2025-08-20 13:00Financial Data and Key Metrics Changes - Revenue increased by 12.4% year on year, while adjusted EBITDA grew by 11.2% [7][17] - Adjusted EBITDA margin for Q2 2025 was 47.3%, down from 47.8% in Q2 2024 [18] - Net debt to LQA adjusted EBITDA decreased from 6.6 times at the end of Q1 2025 to 6.1 times at the end of Q2 2025 [24][25] Business Line Data and Key Metrics Changes - Gross new bookings in Q2 2025 were 23,000 square meters, primarily from traditional internet and cloud businesses [10] - DayOne added 246 megawatts of new commitments in Q2 2025, bringing total power committed by customers to over 780 megawatts [15][28] Market Data and Key Metrics Changes - The utilization rate reached 77.5% in Q2 2025 [8] - The implied cap rate for the C REITs IPO was below 5%, indicating favorable market conditions for asset monetization [8] Company Strategy and Development Direction - The company is focusing on asset monetization strategies, having successfully completed a C REITs IPO and a data center ABS transaction [8][14] - The company aims to develop 900 megawatts of power land for future development in Tier one markets, anticipating significant AI-driven demand [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in AI-driven demand over the medium to long term, despite current uncertainties in chip supply [11] - The company is prepared for future growth opportunities and has established a strong capital recycling strategy [14][75] Other Important Information - The company raised net proceeds of $676 million through convertible bonds and equity offerings, strengthening its balance sheet [7] - CapEx guidance was adjusted down from RMB 4.3 billion to RMB 2.7 billion due to proceeds from the Sea REIT transaction [22][23] Q&A Session Summary Question: Future strategy in asset monetization in China - Management indicated that asset monetization remains highly accretive for shareholders and is essential for future growth opportunities [31][32] Question: Development targets for DayOne - The company targets adding at least 500 megawatts annually, with a commitment to the market of at least 300 megawatts [35][36] Question: Customer profile and workloads - The customer base includes traditional internet companies and cloud service providers, with a mix of CPU and GPU workloads [40][41] Question: Impact of deconsolidation on guidance - Management acknowledged that deconsolidation of the C REIT will materially impact EBITDA but chose not to adjust revenue and EBITDA guidance at this time [63][64] Question: Growth expectations for next year - The company expects a reacceleration in revenue and EBITDA growth in Q2 and Q3 next year, driven by significant capacity deliveries [68][70] Question: AI orders and chip supply - Management noted that chip supply issues are currently limiting stronger bookings, but they remain optimistic about future demand [72][75]