GDS Holdings Limited Reports Fourth Quarter and Full Year 2020 Results
GDS Holdings Limited (NASDAQ: GDS) reported strong financial results for Q4 and FY 2020, with net revenue rising 38.4% YoY to RMB1,631.6 million (US$250.1 million) in Q4 and 39.2% YoY to RMB5,739.0 million (US$879.5 million) for the full year. Adjusted EBITDA also grew significantly, up 43.4% YoY to RMB758.0 million (US$116.2 million) in Q4. However, net losses increased to RMB271.5 million (US$41.6 million) in Q4 and RMB669.2 million (US$102.6 million) for the year. The commitment rate for service area rose to 94.3%. GDS is poised for growth with ongoing expansions and a strong cash position of RMB16.3 billion (US$2.5 billion).
- Net revenue in Q4 2020 increased by 38.4% YoY to RMB1,631.6 million.
- Adjusted EBITDA grew by 43.4% YoY to RMB758.0 million, with a margin of 46.5%.
- Total area committed increased by 51.6% YoY to 401,554 sqm.
- Strong cash position of RMB16.3 billion (US$2.5 billion) as of Dec 31, 2020.
- Net loss in Q4 2020 rose to RMB271.5 million, compared to RMB103.7 million in Q4 2019.
- Full-year net loss increased to RMB669.2 million from RMB442.1 million in 2019.
- Net interest expenses surged by 65.5% YoY to RMB386.7 million in Q4 2020.
SHANGHAI, China, March 10, 2021 (GLOBE NEWSWIRE) -- 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, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020 Financial Highlights
- Net revenue increased by
38.4% year-over-year (“Y-o-Y”) to RMB1,631.6 million (US$250.1 million ) in the fourth quarter of 2020 (4Q2019: RMB1,179.2 million). - Service revenue increased by
40.3% Y-o-Y to RMB1,627.5 million (US$249.4 million ) in the fourth quarter of 2020 (4Q2019: RMB1,159.6 million). - Net loss was RMB271.5 million (US
$41.6 million ) in the fourth quarter of 2020, compared with a net loss of RMB103.7 million in the fourth quarter of 2019. - Adjusted EBITDA (non-GAAP) increased by
43.4% Y-o-Y to RMB758.0 million (US$116.2 million ) in the fourth quarter of 2020 (4Q2019: RMB528.7 million). See “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release. - Adjusted EBITDA margin (non-GAAP) increased to
46.5% in the fourth quarter of 2020 (4Q2019:44.8% ).
Full Year 2020 Financial Highlights
- Net revenue increased by
39.2% Y-o-Y to RMB5,739.0 million (US$879.5 million ) in 2020 (2019: RMB4,122.4 million). - Service revenue increased by
39.6% Y-o-Y to RMB5,716.9 million (US$876.1 million ) in 2020 (2019: RMB4,094.6 million). - Net loss was RMB669.2 million (US
$102.6 million ) in 2020, compared with a net loss of RMB442.1 million in 2019. - Adjusted EBITDA (non-GAAP) increased by
47.0% Y-o-Y to RMB2,680.6 million (US$410.8 million ) in 2020 (2019: RMB1,824.0 million). See “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release. - Adjusted EBITDA margin (non-GAAP) increased to
46.7% in 2020 (2019:44.2% ).
Fourth Quarter and Full Year 2020 Operating Highlights1
- Total area committed and pre-committed by customers increased by 30,097 square meters (“sqm”) in the fourth quarter of 2020, and by 136,676 sqm in the full year of 2020, to reach 401,554 sqm as of December 31, 2020, an increase of
51.6% Y-o-Y (December 31, 2019: 264,878 sqm). - Area in service increased by 38,655 sqm in the fourth quarter of 2020, and by 92,309 sqm in the full year of 2020, to reach 318,272 sqm as of December 31, 2020, an increase of
40.9% Y-o-Y (December 31, 2019: 225,963 sqm). - Commitment rate for area in service was
94.3% as of December 31, 2020 (December 31, 2019:91.9% ). - Area under construction was 137,070 sqm as of December 31, 2020 (December 31, 2019: 89,834 sqm).
- Pre-commitment rate for area under construction was
73.9% as of December 31, 2020 (December 31, 2019:63.6% ). - Area utilized by customers increased by 16,461 sqm in the fourth quarter of 2020, and by 70,190 sqm in the full year of 2020, to reach 226,212 sqm as of December 31, 2020, an increase of
45.0% Y-o-Y (December 31, 2019: 156,022 sqm). - Utilization rate for area in service was
71.1% as of December 31, 2020 (December 31, 2019:69.0% ).
“We completed another remarkable year underscored by outstanding financial results, proving our execution capability in a difficult operating environment,” said Mr. William Huang, Chairman and Chief Executive Officer. “Our strong sales momentum continued throughout the year, resulting in over
“We delivered another strong set of financial results in 2020, achieving revenue growth of
Fourth Quarter 2020 Financial Results
Net revenue in the fourth quarter of 2020 was RMB1,631.6 million (US
Cost of revenue in the fourth quarter of 2020 was RMB1,201.6 million (US
Gross profit was RMB430.0 million (US
Adjusted Gross Profit2 (“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 RMB873.5 million (US
Adjusted GP margin2 (non-GAAP) was
Selling and marketing expenses, excluding share-based compensation expenses of RMB14.5 million (US
General and administrative expenses, excluding share-based compensation expenses of RMB63.6 million (US
Research and development costs were RMB10.0 million (US
Net interest expenses for the fourth quarter of 2020 were RMB386.7 million (US
Foreign currency exchange loss for the fourth quarter of 2020 was RMB3.7 million (US
Others, net for the fourth quarter of 2020 was RMB7.6 million (US
Net loss in the fourth quarter of 2020 was RMB271.5 million (US
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 and gain from purchase price adjustment. Adjusted EBITDA was RMB758.0 million (US
Adjusted EBITDA margin (non-GAAP) was
Basic and diluted loss per ordinary share in the fourth quarter of 2020 was RMB0.21 (US
Basic and diluted loss per American Depositary Share (“ADS”) in the fourth quarter of 2020 was RMB1.70 (US
Full Year 2020 Financial Results
Net revenue in 2020 was RMB5,739.0 million (US
Cost of revenue in 2020 was RMB4,188.5 million (US
Gross profit was RMB1,550.5 million (US
Sales and marketing expenses, excluding share-based compensation expenses of RMB54.2 million (US
General and administrative expenses, excluding share-based compensation expenses of RMB184.9 million (US
Research and development costs were RMB40.0 million (US
Net interest expenses were RMB1,287.5 million (US
Net loss was RMB669.2 million (US
Adjusted EBITDA was RMB2,680.6 million (US
Basic and diluted loss per ordinary share was RMB0.59 (US
Sales1
Total area committed and pre-committed at the end of the fourth quarter of 2020 was 401,554 sqm, compared with 264,878 sqm at the end of the fourth quarter of 2019 and 371,456 sqm at the end of the third quarter of 2020, an increase of
Data Center Resources1
Area in service at the end of the fourth quarter of 2020 was 318,272 sqm, compared with 225,963 sqm at the end of the fourth quarter of 2019 and 279,618 sqm at the end of the third quarter of 2020, an increase of
Area under construction at the end of the fourth quarter of 2020 was 137,070 sqm, compared with 89,834 sqm at the end of the fourth quarter of 2019 and 149,983 sqm at the end of the third quarter of 2020, an increase of
Commitment rate for area in service was
Area utilized at the end of the fourth quarter of 2020 was 226,212 sqm, compared with 156,022 sqm at the end of the fourth quarter of 2019 and 209,751 sqm at the end of the third quarter of 2020, an increase of
Utilization rate for area in service was
Beijing 9 Acquisition
As previously disclosed, the Company entered into an agreement in the third quarter of 2019 for the acquisition of a data center, Beijing 9 (“BJ9”), and subsequently entered into contracts in the fourth quarter of 2019 to provide services to customers and to operate the BJ9 data center pending completion of its acquisition.
The Company completed such acquisition during the fourth quarter of 2020. BJ9 has a net floor area of 8,029 sqm, with a utilization rate of
Shanghai 19 Acquisition
As previously disclosed, the Company entered into an agreement in the fourth quarter of 2020 for the acquisition of a data center project in Shanghai (“SH19”), located in the same area as its existing Waigaoqiao data center cluster. The Company completed such acquisition during the same quarter.
SH19 has a net floor area of 12,810 sqm and is being developed in two phases. SH19 Phase 1, with a net floor area of 7,984 sqm, came into service in the fourth quarter of 2020. It is fully committed by one of the Company’s existing top customers. SH19 Phase 2, with a net floor area of 4,826 sqm, is currently under construction. It is expected to come into service in the second half of 2021. The cash consideration for
Huidong Land Site 1
As previously disclosed, the Company entered in a land use right grant contract with the local government to acquire a greenfield site in Huidong County, Huizhou City, Guangdong Province (namely “Huidong Land Site 1”) in the fourth quarter of 2020. The Company completed such land acquisition during the same quarter. Huizhou is one of the key areas identified for data center development in the Guangdong Province’s recently published New Infrastructure plan. The site is located within the Greater Bay Data Center Industrial Park, around 24 km away from the Company’s Shenzhen 4 data center. Huidong Land Site 1 has a land area of approximately 115,000 sqm, and once fully developed, will yield a net floor area of approximately 72,000 sqm according to the preliminary design. Huidong Land Site 1 is currently held for future development.
Langfang Land Site 1 Phase 3
The Company previously entered into a framework agreement with the local government for the allocation of power and acquisition in phases of a greenfield site (namely Langfang Land Site 1), with a total land area of approximately 120,000 sqm, in Langfang, Hebei province. Langfang is about 50 km to the southwest of Beijing.
In the third quarter of 2019, the Company acquired the first phase of this greenfield site (namely Langfang Land Site 1 Phase 1), on which the Company is currently constructing Langfang 3 (“LF3”) data center, with a net floor area of 11,664 sqm.
In the fourth quarter of 2019, the Company acquired the second phase (namely Langfang Land Site 1 Phase 2), on which the Company is currently constructing Langfang 4 (“LF4”) and LF5 data centers, each of which will have a net floor area of 14,832 sqm. Both LF3 and LF4 are
In the fourth quarter of 2020, the Company acquired the third and final phase of this greenfield site (namely Langfang Land Site 1 Phase 3), with a land area of approximately 55,000 sqm. Based on preliminary design, it will yield a net floor area of approximately 30,000 sqm. Langfang Land Site 1 Phase 3 is currently held for future development.
Langfang Land Site 4
In the fourth quarter of 2020, the Company acquired from the local government a new greenfield site in Langfang (namely Langfang Land Site 4), within the Company’s existing Langfang cluster, adjacent to Langfang Land Site 3. Langfang Land Site 4 has a land area of approximately 101,000 sqm. Based on preliminary design, it will yield a net floor area of approximately 54,000 sqm. Langfang Land Site 4 is currently held for future development.
Hong Kong Initial Public Offering
On November 2, 2020, the Company successfully completed its Hong Kong Initial Public Offering of 160,000,000 Class A ordinary shares (the “Shares”), equivalent to 20,000,000 American Depositary Shares (“ADSs”). The Shares began trading on the Main Board of the Hong Kong Stock Exchange on the same day under the stock code “9698”. The public offering price was HK
Liquidity
As of December 31, 2020, cash was RMB16,259.5 million (US
Recent Developments
Chongqing 1 Data Center – Entering a New Market
As previously disclosed, in early 2020, the Company acquired from the local government a greenfield site with a land area of approximately 49,000 sqm in the city of Chongqing. Once fully developed, it will yield a total net floor area of approximately 25,000 sqm according to the preliminary design. Chongqing is a primary economic hub in the West of China, along with Chengdu. Chongqing is becoming a new Tier 1 market in China in terms of data center demand.
The Company plans to develop two data centers on the site. During the first quarter of 2021, the Company commenced construction of the first such data center, Chongqing 1 (“CQ1”). CQ1 will yield a net floor area of approximately 8,640 sqm and is expected to come into service in late 2021. The Company has already secured an anchor order from an existing hyperscale customer for CQ1.
Changshu Land Site 1 Phase 2
The Company previously entered into a framework agreement with the local government for the allocation of power and acquisition in phases of a greenfield site, with a total land area of approximately 140,000 sqm, in Changshu, Jiangsu Province. Changshu is about 70 km to the northwest of Shanghai.
In the fourth quarter of 2019, the Company completed the acquisition of the first phase of this greenfield site (namely Changshu Land Site 1 Phase 1). Changshu Land Site 1 Phase 1 has a land area of approximately 67,000 sqm and, once developed, will yield a net floor area of approximately 33,000 sqm. The Company plans to develop three data centers on this site, the first of which, Changshu 1 (“CS1”), with a net floor area of 11,088 sqm, is currently under construction. CS1 is
During the first quarter of 2021, the Company acquired the second phase of this site, with a land area of approximately 73,000 sqm (namely Changshu Land Site 1 Phase 2). Based on preliminary design, it will yield a net floor area of approximately 33,000 sqm. Changshu Land Site 1 Phase 2 is currently held for future development.
Beijing 15 Acquisition (previously named as Beijing 14)
As previously disclosed, in September 2020, the Company extended a legally-binding offer to acquire
During the first quarter of 2021, the Company entered into a definitive equity purchase agreement for such transaction and expects to close the acquisition in the next couple of months.
BJ15 has a net floor area of over 19,000 sqm. It is fully operational and is currently approximately
Shenzhen 8 – New Acquisition
The Company recently entered into an equity purchase agreement to acquire
Tianjin 1 – New Acquisition
The Company recently entered into an equity purchase agreement to acquire
Business Outlook
For the full year of 2021, the Company expects its total revenues to be between RMB7,700 million and RMB8,000 million, implying a year-on-year increase of between approximately
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 7:00 p.m. U.S. Eastern Time on March 10, 2021 (8:00 a.m. Beijing Time on March 11, 2021) to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:
| United States: | +1-845-675-0437 |
| International: | +65-6713-5090 |
| Hong Kong: | +852-3018-6771 |
| Mainland China: | 400-620-8038 |
| Conference ID: | 6199036 |
Participants should dial in at least 10 minutes before the scheduled start time and provide the Conference ID to the Operator to be connected to the conference. Due to conditions surrounding the outbreak of COVID-19, participants may experience longer than normal hold period before being assisted to join the call. The Company thanks everyone in advance for their patience and understanding.
A telephone replay will be available approximately two hours after the call until March 18, 2021 08:59 AM U.S. ET by dialing:
| United States: | +1-646-254-3697 |
| International: Hong Kong: Mainland China: | +61-2-8199-0299 +852-3051-2780 400-632-2162 |
| Replay Access Code: | 6199036 |
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 and accretion expenses for asset retirement costs), 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 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 and gain from purchase price adjustment, 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 RMB 6.5250 to US
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. The Company’s facilities are strategically located in China’s primary economic hubs where demand for high-performance data center services is concentrated. The Company’s data centers have large net floor area, high power capacity, density and efficiency, and multiple redundancy across all critical systems. GDS is carrier and cloud-neutral, which enables its customers to access all the major PRC telecommunications networks, as well as the largest PRC and global public clouds which are hosted in many of its facilities. The Company offers colocation and managed services, including direct private connection to leading public clouds, an innovative service platform for managing hybrid clouds and, where required, the resale of public cloud services. The Company has a 20-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 annual report to shareholders, 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; 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; 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; security breaches; power outages; and fluctuations in general economic and business conditions in China and globally, the impact of the COVID-19 outbreak, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in the GDS Holdings’ filings with the SEC, including its annual report on form 20-F. 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 Limited
Laura Chen
Phone: +86 (21) 5176-5509
Email: ir@gds-services.com
The Piacente Group, Inc.
Ross Warner
Phone: +86 (10) 6508-0677
Email: GDS@tpg-ir.com
Brandi Piacente
Phone: +1 (212) 481-2050
Email: GDS@tpg-ir.com
GDS Holdings Limited
| GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||||||
| As of December 31, 2019 | As of December 31, 2020 | ||||||
| RMB | RMB | US$ | |||||
| Assets | |||||||
| Current assets | |||||||
| Cash | 5,810,938 | 16,259,457 | 2,491,871 | ||||
| Accounts receivable, net of allowance for doubtful accounts | 879,962 | 1,480,335 | 226,871 | ||||
| Value-added-tax (“VAT”) recoverable | 129,994 | 155,620 | 23,850 | ||||
| Prepaid expenses and other current assets | 263,815 | 423,394 | 64,888 | ||||
| Total current assets | 7,084,709 | 18,318,806 | 2,807,480 | ||||
| Property and equipment, net | 19,184,639 | 29,596,061 | 4,535,795 | ||||
| Prepaid land use rights, net | 747,187 | 678,190 | 103,937 | ||||
| Operating lease right-of-use assets | 796,679 | 3,059,700 | 468,920 | ||||
| Goodwill and intangible assets, net | 2,300,468 | 3,381,715 | 518,271 | ||||
| Other non-current assets | 1,378,849 | 2,224,323 | 340,891 | ||||
| Total assets | 31,492,531 | 57,258,795 | 8,775,294 | ||||
| Liabilities, Mezzanine Equity and Shareholders’ Equity | |||||||
| Current liabilities | |||||||
| Short-term borrowings and current portion of long-term borrowings | 1,137,737 | 2,153,390 | 330,021 | ||||
| Accounts payable | 1,675,966 | 3,657,112 | 560,477 | ||||
| Accrued expenses and other payables | 908,199 | 1,492,649 | 228,758 | ||||
| Operating lease liabilities, current | 55,139 | 86,258 | 13,220 | ||||
| Finance lease and other financing obligations, current | 222,473 | 254,412 | 38,990 | ||||
| Total current liabilities | 3,999,514 | 7,643,821 | 1,171,466 | ||||
| Long-term borrowings, excluding current portion | 8,028,473 | 10,566,746 | 1,619,425 | ||||
| Convertible bonds payable | 2,049,654 | 1,928,466 | 295,550 | ||||
| Operating lease liabilities, non-current | 709,998 | 1,542,895 | 236,459 | ||||
| Finance lease and other financing obligations, non-current | 4,751,121 | 8,097,881 | 1,241,055 | ||||
| Other long-term liabilities | 598,209 | 811,264 | 124,332 | ||||
| Total liabilities | 20,136,969 | 30,591,073 | 4,688,287 | ||||
| Mezzanine equity | |||||||
| Redeemable preferred shares | 1,061,981 | 980,910 | 150,331 | ||||
| Redeemable non-controlling interests | 0 | 120,820 | 18,516 | ||||
| Total mezzanine equity | 1,061,981 | 1,101,730 | 168,847 | ||||
| Shareholders' equity | |||||||
| Ordinary shares | 412 | 507 | 78 | ||||
| Additional paid-in capital | 12,403,043 | 28,728,717 | 4,402,869 | ||||
| Accumulated other comprehensive loss | (52,684 | ) | (439,635 | ) | (67,377 | ) | |
| Accumulated deficit | (2,057,190 | ) | (2,723,597 | ) | (417,410 | ) | |
| Total shareholders’ equity | 10,293,581 | 25,565,992 | 3,918,160 | ||||
| Commitments and contingencies | |||||||
| Total liabilities, mezzanine equity and shareholders' equity | 31,492,531 | 57,258,795 | 8,775,294 | ||||
| GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for number of shares and per share data) | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| December 31, 2019 | September 30, 2020 | December 31, 2020 | December 31, 2019 | December 31, 2020 | ||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
| Net revenue | ||||||||||||||||
| Service revenue | 1,159,610 | 1,522,353 | 1,627,451 | 249,418 | 4,094,571 | 5,716,868 | 876,148 | |||||||||
| Equipment sales | 19,577 | 2,396 | 4,149 | 636 | 27,834 | 22,104 | 3,388 | |||||||||
| Total net revenue | 1,179,187 | 1,524,749 | 1,631,600 | 250,054 | 4,122,405 | 5,738,972 | 879,536 | |||||||||
| Cost of revenue | (884,464 | ) | (1,115,784 | ) | (1,201,554 | ) | (184,146 | ) | (3,079,679 | ) | (4,188,521 | ) | (641,919 | ) | ||
| Gross profit | 294,723 | 408,965 | 430,046 | 65,908 | 1,042,726 | 1,550,451 | 237,617 | |||||||||
| Operating expenses | ||||||||||||||||
| Selling and marketing expenses | (39,668 | ) | (35,157 | ) | (39,720 | ) | (6,087 | ) | (129,901 | ) | (134,937 | ) | (20,680 | ) | ||
| General and administrative expenses | (120,891 | ) | (203,460 | ) | (225,342 | ) | (34,535 | ) | (411,418 | ) | (702,524 | ) | (107,667 | ) | ||
| Research and development expenses | (6,595 | ) | (11,020 | ) | (10,042 | ) | (1,539 | ) | (21,627 | ) | (40,049 | ) | (6,138 | ) | ||
| Income from operations | 127,569 | 159,328 | 154,942 | 23,747 | 479,780 | 672,941 | 103,132 | |||||||||
| Other income (expenses): | ||||||||||||||||
| Net interest expenses | (233,615 | ) | (339,245 | ) | (386,736 | ) | (59,270 | ) | (915,676 | ) | (1,287,495 | ) | (197,317 | ) | ||
| Foreign currency exchange loss, net | (446 | ) | (134 | ) | (3,698 | ) | (567 | ) | (6,000 | ) | (21,038 | ) | (3,224 | ) | ||
| Gain from purchase price adjustment | 0 | 0 | 0 | 0 | 0 | 55,154 | 8,453 | |||||||||
| Others, net | 6,341 | 10,481 | 7,617 | 1,167 | 15,463 | 32,002 | 4,905 | |||||||||
| Loss before income taxes | (100,151 | ) | (169,570 | ) | (227,875 | ) | (34,923 | ) | (426,433 | ) | (548,436 | ) | (84,051 | ) | ||
| Income tax expenses | (3,511 | ) | (35,065 | ) | (43,626 | ) | (6,686 | ) | (15,650 | ) | (120,778 | ) | (18,510 | ) | ||
| Net loss | (103,662 | ) | (204,635 | ) | (271,501 | ) | (41,609 | ) | (442,083 | ) | (669,214 | ) | (102,561 | ) | ||
| Net loss attributable to redeemable non-controlling interests | 0 | 1,240 | 1,567 | 240 | 0 | 2,807 | 430 | |||||||||
| Net loss attributable to GDS Holdings Limited shareholders | (103,662 | ) | (203,395 | ) | (269,934 | ) | (41,369 | ) | (442,083 | ) | (666,407 | ) | (102,131 | ) | ||
| Accretion to redemption value of redeemable non-controlling interests | 0 | (7,142 | ) | (11,485 | ) | (1,760 | ) | 0 | (18,627 | ) | (2,855 | ) | ||||
| Net loss available to GDS Holdings Limited shareholders | (103,662 | ) | (210,537 | ) | (281,419 | ) | (43,129 | ) | (442,083 | ) | (685,034 | ) | (104,986 | ) | ||
| Change in redemption value of redeemable preferred shares | 0 | 0 | 0 | 0 | (17,760 | ) | 0 | 0 | ||||||||
| Cumulative dividend on redeemable preferred shares | (13,486 | ) | (13,284 | ) | (12,758 | ) | (1,955 | ) | (40,344 | ) | (52,709 | ) | (8,078 | ) | ||
| Net loss available to GDS Holdings Limited ordinary shareholders | (117,148 | ) | (223,821 | ) | (294,177 | ) | (45,084 | ) | (500,187 | ) | (737,743 | ) | (113,064 | ) | ||
| Loss per ordinary share | ||||||||||||||||
| Basic and diluted | (0.10 | ) | (0.18 | ) | (0.21 | ) | (0.03 | ) | (0.45 | ) | (0.59 | ) | (0.09 | ) | ||
| Weighted average number of ordinary share outstanding | ||||||||||||||||
| Basic and diluted | 1,142,608,700 | 1,257,370,403 | 1,383,065,366 | 1,383,065,366 | 1,102,953,366 | 1,253,559,523 | 1,253,559,523 | |||||||||
GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| December 31, 2019 | September 30, 2020 | December 31, 2020 | December 31, 2019 | December 31, 2020 | ||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
| Net loss | (103,662 | ) | (204,635 | ) | (271,501 | ) | (41,609 | ) | (442,083 | ) | (669,214 | ) | (102,561 | ) | ||
| Foreign currency translation adjustments, net of nil tax | (9,467 | ) | (58,832 | ) | (333,728 | ) | (51,146 | ) | 86,570 | (386,951 | ) | (59,303 | ) | |||
| Comprehensive loss | (113,129 | ) | (263,467 | ) | (605,229 | ) | (92,755 | ) | (355,513 | ) | (1,056,165 | ) | (161,864 | ) | ||
| Comprehensive loss attributable to redeemable non-controlling interests | 0 | 1,240 | 1,567 | 240 | 0 | 2,807 | 430 | |||||||||
| Comprehensive loss attributable to GDS Holdings Limited shareholders | (113,129 | ) | (262,227 | ) | (603,662 | ) | (92,515 | ) | (355,513 | ) | (1,053,358 | ) | (161,434 | ) | ||
| GDS HOLDINGS LIMITED UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| December 31, 2019 | September 30, 2020 | December 31, 2020 | December 31, 2019 | December 31, 2020 | |||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
| Net loss | (103,662 | ) | (204,635 | ) | (271,501 | ) | (41,609 | ) | (442,083 | ) | (669,214 | ) | (102,561 | ) | |
| Depreciation and amortization | 319,470 | 450,851 | 478,400 | 73,318 | 1,142,032 | 1,638,474 | 251,107 | ||||||||
| Amortization of debt issuance cost and debt discount | 13,876 | 23,957 | 79,607 | 12,200 | 99,380 | 160,699 | 24,628 | ||||||||
| Share-based compensation expense | 74,936 | 88,607 | 111,237 | 17,048 | 189,756 | 333,686 | 51,140 | ||||||||
| Gain from purchase price adjustment | 0 | 0 | 0 | 0 | 0 | (55,154 | ) | (8,453 | ) | ||||||
| Others | (8,880 | ) | (8,727 | ) | (2,696 | ) | (413 | ) | (49,388 | ) | (64,171 | ) | (9,835 | ) | |
| Changes in operating assets and liabilities | (223,627 | ) | (357,996 | ) | (82,455 | ) | (12,637 | ) | (646,261 | ) | (1,023,433 | ) | (156,848 | ) | |
| Net cash provided by (used in) operating activities | 72,113 | (7,943 | ) | 312,592 | 47,907 | 293,436 | 320,887 | 49,178 | |||||||
| Purchase of property and equipment and land use rights | (2,091,787 | ) | (2,140,979 | ) | (2,331,998 | ) | (357,394 | ) | (4,552,617 | ) | (8,020,580 | ) | (1,229,207 | ) | |
| Payments related to acquisitions and investments | (515,411 | ) | (606,963 | ) | (413,231 | ) | (63,331 | ) | (578,614 | ) | (1,357,427 | ) | (208,035 | ) | |
| Net cash used in investing activities | (2,607,198 | ) | (2,747,942 | ) | (2,745,229 | ) | (420,725 | ) | (5,131,231 | ) | (9,378,007 | ) | (1,437,242 | ) | |
| Net proceeds from financing activities | 2,705,016 | 1,154,008 | 13,117,261 | 2,010,308 | 8,361,939 | 20,143,661 | 3,087,152 | ||||||||
| Net cash provided by financing activities | 2,705,016 | 1,154,008 | 13,117,261 | 2,010,308 | 8,361,939 | 20,143,661 | 3,087,152 | ||||||||
| Effect of exchange rate changes on cash and restricted cash | (58,508 | ) | (151,479 | ) | (464,882 | ) | (71,246 | ) | 164,370 | (566,874 | ) | (86,878 | ) | ||
| Net increase (decrease) of cash and restricted cash | 111,423 | (1,753,356 | ) | 10,219,742 | 1,566,244 | 3,688,514 | 10,519,667 | 1,612,210 | |||||||
| Cash and restricted cash at beginning of period | 5,861,839 | 8,026,543 | 6,273,187 | 961,408 | 2,284,748 | 5,973,262 | 915,442 | ||||||||
| Cash and restricted cash at end of period | 5,973,262 | 6,273,187 | 16,492,929 | 2,527,652 | 5,973,262 | 16,492,929 | 2,527,652 | ||||||||
| GDS HOLDINGS LIMITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for percentage data) | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| December 31, 2019 | September 30, 2020 | December 31, 2020 | December 31, 2019 | December 31, 2020 | ||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
| Gross profit | 294,723 | 408,965 | 430,046 | 65,908 | 1,042,726 | 1,550,451 | 237,617 | |||||||||
| Depreciation and amortization | 300,422 | 378,291 | 409,396 | 62,743 | 1,071,719 | 1,425,906 | 218,530 | |||||||||
| Operating lease cost relating to prepaid land use rights | 0 | 0 | 1,360 | 208 | 0 | 1,360 | 208 | |||||||||
| Accretion expenses for asset retirement costs | 813 | 1,070 | 1,174 | 180 | 2,990 | 4,084 | 626 | |||||||||
| Share-based compensation expenses | 17,189 | 23,951 | 31,553 | 4,836 | 46,007 | 89,943 | 13,784 | |||||||||
| Adjusted GP | 613,147 | 812,277 | 873,529 | 133,875 | 2,163,442 | 3,071,744 | 470,765 | |||||||||
| Adjusted GP margin | 52.0% | 53.3% | 53.5% | 53.5% | 52.5% | 53.5% | 53.5% | |||||||||
| GDS HOLDINGS LIMITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (Amount in thousands of Renminbi ("RMB") and US dollars ("US$") except for percentage data) | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| December 31, 2019 | September 30, 2020 | December 31, 2020 | December 31, 2019 | December 31, 2020 | ||||||||||||
| RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
| Net loss | (103,662 | ) | (204,635 | ) | (271,501 | ) | (41,609 | ) | (442,083 | ) | (669,214 | ) | (102,561 | ) | ||
| Net interest expenses | 233,615 | 339,245 | 386,736 | 59,270 | 915,676 | 1,287,495 | 197,317 | |||||||||
| Income tax expenses | 3,511 | 35,065 | 43,626 | 6,686 | 15,650 | 120,778 | 18,510 | |||||||||
| Depreciation and amortization | 319,470 | 450,851 | 478,400 | 73,318 | 1,142,032 | 1,638,474 | 251,107 | |||||||||
| Operating lease cost relating to prepaid land use rights | 0 | 6,914 | 8,281 | 1,269 | 0 | 20,412 | 3,128 | |||||||||
| Accretion expenses for asset retirement costs | 813 | 1,070 | 1,174 | 180 | 2,990 | 4,084 | 626 | |||||||||
| Share-based compensation expenses | 74,936 | 88,607 | 111,237 | 17,048 | 189,756 | 333,686 | 51,140 | |||||||||
| Gain from purchase price adjustment | 0 | 0 | 0 | 0 | 0 | (55,154 | ) | (8,453 | ) | |||||||
| Adjusted EBITDA | 528,683 | 717,117 | 757,953 | 116,162 | 1,824,021 | 2,680,561 | 410,814 | |||||||||
| Adjusted EBITDA margin | 44.8% | 47.0% | 46.5% | 46.5% | 44.2% | 46.7% | 46.7% | |||||||||
_________________________
1 The Company revised its operating metrics for the third quarter of 2020 to include two projects which it is undertaking on a Build-Operate-Transfer (“B-O-T”) basis. The two projects are Huailai 1 (“HL1”) and Langfang 10 (“LF10”), with net floor areas of 3,440 sqm and 10,672 sqm respectively, both of which were under construction commencing during the third quarter of 2020 and
2 During the third quarter of 2020, the Company has changed the description of “Adjusted Net Operating Income” and “Adjusted Net Operating Income Margin”, to “Adjusted Gross Profit” and “Adjusted Gross Profit Margin”, respectively. The change in description and presentation of non-GAAP reconciliation does not change the outcome of the operating metrics or financial results.
3 As of October 23, 2020, as set forth in the H.10 statistical release of The Board of Governors of the Federal Reserve System.
FAQ
What were GDS's financial results for Q4 2020?
How much did GDS's adjusted EBITDA grow in 2020?
What is GDS's net loss for the full year 2020?
What is the total area committed by GDS as of December 31, 2020?
What was the adjusted EBITDA margin for GDS in Q4 2020?
