GDS Holdings Limited (“GDS Holdings”, “GDS” or the “Company”)
(NASDAQ: GDS; HKEX: 9698), a leading developer and operator of
high-performance data centers in China and South East Asia, today
announced its unaudited financial results for the first quarter
ended March 31, 2023.
First Quarter 2023 Financial Highlights
- Net revenue increased by 7.4%
year-over-year (“Y-o-Y”) to RMB2,409.0 million (US$350.8 million)
in the first quarter of 2023 (1Q2022: RMB2,243.6 million).
- Service revenue increased by 7.4%
Y-o-Y to RMB2,408.4 million (US$350.7 million) in the first quarter
of 2023 (1Q2022: RMB2,243.5 million).
- Net loss was RMB474.6 million
(US$69.1 million) in the first quarter of 2023 (1Q2022: net loss of
RMB373.3 million).
- Adjusted EBITDA (non-GAAP)
increased by 7.5% Y-o-Y to RMB1,130.0 million (US$164.5 million) in
the first quarter of 2023 (1Q2022: RMB1,051.2 million). See
“Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP
results” elsewhere in this earnings release.
- Adjusted EBITDA margin (non-GAAP)
was 46.9% in the first quarter of 2023 (1Q2022: 46.9%).
First Quarter 2023 Operating
Highlights
- Total area committed and
pre-committed by customers increased by 2,895 square meters (“sqm”)
(net of churn of 8,774 sqm) in the first quarter of 2023, to reach
633,611 sqm as of March 31, 2023, an increase of 10.2% Y-o-Y (March
31, 2022: 575,009 sqm).
- Area in service increased by 2,730
sqm in the first quarter of 2023, to reach 518,517 sqm as of March
31, 2023, an increase of 5.3% Y-o-Y (March 31, 2022: 492,344
sqm).
- Commitment rate for area in service
was 93.9% as of March 31, 2023 (March 31, 2022: 95.3%).
- Area under construction was 196,858
sqm as of March 31, 2023 (March 31, 2022: 168,128 sqm).
- Pre-commitment rate for area under
construction was 74.4% as of March 31, 2023 (March 31, 2022:
63.1%).
- Area utilized by customers
increased by 6,085 sqm (net of churn of 6,488 sqm) in the first
quarter of 2023, to reach 376,632 sqm as of March 31, 2023, an
increase of 13.4% Y-o-Y (March 31, 2022: 332,019 sqm).
- Utilization rate for area in
service was 72.6% as of March 31, 2023 (March 31, 2022:
67.4%).
“Amidst ongoing macro challenges, we’ve shown
resilience in the first quarter of 2023,” said Mr. William Huang,
Chairman and Chief Executive Officer. “For our mainland China
business, we continue to prioritize faster backlog delivery and, at
the same time, to win the new business which is strategic to us and
has accelerated move-in schedule. Our customers are talking much
more positively and we are looking forward to a pick-up in the near
future. For our international business, we progressed by winning
the expansion commitment from the anchor customer in our Johor
site, which further proves our competitiveness in the region.”
“In the first quarter of 2023, we grew revenue
by 7.4% and adjusted EBITDA by 7.5% year-over-year,” said Mr. Dan
Newman, Chief Financial Officer. “Our adjusted EBITDA margin was
46.9% mainly due to lower utility cost during the winter season. On
the funding side, we successfully raised US$580 million through a
new convertible bond issuance which helps us keep a healthy cash
position.”
First Quarter 2023 Financial Results
Net revenue in the first quarter of 2023 was
RMB2,409.0 million (US$350.8 million), a 7.4% increase over the
first quarter of 2022 of RMB2,243.6 million and a 0.2% increase
over the fourth quarter of 2022 of RMB2,404.0 million. Service
revenue in the first quarter of 2023 was RMB2,408.4 million
(US$350.7 million), a 7.4% increase over the first quarter of 2022
of RMB2,243.5 million and a 0.2% increase over the fourth quarter
of 2022 of RMB2,404.0 million. The increase over the fourth quarter
of 2022 was mainly due to the full quarter revenue contribution
from additional area utilized in the fourth quarter of 2022 and the
contribution from 6,085 sqm of net additional area utilized in the
first quarter of 2023, mainly related to the Beijing 8 (“BJ8”),
Beijing 13 (“BJ13”) Phase 1, Langfang 9 (“LF9”), and Chongqing 1
(“CQ1”) Phase 1 data centers.
Cost of revenue in the first quarter of 2023 was
RMB1,917.3 million (US$279.2 million), a 9.1% increase over the
first quarter of 2022 of RMB1,757.2 million and a 0.1% increase
over the fourth quarter of 2022 of RMB1,916.0 million. The slight
increase over the fourth quarter of 2022 was mainly due to an
increase in depreciation and amortization resulting from more data
centers coming into service in recent quarters, partially offset by
seasonally lower utility cost.
Gross profit was RMB491.7 million (US$71.6
million) in the first quarter of 2023, a 1.1% increase over the
first quarter of 2022 of RMB486.4 million, and a 0.7% increase over
the fourth quarter of 2022 of RMB488.0 million.
Gross profit margin was 20.4% in the first
quarter of 2023, compared with 21.7% in the first quarter of 2022,
and 20.3% in the fourth quarter of 2022. The slight increase over
the fourth quarter of 2022 was mainly due to seasonally lower
utility cost, partially offset by an increase in depreciation and
amortization resulting from more data centers coming into service
in recent quarters.
Adjusted Gross Profit (“Adjusted GP”) (non-GAAP)
is defined as gross profit excluding depreciation and amortization,
operating lease cost relating to prepaid land use rights, accretion
expenses for asset retirement costs and share-based compensation
expenses allocated to cost of revenue. Adjusted GP was RMB1,259.4
million (US$183.4 million) in the first quarter of 2023, a 7.2%
increase over the first quarter of 2022 of RMB1,174.6 million and a
2.8% increase over the fourth quarter of 2022 of RMB1,224.7
million. See “Non-GAAP Disclosure” and “Reconciliations of GAAP and
non-GAAP results” elsewhere in this earnings release.
Adjusted GP margin (non-GAAP) was 52.3% in the
first quarter of 2023, compared with 52.4% in the first quarter of
2022, and 50.9% in the fourth quarter of 2022. The increase over
the fourth quarter of 2022 was mainly due to the seasonally lower
utility cost.
Selling and marketing expenses, excluding
share-based compensation expenses of RMB12.5 million (US$1.8
million), were RMB25.3 million (US$3.7 million) in the first
quarter of 2023, a 11.5% decrease from the first quarter of 2022 of
RMB28.6 million (excluding share-based compensation of RMB13.0
million) and a 2.1% increase from the fourth quarter of 2022 of
RMB24.8 million (excluding share-based compensation of RMB8.2
million). The increase over the fourth quarter of 2022 was mainly
due to a slight increase in marketing activities.
General and administrative expenses, excluding
share-based compensation expenses of RMB43.1 million (US$6.3
million), depreciation and amortization expenses of RMB110.7
million (US$16.1 million) and operating lease cost relating to
prepaid land use rights of RMB18.3 million (US$2.7 million), were
RMB117.4 million (US$17.1 million) in the first quarter of 2023, a
11.5% increase over the first quarter of 2022 of RMB105.3 million
(excluding share-based compensation expenses of RMB52.6 million,
depreciation and amortization expenses of RMB121.1 million and
operating lease cost relating to prepaid land use rights of RMB20.7
million) and a 25.7% decrease from the fourth quarter of 2022 of
RMB158.1 million (excluding share-based compensation of RMB5.5
million, depreciation and amortization expenses of RMB110.4
million, and operating lease cost relating to prepaid land use
rights of RMB22.1 million). The decrease over the fourth quarter of
2022 was mainly due to less professional fees incurred.
Research and development costs were RMB9.8
million (US$1.4 million) in the first quarter of 2023, compared
with RMB9.8 million in the first quarter 2022 and RMB10.0 million
in the fourth quarter of 2022.
Net interest expenses for the first quarter of
2023 were RMB484.4 million (US$70.5 million), a 6.8% increase over
the first quarter of 2022 of RMB453.5 million and a 1.6% increase
over the fourth quarter of 2022 of RMB476.8 million. The increase
over the fourth quarter of 2022 was mainly due to the new
convertible bond issued during the first quarter of 2023.
Foreign currency exchange loss for the first
quarter of 2023 was RMB7.0 million (US$1.0 million), compared with
a loss of RMB4.7 million in the first quarter of 2022 and a gain of
RMB4.7 million in the fourth quarter of 2022.
Others, net for the first quarter of 2023 was
RMB25.8 million (US$3.8 million), compared with RMB21.5 million in
the first quarter of 2022 and RMB31.0 million in the fourth quarter
of 2022.
Income tax expenses for the first quarter of
2023 was RMB163.6 million (US$23.8 million), compared with RMB72.0
million in the first quarter of 2022 and RMB78.0 million in the
fourth quarter of 2022. The increase over the fourth quarter of
2022 was mainly due to internal restructuring for the preparation
of transferring projects to the China Data Center Fund in the near
future.
Net loss in the first quarter of 2023 was
RMB474.6 million (US$69.1 million), compared with a net loss of
RMB373.3 million in the first quarter of 2022 and a net loss of
RMB177.9 million in the fourth quarter of 2022.
Adjusted EBITDA (non-GAAP) is defined as net
loss excluding net interest expenses, income tax expenses
(benefits), depreciation and amortization, operating lease cost
relating to prepaid land use rights, accretion expenses for asset
retirement costs, share-based compensation expenses, gain from
purchase price adjustment and impairment loss of long-lived assets.
Adjusted EBITDA was RMB1,130.0 million (US$164.5 million) in the
first quarter of 2023, a 7.5% increase over the first quarter of
2022 of RMB1,051.2 million and a 5.5% increase over the fourth
quarter of 2022 of RMB1,071.5 million.
Adjusted EBITDA margin (non-GAAP) was 46.9% in
the first quarter of 2023, compared with 46.9% in the first quarter
of 2022, and 44.6% in the fourth quarter of 2022. The increase over
the fourth quarter of 2022 was mainly due to the seasonally lower
utility cost and a lower level of general corporate expenses.
Basic and diluted loss per ordinary share in the
first quarter of 2023 was RMB0.33 (US$0.05), compared with RMB0.39
in the first quarter of 2022, and RMB0.13 in the fourth quarter of
2022.
Basic and diluted loss per American Depositary
Share (“ADS”) in the first quarter of 2023 was RMB2.67 (US$0.39),
compared with RMB3.15 in the first quarter of 2022, and RMB1.06 in
the fourth quarter of 2022. Each ADS represents eight Class A
ordinary shares.
Sales
Total area committed and pre-committed at the
end of the first quarter of 2023 was 633,611 sqm, compared with
575,009 sqm at the end of the first quarter of 2022 and 630,716 sqm
at the end of the fourth quarter of 2022, an increase of 10.2%
Y-o-Y and 0.5% quarter-over-quarter (“Q-o-Q”), respectively. In the
first quarter of 2023, gross additional total area committed was
11,669 sqm, including significant contributions from the Shanghai
18 (“SH18”) Phase 2 and Nusajaya 4 (“NTP4”) data centers. Net
additional total area committed was 2,895 sqm. The difference of
8,774 sqm was mainly due to a single customer which is redeploying
from our Beijing 9 (“BJ9”), Beijing 10 (“BJ10”) and Beijing 12
(“BJ12”) data centers, as the Company disclosed previously. This
customer has pre-committed for a similar amount of new capacity at
several of our data centers in Langfang, Hebei province, for
delivery later this year and next year.
Data Center Resources
Area in service at the end of the first quarter
of 2023 was 518,517 sqm, compared with 492,344 sqm at the end of
the first quarter of 2022 and 515,787 sqm at the end of the fourth
quarter of 2022, an increase of 5.3% Y-o-Y and 0.5% Q-o-Q. In the
first quarter of 2023, Beijing 14 (“BJ14”) Phase 2 and Shenzhen 10
(“SZ10”) data centers came into service.
Area under construction at the end of the first
quarter of 2023 was 196,858 sqm, compared with 168,128 sqm at the
end of the first quarter of 2022 and 192,713 sqm at the end of the
fourth quarter of 2022, an increase of 17.1% Y-o-Y and 2.2% Q-o-Q,
respectively. During the first quarter, construction commenced on
SH18 Phase 2 and NTP4 data centers.
- SH18 Phase 2 is part of the
Company’s multi-phase development at its Pujiang campus in the
Minhang District of Shanghai. SH18 Phase 2 has a net floor area of
4,572 sqm and is 100% pre-committed.
- NTP4 is the first data center being
constructed on the Company’s second land site at Nusajaya Tech
Park in Johor, Malaysia. NTP4 has a net floor area of 6,385 sqm and
is 100% pre-committed.
Commitment rate for area in service was 93.9% at
the end of the first quarter of 2023, compared with 95.3% at the
end of the first quarter of 2022 and 95.5% at the end of the fourth
quarter of 2022. Pre-commitment rate for area under construction
was 74.4% at the end of the first quarter of 2023, compared with
63.1% at the end of the first quarter of 2022 and 71.5% at the end
of the fourth quarter of 2022.
Area utilized at the end of the first quarter of
2023 was 376,632 sqm, compared with 332,019 sqm at the end of the
first quarter of 2022 and 370,547 sqm at the end of the fourth
quarter of 2022, an increase of 13.4% Y-o-Y and 1.6% Q-o-Q. Gross
additional area utilized was 12,573 sqm in the first quarter of
2023, which mainly came from additional area utilized in the BJ8,
BJ13 Phase 1, LF9, and CQ1 Phase 1 data centers. Net additional
area utilized was 6,085 sqm during the quarter. The difference of
6,488 sqm was mainly due to a single customer which is redeploying
from our BJ9, BJ10 and BJ12 data centers, as the Company previously
disclosed, before moving in to a similar amount of new capacity at
several of our data centers in Langfang, Hebei province with effect
from later this year and next year.
Utilization rate for area in service was 72.6%
at the end of the first quarter of 2023, compared with 67.4% at the
end of the first quarter of 2022 and 71.8% at the end of the fourth
quarter of 2022.
Completion of New Convertible Bond IssuanceOn
January 20, 2023, the Company closed its sale of US$580 million in
aggregate principal amount of 4.50% convertible senior notes due
2030 to various private equity funds and institutional investors,
including a sovereign wealth fund.
Update on China Data Center FundFollowing the
previously announced framework agreement with a sovereign wealth
fund (“Investor”) for the formation of a China Data Center Fund,
during the first quarter of 2023, the Company has signed a limited
partnership agreement for China Data Center Fund 1 (the “Fund”),
with 30% of capital commitment coming from GDS and 70% from the
Investor. Completion of the establishment of the Fund and the
injection of the first data center asset from GDS is subject to
execution of a Sales and Purchase Agreement and ancillary
documents, as well as regulatory approvals, and satisfaction of
various conditions.
Liquidity
As of March 31, 2023, cash was RMB10,241.3
million (US$1,491.3 million). Total short-term debt was RMB6,936.1
million (US$1,010.0 million), comprised of short-term borrowings
and the current portion of long-term borrowings of RMB4,429.3
million (US$645.0 million), the current portion of finance lease
and other financing obligations of RMB447.5 million (US$65.2
million) and the current portion of convertible bonds payable of
RMB2,059.2 million (US$299.9 million). Total long-term debt was
RMB39,884.5 million (US$5,807.6 million), comprised of long-term
borrowings (excluding current portion) of RMB23,528.0 million
(US$3,425.9 million), the non-current portion of convertible bonds
payable of RMB8,171.3 million (US$1,189.8 million) and the
non-current portion of finance lease and other financing
obligations of RMB8,185.3 million (US$1,191.9 million). During the
first quarter of 2023, the Company obtained new debt financing and
re-financing facilities of RMB1,319.4 million (US$192.1 million)
and further raised US$580 million from a convertible bond
issuance.
Business Outlook
The Company confirms the previously provided
guidance of total revenues for the year of 2023 of RMB9,940 –
RMB10,320 million, Adjusted EBITDA of RMB4,430 – RMB4,600 million
and capex of around RMB7,500 million remain unchanged.
This forecast reflects the Company’s preliminary
view on the current business situation and market conditions, which
are subject to change.
Conference Call
Management will hold a conference call at 8:00 a.m. U.S. Eastern
Time on May 25, 2023 (8:00 p.m. Beijing Time on May 25, 2023) to
discuss financial results and answer questions from investors and
analysts.
Participants should complete online registration using the link
provided below at least 15 minutes before the scheduled start time.
Upon registration, participants will receive the conference call
access information, including dial-in numbers, a personal PIN and
an e-mail with detailed instructions to join the conference
call.
Participant Online
Registration:https://register.vevent.com/register/BI24be0a8ed1e5453aa9561f8ee2b9d311
A live and archived webcast of the conference
call will be available on the Company's investor relations website
at investors.gds-services.com.
Non-GAAP Disclosure
Our management and board of directors use
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted GP and Adjusted
GP margin, which are non-GAAP financial measures, to evaluate our
operating performance, establish budgets and develop operational
goals for managing our business. We believe that the exclusion of
the income and expenses eliminated in calculating Adjusted EBITDA
and Adjusted GP can provide useful and supplemental measures of our
core operating performance. In particular, we believe that the use
of Adjusted EBITDA as a supplemental performance measure captures
the trend in our operating performance by excluding from our
operating results the impact of our capital structure (primarily
interest expense), asset base charges (primarily depreciation and
amortization, operating lease cost relating to prepaid land use
rights, accretion expenses for asset retirement costs and
impairment loss of long-lived assets), other non-cash expenses
(primarily share-based compensation expenses), and other income and
expenses which we believe are not reflective of our operating
performance, whereas the use of adjusted gross profit as a
supplemental performance measure captures the trend in gross profit
performance of our data centers in service by excluding from our
gross profit the impact of asset base charges (primarily
depreciation and amortization, operating lease cost relating to
prepaid land use rights and accretion expenses for asset retirement
costs) and other non-cash expenses (primarily share-based
compensation expenses) included in cost of revenue.
We note that depreciation and amortization is a
fixed cost which commences as soon as each data center enters
service. However, it usually takes several years for new data
centers to reach high levels of utilization and profitability. The
Company incurs significant depreciation and amortization costs for
its early stage data center assets. Accordingly, gross profit,
which is a measure of profitability after taking into account
depreciation and amortization, does not accurately reflect the
Company’s core operating performance.
We also present these non-GAAP measures because
we believe these non-GAAP measures are frequently used by
securities analysts, investors and other interested parties as
measures of the financial performance of companies in our
industry.
These non-GAAP financial measures are not
defined under U.S. GAAP and are not presented in accordance with
U.S. GAAP. These non-GAAP financial measures have limitations as
analytical tools, and when assessing our operating performance,
cash flows or our liquidity, investors should not consider them in
isolation, or as a substitute for gross profit, net income (loss),
cash flows provided by (used in) operating activities or other
consolidated statements of operations and cash flow data prepared
in accordance with U.S. GAAP. There are a number of limitations
related to the use of these non-GAAP financial measures instead of
their nearest GAAP equivalent. First, Adjusted EBITDA, Adjusted
EBITDA margin, Adjusted GP, and Adjusted GP margin are not
substitutes for gross profit, net income (loss), cash flows
provided by (used in) operating activities or other consolidated
statements of operation and cash flow data prepared in accordance
with U.S. GAAP. Second, other companies may calculate these
non-GAAP financial measures differently or may use other measures
to evaluate their performance, all of which could reduce the
usefulness of these non-GAAP financial measures as tools for
comparison. Finally, these non-GAAP financial measures do not
reflect the impact of net interest expenses, incomes tax benefits
(expenses), depreciation and amortization, operating lease cost
relating to prepaid land use rights, accretion expenses for asset
retirement costs, share-based compensation expenses, gain from
purchase price adjustment and impairment loss of long-lived assets,
each of which have been and may continue to be incurred in our
business.
We mitigate these limitations by reconciling the
non-GAAP financial measure to the most comparable U.S. GAAP
performance measure, all of which should be considered when
evaluating our performance.
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.
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 RMB6.8676
to US$1.00, the noon buying rate in effect on March 31, 2023 in the
H.10 statistical release of the Federal Reserve Board. The Company
makes no representation that the RMB or USD amounts referred could
be converted into USD or RMB, as the case may be, at any particular
rate or at all.
Statement Regarding Preliminary
Unaudited Financial Information
The unaudited financial information set out in
this earnings release 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 financial
information.
About GDS Holdings Limited
GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698)
is a leading developer and operator of high-performance data
centers in China and South East Asia. The Company’s facilities are
strategically located in primary economic hubs where demand for
high-performance data center services is concentrated. The Company
also builds, operates and transfers data centers at other locations
selected by its customers in order to fulfill their broader
requirements. The Company’s data centers have large net floor area,
high power capacity, density and efficiency, and multiple
redundancies across all critical systems. GDS is carrier and
cloud-neutral, which enables its customers to access the major
telecommunications networks, as well as the largest PRC and global
public clouds, which are hosted in many of its facilities. The
Company offers co-location and a suite of value-added services,
including managed hybrid cloud services through direct private
connection to leading public clouds, managed network services, and,
where required, the resale of public cloud services. The Company
has a 22-year track record of service delivery, successfully
fulfilling the requirements of some of the largest and most
demanding customers for outsourced data center services in China.
The Company’s customer base consists predominantly of hyperscale
cloud service providers, large internet companies, financial
institutions, telecommunications carriers, IT service providers,
and large domestic private sector and multinational
corporations.
Safe Harbor Statement
This announcement contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “aim,” “anticipate,” “believe,” “continue,”
“estimate,” “expect,” “future,” “guidance,” “intend,” “is/are
likely to,” “may,” “ongoing,” “plan,” “potential,” “target,”
“will,” and similar statements. Among other things, statements that
are not historical facts, including statements about GDS Holdings’
beliefs and expectations regarding the growth of its businesses and
its revenue for the full fiscal year, the business outlook and
quotations from management in this announcement, as well as GDS
Holdings’ strategic and operational plans, are or contain
forward-looking statements. GDS Holdings may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the “SEC”) on Forms 20-F and
6-K, in its current, interim and annual reports to shareholders, in
announcements, circulars or other publications made on the website
of the Stock Exchange of Hong Kong Limited (the “Hong Kong Stock
Exchange”), in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Forward-looking statements involve inherent risks
and uncertainties. A number of factors could cause GDS Holdings’
actual results or financial performance to differ materially from
those contained in any forward-looking statement, including but not
limited to the following: GDS Holdings’ goals and strategies; GDS
Holdings’ future business development, financial condition and
results of operations; the expected growth of the market for
high-performance data centers, data center solutions and related
services in China; GDS Holdings’ expectations regarding demand for
and market acceptance of its high-performance data centers, data
center solutions and related services; GDS Holdings’ expectations
regarding building, strengthening and maintaining its relationships
with new and existing customers; the continued adoption of cloud
computing and cloud service providers in China; risks and
uncertainties associated with increased investments in GDS
Holdings’ business and new data center initiatives; risks and
uncertainties associated with strategic acquisitions and
investments; GDS Holdings’ ability to maintain or grow its revenue
or business; fluctuations in GDS Holdings’ operating results;
changes in laws, regulations and regulatory environment that affect
GDS Holdings’ business operations; competition in GDS Holdings’
industry in China; security breaches; power outages; and
fluctuations in general economic and business conditions in China
and globally, the impact of the COVID outbreak, and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks, uncertainties or factors is
included in GDS Holdings’ filings with the SEC, including its
annual report on Form 20-F, and with the Hong Kong Stock Exchange.
All information provided in this press release is as of the date of
this press release and are based on assumptions that GDS Holdings
believes to be reasonable as of such date, and GDS Holdings does
not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
For investor and media inquiries, please
contact:
GDS Holdings LimitedLaura
ChenPhone: +86 (21) 2029-2203Email: ir@gds-services.com
The Piacente Group, Inc.Ross
WarnerPhone: +86 (10) 6508-0677Email: GDS@tpg-ir.com
Brandi PiacentePhone: +1 (212) 481-2050Email:
GDS@tpg-ir.com
GDS Holdings Limited
|
GDS HOLDINGS LIMITED |
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS |
|
(Amount in thousands of Renminbi ("RMB") and US dollars
("US$")) |
|
|
|
|
As ofDecember 31, 2022 |
As of March 31, 2023 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
Assets |
|
|
|
Current
assets |
|
|
|
|
Cash |
8,608,131 |
|
10,241,314 |
|
1,491,251 |
|
|
Accounts receivable, net of
allowance for doubtful accounts |
2,406,025 |
|
3,051,928 |
|
444,395 |
|
|
Value-added-tax (“VAT”)
recoverable |
164,743 |
|
169,240 |
|
24,643 |
|
|
Prepaid expenses and other
current assets |
772,177 |
|
955,382 |
|
139,115 |
|
|
Total current
assets |
11,951,076 |
|
14,417,864 |
|
2,099,404 |
|
|
|
|
|
|
Property and
equipment, net |
46,916,628 |
|
47,597,484 |
|
6,930,730 |
|
Prepaid land use
rights, net |
23,002 |
|
22,848 |
|
3,327 |
|
Operating lease
right-of-use assets |
5,633,946 |
|
5,631,331 |
|
819,985 |
|
Goodwill and
intangible assets, net |
8,124,214 |
|
8,105,958 |
|
1,180,319 |
|
Other non-current
assets |
2,165,088 |
|
2,358,387 |
|
343,407 |
|
|
Total
assets |
74,813,954 |
|
78,133,872 |
|
11,377,172 |
|
|
|
|
|
|
|
Liabilities, Mezzanine Equity and Equity |
|
|
|
Current
liabilities |
|
|
|
|
Short-term borrowings and
current portion of long-term borrowings |
3,623,967 |
|
4,429,349 |
|
644,963 |
|
|
Convertible bonds payable,
current |
2,083,829 |
|
2,059,248 |
|
299,850 |
|
|
Accounts payable |
3,092,884 |
|
2,640,711 |
|
384,517 |
|
|
Accrued expenses and other
payables |
1,173,091 |
|
1,390,332 |
|
202,448 |
|
|
Operating lease liabilities,
current |
175,749 |
|
182,009 |
|
26,503 |
|
|
Finance lease and other
financing obligations, current |
453,855 |
|
447,548 |
|
65,168 |
|
|
Total current
liabilities |
10,603,375 |
|
11,149,197 |
|
1,623,449 |
|
|
|
|
|
|
Long-term
borrowings, excluding current portion |
23,518,058 |
|
23,527,981 |
|
3,425,939 |
|
Convertible bonds
payable, non-current |
4,294,985 |
|
8,171,254 |
|
1,189,827 |
|
Operating lease
liabilities, non-current |
1,617,986 |
|
1,572,962 |
|
229,041 |
|
Finance lease and
other financing obligations, non-current |
8,916,266 |
|
8,185,250 |
|
1,191,865 |
|
Other long-term
liabilities |
1,678,629 |
|
1,707,787 |
|
248,673 |
|
|
Total
liabilities |
50,629,299 |
|
54,314,431 |
|
7,908,794 |
|
|
|
|
|
|
Mezzanine
equity |
|
|
|
|
Redeemable preferred
shares |
1,047,012 |
|
1,033,046 |
|
150,423 |
|
|
Total mezzanine
equity |
1,047,012 |
|
1,033,046 |
|
150,423 |
|
|
|
|
|
|
GDS Holdings
Limited shareholders' equity |
|
|
|
|
Ordinary shares |
516 |
|
516 |
|
75 |
|
|
Additional paid-in
capital |
29,048,598 |
|
29,124,023 |
|
4,240,786 |
|
|
Accumulated other
comprehensive loss |
(848,360 |
) |
(800,186 |
) |
(116,516 |
) |
|
Accumulated deficit |
(5,179,705 |
) |
(5,656,047 |
) |
(823,584 |
) |
|
Total GDS Holdings
Limited shareholders' equity |
23,021,049 |
|
22,668,306 |
|
3,300,761 |
|
Non-controlling
interests |
116,594 |
|
118,089 |
|
17,194 |
|
|
Total
equity |
23,137,643 |
|
22,786,395 |
|
3,317,955 |
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and equity |
74,813,954 |
|
78,133,872 |
|
11,377,172 |
|
|
|
|
|
|
|
|
|
|
GDS HOLDINGS LIMITED |
|
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
(Amount in thousands of Renminbi ("RMB") and US dollars
("US$") |
|
except for number of shares and per share
data) |
|
|
|
|
Three months ended |
|
|
March 31, 2022 |
December 31, 2022 |
March 31, 2023 |
|
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
Net
revenue |
|
|
|
|
Service
revenue |
2,243,535 |
|
2,404,034 |
|
2,408,449 |
|
350,697 |
|
Equipment
sales |
59 |
|
0 |
|
509 |
|
74 |
|
Total net
revenue |
2,243,594 |
|
2,404,034 |
|
2,408,958 |
|
350,771 |
|
Cost of
revenue |
(1,757,177 |
) |
(1,916,000 |
) |
(1,917,271 |
) |
(279,176 |
) |
Gross
profit |
486,417 |
|
488,034 |
|
491,687 |
|
71,595 |
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
Selling and marketing expenses |
(41,555 |
) |
(32,932 |
) |
(37,841 |
) |
(5,510 |
) |
|
General and administrative
expenses |
(299,712 |
) |
(296,067 |
) |
(289,496 |
) |
(42,154 |
) |
|
Research and development
expenses |
(9,767 |
) |
(9,986 |
) |
(9,785 |
) |
(1,425 |
) |
|
Impairment loss of long-lived
assets |
0 |
|
(12,759 |
) |
0 |
|
0 |
|
Income
from operations |
135,383 |
|
136,290 |
|
154,565 |
|
22,506 |
|
Other
income (expenses): |
|
|
|
|
|
Net interest expenses |
(453,481 |
) |
(476,780 |
) |
(484,427 |
) |
(70,538 |
) |
|
Foreign currency exchange
(loss) gain, net |
(4,720 |
) |
4,664 |
|
(6,975 |
) |
(1,016 |
) |
|
Gain from purchase price
adjustment |
0 |
|
205,000 |
|
0 |
|
0 |
|
|
Others, net |
21,533 |
|
30,970 |
|
25,793 |
|
3,756 |
|
Loss
before income taxes |
(301,285 |
) |
(99,856 |
) |
(311,044 |
) |
(45,292 |
) |
Income tax
expenses |
(71,968 |
) |
(78,039 |
) |
(163,568 |
) |
(23,817 |
) |
Net
loss |
(373,253 |
) |
(177,895 |
) |
(474,612 |
) |
(69,109 |
) |
Net income
attributable to non-controlling interests |
(173 |
) |
(2,851 |
) |
(1,730 |
) |
(252 |
) |
Net loss
attributable to redeemable non-controlling interests |
655 |
|
0 |
|
0 |
|
0 |
|
Net loss
attributable to GDS Holdings Limited shareholders |
(372,771 |
) |
(180,746 |
) |
(476,342 |
) |
(69,361 |
) |
Accretion to
redemption value of redeemable non-controlling interests |
(10,801 |
) |
0 |
|
0 |
|
0 |
|
Adjustment to the
redemption value of redeemable non-controlling interests |
(178,982 |
) |
0 |
|
0 |
|
0 |
|
Net loss
available to GDS Holdings Limited shareholders |
(562,554 |
) |
(180,746 |
) |
(476,342 |
) |
(69,361 |
) |
Cumulative
dividend on redeemable preferred shares |
(11,912 |
) |
(13,662 |
) |
(12,895 |
) |
(1,878 |
) |
Net loss
available to GDS Holdings Limited ordinary
shareholders |
(574,466 |
) |
(194,408 |
) |
(489,237 |
) |
(71,239 |
) |
|
|
|
|
|
|
Loss per
ordinary share |
|
|
|
|
Basic and
diluted |
(0.39 |
) |
(0.13 |
) |
(0.33 |
) |
(0.05 |
) |
|
|
|
|
|
|
Weighted
average number of ordinary share outstanding |
|
|
|
|
Basic and
diluted |
1,460,918,179 |
|
1,467,200,367 |
|
1,467,200,367 |
|
1,467,200,367 |
|
|
|
|
|
|
|
|
|
|
GDS HOLDINGS LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS |
(Amount in thousands of Renminbi ("RMB") and US dollars
("US$")) |
|
|
|
Three months ended |
|
|
March 31, 2022 |
December 31, 2022 |
March 31, 2023 |
|
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
Net loss |
(373,253 |
) |
(177,895 |
) |
(474,612 |
) |
(69,109 |
) |
Foreign currency
translation adjustments, net of nil tax |
(13,419 |
) |
127,949 |
|
47,939 |
|
6,980 |
|
Comprehensive loss |
(386,672 |
) |
(49,946 |
) |
(426,673 |
) |
(62,129 |
) |
Comprehensive
income attributable to non-controlling interests |
(84 |
) |
(3,602 |
) |
(1,495 |
) |
(218 |
) |
Comprehensive loss
attributable to redeemable non-controlling interests |
655 |
|
0 |
|
0 |
|
0 |
|
Comprehensive loss attributable to GDS Holdings Limited
shareholders |
(386,101 |
) |
(53,548 |
) |
(428,168 |
) |
(62,347 |
) |
|
|
|
|
|
|
|
|
|
GDS HOLDINGS LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Amount in thousands of Renminbi ("RMB") and US dollars
("US$")) |
|
|
Three months ended |
|
March 31, 2022 |
December 31, 2022 |
March 31, 2023 |
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
Net loss |
(373,253 |
) |
(177,895 |
) |
(474,612 |
) |
(69,109 |
) |
Depreciation and amortization |
781,756 |
|
820,443 |
|
843,359 |
|
122,803 |
|
Amortization of debt issuance cost and debt discount |
40,547 |
|
35,711 |
|
44,692 |
|
6,508 |
|
Share-based compensation expense |
92,977 |
|
38,375 |
|
84,865 |
|
12,357 |
|
Gain from purchase price adjustment |
0 |
|
(205,000 |
) |
0 |
|
0 |
|
Others |
4,501 |
|
(18,536 |
) |
(641 |
) |
(93 |
) |
Changes in operating assets
and liabilities |
(791,258 |
) |
414,805 |
|
(626,843 |
) |
(91,276 |
) |
Net cash (used in)
provided by operating activities |
(244,730 |
) |
907,903 |
|
(129,180 |
) |
(18,810 |
) |
|
|
|
|
|
Purchase of property and equipment and land use rights |
(2,161,747 |
) |
(2,135,231 |
) |
(2,042,103 |
) |
(297,354 |
) |
(Payments) receipts related to acquisitions and investments |
(2,770,277 |
) |
4,270 |
|
(151,255 |
) |
(22,024 |
) |
Net cash used in
investing activities |
(4,932,024 |
) |
(2,130,961 |
) |
(2,193,358 |
) |
(319,378 |
) |
|
|
|
|
|
Net proceeds from financing activities |
4,610,815 |
|
859,971 |
|
3,874,415 |
|
564,158 |
|
Net cash provided by
financing activities |
4,610,815 |
|
859,971 |
|
3,874,415 |
|
564,158 |
|
Effect of exchange rate
changes on cash and restricted cash |
(5,920 |
) |
(8,652 |
) |
24,942 |
|
3,632 |
|
|
|
|
|
|
Net (decrease) increase of
cash and restricted cash |
(571,859 |
) |
(371,739 |
) |
1,576,819 |
|
229,602 |
|
Cash and restricted cash at
beginning of period |
12,026,367 |
|
9,253,805 |
|
8,882,066 |
|
1,293,329 |
|
Reclassification as assets of
disposal group classified as held for sale |
0 |
|
0 |
|
(2,240 |
) |
(326 |
) |
Cash and restricted
cash at end of period |
11,454,508 |
|
8,882,066 |
|
10,456,645 |
|
1,522,605 |
|
|
|
|
|
|
|
|
|
|
GDS HOLDINGS LIMITED |
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
(Amount in thousands of Renminbi ("RMB") and US dollars
("US$") |
except for percentage data) |
|
|
|
Three months ended |
|
|
March 31, 2022 |
December 31, 2022 |
March 31, 2023 |
|
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
Gross
profit |
486,417 |
|
488,034 |
|
491,687 |
|
71,595 |
|
Depreciation and
amortization |
658,878 |
|
708,324 |
|
730,908 |
|
106,428 |
|
Operating lease
cost relating to prepaid land use rights |
1,918 |
|
4,344 |
|
8,356 |
|
1,217 |
|
Accretion expenses
for asset retirement costs |
1,602 |
|
1,578 |
|
1,726 |
|
251 |
|
Share-based
compensation expenses |
25,833 |
|
22,417 |
|
26,699 |
|
3,888 |
|
Adjusted
GP |
1,174,648 |
|
1,224,697 |
|
1,259,376 |
|
183,379 |
|
Adjusted
GP margin |
52.4 |
% |
50.9 |
% |
52.3 |
% |
52.3 |
% |
|
|
|
|
|
|
|
|
|
GDS HOLDINGS LIMITED |
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
(Amount in thousands of Renminbi ("RMB") and US dollars
("US$") |
except for percentage data) |
|
|
|
Three months ended |
|
|
March 31, 2022 |
December 31, 2022 |
March 31, 2023 |
|
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
|
Net
loss |
(373,253 |
) |
(177,895 |
) |
(474,612 |
) |
(69,109 |
) |
Net interest
expenses |
453,481 |
|
476,780 |
|
484,427 |
|
70,538 |
|
Income tax
expenses |
71,968 |
|
78,039 |
|
163,568 |
|
23,817 |
|
Depreciation and
amortization |
781,756 |
|
820,443 |
|
843,359 |
|
122,803 |
|
Operating lease
cost relating to prepaid land use rights |
22,625 |
|
26,401 |
|
26,704 |
|
3,888 |
|
Accretion expenses
for asset retirement costs |
1,602 |
|
1,578 |
|
1,726 |
|
251 |
|
Share-based
compensation expenses |
92,977 |
|
38,375 |
|
84,865 |
|
12,357 |
|
Gain from purchase
price adjustment |
0 |
|
(205,000 |
) |
0 |
|
0 |
|
Impairment loss of
long-lived assets |
0 |
|
12,759 |
|
0 |
|
0 |
|
Adjusted
EBITDA |
1,051,156 |
|
1,071,480 |
|
1,130,037 |
|
164,545 |
|
Adjusted
EBITDA margin |
46.9 |
% |
44.6 |
% |
46.9 |
% |
46.9 |
% |
|
|
|
|
|
|
|
|
|
GDS (NASDAQ:GDS)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
GDS (NASDAQ:GDS)
Gráfica de Acción Histórica
De May 2023 a May 2024