Financial Data and Key Metrics Changes - Total capacity reached 704 megawatts, an increase of 31 megawatts during the quarter [4] - Revenue was RMB920.6 million, representing a 43.1% year-over-year growth [5] - Adjusted EBITDA was RMB494.5 million, a 60.7% year-over-year growth with a margin of 53.7%, a historical high [5][21] - Net income was RMB94.6 million, a 62.5% year-over-year growth with a margin of 10.3% [5][19] - Total debt to capital ratio was 35% and total debt to last 12 months adjusted EBITDA ratio was 3.4 [23] Business Line Data and Key Metrics Changes - In-service capacity increased by 58 megawatts to 498 megawatts [4] - Contracted capacity increased by 54 megawatts, bringing total contracted and IOI capacity to 690 megawatts [4] - Utilized capacity increased by 40 megawatts to 344 megawatts, a 45% year-over-year growth [13] Market Data and Key Metrics Changes - Majority of revenue generation related capacity is in the greater Beijing area, aligned with the East Data West Computing National Policy [14] - 70% of total capacity is in APAC emerging markets, with 89% contracted or IOI by the end of the first quarter [15] Company Strategy and Development Direction - The company aims to further penetrate APAC emerging markets and explore hyperscale demand from enterprise clients and cloud service providers [11] - The company is focused on maintaining stable operations and delivery schedules while optimizing management and execution teams [40] - The objective is to have overseas business account for 30% of total portfolio in the long run [39] Management Comments on Operating Environment and Future Outlook - Management noted that the pandemic has led to increased demand from key clients, particularly ByteDance [27] - Despite challenges from COVID-related lockdowns, the company has managed to maintain project delivery schedules [36] - The company raised its full-year 2022 revenue and adjusted EBITDA guidance due to strong business momentum [6][28] Other Important Information - The company finalized a US$500 million syndication loan financing, which was oversubscribed, to support future development [16] - The company has a healthy commitment profile with over 90% of contracts being 10 years long [12] Q&A Session Summary Question: Current outlook on demand from ByteDance - Management indicated that the pandemic has actually increased demand from ByteDance, with more urgent requirements from the client [27] Question: Concerns about EBITDA margin guidance - Management explained that the high EBITDA margin in Q1 was due to lower utility costs and a decrease in maintenance and SG&A expenses, but expects some normalization in the second half of the year [31] Question: Impact of lockdown on capacity delivery - Management stated that the lockdown has had minimal impact on operations, with a faster ramp-up rate observed from key clients [34] Question: Competitive advantages in overseas markets - Management highlighted strong business momentum in APAC emerging markets and ongoing discussions with potential clients in Indonesia and Thailand [39] Question: Plans for reducing revenue concentration from ByteDance - Management is actively exploring opportunities with other cloud clients and expects diversification to occur alongside client growth [48]

Financial Data and Key Metrics Changes - For the full year 2021, revenue totaled RMB2.852 billion, representing a year-over-year increase of 55.8%, which was 0.8% higher than the upper range of guidance [13] - Adjusted EBITDA for the year was RMB1.49 billion, reflecting a year-over-year increase of 66.5%, exceeding guidance by 1.5% [13] - Net income turned positive at RMB316.4 million for 2021, with a margin of 11.1% [13][41] - In Q4 2021, revenue increased by 41.4% year-over-year to RMB781.7 million, driven by robust growth in colocation services [38] Business Line Data and Key Metrics Changes - Total capacity increased by 85 megawatts in Q4 2021, reaching 673 megawatts, with in-service capacity increasing by 70 megawatts to 440 megawatts [12] - Utilized capacity increased by 36 megawatts to 304 megawatts, with a utilization ratio of 69% [34] - The company added four new projects under construction, contributing to a total of 87 megawatts of IOI capacity [32] Market Data and Key Metrics Changes - The demand for data centers in the APAC emerging markets is expected to grow at a CAGR of over 20% over the next five years [14] - The East Data West Computing policy is anticipated to reshape the industry landscape favorably for the company, redirecting computing power demand to energy-abundant areas in the west [15][16] Company Strategy and Development Direction - The company aims to deepen its presence in APAC emerging markets and advance its geographic layout in key clusters designated under the East Data West Computing policy [24] - Plans include pursuing mergers, acquisitions, and joint ventures to enhance client base and geographical development [24] - The company is committed to a diversified renewable energy sourcing model, leveraging its energy-abundant region layout [24] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on opportunities in China, driven by competitive advantages such as a full-stack solution and strong customer relationships [20][22] - The company expects the industry to enter a period of consolidation, which may provide opportunities for asset integration through mergers and acquisitions [18] - Management remains optimistic about continued financial momentum in 2022, with guidance for revenue and adjusted EBITDA reflecting significant year-over-year growth [45] Other Important Information - The company has a strong cash position with RMB5.241 billion in cash and a net debt position of RMB104.1 million [43] - The company is exploring dual-primary or secondary listing options in Hong Kong following recent regulatory changes [37] Q&A Session Summary Question: Regarding prepayments for the East Data West Computing policy and customer demand in Gansu Province - Management highlighted the first mover advantage in power-abundant regions and the strategic allocation of resources in areas like Zhangjiakou and Datong [48][49] Question: Customer diversification progress and market price competition - Management confirmed efforts in client diversification, securing projects with international cloud providers and noted stable pricing due to long-term contracts [66][68] Question: Forecast on upcoming costs and green power usage - Management explained that the deployment strategy in energy-abundant regions helps mitigate cost increases, and they are exploring multiple avenues for acquiring green energy [71][75]

Chindata Group Holdings Limited (NASDAQ:CD) Q3 2021 Earnings Conference Call November 24, 2021 7:00 AM ET Company Participants Jing Ju - Chief Executive Officer Dongning Wang - Chief Financial Officer Zoe Zhuang - Finance Vice President Conference Call Participants Yang Liu - Morgan Stanley Tina Hou - Goldman Sachs James Wang - UBS Hongjie Li - CICC Albert Hung - JPMorgan Edison Lee - Jefferies Operator Good morning and good evening ladies and gentlemen. Thank you and welcome to Chindata Group Holdings Limi ...