GDS Holdings Limited (“GDS Holdings”, “GDS” or the “Company”)
(NASDAQ: GDS; HKEX: 9698), a leading developer and operator of
high-performance data centers in China and South East Asia, today
announced its unaudited financial results for the third quarter
ended September 30, 2023.
Third Quarter 2023 Financial Highlights
- Net revenue increased by 6.4%
year-over-year (“Y-o-Y”) to RMB2,519.0 million (US$345.3 million)
in the third quarter of 2023 (3Q2022: RMB2,367.6 million).
- Service revenue increased by 6.4%
Y-o-Y to RMB2,519.0 million (US$345.3 million) in the third quarter
of 2023 (3Q2022: RMB2,367.6 million).
- Net loss was RMB420.8 million
(US$57.7 million) in the third quarter of 2023 (3Q2022: net loss of
RMB339.7 million).
- Adjusted EBITDA (non-GAAP)
increased by 5.6% Y-o-Y to RMB1,126.3 million (US$154.4 million) in
the third quarter of 2023 (3Q2022: RMB1,066.6 million). See
“Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP
results” elsewhere in this earnings release.
- Adjusted EBITDA margin (non-GAAP)
was 44.7% in the third quarter of 2023 (3Q2022: 45.0%).
Third Quarter 2023 Operating Highlights
- Total area committed and
pre-committed by customers increased by 16,072 square meters
(“sqm”) (net) in the third quarter of 2023, to reach 653,732 sqm as
of September 30, 2023, an increase of 5.7% Y-o-Y (September 30,
2022: 618,369 sqm).
- Area in service increased by 22,994
sqm in the third quarter of 2023, to reach 554,210 sqm as of
September 30, 2023, an increase of 8.6% Y-o-Y (September 30, 2022:
510,511 sqm).
- Commitment rate for area in service
was 91.9% as of September 30, 2023 (September 30, 2022:
95.6%).
- Area under construction was 189,585
sqm as of September 30, 2023 (September 30, 2022: 182,355
sqm).
- Pre-commitment rate for area under
construction was 76.1% as of September 30, 2023 (September 30,
2022: 71.5%).
- Area utilized by customers
increased by 15,878 sqm (net) in the third quarter of 2023, to
reach 398,674 sqm as of September 30, 2023, an increase of 10.8%
Y-o-Y (September 30, 2022: 359,862 sqm).
- Utilization rate for area in
service was 71.9% as of September 30, 2023 (September 30, 2022:
70.5%).
“In the third quarter of 2023, we made steady
progress across our strategic business objectives,” said Mr.
William Huang, Chairman and Chief Executive Officer. “In China, we
won new business based on firm move-in schedules and we continued
to accelerate backlog delivery. In South East Asia, our first data
center came into service and the anchor customer started to move
in. We continue to build a strong pipeline for new commitments. Our
foundation is strong, our model is resilient and our 22-year track
record is exemplary. We are on track to reach our goals.”
“We achieved revenue growth of 6.4% and adjusted
EBITDA growth of 5.6% year-over-year in the third quarter of 2023,”
said Mr. Dan Newman, Chief Financial Officer. “Our adjusted EBITDA
margin stood at 44.7% for the quarter. We are strengthening our
financial position and propelling our strategic initiatives to
maximize returns on invested capital, while unlocking long-term
value for our shareholders.”
Third Quarter 2023 Financial Results
Net revenue in the third quarter of 2023 was
RMB2,519.0 million (US$345.3 million), a 6.4% increase over the
third quarter of 2022 of RMB2,367.6 million and a 1.9% increase
over the second quarter of 2023 of RMB2,472.0 million. Service
revenue in the third quarter of 2023 was RMB2,519.0 million
(US$345.3 million), a 6.4% increase over the third quarter of 2022
of RMB2,367.6 million, and a 1.9% increase over the second quarter
of 2023 of RMB2,472.0 million or a 4.9% increase after excluding
the one-time service revenue in the second quarter of RMB70.7
million arising from an early termination. The increase was mainly
due to 15,878 sqm of net additional area utilized in the third
quarter of 2023, mainly related to the SH18 Phase 1, BJ23, LF15
Phase 1, HY1 and NTP1 data centers.
Cost of revenue in the third quarter of 2023 was
RMB2,071.6 million (US$283.9 million), a 10.5% increase over the
third quarter of 2022 of RMB1,874.8 million and a 7.8% increase
over the second quarter of 2023 of RMB1,921.0 million. The increase
over the second quarter of 2023 was mainly due to an increase in
utility cost as a result of additional area utilized during the
quarter and seasonally higher power consumption and power
tariffs.
Gross profit was RMB447.4 million (US$61.3
million) in the third quarter of 2023, a 9.2% decrease over the
third quarter of 2022 of RMB492.8 million, and an 18.8% decrease
over the second quarter of 2023 of RMB551.0 million or a 6.8%
decrease after excluding the abovementioned one-time service
revenue in the second quarter.
Gross profit margin was 17.8% in the third
quarter of 2023, compared with 20.8% in the third quarter of 2022,
and 22.3% in the second quarter of 2023 or 20.0% after excluding
the abovementioned one-time service revenue in the second quarter.
The decrease over the second quarter of 2023 was mainly due to an
increase in utility cost.
Adjusted Gross Profit (“Adjusted GP”) (non-GAAP)
is defined as gross profit excluding depreciation and amortization,
operating lease cost relating to prepaid land use rights, accretion
expenses for asset retirement costs and share-based compensation
expenses allocated to cost of revenue. Adjusted GP was RMB1,247.3
million (US$171.0 million) in the third quarter of 2023, a 3.8%
increase over the third quarter of 2022 of RMB1,201.3 million and a
5.5% decrease over the second quarter of 2023 of RMB1,319.8 million
or a 0.1% decrease after excluding the abovementioned one-time
service revenue in the second quarter. See “Non-GAAP Disclosure”
and “Reconciliations of GAAP and non-GAAP results” elsewhere in
this earnings release.
Adjusted GP margin (non-GAAP) was 49.5% in the
third quarter of 2023, compared with 50.7% in the third quarter of
2022, and 53.4% in the second quarter of 2023 or 52.0% after
excluding the abovementioned one-time service revenue in the second
quarter. The decrease was mainly due to an increase in utility
cost.
Selling and marketing expenses, excluding
share-based compensation expenses of RMB12.6 million (US$1.7
million), were RMB26.3 million (US$3.6 million) in the third
quarter of 2023, a 9.7% decrease from the third quarter of 2022 of
RMB29.1 million (excluding share-based compensation of RMB7.9
million) and a 14.7% increase from the second quarter of 2023 of
RMB22.9 million (excluding share-based compensation of RMB9.3
million). The increase over the second quarter of 2023 was mainly
due to an increase in personnel cost as a result of the downward
performance adjustment in the second quarter.
General and administrative expenses, excluding
share-based compensation expenses of RMB53.3 million (US$7.3
million), depreciation and amortization expenses of RMB135.9
million (US$18.6 million) and operating lease cost relating to
prepaid land use rights of RMB16.8 million (US$2.3 million), were
RMB111.3 million (US$15.3 million) in the third quarter of 2023, an
11.2% decrease over the third quarter of 2022 of RMB125.4 million
(excluding share-based compensation expenses of RMB39.3 million,
depreciation and amortization expenses of RMB113.6 million and
operating lease cost relating to prepaid land use rights of RMB23.8
million) and a 31.7% increase from the second quarter of 2023 of
RMB84.5 million (excluding share-based compensation of RMB30.7
million, depreciation and amortization expenses of RMB136.8
million, and operating lease cost relating to prepaid land use
rights of RMB17.5 million). The increase over the second quarter of
2023 was mainly due to a cash reimbursement in the second quarter
from the Company’s American Depositary Share ("ADS”) depositary
bank of approximately RMB22.1 million.
Research and development costs were RMB10.5
million (US$1.4 million) in the third quarter of 2023, compared
with RMB6.7 million in the third quarter 2022 and RMB5.0 million in
the second quarter of 2023.
Net interest expenses for the third quarter of
2023 were RMB503.2 million (US$69.0 million), a 13.2% increase over
the third quarter of 2022 of RMB444.3 million and a 7.2% increase
over the second quarter of 2023 of RMB469.5 million. The increase
over the second quarter of 2023 was mainly due to an increase in
the net debt.
Foreign currency exchange gain for the third
quarter of 2023 was RMB0.9 million (US$0.1 million), compared with
a loss of RMB2.3 million in the third quarter of 2022 and a gain of
RMB5.0 million in the second quarter of 2023.
Others, net for the third quarter of 2023 was
RMB21.7 million (US$3.0 million), compared with RMB27.4 million in
the third quarter of 2022 and RMB20.2 million in the second quarter
of 2023.
Income tax expenses for the third quarter of
2023 were RMB20.9 million (US$2.9 million), compared with RMB67.4
million in the third quarter of 2022 and RMB25.3 million in the
second quarter of 2023.
Net loss in the third quarter of 2023 was
RMB420.8 million (US$57.7 million), compared with a net loss of
RMB339.7 million in the third quarter of 2022 and a net loss of
RMB225.3 million in the second quarter of 2023.
Adjusted EBITDA (non-GAAP) is defined as net
loss excluding net interest expenses, income tax expenses
(benefits), depreciation and amortization, operating lease cost
relating to prepaid land use rights, accretion expenses for asset
retirement costs, share-based compensation expenses, gain from
purchase price adjustment and impairment loss of long-lived assets.
Adjusted EBITDA was RMB1,126.3 million (US$154.4 million) in the
third quarter of 2023, a 5.6% increase over the third quarter of
2022 of RMB1,066.6 million and an 8.8% decrease over the second
quarter of 2023 of RMB1,235.1 million or a 1.4% decrease after
excluding the abovementioned one-time service revenue and cash
reimbursement in the second quarter.
Adjusted EBITDA margin (non-GAAP) was 44.7% in
the third quarter of 2023, compared with 45.0% in the third quarter
of 2022, and 50.0% in the second quarter of 2023 or 47.6% after
excluding the abovementioned one-time service revenue and cash
reimbursement in the second quarter. The decrease was mainly due to
the higher utility cost.
Basic and diluted loss per ordinary share in the
third quarter of 2023 was RMB0.30 (US$0.04), compared with RMB0.24
in the third quarter of 2022, and RMB0.16 in the second quarter of
2023.
Basic and diluted loss per ADS in the third
quarter of 2023 was RMB2.37 (US$0.32), compared with RMB1.93 in the
third quarter of 2022, and RMB1.31 in the second quarter of 2023.
Each ADS represents eight Class A ordinary shares.
Sales
Total area committed and pre-committed at the
end of the third quarter of 2023 was 653,732 sqm, compared with
618,369 sqm at the end of the third quarter of 2022 and 637,661 sqm
at the end of the second quarter of 2023, an increase of 5.7% Y-o-Y
and 2.5% quarter-over-quarter (“Q-o-Q”), respectively. In the third
quarter of 2023, net additional total area committed was 16,072
sqm, including significant contributions from the SH18 Phase 1, LF5
Phase 2, LF15 Phase 3 and LF16 data centers.
Data Center Resources
Area in service at the end of the third quarter
of 2023 was 554,210 sqm, compared with 510,511 sqm at the end of
the third quarter of 2022 and 531,216 sqm at the end of the second
quarter of 2023, an increase of 8.6% Y-o-Y and 4.3% Q-o-Q. In the
third quarter of 2023, LF13 Phase 1 and NTP1 data centers came into
service.
Area under construction at the end of the third
quarter of 2023 was 189,585 sqm, compared with 182,355 sqm at the
end of the third quarter of 2022 and 196,702 sqm at the end of the
second quarter of 2023, an increase of 4.0% Y-o-Y and a decrease of
3.6% Q-o-Q, respectively. During the third quarter, construction
commenced on LF16 data center.
- LF16 is the second data center
located at our campus in the Xianghe District of Langfang, Hebei
Province, next to LF15 data center. LF16 has a net floor area of
10,848 sqm and is 100% pre-committed.
Commitment rate for area in service was 91.9% at
the end of the third quarter of 2023, compared with 95.6% at the
end of the third quarter of 2022 and 92.4% at the end of the second
quarter of 2023. Pre-commitment rate for area under construction
was 76.1% at the end of the third quarter of 2023, compared with
71.5% at the end of the third quarter of 2022 and 74.8% at the end
of the second quarter of 2023.
Area utilized at the end of the third quarter of
2023 was 398,674 sqm, compared with 359,862 sqm at the end of the
third quarter of 2022 and 382,796 sqm at the end of the second
quarter of 2023, an increase of 10.8% Y-o-Y and 4.1% Q-o-Q. In the
third quarter of 2023, net additional area utilized was 15,878 sqm,
which mainly came from additional area utilized in the SH18 Phase
1, BJ23, LF15 Phase 1, HY1 and NTP1 data centers.
Utilization rate for area in service was 71.9%
at the end of the third quarter of 2023, compared with 70.5% at the
end of the third quarter of 2022 and 72.1% at the end of the second
quarter of 2023.
Liquidity
As of September 30, 2023, cash was RMB7,524.9
million (US$1,031.4 million). Total short-term debt was RMB3,024.4
million (US$414.5 million), comprised of short-term borrowings and
the current portion of long-term borrowings of RMB2,527.3 million
(US$346.4 million) and the current portion of finance lease and
other financing obligations of RMB497.1 million (US$68.1 million).
Total long-term debt was RMB43,187.1 million (US$5,919.3 million),
comprised of long-term borrowings (excluding current portion) of
RMB26,607.6 million (US$3,646.9 million), convertible bonds payable
of RMB8,546.3 million (US$1,171.4 million) and the non-current
portion of finance lease and other financing obligations of
RMB8,033.2 million (US$1,101.0 million). During the third quarter
of 2023, the Company obtained new debt financing and refinancing
facilities of RMB6,255.1 million (US$857.3 million).
Business Outlook
The Company confirms that the previously
provided guidance of total revenues for the year of 2023 of
RMB9,940 – RMB10,320 million, Adjusted EBITDA of RMB4,430 –
RMB4,600 million and capex of around RMB7,500 million remain
unchanged.
This forecast reflects the Company’s preliminary
view on the current business situation and market conditions, which
are subject to change.
Conference Call
Management will hold a conference call at 8:00
a.m. U.S. Eastern Time on November 22, 2023 (9:00 p.m. Beijing Time
on November 22, 2023) to discuss financial results and answer
questions from investors and analysts.
Participants should complete online registration
using the link provided below at least 15 minutes before the
scheduled start time. Upon registration, participants will receive
the conference call access information, including dial-in numbers,
a personal PIN and an e-mail with detailed instructions to join the
conference call.
Participant Online
Registration:https://register.vevent.com/register/BI34d590b1103e416582315842148dfce0
A live and archived webcast of the conference
call will be available on the Company's investor relations website
at investors.gds-services.com.
Non-GAAP Disclosure
Our management and board of directors use
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted GP and Adjusted
GP margin, which are non-GAAP financial measures, to evaluate our
operating performance, establish budgets and develop operational
goals for managing our business. We believe that the exclusion of
the income and expenses eliminated in calculating Adjusted EBITDA
and Adjusted GP can provide useful and supplemental measures of our
core operating performance. In particular, we believe that the use
of Adjusted EBITDA as a supplemental performance measure captures
the trend in our operating performance by excluding from our
operating results the impact of our capital structure (primarily
interest expense), asset base charges (primarily depreciation and
amortization, operating lease cost relating to prepaid land use
rights, accretion expenses for asset retirement costs and
impairment loss of long-lived assets), other non-cash expenses
(primarily share-based compensation expenses), and other income and
expenses which we believe are not reflective of our operating
performance, whereas the use of adjusted gross profit as a
supplemental performance measure captures the trend in gross profit
performance of our data centers in service by excluding from our
gross profit the impact of asset base charges (primarily
depreciation and amortization, operating lease cost relating to
prepaid land use rights and accretion expenses for asset retirement
costs) and other non-cash expenses (primarily share-based
compensation expenses) included in cost of revenue.
We note that depreciation and amortization is a
fixed cost which commences as soon as each data center enters
service. However, it usually takes several years for new data
centers to reach high levels of utilization and profitability. The
Company incurs significant depreciation and amortization costs for
its early stage data center assets. Accordingly, gross profit,
which is a measure of profitability after taking into account
depreciation and amortization, does not accurately reflect the
Company’s core operating performance.
We also present these non-GAAP measures because
we believe these non-GAAP measures are frequently used by
securities analysts, investors and other interested parties as
measures of the financial performance of companies in our
industry.
These non-GAAP financial measures are not
defined under U.S. GAAP and are not presented in accordance with
U.S. GAAP. These non-GAAP financial measures have limitations as
analytical tools, and when assessing our operating performance,
cash flows or our liquidity, investors should not consider them in
isolation, or as a substitute for gross profit, net income (loss),
cash flows provided by (used in) operating activities or other
consolidated statements of operations and cash flow data prepared
in accordance with U.S. GAAP. There are a number of limitations
related to the use of these non-GAAP financial measures instead of
their nearest GAAP equivalent. First, Adjusted EBITDA, Adjusted
EBITDA margin, Adjusted GP, and Adjusted GP margin are not
substitutes for gross profit, net income (loss), cash flows
provided by (used in) operating activities or other consolidated
statements of operation and cash flow data prepared in accordance
with U.S. GAAP. Second, other companies may calculate these
non-GAAP financial measures differently or may use other measures
to evaluate their performance, all of which could reduce the
usefulness of these non-GAAP financial measures as tools for
comparison. Finally, these non-GAAP financial measures do not
reflect the impact of net interest expenses, incomes tax benefits
(expenses), depreciation and amortization, operating lease cost
relating to prepaid land use rights, accretion expenses for asset
retirement costs, share-based compensation expenses, gain from
purchase price adjustment and impairment loss of long-lived assets,
each of which have been and may continue to be incurred in our
business.
We mitigate these limitations by reconciling the
non-GAAP financial measure to the most comparable U.S. GAAP
performance measure, all of which should be considered when
evaluating our performance.
For more information on these non-GAAP financial
measures, please see the table captioned “Reconciliations of GAAP
and non-GAAP results” set forth at the end of this press
release.
Exchange Rate
This announcement contains translations of
certain RMB amounts into U.S. dollars (“USD”) at specified rates
solely for the convenience of the reader. Unless otherwise stated,
all translations from RMB to USD were made at the rate of RMB7.2960
to US$1.00, the noon buying rate in effect on September 29, 2023 in
the H.10 statistical release of the Federal Reserve Board. The
Company makes no representation that the RMB or USD amounts
referred could be converted into USD or RMB, as the case may be, at
any particular rate or at all.
Statement Regarding Preliminary
Unaudited Financial Information
The unaudited financial information set out in
this earnings release is preliminary and subject to potential
adjustments. Adjustments to the consolidated financial statements
may be identified when audit work has been performed for the
Company’s year-end audit, which could result in significant
differences from this preliminary unaudited financial
information.
About GDS Holdings Limited
GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698)
is a leading developer and operator of high-performance data
centers in China and South East Asia. The Company’s facilities are
strategically located in primary economic hubs where demand for
high-performance data center services is concentrated. The Company
also builds, operates and transfers data centers at other locations
selected by its customers in order to fulfill their broader
requirements. The Company’s data centers have large net floor area,
high power capacity, density and efficiency, and multiple
redundancies across all critical systems. GDS is carrier and
cloud-neutral, which enables its customers to access the major
telecommunications networks, as well as the largest PRC and global
public clouds, which are hosted in many of its facilities. The
Company offers co-location and a suite of value-added services,
including managed hybrid cloud services through direct private
connection to leading public clouds, managed network services, and,
where required, the resale of public cloud services. The Company
has a 22-year track record of service delivery, successfully
fulfilling the requirements of some of the largest and most
demanding customers for outsourced data center services in China.
The Company’s customer base consists predominantly of hyperscale
cloud service providers, large internet companies, financial
institutions, telecommunications carriers, IT service providers,
and large domestic private sector and multinational
corporations.
Safe Harbor Statement
This announcement contains forward-looking
statements. These statements are made under the “safe harbor”
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as “aim,” “anticipate,” “believe,” “continue,”
“estimate,” “expect,” “future,” “guidance,” “intend,” “is/are
likely to,” “may,” “ongoing,” “plan,” “potential,” “target,”
“will,” and similar statements. Among other things, statements that
are not historical facts, including statements about GDS Holdings’
beliefs and expectations regarding the growth of its businesses and
its revenue for the full fiscal year, the business outlook and
quotations from management in this announcement, as well as GDS
Holdings’ strategic and operational plans, are or contain
forward-looking statements. GDS Holdings may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission (the “SEC”) on Forms 20-F and
6-K, in its current, interim and annual reports to shareholders, in
announcements, circulars or other publications made on the website
of the Stock Exchange of Hong Kong Limited (the “Hong Kong Stock
Exchange”), in press releases and other written materials and in
oral statements made by its officers, directors or employees to
third parties. Forward-looking statements involve inherent risks
and uncertainties. A number of factors could cause GDS Holdings’
actual results or financial performance to differ materially from
those contained in any forward-looking statement, including but not
limited to the following: GDS Holdings’ goals and strategies; GDS
Holdings’ future business development, financial condition and
results of operations; the expected growth of the market for
high-performance data centers, data center solutions and related
services in China and South East Asia; GDS Holdings’ expectations
regarding demand for and market acceptance of its high-performance
data centers, data center solutions and related services; GDS
Holdings’ expectations regarding building, strengthening and
maintaining its relationships with new and existing customers; the
continued adoption of cloud computing and cloud service providers
in China and South East Asia; risks and uncertainties associated
with increased investments in GDS Holdings’ business and new data
center initiatives; risks and uncertainties associated with
strategic acquisitions and investments; GDS Holdings’ ability to
maintain or grow its revenue or business; fluctuations in GDS
Holdings’ operating results; changes in laws, regulations and
regulatory environment that affect GDS Holdings’ business
operations; competition in GDS Holdings’ industry in China and
South East Asia; security breaches; power outages; and fluctuations
in general economic and business conditions in China, South East
Asia and globally, and assumptions underlying or related to any of
the foregoing. Further information regarding these and other risks,
uncertainties or factors is included in GDS Holdings’ filings with
the SEC, including its annual report on Form 20-F, and with the
Hong Kong Stock Exchange. All information provided in this press
release is as of the date of this press release and are based on
assumptions that GDS Holdings believes to be reasonable as of such
date, and GDS Holdings does not undertake any obligation to update
any forward-looking statement, except as required under applicable
law.
For investor and media inquiries, please
contact:
GDS Holdings LimitedLaura
ChenPhone: +86 (21) 2029-2203Email: ir@gds-services.com
Piacente Financial
CommunicationsRoss WarnerPhone: +86 (10) 6508-0677Email:
GDS@tpg-ir.com
Brandi PiacentePhone: +1 (212) 481-2050Email:
GDS@tpg-ir.com
GDS Holdings Limited
|
|
GDS HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS(Amount in thousands of
Renminbi ("RMB") and US dollars ("US$")) |
|
|
|
|
As ofDecember 31, 2022 |
As of September 30, 2023 |
|
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
Assets |
|
|
|
Current
assets |
|
|
|
|
Cash |
8,608,131 |
|
7,524,894 |
|
1,031,373 |
|
|
Accounts receivable, net of
allowance for doubtful accounts |
2,406,025 |
|
2,883,703 |
|
395,244 |
|
|
Value-added-tax (“VAT”)
recoverable |
164,743 |
|
173,436 |
|
23,771 |
|
|
Prepaid expenses and other
current assets |
772,177 |
|
673,371 |
|
92,293 |
|
|
Total current
assets |
11,951,076 |
|
11,255,404 |
|
1,542,681 |
|
|
|
|
|
|
Property and
equipment, net |
46,916,628 |
|
49,399,038 |
|
6,770,701 |
|
Prepaid land use
rights, net |
23,002 |
|
22,541 |
|
3,090 |
|
Operating lease
right-of-use assets |
5,633,946 |
|
5,587,262 |
|
765,798 |
|
Goodwill and
intangible assets, net |
8,124,214 |
|
7,945,607 |
|
1,089,036 |
|
Other non-current
assets |
2,165,088 |
|
2,632,427 |
|
360,804 |
|
|
Total
assets |
74,813,954 |
|
76,842,279 |
|
10,532,110 |
|
|
|
|
|
|
|
Liabilities, Mezzanine Equity and Equity |
|
|
|
Current
liabilities |
|
|
|
|
Short-term borrowings and
current portion of long-term borrowings |
3,623,967 |
|
2,527,290 |
|
346,394 |
|
|
Convertible bonds payable,
current |
2,083,829 |
|
0 |
|
0 |
|
|
Accounts payable |
3,092,884 |
|
2,921,883 |
|
400,477 |
|
|
Accrued expenses and other
payables |
1,173,091 |
|
1,271,451 |
|
174,267 |
|
|
Operating lease liabilities,
current |
175,749 |
|
180,026 |
|
24,675 |
|
|
Finance lease and other
financing obligations, current |
453,855 |
|
497,091 |
|
68,132 |
|
|
Total current
liabilities |
10,603,375 |
|
7,397,741 |
|
1,013,945 |
|
|
|
|
|
|
Long-term
borrowings, excluding current portion |
23,518,058 |
|
26,607,648 |
|
3,646,882 |
|
Convertible bonds
payable, non-current |
4,294,985 |
|
8,546,270 |
|
1,171,364 |
|
Operating lease
liabilities, non-current |
1,617,986 |
|
1,442,190 |
|
197,669 |
|
Finance lease and
other financing obligations, non-current |
8,916,266 |
|
8,033,208 |
|
1,101,043 |
|
Other long-term
liabilities |
1,678,629 |
|
1,736,297 |
|
237,979 |
|
|
Total
liabilities |
50,629,299 |
|
53,763,354 |
|
7,368,882 |
|
|
|
|
|
|
Mezzanine
equity |
|
|
|
|
Redeemable preferred
shares |
1,047,012 |
|
1,079,214 |
|
147,919 |
|
|
Total mezzanine
equity |
1,047,012 |
|
1,079,214 |
|
147,919 |
|
|
|
|
|
|
GDS Holdings
Limited shareholders' equity |
|
|
|
|
Ordinary shares |
516 |
|
516 |
|
71 |
|
|
Additional paid-in
capital |
29,048,598 |
|
29,264,760 |
|
4,011,069 |
|
|
Accumulated other
comprehensive loss |
(848,360 |
) |
(1,091,699 |
) |
(149,630 |
) |
|
Accumulated deficit |
(5,179,705 |
) |
(6,303,804 |
) |
(864,008 |
) |
|
Total GDS Holdings
Limited shareholders' equity |
23,021,049 |
|
21,869,773 |
|
2,997,502 |
|
Non-controlling
interests |
116,594 |
|
129,938 |
|
17,807 |
|
|
Total
equity |
23,137,643 |
|
21,999,711 |
|
3,015,309 |
|
|
|
|
|
|
|
Total liabilities,
mezzanine equity and equity |
74,813,954 |
|
76,842,279 |
|
10,532,110 |
|
|
GDS HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(Amount in thousands of Renminbi ("RMB")
and US dollars ("US$")except for number of shares and per share
data) |
|
|
|
Three months ended |
|
Nine months ended |
|
|
September 30,2022 |
June 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
|
|
RMB |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
|
Net
revenue |
|
|
|
|
|
|
|
|
Service revenue |
2,367,593 |
|
2,472,020 |
|
2,518,978 |
|
345,255 |
|
|
6,913,857 |
|
7,399,447 |
|
1,014,179 |
|
Equipment sales |
0 |
|
0 |
|
55 |
|
8 |
|
|
7,740 |
|
564 |
|
77 |
|
Total net
revenue |
2,367,593 |
|
2,472,020 |
|
2,519,033 |
|
345,263 |
|
|
6,921,597 |
|
7,400,011 |
|
1,014,256 |
|
Cost of revenue |
(1,874,788 |
) |
(1,921,023 |
) |
(2,071,584 |
) |
(283,934 |
) |
|
(5,473,774 |
) |
(5,909,878 |
) |
(810,016 |
) |
Gross
profit |
492,805 |
|
550,997 |
|
447,449 |
|
61,329 |
|
|
1,447,823 |
|
1,490,133 |
|
204,240 |
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses |
|
|
|
|
|
|
|
|
|
Selling and
marketing expenses |
(37,022 |
) |
(32,193 |
) |
(38,912 |
) |
(5,333 |
) |
|
(117,501 |
) |
(108,946 |
) |
(14,932 |
) |
|
General and administrative expenses |
(302,122 |
) |
(269,527 |
) |
(317,326 |
) |
(43,493 |
) |
|
(889,013 |
) |
(876,349 |
) |
(120,114 |
) |
|
Research and development expenses |
(6,682 |
) |
(5,045 |
) |
(10,529 |
) |
(1,443 |
) |
|
(25,820 |
) |
(25,359 |
) |
(3,476 |
) |
Income
from operations |
146,979 |
|
244,232 |
|
80,682 |
|
11,060 |
|
|
415,489 |
|
479,479 |
|
65,718 |
|
Other
income (expenses): |
|
|
|
|
|
|
|
|
|
Net interest expenses |
(444,328 |
) |
(469,472 |
) |
(503,156 |
) |
(68,963 |
) |
|
(1,368,647 |
) |
(1,457,055 |
) |
(199,706 |
) |
|
Foreign currency exchange (loss) gain, net |
(2,308 |
) |
4,953 |
|
908 |
|
124 |
|
|
(3,392 |
) |
(1,114 |
) |
(153 |
) |
|
Others, net |
27,377 |
|
20,243 |
|
21,680 |
|
2,971 |
|
|
66,523 |
|
67,716 |
|
9,281 |
|
Loss
before income taxes |
(272,280 |
) |
(200,044 |
) |
(399,886 |
) |
(54,808 |
) |
|
(890,027 |
) |
(910,974 |
) |
(124,860 |
) |
Income tax expenses |
(67,383 |
) |
(25,262 |
) |
(20,945 |
) |
(2,871 |
) |
|
(198,196 |
) |
(209,775 |
) |
(28,752 |
) |
Net
loss |
(339,663 |
) |
(225,306 |
) |
(420,831 |
) |
(57,679 |
) |
|
(1,088,223 |
) |
(1,120,749 |
) |
(153,612 |
) |
Net income attributable to non-controlling
interests |
(353 |
) |
(1,270 |
) |
(350 |
) |
(48 |
) |
|
(576 |
) |
(3,350 |
) |
(459 |
) |
Net loss attributable to redeemable non-controlling
interests |
0 |
|
0 |
|
0 |
|
0 |
|
|
655 |
|
0 |
|
0 |
|
Net loss
attributable to GDS Holdings Limited shareholders |
(340,016 |
) |
(226,576 |
) |
(421,181 |
) |
(57,727 |
) |
|
(1,088,144 |
) |
(1,124,099 |
) |
(154,071 |
) |
Accretion to redemption value of redeemable
non-controlling interests |
0 |
|
0 |
|
0 |
|
0 |
|
|
(10,801 |
) |
0 |
|
0 |
|
Adjustment to the redemption value of redeemable
non-controlling interests |
0 |
|
0 |
|
0 |
|
0 |
|
|
(178,982 |
) |
0 |
|
0 |
|
Net loss
available to GDS Holdings Limited shareholders |
(340,016 |
) |
(226,576 |
) |
(421,181 |
) |
(57,727 |
) |
|
(1,277,927 |
) |
(1,124,099 |
) |
(154,071 |
) |
Cumulative dividend on redeemable preferred
shares |
(13,120 |
) |
(13,306 |
) |
(13,745 |
) |
(1,884 |
) |
|
(37,550 |
) |
(39,946 |
) |
(5,475 |
) |
Net loss
available to GDS Holdings Limited ordinary
shareholders |
(353,136 |
) |
(239,882 |
) |
(434,926 |
) |
(59,611 |
) |
|
(1,315,477 |
) |
(1,164,045 |
) |
(159,546 |
) |
|
|
|
|
|
|
|
|
|
|
Loss per
ordinary share |
|
|
|
|
|
|
|
|
Basic and diluted |
(0.24 |
) |
(0.16 |
) |
(0.30 |
) |
(0.04 |
) |
|
(0.90 |
) |
(0.79 |
) |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted
average number of ordinary share outstanding |
|
|
|
|
|
|
|
|
Basic and diluted |
1,466,529,044 |
|
1,467,200,367 |
|
1,468,336,869 |
|
1,468,336,869 |
|
|
1,463,520,253 |
|
1,467,583,364 |
|
1,467,583,364 |
|
|
GDS HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS(Amount in thousands of Renminbi ("RMB") and
US dollars ("US$")) |
|
|
Three months ended |
|
Nine months ended |
|
September 30,2022 |
June 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
|
RMB |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Net loss |
(339,663 |
) |
(225,306 |
) |
(420,831 |
) |
(57,679 |
) |
|
(1,088,223 |
) |
(1,120,749 |
) |
(153,612 |
) |
Foreign currency translation
adjustments, net of nil tax |
(219,752 |
) |
(310,992 |
) |
20,261 |
|
2,777 |
|
|
(375,458 |
) |
(242,792 |
) |
(33,277 |
) |
Comprehensive
loss |
(559,415 |
) |
(536,298 |
) |
(400,570 |
) |
(54,902 |
) |
|
(1,463,681 |
) |
(1,363,541 |
) |
(186,889 |
) |
Comprehensive income
attributable to non-controlling interests |
(910 |
) |
(2,396 |
) |
(6 |
) |
(1 |
) |
|
(1,490 |
) |
(3,897 |
) |
(534 |
) |
Comprehensive loss
attributable to redeemable non-controlling interests |
0 |
|
0 |
|
0 |
|
0 |
|
|
655 |
|
0 |
|
0 |
|
Comprehensive loss
attributable to GDS Holdings Limited shareholders |
(560,325 |
) |
(538,694 |
) |
(400,576 |
) |
(54,903 |
) |
|
(1,464,516 |
) |
(1,367,438 |
) |
(187,423 |
) |
|
GDS HOLDINGS LIMITEDUNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(Amount in
thousands of Renminbi ("RMB") and US dollars ("US$")) |
|
|
Three months ended |
|
Nine months ended |
|
September 30,2022 |
June 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
|
RMB |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Net loss |
(339,663 |
) |
(225,306 |
) |
(420,831 |
) |
(57,679 |
) |
|
(1,088,223 |
) |
(1,120,749 |
) |
(153,612 |
) |
Depreciation and amortization |
795,328 |
|
874,109 |
|
886,142 |
|
121,456 |
|
|
2,368,631 |
|
2,603,610 |
|
356,854 |
|
Amortization of debt issuance cost and debt discount |
21,012 |
|
45,226 |
|
42,058 |
|
5,765 |
|
|
119,205 |
|
131,976 |
|
18,089 |
|
Share-based compensation expense |
71,119 |
|
63,029 |
|
107,957 |
|
14,797 |
|
|
252,440 |
|
255,851 |
|
35,067 |
|
Others |
23,151 |
|
5,073 |
|
11,356 |
|
1,556 |
|
|
38,829 |
|
15,788 |
|
2,163 |
|
Changes in operating assets
and liabilities |
4,781 |
|
(27,530 |
) |
(116,236 |
) |
(15,932 |
) |
|
259,282 |
|
(770,609 |
) |
(105,620 |
) |
Net cash provided by
operating activities |
575,728 |
|
734,601 |
|
510,446 |
|
69,963 |
|
|
1,950,164 |
|
1,115,867 |
|
152,941 |
|
|
|
|
|
|
|
|
|
|
Purchase of property and equipment and land use rights |
(1,762,205 |
) |
(1,415,175 |
) |
(1,478,410 |
) |
(202,633 |
) |
|
(5,668,456 |
) |
(4,935,688 |
) |
(676,492 |
) |
(Payments) receipts related to acquisitions and investments |
(377,184 |
) |
8,807 |
|
(94,000 |
) |
(12,884 |
) |
|
(3,475,467 |
) |
(236,448 |
) |
(32,408 |
) |
Net cash used in
investing activities |
(2,139,389 |
) |
(1,406,368 |
) |
(1,572,410 |
) |
(215,517 |
) |
|
(9,143,923 |
) |
(5,172,136 |
) |
(708,900 |
) |
|
|
|
|
|
|
|
|
|
Net proceeds from financing activities |
1,380,279 |
|
(1,551,157 |
) |
442,341 |
|
60,628 |
|
|
3,996,347 |
|
2,765,599 |
|
379,057 |
|
Net cash provided by
(used in) financing activities |
1,380,279 |
|
(1,551,157 |
) |
442,341 |
|
60,628 |
|
|
3,996,347 |
|
2,765,599 |
|
379,057 |
|
Effect of exchange rate
changes on cash and restricted cash |
108,240 |
|
134,877 |
|
(10,222 |
) |
(1,402 |
) |
|
424,850 |
|
149,597 |
|
20,505 |
|
|
|
|
|
|
|
|
|
|
Net decrease of cash and
restricted cash |
(75,142 |
) |
(2,088,047 |
) |
(629,845 |
) |
(86,328 |
) |
|
(2,772,562 |
) |
(1,141,073 |
) |
(156,397 |
) |
Cash and restricted cash at
beginning of period |
9,328,947 |
|
10,456,645 |
|
8,370,564 |
|
1,147,281 |
|
|
12,026,367 |
|
8,882,066 |
|
1,217,388 |
|
Reclassification as assets of
disposal group classified as held for sale |
0 |
|
1,966 |
|
(324 |
) |
(44 |
) |
|
0 |
|
(598 |
) |
(82 |
) |
Cash and restricted
cash at end of period |
9,253,805 |
|
8,370,564 |
|
7,740,395 |
|
1,060,909 |
|
|
9,253,805 |
|
7,740,395 |
|
1,060,909 |
|
|
GDS HOLDINGS LIMITEDRECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS(Amount in thousands of
Renminbi ("RMB") and US dollars ("US$")except for
percentage data) |
|
|
Three months ended |
|
Nine months ended |
|
September 30,2022 |
June 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
|
RMB |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Gross profit |
492,805 |
|
550,997 |
|
447,449 |
|
61,329 |
|
|
1,447,823 |
|
1,490,133 |
|
204,240 |
|
Depreciation and
amortization |
680,612 |
|
735,993 |
|
748,658 |
|
102,612 |
|
|
2,014,461 |
|
2,215,559 |
|
303,668 |
|
Operating lease cost relating
to prepaid land use rights |
2,683 |
|
9,387 |
|
10,434 |
|
1,430 |
|
|
6,600 |
|
28,177 |
|
3,862 |
|
Accretion expenses for asset
retirement costs |
1,578 |
|
1,731 |
|
1,708 |
|
234 |
|
|
4,788 |
|
5,165 |
|
708 |
|
Share-based compensation
expenses |
23,645 |
|
21,697 |
|
39,005 |
|
5,346 |
|
|
74,638 |
|
87,401 |
|
11,979 |
|
Adjusted GP |
1,201,323 |
|
1,319,805 |
|
1,247,254 |
|
170,951 |
|
|
3,548,310 |
|
3,826,435 |
|
524,457 |
|
Adjusted GP margin |
50.7% |
|
53.4% |
|
49.5% |
|
49.5% |
|
|
51.3% |
|
51.7% |
|
51.7% |
|
|
GDS HOLDINGS LIMITEDRECONCILIATIONS OF
GAAP AND NON-GAAP RESULTS(Amount in thousands of
Renminbi ("RMB") and US dollars ("US$")except for
percentage data) |
|
|
Three months ended |
|
Nine months ended |
|
September 30,2022 |
June 30,2023 |
September 30,2023 |
|
September 30,2022 |
September 30,2023 |
|
RMB |
RMB |
RMB |
US$ |
|
RMB |
RMB |
US$ |
|
|
|
|
|
|
|
|
|
Net loss |
(339,663 |
) |
(225,306 |
) |
(420,831 |
) |
(57,679 |
) |
|
(1,088,223 |
) |
(1,120,749 |
) |
(153,612 |
) |
Net interest expenses |
444,328 |
|
469,472 |
|
503,156 |
|
68,963 |
|
|
1,368,647 |
|
1,457,055 |
|
199,706 |
|
Income tax expenses |
67,383 |
|
25,262 |
|
20,945 |
|
2,871 |
|
|
198,196 |
|
209,775 |
|
28,752 |
|
Depreciation and
amortization |
795,328 |
|
874,109 |
|
886,142 |
|
121,456 |
|
|
2,368,631 |
|
2,603,610 |
|
356,854 |
|
Operating lease cost relating
to prepaid land use rights |
26,496 |
|
26,845 |
|
27,211 |
|
3,730 |
|
|
75,447 |
|
80,760 |
|
11,069 |
|
Accretion expenses for asset
retirement costs |
1,578 |
|
1,731 |
|
1,708 |
|
234 |
|
|
4,788 |
|
5,165 |
|
708 |
|
Share-based compensation
expenses |
71,119 |
|
63,029 |
|
107,957 |
|
14,797 |
|
|
252,440 |
|
255,851 |
|
35,067 |
|
Adjusted EBITDA |
1,066,569 |
|
1,235,142 |
|
1,126,288 |
|
154,372 |
|
|
3,179,926 |
|
3,491,467 |
|
478,544 |
|
Adjusted EBITDA margin |
45.0% |
|
50.0% |
|
44.7% |
|
44.7% |
|
|
45.9% |
|
47.2% |
|
47.2% |
|
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