GDS Holdings Limited (“GDS Holdings”, “GDS”, “GDSH” 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, 2024.
First Quarter 2024 Financial Highlights
- Net revenue increased by 9.1%
year-over-year (“Y-o-Y”) to RMB2,627.4 million (US$363.9 million)
in the first quarter of 2024 (1Q2023: RMB2,409.0 million).
- Net loss was RMB344.9 million
(US$47.8 million) in the first quarter of 2024 (1Q2023: net loss of
RMB474.6 million).
- Adjusted EBITDA (non-GAAP)
increased by 4.7% Y-o-Y to RMB1,183.4 million (US$163.9 million) in
the first quarter of 2024 (1Q2023: RMB1,130.0 million). See
“Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP
results” elsewhere in this earnings release.
- Adjusted EBITDA margin (non-GAAP)
was 45.0% in the first quarter of 2024 (1Q2023: 46.9%).
First Quarter 2024 Operating Highlights
- Total area committed and
pre-committed increased by 5.4% Y-o-Y to 668,012 sqm as of March
31, 2024 (March 31, 2023: 633,611 sqm).
- Area in service increased by 12.5%
Y-o-Y to 583,229 sqm as of March 31, 2024 (March 31, 2023: 518,517
sqm).
- Commitment rate for area in service
was 92.5% as of March 31, 2024 (March 31, 2023: 93.9%).
- Area under construction was 172,537
sqm as of March 31, 2024 (March 31, 2023: 196,858 sqm).
- Pre-commitment rate for area under
construction was 74.4% as of March 31, 2024 (March 31, 2023:
74.4%).
- Area utilized increased by 16.0%
Y-o-Y to 436,875 sqm as of March 31, 2024 (March 31, 2023: 376,632
sqm).
- Utilization rate for area in
service was 74.9% as of March 31, 2024 (March 31, 2023:
72.6%).
“We continued to execute our business strategies
in the first quarter,” said Mr. William Huang, Chairman and CEO of
GDS. “In China, we delivered the backlog and selectively obtained
new bookings with faster move-in rates. On the international front,
we won strategic new orders and further strengthened our
development pipeline.”
“In the first quarter, our revenue grew by 9.1%
and Adjusted EBITDA by 4.7% year-over-year,” said Mr. Dan Newman,
Chief Financial Officer. “We upsized the private equity raise for
GDSI from US$587 million, as previously announced, to US$672
million, to accommodate acceleration of customer requirements,
which further demonstrates our ability to fund International
expansion on a standalone basis.”
First Quarter 2024 Financial Results
Net revenue in the first quarter of 2024 was
RMB2,627.4 million (US$363.9 million), a 9.1% increase over the
first quarter of 2023 of RMB2,409.0 million, and a 2.8% increase
over the fourth quarter of 2023 of RMB2,556.5 million. Service
revenue in the first quarter of 2024 was RMB2,627.4 million
(US$363.9 million), a 9.1% increase over the first quarter of 2023
of RMB2,408.4 million, and a 2.8% increase over the fourth quarter
of 2023 of RMB2,556.5 million. The increase was mainly due to full
quarter revenue contribution from additional area utilized in the
fourth quarter of 2023, and the contribution from 18,127 sqm of net
additional area utilized in the first quarter of 2024, comprising
36,891 sqm of gross additional area utilized mainly related to data
centers in Langfang for China1 and Johor for International2, less
12,550 sqm of area utilized in three Build-Operate-Transfer
(“B-O-T”) data centers which the Company plans to transfer to the
customer on an accelerated basis, and 6,214 sqm of churn.
Cost of revenue in the first quarter of 2024 was
RMB2,053.7 million (US$284.4 million), a 7.1% increase over the
first quarter of 2023 of RMB1,917.3 million, and a 3.3% decrease
over the fourth quarter of 2023 of RMB2,124.2 million. The decrease
over the fourth quarter of 2023 was mainly due to a decrease in
depreciation and amortization costs resulting from impaired
long-lived assets in the fourth quarter of 2023, and a decrease in
maintenance and other operating costs in cost of revenue.
Gross profit was RMB573.7 million (US$79.5
million) in the first quarter of 2024, a 16.7% increase over the
first quarter of 2023 of RMB491.7 million, and a 32.7% increase
over the fourth quarter of 2023 of RMB432.3 million.
Gross profit margin was 21.8% in the first
quarter of 2024, compared with 20.4% in the first quarter of 2023,
and 16.9% in the fourth quarter of 2023. The increase over the
fourth quarter of 2023 was mainly due to a decrease in depreciation
and amortization, maintenance and other operating costs in cost of
revenue.
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 RMB1,368.1
million (US$189.5 million) in the first quarter of 2024, an 8.6%
increase over the first quarter of 2023 of RMB1,259.4 million, and
a 7.6% increase over the fourth quarter of 2023 of RMB1,270.9
million. See “Non-GAAP Disclosure” and “Reconciliations of GAAP and
non-GAAP results” elsewhere in this earnings release.
Adjusted GP margin (non-GAAP) was 52.1% in the
first quarter of 2024, compared with 52.3% in the first quarter of
2023, and 49.7% in the fourth quarter of 2023. The increase over
the fourth quarter of 2023 was mainly due to a decrease in
maintenance and other operating costs in cost of revenue.
Selling and marketing expenses, excluding
share-based compensation expenses of RMB7.0 million (US$1.0
million), were RMB26.7 million (US$3.7 million) in the first
quarter of 2024, a 5.3% increase over the first quarter of 2023 of
RMB25.3 million (excluding share-based compensation of RMB12.5
million), and a 2.9% increase over the fourth quarter of 2023 of
RMB25.9 million (excluding share-based compensation of RMB9.3
million). The increase over the fourth quarter of 2023 was mainly
due to more marketing activities during the quarter.
General and administrative expenses, excluding
share-based compensation expenses of RMB41.0 million (US$5.7
million), depreciation and amortization expenses of RMB99.5 million
(US$13.8 million) and operating lease cost relating to prepaid land
use rights of RMB17.0 million (US$2.4 million), were RMB153.4
million (US$21.2 million) in the first quarter of 2024, a 30.6%
increase over the first quarter of 2023 of RMB117.4 million
(excluding share-based compensation expenses of RMB43.1 million,
depreciation and amortization expenses of RMB110.7 million and
operating lease cost relating to prepaid land use rights of RMB18.3
million), and a 13.5% increase over the fourth quarter of 2023 of
RMB135.1 million (excluding share-based compensation of RMB39.7
million, depreciation and amortization expenses of RMB117.3
million, and operating lease cost relating to prepaid land use
rights of RMB16.9 million). The increase over the fourth quarter of
2023 was mainly due to an increase in corporate expenses as the
international business expands.
Research and development costs were RMB10.0
million (US$1.4 million) in the first quarter of 2024, compared
with RMB9.8 million in the first quarter 2023 and RMB12.8 million
in the fourth quarter of 2023.
Net interest expenses for the first quarter of
2024 were RMB503.5 million (US$69.7 million), a 3.9% increase over
the first quarter of 2023 of RMB484.4 million, and a 4.4% increase
over the fourth quarter of 2023 of RMB482.4 million. The increase
over the fourth quarter of 2023 was mainly due to a higher level of
total borrowings.
Foreign currency exchange loss for the first
quarter of 2024 was RMB4.5 million (US$0.6 million), compared with
a loss of RMB7.0 million in the first quarter of 2023 and a gain of
RMB0.8 million in the fourth quarter of 2023.
Others, net for the first quarter of 2024 was
RMB6.2 million (US$0.9 million), compared with RMB25.8 million in
the first quarter of 2023 and RMB30.5 million in the fourth quarter
of 2023.
Income tax expenses for the first quarter of
2024 were RMB62.4 million (US$8.6 million), compared with income
tax expenses of RMB163.6 million in the first quarter of 2023 and
income tax benefits of RMB224.6 million in the fourth quarter of
2023.
Net loss in the first quarter of 2024 was
RMB344.9 million (US$47.8 million), compared with a net loss of
RMB474.6 million in the first quarter of 2023 and a net loss of
RMB3,164.6 million in the fourth quarter of 2023 mainly arising
from impairment loss.
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 losses of long-lived
assets. Adjusted EBITDA was RMB1,183.4 million (US$163.9 million)
in the first quarter of 2024, a 4.7% increase over the first
quarter of 2023 of RMB1,130.0 million, and a 4.5% increase over the
fourth quarter of 2023 of RMB1,132.6 million.
Adjusted EBITDA margin (non-GAAP) was 45.0% in
the first quarter of 2024, compared with 46.9% in the first quarter
of 2023, and 44.3% in the fourth quarter of 2023. The increase over
the fourth quarter of 2023 was mainly due to a decrease in
maintenance and other operating costs in cost of revenue, partially
offset by an increase in corporate expenses.
Basic and diluted loss per ordinary share in the
first quarter of 2024 was RMB0.24 (US$0.03), compared with RMB0.33
in the first quarter of 2023, and RMB2.16 in the fourth quarter of
2023.
Basic and diluted loss per American Depositary
Share (“ADS”) in the first quarter of 2024 was RMB1.96 (US$0.27),
compared with RMB2.67 in the first quarter of 2023, and RMB17.30 in
the fourth quarter of 2023. Each ADS represents eight Class A
ordinary shares.
Sales
Total area committed and pre-committed at the
end of the first quarter of 2024 was 668,012 sqm, compared with
633,611 sqm at the end of the first quarter of 2023 and 670,975 sqm
at the end of the fourth quarter of 2023, an increase of 5.4% Y-o-Y
and a decrease of 0.4% quarter-over-quarter (“Q-o-Q”),
respectively. In the first quarter of 2024, gross additional total
area committed was 16,808 sqm, with 9,474 sqm for China mainly
related to data centers in Shanghai, Langfang and Guangzhou, and
7,334 sqm for International related to NTP5 data center in Johor.
The net additional total area committed was negative 2,962 sqm. The
difference between gross and net addition of 19,770 sqm was due to
a decrease of 13,188 sqm of area committed related to three B-O-T
data centers which the Company plans to transfer to the customer on
an accelerated basis in order to enhance operating efficiency, and
6,582 sqm of contract terminations.
Data Center Resources
Area in service at the end of the first quarter
of 2024 was 583,229 sqm, compared with 518,517 sqm at the end of
the first quarter of 2023 and 572,555 sqm at the end of the fourth
quarter of 2023, an increase of 12.5% Y-o-Y and 1.9% Q-o-Q. In the
first quarter of 2024, net additional area in service for China was
1,001 sqm, comprising 14,189 sqm of new area in service mainly
related to data centers in Shanghai and Changshu, partially offset
by the planned transfer of 13,188 sqm of existing area in service
at three B-O-T data centers which the Company plans to transfer to
the customer on an accelerated basis. In the first quarter of 2024,
net additional area in service for International was 9,674 sqm,
contributed by NTP3 data center in Johor.
Area under construction at the end of the first
quarter of 2024 was 172,537 sqm, compared with 196,858 sqm at the
end of the first quarter of 2023 and 182,746 sqm at the end of the
fourth quarter of 2023, a decrease of 12.4% Y-o-Y and 5.6% Q-o-Q,
respectively. During the first quarter of 2024, construction
commenced on NTP5 data center in the Nusajaya Tech Park in Johor,
with a net floor area of 9,491 sqm and 77.3% commitment.
Commitment rate for area in service was 92.5% at
the end of the first quarter of 2024, compared with 93.9% at the
end of the first quarter of 2023 and 92.8% at the end of the fourth
quarter of 2023. Pre-commitment rate for area under construction
was 74.4% at the end of the first quarter of 2024, compared with
74.4% at the end of the first quarter of 2023 and 76.4% at the end
of the fourth quarter of 2023.
Move-In
Area utilized at the end of the first quarter of
2024 was 436,875 sqm, compared with 376,632 sqm at the end of the
first quarter of 2023 and 418,748 sqm at the end of the fourth
quarter of 2023, an increase of 16.0% Y-o-Y and 4.3% Q-o-Q. In the
first quarter of 2024, gross additional area utilized was 36,891
sqm, with 17,072 sqm for China mainly related to data centers in
Langfang and 19,819 sqm for International related to NTP2 and NTP3
data centers in Johor. The net additional area utilized was 18,127
sqm. The difference between gross and net addition of 18,764 sqm
was mainly due to 12,550 sqm of area utilized in three B-O-T data
centers which the Company plans to transfer to the customer on an
accelerated basis, and 6,214 sqm of churn.
Utilization rate for area in service was 74.9%
at the end of the first quarter of 2024, compared with 72.6% at the
end of the first quarter of 2023 and 73.1% at the end of the fourth
quarter of 2023.
Liquidity
As of March 31, 2024, cash was RMB7,641.4
million (US$1,058.3 million). Total short-term debt was RMB5,893.5
million (US$816.2 million), comprised of short-term borrowings and
the current portion of long-term borrowings of RMB4,304.3 million
(US$596.1 million) and the current portion of finance lease and
other financing obligations of RMB1,589.2 million (US$220.1
million). Total long-term debt was RMB42,207.0 million (US$5,845.6
million), comprised of long-term borrowings (excluding current
portion) of RMB26,806.8 million (US$3,712.7 million), convertible
bonds payable of RMB8,453.4 million (US$1,170.8 million) and the
non-current portion of finance lease and other financing
obligations of RMB6,946.9 million (US$962.1 million). During the
first quarter of 2024, the Company obtained new debt financing and
refinancing facilities of RMB4,294.0 million (US$594.7
million).
Recent Development
Upsize of Private Equity Capital Raise For GDS
International
On March 26, 2024, the Company announced that
its wholly-owned subsidiary, DigitalLand Holdings Limited (“GDS
International” or “GDSI”), the holding company for GDSH’s
international data center assets and operations, had entered into
definitive agreements for certain private equity investors to
subscribe for US$587 million of Series A convertible preferred
shares newly issued by GDSI. On May 13, 2024, the Company entered
into amendments to the definitive agreements for the Series A new
issue, including increasing the size of the new issue to US$672
million at the same pre-money equity valuation of US$750 million.
The Series A new issue will close on or around June 4, 2024,
subject to certain conditions. Post closing and on an as-converted
basis, GDSH will own approximately 52.7% of the equity interest of
GDSI in the form of ordinary shares. The remaining 47.3% equity
interest will be held in the form of Series A shares by the private
equity investors.
Business Outlook
The Company confirms that the previously
provided guidance of total revenues for the year of 2024 of
RMB11,340 – RMB11,760 million, Adjusted EBITDA of RMB4,950 –
RMB5,150 million and capex of around RMB6,500 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 22, 2024 (8:00 p.m. Beijing Time on
May 22, 2024) 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/BIc30621840efa480d81070e63577e9105
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 losses 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 losses 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. We do not provide forward-looking
guidance for certain financial data, such as depreciation,
amortization, accretion, share-based compensation and net income
(loss); the impact of such data and related adjustments can be
significant. As a result, we are not able to provide a
reconciliation of forward-looking U.S. GAAP to forward-looking
non-GAAP financial measures without unreasonable effort. Such
forward-looking non-GAAP financial measures include the forecast
for Adjusted EBITDA in the section captioned “Business Outlook” set
forth in this press release.
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 RMB7.2203
to US$1.00, the noon buying rate in effect on March 29, 2024 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 23-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 and South East Asia; 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 and South East Asia; 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 and
South East Asia; security breaches; power outages; and fluctuations
in general economic and business conditions in China, South East
Asia and globally, 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
Piacente Financial
CommunicationsRoss WarnerPhone: +86 (10) 6508-0677Email:
GDS@tpg-ir.com
Brandi PiacentePhone: +1 (212) 481-2050Email:
GDS@tpg-ir.com
GDS Holdings Limited
__________________________
1 Refers to GDSH’s assets and operations in
Mainland China, including third party data centers in Hong Kong and
Macau.2 Refers to GDSH’s assets and operations outside Mainland
China, excluding third party data centers in Hong Kong and
Macau.
GDS HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS(Amount in thousands of
Renminbi ("RMB") and US dollars ("US$")) |
|
|
|
|
As ofDecember 31,2023 |
As of March 31, 2024 |
|
RMB |
RMB |
US$ |
|
|
|
|
Assets |
|
|
|
Current assets |
|
|
|
Cash |
7,710,711 |
|
7,641,439 |
|
1,058,327 |
|
Accounts receivable, net of allowance for credit losses |
2,545,913 |
|
3,215,183 |
|
445,298 |
|
Value-added-tax (“VAT”) recoverable |
214,385 |
|
261,508 |
|
36,218 |
|
Prepaid expenses and other current assets |
512,644 |
|
984,569 |
|
136,361 |
|
Total current assets |
10,983,653 |
|
12,102,699 |
|
1,676,204 |
|
|
|
|
|
Non-current assets |
|
|
|
Property and equipment, net |
47,499,494 |
|
47,769,269 |
|
6,615,967 |
|
Prepaid land use rights, net |
22,388 |
|
22,234 |
|
3,079 |
|
Operating lease right-of-use assets |
5,436,288 |
|
5,454,977 |
|
755,506 |
|
Goodwill and intangible assets, net |
7,765,055 |
|
7,713,120 |
|
1,068,255 |
|
Other non-current assets |
2,739,812 |
|
2,651,738 |
|
367,261 |
|
Total non-current assets |
63,463,037 |
|
63,611,338 |
|
8,810,068 |
|
Total assets |
74,446,690 |
|
75,714,037 |
|
10,486,272 |
|
|
|
|
|
Liabilities, Mezzanine Equity and Equity |
|
|
|
Current liabilities |
|
|
|
Short-term borrowings and current portion of long-term
borrowings |
2,833,953 |
|
4,304,289 |
|
596,137 |
|
Accounts payable |
3,424,937 |
|
3,363,353 |
|
465,819 |
|
Accrued expenses and other payables |
1,318,336 |
|
1,297,951 |
|
179,764 |
|
Operating lease liabilities, current |
180,403 |
|
188,624 |
|
26,124 |
|
Finance lease and other financing obligations, current |
547,847 |
|
1,589,172 |
|
220,098 |
|
Total current liabilities |
8,305,476 |
|
10,743,389 |
|
1,487,942 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Long-term borrowings, excluding current portion |
26,706,256 |
|
26,806,770 |
|
3,712,695 |
|
Convertible bonds payable |
8,434,766 |
|
8,453,350 |
|
1,170,775 |
|
Operating lease liabilities, non-current |
1,395,981 |
|
1,372,415 |
|
190,077 |
|
Finance lease and other financing obligations, non-current |
7,894,185 |
|
6,946,898 |
|
962,134 |
|
Other long-term liabilities |
1,586,223 |
|
1,600,155 |
|
221,619 |
|
Total non-current liabilities |
46,017,411 |
|
45,179,588 |
|
6,257,300 |
|
Total liabilities |
54,322,887 |
|
55,922,977 |
|
7,745,242 |
|
|
|
|
|
Mezzanine equity |
|
|
|
Redeemable preferred shares |
1,064,766 |
|
1,066,615 |
|
147,724 |
|
Total mezzanine equity |
1,064,766 |
|
1,066,615 |
|
147,724 |
|
|
|
|
|
GDS Holdings Limited
shareholders' equity |
|
|
|
Ordinary shares |
516 |
|
527 |
|
73 |
|
Additional paid-in capital |
29,337,095 |
|
29,403,448 |
|
4,072,331 |
|
Accumulated other comprehensive loss |
(974,393 |
) |
(1,029,619 |
) |
(142,601 |
) |
Accumulated deficit |
(9,469,758 |
) |
(9,815,585 |
) |
(1,359,443 |
) |
Total GDS Holdings Limited shareholders'
equity |
18,893,460 |
|
18,558,771 |
|
2,570,360 |
|
Non-controlling interests |
165,577 |
|
165,674 |
|
22,946 |
|
Total equity |
19,059,037 |
|
18,724,445 |
|
2,593,306 |
|
|
|
|
|
Total liabilities, mezzanine equity and
equity |
74,446,690 |
|
75,714,037 |
|
10,486,272 |
|
|
GDS HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(Amount in
thousands of Renminbi ("RMB") and US dollars
("US$")except for number of shares and per share
data) |
|
|
|
Three months ended |
|
March 31, 2023 |
December 31, 2023 |
March 31, 2024 |
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
Net
revenue |
|
|
|
|
Service revenue |
2,408,449 |
|
2,556,490 |
|
2,627,367 |
|
363,886 |
|
Equipment sales |
509 |
|
0 |
|
0 |
|
0 |
|
Total net
revenue |
2,408,958 |
|
2,556,490 |
|
2,627,367 |
|
363,886 |
|
Cost of revenue |
(1,917,271 |
) |
(2,124,173 |
) |
(2,053,693 |
) |
(284,433 |
) |
Gross
profit |
491,687 |
|
432,317 |
|
573,674 |
|
79,453 |
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
Selling and marketing expenses |
(37,841 |
) |
(35,208 |
) |
(33,628 |
) |
(4,657 |
) |
General and administrative expenses |
(289,496 |
) |
(309,077 |
) |
(310,835 |
) |
(43,050 |
) |
Research and development expenses |
(9,785 |
) |
(12,800 |
) |
(9,980 |
) |
(1,382 |
) |
Impairment losses of long-lived assets |
0 |
|
(3,013,416 |
) |
0 |
|
0 |
|
Income (loss) from
operations |
154,565 |
|
(2,938,184 |
) |
219,231 |
|
30,364 |
|
Other income
(expenses): |
|
|
|
|
Net interest expenses |
(484,427 |
) |
(482,378 |
) |
(503,476 |
) |
(69,731 |
) |
Foreign currency exchange (loss) gain, net |
(6,975 |
) |
847 |
|
(4,527 |
) |
(627 |
) |
Others, net |
25,793 |
|
30,519 |
|
6,234 |
|
863 |
|
Loss before income
taxes |
(311,044 |
) |
(3,389,196 |
) |
(282,538 |
) |
(39,131 |
) |
Income tax (expenses)
benefits |
(163,568 |
) |
224,552 |
|
(62,393 |
) |
(8,641 |
) |
Net loss |
(474,612 |
) |
(3,164,644 |
) |
(344,931 |
) |
(47,772 |
) |
Net income attributable to
non-controlling interests |
(1,730 |
) |
(1,310 |
) |
(896 |
) |
(124 |
) |
Net loss attributable
to GDS Holdings Limited shareholders |
(476,342 |
) |
(3,165,954 |
) |
(345,827 |
) |
(47,896 |
) |
Cumulative dividend on
redeemable preferred shares |
(12,895 |
) |
(13,679 |
) |
(13,458 |
) |
(1,864 |
) |
Net loss available to
GDS Holdings Limited ordinary shareholders |
(489,237 |
) |
(3,179,633 |
) |
(359,285 |
) |
(49,760 |
) |
|
|
|
|
|
Loss per ordinary
share |
|
|
|
|
Basic and diluted |
(0.33 |
) |
(2.16 |
) |
(0.24 |
) |
(0.03 |
) |
|
|
|
|
|
Weighted average
number of ordinary share outstanding |
|
|
|
|
Basic and diluted |
1,467,200,367 |
|
1,469,982,015 |
|
1,469,982,015 |
|
1,469,982,015 |
|
|
GDS HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS(Amount in thousands of Renminbi ("RMB") and
US dollars ("US$")) |
|
|
|
Three months ended |
|
March 31, 2023 |
December 31, 2023 |
March 31, 2024 |
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
Net loss |
(474,612 |
) |
(3,164,644 |
) |
(344,931 |
) |
(47,772 |
) |
Foreign currency translation
adjustments, net of nil tax |
47,939 |
|
117,674 |
|
(56,025 |
) |
(7,759 |
) |
Comprehensive
loss |
(426,673 |
) |
(3,046,970 |
) |
(400,956 |
) |
(55,531 |
) |
Comprehensive income
attributable to non-controlling interests |
(1,495 |
) |
(1,678 |
) |
(97 |
) |
(13 |
) |
Comprehensive loss
attributable to GDS Holdings Limited shareholders |
(428,168 |
) |
(3,048,648 |
) |
(401,053 |
) |
(55,544 |
) |
|
GDS HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(Amount in
thousands of Renminbi ("RMB") and US dollars ("US$")) |
|
|
|
Three months ended |
|
March 31, 2023 |
December 31, 2023 |
March 31, 2024 |
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
Net loss |
(474,612 |
) |
(3,164,644 |
) |
(344,931 |
) |
(47,772 |
) |
Depreciation and amortization |
843,359 |
|
916,135 |
|
856,739 |
|
118,657 |
|
Amortization of debt issuance cost and debt discount |
44,692 |
|
20,310 |
|
38,562 |
|
5,341 |
|
Share-based compensation expense |
84,865 |
|
80,765 |
|
76,646 |
|
10,615 |
|
Impairment losses of long-lived assets |
0 |
|
3,013,416 |
|
0 |
|
0 |
|
Others |
(641 |
) |
(202,342 |
) |
12,227 |
|
1,693 |
|
Changes in operating assets
and liabilities |
(626,843 |
) |
285,750 |
|
(764,215 |
) |
(105,842 |
) |
Net cash (used in)
provided by operating activities |
(129,180 |
) |
949,390 |
|
(124,972 |
) |
(17,308 |
) |
|
|
|
|
|
Purchase of property and equipment and land use rights |
(2,042,103 |
) |
(1,067,581 |
) |
(1,595,107 |
) |
(220,921 |
) |
Payments related to acquisitions and investments |
(151,255 |
) |
(85,925 |
) |
0 |
|
0 |
|
Net cash used in
investing activities |
(2,193,358 |
) |
(1,153,506 |
) |
(1,595,107 |
) |
(220,921 |
) |
|
|
|
|
|
Net proceeds from financing activities |
3,874,415 |
|
376,895 |
|
1,621,969 |
|
224,640 |
|
Net cash provided by
financing activities |
3,874,415 |
|
376,895 |
|
1,621,969 |
|
224,640 |
|
Effect of exchange rate
changes on cash and restricted cash |
24,942 |
|
4,705 |
|
(9,909 |
) |
(1,372 |
) |
|
|
|
|
|
Net increase (decrease) of
cash and restricted cash |
1,576,819 |
|
177,484 |
|
(108,019 |
) |
(14,961 |
) |
Cash and restricted cash at
beginning of period |
8,882,066 |
|
7,740,395 |
|
7,917,932 |
|
1,096,621 |
|
Reclassification as assets of
disposal group classified as held for sale |
(2,240 |
) |
53 |
|
0 |
|
0 |
|
Cash and restricted
cash at end of period |
10,456,645 |
|
7,917,932 |
|
7,809,913 |
|
1,081,660 |
|
|
GDS HOLDINGS LIMITEDRECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS(Amount in thousands of
Renminbi ("RMB") and US dollars ("US$")except for
percentage data) |
|
|
|
Three months ended |
|
March 31, 2023 |
December 31, 2023 |
March 31, 2024 |
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
Gross profit |
491,687 |
|
432,317 |
|
573,674 |
|
79,453 |
|
Depreciation and
amortization |
730,908 |
|
797,284 |
|
755,960 |
|
104,699 |
|
Operating lease cost relating
to prepaid land use rights |
8,356 |
|
10,615 |
|
10,634 |
|
1,473 |
|
Accretion expenses for asset
retirement costs |
1,726 |
|
1,640 |
|
1,488 |
|
206 |
|
Share-based compensation
expenses |
26,699 |
|
29,066 |
|
26,324 |
|
3,645 |
|
Adjusted
GP |
1,259,376 |
|
1,270,922 |
|
1,368,080 |
|
189,476 |
|
Adjusted GP
margin |
52.3 |
% |
49.7 |
% |
52.1 |
% |
52.1 |
% |
|
GDS HOLDINGS LIMITEDRECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS(Amount in thousands of
Renminbi ("RMB") and US dollars ("US$")except for
percentage data) |
|
|
|
Three months ended |
|
March 31, 2023 |
December 31, 2023 |
March 31, 2024 |
|
RMB |
RMB |
RMB |
US$ |
|
|
|
|
|
Net loss |
(474,612 |
) |
(3,164,644 |
) |
(344,931 |
) |
(47,772 |
) |
Net interest expenses |
484,427 |
|
482,378 |
|
503,476 |
|
69,731 |
|
Income tax expenses
(benefits) |
163,568 |
|
(224,552 |
) |
62,393 |
|
8,641 |
|
Depreciation and
amortization |
843,359 |
|
916,135 |
|
856,739 |
|
118,657 |
|
Operating lease cost relating
to prepaid land use rights |
26,704 |
|
27,494 |
|
27,603 |
|
3,823 |
|
Accretion expenses for asset
retirement costs |
1,726 |
|
1,640 |
|
1,488 |
|
206 |
|
Share-based compensation
expenses |
84,865 |
|
80,765 |
|
76,646 |
|
10,615 |
|
Impairment losses of
long-lived assets |
0 |
|
3,013,416 |
|
0 |
|
0 |
|
Adjusted
EBITDA |
1,130,037 |
|
1,132,632 |
|
1,183,414 |
|
163,901 |
|
Adjusted EBITDA
margin |
46.9 |
% |
44.3 |
% |
45.0 |
% |
45.0 |
% |
GDS (NASDAQ:GDS)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
GDS (NASDAQ:GDS)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024