GDS Holdings Limited (NASDAQ:GDS) Q3 2021 Earnings Conference Call November 16, 2021 8:00 AM ET Company Participants Laura Chen – Head-Investor Relations William Huang – Founder, Chairman and Chief Executive Officer Dan Newman – Chief Financial Officer Conference Call Participants Jonathan Atkin – RBC Capital Markets Yang Liu – Morgan Stanley Michael Baca – Cowen and Company Frank Louthan – Raymond James Edison Lee – Jefferies Hongjie Li – CICC Operator Hello, ladies and gentlemen, thank you for standing by ...

Financial Performance - GDS Holdings reported a significant increase in revenue for the first half of 2021, reaching approximately $200 million, representing a year-over-year growth of 30%[2]. - In Q2 2021, net revenue increased by 38.9% year-on-year to RMB 1,863.9 million (USD 288.7 million) compared to RMB 1,342.2 million in Q2 2020[6]. - Service revenue for Q2 2021 grew by 39.6% year-on-year to RMB 1,863.0 million (USD 288.5 million) from RMB 1,334.5 million in Q2 2020[6]. - Total net revenue for the three months ended June 30, 2021, was RMB 1,863,919 thousand, representing a 39% increase from RMB 1,342,205 thousand for the same period in 2020[15]. - Service revenue for the six months ended June 30, 2021, reached RMB 3,567,443 thousand, up 39% from RMB 2,567,064 thousand in the same period of 2020[15]. - The gross profit for Q2 2021 was RMB 439.9 million (USD 68.1 million), an increase of 21.8% compared to RMB 361.1 million in Q2 2020[7]. - The adjusted gross profit and adjusted gross profit margin are used as supplementary performance indicators to better reflect core operational performance[10]. - Adjusted EBITDA for Q2 2021 rose by 41.4% year-on-year to RMB 895.9 million (USD 138.8 million) compared to RMB 633.4 million in Q2 2020[6]. - Adjusted EBITDA for the six months ended June 30, 2021, was RMB 895,862 thousand, which is an increase of 9.5% compared to RMB 817,947 thousand for the same period in 2020[18]. - The adjusted gross margin for the six months ended June 30, 2021, was 54.0%, slightly down from 54.4% in the same period of 2020[18]. Customer Metrics - The company achieved a total of 1,200 customers by June 30, 2021, reflecting a 15% increase compared to the previous year[3]. - GDS Holdings has initiated a new product line focused on hybrid cloud solutions, aiming to capture a growing segment of the market[2]. - The company reported a customer retention rate of 95%, highlighting strong customer satisfaction and loyalty[3]. Growth Projections - GDS Holdings anticipates continued growth, projecting revenue for the full fiscal year 2021 to be between $400 million and $420 million, indicating a potential increase of 25% to 30% year-over-year[4]. - The company is actively expanding its data center capacity, with plans to add 200 megawatts of power by the end of 2022, which is expected to enhance service offerings and customer acquisition[2]. Strategic Initiatives - GDS Holdings is investing in new technologies, including AI and machine learning, to improve operational efficiency and customer service capabilities[3]. - The company is exploring strategic acquisitions to bolster its market position and expand its service portfolio in the Asia-Pacific region[4]. - The company completed the acquisition of BJ15 and SZ8 data centers during Q2 2021, and acquired 65% equity in a target company owning the TJ1 data center[9]. - The company signed a purchase agreement to acquire 100% equity in a target company that owns undeveloped land in Taicang, Jiangsu Province, which covers approximately 59,000 square meters[9]. Operational Metrics - The operating area increased by 61,351 square meters in Q2 2021, reaching a total of 393,885 square meters, a year-on-year increase of 47.9%[6]. - The total area contracted and pre-contracted increased by 44,848 square meters to 470,125 square meters as of June 30, 2021, a year-on-year increase of 41.0%[7]. - The operational area billing rate at the end of Q2 2021 was 69.0%, compared to 72.5% at the end of Q2 2020 and 72.9% at the end of Q1 2021[9]. Financial Position - As of June 30, 2021, the company's cash amounted to RMB 12,326.9 million (approximately $1,909.2 million) with short-term debt totaling RMB 2,669.2 million (approximately $413.4 million)[10]. - The total long-term debt reached RMB 24,974.4 million (approximately $3,868.0 million), including long-term borrowings of RMB 14,866.7 million (approximately $2,302.6 million)[10]. - The company's total assets amounted to RMB 62,456,383 thousand, an increase from RMB 57,258,795 thousand as of December 31, 2020, representing an increase of approximately 9.5%[12]. - The total liabilities increased to RMB 36,061,823 thousand as of June 30, 2021, compared to RMB 30,591,073 thousand as of December 31, 2020, indicating an increase of approximately 17.7%[12]. - The company's total liabilities to equity ratio increased to approximately 1.44 as of June 30, 2021, compared to 1.20 as of December 31, 2020, indicating a higher leverage position[12]. Losses and Expenses - The net loss for Q2 2021 was RMB 298.5 million (USD 46.2 million), compared to a net loss of RMB 101.0 million in Q2 2020[6]. - The company reported a net loss of RMB 577,200 thousand for the six months ended June 30, 2021, compared to RMB 193,078 thousand for the same period in 2020, reflecting a significant increase in losses[16]. - The company experienced a significant increase in interest expenses, which rose to RMB 411,722 thousand for the six months ended June 30, 2021, compared to RMB 300,649 thousand for the same period in 2020[18]. - The company reported a significant increase in depreciation and amortization expenses, totaling RMB 619,613 thousand for the six months ended June 30, 2021, compared to RMB 709,223 thousand for the same period in 2020[18].

GDS Holdings Limited (NASDAQ:GDS) Q2 2021 Results Conference Call August 17, 2021 8:00 AM ET Company Participants Laura Chen - Head of Investor Relations William Huang - Founder, Chairman and Chief Executive Officer Dan Newman - Chief Financial Officer Jamie Khoo - Chief Operating Officer Conference Call Participants Tina Hou - Goldman Sachs Yang Liu - Morgan Stanley James Wang - UBS Hongjie Li - CICC Colby Synesael - Cowen Edison Lee - Jeffries Gokul Hariharan - JPMorgan Frank Louthan - Raymond James Joel ...

GDS Holdings Limited (NASDAQ:GDS) Q1 2021 Earnings Conference Call May 19, 2021 8:00 PM ET Company Participants Laura Chen – Head of Investor Relations William Huang – Founder, Chairman and Chief Executive Officer Dan Newman – Chief Financial Officer Jamie Khoo – Chief Operating Officer Conference Call Participants Yang Liu – Morgan Stanley Jon Atkin – RBC Colby Synesael – Cowen James Wang – UBS Tina Hou – Goldman Sachs Gokul Hariharan – JPMorgan Frank Louthan – Raymond James Operator Hello, ladies and gent ...

Operational Capacity and Development - As of December 31, 2020, the total net floor area in operation was 318,272 square meters, with 94.3% contracted by customers[4] - The total net floor area under construction was 137,070 square meters, with 73.9% pre-contracted by customers[4] - The company operates 51 self-developed data centers with a total net floor area of 310,128 square meters, and approximately 19 third-party data centers with a total net floor area of 8,144 square meters[6] - The total estimated developable net floor area held by the company for future potential development is approximately 480,000 square meters[6] - The company has 14 new self-developed data centers and two existing self-developed data centers under construction, with a total net floor area of 137,070 square meters[6] - As of December 31, 2020, the total signed area (excluding B-O-T joint venture data centers) was 401,554 square meters, with operational area and area under construction being 300,213 square meters and 101,341 square meters respectively[12] - The company constructed 12 new self-developed data centers in first-tier markets in 2020, with a total net room area of 65,866 square meters[10] - The total net room area under construction as of December 31, 2020, was 137,070 square meters, of which 73.9% was pre-signed[10] - The operational area (excluding B-O-T joint venture data centers) as of December 31, 2020, was 310,128 square meters[11] - The company has approximately 480,000 square meters of estimated total developable net room area in first-tier markets for potential future development[13] Market Demand and Strategic Positioning - The demand for high-performance data center services in China is driven by rapid data growth due to digital transformation and the application of new technologies such as cloud computing and AI[4] - The Chinese government supports technology-driven development and digital economy growth, promoting "new infrastructure construction" which includes large data centers[4] - The company operates data centers primarily in major economic hubs such as Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing[5] - The strategic locations of the data centers provide convenient connectivity and access to extensive multi-operator telecom networks, enhancing facility performance and reducing connection costs[5] - The high-performance data center capacity in key economic hubs is relatively scarce due to challenges in acquiring suitable land and regulatory approvals[5] - The ongoing investment wave in the economy driven by government policies is expected to create numerous business opportunities for the company in the future[4] Financial Performance - Net revenue increased from RMB 2,792.1 million in 2018 to RMB 4,122.4 million in 2019, representing a growth of 47.6%, and further increased to RMB 5,739.0 million (USD 879.5 million) in 2020, a growth of 39.2%[8] - The cumulative net loss grew from RMB 430.3 million in 2018 to RMB 669.2 million (USD 102.6 million) in 2020[8] - Adjusted EBITDA rose from RMB 1,046.5 million in 2018 to RMB 2,680.6 million (USD 410.8 million) in 2020[8] - The signing rate for contracts was 94.9%, 91.9%, and 94.3% for the years ending December 31, 2018, 2019, and 2020, respectively[8] - The billing rates increased from 67.6% in 2018 to 71.1% in 2020[8] - The pre-signing rate for contracts improved from 48.4% in 2018 to 73.9% in 2020[8] - The company focuses on developing high-performance data centers with large net floor areas and high power capacity[8] - The company aims to maintain high signing rates across its data centers[8] Customer Base and Retention - As of December 31, 2020, the company served 703 customers, including major cloud service providers and large internet companies in China and globally[6] - The average quarterly customer churn rates for the years ending December 31, 2018, 2019, and 2020 were 0.9%, 0.5%, and 0.8% respectively, indicating strong customer retention[9] - The company aims to maintain high levels of revenue visibility due to long-term customer agreements and a significant backlog of orders[9] - The company’s cloud service providers, large internet, financial institutions, and enterprise customers accounted for 76.7%, 14.1%, and 9.2% of total contracted area as of December 31, 2020[37] Managed Services and Innovations - The company offers managed services, including direct private connections with leading public clouds and innovative hybrid cloud management platforms[4] - The company has developed an innovative service platform to assist enterprise customers in managing their IT infrastructure[6] - The company provides a range of managed services, including business continuity and disaster recovery solutions, network management, data storage, and system security services[32] - The company has developed a proprietary data center operations management platform that provides real-time information on various aspects of data center performance[36] - The company is developing an innovative service platform to assist enterprise clients in integrating private servers with one or more public cloud service providers[34] Regulatory Compliance and Legal Matters - GDS operates its internet data center business through a VIE structure due to Chinese regulations restricting foreign ownership in value-added telecommunications services[59] - The Chinese legal framework for foreign investment includes a negative list, which prohibits foreign investment in certain sectors, and GDS must comply with these regulations to operate[60] - The company is subject to regulatory oversight by the China Banking and Insurance Regulatory Commission, ensuring compliance with laws and regulations related to outsourcing services[68] - The company must adhere to strict guidelines regarding the management of outsourcing service providers, including risk assessments and service quality standards[68] - GDS Holdings Limited is committed to ongoing collaboration with regulatory bodies to ensure adherence to industry standards and best practices[68] Sustainability and Environmental Initiatives - Over 20% of the company's electricity consumption in 2020 came from renewable energy sources[49] - The company has 15 self-developed data centers that have received green certifications from leading domestic and global institutions[50] - Three data centers have received LEED certification, with two achieving Gold status[50] - The company is actively seeking to increase the use of renewable energy, including potential direct contracts with renewable energy suppliers[49] - The company has signed letters of intent to secure future supplies of International REC (I-REC) energy certificates to offset carbon emissions[49] Employee and Organizational Structure - As of December 31, 2020, the company had 1,479 full-time employees, with 17% being women[52] - The employee turnover rate for 2020 was 17.0%, down from 18.2% in 2019[55] - The company has a diverse workforce, with women comprising 34% of senior management and 18% of board members[52] - The company provides competitive compensation and benefits, including performance bonuses and stock options for employees[55] - The company has established a health and safety management system based on ISO45001 to ensure a safe working environment[52] Future Outlook and Growth Strategies - The company is focused on resource acquisition, feasibility analysis, technical design, cost estimation, and project management to maintain operational efficiency[34] - The company plans to invest in innovative technologies to enhance data processing capabilities and improve service delivery[70] - The company is exploring potential mergers and acquisitions to enhance its service offerings and market presence[64] - The company aims to maintain a foreign investment cap of 50% in joint ventures, ensuring compliance with local laws while attracting international partners[64] - Overall, the company is optimistic about future growth, driven by strategic initiatives and a robust user base[64]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020. OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITI ...