SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

December 5, 2016

 

Commission File Number: 001-37925

 

GDS Holdings Limited

(Registrant’s name)

 

2/F, Tower 2, Youyou Century Place

428 South Yanggao Road

Pudong, Shanghai 200127

People’s Republic of China

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F x                      Form 40-F o

 

Indicate by check mark if the registrant is submitting the Form 6-K on paper as permitted by Regulation S-T Rule 101(b)(1): o

 

Indicate by check mark if the registrant is submitting the Form 6-K on paper as permitted by Regulation S-T Rule 101(b)(7): o

 

 

 



 

EXHIBITS

 

Exhibit 99.1 — Press Release — GDS Reports Third Quarter 2016 Results

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

GDS Holdings Limited

 

 

Date: December 5, 2016

By:

/s/ Daniel Newman

 

Name:

Daniel Newman

 

Title:

Chief Financial Officer

 


Exhibit 99.1

 

 

GDS Reports

 

Third Quarter 2016 Results

 

·                      First Earnings Results as a Public Company

 

·                      Revenue Growth of 56.6% Year-over-Year

 

·                      Total Area Committed Increase of 69.6% Year-over-Year

 



 

GDS Holdings Limited Reports Third Quarter 2016 Results

 

Shanghai, China, December 5, 2016 — GDS Holdings Limited (the “Company”) (NASDAQ: GDS), a leading developer and operator of high-performance data centers in China, today announced its unaudited financial results for the quarter ended September 30, 2016 (“third quarter” or “3Q2016”).

 

Financial Highlights

 

·                  Net revenue increased by 56.6% year-over-year (“Y-o-Y”) to RMB297.2 million (US$44.6 million) in the third quarter of 2016 (3Q2015: RMB189.8 million).

·                  Service revenue increased by 58.4% Y-o-Y to RMB266.9 million (US$40.0 million) in the third quarter of 2016 (3Q2015: RMB168.4 million).

·                  Net loss was RMB52.6 million (US$7.9 million) in the third quarter of 2016, compared with a net loss of RMB23.1 million in the third quarter of 2015.

·                  Adjusted EBITDA (non-GAAP) increased by 82.7% to RMB78.0 million (US$11.7 million) in the third quarter of 2016 (3Q2015: RMB42.7 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 26.2% in the third quarter of 2016 (3Q2015: 22.5%).

 

Operating Highlights

 

·                      Total area committed increased by 69.6% Y-o-Y to 58,627 sqm as of September 30, 2016 (September 30, 2015: 34,572 sqm).

·                      Area utilized (or revenue generating space) increased by 63.0% Y-o-Y to 34,369 sqm as of September 30, 2016 (September 30, 2015: 21,083 sqm).

·                      Area in service increased by 29.7% Y-o-Y to 48,822 sqm as of September 30, 2016 (September 30, 2015: 37,645 sqm).

·                      Commitment rate for area in service was 93.8% (September 30, 2015: 84.5%) and utilization rate was 70.4% (September 30, 2015: 56.0%).

·                      Area under construction was 37,194 sqm as of September 30, 2016 (September 30, 2015: 13,163 sqm).

·                      Pre-commitment rate for area under construction was 34.5% (September 30, 2015: 21.1%).

 



 

Initial Public Offering (“IPO”)

 

·                  On November 2, 2016, the Company successfully completed its IPO of 20,070,735 American Depositary Shares (“ADS”) (including 820,735 ADSs purchased upon the partial exercise, on December 2, 2016, of the underwriters’ over-allotment option), each representing eight of its Class A ordinary shares, at a price of US$10.00 per ADS for a total offering size of approximately US$200.7 million. Upon completion of the IPO, 349,087,677 preferred shares were automatically converted into 349,087,677 Class A ordinary shares on a one-to-one basis.

 

“We are pleased to report our earnings for the first time as a public company,” said Mr. William Huang, Chairman and Chief Executive Officer of GDS, “In the third quarter, we made great progress in growing our customer base, developing data center resources and delivering financial results. Internet, e-commerce and cloud are driving significant demand for high-performance data centers in China. With our established customer relationships, strategically located data center portfolio, and outstanding operating track record, we are well positioned to capture significant share in this growing market. We believe our successful IPO on Nasdaq is an important milestone which will further strengthen our brand recognition and financial position.”

 

“Our third quarter results continued to demonstrate robust growth in our business,” said Mr. Dan Newman, Chief Financial Officer of GDS, “We achieved a revenue growth of 56.6% year-over-year during the third quarter, while continuing to improve both our area committed and utilization rates. The significant increase in our total area committed further reflects the enormous market demand and provides great visibility for our future revenue growth. We are confident in our ability to continue this strong momentum in the future.”

 

Financial Results

 

Net revenue in the third quarter of 2016 was RMB297.2 million (US$44.6 million), a 56.6% increase over the third quarter of 2015. Service revenue in the third quarter of 2016 was RMB266.9 million (US$40.0 million), a 58.4% increase over the third quarter of 2015 and a 14.1% increase over the second quarter of 2016. The increase in service revenue over the previous quarter was mainly due to (i) an increase in area utilized from 32,152 sqm as of June 30, 2016 to 34,369 sqm as of September 30, 2016 as customers with commitments moved into the data center area and (ii) an increase in revenue generated by our Guangzhou 1 (“GZ1”) data center which we acquired during the second quarter of 2016 and from our Shenzhen 2 (“SZ2”) data center which commenced operations during the second quarter of 2016. Revenue from IT equipment sales was RMB30.3 million (US$4.6 million), compared with RMB21.3 million in the third quarter of 2015 and RMB2.0 million in the second quarter of 2016.

 



 

Cost of revenue in the third quarter of 2016 was RMB222.5 million (US$33.4 million), a 60.2% increase over the third quarter of 2015 and a 27.1% increase over the second quarter of 2016. The increase over the previous quarter was mainly due to (i) a 15.7% increase in utility costs as a result of the increase in area utilized, (ii) a 26.4% increase in depreciation and amortization costs as a result of the completion of SZ2 data center during the second quarter of 2016, and (iii) RMB25.5 million (US$3.8 million) of IT equipment costs, compared with RMB1.9 million in the second quarter of 2016.

 

Gross profit was RMB74.6 million (US$11.2 million) in the third quarter of 2016, a 46.8% increase over the third quarter of 2015 and a 22.6% increase over the second quarter of 2016. Gross profit margin was 25.1% in the third quarter of 2016, compared with 26.8% in the third quarter of 2015 and 25.8% in the second quarter of 2016. The slight decrease over the previous quarter in gross profit margin was primarily due to the higher level of IT equipment sales for which the gross profit margin was lower, while our gross profit margin on service revenue was unchanged.

 

Sales and marketing expenses, excluding share-based compensation expenses, were RMB17.1 million (US$2.6 million) in the third quarter of 2016, a 10.7% increase over the third quarter of 2015 of RMB15.5 million and a 9.2% increase from the second quarter of 2016 of RMB15.7 million. The increase over the previous quarter was primarily due to an increase in personnel costs and promotional and corporate activities. The Company recorded share-based compensation expenses of RMB5.1 million in the second quarter of 2016 related to the fully vested share options granted in May 2016.

 

General and administrative expenses, excluding share-based compensation expenses, were RMB43.3 million (US$6.5 million) in the third quarter of 2016, a 16.2% increase over the third quarter of 2015 of RMB37.3 million and a 16.9% decrease from the second quarter of 2016 of RMB52.1 million. The decrease over the previous quarter was primarily due to a decrease of directors’ fees of RMB8.2 million. The Company recorded share-based compensation expenses of RMB50.9 million in the second quarter of 2016 related to the fully vested share options granted in May 2016.

 



 

Research and development costs were RMB2.2 million (US$0.3 million) in the third quarter of 2016, compared with RMB0.8 million in the third quarter 2015 and RMB2.8 million in the second quarter of 2016.

 

Net interest expenses for the third quarter of 2016 was RMB69.4 million (US$10.4 million), a 134.3% increase over the third quarter of 2015 and a 21.1% increase over the second quarter of 2016. The increase over the previous quarter was mainly due to increased borrowings as a result of the refinancing of our Shanghai data centers and increased interest expenses related to our SZ2 data center which commenced operations during the second quarter.

 

Adjusted EBITDA (non-GAAP) is defined as net loss excluding net interest expenses, income tax benefits, depreciation and amortization, accretion expenses for asset retirement costs and share-based compensation expenses. Adjusted EBITDA was RMB78.0 million (US$11.7 million) in the third quarter of 2016, an 82.7% increase over the third quarter of 2015 and a 65.2% increase over the second quarter of 2016.

 

Adjusted EBITDA margin (non-GAAP) was 26.2% in the third quarter of 2016, compared with 22.5% in the third quarter of 2015 and 20.0% in the second quarter of 2016. For more information on these non-GAAP measures, see “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release.

 

Net loss in the third quarter of 2016 was RMB52.6 million (US$7.9 million), compared with a net loss of RMB23.1 million in the third quarter of 2015 and a net loss of RMB115.4 million in the second quarter of 2016.

 

Basic and diluted loss per ordinary share in the third quarter of 2016 was RMB0.38 (US$0.06), compared with RMB0.24 in the third quarter of 2015 and RMB0.66 in the second quarter of 2016.

 

Basic and diluted loss per ADS in the third quarter of 2016 was RMB3.08 (US$0.46), compared with RMB1.93 in the third quarter of 2015 and RMB5.32 in the second quarter of 2016. Each ADS represents eight Class A ordinary shares.

 



 

Sales

 

Net additional total area committed was 14,013 sqm in the third quarter of 2016, of which 12,293 sqm related to pre-commitments for data centers under construction. Total area committed at the end of the third quarter of 2016 was 58,627 sqm, compared with 34,572 sqm at the end of the third quarter of 2015 and 44,614 sqm at the end of the second quarter of 2016, an increase of 69.6% Y-o-Y and 31.4% Q-o-Q. The increase was driven primarily by new commitments from large Internet, e-commerce and cloud customers across several of the Company’s data centers.

 

Data Center Resources

 

Area in service at the end of the third quarter of 2016 was 48,822 sqm, compared with 37,645 sqm at the end of the third quarter of 2015 and 48,548 sqm at the end of the second quarter of 2016, an increase of 29.7% Y-o-Y and 0.6% Q-o-Q.

 

Area under construction at the end of the third quarter of 2016 was 37,194 sqm, compared with 13,163 sqm at the end of the third quarter of 2015 and 31,794 sqm at the end of the second quarter of 2016. The increase of 5,400 sqm during the third quarter of 2016 was mainly due to Chengdu 1 data center (“CD1”) Phases 2&3 commencing construction process.

 

Commitment rate of area in service was 93.8% at the end of the third quarter of 2016, compared to 84.5% at the end of the third quarter of 2015 and 90.8% at the end of second quarter 2016. Pre-commitment rate of area under construction was 34.5% at the end of the third quarter of 2016, compared to 21.1% at the end of the third quarter of 2015 and 1.7% at the end of the second quarter 2016.

 

Area utilized at the end of the third quarter of 2016 was 34,369 sqm, compared with 21,083 sqm at the end of the third quarter of 2015 and 32,152 sqm at the end of the second quarter of 2016, an increase of 63.0% Y-o-Y and 6.9% Q-o-Q.

 

Utilization rate of area in service was 70.4% at the end of the third quarter of 2016, compared to 56.0% at the end of the third quarter of 2015 and 66.2% at the end of the second quarter 2016.

 



 

Balance Sheet

 

As of September 30, 2016, cash was RMB798.7 million (US$119.8 million). Total short-term debt was RMB657.7 million (US$98.6 million), comprised of short-term borrowings and the current portion of long-term borrowings of RMB574.5 million (US$86.1 million) and the current portion of capital lease obligations of RMB83.2 million (US$12.5 million). Total long-term debt was RMB3,274.0 million (US$491.0 million), comprised of long-term borrowings (excluding current portion) of RMB1,407.7 million (US$211.1 million), convertible bonds of RMB1,001.7 million (US$150.2 million) and the non-current portion of capital lease obligations of RMB864.6 million (US$129.7 million).

 

Conference Call

 

Management will hold a conference call at 8:00 a.m. Eastern Time on Monday, December 5, 2016 (9:00 p.m. Beijing Time on December 5, 2016) 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

China:

400-620-8038

Conference ID:

23825635

 

A telephone replay will be available approximately two hours after the call until December 12, 2016 by dialing:

 

United States:

1-646-254-3697

International:
Hong Kong:
China:

+61-2-8199-0299
+852-3051-2780
400-632-2162

Replay Access Code:

23825635

 

A live and archived webcast of the conference call will be available on the Company’s investor relation website at investors.gds-services.com.

 



 

Non-GAAP Disclosure

 

Our management and board of directors use adjusted EBITDA and adjusted EBITDA margin, which are non-GAAP financial measures, to evaluate our operating performance, establish budgets and develop operational goals for managing our business. In particular, we believe that the exclusion of the expenses eliminated in calculating adjusted EBITDA can provide a useful measure of our 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 net income (loss), cash flows provided by operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP.

 

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 RMB6.6685 to US$1.00, the noon buying rate in effect on September 30, 2016 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. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

 



 

Statement Regarding Unaudited Condensed Financial Information

 

The unaudited financial information set forth above 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 condensed financial information.

 

About GDS Holdings Limited

 

GDS Holdings Limited (Nasdaq: GDS) 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 customers to connect to all major PRC telecommunications carriers, and to access a number of the largest PRC cloud service providers, whom GDS hosts in its facilities. The Company offers colocation and managed services, including a unique and innovative managed cloud value proposition. The Company has a 15-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 base of customers consists predominantly of large Internet companies, financial institutions, telecommunications and IT service providers, and large domestic private sector and multinational corporations.

 

Safe Harbor

 

This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. Such statements are based upon management’s current expectations and current market and operating conditions, and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company’s control, which may cause the Company’s actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company’s filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

 



 

For investor and media inquiries, please contact:

 

GDS Holdings Limited

Laura Chen

Phone: +86 (21) 5119 6989

Email: ir@gds-services.com

 

The Piacente Group, Inc.

Ross Warner

Phone: +86 (10) 6535-0147

Email: GDS@tpg-ir.com

 

Alan Wang

Phone: +1 (212) 481-2050 ext. 401

Email: GDS@tpg-ir.com

 



 

GDS HOLDINGS LIMITED

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

 

 

As of
December 31, 2015

 

As of
September 30, 2016

 

 

 

RMB

 

RMB

 

US$

 

 

 

 

 

(Unaudited)

 

(Unaudited)

 

Assets

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Cash

 

924,498

 

798,732

 

119,777

 

Accounts receivable, net of allowance for doubtful accounts

 

111,013

 

190,033

 

28,497

 

Value-added-tax (“VAT”) recoverable

 

59,680

 

128,355

 

19,248

 

Prepaid expenses and other current assets

 

91,508

 

139,059

 

20,853

 

Total current assets

 

1,186,699

 

1,256,179

 

188,375

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

2,512,687

 

3,949,420

 

592,250

 

Goodwill and intangible assets, net

 

1,341,599

 

1,437,891

 

215,625

 

Other non-current assets

 

87,287

 

118,068

 

17,705

 

Total assets

 

5,128,272

 

6,761,558

 

1,013,955

 

Liabilities, Redeemable Preferred Shares and Shareholders’ Deficit

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

Short-term borrowings and current portion of long-term borrowings

 

428,218

 

574,459

 

86,145

 

Accounts payable

 

215,658

 

473,156

 

70,954

 

Accrued expenses and other payables

 

232,428

 

237,776

 

35,657

 

Obligations under capital leases, current

 

48,745

 

83,198

 

12,476

 

Total current liabilities

 

925,049

 

1,368,589

 

205,232

 

 

 

 

 

 

 

 

 

Long-term borrowings, excluding current portion

 

958,264

 

1,407,700

 

211,097

 

Convertible bonds payable

 

648,515

 

1,001,670

 

150,209

 

Obligations under capital leases, non-current

 

424,939

 

864,609

 

129,656

 

Other long-term liabilities

 

116,696

 

226,180

 

33,920

 

Total liabilities

 

3,073,463

 

4,868,748

 

730,114

 

Redeemable preferred shares

 

2,395,314

 

2,534,943

 

380,137

 

 

 

 

 

 

 

 

 

Shareholders’ deficit

 

 

 

 

 

 

 

Ordinary shares

 

76

 

76

 

11

 

Additional paid-in capital

 

303,621

 

273,499

 

41,014

 

Accumulated other comprehensive loss

 

(61,949

)

(126,683

)

(18,997

)

Accumulated deficit

 

(582,253

)

(789,025

)

(118,324

)

Total shareholders’ deficit

 

(340,505

)

(642,133

)

(96,296

)

Commitments and contingencies

 

 

 

 

Total liabilities, redeemable preferred shares and shareholders’ deficit

 

5,128,272

 

6,761,558

 

1,013,955

 

 



 

GDS HOLDINGS LIMITED

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,
2015

 

June 30,
2016

 

September 30, 2016

 

September 30,
2015

 

September 30, 2016

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

Net revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service revenue

 

168,441

 

234,010

 

266,890

 

40,022

 

460,218

 

703,284

 

105,464

 

Equipment sales

 

21,309

 

2,026

 

30,266

 

4,539

 

34,326

 

41,007

 

6,149

 

Total net revenue

 

189,750

 

236,036

 

297,156

 

44,561

 

494,544

 

744,291

 

111,613

 

Cost of revenue

 

(138,911

)

(175,138

)

(222,514

)

(33,368

)

(360,430

)

(554,548

)

(83,159

)

Gross profit

 

50,839

 

60,898

 

74,642

 

11,193

 

134,114

 

189,743

 

28,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

(15,550

)

(20,829

)

(17,109

)

(2,566

)

(39,044

)

(51,672

)

(7,749

)

General and administrative expenses

 

(37,301

)

(102,963

)

(43,323

)

(6,497

)

(96,138

)

(174,775

)

(26,209

)

Research and development expenses

 

(801

)

(2,778

)

(2,156

)

(323

)

(2,058

)

(6,921

)

(1,038

)

(Loss) income from operations

 

(2,813

)

(65,672

)

12,054

 

1,807

 

(3,126

)

(43,625

)

(6,542

)

Other income(expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest expenses

 

(29,620

)

(57,329

)

(69,404

)

(10,408

)

(90,060

)

(179,696

)

(26,947

)

Foreign currency exchange gain, net

 

5,258

 

5,492

 

2,645

 

398

 

9,714

 

6,746

 

1,012

 

Others, net

 

1,169

 

547

 

503

 

75

 

3,561

 

1,712

 

257

 

Loss before income taxes

 

(26,006

)

(116,962

)

(54,202

)

(8,128

)

(79,911

)

(214,863

)

(32,220

)

Income tax benefit

 

2,861

 

1,543

 

1,626

 

244

 

9,502

 

8,090

 

1,213

 

Net loss

 

(23,145

)

(115,419

)

(52,576

)

(7,884

)

(70,409

)

(206,773

)

(31,007

)

Change in redemption value of redeemable preferred shares

 

(27,731

)

(27,594

)

(29,441

)

(4,415

)

(83,194

)

(87,310

)

(13,093

)

Dividends on cumulative preferred shares

 

(1,782

)

(1,863

)

(1,863

)

(279

)

(5,346

)

(5,588

)

(838

)

Net loss available to ordinary shareholders

 

(52,658

)

(144,876

)

(83,880

)

(12,578

)

(158,949

)

(299,671

)

(44,938

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

(0.24

)

(0.66

)

(0.38

)

(0.06

)

(0.73

)

(1.37

)

(0.21

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of ordinary share outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

217,987,922

 

217,987,922

 

217,987,922

 

217,987,922

 

217,987,922

 

217,987,922

 

217,987,922

 

 



 

GDS HOLDINGS LIMITED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 
30,
2015

 

June 30,
2016

 

September 30, 2016

 

September 
30,
2015

 

September 30, 2016

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

(23,145

)

(115,419

)

(52,576

)

(7,884

)

(70,409

)

(206,773

)

(31,007

)

Foreign currency translation adjustments, net of nil tax

 

(78,218

)

(66,969

)

(14,158

)

(2,123

)

(75,382

)

(64,734

)

(9,707

)

Comprehensive loss

 

(101,363

)

(182,388

)

(66,734

)

(10,007

)

(145,791

)

(271,507

)

(40,714

)

 



 

GDS HOLDINGS LIMITED

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”))

 

 

 

Three months ended

 

Nine months ended

 

 

 

September 30,
2015

 

June 30,
2016

 

September 30, 2016

 

September 30,
2015

 

September 30, 2016

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

(23,145

)

(115,419

)

(52,576

)

(7,884

)

(70,409

)

(206,773

)

(31,007

)

Net interest expenses

 

29,620

 

57,329

 

69,404

 

10,408

 

90,060

 

179,696

 

26,947

 

Income tax benefit

 

(2,861

)

(1,543

)

(1,626

)

(244

)

(9,502

)

(8,090

)

(1,213

)

Depreciation and amortization

 

38,806

 

49,518

 

62,617

 

9,390

 

102,774

 

156,086

 

23,406

 

Accretion expenses for asset retirement costs

 

77

 

135

 

165

 

25

 

163

 

435

 

65

 

Share-based compensation expenses

 

187

 

57,187

 

 

 

3,353

 

57,187

 

8,576

 

Adjusted EBITDA

 

42,684

 

47,207

 

77,984

 

11,695

 

116,439

 

178,541

 

26,774

 

Adjusted EBITDA margin

 

22.5

%

20.0

%

26.2

%

26.2

%

23.5

%

24.0

%

24.0

%

 



 

GDS HOLDINGS LIMITED

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amount in thousands of Renminbi (“RMB”) and US dollars (“US$”)

 

 

 

Three months ended

 

Nine months ended

 

 

 

September

 

June 30,

 

 

 

 

 

September

 

 

 

 

 

 

 

30, 2015

 

2016

 

September 30, 2016

 

30, 2015

 

September 30, 2016

 

 

 

RMB

 

RMB

 

RMB

 

US$

 

RMB

 

RMB

 

US$

 

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

(23,145

)

(115,419

)

(52,576

)

(7,884

)

(70,409

)

(206,773

)

(31,007

)

Amortization of debt issuance cost and debt discount

 

 

 

 

 

 

422

 

63

 

Depreciation and amortization

 

38,806

 

49,518

 

62,617

 

9,390

 

102,774

 

156,086

 

23,406

 

Share-based compensation expense

 

187

 

57,187

 

 

 

3,353

 

57,187

 

8,576

 

Deferred tax benefit

 

(993

)

(805

)

(1,854

)

(278

)

(10,889

)

(11,431

)

(1,714

)

Changes in operating assets and liabilities, net of effect of an acquisition

 

(49,885

)

15,392

 

(108,688

)

(16,300

)

(73,458

)

(118,061

)

(17,705

)

Net cash (used in) provided by operating activities

 

(35,030

)

5,873

 

(100,501

)

(15,072

)

(48,629

)

(122,570

)

(18,381

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments for purchase of property and equipment

 

(299,311

)

(144,247

)

(386,874

)

(58,015

)

(573,736

)

(704,429

)

(105,635

)

Payments related to acquisitions

 

 

(119,363

)

 

 

 

(159,363

)

(23,897

)

Net cash used in investing activities

 

(299,311

)

(263,610

)

(386,874

)

(58,015

)

(573,736

)

(863,792

)

(129,532

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net proceeds from financing activities

 

364,841

 

137,081

 

451,976

 

67,777

 

346,541

 

847,322

 

127,063

 

Net cash provided by financing activities

 

364,841

 

137,081

 

451,976

 

67,777

 

346,541

 

847,322

 

127,063

 

Effect of exchange rate changes on cash

 

1,313

 

15,650

 

(346

)

(50

)

2,770

 

13,274

 

1,990

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) of cash

 

31,813

 

(105,006

)

(35,745

)

(5,360

)

(273,054

)

(125,766

)

(18,860

)

Cash at beginning of period

 

301,891

 

939,483

 

834,477

 

125,137

 

606,758

 

924,498

 

138,637

 

Cash at end of period

 

333,704

 

834,477

 

798,732

 

119,777

 

333,704

 

798,732

 

119,777