2025-05-20 13:02Financial Data and Key Metrics Changes - In Q1 2025, the company achieved a revenue growth of 12% year on year and adjusted EBITDA growth of 16%, marking the highest growth rate in the past two years [8][19] - The adjusted EBITDA margin for Q1 2025 was 48.6%, compared to 46.9% in Q1 2024, primarily due to lower operating costs [20][21] - The company realized a gain on deconsolidation of subsidiaries sold to the ABS of over RMB1 billion, which was not included in adjusted EBITDA [19][20] Business Line Data and Key Metrics Changes - The gross move-in during Q1 2025 was approximately 20,000 square meters, all in Tier one markets, with a utilization rate of 75.7% [9][10] - The company added 70 MW of new commitments in Q1 2025, bringing the total power committed to over 530 MW, with expectations to exceed 750 MW soon [15][26] Market Data and Key Metrics Changes - The demand environment has improved due to AI developments, particularly for AI inferencing in Tier one markets [10][12] - The company has around 900 MW of capacity held for future developments in Tier one markets, indicating strong positioning for upcoming demand [12][13] Company Strategy and Development Direction - The company is focusing on backlog delivery and new orders with faster moving schedules, particularly in response to AI demand [8][10] - The asset monetization program is progressing well, providing financing flexibility and options to capitalize on new projects [14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for AI-related services, particularly in Tier one markets, and noted that the company is well-positioned to capture these opportunities [10][12][33] - There are uncertainties regarding AI chip supply in China, but management expects demand to increase as supply stabilizes [12][33] Other Important Information - The company is making good progress with the establishment of an onshore listed Sea REIT, which is expected to create a valuation benchmark for stabilized data centers in China [22][23] - The company maintains its guidance for total revenue and adjusted EBITDA unchanged despite the ABS deconsolidation [25] Q&A Session Summary Question: Update on China demand from hyperscalers and chipset supply - Management noted that demand remains strong, particularly for AI-related services, and they are well-positioned with 900 MW held for future development [31][33] Question: Financial guidance expectations post-ABS deconsolidation - The impact of the ABS transaction closing at the end of Q1 is expected to reduce full-year EBITDA by around RMB130 million, adjusting the growth rate from 11% to 8.5% [34] Question: Comparison of IRR profile or EBITDA yield across different markets - The development yield in new markets is in the low teens, which is higher than current yields in China, indicating a different supply-demand balance [44][45] Question: When will the China business be self-funding? - The company is roughly break-even in terms of free cash flow before financing and expects to generate sufficient cash flow to cover annual CapEx [48] Question: Pricing outlook for the China business - Management maintains confidence in stable pricing for new business across major markets [70]