Chindata Group(CD)2022-08-25 16:04Financial Data and Key Metrics Changes - Total capacity expanded to 776MW, an increase of 72MW during the quarter, with 30 data centers in the asset portfolio [6][7] - Revenue for the quarter was RMB1,038.1 million, representing a 51.2% year-over-year growth [8][21] - Adjusted EBITDA was RMB544.3 million, a 60.8% year-over-year growth with a margin of 52.4% [8][24] - GAAP net income reached RMB199.6 million, a 206.3% year-over-year growth, with a historical high margin of 19.2% [8][22] Business Line Data and Key Metrics Changes - Total utilized capacity increased to 401MW, a 59.6% year-over-year growth [14] - Contracted and indication of interest capacity increased by 32MW during the quarter to 619MW, leading to a commitment rate of 84% [7][11] - 95% contracted & IOI ratio for in-service capacity, consistent with the previous quarter [11] Market Data and Key Metrics Changes - APAC emerging market capacity deployment accounts for around 15% of total capacity, with 89% of this capacity committed by clients [15] - The company has 117MW capacity either in service or under construction in Southeast Asia, targeting international customers like Microsoft and Google [34] Company Strategy and Development Direction - The company is focusing on the East Data, West Computation Policy to strengthen its foothold in key regions [16] - A new agreement with the local government in Datong, Shanxi Province aims to expand capacity to over 500MW, potentially making it the largest IDC campus in Asia [17][42] - Strategic partnership with Taiji Computer aims to leverage each other's strengths in technology and market access [18][35] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained demand from clients, with a conservative approach to forecasting ramp-up speeds [29] - The company maintains its full-year revenue and adjusted EBITDA guidance despite market fluctuations [40] - Management is optimistic about the Southeast Asian market, anticipating balanced demand and supply in the future [34] Other Important Information - The company closed a US$500 million syndicated loan to support further expansion [8][20] - Recent development of a waterless cooling technology, X-Cooling, aims to improve energy and water efficiency in data centers [19][68] Q&A Session Summary Question: Outlook for utilization rate ramp-up - Management indicated that the current ramp-up speed reflects strong business demand, but they will maintain a conservative nine-month forecast for moving rates [29] Question: Potential customers in Southeast Asia and competitive landscape - Management is optimistic about opportunities in Southeast Asia, with significant capacity already in place to serve international clients [34] Question: Expansion plan in Datong and utility costs - Management confirmed plans for a 500MW capacity in Datong, with adequate power supply in main campuses despite regional shortages [39][42] Question: Tax rate volatility - The tax rate varies due to operations in different countries and specific tax policies, with a compound effect from various jurisdictions [49][51] Question: Impact of market conditions on business - Management emphasized a cautious approach to forecasting, relying on actual commitments rather than industry trends [56] Question: Plans for green energy projects - The company will collaborate with partners for ecological power development in Datong, focusing on local resource utilization [64] Question: Adoption of X-Cooling technology - Management confirmed that the technology balances cost and efficiency, with significant potential for water savings [68]