VNET Founder Sheng Chen Updates 13D Filing, Amends Ownership Details

TL;DR

**VNET founder Sheng Chen just updated his ownership stake, keep an eye on insider moves.**

AI Summary

Mr. Sheng Chen, founder of VNET Group, Inc., and his affiliated entities (Beacon Capital Group Inc., Fast Horse Technology Ltd, Gentao Capital Ltd, Personal Group Ltd, and Sunrise Corporate Holding Ltd.) have filed Amendment No. 7 to their Schedule 13D on February 2, 2024. This filing updates their beneficial ownership of VNET Group's Class A Ordinary Shares. This matters to investors because it provides current information on the holdings of a significant insider, which can signal confidence or concerns about the company's future direction.

Why It Matters

This filing provides transparency into the ownership stake of VNET Group's founder, Sheng Chen, and his associated entities, which can influence investor perception and the company's strategic decisions.

Risk Assessment

Risk Level: low — This is an amendment to an existing filing, indicating a routine update rather than a new, significant event that would drastically alter the company's risk profile.

Analyst Insight

Investors should note the continued involvement and updated ownership details of the company's founder, Sheng Chen, as insider holdings can sometimes precede strategic shifts or indicate long-term commitment. However, this filing itself does not suggest an immediate action.

Key Players & Entities

• Sheng Chen (person) — founder of VNET Group, Inc. and filing person
• VNET Group, Inc. (company) — the subject company whose Class A Ordinary Shares are being reported
• Beacon Capital Group Inc. (company) — a group member associated with Sheng Chen
• Fast Horse Technology Ltd (company) — a group member associated with Sheng Chen
• Gentao Capital Ltd (company) — a group member associated with Sheng Chen, also mentioned in the original filing
• Personal Group Ltd (company) — a group member associated with Sheng Chen
• Sunrise Corporate Holding Ltd. (company) — a group member associated with Sheng Chen
• US$0.00001 (dollar_amount) — par value per Class A Ordinary Share of VNET Group, Inc.

FAQ

Key Financial Figures

• $0.00001 — ) Class A Ordinary Shares, Par Value US$0.00001 Per Share (Title of Class of Securiti

Filing Documents

• tm245197d1_sc13da.htm (SC 13D/A) — 121KB
• tm245197d1_ex99-21.htm (EX-99.21) — 13KB
• 0001104659-24-010970.txt ( ) — 136KB

(a) of the Original 13D Filings is amended

Item 2(a) of the Original 13D Filings is amended and restated as follows: (a) Each of the following is hereinafter individually referred to as a “ Reporting Person ” and collectively as the “ Reporting Persons ”. This statement is filed on behalf of: (i) Mr. Sheng Chen; (ii) GenTao; (iii) Fast Horse; (iv) Sunrise; (v) Personal Group; and (vi) Beacon. This Schedule 13D is being filed jointly by the Reporting Persons pursuant to Rule 13d-1(k) promulgated by the SEC under Section 13 of the Act. The agreement among the Reporting Persons relating to the joint filing is attached hereto as Exhibit 99.21. Information with respect to each of the Reporting Persons is given solely by such Reporting Person, and no Reporting Person assumes responsibility for the accuracy or completeness of the information concerning the other Reporting Persons, except as otherwise provided in Rule 13d-1(k). Items 2(b), (c) and (f) are supplemented as follows: (b) (vi) The principal business address of Beacon is Vistra Corporate Services Centre, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands. (c), (f) (iii) Beacon is a business company organized in the British Virgin Islands, solely engaged in holding, distributing or effecting any sale of securities held by it. Mr. Sheng Chen wholly owns and controls all the outstanding securities of Beacon, and is the sole director of Beacon. Beacon has no executive officer. Item 3. Source and Amount of Funds or Other Consideration.

is supplemented by

Item 3 is supplemented by adding the following: On or around February 2, 2024, Beacon acquired 34,744,206 Class A Ordinary Shares from the vesting of an equal number of restricted share units (the “ PSU ”) granted to Mr. Sheng Chen under the 2020 Share Incentive Plan of the Issuer and pursuant to an award agreement between the Issuer and Mr. Sheng Chen. When the Class A Ordinary Shares were released to Beacon at Mr. Sheng Chen’s instruction in payment for the PSU, par value shall be deemed paid by Mr. Sheng Chen for each PSU by past services rendered by Mr. Sheng Chen. Beacon, to which the PSU were issued, is a company wholly owned by him. The PSUs are subject to a number of post-vesting conditions applicable to all grantees in the same round. Among others, at the Issuer’s request, Mr. Sheng Chen must return all Class A Ordinary Shares acquired from the vesting of such PSU to the Issuer at no cost if there is a termination of his service due to cause or voluntary leave (other than disability or retirement) prior to January 26, 2028 and at fair market value if there is a termination of his service without cause, in each case, subject to the discretion of the Compensation Committee otherwise. Further, prior to February 2, 2028, Mr. Sheng Chen may not transfer, sell or otherwise dispose of any vested PSUs or any Class A Ordinary Shares that he acquires upon the vesting of the PSUs without obtaining a written consent of the Compensation Committee. Mr. Sheng Chen has obtained a consent from the Compensation Committee to pledge these PSUs from time to time, if any, in the future. Item 4. Purpose of Transaction. The information set forth in Item 3 is hereby incorporated by reference in its entirety. Item 4 is supplemented by adding the following: Mr. Sheng Chen acquired the Class A Ordinary Shares as partial consideration for his continuing services to the Issuer as co-chairperson. Other Reporting Persons also hold Shares of the Issuer. Depen

is supplemented by adding the following

Item 7 is supplemented by adding the following: Exhibit No. Description 99.21 Joint Filing Agreement among the Reporting Persons 9 SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. Dated: February 6, 2024 Sheng Chen By /s/ Sheng Chen Sheng Chen GenTao Capital Limited By /s/ Sheng Chen Name: Sheng Chen Title: Director Fast Horse Technology Limited By /s/ Sheng Chen Name: Sheng Chen Title: Director Sunrise Corporate Holding Ltd. By /s/ Sheng Chen Name: Sheng Chen Title: Director Personal Group Limited By /s/ Sheng Chen Name: Sheng Chen Title: Director Beacon Capital Group Inc. By /s/ Sheng Chen Name: Sheng Chen Title: Director 10

View Full Filing

View this SC 13D/A filing on SEC EDGAR