period of 2024. Adjusted cash gross margin (non-GAAP) in the first quarter of 2025 was 43.1%, compared with 40.3% in the same period of 2024.

OPERATING EXPENSES: Total operating expenses in the first quarter of 2025 were RMB316.8 million (US$43.7 million), compared with RMB364.3 million in the same period of 2024. 

Sales and marketing expenses were RMB64.3 million (US$8.9 million) in the first quarter of 2025, compared with RMB71.7 million in the same period of 2024.

Research and development expenses were RMB43.6 million (US$6.0 million) in the first quarter of 2025, compared with RMB75.4 million in the same period of 2024.

General and administrative expenses were RMB179.8 million (US$24.8 million) in the first quarter of 2025, compared with RMB226.3 million in the same period of 2024.

ADJUSTED OPERATING EXPENSES (non-GAAP), which exclude share-based compensation expenses, were RMB310.5 million (US$42.8 million) in the first quarter of 2025, compared with RMB252.6 million in the same period of 2024. As a percentage of total net revenues, adjusted operating expenses (non-GAAP) in the first quarter of 2025 were 13.8%, compared with 13.3% in the same period of 2024.

ADJUSTED EBITDA (non-GAAP): Adjusted EBITDA in the first quarter of 2025 was RMB682.4 million (US$94.0 million), representing an increase of 26.4% from RMB539.8 million in the same period of 2024. Adjusted EBITDA margin (non-GAAP) in the first quarter of 2025 was 30.4%, compared with 28.4% in the same period of 2024.

NET LOSS ATTRIBUTABLE TO VNET GROUP, INC.: Net loss attributable to VNET Group, Inc. in the first quarter of 2025 was RMB237.6 million (US$32.7 million), compared with a net loss attributable to VNET Group, Inc. of RMB187.0 million in the same period of 2024. The year-over-year increase in loss was mainly due to the changes in the fair value of financial instruments.

LOSS PER SHARE: Basic and diluted loss per share in the first quarter of 2025 were both RMB0.15 (US$0.02), which represents the equivalent of RMB0.90 (US$0.12) per American depositary share (“ADS”), respectively. Each ADS represents six Class A ordinary shares. 

LIQUIDITY: As of March 31, 2025, the aggregate amount of the Company’s cash and cash equivalents, restricted cash and short-term investments was RMB5.79 billion (US$797.8 million).

Total short-term debt, consisting of short-term bank borrowings and the current portion of long-term borrowings, was RMB2.58 billion (US$355.7 million). Total long-term debt was RMB14.20 billion (US$1.96 billion), comprised of long-term borrowings of RMB8.96 billion (US$1.20 billion) and convertible promissory notes of RMB5.24 billion (US$722.8 million).

Net cash generated from operating activities in the first quarter of 2025 was RMB195.7 million (US$27.0 million), compared with RMB267.6 million in the same period of 2024. During the first quarter of 2025, the Company obtained new debt financing, refinancing facilities, convertible senior notes and other financings of RMB5.42 billion (US$746.8 million).

Business Outlook

The Company expects total net revenues for 2025 to be between RMB9,100 million to RMB9,300 million, representing year-over-year growth of 10% to 13%, and adjusted EBITDA (non-GAAP) to be in the range of RMB2,700 million to RMB2,760 million, representing year-over-year growth of 11% to 14%. If the RMB87.7 million (US$12.0 million) disposal gain of E-JS02 data center were excluded from the adjusted EBITDA calculation for 2024, the year-over-year growth would be 15% to 18%. The above outlook remains unchanged from the previously provided estimates.

The forecast reflects the Company’s current and preliminary views on the market and its operational conditions and is subject to change.

Conference Call

The Company’s management will host an earnings conference call at 8:00 AM U.S. Eastern Time on Wednesday, May 28, 2025, or 8:00 PM Beijing Time on Wednesday, May 28, 2025.

For participants who wish to join the call, please access the links provided below to complete the online registration process.

English line:
https://s1.c-conf.com/diamondpass/10047350-c2tgiy.html

Chinese line (listen-only mode): 
https://s1.c-conf.com/diamondpass/10047351-lcxi4d.html  

Participants can choose between the English and Chinese options for pre-registration above. Please note that the Chinese option will be in listen-only mode. Upon registration, each participant will receive an email containing details for the conference call, including dial-in numbers, a conference call passcode and a unique access PIN, which will be used to join the conference call. 

Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at http://ir.vnet.com

A replay of the conference call will be accessible through June 4, 2025, by dialing the following numbers: 

US/Canada:

1 855 883 1031

Mainland China:

400 1209 216

Hong Kong, China:

800 930 639

International:

+61 7 3107 6325

Reply PIN (English line):

10047350

Reply PIN (Chinese line):

10047351

Non-GAAP Disclosure

In evaluating its business, VNET considers and uses the following non-GAAP measures defined as non-GAAP financial measures by the U.S. Securities and Exchange Commission as a supplemental measure to review and assess its operating performance: adjusted cash gross profit, adjusted cash gross margin, adjusted operating expenses, adjusted EBITDA and adjusted EBITDA margin. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this press release.

The non-GAAP financial measures are provided as additional information to help investors compare business trends among different reporting periods on a consistent basis and to enhance investors’ overall understanding of the Company’s current financial performance and prospects for the future. These non-GAAP financial measures should be considered in addition to results prepared in accordance with U.S. GAAP, but should not be considered a substitute for, or superior to, U.S. GAAP results. In addition, the Company’s calculation of the non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred to could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Statement Regarding Unaudited Condensed Financial Information

The unaudited financial information set forth above is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited condensed financial information.

About VNET

VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China. VNET provides hosting and related services, including IDC services, cloud services, and business VPN services to improve the reliability, security, and speed of its customers’ internet infrastructure. Customers may locate their servers and equipment in VNET’s data centers and connect to China’s internet backbone. VNET operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 7,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.

Safe Harbor Statement

This announcement contains forward-looking statements. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “target,” “believes,” “estimates” and similar statements. Among other things, quotations from management in this announcement as well as VNET’s strategic and operational plans, including the plan to sign a definitive agreement on a pre-REITs project, contain forward-looking statements. VNET may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about VNET’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: VNET’s goals and strategies; VNET’s liquidity conditions; VNET’s expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, VNET’s services; VNET’s expectations regarding keeping and strengthening its relationships with customers; VNET’s plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where VNET provides solutions and services. Further information regarding these and other risks is included in VNET’s reports filed with, or furnished to, the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this press release, and VNET undertakes no duty to update such information, except as required under applicable law.

Investor Relations Contact:

Xinyuan Liu
Tel: +86 10 8456 2121
Email: ir@vnet.com

 

 

 

 VNET GROUP, INC. 

 CONSOLIDATED BALANCE SHEETS 

 (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 

 As of 

 As of  

December 31, 2024

March 31, 2025

 RMB 

 RMB 

 US$ 

 Assets 

 Current assets: 

 Cash and cash equivalents 

1,492,436

3,949,940

544,316

 Restricted cash 

545,795

1,774,403

244,519

 Accounts and notes receivable, net 

1,655,984

2,028,264

279,502

 Short-term Investments 

21,491

2,962

 Prepaid expenses and other current assets 

2,789,573

2,983,864

411,187

 Amounts due from related parties 

336,360

382,734

52,742

 Total current assets 

6,820,148

11,140,696

1,535,228

 Non-current assets: 

 Property and equipment, net 

17,216,635

18,421,841

2,538,598

 Intangible assets and other long-term assets, net 

2,170,000

2,768,074

381,451

 Operating lease right-of-use assets, net 

4,618,212

4,966,194

684,360

 Derivative financial instruments 

6,768

16,307

2,247

 Restricted cash 

42,842

43,315

5,969

 Deferred tax assets, net 

306,623

309,428

42,640

 Long-term investments, net 

794,688

788,119

108,606

 Other non-current assets 

381,126

378,687

52,184

 Total non-current assets 

25,536,894

27,691,965

3,816,055

 Total assets 

32,357,042

38,832,661

5,351,283

 Liabilities and Shareholders’ Equity 

 Current liabilities: 

 Short-term bank borrowings 

589,000

1,020,997

140,697

 Accounts and notes payable 

709,260

813,337

112,081

 Accrued expenses and other payables 

3,618,237

3,736,633

514,922

 Advances from customers 

1,378,806

1,311,898

180,784

 Deferred revenue 

87,830

94,985

13,089

 Income taxes payable 

69,569

48,748

6,718

 Amounts due to related parties 

355,679

351,966

48,502

 Current portion of long-term borrowings 

1,420,190

1,560,064

214,983

 Current portion of finance lease liabilities  

208,299

227,918

31,408

 Current portion of deferred government grants 

6,727

9,339

1,287

 Current portion of operating lease liabilities  

899,818

938,292

129,300

 Total current liabilities 

9,343,415

10,114,177

1,393,771

 Non-current liabilities: 

 Long-term borrowings 

7,767,390

8,958,785

1,234,554

 Convertible promissory notes 

1,897,738

5,244,979

722,777

 Non-current portion of finance lease liabilities  

1,532,309

1,556,327

214,468

 Unrecognized tax benefits 

107,850

107,850

14,862

 Deferred tax liabilities 

734,404

875,054

120,586

 Deferred government grants 

273,824

267,078

36,804

 Non-current portion of operating lease liabilities 

3,779,293

4,105,999

565,822

 Total non-current liabilities 

16,092,808

21,116,072

2,909,873

 Mezzanine equity: 

 Redeemable non-controlling interests 

869,303

119,793

 Total mezzanine equity 

869,303

119,793

 Shareholders’ equity 

 Ordinary shares  

112

112

15

 Additional paid-in capital 

17,298,692

17,340,396

2,389,570

 Accumulated other comprehensive loss 

(18,504)

(11,695)

(1,612)

 Statutory reserves 

107,380

107,380

14,797

 Accumulated deficit 

(10,859,888)

(11,097,446)

(1,529,269)

 Treasury stock 

(161,892)

(161,892)

(22,309)

 Total VNET Group, Inc. shareholders’ equity 

6,365,900

6,176,855

851,192

 Noncontrolling interest 

554,919

556,254

76,654

 Total shareholders’ equity 

6,920,819

6,733,109

927,846

 Total liabilities and shareholders’ equity 

32,357,042

38,832,661

5,351,283

 

 

 

 VNET GROUP, INC. 

 CONSOLIDATED STATEMENTS OF OPERATIONS 

 (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”) except for number of shares and per share data) 

 Three months ended  

March 31, 2024

December 31, 2024

March 31, 2025

 RMB 

 RMB 

 RMB 

 US$ 

 Net revenues 

1,898,126

2,246,389

2,246,220

309,537

 Cost of revenues 

(1,487,405)

(1,741,533)

(1,680,879)

(231,631)

 Gross profit 

410,721

504,856

565,341

77,906

 Operating income (expenses) 

 Operating income 

3,949

98,869

1,461

201

 Sales and marketing expenses 

(71,743)

(73,088)

(64,346)

(8,867)

 Research and development expenses 

(75,389)

(56,098)

(43,603)

(6,009)

 General and administrative expenses 

(226,297)

(192,954)

(179,770)

(24,773)

 Allowance for doubtful debt 

5,175

(44,590)

(30,552)

(4,210)

 Total operating expenses 

(364,305)

(267,861)

(316,810)

(43,658)

 Operating profit 

46,416

236,995

248,531

34,248

 Interest income 

12,129

6,162

6,751

930

 Interest expense 

(137,682)

(77,125)

(100,653)

(13,870)

 Other income 

4,814

1,855

1,811

250

 Other expenses 

(1,422)

(10,185)

(2,438)

(336)

 Changes in the fair value of financial instruments 

3,858

(71,575)

(334,904)

(46,151)

 Foreign exchange (loss) gain 

(28,361)

(1,327)

9,527

1,313

 (Loss) income before income taxes and gain
from equity method investments 

(100,248)

84,800

(171,375)

(23,616)

 Income tax expenses 

(61,384)

(82,547)

(52,062)

(7,174)

 Gain from equity method investments 

2,606

1,197

3,214

443

 Net (loss) income 

(159,026)

3,450

(220,223)

(30,347)

 Net income attributable to noncontrolling interest 

(27,979)

(14,546)

(17,335)

(2,389)

 Net loss attributable to the VNET Group,
Inc. 

(187,005)

(11,096)

(237,558)

(32,736)

 Loss per share 

 Basic 

(0.12)

(0.01)

(0.15)

(0.02)

 Diluted 

(0.12)

(0.01)

(0.15)

(0.02)

 Shares used in loss per share
computation 

 Basic* 

1,568,300,360

1,608,291,868

1,608,799,842

1,608,799,842

 Diluted* 

1,568,300,360

1,608,291,868

1,608,799,842

1,608,799,842

Loss per ADS (6 ordinary shares equal to 1 ADS)

Basic

(0.72)

(0.06)

(0.90)

(0.12)

Diluted

(0.72)

(0.06)

(0.90)

(0.12)

 * Shares used in loss per share/ADS computation were computed under weighted average method. 

 

 

 

 VNET GROUP, INC. 

 RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS  

 (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 

 Three months ended  

March 31, 2024

December 31, 2024

March 31, 2025

 RMB 

 RMB 

 RMB 

 US$ 

 Gross profit 

410,721

504,856

565,341

77,906

 Plus: depreciation and amortization 

352,604

414,364

402,399

55,452

 Plus: share-based compensation
expenses 

2,190

4,652

109

15

 Adjusted cash gross profit 

765,515

923,872

967,849

133,373

 Adjusted cash gross margin 

40.3 %

41.1 %

43.1 %

43.1 %

 Operating expenses 

(364,305)

(267,861)

(316,810)

(43,658)

 Plus: share-based compensation
expenses 

111,681

38,243

6,329

872

 Adjusted operating expenses 

(252,624)

(229,618)

(310,481)

(42,786)

 Operating profit 

46,416

236,995

248,531

34,248

 Plus: depreciation and amortization 

379,551

441,447

427,440

58,903

 Plus: share-based compensation expenses 

113,871

42,895

6,438

887

 Adjusted EBITDA 

539,838

721,337

682,409

94,038

 Adjusted EBITDA margin 

28.4 %

32.1 %

30.4 %

30.4 %

 

 

 

 VNET GROUP, INC. 

 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 

 (Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)) 

 Three months ended  

March 31, 2024

December 31, 2024

March 31, 2025

 RMB 

 RMB 

 RMB 

 US$ 

 CASH FLOWS FROM OPERATING ACTIVITIES 

 Net cash generated from operating activities 

267,587

572,236

195,713

26,969

 CASH FLOWS FROM INVESTING ACTIVITIES 

 Purchases of property and equipment 

(1,005,368)

(1,492,972)

(1,792,051)

(246,951)

 Purchases of intangible assets 

(5,965)

(82,693)

(33,952)

(4,679)

 Proceeds from (payments for) investments 

359,239

22,087

(21,440)

(2,955)

 Proceeds from (payments for)  other investing activities 

1,154

177,418

(37,327)

(5,143)

 Net cash used in investing activities 

(650,940)

(1,376,160)

(1,884,770)

(259,728)

 CASH FLOWS FROM FINANCING ACTIVITIES 

 Proceeds from bank borrowings 

1,156,279

1,240,147

1,893,386

260,916

 Repayments of bank borrowings 

(51,441)

(366,664)

(369,366)

(50,900)

 Repurchase of 2026 Convertible Notes 

(4,262,340)

 Proceeds from issuance of 2030 Convertible Notes 

3,084,519

425,058

 Payments for finance leases  

(39,602)

(25,789)

(37,950)

(5,230)

 Contribution from noncontrolling interest in a subsidiary 

16,000

635,000

87,505

 Proceeds from (payments for) other financing activities  

591,446

(78,448)

161,033

22,191

 Net cash (used in) generated from financing activities 

(2,605,658)

785,246

5,366,622

739,540

 Effect of foreign exchange rate changes on cash, cash
equivalents and restricted cash  

(20,050)

17,784

9,020

1,243

 Net (decrease) increase in cash, cash equivalents and
restricted cash 

(3,009,061)

(894)

3,686,585

508,024

 Cash, cash equivalents and restricted cash at
beginning of period 

5,098,987

2,081,967

2,081,073

286,780

 Cash, cash equivalents and restricted cash at end of
period 

2,089,926

2,081,073

5,767,658

794,804

 

 

 

View original content:https://www.prnewswire.com/news-releases/vnet-reports-unaudited-first-quarter-2025-financial-results-302466848.html

SOURCE VNET Group, Inc.

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Federated Hermes enters strategic alliance with Conduit Digital Holdings on tokenized money market fund in Asia Pacific

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Builds on over 50-years of money markets innovationFurther evidence of commitment to evolving Digital Assets Product and StrategyContinues growth of APAC product offering following recent announcement of Hong Kong expansion plans

PITTSBURGH, Sept. 1, 2026 /PRNewswire/ — Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today announced a strategic alliance with Singapore-based Conduit Digital Holdings Pte Ltd, part of the Conduit Group, to support the launch of a regulated tokenized distribution structure in APAC. Under this arrangement, the Conduit-managed investment fund will invest in the Federated Hermes Short-Term U.S. Prime Fund. Shares of the Conduit fund, which provide exposure to the underlying Federated Hermes fund, will then be tokenized and offered to institutional and wholesale investors, in APAC.

For over 50 years, Federated Hermes has been a leader in money market innovation with US$676.9 billion1 in money market assets under management. The Federated Hermes Short-Term U.S. Prime Fund is an actively managed, UCITS-authorized money market fund that aims to provide current income while maintaining daily liquidity and a stable principal value. It invests primarily in high-quality, U.S. dollar-denominated short-term debt instruments like commercial paper and certificates of deposit.

Federated Hermes’ strategic alliance with Conduit builds on a series of recent money market initiatives including: an alliance with UK-based Archax, an FCA-regulated digital securities exchange, to provide tokenized access to three UCITS money market funds; participation in an industry-wide, regulated initiative using mirrored tokenization to enhance transferability, collateral utility and real-time tracking of fund shares; and the launch of Federated Hermes’ first GENIUS Act-aligned money market fund in the US, designed to support stablecoin reserve use cases, with potential for future tokenization/tokenized share classes.

Federated Hermes’ approach to regulated digital assets, tokenization and next-generation investment infrastructure is led by Kevin Barr, who was appointed as Director, Digital Assets Product and Platform Strategy in May 2026.

This announcement represents Federated Hermes’ first digital assets initiative in APAC, demonstrating a continued commitment to the growing digital asset ecosystem in the market by enhancing visibility and supporting customer needs through its role as the underlying asset manager to this tokenized offering. Earlier this year, Federated Hermes announced plans to expand its Asia-Pacific footprint – which includes existing offices in Singapore, Tokyo and Sydney – with the opening of a Hong Kong office as part of a long-term growth strategy to deepen relationships with private banks, family offices, wealth intermediaries and institutional investors across the region.

1As of 30 June 2026

Kevin Barr, Director, Digital Assets Product and Platform Strategy at Federated Hermes comments: “We are excited to support innovative cash management solutions that better serve client needs, building on our legacy of innovation in the money market fund space. Vaults represent a compelling evolution in investment management, and we see a significant opportunity to bring our legacy of trust and fiduciary responsibility to this emerging space. We continue to explore on-chain distribution opportunities to enhance flexibility and accessibility, while preserving access to the stability and yield characteristics typically associated with money market funds. Today’s announcement reflects our continued commitment to building a larger digital asset presence, leveraging one of our core strengths in liquidity management.

Jim Roland, Head of Business Development, Asia Pacific and Australia at Federated Hermes further added: “Tokenized products represent a new and evolving way to engage with our clients, combining our investment expertise with Conduit’s MAS-regulated end-to-end tokenization capabilities and regional distribution network. Our customers in the APAC market are leading worldwide adoption of tokenization, making this strategically important region a highly receptive market the natural choice for the launch our latest digital assets initiative.”

Richard Schroder, Co-Founder and CEO of Conduit Digital Holdings commented: “We are delighted to work with Federated Hermes to have their U.S. Prime Fund as the anchor product of the CDH tokenized multicurrency money market offering. We are committed to unlocking the full utility of these tokens – moving beyond simple settlement to enable use as collateral, multicurrency management, and integration into AI agentic treasury management systems. This is where the real efficiency gains for our customers lie, and we are building the infrastructure to make that a reality.” 

Chris O’Meara, CEO of Conduit Asset Management and Chairman of the Conduit Group, added: “This collaboration with Federated Hermes marks a defining moment for the Conduit Group. Conduit Digital Holdings sits at the heart of our vision for the future of asset management in Asia-Pacific – bringing institutional-grade products onchain through regulated, MAS-licensed infrastructure. As investment manager to the fund, Conduit Asset Management is proud to combine our fiduciary oversight with the strength of an active manager with over 50 years of money market leadership. The Group is fully committed to Conduit Digital Holding’s growth, and this launch is only the first step in building the institutional access layer for tokenized real-world assets across the region.”

For further information, please contact:

Federated Hermes
press@federatedhermes.com 

Conduit
cdh@conduit.group

This is a corporate communication and is not to be construed as a solicitation or an offer to buy or sell any securities in the US. Shares of the fund have not been and will not be registered under the US Securities Act of 1933, as amended (the “1933 Act”) or the securities laws of any of the states of the US. The Shares may not be offered or sold directly or indirectly in the US or to or for the account or benefit of any US Person.

About Federated Hermes

Federated Hermes, Inc. (NYSE: FHI) is a global leader in active investment management, with $911.6 billion in assets under management, as of June 30, 2026. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com.

About Conduit Digital Holdings

Conduit Digital Holdings (CDH) is a specialized digital assets firm dedicated to the tokenization of Real-World Assets. By leveraging distributed ledger technology (DLT), we work with investment managers to provide investors with fractional access to high-value assets with enhanced liquidity, automated compliance, and real-time settlement. CDH was created by Conduit Group in Singapore, a leading independent investment and financial services firm.
Website: https://www.conduit.group/

View original content:https://www.prnewswire.com/news-releases/federated-hermes-enters-strategic-alliance-with-conduit-digital-holdings-on-tokenized-money-market-fund-in-asia-pacific-302866801.html

SOURCE Federated Hermes, Inc.

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In HelloNation, Endodontic Expert Dr. Allen Meier of Bloomington, IN, Discusses the Lifespan of a Root Canal

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BLOOMINGTON, Ind., Sept. 1, 2026 /PRNewswire/ — How long should a root canal last once it’s completed?

That question is answered in a HelloNation article featuring Dr. Allen Meier of the Endodontic Center of Southern Indiana. The feature explains how modern endodontic techniques, precise restorations, and good daily care work together to make root canal treatment one of the most durable solutions in modern dentistry.

Dr. Meier notes that a properly performed root canal can last for decades, and in many cases, for the rest of a patient’s life. The goal of every root canal is to remove infection inside the tooth, seal the canals completely, and restore the tooth so that bacteria cannot return. When infection is eliminated and the tooth structure is protected with a crown or filling, the long-term outlook is excellent.

As described in the HelloNation article, several factors influence the lifespan of a root canal. The condition of the tooth at the time of treatment is one of the most important. Teeth with minimal decay or cracking tend to last longer after treatment, while severely damaged teeth may require more extensive restoration. Even in complex cases, Dr. Meier explains that modern endodontic techniques often make it possible to preserve the natural tooth for many years.

Restoration plays a major role in determining how long a root canal lasts. Back teeth, which handle heavy chewing forces, almost always require a crown. A crown reinforces the remaining tooth structure, prevents fractures, and keeps the tooth stable during everyday use. Front teeth, which receive less biting pressure, may need only a filling if their structure remains strong. Dr. Meier emphasizes that a high-quality, well-fitted restoration is one of the most critical elements for long-term success.

Oral hygiene also influences the lifespan of a root canal. Even though the treated tooth no longer contains living pulp tissue, the surrounding gums and bone must stay healthy to support it. Daily brushing, flossing, and regular dental visits prevent decay around the edges of crowns or fillings. Without good hygiene, bacteria can enter through small gaps and cause reinfection, which can compromise the tooth. Maintaining proper care helps ensure that a root canal remains effective for years to come.

Bite alignment is another factor that affects longevity. When a treated tooth absorbs too much pressure due to grinding, clenching, or an uneven bite, it may develop microcracks or wear down prematurely. Using a nightguard can protect the teeth from grinding damage, while simple bite adjustments distribute chewing forces more evenly. Dr. Meier explains that these steps help preserve both the crown and the underlying tooth structure, further extending the lifespan of the root canal.

The durability of modern root canal treatment also depends on the quality of endodontic techniques. Today’s specialists may use lasers, specialized instruments, and potent disinfecting solutions to clean and shape the canals thoroughly. These innovations make it easier to eliminate bacteria and create a strong, lasting seal. As a result, success rates for root canal treatment are now higher than ever, with studies showing survival rates of over ninety percent when procedures and restorations are done correctly.

In some cases, however, complications may develop years after the original procedure. New decay, cracks, or minor leaks in the restoration can lead to reinfection. When this happens, retreatment may be possible. Retreatment involves reopening the tooth, removing the previous filling material, and cleaning the canals again before resealing them. Many patients experience full recovery after retreatment, allowing the tooth to remain functional for years afterward. If retreatment is not an option, minor surgical procedures like root end surgery can sometimes resolve lingering infection.

If a tooth cannot be saved despite retreatment or root-end surgery, replacement with a dental implant or bridge becomes the next step. Fortunately, this is uncommon when patients follow through with good oral hygiene and maintain their restorations. Dr. Meier emphasizes that most teeth that receive root canal therapy continue to function comfortably without further problems for decades.

When patients ask how long a root canal should last, the most accurate answer depends on a few key factors: the condition of the tooth, the quality of the restoration, and the level of daily care. With strong sealing, a durable crown, and regular dental maintenance, a root canal can easily last a lifetime. Regular checkups allow dentists to monitor the restoration and catch any early signs of wear, helping patients protect their investment and their natural tooth.

Root canal treatment remains one of the most reliable and long-lasting options in modern dentistry. Advances in endodontic techniques and restorative materials continue to improve outcomes, giving patients greater confidence in the durability of their care. As Dr. Meier explains, when a root canal is done correctly and supported by proper restoration, the treated tooth can remain healthy, functional, and pain-free for decades.

The article, How Long Should a Root Canal Last?, features insights from Dr. Allen Meier, Endodontic Expert of Bloomington, IN, in HelloNation.

About HelloNation
HelloNation is America’s Good News Network, a premier media platform built on the idea that good news travels faster when real people tell real stories. Through its community-focused publications and innovative “edvertising” approach, HelloNation delivers content that informs, inspires, and spotlights the leaders making a meaningful impact in their communities.

View original content to download multimedia:https://www.prnewswire.com/news-releases/in-hellonation-endodontic-expert-dr-allen-meier-of-bloomington-in-discusses-the-lifespan-of-a-root-canal-302866804.html

SOURCE HelloNation

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LG ELECTRONICS CANADA ANNOUNCES PRICING AND AVAILABILITY FOR ITS LATEST ULTRAGEAR MONITORS, GALLERY TV AND STANBYME 2 MAX

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New lineup introduces the world’s first native 1000Hz Full HD gaming monitor and 45-inch AI upscaling 5K2K OLED display, alongside a museum-inspired smart TV and a portable 4K personal screen, bringing next-generation display technology to every corner of the home.

News Summary

LG announces Canadian pricing and availability for its newest display lineup, built for competitive gaming, art-forward living and versatile everyday use.Lineup includes the world’s first Full HD 1080p gaming monitor with a native 1000Hz refresh rate, and an AI Upscaling 45-inch 5K2K OLED gaming monitor.Also part of the lineup is the new museum-inspired LG Gallery TV and the newest LG StanbyME 2 MAX, both seen at CES 2026.Products available on LG.ca, with pricing starting at $1,299.99 CAD for the LG UltraGear monitors, $1,399.99 CAD for the LG Gallery TV and $1,999.99 CAD for the LG StanbyME 2 Max.

TORONTO, Sept. 1, 2026 /CNW/ — LG Electronics Canada is announcing the Canadian pricing and availability for its latest consumer display lineup including the LG UltraGear G5 (25G590B), the world’s first Full HD 1080p native 1000Hz FHD gaming monitor1; the LG UltraGear evo GX9 (45GX950B), a 45-inch AI Upscaling OLED 5K2K gaming monitor; the LG Gallery TV (models: 55LX7BPUA, 65LX7BPUA); and the LG StanbyME 2 Max (model: 32LX6BWGA), a 32-inch 4K portable smart touchscreen display and LG’s biggest StanbyME to date.

Covering competitive gaming, art-forward living, and versatile everyday use, this lineup reflects LG’s continued commitment to bringing next-generation display technology to Canadians across every screen in the home.

LG UltraGear G5 (25G590B) – World’s First Full HD 1080p NATIVE 1000HZ FHD Gaming Monitor

LG’s newest UltraGear, the LG UltraGear G5 breaks new ground as the world’s first Full HD 1080p native 1000Hz FHD gaming monitor — purpose-built to deliver the speed, clarity, and precision that competitive players demand.

Purpose-Built for the Demands of Competitive Gaming
Built around the 25-inch format widely used in professional esports, the LG UltraGear 25G590B keeps key visual elements within the player’s natural field of view, supporting quicker situational awareness without the need for excessive eye movement. A minimalist stand with a compact base footprint maximizes mouse range of motion, while calibration indicators for height, swivel, and tilt make it straightforward to replicate a preferred setup precisely across practice and competition. Customizable UltraGear Emblem lighting rounds out the competitive aesthetic. On-device AI Scene Optimization intelligently adjusts picture settings by game genre, while AI Sound delivers an authentic spatial audio experience and clear in-game communication with compatible headsets.

Clarity and Control at Maximum Speed
Where Dual-Mode monitors require players to adjust settings to reach peak refresh rates, the 25G590B runs natively at 1000Hz in FHD — maintaining performance, clarity, and consistency without compromise. Motion Blur Reduction Pro2 sharpens fast-moving objects and makes them easier to track, helping players follow rapid lateral movement with less effort and identify targets more clearly during intense gameplay. Enhanced with ATW (Advanced True Wide) Polarizer technology, the IPS display helps reduce screen reflections while maintaining vibrant colour and contrast so gamers can enjoy clear, consistent visuals from virtually any angle, helping them stay focused on the game.

The LG UltraGear G5 (25G590B) is available at LG.ca. MSRP of $1,299.99 CAD.

LG UltraGear evo GX9 (45GX950B) – AI Upscaling 45-Inch 5K2K OLED Gaming Monitor

The LG UltraGear evo 45-inch GX9 (45GX950B) is an AI Upscaling 45-inch 5K2K OLED gaming monitor, combining cutting-edge OLED performance with AI upscaling for immersive ultrawide gameplay. Its 21:9 format with 800R curvature, 5K2K (5,120 x 2,160) resolution, and 125 PPI pixel density delivers a wide, panoramic view with the fine detail and depth that draws players deeper into every environment — while near-instant 0.03ms response time keeps fast-paced gameplay precise and responsive.

The LG UltraGear evo GX9 (45GX950B) brings the GX9 series to its most expansive scale yet. VESA DisplayHDR™ True Black 400 certification, DCI-P3 98.5% (Typ.) colour coverage, and a 1,500,000:1 contrast ratio bring depth and colour accuracy to every scene.

Adaptive Performance for Every Game and Play Style
On-device 5K2K AI Upscaling intelligently enhances content without a GPU upgrade, while AI Scene Optimization automatically adjusts display settings across games, movies, and more. AI Sound enhances voices and key audio cues. The AI Sound setting analyzes on-screen action and separates voices, sound effects, and background audio. AI Sound helps keep team comms clear while highlighting important gameplay cues–like approaching footsteps or nearby action–through speakers or connected headphones.

Dual Mode enables 165Hz at 5K2K for AAA gaming or 330Hz3 at WFHD for competitive play, both with a 0.03ms response time. AMD FreeSync™ Premium Pro and NVIDIA G-SYNC®4 Compatible support deliver smooth, responsive gameplay in either mode. Connectivity includes DisplayPort 2.1,5 USB-C with 90W Power Delivery, and dual HDMI 2.1 inputs and a 2-year OLED panel warranty.

The LG UltraGear evo 45-inch GX9 is available now at LG.ca. MSRP starting at $2,499.99 CAD.

LG Gallery TV(55LX7BPUA, 65LX7BPUA) – Where Premium Design Means Display Excellence

Unveiled at CES 2026, the LG Gallery TV transforms the television into a design object, presenting art with visual integrity through a gallery-inspired aesthetic purpose-built for art-forward interiors. Available in 55-inch and 65-inch screen sizes, it brings together premium 4K display performance, a flush-mount design, and art curation features developed in collaboration with museum professionals.

4K Picture and Sound for Art and Entertainment
Powered by LG’s MiniLED technology, the Gallery TV delivers stunning 4K visuals with Dynamic QNED Colour for rich, vibrant colour reproduction — ensuring every piece of content is rendered with accuracy and depth. AI Sound Pro uses intelligent scene analysis to automatically fine tune dialogue, cinema audio and music to create a deeper sound immersion.

A Gallery-Inspired Design, Developed with Museum Curators
Gallery Mode optimizes colour accuracy and brightness to reproduce the visual texture of original masterpieces — the result of direct collaboration with museum curators. A specialized screen minimizes reflections and automatically adjusts to shifting ambient light, ensuring displayed art looks its best at any time of day. The slim, flush-mount design integrates naturally into any interior, with customizable Attachable Gallery Frames — Snow White included, Warm Walnut sold separately — completing the gallery-at-home aesthetic.

LG Gallery+: A Personalized Home Gallery
LG Gallery+ serves as a comprehensive interior platform that transforms screens into a living, curated gallery when not in use as a television. Beyond the preset library, users can customize their environment by displaying memories from their own photo libraries. With built-in tracks and Bluetooth connectivity, LG Gallery+ also elevates the ambiance of a space by incorporating background music.

The LG Gallery TV is available on LG.ca in 55-inch and 65-inch models with an MSRP starting at $1,399.99 CAD.

LG StanbyME 2 Max (32LX6BWGA) – An Immersive Personal Screen with a Larger 32-Inch 4K Display

The LG StanbyME 2 Max, introduced at CES 2026, brings a bigger, more immersive6 personal screen to everyday living — combining portability, 4K resolution, and versatile design for use across any room or setting.

AI-Powered Picture and Sound
The Alpha 8 (α8) AI Processor Gen3 manages picture and sound simultaneously, detecting content type and automatically adjusting settings to match, while AI Brightness Control reacts to the ambient light in your space and automatically configures and adjusts your screen. Dolby Vision and Dolby Atmos7 deliver cinematic picture and spatial audio through the display’s side-firing speakers, with AI Sound Pro adding AI-enhanced clarity on top.

Designed Around Your Day, Not Your Room
The detachable screen mounts to a wheeled docking stand for effortless room-to-room movement and rotates freely between landscape and portrait orientations — adapting to movies, video calls, vertical browsing, and mobile-style apps with equal ease. A built-in battery provides over four hours of wireless playback8, rechargeable via the docking stand or dual USB-C ports. The StanbyME 2 Max functions as a full 32-inch touchscreen with access to LG Gallery+ — making its debut on the StanbyME lineup for the first time — LG Channels, Mood Maker and interactive board games, with Google Cast, Apple AirPlay, and Apple Home support for seamless screen mirroring.

The LG StanbyME 2 Max is available on LG.ca. MSRP starting at $1,999.99 CAD.

Availability

More information and where to purchase the LG UltraGear G5 (25G590B), 45-inch LG UltraGear evo GX9, the LG Gallery TV and LG StanbyME 2 Max is available on LG.ca.

About LG Electronics Canada Inc.
LG Electronics Canada, Inc. is the Canadian subsidiary of LG Electronics Inc., a global sales innovator in technology and manufacturing headquartered in Seoul, South Korea. LG Electronics Canada, with its head office in Toronto, Ontario, is comprised of three business units – Home Appliance Solution, Media Entertainment Solution, and Eco Solution. LG Electronics Canada is focused on delivering award-winning products known for blending style and technology. These innovative products include TVs, audio solutions and portable devices, home appliances, residential and commercial air solutions, computer monitors and laptops, and industry-leading OLED and LED digital display solutions. For more information, visit lg.ca.

_________________________

1 Based on published specifications of the gaming monitor segment as of May 2026.

2 AMD FreeSync Premium and NVIDIA G-SYNC compatibility are disabled when MBR Pro is enabled.

3 Requires graphics card that up to 330Hz refresh rate support (QHD). Actual refresh rates may vary depending on computer graphics specifications and configurations. Graphics card available separately.

4 NVIDIA® G-SYNC® Compatible supports variable refresh rate on GeForce GTX 10 Series and higher GPUs on Display Port, and GeForce RTX 30 Series and higher GPUs on HDMI 2.1.

5 Requires graphics card that supports DisplayPort 2.1 to achieve up to 330Hz refresh rate support. Actual refresh rates may vary depending on computer graphics specifications and configurations.

6 Compared to the 27inch StanbyME 2. 

7 Dolby, Dolby Vision, Dolby Atmos, and the double-D symbol are registered trademarks of Dolby Laboratories Licensing Corporation. Manufactured under license from Dolby Laboratories. Confidential unpublished works. Copyright © 2012–2026 Dolby Laboratories. All rights reserved. 

8 Battery life may vary depending on usage conditions, work connectivity and settings.

SOURCE LG Electronics Canada

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