Q3 2020 Chindata Group Holdings Ltd Earnings Call
[music].
The hosting of question answer session of the managements prepared remarks.
Please note todays event is being recorded on.
No. It's on the call over to the first speaker today Mr. Roy John The Investor Relations director of cheap the thought group Cisco hit net.
Thank you, Jason Hello, everyone and welcome teaching day, <unk> quarter, and slightly like meat free.
Enjoy the.
That's the day aren't making sure Alex G. R E out maybe the wall art and and me Yeah, we flow our finance Vice President of.
On top of part the and maybe well take you through the quantity the view of our operations on it and they'll eat broker and then our financial result, Alec.
Alec make and they'll eat well be here to answer your questions afterwards.
Now I'll quickly go over the Safe Harbor.
On the same names that were making today regarding our business operations and financial performance and May be considered part of the thing and that's the thing, but the number of bread and and certainty that could cause actual results could differ materially.
For more information please refer to the risk that hurt the guy in our most recent one and one filed with the EPS E. I felt like in our form 10-K for the quarter ended September Thirtyth 2020 range.
Which has already and I would that be day.
During the call local events, both GAAP and non-GAAP financial measure and become creation of non-GAAP to non-GAAP measures included in our earnings press release, and we can distribute day and available to the public for our Investor Relations website located at Investor day that can get a good dot com.
Without further Ado I now turn over the call can day.
Moving to join.
Let's turn to slide one.
Hello, everyone.
Thank you for joining our first for the coal as a public company.
After the successful listing on the mask the we're truly grateful for both the public attention and the Investor endorsements of we have received are the result of our chief from today.
Going forward, we plan to utilize the resources of payments for our IPO to further expand our coverage of Asia Pacific emerging markets, including China, India and Southeast Asia.
Slide for.
Now turning to our operations highlights for the third quarter of 2020.
We delivered strong results and the period as we continue to expand our capacity and grow our revenues.
In terms of the capacity and service we had a total of the 11 in service date of centres and both China and Malaysia combined accounted for 240 day megawatts and total IP capacity and 88% of which has been contractually committed for our clients.
Meanwhile, we also had a total of nine data centers under construction and China, India, and the Malaysia accounted for 226 megawatts and total IP capacity and 69% of which has been contractually committed by our clients.
As we strongly believe we are in the business of converting the electric power efficiently to computing power, we choose to measure our business scale and IP megawatts there.
Therefore on a very good indicator to our operational performance because of the periodic power consumption figures.
On a long list of shot and ramping up of our capacity utilization.
Our year to date, our consumption of reached approximately 720 million kilowatts hour.
And the no two power efficiency.
Our year to date average fee was 1.22.
Which would be slightly higher than our annual volume due to the seasonal effect.
Our solid the house design and R&D capabilities are one of the good drivers of our effective cost management.
On on how to the frames. We currently hold of 194 approved how those and.
Having patterns further illustrating the growing the strength of our in the industry IP and the in house product and technology development capability.
As a result of our cost management efforts of the average construction cost per megawatt for all in service date of centers was less than you were standard 3 million.
Slide five.
Slide five maps on our key quarterly achievements.
In China, we received the 10 year contract for the entire data center of China, and Morse 11.
For which we previously received a 103 megawatts indication on the interest capacity for by all the capacity in the second quarter.
This contract was from one of our existing anchor tenants, who use the technology leader.
And it demonstrates solid recognition to our services and.
On the strong continuous climb and the Miami with certainty.
We also successfully delivered the contracted the to sort of abuse and three of our data centers simultaneously and on time to another of our anchored tenants a leading international cloud service provider in this quarter.
Where's the call the situation earlier. This year, we are very proud of the timely concur and the sthree side delivery and we have build of stronger and more capable team through this process.
The Malaysia we.
We received the definite interest of 60.35 megawatts for our Malaysia facilities.
Eight megawatts of which as expansion of our reduced food and 101 zero to campus and another 8.25 megawatts as an interest and our new and 103 facility.
In connection with this of definite interest we started our construction of and one zero free specifically in this quarter, which is the data center located the quadruple area and as of design capacity of 16 megawatts.
For the media.
I'd like to recap the 10 megawatts capacity contracted the for yet another international cloud service provider.
Thanks to our dedicated local team our construction is back on track despite the severe impact of the epidemic hit in Mumbai.
Now on slide six.
Slide six shows a very important table.
This table gives of comprehensive overview of the business and operational performance for our key data center assets.
And we will continuously update this table, which new quarterly inflow for assets and service and assets under construction.
We made good progress in terms of capacity expansion this quarter.
We completed the construction of two on.
Hyperscale data centers in China, and put the money in service.
In line with our expansion efforts. We also broke ground on the construction of three new data centers in China, and the Malaysia of this quarter.
Now, let's have a closer look.
The two newly delivered datacenter, namely seed and zero eight and see and can adding a total of of 50.3 megawatts IC capacity to all the larger ITC network.
As a result of our mark and knowledge industry experience and positioned from located both data centers and speak to view of viable locations.
The delivery of both the other centers have proven to be quite robust.
The was 88% of sea and Asia, II capacity contracted and 12% of the under idle and quarters.
As well as from 95% of C and pinch total R&D capacity already under contract.
The artist among.
Most of the new under construction the Datacenters.
C and 12 years, another and executing on the scene on campus standing next to key and can do.
Moving to suit of possibly for capacity expansion.
Located close to our CE zero one non include campus data center, our CE zero two data center will support us in meeting the substantial demand from our existing customers and eastern part of China.
Our new Malaysia of datacenter beginning construction this quarter.
And one zero of free located in quantum political.
As of design IP capacity of 16 megawatts.
All three newly under construction data centers total up to 41 megawatts.
Now diving deeper into our operating performance.
We improved the utilization ratio of our Datacenters.
For utilized IC capacity of our in service date of standards grew from a 142 megawatts by the end of last quarter to 175 megawatts by the end of this quarter the.
In the future as these data centers are gradually delivered and utilize the will also provide us with additional revenue contribution.
Yes.
Now turn to slide seven day.
On the Companys strategy.
Moving onto our current development strategy.
Which is built upon our for capabilities.
We remain focused on augmenting our capabilities in comprehensive site development.
Integrated energy service and equipment manufacturing.
Such a concentrated effort were highly successful.
The enabling us to expand revenue related while also influencing excellent cost controls for balance both the size and quality of our development.
Furthermore, if the market dynamic cheese, and our existing and new customers demand more diversified and more customized solutions, we can do and can be fully ready to take whatever demand based on these in house capabilities.
And before everybody else can.
Slide eight.
Comprehensive development capabilities.
As an industry leader in Asia Pacific emerging markets replay.
Replays of strong and for size on the calculation of our comprehensive site development capabilities.
The core of which is made up of our independent planning design and construction management.
Talking with the land of resources. This team is able to effectively execute IVC project and the navigate the road blocks from the shore there on time delivery.
As a result, we are able to deliver additional capacities well maintain low construction costs.
And swiftly respond to our customer for expansion demands.
Our average construction cost per megawatt for all foodservice Datacenters was below us dollar of premium.
Further in this quarter, one of our sizeable self build the substation lumped into operation.
It came from for 210 megawatts capacity.
And it is considered the largest the self builds substation that is dedicated for based on for campus in China.
To further strengthen our in house design team, we acquired a design house to further enhance our design and development capabilities and this quarter.
Leveraging this design house, we would be able to turn our internal design capabilities into an integrated design service to our clients.
Slide nine comp.
Comprehensive energy service capabilities.
We are also extremely focused on bolstering our comprehensive energy service capabilities.
Which enables us to utilize different source of energy and a highly efficient manner.
During the first nine months of 20 plenty.
As a result of our end to end one stop service model.
Our data centers power consumption demand remains the most stable and high.
Well the rapid growth of our capacity utilization increased our total power consumption to 720 immune and kilowatts hour by the end of September.
As a result of these attributes of the company.
Our rate of power consumption is considered to be very reliable each of the locations where we operate.
We are also very involved in the promotion development and implementation of powered treating and counted them in the local markets in which we operate.
We believe the amusement kind of them hold not only the power to help reduce friction and promote clean energy you the throughout a regional power market, but also augment our own economy of scale in terms of power costs.
We have also made significant advances in our development of sustainable growth strategies integrating more renewable energies into our operations to upgrade both our power efficiency and power cost advantages.
As a result during the first nine months of 20 plenty of our total power consumption from renewable sources was 361 million kilowatt hours.
Moving forward, we will continuously balance the mix of renewable energy usage with our ongoing efforts to reduce the total cost of power.
And taking our year to date utility costs and the total power consumption of the same period. Our group average power charge is approximately zero point for seven RMB per kilowatt hour net of tax.
Slide 10 it.
The equipment manufacturing capabilities.
Our equipment manufacturing capabilities continue to serve as the cornerstone of our overarching operational strategy.
As of certainty of as of September 30 of this year, we had acquired a total of 194 of crude and pending patents for further optimized our design to better leverage our OTI and model and continuously lower our equipment costs.
Among the new for key patents acquired this quarter.
I would like 203 of them, which will play a key role in doing on large scale AI computing cluster.
Breaches and demand we saw in some of our clients and potential clients.
The first is the indirect evaporated cooling food and water unit.
It is our proprietary technology first to be adopted on the large scale commercial use in China you for.
Actual increase the tolerable water temperature and drastically reduced of total and coupon.
In terms of if we helped with flow hundred decreased the PEO the.
The number.
The second one is the new generation terminal ultra low density precision refrigeration units.
For as we call it the wind wall.
It can support cabinets of on maximum density of 40 kilowatts for 60 view.
This intellectual property floaters solidifies, our industry, leading position the high end to the cabin and support.
As of today, we have deployed the wings war for support of our total of the 11 megawatts of high density covenants.
The third one is the new generation from more positions distribution unit.
For as we reported for the mid boss bar.
Because the porn covenants was different power density, which low cost and fast from borrowing well.
While also making the men and his work simpler and more reliable.
Right.
Now the above would conclude of a review of our operations results for the quarter I will now turn over to call for my colleagues volume to go over our key financial results for the third quarter of 21.
Thank you and me thank him and slides.
In Q3 and on the quarter revenue grew by 11.8% for RMB 467 plant last meeting from R&D.
418.1 meeting New Q2, net interest was primarily driven by the yield on the growth of economic the capacity in Q3 from 141.5 net of that the 174.8 net of that.
Net income grew again with the growth and certainly maglaque from premium income.
And and the 3.3 megawatt from the incentive even same news as.
And then in the from the Bright chart on the right hand side of the.
Our revenue growth and evolve and.
Yes, and navigate the imports have last year.
Slide 13, and 14 and uptake and automate the entity and the margin channel.
And finally, moving Asian, and the revenue for our total cost of the revenue increased by 10.3% on and mainly.
And ladies and applied to increase liquidity of off which meant the quantum 2.8, Prince and higher retention and through 2000 the thing.
Net debt and you can see depending on the slide 14, we were able to fit in the improvement of our adjusted EBITA and the market here to the real the increased interest of capacity utilization and help is on the construction.
And as your Threem and the adjusted EBIT and lead their reached RMB 210 of the increase we're moving with these new marketing and station.
Makes me on the 8.8, the treatment can guarantee and 73% and carry that last year and multi.
Non rat and plan to sections of accretion has ended and.
The other improved on the increasingly agency and the cost competitive me as the continued to deliver record and the profitability.
Hanging on slide 15, and.
For the actively managed our capital efficiency and achieved the we can reach out moving into average production cost and.
And the shrink too on the delivery of time Capex each year, Threem was and around RMB, nine and going to succeed and leading by September certainly San Vicente total capex for their around RMB 1.88 range.
And we.
We have the thinking of ongoing and simply.
Looking for Asian and across required the Catholic family care.
Next to RMB 446 planes feeding of operating cash flow and relocated from the high for the business into the business in the first one free opening of 10 retrenching on.
The 4.5, leading and equity financing from other private placement and on top of concurrent private placement and RMB 1.3 flow being price next financing.
And Scott that's at the net takes the effects of high key on the HCV transaction, which closed on the second paragraph on on the Companys cash follow yes, Rob and include one of the company flat and the completion of the far right side and.
And share net proceeds of.
Around new Afton sick strength, the tank and the meaning from IP on the each of the operating will be received and the record me look on Q from amazingly Baird.
Yes concludes our financial results for the third quarter, EPS and went back to average, meaning the DVU attendance and full year financial guidance.
And the we are happy to take any questions on hardware.
Thanks Zone.
Let's turn to slide 17.
Finishing up on slide 18.
As we look ahead to for year 2020.
We expect our total revenue range from RMB.
1.770 billion to RMB 1.790 billion.
And the adjusted EBITDA to be in the range from RMB 830 million to 850 million.
This forecast reflects our current and preliminary view on the market and operational conditions, which are subject to change.
For future, we're going to maintain our commitment towards helping leading enterprises manage their core assets in emerging markets and continued through consultative our core capabilities to become the industry leader for both Idcs solution as well as of the Lermontov.
For and social responsibility.
Now with this this concludes our prepared remarks for today, operator, we're now ready to take questions.
Ladies and gentlemen of and now begin the question and on to the session for wish to ask a question. Please press star followed by one oil for the food and wait for failure and the into the unknowns if.
The risk to cancel request. Please press star power of all hash key.
For the benefit of all participants on today's call. If you wish to answer the question to management in Chinese. Please immediately repeat your question in English. Please note there will be a short pause SP College the questions. Thank you.
The.
The.
Your first question comes from young the new from Morgan Stanley. Please ask your question.
The percentage for the opportunity to ask a question of.
The first for I would say the true.
The understand the little bit to income also.
And as costs.
I saw that in the past few quarters, such as the minion of cost actually is coming down despite the revenue on the phosphate.
Cost of rising track.
The managements and every more parts of the rate and behind that and the Ultrabook come off the.
And as cost.
The second thing that the with with all of this.
And this quarter company today for the almost 50.
Megawatts of new capacity around one of fiscal for total capacity.
Yeah on service.
For the we expect and.
A little bit of margin dip going into the fourth quarter given the as the.
Concentrated and new capacity deliveries.
The weather this new and your capacity growth diluted overall marketing a little bit.
For.
The third of the question is on the competition side, how we know that give us around the area for for tier one markets.
Including a highlight et cetera lots of the.
Tier for customers going there could you please update us and some of the demand supply dynamics and the low those places opposing front of your.
Your customers on the front of the.
Governments et cetera on the key resources. Thank you.
Thank you for the question nothing for the first question My colleague God's volume is very happy to answer that we're going to cover the second question about the our margin questions and I think our CEO, adding sales share grounds for the questions about of competition and Inc.
And then can and other and incurred.
Gross maintenance costs and other costs in this cost increase of around 40% mill and enjoy the Greek anything of the economies of scale. For example in Q3 of the newly delivered a two day the sentiment.
Our existing decades of sites.
Other from chop and from entering the first landing on certain business typically with the lower margin against seat count on the mid range and enabling our January of on up from our specific request and from time and time and now carry on the clear channel if the EPS those bar in the last half and second reason with the.
The key regional business.
And the shrinking and then.
And the mall and the mall radio ads and that migrant migrating to cloud and.
On the trees on the maintenance, we can't count on very very small portion on top of big name here on the margin is also on relatively low and also has created create volume cost the onto the decline.
This is in line with our Hyperscale data centers.
I think your questions of for the second question of Albea.
The the margin I think im going to start growth. The the composition of the be the margin is really the whatever the you'd be the adjusted EBITDA numbers, absolutely number and divide it by the revenue figures and the of this after the ratio is pretty much driven by the utilization.
But.
Keep getting the question about utilization rates of you the merger rates, but the if you do the us and if you look at the simple math utilization rate is actually the trimming by utilized capacity and the beam divided by total deliver the capacity at any given the time at.
As we scheduled to deliver some very big capacity or right around the year end on.
For 2020 year and percentage base utilization rate could vary and therefore, we believe the from the most accurate and the.
And the way into what the describes our business in the industry. The absolute absolute utilized capacity for year end, which we expect to be in the neighborhood of 190 megawatts.
For the V. The margin you may refer maybe as the best way for you and is to refer all of guidance on the revenue and adjusted the EBITDA numbers as of described in the TPP.
And you can you can conclude the as the whole year they'd be the margins bigger as low as the fuel for growth and margin figures again I want to emphasize as we plan to deliver some of big new capacity spread around the year end and it will take some time for these capacities to ramp up so yes, the percentage based on utilization rate.
And the EBITDA margin revenue slightly impacted our year end compared to what we have now but in absolute terms and in total megawatts and in total and RMB amounts we are quite comfortable with the current guidance range about a year and figures as the current ramp up for in service capacity.
The and construction programs for our new project of somewhat exceeded the already exceeded our previous expectation of most of the.
Thank you hi, and we think.
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Now I will provide the translation for Alec.
And accounts for more.
Organic and efficient quench and on the giving out has that with China national policy on promoting the infrastructure accounts, the code Red and capital market key and.
It is true and the overall I think the market and by Crave sharply the year. However on.
We believe that the apply.
I think the services net overhead on the authenticity of the customer on the quality supply as of Dec, and non consideration and ill far short of the market demand on the.
The other things that maybe of the customers can occur and real market side and the low key on focusing on things that need and the customer solving the key difficulties of the industry and the live by our core and the board and.
We will be aware of the competition by holding back on our strategy and caring for our execution and in high income.
And the.
Thank you.
Once again, if you wish to ask the question. Please press star one low telephone and wait for the need to be announced for.
For the mother of all participants on today's call. Please ask your question in Mandarin first day repeat again in English.
Your next question comes from key non hole from Goldman Sachs. Please go ahead.
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Hi, Thank you management.
And congrats on the SEC.
What are your side as well as very solid 22. Other guys. So my first question is in terms of on.
For the customer.
So from that acquisition, which is also an area of the lot of in that sense, our focus on the so from our presentation to the I noticed.
On a quiet and will come from.
Yes, the market if on the uplift.
Second our low fat.
Our other about our length of time.
The consists of square.
The dozens of pipeline.
What is our plan.
For for acquisition over the next three to five years. Thank you.
And I know, it's the this has the predominantly and going on.
On the kind on the ago bid on two of the bigger.
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The the Baytown centrality of assisted balance sheets on this issue.
And the that other funds the skew wenzhou and wages of inbound flights from boom the CCC.
Okay, I'll translate and entered into the intention and down and then quite change and are seeing.
And lately, okay, and the lack of people have asked the question and answer and action and all following our IPO cheat and its reputation and the market index has been greatly and we have been for actively of CLO.
Switching on the industry leader with extensive operations.
For our team data, we believe that Brian is average mutation and eventually and very natural outcome. So we thank you all and attention and leave the likely to focus their attention are continuously on that and down and going on following the IPO that income.
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So on recently of there are.
From the market that some of the of cloud service providers are those the more in house data centers was the outsourcing so in terms of flow.
For the us operators as well as true.
Anthony what kind of impact being so low.
They have on both the market for the company.
And to make.
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The the and whats element and sold into the on consider.
Some of the uptake of the teaches us in.
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Good day.
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Good day.
Outside of the translation for Allied and calming.
And so for the question, we believe that in the digital age I'd is fake and within the past and that we do infrastructure from that.
Moving on and knowledge that commonly agreed upon and inherent nature infrastructure should be opening to the gap on public and bringing the at the annual where fans to the society in other words on sales construct net or Onquest and third party professional interest capture the let me.
Should maintain and share and important characteristic improving the university allocating the liability 18, net and constant back of men.
The latter day three he shared are especially important now.
At the end construction of the safe reliable and Q2 non.
And at the same time recently.
At the enterprise and the planned R&D capability instead, it is model integrate the timing.
Internet demographic and again, Adele and that made in China and encounter in Canada, and the manufacturing in China.
Okay, and and hedge on we can see that the infrastructure industry has enhanced the comparative advantage at and on time and ahead and China. Additionally, common and hearing back from that we're leading the growth the economy and bed GAAP back the.
Net income cost that we'll.
Restructuring the value of King.
On incentive income up for team data that we will continuously focusing our strategy and provide quality infrastructure do difficult.
Like Spain, and it's important the digital leader.
And the fact that the internet gaming that could build there on inhouse aided enter Brad and the people that moving into.
Thank you.
Yes.
Thanks.
Good day.
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My first question is in terms of pricing because.
Alex just mentioned that as of the infrastructure on as an infrastructure service.
Let's see.
So the chips just on access and so I am sorry.
That's true data slicing of Radisys the higher versus.
Other other third party data from sites and submit our location and.
So do you think.
As of the.
And the sequential price pressure going forward or.
Actually providing from very different and unique type of services and as the result of that and maintaining our price increase from there.
Thank you.
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Sales were also on the put on hold and Thats you. The group of two channel the our fuel and I'm going to flow through the doses.
Cool aside from on the on the price on this on your own.
What's the how is for us the women's OEM pop earrings and go up on the is the way to T cell and the crews and the issue was on baby food on the phone call on the three jobs, regardless of the appeal.
So first of all of the post nuclear bomb put on your part of the agency.
The Assortments. The thing you have commented on the phone to cope with the uncertainty of somebody or downtown the on Utah, Kuwait the canola Paul the of the see the put on the bigger type hosted the bid on on hold on the your while she's the B. This is the leader of good ideas and deals and the current and wireless of the Thats little the Diva most of the Delta and team.
Got you hit it.
Our tax rate of extreme art and now share.
Well I can clarify that based on our information and knowledge on our habits out of this model has made archive and now the competitive pricing benchmark in the market that we are Craig.
On the true better and here on your question on the pricing and.
And I think the need to have the deeper understanding of the aggregate market and the industry.
Given the high announcement and the same geographic location and and the learn.
The interline product and services might be very good thing.
Our press of accessing our full stack professional services that including but not limited to power supply on the.
The power grid connection interconnection momentum for consumption, where equipment, the dollar being civil engineering and construction and.
Our construction and infrastructure services I, just heard of bed and.
Okay and network, maintaining proper management of terrific and shop on.
Were also on the stress the fact that equate the majority of our facilities are self owned so we provide the aforementioned selected by our own.
Some of the appeared on.
My only provide part of the service and our cost of services to third party.
There will be price takers and the government services covered out of the term on and so we like the empathize that on the centralized standardized and modern and I are up operating model.
The team data now has the power of the optimization of our reported advantage Ed from.
On the big enough on interest at the concluding on agreeing Howard and mission and utilization.
And the model of outward from R&D and operation income payment and park, and the which made up of constantly trying to create the back to the for making our imaging.
And this is one of the key leaving aside the increasing after investing of time and balance that we in the high and are on increasing the offer and all of the intent on our timing and lastly, we want to stress that on our increasingly on better improving in that the every time and thats not as of.
Starting with loans through.
We are charge, a higher price to our pricing of.
For instance.
Thank you.
[laughter] Phil.
Sales for you.
Sure thing on that Linda.
And just.
Good day.
And ladies.
Yes.
She will not change.
The allowance.
Yes, I may also on.
Absolutely and you got.
Sure.
Sure. The this is the stellar Jay option.
For the layout.
Yes.
Additionally, the on much of that.
Yes and.
Joe relied on the initial EBITDA margin.
Actually on.
In the your place.
No.
On the my last question and I notice that we we close the ops how are the power usage for the first nine months of the year instead of just closing on the number of cabinets or the area utilize at some of the other peers and the market. So I was wondering why would you choose the.
Power usage on.
I advocate the library that growth and then also is there any like stable relationship between on.
Our usage amounts.
And the revenue as well as the backbone.
Thank you.
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Yes.
Good day.
Within the appeal of the form.
The the Atlanta is the Philly.
And on teams, who will mean guys. The they correlated we retained cash flow Itala E. You'll get now you arm of the 10 does the on the Eagle goodwill on the then we'll and challenging rely on the slow the T ball. The Additionally, I've felt the recruiting IPO the billet juices.
This is the the methods and get these MDR yen from here the using the funds is about on the Idmc dig up on year.
So the young you won't be and high potential and how the ITC the things through the year, which is usually the seasonally on the eagle closings of the up we're not seeing the and that the army and easy on geographies. The vocal on both ends of the Sayiid bigger I'd see the some value simple Jim comp.
The good year, so thats number and the single doses of this year channel doing the.
For you guys sold that are key to the and now it's all on E D and other diseases of the like is on Eagle tens and share the panned on easy thing going on the NTT East of Oak and Fabio is on the tongue as the channel blending. Please lugo rely on the way kind of Q might above the up the within the on iOS.
Yeah, he's the the combo of the you'll the analogy nicely on the threes you've landed on filler.
The post the low end years down leg.
Keeping delay of Omega kilo and the the sea lung and the take on Sunday. The Suzy for you do for a long answer on the then easier on was out of the deal and the idea is for you the green looking for to see the is however for the.
The tinto share he will be on part of what's on the our accounts and the has the also.
The idea you on us using the free the legacy possesses and he is on the idea of here on the back and the other.
So did out and go the data and assumes the point you to sort of sort of the goes on to.
So those are the of the though the Pandora the for leaders the Hawaiian Linzess and see what makes you modify and doesn't necessarily to get all the who and reasonably and thus the only those of the single high PCR depending on the as you saw the illegally.
Okay, Great Alan and good morning, and.
On the recognition of we are the only enterprise only competing on time that that declares our IP capacity megawatt.
The current our power consumption and our average the connected car and we will do the same continuously do the same going forward.
Well and the net it as a growth to the core of this industry on the total card usage and in particular, if the net importing number can measure the deals that have been added the business.
And hence the cord and more accurate and analysis on whether the utilization rate and helping out whether the revenue and conquer the been going and trial.
It definitely on legacy better than the for area and the number of cabinets.
Asking the question about weather and the has any correlation to our financials and definitely will have on seller. If you will the any fluctuations in our financing numbered that will also be linked in.
In the process and correlation to on the power number at the GAAP.
On the for also like to draw your attention to our on disclosure of our being how are your cash number because.
The kinds of the sale and the important the I think the industry have because on a critical participating in the responding to the global climate change problem in turn on the Recoverability and capabilities and then I think the company are constantly evolving and well the entire.
Our low and making efforts on the Harbin on utilization.
For the long term commercial value and RFS and the third facility on.
And Tim data and committed to grow as our green power usage and color and again.
No nothing other than sort of where that unless you.
The sales as well.
And thank you very much Alex and go after the other.
Other pets and office.
And do have time for the pick the last question. Your last question comes from Auto light from Citi Research. Please ask your question.
Share on each side of our spare parts of the physician so light on some channel caution of courses the two coal cars at the cheap stocks sorry.
As much of a sense of the immense union. The EBITDA margin now, we shall kisses and allocation for the the growth out of the seat on margin the they hold the unique.
The first we other we're going on wages on coverage and bodies and John.
And just on the Linda mainly the link on what the toxins and that that enhance our mental and Jonathan the the.
The sort of basis of south.
Two of that kind of so of the top of the to the fund net assets for sale.
Sorry for the Hodges assaults contained and merchandise now the other thing done and as I realize.
Just on the NIM for this and so thats the key to.
And thats, it and types and so chill hail and she does.
The chart on the clinical Eco Ci and just what the the winter.
Waste and Charlie just to kind.
Congrats.
But to the the biggest channel we sell at the.
EBITDA margin of folks and Thats a sense I just wonder can you provide more color on the net.
And on cost and the dialogue and by the.
Quinlan and buy loans on.
Give us more.
The the percentage about how your cost structure, how you defend the following the repeats sensors.
[noise], Eric how are they actually regarding and discussion of Capex and the leasing revenue on the remaining interest on our consumption of and.
Megawatt for all the same.
Moving it into the it nesting and yet with leading various impacts. The remember this includes the shale and moving any equipment and the Asian up on.
The and acquisition of.
As the as invested cash.
We added of Larry.
Moving on.
Most of the our weapons business ended the only.
The net and other property owner February 18, we can't ignore and the improvement of.
For around 70% to 80% and.
Yes.
I think the for for the rest of the question.
The question about the hour on of the forward looking Capex number and also the other day.
It is now lower.
First of all on the Capex. This.
This year, we used to have a flurry of budget of anywhere from a 3.5 from frequencies that in RMB on Capex.
Majority of which is for those capacities early and service and those capacities and currently under construction as I just introducing the on our presentation.
Therefore, even do the math you see that we may incur from 1.7 to 1.8 billion RMB of Capex and before.
And but nonetheless, there also or is on share instead of a portion of this of order for Capex will be carried over to Q1 of 2021.
And for 20, and 21 clear of Capex.
We expect it to be slightly higher than 2020 is the only talk about the greenfields on products and and the ability related.
And the ability of building related the EPS.
Average.
And that merger acquisition related that on.
And in terms of the key driver of the revenue and.
In terms of the future on adjusted EBITDA for the utilized the total delivered and utilize that doesn't is a very important vigor to track. So of the give you. Some a rough range, we estimate and we expect.
The year end 2021.
Utilize capacity will.
We'll be in the range of 200, the for 270 to 290 megawatts.
And the and.
And the I think the after the formulated the overall budget plan for next year, we can give you a more accurate the bigger and answer later.
Again the.
You asked the question about the how we are able to accomplish the good solid the Q2 of the performance.
And the answer is twofold number one is the solid execution and the even faster execution and would expect that even under the probably the nicest situation in the future work and effort of.
For the effort, we working 24 hours a day some of those leads to ramp up the construct the speed that have free allow us the allow us to deliver other projects on time and too and the maybe a little bit earlier for our anchor customers and also the ramping up our capacities is faster than the original expected.
Probably partially driven by our on customer expectation and partly driven by our ability to secure a resorts make allow which allows the of the cash from other possible. So the second thing is actually be a recap of the we keep focusing on new incremental orders from our customers and this going to be of build into our future of.
Good for revenue contribution as well on adjusted EBITDA contribution for slightly the happens in Q3, and the pension and supervision.
Oh, okay. So.
With the.
Like the just the ago into sanctions on Zika choose on.
Just any downside on maker to of course, it's out of 50 and two of the K.
Just to achieve Samuel on junk order the.
And that the sort of going into yoshi, not legit of sorts of the Yoshinori shins I will make the seating.
And on the teach and that will then the.
Of the so that and bidding and amount has and so just to tack on cash and that rely on maintaining your can share through the pick a adjusted.
Adjusted to.
Because of the weaker Yoshida the true beyond the the.
Some of those that are to hit the target.
Some of the real shift.
And.
I would like to translate my question. So you just mentioned that.
Our Chinese the industry heads of baby.
The cost effective.
In the infrastructure, so I wonder.
How how much percentage of we have already the utilizes each are already low number or is just the beginning of the.
The cash.
The the the legal fees.
2009, your credit auto anyway and on league the.
The other commodity games free dollar woman the of the agenda.
Others, and there was actually an interest from that other them and the the.
Based on the the agenda of down the eager for him and not.
And on the go with some element of GT the day colleagues.
It's on bases are the ago on the bomb data I know can symbol of the Johnson she.
She is the follow up on the pools on the income on tease out of your evening.
Well.
On the studios channel non comp Echopark being down the.
Big of.
And then the share food.
Good job of kind of some of them. None go 40 down now on and the co COO and those down so down so again piece or the other side on the Eagle the visit us on them.
So on the for me and Bakken.
Highlight two utilities here the on a go back on kind of how your mills on the current on.
As of the digital is the one that quickly of weighed on the one deal and Miami and stood up please feel free zone and delaying the losses you Quanzhou.
Two microphones on chip.
Yes, and one thing alone on the had increased and the.
For the company has accomplished the into the previous questions.
I think on the other the major elements on on for why and she imply can take a little bit the competitive advantage over over industry average is our capability to control the cost not only the current capex cautiousness and my colleagues on the just mentioned on our ability to secure the achieve the operating related cost like the utility power and also.
And the other resources and Thats hardware and key advantage over other peers.
Okay.
The net rate compression and Alec check that.
And Dan This is the very difficult question, you and Eric.
We have already answered your question on.
Regarding the top hats and have begun habits are very efficient and very leading hyperacute match on the do have a very positive thinking about more about about our further development and manufacturing.
Find quickly on.
And what you have provided about the intellectual manufacturing and part of the game, what's driving the IPO is the stock.
Good day, Q1, Q2 more modularity the time on fire on a five net the equipment and the revolutionize the entire manufacturing streamline operations.
One Q, which is on.
The cost as much as possible and have our crane and enjoy the benefit of what the what they stack.
In this and we do also initiate and communications of manufactured overseas.
Add on at this stage I cannot see the the food and care as we have and owning insane and what we want to do and what we do.
Thank you for your question and we work with low calm and encourage the rental continuing attention to our part of their turbine engine.
Okay.
Ladies and gentlemen for this concludes today's conference call. Thank you for participating you may now disconnect.
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