Core Viewpoint - GDS Holdings reported mixed financial results for Q2 2024, with earnings per share exceeding analyst expectations but revenue falling slightly short [1]. Financial Performance - The company reported earnings per share of -18 cents, which was better than the analyst estimate of -26 cents [1]. - GDS Holdings generated revenue of $388.92 million, which was 0.12% lower than the analyst estimate of $389.37 million [1].

Financial Data and Key Metrics - Revenue growth of 18% and adjusted EBITDA growth of 15% in Q2 2024, reflecting stabilization in China business and successful execution of international strategy [6] - China segment (GDSH) revenue increased by 8.9% and adjusted EBITDA by 4.3% YoY in Q2 2024, driven by a 10.2% increase in total area utilized [13] - International segment (GDSI) revenue increased by 24% and adjusted EBITDA by 80% QoQ in Q2 2024, with a 28 MW increase in IT power utilized [14] - China CapEx totaled RMB 1.8 billion in H1 2024, with full-year guidance maintained at RMB 2.5 billion [15] - International CapEx was RMB 1.8 billion in H1 2024, expected to exceed full-year guidance of RMB 4 billion due to strong demand [15] - GDSH cash balance increased to RMB 8.4 billion at the end of Q2 2024, with net debt to adjusted EBITDA multiple decreasing to 7.2x [17] - GDSI cash balance was RMB 3.1 billion at the end of Q2 2024, pro forma for Series A proceeds [18] Business Line Performance - China business achieved a gross move-in rate of over 20,000 square meters in Q2 2024, the highest in three years, driven by contracts with faster move-in schedules [8] - 45,000 square meters of new capacity brought into service in H1 2024, with over 20% utilization as of June 30 [9] - International business secured 206 MW of new orders in Q2 2024, with a master sales agreement signed for Batam campus [10] - Total customer commitments for International business reached 388 MW, with 101 MW utilized and 287 MW in backlog [11] Market Performance - Singapore-Johor-Batam region emerging as one of the largest data center markets globally, with strong demand driven by regional expansion and AI-related spillover from the US [10] - Secured power capacity in Southeast Asia increased from 711 MW to 797 MW, with additional land purchases in Johor [39] Strategy and Industry Competition - Focus on stabilizing China business by growing EBITDA and generating positive cash flow before financing, while being selective in new business to minimize incremental CapEx [7] - First-mover advantage in Johor, with a strong market position and ability to deliver data centers quickly using state-of-the-art technology [11] - Plans to establish a REIT in China for data center assets, with strong policy support and regulatory approval process underway [17] - Series B equity raising planned for International business, with strong investor interest and potential for mezzanine debt financing [18][33] Management Commentary on Operating Environment and Outlook - 70% of new demand in China driven by AI-related requirements, with the remaining 30% from internet companies and traditional cloud business [27] - Expect continued strong move-in rates in China through 2025, supported by customer AI plans and backlog utilization [46] - International business expected to see a 3.5x increase in revenue-generating capacity over the next 24 months, with significant ramp-up in 2025 [37] Other Important Information - REIT plan in China aims to list on a stock exchange, with an expected offering size of RMB 2 billion and potential debt reduction of RMB 1 billion [52] - Development yield for International business remains consistent in the low-teens, with high-quality customer contracts and long-term commitments [55] Q&A Session Summary Question: REIT Plan in China - REIT will be publicly listed, with an expected offering size of RMB 2 billion and potential debt reduction of RMB 1 billion [52] - Regulatory approvals are underway, with a milestone expected next year [22] Question: AI-Driven Demand in China - 70% of new demand in China is driven by AI-related requirements, with the remaining 30% from internet companies and traditional cloud business [27] Question: International Business Financing - Series B equity raising planned for International business, with potential for mezzanine debt financing [33] Question: International Business Growth - Expect a 3.5x increase in revenue-generating capacity over the next 24 months, with significant ramp-up in 2025 [37] Question: Power Capacity in Southeast Asia - Secured power capacity increased to 797 MW, with additional land purchases in Johor [39] Question: Customer Mix in Southeast Asia - Current customer mix in Southeast Asia is 70% from China and 30% international, with a target of 50-50 in the future [41] Question: Move-in and MSR Trends in China - Move-in rates in China are expected to remain strong through 2025, with MSR trends bottoming out [46][47] Question: Churn and Renewals in China - Churn rate in China has been running at an annualized rate of 5%, with no exceptional churn expected in the near term [58] Question: Singapore Project Timeline - Singapore project expected to launch service before the end of 2026, with land acquisition process underway [59]

GDS Holdings (GDS) came out with a quarterly loss of $0.18 per share versus the Zacks Consensus Estimate of a loss of $0.25. This compares to loss of $0.18 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28%. A quarter ago, it was expected that this company would post a loss of $0.33 per share when it actually produced a loss of $0.27, delivering a surprise of 18.18%.Over the last four quarters, the company has surpassed conse ...

Exhibit 99.1 Hong Kong Exchanges and Clearing Limited, The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange") and Hong Kong Securities Clearing Company Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. GDS Holdings Limited** (the "Company") is controll ...

| --- | --- | |------------------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | 2Q24 Earnings Call | | | 21 August 2024 | | | NASDAQ: GDS HKEX: 9698 | | DISCLAIMER © GDS 2016 1 This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward -looking statements can be identified by terminology such as "may," "will," "expect," ...

Financial Performance - For Q2 2024, GDS Holdings reported a net revenue of RMB 2,826.4 million (USD 388.9 million), representing a year-over-year increase of 14.3%[4] - Adjusted EBITDA for Q2 2024 grew by 6.2% year-over-year to RMB 1,312.2 million (USD 180.6 million), with an adjusted EBITDA margin of 46.4%[4] - Gross profit for Q2 2024 was RMB 637.8 million (USD 87.8 million), a 15.8% increase from RMB 551.0 million in the same period last year[8] - The net loss for Q2 2024 was RMB 231.8 million (USD 31.9 million), slightly higher than the net loss of RMB 225.3 million in the same period last year[10] - Total net revenue for the six months ended June 30, 2024, reached RMB 5,453,736, an increase from RMB 4,880,978 for the same period in 2023, representing a growth of approximately 11.7%[33] - Gross profit for the six months ended June 30, 2024, was RMB 1,211,499, compared to RMB 1,042,684 for the same period in 2023, reflecting a year-over-year increase of about 16.2%[33] - The net loss attributable to the shareholders of the company for the six months ended June 30, 2024, was RMB 571,568, compared to RMB 729,119 for the same period in 2023, showing a reduction in losses by approximately 21.6%[33] Operational Metrics - The total contracted and pre-contracted area reached 756,992 square meters, an increase of 18.7% year-over-year[5] - The operational area increased by 18.8% year-over-year to 630,963 square meters, with a utilization rate of 92.5%[5] - The billing area grew by 20.9% year-over-year to 462,673 square meters, with a billing rate of 73.3%[6] - The total area signed and pre-signed at the end of Q2 2024 was 614,094 square meters, a year-over-year increase of 3.5% from 593,068 square meters[12] - The operational area at the end of Q2 2024 was 580,165 square meters, reflecting a 9.9% year-over-year increase from 528,105 square meters[13] - The billing area at the end of Q2 2024 was 419,976 square meters, a 10.2% increase compared to 380,978 square meters in the same period last year[14] - The operational area occupancy rate was 84.1% at the end of Q2 2024, compared to 58.4% in Q2 2023 and 98.2% in Q1 2024[18] International Expansion - International revenue surged by 690.2% year-over-year to RMB 255.5 million (USD 35.2 million)[8] - The total area signed and pre-signed in international markets reached 142,898 square meters, a significant year-over-year increase of 220.5% from 44,593 square meters[15] - GDS Holdings emphasized a strong focus on strategic goals, contributing to robust performance in Q2 2024, particularly in international markets[6] Expenses and Cost Management - In Q2 2024, total sales and marketing expenses were RMB 22.5 million (USD 3.1 million), a decrease of 1.9% compared to RMB 22.9 million (USD 3.2 million) in the same period last year[9] - General and administrative expenses increased by 51.0% to RMB 127.6 million (USD 17.6 million) from RMB 84.5 million (USD 11.7 million) year-over-year, primarily due to rapid international business expansion[9] - R&D costs in Q2 2024 were RMB 10.9 million (USD 1.5 million), up from RMB 5.0 million (USD 0.7 million) in the same period last year[9] Future Guidance and Strategy - The company confirmed its revenue guidance for 2024 to be between RMB 11,340 million and RMB 11,760 million, with adjusted EBITDA expected to be between RMB 4,950 million and RMB 5,150 million[19] - Capital expenditures for 2024 are expected to remain around RMB 6,500 million[19] - The company plans to expand its market presence and enhance product offerings in the upcoming quarters, focusing on technology advancements and strategic partnerships[34] - The company is focusing on strategic acquisitions to enhance its service offerings and market share, targeting a 20% increase in operational efficiency through these initiatives[38] Financial Position and Stability - As of June 30, 2024, total cash was RMB 9,907.8 million (USD 1,363.4 million) with total short-term debt of RMB 5,597.5 million (USD 770.2 million)[11] - The company reported a total asset value of RMB 79,165,413 as of December 31, 2024, an increase from RMB 74,446,690 as of December 31, 2023, indicating growth in asset base[31] - Total liabilities decreased to RMB 56,290,271 as of December 31, 2024, from RMB 54,322,887 as of December 31, 2023, suggesting improved financial stability[31] - The company’s cash position improved to RMB 9,907,823 as of June 30, 2024, compared to RMB 7,710,711 as of December 31, 2023, indicating better liquidity[31] Risks and Challenges - The company faces risks related to market competition, regulatory changes, and operational challenges that could impact its financial performance[29] - The company emphasizes the importance of addressing inherent risks and uncertainties in its forward-looking statements regarding business growth and revenue expectations[28] Corporate Governance and Structure - The company has a dual-class share structure, with Class A and Class B shares, where Class B shares have 20 votes per share in specific matters[57] - The company’s bylaws allow Class B shareholders to nominate five directors, with voting power of 20 votes per Class B share[58] - The quorum for the shareholders' meeting requires at least two voting shareholders representing no less than one-third of the total voting shares[59]

Core Viewpoint GDS Holdings Limited reported strong financial and operational results for the second quarter of 2024, with significant year-over-year growth in net revenue and adjusted EBITDA, driven by increased demand for data center services in both China and international markets. Financial Highlights - Net revenue for Q2 2024 was RMB2,826.4 million (US$388.9 million), a 14.3% increase from RMB2,472.0 million in Q2 2023, and a 17.7% increase when excluding one-time items [2][4] - Net loss for Q2 2024 was RMB231.8 million (US$31.9 million), slightly higher than the net loss of RMB225.3 million in Q2 2023 [2][5] - Adjusted EBITDA increased by 6.2% year-over-year to RMB1,312.2 million (US$180.6 million), or 14.9% when excluding one-time items [2][5] - Adjusted EBITDA margin was 46.4% in Q2 2024, down from 50.0% in Q2 2023 [2][6] Operational Highlights - Total area committed and pre-committed increased by 18.7% year-over-year to 756,992 sqm as of June 30, 2024 [3] - Area in service grew by 18.8% year-over-year to 630,963 sqm [3] - Commitment rate for area in service was 92.5% as of June 30, 2024, slightly up from 92.4% a year earlier [3] - Area utilized increased by 20.9% year-over-year to 462,673 sqm, with a utilization rate of 73.3% [3][8] Revenue Breakdown - Net revenue from China was RMB2,579.6 million (US$355.0 million), an 8.9% increase year-over-year [4] - International revenue surged to RMB255.5 million (US$35.2 million), a remarkable 690.2% increase from RMB32.3 million in Q2 2023 [4] Cost and Profitability - Cost of revenue for Q2 2024 was RMB2,188.5 million (US$301.2 million), a 13.9% increase from RMB1,921.0 million in Q2 2023 [4] - Gross profit was RMB637.8 million (US$87.8 million), a 15.8% increase year-over-year [4] - Adjusted Gross Profit was RMB1,451.5 million (US$199.7 million), a 10.0% increase year-over-year [4] Business Outlook - The company maintains its guidance for total revenues in 2024 to be between RMB11,340 million and RMB11,760 million, with Adjusted EBITDA expected to be between RMB4,950 million and RMB5,150 million [10]

The company received a bullish pre-earnings lift from a pundit.A significant price-target raise from an analyst led to significant gains for GDS Holdings' (GDS -4.30%) U.S. listed stock on Monday. The Chinese data center company saw its American depositary shares (ADS) rise by an even 10% on the day as a result. That percentage was nearly 10 times the gain of the S&P 500 index, which closed just short of 1% higher.A massive liftWell before market open that day, Jefferies prognosticator Edison Lee made quite ...

Core Viewpoint - The market anticipates GDS Holdings to report a year-over-year decline in earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1] Group 1: Earnings Expectations - GDS Holdings is expected to report a quarterly loss of $0.25 per share, reflecting a year-over-year change of -38.9% [2] - Revenues are projected to be $382.28 million, which is a 12.1% increase from the same quarter last year [2] Group 2: Estimate Revisions - The consensus EPS estimate has been revised 1.43% lower in the last 30 days, indicating a reassessment by analysts [3] - A positive Earnings ESP of +12% suggests that analysts have recently become more optimistic about the company's earnings prospects [6][7] Group 3: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading can predict an earnings beat, especially when combined with a strong Zacks Rank [5] - GDS Holdings currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat conclusively [7] Group 4: Historical Performance - In the last reported quarter, GDS Holdings was expected to post a loss of $0.33 per share but actually reported a loss of $0.27, resulting in a surprise of +18.18% [8] - Over the past four quarters, the company has beaten consensus EPS estimates three times [8] Group 5: Market Sentiment - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [9] - GDS Holdings does not appear to be a compelling earnings-beat candidate, suggesting that investors should consider additional factors before making decisions [9]

Industry Overview - Artificial intelligence (AI) is rapidly expanding into various industries, with significant investments from major tech companies like Alphabet, Microsoft, Meta, and Apple, benefiting infrastructure companies [1] - The data center stocks sector is expected to see the highest growth among all capital goods markets, with a forecasted compound annual growth rate (CAGR) of 24% from 2024 to 2027 [1] Company Summaries GDS Holdings (GDS) - GDS Holdings, based in Hong Kong, develops and operates data centers in China and Southeast Asia, with a focus on expanding its international footprint [3] - The company reported a 5.4% year-over-year increase in total area committed and pre-committed by customers, and a 12.5% increase in area in service [3] - Despite a 9.1% increase in sales and growing customer commitments, GDS is not yet profitable but is heavily investing in new facilities [3] - GDS is considered undervalued, with an enterprise value of $8.09 billion compared to a market cap of $2.15 billion, leading to analyst optimism and a price target suggesting a 45% upside to $14.89 per share [4] Vertiv (VRT) - Vertiv provides critical digital infrastructure solutions, including power management and cooling systems essential for data centers [5] - The company reported a 114.1% year-over-year growth in EPS and a 12.6% revenue growth in its recent second quarter, with a 60% year-over-year increase in organic orders driven by AI deployments [5][6] - Analysts project an average price target of $105.37 per share for Vertiv, indicating a 55% potential upside from current levels [6] Silicon Motion (SIMO) - Silicon Motion manufactures solid-state memory drives, expecting sales growth of 25-30% this year, with a 15% sequential increase in quarterly revenue reported recently [7] - The company anticipates full-year revenue between $800 million and $830 million, representing a 25% to 30% year-over-year increase [7] - SIMO stock trades at a price-to-earnings (P/E) ratio of 26.6, below the sector average, with 11 out of 14 analysts recommending a buy, and an average price target of $93.89 per share suggesting a potential upside of 58% [8]