Summary of GDS Holdings and DayOne 2Q25 Results Company Overview - **Company**: GDS Holdings (GDS/9698.HK) - **Industry**: Data Center and Cloud Services Key Financial Results - **GDS Holdings 2Q25 Results**: - **Net Revenue**: RMB 2.9 billion, up 12% YoY, beating consensus estimates by 1% and 3% respectively [3][6] - **Adjusted EBITDA**: RMB 1.372 billion, up 11% YoY, exceeding estimates by 5% and 3% respectively [3][6] - **Net Debt/EBITDA**: Reduced to <6x post C-REIT listing, indicating improved financial health [1][9] - **DayOne 2Q25 Results**: - **Revenue**: US$ 85.5 million, up 144% YoY, slightly below estimates by 1% [10] - **Adjusted EBITDA**: US$ 29.7 million, up 156% YoY, exceeding estimates by 11% [10] - **Adjusted EBITDA Margin**: Expanded to 34.7% [10] Market Trends and Management Insights - **AI Demand**: Management noted a quiet period for AI demand in 2Q25 due to uncertainties in chip availability, but remains optimistic about future demand driven by next-gen Nvidia chips [1][7] - **Capacity Growth**: GDS is preparing for a multi-year growth phase with 900MW capacity held for future development, aimed at reducing lead times [1][9] - **New Commitments**: GDS China secured 14.4k sqm of new commitments, reflecting a 2% QoQ and 8% YoY increase [6][7] Operational Metrics - **Area Utilized**: Increased by 9% YoY, with a utilization rate of 77.5% [7] - **MSR (Monthly Service Revenue)**: Stable YoY and improved by 4% QoQ, influenced by market pricing and data center site mix [7] Guidance and Future Outlook - **Revenue and EBITDA Guidance**: Management maintains FY25 revenue and adjusted EBITDA guidance unchanged, with updated capex guidance of RMB 2.7 billion net of proceeds [7] - **Growth Strategy**: DayOne is ahead of schedule in achieving its 1GW commitment target, with plans for expansion in Europe and APAC [9][11] Risks and Considerations - **Price Target Risks**: Key risks include below-expected move-in demand, slower overseas revenue ramp-up, and customer churn [12] - **Investment Rating**: GDS is rated as a "Buy" with a 12-month target price of US$40/HK$39, indicating a potential upside of approximately 26.6% [13] Conclusion GDS Holdings and DayOne have demonstrated strong financial performance in 2Q25, with positive growth metrics and a constructive outlook for the future. Management's focus on capacity expansion and readiness for AI demand positions the companies favorably in the evolving data center market.

Core Viewpoint - The company, GDS Holdings Limited, reported strong financial results for the first half of 2025, showing significant growth in revenue and profitability, alongside strategic investments in data center expansion [1] Financial Performance - For the first half of 2025, GDS achieved a net revenue of approximately 56.23 billion yuan, representing a year-on-year increase of 12.2% [1] - The gross profit was around 13.34 billion yuan, reflecting a year-on-year growth of 22.71% [1] - The net profit attributable to ordinary shareholders was approximately 6.64 billion yuan, marking a turnaround from a loss to profitability [1] Strategic Developments - GDS's equity investment target, DayOne, announced plans to construct a large-scale data center in Lahti, Finland, with an estimated total investment of about 12 billion euros, expected to be operational by 2027 [1] - The potential total capacity of the data center is projected to be 128 megawatts, with the first server cluster having a capacity of 50 megawatts [1] - The company is reportedly advancing a Series C equity financing round to support future project development and market expansion [1] - Management indicated that the performance of the equity financing on the first day exceeded expectations, with DayOne aiming for an initial public offering within 18 months [1]

值得注意的是，万国数据股权投资对象DayOne近日宣布，将在芬兰拉赫蒂建设超大规模数据中心，预 计2027年投运，总投资额可达约12亿欧元，该数据中心的潜在总容量预计为128兆瓦，首个服务器集群 的容量为50兆瓦。此外，市场有消息称，目前该公司正在推进C轮股权融资，以支持后续项目建设和市 场拓展。管理层于业绩电话会议上称"股权融资第一天表现超出预期"，据悉DayOne目标在18个月内进 行首次公开募股。 消息面上，万国数据发布业绩，于2025年上半年，实现净收入约56.23亿元，同比增长12.2%；毛利约 13.34亿元，同比增长22.71%；归属于万国数据控股有限公司普通股股东的净利润为约6.64亿元，同比 扭亏为盈。 万国数据-SW(09698)绩后高开逾6%，截至发稿，涨6.45%，报33.32港元，成交额664.08万港元。 ...

Group 1 - The article focuses on the Asia Value & Moat Stocks research service, which targets value investors looking for significant discrepancies between stock prices and intrinsic values, particularly in the Asian market [1] - The service emphasizes deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) stocks, as well as wide moat stocks that represent high-quality businesses with strong earnings potential [1] - The author provides a range of watch lists with monthly updates to assist investors in identifying potential investment opportunities in the Hong Kong market [1]

Summary of GDS Holdings Conference Call Company Overview - **Company**: GDS Holdings Limited - **Industry**: Data Center and Cloud Services Key Financial Performance - **Q2 2025 Revenue**: Increased by 12.4% year-over-year, with adjusted EBITDA growth of 11.2% [3] - **Total Usage Area**: Grew by 14.1%, while the monthly service revenue (MSR) per square meter decreased by 1.7% [3] - **Adjusted EBITDA Margin**: 47.3%, slightly down from 47.8% in the same period of 2020 [3] - **Impact of Asset Divestiture**: Future revenue and EBITDA growth data will not be directly comparable due to asset divestiture, with an expected reduction of approximately 6 percentage points in year-over-year growth rates if not adjusted for asset sales [2][3] Capital Market Activities - **Capital Raised**: GDS raised a net amount of $676 million through convertible bonds and stock issuance to strengthen its balance sheet [2][5] - **Convertible Bonds**: Issued a 7-year convertible bond raising $535 million at a coupon rate of 2.25% with a conversion premium of 35% [5] - **Asset-backed Securities (ABS)**: Completed China's first data center ABS transaction, demonstrating the ability to recover capital from data center assets [6] Strategic Developments - **AI Infrastructure Preparation**: Despite short-term uncertainties in chip supply, GDS is confident in long-term AI demand and has begun site preparations for AI infrastructure [2][7] - **Future Capacity Plans**: Plans to develop approximately 900 MW of power land, particularly around Beijing, Shanghai, and Shenzhen, to meet upcoming AI demands [4][9] - **Day One Capacity**: Added 246 MW of customer commitment capacity, bringing total commitments to over 780 MW, with a goal of reaching 1 GW in three years [8] Market and Customer Insights - **Customer Base**: Currently, about 30% of committed power comes from international clients, with a long-term goal of achieving a 50:50 distribution between international and Chinese clients [14] - **AI Demand**: AI demand is expected to be concentrated in inference applications, which are sensitive to delays and require large-scale infrastructure [7][11] Future Outlook - **IPO Plans**: GDS plans to conduct an IPO within the next 18 months, with potential for additional funding rounds driven by business performance [12] - **Debt Management**: Aiming to maintain a net debt to EBITDA ratio around 5 times, with flexibility to adjust based on new investment opportunities [10] Additional Considerations - **Market Stability**: The market has remained stable since mid-last year, with expectations of continued low single-digit percentage declines in MSR due to contract price resets [11][12] - **Geographic Expansion**: GDS is expanding in Europe, particularly in Finland, where it has secured significant commitments from major clients [13] Conclusion GDS Holdings is positioned for growth with a strong focus on AI infrastructure, strategic capital management, and geographic expansion, while navigating challenges in the current market environment.

8月20日，万国数据(GDS)盘中上涨2.22%，截至21:44，报32.29美元/股，成交1111.6万美元，总市值 66.64亿美元。 财务数据显示，截至2025年03月31日，万国数据收入总额27.23亿人民币，同比增长11.96%；归母净利 润7.63亿人民币，同比增长320.64%。 大事提醒： 8月20日，万国数据将于(美东)盘前披露2025财年中报（数据来源于纳斯达克官网，预计披露日期为美 国当地时间，实际披露日期以公司公告为准）。 资料显示，万国数据控股有限公司(纳斯达克股票代码:GDS;港交所股票代码:9698)是中国及东南亚地区 领先的高性能数据中心运营商和服务商。公司的数据中心分布于对高性能数据中心需求广泛的中国核心 经济枢纽地区。为了满足客户更广泛的需求,公司还根据客户的选择在非一线城市地区建设和运营数据 中心。公司的数据中心规模大,电力供应充沛、密度高且高效,所有关键系统均具备多重冗余。公司中立 于运营商及云服务提供商,客户可自由选择与主要电信运营商连接,以及接入托管于公司数据中心的多家 云服务提供商。万国数据可为客户提供托管和管理服务,包括与领先的公有云进行直接私有连接、独特 创新 ...

格隆汇8月20日｜万国数据(9698.HK)公告，2025年第二季度净收入29亿元，同比增长12.4%；净亏损 7060万元，较去年同期的2.32亿元有所收窄；经调整EBITDA为13.72亿元，同比增长11.2%。截至2025 年6月30日，签约及预签约的总面积为66.4万平方米，同比增加8.1%。计费面积为47.92万平方米，同比 增加14.1%。运营面积为61.81万平方米，同比增加6.5%。 ...

于2025年上半年，实现净收入约56.23亿元，同比增长12.2%;毛利约13.34亿元，同比增长22.71%;归属于 万国数据控股有限公司普通股股东的净利润为约6.64亿元，同比扭亏为盈。 万国数据主席兼首席执行官黄伟先生表示："我们严谨的执行力推动了又一个季度稳健的运营及财务业 绩。我们在持续加速交付积压订单的同时，仍保持对新订单的筛选策略。我们的C-REIT在上海证券交 易所的成功首次公开发售标志着一个关键战略里程碑。展望下半年，在人工智能演进的势头带动下，我 们已做好在一线市场捕捉新商机的準备。" 首席财务官Dan Newman先生表示："于2025年第二季度，我们的收入及经调整EBITDA同比增长12.4% 及11.2%，经调整EBITDA利润率为47.3%。在融资方面，我们通过发行新的可转换优先票据及股权融资 筹集所得款项净额676百万美元。我们新建立的C-REIT平台为我们提供了更高的融资灵活性。我们仍然 专注于为我们的业务合作伙伴及股东创造可持续的长期价值。" 万国数据-SW(09698)公布2025年第二季度业绩，净收入同比增加12.4%至29亿元。毛利为约6.89亿元， 同比增加21.8% ...

Group 1 - GDS Holdings reported a quarterly loss of $0.06 per share, better than the Zacks Consensus Estimate of a loss of $0.11, and improved from a loss of $0.18 per share a year ago, representing an earnings surprise of +45.45% [1] - The company posted revenues of $404.87 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.48%, and compared to year-ago revenues of $388.92 million [2] - GDS Holdings shares have increased approximately 33% since the beginning of the year, outperforming the S&P 500's gain of 9% [3] Group 2 - The earnings outlook for GDS Holdings is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for GDS Holdings was favorable ahead of the earnings release, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$0.13 on revenues of $402.1 million, and -$0.12 on revenues of $1.59 billion for the current fiscal year [7] Group 3 - The Technology Services industry, to which GDS Holdings belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Another company in the same industry, Full Truck Alliance Co. Ltd. Sponsored ADR, is expected to report quarterly earnings of $0.16 per share, reflecting a year-over-year change of +23.1% [9] - Full Truck Alliance Co. Ltd. Sponsored ADR's revenues are anticipated to be $432.22 million, representing a 13.6% increase from the year-ago quarter [10]

[Announcements and Company Information](index=1&type=section&id=Announcements%20and%20Company%20Information) This section provides official announcements and details about the company's profile and board of directors [Announcement Statement](index=1&type=section&id=Announcement%20Statement) GDS Holdings Limited released its unaudited Q2 2025 financial results and interim report, highlighting its dual-class share structure and potential risks - The company released its unaudited Q2 2025 financial results announcement and interim report[2](index=2&type=chunk)[3](index=3&type=chunk) - The company operates under a dual-class share structure, alerting investors to potential risks[1](index=1&type=chunk) [Company Profile and Board of Directors](index=1&type=section&id=Company%20Profile%20and%20Board%20of%20Directors) GDS Holdings Limited, registered in the Cayman Islands and operating in Hong Kong, lists its board members as of August 20, 2025 - The company, GDS Holdings Limited, is registered in the Cayman Islands, operates in Hong Kong, and has stock code 9698[2](index=2&type=chunk) - As of August 20, 2025, the Board of Directors includes Chairman Mr. William Wei Huang, Vice Chairman Mr. Sio Tat Hiang, and several other directors and independent directors[3](index=3&type=chunk) [Q2 2025 Performance Overview](index=3&type=section&id=Q2%202025%20Performance%20Overview) This section summarizes GDS Holdings' financial and operational performance for the second quarter of 2025, including management's insights [Q2 2025 Financial Highlights](index=3&type=section&id=Q2%202025%20Financial%20Highlights) In Q2 2025, GDS Holdings reported a 12.4% year-over-year net revenue increase, a significant reduction in net loss, and an 11.2% rise in adjusted EBITDA Q2 2025 Financial Summary | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | YoY Growth | | :--- | :--- | :--- | :--- | | Net Revenue | 2,900.3 | 2,579.6 | 12.4% | | Net Loss | 70.6 | 231.8 | Decreased 70% | | Net Loss Margin | 2.4% | 9.0% | Decreased 6.6 percentage points | | Adjusted EBITDA | 1,371.8 | 1,233.2 | 11.2% | | Adjusted EBITDA Margin | 47.3% | 47.8% | Decreased 0.5 percentage points | [Q2 2025 Operational Highlights](index=3&type=section&id=Q2%202025%20Operational%20Highlights) As of June 30, 2025, GDS Holdings saw an 8.1% year-over-year increase in total committed and pre-committed area and a 14.1% rise in utilized area Q2 2025 Operational Metrics | Metric | June 30, 2025 (sqm) | June 30, 2024 (sqm) | YoY Growth | | :--- | :--- | :--- | :--- | | Total Committed and Pre-committed Area | 663,959 | 614,094 | 8.1% | | Utilized Area | 479,186 | 419,976 | 14.1% | | Area in Service | 618,060 | 580,165 | 6.5% | | Utilization Rate | 77.5% | 72.4% | Increased 5.1 percentage points | [Management Commentary](index=3&type=section&id=Management%20Commentary) CEO William Huang highlighted robust operational and financial performance and the successful C-REIT IPO, while CFO Dan Newman noted revenue and adjusted EBITDA growth and USD 676 million in financing - CEO Mr. William Wei Huang stated that the company's rigorous execution drove solid performance and successfully completed the C-REIT IPO on the Shanghai Stock Exchange, preparing for new AI-driven business opportunities[9](index=9&type=chunk)[11](index=11&type=chunk) - CFO Mr. Dan Newman noted a 12.4% and 11.2% year-over-year increase in revenue and adjusted EBITDA, respectively, and raised **USD 676.5 million** through convertible preferred notes and equity financing, with the C-REIT platform enhancing financing flexibility[11](index=11&type=chunk) [Q2 2025 Financial Results for Continuing Operations](index=4&type=section&id=Q2%202025%20Financial%20Results%20for%20Continuing%20Operations) This section details GDS Holdings' financial performance for continuing operations in Q2 2025, covering revenue, costs, profitability, other income/expenses, net loss, and adjusted EBITDA [Revenue and Costs](index=4&type=section&id=Revenue%20and%20Costs) Q2 2025 net revenue grew 12.4% year-over-year to RMB 2,900.3 million due to data center expansion, with cost of revenue increasing 9.8% to RMB 2,211.4 million Revenue and Cost Summary | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | YoY Growth | | :--- | :--- | :--- | :--- | | Net Revenue | 2,900.3 | 2,579.6 | 12.4% | | Cost of Revenue | 2,211.4 | 2,013.9 | 9.8% | [Profitability Metrics](index=4&type=section&id=Profitability%20Metrics) Q2 2025 gross profit increased 21.8% to RMB 688.9 million, with gross margin rising to 23.8%, while adjusted gross profit grew 14.0% to RMB 1,509.5 million, reaching an adjusted gross margin of 52.0% Profitability Summary | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | YoY Growth | | :--- | :--- | :--- | :--- | | Gross Profit | 688.9 | 565.7 | 21.8% | | Gross Margin | 23.8% | 21.9% | Increased 1.9 percentage points | | Adjusted Gross Profit | 1,509.5 | 1,324.3 | 14.0% | | Adjusted Gross Margin | 52.0% | 51.3% | Increased 0.7 percentage points | [Other Income and Expenses](index=5&type=section&id=Other%20Income%20and%20Expenses) Q2 2025 sales and marketing expenses rose 47.9% to RMB 28.5 million, general and administrative expenses increased 46.6% to RMB 113.0 million, while net interest expense decreased 10.1% to RMB 405.0 million Other Income and Expenses Summary | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Sales and Marketing Expenses (excluding share-based compensation) | 28.5 | 19.3 | Increased 47.9% | | General and Administrative Expenses (excluding share-based compensation, depreciation, amortization, etc.) | 113.0 | 77.1 | Increased 46.6% | | Research and Development Costs | 8.8 | 10.9 | Decreased 19.3% | | Net Interest Expense | 405.0 | 450.3 | Decreased 10.1% | | Foreign Currency Exchange Gain | 1.4 | 3.4 | Decreased 58.8% | | Other Income, Net | 9.2 | 7.2 | Increased 27.8% | | Income Tax Expense | 64.9 | 59.9 | Increased 8.3% | | Share of Results of Equity Method Investments | (25.9) | 0 | First-time Loss | [Net Loss and Earnings Per Share](index=5&type=section&id=Net%20Loss%20and%20Earnings%20Per%20Share) Q2 2025 net loss significantly narrowed to RMB 70.6 million from RMB 231.8 million year-over-year, with basic loss per ADS decreasing to RMB 0.46 Net Loss and EPS Summary | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Net Loss | 70.6 | 231.8 | Decreased 70% | | Basic Loss Per Ordinary Share | 0.06 | 0.16 | Decreased 62.5% | | Basic Loss Per ADS | 0.46 | 1.30 | Decreased 64.6% | [Adjusted EBITDA](index=6&type=section&id=Adjusted%20EBITDA) Q2 2025 adjusted EBITDA increased 11.2% year-over-year to RMB 1,371.8 million, with the adjusted EBITDA margin slightly decreasing to 47.3% Adjusted EBITDA Summary | Metric | Q2 2025 (RMB million) | Q2 2024 (RMB million) | YoY Growth | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | 1,371.8 | 1,233.2 | 11.2% | | Adjusted EBITDA Margin | 47.3% | 47.8% | Decreased 0.5 percentage points | [Liquidity and Operational Performance](index=6&type=section&id=Liquidity%20and%20Operational%20Performance) This section reviews GDS Holdings' liquidity position, including cash reserves and debt, alongside key sales and data center operational metrics [Liquidity](index=6&type=section&id=Liquidity) As of June 30, 2025, the company held RMB 13,123.8 million in cash, with total short-term debt at RMB 4,493.1 million and long-term debt at RMB 41,942.2 million, having secured RMB 4,451.0 million in new debt financing and USD 676.5 million from convertible notes and equity Liquidity Position | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Cash | 13,123.8 | 7,867.6 | | Total Short-term Debt | 4,493.1 | 4,977.8 | | Total Long-term Debt | 41,942.2 | 38,084.3 | - In Q2 2025, the company secured **RMB 4,451.0 million** in new debt financing and refinancing credit[18](index=18&type=chunk) - The company raised net cash proceeds of approximately **USD 534.9 million** from new convertible preferred notes and **USD 141.6 million** from new equity issuance, totaling **USD 676.5 million**[18](index=18&type=chunk) [Sales and Data Center Resources](index=7&type=section&id=Sales%20and%20Data%20Center%20Resources) At the end of Q2 2025, total committed and pre-committed area grew 8.1% year-over-year to 663,959 sqm, with area in service increasing 6.5% to 618,060 sqm, and committed rate for area in service at 91.5% Data Center Area Metrics | Metric | End of Q2 2025 (sqm) | End of Q2 2024 (sqm) | End of Q1 2025 (sqm) | YoY Growth | QoQ Growth | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Committed and Pre-committed Area | 663,959 | 614,094 | 649,561 | 8.1% | 2.2% | | Area in Service | 618,060 | 580,165 | 610,685 | 6.5% | 1.2% | | Area Under Construction | 132,235 | 117,861 | 132,208 | 12.2% | Flat | Data Center Commitment Rates | Metric | End of Q2 2025 | End of Q2 2024 | End of Q1 2025 | | :--- | :--- | :--- | :--- | | Committed Rate for Area in Service | 91.5% | 92.3% | 90.9% | | Pre-committed Rate for Area Under Construction | 74.7% | 66.9% | 71.6% | - In Q2 2025, net increase in total committed area was **14,398 sqm**, primarily due to **8,343 sqm** of churn[19](index=19&type=chunk) [Move-in Status](index=7&type=section&id=Move-in%20Status) At the end of Q2 2025, utilized area increased 14.1% year-over-year to 479,186 sqm, with the utilization rate for area in service rising to 77.5% Utilized Area Metrics | Metric | End of Q2 2025 (sqm) | End of Q2 2024 (sqm) | End of Q1 2025 (sqm) | YoY Growth | QoQ Growth | | :--- | :--- | :--- | :--- | :--- | :--- | | Utilized Area | 479,186 | 419,976 | 462,423 | 14.1% | 3.6% | Utilization Rate for Area in Service | Metric | End of Q2 2025 | End of Q2 2024 | End of Q1 2025 | | :--- | :--- | :--- | :--- | | Utilization Rate for Area in Service | 77.5% | 72.4% | 75.7% | - In Q2 2025, net increase in utilized area was **16,763 sqm**, primarily due to **5,685 sqm** of churn[21](index=21&type=chunk) [Recent Developments and Business Outlook](index=8&type=section&id=Recent%20Developments%20and%20Business%20Outlook) This section covers the successful C-REIT IPO and the company's updated full-year 2025 guidance, reflecting strategic financial adjustments [C-REIT Initial Public Offering and Listing](index=8&type=section&id=C-REIT%20Initial%20Public%20Offering%20and%20Listing) GDS Holdings successfully completed the IPO and listing of its China REIT (C-REIT) on the Shanghai Stock Exchange, raising RMB 2.4 billion, with GDS subscribing to 20% and receiving RMB 2.073 billion in net proceeds - GDS Holdings successfully completed the IPO and listing of its C-REIT on the Shanghai Stock Exchange[23](index=23&type=chunk) - The C-REIT issued **800 million** units at an offering price of **RMB 3.00** per unit, raising a total of **RMB 2.4 billion**[23](index=23&type=chunk) - GDS Holdings subscribed to **20%** of the C-REIT units and is entitled to receive net cash proceeds of approximately **RMB 2.073 billion** after income tax[23](index=23&type=chunk)[24](index=24&type=chunk) - The C-REIT commenced trading on the Shanghai Stock Exchange on August 8, 2025, under fund code 508060[25](index=25&type=chunk) C-REIT Valuation Metrics | Metric | Amount | | :--- | :--- | | Implied EV/EBITDA (based on 2026 forecast EBITDA of RMB 141.8 million) | 16.9x | | Implied Dividend Yield Per Unit (based on 2026 forecast distributable cash flow of RMB 124.8 million) | 5.2% | [Full-Year 2025 Guidance](index=9&type=section&id=Full-Year%202025%20Guidance) The company maintains its 2025 total revenue and adjusted EBITDA guidance, while total capital expenditure is revised down to approximately RMB 2,700 million due to C-REIT proceeds Full-Year 2025 Guidance Summary | Metric | Full-Year 2025 Guidance (RMB million) | Change | | :--- | :--- | :--- | | Total Revenue | 11,290 - 11,590 | Unchanged | | Adjusted EBITDA | 5,190 - 5,390 | Unchanged | | Total Capital Expenditure (Investing Cash Flow) | approx. 2,700 | Revised down from approx. 4,300 | - The capital expenditure reduction is primarily due to net cash proceeds of approximately **RMB 1,600 million** reinvested from the C-REIT transaction[26](index=26&type=chunk) [Supplementary Information](index=9&type=section&id=Supplementary%20Information) This section provides details on the upcoming conference call, non-GAAP disclosures, exchange rate information, preliminary financial data statement, company overview, safe harbor statement, and investor contacts [Conference Call](index=9&type=section&id=Conference%20Call) Management will host a conference call on August 20, 2025, at 8:00 AM EDT to discuss financial results and address investor and analyst questions - The conference call will be held on August 20, 2025, at 8:00 AM U.S. Eastern Time[28](index=28&type=chunk) - A live webcast and replay of the conference call will be available on the company's investor relations website[29](index=29&type=chunk) [Non-GAAP Disclosure](index=10&type=section&id=Non-GAAP%20Disclosure) The company uses non-GAAP financial measures like adjusted EBITDA and adjusted gross profit to assess operational performance, acknowledging their limitations and supplementary nature to GAAP metrics - The company uses non-GAAP metrics such as adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit, and adjusted gross margin to evaluate operating performance[30](index=30&type=chunk) - Non-GAAP metrics exclude items related to capital structure, asset-based expenses, non-cash expenditures, and other income and expenses not reflective of operating performance[30](index=30&type=chunk) - The company believes gross profit does not accurately reflect core operating performance due to high upfront depreciation and amortization costs for new data centers[31](index=31&type=chunk) - Non-GAAP metrics are not defined by U.S. GAAP, have limitations, and should not be considered in isolation or as a substitute for GAAP measures[31](index=31&type=chunk)[32](index=32&type=chunk) [Exchange Rate Information](index=11&type=section&id=Exchange%20Rate%20Information) For reader convenience, RMB amounts in the announcement are converted to USD using the Federal Reserve H.10 statistical release noon buying rate of RMB 7.1636 to USD 1.00, effective June 30, 2025 - RMB to USD exchange rate is converted at **RMB 7.1636 to USD 1.00**, based on the Federal Reserve H.10 statistical release effective June 30, 2025[34](index=34&type=chunk) [Preliminary Unaudited Financial Information Statement](index=11&type=section&id=Preliminary%20Unaudited%20Financial%20Information%20Statement) The unaudited financial information contained in the announcement is preliminary and may be subject to adjustments during the year-end audit, potentially leading to material differences - The unaudited financial information in this announcement is preliminary and may be adjusted during the year-end audit, potentially resulting in material differences[35](index=35&type=chunk) [Company Overview](index=12&type=section&id=Company%20Overview) GDS Holdings Limited is a leading high-performance data center developer and operator in mainland China, offering colocation and value-added services to a diverse client base, and holds a 35.6% minority interest in DayOne Data Centers Limited - GDS Holdings is a leading developer and operator of high-performance data centers in mainland China[36](index=36&type=chunk) - The company provides colocation and a range of value-added services, including managed hybrid cloud services, managed network services, and resale of public cloud services[36](index=36&type=chunk) - Key client segments include hyperscale cloud service providers, large internet companies, financial institutions, and telecommunications carriers[36](index=36&type=chunk) - The company holds a **35.6%** minority interest in DayOne Data Centers Limited, which develops and operates data centers in international markets[36](index=36&type=chunk) [Safe Harbor Statement](index=12&type=section&id=Safe%20Harbor%20Statement) The announcement contains forward-looking statements subject to inherent risks and uncertainties that could cause actual results to differ materially, with no obligation to update unless required by law - The announcement contains forward-looking statements subject to inherent risks and uncertainties[37](index=37&type=chunk) - Numerous factors could cause actual results to differ materially from forward-looking statements, including business growth, market demand, changes in the regulatory environment, and industry competition[37](index=37&type=chunk)[38](index=38&type=chunk) - The company undertakes no obligation to update any forward-looking statements unless required by applicable law[38](index=38&type=chunk) [Investor and Media Contacts](index=13&type=section&id=Investor%20and%20Media%20Contacts) Contact information for GDS Holdings Limited and Piacente Financial Communications is provided for investor and media inquiries - Investors and media can contact Laura Chen at GDS Holdings Limited or Ross Warner and Brandi Piacente at Piacente Financial Communications[39](index=39&type=chunk)[40](index=40&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=15&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including the balance sheet, income statement, comprehensive income statement, and cash flow statement [Balance Sheet](index=15&type=section&id=Balance%20Sheet) As of June 30, 2025, total assets increased to RMB 79,199,055 thousand, driven by a significant rise in cash, while total liabilities grew to RMB 53,607,981 thousand, primarily due to an increase in non-current convertible bonds payable Consolidated Balance Sheet Summary | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 79,199,055 | 73,648,628 | Increased 7.5% | | Cash | 13,123,751 | 7,867,659 | Increased 66.8% | | Property and Equipment, Net | 39,483,401 | 40,204,133 | Decreased 1.8% | | Total Liabilities | 53,607,981 | 49,979,995 | Increased 7.3% | | Convertible Bonds Payable, Non-current | 12,344,675 | 8,576,583 | Increased 43.9% | | Total Shareholders' Equity | 24,515,047 | 22,587,977 | Increased 8.5% | [Income Statement](index=16&type=section&id=Income%20Statement) For the three months ended June 30, 2025, total net revenue was RMB 2,900,288 thousand, gross profit was RMB 688,926 thousand, and net loss from continuing operations was RMB 70,584 thousand Consolidated Income Statement Summary | Metric | Q2 2025 (RMB thousands) | Q2 2024 (RMB thousands) | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Total Net Revenue | 2,900,288 | 2,579,594 | 5,623,446 | 5,011,828 | | Gross Profit | 688,926 | 565,726 | 1,333,751 | 1,086,929 | | Net (Loss) Income from Continuing Operations | (70,584) | (172,845) | 693,490 | (445,357) | | Net (Loss) Income Attributable to Ordinary Shareholders of GDS Holdings Limited | (85,921) | (239,218) | 663,645 | (598,503) | | Basic Loss Per Ordinary Share (Q2) | (0.06) | (0.16) | | | | Basic Earnings Per Ordinary Share (H1) | | | 0.44 | (0.41) | [Statement of Comprehensive (Loss) Income](index=18&type=section&id=Statement%20of%20Comprehensive%20(Loss)%20Income) For the three months ended June 30, 2025, net loss was RMB 70,584 thousand, with comprehensive income totaling RMB 64,045 thousand, and comprehensive income attributable to GDS Holdings Limited shareholders at RMB 61,902 thousand Consolidated Statement of Comprehensive (Loss) Income Summary | Metric | Q2 2025 (RMB thousands) | Q2 2024 (RMB thousands) | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Net (Loss) Income | (70,584) | (231,768) | 693,490 | (576,699) | | Comprehensive (Loss) Income | 64,045 | (248,102) | 841,159 | (649,058) | | Comprehensive (Loss) Income Attributable to Shareholders of GDS Holdings Limited | 61,902 | (244,877) | 837,855 | (645,930) | [Cash Flow Statement](index=19&type=section&id=Cash%20Flow%20Statement) For the three months ended June 30, 2025, net cash provided by operating activities was RMB 865,123 thousand, net cash used in investing activities was RMB 364,526 thousand, and net cash provided by financing activities was RMB 5,144,746 thousand, increasing cash and restricted cash to RMB 13,321,389 thousand at period-end Consolidated Cash Flow Statement Summary | Metric | Q2 2025 (RMB thousands) | Q2 2024 (RMB thousands) | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 865,123 | 492,517 | 1,645,195 | 367,545 | | Net Cash Used in Investing Activities | (364,526) | (491,929) | (1,733,939) | (2,496,311) | | Net Cash Provided by Financing Activities | 5,144,746 | 2,255,305 | 5,419,778 | 4,286,549 | | Cash and Restricted Cash at End of Period | 13,321,389 | 10,096,689 | 13,321,389 | 10,096,689 | [GAAP to IFRS Reconciliation](index=20&type=section&id=GAAP%20to%20IFRS%20Reconciliation) This section provides a reconciliation of GDS Holdings' unaudited condensed consolidated financial information between U.S. GAAP and IFRS, with limited assurance by KPMG [Reconciliation Overview](index=22&type=section&id=Reconciliation%20Overview) GDS Holdings' unaudited interim condensed consolidated financial information is prepared under U.S. GAAP, with a reconciliation provided for significant differences with IFRS, subject to limited assurance by KPMG - The company's financial information is prepared under U.S. GAAP, and a reconciliation with IFRS is provided[56](index=56&type=chunk)[57](index=57&type=chunk) - KPMG conducted limited assurance work on the reconciliation table but did not express an audit opinion or review conclusion[58](index=58&type=chunk)[60](index=60&type=chunk) [Consolidated Income Statement Reconciliation](index=24&type=section&id=Consolidated%20Income%20Statement%20Reconciliation) This report reconciles consolidated income statement data between U.S. GAAP and IFRS for the six months ended June 30, 2024 and 2025, illustrating the impact of leases, convertible bonds, redeemable preferred shares, and long-lived asset impairment on net loss - The income statement reconciliation shows that for H1 2025, net (loss) income from continuing operations was **(RMB 140,747 thousand)** under IFRS, compared to **RMB 693,490 thousand** under U.S. GAAP[64](index=64&type=chunk) - Items such as leases, convertible bonds, redeemable preferred shares, and impairment of long-lived assets are primary drivers of differences between U.S. GAAP and IFRS income statement data[62](index=62&type=chunk)[64](index=64&type=chunk) [Consolidated Balance Sheet Reconciliation](index=26&type=section&id=Consolidated%20Balance%20Sheet%20Reconciliation) This report reconciles consolidated balance sheet data between U.S. GAAP and IFRS as of December 31, 2024, and June 30, 2025, detailing the impact of leases, convertible bonds, redeemable preferred shares, long-lived asset impairment, deconsolidation of subsidiaries, and assets held for sale on assets, liabilities, and equity - The balance sheet reconciliation shows that as of June 30, 2025, total assets were **RMB 77,898,794 thousand** under IFRS, compared to **RMB 79,199,055 thousand** under U.S. GAAP[68](index=68&type=chunk) - Differences in lease accounting treatment lead to significant adjustments for operating lease right-of-use assets and liabilities[66](index=66&type=chunk)[68](index=68&type=chunk) - Differences in classification and measurement of convertible bonds and redeemable preferred shares under U.S. GAAP and IFRS significantly impact liabilities and equity[66](index=66&type=chunk)[68](index=68&type=chunk) [Reconciliation Notes](index=28&type=section&id=Reconciliation%20Notes) This section details the accounting treatment differences between U.S. GAAP and IFRS for leases, convertible bonds, redeemable preferred shares, long-lived asset impairment, deconsolidation of subsidiaries, assets held for sale, and equity method investments [Leases](index=28&type=section&id=Leases) U.S. GAAP uses a dual-classification model for leases, while IFRS classifies all leases as finance leases, leading to "front-loaded" expenses - U.S. GAAP adopts a dual-classification for lessees (finance and operating leases), with operating lease costs recognized on a straight-line basis[69](index=69&type=chunk) - IFRS classifies all leases as finance leases, with right-of-use assets amortized and lease liability interest recognized using the effective interest method, typically resulting in "front-loaded" expenses[69](index=69&type=chunk) [Convertible Bonds Due 2029 and 2030](index=28&type=section&id=Convertible%20Bonds%20Due%202029%20and%202030) U.S. GAAP classifies these convertible bonds as liabilities measured at amortized cost, whereas IFRS separates them into liability and equity components - U.S. GAAP classifies convertible bonds due 2029 and 2030 as liabilities measured at amortized cost[69](index=69&type=chunk) - IFRS classifies them into liability and equity components, with the liability component measured at the present value of a similar non-convertible bond and the equity component as the residual value, with the liability component subsequently measured at amortized cost[69](index=69&type=chunk) [Convertible Bonds Due 2032](index=28&type=section&id=Convertible%20Bonds%20Due%202032) U.S. GAAP classifies convertible bonds due 2032 as liabilities at amortized cost, while IFRS separates them into derivative and non-derivative liability components - U.S. GAAP classifies convertible bonds due 2032 as liabilities measured at amortized cost[69](index=69&type=chunk) - IFRS classifies them into derivative and non-derivative liability components, with the derivative component measured at fair value with changes recognized in profit or loss, and the non-derivative liability component measured at amortized cost[70](index=70&type=chunk) [Company's Redeemable Preferred Shares](index=29&type=section&id=Company's%20Redeemable%20Preferred%20Shares) U.S. GAAP classifies the company's redeemable preferred shares as mezzanine equity, adjusted to redemption value, while IFRS separates them into derivative, non-derivative liability, and equity components - U.S. GAAP classifies the company's redeemable preferred shares as mezzanine equity, adjusted to redemption value using the effective interest method[72](index=72&type=chunk) - IFRS classifies them into derivative, non-derivative liability, and equity components, with each component measured using different methods[72](index=72&type=chunk) [DayOne Data Centers Limited's Redeemable Preferred Shares](index=29&type=section&id=DayOne%20Data%20Centers%20Limited's%20Redeemable%20Preferred%20Shares) U.S. GAAP classifies DayOne's Series A preferred shares as mezzanine equity, while IFRS separates them into liability and equity components, with differences reflected in deconsolidation gains - U.S. GAAP classifies DayOne's Series A preferred shares as mezzanine equity, initially measured at fair value[72](index=72&type=chunk) - IFRS separates them into liability and equity components, with the liability component measured at redemption value and the equity component as the residual amount[73](index=73&type=chunk) - Upon deconsolidation of DayOne, the difference between the U.S. GAAP mezzanine equity carrying amount and IFRS liability is reflected in the gain on deconsolidation of subsidiaries[73](index=73&type=chunk) [Other Redeemable Non-Controlling Interests](index=30&type=section&id=Other%20Redeemable%20Non-Controlling%20Interests) U.S. GAAP classifies redeemable non-controlling interests as mezzanine equity, while IFRS presents them as liabilities measured at fair value with changes recognized in profit or loss - U.S. GAAP classifies redeemable non-controlling interests as mezzanine equity, with subsequent measurement depending on the likelihood of redemption[75](index=75&type=chunk) - IFRS presents them as liabilities measured at fair value, with changes in fair value recognized in profit or loss[75](index=75&type=chunk) [Impairment of Long-Lived Assets](index=30&type=section&id=Impairment%20of%20Long-Lived%20Assets) U.S. GAAP uses a two-step approach for impairment and prohibits reversals, whereas IFRS uses a one-step approach and allows reversals under specific conditions - U.S. GAAP employs a two-step approach to measure and recognize impairment losses for long-lived assets, prohibiting subsequent reversals[75](index=75&type=chunk) - IFRS uses a one-step approach and permits reversals of impairment losses under specific circumstances[76](index=76&type=chunk) [Deconsolidation of Subsidiaries](index=30&type=section&id=Deconsolidation%20of%20Subsidiaries) Both U.S. GAAP and IFRS allocate goodwill based on relative fair value during restructuring or sale, with differences in goodwill balances and reporting unit fair values leading to allocation discrepancies - Both U.S. GAAP and IFRS allocate goodwill based on relative fair value during business restructuring or sale[76](index=76&type=chunk) - Differences in goodwill balances and the relative fair value of reporting units lead to discrepancies in goodwill allocation and gains on deconsolidation of subsidiaries[76](index=76&type=chunk) [Assets Held for Sale](index=31&type=section&id=Assets%20Held%20for%20Sale) Both U.S. GAAP and IFRS classify non-current assets and disposal groups as held for sale if specific criteria are met, with differences in goodwill allocation impacting asset balances - Both U.S. GAAP and IFRS classify non-current assets and disposal groups as held for sale if specific criteria are met[78](index=78&type=chunk) - Differences in goodwill balances and the relative fair value of reporting units lead to discrepancies in goodwill allocation and assets held for sale balances[78](index=78&type=chunk) [Equity Method Investments](index=31&type=section&id=Equity%20Method%20Investments) Both U.S. GAAP and IFRS use the equity method for investments with significant influence but no control, with performance differences arising from varying accounting treatments for leases and long-lived asset impairment - Both U.S. GAAP and IFRS apply the equity method for investments with significant influence but no control[78](index=78&type=chunk) - Differences in investee performance result from varying accounting treatments for transactions like leases and long-lived asset impairment under the two sets of standards[78](index=78&type=chunk) [Dual-Class Share Structure](index=32&type=section&id=Dual-Class%20Share%20Structure) GDS Holdings operates with a dual-class share structure, granting Mr. William Wei Huang enhanced voting rights and board nomination power, which may terminate under specific conditions - The company operates under a dual-class share structure, with share capital comprising Class A and Class B ordinary shares[80](index=80&type=chunk) - Class B ordinary shares carry **20 votes per share** on certain matters, with Mr. William Wei Huang as the beneficiary[80](index=80&type=chunk) - Class B ordinary shares are automatically convertible into Class A ordinary shares under specific circumstances (e.g., if Mr. Huang's shareholding falls below a minimum threshold or due to changes in PRC law), leading to the termination of the dual-class share structure[81](index=81&type=chunk)[82](index=82&type=chunk) - Mr. Huang has the right to nominate five directors, including himself, as long as he holds at least the minimum shareholding percentage of **2.75%**[82](index=82&type=chunk)[84](index=84&type=chunk)