Chindata Group(CD)2022-03-11 03:02Financial 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]