Loading...
01/11 07:56
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial performance with record high revenues, improved margins, and healthy debt management. The company's robust order book and optimistic revenue and EBITDA guidance are positive indicators. Despite some uncertainties in regulatory and competitive pressures, the company's strategic focus on AI-driven growth and wholesale business expansion is promising. The Q&A section highlights sustained demand and no adverse impact on EBITDA margins from electricity tariffs. The potential dual listing in Hong Kong could be a future catalyst. Overall, the sentiment leans positive, likely resulting in a 2% to 8% stock price increase.
Total Net Revenues RMB2.25 billion, an increase of 18.3% year-over-year, driven by rapid growth of wholesale business.
Wholesale Revenues RMB673 million, representing a year-over-year growth of 86.5%, mainly attributable to sales at the EGS Campus 02 and NH-B Campus 01B.
Adjusted EBITDA RMB682 million, up 26.4% year-over-year, with an adjusted EBITDA margin of 30.4%, up 1.9 percentage points year-over-year.
Adjusted Cash Gross Profit RMB967.8 million, an increase of 26.4% year-over-year.
Adjusted Cash Gross Margins 43.1%, improved from 40.3% in the same period last year.
Net Operating Cash Inflow RMB195.7 million during the first quarter.
Total Cash and Cash Equivalents RMB5.79 billion as of March 31, 2025.
CapEx RMB1.82 billion for the first quarter, primarily allocated to the expansion of the wholesale IDC business.
Net Debt to Trailing 12 Months Adjusted EBITDA Ratio 5, maintaining a healthy level.
Total Debt to Trailing 12 Months Adjusted EBITDA Ratio 6.5, remaining at a healthy level.
Trailing 12 Months Adjusted EBITDA to Interest Coverage Ratio 7.5 as of March 31, 2025, indicating improved coverage.
New Product Orders: Secured a 55 megawatt order from a leading cloud computing customer and a 64 megawatt order from an Internet customer through a joint venture project. Additionally, won a 6 megawatt wholesale order from an intelligent driving customer.
Retail IDC Services: Retail IDC business revenues from customer private deployments of open source large language models increased by 309% in March compared to January.
Market Expansion: Retail orders secured from customers in various sectors including Internet, finance, local services, intelligent driving, and gaming across multiple regions such as Greater Beijing, Yangtze River Delta, and Greater Bay Area.
AI Demand Growth: China's AI development is experiencing explosive growth, driven by DeepSeek technology, leading to increased demand for premium IDC services.
Operational Efficiency: Wholesale capacity in service grew 18.1% quarter over quarter to 573 megawatts, with utilization rate increasing to 76.2%.
Delivery Capabilities: Successfully delivered a total of 88 megawatts in the first quarter, with plans to deliver 377 megawatts over the next 12 months.
Strategic Financing: Issued USD 430 million of convertible senior notes due in 2030 at an interest rate of 2.5% per annum and secured a sustainability-linked loan of RMB 500 million.
CapEx Strategy: CapEx for 2025 is expected to be between RMB 10 billion to RMB 12 billion to support the planned delivery of 400 to 450 megawatts.
Regulatory Issues: The company acknowledges that forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from current expectations, highlighting the importance of regulatory compliance.
Economic Factors: The company expresses confidence in the growth potential of the China market, driven by AI development and demand for premium IDC services, but does not elaborate on potential economic risks.
Competitive Pressures: The company notes the rising demand for private deployment triggered by DeepSeek, indicating competitive pressures in the IDC market as they strive to secure high-quality orders.
Supply Chain Challenges: While the company reports strong operational performance, there is no specific mention of supply chain challenges, although the rapid growth in capacity and demand may imply potential risks in meeting future orders.
Debt Management: The company maintains a prudent approach to debt management, with a significant portion of debt maturing in the next few years, which could pose risks if not managed effectively.
Wholesale IDC Business Growth: Wholesale capacity in service grew 18.1% quarter over quarter to 573 megawatts, with wholesale revenues reaching a record high of RMB673 million, an increase of 86.5% year-over-year.
Retail Business Progress: Retail IDC business revenues from customer private deployments of open source large language models increased by 309% in March compared to January.
Expansion Plans: Plans to deliver 377 megawatts of capacity over the next 12 months, with a focus on the wholesale IDC business.
Sustainability Initiatives: Achieved a fivefold increase in total energy usage from renewable sources, reaching about 360,880 megawatt hours during 2024.
2025 Revenue Guidance: Anticipated total net revenues to be between RMB9.1 billion to RMB9.3 billion, representing year-over-year growth of 10% to 13%.
2025 Adjusted EBITDA Guidance: Expected adjusted EBITDA in the range of RMB2.7 billion to RMB2.76 billion, representing year-over-year growth of 15% to 18%.
2025 CapEx Guidance: Expected capital expenditure for 2025 to be in the range of RMB10 billion to RMB12 billion, representing year-over-year growth of 101% to 141%.
Convertible Senior Notes Issued: USD 430 million of convertible senior notes due in 2030 at an interest rate of 2.5% per annum.
Sustainability Linked Loan: RMB 500 million with a 3.7% interest rate per annum.
Capital Expenditure Guidance: Expected to be in the range of RMB 10 billion to RMB 12 billion for 2025.
The earnings call reflects strong financial health with robust liquidity, prudent debt management, and solid cash position. Market strategy is positive with stable pricing and strong demand in key regions. Product development is promising with AI-driven growth and efficient resource management. The Q&A section highlighted stable market outlook and growing demand, offsetting any concerns about specific project details. The guidance is optimistic, despite a temporary EBITDA margin decline. Overall, the sentiment is positive, suggesting a potential 2% to 8% stock price increase over the next two weeks.
The earnings call indicates strong financial performance with record-high revenues and improved margins. The wholesale IDC business shows significant growth, and the buyback program reflects confidence in future prospects. Although management's guidance is conservative, it remains optimistic about future demand and AI opportunities. The Q&A section reveals no major concerns, and the new wind power project could positively impact margins. Overall, the positive sentiment, combined with optimistic guidance, suggests a likely stock price increase of 2% to 8%.
Despite record high revenues and positive growth in wholesale business, the company missed EPS expectations and faces significant debt, regulatory risks, and competitive pressures. The optimistic guidance and new contracts, especially in AI applications, are offset by concerns over supply chain challenges and economic factors. The Q&A highlighted management's evasive responses on key issues, adding uncertainty. Overall, these mixed signals suggest a neutral stock price reaction in the short term.
The earnings call reveals strong financial performance with record high revenues, improved margins, and healthy debt management. The company's robust order book and optimistic revenue and EBITDA guidance are positive indicators. Despite some uncertainties in regulatory and competitive pressures, the company's strategic focus on AI-driven growth and wholesale business expansion is promising. The Q&A section highlights sustained demand and no adverse impact on EBITDA margins from electricity tariffs. The potential dual listing in Hong Kong could be a future catalyst. Overall, the sentiment leans positive, likely resulting in a 2% to 8% stock price increase.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
