Chindata Group(CD)2022-05-26 17:24Financial 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]