Financial Data and Key Metrics Changes - Total capacity reached 704 megawatts, an increase of 31 megawatts during the quarter [4] - Revenue was RMB920.6 million, representing a 43.1% year-over-year growth [5] - Adjusted EBITDA was RMB494.5 million, a 60.7% year-over-year growth with a margin of 53.7%, a historical high [5][21] - Net income was RMB94.6 million, a 62.5% year-over-year growth with a margin of 10.3% [5][19] - Total debt to capital ratio was 35% and total debt to last 12 months adjusted EBITDA ratio was 3.4 [23] Business Line Data and Key Metrics Changes - In-service capacity increased by 58 megawatts to 498 megawatts [4] - Contracted capacity increased by 54 megawatts, bringing total contracted and IOI capacity to 690 megawatts [4] - Utilized capacity increased by 40 megawatts to 344 megawatts, a 45% year-over-year growth [13] Market Data and Key Metrics Changes - Majority of revenue generation related capacity is in the greater Beijing area, aligned with the East Data West Computing National Policy [14] - 70% of total capacity is in APAC emerging markets, with 89% contracted or IOI by the end of the first quarter [15] Company Strategy and Development Direction - The company aims to further penetrate APAC emerging markets and explore hyperscale demand from enterprise clients and cloud service providers [11] - The company is focused on maintaining stable operations and delivery schedules while optimizing management and execution teams [40] - The objective is to have overseas business account for 30% of total portfolio in the long run [39] Management Comments on Operating Environment and Future Outlook - Management noted that the pandemic has led to increased demand from key clients, particularly ByteDance [27] - Despite challenges from COVID-related lockdowns, the company has managed to maintain project delivery schedules [36] - The company raised its full-year 2022 revenue and adjusted EBITDA guidance due to strong business momentum [6][28] Other Important Information - The company finalized a US$500 million syndication loan financing, which was oversubscribed, to support future development [16] - The company has a healthy commitment profile with over 90% of contracts being 10 years long [12] Q&A Session Summary Question: Current outlook on demand from ByteDance - Management indicated that the pandemic has actually increased demand from ByteDance, with more urgent requirements from the client [27] Question: Concerns about EBITDA margin guidance - Management explained that the high EBITDA margin in Q1 was due to lower utility costs and a decrease in maintenance and SG&A expenses, but expects some normalization in the second half of the year [31] Question: Impact of lockdown on capacity delivery - Management stated that the lockdown has had minimal impact on operations, with a faster ramp-up rate observed from key clients [34] Question: Competitive advantages in overseas markets - Management highlighted strong business momentum in APAC emerging markets and ongoing discussions with potential clients in Indonesia and Thailand [39] Question: Plans for reducing revenue concentration from ByteDance - Management is actively exploring opportunities with other cloud clients and expects diversification to occur alongside client growth [48]

Financial Data and Key Metrics Changes - For the full year 2021, revenue totaled RMB2.852 billion, representing a year-over-year increase of 55.8%, which was 0.8% higher than the upper range of guidance [13] - Adjusted EBITDA for the year was RMB1.49 billion, reflecting a year-over-year increase of 66.5%, exceeding guidance by 1.5% [13] - Net income turned positive at RMB316.4 million for 2021, with a margin of 11.1% [13][41] - In Q4 2021, revenue increased by 41.4% year-over-year to RMB781.7 million, driven by robust growth in colocation services [38] Business Line Data and Key Metrics Changes - Total capacity increased by 85 megawatts in Q4 2021, reaching 673 megawatts, with in-service capacity increasing by 70 megawatts to 440 megawatts [12] - Utilized capacity increased by 36 megawatts to 304 megawatts, with a utilization ratio of 69% [34] - The company added four new projects under construction, contributing to a total of 87 megawatts of IOI capacity [32] Market Data and Key Metrics Changes - The demand for data centers in the APAC emerging markets is expected to grow at a CAGR of over 20% over the next five years [14] - The East Data West Computing policy is anticipated to reshape the industry landscape favorably for the company, redirecting computing power demand to energy-abundant areas in the west [15][16] Company Strategy and Development Direction - The company aims to deepen its presence in APAC emerging markets and advance its geographic layout in key clusters designated under the East Data West Computing policy [24] - Plans include pursuing mergers, acquisitions, and joint ventures to enhance client base and geographical development [24] - The company is committed to a diversified renewable energy sourcing model, leveraging its energy-abundant region layout [24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on opportunities in China, driven by competitive advantages such as a full-stack solution and strong customer relationships [20][22] - The company expects the industry to enter a period of consolidation, which may provide opportunities for asset integration through mergers and acquisitions [18] - Management remains optimistic about continued financial momentum in 2022, with guidance for revenue and adjusted EBITDA reflecting significant year-over-year growth [45] Other Important Information - The company has a strong cash position with RMB5.241 billion in cash and a net debt position of RMB104.1 million [43] - The company is exploring dual-primary or secondary listing options in Hong Kong following recent regulatory changes [37] Q&A Session Summary Question: Regarding prepayments for the East Data West Computing policy and customer demand in Gansu Province - Management highlighted the first mover advantage in power-abundant regions and the strategic allocation of resources in areas like Zhangjiakou and Datong [48][49] Question: Customer diversification progress and market price competition - Management confirmed efforts in client diversification, securing projects with international cloud providers and noted stable pricing due to long-term contracts [66][68] Question: Forecast on upcoming costs and green power usage - Management explained that the deployment strategy in energy-abundant regions helps mitigate cost increases, and they are exploring multiple avenues for acquiring green energy [71][75]

Financial Data and Key Metrics Changes - Quarterly revenue increased by 59% year-over-year to RMB 740.8 million, with GAAP net income at RMB 78.4 million and a net margin of 10.6% [7][24] - Adjusted EBITDA rose to RMB 368.4 million, reflecting a year-over-year increase of 61.6% with a margin of 49.7% [7][25] - Total IT capacity in service reached 370 megawatts, a 9 megawatt increase from the previous quarter, with a utilization ratio stable at 72% [6][13] Business Line Data and Key Metrics Changes - Utilized capacity increased by 17 megawatts over the quarter to 268 megawatts, indicating a year-over-year growth of 53.3% [6][24] - The company added approximately 9 megawatts in service capacity in response to client demand for high-density deployments [12] Market Data and Key Metrics Changes - The company achieved a confirmed demand of 27 megawatts capacity from a leading Chinese cloud computing service provider [9] - In Malaysia, a new green field project was launched with a capacity of over 80 megawatts, expected to be delivered in phases starting from 2022 [10] Company Strategy and Development Direction - Chindata is focused on a capacity build-up strategy and aims to support clients' rapid expansion and zero-carbon transformation in the Asia Pacific emerging market [5][14] - The company is committed to renewable energy and has established a green power consumption ecosystem, including direct green power trading and renewable energy power station development [15][20] Management's Comments on Operating Environment and Future Outlook - Management noted that the impact of power shortages on operations was very limited, attributing this to strategic geographic deployment in energy-abundant regions [23][42] - The overall demand for hyperscale data centers in the Asia-Pacific market is expected to remain healthy, with a greater demand for the company's unique hyperscale green field model [40] Other Important Information - The company has been recognized for its ESG initiatives, becoming a corporate member of the United Nations Global Compact and joining the RE100 initiative [18][19] - Fitch reaffirmed its BBB- investment rating for the company, indicating solid credit profile supported by strategic location and renewable energy use [8][17] Q&A Session Summary Question: Details on new major customer acquisition - Management confirmed the new project involves a top two Chinese cloud computing service provider, with a capacity of 27 megawatts to be delivered in phases [30][31] Question: Recent contract pricing trends - Management indicated that pricing remains stable, with a slight downward trend observed in the industry, but their unique model provides a competitive advantage [33][34] Question: Future growth direction in Southeast Asia - Management highlighted progress in Malaysia and Thailand, with ongoing exploration of opportunities in other Southeast Asian countries [37][39] Question: Impact of power crunch - Management stated the impact was minimal, with a focus on energy-abundant locations providing a competitive edge [41][42] Question: Green energy initiatives and CapEx outlook - Management emphasized the long-term strategy for renewable energy development and indicated that CapEx for next year is expected to be higher to support new projects [44][74] Question: M&A strategy - Management expressed interest in M&A opportunities but emphasized a stringent evaluation process to ensure synergies and reasonable valuations [68][70] Question: Current competition landscape and demand outlook - Management reiterated the importance of energy strategy and geographic deployment, expecting stable demand despite competition [51][53]

Financial Reporting and Compliance - The company identified a material weakness in its internal control over financial reporting, related to insufficient accounting personnel with knowledge of U.S. GAAP[131][132]. - As of December 31, 2020, the material weakness in internal control still existed, potentially leading to inaccuracies in financial statements and regulatory compliance issues[134]. - The company expects to incur significant legal, accounting, and compliance costs as a public entity, which may negatively affect its results of operations[138]. - The company's financial statements may not comply with the Exchange Act if its independent registered public accounting firm is denied the ability to practice before the SEC[241]. - The company expects to incur significant legal, accounting, and compliance costs as a public entity, particularly after ceasing to qualify as an "emerging growth company" with revenues below $1.07 billion[302][303]. - The company may face increased difficulty and costs in obtaining director and officer liability insurance as a public company[303]. - The company has chosen to rely on exemptions from certain corporate governance requirements, which may limit shareholder protections[297]. - The company is subject to various corporate governance practices that differ from Nasdaq standards, potentially impacting shareholder rights[296]. Regulatory and Legal Risks - Political tensions between the United States and China could reduce trade and investment levels, adversely impacting the company's business and financial condition[143]. - The company operates under a corporate structure that relies on contractual arrangements with VIEs, which may face regulatory scrutiny and potential penalties if deemed non-compliant[144][145]. - If the company's corporate structure is found illegal, it may lose control over its VIEs, leading to significant operational disruptions[147][148]. - The Foreign Investment Law enacted in 2020 introduces uncertainties regarding the interpretation and implementation of the company's current corporate structure and operations[158]. - The legal system in PRC may limit the company's ability to enforce contractual arrangements effectively, leading to potential operational disruptions[153]. - Future laws or regulations may impose additional compliance requirements on the company's contractual arrangements, affecting its corporate governance and business operations[159]. - The company is subject to regulatory developments that could impact its operations and market perception, including potential litigation or investigations[246]. Currency and Taxation - The company faces exposure to foreign currency exchange rate fluctuations, which could adversely affect its business and financial condition[130]. - A substantial portion of the company's revenues and expenses are denominated in Renminbi, and any significant revaluation of Renminbi may materially impact its results when translated into U.S. dollars[130]. - The withholding tax rate for dividends payable by PRC companies to non-PRC-resident enterprises is 10%, which could limit the company's ability to grow and invest[180]. - The PRC government may impose restrictions on foreign currency access, affecting the company's ability to pay dividends in foreign currencies[192]. - The SAT Bulletin 7 allows for the re-characterization of indirect transfers of assets as direct transfers for tax purposes, potentially subjecting gains to PRC enterprise income tax[219]. - If classified as a PRC resident enterprise, the company could be subject to a 25% PRC enterprise income tax on global income, adversely affecting profitability and cash flow[224]. - The company may not be able to obtain certain benefits under tax treaties for dividends paid by its PRC subsidiary, affecting liquidity requirements[225]. Operational Challenges - The company relies on variable interest entity arrangements for significant operations in China, which may not provide effective operational control compared to direct ownership[150]. - Legal remedies under PRC law for breach of contract may not be as effective as direct ownership, potentially limiting the company's control over its consolidated VIEs[151]. - The registered shareholders of the company's VIEs may have conflicts of interest that could adversely affect the company's ability to control its VIEs and receive economic benefits[155]. - The company must comply with various employee benefit plans mandated by PRC regulations, which may lead to increased labor costs and penalties for non-compliance[204]. - Rising inflation and labor costs in China are expected to continue, potentially affecting the company's profitability and growth[209]. - The enforcement of the PRC Labor Contract Law may increase labor costs and impose limitations on labor practices, adversely affecting business operations[208]. Market and Shareholder Dynamics - The trading price of the company's ADSs has been volatile, ranging from a low of US$13.12 to a high of US$27.47 since trading began on September 30, 2020[242]. - Major holders of ordinary shares have the right to register their shares for sale, which could result in significant price declines if sold in the public market[262]. - The company does not expect to pay dividends in the foreseeable future, relying instead on price appreciation for returns on investments[259]. - Substantial future sales of ADSs, particularly after lock-up agreements expire, could lead to a significant decline in the market price of ADSs[261]. - Negative publicity from short selling practices could lead to a decline in the market price of ADSs, impacting overall business operations[256]. - The dual-class voting structure may prevent the inclusion of Class A ordinary shares in certain stock market indices, potentially affecting trading price and liquidity[254]. Corporate Structure and Governance - The company is classified as a "controlled company" under Nasdaq Rules, with Bain Capital Entities owning over 50% of total voting power[297]. - The company does not have a majority of independent directors on its board, which may afford less protection to shareholders[297]. - If the voting power owned by Bain Capital Entities falls below 50%, the company may not qualify as a "controlled company" under Nasdaq rules, impacting corporate governance exemptions[252]. - The company is an emerging growth company and may take advantage of reduced reporting requirements, including not being required to comply with auditor attestation requirements of Section 404 of Sarbanes-Oxley Act of 2002[290]. - As an emerging growth company, the company elects to use the extended transition period for complying with new or revised financial accounting standards, which may affect the comparability of its financial statements[291]. - The company is a foreign private issuer and is exempt from certain provisions applicable to U.S. domestic public companies, including quarterly reporting requirements on Form 10-Q[292]. - The company is required to file an annual report on Form 20-F within four months of the end of each fiscal year and intends to publish quarterly results as press releases[293].