2022-03-22 20:38Financial Data and Key Metrics Changes - In 2021, the company achieved a revenue growth of 36% and adjusted EBITDA growth of 38% year-over-year [6] - For Q4 2021, service revenue grew by 6.1%, underlying adjusted gross profit grew by 6%, and underlying adjusted EBITDA grew by 6.7% quarter-on-quarter [13] - The underlying adjusted EBITDA margin was reported at 47.2% for Q4 2021 [13] - The company expects total revenue for 2022 to be in the range of RMB 9,320 million to RMB 9,680 million, with adjusted EBITDA in the range of RMB 4,285 million to RMB 4,450 million, implying a margin of around 46% at the midpoint [27] Business Line Data and Key Metrics Changes - In Q4 2021, the company booked 23,000 square meters of new commitments, with a total of 96,000 square meters of organic bookings for the full year [7][10] - The business mix in 2021 saw cloud accounting for 50%, large internet for 30%, and financial services and enterprise for 20% [8] - The company anticipates around 90,000 square meters of new organic commitments for 2022 [7] Market Data and Key Metrics Changes - The company added approximately 300,000 square meters of new capacity supply in Tier 1 markets in China through land purchases and project acquisitions [6][10] - The company has a pipeline of four purpose-built data centers in Hong Kong, set to enter service between 2022 and 2025 [11] Company Strategy and Development Direction - The company is focused on executing its business plan, improving efficiency, and seizing key opportunities despite a challenging operating environment [6] - The company is building its presence in Southeast Asia with projects in Malaysia and Indonesia, and plans to initiate construction in the coming months [11] - The company aims to achieve carbon neutrality by 2030 and has increased its renewable energy usage to over 30% [12] Management's Comments on Operating Environment and Future Outlook - Management noted that demand remains at a similar level to last year, although the demand profile has shifted towards internet and enterprise customers [21] - The company is optimistic about future growth, expecting to maintain a base growth rate of around 20% in the coming years [28] - Management expressed confidence in the company's ability to access capital for growth and acquisitions, indicating that capital will not be a constraint [40] Other Important Information - The company completed over US$2.6 billion of debt financing to ensure projects are fully financed [6] - The effective interest rate for 2021 was reported at 5.5%, down from 6.6% in 2020 [16] Q&A Session Summary Question: What is the latest observation on demand? - Management indicated that demand remains similar to last year, but the profile has shifted towards internet and enterprise customers due to macroeconomic factors [21] Question: What is the implication of the Eastern Data Western Computation initiative? - Management views the initiative positively, as it encourages new infrastructure and recognizes the necessity for low latency products in Tier 1 markets [24] Question: What is the growth rate expected from 2023 to 2025? - Management expects a stabilizing growth rate around 20%, with potential for acceleration if macroeconomic conditions improve [28] Question: What is the M&A strategy for this year? - Management emphasized the importance of M&A for acquiring valuable assets, particularly in Tier 1 markets, and indicated a focus on mature assets [29] Question: Have there been changes in the customer decision process for leasing? - Management noted that customer IT logic remains unchanged, but demand in Southeast Asia is expected to grow significantly [33] Question: What is the funding position for M&A? - Management stated that access to capital is not a concern, with various methods available for raising funds [40] Question: What are the inflationary pressures on margins? - Management indicated that power costs are the primary inflationary pressure affecting margins, which is expected to be temporary [57]