Q1 2025 GDS Holdings Ltd Earnings Call
Okay.
Operator: Hello ladies and gentlemen, thank you for standing by for GDS Holdings Ltd's first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After management prepared remarks, there will be a question and answer session.
Speaker Change: Hello, Ladies and gentlemen, thank you for standing by for a G. T. S Holdings Limited first quarter 2025 earnings conference call. At this time all participants are in a listen only mode. After management's prepared remarks, there will be a question and answer.
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Operator: Today's conference call is being recorded.
Speaker Change: Today's conference call is being recorded I would not turn the call over to your host Ms. Laura Chen head of Investor Relations for the company. Please go ahead Laura.
Laura Chen: I will now turn the call over to your host, Ms. Laura Chen, Head of Investor Relations for the company.
Laura Chen: Please go ahead, Laura. Thank you.
Laura Chen: Hello everyone and welcome to the first quarter 2025 earnings conference call of GDS Holdings Ltd. The company's results were issued via Newswire Services earlier today and are posted online.
Speaker Change: Thank you.
Speaker Change: Hello, everyone and welcome to the first quarter of 2025 earnings Conference call of GDS Holdings Limited.
Speaker Change: Company's results were issued via Newswire services earlier today and are posted online.
Laura Chen: A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our AI website at investorsgdsservices.com.
Speaker Change: Summary presentation, which we will refer to during this conference call can be viewed and downloaded from our IR website at investors GDS services they'll call leading today's call is Mr. William Huang GDS, founder Chairman and CEO, who will provide an overview of our business strategy and performance.
William Huang: Leading today's call is Mr William Huang, GDS founder, chairman and CEO, who will provide an overview of our business strategy and performance.
William Huang: Mr Dan Newman, GDS CFO, will then review the financial and operating results. Before we continue, please note that today's discussion will contain forward-looking statements made under the safe-harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and services... As such, the company's results may be maturely different from the views expressed today. Further information regarding these and other risks and services is included in the company's prospectus as filed with the U.S. S.E.C. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law.
Mueller: Mueller GDS CFO will then review the financial and operating results.
Speaker Change: Well we continue please note that today's discussion will contain forward looking statements made under the safe Harbor provisions of the U S. Private Securities Litigation Reform Act of 1995 bullish looking statements involve inherent risks and uncertainties.
Speaker Change: The company's results may be materially different from the views expressed today.
Speaker Change: Information regarding these and other digital services is included in a complex prospectus as filed with the U S. S E T.
Speaker Change: <unk> does not assume any obligation to update any forward looking statements, except as required under applicable law.
William Huang: Please also note that GDS Holdings press release and this conference call includes discussions of unaudited GAP financial information as well as unaudited non-GAP financial measures. GDS press release contains a reconciliation of the unaudited non-GAP measures to the unaudited most directly comparable GAP measures.
Speaker Change: Please also note that Gds's earnings press release, and this conference call include discussions of our audited GAAP financial information as well as unaudited non-GAAP financial measures GDS press release contains a reconciliation of the unaudited non-GAAP measures.
Speaker Change: Unaudited most directly comparable GAAP measures I will now turn the call over to GDS founder Chairman and CEO.
William Huang: I'll now turn the call over to GDS founder, chairman and CEO, William Huang. Please go ahead, William. Thank you, Laura. Hello everyone, this is William. Thank you for joining us on today's call.
Speaker Change: Please go ahead with them.
Right.
Speaker Change: Hello, everyone and thank.
Speaker Change: Thank you for joining us on today's call.
William Huang: We started in 2025 with very solid results. In the first quarter, we achieved revenue growth of 12%, and adjusted EBITDA growth of 16% year-on-year. It is the highest gross rate for the past two years. This is the result of our continued focus on backlog, delivery, and new orders with faster move-in schedule. Our gross moving during 1Q25 was around 20,000 square meters. All you care about... Our utilization rate reached 75.7% Quarterly moving has stayed at a consistent level since the beginning of last year. We expect the pace of moving to continue through this. with around 40% of the current backlog to be delivered by year end.
Speaker Change: We started we started that's perfectly fine.
Speaker Change: With very solid results in the.
Speaker Change: First of all we achieved revenue growth up 12% and adjusted the EBITDA growth.
Speaker Change: King.
Speaker Change: Yes.
Speaker Change: It is the highest growth rate for the past two years.
Speaker Change: This is a result of our continued focus on backlog.
Speaker Change: And the new order with faster more sketchy.
Speaker Change: Our first movie Julien <unk> five was around 20000 square meter oil.
Speaker Change: Oil and chemical markets.
Speaker Change: Our utilization rate reached 75 points to 7%.
Speaker Change: Accordingly, Omega has stayed at a consistent level since the beginning of last year.
Speaker Change: We expect the pace of hold me to continue through this year.
Speaker Change: With around a 40% of the current backlog to be delivered by <unk>.
Speaker Change: Yeah.
William Huang: The human environment has turned the corner with AI development. This led to an initial wave of demand for AI training in remote locations. Now the demand is coming to Tier 1 market with AI-influenced We believe inferencing could be a much bigger and more sustainable opportunity across multiple years. The META deal of 152 MW that was signed during 1Q25 is a perfect example and evidence of strong demand during this AI era. This new order requires us to deliver data centers within six months. The customer committed to moving fully within the following six months. The whole cycle for obtaining the new order to full utilization is about one year.
Speaker Change: The demand environment.
The corner with AIG investments.
Speaker Change: This led to an initial.
Speaker Change: The initial wave of demand for training in remote locations.
Speaker Change: No the demand is coming to a tier one market with AI inferencing.
Speaker Change: We believe it could be a much bigger and more sustainable opportunities across multiple years.
Speaker Change: The Mega deal up 152 megawatts.
Speaker Change: <unk> signed the Julian 175 is a perfect example, and the evidence of stronger event during this AI era.
Speaker Change: This new order required us to.
Speaker Change: Took deliberate data centers within six months.
Speaker Change: Comfortable committing committed to moving 40 within the following six months.
Speaker Change: The whole cycle.
Speaker Change: Many of the new order to full utilization.
William Huang: This is a high-quality, AI-driven new business. with no moving risk as we confirm them with the customer.
Speaker Change: About one year.
Speaker Change: This is a high quarter, the AI driven the new business with no risk.
Speaker Change: Risk as we confirm that with the customer.
William Huang: Looking forward, there are still uncertainties around AI chip supply in China in the short term. Our customers are working out their deployment plan. As chip supply becomes more clear, we expect demand to take off. In terms of capacity supply, we are well positioned to capture this opportunity. We already have around 900 megawatts of capacity held for future development in and around China.
Speaker Change: Looking forward yes.
Speaker Change: Yeah, Ralph you uncertainties around the AI chips in China in the short term.
Speaker Change: Our customers are walking up the African continent pets.
Speaker Change: Chips and chip supply becomes more clear, we expect demand to take off.
Speaker Change: In terms of our capacity.
We are well positioned to capture these opportunities.
Speaker Change: It has a rather 900 megawatts of capacity.
Speaker Change: For future development in the <unk> and Iraq.
William Huang: Chia-Wen Ma As I mentioned, we believe the coming wave for AI demand is going to be largely from... which requires large sites in tier 1 markets. We have multiple sites sustainable for AI inferencing around Beijing, Shanghai, and Shenzhen. as demand continues to grow and time to deliver. becomes the key factor. Our health force development capacity will become more valuable. We believe there is a good chance that we will develop all of these 900 megawatts and more within the next four years.
Speaker Change: Rob.
Speaker Change: Yellow buckets as I mentioned, we believe the coming wave of demand.
Speaker Change: Demand is going to be largely property insurance.
Speaker Change: Quite large sites each it went backwards, we have multiple site sustainable for AI inference around the Beijing, Shanghai Edison too.
Speaker Change: But if demand continues to grow and are tied to deliver.
Speaker Change: The key fact.
Speaker Change: Our held for investment capacity will become more valuable.
Speaker Change: He has a good chance that we will divest all of this 900 megawatts and the more and the more we think the next next four years.
William Huang: On the financing side, we made significant progress with our asset monetization program. We completed the first ADS transaction in 1Q25, and we are making good progress on the C-REIT transaction. Our asset monetization strategies give us financing flexibility in terms of... being able to recycle cash in China when we need to. It gave us an option to catalyze new projects.
Speaker Change: On the financing side, we made a significant progress with our asset monetization program.
Speaker Change: Previously we completed the first ABS transaction in Q1 of <unk> 35.
Speaker Change: And we are making good progress on the <unk> feed wheat transaction.
Speaker Change: Our asset monetization strategy.
Speaker Change: Give us financing flexibility.
Speaker Change: Hubs.
Speaker Change: Being able to recycle cash in China, when we need to.
Speaker Change: It gives us an option to cap.
Speaker Change: Capitalized new projects.
William Huang: Lastly, I would like to share some operation updates for day one. In 1Q25, they added 70 MW of new commitments, which bring its total power commitment committed to over 530 MW. In the current quarter, they have also made substantial progress in expanding its footprint. It obtained customer commitment for its Thailand project. In addition, it makes a breakthrough into a completely new market, Europe. and landed its first project in Finland together with secured customer commitment. The orders for Thailand and Finland are expected to total over 220 megawatts, which will be added to the power committee in the next few months.
Speaker Change: Lastly, I would like to shift some uptick are pushing updates for day one.
Speaker Change: And what can you quantify that.
Speaker Change: [noise] added at 70 megawatts of new commitments, which bring its total power commitment committed it to almost 513 megawatts.
Speaker Change: The current quarter. They will also made us.
Speaker Change: Special progress expanding its footprint.
Speaker Change: It's a paid customer commitments for <unk>.
Speaker Change: Pilot project.
Speaker Change: Because she can make a breakthrough into completely new market.
Speaker Change: Sure.
Speaker Change: And the blended is at its first project in seamless together with the customer commitment.
Speaker Change: The order for a pilot and the thing that.
Speaker Change: Debt to total over.
Speaker Change: 213 megawatts, which will be added to power committed it in the next few months.
William Huang: This will bring total power committed to the over... 750 megawatts. Daewon is ahead of schedule to meet the target of one gigawatt of total power committed within three years. The new market expansion demonstrated Daewon's capability of working with world-leading tech companies to provide a total data center solution. They will create new markets where customers can scale up efficiently and within a short lead time. It has done it successfully in Malaysia and Indonesia, and it will do so again in Thailand and Finland. This capability is truly what sets Daewon apart.
Speaker Change: This will bring total power committed it to the all but 750 megawatts.
Speaker Change: They want it.
Speaker Change: Head of schedule to meet the target of one gigawatt.
Speaker Change: Total power committed within three years.
Speaker Change: The new market expansion, demonstrating <unk> capability of working with one of the leading tech tech companies to provide a total data center solutions.
Speaker Change: Great, Great new markets, where customers can scale up.
Speaker Change: Efficiency.
Speaker Change: And within a short lead time.
Speaker Change: It has done it successfully in Malaysia and Indonesia.
Speaker Change: We will do so again in Thailand, and a feedback.
Speaker Change: This capability is truly what sets <unk> apart.
Daniel Newman: Now I will now pass on to Dan for the financing and operating review. Thank you, William. Over the past few years, our financial objectives... but to get back onto a higher growth track in terms of EBITDA. while at the same time strengthening our financial position and de-leveraging it. With the advent of AI demand in China, we can look forward over the next few years to more and better growth opportunities. However, as we capture these opportunities, we will maintain strict financial discipline. We believe that this is the right approach. which has potential to create significant equity value with low investment and financing risk.
Speaker Change: No.
Speaker Change: I will now talk to debt for the financing and operating profit.
William Huang: Thank you William.
William Huang: Over the past two years, so financial objectives.
William Huang: To get back on to a higher growth track.
William Huang: In terms of EBITDA.
William Huang: While at the same time, strengthening our financial position and deleveraging.
William Huang: So the AI.
William Huang: Demand from China, we can look forward over the next few years to more and better growth opportunities.
William Huang: However.
William Huang: As we capture these opportunities we will maintain strict financial discipline.
William Huang: We believe that this is the right approach, which has the potential to create significant equity value.
William Huang: With low investment and financing risk.
Daniel Newman: Starting on slide 13. In 1Q25 Revenue increased by 12% year-on-year. This was a result of an increase in total area utilized. of 14.6%. and a decrease in MSR per square meter of 2.6% as compared with 1Q24. In 1Q25, adjusted EBITDA increased by 16.1% year-on-year. In addition, we realized a gain on deconsolidation of subsidiaries sold to the ABS of over 1 billion RMB. which we have not included in Adjusted E-Bit DOS. Adjusted EBITDA margin for 1Q25 was 48.6%. compared with 46.9% in 1Q24. The higher margin was mainly due to lower operating costs. over the next three quarters.
William Huang: Starting on slide 13.
And one through 25.
William Huang: Revenue increased by 12% year on year.
William Huang: This was a result with an increase in total ore use light.
William Huang: 14, 6%.
And a decrease in MSR per square meter or two 6%.
William Huang: With one or $2 24.
William Huang: We won't be here 25, adjusted EBITDA increased by 16, 1% year on year.
William Huang: In addition, we realized a gain on deconsolidation of subsidiaries sold to the avs.
William Huang: Over 1 billion RMB.
William Huang: Which we have not included in adjusted EBITDA.
William Huang: Adjusted EBITDA margin for <unk> 25.
William Huang: 48, 6%.
William Huang: Compared with 46, 1%.
William Huang: One through 24.
William Huang: The higher margin.
William Huang: Only due to lower operating costs.
William Huang: Over the next three quarters.
Daniel Newman: We expect quarterly adjusted EBITDA. to increase on average. by high single digits percentage year-on-year. This takes account of deconsolidation of EBITDA with completion of the ABS transaction on 31st March 2025.
William Huang: We expect quarterly adjusted EBITDA.
William Huang: The increase on average.
William Huang: High single digits percentage year on year.
William Huang: This takes account of the deconsolidation of EBITA with completion of the ABS transaction.
William Huang: March 2025.
Daniel Newman: as shown on slide six. Subject to Achieving Performance Conditions. we will receive total cash consideration of up to 1.8 billion RMB. for the sale of the ABS. out of which we will reinvest up to 500 million RMB. for our 30% share of the ABS. The First Instalment of Cash Posts. has been received and booked in 2Q25. In addition, we have deconsolidated debts and other liabilities of approximately 1.1 billion RMB. The implied EB to EBITDA for the sale to ABS is around 13 times. which we believe sets an important benchmark for our forthcoming CV offering. and for the valuation of our stabilised China assets as a whole.
William Huang: As shown on slide 16.
William Huang: Subject to achieving performance conditions.
William Huang: We will receive total cash consideration.
William Huang: Up to one 8 billion RMB.
William Huang: Sale of the Avs.
After which we will reinvest up to 500 million RMB.
William Huang: Around 30% share of the ABS issue.
William Huang: The first installment.
William Huang: Cash proceeds has been received and booked in.
William Huang: <unk> 25.
William Huang: In addition, we have the consolidated debt and other liabilities.
William Huang: Absolutely one 1 billion RFP.
William Huang: The implied EV to EBITDA for the sale to avs.
William Huang: Around 13 times.
William Huang: Which we believe sets an important benchmark for us.
William Huang: Our forthcoming CME footprint.
William Huang: For the evaluation of all stabilized China assays as a whole.
Daniel Newman: We are making good progress with the establishment of an onshore lifted seaweed. It is moving forward faster than expected. We've received approval from MDR. and it is now being reviewed by CSRC and the Shanghai Stock Exchange. The application documents are filed publicly. Subject to obtaining all necessary approvals, we hope to launch and complete the offering later this year. The C-REIT transaction is going to be very strategic. It will establish a further valuation benchmark for our stabilized data centers in China. and it will create a vehicle into which we can potentially drop down further assets in future if we choose to do so.
William Huang: We're making good progress towards the establishment of a one for Mr. <unk>.
William Huang: Right.
William Huang: It is moving forward faster than expected.
William Huang: We have received approval from FERC.
William Huang: And this is now being reviewed by CSL.
William Huang: Shanghai stock exchange.
William Huang: The application documents filed publicly.
William Huang: Subject to obtaining all necessary approvals, we hope to launch our complete offering.
William Huang: Later this year.
William Huang: The theory transaction is going to be very strategic.
William Huang: It will establish a further valuation benchmark for all stabilized data centers in China.
William Huang: And they will create a vehicle.
William Huang: So which returned potentially dropdown further upticks in future if we choose to do so.
Daniel Newman: On slide 22, we show the proforma deleveraging effect of the ADS and C-ray. The ABS is a done deal, while for the C-REACH we made working assumptions for illustrative purposes. As you can see, we are able to support a total capex in the current year of 4.8 billion RMB. before taking account of the proceeds of asset monetization. while lowering our net debt and leverage rates.
William Huang: On slide 22.
William Huang: We show the pro forma deleveraging effect.
William Huang: Currency rates.
William Huang: The ABS as a done deal.
William Huang: Whilst the sea rates, we made working assumptions.
William Huang: Illustrative purposes.
William Huang: As you can see.
William Huang: We are able to support the total capex in the colors here.
William Huang: Four 8 billion RMB.
William Huang: Before taking account of the proceeds of asset monetization.
William Huang: While lowering our net debt.
William Huang: And leverage ratios.
Daniel Newman: Turning to slide 23 on Business Outlook. When we gave guidance at the last quarter end, we already assumed that the ABS will be deconsolidated. from the beginning of 2Q25. If we complete the C-REIT this year, it will have some impact on our financial... But we still think that we can meet our original revenue and adjust it with our guidance. Thus we are keeping the previously provided guidance of Total Revenue and Adjusted Emitter unchanged. The Simi transaction is completed. will also impact our investment cash. As of now, we keep our CAPEX guidance unchanged. which just includes gross capex less the initial proceeds from the ABS transaction.
William Huang: Yes.
William Huang: Turning to slide 23 on business outlook.
William Huang: When we gave our guidance.
William Huang: Last quarter, and what do you assume that the ABS will be de consolidated.
William Huang: So at the beginning of 2025.
William Huang: If we complete the theory this year it will have some impact on our financials.
William Huang: But we still think that we can meet our original revenue and adjusted EBITDA guidance.
William Huang: We are keeping the previously provided guidance.
William Huang: And adjusted EBITDA unchanged.
William Huang: Cassini transaction is completed.
William Huang: We will also affect our investing cash flow.
William Huang: Oh, no we keep our capex guidance unchanged.
Just includes gross Capex.
William Huang: The initial proceeds from the ABS transaction.
Daniel Newman: finishing on slide 24. Now that we have deconsolidated state one. It is important to look at the equity value of GDS. on in some of the past days. in addition to our equity value creation in China. We expect the value of our equity interest in Day 1 to appreciate significantly. based on the Series B benchmark from last year. Our equity interest in day one was worth around 1.3 billion U.S. dollars. or $70 per GDS ADR. William mentioned that Day One is already on track. to achieve total power commitment. of over 750 megawatts. in the next few months.
William Huang: Finishing on slide 24.
William Huang: Now that we have the consolidated one.
William Huang: It is important to look at the equity value of GDS.
William Huang: Some of the cost basis.
William Huang: In addition to our equity value creation in China.
William Huang: We expect the value of our equity interest in if they want to appreciate significantly.
William Huang: Based on the series B benchmark from last year.
William Huang: Oh equity interest in day one.
William Huang: Worth around $1 3 billion U S dollars.
William Huang: All seven U S dollars per Tds ADR.
William Huang: We didn't mention it.
William Huang: They want is already on track.
William Huang: To achieve total power commitment as well.
William Huang: 750 megawatts.
William Huang: In the next few months.
Daniel Newman: has day one achieved optimal operating leverage. It's even dark for a megawatt. should trend upwards towards industry benchmark levels. This gives an indication of the current level of contracted EBITDA. which can be converted to actual EBITDA as backlog contracts are delivered over the next few years.
William Huang: If they want to achieve optimal operating leverage.
William Huang: It's EBITDA per megawatt.
William Huang: Should trend upwards towards industry benchmark levels.
William Huang: This gives us indication.
William Huang: Current level.
William Huang: Contracted EBITDA.
William Huang: Which can be converted to actual EBITDA.
William Huang: <unk> contracts are delivered over the next few years.
Operator: We'd now like to open the floor to questions, operator. Thank you sir.
William Huang: I'd now like to open the wholesale questions operator.
Operator: As a reminder to ask a question please press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question please press star 1 and 1 again. Once again please press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question please press star 1 and 1 again. For the benefit of all participants on today's call please limit yourself to one question. If you have more questions please re-enter the queue. Thank you.
Speaker Change: Thank you Sir.
Speaker Change: As a reminder to ask a question. Please press star one and one on your telephone and wait for your name to be announced until we've got your question. Please press star one and one again once again, please press star one and one on your telephone and wait for them to be announced until we got your question. Please press star one and one again.
Speaker Change: What was the benefit of all participants on today's call. Please limit yourself to one question. If you have more questions. Please re enter the queue. Thank you.
Speaker Change: We are now going to proceed with our first question.
Yang Liu: So the questions come from the line of Yang Liu from Morgan Stanley, please ask your question. Thanks for the opportunity. Two questions from my side.
Speaker Change: So the question is come from the line of young do you from Morgan Stanley. Please ask your question.
Speaker Change: Thanks for the opportunity.
Speaker Change: Two questions from my side first.
Yang Liu: First, congratulations on the solid result. My first question is regarding the China demand, especially from the hyperscaler side. We start to hear a lot of noise on the chipset supply since March. Could management update us in terms of their demand quarter to date, given a lot of things happened in the past two months? Is there still any order coming in, in a certain quarter, or queue to date? That's my first question.
First congratulations on the solid result.
Speaker Change: My first question is.
Speaker Change: Regarding the China demand, especially from the Hyperscale side.
Speaker Change: When you start to hear a lot of noise on the.
Speaker Change: Chipset supply it seems for March.
Can management update us in terms of their demand quarter to date.
Speaker Change: Given a lot of things happened in the past too.
Speaker Change: Two months.
Speaker Change: Is there still any oh theyre coming.
Speaker Change: You can send them to the same quarter Q to date, yes.
Speaker Change: My first question. My second question is regarding the financial guidance.
Yang Liu: My second question is regarding the financial guidance, because Dan just mentioned that previous guidance does not factor in the ABS deconsolidation, and now the deal got closed, and actually you don't need to change the guidance. So what should be the expectation on the three quarters of the contribution from that project to the number? Thank you.
Speaker Change: Because Dan just mentioned that our previous guidance.
Speaker Change: Does not factor in the ABS.
Speaker Change: Deconsolidation.
Speaker Change: And now the deal.
Speaker Change: <unk> got close and actually you don't need to change the guidance. So what should be the expectation on the three quarters of contribution from.
Speaker Change: From that project.
Speaker Change: To a full year number yes. Thank you.
William Huang: Okay, this is Winnem. Let me ask you to answer the first question. I think the demand of this is very strong in general, and we see that AI-related demand will continue. maintain a strong position. But we have to say we are lucky we are sitting in there Our all our assets sitting in the tier one market, which is this demand mainly driven by this increase So infant sex being... The customer is less reliant on the GPU, they will use a more hybrid and traditional CPU. So I think for us, we will see our demand will continue.
William Huang: Okay. This is William.
Speaker Change: Ask you answer the first question.
Speaker Change: I think the demand obviously.
Speaker Change: It's a very strong in general and we see that.
Ian: And then Ian related event.
Speaker Change: We'll continue.
Speaker Change: Uh huh.
Speaker Change: Maintaining a strong.
Speaker Change: Position.
Speaker Change: But we have to see we are lucky we are sitting there.
Speaker Change: Our all our asset sitting in the Chilean market, which you set this demand is mainly driven by <unk>.
Speaker Change: <unk>.
Speaker Change: Inference got beans.
Speaker Change: Customer less relying that GPU.
More hybrid.
Speaker Change: Traditional seafood.
Speaker Change: So I think.
Speaker Change: We will see our demand will continue.
Daniel Newman: It's too early to say what's our target, but in general I have to say. We have 900 megawatts. held for future development capacity. Well positioned. And as I said, in the general midterm, longterm, we can digest, we can sell this 900 megawatts within four years. We are very confident. But I think maybe in short term, I think a lot of training demand will be impact, but it's not our target. In past couple of years, for training demand, it's not our target. Yeah. So when we gave EBITDA guidance, at the midpoint it implied year-on-year growth, full year, 25 versus 24, of 8.5%.
Speaker Change: It's too early to see.
Speaker Change: Our target range.
Speaker Change: I have to say.
Speaker Change: We have 900 megawatts.
Speaker Change: Held for future development.
Speaker Change: Cassidy well positioned.
Speaker Change: As I said.
Speaker Change: General midterm long term, we can yes, we can just we can sell this 900 megawatts within four years, we are very confident in all of that.
But I think.
Speaker Change: Yes, maybe a short term I think that a lot of training.
Speaker Change: Demand will be impact, but it's not our puppy net.
Speaker Change: Yep.
Speaker Change: In the past couple of years.
Speaker Change: While training demand is not to have a path.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: So let me.
Speaker Change: When he gave the EBITDA.
EBITDA guidance at the midpoint.
Speaker Change: Five year on year growth full year 25 versus <unk> 24.
Speaker Change: Eight 5%.
Daniel Newman: and we had assumed that the ABS transaction... closed at the end of 1Q, which indeed it did. that if we had not done that ABS transaction, we would have continued to consolidate. and the underlying assets for the second, third and fourth quarter of this year. On that basis, we actually showed in the last cycle that our annual growth rate in terms of EBITDA would have been around 11%. So the impact has... ABS transaction closing at the end of 1Q. is to reduce full-year EBITDA by around 130 million RMB. That's what we would have consolidated over the next three quarters and to reduce the annual growth rate from 11% down to the guided 8.5%.
Speaker Change: We had assumed that the ABS transaction.
Speaker Change: Close to the end of <unk>.
Speaker Change: Indeed it did.
Speaker Change: If we had not done that ABS transaction, we would've continued to consolidate.
Speaker Change: The underlying assets for the second third and fourth quarter this year.
Speaker Change: <unk>.
Speaker Change: On that basis.
Speaker Change: Sure.
The last cycle.
Speaker Change: Oh.
Speaker Change: Growth rates in terms of EBITDA would've been around 11%. So the impacts of the ABS transaction closing at the end of <unk>.
Speaker Change: It's to reduce full year EBITA by around a 130 30 million RMB. That's what we would have consolidated over the next three quarters sensor the juice.
Speaker Change: The annual growth rate from 11% down to the guided.
Speaker Change: Eight 5%.
Daniel Newman: Now, of course, we've completed the first quarter. Announce In the first quarter hour, our year-on-year growth rate was 16%, which is clearly well above that level of growth. That's why I try to give some indication of the expected growth rate year-on-year in the second, third, and fourth quarter. It won't be as high as the first quarter, but it should be high single digits in percentage terms. On average, each quarter, 2Q versus 2Q, 3Q versus 3Q, 4Q versus 4Q.
Speaker Change: Now of course, we completed the first quarter.
Speaker Change:
Speaker Change: Uh huh.
Speaker Change: The first quarter out our year on year growth rate was 16%, which is pretty well above that.
Speaker Change: Level of growth.
Speaker Change:
Speaker Change: That's why we tried to give some indication of the expected growth rate year on year in the second third and fourth quarter.
Speaker Change: It would be.
Speaker Change: For the first quarter, but it should be high single digits.
Speaker Change: The census terms.
Speaker Change: On average each quarter two <unk> vessels.
Speaker Change: Okay versus <unk>.
William Huang: Yeah, I want to add one point. I think the yes, based on what we know understanding our customer already tested domestic GPU for a while. So I think the if the chips In in power I think the In the next 12 months, domestic GPU will catch up. Thank you.
Speaker Change: Yes.
Speaker Change: At one point I think.
Speaker Change: Yes.
Speaker Change: Based on what we know understanding our customer already.
Speaker Change: Domestic GPU for a while so I think if the chips.
Speaker Change: In pulp.
That is an issue.
Speaker Change: Thank you.
Speaker Change: In the next 12 months to domestic.
Speaker Change: Domestic.
Speaker Change: GPU will catch up.
Speaker Change: Yes.
Speaker Change: Thank you.
Sarah Wang: We are now going to proceed with our next question. The questions come from the line of Sarah Wang from UBS, please answer your question. Thank you for the opportunity to ask questions. I just have one question.
Speaker Change: We are now going to proceed with our next question.
Speaker Change: Two questions come from the line of Sara Wang from UBS. Please ask your question.
Sara Wang: Thank you for the opportunity to ask questions I just have one question.
Sarah Wang: Given GDS is actually expanding beyond Southeast Asia and even into Europe, can we compare the IRR profile or even the yield across different markets, for example, Johor, Thailand, or Finland, and also compare that to China? Thank you.
Kevin: Kevin did you ask.
Speaker Change: Please ask me spending beyond southeast Asia, and even into Europe.
Speaker Change: When we compare the profile or EBITDA yield across different markets. Furthermore, tahar pilot.
Speaker Change: Thailand or Finland.
Speaker Change: And also compare that to China. Thank you.
Speaker Change: Okay.
William Huang: Sarah, I have to correct you, it's not GDS, it's Shea Wands. Yeah, I'm sorry, Shea Wands, yeah, I'm sorry. Yeah. Okay. Yeah, just I'm thinking for that level, yeah. Thank you. Yeah. What we've seen so far, you know, it's caused several different... Markets, if we simply take, say, the development yield, it's in the low-to-middle range. which is, I think, quite healthy and higher than... What we currently achieve in China on a total investment cost basis, and that probably reflects that in the markets in which Taiwan is operating, there's a slightly different supply-demand balance from China, but it's a good, I'd say, leading indicator because as demand, AI demand really takes off in China in tier 1 markets.
Speaker Change: Yeah, that's correct, it's not Tds.
Speaker Change: Uh huh.
Speaker Change: Shave volume, so yeah, I'm, sorry, yeah, sorry, [laughter] yeah, okay. Okay.
Speaker Change: Yes.
Speaker Change: So at that level.
Speaker Change: Yep.
Speaker Change: What are we focusing so pardon, yes, Scott several dozen.
Speaker Change: Markets.
Safe to say the development yields.
Speaker Change: It's in the low teens.
Speaker Change: Which is I think quite healthy.
Speaker Change: Higher than that.
Speaker Change: What we are.
Speaker Change: We're currently achieving in China.
Speaker Change: Total investment cost basis in that.
Speaker Change: Properly reflects the mark.
Speaker Change: One is on pricing there is a slightly different supply demand balance.
Speaker Change: China is a good I'd say leading indicators because.
Speaker Change: As demand.
Speaker Change: Demand really takes off it's either in tier one markets.
William Huang: We can see that demand-supply balance shifting in China and hopefully that will lead to better yields in China as well.
Speaker Change: We can see that.
Speaker Change: More supply shifting.
Speaker Change: Shifting in China.
Speaker Change: Hopefully that will that will lead to better yields in China as well.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Okay.
Operator: We are now going to proceed with our next question.
Speaker Change: We are not going to proceed with our next question.
Frank Louthan: The questions come from the line of Frank Louthan from Raymond James and Associates. Please answer your question. Great, thank you.
Speaker Change: Two questions come from the line of Frank Louthan from Raymond James and Associates. Please ask your question.
Frank Louthan: Um, can you give us an idea of when you expect the China business to be self funding? And does this new wave of AI demand push that out a little bit?
Speaker Change: Great. Thank you can you give us an idea of when you expect the China business to be self funding and does this new wave of AI demand pushed that out a little bit and then if you can comment on whether you have the full amount of funding for the 750 megawatts of commitments day, one that would be great.
William Huang: And then if you can comment on whether you have the full amount of funding for the 750 megawatts of commitments a day one, that'd be great. The first part of Frank's question is about... So, in China... Thank you. Roughly break even in terms of pre-cash flow before financing, we were actually positive pre-cash flow before financing last year. and in the current year. at www.thevenusproject.com should be able to bring down that debt over the course of the year. So that means that we are already... through operating cash flow and asset monetization, able to generate sufficient cash flow and to deconsolidate debt on sale of assets, so that it is at least equal to the amount of annual capex.
Speaker Change: Uh huh.
Speaker Change: Uh huh.
Speaker Change: [noise] first part of France.
[laughter].
Speaker Change: So in China.
We are.
Speaker Change: Roughly breakeven in terms of peak.
Speaker Change: Free cash flow before financing.
Speaker Change: We were at.
Speaker Change: Actually.
Speaker Change: Positive free cash flow before financing last year.
Speaker Change: In the current year.
Speaker Change: Maybe we should start looking at free cash flow before financing we look at it.
Speaker Change: Net debt.
Speaker Change: And with the contribution from asset monetization transactions, we should be able to.
Speaker Change: Bringing down that debt.
Speaker Change: Over the course of the year.
Speaker Change: That means that we are already.
Speaker Change: Operating cash flow and asset monetization able to generate sufficient cash flow.
Speaker Change: Our consolidated debt on sale of assets.
Speaker Change: So that is at least equal to the amount of annual number annual capex.
Daniel Newman: William mentioned that, you know, we're quite confident that over the next four years, we could potentially develop our entire Land and Power Bank and Tier 1 Markets which is around 900 megawatts and maybe more. If we did that evenly over four years, it would equate to around... 5 billion RMB. of annual capital. Similar to this year's level and with the operating cash flow, which we expect to grow over that time. and the ability to monetize assets through a listed Seabreak vehicle, I believe we'll be able to repeat the pattern of this year's financing. in terms of investment cash flow being offset by operating cash flow and asset monetization.
Speaker Change: And.
Speaker Change: We have mentioned that.
Speaker Change: Quite confident.
Speaker Change: Four years.
Speaker Change: Essentially develop.
Speaker Change: Our.
Speaker Change: Entire.
Speaker Change: Now on the Taliban in tier one markets, which is around 900 megawatts and maybe more.
Speaker Change: And then if you did that evenly over four years it would equate to around.
Speaker Change: 5 billion RMB.
Speaker Change: Annual Capex, which is similar to this year's level.
With the operating cash flow, which we expect to grow over that time period.
Speaker Change: And the ability to monetize assets.
Speaker Change:
Speaker Change: Just to see because I believe we will be able to repeat the passing of this year's financing concerns.
Speaker Change: Uh huh.
Speaker Change: Investment cash flows being.
Speaker Change: Bye.
Speaker Change: Operating cash flow and asset monetization proceeds.
William Huang: On day one, we take 750 megawatts, as William mentioned, They want to date as Thank you. Thank you. The Day One is fully capitalised to be able to develop and deliver that. Yeah, I believe if they want to raise money, it's not an issue. can well access online. Okay, great. Thank you very much.
Speaker Change: Paul.
Speaker Change: The day one.
750 megawatts.
Speaker Change: I mentioned.
Speaker Change: And.
Speaker Change:
Speaker Change: They want to take it has.
Speaker Change: <unk> raised.
Speaker Change: Nearly $2 $5 billion of equity let's.
Speaker Change: It's a long it's fully capitalized to be able to develop and deliver.
Speaker Change: Our portfolio.
Speaker Change: That level of commitments.
Speaker Change: I believe if they won't need to raise money is not an issue.
Ken: Ken will access.
Speaker Change: On international catalog.
Speaker Change: Yep.
Speaker Change: Okay, great. Thank you very much.
Speaker Change: Yes.
Operator: As a reminder to ask a question, please press star 1 and 1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 and 1 again.
Speaker Change: As a reminder to ask a question. Please press star one and one on your telephone and with brand name to be announced until we've until your question. Please press star one and one again for the benefit of all the participants on today's call. Please limit yourself to one question. If you have more questions. Please re enter the queue. Thank you.
Operator: For the benefit of all the participants on today's call, please limit yourself to one question. If you have more questions, please re-enter the queue. Thank you.
Edison Lee: We are now going to proceed with our next question. The questions come from the line of Edison Lee from Jefferies, Hong Kong. Please ask your question. Hi William and Dan. Congratulations on another great quarter. I have in fact two pretty quick questions. Number one question is about Your growth new area committed in the first quarter at 46,000 square meter. I think that's a new high in many quarters.
Speaker Change: We are not going to proceed with our next question.
Speaker Change: Yeah.
No questions come from the line of Edison Lee from Jefferies. Hong Kong. Please ask your question.
Speaker Change: Yeah.
Speaker Change: However, and Dan congratulations on another great quarter I have.
Speaker Change: Two pretty quick questions number one question is about.
Speaker Change: Your gross new area.
Speaker Change: In the first quarter at 46000 square meter I think that's a new high in many quarters. So can you share.
Edison Lee: So can you share some color as to how many customers this new number is coming from and where the locations are for this 46,000 square meter? And then number two is. There has been some talk in the industry in China about new government regulations controlling the expansion of AI data center. And right now, they need to approve any project seven megawatt or above. And also, there is some talk in the industry that China, in fact, does not want or does not prefer private companies to be building AI data centers. They prefer SOEs to be building AI data centers.
Some color as to how many customers. This new number is coming from and where the locations are $46 per square meter.
Speaker Change: And then number two is.
Speaker Change: There has been some talk in the industry in China about new government regulations controlling your expenses are going to pay you a data center.
Speaker Change: And right now they need to approve any project seven megawatt or above and also that there is some talk in the industry that China in fact does not.
Speaker Change: At the top three for private companies to be built into their data centers. They prefer we used to be building data centers.
Edison Lee: And I understand a lot of your power reserve actually has been obtained some years ago already. So I just want to know whether there's any risk that the government actually needs to reopen the book and reapprove some of your power. And yeah, and what is your thought on these market talks right now? Thank you.
Speaker Change: And I understand a lot of your power.
Speaker Change: We serve factor has been obtained to some years ago already so I just want to know what are the kind of risk that the company.
Speaker Change: Linda just to reopen the book and we approved some of your power and.
Speaker Change: And what is your what is your thought on beef.
Speaker Change: Talks right now thank you.
William Huang: Okay, I think the first question is, I think the Q1, mainly during the one of our traditional hyperscalers. I think it is here located. and Changshu, which is very close to Shanghai and Beijing. So this is exactly, if everybody remembers. in a, during the Carl era. cloud pots in this major city or around this city. So we are very, very lucky at that era. So now inference, I think we have benefit for that inference demand. Because I just mentioned, right? So the inference model is more like a hybrid. Use the GPU plus CPU cloud. So they will collaborate together.
Speaker Change: Okay, I think first of all crushing it.
Q1, mainly driven by the <unk>.
Speaker Change: Oh, one other more traditional hyper scale customers I think it's <unk>.
Speaker Change: Now, which are <unk> and.
Speaker Change: And as household switch very close to Shanghai and Beijing. So this is exactly.
Speaker Change: Okay.
Speaker Change: If everybody remembered.
Speaker Change: During our call.
Speaker Change: We used to represent 50% of that.
Speaker Change: Carl.
Speaker Change: POS in this major city.
Speaker Change: Iraq is major C. So we are we are very very low.
Speaker Change: Pete era, so now inference and I think it'll be a benefit for that increased demand.
Speaker Change: I just mentioned right so the.
Speaker Change: The increase.
Speaker Change: Model is more like a hybrid.
Speaker Change: The GPU plus CPU call. So it will cause corporate to get it. So I think this is.
William Huang: So I think this is a... one thing, the first question.
Uh huh.
Speaker Change: And one thing that the first question.
William Huang: The other is about the control AI data sensors. Based on my understanding, mainly I've been with you mainly... So I think here, I should point out our 900 megawatt capacity, we already, most of them, we already obtained the power energy quota. So this is where new guidance, new policy will not impact us. Okay, thank you.
The other is a.
Speaker Change: Above the control.
Speaker Change: Data center based on my understanding is mainly.
Speaker Change:
Speaker Change: I think.
Speaker Change: Mainly.
Speaker Change: Native or the Soe investments.
Speaker Change: So I think.
Speaker Change: Actually I should point of hubs, our 900 megawatts.
Speaker Change: <unk> with already most of them, we already off peak power.
Speaker Change: Energy quota. So this is new new guidance, new policy will not impact impact us.
Speaker Change: Okay.
Speaker Change: Thank you.
Operator: We are now going to proceed with our next question.
Speaker Change: We're not going to proceed with our next question.
Daley Lee: The questions come from the line of Daley Lee from Bank of America, please ask your question. Hi, management. Thanks for taking my question. Congrats on the solid demand trend. I have two questions.
Speaker Change: Two questions come from the line of Daily Lee from Bank of America. Please ask your question.
Daily Lee: Hi management, Thanks for taking my question.
Speaker Change: Congrats on the solid demand trends are.
Daley Lee: Number one is about the overseas business. Recently, we received like 70 megawatts new orders. And could management give some color about the mix of the clients for China and overseas, or the mix of AI and non-AI? And given the AI diffusion policy has been withdrawn by the U.S., how could you share some color about the client feedback about the future, you know, new orders or the moving progress for the international business?
Speaker Change: Two questions number one is about the overseas business our agreement we received them.
Speaker Change: 17 megawatts, new orders and could you could management give some color about the mix of the clients for China and overseas.
Speaker Change: Or the mix of <unk>.
Speaker Change: And given the diffusion policy has been withdrawn by the U S. A.
Speaker Change: Could you share some color about the client feedback about the future new orders or the movie progressed for the international business.
Daley Lee: My second question is about the overseas insurance in China market. I saw the news, we received the first round of feedback from the CSRC. And how do we see the, you know, the progress? Can we expect to compete in the second half of this year? Or, you know, how is the timeline, please? Thank you.
Speaker Change: Second question is about the our series E issuance in China market.
Speaker Change: The news was received the first round of feedback for honestly as oxy and how do we see the.
Speaker Change: Progress.
Speaker Change: Can you spell out too.
Speaker Change: In the second half this year will you know how is the type of timeline. Please thank you.
William Huang: And the first question I think, I think if you if anybody remember, we used to talk about the time in what they want. It's in general, it's mixed. We successfully got an order from an international customer and also a Chinese customer. I think, I think We used to talk about our client, our major client from China. They are major use, the purpose for their deployment is to support their e-commerce and the video business. and the social media business. It's just to use the high-performance CPU. So in general, in the last three years, based on our understanding, our total capacity served.
Speaker Change: Okay.
Speaker Change: And our first question I think.
Speaker Change: I think if you if anybody remember.
Speaker Change: We used to talk up already.
Speaker Change: In what.
Speaker Change: Okay.
Speaker Change: It's in chair is mixed.
Speaker Change: We got we successfully to godspeed.
Speaker Change: Other from.
Speaker Change: International customer and also Chinese customer as well I think.
Speaker Change: I think.
Speaker Change: Yeah.
Speaker Change: We used to come.
Speaker Change: Come out of it our clients our major clients from China.
Speaker Change: Our major use.
Speaker Change: Purpose for the deployment is to support the e-commerce and the video business and associates.
Speaker Change: Medium business.
Speaker Change: Just to use the it's USD.
Speaker Change: Our high performance CPU.
Speaker Change: So in general in the last three years.
Speaker Change: Based on our understanding our total.
Speaker Change: That is sought.
William Huang: 90% for GPs. on CPU, sorry, CPU, only maybe around 10% used to the purpose for GPU.
Speaker Change: 90% for GPU.
Speaker Change: CPU, sorry, CPU all in maybe around 10%.
Speaker Change: Used to.
Speaker Change: The purpose for GPU. So this is that this is I think everybody remembers that lots of couple of quarters, when we talk about international market.
Daniel Newman: So this is, this is, I think everybody remember the last couple of quarter when we talk about international market, that, that's nothing have been through many rounds of and the stage that we've now reached. is being reviewed by the Chinese Securities Regulator, CSRC, and the Shanghai Stock Exchange. And this is a public process. The Perspectives and some other key documents. have been filed and are available for the public to access. And we will be being. ask questions just like U.S. SEC process where where applicants are. I've asked to address a number of questions and our responses will also be filed publicly.
Speaker Change: Yes.
Speaker Change: Nothing changes.
Speaker Change: Okay.
Speaker Change: <unk>.
Speaker Change: The <unk> offering.
Speaker Change: We've been through many rounds.
Speaker Change: Review and approval.
Speaker Change: We've now reached.
Speaker Change: The listing application.
Speaker Change: Is being reviewed.
Speaker Change: By the Chinese Securities regulatory CSL C on the Shanghai stock exchange.
Speaker Change: This is a public process.
Speaker Change: What is the perspective and some other key documents.
Speaker Change: Having filed and I are available for the public to access.
Speaker Change: And we.
Speaker Change: Keeping.
Speaker Change: Questions just like.
Speaker Change: U S FCC process with.
Speaker Change: Africa saw.
Speaker Change: Off to address a number of questions and responses will also be filed publicly.
Daniel Newman: Specifically, this stage of the process takes a few months. We don't take anything for granted. that if all goes well, we would hope to receive... Thank you very much. And then we would have one year make a decision as to when to launch. Ideally we would be able to do that later this year.
Speaker Change: Because at this stage of the process takes.
Speaker Change: Takes a few months.
Speaker Change: We don't take anything for granted.
Speaker Change: If all goes well, we would hope to receive.
Speaker Change: The clearance to be able to proceed with a.
Speaker Change: With an offering listing.
Speaker Change: And then we would have one year in which to.
Speaker Change: Make a decision as Twitter.
Speaker Change: Principal international.
Speaker Change: Ideally, we would be able to do that.
Speaker Change: Later, this year and complete re compete process.
Speaker Change: See right before the end of this until the end of this year.
Speaker Change: Okay.
Operator: We are now going to proceed with our next question.
Speaker Change: We are now going to proceed with our next question.
Eunice Liu: The next questions come from the line of Eunice Liu from Goldman Sachs, please ask your question. Good evening, William, Dan, Laura. Thanks for taking my question. I'm asking question on behalf of our analyst, Timothy Zhao.
Speaker Change: The next question is come from the line of Jamie Lee from Goldman Sachs. Please ask your question.
Speaker Change: Good evening William.
Jamie Lee: Thanks for taking my question.
Jamie Lee: Question on behalf of all of them all.
Eunice Liu: So our question is first on GDS China, could you elaborate more on the pricing outlook for the China business? And my second question is on day one. So we noticed your EBITDA margin improved through the latest quarter. Could you explain the drivers behind? Thank you. I think the article for the China business, we maintain very confident in. Okay, so perhaps I'll do it right. I think the current new business price is very... and the I think the You know, the in general, I think the new business is, let's say, maintained at a very, very stable level right now, whatever from the Beijing market or Shanghai market or Shenzhen market, right?
Jamie Lee: Can you talk.
Jamie Lee: A question first on GBS timer could you elaborate more on the pricing outlook.
Speaker Change: The channel.
Speaker Change: Welcome.
Speaker Change: They won.
Speaker Change: Now to <unk>.
Speaker Change: In the latest quarter could you explain the drivers behind thank you.
Speaker Change: Yes, I think the article for the China business will meet Humira competency.
Speaker Change: Uh huh.
Speaker Change: Okay.
Speaker Change: Right.
Speaker Change: I think the.
Speaker Change: Turning to new business pricing is very stable.
Speaker Change: And I think the.
Speaker Change: Yeah.
Speaker Change: In general I think.
Speaker Change: The new business.
Speaker Change: Is.
Speaker Change: It's let's see maintained that fair Barry.
Speaker Change: Tables, Apple right now whatever someday.
Speaker Change: Beijing, Shanghai market full center market right. So this is.
William Huang: So this is our outlook for the future.
Speaker Change: Yes.
Speaker Change: Our outlook for the future.
Speaker Change: Yeah.
Daniel Newman: J1 has an EBITDA margin. Q25 31%. for a company that actually only started to generate revenue about 5 quarters ago, that's already quite remarkable. My understanding is that day one ramped up over the next... Thank you very much. As that happens, day one, we'll be able to achieve higher operating leverage on our complete collection. and on its business development course. And I think within a few years, you'll see that EBITDA margin. It's an industry benchmark level. Thank you.
Speaker Change: Uh huh.
Speaker Change: They won.
Speaker Change: The EBITA margin.
Speaker Change: And walked through 'twenty five.
Speaker Change: 31%.
Speaker Change: A company that actually already started to generate revenue about five quarters ago, that's already quite remarkable.
Speaker Change: On starting is that they've won.
Speaker Change: Ramp up over the next two.
Speaker Change: Two years deliver backlog, there's going to be very rapid.
Speaker Change: As that happens they want to be able to achieve higher operating leverage on.
Speaker Change: Pulp costs.
Speaker Change: And this.
Speaker Change: This is further cost.
Speaker Change: I think within within a few years, you'll see that EBITDA margin.
Speaker Change: Industry benchmark levels.
Speaker Change: Uh huh.
Speaker Change: Yeah.
Operator: This concludes the question and answer session.
Speaker Change: Thank you. This concludes the question answer session I would like now turn the call back over to the company for closing remarks. Thank you.
Operator: I would like now to turn the call back over to the company for closing remarks. Thank you. Thank you all once again for joining us today, and we'll see you next time. Bye-bye.
Speaker Change: Thank you all once again for joining us today, and we'll see you next time bye bye.
Operator: This concludes this conference call. Thank you all for participating. You may now disconnect your line. Thank you.
Speaker Change: This concludes this conference call. Thank you all for participating you may now disconnect. Your line. Thank you.
Speaker Change: Okay.
Speaker Change: Okay.
Operator: Thank you for watching!
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Yes.
Speaker Change: Okay.