GDS Holdings Ltd (GDS) 2022 Q4 法說會逐字稿

Hello, ladies and gentlemen. Thank you for standing by for GDS Holdings Limited's fourth quarter and full year 2022 earnings conference call. At this time, all participants are in listen-only mode. After management's prepared remarks there will be a question-and-answer session. Today's conference call is being recorded. I will now turn the call over to your host, Miss Laura Chen, Head of Investor Relations of the Company. Please go ahead, Janet.

女士們，先生們，您好。感謝您支持 GDS Holdings Limited 第四季度和 2022 年全年收益電話會議。此時，所有參與者都處於只聽模式。在管理層準備好的評論之後，將進行問答環節。今天的電話會議正在錄製中。我現在將電話轉給您的主持人，公司投資者關係主管 Laura Chen 小姐。請繼續，珍妮特。

Thank you. Hello everyone. Welcome to the fourth quarter and the full year 2022 Earnings Conference Call of GDS Holdings Limited. The Company's results were issued via newswire services earlier today and are posted online. A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our IR website at investors.gds-services.com.

謝謝。大家好。歡迎來到萬國數據控股有限公司 2022 年第四季度和全年收益電話會議。公司的業績今天早些時候通過新聞專線服務發布並在線發布。可以從我們的 IR 網站 investors.gds-services.com 查看和下載我們將在本次電話會議中參考的摘要介紹。

Leading today's call is Mr. William Huang, GDS Founder, Chairman and CEO, who will provide an overview of our business strategy and performance. Mr. Dan Newman, GDS CFO, will then review the financial and operating results. Miss Jamie Khoo, our Chief Operating Officer, is also available to answer questions.

今天的電話會議由萬國數據創始人、董事長兼首席執行官 William Huang 先生主持，他將概述我們的業務戰略和業績。 GDS 首席財務官 Dan Newman 先生隨後將審查財務和運營結果。我們的首席運營官 Jamie Khoo 小姐也可以回答問題。

Before we continue, please note that today's discussions will contain forward-looking statements made under the Safe Harbor Provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties.

在我們繼續之前，請注意今天的討論將包含根據 1995 年美國私人證券訴訟改革法案的安全港條款作出的前瞻性陳述。前瞻性陳述涉及固有的風險和不確定性。

As such, the Company's results may be materially different from the views expressed today. Further information regarding these, and other risks and uncertainties is included in the Company's Prospectus, as filed with US SEC. The Company does not assume any obligation to update any forward-looking statements, except as required under applicable law.

因此，公司的業績可能與今天表達的觀點存在重大差異。有關這些以及其他風險和不確定性的更多信息包含在公司向美國證券交易委員會提交的招股說明書中。公司不承擔任何更新任何前瞻性陳述的義務，除非適用法律要求。

Please also note that GDS earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures. GDS press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures.

另請注意，GDS 收益新聞稿和本次電話會議包括對未經審計的 GAAP 財務信息以及未經審計的非 GAAP 財務措施的討論。 GDS 新聞稿包含未經審計的非 GAAP 措施與未經審計的最直接可比的 GAAP 措施的調節。

I will now turn the call over to GDS Founder, Chairman and CEO, William Huang. Please go ahead, William.

我現在將把電話轉給 GDS 創始人、董事長兼首席執行官 William Huang。請繼續，威廉。

Thank you. Hello, everyone, this is William. Thank you for joining us on today's call.

謝謝。大家好，我是威廉。感謝您參加今天的電話會議。

Despite the challenging environment, our business continued to deliver solid results. In 2022 we grew revenue by 19% and adjusted EBITDA by 15% year on year. We won significant new business in China, while at the same time adjusting our development program, to the current pace of growth. We accelerated our international expansion with notable success, and on the funding side we took steps to accept new source of capital and strengthen our financial position.

儘管環境充滿挑戰，我們的業務仍繼續取得穩健的業績。 2022 年，我們的收入同比增長 19%，調整後的 EBITDA 同比增長 15%。我們在中國贏得了重要的新業務，同時調整了我們的發展計劃，以適應當前的增長速度。我們加快了國際擴張步伐，取得了顯著成功，在資金方面，我們採取措施接受新的資金來源並加強我們的財務狀況。

Entering 2023, we're looking forward to a recovery. Customers are more positive about their business outlook. When their businesses pick up, it will flow through to us quite quickly. We could see this happen over the next few quarters. Meanwhile, we are continuing to strengthen our operations and finances.

進入 2023 年，我們期待復甦。客戶對他們的業務前景更加樂觀。當他們的業務好轉時，它會很快流向我們。我們可以在接下來的幾個季度看到這種情況發生。與此同時，我們正在繼續加強我們的運營和財務。

Looking further ahead, the fundamentals for our industry remain very strong. On one hand, AI and other new technologies are driving waves of demand. On the other hand, data center supply in China's Tier 1 markets is gradually become more constrained, due to the limitations on land and power. As market conditions improve, we're well positioned to outperform with our customer relationships, [committed] backlogs and established asset bases.

展望未來，我們行業的基本面仍然非常強勁。一方面，人工智能等新技術正在帶動需求浪潮。另一方面，由於土地和電力的限制，中國一級市場的數據中心供應逐漸變得更加緊張。隨著市場狀況的改善，我們在客戶關係、[承諾的] 積壓訂單和已建立的資產基礎方面處於領先地位。

In 2022, we won 74,000 square meters, or 178 megawatts of net new bookings, all of which was for our organic data center developments in Tier 1 markets. A big highlight was our 64-megawatt win in Johor, with significant contributions from the international. Our full year bookings were up to the level of the past few years. This highlights the importance of our strategy to follow the customers.

2022 年，我們贏得了 74,000 平方米或 178 兆瓦的淨新預訂，所有這些都用於我們在一級市場的有機數據中心開發。一大亮點是我們在柔佛州贏得 64 兆瓦電力，國際上做出了重大貢獻。我們的全年預訂量達到了過去幾年的水平。這凸顯了我們跟隨客戶的戰略的重要性。

For 2023 we are targeting a similar level of new bookings, with once again a significant contribution from international.

到 2023 年，我們的目標是實現類似水平的新預訂，國際航班將再次做出重大貢獻。

In 4Q '22, we won two new large hyperscale orders. LF15 is the first order for our new campus at Xianghe in Langfang, Hebei Province. The order is from a large internet company, which is migrating from our downtown site in Beijing. The customer is relocating to LF1 and to one of our other campus in Langfang.

在 22 年第四季度，我們贏得了兩個新的大型超大規模訂單。 LF15 是我們位於河北省廊坊市香河新校區的第一筆訂單。訂單來自一家大型互聯網公司，該公司正在從我們位於北京市中心的站點遷移。客戶將搬遷至 LF1 和我們在廊坊的另一個園區。

BJ14 Phase 2 is the second of three phases of development at our greenfield site in the Tongzhou district of Beijing. The order is from a first-time large internet customer in the recruitment sector. This win typifies our strategy of matching resource inventory with high potential customers. The new commitments come with confirmed move-in schedules.

BJ14 二期是我們位於北京通州區綠地的三期開發項目中的第二期。該訂單來自招聘行業的首次大型互聯網客戶。此次勝利體現了我們將資源庫存與高潛力客戶相匹配的策略。新的承諾伴隨著確認的入住時間表。

Over the past three years, we have made significant progress with new customer wins and diversification. Large internet companies accounted for 63% of new bookings in 2022, as compared with 23% in 2020. Enterprise and financial customers average around 20% of new bookings. This shows how we have been able to evolve our strategy to capture growth from different customer segments and different locations.

在過去的三年中，我們在贏得新客戶和多元化方面取得了重大進展。大型互聯網公司佔 2022 年新預訂量的 63%，而 2020 年這一比例為 23%。企業和金融客戶平均佔新預訂量的 20% 左右。這表明我們如何能夠發展我們的戰略以從不同的客戶群和不同的地點獲得增長。

Customer move-in in 2022 was affected by the lockdowns and other macro factors. Going forward, we are focusing on customers who can commit to fast move-in schedules, typically large internet customers move-in faster than [cloud] customers. Some of the large internet orders which we won in 2022 have relatively short move-in periods, hence, the move-in rate could pick up as these new contracts commence towards the end of this year.

2022 年的客戶遷入受到封鎖和其他宏觀因素的影響。展望未來，我們將專注於能夠承諾快速搬入時間表的客戶，通常是大型互聯網客戶比 [雲] 客戶搬入速度更快。我們在 2022 年贏得的一些大型互聯網訂單的入住期相對較短，因此，隨著這些新合同在今年年底開始，入住率可能會加快。

We have a large backlog totaling 260,000 square meters, nearly half of it related to data centers which are move-in ready. This gives us high visibility for future growth, with reduced CapEx.

我們有總計 260,000 平方米的大量積壓訂單，其中近一半與準備好搬入的數據中心有關。這使我們能夠以較低的資本支出提高未來增長的可見性。

To address to the current environment, we have slowed down our capacity expansion. In 2022 we brought 28,000 square meters into service. In 2023 we plan to bring a further 58,000 square meters in service (inaudible) with 33,500 square meters in Mainland China, and 24,500 square meters in international.

為應對當前環境，我們放慢了產能擴張。 2022 年，我們投入使用的面積達 28,000 平方米。到 2023 年，我們計劃再提供 58,000 平方米的服務（聽不清），其中中國大陸 33,500 平方米，國際 24,500 平方米。

Going forward, we will target to reduce the lead time from investment to customer move-in.

展望未來，我們的目標是縮短從投資到客戶入住的準備時間。

Looking beyond our current construction program, we have over 300,000 square meters of area held for future development in Mainland China, which can support multiple years of future demand. It mainly consists of land and power for campus-type developments, at good location, in national hub markets. Our pipeline aligns with the government's East for Data, West for Computer policy. This is a very good resource, which will give us significant competitive advantages, as supplies become tighter in year ahead.

展望目前的建設計劃，我們在中國大陸擁有超過 300,000 平方米的未來發展用地，可滿足未來多年的需求。它主要包括用於校園式開發的土地和電力，位置優越，位於國家樞紐市場。我們的管道符合政府的數據東方，計算機西方政策。這是一個非常好的資源，它將給我們帶來顯著的競爭優勢，因為明年供應會變得更加緊張。

All these priorities are directed at further strengthening our strategic market position and improving our operating and financial efficiency.

所有這些優先事項都旨在進一步加強我們的戰略市場地位並提高我們的運營和財務效率。

The initial phase of our international expansion is focused on Hong Kong as the regional hub for Greater China and the Singapore, Johor, Batam as the regional hub for Southeast Asia. These two hubs rank among the 10 largest data center markets globally. By leveraging our home market customer relationships, cost advantages from our prefab products, and the proven execution capability in hyperscale development, we can accelerate delivery to our customers and rapidly establish the market-leading positions.

我們國際擴張的初始階段主要集中在香港作為大中華區的區域中心，以及新加坡、柔佛和巴淡島作為東南亞的區域中心。這兩個中心躋身全球 10 大數據中心市場之列。通過利用我們在國內市場的客戶關係、我們預製產品的成本優勢以及在超大規模開發中經過驗證的執行能力，我們可以加快向客戶的交付速度並迅速確立市場領先地位。

Our first self-developed data center in Hong Kong will enter service in the next couple of months. We have secured anchor customer commitments from leading China and global cloud service providers. Hong Kong 1 is the first in a multi-year development pipeline of four purpose-built data centers. Plus, in an ideal location for serving both hyperscale and the enterprise customers.

我們在香港的第一個自行開發的數據中心將在未來幾個月內投入使用。我們已獲得領先的中國和全球雲服務提供商的主要客戶承諾。香港 1 號是四個專用數據中心的多年開發管道中的第一個。此外，位於為超大規模客戶和企業客戶提供服務的理想地點。

Hong Kong's position as the primary gateway for network and connectivity, between China and the rest of the world, assures its long-term position as a data center hub. We have put together a unique set of assets, ideally suited to meeting new waves of demand.

香港作為中國與世界其他地區之間網絡和連接的主要門戶的地位，確保了其作為數據中心樞紐的長期地位。我們匯集了一套獨特的資產，非常適合滿足新一波的需求。

We are making great progress with both land acquisitions and the customer commitments in Southeast Asia. In Johor, we are constructing three data centers, for delivery later this year and early next year. We're going from breaking ground to deliver of 64 megawatt over five quarters. We have acquired or secured options of the adjacent sites, to enable us to scale up. In the next few months, we expect to receive an additional order which would take us to nearly 100 megawatts of commitments in Johor alone.

我們在東南亞的土地收購和客戶承諾方面都取得了長足的進步。在柔佛州，我們正在建設三個數據中心，將於今年晚些時候和明年初交付。我們將從破土動工到在五個季度內交付 64 兆瓦的電力。我們已經收購或獲得了相鄰地點的選擇權，以使我們能夠擴大規模。在接下來的幾個月裡，我們預計將收到一份額外的訂單，這將使我們僅在柔佛州就達到近 100 兆瓦的承諾。

For existing projects, the priorities are to win further orders for Johor and Batam, build up our local management team, and deliver the initial capacity. At the same time, we aim to establish new projects in Kuala Lumpur, Jakarta and other new markets in Southeast Asia and beyond.

對於現有項目，首要任務是為柔佛和巴淡贏得更多訂單，建立我們在當地的管理團隊，並提供初始產能。同時，我們的目標是在吉隆坡、雅加達和東南亞及其他地區的其他新市場建立新項目。

While our position in Mainland China is well set for years to come, we believe that GDS International can become a significant second growth engine.

雖然我們在中國大陸的地位在未來數年都已確定，但我們相信万國數據可以成為重要的第二增長引擎。

Now, I will now pass on to Dan, for financial and operational review.

現在，我將轉交給丹，進行財務和運營審查。

Thank you, William. Starting on slide 22, where we strip out contribution from equipment sales and the effect of FX changes. In 4Q '22, our service revenue grew by 1.5%, and underlying adjusted EBITDA was slightly down, by 0.2%, quarter on quarter.

謝謝你，威廉。從幻燈片 22 開始，我們剔除了設備銷售的貢獻和外匯變化的影響。在 22 年第四季度，我們的服務收入增長了 1.5%，基礎調整後 EBITDA 環比略有下降 0.2%。

For FY22, our service revenue grew by 19.2%, and underlying adjusted EBITDA grew by 14.5%, year on year.

22 財年，我們的服務收入同比增長 19.2%，基礎調整後 EBITDA 同比增長 14.5%。

Turning to slides 23 and 24, service revenue growth is driven mainly by delivery of the committed backlog. Net additional area utilized during 4Q '22 was around 10,700 square meters. Around 7950 square meters was in Tier 1 markets, and the remaining 2700 square meters, approximately, was from BOT projects.

轉到幻燈片 23 和 24，服務收入增長主要由承諾積壓訂單的交付推動。 22 年第四季度使用的淨額外面積約為 10,700 平方米。約 7950 平方米位於一級市場，其餘約 2700 平方米來自 BOT 項目。

Net additional area utilized for FY22 was around 51,000 square meters. Around 29,000 square meters was in Tier 1 markets, and the remaining 22,000 square meters, approximately, was from BOT projects.

22 財年使用的淨額外面積約為 51,000 平方米。約 29,000 平方米位於一級市場，其餘約 22,000 平方米來自 BOT 項目。

For FY23 we expect additional area utilized, net of churn, to be similar to the levels seen in FY22, i.e., around 50,000 square meters of net add.

對於 23 財年，我們預計使用的額外面積（扣除流失）將與 22 財年的水平相似，即淨增加約 50,000 平方米。

We disclosed on our last earnings call that one large internet customer will move out of our downtown data centers in Beijing. As a result, we will record 17,000 square meters of churn, spread across the first three quarters of 2023. We have already won back more than 17,000 square meters of new commitments from this customer for two sites in Langfang. They will start to move into these sites during 4Q '23.

我們在上次財報電話會議上透露，一個大型互聯網客戶將搬出我們在北京市中心的數據中心。因此，我們將記錄 17,000 平方米的流失，分佈在 2023 年前三個季度。我們已經從該客戶那里為廊坊的兩個地點贏得了超過 17,000 平方米的新承諾。他們將在 23 年第四季度開始進入這些站點。

As William mentioned, towards the end of the year we will also start to deliver some other new contracts with faster move-in schedules. Accordingly, the cadence of move-in, in FY23 will be quite heavily weighted to the back end. The good news is that a pick-up later this year will feed into FY24 growth.

正如 William 提到的那樣，到今年年底，我們還將開始交付一些其他新合同，並以更快的搬入時間表進行交付。因此，23 財年的搬入節奏將非常重視後端。好消息是，今年晚些時候的回升將推動 24 財年的增長。

Monthly service revenue per square meter was RMB2194 in 4Q '22 compared with RMB2237 for the previous quarter, a decline of 1.9% quarter on quarter. Over the course of FY23 we expect MSR per square meter to decline by around 4%, comparing 4Q '23 with 4Q '22. This forecast decline is mainly due to change in location mix, including further BOT move in.

22 年第 4 季度每平方米月度服務收入為人民幣 2194 元，上一季度為人民幣 2237 元，環比下降 1.9%。在 23 財年期間，我們預計每平方米的 MSR 將下降 4% 左右，與 23 年第四季度和 22 年第四季度相比。這一預測下降主要是由於地點組合的變化，包括進一步的 BOT 搬入。

Turning to slides 25 and 26. For 4Q '22, our underlying adjusted gross profit margin was slightly up on the prior quarter at 50.9% while our underlying adjusted EBITDA margin was down at 44.4%.

轉到幻燈片 25 和 26。對於 22 年第四季度，我們的基礎調整後毛利率略高於上一季度，為 50.9%，而我們的基礎調整後 EBITDA 利潤率下降至 44.4%。

For FY '22 our underlying adjusted gross profit margin was 51.2%, compared to 53.3% in FY21 and our underlying adjusted EBIDTA margin was 45.6%, compared to 47.5% in FY21. The margin decrease was mainly due to elevated power tariffs throughout last year, which we estimate knocked 1.5 percentage points off our margin, and growth drag from international expansion of around a further 1 percentage point.

對於 22 財年，我們的基礎調整後毛利率為 51.2%，而 21 財年為 53.3%，我們的基礎調整後 EBIDTA 利潤率為 45.6%，而 21 財年為 47.5%。利潤率下降主要是由於去年全年電價上漲，我們估計這使我們的利潤率下降了 1.5 個百分點，而國際擴張進一步拖累了約 1 個百分點的增長。

The midpoint of our guidance for total revenue and adjusted EBITDA implies an adjusted EBITDA margin for FY23 which is similar to the level seen in 4Q '22. We have assumed no reduction in power tariffs over the course of this year and continuing growth drag from international expansion.

我們對總收入和調整後 EBITDA 指引的中點意味著 23 財年的調整後 EBITDA 利潤率與 22 年第四季度的水平相似。我們假設今年期間電價不會降低，並且國際擴張會持續拖累增長。

Turning to slide 27. 2022 was a transition year in terms of bringing down our CapEx in Mainland China on the one hand and accelerating international investments on the other hand. Our organic CapEx in Mainland China was around RMB5.8 billion for FY22, which is a few billion lower than in the past couple of years. International CapEx was RMB2 billion while acquisition CapEx was around RMB3.5 billion.

轉到幻燈片 27。2022 年是一個過渡年，一方面要降低我們在中國大陸的資本支出，另一方面要加速國際投資。 2022 財年，我們在中國大陸的有機資本支出約為 58 億元人民幣，比過去幾年低了幾十億元。國際資本支出為人民幣 20 億元，而收購資本支出約為人民幣 35 億元。

We are guiding for total CapEx in FY23 of around RMB7.5 billion, comprising a further reduction to RMB3.5 billion for Mainland China and an increase to RMB4 billion for international. Replacement CapEx included in the Mainland China number is running at around RMB200 million in 2023.

我們指導 23 財年資本支出總額約為 75 億元人民幣，其中中國大陸進一步減少至 35 億元人民幣，國際增加至 40 億元人民幣。 2023 年，包括在中國大陸數字中的替代資本支出約為 2 億元人民幣。

On slide 28 we provide some further data points relating to CapEx, starting with Mainland China. At the end of 2022 we had around 152,000 square meters under construction. The total cost to complete this capacity is RMB7.4 billion which we expect to incur over the next three years. With this additional expenditure, our total capacity in service would increase to around 667,000 square meters, sufficient for us to grow our billable area by around 71%.

在幻燈片 28 上，我們提供了一些與資本支出相關的更多數據點，從中國大陸開始。到 2022 年底，我們在建建築面積約為 152,000 平方米。完成該產能的總成本為人民幣 74 億元，我們預計將在未來三年內承擔。有了這筆額外支出，我們的總服務容量將增加到約 667,000 平方米，足以讓我們的計費面積增加約 71%。

As you can see, a relatively small amount of incremental investment is required to support a large amount of growth because much of the investment has already been incurred.

如您所見，需要相對少量的增量投資來支持大量增長，因為大部分投資已經發生。

Turing to international. Our total cost to date for the five data centers under construction in Hong Kong and Johor, totaling over 100 megawatts, is RMB4.1 billion, or US$590 million. The total cost to complete is RMB3.4 billion or US$490 million.

圖靈國際。迄今為止，我們在香港和柔佛州建設的五個數據中心的總成本超過 100 兆瓦，為 41 億元人民幣，或 5.9 億美元。完成的總成本為 34 億元人民幣或 4.9 億美元。

Looking at our financing position on slide 29. At the end of 2022, our net debt to last quarter annualized adjusted EBITDA ratio was 8.0 times on a consolidated basis. If we exclude the debt for the international business and add back the next assets to our cash, our net debt to last quarter annualized adjusted EBITDA ratio was 7.1 times. If we further exclude capital work in progress for our construction program in Mainland China. Our net debt for the last quarter annualized adjusted EBITDA ratio would have been 5.0 times.

查看我們在幻燈片 29 上的融資狀況。到 2022 年底，我們的淨債務與上一季度年化調整後 EBITDA 的綜合比率為 8.0 倍。如果我們排除國際業務的債務並將下一個資產加回到我們的現金中，我們的淨債務與上一季度年化調整後 EBITDA 的比率為 7.1 倍。如果我們進一步排除我們在中國大陸建設項目的在建資本工程。我們上個季度的年化調整後 EBITDA 比率的淨債務為 5.0 倍。

Our effective interest rate for FY22 dropped to 4.7%.

我們 22 財年的實際利率降至 4.7%。

Over the course of 2022 we maintained our cash position and ended the year with RMB8.6 billion or US$1.2 billion of cash on our balance sheet. In accordance with our treasury policy, we put cash on deposit with banks which are investment grade rated and pre-approved by our Board. In addition, we hold cash in equity and debt service reserve accounts as required by our project financing facilities.

在 2022 年期間，我們保持了現金頭寸，到年底資產負債表上的現金為 86 億元人民幣或 12 億美元。根據我們的財務政策，我們將現金存入具有投資等級評級並經董事會預先批准的銀行。此外，我們根據項目融資設施的要求，在股權和償債準備金賬戶中持有現金。

We previously carried a small amount of cash in accounts with SVB for short term operational purposes. As of today, this amounts to US$2 million which is in the process of withdrawal.

我們之前在 SVB 的賬戶中存有少量現金用於短期運營目的。截至今天，這筆款項已達 200 萬美元，正在提款過程中。

Turning to slide 30. In January of this year, we raised US$580 million gross proceeds from the issue of a new CB with seven year maturity. We have subsequently repaid $150 million of working capital loans.

轉到幻燈片 30。今年 1 月，我們通過發行新的七年期可轉換債券籌集了 5.8 億美元的總收益。我們隨後償還了 1.5 億美元的流動資金貸款。

In June of this year, we expect to repurchase $300 million from an existing CB when it's in put. As a result, we will have almost no debt repayable at GDS Holdings level until 2027. The debt which is repayable over the next few years is amortizing long-term project level loans which we refinance on a regular basis.

今年 6 月，我們預計將從現有的 CB 中回購 3 億美元。因此，到 2027 年，我們在 GDS Holdings 層面幾乎沒有可償還的債務。未來幾年應償還的債務是分期償還我們定期再融資的長期項目層面的貸款。

On slide 31 we provide some more color on current year funding requirements. Starting with Mainland China. We expect our operating cash flow to be around RMB1.5 billion (sic -- see slide 31 "RMB1.3 billion") for FY23, and as I mentioned, organic CapEx to be around RMB3.5 billion, resulting in negative free cash flow before financing of around RMB2.2 billion. We aim to fund this gap using a combination of project debt and asset monetization.

在幻燈片 31 上，我們提供了更多關於當年資金需求的顏色。從中國大陸開始。我們預計 23 財年我們的經營現金流約為 15 億元人民幣（原文——見幻燈片 31“13 億元人民幣”），正如我提到的，有機資本支出約為 35 億元人民幣，導致自由現金為負融資前流量約人民幣22億元。我們的目標是結合項目債務和資產貨幣化來彌補這一缺口。

At the end of 2022 we had RMB8.5 billion [sic - see slide 31 "RMB9.5 billion") of committed but undrawn project loan facilities in Mainland China. We have recently obtained regulatory clearance for our offshore China Data Center Fund. We expect to sign the limited partnership agreement and the sale and purchase agreement for the first data center asset shortly. The net cash proceeds will be approximately RMB1.45 billion after deducting our 30% capital commitment to the fund.

到 2022 年底，我們在中國大陸擁有 85 億元人民幣 [原文如此 - 參見幻燈片 31“95 億元人民幣”] 已承諾但未提取的項目貸款額度。我們最近獲得了離岸中國數據中心基金的監管許可。我們預計不久將簽署第一個數據中心資產的有限合夥協議和買賣協議。扣除我們對基金的 30% 資本承諾後，所得現金淨額約為人民幣 14.5 億元。

We will have the option to do more such transactions to reduce equity if we choose to do so. We are also in the process of signing a formal framework agreement with a leading Chinese insurance company for an onshore version of the China Data Center Fund.

如果我們選擇這樣做，我們將可以選擇進行更多此類交易以減少權益。我們還正在與一家領先的中國保險公司就中國數據中心基金的在岸版本簽署正式框架協議。

Over the next couple of years, we expect our operating cash flow for Mainland China to increase while CapEx remains at similar or lower levels to the guidance for FY23. Hence, we expect to become free cash flow positive for Mainland China within three years.

在接下來的幾年裡，我們預計我們在中國大陸的經營現金流將增加，而資本支出將保持在與 2023 財年指導水平相似或更低的水平。因此，我們預計三年內中國大陸的自由現金流將變為正數。

Turing to international. I've mentioned previously, we expect total CapEx for international of RMB4 billion for FY23. We expect to finance 50% of this, say RMB2 billion or US$290 million with project debt. For the balance, we are evaluating a number of options for raising equity at subsidiary level including private equity at our International HoldCo level and/or by bringing in local partners at Country HoldCo or Project HoldCo level.

圖靈國際。我之前提到過，我們預計 23 財年國際資本支出總額為 40 億元人民幣。我們預計將通過項目債務為其中的 50% 融資，比如 20 億元人民幣或 2.9 億美元。為了平衡，我們正在評估在子公司層面籌集股權的多種選擇，包括在我們的國際控股公司層面的私募股權和/或通過在國家控股公司或項目控股公司層面引入當地合作夥伴。

Turning to slide 32. For the full year 2023 we expect total revenues to be between RMB9.94 billion to RMB10.32 billion, implying a year-on-year increase of between approximately 6.6% to 10.7%.

轉到幻燈片 32. 對於 2023 年全年，我們預計總收入將在人民幣 99.4 億元至人民幣 103.2 億元之間，這意味著同比增長約 6.6% 至 10.7%。

We expect adjusted EBITDA to be between RMB4.43 billion to RMB4.6 billion, implying a year-on-year increase of between approximately 4.2% to 8.2%. In addition, as previously mentioned, we expect CapEx to be around RMB7.5 billion for the full year.

我們預計調整後的 EBITDA 介於人民幣 44.3 億元至人民幣 46 億元之間，意味著同比增長約 4.2% 至 8.2%。此外，如前所述，我們預計全年資本支出約為人民幣 75 億元。

We would now like to open the call to questions. Operator.

我們現在想開始提問。操作員。

(Operator Instructions)

（操作員說明）

The first question if from the line of Jonathan Atkin from RBC. Please go ahead.

第一個問題來自 RBC 的 Jonathan Atkin。請繼續。

Thank you. So my question was mainly around Southeast Asia and wondered if you could maybe talk a little bit about where you see relatively greater challenges to developing capacity in Johor versus Batam, as well, commercially in those markets. Setting aside kind of the initial customer discussions that you've had and the [anchor] commitment that you have in Johor, what are the prospects for those markets to serve sort of Singaporean requirements or act as a greater kind of Singapore availability zone versus serving kind of domestic and kind of regional demand on a standalone basis?

謝謝。所以我的問題主要是圍繞東南亞，想知道你是否可以談談你認為在柔佛州和巴淡島的發展能力面臨相對更大挑戰的地方，以及在這些市場的商業上。撇開您進行的初步客戶討論和您在柔佛州的[錨定]承諾，這些市場滿足新加坡需求或充當更大的新加坡可用區而不是服務的前景如何獨立的國內需求和區域需求？

In other words, how tightly coupled do you see Asian demand and maybe prospectively Western demand in Johor and in Batam with respect to kind of Singaporean. How tightly coupled is that with Singapore versus acting on their own as hubs? Thank you.

換句話說，對於某種新加坡人，您認為亞洲需求與柔佛州和巴淡島的潛在西方需求有多緊密相關。與新加坡的緊密聯繫與單獨作為樞紐的聯繫有多緊密？謝謝。

Hi Jon. Let me start with the second part of your question. The way we view the Singapore market and the surrounding areas is as a proxy for the Southeast Asian market. I think the majority of the data center capacity in Southeast Asia is concentrated in and around Singapore and a large part of that is there to serve the region, not just to serve Singapore.

嗨，喬恩。讓我從你問題的第二部分開始。我們看待新加坡市場及周邊地區的方式是作為東南亞市場的代表。我認為東南亞的大部分數據中心容量都集中在新加坡及其周邊地區，其中很大一部分是為該地區服務的，而不僅僅是為新加坡服務的。

When we look at the situation in Singapore, it's well known, because of the historic moratorium since 2019, that the developable capacity in Singapore has largely been built out. What we've seen from third party market research is that utilization rate for capacity in Singapore has gone to low to mid-90%,which is more than full in industry terms.

當我們審視新加坡的情況時，眾所周知，由於自 2019 年以來的歷史性暫停，新加坡的可開發能力已基本建成。我們從第三方市場研究中看到的是，新加坡的產能利用率已降至 90% 的中低水平，這在行業方面已經超過了滿負荷。

The Singapore Government is going through a process. They may allocate some additional quota to allow some growth in Singapore but we think that's only going to address a very small part of the incremental demand. Therefore, as we've seen in other markets where we have a presence like Beijing, Shanghai and Shenzhen and so on, the excess demand will spill over and we believe that it will spill over to Johor and Batam. We think they will both be vibrant and high growth, large scale data center markets.

新加坡政府正在經歷一個過程。他們可能會分配一些額外的配額以允許新加坡的一些增長，但我們認為這只會解決增量需求的一小部分。因此，正如我們在北京、上海和深圳等我們開展業務的其他市場所看到的那樣，過剩的需求將會溢出，我們相信它會溢出到柔佛和巴淡島。我們認為它們都將是充滿活力和高增長的大型數據中心市場。

We think that when you look at it from the perspective of how the hyperscale customers, particularly cloud service providers, deploy, they need the diversity of different locations. And I think having options on both sides of Singapore is operationally very beneficial.

我們認為，當您從超大規模客戶（尤其是雲服務提供商）部署方式的角度來看時，他們需要不同位置的多樣性。而且我認為在新加坡兩邊都有選擇在操作上是非常有益的。

In terms of the pace of development. I think we went out on our own in terms of making commitments to both Johor and Batam. Frankly, I think we leapfrogged many other players in doing that. I think that having that duel strategy will give us a marketing edge and a solution that others cannot offer.

從發展速度來看。我認為我們在對柔佛和巴淡島做出承諾方面獨自走出去。坦率地說，我認為我們在這方面超越了許多其他玩家。我認為擁有這種對決策略會給我們帶來營銷優勢和其他人無法提供的解決方案。

So far, what we've seen is that Johor has taken off a little faster, primarily because of the existing infrastructure there. I'm talking about power infrastructure and a network connectivity. But we are very confident that the time is coming. It may be one year or so behind. We've been talking to government in Singapore, government in Indonesia. There's a very strong commitment to making Batam a successful location for data centers. And we are happy to be a pioneer.

到目前為止，我們所看到的是柔佛的發展速度更快一些，這主要是因為那裡現有的基礎設施。我說的是電力基礎設施和網絡連接。但我們非常有信心，時機即將到來。它可能落後一年左右。我們一直在與新加坡政府和印度尼西亞政府交談。人們堅定地致力於使巴淡島成為成功的數據中心所在地。我們很高興成為先驅。

In the next few quarters, we'll be able to, I think, make progress in solving some of the basic infrastructure challenges even if it necessitates investing in submarine cable networks ourselves to kick start that. Then I think the market will start to [complement].

在接下來的幾個季度裡，我認為，我們將能夠在解決一些基本的基礎設施挑戰方面取得進展，即使這需要我們自己投資海底電纜網絡來啟動它。然後我認為市場將開始[補充]。

Thank you. If I could just ask a brief follow-up. Inside of China, can you talk a little bit about customer availability for obtaining servers? Are there supply chain constraints that are affecting their ability to procure equipment and ultimately move in? With respect to central Beijing, what are your prospects for refilling that capacity with other demand?

謝謝。如果我能問一個簡短的後續問題。在中國，您能談談客戶獲取服務器的可用性嗎？是否存在影響他們採購設備和最終搬入的能力的供應鏈限制？關於北京市中心，您用其他需求來補充容量的前景如何？

Hi Jonathan, it is William. I think in China yes, we just mentioned, this year is a transition for China whole business. But based on the last couple of weeks I came back to China and visited a lot of governments and our customer as well. I think I'm quite encouraged by our customers, especially the large internet and cloud service providers.

嗨，喬納森，我是威廉。我認為在中國是的，我們剛剛提到，今年是中國整個業務的轉型。但根據過去幾週的情況，我回到了中國，拜訪了很多政府和我們的客戶。我認為我們的客戶，尤其是大型互聯網和雲服務提供商，讓我深受鼓舞。

Based on our current pipeline I think the demand, we can see the leading indication in the pipeline. I think it is very strong. But for the cloud, when I visited the cloud service providers, they're all very ambitious still. I think they are maybe slightly a little bit a later than the internet company and financial institutions.

根據我們目前的管道，我認為需求，我們可以看到管道中的領先跡象。我認為它非常強大。但是對於雲，當我訪問云服務提供商時，他們仍然非常雄心勃勃。我覺得他們可能比互聯網公司和金融機構稍微晚一點。

If we come to China, I see in the first two months the leading data which I mean the consumer data rebound very fast. This is a leading indication the all the supply chain industry will catch up, recover. But it still terms time.

如果我們來到中國，我會在前兩個月看到領先數據，我的意思是消費者數據反彈非常快。這是一個領先的跡象，表明所有供應鏈行業都將迎頭趕上，復甦。但它仍然需要時間。

I think from another -- so in front of the current [sellable] market or the resource, I think we are very confident. We have just a very limited inventory. So I think this is very, very good asset. I believe and I'm very confident we will sell them easily in this year.

我認為從另一個角度來看——所以在當前的 [sellable] 市場或資源面前，我認為我們非常有信心。我們的庫存非常有限。所以我認為這是非常非常好的資產。我相信並且我非常有信心我們將在今年輕鬆出售它們。

So this is the question, right.

所以這就是問題，對吧。

Thank you.

謝謝。

Thank you. We will now take our next question. Please stand by. This is from the line of Yang Liu from Morgan Stanley. Please go ahead.

謝謝。我們現在開始下一個問題。請待命。這是來自摩根士丹利的 Yang Liu 的話。請繼續。

Thanks for the opportunity to ask questions. I have two questions here. The first one is regarding demand. I think would be one of the reason to see divergent demand from cloud and internet companies that a lot of big internet companies are moving away from public cloud. So if we combine the cloud and the internet together, when do we expect to see overall demand recovery? Or put another way. In terms of GDS full year guidance, what is the assumption of demand recovery behind it?

感謝有機會提問。我在這裡有兩個問題。第一個是關於需求。我認為，許多大型互聯網公司正在遠離公共雲，這是導致雲計算和互聯網公司需求不同的原因之一。那麼，如果我們將雲和互聯網結合在一起，我們預計什麼時候可以看到整體需求恢復？或者換一種說法。就萬國數據全年指引而言，其背後的需求復蘇假設是什麼？

My second question is in terms of the competition. Are you seeing more or more competitive bidding or price from Chinese telcos in front of your big customer? Thank you.

我的第二個問題是關於競爭的。在您的大客戶面前，您是否看到來自中國電信公司的更多或更具競爭力的投標或價格？謝謝。

Okay, Yang, this is William. I answer your first question. I think yes, in general I think the -- we should mention the structure of the new booking has changed. If you look at the last year, last two years. We used to be (inaudible) on almost 85% or 90% incremental demand from the cloud service provider.

好的，楊，這是威廉。我回答你的第一個問題。我想是的，總的來說我認為——我們應該提到新預訂的結構已經改變。如果你看去年，過去兩年。我們過去（聽不清）來自云服務提供商的需求增加了將近 85% 或 90%。

This year, last year almost zero from the cloud service provider so we still reached 70,000 square meters. This is all from the structurally change to the internet plus enterprise. So, we still maintain this assumption for our this year's new booking. So, we just wait if the cloud [risk] recovers. That's all upside. So, that's the profile assumption what we make.

今年，去年來自云服務提供商的幾乎為零，所以我們仍然達到了 70,000 平方米。這都是互聯網+企業的結構性變革。因此，對於今年的新預訂，我們仍然維持這一假設。因此，我們只是等待雲 [risk] 恢復。這都是好的。所以，這就是我們所做的配置文件假設。

You asked about what was the assumption in our guidance or in our business plan. The key driver of revenue and ultimately of EBITDA is the move-in. I mentioned that we are expecting over the full year move-in to be about 50,000 square meters, so we have some exceptional churn -- and we keep talking about it - but if you add that back, you'd see that the move-in this year will be over 60,000 square meters, which is around 15,000 square meters plus per quarter, which is a little higher than the last two quarters but similar to what it's been over the last six or eight quarters.

您詢問我們的指導或業務計劃中的假設是什麼。收入和最終 EBITDA 的主要驅動因素是搬入。我提到我們預計全年的搬入面積約為 50,000 平方米，因此我們有一些異常的變動——我們一直在談論它——但如果你把它加回來，你會看到搬遷——今年將超過 60,000 平方米，即每季度約 15,000 平方米以上，這比過去兩個季度略高，但與過去六個或八個季度相似。

So, that doesn't really imply much of a recovery but one of the factors which is behind that number is that as we mentioned a few contracts which start delivery in around September, October, November, December had faster than typical move-in schedules. Some of it could be quite front-ended which means that we may see quite a bit of move-in towards the end of the year. It's not this year; January of next year.

所以，這並不真正意味著復甦，但這個數字背後的一個因素是，正如我們提到的一些合同，它們在 9 月、10 月、11 月、12 月左右開始交付，比典型的搬入時間表更快.其中一些可能非常靠前，這意味著我們可能會在年底前看到相當多的搬遷。不是今年；明年一月。

As that boosts the full year number without really boosting the revenue much this year, but it does set up I think for potentially a good rate of year-on-year growth in 2024.

由於這增加了全年的數字，而沒有真正增加今年的收入，但我認為它確實為 2024 年可能實現良好的同比增長率奠定了基礎。

Yes, I want to add more point. I think the focus for the new booking is 75,000 square meters in our new guidance. This is all organic. This is all organic. Historically, when we reached 90,000 meters including ([Langfang] acquisition, so this is still very high level compared with all the global top player, still bigger than most of the big players] in the world.

是的，我想補充一點。我認為新預訂的重點是我們新指南中的 75,000 平方米。這都是有機的。這都是有機的。從歷史上看，當我們達到 90,000 米時，包括（[廊坊]收購，所以與所有全球頂級玩家相比，這仍然是非常高的水平，仍然比世界上大多數大玩家更大。

I think we provided some disclosure (inaudible).

我認為我們提供了一些披露（聽不清）。

Okay. I think in terms of the competition from the telco, I think the telco -- our strategy is the Tier 1 market. We build all our assets in the Tier 1 market or edge of the Tier 1 market. This is I think in the last -- nothing changed in terms of supply. Telco still less investment in this region. So, I think we are not worried about it. On the other hand, we don't compete directly. They're also our customer.

好的。我認為就來自電信公司的競爭而言，我認為電信公司——我們的戰略是一級市場。我們在一級市場或一級市場的邊緣建立我們所有的資產。這是我最後的想法——供應方面沒有任何變化。電信公司在該地區的投資仍然較少。所以，我認為我們並不擔心。另一方面，我們不直接競爭。他們也是我們的客戶。

I think we have very good relationship with the three telco in the last 10 years. So, recently a few telcos came to us and tried to discuss some cooperation between us because they also deployed their cloud service, want to deploy their service in Tier 1 market, and if someone want to deploy cloud service in Tier 1 market, I think definitely GDS will be the first choice for them to partner with, otherwise no possibility to provide their cloud service in this city.

我認為過去 10 年我們與這三大電信公司的關係非常好。所以，最近有幾家電信公司來找我們，試圖討論我們之間的一些合作，因為他們也部署了他們的雲服務，想在一級市場部署他們的服務，如果有人想在一級市場部署雲服務，我想萬國數據肯定是他們合作的首選，否則不可能在這個城市提供他們的雲服務。

Thanks a lot for the answers.

非常感謝您的回答。

Thank you. We'll now take the next question. Please stand by. This is from the line of Gokul Hariharan from JP Morgan. Please go ahead.

謝謝。我們現在開始下一個問題。請待命。這是來自摩根大通的 Gokul Hariharan 系列。請繼續。

Yes, hi. Thanks for taking my question. First, could you talk a little bit about what are you hearing in the last couple of months? William, I think you mentioned there is some excitement from the customer but typically on the cloud side, which is still a significant part of your backlog, if you think about the next couple of years, are we starting to see utilization pick up in their existing infrastructure that they need to now start accelerating the movement? Or you think that the cloud acceleration is still going to take a little bit more time?

是的，嗨。感謝您提出我的問題。首先，你能談談你在過去幾個月裡聽到了什麼嗎？威廉，我想你提到過客戶有一些興奮，但通常是在雲方面，這仍然是你積壓的重要部分，如果你考慮未來幾年，我們是否開始看到他們的利用率回升他們需要的現有基礎設施現在開始加速移動？或者您認為雲加速仍然需要更多時間？

Secondly, also on the EBITDA front, we have seen some erosion in EBITDA because of power costs and some mix-related challenges. Do we see the guidance that we gave for FY23 as the sustainable level of EBITDA margin or do we think there could be further pressure as more international business comes online in 2024 and beyond?

其次，同樣在 EBITDA 方面，由於電力成本和一些與混合相關的挑戰，我們看到 EBITDA 有所下降。我們是否將我們為 23 財年給出的指導視為 EBITDA 利潤率的可持續水平，或者我們是否認為隨著更多國際業務在 2024 年及以後上線，可能會有進一步的壓力？

Hello, Gokul. This is William. I think in terms of the cloud service provider, I think number 1, they're all making new business plan right now based on the current environment. The assumption - previously a lot of overhead is in China, like lockdown policy. Now it's gone, it's over. Another is the new government [accepted] all the structure and all the platform.

你好，戈庫爾。這是威廉。我認為就雲服務提供商而言，我認為第一，他們現在都在根據當前環境制定新的業務計劃。假設——以前很多開銷都在中國，比如封鎖政策。現在沒了，完了。另一個是新政府[接受]所有結構和所有平台。

They made a couple of times statements to support the platform and the social media as a private company, support their growth, continued growth in China. So, I think our customer is also very encouraged by the current environment, so they are making a new business plan right now. In general, I think based on my conversation with our largest customers, with our top 3 customers, they're all very encouraged.

他們發表了幾次聲明，支持該平台和社交媒體作為一家私營公司，支持他們的發展，在中國的持續發展。因此，我認為我們的客戶也對當前環境感到非常鼓舞，因此他們現在正在製定新的業務計劃。總的來說，我認為根據我與我們最大的客戶、前 3 大客戶的談話，他們都非常受鼓舞。

I think in terms of business plan, it definitely will boost in the next few quarters but in terms of move-in, there is a lot of [app] effect to impact the move-in in terms of the shipment, in terms of their previous -- they still have some inventory. So, in general that's why we still very conservatively assume cloud service provider move-in pace still maintain a [sort of] level, a neutral level, not aggressive, so it's normal.

我認為就商業計劃而言，它肯定會在接下來的幾個季度內得到提升，但就搬入而言，有很多 [app] 影響影響搬入的出貨量，就他們而言previous -- 他們還有一些存貨。所以，總的來說，這就是為什麼我們仍然非常保守地假設雲服務提供商的進駐步伐仍然保持一個[某種]水平，一個中性水平，而不是積極的，所以這是正常的。

So, I think given the whole environment looks like it will improve in the next few quarters.

因此，我認為鑑於整個環境看起來會在接下來的幾個季度有所改善。

With regard to adjusted EBITDA margin, I feel like this year's margin is probably the trough but it does depend on several different drivers. One of course is pricing. Another topic for discussion, but we feel like pricing has bottomed and there's a setup which could see pricing recover in two to three years.

關於調整後的 EBITDA 利潤率，我覺得今年的利潤率可能處於低谷，但這確實取決於幾個不同的驅動因素。其中之一當然是定價。另一個討論話題，但我們覺得定價已經觸底，並且有一種設置可以看到定價在兩到三年內恢復。

Secondly is power tariffs. The import fuel cost has started to come down but we haven't seen that reflected in power tariffs yet and even if it is reflected, it wouldn't benefit us this year. It could benefit us in future years and Chinese government policy may influence it, if the government wishes to see power tariffs come down, as was their tendency historically.

其次是電費。進口燃料成本已經開始下降，但我們還沒有看到電價反映出來，即使反映出來，今年也不會對我們有利。如果政府希望看到電價下降，這可能會在未來幾年使我們受益，並且中國政府的政策可能會影響它，就像他們歷史上的趨勢一樣。

Then the third part is the international where we are creating significant value or we will create significant value in future but at the moment it's EBITDA negative. I think it will be EBITDA breakeven in the first half of next year but that's still depressing on the margin. So, it will take until 2025 before the EBITDA margin of international phase is in the 13% (inaudible), so that growth track will persist for some time.

然後第三部分是國際，我們正在創造重要價值，或者我們將在未來創造重要價值，但目前它是 EBITDA 負值。我認為明年上半年將實現 EBITDA 盈虧平衡，但這仍然令人沮喪。因此，國際階段的 EBITDA 利潤率要到 2025 年才能達到 13%（聽不清），這樣增長軌道將持續一段時間。

I think for forecasting purposes, maybe use this year as a trough and then see a slight step up over the next couple of years as phase (inaudible).

我認為出於預測目的，可以將今年作為低谷，然後在未來幾年作為階段（聽不清）看到輕微的上升。

Got it. Thank you.

知道了。謝謝。

Thank you. We'll now take our next question. Please stand by. It is from the line of Frank Louthan from Raymond James. Please go ahead.

謝謝。我們現在開始下一個問題。請待命。它來自 Raymond James 的 Frank Louthan 血統。請繼續。

Great, thank you. Can you comment on the state of the market for the capital recycling and the appetite for those assets? Is it the same or better or worse than when you originally put this plan together? I apologize if I missed this but can you quantify the amount of capital recycling you expect to do in each of the next two years and is this the low for CapEx this year? Thank you.

太好了謝謝。您能否評論一下資本回收市場的狀況以及對這些資產的需求？與您最初制定此計劃時相比，它是否相同、更好或更差？如果我錯過了這一點，我深表歉意，但你能否量化你預計在未來兩年每年進行的資本回收量，這是今年資本支出的最低點嗎？謝謝。

Let's start with the numbers. What I showed was that in 2023 our free cash flow before financing is negative by around $2.5 billion. Some of that can be financed by drawing down on project finance facilities and then the remainder needs to be financed with our capital. Having done that convertible bond in January, assuming we go ahead and repurchase the [CB as is possible], on a net basis we increased our financial resources.

讓我們從數字開始。我展示的是，到 2023 年，我們融資前的自由現金流為負值約 25 億美元。其中一些可以通過提取項目融資設施來融資，然後其餘部分需要用我們的資金來融資。在 1 月份完成可轉換債券後，假設我們繼續並回購 [CB 盡可能]，我們在淨基礎上增加了我們的財務資源。

I think pro forma we have around RMB9 billion of cash, so that is available to be allocated to China, to be allocated to international, if we choose to do so. But we try to prioritize raising additional capital, recycling capital at the country level before we allocate out our cash.

我認為備考我們有大約 90 億元人民幣的現金，如果我們選擇這樣做，可以將其分配給中國，分配給國際。但在我們分配現金之前，我們試圖優先籌集額外資金，在國家層面回收資金。

In China, if we assume that our target for this year is to recycle around RMB1 billion to RMB2 billion, we are already 10 months down the road of working on our offshore China data center fund. We have the regulatory approval. We signed the limited partnership agreement. We also signed the sale and purchase agreement for the first asset to be transferred to that fund and that will realize cash proceeds to us net of what we put into the fund of RMB1.45 billion.

在中國，如果我們假設今年的目標是回收約 10 億至 20 億人民幣，那麼我們已經用了 10 個月的時間來建設我們的離岸中國數據中心基金。我們有監管部門的批准。我們簽署了有限合夥協議。我們還簽署了轉讓給該基金的第一個資產的買賣協議，這將為我們實現現金收益扣除我們投入該基金的 14.5 億元人民幣。

So, that goes a substantial way to fulfilling whatever requirement we have this year. Chances are that next year, the requirement will be similar, if not less, because operating cash flow will hopefully increase and CapEx I don't expect to be higher. It might be lower, so that negative free cash for financing might be a smaller number.

因此，這對滿足我們今年的任何要求都有很大的幫助。很有可能明年的要求會類似，甚至更少，因為經營現金流有望增加，而資本支出我預計不會更高。它可能會更低，因此用於融資的負自由現金可能會更小。

I don't think it's very challenging for us to do monetizations at this scale. We have a substantial amount of capacity in this offshore China Data Center Fund to do more deals. We've been working for some time on an onshore equivalent and we're now in the process of signing a formal term sheet, a framework agreement. An asset has been identified and initial diligence done by the investor, which would also recycle at least a few hundred million RMB of additional capital.

我認為以這種規模進行貨幣化對我們來說不是很有挑戰性。我們在這個離岸中國數據中心基金中擁有大量能力來進行更多交易。我們已經在陸上等價物上工作了一段時間，現在我們正在簽署正式的條款清單，即框架協議。投資方已經確定了一項資產並進行了初步盡職調查，這也將回收至少數億元人民幣的額外資本。

Then just looking more broadly, the REIT market in China is beginning to really take shape. There's a lot of interest. We're being approached continuously by investors and banks looking to structure something involving data center assets. I think it's an asset class that attracts a lot of interest in China. For the China REIT market regulations, it's really designed for stabilized assets. With these funds, we made the decision that it suited our purposes to focus on people, projects that were still under development, de-risked to a degree but under development.

那麼從更廣泛的角度來看，中國的REITs市場開始真正形成。有很多興趣。尋求構建涉及數據中心資產的東西的投資者和銀行不斷與我們接洽。我認為這是一種在中國引起很大興趣的資產類別。中國REITs的市場監管，真的是為穩定資產設計的。有了這些資金，我們決定將重點放在人員、仍在開發中、在一定程度上降低風險但仍在開發中的項目上，這符合我們的目的。

But that could be a steppingstone towards virtually being able to access the REIT market. So I think we're very comfortable, I think we're probably far better positioned than anyone in having potentially an offshore, an onshore and a lot of banks chasing us for a data center REIT, so that shouldn't be a problem.

但這可能是邁向幾乎能夠進入 REIT 市場的墊腳石。所以我認為我們非常自在，我認為我們可能比任何人都更有可能擁有離岸、在岸和許多銀行追逐我們的數據中心房地產投資信託基金，所以這不成問題。

Okay, great. Thank you.

好的，太好了。謝謝。

Thank you. We will now take our next question, please stand by. This is from the line of Joel Ying from Nomura. Please go ahead.

謝謝。我們現在開始下一個問題，請稍候。這是來自野村的 Joel Ying 的說法。請繼續。

Hi, thank you for taking my questions. I have just one quick one, question about China market. So we are seeing the latest news about AI technology (inaudible) so do we actually see any potential demand arising from the market about the AI data centers? Do we expect the AI data centers will be, could be the outsourcing by companies like GDS third parties or some of the cloud companies who do the self-building things so will be outsourced or self-build. Thank you.

你好，謝謝你回答我的問題。我只有一個快速問題，關於中國市場的問題。因此，我們看到了有關 AI 技術的最新消息（聽不清），那麼我們是否真的看到了市場對 AI 數據中心產生的任何潛在需求？我們是否預計 AI 數據中心將是 GDS 第三方等公司的外包，或者一些自建的雲公司將被外包或自建。謝謝。

Yes, I think you are right. I think that now everybody focused on the ChaGPT, but they forget that in China this is already - a lot of the big players already start to use the AI. AI is also a very hot topic in China and we also believe this will be the new - will drive the new wave of the demand and definitely GDS our product, our location, all fit the AI pipe demand in future, in terms of power densisty, in terms of total power capacity and the locations where we are.

是的，我認為你是對的。我認為現在每個人都專注於 ChaGPT，但他們忘記了在中國這已經 - 許多大玩家已經開始使用 AI。人工智能在中國也是一個非常熱門的話題，我們也相信這將是新的——將推動新一輪的需求浪潮，當然 GDS 我們的產品，我們的位置，在功率密度方面都符合未來人工智能管道的需求，就總功率容量和我們所在的位置而言。

So I think we are very encouraged by the new wave of demand. This will affect our business in the next few years and just what's happening in the last - eight years ago when the cloud starts. So I think we are very happy. I think definitely I think the - because AI type demands ask for more high power density. It's very difficult to build by themselves, so outsourcing will be the trend, that's what we believe.

所以我認為我們對新一波需求感到非常鼓舞。這將影響我們未來幾年的業務，以及最近發生的事情 - 八年前云開始時。所以我覺得我們很幸福。我認為我肯定認為 - 因為 AI 類型要求要求更高的功率密度。自己搭建很難，所以外包會是趨勢，我們是這樣認為的。

Thank you very much.

非常感謝。

Thank you, we'll now take our next question, please stand by. Just on the line of Edison Lee from Jefferies. Please go ahead.

謝謝，我們現在開始下一個問題，請稍候。就在 Jefferies 的 Edison Lee 的線上。請繼續。

Hi, thank you very much for taking my questions. My first question is about your build-out schedule or your delivery schedule. I found that in 2023, 85% of your deliveries had actually taken place in the second half, only 15% in the first half. So I wonder if that is driven by your demand assessment, or driven by your construction schedule. Okay, that's number 1.

你好，非常感謝你回答我的問題。我的第一個問題是關於你們的擴建計劃或交付計劃。我發現在2023年，你們85%的交付實際上發生在下半年，只有15%發生在上半年。所以我想知道這是由您的需求評估驅動的，還是由您的施工進度驅動的。好吧，這是第一名。

Number 2 is on your guidance for 2023, obviously the EBITDA growth lagged behind the revenue growth. If you take out international business, what do you think EBITDA growth can be in 2023?

第二是您對 2023 年的指導，顯然 EBITDA 增長落後於收入增長。如果除去國際業務，您認為 2023 年的 EBITDA 增長可以達到多少？

Lastly, one of your peers recently said that major cloud service providers in China have stopped self-building and I don't know how true that is, but what is your view on the cloud service provider self-building program, given the current state of the market? Thank you.

最後，您的一位同行最近說中國主要的雲服務提供商已經停止自建，我不知道這是不是真的，但是您對雲服務提供商的自建計劃有何看法，以目前的狀態市場？謝謝。

The first part of our delivery schedule, we've slowed down pretty much our entire construction program. I think there are more than 20 projects in that program, but as you know, all those projects have customer commitments and those customer commitments have a delivery date.

我們的交付計劃的第一部分，我們幾乎放慢了整個建設計劃。我認為該計劃中有 20 多個項目，但如您所知，所有這些項目都有客戶承諾，並且這些客戶承諾都有交付日期。

So our ability to slow down depends on the customer agreeing to take delivery at a later date. Not all of them wish that to happen and some of them would like us to keep to the original delivery schedule, which is of course perfectly fine by us. We're just trying to manage out the occurrence of our CapEx to shorter the lead time between when we spend money and when the customers move in and start to generate income. So that's really what's behind the numbers.

所以我們放慢速度的能力取決於客戶同意在以後提貨。並非所有人都希望這種情況發生，他們中的一些人希望我們保持原來的交貨時間表，這對我們來說當然是完美的。我們只是試圖控制我們資本支出的發生，以縮短我們花錢和客戶搬進來並開始產生收入之間的準備時間。這就是數字背後的真正原因。

We do have a substantial amount of capacity in service, which is not yet revenue generating. Our utilization rate is 71%. When you have a portfolio in service as large as ours and the commitment rate of 95%, utilization rate 71%, so that means there's 24% which is committed but not utilized. That's a big number. That's our backlog for area in service, 120,000 square meters.

我們確實有大量的服務能力，但尚未產生收入。我們的利用率是 71%。當您擁有與我們一樣大的服務組合併且承諾率為 95%、利用率為 71% 時，這意味著有 24% 已承諾但未利用。這是一個很大的數字。這是我們積壓的服務面積，120,000 平方米。

So that could move in practically with no additional CapEx, so you've got to take that into consideration, right? The completion of the projects under construction is not driving - it's not the only growth driver where you have so much move-in ready capacity. William, would you like to answer the question about self-build whilst I...

所以這實際上可以在沒有額外資本支出的情況下進行，所以你必須考慮到這一點，對吧？在建項目的完成並沒有推動 - 它不是您擁有如此多的準備就緒能力的唯一增長動力。威廉，你願意在我...的時候回答關於自建的問題嗎？

What was the question?

問題是什麼？

The question is that one of your peers recently said that very big cloud service providers in fact will stop self-building. They have been...

問題是你的一位同行最近說，非常大的雲服務提供商實際上將停止自建。他們已...

Yes, I think this is the topic, I think here. It's not only one cloud service provider in terms of the discussion. I think I remember in the last couple of earnings calls, I think we are the largest builder in China. We have the skill advantage. I think finally our - some of our customers start to realize that. So I think in terms of economics perspective, they realize it's not very efficient.

是的，我認為這就是主題，我想在這裡。就討論而言，它不僅僅是一家云服務提供商。我想我記得在最近幾次財報電話會議上，我認為我們是中國最大的建築商。我們有技術優勢。我想我們的一些客戶終於開始意識到這一點。所以我認為從經濟學的角度來看，他們意識到這不是很有效率。

So I think this is the topic, discussion internally. So we are willing to - we are trying to encourage this for their future. Some of the cloud also talk about where their sales and assets are, we are also considered about this option.

所以我認為這是內部討論的主題。所以我們願意 - 我們正努力為他們的未來鼓勵這一點。有的雲也講了他們的銷售額和資產在哪裡，我們也在考慮這個選項。

It's also about the EBITDA growth rate excluding international. We allocate SG&A to international using sound accounting principles. With that allocation, the EBITDA of international is negative about RMB100 million in 2023. So if you like, you can add that back and that's what GDS looks like without international.

這也是關於不包括國際的 EBITDA 增長率。我們使用健全的會計原則將 SG&A 分配給國際。有了這個分配，到 2023 年，國際業務的 EBITDA 約為 1 億元人民幣。所以如果你願意，你可以把它加回來，這就是沒有國際業務的 GDS 的樣子。

Okay, so on the revenue side, do you have anything predicted for 2023?

好的，在收入方面，您對 2023 年有什麼預測嗎？

Yes, I think about - I'm just looking here, 1.7% of our revenue comes from international this current year.

是的，我想 - 我只是在這裡看，今年我們 1.7% 的收入來自國際。

Okay, got it. Thank you very much, Dan.

好，知道了。非常感謝你，丹。

Thank you, I'd now like to turn the call back over to the Company for closing remarks.

謝謝，我現在想把電話轉回給公司作結束語。

Thank you all once again for joining us today. If you have further questions, please feel free to contact GDS Investor Relations through the contact information on our website or the Piacente Group Investor Relations. Next time see you, bye-bye.

再次感謝大家今天加入我們。如果您還有其他問題，請隨時通過我們網站上的聯繫信息或 Piacente Group 投資者關係部聯繫 GDS 投資者關係部。下次見，再見。

Thank you, this concludes this conference call. You may now disconnect your line, thank you.

謝謝，本次電話會議到此結束。您現在可以斷開您的線路，謝謝。