GDS Reports Second Quarter 2019 Results
Second Quarter 2019 Financial Highlights
- Net revenue increased by 54.5% year-over-year (“Y-o-Y”) to
RMB985.2 million (US$143.5 million ) in the second quarter of 2019 (2Q2018:RMB637.5 million ). - Service revenue increased by 57.3% Y-o-Y to
RMB985.1 million (US$143.5 million ) in the second quarter of 2019 (2Q2018:RMB626.3 million ). - Net loss was
RMB93.2 million (US$13.6 million ) in the second quarter of 2019, compared with a net loss ofRMB102.1 million in the second quarter of 2018. - Adjusted EBITDA (non-GAAP) increased by 84.5% Y-o-Y to
RMB428.4 million (US$62.4 million ) in the second quarter of 2019 (2Q2018:RMB232.3 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 43.5% in the second quarter of 2019 (2Q2018: 36.4%).
Operating Highlights
- Total area committed increased by 54.3% Y-o-Y to 220,818 square meters (“sqm”) as of
June 30, 2019 (June 30, 2018 : 143,065 sqm). - Area utilized (or revenue generating space) increased by 46.7% Y-o-Y to 127,107 sqm as of
June 30, 2019 (June 30, 2018 : 86,665 sqm). - Area in service increased by 41.0% Y-o-Y to 180,441 sqm as of
June 30, 2019 (June 30, 2018 : 127,984 sqm). - Commitment rate for area in service was 93.7% as of
June 30, 2019 (June 30, 2018 : 95.6%), and utilization rate was 70.4% as ofJune 30, 2019 (June 30, 2018 : 67.7%). - Area under construction was 78,373 sqm as of
June 30, 2019 (June 30, 2018 : 41,023 sqm). - Pre-commitment rate for area under construction was 66.1% as of
June 30, 2019 (June 30, 2018 : 50.6%).
“We had another solid second quarter fueled by broad-based gains,” said Mr.
“We are pleased to report 54.5% year-over-year revenue growth for the second quarter,” said Mr.
Second quarter 2019 Financial Results
Net revenue in the second quarter of 2019 was
Cost of revenue in the second quarter of 2019 was
Gross profit was
Adjusted Net Operating Income (“Adjusted NOI”) (non-GAAP) is defined as net loss (computed in accordance with GAAP), excluding net interest expenses, income tax expenses (benefits), depreciation and amortization, accretion expenses for asset retirement costs, share-based compensation expenses, selling and marketing expenses, general and administrative expenses, research and development expenses, foreign currency exchange loss (gain) and others. Adjusted NOI was
Adjusted NOI margin (non-GAAP) was 53.0% in the second quarter of 2019, compared with 45.6% in the second quarter of 2018, and 51.3% in the first quarter of 2019. The increase over the previous quarter was mainly due to the leverage effect realized on fixed-cost components of cost of revenue.
Selling and marketing expenses, excluding share-based compensation expenses of
General and administrative expenses, excluding share-based compensation expenses of
Research and development costs were
Net interest expenses for the second quarter of 2019 were
Foreign currency exchange loss for the second quarter of 2019 was
Net loss in the second quarter of 2019 was
Adjusted EBITDA (non-GAAP) is defined as net loss excluding net interest expenses, income tax expenses (benefits), depreciation and amortization, accretion expenses for asset retirement costs and share-based compensation expenses. Adjusted EBITDA was
Adjusted EBITDA margin (non-GAAP) was 43.5% in the second quarter of 2019, compared with 36.4% in the second quarter of 2018, and 43.0% in the first quarter of 2019. The increase over the previous quarter was mainly due to the leverage effect realized on fixed-cost components of cost of revenue, partially offset by the negative impact from foreign currency exchange loss.
Basic and diluted loss per ordinary share in the second quarter of 2019 was
Basic and diluted loss per American Depositary Share (“ADS”) in the second quarter of 2019 was
Sales
Total area committed at the end of the second quarter of 2019 was 220,818 sqm, compared with 143,065 sqm at the end of the second quarter of 2018 and 199,831 sqm at the end of the first quarter of 2019, an increase of 54.3% Y-o-Y and 10.5% quarter-over-quarter (“Q-o-Q”). In the second quarter of 2019, net additional total area committed was 20,987 sqm, including significant contributions from the SH6,
Data Center Resources
Area in service at the end of the second quarter of 2019 was 180,441 sqm, compared with 127,984 sqm at the end of the second quarter of 2018 and 171,515 sqm at the end of the first quarter of 2019, an increase of 41.0% Y-o-Y and 5.2% Q-o-Q. In the second quarter of 2019, SH10 (3,745 sqm) and BJ4 (4,695 sqm) data centers came into service.
Area under construction at the end of the second quarter of 2019 was 78,373 sqm, compared with 41,023 sqm at the end of the second quarter of 2018 and 65,736 sqm at the end of the first quarter of 2019, an increase of 91.0% Y-o-Y and 19.2% Q-o-Q. In the second quarter of 2019, construction commenced on BJ8, LF1 and Langfang 2 (“LF2”) data centers. As previously disclosed, BJ8 is located next to the existing
Commitment rate of area in service was 93.7% at the end of the second quarter of 2019, compared with 95.6% at the end of the second quarter of 2018 and 96.1% at the end of first quarter of 2019. Pre-commitment rate of area under construction was 66.1% at the end of the second quarter of 2019, compared with 50.6% at the end of the second quarter of 2018 and 53.4% at the end of the first quarter of 2019.
Area utilized at the end of the second quarter of 2019 was 127,107 sqm, compared with 86,665 sqm at the end of the second quarter of 2018 and 118,050 sqm at the end of the first quarter of 2019, an increase of 46.7% Y-o-Y and 7.7% Q-o-Q. Net additional area utilized was 9,057 sqm in the second quarter, which mainly came from the additional area utilized in SH4, SH6, SH9 and SZ4 Phase 1 data centers.
Utilization rate of area in service was 70.4% at the end of the second quarter of 2019, compared with 67.7% at the end of the second quarter of 2018 and 68.8% at the end of the first quarter of 2019.
Liquidity
As of
Recent Developments
The Company announced today that it has signed a strategic cooperation framework agreement (the “Agreement”) with GIC,
Under the terms of the Agreement with GIC, GDS will enter into contractual commitments with the Customer for BTS data centers. GDS will set up individual project companies to undertake the development of each data center and own 100% during the construction phase. Upon completion of each data center, GDS will sell a 90% equity interest in the project company to GIC at development plus financing cost, subject to certain conditions. GDS will continue to hold the remaining 10% equity interest of the project company and provide management and operating services to the joint venture. GDS will earn a return over the life of the project from its equity investment plus recurring service fees. The first project covered by the Agreement, a data center under construction by GDS at the Customer’s campus in
GDS is strategically positioned to fulfil the requirements of the most demanding customers for outsourced data center capacity in Tier 1 markets, where there is a high barrier to entry and supply is scarce. However, GDS recognizes that its large internet and cloud service provider customers also require substantial capacity at locations outside of Tier 1 markets to host their less latency-sensitive data and applications. In the past, customers typically developed such capacity in-house, but are now actively seeking ways to outsource this part of their requirement as well. By partnering with GIC, GDS will be uniquely positioned to offer customers a solution for outsourcing their hyperscale data centers outside of Tier 1 markets, with deep capital-backing, and assured operational excellence. The partnership will enable GDS to broaden its addressable market, strengthen key customer relationships, and generate a new stream of recurring fee income, while maintaining strategic focus and equity returns.
For additional details, please see the press release of “GDS and GIC Form Unique Strategic Partnership to Develop and Operate Hyperscale Build-to-Suit Data Centers in China” issued on
The Company recently entered into an agreement for the acquisition of a data center,
Updated Business Outlook
For the full year of 2019, the Company now expects its total revenues to be in the range of
This forecast reflects the Company’s current and preliminary view on the current business situation and market conditions, which are subject to change.
Conference Call
Management will hold a conference call at
United States: | 1-845-675-0437 |
International: | +65-6713-5090 |
Hong Kong: | +852-3018-6771 |
China: | 400-620-8038 |
Conference ID: | 7993415 |
A telephone replay will be available approximately two hours after the call until
United States: | 1-646-254-3697 |
International: Hong Kong: China: |
+61-2-8199-0299 +852-3051-2780 400-632-2162 |
Replay Access Code: | 7993415 |
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 NOI, adjusted NOI margin, 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 NOI and 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 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 NOI, and adjusted NOI margin are not substitutes for 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, accretion expenses for asset retirement costs, and share-based compensation expenses, 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
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
Safe Harbor
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.
For investor and media inquiries, please contact:
Phone: +86 (21) 2033-0295
Email: ir@gds-services.com
Phone: +86 (10) 6508-0677
Email: GDS@tpg-ir.com
Phone: +1 (212) 481-2050
Email: GDS@tpg-ir.com
GDS HOLDINGS LIMITED | |||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) | |||||||
As of December 31, 2018 |
As of June 30, 2019 | ||||||
RMB | RMB | US$ | |||||
Assets | |||||||
Current assets | |||||||
Cash | 2,161,622 | 5,730,578 | 834,753 | ||||
Accounts receivable, net of allowance for doubtful accounts | 536,842 | 855,203 | 124,574 | ||||
Value-added-tax (“VAT”) recoverable | 163,476 | 235,423 | 34,293 | ||||
Prepaid expenses and other current assets | 175,456 | 230,345 | 33,554 | ||||
Total current assets | 3,037,396 | 7,051,549 | 1,027,174 | ||||
Property and equipment, net | 13,994,945 | 15,535,295 | 2,262,971 | ||||
Operating lease right-of-use assets | 0 | 483,531 | 70,434 | ||||
Goodwill and intangible assets, net | 2,234,462 | 2,160,947 | 314,777 | ||||
Other non-current assets | 1,618,440 | 1,733,199 | 252,469 | ||||
Total assets | 20,885,243 | 26,964,521 | 3,927,825 | ||||
Liabilities, Redeemable Preferred Shares and Shareholders’ Equity | |||||||
Current liabilities | |||||||
Short-term borrowings and current portion of long-term borrowings | 1,283,320 | 900,354 | 131,151 | ||||
Accounts payable | 1,508,020 | 1,769,997 | 257,829 | ||||
Accrued expenses and other payables | 549,641 | 648,933 | 94,528 | ||||
Operating lease liabilities, current | 0 | 65,352 | 9,520 | ||||
Finance lease and other financing obligations, current | 166,898 | 116,577 | 16,981 | ||||
Total current liabilities | 3,507,879 | 3,501,213 | 510,009 | ||||
Long-term borrowings, excluding current portion | 5,203,708 | 6,711,013 | 977,569 | ||||
Convertible bonds payable | 2,004,714 | 2,013,914 | 293,360 | ||||
Operating lease liabilities, non-current | 0 | 392,345 | 57,151 | ||||
Finance lease and other financing obligations, non-current | 4,134,327 | 4,381,340 | 638,214 | ||||
Other long-term liabilities | 512,690 | 512,088 | 74,594 | ||||
Total liabilities | 15,363,318 | 17,511,913 | 2,550,897 | ||||
Redeemable preferred shares | 0 | 1,033,353 | 150,525 | ||||
Shareholders' equity | |||||||
Ordinary shares | 341 | 394 | 57 | ||||
Additional paid-in capital | 7,275,945 | 10,336,129 | 1,505,627 | ||||
Accumulated other comprehensive loss | (139,254 | ) | (72,382 | ) | (10,543 | ) | |
Accumulated deficit | (1,615,107 | ) | (1,844,886 | ) | (268,738 | ) | |
Total shareholders’ equity | 5,521,925 | 8,419,255 | 1,226,403 | ||||
Commitments and contingencies | |||||||
Total liabilities, redeemable preferred shares and shareholders' equity | 20,885,243 | 26,964,521 | 3,927,825 | ||||
Note: Effective
GDS HOLDINGS LIMITED | |||||||||||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") | |||||||||||||||||||||||||||||||||||
except for number of shares and per share data) | |||||||||||||||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||
June 30, 2018 | March 31, 2019 | June 30, 2019 | June 30, 2018 | June 30, 2019 | |||||||||||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||||||||||||||||||
Net revenue | |||||||||||||||||||||||||||||||||||
Service revenue | 626,347 | 890,946 | 985,094 | 143,495 | 1,177,820 | 1,876,040 | 273,276 | ||||||||||||||||||||||||||||
Equipment sales | 11,163 | 895 | 95 | 14 | 21,915 | 990 | 144 | ||||||||||||||||||||||||||||
Total net revenue | 637,510 | 891,841 | 985,189 | 143,509 | 1,199,735 | 1,877,030 | 273,420 | ||||||||||||||||||||||||||||
Cost of revenue | (499,989 | ) | (679,832 | ) | (723,420 | ) | (105,378 | ) | (939,297 | ) | (1,403,252 | ) | (204,407 | ) | |||||||||||||||||||||
Gross profit | 137,521 | 212,009 | 261,769 | 38,131 | 260,438 | 473,778 | 69,013 | ||||||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||||
Selling and marketing expenses | (22,132 | ) | (27,832 | ) | (29,805 | ) | (4,342 | ) | (48,981 | ) | (57,637 | ) | (8,396 | ) | |||||||||||||||||||||
General and administrative expenses | (86,737 | ) | (90,301 | ) | (94,702 | ) | (13,795 | ) | (149,673 | ) | (185,003 | ) | (26,949 | ) | |||||||||||||||||||||
Research and development expenses | (3,201 | ) | (4,639 | ) | (4,200 | ) | (612 | ) | (5,873 | ) | (8,839 | ) | (1,288 | ) | |||||||||||||||||||||
Income from operations | 25,451 | 89,237 | 133,062 | 19,382 | 55,911 | 222,299 | 32,380 | ||||||||||||||||||||||||||||
Other income (expenses): | |||||||||||||||||||||||||||||||||||
Net interest expenses | (137,274 | ) | (219,117 | ) | (221,906 | ) | (32,324 | ) | (252,328 | ) | (441,023 | ) | (64,242 | ) | |||||||||||||||||||||
Foreign currency exchange gain (loss), net | 9,778 | 4,772 | (7,530 | ) | (1,097 | ) | 6,559 | (2,758 | ) | (402 | ) | ||||||||||||||||||||||||
Others, net | 1,903 | 2,503 | 2,017 | 294 | 2,512 | 4,520 | 658 | ||||||||||||||||||||||||||||
Loss before income taxes | (100,142 | ) | (122,605 | ) | (94,357 | ) | (13,745 | ) | (187,346 | ) | (216,962 | ) | (31,606 | ) | |||||||||||||||||||||
Income tax (expenses) benefits | (1,935 | ) | (14,015 | ) | 1,198 | 175 | (657 | ) | (12,817 | ) | (1,867 | ) | |||||||||||||||||||||||
Net loss | (102,077 | ) | (136,620 | ) | (93,159 | ) | (13,570 | ) | (188,003 | ) | (229,779 | ) | (33,473 | ) | |||||||||||||||||||||
Change in redemption value of redeemable preferred shares | 0 | (17,760 | ) | 0 | 0 | 0 | (17,760 | ) | (2,587 | ) | |||||||||||||||||||||||||
Cumulative dividend on preferred shares | 0 | (559 | ) | (12,913 | ) | (1,881 | ) | 0 | (13,472 | ) | (1,962 | ) | |||||||||||||||||||||||
Net loss attributable to ordinary shareholders | (102,077 | ) | (154,939 | ) | (106,072 | ) | (15,451 | ) | (188,003 | ) | (261,011 | ) | (38,022 | ) | |||||||||||||||||||||
Loss per ordinary share | |||||||||||||||||||||||||||||||||||
Basic and diluted | (0.10 | ) | (0.15 | ) | (0.10 | ) | (0.01 | ) | (0.19 | ) | (0.24 | ) | (0.04 | ) | |||||||||||||||||||||
Weighted average number of ordinary share outstanding | |||||||||||||||||||||||||||||||||||
Basic and diluted | 992,452,334 | 1,025,055,553 | 1,115,624,250 | 1,115,624,250 | 981,162,414 | 1,070,590,091 | 1,070,590,091 |
GDS HOLDINGS LIMITED | ||||||||||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS | ||||||||||||||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") | ||||||||||||||||||||||||||
except for number of shares and per share data) | ||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
June 30, 2018 | March 31, 2019 | June 30, 2019 | June 30, 2018 | June 30, 2019 | ||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||
Net loss | (102,077 | ) | (136,620 | ) | (93,159 | ) | (13,570 | ) | (188,003 | ) | (229,779 | ) | (33,473 | ) | ||||||||||||
Foreign currency translation adjustments, net of nil tax | 71,907 | 19,353 | 47,519 | 6,922 | 31,501 | 66,872 | 9,741 | |||||||||||||||||||
Comprehensive loss | (30,170 | ) | (117,267 | ) | (45,640 | ) | (6,648 | ) | (156,502 | ) | (162,907 | ) | (23,732 | ) | ||||||||||||
GDS HOLDINGS LIMITED |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) |
Three months ended | Six months ended | ||||||||||||||
June 30, 2018 | March 31, 2019 | June 30, 2019 | June 30, 2018 | June 30, 2019 | |||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | |||||||||
Net loss | (102,077 | ) | (136,620 | ) | (93,159 | ) | (13,570 | ) | (188,003 | ) | (229,779 | ) | (33,473 | ) | |
Depreciation and amortization | 166,759 | 254,037 | 269,176 | 39,210 | 304,247 | 523,213 | 76,215 | ||||||||
Amortization of debt issuance cost and debt discount | 9,339 | 16,990 | 36,522 | 5,320 | 17,267 | 53,512 | 7,795 | ||||||||
Share-based compensation expense | 27,954 | 31,957 | 30,977 | 4,512 | 43,587 | 62,934 | 9,167 | ||||||||
Others | 1,318 | (5,160 | ) | (15,913 | ) | (2,318 | ) | (1,459 | ) | (21,073 | ) | (3,069 | ) | ||
Changes in operating assets and liabilities | (121,601 | ) | (221,010 | ) | (111,693 | ) | (16,271 | ) | (337,376 | ) | (332,703 | ) | (48,463 | ) | |
Net cash (used in) provided by operating activities | (18,308 | ) | (59,806 | ) | 115,910 | 16,883 | (161,737 | ) | 56,104 | 8,172 | |||||
Purchase of property and equipment | (867,965 | ) | (829,446 | ) | (517,034 | ) | (75,314 | ) | (1,630,937 | ) | (1,346,480 | ) | (196,137 | ) | |
Payments related to acquisitions and investments | (289,487 | ) | (5,000 | ) | (22,113 | ) | (3,221 | ) | (333,294 | ) | (27,113 | ) | (3,949 | ) | |
Net cash used in investing activities | (1,157,452 | ) | (834,446 | ) | (539,147 | ) | (78,535 | ) | (1,964,231 | ) | (1,373,593 | ) | (200,086 | ) | |
Net proceeds from financing activities | 2,499,137 | 4,789,711 | (20,334 | ) | (2,962 | ) | 4,612,140 | 4,769,377 | 694,739 | ||||||
Net cash provided by (used in) financing activities | 2,499,137 | 4,789,711 | (20,334 | ) | (2,962 | ) | 4,612,140 | 4,769,377 | 694,739 | ||||||
Effect of exchange rate changes on cash and restricted cash | 153,167 | (9,215 | ) | 122,535 | 17,851 | 95,531 | 113,320 | 16,507 | |||||||
Net increase (decrease) of cash and restricted cash | 1,476,544 | 3,886,244 | (321,036 | ) | (46,763 | ) | 2,581,703 | 3,565,208 | 519,332 | ||||||
Cash and restricted cash at beginning of period | 3,052,759 | 2,284,748 | 6,170,992 | 898,906 | 1,947,600 | 2,284,748 | 332,811 | ||||||||
Cash and restricted cash at end of period | 4,529,303 | 6,170,992 | 5,849,956 | 852,143 | 4,529,303 | 5,849,956 | 852,143 | ||||||||
GDS HOLDINGS LIMITED | ||||||||||||||||||||||||||
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||||||||||||||||||||||||
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") | ||||||||||||||||||||||||||
except for percentage data) | ||||||||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||||||
June 30, 2018 | March 31, 2019 | June 30, 2019 | June 30, 2018 | June 30, 2019 | ||||||||||||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||||||||||||
Net loss | (102,077 | ) | (136,620 | ) | (93,159 | ) | (13,570 | ) | (188,003 | ) | (229,779 | ) | (33,473 | ) | ||||||||||||
Net interest expenses | 137,274 | 219,117 | 221,906 | 32,324 | 252,328 | 441,023 | 64,242 | |||||||||||||||||||
Income tax expenses (benefits) | 1,935 | 14,015 | (1,198 | ) | (175 | ) | 657 | 12,817 | 1,867 | |||||||||||||||||
Depreciation and amortization | 166,759 | 254,037 | 269,176 | 39,210 | 304,247 | 523,213 | 76,215 | |||||||||||||||||||
Accretion expenses for asset retirement costs | 407 | 711 | 723 | 105 | 716 | 1,434 | 209 | |||||||||||||||||||
Share-based compensation expenses | 27,954 | 31,957 | 30,977 | 4,512 | 43,587 | 62,934 | 9,167 | |||||||||||||||||||
Selling and marketing expenses (1) | 17,835 | 20,330 | 22,610 | 3,294 | 39,654 | 42,940 | 6,255 | |||||||||||||||||||
General and administrative expenses (1) | 49,318 | 57,090 | 61,898 | 9,016 | 93,276 | 118,988 | 17,333 | |||||||||||||||||||
Research and development expenses (1) | 3,093 | 3,970 | 3,477 | 506 | 5,433 | 7,447 | 1,085 | |||||||||||||||||||
Foreign currency exchange loss (gain), net | (9,778 | ) | (4,772 | ) | 7,530 | 1,097 | (6,559 | ) | 2,758 | 402 | ||||||||||||||||
Others, net | (1,903 | ) | (2,503 | ) | (2,017 | ) | (294 | ) | (2,512 | ) | (4,520 | ) | (658 | ) | ||||||||||||
Adjusted NOI | 290,817 | 457,332 | 521,923 | 76,025 | 542,824 | 979,255 | 142,644 | |||||||||||||||||||
Adjusted NOI margin | 45.6% | 51.3% | 53.0% | 53.0% | 45.2% | 52.2% | 52.2% |
Note 1:
Selling and marketing expenses, general and administrative expenses and research and development expenses exclude depreciation, amortization and share-based compensation expenses.
GDS HOLDINGS LIMITED |
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS |
(Amount in thousands of Renminbi ("RMB") and US dollars ("US$") |
except for percentage data) |
Three months ended | Six months ended | |||||||||||||||
June 30, 2018 | March 31, 2019 | June 30, 2019 | June 30, 2018 | June 30, 2019 | ||||||||||||
RMB | RMB | RMB | US$ | RMB | RMB | US$ | ||||||||||
Net loss | (102,077 | ) | (136,620 | ) | (93,159 | ) | (13,570 | ) | (188,003 | ) | (229,779 | ) | (33,473 | ) | ||
Net interest expenses | 137,274 | 219,117 | 221,906 | 32,324 | 252,328 | 441,023 | 64,242 | |||||||||
Income tax expenses (benefits) | 1,935 | 14,015 | (1,198 | ) | (175 | ) | 657 | 12,817 | 1,867 | |||||||
Depreciation and amortization | 166,759 | 254,037 | 269,176 | 39,210 | 304,247 | 523,213 | 76,215 | |||||||||
Accretion expenses for asset retirement costs | 407 | 711 | 723 | 105 | 716 | 1,434 | 209 | |||||||||
Share-based compensation expenses | 27,954 | 31,957 | 30,977 | 4,512 | 43,587 | 62,934 | 9,167 | |||||||||
Adjusted EBITDA | 232,252 | 383,217 | 428,425 | 62,406 | 413,532 | 811,642 | 118,227 | |||||||||
Adjusted EBITDA margin | 36.4% | 43.0% | 43.5% | 43.5% | 34.5% | 43.2% | 43.2% |
Source: GDS Holdings Limited