GDS Holdings Ltd (GDS) 2022 Q1 法說會逐字稿

Hello ladies and gentlemen, thank you for standing by for GDS Holdings Limited's First Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. After Management's prepared remarks there will be a question and answer session. Today's conference call is being recorded.

女士們、先生們大家好，感謝您出席萬國數據控股有限公司 2022 年第一季財報電話會議。此時所有參與者都處於只聽模式。管理階層準備好發言後，將進行問答環節。今天的電話會議正在錄音。

I would now like to turn the call over to your host, Miss Laura Chen, Head of Investor Relations for the Company. Please go ahead Laura.

現在我想把電話轉給你們的主持人，公司投資人關係主管陳勞拉女士。請勞拉繼續。

Thank you. Hello everyone, welcome to the First Quarter 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，歡迎參加萬國數據2022年第一季業績電話會議。該公司的業績今天早些時候透過 Newswire Services 發布並發佈在網路上。我們將在本次電話會議中參考的摘要簡報可以從我們的投資者關係網站 Investors.gds-services.com 查看和下載。

Leading today's call is Mr William Huang, GDS Founder, Chairman and the Chief Executive Officer, who will provide an overview of our business strategy and performance. Mr Dan Newman, GDS Chief Financial Officer, will then review the financial and operating results. Ms 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、董事長兼執行長黃威廉先生主持，他將概述我們的業務策略和業績。萬國數據財務長 Dan Newman 先生隨後將審查財務和營運績效。我們的營運長 Jamie Khoo 女士也可以回答問題。

Before we continue, please note that today's discussion 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. As such, the Company's results may be materially different from the views expressed today.

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做出的前瞻性陳述。前瞻性陳述涉及固有的風險和不確定性。因此，公司的業績可能與今天表達的觀點有重大差異。

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 obligations to update any forward-looking statements, except as required under applicable law.

有關這些以及其他風險和不確定性的更多資訊包含在公司向美國證券交易委員會提交的招股說明書中。除適用法律要求外，本公司不承擔更新任何前瞻性聲明的義務。

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

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 財務資訊以及未經審計的非 GAAP 財務指標的討論。萬國資料的新聞稿包含未經審計的非公認會計準則衡量標準與未經審計的最直接可比較的公認會計準則衡量標準的調節表。

I will now turn the call over to GDS Founder, Chairman and Chief Executive Officer, William. Please go ahead, William.

我現在將把電話轉給萬國數據創辦人、董事長兼執行長 William。請繼續，威廉。

Thank you. Hello everyone, this is William. Thank you for joining us on today's call. We are operating in a difficult environment. Everyone is having to deal with unprecedented challenges, including the recent COVID lockdown in China. GDS business is resilient and defensive.

謝謝。大家好，我是威廉。感謝您參加今天的電話會議。我們在一個困難的環境中運作。每個人都必須應對前所未有的挑戰，包括最近中國的新冠疫情封鎖。 GDS 業務具有彈性和防禦性。

We generate recurring revenues, underpinned by long-term contract with high quality customers. Despite the challenges I am pleased to report a solid set of the result for the first quarter. We grew revenue by 32%, and adjusted EBITDA by 29% year-on-year.

在與優質客戶的長期合約的支持下，我們產生經常性收入。儘管面臨挑戰，我很高興地報告第一季的一系列可靠結果。我們的營收年增了 32%，調整後的 EBITDA 年成長了 29%。

We continued to win new business with 18,000 square meters of net additional customer commitments. We strengthened our funding position by raising US$620 million from a convertible bond issued to strategic investors, and completed a further US$530 million of project financing.

我們持續贏得新業務，新增客戶承諾淨面積達 18,000 平方公尺。我們透過向策略投資者發行可轉債籌集了 6.2 億美元，增強了資金實力，並完成了 5.3 億美元的專案融資。

In the near-term we must deal with the challenges to the best of our ability. However at the same time we will remain focused on strengthening our strategic position for the medium-term and the longer-term through, further developing our customer franchise, adding to our resource pipeline, consolidating the market as opportunities arise, and accelerating our regional expansion.

近期我們必須盡力應對挑戰。但同時，我們將繼續專注於加強我們的中長期策略地位，進一步發展我們的客戶群，增加我們的資源管道，在機會出現時鞏固市場，並加速我們的區域擴張。

With scarce resource already secured, greater customer relationships and a proven track record, we have locked in enormous growth potential which will materialize in the future. It is just a matter of time.

憑藉已經獲得的稀缺資源、更廣泛的客戶關係和良好的業績記錄，我們已經鎖定了未來將實現的巨大成長潛力。只是時間問題。

So turning to the slide 4. Starting from the late-February, mass city lockdowns happened in many areas of China because of the COVID outbreak. We have a total of 82 data centers in service out of which 58 data centers have gone through lockdown situations. Over 30 data centers are still locked down today.

轉向幻燈片 4。從 2 月下旬開始，由於新冠肺炎疫情的爆發，中國許多地區發生了大規模的城市封鎖。我們共有 82 個正在使用的資料中心，其中 58 個資料中心已處於鎖定狀態。至今仍有 30 多個資料中心處於封鎖狀態。

During these lockdowns around 880 people were isolated inside our data centers, including 660 GDS employees, and 220 from our customers. We needed to keep our data centers in continuous operation, while keeping the people inside safe and healthy. We never failed to deliver.

在這些封鎖期間，大約 880 人被隔離在我們的資料中心內，其中包括 660 名 GDS 員工和 220 名客戶。我們需要保持資料中心持續運行，同時確保內部人員的安全和健康。我們從未失敗過。

All of our data centers are running as usual, without interruption. All the people inside are taken care of. We really appreciated every effort from our data center employees. It is also highly appreciated and recognised by our customers.

我們所有的資料中心都照常運行，沒有中斷。裡面的人都被照顧到了。我們非常感謝資料中心員工的一切努力。也得到了廣大客戶的高度讚賞與認可。

Turning to slide 5. The first quarter of the year is always a slower season because of the Chinese New Year. On top of this, lockdowns also impacted the move-in rate. Nonetheless, we still achieved over 12,000 square meters of net additional area utilised for the quarter. Our utilization rate increased to 67%.

轉到投影片 5。由於農曆新年，每年第一季總是淡季。除此之外，封鎖也影響了入住率。儘管如此，本季我們仍實現了超過 12,000 平方米的淨額外利用面積。我們的利用率提高到 67%。

As shown on slide 6 and 7, we have always maintained a high commitment rate for our area in service and area under construction. We have a very large backlog totaling 243,000 square meters, which is equivalent 73% of our area utilised. It provided us with high visibility to future growth. Our backlog is solid.

如投影片 6 和 7 所示，我們對服務區和在建區始終保持較高的承諾率。我們有大量積壓訂單，總計 243,000 平方米，相當於我們已使用面積的 73%。它為我們提供了對未來成長的高度可見性。我們的積壓訂單很充足。

Our data centers are concentrated in Tier 1 market where supply is increasingly scarce. Our customers need this resource. We will continue to deliver the backlog. As I said, it is just a matter of time.

我們的資料中心集中在供應日益稀缺的一級市場。我們的客戶需要這種資源。我們將繼續交付積壓的訂單。正如我所說，這只是時間問題。

Turning to slide 8. We have scaled down our capacity delivery this year to align with the current slower environment. In the first quarter of 2022 we brought 4500 square meters of capacity into service, and initiated one new data center under construction, SH18 Phase 1, which is 68% backed by an anchor customer commitment.

轉向幻燈片 8。我們今年縮減了產能交付，以適應當前放緩的環境。 2022 年第一季度，我們投入使用了 4500 平方米的容量，並啟動了一個正在建設的新資料中心 SH18 一期，該資料中心的 68% 得到了主力客戶承諾的支持。

Turning to the slide 9 and 10. While delivery is slower for some customers, there are still other customers out there with substantial new requirements. In 1Q22 we booked 18,000 square meters of new commitments, including three hyperscale orders. Two came from the existing cloud, and the large internet customers. Then the remaining one came from a new financial institution customer.

轉向投影片 9 和 10。雖然某些客戶的交付速度較慢，但仍有其他客戶提出了大量新要求。 2022 年第一季度，我們新簽訂了 18,000 平方公尺的訂單，其中包括三份超大規模訂單。其中兩個來自現有的雲端和大型網路客戶。然後剩下的一個來自一個新的金融機構客戶。

Turning to slide 11. Continuing the chain which we highlighted last quarter, financial institution and the large enterprises accounted for around 45% of new book in 1Q. We are still confident of achieving our full year sales target of around 90,000 square meters net add. From what we see in the pipeline, there could be large contributions from Hong Kong and South-East Asia than we thought before.

轉向投影片 11。繼續我們上季度強調的鏈條，金融機構和大型企業佔第一季新書的 45% 左右。我們仍有信心實現全年淨增加9萬平方公尺左右的銷售目標。從我們目前的情況來看，香港和東南亞的貢獻可能比我們之前想像的還要大。

Turning to slide 12. I have been in Singapore for the past few months, along with our COO Jamie. We have made substantial progress in our regionalization plan. According to the Cushman & Wakefield, Singapore is a Top 5 data center market globally. It was one of the fastest growing. We know from our home market customers how much latent demand there is for Singapore. Currently Singapore governments has elected to pursue a moratorium on data center constructions.

轉向幻燈片 12。過去幾個月我和我們的營運長傑米 (Jamie) 一直在新加坡。我們的區域化計劃取得了實質進展。根據 Cushman & Wakefield 的數據，新加坡是全球排名前 5 名的資料中心市場。它是增長最快的之一。我們從國內市場客戶了解到新加坡的潛在需求有多大。目前，新加坡政府已選擇暫停資料中心建置。

While it may soon allow some new development, the numbers clearly indicate that excess demand will have to go elsewhere. We are one of the first movers to establish hyperscale green data center projects in close proximity to Singapore. To our understanding, there are no significant legal constraints on the flow of data cross-border between Singapore, Malaysia and Indonesia.

雖然它可能很快就會出現一些新的發展，但數字清楚地表明，過剩的需求將不得不流向其他地方。我們是新加坡附近建立超大規模綠色資料中心專案的先驅之一。據我們了解，新加坡、馬來西亞和印尼之間的數據跨境流動不存在重大法律限制。

Our sites are therefore well-placed to serve both as regional hub, and the domestic market. Furthermore we are the only peer to have established projects both in Johor, Malaysia, to the north of Singapore, and at Batam, Indonesia, to the south of Singapore. The first phase of our 54 megawatt projects at Nusajaya Tech Park, Johor, is now under construction.

因此，我們的工廠非常適合作為區域中心和國內市場。此外，我們是唯一一家在新加坡北部的馬來西亞柔佛州和新加坡南部的印尼巴淡島都建立了計畫的同行。我們位於柔佛州努沙再也科技園區的 54 兆瓦專案第一期目前正在興建中。

To compliment this site we recently signed a partnership with YTL Power to co-develop 168 megawatt of capacity across an [initial design of 8 individual] (corrected by the company after the call) facilities at the visionary YTL green data center park, Johor, approximately 30 kilometers from Singapore. This data center will be powered by on-site solar generation.

為了補充這個網站，我們最近與楊忠禮電力簽署了合作夥伴關係，在柔佛州富有遠見的楊忠禮綠色數據中心園區，共同開發[8個個體的初始設計]（公司在通話後更正）設施的168兆瓦容量，距離新加坡約30公里。該資料中心將由現場太陽能發電供電。

We have completed the land purchase in Nongsa Digital Park, Batam. The construction of the first phase of our 28 megawatt project will start in the next couple of months.

我們已完成巴淡島 Nongsa Digital Park 的土地購買。我們的 28 兆瓦項目第一階段的建設將在未來幾個月內開始。

According to the Cushman & Wakefield, Hong Kong is top 10 data center market globally which offers excellent network connectivity and availability of all major cloud services. In the first quarter, we signed a build-to-suit lease for HK3. Together with our existing projects, HK1, HK2 and HK4, this will give us a continued supply of high-quality data center capacity over the next five years, all concentrated in the favorite West Kowloon area. This is an extraordinary achievement considering how difficult it is to solve for real estate in Hong Kong.

根據 Cushman & Wakefield 的數據，香港是全球十大資料中心市場，提供卓越的網路連線和所有主要雲端服務的可用性。第一季度，我們簽署了 HK3 的客製化租賃。加上我們現有的HK1、HK2和HK4項目，這將為我們在未來五年持續供應優質資料中心容量，全部集中在最受歡迎的西九龍地區。考慮到解決香港房地產問題有多麼困難，這是一項非凡的成就。

In Macau we are launching the first ever carrier-neutral data center project to meet new internet and the digitalization requirements. Across Southeast Asia, Hong Kong and Macau, we now have visibility for over 300 megawatts of capacity. Our customers are very excited about this unique strategic presence. We expect to announce several anchor orders over the course of this year. Leveraging the strength of our franchise in Mainland China, we believe that within a short period of time we will create significant additional value for our shareholders through regional expansion.

在澳門，我們正在啟動第一個運營商中立的資料中心項目，以滿足新的互聯網和數位化要求。目前，我們在東南亞、香港和澳門的產能已超過 300 兆瓦。我們的客戶對這種獨特的策略存在感到非常興奮。我們預計今年將宣布幾項主力訂單。憑藉我們在中國大陸的特許經營優勢，我們相信在短時間內，我們將透過區域擴張為股東創造顯著的附加價值。

Now I will hand over to Dan for the financial and the operating review. Thank you.

現在我將把財務和營運審查交給 Dan。謝謝。

Thank you, thank you William. Starting on slide 15 where we strip out the contribution from equipment sales and the effects of FX changes. In 1Q22 our service revenue grew by 2.6%, underlying adjusted gross profit grew by 2.3% and underlying adjusted EBITDA grew by 2.4% quarter on quarter. Our underlying adjusted EBITDA margin was 47.1% compared to 47.2% in the previous quarter.

謝謝你，謝謝威廉。從投影片 15 開始，我們剔除設備銷售的貢獻和外匯變化的影響。 2022 年第一季度，我們的服務收入較上季成長 2.6%，基本調整後毛利成長 2.3%，基本調整後 EBITDA 較上季成長 2.4%。我們的基本調整後 EBITDA 利潤率為 47.1%，而上一季為 47.2%。

Turning to slide 16. Service revenue growth is driven mainly by delivery of the committed backlog and closing of acquisitions. Net additional area utilized during 1Q22 was 12,545 square meters. Around 7500 square meters was in Tier 1 markets affected by lockdowns and 5000 square meters was in BOT projects in unaffected remote areas. During the second quarter, we expect a similar level of net additional area utilized.

轉向投影片 16。服務收入成長主要由承諾積壓訂單的交付和收購的完成所推動。 2022 年第一季的淨新增使用面積為 12,545 平方公尺。約7500平方米是受封鎖影響的一級市場，5000平方米是未受影響的偏遠地區的BOT項目。我們預計第二季的淨附加面積利用率將達到類似水準。

Monthly service revenue per square meter was RMB2296 per square meter per month, down by 2.4% compared to the previous quarter. It is mainly due to dilution from move-in at BOT and edge of town projects. For FY22 we still expect MSR to decline by mid-single digits in percentage terms year on year.

每平方公尺月度服務收入為人民幣2,296元/平方公尺/月，較上季下降2.4%。這主要是由於 BOT 和城鎮邊緣項目的入駐造成稀釋​​。對於 2022 財年，我們仍預期 MSR 會以百分比計算將年減中個位數。

Turning to Slide 17. Our underlying adjusted gross profit margin was 52.4% for 1Q22 compared to 52.5% in the previous quarter. As a result of higher coal prices and a raising of the ceiling on thermal power tariffs in China, we experienced around 10% increase in unit power cost in 1Q22 as compared to the prior quarter. On a per kilowatt hour basis, we are now paying around 15% more than we were a couple of quarters ago.

轉向投影片 17。2022 年第一季我們的基本調整後毛利率為 52.4%，而上一季為 52.5%。由於煤炭價格上漲以及中國火力發電電價上限的提高，2022 年第一季單位電價較上一季上漲約 10%。以每千瓦時計算，我們現在支付的費用比幾個季度前高出約 15%。

Thermal power tariffs appear to have stabilized at the current level. As we indicated on previous calls, we estimate that elevated power tariffs will have around a 1% to 1.5% point impact on our profit margin for this year, however over time, we expect thermal power tariffs to normalize.

火電電價似乎已穩定在目前水準。正如我們在先前的電話會議中表示的那樣，我們估計電價上漲將對我們今年的利潤率產生約 1% 至 1.5% 的影響，但隨著時間的推移，我們預計火電電價將正常化。

Turning to slide 18. Our CapEx for 1Q22 was RMB4.9 billion, consisting of RMB2.2 billion for organic CapEx and RMB2.7 billion for acquisition consideration. As at the end of 1Q22 we had a liability of around RMB1.6 billion on our balance sheet in respect of deferred and contingent consideration payable for acquisitions which had closed by the end of the first quarter. We have a further RMB463 million for the acquisition of Shenzhen 11 which we announced during 1Q22 and closed in April. These amounts do not include the cost of buying out partner interests in a few of our projects.

轉向幻燈片 18。我們 22 年第一季的資本支出為人民幣 49 億元，其中包括人民幣 22 億元的有機資本支出和人民幣 27 億元的收購代價。截至2022年第一季末，我們的資產負債表上有約人民幣16億元的負債，涉及第一季末完成的收購的遞延和或有對價。我們還有 4.63 億元人民幣用於收購深圳 11，我們於 2022 年第一季宣布並於 4 月完成收購。這些金額不包括購買我們一些專案中合作夥伴權益的成本。

Looking at our financing position on slide 19. At the end of 1Q22 we had RMB11.3 billion, or US$1.8 billion, of cash in our balance sheet and our net debt to last quarter annualized adjusted EBITDA ratio was 7.0x. Our effective interest rate for 1Q22 was 4.7%, compared with 5.4% in the previous quarter, or 5.5% for the full year of 2021. During 1Q22 we successfully raised US$620 million through the issue of convertible senior notes with a 0.25% coupon and a seven year tenure. During 2Q22 we will reduce working capital loans, which is shown here as short-term debt, by around RMB2.3 billion, or US$350 million.

看看幻燈片19 上我們的融資狀況。截至2022 年第一季末，我們的資產負債表中有113 億元人民幣（即18 億美元）的現金，我們的淨債務與上季年化調整後EBITDA 的比率為7.0 倍。我們2022年第一季的實際利率為4.7%，上一季為5.4%，2021年全年為5.5%。2022年第一季度，我們透過發行票面利率為0.25%的可轉換優先票據成功籌集了6.2億美元，七年任期。 2022 年第二季度，我們將減少營運資金貸款（此處顯示為短期債務）約 23 億元人民幣（即 3.5 億美元）。

Turning to slide 20. As at the end of 1Q, we had total capacity in service and under construction of 660,000 square meters. Against this, we had total area committed by customers of 575,000 square meters. Assuming that we deliver all the backlog and sell out the small amount of remaining inventory, our area utilized or revenue generating capacity would increase by around 90%. The total cost to complete all existing projects is around RMB11.2 billion, or US$1.7 billion, which we can finance with existing resources. It is a relatively small amount of CapEx to generate a large amount of growth because we have already made most of the investment.

轉向投影片 20。截至第一季末，我們在役和在建總產能為 66 萬平方公尺。相比之下，我們的客戶承諾總面積為 575,000 平方米。假設我們交付所有積壓訂單並售出少量剩餘庫存，我們的使用面積或創收能力將增加約 90%。完成所有現有項目的總成本約為112億元人民幣（即17億美元），我們可以利用現有資源進行融資。只需相對少量的資本支出就能產生大量的成長，因為我們已經進行了大部分投資。

On top of our existing projects, we have secured another 460,000 square meters of pipeline held for future development. It's land and buildings with project approvals and energy quota, predominantly located in Tier 1 markets, which we believe is a very valuable asset.

除了現有項目外，我們還獲得了另外 460,000 平方米的管道供未來開發。它是擁有專案批准和能源配額的土地和建築物，主要位於一級市場，我們認為這是一項非常有價值的資產。

Turning to slide 21. Based on our performance in 1Q22 and what we know so far of the current quarter, we are still on track to deliver results within our original guidance range for revenue and adjusted EBITDA. This assumes progressive relaxation of lockdowns over the next one to two months and a moderate pick up in the move-in rate in the second half of the year. We think that this is a reasonable assumption to make at this point in time. Accordingly, we are leaving our original guidance unchanged.

轉向幻燈片 21。根據我們 2022 年第 1 季的業績以及本季度迄今為止的情況，我們仍有望在收入和調整後 EBITDA 的原始指導範圍內實現業績。這是假設未來一到兩個月逐步放鬆封鎖，且下半年入住率適度回升。我們認為這是目前所做的合理假設。因此，我們維持原來的指導不變。

We would now like to open the call to questions, so please operator.

我們現在想開始提問，請接線生回答。

Thank you. We will now begin the question-and-answer session. (Operator Instructions) Our first question comes from Tina Hou at Goldman Sachs. Please go ahead.

謝謝。我們現在開始問答環節。 （操作員指令）我們的第一個問題來自高盛的 Tina Hou。請繼續。

Hi, good morning, Management and thank you very much for your time. One question from me is that in terms of the overseas market, especially in Southeast Asia, in the longer term, say 5 to 10 years, how big of a potential market do you think it could be versus the domestic China market and what kind of growth rate can we expect from our projects in progress there. Thank you.

嗨，管理層早上好，非常感謝您抽出寶貴的時間。我想問一個問題，海外市場，特別是東南亞市場，從長遠來看，比如說5到10年，你認為相對於中國國內市場來說，它的潛在市場有多大，是什麼樣的？我們可以從我們在那裡正在進行的項目中預期增長率。謝謝。

Yes, I will answer first. I think the Southeast Asia market are mainly driven by the Chinese customer and the US player and we see the huge potential for the local domestic market because there is a large number of unicorns. The number of the unicorns increased very significantly in this region. [This indicates] (corrected by the company after the call) the future market has huge potential.

是的，我先回答。我認為東南亞市場主要是由中國客戶和美國玩家推動的，我們看到當地國內市場的巨大潛力，因為有大量的獨角獸。該地區獨角獸的數量顯著增加。 【這顯示】（公司電話更正）未來市場潛力大。

In terms of the population in this area, it's around 600 million population in this region. I think, over the time, I think the market will grow to a similar level of the Chinese market because let's say at least 50%, right, around 50% of the Chinese market. That's my view, but the market is still in the early stage. It's more like years ago in China but the potential is high. Yes, so in terms of the growth rate, I think the Southeast Asia market is the most fastest growing market in the world based on some analyst reports. Now that total amounts -- demand in current stage compared with China is still small, but we should be well positioned in this region. That's our thinking, yes.

就該地區的人口而言，該地區約有6億人口。我認為，隨著時間的推移，我認為該市場將增長到與中國市場類似的水平，因為至少佔中國市場的 50%，對，大約 50%。這是我的觀點，但市場仍處於早期階段。這更像是幾年前的中國，但潛力很大。是的，所以就成長率而言，根據一些分析師報告，我認為東南亞市場是全球成長最快的市場。現在，與中國相比，現階段的總需求量仍然很小，但我們應該在該地區處於有利地位。是的，這就是我們的想法。

Thank you William. Can I just have a quick follow up? So--

謝謝你威廉。我可以快速跟進嗎？所以 -

Oh yes, by the way, yes, by the way, based on my understanding the current total market in Southeast Asia is 2000 megawatt totally. Existing market I mean.

哦，是的，順便說一句，是的，順便說一句，根據我的了解，目前東南亞的總市場總計為 2000 兆瓦。我的意思是現有市場。

Got it.

知道了。

Yes.

是的。

Thank you, yes. So, my follow up would be, is our target customers also including the local and international companies in addition to the domestic Chinese customers and also what kind of IRR, our project IRRs, should we expect for the Southeast Asia projects?

謝謝，是的。那麼，我的後續問題是，除了中國國內客戶之外，我們的目標客戶是否還包括本地和國際公司，以及我們應該對東南亞項目期待什麼樣的IRR，我們的項目IRR？

Yes, in terms of customer I [think it is] (corrected by the company after the call) very clear. Our methodology is serve for all kinds of customers in this region, but of course the first priority is serving our intra-based customer which have implementation, the business implementation, in this region already. So, I think this is our first target. As you said, we are not just serving Chinese customers. We potentially will also practice to all the international players and also local internet and cloud player as well. In terms of the return, Dan, maybe you can add some color?

是的，就客戶而言，我[認為是]（公司在通話後更正）非常清楚。我們的方法是為該地區的各種客戶提供服務，但當然首要任務是為我們內部客戶提供服務，這些客戶已經在該地區實施了業務實施。所以，我認為這是我們的第一個目標。正如你所說，我們不僅僅是為中國客戶服務。我們也可能會向所有國際玩家以及本地網路和雲端玩家進行練習。在回報方面，Dan，也許你可以添加一些顏色？

Yes. I think the returns will be well up to the levels in China, probably towards the top end of the range of what we typically achieve in China right now.

是的。我認為回報將遠遠達到中國的水平，可能接近我們目前在中國通常實現的回報範圍的上限。

We have a favorable dynamic where the Singapore market is very constrained and there's a very substantial amount of excess demand. In the adjacent markets in Malaysia and Indonesia, development cost and the operating cost, including power tariffs, are substantially lower than Singapore.

我們有一個有利的動態，新加坡市場非常有限，而且有大量的過剩需求。在馬來西亞和印尼等鄰近市場，開發成本和包括電費在內的營運成本均大幅低於新加坡。

We already have a very good handle of what the development cost is going to be for us. We also have a pretty good idea of what the selling price is going to be for the initial orders because of course we've been in dialogue with potential customers for quite some time. So based on those inputs, we believe that we can offer a very competitive price for this nearshore capacity and still generate returns, as I indicated, which are compare at least on par if not towards the top end of the range of what we can achieve in China these days.

我們已經很好地掌握了我們的開發成本。我們也非常清楚初始訂單的售價是多少，因為我們當然已經與潛在客戶進行了相當長的對話。因此，根據這些投入，我們相信我們可以為這種近岸產能提供非常有競爭力的價格，並且仍然會產生回報，正如我所指出的，如果不是達到我們可以實現的範圍的上限，那麼至少可以與同等水平進行比較這些天在中國。

That's very clear, thank you very much.

這非常清楚，非常感謝。

Our next question comes from Jon Atkin from RBC Capital Markets. Please go ahead.

我們的下一個問題來自加拿大皇家銀行資本市場的喬恩·阿特金。請繼續。

Thank you. Two questions. One is I think the CapEx spend is unchanged, but you talked about a slowing schedule, so what is the offset there? Then on M&A, just your view on the M&A environment and how you view financing options going forward in case you needed [technical difficulty].

謝謝。兩個問題。一是我認為資本支出沒有變化，但你談到了進度放緩，那麼那裡的抵銷是多少？然後在併購方面，您對併購環境的看法以及您如何看待未來的融資選擇，以防您需要[技術困難]。

Yes, so I'll answer the questions, William. Firstly just to remind, we gave CapEx guidance a couple of months ago in the previous quarterly earnings of RMB12 billion for this year and in the script I gave a breakdown saying that it would be RMB8 billion organic, of which RMB6 billion was in China and RMB2 billion is in Hong Kong and Southeast Asia; RMB6 billion in Mainland China and RMB2 billion in Hong Kong and Southeast Asia. Then the balance of RMB4 billion would be acquisitions and land bank.

是的，所以我會回答這些問題，威廉。首先提醒一下，幾個月前，我們在上一季度收益中給出了今年120 億元人民幣的資本支出指引，在腳本中我給出了細分，表示有機資本支出為80 億元人民幣，其中60 億元來自中國， 20億元人民幣在香港及東南亞；中國大陸地區60億元人民幣，香港及東南亞地區20億元。那麼餘額40億元將用於收購和土地儲備。

So the acquisitions and land banking is a bottom-up estimate, so that's deals which have already been done. That number, no change. Out of that RMB4 billion, we've already incurred around RMB2.7 billion in the first quarter and we have the balance of payments, acquisition consideration and land purchase payments, which will mainly be made in the second quarter.

因此，收購和土地儲備是自下而上的估計，所以這是已經完成的交易。這個數字，沒有變化。在這40億元中，我們第一季已經產生了約27億元人民幣，我們的國際收支、收購代價和土地購買付款將主要在第二季支付。

For the remaining part, the RMB8 billion which is organic in Mainland China and regionally, we only incurred just over RMB2 billion out of the RMB8 billion in the first quarter, so that part, you could say, is in line with our quarterly run rate. I mean four quarters at that run rate would add up to, say, RMB8 billion. And in actual fact, because we've made adjustments to the delivery schedule, which of course involves a lot of coordination with customers as well, it takes some time for that to work its way through to CapEx paid.

剩下的80億元是中國大陸和地區的有機部分，我們一季度的80億元中只產生了20億元多一點，所以可以說這部分與我們的季度運行率是一致的。 。我的意思是，以這個運行速度，四個季度加起來就是 80 億元。事實上，因為我們已經對交付時間表進行了調整，這當然也涉及與客戶的大量協調，所以需要一些時間才能完成資本支出支付。

First of all we have to slow down the inccurrence of CapEx and then it gets reflected in the timing and amount of CapEx payments. But I think the CapEx in the second half of the year could be somewhat less than it will be in the first half of the year.

首先，我們必須減緩資本支出的發生，然後它將反映在資本支出支付的時間和金額上。但我認為下半年的資本支出可能會比上半年減少。

On M&A, I think your question, Jon, you were breaking up, but you were saying how would we finance M&A?

關於併購，我想你的問題是，喬恩，你們分手了，但你說我們如何為併購融資？

Yes, you talked about the RMB1.7 billion that you made to meet your current development pipeline, but you wanted to get more aggressive on expansion or to achieve organic growth and how you view the financing environment?

是的，您談到了為滿足當前的開發計劃而籌集的17億元人民幣，但您希望更加積極地擴張或實現有機增長，您如何看待融資環境？

Yes. Well if I may, I'll start off by answering that we are fully financed for what we've committed to already. I mean that's always been our approach; we set aside cash to capitalize the projects with equity and we secure project debt as early as we can in the lifecycle of each individual project and then we have some surplus resources over and above that.

是的。好吧，如果可以的話，我首先會回答說，我們已經為我們已經承諾的目標提供了充足的資金。我的意思是，這一直是我們的做法；我們留出現金以股本對專案進行資本化，並在每個專案的生命週期中儘早獲得專案債務，然後我們還有一些剩餘資源。

If there are opportunities that we wish to pursue, which could be acquisitions or it could be other new business opportunities, then we need to obtain the capital to be able to pursue those. I think that even in the current environment we have a very good range of options. Firstly we have to make a decision whether to do something through public capital raising or through private capital raising and then within public and private, there's a range of options.

如果我們希望抓住一些機會，可能是收購，也可能是其他新的商機，那麼我們需要獲得資本才能抓住這些機會。我認為即使在當前環境下，我們也有很多選擇。首先，我們必須決定是透過公共融資還是透過私人融資來做某事，然後在公共和私人內部，有一系列的選擇。

What I would highlight is that since 2016 when we IPO'd in the US, we've done four private placements, if you recall, with CyrusOne, with Ping An, with Hillhouse and then recently with Sequoia and sovereign wealth fund. That was equity convertible preferred and convertible bonds. We've also done two joint ventures, one with a sovereign wealth fund, one with CITIC Private Equity, the largest private equity firm in China and just recently we announced a co-development with YTL.

我要強調的是，自2016 年我們在美國IPO 以來，我們已經進行了四次私募，如果你還記得的話，分別是與CyrusOne、平安、高瓴資本以及最近與紅杉和主權財富基金的私募。那就是股權可轉換優先股和可轉換債券。我們也建立了兩家合資企業，一家與主權財富基金合作，一家與中國最大的私募股權公司中信私募股權投資公司合作，最近我們也宣布與楊忠禮機構共同開發專案。

These are all in the category of private capital raisings or accessing capital privately. So we did this during the six years that we've been a publicly listed company in the US. The business fundamentals we believe are still very solid. As we keep emphasizing, we have very high visibility for future growth from our asset base and from our backlog. There is very strong interest from private capital providers investing in this sector, particularly with market leaders.

這些都屬於私人融資或私人獲取資本的範疇。因此，我們在美國上市的六年就做到了這一點。我們認為業務基本面仍然非常穩固。正如我們不斷強調的那樣，我們對我們的資產基礎和積壓訂單的未來成長具有非常高的預見性。私人資本提供者，尤其是市場領導者，對投資該領域表現出濃厚的興趣。

So bottom line of this is that if there are opportunities that we wish to pursue, we will undoubtedly be able to access capital on reasonable terms, to be able to do what we wish to do.

因此，最重要的是，如果有我們希望追求的機會，我們無疑能夠以合理的條件獲得資本，以便能夠做我們想做的事情。

If I could ask one last question then, so the mix of internet versus enterprise versus cloud inside of China, you talked a little bit about FSI demand and so forth, so maybe just a little bit of an update on what you talked about in the script as well as last quarter?

如果我可以問最後一個問題，那麼中國境內互聯網與企業與雲端的混合，您談到了一些關於 FSI 需求等等，所以也許只是對您在劇本和上個季度一樣？

I don't know if William wants to add, but we talked last time, or we've talked actually for quite a few quarters about being positioned for where demand comes from and the demand profile changes over time. So during last year we saw significantly increased new business from financial institutions both domestic Chinese and foreign. We had some tremendous wins including most of the top 10 global banks and better banks on Wall Street.

我不知道威廉是否想補充，但我們上次談過，或者說我們實際上已經談了好幾個季度了，關於定位需求的來源以及需求狀況隨時間變化的情況。所以去年我們看到國內外金融機構的新業務大幅成長。我們取得了一些巨大的勝利，包括大多數全球十大銀行和華爾街更好的銀行。

In the first quarter, FSI and enterprise business was 45% of new bookings and in the second quarter it'll probably be a similar level, maybe 40%. That demonstrates that we've positioned ourselves and our asset base correctly. William, would you like to add something, what we're doing on the FSI enterprise side?

第一季度，FSI 和企業業務佔新預訂量的 45%，第二季度可能會保持類似水平，可能為 40%。這顯示我們對自己和資產基礎的定位是正確的。 William，您想補充我們在 FSI 企業方面正在做的事情嗎？

Yes, I think to diversify our customer base is always our goal, right, from day one. So that's what let us catch up any kind of growth from the different industry. If you look back last 10 years, we start from the enterprise customer and then we catch up the internet booming. Then we go to the cloud takeoff and now the demand also more balanced from the cloud internet and also the enterprise as well. So I think we have a very solid customer base that's allowed us to catch any kind of demand from the - because the market always changes. So right thing to do is always building your solid customer base, which we have, so now, so last quarter and this quarter, maybe last quarter and last few quarters, I think we saw the growth from the enterprise and the financial institution. Obviously the cloud a little bit of slowdown, right, but we still can meet our target. So since last year, we already saw that change, so last year we started to hire more, increase our sales people, to penetrate to the enterprise customer and the financial institute. Now we see the effort coming and we did the right thing last year.

是的，我認為從第一天起，我們的客戶群多元化始終是我們的目標，對吧。這就是讓我們能夠趕上不同行業的任何成長的原因。如果你回顧過去的十年，我們從企業客戶開始，然後我們趕上網路的蓬勃發展。然後我們進入雲端起飛，現在雲端網路和企業的需求也更加平衡。因此，我認為我們擁有非常堅實的客戶群，這使我們能夠抓住任何類型的需求 - 因為市場總是在變化。因此，正確的做法是始終建立我們擁有的堅實的客戶群，所以現在，上個季度和本季度，也許上個季度和最後幾個季度，我認為我們看到了企業和金融機構的成長。顯然雲端運算有點放緩，對吧，但我們仍然可以達到我們的目標。所以從去年開始，我們已經看到了這種變化，所以去年我們開始僱用更多的人，增加我們的銷售人員，滲透到企業客戶和金融機構。現在我們看到了努力的到來，去年我們做了正確的事。

Thank you. (Operator Instructions) Our next question comes from Michael Elias at Cowen. Please go ahead.

謝謝。 （操作員說明）我們的下一個問題來自 Cowen 的 Michael Elias。請繼續。

Hi, this is just one from Michael. I just wanted to touch on the organic leasing target and you noted in your prepared remarks that you could see a little bit more coming from Southeast Asia in 2022. I wonder if you could provide a little bit of color around the exact split between Southeast Asia/Hong Kong, along with Mainland China.

嗨，這只是麥可的一封信。我只是想談談有機租賃目標，您在準備好的發言中指出，2022 年您可能會看到更多來自東南亞的租賃目標。我想知道您是否可以就東南亞之間的確切劃分提供一些信息/香港，以及中國大陸。

And secondarily, your guidance does imply a step up in leasing to reach that 90,000 square meter target. What are you hearing from your customers that indicates an acceleration is coming? And as part of that, what level of visibility do you have in your existing pipeline for that leasing to come along? Thank you.

其次，您的指導確實意味著要加強租賃力度，以達到 90,000 平方米的目標。您從客戶那裡聽到什麼表明加速即將到來？作為其中的一部分，您在現有的租賃管道中的可見度如何？謝謝。

Dan, you go ahead.

丹，你繼續吧。

Yes, on the first part of the question, we deliberately didn't provide any quantification of a split. We can make our targets a number of different ways, so it's not really appropriate for us to put some kind of quota on orders from a particular type of customer or particular region. We have a couple of projects in Hong Kong where we haven't yet disclosed anchor custom orders and we have three major projects around Singapore, three campuses, two in Johor and one in Batam. So that's five projects in total.

是的，在問題的第一部分，我們故意不提供任何分裂的量化。我們可以透過多種不同的方式來設定目標，因此對特定類型的客戶或特定地區的訂單設定某種配額並不合適。我們在香港有幾個項目，尚未披露主力定制訂單，我們在新加坡周圍有三個主要項目，三個校區，兩個在柔佛州，一個在巴淡島。總共有五個項目。

Of course we've made these investments in close consultation with our leading customers and there's been a sale dialogue going on for a long period of time. But when we actually disclose the sales order, depends on there being a firm commitment. It's too hard to say right now how many of those projects will have firm commitments within this financial year. It could be a combination, so that's why it wouldn't really be meaningful or appropriate to put a number on it.

當然，我們在與主要客戶密切協商後進行了這些投資，而銷售對話已經進行了很長一段時間。但當我們真正揭露銷售訂單時，取決於是否有堅定的承諾。現在很難說有多少項目將在本財政年度內做出堅定的承諾。它可能是一個組合，所以這就是為什麼在上面加上一個數字實際上沒有意義或不合適。

I think we will have enough anchor orders in Southeast Asia to give investors a very strong feeling about, call it proof of concept as to what we're doing. I think that's probably the most important thing.

我認為我們將在東南亞擁有足夠的錨定訂單，讓投資者對我們正在做的事情有一種非常強烈的感覺，稱之為概念驗證。我認為這可能是最重要的事情。

Your second question was about visibility on the 90,000 square meters. William, would you like to add something?

你的第二個問題是關於90,000平方公尺的能見度。威廉，你想補充嗎？

Yes. I think number 1, at 90,000 square meters we confirmed we still can achieve, we are confident on that but it is a little bit early to talk about it accelerates. But in general I think all our customer are preparing for the future growth.

是的。我認為第一，在 90,000 平方米的面積上，我們確認我們仍然可以實現這一目標，我們對此充滿信心，但現在談論它的加速還為時過早。但總的來說，我認為我們所有的客戶都在為未來的成長做好準備。

We monitor our customer's business plan very closely in order to well position to catch up whatever accelerate or still maintain the current demand profile. I think our goal is short term we cannot say whether it will accelerate or not. But still, we are confident for the mid-term and long-term. The demand still will not change.

我們非常密切地監控客戶的業務計劃，以便能夠很好地趕上任何加速或仍然維持當前需求狀況的情況。我認為我們的目標是短期的，我們不能說它是否會加速。但我們對中長期仍充滿信心。需求仍然不會改變。

Thank you. Our next question comes from Frank Louthan at Raymond James. Please go ahead.

謝謝。我們的下一個問題來自 Raymond James 的 Frank Louthan。請繼續。

Great, thank you. I just want to go back to the guidance. When you came in at the end of the year the guidance was a little bit lower because of supply chain issues, your customers were having supply chain issues and getting inflation. Now obviously they've been precluded from installing because of the lockdowns.

太好了謝謝。我只想回到指導。當你在年底進入時，由於供應鏈問題，指導有點低，你的客戶遇到了供應鏈問題並遭受通貨膨脹。現在顯然，由於封鎖，他們已無法安裝。

What's the bigger factor now in your mind that if there's something that would keep you from hitting the guidance or have to have you lower it later this year? Are you confident that they do have the equipment and they have gotten through the supply chain issues, they'll be able to do the installations and now is it just the assumption that the lockdowns will bolster it, or how should we think about those two factors?

如果有什麼因素會阻礙你達到指導目標，或者必須讓你在今年稍後降低指導值，那麼你現在認為更重要的因素是什麼？您是否確信他們確實擁有設備並且已經解決了供應鏈問題，他們將能夠進行安裝，現在只是假設封鎖會加強它，或者我們應該如何考慮這兩個問題因素？

The main difference is the lockdowns. I think when we gave guidance in mid-March it was still relatively early. I don't think anyone had anticipated then that Shanghai would be in lockdown for two months.

主要差別在於封鎖。我認為我們在三月中旬給出指導的時候還比較早。我想當時沒有人預料到上海會封城兩個月。

I don't know how much specific detail investors have about the extent of the lockdowns but what we saw was the lockdown in Shanghai, which is quite well known, but also the surrounding areas where the government I think as a precaution went into lockdown that's in Jiangsu Province.

我不知道投資者對封鎖程度有多少具體細節，但我們看到的是上海的封鎖，這是眾所周知的，我認為政府作為預防措施也封鎖了周邊地區。在江蘇省。

Then there's quite a bit of news about some restrictions in Beijing but what I don't think is necessarily so well known is that Langfang, which is in Hebei Province just outside Beijing, that's been in lockdown for an extended period of time as well.

然後有很多關於北京的一些限制的消息，但我認為不一定那麼廣為人知的是，位於北京郊外的河北省廊坊也已經被封鎖了很長一段時間。

If you look at the page in our earnings presentation, and it's in the appendix, where we show what we call ramping up datacenters. Ramping up datacenters is where most of the move-in is taking place.

如果您查看我們的收益演示中的頁面，您會發現它位於附錄中，我們在其中展示了所謂的「提升資料中心」。資料中心的擴建是大部分遷移發生的地方。

If you just scan down that table and you just look at the number of datacenters which start with SH, or CS which is Changshu, or NT which is Nantong, that's all in the Shanghai area and surrounding area affected by lockdown. Then you look at Beijing and Langfang, LF, you'll see that a very substantial part of our ramping up datacenters are in the areas which have been amongst the worst affected by lockdowns.

如果你掃一下這張表，你會看到以SH開頭的資料中心的數量，或是CS開頭的資料中心（常熟），或是NT開頭的資料中心（南通），這些都在上海地區和周邊地區受封鎖影響。然後你看看北京和廊坊，你會發現我們增加的資料中心的很大一部分位於受封鎖影響最嚴重的地區。

We may be coming to the end of that, certainly from government comments, and when we looked at our guidance we assumed, as I have said during the prepared remarks, that lockdowns come to an end progressively in the next one to two months and thereafter we assume that move-in would recover to the level that it was at last year.

我們可能即將結束這種情況，當然是從政府的評論來看，當我們查看我們的指導意見時，正如我在準備好的演講中所說的那樣，封鎖將在未來一到兩個月及此後逐步結束我們預計入住率將恢復到去年的水平。

Last year was not affected by lockdowns but it was affected by a number of other factors. If you look at the quarterly move-in last year, excluding acquisitions it was in the high teens in terms of thousands of square meters per quarter. So we would assume that that's what will happen in the second half of the year and then if that happens we will come out with revenue (inaudible) are within our guidance.

去年並未受到封鎖的影響，但受到了許多其他因素的影響。如果你看去年的季度入住量，不包括收購，每季的入住面積達到數千平方公尺。因此，我們假設這將在今年下半年發生，如果發生這種情況，我們將得出收入（聽不清楚）在我們的指導範圍內。

I think that everyone can probably do their own cross-check mathematically because we have given a direction saying that our MSR will decline by mind-single digits, and we have revenue guidance so if you divide one by the other you can calculate the average area utilized and then construct a quarterly progression for that metric.

我認為每個人都可以在數學上進行自己的交叉檢查，因為我們已經給出了一個指示，說我們的MSR 將下降個位數，而且我們有收入指導，所以如果你將一個除以另一個，你可以計算出平均面積利用，然後為該指標建立季度進度。

Thank you. Our next question comes from Gokul Hariharan at JPMorgan. Please go ahead.

謝謝。我們的下一個問題來自摩根大通的 Gokul Hariharan。請繼續。

Hi. Thanks, William and Dan.

你好。謝謝，威廉和丹。

First of all on cloud, one of your biggest cloud customers yesterday mentioned that they are becoming a lot more selective in terms of their cloud investments and were looking for quality growth rather than growth at any cost.

首先在雲端方面，您最大的雲端客戶之一昨天提到，他們在雲端投資方面變得更加挑剔，並且尋求高品質的成長，而不是不惜任何代價的成長。

Could you talk a little bit about the discussions you are having with customers, cloud customers in terms of how they think about growth going forward? Is there a meaningful step-down, and what kind of expectations do you have, let's say in the next three, four years in terms of cloud growth?

您能否談談您與客戶、雲端客戶如何看待未來成長的討論？是否有有意義的降級，以及您對未來三、四年內雲端成長有何期望？

Secondly on the FSI, financial services customers, is there any different profile in terms of financial service customers in terms of the kind of demand that they have on the engagement models that you have? If that becomes a significant part, a much bigger part of your revenue, does that mean anything for IRR or MSR? Thank you.

其次，關於金融服務機構（FSI），金融服務客戶，就金融服務客戶對你們的參與模式的需求而言，他們的情況是否有什麼不同？如果這成為您收入的一個重要組成部分，一個更大的部分，這對 IRR 或 MSR 意味著什麼嗎？謝謝。

Yes. I think the cloud service provider still is a major driver, main driver to drive the datacenter demand and growth. I think even they talk about selective, they still pursue the high growth rate.

是的。我認為雲端服務供應商仍然是主要驅動力，是推動資料中心需求和成長的主要推動力。我認為即使他們談論選擇性，他們仍然追求高成長率。

I think this does not mean they will slow down, let's say dramatically. I think that still they maintain I think 20%, 30% growth still is the number they pursue, at least. This is still a big number in my view, but on the other hand things we talk about the demand profile a little bit change and because a lot of the enterprise or internet giants, they start to do their hybrid cloud model.

我認為這並不意味著他們會放慢速度，甚至可以說是大幅放慢速度。我認為他們仍然保持至少20%、30%的成長仍然是他們追求的數字。在我看來，這仍然是一個很大的數字，但另一方面，我們談論的需求概況發生了一些變化，因為許多企業或網路巨頭開始採用混合雲模型。

So, the demand from the cloud a little bit shifted to our end user to direct purchase, such as the datacenter. I think in total, from our perspective the market total demand still maintained a similar size compared with last year, but the demand shifted from one industry to another industry. That's the current trend we saw.

所以，雲端的需求有點轉移到我們的最終用戶直接購買，像是資料中心。我覺得總體來說，從我們的角度來看，市場總需求和去年相比還是保持了一個差不多的規模，但是需求從一個行業轉移到了另一個行業。這就是我們目前看到的趨勢。

In terms of the enterprise customer and the financial institutions, I think their model [traditionally] (corrected by the company after the call) demand a small size. They also represent very big demand, let's say 1000 racks, 2000 racks, a lot of gear because they change their IT structure from their typical from their mainframe to their server base.

就企業客戶和金融機構而言，我認為他們的模型（傳統上）（由公司在通話後糾正）需要較小的規模。他們也代表著非常大的需求，比如說 1000 個機架、2000 個機架、大量設備，因為他們將 IT 結構從典型的大型主機改為伺服器基礎。

So, the demand profile for each order still is very, very big. You can call it, it's like a semi-hyperscale datacenter demand. In terms of price, Dan, you want to add some color?

因此，每個訂單的需求量仍然非常非常大。你可以稱之為，它就像一個半超大規模資料中心的需求。在價格方面，丹，你想加點顏色嗎？

Dan Newman: Yes. Semi-hyperscale more or less answered the question about price as well, actually. It's almost entirely I'm trying to think but it is entirely actually what we would call downtown datacenters.

丹紐曼：是的。實際上，半超大規模或多或少也回答了有關價格的問題。這幾乎完全是我試圖思考的，但實際上這完全是我們所說的市中心資料中心。

Unless we had continued to pursue the strategy of sourcing datacenters within Beijing and within Shanghai, which we have done sorry, and within Shenzhen, which is very time-consuming and challenging. Unless we'd done that we would not have been able to get this business, so it's mostly downtown.

除非我們繼續奉行在北京和上海採購資料中心的策略（我們已經這樣做了），以及在深圳採購資料中心，這是非常耗時且具有挑戰性的。除非我們這樣做，否則我們就無法獲得這項業務，所以它主要集中在市中心。

There is still a significant differential between the pricing for downtown and edge of town which I think all customers recognize and accept. I think the IRRs are probably quite similar now between downtown and edge of town. I don't think this FSI business makes much difference to our average IRRs or to our operating cost structure and so on.

市中心和城鎮邊緣的定價之間仍然存在顯著差異，我認為所有客戶都認識並接受這一點。我認為現在市中心和城鎮邊緣之間的 IRR 可能非常相似。我認為這項 FSI 業務對我們的平均 IRR 或我們的營運成本結構等沒有太大影響。

Thank you. Our next question comes from Joel Ying at Nomura. Please go ahead.

謝謝。我們的下一個問題來自野村證券的 Joel Ying。請繼續。

Thanks, Management, for taking my questions. I actually saw a tightening policy trend for the PV monitoring and carbon emission quota Management in Beijing area. Should we expect any impact to the Company or industry to mid-long term?

謝謝管理層回答我的問題。我實際上看到了北京地區光伏監測和碳排放配額管理的政策趨勢。我們是否應該預期對公司或產業的中長期影響？

Maybe some old datacenters, may need renovations, so we might need some time or might need extra capital to solve such issues maybe in the long run. Can Management talk about that? Thank you.

也許一些舊的資料中心可能需要翻新，所以從長遠來看，我們可能需要一些時間或可能需要額外的資金來解決這些問題。管理層可以談談嗎？謝謝。

Pardon, what's your question?

抱歉，你有什麼問題嗎？

Yes. William, I think it was yesterday I'm trying to think was it municipal government or NDRC, and that announced implementation of this year's monitoring of PV levels and list out eight or 10 actions that they would take to try to increase efficiency of small, old datacenters on it.

是的。威廉，我想昨天我正在想是市政府還是國家發改委宣布了今年對光伏水平的監測，並列出了他們將採取的八到十項行動，以試圖提高小型、其上的舊數據中心。

It's a follow-through from a strategy policy which they've announced several times previously to try to be more assertive in forcing datacenter operators to become more efficient or even creating an economic push for older datacenters to shut down.

這是他們先前多次宣布的戰略政策的後續行動，旨在更果斷地迫使資料中心營運商提高效率，甚至為舊資料中心的關閉創造經濟推動力。

It doesn't affect us at all, Joel, not negatively. Maybe positively if there's some demand that shifts from that. In actual fact, I think we've played a very constructive role with the government in helping to establish this exercise because it requires some IT and integration to create the platform for the monitoring of PEVs.

喬爾，這對我們根本沒有影響，不是負面。如果有一些需求發生變化，也許是正面的。事實上，我認為我們在幫助建立這項工作方面與政府一起發揮了非常建設性的作用，因為它需要一些 IT 和整合來創建 PEV 監控平台。

Yes. I should add on something on that because GDS is the most efficient datacenter player in the market. I think it is not just the government asked us to do from our self-benefit point of view, to improve the power efficiency always our goal, our day-to-day job. Just like Dan mentioned, it would not affect us.

是的。我應該補充一些內容，因為 GDS 是市場上最高效的資料中心播放器。我認為這不僅僅是政府要求我們從自身利益的角度去做，提高電力效率始終是我們的目標，我們的日常工作。就像丹提到的那樣，這不會影響我們。

Thank you. Our next question comes from Alex Wang at Daiwa. Please go ahead.

謝謝。我們的下一個問題來自大和的 Alex Wang。請繼續。

Hi, Management. Can you hear me? Yes. Congratulations for a strong result. It's Wang Guohan from Daiwa Capital Markets. I will ask a question on behalf of John Choi. The first question is regarding our - yes, customer diversification as we just mentioned earlier. As we are trying to diversify our revenue mix towards non-internet sectors, do we have maybe a target for revenue mix from enterprise and the financial sector in the next one to three years.

嗨，管理層。你聽得到我嗎？是的。祝賀取得了優異的成績。我是大和資本市場公司的王國漢。我將代表約翰·崔（John Choi）問一個問題。第一個問題是關於我們的——是的，正如我們之前提到的客戶多元化。當我們試圖將我們的收入組合多元化到非網路領域時，我們是否有未來一到三年來自企業和金融部門的收入組合的目標？

Also, we have observed your targets of MSR, also middle, single point decline in this year. With our observation on new contracts acquired in the first quarter, is there any [sort of] (corrected by the company after the call) attempts to negotiate the new cloud contract?

此外，我們也觀察到你們今年的 MSR 目標也是中等、單點下降。根據我們對第一季獲得的新合約的觀察，是否有任何[某種]（由公司在電話會議後糾正）嘗試協商新的雲端合約？

My second question is regarding our [capacity in capacity injection plan] (corrected by the company after the call) as we see this year is more back in the old days. So into the second half, what's our observation on the biggest downward risk for all our capacity injection in the second half because we have seen that over 80% of our capacity actually aggregate in the same half. Thank you, very much.

我的第二個問題是關於我們的[產能注入計劃]（公司在電話會議後更正），因為我們看到今年更像是過去的日子。那麼進入下半年，我們對下半年所有產能注入的最大下行風險的觀察是什麼，因為我們看到超過80%的產能實際上集中在同一半年。非常感謝。

Yes, Alex, we have sales targets, of course but from a strategy and planning point of view, we don't set quotas for particular kinds of customers or particular markets. I mentioned that previously. I mean, that - I don't think that would be the right approach. I mean, we've tried to position to address demand from what we consider to be a strategic high value customer base and we want to be in the right place at the right time to capture that demand.

是的，亞歷克斯，我們當然有銷售目標，但從策略和規劃的角度來看，我們不會為特定類型的客戶或特定市場設定配額。我之前有提到過。我的意思是，我認為這不是正確的方法。我的意思是，我們試圖定位以滿足我們認為是戰略性高價值客戶群的需求，並且我們希望在正確的時間出現在正確的地點來捕獲該需求。

The comments that I make about MSR, yes, reflect some internal assumptions about - particularly about the pricing for new contracts which itself is reflecting the location of that capacity. Whether it's downtown, edge of town or remote. You know, renewals also goes into that although I'd say renewals is a pretty small part of the change in MSR.

是的，我對 MSR 的評論反映了一些內部假設，特別是關於新合約的定價，它本身反映了該產能的位置。無論是市中心、城鎮邊緣或偏遠地區。你知道，續訂也涉及到這一點，儘管我想說續訂只是 MSR 變化的一小部分。

Now you've commented quite a few times before that overall, renewals are close to flat. We do have some older contracts like five to seven year old contracts, particularly for our first few data centers in each market. So it would be like the data center number one, two, three, four in a particular market where we have some, what we would call today, hyperscale customers, but at that time, their order size was a few hundred square meters, not - and the total volume of their business with us has increased by 10 or more than 10x since then.

現在您之前已經評論過好幾次了，總體而言，續訂量接近持平。我們確實有一些較舊的合同，例如五到七年的合同，特別是對於我們在每個市場的前幾個數據中心。因此，就像在特定市場中排名第一、第二、第三、第四的資料中心一樣，我們有一些我們今天所說的超大規模客戶，但當時他們的訂單規模只有幾百平方米，而不是- 從那時起，他們與我們的業務總量增加了 10 倍或超過 10 倍。

So those customers, typically they have downtown capacity and edge of town capacity. So when those contracts come up for renewal and it's only a pretty small part of our total contract base, we've seen some very small decline for that there but once you factor that into our overall MSR, it doesn't make much - it did not make a material difference. By far the biggest difference is the location mix. The BOT projects, the edge of town projects and so on.

因此，這些客戶通常具有市中心容量和城鎮邊緣容量。因此，當這些合約需要續約時，它只占我們總合約基數的一小部分，我們已經看到了一些非常小的下降，但一旦你將其納入我們的整體MSR 中，它就不會產生太大影響- 它沒有產生實質差異。到目前為止，最大的區別是位置組合。 BOT項目、城鎮邊緣項目等。

For the CapEx number, I mean yes, we - if you look back, yes, we added around 80,000 to 90,000 square meters of capacity and service in the last - per annum in the last couple of years. This year, we've brought that down to around 60,000 square meters. So we've done that because of the slower move-in but in order to do that, we have to consult with customers because there's also contractual delivery commitments that we have had to adhere to.

對於資本支出數字，我的意思是，我們 - 如果你回顧一下，是的，我們在過去幾年每年增加了約 80,000 至 90,000 平方米的容量和服務。今年，我們已將其減少到 60,000 平方米左右。因此，我們這樣做是因為搬入速度較慢，但為了做到這一點，我們必須諮詢客戶，因為我們也必須遵守合約交付承諾。

If you're asking whether there was a risk from the point of view of being able to execute, I think that's relatively small. I mean, we're not affected by supply chain issues to any great extent in terms of our construction activity. We deal with suppliers in a very strategic way. We place what we call bulk purchase orders. They produce a lot of equipment and hold it in inventory to be able to deliver to us at very short notice.

如果你問從執行的角度來看是否有風險，我認為風險相對較小。我的意思是，就我們的建築活動而言，我們在很大程度上沒有受到供應鏈問題的影響。我們以非常策略性的方式與供應商打交道。我們下達所謂的大量採購訂單。他們生產大量設備並將其儲存在庫存中，以便能夠在很短的時間內交付給我們。

So we don't - within mainland China, we don't really experience material issues in terms of getting plant and equipment supplied. It may be had some small effect on our construction in Hong Kong just because of the logistics of mainland China to Hong Kong.

所以我們不會——在中國大陸，我們在提供工廠和設備方面並沒有真正遇到實質問題。只是因為內地到香港的物流，可能對我們在香港的建設有一些小小的影響。

But yes, so that's not really what's driving the 60,000 square meter number, that's more the business decision to slow down the rate at which we bring capacity into service as a sort of ripple through of the slower move-in.

但是，是的，所以這並不是推動 60,000 平方米這一數字的真正原因，更多的是放慢我們投入服務的速度的商業決策，作為較慢入住的連鎖反應。

Thank you. Our next question comes from Sara Wang at UBS. Please, go ahead.

謝謝。我們的下一個問題來自瑞銀的 Sara Wang。請繼續。

Hi, thank you for the opportunity to ask a question. So I recall during our last earnings call that Management shared that the outlook into next year should be better than this year. So given what happened so far, are we still holding the same view towards next year? Then what are our key assumptions for the outlook into next year? Thank you.

您好，感謝您給我提問的機會。因此，我記得在我們上次的財報電話會議上，管理層表示明年的前景應該比今年更好。那麼，考慮到迄今為止發生的事情，我們對明年是否仍持相同的看法？那我們對明年前景的主要假設是什麼呢？謝謝。

Sara, I can't remember exactly what I said and I'm giving you the benefit of the doubt if I said next year would be better. I don't know if I specifically meant year because that's just a - you know, an arbitrary start and end date but I mean, clearly, we're going through a cycle, right? Everyone knows that and we will - the cycle will bottom at some point and there will be recovery.

薩拉，我記不清我到底說了什麼，如果我說明年會更好，我就給你一個無罪推論。我不知道我是否特意指的是年份，因為這只是一個 - 你知道，一個任意的開始和結束日期，但我的意思是，顯然，我們正在經歷一個週期，對吧？每個人都知道這一點，我們也會知道——週期將在某個時候觸底，並且將會復甦。

We have got many quarters of historic data on the ratio of move-in to backlog and the - although there's quite a wide range, that has held for a long period of time. Currently we see move-in to backlog ratio has fallen to a level that we've not seen historically. So it's well below historical levels.

我們獲得了許多季度的關於入住與積壓比率的歷史數據，儘管範圍很大，但這種情況已經持續了很長一段時間。目前，我們看到入住與積壓的比率已降至歷史上從未見過的水平。所以它遠低於歷史水平。

I don't think that - yes, I don't think anything fundamental has changed or structurally has changed. I think that's cyclical and a reflection of some of the unprecedented factors which are currently affecting the market. So once that - once those go away and once we see the cycle turn, I don't see why the historical ratio moving to backlog should not return and if that's the case, then we will see higher growth rates than we're seeing currently.

我不這麼認為——是的，我不認為任何根本性的改變或結構性的改變。我認為這是週期性的，反映了目前影響市場的一些前所未有的因素。因此，一旦這些消失，一旦我們看到週期轉變，我不明白為什麼歷史比率不會回歸積壓狀態，如果是這樣的話，那麼我們將看到比目前更高的成長率。

Thank you. That's all the time we have for questions. I'd now like to turn the call back over to the Company for closing remarks.

謝謝。這就是我們提問的時間。我現在想將電話轉回公司進行結束語。

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. Bye.

再次感謝大家今天加入我們。如果您還有其他疑問，請隨時透過我們網站上的聯絡資訊或 Piacente 集團投資者關係部門聯絡 GDS 投資者關係部門。再見。

Thank you. This concludes this conference call. You may now all disconnect.

謝謝。本次電話會議到此結束。你們現在可以斷開連結了。