BEIJING, June 5, 2023
/PRNewswire/ -- Chindata Group, ("Chindata" or the "Company")
(Nasdaq: CD), an industry leader in carrier-neutral hyperscale
data center solutions, released its unaudited financial report
for the first quarter ended March 31,
2023. To supplement the Company's consolidated financial
results presented in accordance with U.S. GAAP, Chindata uses
adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and
adjusted net income margin as non-GAAP financial measures, which
are described further below.
Under the wave of digital economy and the explosion of computing
power, Chindata continues to consolidate its core competitiveness
in the energy and technology end, and continues to take the lead in
capturing the strategic opportunity of the new computing era.
Beating market consensus continuously, total capacity
expected to exceed 1,000MW in the next twelve months
Chindata's revenue in the first quarter of 2023 was RMB1,443.5 million, representing 56.8% year over
year ("YoY") growth. Net income in the first quarter of 2023 was
RMB253.0 million, representing 167.5%
YoY growth. Adjusted EBITDA in the first quarter of 2023 increased
by 64.6% YoY to RMB813.8 million,
beating market consensus for eleven straight quarters, with a
margin of 56.4%. The Company reiterated its 2023 revenue guidance
in the range of RMB5,880 million to
RMB6,080 million, with positive
outlook, and raised its 2023 adjusted EBITDA guidance to the range
of RMB3,100 million to RMB3,220 million, a 3.6% increase at mid-point
compared with the previous range.
Total capacity continued to grow at a steady pace. One new
under-construction project added, total capacity increased by 27MW
to 898MW by the end of the first quarter of 2023. In-service
capacity increased by 26MW to 639MW. By end of the first quarter of
2023, the Company had 33 projects in total. And the total
capacity is expected to exceed 1,000MW in the next twelve
months.
Redefine the industry "First principle" to build a win-win
model covering both supply and demand side
The company's business strategy is based on its understanding of
the "First principle" of the industry. Following the fundamental
logic of the industry, Chindata created a unique win-win model
covering both supply and demand side, leading to a significant
differentiated competition barrier, and continual improvement of
profitability and return profile of the Company.
On the demand side, the major clients of the Company are leading
players in internet, cloud computing and other high-tech business,
whose growth far exceeds the average level of the industry.
Meanwhile, on top of healthy demand and differentiated client
base, the Company's unique contract profile ensures long-term
visibility. More than 95% of customer contracts are of 10 years or
longer term, and the commitment ratio of the total capacity
remained high at 91% by the end of the first quarter of 2023.
On the supply side, Chindata's unique hyperscale solution is
characterized by having the majority of its data centers
strategically located in energy-abundant region with significant
cost advantages in terms of land and power. Together with such
deployment that ensures power sufficiency, the low latency and
scalability of its datacenter serve to accommodate the growing
demand from its clients.
Chindata has been operating in the key nodes of "East Data, West
Computation" in China and in the
emerging markets of Asia-Pacific
for a long time, and a good trend of two "growth poles" at home and
abroad has been formed. Chindata's overseas business has entered a
period of rapid growth, with 69MW of the 78MW newly contracted
capacity in the first quarter of 2023 coming from overseas. At the
end of the first quarter of 2023, the overseas operation capacity
was 75MW, representing an increase of 275% compared with the same
period last year, and the overseas utilized capacity was 49MW,
representing a year-on-year increase of 562%.
In China, Chindata's 220kV
self-built substation went into operation in the first quarter of
2023. The construction of the substation took only six months,
setting a new record in the data center industry. The
substation is capable of providing 360MW of power supply for
Chindata's Lingqiu campus in Shanxi
Province, the largest single datacenter campus in Asia
Pacific. In Gansu Province, Chindata also signed a framework
agreement with the local government and planned to build a 150MW
data center there in the next 2-4 years.
The launch of "East Data West Computation" and "Digital China"
initiatives, as well as the development of AI technologies such as
AI Generated Content ("AIGC"), machine learning and large language
model, which requires large volumes of data storage and computing
power, is expected to catalyze the iteration rate of digital
infrastructure and bring huge strategic opportunities.
The existing clients of the Chindata are actively investing
resources in AI related technologies and application, and the
Company is among the early ones in seizing such opportunity and
becoming a leading high power computing infrastructure solution
provider. Chindata has secured a contract of high density cabinet
deployment, a good demonstration of the appreciation of the
Company's capability in accommodating such high power computing
demand.
Management Quote
Mr. Huapeng Wu, Chief Executive Officer of Chindata Group,
commented, "We started the year of 2023 with another strong
quarterly business and financial performance. During the first
quarter of 2023, the Company continued to advance with our
highly-demanding project delivery schedule. Demand from existing
clients was healthy and ramp up was as scheduled. As a result, we
continued to grow our top and bottom line, with adjusted EBITDA
beating market consensus for eleven consecutive quarters. Notably
on the demand side, we hold a positive view on how AIGC related
development should drive industry demand in the long term, while
we've also noticed the recent effort of our existing client in
incorporating such new technology into their current product lines.
In the first quarter, we've secured certain contract for
high-density cabinet deployment, and we believe our unique supply
model is capable of accommodating such AIGC related demand in the
future. Such model is characterized by energy-abundant region
layout and in-house full stack capabilities as the fundamentals,
and actual practical experience in deploying high-density cabinet
in our existing campuses, with various cooling technologies suited
tested and applied. In our overseas business, the delivery of phase
2 and 3 of the over 100MW MY06 Johor project remained the key focus, and we
are devoting dedicated resources to ensure the timely delivery. We
remained confident with the capacity expansion target in the year
2023, and the healthy momentum in our cornerstone hyperscale
business continued to serve as solid fundamentals for our
consideration on further business diversification."
About Chindata Group
Chindata is a leading carrier-neutral hyperscale data center
solution provider in Asia-Pacific emerging markets and a
first mover in building next-generation hyperscale data centers
in China, India, and Southeast
Asia markets, focusing on the whole life cycle of facility
planning, investment, design, construction and operation of
ecosystem infrastructure in the IT industry. Chindata provides its
clients with business solutions in major countries and regions
in Asia-Pacific emerging markets, including asset-heavy
ecosystem chain services such as industrial bases, data centers and
network services.
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SOURCE Chindata Group