GDS Holdings Limited

Hello ladies and gentlemen, thank you for standing by for GDS Holdings Limited fourth quarter and full year 2025 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, Ms. Laura Chen, Head of Investor Relations for the company. Please go ahead, Laura.

Thank you. Hello, everyone. Welcome to the fourth quarter and full year 2025 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'll refer to during this conference call, can be viewed and downloaded from our IR website at investorsgdsservices.com. 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 financial and operating results. Before we continue, please note that today's discussion will contain full statements made under the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and certainties. As such, the company's results may be materially different from the views expressed today. Further information regarding these and other risks and certainties is included in the company's prospectus as filed with the US SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that GDS earnings press release and its conference call include discussions of unaudited gap financial information as well as unaudited non-gap financial measures. GDS press release contains a reconciliation of the unaudited non-gap measures to the unaudited most directly comparable gap measures. I'll now turn the call over to GDS founder, chairman, and CEO, William Huang. Please go ahead, William.

Thank you. Hello, everyone. This is William. Thank you for joining us on today's call. 2025 was a great year for GDS in terms of performance. We recorded 11% growth in both revenue and adjusted EBITDA. We beat the top end of our adjusted EBITDA guidance And with the contribution from asset monetization, we were free cash flow positive. AI in China has really taken off. Increasing availability of domestic high-performance chips is a key enabler. All our major customers are investing in hyperscale computing infrastructure to support AI adoption. As a result, We are seeing robust recovery in data center demand across both new markets and established markets. It is exciting times to be a data center company again. To address this opportunity, we are building up our resources and the funding. On the resource side, we are working on a three gigawatt pipeline, comprising big clusters in new growth markets. This will complement the 700 megawatts of powered land which we are holding for future development in low latency established market. On the funding side, we have increased our cash reserves to over US dollar 2.8 billion, including proceeds from the recent sell down of our stake in day one. and the CPS new issue. Furthermore, our success last year in opening up channels for asset monetization gives us a competitive advantage in accessing equity onshore. During 4Q25, our gross additional area utilized was around 23,000 square meters. For the full year, gross move-in was over 86,000 square meters, our highest ever level. Our moving target for 2026 is similar to last year. However, as our bookings step up over the current year, it will lead to higher move-in one year forward. During 4Q25, our gross additional area committed was over 21,000 square meters. For the full year, our new bookings was over 96,000 square meters or over 300 megawatts, three times the level of the past three years. In 2026, we are aiming over 500 megawatts of gross new bookings. Another big step up from the last year. We expect 60% to 70% of new business to come from AI. So far this year, we have already secured 200 megawatts of new orders plus over 500 megawatts of MOUs, which are a strong indicator of future commitment This 700 megawatts of total demand comes mainly from the three of our largest customers. It's a great start towards our four-year sales target. Now the domestic chip supply is more certain. We are moving faster to secure multi gigawatts of additional power to land in new markets, which can support big-cluster deployments. We are focusing on the three locations, Horinger in Inner Mongolia, Zhongwei in Ningxia Province, and Shaoguan in Guangdong Province. We have already won over 400 megawatts of new orders and MOUs for these locations. These new growth markets, all of which are official national hubs, integrate well with our existing platform, enabling us to serve the different needs of our diversified customer base. We are very excited about the opportunities in front of us and look forward to growth in sync with China's AI development. I will now pass on to Dan for the financial and operating review.