Chaince Digital Holdings Inc (CD) 2023 Q2 法說會逐字稿

Good morning and good evening, ladies and gentlemen. Thank you for joining, and welcome to Chindata Group Holding Limited Second Quarter 2023 Earnings Conference Call.

各位女士、先生，早安/晚上好。感謝各位參加，歡迎參加金達集團控股有限公司2023年第二季業績電話會議。

We will be hosting a question-and-answer session after management's prepared remarks. Please note that today's event is being recorded. I'll now turn the call over to the first speaker today, Mr. Don Zhou from Investor Relations of Chindata Group. Please go ahead, Don.

在管理階層發言結束後，我們將進行問答環節。請注意，今天的活動正在錄音。現在我將把電話交給今天的第一位發言人，來自金數據集團投資者關係部的周東先生。請周先生發言。

Thank you, Amber. Hello, everyone, and welcome to Chindata Group's 2023 Second Quarter Earnings Conference Call. This is Don from Investor Relations team of the company. With us today are Mr. Nick Wang, our CFO; and Ms. Zoe Zhuang, our Senior Vice President, Finance.

謝謝Amber。大家好，歡迎參加秦達集團2023年第二季財報電話會議。我是公司投資人關係部的Don。今天出席會議的還有我們的財務長王先生和資深副總裁（財務）莊女士。

And during this call, Nick will take you through the quarterly review of our operation performance, and Zoe will present our financial results. Management team will be here to answer your questions afterwards.

在本次電話會議中，Nick 將帶領大家回顧我們季度的營運業績，Zoe 將報告我們的財務結果。會議結束後，管理團隊將解答大家的問題。

Now I will quickly go over the Safe Harbor. Some of the statements that we make today regarding our business, operations, and financial performance, may be considered forward-looking and such statements involve a number of risks and uncertainties that could cause actual results to differ materially. For more information, please refer to the risk factors discussed in our filings with the SEC.

現在我將簡要介紹「安全港」條款。我們今天就公司業務、營運和財務表現所做的一些陳述可能被視為前瞻性陳述，此類陳述涉及許多風險和不確定性，可能導致實際結果與預期有重大差異。更多信息，請參閱我們向美國證券交易委員會提交的文件中討論的風險因素。

During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in our earnings press release, which is distributed and available to the public through our Investor Relations website located at investor.chindatagroup.com. We have also updated our quarterly presentation on the company's Investor Relations website, which you can refer to as a supplementary material for today's call.

在本次電話會議中，我們將提供GAAP和非GAAP財務指標。非GAAP指標與GAAP指標的調節表已包含在我們的獲利新聞稿中，該新聞稿已發佈在我們的投資者關係網站（investor.chindatagroup.com）上，供公眾查閱。此外，我們還在公司投資者關係網站上更新了季度報告，您可以將其作為本次電話會議的補充資料。

Without further due, I will now turn over the call to Nick. Nick, please go ahead.

不再贅述，我現在將通話交給尼克。尼克，請開始吧。

Thank you, Don. Hello, everyone and thanks for joining the call. Concurrently with the ongoing progress of privatization of the company, management and the entire team continued to work diligently on our business, delivering another strong quarterly performance in the second quarter of this year. As a quick summary for our quarterly performance, we adhered to our demanding schedule and delivery was on time. Demand from our existing clients remained satisfying, with demand in Southeast Asia market being a key driver during the second quarter. Ramp up was usual as always, with overall and single project level utilization ratio in good shape. And we continued to build our partnership, and invested in research and development to prepare ourselves for the further AIGC era, and patiently waiting for any signals of recovery of the market.

謝謝唐。大家好，感謝各位參加本次電話會議。在公司私有化進程持續推進的同時，管理層和全體團隊成員繼續兢兢業業地開展業務，在今年第二季度再次取得了強勁的業績。簡而言之，我們嚴格遵守既定計劃，並按時交付了所有項目。現有客戶的需求仍然令人滿意，其中東南亞市場的需求是第二季業績成長的關鍵驅動力。產能提升一如既往地順利，整體及單一專案的產能利用率均保持良好狀態。我們繼續深化合作關係，並加大研發投入，為未來的AIGC時代做好準備，同時耐心等待市場復甦的任何跡象。

To start with some key highlights for the second quarter.

首先，讓我們回顧一下第二季度的一些關鍵亮點。

On Slide 4, two new projects were put under construction in the second quarter, total capacity increased by 47 megawatts to 945 megawatts, and total number of data centers was 35. Two hyperscale data centers were put into service in our Datong campuses in Shanxi and Johor campuses in Malaysia, bringing our total in-service capacity to 730 megawatts, an increase of 91 megawatts during the quarter.

投影片 4 顯示，第二季有兩個新專案開工建設，總容量增加了 47 兆瓦，達到 945 兆瓦，資料中心總數達到 35 個。我們在山西大同園區和馬來西亞柔佛園區的兩個超大規模資料中心投入使用，使我們的總運作容量達到 730 兆瓦，比本季增加了 91 兆瓦。

Total client demand increased by 34 megawatts in the second quarter, bringing our total contracted and IOI capacity to 850 megawatts with total client commitment rate remaining at a healthy level of 90%. Ramp up was strong as we added 48 megawatts of utilized capacity in the quarter, bringing our total utilized capacity to 585 megawatts, with a solid utilization rate of 80%.

第二季客戶總需求增加34兆瓦，使我們的總簽約和意向容量達到850兆瓦，客戶承諾率維持在90%的健康水準。產能爬坡強勁，本季新增利用容量48兆瓦，使我們的總利用容量達到585兆瓦，利用率穩定在80%。

Financials remain under healthy momentum and in high quality. Revenue in the second quarter was RMB 1,553.8 million, representing 49.7% year-over-year growth. Adjusted EBITDA grew by 49.9% year over year to RMB 816. 1 million with adjusted EBITDA margin remained well above 50%, at 52.5% in the second quarter.

財務狀況保持良好成長勢頭，品質穩定。第二季營收為人民幣15.538億元，年增49.7%。調整後EBITDA年增49.9%至人民幣8.161億元，調整後EBITDA利潤率維持在50%以上，第二季達52.5%。

Net income grew by 9.8% year over year to RMB 219.2 million with a net margin of 14.1%. With the current business momentum, we reiterated our full year guidance range with revenue in the range of RMB 5.88 billion to RMB 6.08 billion and adjusted EBITDA in the range of RMB 3.1 billion to RMB 3.22 billion.

淨利潤年增9.8%至人民幣2.192億元，淨利率為14.1%。鑑於目前的業務發展勢頭，我們重申了全年業績預期，預計營收為人民幣58.8億元至人民幣60.8億元，調整後EBITDA為人民幣31億元至人民幣32.2億元。

Now let's go into details and first take a closer look at project delivery and construction on Slide 7 to 9. We continued to work on the highly demanding schedules to ensure timely delivery, especially for our Malaysia business. In the second quarter, we put two projects into service with a total capacity of 91 megawatts. CN20, a 49-megawatt hyperscale project in our Datong campus, Shanxi province was delivered as originally scheduled. The project supports the anchor clients and is currently 100% committed by the client.

現在讓我們深入了解細節，首先仔細看看第7至9頁幻燈片中的項目交付和建設情況。我們繼續努力，在高度緊迫的進度安排下確保按時交付，尤其是在馬來西亞業務方面。第二季度，我們投入營運了兩個項目，總裝置容量為91兆瓦。位於山西省大同園區的CN20項目是一個49兆瓦的超大規模項目，已按原計劃交付。此專案為主要客戶提供支持，目前客戶已100%承諾使用。

MY06 Phase 2 in Johor, Malaysia was also delivered as scheduled. The 42-megawatt project supports the anchor client as well and was already running at 76% utilization ratio in the first quarter since operation. Two new under construction projects were added. Our flagship MY06 project saw further capacity expansion in the second quarter with the inclusion of MY06 Phase 4, a 12-megawatt new hyperscale project. It is scheduled for delivery starting from the first quarter of 2024 and was 100% committed.

位於馬來西亞柔佛州的MY06二期專案也按計畫交付。這個42兆瓦的專案同樣為主要客戶提供支持，自投產以來，第一季利用率已達76%。此外，還有兩個新的在建項目。我們的旗艦項目MY06在第二季進一步擴容，新增了MY06四期項目，這是一個12兆瓦的超大規模新建項目。該專案計劃於2024年第一季開始交付，目前已100%交付。

CN23, the other new under construction project, is located in one of our Zhangjiakou campuses in Hebei. The 26-megawatt hyperscale project is intended for one of our key international clients, and is scheduled for delivery starting from the first quarter of 2025. The project is currently 49% contracted.

CN23是另一個正在建造的新項目，位於我們在河北張家口的一個園區內。這個26兆瓦的超大規模資料中心專案是為我們的一位重要國際客戶開發的，計劃於2025年第一季開始交付。該項目目前已完成49%的合約簽訂。

Furthermore, thanks to the healthy momentum of our clients in Southeast Asia market. Our existing MY06 Phase 3 project was further expanded by 10 megawatts in the second quarter, now reaching 53 megawatts. The project is currently 100% committed. With the above changes during the quarter, as you can see on Slide 9, we have brought our total capacity up by 47 megawatts, reaching 945 megawatts by the end of the second quarter, with 730 megawatts in service and 214 megawatts under construction. Of the under-construction capacity by quarter end, we currently expect another 50 megawatts to be delivered in 2023 and our teams in China and overseas are working diligently to ensure our supply readiness.

此外，由於我們在東南亞市場的良好發展勢頭，我們現有的MY06三期專案在第二季度進一步擴建了10兆瓦，總裝置容量達到53兆瓦。該項目目前已100%交付。如幻燈片9所示，透過上述季度調整，我們的總裝置容量增加了47兆瓦，截至第二季末達到945兆瓦，其中730兆瓦已投入運營，214兆瓦正在建造。在建案中，我們預計2023年將新增50兆瓦，我們位於中國和海外的團隊正在全力以赴，確保供應充足。

Now regarding demand on Slide 10. We continued to receive additional demand on existing and new projects, with overseas business contributed meaningfully. We received a total amount of 34 megawatts new demand in the second quarter. Among which 22 megawatts of additional demand were received from our anchor client following the expansion of the MY06 project, and another 12 megawatts new demand received from one of the key international clients on the new under construction project in Zhangjiakou.

現在來說說幻燈片10中的需求情況。我們持續收到現有專案和新專案的新增需求，其中海外業務貢獻顯著。第二季我們共新增34兆瓦的需求。其中，22兆瓦的新增需求來自我們的核心客戶，原因是MY06專案擴建；另外12兆瓦的新增需求來自一位重要的國際客戶，涉及張家口在建新專案。

Meanwhile, contracted capacity increased by 60 megawatts in the quarter, including 16 megawatts of IOI conversion from CE02, CN12 and CN23 supporting one of the key international clients and 45 megawatts IOI conversion and newly contracted capacity on project MY06 Phase 3 for the anchor client.

同時，本季合約容量增加了 60 兆瓦，其中包括為一家重要的國際客戶提供的 CE02、CN12 和 CN23 專案的 16 兆瓦 IOI 轉換，以及為主要客戶在 MY06 第三期專案上新增的 45 兆瓦 IOI 轉換和合約容量。

In general, we are optimistic about the opportunities in the Southeast Asia market. The additional demand that we received during the quarter further strengthened our view and the company has been devoting dedicated internal resources to ensuring timely project delivery while securing necessary resource for future development in advance.

整體而言，我們對東南亞市場的機會持樂觀態度。本季新增的需求進一步增強了我們的看法，公司已投入專門的內部資源，確保專案按時交付，並提前儲備未來發展所需的資源。

Regarding the market in China, we are patiently watching the evolvement of the market condition, waiting for further signals of recovery to emerge, while we continued to build our partner ecosystem to lay the foundation for future opportunities. We believe our healthy business and financial profile, as well as our continued effort in research and development, would be the key fundamentals for the company to win more opportunities as the market gradually recover and to compete in the AIGC era.

關於中國市場，我們正密切關注市場情勢的發展，等待進一步的復甦訊號出現，同時持續建構合作夥伴生態系統，為未來的發展機會奠定基礎。我們相信，公司穩健的業務和財務狀況，以及在研發領域的持續投入，將是公司在市場逐步復甦之際贏得更多機會、在人工智慧驅動型成長（AIGC）時代保持競爭力的關鍵所在。

With the dynamics of demand in the quarter, the commitment status of our asset portfolio continues to look healthy.

鑑於本季的需求動態，我們資產組合的承諾狀況依然良好。

On Slide 12, for our existing 730 megawatts of in-service capacity, 95% was committed by clients in either contract or IOI by the end of the second quarter, the same proportion as in the previous quarter and in the same quarter of last year. For our total capacity, on Slide 13, the commitment ratio was 90% at the end of the second quarter, compared with 91% in the previous quarter and 84% in the same quarter last year. The visibility of our business remains there, as by the end of the second quarter, over 95% of our contracts were for 10 years term or longer, leading to a weighted average remaining term of a current contracted capacity of 8.6 years and we expect less than 4% of our existing contracted capacity to expire by the end of 2027.

如投影片12所示，在我們現有的730兆瓦在役容量中，截至第二季末，已有95%的容量被客戶以合約或意向書的形式確認使用，與上一季及去年同期持平。如投影片13所示，在我們總容量方面，截至第二季末，承諾率為90%，高於上一季的91%和去年同期的84%。我們的業務前景依然明朗，截至第二季末，超過95%的合約期限為10年或更長，使得目前已簽約容量的加權平均剩餘期限為8.6年，我們預計到2027年底，現有已簽約容量的到期率將低於4%。

Now, coming to a customer move-in on Slide 14. Our ramp-up remains healthy and in line with our schedule, with overseas projects as the key driver. We added 48 megawatts of utilized capacity in the second quarter, bringing our total utilized capacity to 585 megawatts compared with 401 megawatts in the same quarter last year. This represents 45.9% year-over-year growth.

現在，我們來看看第14頁投影片中的客戶入住狀況。我們的產能爬坡進展順利，符合既定計劃，海外專案是主要驅動力。第二季我們新增了48兆瓦的利用容量，使總利用容量達到585兆瓦，而去年同期為401兆瓦。這相當於年增45.9%。

Quarterly move-in was contributed by projects in our northern China campus supporting the anchor client, and the Chinese cloud client, as well by our overseas projects in India and Malaysia supporting the anchor client and one of the key international clients. MY06 Phase 2 is 76% utilized in the first quarter following its opening, indicating a strong overseas demand. These quarterly dynamics lead to a quarter-end utilization ratio of 80% compared with 78% in the same quarter last year.

本季新增進駐專案主要來自我們位於中國北方園區的專案（服務核心客戶和中國雲端客戶），以及我們在印度和馬來西亞的海外專案（服務核心客戶和一家重要的國際客戶）。 MY06二期專案在啟用後的第一個季度利用率達到76%，顯示海外需求強勁。這些季度動態使得本季末的利用率達到80%，而去年同期為78%。

On a quarter-over-quarter basis, utilization ratio is 4% lower, mainly due to the inclusion of the 49 megawatts new in-service project, that was just starting to ramp up. Looking at the utilization ratio at single project level, 16 out of the existing 27 in-service projects or 59% of them are over 90% utilized. Geographically, with the fast ramp-up of our Johor projects, overseas business now contributed to 14% of total utilized capacity during and by this quarter end.

環比來看，利用率下降了4%，主要原因是計入了剛開始增產的49兆瓦新投產項目。從單一專案層面來看，現有27個在運項目中，有16個（佔59%）的利用率超過90%。從地域來看，隨著柔佛州計畫的快速增產，截至本季末，海外業務已佔總利用產能的14%。

On some other aspects of business development on Slide 16, we released our 2022 ESG report on July 24, 2023. We continued to run our business in an energy-efficient way. With a total power consumption of 3.032 billion kilowatt hour in the year 2022, we managed to keep the annual PUE for our Chinese business at 1.21, remarkably lower than industry average. We reinforced our "SAFE" ESG strategy that was set forth in the year of 2021, while committing ourselves to the mission of efficiently converting electricity into high-quality computational power in the stable, eco-friendly, and high-quality manner, thereby increasing operational stability and enhancing partner confidence and building a more sustainable brand. More information can be referred to in our ESG report.

關於第16頁幻燈片中提到的其他業務發展方面，我們在2023年7月24日發布了2022年ESG報告。我們持續以節能的方式經營業務。 2022年，我們的總用電量為30.32億千瓦時，中國業務的年度PUE值維持在1.21，顯著低於行業平均。我們強化了2021年制定的「SAFE」ESG策略，致力於以穩定、環保、高品質的方式將電力高效轉化為高品質的運算能力，從而提高營運穩定性，增強合作夥伴的信心，並打造更永續的品牌。更多資訊請參閱我們的ESG報告。

On Slide 17. As a first mover in executing energy abundant lower-tier region layout strategy, our years of operation in Huailai county, Zhangjiakou city of Hebei Province, is gaining more recognition. Hebei Qinhuai, a subsidiary of Chindata has earned a place on the National List of Specialized and Innovative 'Little Giant' enterprises. This accolade is bestowed upon companies that focus on niche markets, demonstrate strong innovation, maintain a significant market share, master core technologies and attain remarkable levels of quality and efficiency.

第17頁幻燈片。作為率先實施能源豐富型下層區域佈局策略的企業，我們在河北省張家口市懷來縣多年的營運經驗正日益受到認可。秦大達旗下子公司河北秦淮榮登國家專業化創新型「小巨人」企業名錄。此榮譽授予那些專注於細分市場、展現出強大的創新能力、保持顯著的市場份額、掌握核心技術並達到卓越品質和效率水平的企業。

We are the first data center enterprise in Hebei to earn this esteemed recognition. Our "Four Campuses Layout" in Huailai County is now well-established, with our IT capacity surpassing 300 megawatts and a server deployment scale constituting 80% of the total in Huailai County. Furthermore, in this region, as we mentioned previously, we continued to build our partner ecosystem to lay the foundation for future opportunities.

我們是河北省首家獲此殊榮的資料中心企業。我們在懷來縣的「四大園區佈局」已全面建成，IT裝置容量超過300兆瓦，伺服器部署規模佔懷來縣總規模的80%。此外，正如我們之前提到的，我們持續在該地區建立合作夥伴生態系統，為未來的發展機會奠定基礎。

On Slide 18, on July 28, we entered into a ten-year strategic cooperation agreement with Zhangjiakou Construction & Investment Group. This local SOE boasts a wealth of experience and capabilities in asset management, capital operations, resource development and industrial investments. Through the partnership, both parties would engage in deep cooperation in land and water resource development, energy development, data center collaboration and operation and integrated projects of source-grid-load-storage and further explore other collaborative opportunities in the big data industry chain. This partnership signifies the continued commitment of Chindata in Huailai, Zhangjiakou to further strengthen and optimize the local digital economy.

在第18頁幻燈片中，我們於7月28日與張家口建設投資集團簽署了為期十年的策略合作協議。這家本地國有企業在資產管理、資本運營、資源開發和產業投資方面擁有豐富的經驗和強大的實力。透過此次合作，雙方將在土地和水資源開發、能源開發、數據中心合作運營以及源-網-負載-儲能一體化項目等領域開展深度合作，並進一步探索大數據產業鏈中的其他合作機會。此次合作標誌著秦達達持續致力於在張家口懷來地區進一步加強和優化當地數位經濟。

With that, I have concluded my part. And I will turn to Zoe for the details of our financial performance. Zoe, please.

我的發言到此結束。接下來，我將請佐伊報告我們的財務表現詳情。佐伊，請講。

Thank you, Nick. Now let me walk you through our quarterly financial performance. Generally speaking, we have maintained a very healthy financial momentum in the second quarter of year 2023.

謝謝你，尼克。現在讓我來為你介紹一下我們本季的財務表現。總的來說，我們在2023年第二季保持了非常健康的財務成長動能。

Our revenue growth in the second quarter remained healthy, recording a 49.7% year-over-year growth to reach RMB 1,553.8 million, which is in-line with the 45.9% year-over-year increase in utilized capacity. Overseas business contributed to 14% of total utilized capacity in the second quarter up from around 9% in the previous quarter.

第二季營收成長維持穩健，年增49.7%至人民幣15.538億元，與產能利用率年增45.9%基本一致。海外業務貢獻了第二季總產能利用率的14%，高於上一季的約9%。

Looking further down on Slide 25. Total cost of revenue in the second quarter increased by 51.3% to RMB 911.2 million from RMB 602.2 million in the same period of 2022, mainly driven by increase in utility costs, and depreciation and amortization expenses.

繼續看第 25 頁投影片。第二季總收入成本較 2022 年同期成長 51.3%，達到 9.112 億元，而 2022 年同期為 6.022 億元，主要原因是公用事業成本增加以及折舊和攤提費用增加。

Total operating expenses in the second quarter of 2023 increased by 56.9% year over year to RMB 197.6 million, primarily due to more marketing activities conducted by the company, higher professional service fee, increase in research and development personnel and the higher share-based compensation expense.

2023年第二季總營運費用年增56.9%至人民幣1.976億元，主要原因是公司開展了更多行銷活動、專業服務費增加、研發人員增加以及股權激勵費用增加。

Specifically, selling and marketing expenses in the second quarter of 2023 increased by 4.1% year over year to RMB 16.1 million. General and administrative expenses in the second quarter of 2023 increased by 69.6% year over year to RMB 154.5 million. Research and development expenses in the second quarter of 2023 increased by 39.3% year over year to RMB 27 million. As a result of these, operating income in the second quarter of 2023 increased by 43.5% to RMB 445 million recorded operating income margin of 28.6%.

具體而言，2023年第二季銷售及市場推廣費用年增4.1%至人民幣1610萬元；一般及行政費用年增69.6%至人民幣1.545億元；研發費用年增39.3%至人民幣2,700萬元。受上述費用影響，2023年第二季營業利潤年增43.5%至人民幣4.45億元，營業利益率為28.6%。

Net income in the second quarter of 2023 increased by 9.8% year over year to RMB 219.2 million, with a net margin of 14.1% compared with 19.2% in the same period of 2022 and 17.5% in the first quarter of this year. The year over year change in the net margin was mostly contributed by increase in interest expense.

2023年第二季淨利年增9.8%至人民幣2.192億元，淨利率為14.1%，低於2022年同期的19.2%和今年第一季的17.5%。淨利潤率年減主要受利息支出增加的影響。

For a breakdown of core cost and expense item on Slide 26. With the growth of our business, we continued to maintain our adjusted EBITDA margin at above 50% level. Maintenance and other cost was 7.5% of revenue in the second quarter, compared with 6.6% in the previous quarter. Adjusted SG&A was 9.7% of revenue, compared with 6.8% in the previous quarter. On a quarter-over-quarter basis, utility price did not see material fluctuation across the regions in which we operate, leading to the stable utility cost percentage point of revenue at 31.2% in the second quarter, similar to the previous quarter. On a year-over-year basis, utility cost of revenue rose by roughly 2 percentage points.

核心成本與費用項目的明細請參閱第26頁投影片。隨著業務成長，我們繼續保持調整後EBITDA利潤率在50%以上。第二季維護和其他成本佔收入的7.5%，高於上一季的6.6%。調整後的銷售、管理及行政費用佔營收的9.7%，高於上一季的6.8%。環比來看，我們營運所在地區的公用事業價格波動不大，因此第二季公用事業成本佔收入的百分比與上一季基本持平，為31.2%。年比來看，公用事業成本佔收入的百分比上升了約2個百分點。

With this, on Slide 27, adjusted EBITDA recorded a 49.9% year-over-year growth or 0.3% quarter-over-quarter growth to reach RMB 816. 1 million and a margin of 52.5%. Adjusted net income increased by 6.7% year over year in the second quarter to RMB 258.2 million at a margin of 16.6%. Details in the GAAP to Non-GAAP reconciliation on EBITDA and net income would be available in our 6-K filing or the appendix in our IR PPT.

根據第27頁投影片，經調整EBITDA年增49.9%，季增0.3%，達到人民幣8.161億元，利潤率為52.5%。第二季經調整淨利年增6.7%，達到人民幣2.582億元，利潤率為16.6%。有關EBITDA和淨利潤的GAAP與非GAAP調整詳情，請參閱我們的6-K文件或投資者關係簡報的附錄。

On Slide 28, given the highly-demanding delivery schedule, we continued to incur a similar level of CapEx during the quarter that we covered existing under-construction projects as well as some initial investment in potential pipeline projects with good certainty. CapEx in the second quarter was RMB 1,254.6 million, compared with RMB 1,653.9 million in the previous quarter.

如投影片28所示，鑑於交付進度要求極高，我們本季持續投入與上一季相近水準的資本支出，用於現有在建工程以及對一些確定性較高的潛在專案進行初步投資。第二季資本支出為人民幣12.546億元，上一季為人民幣16.539億元。

On Slide 29, our operating cash flow continued to recover and improve following the COVID-19 epidemic in 2022 and the completion of client system upgrade. Operating cash flow in the second quarter was RMB 1,186.8 million, which is around 145% of our adjusted EBITDA compared with RMB 693.3 million in the first quarter of 2023. Such improvement of operating cash flow is also in-line with substantial lower value of our account receivables by quarter end. Financing cash flow was RMB 259.1 million in the second quarter, with another RMB 1,396.4 million investing cash flow. We ended up with a higher total cash position of RMB 5,915.3 million by quarter end and a net debt position of RMB 5,569.3 million. Our leverage and the coverage ratios remain in a reasonable and healthy range.

如第29頁所示，在2022年新冠疫情爆發以及客戶系統升級完成後，我們的營運現金流量持續復甦並有所改善。第二季經營現金流為人民幣11.868億元，約佔調整後EBITDA的145%，而2023年第一季為人民幣6.933億元。經營現金流的改善也與季末應收帳款金額的大幅下降相符。第二季融資現金流為人民幣2.591億元，投資現金流量為人民幣13.964億元。截至季末，我們的現金總額增加至人民幣59.153億元，淨負債為人民幣55.693億元。我們的槓桿率和償債能力比率均保持在合理的健康範圍內。

On Slide 30, key leverage ratios do not see much fluctuation quarter over quarter, neither are key coverage ratios.

在第 30 頁投影片中，關鍵槓桿率和關鍵覆蓋率的季度間波動都不大。

On Slide 31, asset return continued to improve in the second quarter. With an overall utilization ratio of our total in-service capacity at 80%, we are seeing the company defined pre-tax ROIC further rise to 19.3% compared with 18.7% in the previous quarter and 17.0% in the same quarter last year.

如投影片31所示，第二季資產報酬率持續改善。目前，我們總在役產能的整體利用率達到80%，公司定義的稅前投資報酬率進一步上升至19.3%，高於上一季的18.7%和去年同期的17.0%。

Finally, based on the company's current and the preliminary views on the market and operational conditions, we reiterated our 2023 revenue guidance in the range of RMB 5,880 million to RMB 6,080 million and adjusted EBITDA guidance in the range of RMB 3,100 to RMB 3,220 million. This reflects the company's preliminary views, which are subject to change.

最後，基於公司目前及對市場和經營狀況的初步判斷，我們重申2023年營收預期為人民幣58.8億元至人民幣60.8億元，調整後EBITDA預期為人民幣31億元至人民幣32.2億元。以上反映的是公司的初步判斷，可能會有所調整。

This concludes our prepared remarks for today.

我們今天的演講到此結束。

(Operator Instructions) Our first question comes from the line of Yang Liu from Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的楊柳。

(foreign language). My question is related with the patent on the cooling technology supporting the AIGC future demand. We noticed that Chindata has a lot of patents in immersion liquid cooling and cold-plate liquid cooling, et cetera. And I would like to ask what is your customers' acceptance, especially anchor customer and global cloud customers' acceptance of such kind of technology route in AIGC-related computing hosting. And related question is whether such kind of technology can increase the ROIC of the company.

我的問題與貴公司支持未來AIGC需求的冷卻技術專利有關。我們注意到，秦達科技在浸沒式液冷、冷板液冷等領域擁有多項專利。我想了解貴公司客戶，特別是核心客戶和全球雲端客戶，對這種AIGC相關運算託管技術方案的接受度如何。另外，這種技術能否提高貴公司的投資報酬率（ROIC）？

Thank you, Mr. Liu Yang. I think the reason why we think that our anchor client and the future customer will be very willing to accept our diversified cooling solution is simply because we are operated in such a diversified geography, especially if you compare our North China campus versus our Southeast Asia Johor campuses, the weather conditions, humidity conditions and also temperature conditions are completely different.

謝謝劉陽先生。我認為我們之所以相信我們的主要客戶和未來的客戶會非常樂意接受我們多元化的製冷解決方案，原因很簡單，因為我們的業務遍及全球各地，尤其是如果您比較一下我們位於華北的園區和我們位於東南亞柔佛州的園區，就會發現那裡的氣候條件、濕度條件以及溫度條件都截然不同。

So you need to have a lot of tools, tool boxes. So when the customer went to different conditions or the demand from a technical perspective, given the AIGC more requirements on the air flowing and also the cooling requirements, you need to be ready. So therefore, we are very confident with all this technology patents in-house and most importantly, with our talent pool in-house leading by our CTO, Mr. Zhang Bing Hua. We are very confident that all this liquid cooling patents and technology and solutions or cold-plate cooling solutions will be well accepted by our customers. And actually, as a matter of fact, some of them already been applied in our campuses in China as well as overseas.

所以，你需要準備大量的工具和工具箱。當客戶從技術角度提出不同的要求，例如AIGC對氣流和冷卻提出了更高的要求時，你需要做好準備。因此，我們對公司內部擁有的所有技術專利，以及最重要的，我們公司內部由首席技術官張炳華先生領導的人才隊伍，都充滿信心。我們非常有信心，所有這些液冷專利、技術和解決方案，或冷板冷卻解決方案，都會被我們的客戶廣泛接受。事實上，其中一些技術已經在我們位於中國和海外的園區中得到應用。

In terms of a financial return, yes, there will be a marginal, I would say, the ROIC improvement, especially if you look at the full life cycle of this solution application, they're going to be a requirement in more investment, but they're going to be a cost saving later, especially on energy saving part. So overall, I think our study shows that the ROIC is going to be improved marginally.

就財務回報而言，是的，我認為投資回報率（ROIC）會有小幅提升，尤其是在考慮該解決方案應用的整個生命週期時。雖然前期需要更多投資，但後期可以節省成本，尤其是在節能方面。因此，總的來說，我認為我們的研究顯示投資報酬率（ROIC）會有小幅提升。

Our next question comes from the line of Sara Wang from UBS. Please ask your question, Sara.

下一個問題來自瑞銀集團的Sara Wang。 Sara，請提問吧。

(foreign language) So according to the latest SEC filing, it seems the 2023 CapEx is estimated at USD 1.3 billion. So just wondering what's the key driver of the CapEx for this year?

（外語）根據最新的美國證券交易委員會（SEC）文件，2023年的資本支出預計為13億美元。我想知道今年資本支出的主要驅動因素是什麼？

Thank you, Sara. I think you are referring to the documents whatever filing we already filed to SEC regarding the privatization issue, right? So that's where you see this USD 1.3 billion. I would say that, first of all, that's actually the part of the work prepared by Citigroup, who is the adviser to our special committee who reviewed the whole process. So for any -- I would recommend for any evaluation and also the financial forecast as part of the valuation process, methodology, you better ask Citi. But from our side, we're only focusing on our business progress, delivery schedule and obviously, the future pipeline on potential project, not only the project we disclosed to the marketplace.

謝謝，薩拉。我想您指的是我們先前向美國證券交易委員會提交的那些關於私有化問題的文件，對嗎？所以您才會在那些文件中看到13億美元。首先，我想說的是，這實際上是花旗集團準備的部分工作，他們是我們的特別委員會的顧問，負責審查整個流程。因此，對於任何評估，包括作為估值流程和方法論一部分的財務預測，我建議您最好諮詢花旗集團。而就我們而言，我們只專注於業務進展、交付計劃，以及未來潛在項目的儲備，而不僅僅是我們已經向市場披露的項目。

So having said that, that we used -- in the previous conference call, we used to estimate our whole year CapEx number going to be around RMB 5 billion to RMB 7 billion. Now I would say that the number for the whole year 2023 is going to be in the range of RMB 7 billion to RMB 9 billion from the latest internal estimate for the whole year 2023. Now we already have -- the first year, you see the number, we already spent like RMB 3 billion, the cash outflow on CapEx related stuff. So in the second half, we're probably going to spend RMB 4 billion or RMB 6 billion for other.

綜上所述，在上一次電話會議上，我們估計全年資本支出約為人民幣50億至70億元。現在，根據最新的內部預估，2023年全年資本支出將在人民幣70億至90億元之間。第一年，如您所看到的，我們已經支出了約人民幣30億元，這筆現金流出用於資本支出相關項目。因此，在下半年，我們可能會在其他方面支出40億至60億元。

We think that this potential upside or increased spending will be a good news for everybody. Why is good news, because this is driven by the progress of some incremental pipeline projects, new projects, which company is optimistic to obtain in the second half of this year. And these pipeline projects may bring better revenue and EBITDA for future years, not necessarily this year in 2023, but future year in 2024 and 2025, beyond previous estimate.

我們認為，這種潛在的成長或支出增加對所有人來說都是好消息。為什麼說是好消息呢？因為這得益於一些正在推進的新增項目，公司樂觀地認為這些項目將在今年下半年完成。這些項目預計在未來幾年帶來更高的收入和EBITDA，不一定是2023年，而是2024年和2025年，超越先前的預期。

In addition, a large significant portion of this incremental pipeline project, again, not the project we have disclosed, this project is actually driven by our overseas business. In other words, overseas project will have a larger-than-expected shares. And that basically means the increase of the unit CapEx accordingly. So obviously, the timing of the spending may vary around late 2023 or start of beginning of 2024.

此外，這項新增管道項目（並非我們已揭露的項目，而是海外業務驅動的項目）的很大一部分實際上來自我們的海外業務。換句話說，海外項目將佔比超出預期。這意味著單位資本支出也將相應增加。因此，支出時間可能會在2023年底或2024年初。

So part of the $1.3 billion you saw on those privatization documents, and very small part of it, may be carryover 2024 to spend. But on an aggregate level, if you combine 2023 and 2024 CapEx together, this should stay the same. So, yes, that's -- hopefully, I'm answering your questions. It's a good news, actually.

所以，你在那些私有化文件中看到的13億美元中，只有一小部分可能會結轉到2024年使用。但整體而言，如果將2023年和2024年的資本支出加在一起，總額應該保持不變。所以，是的，希望我回答了你的問題。實際上，這是個好消息。

Yes, very clear.

是的，非常清楚。

Our next question comes from the line of Mingran Li from CICC.

我們的下一個問題來自中金公司的李明然。

(foreign language) I want to ask about more color about the AI-related demand, like what percentage of new capacity using this year is AI-related and beside our anchor customer, either in your clients with new AI demand you're seeing recently? And also, we see some domestic peers decided to buy their own GPUs to start competing infrastructure business. Do you have any plan or strategy about this? Or are you just want to focus on our colocation service because your demand is strong.

我想更詳細地了解人工智慧相關的需求，例如今年新增容量中有多少比例是人工智慧相關的？除了我們的核心客戶之外，你們最近還有哪些客戶對人工智慧有新的需求？另外，我們看到一些國內同業開始購買自己的GPU來開展基礎設施業務。你們對此有什麼計劃或策略嗎？還是說因為你們的需求強勁，你們只想專注於我們的託管服務？

Thank you, Mingran. Actually, the client doesn't tell us when they install the server into our IDC centers and how many of them is AI-related. So we -- but we can guess, right? So based on the application and utilization of the high-density cabinets and based on the servers type they put in our data center, we think that the AI portion -- the AI-related servers probably account for around 5% of our current overall capacity.

謝謝明然。實際上，客戶並沒有告訴我們他們何時將伺服器安裝到我們的IDC資料中心，也沒有說明其中有多少伺服器與人工智慧相關。所以我們——不過我們可以猜測一下，對吧？根據高密度機櫃的應用和利用情況，以及他們安裝在我們資料中心的伺服器類型，我們認為人工智慧相關的伺服器可能占我們目前總容量的5%左右。

On an incremental basis, we are still under some serious discussion with them about incremental orders and projects and I believe are going to be a higher portion of them going to be AIGC-related, for sure. And also, you probably heard the same thing. As myself from the Street that simply one of our anchor customers have the biggest reserve for inventory of the AIGC-related GPU units or chips or servers in China for both their China business and also their overseas business.

我們仍在與他們就增量訂單和項目進行深入探討，我相信其中很大一部分肯定會與AIGC相關。而且，您可能也聽過類似的事情。正如我本人在華爾街所了解到的，我們的一家主要客戶在中國擁有最大的AIGC相關GPU單元、晶片或伺服器庫存，用於其中國和海外業務。

So hopefully, that we can get a significant share out of it when they consider IDC partners for their future projects. And also, on top of the existing clients, we do -- these days, we do accommodate a lot of visits from quite a number of other AI customers, small and medium-sized these days, particularly to our overseas campus, and we believe the portion will be higher moving forward.

所以，我們希望當他們在未來的專案中考慮與IDC合作時，我們能從中獲得相當可觀的份額。此外，除了現有客戶之外，我們現在也接待了許多其他人工智慧客戶的來訪，尤其是一些中小型企業，特別是來我們海外園區的來訪。我們相信，未來這一比例還會持續成長。

As regard to our future strategy on the computing power service, we will focus on colocation service only. That is our current plan. And I haven't heard anything further about we're going to provide computing power business to our clients. Although we are doing -- as everybody knows, we're doing the best job of converting the electric power to computing power business, but we will not offer the computing powers for now, and I believe in the near future as well.

關於我們未來的算力服務策略，我們將只專注於資料中心託管服務。這是我們目前的計劃。我還沒有聽到任何關於我們向客戶提供算力業務的消息。雖然眾所周知，我們在將電力轉化為算力方面做得非常出色，但我們目前不會提供算力服務，而且我相信在不久的將來也不會。

(Operator Instructions) Next is a follow-up question from the line of Yang Liu from Morgan Stanley.

（操作說明）接下來是摩根士丹利楊柳的後續問題。

(foreign language) We recently observed that anchor customers and another datacenter player gained approval in Singapore, also initiated new projects in Johor as well. At the same time, Chindata also got sizable new orders from the anchor customer, so we would like to ask about the competing dynamics in Southeast Asia market.

我們近期觀察到，主要客戶和另一家資料中心營運商在新加坡獲得批准，並在柔佛州啟動了新專案。同時，Chindata 也從該主要客戶處獲得了數額可觀的新訂單，因此我們想了解東南亞市場的競爭格局。

Thank you, Liu. I think we come back to the issue of whether we want a smaller share of the bigger pie or bigger share of the smaller pie. But the Southeast Asia market, hopefully, our goal is to get both essentially. So the Southeast Asia offers a better prospective market in terms of overall IDC demand than China over the course of next 3 years, that's our belief. And we believe that with our confidence in the efficiency in terms of delivery and operation and the economy of scale, which is going to sooner or rather later going to turn it into a huge cost advantage as well as our track record we demonstrate to our clients in China and in our Johor project, we will get a bigger pie than everybody anticipated in the future.

謝謝劉先生。我認為我們最終還是要回到一個問題上：我們是想要在大蛋糕中分得較小的份額，還是想要在小蛋糕中分得較大的份額？但就東南亞市場而言，我們希望兩者兼得。我們認為，未來三年，東南亞市場在整體IDC需求方面比中國更有發展潛力。我們相信，憑藉我們在交付和營運方面的效率以及規模經濟優勢（這些優勢遲早會轉化為巨大的成本優勢），再加上我們在中國和柔佛州項目中向客戶展示的良好業績，未來我們將獲得比所有人預期更大的市場份額。

But the other reality we have to face is actually from day 1 when we had a conversation about our change in Southeast Asia market, I said, I have been keep saying that it's open field competition. So you need to show all your hands or what do you have in the pocket in terms of cooling solutions, your supply chain -- entire supply chain solution from China all the way to Southeast Asia market, your talent pool and your capital power -- your prowess, all these, you're going to actually show much more than you have been doing in China to the client in order to win bigger shares out of this bigger pie.

但我們必須面對的另一個現實是，從我們討論東南亞市場轉型的第一天起，我就一直強調，這是一個開放的競爭環境。所以，你需要拿出所有底牌，展現你在冷凍解決方案、供應鏈（從中國到東南亞市場的整個供應鏈解決方案）、人才儲備、資金實力等方面的全部實力。為了在這個更大的市場中贏得更大的份額，你必須向客戶展示比在中國市場更多的優勢。

(foreign language) The follow-up question is that do you have any sense on what is the wallet share for the Chindata in those anchor customers demand in Southeast Asia market?

（外語）後續問題是，您是否了解 Chindata 在東南亞市場核心客戶需求中的錢包份額是多少？

We're striving to get over 50% of the overall shares. And we believe with all the solutions we put on table and all the good performance we put on the table, now we have a very good chance to get it. And our overall objective of the overseas business as a share of our overall portfolio is going to be around 30%, probably by the end of 2025.

我們力爭獲得超過50%的市佔率。我們相信，憑藉我們提出的所有解決方案和取得的良好業績，我們現在很有機會實現這一目標。我們的整體目標是，到2025年底，海外業務佔整體投資組合的比例達到30%左右。

(Operator Instructions) I am showing no further questions. Thank you very much for all your questions. I'll now turn the conference back to the company for any closing comments.

（操作員指示）我不再接受任何問題。非常感謝各位的提問。現在我將會議交還給公司，請他們作總結發言。

I think everybody has been focusing on Chindata, which we highly appreciated. And also, we highly appreciate all the investors and analysts, the friends, your support for the company in the past 2 or 3 years since the IPO. While there is a privatization process of the company is going on, we can assure you that the management and our entire team will continue to work very hard on delivering our business, sticking to our original mission of converting -- efficiently converting electric power to computing power and again striving to become the best IDC leader in the Pan Asia Pacific regions. Thank you.

我認為大家一直都很關注秦達數據，我們對此深表感謝。同時，我們也衷心感謝所有投資人、分析師和朋友們，感謝你們自公司上市以來兩、三年來對公司的支持。雖然公司目前正在進行私有化進程，但我們可以向大家保證，管理層和全體員工將繼續努力，堅守最初的使命——高效地將電力轉化為運算能力，並再次努力成為泛亞太地區IDC的領先企業。謝謝。

Ladies and gentlemen, we conclude our conference for today. Thank you for participating. You may now disconnect your lines.

女士們、先生們，今天的會議到此結束。感謝各位的參與。現在可以掛斷電話了。