SHANGHAI, China, May 07, 2025 (GLOBE NEWSWIRE) -- GDS Holdings Limited ("GDS Holdings", "GDS" or the "Company") (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high- performance data centers in China, today announced that it will report its first quarter 2025 unaudited financial results after the close of the Hong Kong market and before the open of the U.S. market on May 20, 2025. About GDS Holdings Limited GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698) is a leading developer and operator of ...

Financial Performance - Net revenue for Q4 2024 increased by 9.1% year-over-year to RMB2,690.7 million (US$368.6 million) from RMB2,465.3 million in Q4 2023[5] - Net loss from continuing operations in Q4 2024 was RMB173.4 million (US$23.8 million), significantly improved from a loss of RMB3,074.6 million in Q4 2023[19] - Adjusted EBITDA for Q4 2024 rose by 13.9% year-over-year to RMB1,297.7 million (US$177.8 million), with an adjusted EBITDA margin of 48.2%[20][22] - Full year 2024 net revenue was RMB10,322.1 million (US$1,414.1 million), a 5.5% increase from RMB9,782.4 million in 2023[9] - Full year 2024 adjusted EBITDA increased by 3.0% year-over-year to RMB4,876.4 million (US$668.1 million), with an adjusted EBITDA margin of 47.2%[30][31] - Net income for Q4 2024 was RMB4,111.6 million (US$563.3 million), compared to a net loss of RMB3,164.6 million in the same period last year[38] - Net income for 2024 was RMB3,303.8 million (US$452.6 million), a significant recovery from a net loss of RMB4,285.4 million in 2023[39] - Basic and diluted income per ordinary share in Q4 2024 was RMB2.81 (US$0.39), compared to a loss of RMB2.16 in Q4 2023[39] Operational Metrics - Total area committed and pre-committed increased by 1.8% year-over-year to 629,997 sqm as of December 31, 2024[9] - Area utilized increased by 11.8% year-over-year to 453,094 sqm as of December 31, 2024, with a utilization rate of 73.8%[9] - Total area committed and pre-committed at the end of Q4 2024 was 629,997 sqm, representing a year-on-year increase of 1.8%[48] - Area in service at the end of Q4 2024 was 613,583 sqm, an increase of 11.9% year-on-year[49] - The commitment rate for area in service was 91.9% at the end of Q4 2024, slightly down from 92.5% in Q4 2023[51] Cash and Debt Management - Cash as of December 31, 2024, was RMB7,867.7 million (US$1,077.9 million)[44] - Total short-term debt was RMB4,978.4 million (US$682.0 million) as of December 31, 2024[45] - The company obtained new debt financing and refinancing facilities of RMB5,734.0 million (US$785.5 million) for continuing operations during 2024[46] - GDS Holdings reported total assets of RMB 74.45 billion as of December 31, 2023, a slight decrease from RMB 73.65 billion in 2024[79] - The company’s cash reserves increased to RMB 7.87 billion in 2024 from RMB 7.35 billion in 2023, reflecting a growth of approximately 7%[79] - Total current liabilities increased to RMB 9.08 billion in 2024 from RMB 8.31 billion in 2023, representing a rise of approximately 9%[79] - Long-term borrowings, excluding current portions, decreased to RMB 21.91 billion in 2024 from RMB 23.09 billion in 2023, a reduction of about 5%[79] - The total gross debt as of December 31, 2023, was RMB 5,169,734 thousand (approximately US$ 1,427,212 thousand)[89] Strategic Positioning and Market Outlook - GDS Holdings is strategically positioned in primary economic hubs in China, catering to high-performance data center service demands[74] - The company offers a suite of value-added services, including managed hybrid cloud services, enhancing its competitive edge in the market[74] - GDS Holdings anticipates continued growth in demand for high-performance data centers and related services in China and Southeast Asia[76] - The company expects total revenues for 2025 to be between RMB11,290 million and RMB11,590 million, indicating a year-on-year increase of approximately 9.4% to 12.3%[58] - Adjusted EBITDA for 2025 is projected to be between RMB5,190 million and RMB5,390 million, reflecting a year-on-year increase of approximately 6.4% to 10.5%[58] Research and Development - Research and development costs decreased to RMB6.9 million (US$0.9 million) in Q4 2024 from RMB12.8 million in the same period last year[17] - Research and development expenses for the year ended December 31, 2024, were RMB 36,319, reflecting a commitment to innovation[80]

SHANGHAI, China, April 28, 2025 (GLOBE NEWSWIRE) -- GDS Holdings Limited ("GDS Holdings", "GDS" or the "Company") (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high- performance data centers in China, today announced that it has filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 with the Securities and Exchange Commission (the "SEC") on April 28, 2025 U.S. Eastern Time. The annual report can be accessed on the Company's investor relations website at investors.g ...

Financial Performance - Revenues from consolidated VIEs and their subsidiaries accounted for 96.7%, 97.0%, and 96.1% of total revenues for the years 2022, 2023, and 2024, respectively[34]. - Net revenue increased from RMB9,268.1 million in 2022 to RMB9,782.4 million in 2023, representing a growth of 5.5%[67]. - Net revenue from colocation services accounted for 88.8% of total net revenue in 2024, up from 85.5% in 2022[67]. - The company incurred net losses of RMB1,266.1 million and RMB4,285.4 million in 2022 and 2023, respectively, but recorded net income of RMB3,303.8 million (US$452.6 million) in 2024 primarily due to a gain on deconsolidation of DayOne[112]. - The company anticipates requiring additional capital to meet future needs, with shareholders authorizing the board to issue up to 30% of existing share capital within 12 months from the AGM held on June 27, 2024[82]. Investments and Capital Structure - GDS Holdings Limited made capital contributions or provided intercompany loans to non-VIE subsidiaries of RMB6,312.5 million, RMB1,285.3 million, and RMB1,448.4 million (US$198.4 million) for the years ended December 31, 2022, 2023, and 2024, respectively[46]. - The company holds a 35.6% equity stake in DayOne, which develops and operates data centers in Southeast Asia and Northeast Asia[35]. - The company is developing hyperscale data centers in designated computing hubs to align with the "East Data and West Computation" policy[108]. - The company has entered into definitive agreements to monetize a 70% equity interest in several data centers through an Asset-Backed Securities (ABS) transaction, which has been successfully issued and listed on the Shanghai Stock Exchange[224]. Regulatory and Compliance Risks - The company faces risks related to regulatory changes in China that could adversely affect its operations and growth strategies[59]. - The company is subject to heightened risks of immediate or accelerated repayment under certain data center financing arrangements, potentially impacting cash flow and financial condition[79]. - The evolving regulatory environment in China poses uncertainties for foreign investment in VATS, which includes internet data center services[184]. - The company may face penalties ranging from RMB1,000 to RMB10,000 for unregistered lease agreements for data center buildings[182]. - Non-compliance with data security and privacy laws could result in fines and sanctions, adversely impacting business operations and financial condition[229]. Operational Challenges - The data center business is capital-intensive, and the company expects its capacity to generate capital in the short term will be insufficient to meet anticipated capital requirements[56]. - The company has experienced challenges in managing growth, including obtaining suitable sites for new data centers and maintaining operational efficiency[68]. - The long selling cycle for services requires significant capital and resources, which may affect the company's financial condition if sales efforts are unsuccessful[71]. - Delays in the delivery of new data centers or expansion projects could significantly impact the company's operations and results[120]. Market and Competitive Landscape - Competition from domestic and international data center operators is increasing, potentially impacting revenue and margins[63]. - The company faces significant pricing pressure in the data center industry, which has experienced a sustained downward trend in service pricing due to increased competition and new capacity coming online[150]. - The company competes with state-owned telecommunications carriers and other global telecommunications carriers, facing challenges from competitors with greater resources and brand recognition[157]. Customer Dependency and Revenue Risks - In 2022, two customers generated 25.3% and 20.0% of total net revenue, while in 2023, two customers accounted for 28.3% and 17.1%, and in 2024, 29.0% and 14.4% respectively, indicating a high dependency on a limited number of customers[133]. - Customer agreements allow for early termination, which could lead to significant revenue loss, as penalties for early termination may not cover expected revenues[140]. - The company’s customer base may decline if customers choose to bring data center operations in-house, which could negatively impact demand for services[139]. Technology and Innovation Risks - The company may not be able to keep up with rapidly changing technology, which could lead to obsolescence of its data center infrastructure[202]. - New technologies could provide lower-cost alternatives to the company's services, potentially harming its market position and financial results[204]. Power Supply and Environmental Concerns - The company is a large consumer of power and is subject to risks associated with obtaining sufficient electricity supply, which is critical for business growth[94]. - Local governments in China have implemented "Dual-Control" targets to limit electricity consumption, which may restrict the company's ability to access increased power supply necessary for expansion[95]. - The NDRC's recent reforms have resulted in higher provincial power grid transmission and distribution prices, affecting operational costs[104]. Intellectual Property and Legal Risks - The company faces significant risks related to third-party claims of intellectual property infringement, which could result in substantial legal costs and impact its operations[207]. - The company may incur substantial costs related to litigation for enforcing its intellectual property rights, which could disrupt its business operations[209].

Core Viewpoint - GDS experienced a significant sell-off following its fourth-quarter report, with a 21.5% decline in stock price, despite a year-over-year increase of approximately 231% [1][2]. Financial Performance - GDS reported earnings of $3.08 per American depositary share and sales of $368.6 million in the fourth quarter, but the profit was largely due to one-time accounting events. The company also recorded a loss from continuing operations of $23.8 million [3]. - Revenue increased by 9.1% year-over-year, primarily driven by the expansion of data center operations [3]. Future Guidance - For the full year, GDS is guiding sales between 11.29 billion Chinese yuan ($1.56 billion) and 11.59 billion Chinese yuan ($1.6 billion), indicating an annual sales growth of approximately 11% at the midpoint [4]. - Although the company is positioned for potential sales expansion due to rising demand for data center services driven by AI and other technologies, the conservative sales growth guidance suggests that revenue growth may be slower than investor expectations [5].

Core Viewpoint - GDS Holdings Limited has been upgraded to Strong Buy by Raymond James analyst Frank G. Louthan, with a price target of $53, following a 9.1% year-over-year increase in net revenue for Q4 to CN¥2.69 billion ($371.13 million) [1][2] Group 1: Financial Performance - The revenue increase in Q4 was primarily driven by the ramp-up of data centers [1] - GDS expects FY25 total revenues between CN¥11.29 billion and CN¥11.59 billion, with adjusted EBITDA projected between CN¥5.19 billion and CN¥5.39 billion [1] - Louthan updated 2025 revenue and EBITDA estimates to CN¥11.45 billion and CN¥5.29 billion, respectively, down from CN¥14.08 billion and CN¥6.47 billion [4] Group 2: Market Misunderstanding - There was a misunderstanding regarding the Q4 results and forward guidance, as the reported figures excluded the subsidiary DayOne, which was moved to discontinued operations [2] - Consensus expectations were based on combined results from both GDS and DayOne, leading to a perceived miss in performance [2] Group 3: Strategic Outlook - The spin-off of the P-REIT, while reducing revenue and EBITDA, is viewed as having a net positive effect on valuation [3] - Management is preparing for increased demand for AI services driven by platforms like DeepSeek in China [3] - GDS secured 150 MW in new contracts and has shifted to a quicker 12-month billing cycle from a previous three-year timeline [4]

Core Viewpoint - GDS Holdings experienced a significant sell-off following its latest earnings release, with a nearly 14% decline in American depositary shares, contrasting with the S&P 500's gain of over 1% on the same day [1] Financial Performance - For Q4 2024, GDS reported a revenue increase of 9% year over year, reaching 2.69 billion yuan ($372 million) [2] - The net loss from continuing operations for the same period was slightly over 173 million yuan ($24 million), a significant improvement from the 3.07 billion yuan ($425 million) loss in Q4 2023 [2] Management Commentary - CEO William Huang stated that in 2024, the company executed its business strategy in a disciplined manner, focusing on backlog delivery while being selective with new commitments [3] Future Guidance - GDS anticipates total revenue for 2025 to be between 11.29 billion yuan ($1.56 billion) and 11.59 billion yuan ($1.6 billion), indicating at least 9% growth over 2024 [3] - Non-GAAP adjusted EBITDA is expected to range from 5.19 billion yuan ($718 million) to 5.39 billion yuan ($745 million), with the lower end being 6% above the 2024 figure [4] Market Reaction - The aggressive sell-off following the earnings release is viewed as unjustified, as the results were not disastrous, and the anticipated single-digit growth for 2025 may present a buying opportunity for investors [5]

Financial Data and Key Metrics Changes - In Q4 2024, revenue increased by 9.1% and adjusted EBITDA increased by 13.9% year-on-year [27] - For the full year 2024, revenue increased by 5.5% and adjusted EBITDA increased by 3% year-on-year [27] - Adjusted EBITDA margin for 2024 was 47.2%, down from 48.4% in 2023 [28] - Cash flow before financing for 2024 was positive RMB 379 million [30] - At year-end 2024, cash balance was RMB 7.9 billion and net debt to last quarter annualized adjusted EBITDA multiple was 6.8 times [32] Business Line Data and Key Metrics Changes - Gross move-in during 2024 was 79,000 square meters, the highest in company history, all in Tier 1 markets [15] - Utilization rate at the end of 2024 was 74%, expected to increase to high 70s% by the end of 2025 [16] - Gross additional area committed during 2024 was 49,000 square meters, consistent with the past two years [16] Market Data and Key Metrics Changes - Demand for AI inferencing in Tier 1 markets is expected to grow significantly, with potential demand running into multiples of gigawatts over the next few years [8] - The company has multiple sites suitable for AI inferencing around major cities, with around 900 megawatts of developable capacity remaining after fulfilling new orders [20] Company Strategy and Development Direction - The company remains committed to a strategy focused on Tier 1 markets, prioritizing backlog delivery and selective new business [13] - The asset monetization program is expected to provide flexibility for future investments while maintaining commitments to shareholders [12] - The company aims to achieve steady growth and a stronger financial position through disciplined capital expenditure and recycling capital [12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for AI-related services, particularly in Tier 1 markets, while remaining cautious about chip supply uncertainties [56] - The company anticipates a shift in demand from AI training to AI inferencing, which is expected to benefit its resource positioning [73] - Management expects the utilization rate to rebalance in the Tier 1 market within the next 6 to 12 months [75] Other Important Information - DayOne, now an equity investee, ended 2024 with 467 megawatts of total IT power committed, with expectations of significant growth in the coming years [21] - The company executed its first asset monetization transaction, selling equity in certain data center project companies, with an enterprise value of approximately RMB 2.9 billion [34] Q&A Session Summary Question: Update on the plan to spin off DayOne and IPO schedule - Management plans to list DayOne within 18 months, confident in its growth and potential for a successful IPO [46] Question: Status of C-REIT progress - Significant progress has been made, but specific details cannot be disclosed yet; updates will be provided when allowed [48] Question: CapEx based on existing orders and new order wins - Current CapEx includes the new 152 megawatt order; management is cautious about new orders due to chip supply uncertainties [54][56] Question: Customer types and workloads - Demand is mainly driven by AI inferencing, with improved lead times for order fulfillment now at around 12 months [65] Question: Supply and demand dynamics in Tier 1 markets - The market is starting to rebalance, with expectations for improved pricing and demand driven by established companies [76] Question: Use of ABS proceeds - Proceeds can be used for debt reduction or reinvestment; the ABS transaction was well-timed with new investment opportunities [84] Question: Update on Thailand and Batam projects - The new data center in Thailand is driven by strong customer demand, while the Batam project is progressing well with successful deliveries [88][89]

Core Insights - GDS Holdings reported a quarterly loss of $0.10 per share, outperforming the Zacks Consensus Estimate of a loss of $0.27, and showing improvement from a loss of $0.62 per share a year ago, resulting in an earnings surprise of 62.96% [1] - The company posted revenues of $368.62 million for the quarter ended December 2024, which missed the Zacks Consensus Estimate by 14.41%, but showed an increase from year-ago revenues of $360.07 million [2] - GDS Holdings shares have increased by approximately 49.8% since the beginning of the year, contrasting with a decline of 4.5% in the S&P 500 [3] Earnings Outlook - The earnings outlook for GDS Holdings is mixed, with the current consensus EPS estimate for the coming quarter at -$0.15 on revenues of $445.73 million, and for the current fiscal year at -$0.70 on revenues of $1.79 billion [7] - The company has surpassed consensus EPS estimates in all four of the last quarters, indicating a positive trend in earnings performance [2] Industry Context - The Technology Services industry, to which GDS Holdings belongs, is currently ranked in the top 26% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

4Q24 & FY24 Earnings Call 19 March 2025 NASDAQ: GDS HKEX: 9698 © GDS 2016 0 GDS FY24 HIGHLIGHTS (1)(2) | Customer Commitments • | New customer commitments (net) of +11,055 sqm | | --- | --- | | • | Total area committed increased by 1.8% y/y to 629,997 sqm | | Customer Move-In | • Additional area utilized (net) of +47,792 sqm | | --- | --- | | | • Total area utilized of 453,094 sqm, +11.8% y/y, and utilization rate of 73.8% | This presentation contains forward-looking statements within the meaning of Section ...