2025-03-19 12:00Financial Data and Key Metrics Changes - In Q4 2024, revenue increased by 9.1% year-on-year, and adjusted EBITDA increased by 13.9% year-on-year [23] - For the full year 2024, revenue increased by 5.5%, and adjusted EBITDA increased by 3% year-on-year [24] - Adjusted EBITDA margin for 2024 was 47.2%, compared to 48.4% in 2023 [24] - Cash flow before financing for 2024 was positive RMB 379 million [26] - 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 [27] Business Line Data and Key Metrics Changes - GDS's gross move-in during 2024 was 79,000 square meters, all organic and in Tier one markets, the highest in the company's history [13] - The company started 2025 with a backlog of 110,000 square meters of area in service, expecting to deliver over half of this during the current year [14] - The utilization rate at the end of 2024 was 74%, with expectations to increase to the high 70s percent by the end of 2025 [14] Market Data and Key Metrics Changes - Demand for AI inferencing in Tier one markets is expected to grow significantly, with potential multiples of gigawatts over the next few years [9] - The company is well-positioned in Tier one markets, with existing campuses suitable for AI inferencing [17] Company Strategy and Development Direction - The company remains committed to its strategy of focusing on Tier one markets, delivering backlog, and being selective about new business [12] - GDS executed its first asset monetization transaction, allowing it to address immediate opportunities while maintaining financial discipline [11] - The company plans to list Day One within eighteen months, indicating confidence in its growth and potential [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for AI, particularly in Tier one markets, while remaining cautious about chip supply uncertainties [43][46] - The company anticipates a shift in demand from AI training to AI inferencing, which is expected to benefit GDS's resource positioning [61] Other Important Information - GDS's equity interest in Day One was diluted from 52.7% to 35.6% after Day One's Series B equity raise, leading to its deconsolidation as a subsidiary [21] - The company expects total revenues for 2025 to be between RMB 11.29 billion and RMB 11.59 billion, implying a year-on-year increase of approximately 9.4% to 12.3% [31] Q&A Session Summary Question: Update on the plan to spin off Day One and its IPO schedule - Management confirmed plans to list Day One within eighteen months, expressing confidence in its growth [36] Question: Status of Day One's growth progress - Management indicated significant progress but could not disclose specific details at this time [39] Question: CapEx based on existing orders and new order wins throughout 2025 - Management confirmed that current CapEx includes the new 152 megawatt order and emphasized a cautious approach to new orders due to chip supply uncertainties [42][43] Question: Customer types and workloads, and current book-to-bill rate - Management noted that demand is mainly driven by AI inferencing, with improved lead times for contracts, now around twelve months [55] Question: Supply and demand dynamics in Tier one markets - Management indicated that the supply-demand balance is starting to shift, with expectations of rebalancing in six to twelve months [62] Question: Use of ABS proceeds and customer profile for stabilized assets - Management stated that ABS proceeds can be used for debt repayment or reinvestment, with selected assets being highly acceptable to investors [72] Question: Update on Thailand and Bataan projects - Management confirmed strong customer demand for the new data center in Thailand and successful delivery of the first phases in Bataan [75][78]