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CD Chindata

Participants
Jing Ju Chief Executive Officer
Dongning Wang Chief Financial Officer
Zoe Zhuang Finance Vice President
Yang Liu Morgan Stanley
Tina Hou Goldman Sachs
James Wang UBS
Hongjie Li CICC
Albert Hung JPMorgan
Edison Lee Jefferies
Call transcript
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Operator

Good morning and good evening ladies and gentlemen. Thank you and welcome to Chindata Group Holdings Limited Third Quarter 2021 Earnings Conference Call.

We will be hosting our question-and-answer session after management's prepared remarks. Please note today's event is being recorded. I would now like to turn the call over to your first speaker today, Mr. Investor Chindata from [ph] Zhou Relations Group. of Don go ahead, Don. Please

Unidentified Company Representative

Team to Operator. operations is Nick third quarterly be will Relations Finance an Founder With and your Hello, our opening Ju, you, Nick Nick and Mr. our Chindata's beginning, Alex review today Don the the though the will are Alex, delivering afterwards. us everyone. and questions Investor CEO; This Thank present our will call. Ms. Welcome President. be XXXX Zoe Alex our company. conference quarter from will Wang, you Mr. of Vice at take results. answer Zoe our CFO; performance of earnings remark here financial to Zoe Zhuang, and

the Harbor. quickly Now, over I'll go Safe

statements uncertainties we operations materially. to cause looking, and differ regarding our the performance be number of a that and involve today that of considered business, may make risks could such forward financial and results Some actual statements

more the SEC. to For with our the discussed in information, risk filings factors refer please

During and through website both at press non-GAAP which reconciliation investors.chindatagroup.com. distributed measures. A our the to GAAP GAAP non-GAAP Relations included release present this to we financial of earnings measures is and our is call, Investor public available will in located

turn presentation on call. call today's the We CEO. website have I quarterly Without to and our material over supplementary also Ju, further updated Investor on now Relations company's will refer the a our to which you Founder as ado, Alex can

Jing Ju

[Foreign Language]

Dongning Wang

since the for R&D efforts infrastructure made container in the pleased of company. through for and further results have achieved for in-house and we the capacity see I'll self-developed have into Chinpower. datacenter Chinindustry opening and Chinindustry's the critical Four first white-box company IPO pre-cast solution remark. translate solid possible. infrastructure. total computing built progress chain, is solution the passed remarks delivery cost-efficient This English. relentless model in to was breakthrough Thank datacenter cross-border up Chinidea, pursuit we you, Alex's quarters in the hyperscale With modules the our are technologies Alex Nick. of of integrated With supply With significant Chinidea's the for

realization effectively Chinpower, the new scenario sustainable by the development supporting industrial rapid green anchor scale. been the clients consumption have of we the of our With energy in of and

these obstacles, technologies, human resources, core has by the logistics pandemic With and arrangements as cornerstones, capabilities situation. overcome Chindata the brought cross-border

quarter of keep the comprehensive efforts, projects, hyperscale original tackling long-term value growth clients to our on Our with industrial stay key long firm keep On we further committed financial upgrade that rapid and our capacity highlights look pilot as is we for XXXX pace, the the greenfield adhere remain will their on business promoting transformation along with the take a zero-carbon in the model effectively Asia difficulties, company Page performance with market. and at development, propelling enhancing our performance Pacific of hyperscale was and focused belief in to development Chindata's third let's emerging our strategy, build-up as key slide. the of behalf and X and we research outstanding, our It full-stack as industry to with model. achieve our on support expansion

positive deployment. XX% high megawatts, stable Our Financial megawatts. very year-over-year the ratio continued, revenue quarter increased profitability. to by quarter Utilization the of healthy a end increased IT megawatts. Total megawatts customized growth our remained we is to quarter were new XX%. at and quarter as Quarterly responding XXX with to previous was megawatts service with momentum. capacity the business such density Steady its ramp by reaffirmed compared and best by straight XXX.X XX maintaining up clients in by increase capacity end demand, continued, utilized performance quarters indicating XXX capacity RMB industry. to RMB over as Adjusted increase RMB IT momentum Total million, healthy swiftly million in X was XX.X% XXX was the margin, margin with environment. XX.X%. for the of for the business three investment XX.X a the believe income despite such the EBITDA based headlines million. Meanwhile high remaining in which rating again net prospect we was were among such GAAP and a is as XXX.X stayed rating XX.X% XXs year-over-year with net recognized late solid in October in company the the macro and fundamentals for agencies, the by BBB- evolving Fitch, its

the Our up development. sustainable and build capacity

and over XX% number to data XXX. total with by our PUE quarter to centers quarter X.XX at the average Compared efficiency year-to-date outstanding, year by approved Our remained of of the pending Energy X.XX our patents two end third XXXX. of in increased

our the client market XX in million the delivered anchor constant and are the Our XXXX. development. development, from to hyperscale phases starting cooling Slide with we several to built-to-suit share exciting The overseas effort field won as results. from Chinese cloud and the newly owner leading hours. progress would in center And a land received of megawatts State. company Pacific a hyperscale bidding XXXX service great in and year-to-date with In advancing. efficiency total making be emerging was Johor a capacity we signed breakthrough recently implemented our the diversification, confirmed kilowatt has a On seated was launched innovated high provider. technology, is new China, a computing received and project power achieved, solid yielding Malaysia, and client is project, capacity expected is overseas to like green the contract has In MOU in consumption to new field company demand our Asia diversification XXMW development data market of business On model X, be client pleasure, the with with over green

project. data support effectively our export core prefabricated Importantly, will our and of this research in the technology integrated consistent build for modules up of development center

expansion technical hosting of be close market. company Bangkok. Thailand also a the is in supporting in XMW in Currently, key have IT finalizing will initiated upon plan to business and clients' business capacity capable upgrade a We Asia. completion development Southeast acquisition project The our of

added existing the X, capacity data their For Page XMW in as the demand service we several Utilized were for density and we quarter of deployments. in around momentum. business, responding maintaining as the added are on new high clients capacity healthy We in our quarter updated centers, indication such the swiftly to as steady contributed by a project increased of result and existing conversion of contracted project CNXX, in in in we utilized as the CNXX, capacity and CNXX-B such CNXX. the ramp up Meanwhile CNXX, by Northern XXMW capacity China. the of CNXX of CNXX-A XX%

the XX%. the quarter XXXMW As of X, is construction in under service construction. timeline we indicating by put XXXX in-service Total table, to in contracted remains or and ratio an capacity, on in shall by service is XX% centers of XXXMW among XXXMW indication are interest end for According and and and having of IT X total ratio XXXMW, a data which XX and add or high. capacities, assets X our the is our of the commitment overview capacity data XXXMW Page the all of up shown indication centers client in contracted under interest to be as contracted capacity by

ratio utilized is capacity is XX%. third quarter, XXXMW, the the utilization total end Our helthy. By of a utilization indicating of

dive touched building, our into Now, in upon which opening let's capability our was remark. briefly

green industry, Through Chinese XXX million total XXX power IDC sustainable driving green built consisting scale of In to Chinidea, a largest direct be green XXX inaugural established volume China's entities first industrial China aiming transaction, Chinpower, green new our the the entire green nationwide, four billion kilowatt-hours generation capability with digital of anchor carbon Chinpower, consumption has of trading, nation’s X.XXX made transaction and movers transaction up regional integrated stations green driving to and has million of X.XX% the first of and launched years. development consumed storage buyer Our as of contributing development renewable in progress development leader through the of ecosystem of a regional establishment clients of total power September, era, Among we and of Today, green low been value. zero industry great projects. energy power the consumption of the supporting a we infrastructure in in completed solid Chinindustry and have consumption major and four the so initiatives in transaction power its have kilowatt/hour consumption power effectively gross domestic power far. of innovative realization power kilowatts-hours. rapid the participating mechanism, power green total a we nationwide mechanism, of scenario. past power including, the energy into

productized projects. stable our our Asia-Pacific which agreement, power-station field integrated that of so solar hyperscale Such of that Even of annually, to prefabrication development with and of efficiency development of Chinidea, have effectively and wind gigawatts for development upon safeguard with the of further breakthrough the of supply in technology supply buildings We project development the therefore more emerging business Chinindustry, reserve, power For regional together infrastructure chain multiple will our system, prefabricated for renewable today is and client. model export engineering create chain green infrastructure, delivery has productized which is green support energy and construction, contribute center productized and a such leveraging solution to coordination in and data in computing computing signed establishment of significant X.X by concurrent cluster equipment, delivery and will will white-box centre providing made the data region improving we patents the market. hyperscale modules, and far. believe our completion. expected self-developed, of X.XX billion kilowatts energy

Now, other on recent of company XX. Slide the let's developments some turn to

business and the by recent reaffirmed of prospects macro headline credit despite environment. fundamentals solid evolving Our agencies, renowned are

location release, on acute Meanwhile, during BBB- the their improved supported company rating rating September with late maintaining international Global to of continued and staple than largest news as XX,XXX formally United world's standards, the alignment tariff than their is of Limited, with for energy XXX solid, In credit and According electricity and is Fitch will renewable the public corporate adequate sustainability of company. power members Holding and the As exploration became shortage to third from endorsement despite remain the development, strategic a in Nations active Chindata October additional XXXX, countries. member we investment profile our outlook in data supportive corporate quarter corporate more Group institutional our efforts. rate of ESG garnered centres, potential quoted, its use China. Compact, the hikes by initiative, a with which headroom more our issuers

the effort the the and centres promote the renewable emissions announcing Center energy by all development hyperscale be Thus, world XXXX. to Under XXXX and in XXX% company Climate solutions the Chindata the carbon Carbon categories in Also a the ESG shared has our member the to by the With garnering data further the long-term XXXX energy. to company XXX% Career is best infrastructure reaching public help Group won receive of honour. Awards energy APAC organization, Company’s jointly Projects launched The corporate our Information with joined such fellow a the accelerate endorsement. the “XXXX-XXX%” of energy China’s neutrality Research REXXX fulfil globe commitment Company with took October, becoming reaching businesses plan, powered drawn Nations’ Group, such the to of same highest and current constituents peak influential region global the hundreds around facilitating digital expanded the at renewable first As Global XXXX, efforts China. the and the company by green place At computing consumption in plan. of the development infrastructure time, prestigious the XX SDGs Disclosure on of initiative next-generation by vision. fulfil Global September all low-carbon of thus, global goal Environmental goal. XXth initiative, REXXX in first the utilizing is will will in initiative the renewable we accolades United collaborate additional by ESG helping The zero-carbon that of into around commitment scale goals which Asia-Pacific

implementation central layout, the the past scaling participating, et this XX%. Technology data in efficiency by of government energy Industry data enterprise, management, well cetera and consumption issued carbon the acknowledged paths managing XXXX in infrastructure monitoring as of seen computing MIIT to carbon leadership On provinces or energy a its been hyperscale and Several of have carbon power and by notice policy Energy Ministry These range months, power for of the the ESG thanks plan and carbon and as the Council which key of October issue NDRC’s national improved of mitigated companies, in September for APAC, NDRC, to and top Bureau's publishment release centre serious price a and and initiatives. and in on State the especially Development on-grid Slide wider guidance geographical noticed Reform price dioxide the taken, and and further published carbon emerging The price. APAC industry. the increase October, number update on, been have issued on-grid widely the the by peaking according for among of generation action or action reform is policies, up neutrality Information further elaborated focuses press on the deepening objectives were full peaking following centre expectation neutrality issue, insights of exploring, National earlier emphasized power for that market of before On Committee neutrality. respectively, few State November. on the offering market-oriented Company initiative, faithful year. coal-fired the National dioxide variation early in for philosophy, new on-grid stipulated shortage in for further As papers A XX. Council in working development has

in our detail now abundant Company, regions conclude limited, the the With our recent power for or zero, deployment been our the to issue our quarter. I believe the we third financial impact to through has on will been over a operational contributor. energy layout of to key have very and operation go I Zoe, overview. that, please. next call For turn Zoe,

Zoe Zhuang

Nick. you, Thank

XX.X% quarter increased grew capacity end, growth. to In Utilised the XXX year, XX, RMBXXX.X Now, turning in three year-over-year revenue. last by and by utilized total quarter X.X% capacity year-over-year to increased compared XX.X% revenue quarter same our with grew up Slide XXXMW indicating million. we quarter-over-quarter megawatts to

prudent control continuing stable For cost and our cost our core adjusted within us and efforts expenses range, income. adjusted our cost and enabled while structure, expense net to EBITDA our keep grow to percentage

year-over-year, filing would with third Adjusted EBITDA and year-over-year RMBXXX income XXX.X% GAAP in IR Slide and XX.X%. in XX% to Looking SG&A X.X% quarter-over-quarter Slide reconciliation XX% increased net around Take RMBXXX.X margin two XX, income the increased made quarter the non-GAAP into cost net and XX% XX.X% PPT. costs details, in the with a at range our of for in to in EBITDA closer the took our stable to around Adjusted of on around to costs expense look the XX%. XX%. XX. the last historical utility revenue of quarters, appendix items margin took our net quarter Maintenance other XX% strong a adjusted up was Adjusted to Details XX% and be the of on or available million and X-K to million. profitability XX.X%. or

and RMBXXX.X into [indiscernible] CNXX, competence RMBX.XX centers, look growth. last take capital company's end quarter XX cash expansion third and RMBX.X our XX RMBXXX.X XX. today This CapEx serve Slide as months the more in and debt months first was investing future continue business On especially by our customers quarter. incurred at to of the CapEx in position our and to in our a spending the the third CNXX, future billion meet CNXX, ensured was quarter billion. increased our million to shows customers BBYXX business third second work We in a from our compared quarter our the million great the CapEx ability in let's and demand under-construction CapEx expenditure on in data we capital basis, quarter, with Now,

the Our which cash standing billion and the restricted was cash includes position, billion. with RMBX.X total equivalents quarter and of at by cash end RMBX.X our cash debt

the Slide investment consisting by from XX, million cash and of we cash cash and the behind term CapEx cash offset million grew leverage. position, cash RMBXXX.X quality healthy profit continue at RMBX.X the RMBXXX.X outflow. generate the of indicating billion operations to project flow million investing adding operations high with additional RMBXXX.X our short to from formation change outflow Again, the closer on Looking matching we financing

As XX, XX.X%, end you same was ratio can debt-to-capital third total by compared our see XX.X% on of Slide in the last year. quarter with quarter

debt-to-last last X.X total in XX the year. EBITDA X.X the Our months was X.X quarter ratio adjusted previous quarter, to and compared same in

adjusted months with end the last last the XX of months of at X.X, same was interest of year. second EBITDA ratio Our quarter last compared end by XX by quarter, to end X.X X.X, quarter and third

a midpoint. guidance. the full guidance guidance our our conditions. reiterated the to Operator, revenue prepared XXXX our operational year both preliminary We questions. on are the of let's reflects forecast our XX.X% remarks EBITDA and our This ready current Finally, views adjusted market and are we full months and look for now at and nine take now take This at year today. concludes first

Operator

[Operator first Thank Stanley. line from Instructions] ahead. Our you. of Morgan go comes Yang from question Liu Please the

Yang Liu

me Language] customer or English. this basis? a this provide you Thank you [Foreign major location, of in scale, you. translate more more get the terms could customer the expect Let outlook in from whether management acquisition. question recurring color new very my in the about customer and this interested on on about Could -- elaborate I’m to future order

Jing Ju

[Foreign Language] Translation for Alex Ju.

China; MW The Chinese in is capacity. computing be XXMW with each to disclosed, that November two delivered several and provider. project two cloud we of a Northern we For in service phases, bidding the is the locations XX leading project client IT IT won the in top around in

Generally diversified a our as client we field adhere while the projects we forward, specified by will development provide delivering will as the base we on hyperscale specifications from based customized green as the delivery, customized you. the more speaking, same capable going establish clients. time at of Thank model, delivery far As to client.

Operator

Thank you.

question comes Tina from from next Goldman ahead. Please go Our Hou Sachs.

Tina Hou

[Foreign my Language] translate question. Let me

result. very very for time thank management congratulations a the solid much on So you and

megawatt So second are revenue is my you per Monthly by recent question X.X% quarter around revenue pricing, our pricing, third megawatt. increased contract service versus calculation, per actually service monthly the quarter. by in because actually

service in So versus like the different customer anchor new recovering? like contracts, also in structure, interested newly pricing, customer? Thanks. trend this And pricing there these, cloud anchor your service contract just a And your it wondering, to and then from for new customer? what is your of is is contract customer, or similar also

Dongning Wang

Hi, Tina, help thank This answering you for is these I'll your question. Nick. questions.

downward with consistently I major contract the stable did state stable year, stable very and pricing has And, in our trend somewhere of past such be especially think a on the been pricing that the current will remained some consistent, this industry the in customers, very but moving China. our, side, in and notice we forward. in

our Tier-X terms very of pricing, stable economies CapEx as well outside Tier-X regions As abundant our contract in has field those allow for we now, our hyperscale as a achieve in as terms our with of very spending. these to city All factors model, unique operating well of in financial contribute us a as as energy margin, we or structure advantage and have city. comfortable competitive scale, created of outside think that cost green lower a the us buffer structure full-stack efficiency,

computing newly can leading But maybe will the customized new for or In with see, and about handled to is our that anchor key detail client, we're of not or on related us your this the cloud and this and customers, under we with in-house. a customers our our the capability be position terms to also and total agreement for new we in say the question new of confidentiality will companies Thank a planning the clients. business pricing disclose corporation your question that all our model in this capacity models is that you.

Operator

Thank you.

James from comes ask question Please question. Next from Wang UBS. your

James Wang

entering one I've so your of question. the question Asian got We one [Foreign The around peers business. market Language] recently. the also saw Southeast overseas is Management,

your market? you. know and that future direction to are well as So growth the domestic I Chinese how just wanted competition the in as Thank level region of seeing now it the you to compares

Jing Ju

finalizing of received progress upgrade hosting Thank to customer Bangkok. several new starting also Malaysia, over also next XXMW, and the Johor [Foreign Language] project new Alex. State. strategic overseas capacity we're We're for other development project In as be hyperscale an MW in field XX be Furthermore, project data Southeast did green in within of capable XIT Asia, our will we opportunities acquisition quarter, from This such this in Thailand, company your the region. our key make the expected technical In is center in you a of a Translation seated a phases and business. MOU clients The has Vietnam to delivered has IT for built-to-suit and anchor upon question. be launched MW to Indonesia. completion actively in exploring the year. countries business in supporting it

in technology, center as modules, data hyperscale further progress Importantly, developed constant the container efficient breakthrough cross-border pre-cast of support will effectively and delivery model chain integrated and infrastructure. white-box self our for solution, the supply R&D, data as solution center total cost our and well

overall is demand Asia-Pacific prospects market For markets, think the healthy. the we in

unique receiving we we're models, and advance our higher As recognition. further wider

are be we peers field, We further and overall together Asia-Pacific regions or than can to green hyperscale, explore more this demand. in And come that expect the greater friends achieve do the model full-stack even well. the hope for we believe region there market. market who we demand will And in as emerging develop

Operator

All right.

Lin Marco Please the [ph] from your Citi. comes ask question. from question Next

Unidentified Analyst

in quarter sites? driver Thank longer a and crunch [Foreign on move quantify be impact term would of results. you. this and it remote for IDC translate. Language] great I'll to Congratulations Could you the the power towards

Dongning Wang

Lin. you, Mr. Thank

was power related due the reality, limited near we very think, power shortage the power next actually we we, impact of deployment very side, just energy strategy first primarily impact zero especially as we for in discussed, all as very, future. one. both impact and expect our of to to limited, started the I This day that in geographic of from issues, price, is QX. have in And almost

against forward, we renewable our competitive power Hubei, energy a the these year hedge would used, will when places in believe actually a like sites the our away too geographic and energy always our I from contribute long-term City also tariff like well adequate supply be will cornerstone and serve as to Going industry used that I about advantage think us. to development for they not related and I capacity [indiscernible] say to continue the One then area, remote, strategy, to Tier-X build even stable a create inflations, it's remember if secure the Shanxi side Beijing. any. continue you a but deployment as remote, commitment are thought Also, sense. on ago the on up as to is relatively power you term remote as peers some And

like a is fact, only Beijing. from kilometer In one away [indiscernible] downtown

Chindata a all little a these Tier-X locations clusters a in hyperscale, or majority So remote and to energy in are of deployed And remote, to locations. generally, think abundant Chindata's, your happens short term bit City I area. center those of is located data be outside hyperscale

And abundant, all. not, they're away For are stick you. but too because sense, State, Johor far regions Tier-X not and to in we energy city the Thank very abundant traditional example, Malaysia, [indiscernible], abundant energy only sense. they Datong at also from these the in not renewable will

Operator

you. Thank

from Hongjie comes CICC. question your Please next Li ask question. from Our

Hongjie Li

first [Foreign on Language] more Thanks you and CapEx how Thank XX-XX impact could energy? margin? on your we My on green [Foreign question Language] additional is, And the management. new the shall on you. initiative elaborate outlook

Dongning Wang

industry ourselves the all most computing commit a efficient power what we is to find to. is why to Chindata, of development energy this the how Chindata’s the long-term think means understanding That's electric renewable strategy IDC I way to by of that renewable convert always power. firstly; will

on neutrality case terms judge case, we're in how case will a based of the bigger factors. invested be But context China's by judgment Secondly, made we’ll national remember, operated, by case several company and critical in strategy. carbon of it the as will

open computing final goal among achieve the with industry on and customer, for return the trying for the And parties the adequate our renewable investor, and cetera. will execution. [ph] cooperation IDC we investment strike one to supply, balance objective to energy is opportunity So, power exclude process, capital the participant renewable now obviously initials required, optimum operation during infrastructure best on as side along you. or the invested energy, power of both ultimate price, external in strategy and et any value side this the involve not investment or to we Thank are renewable

Operator

Thank you.

Next question question. Albert from Please comes Hung JPMorgan. from ask your

Albert Hung

customer [Foreign would some outlook you. transfer moving in slowdown of the demand? XXXX rates Chindata the has slowdown first year how from about in conservative you concentration Language] rates? turned hyperscale. and risk in next moving half In more potential high range, My especially indicated concerns Chindata for the half similar Thank second new mitigate winner also hyperscale sees

Jing Ju

Language] Alex. Translations for for Thank question. [Foreign your you

a in similar has topic general. Nick addressed think I just

diversification, the concept line marginally product client the anchor going and us. geographic, of on as risk that hyperscale such Our the and product mentioned Different should market forward. in we're creating hedging different to the solution share if demand recent of of data players data center not progress profile itself, diversification definition market sure may our definition as same the for offerings. hyperscale be lead all you other center, in client as Then, better diversification the for and a company segments and well

as stage, business like a are clients at just partner early when anchor its very Our we business Chindata a startup company.

we the full-stack model and has green hyperscale way along accompanied hyperscale grew be to model, field, all the -- our the Our exact, or together. client

together. believe good So job a so now We done for we're we still them growing far. have

pipeline year, introduction or we disclosed to Thank can the next general refer For our you. or information. our

Operator

you. Thank

from question [ph] your Bank. Daniel comes from question ask Please Wang next Our DBS

Unidentified Analyst

third Thanks rate recent in strong Language] tariff for given as Thank quarter, you. congratulations and third competition landscape the China, moving outlook the other competitors is power the hike the shortage management My the in demand on and [Foreign results. slow opportunity, in saw a for and China? quarter is, current we what question

Dongning Wang

answer is actually This you. Nick and Thank to going I'm these questions.

I the try find computing IDC's think, our one to reiterate power doing is and the way from day of of has most strategy important business. nature to company always most power. We been power and want I to Therefore for way Chindata's one. of believe converting integrated, electric efficient

proved the and government way, the it's and papers IDC as can, numerous few the MIT by on and the also neutrality the carbon you country. elaborating intensive vision past authority in DRC in as can the entire see for related for power on in and like a industry, months, policy very marketplace So issues target actually you Council a recently State issued

As X% fact made X%, the industry that the around well as total last year. energy Chinese of consumption IDC nationwide up the

to related and we strategy. geographical company this deployment we close why though, can strategy IDC particular for have so with in to power understand And the company the kind for why this side becoming fully this, from important we day important. a line the IDC a that's offer and energy is industry. very execute They is energy You along power believe the explain, into one be Therefore, belief on very, very power of strategy.

adequate we deployment speaking, the inflation against secure For present power you. And geographical well contribute future. Thank will supply, energy the capacity a to long-term renewable commitment power the up related so to as as to serve very cornerstone. development believe to as in at build if will continue energy-sided be hedge stable continue company and our will any our the our and going tariff forward, to

Operator

you. Thank

question comes [indiscernible]. question next from ask Please Our your

Unidentified Analyst

translate me let my So Language] [Foreign question.

own release question news feeds in will see public demand a about cloud ByteDance I have that December. the from ByteDance. We its So some

if this the about also color and new get just we and from can can in you. some overseas? So get China orders Thank wondering we from demand ByteDance

Dongning Wang

that operations, And Thank happy. delivery successful. and past the high you. them the This sorry, made recently deployment our trying think our questions. in is and we overseas I capable If development remain clients, make look has their of anchor of in becoming will and as ByteDance Alex, our capability quality become market collaboration of And partner you both Nick. our back Again, is up just be exciting. in-house market because supporting further ecosystem we constant history, – this very very our with answer We're and so. to overseas progress particular client, these within will mentioned, I'm customers and overseas. -- Again, were China our to this our quarter The and I'm in in deliver with fully we build confident been

of our there cloud your of but you. far on new and and not the due, we to interaction question business, upcoming, think based with launch, a our I for momentum see forthcoming all data product ongoing as this. high comments cloud, Thank position business in XC on about on business. positive development, think the And kind as our beneficiary we'll that XB or is As the customer, client, very a this a I be well signaling out very chance the any make as behalf public I'm their key of

Operator

you. Thank

Our next ahead. go question Jefferies. Lee Please from comes from Edison

Edison Lee

[Foreign on deal, is new client Language] cloud question mainly China. So in the my client

terms your said the for you clients. client us existing projects, IRR earlier, requirements difference of the two business And power existing you seems the it extended somewhat are what or includes as in from can contract is whether also projects? So and different the the that model particular of their tell with this these

of on can you. what are the what there you elaborate actually maybe Thank for and differences projects? So implications these any the investment are if value

Dongning Wang

the this moment, of because to the QX, contract the new questions, answer signing customers. think we customers, the close most at very think of final are your stage and post our with development, I I think one at so recently, I was

think you further at can not any framework actually, you first very for particular is lower position we But that what tell customer. back cost to average is with this all I of signed disclose moment, in our we're advantage the on exactly So detail. the I recently, new that was to this and than a if accomplished, a obviously our the these reasons. remember the we this at because time, we operating And year, half and our credentials side agreement And in said deployments, have. reason signing efficiencies all due energy

places locations. northern is one northern the project China a models, another corporation matter said one we customer going is project and the as model So of currently located customization our operating of be in to in are hyperscale our

please the Thank company. by You know, other public for details, the in at other look disclosure you.

Operator

Thank you.

comes Morgan Liu Stanley. next ask Our Please Yang from from question your question.

Yang Liu

Thanks what like for debt the would another the will hear step to the [Foreign next the management's offshore and financing? the I to be question. opportunity financing. We And that in in market bond is you. ask is comment status Language] debt The question Thank the noticed what volatility. about

Zoe Zhuang

all, Actually, healthy liquidity financing and Liu. we of you, have a very leverage profile. first sufficient Thank

and see, end together from of we have at short quarter, which cash operations, to this is which RMBXXX cash can RMBXXX of is with And balance, around our billion, cash company equivalents around debt has an million. investments, hand. we term contrast Also cash RMBX.X As which by we quarter. net the is RMBX.X this position debt, billion active have flow some in net the

of or we by just agencies end for With besides which us very ratio debt recently. the we low, this, level, practice reaching XX.X%, debt market. options time, only the daily level, at options investment low regard and total room and with leave with loans private allows have projects, regular projects, financing slide that on domestic both same along have very with in the financing this and reviewed like the quarter, and at debt-to-total the industry capital us grade. the Thank with looking more On development this is reaffirmed So, are oversea public that compared project to we this it financing. rating for of also bank BBB- company a are consistent into And progress, operations, the they very the you. private quarter financing is both and more

Operator

you. Thank

Hou question Please Sachs. question. next Tina your comes from ask Goldman Our from

Tina Hou

opportunity on M&A, as management cash very our Language] position M&A your the on view my abundant much thanks mentioned, sheet. second balance regarding [Foreign because, a cash So the just net question, again, and company's for you have actually very

while in and this the stage. any limiting your wondering saw view others at as So are their our peers M&A M&A M&A, actually Chinese we not market, accelerating are of doing some what's specifically

view So, Chindata’s M&A? on Thanks. what's potential

Dongning Wang

Our you view thank is for questions. on this the Nick, potential, Tina the

the way. the acquisition, strategy merger one company's in think of that's a on very supplementary Our we also view

very, asset, potential for business allow and overseas a a sometimes value valuation say must will a very asset. we of And the on principal capability, the current power but the us on acquisition at Okay, and in the and more in the same the principles. in-house of that side which our up provide the and China We we most valuation. China, importantly, acquisition we with to geography, in there to And to hope to field stick for, green we for this Once the more both the think And in the a and obviously plus trigger. power increasing and the merger and emphasize assets, That's the for Thank potential full-stack, for efficiencies important won't very at take stringent the supply eyes more look at all synergies and not we around the so Chindata. the We demand we ever merger the be merger be and stringent can these future think model, do I also simply to the at that, target, hope and -- targeted is and interesting but development demand will acquire certain tech We we be unique plan, acquisition opportunities merger sake side And hyperscale, itself. But potential the Chindata, asset strategy both we driven given of multiple of this resource are overseas and in clients. will then to in we're operating as pull targeted I acquisition, -- to renewable client all too on the looking competitive multiple by on going the reasonable company, to at is we looking more the to some reasonable essentially. and China computing the merger the criteria. stick window time but our that company base, to a off be you. kind plan big, internet emphasize in given for stick of very open stringent can consolidation, we want landscape even that landscape if of acquisition principle actually making assets. opportunities city both kinds Tier-X add time we acquisition merger several even some operation whether, us but the

Operator

Thank right. All you.

your question next comes Lee Jefferies. from Edison Our Please question. from ask

Edison Lee

to [Foreign RMBX this Language] is I just and guidance next as get to whether RMBX year? for billion of So my question to the idea changed outlook the what's about billion an want CapEx. year CapEx has

Zoe Zhuang

you. Thank

was billion our with line incurred this forecast. And for on year for is CapEx around by this in full months quarter. XX-month we basis, end CapEx of last around far, RMB generally quarter So expenditure a CapEx XX RMBX.X RMBX.X billion. This

can majority investment CapEx to year's the you are we and next support the orders you. also And see gradually under-construction announced be new to besides Thank or delivered than project year, three this that this next of opportunities expansions the this pipelines. For region and the higher assets somewhat delivery. project be expect year solid, we and will today, these

Operator

the thank at are They question the right, team to I time. you. further their All turn no closing call will management back for this remarks.

Dongning Wang

earnings be made way a industry’s belief to once more more, We community I pay is to renewable the to convert and how different IDC And regular for analysts the and to remark you attention your thank to in an believe just the treat I going want is most public power of computing like efficient Chindata. in to the and from emphasize little a nature probably And bit be electric power peers. investment our electric the we lot every our -- going find the provider. most call, ourselves to infrastructure that's that service power. quarterly of whole and is to for unique future

to so business therefore we're make provider, we'll you. going way. hosting and along now the to the strategy, IDC, service execution Let's Thank complete perfect this stick

Operator

our conference Ladies today. participating. and gentlemen, for you conclude for that does Thank

all your lines. You disconnect may