Q4 2020 Chindata Group Holdings Ltd Earnings Call
And of 2020, our full year power consumption has increased to 1000.
And but somebody at 1 million kilowatt hours, while the 720 million kilowatt hours during the first three quarters of 2000 and <unk>.
And I'm, Australia, and our continuous improvement and capacity utilization and business growth.
Meanwhile, we achieved an annual average of.
122 in 2020.
Once again, the Liberty, our power utilization and efficiencies and commitment towards becoming the greenest and data center and China.
Additionally, we have continued to place a high priority.
Advancing our in house design, and R&D capabilities as an effective means to enhance our data center operating efficiency.
By the end of 2020, we extended our reservoir of AR.
Approved and pending patents to 216 from 194 by the end of third quarter.
One into our technology powers, and and effective cost management practice, we maintain our average construction cost for all your service data centers and less on U S. Dollar 3 million per megawatt during the quarter, which.
Which is well below industry average.
Our financials are also reflecting the progress that we're making and in operation.
Our full year revenue is recorded at 183 billion RMB ex.
Seeding the guidance range that we provided by 41 4 million RMB.
For the fourth quarter of 2020.
Our adjusted net income reached a historical high of 58 million RMB and has stayed positive for six consecutive quarters.
Slide five.
During the fourth quarter of 2021.
We made significant inroads and our overseas expansion.
And Malaysia.
And it's more than 40 megawatts of indications of interest capacity from an AI digital leader.
Which prompted us to start the construction of <unk>.
Sure and 106 facility and.
In addition, we converted some of our previously announced idle capacity into a contracted capacity with a leading international cloud service provider and added 16.35 megawatts.
And India, we added 10 megawatts of newly constructed capacity by extending our collaboration with an existing client.
Richard and another leading international cloud service provider.
Our construction of BBY, a one facility is making substantial progress despite the lingering epidemic impact in Mumbai.
Back in China.
Added 43 megawatts of new and service capacity through our <unk> and 11 eight and.
And <unk> zero one facility.
And then and the additional 13 megawatts of new capacity and the construction through our suite and.
13 facilities.
Furthermore, we received 19 megawatts of additional Io and capacity from existing anchor tenant who is a leading international and cloud service provider and a new customer would be a high quality international cloud service provider.
Next slide.
And so on overdue.
The asset overview table here demonstrates the solid progress we made in terms of our capacity expansion during the fourth quarter of 2020.
We completed construction on two scope on.
But our scale data centers, and China and put them on service.
To satisfy rising market demand. We also broke ground on the construction of one new self owned data centers in China during the fourth quarter.
In terms of capacity addition, there.
Two newly delivered data center in China.
Mainly <unk> and 11, eight and CEB deal and one.
Added a total of 43 megawatts capacity to our larger RBC network with.
The in service capacity of seat and 11 8 billion and 100% contracted.
For the data center, we broke ground for construction in China during the fourth quarter, namely <unk> and <unk>.
It is the facility for the aforementioned high quality International Cloud service provider located close to our CE 019 per campus data Center.
Our CE <unk> data center will support us and meeting the substantial demand from our existing customers in eastern China.
While we expanded our capacity.
Further improved our datacenters utilization rate.
The utilized capacity of our in service data centers grew from 175 megawatts by the end of the third quarter, two 221 megawatts by the end of the fourth quarter.
As we put more data centers into service and improve.
Their utilization rate and a methodical manner, we should be able to generate additional revenue accordingly.
Next slide company strategy.
And the fourth quarter, we continued to advance our corporate capability buildup and three core areas.
Data center development and construction.
Integrated energy solutions and.
And equipment manufacturing.
We have established three subgroups.
She industry.
<unk> power.
And Tim and ideas.
For the further development of our capabilities and we aim to provide tech leaders and industry was more valuable next generation and computing infrastructure solutions.
Next slide.
Chip industry.
<unk> committed to becoming the leading partner for our customers and the development and construction of next generation computing infrastructure.
Leveraging our crude stack development and construction capabilities as well as our domain expertise.
We aim to make sure that the real demand of customers is being met.
And to leverage our expertise to transform the current industry value chain and provides digital leaders and users with infrastructure products on to University reality reliability security and economics.
It is one of the most differentiated capability fortune data group.
And the numbers can show that.
Chin data designed 453 megawatts per group by 2020 and.
And 64% of group's total stable construction expenditure or cap within the growth through.
Industry.
Both are contributing factors of our much lower than industry average capex number less than 2 million U S dollars per megawatts.
Net stage.
She and tower.
And he is committed to becoming the driving force for offshore and China's datacenter industry into the zero carbon emission era.
Assuming sexual shame power is dedicated to simultaneously promoting the development of new digital infrastructure and large scale consumption of renewable energy.
To accelerate energy Revolution.
And the Internet sector.
So as to create a new scenario of digital economy.
We recently released our 2030 carbon neutral roadmap.
For which we will give more details and the ESP session.
In terms of the development of renewable energy.
And have achieved and meaningful progress and our 150 megawatt solar panel generation project.
And we received approval from development for development from the government.
We expect this product to become the first self generation sales consumption renewable energy and power plant.
Moving infrastructure and developers and operators from China.
We have also signed an agreement to develop.
<unk> energy with an expected installed capacity of 1300 megawatts and the 40 degree most latitude region.
And where there is the highest concentration on renewable energy resources and the world.
This agreement with <unk>.
And so help us to implement our 2030 carbon neutral plan.
In 2020, we continue to increase our utilization of renewable energy across our data centers and.
They achieved a 51% renewable energy usage ratio for our data center operations.
In addition, we continue to focus our R&D investment on energy utilization to develop a highly reliable and scalable power capacity.
And sure that interrupted availability of our datacenters.
Recently, we put our leach on data center into operation.
Thus, establishing the first president's and China.
And our data center campus with a 110 kilo voltage and square cabinet and the electrical substation.
In addition by raising the low grade power transmission lines from 30% to 66, 7%. The main through a project improved our data centers energy efficiency greatly.
Next slide.
Tim My idea.
He is committed to promoting white labeling of key digital infrastructure equipment.
So instead of taking product iteration for Hyperscale data center campuses.
Building, the world's leading Hyperscale data center manufacturing platform for axis accessories, and equipment specialty equipment and.
The weighted assembly lines and other high end equipment, and ultimately becoming a trusted provider of data Center solutions.
Timna idea, where leverage talented core digital infrastructure system to enhance industry and balance sheet and synergy.
<unk> reserved the core technologies on a long term development of the industry and.
And to improve industry chain independent and stability.
And the fourth quarter.
Jim and idea unveiled the grand opening of its high and equipment manufacturing campus.
Next slide.
Yes.
All other years, our balanced and sustainable approach to business development and operations have served as the foundation of our success.
And the environmental and sustainability trends.
We remain committed to optimizing our power utilization mix and.
And extending our use of and renewable energy across all of our data centers.
We are on a company of May one.
The first digital economy company in China to announce a 100% renewable energy growth.
And the first company and China's Internet technology and industry to release, a 100% carbon neutral roadmap.
In 2020.
And we rank as one of the top Internet technology companies in China in terms of the renewable energy solution performance.
Looking back.
We started to optimize and upgrade our computing system.
<unk>, our overall energy efficiency and the year 2015.
Starting from 2016.
Have taken source of energy as a key factor of site selection.
While prioritizing clean energy utilization and cloud data centers and the operation.
We first step towards our long term commitment to 100% renewable energy consumption and further optimized and the year 2019.
For the past year of 2020, we continue to build up our capability.
And we upgraded our renewable energy business units into our new subgroup chain power.
Going forward, we are planning for it and investments in renewable energy recycling of heat generated a data center.
Promoting carbon emissions and surrounding communities.
And ultimately to have all of our Hyperscale data center being operated using 100% integrated renewable energy solutions and to invest no less than two gigawatts installed capacity and renewable power by 2030.
Financial overview I'll now turn over to our VP of finance to go over our key financial results for the fourth quarter of 2020.
Be mindful of time I encourage all listeners to also refer to our earnings press release, which is posted online and.
And that includes our quarterly result, along with other additional detail.
Please note that low number today.
RMB terms.
And that all comparisons.
On a year over year basis on.
Unless otherwise noted.
Please.
And then.
And first quarter total revenue grew by eight 3% to RMB 550, <unk> meeting from RMB, 467, 5 million and third quarter.
Free cash.
Memory, driven by the robust growth.
18 megawatts capacity in third quarter to 201 megawatt. Some 174 eight megawatt in Q3, which includes organic growth 30 per megawatt from previous Internet data centers and organic growth.
<unk> megawatt some new incentives it is centered on.
On a year on year Beijing total revenue in Q4 grew by 59, three and 2%.
Moving on to slide 15 on our expansion in margin channel.
And in line with our business expansion and the revenue and growth.
Cost of revenues in the fourth quarter increased by 17, 9% quarter over quarter.
And then increase was attributable to per quarter over quarter increase.
$15 three.
<unk> cost and a quarter over quarter increase and so forth.
Three and three 9% and other maintenance and other costs.
As demonstrated on slide 16, although adjusted EBITDA in the fourth quarter was RMB $239 4 million, representing a year over year increase of 72%.
Adjusted net income and the first quarter was RMB 58 meeting compared to RMB, one point on meeting and is being carried out last year and RMB 48, two and meetings in the third quarter and up 2020.
Over the long term, we are further to increase on the accretion and the cost and efficiency to improve our operating structure and to support our continued profit growth.
Turning to slide 17.
And it can be chunky capex in Q4 was RMB $968 nine meeting and the total Capex neutral, Yes, 10 day turnkey was RMB <unk> 77 billion reached and mainly used for land acquisition and construction and equipment and perky.
As we continue to actively manage our capital efficiency and to reduce our delivery time.
And it gets back to improve our construction cost as well as on the overall capex structure.
On slide 18.
Those bar charts demonstrate our financial capacity and sustain future organic expansion of IDC business.
And the support of required capital expenditures.
And then Sanjay turnkey EBITDA.
Cash generated from accretion was RMB $664 9 million total cash flow from equity financing was RMB 668 billion and the total project financing was RMB 151 billion.
Moving on to our guidance on slide 17.
As we look ahead to the full year F 2021.
That's our total revenues to be in the range of RMB, two 7 billion to RMB, two <unk> and the HDD and the adjusted EBITDA to be in the range of RMB 128 billion to RMB 133 billion net.
This forecast reflects our current and the training and the reviews on the market and operational conditions.
Which are subject to change.
This concludes our prepared remarks once again, operator, we are now ready to take questions.
We will now begin the question and answer session.
Yeah.
Note that for Chinese third party funds, we can do that.
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So if you wish to ask a question. Please press star followed by one on the typhoon and wait for them to be announced.
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Keith.
Once again to ask a question star one on your country.
Our first question is coming from.
Young from Morgan Stanley.
No question.
And.
Thanks for the opportunity.
Congratulations on a strong result.
Question is Oh and also effects.
Our children and are on board and we will call customer on the refined a there'll be a lease projects on the asset side.
Could you please share more detail on.
Business models, and the contract term Oh I see profile.
And.
New customer growth.
And with.
Her question is.
2021 EBITDA margin guidance.
Hi.
Small year on year increase.
Still lower than the level of company achieved at low.
Third quarter loss share.
It looks like the cost of our increase our grocery fast could you share more on that.
What are we increasing ton mile so SG&A or cost of goods sold and cultural.
The last question and as a housekeeping one day with Watson.
And.
And the other net items this quarter it looks low relative to electric turns a little.
And.
Could you please.
To elaborate more about that.
And I went to the translation of our funds.
And do the Winchester South.
Sure Jacob.
And I cannot guide you on Korea, Sundar tutors are sound and the knowledge.
So on coal and charges causes a cohort that would go on carrier more sure of course on she share for.
And so hopefully book.
Oh, I see that you will say well.
Nokia and <unk>.
And so I'm kind of RDR Union the truth.
I'm good EBITDA growth.
And so I'm sure, they're shipping marathon and suicide.
Sanchez channel hundreds or balance.
On the troops and contractual sales going on.
Felicia on tour and charter to Petrobras.
And I wish bone and that's it.
Moving on to the whole number.
And then the.
And so there's all kind of related party.
So Chicago's the harsco talent agenda digitalize, it sounds low teens out there for sure.
Sure.
Okay.
And I'll take questions.
Thank you and me.
Could you. Please take the first two questions and a wheelchair and can you go into the third question.
I think yes. Thank you for the Great question about the first of all about new customer contracts I think the first of all very very positive about it and show you our customer growth.
Suffocation strategy and it works and in terms of a contract because we are bound by the confidentiality clauses and this new contract what on what can be close to the profit public market and the moment is actually hits absolute changer.
Fever, Vocable contract and that's number one number two a lot of scope on the service and life, which is a common industry practice and number three we actually gonna and have a very very I think.
The.
Reasonable schedule to put this contract and the executed.
And the time and fashions.
Actually the first per my answer to your first question.
On a second question I think.
As our guidance indicates you can see.
And actually our both of our revenue and adjusted EBITDA are pretty much and life was most analysts forecast range.
As a matter of fact, if you take the midpoint of our revenue.
Which is to separate our $2 74 billion and midpoint of our adjusted EBIDTA figures, which is one point that semi <unk>.
And one tier 1 billion per module, which should be very close to a 48% and.
Which still amount of ambitious Tom.
On the revenue side.
And our drive to reports.
The positive development on the customer acquisition and the contract execution.
Weighted areas.
On the adjusted EBITDA side.
We also expect that in the forecast range largely.
But as we just introduced and our Investor presentation. One of the companies on 2021 strategic objectives is to make a reasonable investment and three core competence.
The building blocks.
She and industry to empower and she and idea which.
Could be that we will reserve a little bit more budget for the spend and necessary spending on talent acquisition.
Training and system and RMB related development and this ethylene capability building and.
We believe this expenditure and the capacity building is a very necessary.
Two actually and maintaining our competitive advantage along the whole value chain.
Moving into the future given the fast development of the technology.
And renewable energy utilization as well as the industrial and competitive landscape over the years and.
Third reason.
And is actually be one of the customer because they have a little bit design optimization.
Profit is growing all the we think that there might be a slight a slight risk that'd be.
And they call it which may cause be a slight delay of the.
Contract delivery.
Around the end of 2021 and so we can provide a better assessment and our future flow. The army released to the public market.
Now turning to guidance for the third question Yeah.
And do you mean other items in the financial statements and there is.
And my recurring contingent provision in the fourth quarter and couldn't be shrinking which impacts the EBITDA.
That is because with all of our strategic regional expansion and deployment of a China Hyperscale model across Asian market to further optimize the solution and enhance the cost and the efficiency advantage, we changed our non compatible vendor and India.
And the best estimate estimated the basins around the U S dollar and for me any contingent provision was made and for the settlement, we've done and regional vendor exclude this factor. Although you didn't imagine it is generally in line and need to average flu year margin this quarter, and really trying to contact and Indiana and.
Current and efficient and on track and project execution meditate on readjustment age appropriate and there's also proof on the deployment of our Hyperscale models and India is successful.
And from here.
Once again, we wish you Arthur.
You bet.
And Tom on the Typhoon and wait for them to be announce please note that for Chinese speaking participants. Please ask your question and mentoring.
English.
So your junk zone.
Kings and young children.
And you and likelihood.
Our next question is coming from James Wang from UBS. Please go ahead.
And Glenn and kind of watch a.
Hot where she was reading the free sugarcane and like I said moving here again, I don't know whether I'm going to share with you on tissue Quentin you undergo surgery to cash.
So just hang up per man not work the way, it's your targets because of the cash.
And so machinery, and really especially on LDH and I guess it could.
Yeah sure just sounds simple.
Holy Grail, Shimmer and I found that would be kind of to sugar.
And what kind of on 600 and be able to attack xiaomi or they share a transaction and they say.
Yeah, and we continuously look and see if you're on allocation.
For the bedroom and weight, either 10 barrels a day.
And then clay on for some younger zone, you should do and to Yahoo.
And he was on the other day calculus, and what kind of goes to them and to highlight with channel can and do what I just shipping back. So you see quite a year with Paypal.
I hope many of them and they always share.
Ex who paid us yet on that.
Let me share and when I got into and they typically got and I Hope. He tells you that you highlighted by the Changsha and beer for Equinix and digital Realty.
And that's where <unk> really aren't Shimon and.
Uh huh.
Good evening management can I get and understanding of the rationale for setting up the three business groups and industry power and idea.
And also if my understanding right that you will be more involved and the renewable energy generation business and how will it impact on your cost and Capex going forward.
And the second question is on.
On the other piece that kind of business I noticed that you sign up more contracts in that segment and.
Can we get some idea of how much capacity reserve the hospital Odyssey's project and what returns on like in these regions versus say mainland China and also for these global cloud customers and what's your competitive advantage and that's it.
And the global data center providers, such as Equinix and digital Realty.
Yeah.
Thanks Gene and me.
As you appreciate these two questions.
Sure.
And Bob and I hope that someone who's a member of EBIT on this year's share sometimes on the leap on Clark.
Particularly with some of our key clients opiate use Chicago three gross will be consumed on a big operator, but you've got going on about you got on the wheat and some of the drama on lead Gen.
The other insurance, you're going to lose on the former sure short term debt maturities and trend down and should go should go and try and to ensure itself where the figure on the.
Temperature between me and.
If you use them on kind of on a central Florida.
<unk> W.
Cape on essential tremor and we.
The whole Carinthia Jewell Coke with interest income.
And you how the future will go to our portfolio.
And so essentially the change between industry and is committed to becoming the leading partner for our customers and the development and construction of next generation computing and.
Infrastructure, so to be better.
To provide a more pillars could've made service to our customers.
And I hope Timna and day part upon the Apache reported a woman's lifestyle.
And really between GAAP.
To my mind share.
Each one of the recruitment and conversion.
And maybe what you can punch above the EBIT adventure and should yet.
And they got Luther ammonia and the bathroom on Soma literature and use it on that and do you think about Hulu.
And this year is on Qatar and things.
If you put yourself on the white and India and that's it.
Sure.
Gasoline from good to go out and let me off on me at all for them on that.
And in.
Turns out super duty on Chinese, but she's on mute.
And the two power is committed to becoming the driving force for us ushering in China and stuff data center industry into the zero carbon emission area.
And when you touch role to empower is actually dedicated to simultaneously moving the development of new digital infrastructure and the large scale and function of renewable energy to.
And to accelerate energies.
The evolution and the Internet age and also to create a new scenario of digital economy.
And I hope to Ebola there does seem to be a partner Tushar two ultra truly you previewed shoot with GBM plenty on sugar that buyer profile and Tal. Thanks for the final trigger and taught out there and most of the attention attributes hunk and they're good actions.
And so all these agenda taught out there and what should we thinking about Peru and.
And when you show up it plenty of sugar due to.
And transient and called on by Schlumberger.
So the short term and there should be consumed and were trying to acquire and budget.
Much of your foreign keys, and trunk and broken.
And can drop off and he said subject.
So the idea is committed to promoting and white labeling.
<unk> digital infrastructure and equipment for 30, taking product iterations on Hyperscale data center campuses and building the world's leading Hyperscale data center and manufacturing platform.
Accessories and equipment specialty equipment integrated assembly lines, and other high and equivalent and.
Ultimately it will be coming on trusted partner.
And providing a more tailor made products servers to the data center solutions.
So I can tell you assure a woman value project.
And do you kind of draw a year with a company and you've got people and labor.
Publicly released and our direct channel.
Thank you Patrick drop where we can acquire dilutive on yogurt, Shanghai popcorn volume and a culture, where people income future Holly before so I think the positioning of the Liza three groups.
To the to the mother growth, which is that you and data group.
There are similar to Q zone.
And logistic and put a relationship between June and logistics and for the June.
Holding company is essentially and so the first stage. The focus is on the provider would be at the logistic related service with June visits on the business.
Economist scale become bigger and started to growth its business to external customers and become the leading logistics and service provider for the industry. Okay. That's absolutely the answer for you.
Our first question the second question about the overseas, especially on children.
So let me get Egypt, Arps on behalf of Equinix, and digital Realty warm and tissue issue.
And <unk> silicon with Dupont and bunch of other harsh and Gulf of Dougherty growth to go on the physical coverage on your shirt momentum.
And some punctual and geared up with on the senior director of that okay. Thanks.
And getting it on sugar and that show a woman to job assures and sheetrock com and to juggle shifts and buscher imputed interest on people that sell on the amount of hei.
And what and when the Commonwealth's on income daughter should guidance, yet so it's and maybe it'll be interesting about corp to growth.
Shankar either people rely on the pharma, they're showing them more for what she wants on walnuts Fisher share and door. The initial batches and for trauma and then come to order ships, you drove that and be cut off. So you can share bodyguard and more shop space on women kitchen, and bathroom quarter, each of which are more on the 4 million day.
And what it on more share and all of them are pretty big cohort keep on clean Yogurts, Roger Lamotte harmony, and Nordstrom and I'm going to order should that show growth higher.
And so when the yield and.
Kind of going on so youll share.
So our.
And there is some mark somewhat commonality for our business presence and.
Overseas market compare to our peers like Equinix and digital Realty. So we have a little bit overlapping reach.
Our regional presence and the Asia Pacific region by the hour.
Geographical focus is more on the emerging market and like in Malaysia, India and also our suburban area also on tier one city on their focus original.
Forecast geographic focus is more on the tier one city.
Big cities like Singapore, Hong Kong and also accordingly, so our business model is more on a greenfield and the dominant and our lunch bag service and solution.
Using our successful price in China as an example, we believe based on this day.
Merchant market outside share of on city, and Greenfield development and my wife's backed off solution business model and we can provide a better more comprehensive and more valuable service to our clients, but for our competitive in those region like Equinix digital Realty.
Their experience and their strength is more on the merger and acquisition.
And interconnection related business, which currently delayed.
We're still play out and.
Catching up on.
In terms of our financial margins I think the I will say that I cannot disclose too much at the moment.
I think on our margin should be.
Should be in line with the industry.
And they come on levels.
And if so I wasn't sure is out and it's difficult to ship Oakley and without and brought it back but that shouldn't and entered the high Andrew on the.
Michelle and Youll don't take a day, you wait and I can switch and she.
So you should be on me.
Our concern and that's without that and you equate share with all the Codell zone and we are showing on the car Park Nutritionally unsound out collection device and pick up on yet.
And some of our short to the shortfall to our Walmart and take Tom Brokaw, Java and country club and you've got some people didn't value.
As you can see that come down and the loop on Clark creature and fundamentals.
And I'd like to give them away.
Fox will pay <unk> 80, a tonne deal structures and Chicago and credit.
So I think I think that Theres, a high probability company and chemical upper stream.
On to start B, and renewable energy and power generation and supply areas.
And that's a pretty much a analyzed on non accrual carbon neutral strategy and startup by the central government and China as well as in line with companies.
Accumulated experience and also strategy over the past three years and the related deal.
And keep thinking.
Alright, James This is Theo Brito can you kindly repeat your last question and English again, thank you.
Oh.
So I'm really sorry, my last question was just on.
What the.
Whether the company will go more upstream into renewable energy, which Nick has already answered.
Yeah is that right.
So am I I don't have any more questions.
Thank you.
Thank you once again, if you wish to ask a question. Please press star followed by one on the telephone and wait for and into the unknowns Youre on.
Our next question comes from <unk> Wang from Goldman Sachs.
To your question.
Uh Huh al what's it going on that.
Oh boy on.
Tom.
And he really super vertical growth.
Uh huh.
Gross downward.
No it's not worldwide growth.
Sure.
And I think the sound more like hard on why that's for me.
And outside of Portland, and why.
Sounds good.
Sounds good.
And kind of on road.
And I'll walk on Doctor, Ohio on except for something with Brexit on Mark.
And so I got share something like that share.
Cognizant.
On to the theater right now.
And which I don't want and yet when it comes out.
Yeah, Joe shoes on the Army Oh.
And it sounds like Russia, so she alcoholic and Shaw, who ran on and off.
That's not what we've done and that's really part of what you're talking about.
Uh huh.
Helpful.
Perfect.
And the saga.
So on and create content.
Uh huh.
So on health.
With regard to Galleria and Dan Palmer to examine the OPEC.
Our EBITDA margins on I shouldn't.
Uh huh.
Arthur Thiago and I Hope you got all that.
And once you should kind of on the EBITDA margin southpaw.
And I'm sure that he's watching right now.
And maybe I missed it.
Okay that makes sure that you saw COVID-19 kind of on incumbent on me and I use here.
They're kind of on.
So like I said, we will go on on.
Because as the market recovers.
And how do I groceries on the Rd argument.
And for Capex.
No it isn't.
And so first of all.
So that's on me.
And Frank for that and your customer and pocket right. So my first question is and Ah.
Pricing trends as well as Martin and time of our with our on recently.
Recent project ourselves a comparison relative price and that's why I E.
EBITDA margin levels, particularly on.
Domestic and all parts of the project and then the second question is in terms of art, Yes, your roadmap on.
I've seen that and that you can see.
And we're showing that from 'twenty to 'twenty two 'twenty.
One of our and initiative is to invest and invest and develop either renewable energy power plants. So just wondering whether we have any investments on our capex plans over how many years for this.
Renewable energy power.
And also I for it.
Brexit and what type of OPEC savings and margin improvement.
And the mix of longer time, and then does that question and on us.
And I saw that and the fourth quarter EBITDA margin was a matter of it sounds like on for a quarter and so I'm wondering what went through income there and whether going forward that there will be similar seasonality and the fourth quarter and also on what our Capex guidance for 2020 one thank you.
Thank you Tina on now and.
Could you please take us pricing and question and answer and margin expansion.
And then Alex Ware, and tare teenage and she doesn't have crunchy and thank you.
And they gave us.
And that's still kind of franking pricing strategy and true Tonight.
On the first phase of gene data and really skewed due to other hyperscale model in the emerging market strategy. In this regard we have been and perhaps read that experience and expertise on the integrated the first day.
Gross baths Hyperscale solution and.
Including the renewable energy solutions and <unk>.
And Greenfield development, and and then E mechanical and equipment investments and James and the connection and ex term and.
And that's regard even further and keep on Egypt region to upper speed and explore further cost advantage and need to just introduced through their capability. So I think for this kind of pricing strategy and the margin will be less impacted.
And besides this we can also provide and the SEC.
Segmented vs.
Solutions and part of the value chain, which means we are able to provide.
Providers and customized for some traditional segment, that's created and the market. The competition for this park will be most it and possibly there will be price reduction.
In terms of their reach and as we mentioned we have the advantage in the construction and the equipment and also in the whole lifecycle management. So we will still be very competitive among tears and you're sticking to and they are another question is regarding the comparison between China and oversea market.
I think this is it depends on the different model in China has introduced a true motives and oversea market.
And if wage.
And if we.
And we see that on a certain consciousness provider and it also included through integrated distribution.
Do you see the China market, but if we have other requirements such as the beach power and ready to pass through on whether it's interest Ricci.
And we will be dramatically different.
And just pass through but you didn't like and we were much higher.
Yeah.
And that will transfer to <unk> and explain right, yes to your question.
Hello and here.
And what kind of Omega.
And so these are trying to figure out.
Eddie.
And that's either Honeywell and system kudos to them and them yesterday on the.
And let's see if there's even a ciena.
And then she says that it's you know among each other and cigarettes and getting out and the incentives and during the downturn and simply you'll get dumber and G suite.
So you're limited to her and she's on the yard is I believe and seize on top is going on.
Even though they wouldn't he sees on the citizen and 17 NAND zone.
Okay understood.
The bulk of the intense EBITDA with Sedona.
And with him and I make the.
And but no and this is I'm.
And with him, but I'm trying to do it and we should have impact per se.
And in particular.
And I think you Susan.
And so compared to and then later on.
He is sitting there it goes without downloading and relied on.
I mean, there's some value deal.
And.
And neighbors sooner and some of them.
Oh no. It says you wouldn't view and are you guys at the tusa on either on a chance.
And so.
And then it sounds like the comparable and the defender and the.
Yes, it's either program.
Slip on and then on the hunting them Sidoti and <unk>.
And so as I see it.
And sort of a piece of it and I'll tell you.
It's usually based on.
Susan.
I will now translate and Alex to answer.
First we would like to save that index industry. We are the first operation to disclose the detail of how we use on our energy.
On <unk> and <unk>.
Last year.
<unk> data as a single enterprise and operation in China have already picking up one four and 10000 on the entire country and power usage.
And on that.
Based on our leadership.
We have been ex.
<unk> are very powerful Chow.
And so I share in our development.
And also when you talk about our plan to build up their power plant I believe you are referring to our first.
On a solar power station for a total megawatts and 150 megawatts.
And at this stage I'm not in a position to populate the Kazakh announced to the public but we can be very competent and telling you and our operation cost will be coupon decreasing and will be lower and our current utility costs.
The level and.
And then lastly, we would like to remind everyone that we will very soon and below publish our second ESG reported to show everyone. How we do and our ESG work stream for the entire year, 2020, Okay and on <unk>.
And the second in day to day on the Earth on.
And so well have some surprise for everyone.
Thank you.
Okay and fever.
Yeah.
Yeah I think there is another question regarding the Q4, EBITDA fluctuation and sorry, just introduced and are already beginning and this is due to the nonrecurring.
Yep sure no contingent permission on for Rob.
And you asked on a median for the settlement of a region known vendor and India and this is true.
On the other Hyperscale business model with the claim and in India, and we have already and.
We have already on and ensure our project execution and assigning new contacts and India. So.
So those data will not be repeated in the future for the fourth quarter EBITDA and tracking.
And another one is regarding the penthouse and guideline.
And the asset overview, we have on altogether and countries on projects under construction and service and for 10-K 21, and we expected for two five BD RMB for these projects.
Capital expenditure and besides this we also have a potential merger and acquisition pipeline new projects and the expansion and the <unk>.
The market is now so we will have additional capex expenditure and this theory yeah.
Our formal guidance yet we're still fall off as my follow up.
And all that.
Moving on.
Sure.
It sounds on if I can just such a book.
And so you really got your box and I remember one offs.
A follow up on a follow up I saw that and the fourth quarter on maintenance costs increased by over 40% Q O Q, so that one off and you mentioned as the book.
And with it and this item right.
Yeah.
Yeah, and Cri and then if we exclude sector. It is remain to average arranging a comparator with the previous three content.
Okay.
Okay.
Your next question comes from.
On June <unk> from CIC, she she's on.
And to your question.
And how about all kinds of talent.
And that's what's going on for them too that she doesn't have and Alex.
And I can go on to issue a bond and Michelle go channel and maintaining an awful lot congressmen and comfortable with the traditional golf course and that too.
Come on and cookies that Michelle and thoughtful Dayan and Sean Kang tornadoes and Nantong and shoots that are still going on out there you.
Got it to our balance sheet.
And our cockpit the light on that.
Yeah, and he's on the interest you say, Joe will come on towards that and knock on doors and be found that to be I think that's your hometown auto.
And now call I mentioned that is dead and non core.
And it sounds like as we go on.
A T.
Tissue types and paying up a point and you're talking about like Los Angeles on balance.
Nokia has a link to issue a bond mutual share, sometimes without their choice and Goldman and Charlotte.
One on just give or take on that without what we said was our capex now.
And I'm going to take on.
On slide Georgia congregations on day one.
And I, that's shown on the Concho and shop.
Oh, no par value.
So on my first question.
And I expect more and the accident.
And beyond.
Moisturizer and catch up those costs and like the mountain and.
And if so what are the metrics that you would take into account on acquisition.
And equally I saw and into more and that's the low coal and natural phenomenon and not support our existing and into clothing and technology. So a is that will that influence on contract and the construction costs and coach and with them on the second question and and <unk>.
And really establish a theory.
Because we have two important patents and forgive me, but awesome, Alex and Saks and.
And what's your take on more inside the plant.
On a.
Cost savings or on the search on revenue contribution income.
Thank you and homecare.
And Alex and I'll answer both of your questions and it's pretty.
Simple without the <unk>, which is on the time. It was on a gross is a bill to you and it seems as though you're over there.
And that's the only thing kind of on BELBUCA, and our civil do them and really.
D G cope with a young man.
And then John.
Wholesale and me as long as the ability of the money is on the on this.
Good.
And the only goes on as you move by moving our timber.
China momentum it boosted to Ingo dilution, I mean listen and shop.
On the gone and so you're going to put on and she maybe on the come early fill and Michele. So you don't you don't know how they did shoot and so what I'm, saying on the cities and he and she and her team, though and you said it sounds a little bit I jumped on.
So you're telling me and what kind of thing and we're moving through a bunch it saves them time.
And I see data.
And the AMA on capital infusions.
Super burden on theater.
The issue with it and it tends to and it seems that the channel.
Sure.
And you sort of sampling.
Okay, and I'll translate and Samsung.
So we are aware and it's on the tools and targets on the market.
And but we are more focused on evaluating whether that target could provide authentic and will core value to our key anchor customer and the end user of our customers also we are focusing on.
And whether and as a management team and its quantified or equipped with a quantification.
And on to.
To strive for the same zone as ours.
Other than these we do not think Arthur prioritize consideration.
Further and you mentioned and different area in different geographic area.
And Mike has a different business model of our construction model than our current operation.
We respect the different.
And when they're choosing our target were low.
I'll keep on originality and also the innovation and its marsha and can we.
We will definitely adopt the motto that day smoked benefiting and load on.
And why are the local environment.
Thank you.
And then he gets easier and so it's not so.
And so going through.
And do you do presses.
And then penciled kombu, Dupont and Dow you should go on gender and somehow sushi.
So, yes, its usage and tend to pop up and doses somebody channel.
And I thought the on them, which and.
And and cheese volume liquidity about Harley and who should equal and so really the share.
I don't know season on the top 10, and she's done here and that kind of.
T J P and Ida that's all true.
So you can so what are you guys kind of on the pin pad without at least I'm going to be which you don't you don't need them.
The only tongue and lay down closer to probably this is weighing on the either on kind of either Chris on what sort of impact.
And until the completion floor and cancer.
And we don't like to draw everybody's attention to the greenhouse and it's on our presentation. This time and this quarter, we are prepared to continuously publish the key metrics.
Muttering dose three subgroups or three on subdivisions a key operations revenue.
And you can see most of these metrics are focusing on low cost level.
And and in a short time.
We will not really match or the quantity of their growth simply by the revenue they can generate.
And in the long run we plan to have them become a open platform for a multi party collaboration and we want them to enable to enable the entire industry from different perspectives.
We would like to keep their openness.
Based on a different business and partners that can benefit on our growth and the industry in the long run.
Yeah.
Okay.
Okay.
This concludes today's conference call. Thank you for participating you may now disconnect your lines.
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