Gds Holdings Ltd. · HKEX:9698
Gds — Q1 2025 Earnings Presentation
41 slides from Gds's earnings presentation, May 20, 2025
Slide 1: 1Q25 Earnings Call
1Q25 Earnings Call 20 May 2025 NASDAQ: GDS HKEX: 9698 © GDS 2016 0
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such a
Slide 3: Business Strategy & Performance Highlights
Business Strategy & Performance Highlights William Huang, Chairman & CEO © GDS 2016
Slide 4: GDS 1Q25 Highlights
GDS 1Q25 HIGHLIGHTS Customer Commitments • New custome r co mmitme nts (net) of +19,564 sqm • Total area co mmitted incre ased by 6.7% y/y to 64 9,561 sqm Customer Move-In • Addition al area utili zed (net) of +9,330 sqm • Total area utili zed o f 46 2,423 sqm, +14.6% y/y, and utilization rate of 75
Slide 5: Gross Additional Area Utilized (Organic Tier 1 Only)
Gross Additional Area Utilized (Organic Tier 1 Only) (1) By Quarter (Sqm) By Year (Sqm) 25,647 78,968 20,065 20,732 60,284 17,032 16,225 48,739 33,860 20,732 1Q24 2Q24 3Q24 4Q24 1Q25 FY2 1 FY2 2 FY2 3 FY2 4 1Q25 Notes : 1. Exc ludes B-O-T and acqui si ti ons. © GDS 2016 4
Slide 6: Net Additional Area Utilized
Net Additional Area Utilized By Quarter (Sqm) By Year (Sqm) 1 Q 24 2 Q 24 3 Q 24 4 Q 24 1 Q 25 FY 2 1 FY 2 2 FY 2 3 FY 2 4 1 Q 25 O rga nic Ti er 1 (G ros s ) 1 7, 03 2 2 0, 06 5 2 5, 64 7 1 6, 22 5 2 0, 73 2 O rga nic Ti er 1 (G ros s ) 6 0, 28 4 3 3, 86 0 4 8, 73 9 7 8, 96 8 2 0, 73 2 Ch u rn ( 6,
Slide 7: Backlog Delivery
Backlog Delivery Total Backlog Backlog Delivery Schedule Backlog For Area In Ser vice Backlog For Area Under Construction 187,138 ~40% 234,185 228,787 213,640 187,138 176,904 95,821 106,613 111,834 ~35% 65,858 94,637 138,364 ~25% 122,174 111,045 101,806 92,501 YE21 YE22 YE23 YE24 1Q25 Backlog At 1Q2
Slide 8: Gross Additional Area Committed (Organic Tier 1 Only)
Gross Additional Area Committed (Organic Tier 1 Only) (1) By Quarter (Sqm) By Year (Sqm) 41,256 91,277 52,175 48,802 49,452 20,913 41,256 9,474 9,678 9,387 1Q24 2Q24 3Q24 4Q24 1Q25 FY2 1 FY2 2 FY2 3 FY2 4 1Q25 Notes : 1. Exc ludes B-O-T and acqui si ti ons. © GDS 2016 7
Slide 9: Net Additional Area Committed
Net Additional Area Committed By Quarter (Sqm) By Year (Sqm) 1 Q 24 2 Q 24 3 Q 24 4 Q 24 1 Q 25 FY 2 1 FY 2 2 FY 2 3 FY 2 4 1 Q 25 O rga nic Ti er 1 (G ros s ) 9 ,4 74 9 ,6 78 2 0, 91 3 9 ,3 87 4 1, 25 6 O r ga n ic Ti e r 1 ( G r oss ) 9 1, 27 7 5 2, 17 5 4 8, 80 2 4 9, 45 2 4 1, 25 6 Ch u rn ( 6,
Slide 10: 1Q25 Hyperscale New Orders
1Q25 Hyperscale New Orders LF20 / LF21 – 20,030 sqm / 75.8 MW CS3 Phase 2 / CS4 – 20,088 sqm / 75.8 MW © GDS 2016 9
Slide 11: Capacity Expansion
Capacity Expansion Increase In Capacity In Service (Sqm) Capacity Overview At 1Q25 (Sqm) Additional Capacity In Service Additional Capacity To Deliver (1) Capacity In Sqm In MW 153,107 In Service 610,685 1,313 Under Construction 132,208 369 91,412 78,419 Total Capacity 742,893 1,682 (1) 81,907 Held
Slide 12: DayOne – Operation Updates
DayOne – Operation Updates Total IT Power Committed (MW) Total IT Power Utilized (MW) 143 537 121 467 103 431 101 388 74 182 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Notes : 1. Exc ludi ng 3rd party data centers . © GDS 2016 11
Slide 13: Financial & Operating Review
Financial & Operating Review Dan Newman, CFO © GDS 2016
Slide 14: 1Q25 P&L Analysis
1Q25 P&L Analysis Quarterly Financial Review Rm b‘0 0 0 (Un le ss In dic at e d) 1Q 24 4Q 24 1Q 25 Y/Y Q/Q Tota l Net R ev e nue 2,432,234 2,690,662 2,723,158 12.0% 1.2% Co st of Re ven u e (1,911 ,03 1) (2,112 ,54 5) (2,078 ,33 3) 8.8% (1.6% ) A dd B a ck N on -Ca sh Ite ms (1 ) 748 ,92 7 818 ,57 6
Slide 15: Move-In & MSR By Quarter
Move-In & MSR By Quarter Net Additional Area Utilized (Sqm) MSR (Rmb / Sqm / Month) 18,678 (1) 2,088 16,366 2,036 2,034 2,011 1,983 14,440 9,330 (1,692) 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Notes : 1. For 1Q24 MSR ca lcul ation, ar ea util iz ed at the beg inning of the quarter exc lude
Slide 16: Revenue & Adjusted EBITDA By Quarter
Revenue & Adjusted EBITDA By Quarter Revenue (Rmb Mn) Adjusted EBITDA & Margin (Rmb Mn) (1) 46.9% 47.8% 46.0% 48.2% 48.6% 2,690.7 2,723.2 2,579.6 2,619.6 2,432.2 2,380.8 1,057.0 Ga in On Disposal 1,140.7 1,233.2 1,204.9 1,297.7 To ABS 1,323.8 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 Notes :
Slide 17: Asset Monetization – Standalone ABS
Asset Monetization – Standalone ABS Structure Economic Highlights Rm b Mn GDSH Investors Total Enter pr ise Value (A+ B) 2,920 Net D ebt & Liab ilities (A ) 1,140 Total Equity Valu e (B ) 1,780 30% 70% Rec eiv ed (in Apr il 2025) 897 Def err ed (1 ) 883 Total Reinvest men t (483) Paid (i n M arch 20
Slide 18: Capex
Capex (1) Capex (Rmb Mn) Capex Guidance Breakdown (Rmb Mn) 12,695.2 (Rmb Mn) 9,294.1 Total Capex Before ABS 4,800 Less: Net Cash Proceeds From ABS ( 1) (500) 3,497.8 3,009.2 Total Capex After ABS 4,300 1,055.6 FY2 1 FY2 2 FY2 3 FY2 4 1Q25 Notes : Notes : 1. Exc ludes GD S’s inv es tment in Day One a
Slide 19: Cash Flow
Cash Flow 1 Q 24 2 Q 24 3 Q 24 4 Q 24 1 Q 25 O pe ra ti ng Ca s h Fl ow ( 99 .5 ) 5 99 .4 6 39 .9 1 ,0 79 .9 7 80 .1 Ca p ex ( 94 3 .0 ) ( 92 3 .6 ) ( 78 8 .1 ) ( 35 4 .4 ) ( 1, 05 5 .6 ) In ve stm en t I n D ay On e ( 40 9 .3 ) 1 ,5 78 .1 - - - Ca sh P ro ce e ds Fr om A B S - - - - - (1 ) S ub sc
Slide 20: Financing Obligation & Liquidity
Financing Obligation & Liquidity Net Debt & Leverage ( Rm b M n Unl es s Indi ca t ed ) 1 Q 24 2 Q 24 3 Q 24 4 Q 24 1 Q 25 To ta l Lo a n 2 6, 96 1 .2 2 6, 88 5 .9 2 6, 68 3 .2 2 6, 24 7 .6 2 5, 83 5 .1 Co n ve rti b le B on d 8 ,4 53 .4 8 ,4 95 .4 8 ,3 57 .0 8 ,5 77 .2 8 ,5 69 .1 Fi na n ce L ea se
Slide 21: Loan Maturity Schedule
Loan Maturity Schedule At 1Q25 (Rmb Mn) (1) Working C apital Proje ct Loa n Con vertible Bond (2) 6,914 6,620 5,940 4,379 3,402 3,159 2,109 2,005 2025 2026 2027 2028 2029 2030 2031 2032 & Beyond Notes : 1. Exc hange rate o f 7.1782:1 (R MB:USD). 2. The 0.25% C onver ti ble Senior Notes due 2029 are
Slide 22: Asset Monetization – C-REIT
Asset Monetization – C-REIT Structure Current Status GDSH Investors ◼ Received NDRC approval 20% 80% ◼ Currently under review by CSRC and SSE C-REIT ◼ Preliminary offering memorandum filed publicly ◼ Underlying Project #1 of ~15,000 sqm ABS #1 ABS #2 …… ABS #N ◼ Target IPO in 2H25 subject to approva
Slide 23: Deleveraging Path
Deleveraging Path For Illustration Purposes Only (Rmb Bn) Net Debt / Net Debt / FY2 4 Adjusted EBITDA : FY2 5 Adjusted EBITDA (2) : 7.2x 6.5x 35.2 2.5 4.8 34.4 (1) 3.1 Net Debt at YE24 Operating Cas hfl ow for F Y25 Net Cas h Proc eeds & Dec onsoli dati on of Debt Capex before ABS Net Debt at YE25 f
Slide 24: Business Outlook
Business Outlook Confirming FY25 Guidance Rmb Mn FY24 Actual FY25 Guidance Implied Y/Y Total Revenue 10,322.1 11,290 - 11,590 +9.4% – +12.3% Adjusted EBITDA 4,876.4 5,190 - 5,390 +6.4% – +10.5% Capex (After ABS) 3,009.2 (1) ~4,300 +42.9% Notes : 1. Refers to net c as h us ed in inv esting ac ti vi t
Slide 25: DayOne – Financial Updates
DayOne – Financial Updates Selected Financial Results For DayOne (1) In $ Mn 1Q24 2Q24 3Q24 4Q24 1Q25 Net Revenue 27.4 35.0 49.8 60.7 66.0 Adjusted EBITDA 6.2 11.2 13.0 15.0 20.5 Adjusted EBITDA margin 22.7% 32.1% 26.2% 24.7% 31.0% Capex (89.3) (157.1) (289.2) (412.5) (418.9) Net Debt 754.7 457.5 58
Slide 26: Questions & Answers
Questions & Answers www.gds-services.com ir@gds-services.com © GDS 2016
Slide 27: Appendix
Appendix © GDS 2016
Slide 28: KPIs
KPIs As At 1Q24 2Q24 3Q24 4Q24 1Q25 Area In Service (Sqm) 549,352 580,165 595,606 613,583 610,685 Area Under Construction (Sqm) 141,576 117,861 120,422 102,691 132,208 Total Capacity (Sqm) 690,928 698,026 716,028 716,274 742,893 Area Committed (Sqm) 505,851 535,224 548,372 564,139 554,924 Area Pre-C
Slide 29: Data Center Summary By Market
Data Center Summary By Market At 31/03/25 (Sqm, Unless Indicated) (1) Pre- Ar ea In Ar ea Un der Ar ea Ar ea Pre- Total Area Com m itm ent Uti li zati on # o f Self- Total Capacity Ar ea Utilized Com m itm ent Service Con struction Com m itted Com m itted Com m itted Rate Rate Mar ket Developed Rate
Slide 30: Data Center Capacity By Tenure
Data Center Capacity By Tenure At 31/03/25 (Sqm, Unless Indicated) Area In Service Area Under Construction Total Capacity Lease 311,570 33,592 345,161 Own 238,805 95,177 333,982 B-O-T 55,722 3,440 59,162 3 rd Party 4,588 - 4,588 Total 610,685 132,208 742,893 % Lease 51.0% 25.4% 46.5% % Own 39.1% 72.
Slide 31: Top 5 Customer & Contract Renewal
Top 5 Customer & Contract Renewal Top 5 Customer (1) Contract Renewal % of Total Ar ea % of Total Ar ea % of 1 Q2 5 Total Net Period Sqm # Committe d Committe d Rev enue Fro m 2Q25 – 4Q25 103 ,9 86 16.0% 1 37.6% 29.2% FY2 6 80,79 4 12.4% 2 13.8% 13.1% FY2 7 136 ,9 80 21.1% 3 8.2% 7.7% FY2 8 77,62 7
Slide 32: Principal Shareholders
Principal Shareholders At 31/03/25 Pro Form a Ordinary Sha res (1) Equiva le nt A DS Equiva le nt A DS % of Total ADS Change (3) Willi am Hu ang (2) 55,46 9,176 6,933 ,647 6,933 ,647 3.6% Directors & Office rs (4) 4,057 ,356 507 ,1 69 507 ,1 69 0.3% STT 477 ,2 88,484 59,66 1,060 59,66 1,060 31.2% Pi
Slide 33: Historical Financial Results – Statements of Operations
Historical Financial Results Condensed Consolidated Statements Of Operations A m o u n ts i n th o u s an d s T h re e M o n th s En d e d M ar 3 1, 2 02 4 J u n 3 0, 2 02 4 Se p 3 0, 2 02 4 D ec 3 1, 2 02 4 M ar 3 1, 2 02 5 RMB RMB RMB RMB RMB U SD (1) N et re ve n u e Se rvic e reve nu e 2 ,4 32 ,
Slide 34: Historical Financial Results – Balance Sheets
Historical Financial Results Condensed Consolidated Balance Sheets Am ou n t in tho usa nd s. A s o f Mar 31, 20 24 Ju n 30, 20 24 Sep 30, 20 24 De c 31, 20 24 Mar 31, 20 25 RMB RMB RMB RMB RMB USD ( 1 ) Ca sh 7, 238, 009 8, 395, 908 7, 757, 903 7, 867, 659 7, 575, 709 1, 043, 961 Account s receivab
Slide 35: Historical Financial Results – Statements of Cash Flows
Historical Financial Results Condensed Consolidated Statements Of Cash Flows A m ounts i n thous ands Thre e M onths Ende d M ar 3 1, 2 02 4 J u n 3 0, 2 02 4 Se p 3 0, 2 02 4 D ec 3 1, 2 02 4 M ar 3 1, 2 02 5 RMB RMB RMB RMB RMB U SD (1) N et c as h (u s ed in ) p ro v id e d b y o p er ati n g a c
Slide 36: Reconciliation From Gross Profit To Adjusted Gross Profit
Reconciliation From Gross Profit To Adjusted Gross Profit Adjusted Gross Profit Am ou nts in tho usan ds Th ree Mo nth s En ded Mar 31, 2 024 Jun 30, 2 024 Sep 30, 2 024 Dec 31, 2 024 Mar 31, 2025 RM B RM B RM B RM B RM B USD (1 ) Gross profit 521,203 565,726 557,583 578,117 644,825 88,859 Depr eci
Slide 37: Reconciliation From Net Loss To Adjusted EBITDA
Reconciliation From Net Loss To Adjusted EBITDA Adjusted EBITDA Am ou nts in tho usan ds Th ree Mo nth s En ded Mar 31, 2 024 Jun 30, 2 024 Sep 30, 2 024 Dec 31, 2 024 Mar 31, 20 25 RM B RM B RM B RM B RM B USD (1 ) Net inco me (los s) (344, 931) (231,768) (231,109) 4,111,639 764,074 105,292 Los s (
Slide 38: Definition Of KPIs
Definition Of KPIs A re a In S e rvi ce E nt ir e ne t flo o r ar e a of da ta ce n te rs (o r p ha se s o f da ta ce n te rs) w hi ch a re r e ad y f or se r vi ce E nt ir e ne t flo o r ar e a of da ta ce n te rs (o r p ha se s o f da ta ce n te rs) w hi ch a re a cti ve ly un d er c on str u cti
Slide 39: Analyst Coverage
Analyst Coverage Br oke r An aly st Co ntact BofA Dal ey Li daley.li 2@ bofa.c om CICC Shuyu n Che s huyun.che @c ic c.com .c n Ci ti Louis Ts ang loui s.c p.ts ang@c iti.c om Ci ti c Secu rities J unyun Chen c henjuny un@c itic s.c om Cow en Mic hael Eli as mi chael .el ias @c owen.c om Dai wa Robi
Slide 40: DayOne – Capacity Overview
DayOne – Capacity Overview IT Power (1) In MW FY2 3 FY2 4 1Q25 Power In Service 75 132 154 Power Under Construction 196 369 425 Hel d For Future Develop men t (2) 404 712 631 Total Se cured Ca paci ty 675 1,213 1,210 Customer Co mmitmen ts (3) 121 469 539 Utili zed C apacity 74 123 145 Notes : 1. In
Slide 41: DayOne – Financial Overview
DayOne – Financial Overview Selected Financial Results for DayOne (1) Am ou nts in $ Mn Th ree Mo nth En ded Mar 31, 2 024 Jun 30, 2 024 Sep 30, 202 4 Dec 31, 2 024 Mar 31, 2025 Net rev enue 27.4 35.0 49.8 60.7 66.0 Adjus ted EBITDA 6.2 11.2 13.0 15.0 20.5 Adjus ted EBITDA margin 22.7% 32.1% 26.2% 2