Chindata Group(CD)2023-03-15 18:02Financial Data and Key Metrics Changes - Revenue in Q4 2022 was RMB 1,390.3 million, representing a 77.8% year-over-year growth, while full-year revenue reached RMB 4,551.7 million, a 59.6% increase year-over-year [7][23] - Adjusted EBITDA for Q4 2022 was RMB 720.9 million, a 78.4% year-over-year growth, with a margin of 51.9%. For the full year, adjusted EBITDA was RMB 2,374.2 million, a 67.3% increase year-over-year [7][28] - The company expects full-year 2023 revenue to be between RMB 5,880 million and RMB 6,080 million, and adjusted EBITDA to be between RMB 3,000 million and RMB 3,110 million, indicating around a 30% increase from 2022 [7][32] Business Line Data and Key Metrics Changes - The company added 1 new project with an additional 50 megawatts of capacity in Q4 2022, bringing total capacity to 871 megawatts and total data centers to 32 [5][9] - Utilized capacity increased by 71 megawatts in Q4, totaling 525 megawatts, with a solid utilization rate of 86% [6][13] - The commitment rate for total capacity reached 92% by the end of Q4, compared to 85% in the previous quarter [12] Market Data and Key Metrics Changes - The company reported a 35.9% year-over-year increase in total client commitment, with 211 megawatts of client commitment received in 2022 [11] - Overseas business contributed to 9% of total utilized capacity in Q4, up from less than 5% in previous quarters [14][22] - The company is focusing on the Southeast Asian market, with significant projects in Malaysia and India ramping up steadily [20][35] Company Strategy and Development Direction - The company is actively participating in the national East Data West Computation Plan, planning a 150-megawatt campus in Gansu Province [18] - The management emphasized the importance of leveraging energy resources and maintaining operational efficiency to support future demand [20][36] - The company aims to achieve an additional 120 to 150 megawatts of lift capacity in the next two years, with a focus on existing anchor clients [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum from existing clients and the long-term demand driven by emerging AI technologies [19][41] - The company is prepared for potential explosive growth in demand due to advancements in AI, particularly with clients involved in AI computing [44] - Management highlighted the importance of maintaining a healthy financial profile and operational readiness to meet future demand [31][36] Other Important Information - The company completed a $300 million senior notes offering in February 2023, which will support product development in China and overseas [6][16] - A one-off long-lived asset impairment cost of around RMB 83.5 million was recorded due to the decision to discontinue the Chinidea manufacturing business line [24][50] Q&A Session Summary Question: Breakdown of the 120-150 megawatt new booking in the next 2 years - Management indicated that 80% of the new bookings will come from existing key anchor clients, with 70% from China and 30% from overseas [38] Question: Impact of AI and data science on demand - Management believes that AI technologies will significantly increase computing power demand, benefiting the data center industry [41][42] Question: CapEx guidance for 2023 and revenue/EBITDA assumptions - CapEx is forecasted to be around RMB 5 billion, based on current business plans and project delivery schedules [49] - Management stated that the 30% revenue and EBITDA growth forecast is conservative, reflecting existing contracts and execution under construction [51][52]