Financial Data and Key Metrics Changes - In Q3 2025, the company's revenue increased by 10.2% year-on-year, and adjusted EBITDA grew by 11.4% year-on-year, continuing a healthy growth trend since recovery began last year [4] - Adjusted EBITDA for the first nine months of 2025 grew by 15.4% on a pro forma basis after deconsolidating certain data center project companies [10] Business Line Data and Key Metrics Changes - The total new bookings for the first nine months reached 75,000 square meters, or 240 megawatts, with expectations to achieve nearly 300 megawatts for the full year, a significant increase from previous years [5] - Approximately 65% of the bookings in 2025 are AI-related, indicating a strong focus on AI infrastructure [5] Market Data and Key Metrics Changes - The domestic tech industry in China is at a critical juncture, with major players committing unprecedented financial resources to AI infrastructure, marking the end of a previous downturn [6] - The company has secured around 900 megawatts of powered land in tier one markets, suitable for AI demand, particularly for AI inferencing [7] Company Strategy and Development Direction - The company plans to adopt a more aggressive approach to new business while maintaining financial discipline, focusing on acquiring more powered land in cost-effective locations near tier one cities [9][19] - The establishment of a data center REIT provides a competitive advantage in accessing capital and monetizing assets efficiently [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming AI demand based on the development of domestic technologies and the ramp-up of local chip companies [7] - The company anticipates higher bookings next year, leading to growth acceleration thereafter, despite a subdued booking environment in Q2 2025 [15] Other Important Information - The CREET platform started trading on the Shanghai Stock Exchange, with units priced significantly higher than the IPO price, indicating strong market interest [10][11] - The company expects organic CapEx for the full year to be around RMB 4.8 billion, with net CapEx around RMB 2.7 billion after asset monetization proceeds [12][13] Q&A Session Summary Question: What is needed for the China market to reach an inflection point? - Management indicated strong market demand and significant investments from customers as key indicators, along with improvements in domestic chip efficiency and production capacity [18] Question: What is the new overall investment return with the CREET scheme? - The unit economics of data center investment in China are solid, with cash-on-cash yields typically around 11%-12%, and levered IRR well into the 20s [20][21] Question: Will new bookings include new powered land acquisitions? - Management stated that new bookings next year are not fully reliant on new land acquisitions, but securing additional land would enhance capacity [27] Question: What is the outlook on power quotas and potential difficulties in acquiring them? - Management expressed confidence in their established relationships with government and power companies, making it less challenging for them to secure power quotas [28] Question: What is the pricing trend and MSR outlook? - Management expects a 3-4% decrease in MSR over 2026 due to downward price resets and elevated movement levels, but noted that new build prices have remained stable [57] Question: How does the competitive landscape look? - Management emphasized that financial capability and access to capital markets are becoming critical competitive advantages, with the company well-positioned compared to competitors [60][61]

Financial Data and Key Metrics Changes - In Q3 2025, the company's revenue increased by 10.2% year-on-year, and adjusted EBITDA grew by 11.4% year-on-year, continuing a healthy growth trend since recovery began last year [4] - Adjusted EBITDA for the first nine months of 2025 grew by 15.4% on a pro forma basis after deconsolidating certain data center project companies [10] - The net debt to last quarter annualized adjusted EBITDA multiple decreased from 6.8 times at the end of 2024 to 6.0 times at the end of Q3 2025, primarily due to cash proceeds from asset monetization and deconsolidation of debt [13] Business Line Data and Key Metrics Changes - The total new bookings for the first nine months of 2025 reached 75,000 square meters, or 240 megawatts, with expectations to achieve nearly 300 megawatts for the full year [5] - Approximately 65% of the bookings in 2025 are AI-related, indicating a significant focus on AI infrastructure [5] Market Data and Key Metrics Changes - The domestic tech industry in China is at a critical juncture, with major players committing unprecedented financial resources to AI infrastructure, marking the end of a downturn and the beginning of a recovery for the data center sector [5] - The company has secured around 900 megawatts of powered land in tier one markets, suitable for AI demand, particularly for AI inferencing [6] Company Strategy and Development Direction - The company plans to take a more aggressive approach to new business while maintaining financial discipline, focusing on acquiring more powered land in strategic locations [8][9] - The successful IPO of a data center REIT in China provides a competitive advantage in accessing capital and monetizing assets efficiently [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming AI demand based on the development of domestic technologies and the ramp-up of local chip companies [6] - The company anticipates higher bookings next year, leading to growth acceleration thereafter, despite a subdued booking environment in Q2 2025 [14] Other Important Information - The company expects organic CapEx for the full year to be around RMB 4.8 billion, with net CapEx after asset monetization proceeds estimated at RMB 2.7 billion [12] - The effective interest rate has dropped to 3.3%, benefiting from the favorable interest rate environment in China [13] Q&A Session Summary Question: What is needed for the China market to reach an inflection point? - Management indicated strong market demand and significant investments from customers as key indicators, along with improvements in domestic chip efficiency and production capacity [18] Question: What is the new overall investment return with the CREET scheme? - The unit economics of data center investment in China are solid, with cash-on-cash yields typically around 11%-12% on new investments, and levered IRR well into the 20s [20][21] Question: Will new bookings next year include new powered land acquisitions? - Management clarified that new bookings will not solely rely on new land acquisitions, but securing additional land would enhance capabilities [27] Question: How does the company view the competitive landscape? - The company emphasized that financial capability and access to capital markets are becoming critical competitive advantages, beyond just land and power capabilities [60][61]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $52.9 million, up 22% compared to the prior year [21] - Cost of revenues increased by $2.1 million to $49.1 million from the prior comparable period [23] - Net loss attributable to common stockholders was $36.1 million or $0.16 per share [24] - Adjusted net loss was $17.8 million or $0.08 per diluted share, with adjusted EBITDA increasing 878% to $10 million [25] Business Line Data and Key Metrics Changes - Data center hosting segment generated $35.2 million in revenue, while cloud services segment contributed $17.8 million [21] - Cloud services revenue declined sequentially due to a shift to an on-demand model, but technical issues have been resolved [22] Market Data and Key Metrics Changes - The company operates 286 megawatts of fully contracted data center hosting capacity, running at full capacity [9] - Bitcoin prices remain strong, positively impacting customer sentiment and business prospects [9] Company Strategy and Development Direction - The company is exploring strategic options for its cloud services business, driven by competitive dynamics and potential transition to a data center REIT structure [15][16] - Significant investments have been made, including a $5 billion potential investment from Macquarie Asset Management and a $375 million financing arrangement with Sumitomo Mitsubishi Bank [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the business and its future prospects, particularly in the high-performance computing industry [9] - The company is focused on completing construction on schedule and within budget, with plans for future expansions [28] Other Important Information - The company ended Q3 with $261.2 million in cash and $689.1 million in debt [27] - Construction for the first building is expected to generate revenue in Q4 2025, with subsequent buildings planned for 2026 and 2027 [13] Q&A Session Summary Question: Update on the split between on-demand and contracted cloud services - Currently, four of six clusters are in reserve contracts, while two have moved to on-demand, generating some revenue [33] Question: Long-term fit of the BTC hosting business - BTC assets are expected to align with HPC data center capacity, allowing for dynamic load adjustments [34] Question: Impact of Macquarie and SMBC on leasing momentum - Increased interest has been noted, with improved comfort levels among potential customers due to world-class financing partners [42] Question: Expected capital needs over the next 12 to 18 months - Capital expenditures are in line with past projections, running between $30 to $50 million per month for the first building [44] Question: Status of Bitcoin hosting contracts - Approximately two years remain on existing contracts, with some risk of non-renewal [46] Question: Remaining steps to complete the L&A facility - The facility is expected to be operational by Q4 2025, with remaining expenditures primarily for finishing touches and equipment deployment [51] Question: Plans for selling the cloud business - The process has just started, with various potential structures being evaluated [56] Question: Existing hyperscalers' disposition towards data center builds - Demand remains stable, with ongoing discussions with multiple hyperscalers [64] Question: Pricing trends for data center services - Pricing has been stable over the last 90 days but has increased year-over-year [69] Question: Sale process and potential lessors' requirements - There are no hard requirements for the sale process, but it is seen as the right time to separate the cloud business [83]