GDS Holdings Limited Reports Fourth Quarter and Full Year 2024 Results

SHANGHAI, China, March 19, 2025 (GLOBE NEWSWIRE) -- GDS Holdings Limited (“GDS Holdings”, “GDS” or the “Company”) (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in China, today announced its unaudited financial results for the fourth quarter and full year ended December 31, 2024. DayOne Data Centers Limited (“DayOne”), previously known as GDS International or GDSI, completed and closed its Series B equity raise on December 31, 2024. At closing, GDS’s equity interest in DayOne was diluted from 52.7% to 35.6%. Accordingly, GDS deconsolidated DayOne as a subsidiary and recognized DayOne as an equity investee. In the consolidated financial statements for the quarter and year ended December 31, 2024, DayOne’s operational results and cash flows have been excluded from the Company’s financial results from continuing operations and have been separately itemized under discontinued operations. Retrospective adjustments to the historical statements of operations and cash flows have also been made to provide a consistent basis of comparison for the financial results. Furthermore, retrospective adjustments were made to categorize and label DayOne’s assets and liabilities as “assets or liabilities of discontinued operations” on balance sheets for the comparative periods. Additionally, DayOne’s operating metrics have also been excluded from the Company’s operating metrics and have been separately itemized under discontinued operations. Fourth Quarter 2024 Financial Highlights For Continuing Operations Net revenue increased by 9.1% year-over-year (“Y-o-Y”) to RMB2,690.7 million (US$368.6 million) in the fourth quarter of 2024 (4Q2023: RMB2,465.3 million).Net loss from continuing operations was RMB173.4 million (US$23.8 million) in the fourth quarter of 2024 (4Q2023: RMB3,074.6 million).Adjusted EBITDA (non-GAAP) increased by 13.9% Y-o-Y to RMB1,297.7 million (US$177.8 million) in the fourth quarter of 2024 (4Q2023: RMB1,139.2 million). See “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release.Adjusted EBITDA margin (non-GAAP) was 48.2% in the fourth quarter of 2024 (4Q2023: 46.2%). Full Year 2024 Financial Highlights For Continuing Operations Net revenue increased by 5.5% Y-o-Y to RMB10,322.1 million (US$1,414.1 million) in 2024 (2023: RMB9,782.4 million).Net loss from continuing operations was RMB770.9 million (US$105.6 million) in 2024 (2023: RMB3,926.0 million).Adjusted EBITDA (non-GAAP) increased by 3.0% Y-o-Y to RMB4,876.4 million (US$668.1 million) in 2024 (2023: RMB4,733.0 million). See “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release.Adjusted EBITDA margin (non-GAAP) was 47.2% in 2024 (2023: 48.4%). Fourth Quarter and Full Year 2024 Operating Highlights For Continuing Operations Total area committed and pre-committed increased by 1.8% Y-o-Y to 629,997 sqm as of December 31, 2024 (December 31, 2023: 618,942 sqm).Area utilized increased by 11.8% Y-o-Y to 453,094 sqm as of December 31, 2024 (December 31, 2023: 405,302 sqm).Utilization rate for area in service was 73.8% as of December 31, 2024 (December 31, 2023: 73.9%). “In 2024, we executed our business strategy in a disciplined way,” stated Mr. William Huang, Chairman and CEO of GDS. “We focused on backlog delivery while being selective on new commitments. At the same time, we made significant progress with our asset monetisation program with first ever data center ABS issue in China. Looking forward, we are well positioned strategically and financially to capture new business opportunities arising from AI.” Fourth Quarter 2024 Financial Results For Continuing Operations Net revenue in the fourth quarter of 2024 was RMB2,690.7 million (US$368.6 million), a 9.1% increase over the same period last year of RMB2,465.3 million. The Y-o-Y increase was mainly due to continued ramp-up of our data centers. Cost of revenue in the fourth quarter of 2024 was RMB2,112.5 million (US$289.4 million), a 3.9% increase over the same period last year of RMB2,032.4 million. The Y-o-Y increase was in line with the continued growth of our business. Gross profit was RMB578.1 million (US$79.2 million) in the fourth quarter of 2024, a 33.5% increase over the same period last year of RMB432.9 million. Gross profit margin was 21.5% in the fourth quarter of 2024, compared with 17.6% in the same period last year. The Y-o-Y increase was mainly due to a lower level of depreciation and amortization costs as percentage of net revenue as the data centers continue to ramp up. Adjusted Gross Profit (“Adjusted GP”) (non-GAAP) is defined as gross profit excluding depreciation and amortization, operating lease cost relating to prepaid land use rights, accretion expenses for asset retirement costs and share-based compensation expenses allocated to cost of revenue. Adjusted GP was RMB1,396.7 million (US$191.3 million) in the fourth quarter of 2024, an 11.8% increase over the same period last year of RMB1,249.3 million. See “Non-GAAP Disclosure” and “Reconciliations of GAAP and non-GAAP results” elsewhere in this earnings release. Adjusted GP margin (non-GAAP) was 51.9% in the fourth quarter of 2024, compared with 50.7% in the same period last year. The Y-o-Y increase was mainly due to a lower level of cash cost components as percentage of net revenue. Selling and marketing expenses, excluding share-based compensation expenses of RMB6.9 million (US$0.9 million), were RMB23.7 million (US$3.2 million) in the fourth quarter of 2024, a 4.1% decrease over the same period last year of RMB24.7 million (excluding share-based compensation of RMB9.3 million). The Y-o-Y decrease was mainly due to less marketing activities. General and administrative expenses, excluding share-based compensation expenses of RMB55.9 million (US$7.7 million), depreciation and amortization expenses of RMB79.0 million (US$10.8 million) and operating lease cost relating to prepaid land use rights of RMB15.6 million (US$2.1 million), were RMB108.5 million (US$14.9 million) in the fourth quarter of 2024, a 3.3% increase over the same period last year of RMB105.1 million (excluding share-based compensation expenses of RMB35.8 million, depreciation and amortization expenses of RMB88.9 million and operating lease cost relating to prepaid land use rights of RMB16.6 million). The Y-o-Y increase was due to an increase in corporate activities as business continues to grow. Research and development costs were RMB6.9 million (US$0.9 million) in the fourth quarter of 2024, compared with RMB12.8 million in the same period last year. Impairment losses of long-lived assets was zero in the fourth quarter of 2024, compared with RMB3,013.4 million in the same period last year. Net interest expenses for the fourth quarter of 2024 were RMB458.7 million (US$62.8 million), a 1.8% increase over the same period last year of RMB450.7 million. The Y-o-Y increase was mainly due to a higher level of total borrowings. Foreign currency exchange gain for the fourth quarter of 2024 was RMB8.1 million (US$1.1 million), compared with a loss of RMB6.0 million in the same period last year. Others, net for the fourth quarter of 2024 was RMB29.7 million (US$4.1 million), compared with RMB30.3 million in the same period last year. Income tax expenses for the fourth quarter of 2024 were RMB34.1 million (US$4.7 million), compared with income tax benefits of RMB225.3 million in the same period last year. Net loss from continuing operations in the fourth quarter of 2024 was RMB173.4 million (US$23.8 million), compared with RMB3,074.6 million in the same period last year. Adjusted EBITDA (non-GAAP) is defined as net income (loss) excluding income (loss) from discontinued operations, net interest expenses, income tax expenses (benefits), depreciation and amortization, operating lease cost relating to prepaid land use rights, accretion expenses for asset retirement costs, share-based compensation expenses, gain from purchase price adjustment and impairment losses of long-lived assets. Adjusted EBITDA was RMB1,297.7 million (US$177.8 million) in the fourth quarter of 2024, a 13.9% increase over the same period last year of RMB1,139.2 million. Adjusted EBITDA margin (non-GAAP) was 48.2% in the fourth quarter of 2024, compared with 46.2% in the same period last year. The Y-o-Y increase was mainly due to a lower level of cash cost components as percentage of net revenue and a decrease in corporate expenses as percentage of net revenue. Full Year 2024 Financial Results For Continuing Operations Net revenue in 2024 was RMB10,322.1 million (US$1,414.1 million), a 5.5% increase from RMB9,782.4 million in 2023, or a 6.3% increase excluding previously disclosed one-time items in 2023. Cost of revenue in 2024 was RMB8,099.4 million (US$1,109.6 million), a 3.4% increase from RMB7,831.2 million in 2023. Gross profit was RMB2,222.6 million (US$304.5 million) in 2024, a 13.9% increase from RMB1,951.2 million in 2023. Gross profit margin was 21.5% in 2024, compared with 19.9% in 2023. Selling and marketing expenses, excluding share-based compensation expenses of RMB25.0 million (US$3.4 million), were RMB91.4 million (US$12.5 million) in 2024, a 5.9% decrease from RMB97.1 million (excluding share-based compensation of RMB43.8 million) in 2023. General and administrative expenses, excluding share-based compensation expenses of RMB165.6 million (US$22.7 million), depreciation and amortization expenses of RMB291.7 million (US$40.0 million) and operating lease cost relating to prepaid land use rights of RMB65.3 million (US$8.9 million), were RMB395.3 million (US$54.2 million) in 2024, a 13.9% increase from RMB347.1 million (excluding share-based compensation expenses of RMB162.9 million, depreciation and amortization expenses of RMB387.8 million and operating lease cost relating to prepaid land use rights of RMB68.2 million) in 2023. Research and development costs were RMB36.3 million (US$5.0 million) in 2024, compared with RMB38.2 million in 2023. Impairment losses of long-lived assets was zero in 2024, compared with RMB3,013.4 million in 2023. Net interest expenses were RMB1,834.9 million (US$251.4 million) in 2024, a 0.4% decrease from RMB1,842.5 million in 2023. Others, net was RMB49.1 million (US$6.7 million) in 2024, compared with RMB109.7 million in 2023. Net loss from continuing operations was RMB770.9 million (US$105.6 million) in 2024, compared with RMB3,926.0 million in 2023. Adjusted EBITDA (non-GAAP) was RMB4,876.4 million (US$668.1 million) in 2024, a 3.0% increase from RMB4,733.0 million in 2023, or a 5.1% increase excluding previously disclosed one-time items in 2023. Adjusted EBITDA margin (non-GAAP) was 47.2% in 2024, compared with 48.4% in 2023, or 47.8% excluding previously disclosed one-time items in 2023. Fourth Quarter and Full Year 2024 Financial Results for Discontinued Operations Net revenue was RMB443.4 million (US$60.7 million) in the fourth quarter of 2024, a 331.1% increase from RMB102.9 million in the same period last year. For the full year 2024, net revenue was RMB1,262.1 million (US$172.9 million), a 618.2% increase from RMB175.7 million in 2023. Loss from operations of discontinued operations, net of income taxes in the fourth quarter of 2024 was RMB190.5 million (US$26.1 million), compared with RMB90.0 million in the same period last year. Loss from operations of discontinued operations, net of income taxes in 2024 was RMB400.8 million (US$54.9 million), compared with RMB359.4 million in 2023. Adjusted EBITDA (non-GAAP) for discontinued operations is defined as loss from operations of discontinued operations, net of income taxes excluding net interest expenses, income tax expenses (benefits), depreciation and amortization, operating lease cost relating to prepaid land use rights and accretion expenses for asset retirement costs. Adjusted EBITDA (non-GAAP) was RMB109.7 million (US$15.0 million) in the fourth quarter of 2024, compared with RMB3.8 million in the same period last year. For the full year 2024, Adjusted EBITDA (non-GAAP) was RMB332.3 million (US$45.5 million), compared with negative RMB98.5 million in 2023. Adjusted EBITDA margin (non-GAAP) was 24.7% in the fourth quarter of 2024, compared with 3.7% in the same period last year. For the full year 2024, adjusted EBITDA margin (non-GAAP) was 26.3% compared with negative 56.1% in 2023. Gain on Deconsolidation of Subsidiaries Gain on deconsolidation of subsidiaries in the fourth quarter of 2024 and full year of 2024 was RMB4,475.5 million (US$613.1 million), arising from the difference between the aggregate of the fair value of retained non-controlling equity interest and the carrying amount of equity interest owned by other investors in former subsidiaries at the date of deconsolidation, and the carrying amount of the deconsolidated subsidiaries’ assets and liabilities. Net Income Net income in the fourth quarter of 2024 was RMB4,111.6 million (US$563.3 million), compared with a net loss of RMB3,164.6 million in the same period last year. Net income was RMB3,303.8 million (US$452.6 million) in 2024, compared with a net loss of RMB4,285.4 million in 2023. Basic and diluted income per ordinary share in the fourth quarter of 2024 was RMB2.81 (US$0.39), compared with loss of RMB2.16 in the same period last year. Basic and diluted income per American Depositary Share (“ADS”) in the fourth quarter of 2024 was RMB22.51 (US$3.08), compared with loss of RMB17.30 in the same period last year. Basic and diluted income per ordinary share was RMB2.29 (US$0.31) in 2024, compared with loss of RMB2.96 in 2023. Basic and diluted income per ADS was RMB18.28 (US$2.50) in 2024, compared with loss of RMB23.67 in 2023. Liquidity for GDS Excluding DayOne GDS deconsolidated DayOne as a subsidiary on December 31, 2024. As a result, the following financial information excludes DayOne’s assets and liabilities. As of December 31, 2024, cash was RMB7,867.7 million (US$1,077.9 million). Total short-term debt was RMB4,978.4 million (US$682.0 million), comprised of short-term borrowings and the current portion of long-term borrowings of RMB4,341.6 million (US$594.8 million), the current portion of convertible bonds payable of RMB575 thousand (US$79 thousand) and the current portion of finance lease and other financing obligations of RMB636.2 million (US$87.2 million). Total long-term debt was RMB38,084.2 million (US$5,217.5 million), comprised of long-term borrowings (excluding current portion) of RMB21,906.0 million (US$3,001.1 million), the non-current portion of convertible bonds payable of RMB8,576.6 million (US$1,175.0 million) and the non-current portion of finance lease and other financing obligations of RMB7,601.7 million (US$1,041.4 million). During the fourth quarter of 2024, the Company obtained new debt financing and refinancing facilities of RMB960.0 million (US$131.5 million) for continuing operations. During the full year of 2024, the Company obtained new debt financing and refinancing facilities of RMB5,734.0 million (US$785.5 million) for continuing operations. Liquidity For DayOne As of December 31, 2024, upon deconsolidation, cash was RMB9,930.9 million (US$1,360.5 million). Total gross debt, including borrowings and finance lease and other financing obligations, was RMB10,417.6 million (US$1,427.2 million). Fourth Quarter and Full Year 2024 Operating Results For Continuing Operations Sales Total area committed and pre-committed at the end of the fourth quarter of 2024 was 629,997 sqm, compared with 618,942 sqm at the end of the fourth quarter of 2023 and 626,783 sqm at the end of the third quarter of 2024, an increase of 1.8% Y-o-Y and 0.5% quarter-over-quarter (“Q-o-Q”), respectively. In the fourth quarter of 2024, gross additional total area committed was 9,387 sqm, mainly contributed by data centers in Shanghai. Net additional total area committed was 3,214 sqm. In the full year of 2024, gross additional total area committed was 49,452 sqm, and net additional total area committed was 11,055 sqm. Data Center Resources Area in service at the end of the fourth quarter of 2024 was 613,583 sqm, compared with 548,352 sqm at the end of the fourth quarter of 2023 and 595,606 sqm at the end of the third quarter of 2024, an increase of 11.9% Y-o-Y and 3.0% Q-o-Q. In the fourth quarter of 2024, net additional area in service for China was 17,977 sqm, mainly from data centers in Changshu, Langfang and Huizhou. Area under construction at the end of the fourth quarter of 2024 was 102,691 sqm, compared with 151,602 sqm at the end of the fourth quarter of 2023 and 120,422 sqm at the end of the third quarter of 2024, a decrease of 32.3% Y-o-Y and 14.7% Q-o-Q, respectively. Commitment rate for area in service was 91.9% at the end of the fourth quarter of 2024, compared with 92.5% at the end of the fourth quarter of 2023 and 92.1% at the end of the third quarter of 2024. Pre-commitment rate for area under construction was 64.1% at the end of the fourth quarter of 2024, compared with 73.8% at the end of the fourth quarter of 2023 and 65.1% at the end of the third quarter of 2024. Move-In Area utilized at the end of the fourth quarter of 2024 was 453,094 sqm, compared with 405,302 sqm at the end of the fourth quarter of 2023 and 438,654 sqm at the end of the third quarter of 2024, an increase of 11.8% Y-o-Y and 3.3% Q-o-Q. In the fourth quarter of 2024, gross additional area utilized was 16,390 sqm, mainly contributed by data centers in Langfang, Huizhou and Shanghai. Net additional area utilized was 14,440 sqm. In the full year of 2024, gross additional area utilized was 79,431 sqm, and net additional area utilized was 47,792 sqm. Utilization rate for area in service was 73.8% at the end of the fourth quarter of 2024, compared with 73.9% at the end of the fourth quarter of 2023 and 73.6% at the end of the third quarter of 2024. Fourth Quarter and Full Year 2024 Operating Results for Discontinued Operations Total power committed was 469 MW as of December 31, 2024, an increase from 433 MW as of September 30, 2024. The contribution was mainly from the two sites in Johor, Malaysia. Power Capacity in Service was 132 MW as of December 31, 2024, compared to 131 MW as of September 30, 2024. Power Capacity Under Construction was 369 MW as of December 31, 2024, an increase from 320 MW as of September 30, 2024. This increase was primarily driven by the progress of two new data centers under construction in Johor sites. Power utilized was 123 MW as of December 31, 2024, an increase from 105 MW as of September 30, 2024. Utilization Rate was 93.6% as of December 31, 2024. Recent Development Reference is made to the Company’s press release on March 10, 2025 where it announced that it has entered into definitive agreements to monetize, on a net basis, a 70% equity interest in certain of its data centers, at an implied enterprise value (“EV”) to EBITDA multiple of around 13 times. In such transaction, GDS is selling a 100% equity interest in certain data center project companies to a purchaser which is special purpose vehicle involving the issue of an Asset Backed Security (“ABS”). The ABS is 70% subscribed by top tier institutional investors in China, led by China Life Insurance Company Limited (“China Life"), whilst GDS subscribes for the remaining 30% and retains the rights for on-going operation of the underlying data centers. The ABS will be registered on the Shanghai Stock Exchange as a privately-held standardized security product. The ABS is specifically designed to facilitate an eventual injection into a public REIT vehicle (commonly referred to as “C-REIT”) for public offering and listing in the future, when certain qualification requirements under the ABS scheme are satisfied. Notwithstanding the above, such potential injection remains subject to, among other things, the satisfaction of relevant regulatory and disclosure requirements (including but not limited to the Hong Kong Listing Rules requirement on spin-off listing) and there is currently no concrete or definitive plan in this regard. Business Outlook For Continuing Operations For the full year of 2025, the Company expects its total revenues to be between RMB11,290 million to RMB11,590 million, implying a year-on-year increase of between approximately 9.4% to 12.3%; and its Adjusted EBITDA to be between RMB5,190 million to RMB5,390 million, implying a year-on-year increase of between approximately 6.4% to 10.5%. In addition, the Company expects capex to be around RMB4,300 million for the full year of 2025. This forecast assumes completion of the ABS transaction and deconsolidation of the underlying data center project companies. However, the gain on sale is not included in Adjusted EBITDA. This forecast reflects the Company’s preliminary view on the current business situation and market conditions, which are subject to change. Conference Call Management will hold a conference call at 8:00 a.m. U.S. Eastern Time on March 19, 2025 (8:00 p.m. Beijing Time on March 19, 2025) to discuss financial results and answer questions from investors and analysts. Participants should complete online registration using the link provided below at least 15 minutes before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Participant Online Registration:https://register-conf.media-server.com/register/BI4cc739e1f3c748ffa22f7df4125e5079 A live and archived webcast of the conference call will be available on the Company's investor relations website at investors.gds-services.com. Non-GAAP Disclosure Our management and board of directors use Adjusted EBITDA, Adjusted EBITDA margin, Adjusted GP and Adjusted GP margin, which are non-GAAP financial measures, to evaluate our operating performance, establish budgets and develop operational goals for managing our business. We believe that the exclusion of the income and expenses eliminated in calculating Adjusted EBITDA and Adjusted GP can provide useful and supplemental measures of our core operating performance. In particular, we believe that the use of Adjusted EBITDA as a supplemental performance measure captures the trend in our operating performance by excluding from our operating results the impact of our capital structure (primarily interest expense), asset base charges (primarily depreciation and amortization, operating lease cost relating to prepaid land use rights, accretion expenses for asset retirement costs and impairment losses of long-lived assets), other non-cash expenses (primarily share-based compensation expenses), and other income and expenses which we believe are not reflective of our operating performance, whereas the use of adjusted gross profit as a supplemental performance measure captures the trend in gross profit performance of our data centers in service by excluding from our gross profit the impact of asset base charges (primarily depreciation and amortization, operating lease cost relating to prepaid land use rights and accretion expenses for asset retirement costs) and other non-cash expenses (primarily share-based compensation expenses) included in cost of revenue. In addition, we exclude the income (loss) from discontinued operation from our Adjusted EBITDA and Adjusted EBITDA margin to measure our financial performance from continuing operations, which will be consistent with our future financial performance disclosure. We note that depreciation and amortization is a fixed cost which commences as soon as each data center enters service. However, it usually takes several years for new data centers to reach high levels of utilization and profitability. The Company incurs significant depreciation and amortization costs for its early stage data center assets. Accordingly, gross profit, which is a measure of profitability after taking into account depreciation and amortization, does not accurately reflect the Company’s core operating performance. We also present these non-GAAP measures because we believe these non-GAAP measures are frequently used by securities analysts, investors and other interested parties as measures of the financial performance of companies in our industry. These non-GAAP financial measures are not defined under U.S. GAAP and are not presented in accordance with U.S. GAAP. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, cash flows or our liquidity, investors should not consider them in isolation, or as a substitute for gross profit, net income (loss), cash flows provided by (used in) operating activities or other consolidated statements of operations and cash flow data prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of these non-GAAP financial measures instead of their nearest GAAP equivalent. First, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted GP, and Adjusted GP margin are not substitutes for gross profit, net income (loss), cash flows provided by (used in) operating activities or other consolidated statements of operation and cash flow data prepared in accordance with U.S. GAAP. Second, other companies may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of these non-GAAP financial measures as tools for comparison. Finally, these non-GAAP financial measures do not reflect the impact of income (loss) from discontinued operations, net interest expenses, incomes tax benefits (expenses), depreciation and amortization, operating lease cost relating to prepaid land use rights, accretion expenses for asset retirement costs, share-based compensation expenses, gain from purchase price adjustment and impairment losses of long-lived assets, each of which have been and may continue to be incurred in our business. We mitigate these limitations by reconciling the non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating our performance. We do not provide forward-looking guidance for certain financial data, such as depreciation, amortization, accretion, share-based compensation and net income (loss); the impact of such data and related adjustments can be significant. As a result, we are not able to provide a reconciliation of forward-looking U.S. GAAP to forward-looking non-GAAP financial measures without unreasonable effort. Such forward-looking non-GAAP financial measures include the forecast for Adjusted EBITDA in the section captioned “Business Outlook For Continuing Operations” set forth in this press release. For more information on these non-GAAP financial measures, please see the table captioned “Reconciliations of GAAP and non-GAAP results” set forth at the end of this press release. Exchange Rate This announcement contains translations of certain RMB amounts into U.S. dollars (“USD”) at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB7.2993 to US$1.00, the noon buying rate in effect on December 31, 2024 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. Statement Regarding Preliminary Unaudited Financial Information The unaudited financial information set out in this earnings release is preliminary and subject to potential adjustments. Adjustments to the consolidated financial statements may be identified when audit work has been performed for the Company’s year-end audit, which could result in significant differences from this preliminary unaudited financial information. About GDS Holdings Limited GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698) is a leading developer and operator of high-performance data centers in China. The Company’s facilities are strategically located in and around primary economic hubs where demand for high-performance data center services is concentrated. The Company’s data centers have large net floor area, high power capacity, density and efficiency, and multiple redundancies across all critical systems. GDS is carrier and cloud-neutral, which enables its customers to access the major telecommunications networks, as well as the largest PRC and global public clouds, which are hosted in many of its facilities. The Company offers co-location and a suite of value-added services, including managed hybrid cloud services through direct private connection to leading public clouds, managed network services, and, where required, the resale of public cloud services. The Company has a 24-year track record of service delivery, successfully fulfilling the requirements of some of the largest and most demanding customers for outsourced data center services in China. The Company’s customer base consists predominantly of hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, and large domestic private sector and multinational corporations. The Company also holds a non-controlling 35.6% equity interest in DayOne Data Centers Limited which develops and operates data centers in International markets. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “aim,” “anticipate,” “believe,” “continue,” “estimate,” “expect,” “future,” “guidance,” “intend,” “is/are likely to,” “may,” “ongoing,” “plan,” “potential,” “target,” “will,” and similar statements. Among other things, statements that are not historical facts, including statements about GDS Holdings’ beliefs and expectations regarding the growth of its businesses and its revenue for the full fiscal year, the business outlook and quotations from management in this announcement, as well as GDS Holdings’ strategic and operational plans, are or contain forward-looking statements. GDS Holdings may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the “SEC”) on Forms 20-F and 6-K, in its current, interim and annual reports to shareholders, in announcements, circulars or other publications made on the website of the Stock Exchange of Hong Kong Limited (the “Hong Kong Stock Exchange”), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause GDS Holdings’ actual results or financial performance to differ materially from those contained in any forward-looking statement, including but not limited to the following: GDS Holdings’ goals and strategies; GDS Holdings’ future business development, financial condition and results of operations; the expected growth of the market for high-performance data centers, data center solutions and related services in China and regions in which GDS’ major equity investees operate, such as South East Asia; GDS Holdings’ expectations regarding demand for and market acceptance of its high-performance data centers, data center solutions and related services; GDS Holdings’ expectations regarding building, strengthening and maintaining its relationships with new and existing customers; the results of operations, growth prospects, financial condition, regulatory environment, competitive landscape and other uncertainties associated with the business and operations of our significant equity investee DayOne; the continued adoption of cloud computing and cloud service providers in China and other major markets that may impact the results of our equity investees, such as South East Asia; risks and uncertainties associated with increased investments in GDS Holdings’ business and new data center initiatives; risks and uncertainties associated with strategic acquisitions and investments; GDS Holdings’ ability to maintain or grow its revenue or business; fluctuations in GDS Holdings’ operating results; changes in laws, regulations and regulatory environment that affect GDS Holdings’ business operations and those of its major equity investees; competition in GDS Holdings’ industry in China and in markets that affect the business of our major equity investees, such as South East Asia; security breaches; power outages; and fluctuations in general economic and business conditions in China and globally, and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks, uncertainties or factors is included in GDS Holdings’ filings with the SEC, including its annual report on Form 20-F, and with the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release and are based on assumptions that GDS Holdings believes to be reasonable as of such date, and GDS Holdings does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: GDS Holdings LimitedLaura ChenPhone: +86 (21) 2029-2203Email: ir@gds-services.com Piacente Financial CommunicationsRoss WarnerPhone: +86 (10) 6508-0677Email: GDS@tpg-ir.com Brandi PiacentePhone: +1 (212) 481-2050Email: GDS@tpg-ir.com GDS Holdings Limited GDS HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) As of December 31, 2023 As of December 31, 2024 RMBRMBUS$ Assets Current assets Cash7,354,809 7,867,659 1,077,865 Accounts receivable, net of allowance for credit losses2,493,059 3,021,956 414,006 Value-added-tax (“VAT”) recoverable214,385 240,506 32,949 Prepaid expenses and other current assets483,833 482,950 66,164 Current assets of discontinued operations437,567 0 0 Total current assets10,983,653 11,613,071 1,590,984 Non-current assets Long-term investments in equity investees7,298 7,544,555 1,033,600 Property and equipment, net40,098,423 40,204,133 5,507,944 Prepaid land use rights, net22,388 21,774 2,983 Operating lease right-of-use assets5,310,723 5,193,408 711,494 Goodwill and intangible assets, net6,574,669 6,367,493 872,343 Other non-current assets2,538,542 2,704,194 370,473 Non-current assets of discontinued operations8,910,994 0 0 Total non-current assets63,463,037 62,035,557 8,498,837 Total assets74,446,690 73,648,628 10,089,821 Liabilities, Mezzanine Equity and Equity Current liabilities Short-term borrowings and current portion of long-term borrowings2,582,350 4,341,649 594,803 Convertible bonds payable, current0 575 79 Accounts payable2,749,896 2,593,305 355,281 Accrued expenses and other payables1,265,259 1,389,072 190,302 Operating lease liabilities, current132,811 117,345 16,076 Finance lease and other financing obligations, current547,847 636,152 87,152 Current liabilities of discontinued operations1,027,313 0 0 Total current liabilities8,305,476 9,078,098 1,243,693 Non-current liabilities Long-term borrowings, excluding current portion23,088,055 21,905,985 3,001,108 Convertible bonds payable, non-current8,434,766 8,576,583 1,174,987 Operating lease liabilities, non-current1,344,264 1,279,726 175,322 Finance lease and other financing obligations, non-current7,894,185 7,601,651 1,041,422 Other long-term liabilities1,586,012 1,537,952 210,699 Non-current liabilities of discontinued operations3,670,129 0 0 Total non-current liabilities46,017,411 40,901,897 5,603,538 Total liabilities54,322,887 49,979,995 6,847,231 Mezzanine equity Redeemable preferred shares1,064,766 1,080,656 148,049 Total mezzanine equity1,064,766 1,080,656 148,049 GDS Holdings Limited shareholders' equity Ordinary shares516 527 72 Additional paid-in capital29,337,095 29,596,268 4,054,672 Accumulated other comprehensive loss(974,393)(1,094,377)(149,929) Accumulated deficit(9,469,758)(6,044,372)(828,075) Total GDS Holdings Limited shareholders' equity18,893,460 22,458,046 3,076,740 Non-controlling interests165,577 129,931 17,801 Total equity19,059,037 22,587,977 3,094,541 Total liabilities, mezzanine equity and equity74,446,690 73,648,628 10,089,821 GDS HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")except for number of shares and per share data) Three months ended Year ended December 31, 2023September 30, 2024December 31, 2024 December 31, 2023December 31, 2024 RMBRMBRMBUS$ RMBRMBUS$ Net revenue Service revenue2,465,283 2,619,578 2,690,482 368,595 9,781,884 10,321,888 1,414,093 Equipment sales0 0 180 25 564 180 25 Total net revenue2,465,283 2,619,578 2,690,662 368,620 9,782,448 10,322,068 1,414,118 Cost of revenue(2,032,352)(2,061,995)(2,112,545)(289,417) (7,831,222)(8,099,439)(1,109,619)Gross profit432,931 557,583 578,117 79,203 1,951,226 2,222,629 304,499 Operating expenses Selling and marketing expenses(34,050)(32,356)(30,571)(4,188) (140,890)(116,440)(15,952) General and administrative expenses(246,274)(211,392)(259,048)(35,490) (965,982)(917,877)(125,748) Research and development expenses(12,800)(8,588)(6,862)(940) (38,159)(36,319)(4,976) Impairment losses of long-lived assets(3,013,416)0 0 0 (3,013,416)0 0 (Loss) income from continuing operations(2,873,609)305,247 281,636 38,585 (2,207,221)1,151,993 157,823 Other income (expenses): Net interest expenses(450,700)(463,327)(458,745)(62,848) (1,842,529)(1,834,851)(251,374) Foreign currency exchange (loss) gain, net(5,991)586 8,117 1,112 (1,573)18,942 2,595 Others, net30,347 5,001 29,727 4,072 109,729 49,057 6,721 Loss from continuing operations before income taxes(3,299,953)(152,493)(139,265)(19,079) (3,941,594)(614,859)(84,235)Income tax benefits (expenses)225,342 347 (34,144)(4,678) 15,577 (156,053)(21,379)Net loss from continuing operations(3,074,611)(152,146)(173,409)(23,757) (3,926,017)(770,912)(105,614) Discontinued operations Loss from operations of discontinued operations, net of income taxes(90,033)(78,963)(190,491)(26,097) (359,376)(400,796)(54,909) Gain on deconsolidation of subsidiaries0 0 4,475,539 613,146 0 4,475,539 613,146 (Loss) income from discontinued operations(90,033)(78,963)4,285,048 587,049 (359,376)4,074,743 558,237 Net (loss) income(3,164,644)(231,109)4,111,639 563,292 (4,285,393)3,303,831 452,623 Net loss from continuing operations(3,074,611)(152,146)(173,409)(23,757) (3,926,017)(770,912)(105,614)Net income from continuing operations attributable to non-controlling interests(1,676)(1,755)(1,268)(174) (5,026)(6,209)(851)Net loss from continuing operations attributable to GDS Holdings Limited shareholders(3,076,287)(153,901)(174,677)(23,931) (3,931,043)(777,121)(106,465) (Loss) income from discontinued operations(90,033)(78,963)4,285,048 587,049 (359,376)4,074,743 558,237 Net loss from discontinued operations attributable to non-controlling interests366 5,092 3,373 462 366 7,317 1,003 Net loss from discontinued operations attributable to redeemable non-controlling interests0 35,432 75,550 10,350 0 120,447 16,501 Net (loss) income from discontinued operations attributable to GDS Holdings Limited shareholders(89,667)(38,439)4,363,971 597,861 (359,010)4,202,507 575,741 Net (loss) income attributable to GDS Holdings Limited shareholders(3,165,954)(192,340)4,189,294 573,930 (4,290,053)3,425,386 469,276 Cumulative dividend on redeemable preferred shares(13,679)(13,618)(13,679)(1,874) (53,625)(54,232)(7,430)Net (loss) income available to GDS Holdings Limited ordinary shareholders(3,179,633)(205,958)4,175,615 572,056 (4,343,678)3,371,154 461,846 (Loss) income per ordinary share Basic and diluted(2.16)(0.14)2.81 0.39 (2.96)2.29 0.31 Weighted average number of ordinary share outstanding Basic and diluted1,469,982,015 1,476,130,132 1,484,083,188 1,484,083,188 1,468,187,956 1,475,079,754 1,475,079,754 GDS HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended Year ended December 31, 2023September 30, 2024December 31, 2024 December 31, 2023December 31, 2024 RMBRMBRMBUS$ RMBRMBUS$ Net (loss) income(3,164,644)(231,109)4,111,639 563,292 (4,285,393)3,303,831 452,623 Foreign currency translation adjustments, net of nil tax117,674 538,739 (391,639)(53,654) (125,118)74,741 10,239 Defined benefit plan, net of nil tax0 0 (41)(6) 0 (41)(6)Amounts reclassified from accumulated other comprehensive loss0 0 (96,957)(13,283) 0 (96,957)(13,283)Comprehensive (loss) income(3,046,970)307,630 3,623,002 496,349 (4,410,511)3,281,574 449,573 Comprehensive (income) loss attributable to non-controlling interests(1,678)(5,287)6,631 908 (5,575)(1,076)(147)Comprehensive (income) loss attributable to redeemable non-controlling interests0 (107,365)126,721 17,361 0 24,904 3,412 Comprehensive (loss) income attributable to GDS Holdings Limited shareholders(3,048,648)194,978 3,756,354 514,618 (4,416,086)3,305,402 452,838 GDS HOLDINGS LIMITEDUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) Three months ended Year ended December31, 2023September30, 2024December 31, 2024 December 31,2023December 31, 2024 RMBRMBRMBUS$ RMBRMBUS$ Net (loss) income(3,164,644)(231,109)4,111,639 563,292 (4,285,393)3,303,831 452,623 Net loss (income) from discontinued operations90,033 78,963 (4,285,048)(587,049) 359,376 (4,074,743)(558,237)Depreciation and amortization865,485 803,535 865,896 118,627 3,368,474 3,243,004 444,290 Amortization of debt issuance cost and debt discount34,010 33,467 18,290 2,506 140,625 110,724 15,169 Share-based compensation expense80,765 61,194 82,965 11,366 336,616 296,487 40,619 Impairment losses of long-lived assets3,013,416 0 0 0 3,013,416 0 0 Others(202,637)(63,810)(29,703)(4,069) (187,844)(115,941)(15,884)Changes in operating assets and liabilities326,171 (42,362)315,821 43,267 (385,994)(543,700)(74,487)Net cash provided by operating activities from continuing operations1,042,599 639,878 1,079,860 147,940 2,359,276 2,219,662 304,093 Net cash (used in) provided by operating activities from discontinued operations(93,209)1,636 (150,554 )(20,626 ) (294,019)(281,297 )(38,538 )Net cash provided by operating activities949,390 641,514 929,306 127,314 2,065,257 1,938,365 265,555 Purchase of property and equipment and land use rights(282,591)(788,123)(381,382)(52,249) (3,175,406)(2,965,384)(406,256)(Payments) receipts related to acquisitions and investments(396,051)0 27,000 3,699 (1,339,639)1,125,023 154,128 Net cash used in investing activities from continuing operations(678,642)(788,123)(354,382)(48,550) (4,515,045)(1,840,361)(252,128)Net cash used in investing activities from discontinued operations(784,990)(2,110,682)(3,011,040)(412,511) (2,827,863)(6,920,177)(948,060)Net cash used in investing activities(1,463,632)(2,898,805)(3,365,422)(461,061) (7,342,908)(8,760,538)(1,200,188) Net cash (used in) provided by financing activities from continuing operations(271,778)(392,325)(612,447)(83,905) 1,266,936 174,295 23,878 Net cash provided by financing activities from discontinued operations958,799 2,334,112 11,441,448 1,567,472 2,892,824 16,883,042 2,312,967 Net cash provided by financing activities687,021 1,941,787 10,829,001 1,483,567 4,159,760 17,057,337 2,336,845 Effect of exchange rate changes on cash and restricted cash4,705 (28,109)(6,457)(885) 154,302 (13,592)(1,862) Net increase (decrease) of cash and restricted cash177,484 (343,613)8,386,428 1,148,935 (963,589)10,221,572 1,400,350 Cash and restricted cash at beginning of period7,740,395 10,096,689 9,753,076 1,336,166 8,882,066 7,917,932 1,084,752 Reclassification as assets of disposal group classified as held for sale53 0 0 0 (545)0 0 Cash and restricted cash at end of period7,917,932 9,753,076 18,139,504 2,485,101 7,917,932 18,139,504 2,485,102 Less: Cash and restricted cash of discontinued operations at end of period or deconsolidation date(420,610)(1,760,719)(10,045,974)(1,376,293) (420,610)(10,045,974)(1,376,293)Cash and restricted cash of continuing operations at end of period7,497,322 7,992,357 8,093,530 1,108,808 7,497,322 8,093,530 1,108,809 GDS HOLDINGS LIMITEDRECONCILIATIONS OF GAAP AND NON-GAAP RESULTS(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")except for percentage data) Three months ended Year ended December 31,2023September 30,2024December 31, 2024 December 31, 2023December 31, 2024 RMBRMBRMBUS$ RMBRMBUS$ Gross profit432,931 557,583 578,117 79,203 1,951,226 2,222,629 304,499 Depreciation and amortization775,122 731,630 786,869 107,801 2,974,546 2,947,444 403,798 Operating lease cost relating to prepaid land use rights10,615 11,536 11,996 1,643 38,792 44,872 6,147 Accretion expenses for asset retirement costs1,588 1,730 1,709 234 6,599 6,827 935 Share-based compensation expenses29,066 20,549 18,002 2,466 116,467 92,402 12,659 Adjusted GP1,249,322 1,323,028 1,396,693 191,347 5,087,630 5,314,174 728,038 Adjusted GP margin50.7% 50.5% 51.9% 51.9% 52.0% 51.5% 51.5% GDS HOLDINGS LIMITEDRECONCILIATIONS OF GAAP AND NON-GAAP RESULTS(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")except for percentage data) Three months ended Year ended December 31, 2023September 30, 2024December 31, 2024 December 31, 2023December 31, 2024 RMBRMBRMBUS$ RMBRMBUS$ Net (loss) income(3,164,644)(231,109)4,111,639 563,292 (4,285,393)3,303,831 452,623 Loss (income) from discontinued operations90,033 78,963 (4,285,048)(587,049) 359,376 (4,074,743)(558,237)Net loss from continuing operations(3,074,611)(152,146)(173,409)(23,757) (3,926,017)(770,912)(105,614)Net interest expenses450,700 463,327 458,745 62,848 1,842,529 1,834,851 251,374 Income tax (benefits) expenses(225,342)(347)34,144 4,678 (15,577)156,053 21,379 Depreciation and amortization865,485 803,535 865,896 118,627 3,368,474 3,243,004 444,290 Operating lease cost relating to prepaid land use rights27,199 27,602 27,609 3,782 106,964 110,126 15,087 Accretion expenses for asset retirement costs1,588 1,730 1,709 234 6,599 6,827 935 Share-based compensation expenses80,765 61,194 82,965 11,366 336,616 296,487 40,619 Impairment losses of long-lived assets3,013,416 0 0 0 3,013,416 0 0 Adjusted EBITDA1,139,200 1,204,895 1,297,659 177,778 4,733,004 4,876,436 668,070 Adjusted EBITDA margin46.2% 46.0% 48.2% 48.2% 48.4% 47.2% 47.2% Additional Information for Discontinued Operations(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")) As of December31, 2023 As of December 31, 2024 RMBRMBUS$Property and equipment, net7,401,07116,646,1912,280,519Cash355,9029,930,9151,360,530Gross debt5,169,734 (1)10,417,6471,427,212 Note: Including amounts due to GDSH. Additional Information for Discontinued Operations Cont’d(Amount in thousands of Renminbi ("RMB") and US dollars ("US$")except for percentage data) Three months ended Year ended December 31, 2023September 30, 2024December 31, 2024 December 31, 2023December 31, 2024 RMBRMBRMBUS$ RMBRMBUS$ Net revenue102,853 363,209 443,413 60,747 175,737 1,262,063 172,902 Cost of revenue(90,862) (252,211) (290,131) (39,748) (194,570) (859,254) (117,717) Operating expenses(66,214) (88,776) (150,543) (20,624) (233,249) (400,336) (54,846) (Loss) income from operations(54,223) 22,222 2,739 375 (252,082) 2,473 339 Other expenses, net(35,020) (110,846) (126,457) (17,324) (106,494) (346,145) (47,422) Loss from operations of discontinued operations before income taxes(89,243) (88,624) (123,718) (16,949) (358,576) (343,672) (47,083) Income tax (expenses) benefits(790) 9,661 (66,773) (9,148) (800) (57,124) (7,826) Loss from operations of discontinued operations, net of income taxes(90,033) (78,963) (190,491) (26,097) (359,376) (400,796) (54,909) Net interest expenses42,060 76,069 102,991 14,110 107,286 280,652 38,449 Income tax expenses (benefits)790 (9,661) 66,773 9,148 800 57,124 7,826 Depreciation and amortization50,650 107,739 128,662 17,627 151,271 393,735 53,941 Operating lease cost relating to prepaid land use rights295 0 1,778 244 1,290 1,782 244 Accretion expenses for asset retirement costs52 0 (1) 0 206 (211) (29) Adjusted EBITDA3,814 95,184 109,712 15,032 (98,523) 332,286 45,522 Adjusted EBITDA margin3.7% 26.2% 24.7% 24.7% (56.1)% 26.3% 26.3% Net cash (used in) provided by operating activities(93,209) 1,636 (150,554) (20,626) (294,019) (281,297) (38,538) Net cash used in investing activities(784,990) (2,110,682) (3,011,040) (412,511) (2,827,863) (6,920,177) (948,060) Net cash provided by financing activities958,799 2,334,112 11,441,448 1,567,472 2,892,824 16,883,042 2,312,967

GDS Holdings Limited Reports Fourth Quarter and Full Year 2024 Results

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