Operational Capacity and Development - As of December 31, 2020, the total net floor area in operation was 318,272 square meters, with 94.3% contracted by customers[4] - The total net floor area under construction was 137,070 square meters, with 73.9% pre-contracted by customers[4] - The company operates 51 self-developed data centers with a total net floor area of 310,128 square meters, and approximately 19 third-party data centers with a total net floor area of 8,144 square meters[6] - The total estimated developable net floor area held by the company for future potential development is approximately 480,000 square meters[6] - The company has 14 new self-developed data centers and two existing self-developed data centers under construction, with a total net floor area of 137,070 square meters[6] - As of December 31, 2020, the total signed area (excluding B-O-T joint venture data centers) was 401,554 square meters, with operational area and area under construction being 300,213 square meters and 101,341 square meters respectively[12] - The company constructed 12 new self-developed data centers in first-tier markets in 2020, with a total net room area of 65,866 square meters[10] - The total net room area under construction as of December 31, 2020, was 137,070 square meters, of which 73.9% was pre-signed[10] - The operational area (excluding B-O-T joint venture data centers) as of December 31, 2020, was 310,128 square meters[11] - The company has approximately 480,000 square meters of estimated total developable net room area in first-tier markets for potential future development[13] Market Demand and Strategic Positioning - The demand for high-performance data center services in China is driven by rapid data growth due to digital transformation and the application of new technologies such as cloud computing and AI[4] - The Chinese government supports technology-driven development and digital economy growth, promoting "new infrastructure construction" which includes large data centers[4] - The company operates data centers primarily in major economic hubs such as Shanghai, Beijing, Shenzhen, Guangzhou, Hong Kong, Chengdu, and Chongqing[5] - The strategic locations of the data centers provide convenient connectivity and access to extensive multi-operator telecom networks, enhancing facility performance and reducing connection costs[5] - The high-performance data center capacity in key economic hubs is relatively scarce due to challenges in acquiring suitable land and regulatory approvals[5] - The ongoing investment wave in the economy driven by government policies is expected to create numerous business opportunities for the company in the future[4] Financial Performance - Net revenue increased from RMB 2,792.1 million in 2018 to RMB 4,122.4 million in 2019, representing a growth of 47.6%, and further increased to RMB 5,739.0 million (USD 879.5 million) in 2020, a growth of 39.2%[8] - The cumulative net loss grew from RMB 430.3 million in 2018 to RMB 669.2 million (USD 102.6 million) in 2020[8] - Adjusted EBITDA rose from RMB 1,046.5 million in 2018 to RMB 2,680.6 million (USD 410.8 million) in 2020[8] - The signing rate for contracts was 94.9%, 91.9%, and 94.3% for the years ending December 31, 2018, 2019, and 2020, respectively[8] - The billing rates increased from 67.6% in 2018 to 71.1% in 2020[8] - The pre-signing rate for contracts improved from 48.4% in 2018 to 73.9% in 2020[8] - The company focuses on developing high-performance data centers with large net floor areas and high power capacity[8] - The company aims to maintain high signing rates across its data centers[8] Customer Base and Retention - As of December 31, 2020, the company served 703 customers, including major cloud service providers and large internet companies in China and globally[6] - The average quarterly customer churn rates for the years ending December 31, 2018, 2019, and 2020 were 0.9%, 0.5%, and 0.8% respectively, indicating strong customer retention[9] - The company aims to maintain high levels of revenue visibility due to long-term customer agreements and a significant backlog of orders[9] - The company’s cloud service providers, large internet, financial institutions, and enterprise customers accounted for 76.7%, 14.1%, and 9.2% of total contracted area as of December 31, 2020[37] Managed Services and Innovations - The company offers managed services, including direct private connections with leading public clouds and innovative hybrid cloud management platforms[4] - The company has developed an innovative service platform to assist enterprise customers in managing their IT infrastructure[6] - The company provides a range of managed services, including business continuity and disaster recovery solutions, network management, data storage, and system security services[32] - The company has developed a proprietary data center operations management platform that provides real-time information on various aspects of data center performance[36] - The company is developing an innovative service platform to assist enterprise clients in integrating private servers with one or more public cloud service providers[34] Regulatory Compliance and Legal Matters - GDS operates its internet data center business through a VIE structure due to Chinese regulations restricting foreign ownership in value-added telecommunications services[59] - The Chinese legal framework for foreign investment includes a negative list, which prohibits foreign investment in certain sectors, and GDS must comply with these regulations to operate[60] - The company is subject to regulatory oversight by the China Banking and Insurance Regulatory Commission, ensuring compliance with laws and regulations related to outsourcing services[68] - The company must adhere to strict guidelines regarding the management of outsourcing service providers, including risk assessments and service quality standards[68] - GDS Holdings Limited is committed to ongoing collaboration with regulatory bodies to ensure adherence to industry standards and best practices[68] Sustainability and Environmental Initiatives - Over 20% of the company's electricity consumption in 2020 came from renewable energy sources[49] - The company has 15 self-developed data centers that have received green certifications from leading domestic and global institutions[50] - Three data centers have received LEED certification, with two achieving Gold status[50] - The company is actively seeking to increase the use of renewable energy, including potential direct contracts with renewable energy suppliers[49] - The company has signed letters of intent to secure future supplies of International REC (I-REC) energy certificates to offset carbon emissions[49] Employee and Organizational Structure - As of December 31, 2020, the company had 1,479 full-time employees, with 17% being women[52] - The employee turnover rate for 2020 was 17.0%, down from 18.2% in 2019[55] - The company has a diverse workforce, with women comprising 34% of senior management and 18% of board members[52] - The company provides competitive compensation and benefits, including performance bonuses and stock options for employees[55] - The company has established a health and safety management system based on ISO45001 to ensure a safe working environment[52] Future Outlook and Growth Strategies - The company is focused on resource acquisition, feasibility analysis, technical design, cost estimation, and project management to maintain operational efficiency[34] - The company plans to invest in innovative technologies to enhance data processing capabilities and improve service delivery[70] - The company is exploring potential mergers and acquisitions to enhance its service offerings and market presence[64] - The company aims to maintain a foreign investment cap of 50% in joint ventures, ensuring compliance with local laws while attracting international partners[64] - Overall, the company is optimistic about future growth, driven by strategic initiatives and a robust user base[64]
万国数据-SW(09698) - 2020 - 年度财报