Following the occurrence of a default by GenTao Capital Limited (the “Borrower”), a shareholder of VNET Group, Inc. (the “Company”) (NASDAQ: VNET), under a US$50,250,000 margin loan facility (the “Facility”), Bold Ally (Cayman) Limited (the “Lender”) has exercised its rights with respect to the collateral securing the Borrower’s repayment obligations under the Facility. A total of 48,515,634 Class A ordinary shares (in the form of 8,085,939 American depositary shares) and 27,757,992 Class B ordinary shares of the Company have been pledged to secure the Facility.

The Borrower is wholly owned by Mr. Chen Sheng, also known as Josh Sheng Chen (“Mr. Chen”), the Chairman of the Company’s Board of Directors. The Facility is full recourse to Mr. Chen.

Under the Facility, the Lender has the right to convert the pledged Class B ordinary shares into Class A ordinary shares and/or deposit such Class A ordinary shares in exchange for American depositary shares. There are no applicable lock-up restrictions in respect of the Class A ordinary shares or the American depositary shares of the Company (collectively, the “Securities”). Assuming that all Securities pledged under the Facility were sold, Mr. Chen’s voting interest in the Company would significantly decrease.

The Lender expects to effect sales of the Securities in one or more public market and/or private transactions, depending on market conditions. No assurance can be given how many sales will occur and the Lender will not have a commitment to purchase any Securities. No prospectus or other offering document will be used in connection with any sale of the Securities and the Company will not be involved with, or otherwise participate in, any such sale; sales will be made by the Lender solely on the basis of public information.

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