Gds Holdings Ltd. · HKEX:9698
Gds — Q2 2025 Earnings Presentation
40 slides from Gds's earnings presentation, Aug 20, 2025
Slide 1: 2Q25 Earnings Call
2Q25 Earnings Call 20 Aug 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 2Q25 Highlights
GDS 2Q25 HIGHLIGHTS Customer Commitments • New customer commitments (net) of +14,398 sqm • Total area committed increased by 8.1% y/y to 663,959 sqm Customer Move-In • Additional area utilized (net) of +16,763 sqm • Total area utilized of 479,186 sqm, +14.1% y/y, and utilization rate of 77.5% Financ
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 19,916 60,284 16,225 48,739 40,648 33,860 2Q24 3Q24 4Q24 1Q25 2Q25 FY21 FY22 FY23 FY24 1H25 Notes: 1. Excludes B-O-T and acquisitions. © GDS 2016 4
Slide 6: Net Additional Area Utilized
Net Additional Area Utilized By Quarter (Sqm) By Year (Sqm) 2Q24 3Q24 4Q24 1Q25 2Q25 FY21 FY22 FY23 FY24 1H25 Organic Tier 1 (Gross) 20,065 25,647 16,225 20,732 19,916 Organic Tier 1 (Gross) 60,284 33,860 48,739 78,968 40,648 Churn (3,661) (7,264) (1,950) (4,287) (5,685) Churn (2,185) (4,864) (20,68
Slide 7: Backlog Delivery
Backlog Delivery Total Backlog Backlog Delivery Schedule Backlog For Area In Service Backlog For Area Under Construction 184,773 ~35% 234,185 228,787 213,640 184,773 176,904 95,821 106,613 ~35% 111,834 65,858 98,735 ~30% 138,364 122,174 111,045 101,806 86,038 YE21 YE22 YE23 YE24 1H25 Backlog At 2Q25
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 63,997 52,175 22,741 48,802 49,452 20,913 9,678 9,387 2Q24 3Q24 4Q24 1Q25 2Q25 FY21 FY22 FY23 FY24 1H25 Notes: 1. Excludes B-O-T and acquisitions. © GDS 2016 7
Slide 9: Net Additional Area Committed
Net Additional Area Committed By Quarter (Sqm) By Year (Sqm) 2Q24 3Q24 4Q24 1Q25 2Q25 FY21 FY22 FY23 FY24 1H25 Organic Tier 1 (Gross) 9,678 20,913 9,387 41,256 22,741 Organic Tier 1 (Gross) 91,277 52,175 48,802 49,452 63,997 Churn (4,230) (8,224) (6,173) (11,378) (8,343) Churn (2,944) (6,612) (28,16
Slide 10: 2Q25 Hyperscale New Orders
2Q25 Hyperscale New Orders LF17 Phase 1 / LF19 Phase 1 TJ1 BJ14 Phase 3 6,021 sqm / 23.1 MW 4,657 sqm / 7.7 MW 3,790 sqm / 9.4 MW © GDS 2016 9
Slide 11: Capacity Expansion
Capacity Expansion Increase In Capacity In Service (Sqm) Capacity Overview At 2Q25 Additional Capacity In Service Additional Capacity To Deliver (1) Capacity In Sqm In MW 153,107 In Service 618,060 1,326 Under Construction 132,235 379 89,196 78,419 Total Capacity 750,295 1,705 72,316 (1) 27,682 Held
Slide 12: DayOne – Operation Updates
DayOne – Operation Updates Total IT Power Committed (MW) Total IT Power Utilized (MW) 213 783 537 143 467 121 431 388 101 103 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 Notes: 1. Excluding 3 rd party data centers. © GDS 2016 11
Slide 13: Financial & Operating Review
Financial & Operating Review Dan Newman, CFO © GDS 2016
Slide 14: 2Q25 P&L Analysis
2Q25 P&L Analysis Quarterly Financial Review Rmb‘000 (Unless Indicated) 2Q24 1Q25 2Q25 Y/Y Q/Q Total Net Revenue 2,579,594 2,723,158 2,900,288 12.4% 6.5% Cost of Revenue (2,013,868) (2,078,333) (2,211,362) 9.8% 6.4% Add Back Non-Cash Items (1) 758,597 810,597 820,576 8.2% 1.2% Adjusted GP (2) 1,324,
Slide 15: Move-In & MSR By Quarter
Move-In & MSR By Quarter Net Additional Area Utilized (Sqm) MSR (Rmb / Sqm / Month) 18,678 16,763 2,088 16,366 2,034 2,052 2,011 1,983 14,440 9,330 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 © GDS 2016 14
Slide 16: Revenue & Adjusted EBITDA By Quarter
Revenue & Adjusted EBITDA By Quarter Revenue (Rmb Mn) Adjusted EBITDA & Margin (Rmb Mn) 47.8% 46.0% 48.2% 48.6% 47.3% 2,900.3 2,723.2 1,371.8 2,619.6 2,690.7 1,323.8 2,579.6 1,297.7 1,233.2 1,204.9 2Q24 3Q24 4Q24 1Q25 2Q25 2Q24 3Q24 4Q24 1Q25 2Q25 © GDS 2016 15
Slide 17: Asset Monetization – Financial Effects To GDS
Asset Monetization – Financial Effects To GDS Rmb Mn ABS C-REIT Total Cash Proceeds To GDS 1,780 2,073 Cash Proceeds Upon Closing 897 2,073 (1) Cash Proceeds Deferred & Contingent 883 - Net Debt & Other Liabilities Deconsolidated 1,140 30 Reinvestment By GDS In ABS / C-REIT Securities (483) (480) Pa
Slide 18: Asset Monetization – Accretive Valuation To GDS
Asset Monetization – Accretive Valuation To GDS Valuation C-REIT Unit Price Since IPO ABS C-REIT Enterprise Value (EV) (Rmb Mn) 2,920 (1) 2,400 (2) EBITDA (Rmb Mn) 220 (3) 142 (4) Implied EV / EBITDA (x) 13.3x 16.9x Cash Available For Distribution (Rmb Mn) - 125 (5) Implied Dividend Yield (%) - 5.2%
Slide 19: Capex
Capex (1) Organic Capex (Rmb Mn) Capex Guidance Breakdown (Rmb Mn) 12,695.2 FY25 1H25 Guidance Total Organic Capex 2,317.1 4,800 9,294.1 Less: Cash Proceeds From ABS Upon Closing (897.0) (800) Add: Reinvestment In ABS (Paid) (1) 313.8 300 Less: Cash Proceeds From C-REIT Upon Closing - (2,100) 3,497.
Slide 20: Cash Flow
Cash Flow Quarterly Cash Flow Annual Cash Flow 2Q24 3Q24 4Q24 1Q25 2Q25 Operating Cash Flow 599.4 639.9 1,079.9 780.1 865.1 Rmb Mn FY24 1H25 FY25 (1) Capex (923.6) (788.1) (354.4) (1,055.6) (1,261.5) Investment In DayOne 1,578.1 - - - - Operating Cash Flow 2,219.7 1,645.2 2,500 Cash Proceeds From AB
Slide 21: Financing Obligation & Liquidity
Financing Obligation & Liquidity Net Debt & Leverage (Rmb Mn Unless Indicated) 2Q24 3Q24 4Q24 1Q25 2Q25 Total Loan 26,885.9 26,683.2 26,247.6 25,835.1 26,141.0 Convertible Bond 8,495.4 8,357.0 8,577.2 8,569.1 12,344.7 Finance Lease 8,433.6 8,321.4 8,237.8 8,087.4 7,949.6 Total Gross Debt 43,814.9 43
Slide 22: Pro Forma Net Debt & Capital Raise
Pro Forma Net Debt & Capital Raise Pro Forma Net Debt After C-REIT (Rmb Mn) Capital Raise Net Debt At 2Q25 33,312 Less: Net Cash Proceeds From C-REIT (1) (1,593) n Raised $534.9 mn from convertible senior notes Less: Net Debt Deconsolidation (30) Pro Forma Net Debt 31,689 n 2.25% coupon Less: Listed
Slide 23: Loan Maturity Schedule
Loan Maturity Schedule At 2Q25 (Rmb Mn) (1) Working Capital Project Loan Convertible Bond (2) 7,774 6,574 5,787 5,684 Covered with 4,438 offshore cash 4,235 4,152 3,060 3,937 2,703 2,371 2,081 1,354 3,335 2,422 994 1,850 1,532 Repaid 2025 2026 2027 2028 2029 2030 2031 2032 2033 & Beyond Notes: 1. Ex
Slide 24: Business Outlook
Business Outlook 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% Updated Capex (After ABS & C-REIT) 3,009.2 (1) ~2,700 (10.3%) Notes: 1. Refers to net cash used in investing activities,
Slide 25: DayOne – Financial Updates
DayOne – Financial Updates Selected Financial Results For DayOne (1) $ Mn (except for stated otherwise) 2Q24 3Q24 4Q24 1Q25 2Q25 Power Utilized (2) (MW) 101 103 121 143 213 Net Revenue 35.0 49.8 60.7 66.0 85.5 Adjusted EBITDA (2) 11.2 13.0 15.0 18.9 29.7 Adjusted EBITDA margin 32.1% 26.2% 24.7% 28.7
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 2Q24 3Q24 4Q24 1Q25 2Q25 Area In Service (Sqm) 580,165 595,606 613,583 610,685 618,060 Area Under Construction (Sqm) 117,861 120,422 102,691 132,208 132,235 Total Capacity (Sqm) 698,026 716,028 716,274 742,893 750,295 Area Committed (Sqm) 535,224 548,372 564,139 554,924 565,224 Area Pre-C
Slide 29: Data Center Summary By Market
Data Center Summary By Market At 30/06/25 (Sqm, Unless Indicated) (1) Pre- Area In Area Under Area Area Pre- Total Area Commitment Utilization # of Self- Total Capacity Area Utilized Commitment Service Construction Committed Committed Committed Rate Rate Market Developed Rate Data Centers (1) (2) (1
Slide 30: Data Center Capacity By Tenure
Data Center Capacity By Tenure At 30/06/25 (Sqm, Unless Indicated) Area In Service Area Under Construction Total Capacity Lease 307,261 33,592 340,853 Own 250,489 95,203 345,692 B-O-T 55,722 3,440 59,162 3 rd Party 4,588 - 4,588 Total 618,060 132,235 750,295 % Lease 49.7% 25.4% 45.4% % Own 40.5% 72.
Slide 31: Top Customer & Contract Renewal
Top 5 Customer & Contract Renewal Top 5 Customer (1) Contract Renewal % of Total Area % of Total Area % of 2Q25 Total Net Period Sqm # Committed Committed Revenue 2H25 79,427 12.0% 1 37.4% 28.1% FY26 87,847 13.2% 2 14.1% 13.1% FY27 142,050 21.4% 3 8.9% 8.1% FY28 106,472 16.0% 4 7.1% 5.6% Thereafter
Slide 32: Principal Shareholders
Principal Shareholders At 30/06/25 Pro Forma Ordinary Shares (1) Equivalent ADS Equivalent ADS % of Total ADS Change (3) William Huang (2) 56,841,032 7,105,129 - 7,105,129 3.6% STT 477,288,484 59,661,060 - 59,661,060 30.2% Ping An - - +4,213,483 4,213,483 2.1% Others / Free Float 1,014,503,843 126,8
Slide 33: Historical Financial Results – Statements of Operations
Historical Financial Results Condensed Consolidated Statements Of Operations Amounts in thousands Three Months Ended Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 June 30, 2025 (1) RMB RMB RMB RMB RMB USD Net revenue Service revenue 2,579,594 2,619,578 2,690,482 2,722,908 2,898,398 404,601 Equ
Slide 34: Historical Financial Results – Balance Sheets
Historical Financial Results Condensed Consolidated Balance Sheets Amount in thousands. As of Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 June 30, 2025 RMB RMB RMB RMB RMB USD ( 1 ) Cash 8,395,908 7,757,903 7,867,659 7,575,709 13,123,751 1,832,005 Accounts receivable, net of allowance for cr
Slide 35: Historical Financial Results – Statements of Cash Flows
Historical Financial Results Condensed Consolidated Statements Of Cash Flows Amounts in thousands Three Months Ended Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 June 30, 2025 (1) RMB RMB RMB RMB RMB USD Net cash provided by operating activities from continuing operations 599,443 639,878 1,07
Slide 36: Reconciliation From Gross Profit To Adjusted Gross Profit
Reconciliation From Gross Profit To Adjusted Gross Profit Adjusted Gross Profit Amounts in thousands Three Months Ended Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 June 30, 2025 RMB RMB RMB RMB RMB USD (1) Gross profit 565,726 557,583 578,117 644,825 688,926 96,171 Depreciation and amortizat
Slide 37: Reconciliation From Net Loss To Adjusted EBITDA
Reconciliation From Net Loss To Adjusted EBITDA Adjusted EBITDA Amounts in thousands Three Months Ended Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 June 30, 2025 (1) RMB RMB RMB RMB RMB USD Net (loss) income (231,768) (231,109) 4,111,639 764,074 (70,584) (9,852) Loss (income) from discontinu
Slide 38: Analyst Coverage
Analyst Coverage Broker Analyst Contact BofA Daley Li daley.li2@bofa.com CICC Shuyun Che shuyun.che@cicc.com.cn Citi Louis Tsang louis.cp.tsang@citi.com Citic Securities Junyun Chen chenjunyun@citics.com Cowen Michael Elias michael.elias@cowen.com Daiwa Robin Leung robin.leung@hk.daiwacm.com Deutsch
Slide 39: DayOne – Capacity Overview
DayOne – Capacity Overview IT Power (1) In MW FY23 FY24 1Q25 2Q25 Power In Service 75 132 154 224 Power Under Construction 196 369 425 600 Power Held For Future Development 404 712 631 674 Total Secured Capacity 675 1,213 1,210 1,498 Customer Commitments (2) 121 469 539 785 Utilized Capacity 74 123
Slide 40: DayOne – Financial Overview
DayOne – Financial Overview Selected Financial Results For DayOne (1) Amounts in $ Mn Three Month Ended Jun 30, 2024 Sep 30, 2024 Dec 31, 2024 Mar 31, 2025 Jun 30, 2025 Net revenue 35.0 49.8 60.7 66.0 85.5 Adjusted EBITDA 11.2 13.0 15.0 18.9 29.7 Adjusted EBITDA margin 32.1% 26.2% 24.7% 28.7% 34.7%