GDS Holdings Ltd. Sponsored ADR Class A (GDS.US): Q3 performance showed steady and high-quality growth, entering a new period of AI-driven growth.

On November 19th, China's leading high-performance data center operator and service provider, GDS Holdings Ltd. Sponsored ADR Class A (GDS.US), released its third-quarter financial report for 2025. With the dual drivers of rapid growth in artificial intelligence infrastructure demand and the policy dividends of the domestic "15th Five-Year Plan," GDS Holdings Ltd. Sponsored ADR Class A has demonstrated solid operating fundamentals and strong strategic execution, further consolidating its leading position in the digital economy infrastructure sector. Revenue grew steadily by 10.2%, with ample cash flow support for future development. The financial report shows that in the third quarter, GDS Holdings Ltd. Sponsored ADR Class A achieved a net income of 28.871 billion yuan, a year-on-year increase of 10.2%. On the profit side, the company achieved a net profit of 7.286 billion yuan, with a net profit margin of 25.2%; adjusted EBITDA was 13.422 billion yuan, an 11.4% increase year-on-year, and the adjusted EBITDA margin increased to 46.5%. On the cash flow side, GDS Holdings Ltd. Sponsored ADR Class A has shown strong financial resilience and risk resistance. In the third quarter, the company obtained a net cash benefit of approximately 2.248 billion yuan through the issuance of the first batch of national data center public REITs, effectively supplementing working capital and providing sufficient funding guarantee for future business expansion, technological research and development, and AI-related infrastructure construction. Based on the positive development prospects, GDS Holdings Ltd. Sponsored ADR Class A maintained its guidance for total revenue of 112.9- 115.9 billion yuan and adjusted EBITDA of 51.9-53.9 billion yuan for 2025 in the financial report. AI demand has become a core growth engine with high order visibility. The artificial intelligence wave is driving profound changes in the data center demand structure. With the strategic promotion of self-sufficiency in chips in the "15th Five-Year Plan" and the continuous breakthrough of domestic chip enterprises in performance and capacity, the AI infrastructure industry is facing growth opportunities. Huang Wei, Chairman and CEO of GDS Holdings Ltd. Sponsored ADR Class A, pointed out in a conference call that the domestic technology industry has reached a critical turning point, with industry giants investing unprecedented amounts in AI infrastructure. This marks the strong recovery of the data center industry, with all major customers of the company fully engaged in this investment frenzy, with capital expenditure plans reaching billions of dollars, and customers already discussing new demands in the multi-megawatt range. In terms of business performance, AI demand has become an important growth engine for GDS Holdings Ltd. Sponsored ADR Class A. In the first three quarters of 2025, the total new order volume for the company's data center business has reached 240 megawatts, with an expected total annual order volume of close to 300 megawatts, a significant increase from previous years. Huang Wei stated that most of the orders in 2025 are related to the AI field and are mainly focused on first-tier market inference applications or "inference + training" combination solutions. Huang Wei emphasized that the company has made sufficient strategic preparations to seize the growing demand in the AI field, viewing artificial intelligence as an important catalyst for long-term business growth. The company has already completed strategic reserves, securing approximately 900 megawatts of power supply locations in first-tier cities and surrounding areas that are highly suited to AI inference scene requirements, with more land acquisition work in progress. In addition to the forward-looking layout of asset securitization, significant achievements in the ESG field by GDS Holdings Ltd. Sponsored ADR Class A also deeply serve the needs of AI business, becoming a key capability supporting AI order delivery, rather than just a "bonus." The company's ESG report for 2024 released in the third quarter shows that by 2024, the company's renewable energy utilization ratio has increased to 40%, 42 data centers have obtained green building certification, and the average PUE has been optimized to the industry-leading level of 1.24. The low PUE value of 1.24 can effectively support the high power density operation requirements of AI data centers. The 40% renewable energy utilization ratio accurately meets the low-carbon procurement needs of AI customers, becoming an important competitive advantage for GDS Holdings Ltd. Sponsored ADR Class A in securing high-value AI orders. In terms of ESG ratings, MSCI's rating has been upgraded to A, CDP's first-time rating received a B, and through the Science-Based Targets initiative, the company recently validated its carbon emission reduction target, becoming the world's first data center enterprise to receive a "Net Zero Assessment" NZ-2 rating from Moody's CorporationNZ. These ESG achievements not only effectively mitigate policy risks, but also hedge against electricity price fluctuations through green power purchase agreements, directly reducing operating costs, and forming a positive response to the requirements of REITs asset injections. Looking ahead, the AI cycle has arrived, with both resources and capital driving growth. The third-quarter financial report for 2025 and the strategic interpretation by the management jointly confirm that GDS Holdings Ltd. Sponsored ADR Class A has entered a new growth cycle driven by AI. Looking ahead, as the multi-megawatt AI demand gradually lands, the company's reserves of 900 megawatts of power supply sites and layout around first-tier cities will continue to release value; the advancement of the REITs asset injection plan will further optimize the capital structure and support the scaled expansion of AI-related data centers. The company's valuation system will also evolve into an "AI computing infrastructure service provider." In short, as a core infrastructure service provider in the digital transformation wave, GDS Holdings Ltd. Sponsored ADR Class A will continue to integrate technology, capital, and location resources, leading the release of enterprise value in a new cycle of industry growth driven by AI, and supporting the high-quality development of China's digital economy.