Hello, ladies and gentlemen. Thank you for standing by, and welcome to the GDS Holdings Limited fourth quarter and full year 2018 conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Laura Chen, head of investor relations for the company. Please go ahead, Laura.
Thank you, Helen. Hello, everyone. Welcome to the 4 Q18 and the full year 2018 earnings conference call of GDS Holdings Limited. The company's results were issued via Newswire services earlier today and are posted online. A summary presentation, which we'll refer to during this conference call, can be viewed and downloaded from our IR website at investors.gdsservices.com. Leading today's call is Mr. William Huang, GDS founder, chairman, and CEO, who will provide an overview of our business strategy and performance. Mr. Dan Newman, GDS CFO, will then review the financial and operating results. Before we continue, please note that today's discussion will contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements involve inherent risks and uncertainties. As such, the company's results may be materially different from the views expressed today.
Further information regarding these and other risks and uncertainties is included in the company's prospectus as filed with U.S. SEC. The company does not assume any obligations to update any forward-looking statements except as required under applicable law. Please also note that GDS earnings press release and this conference call include discussions of unaudited GAAP financial information, as well as unaudited non-GAAP financial measures. GDS press release contains a reconciliation of the unaudited non-GAAP measures to the unaudited most directly comparable GAAP measures. I will now turn the call over to GDS founder, chairman, and CEO, William Huang. Please go ahead, William.
Thank you, Laura. Hello, everyone. This is William. Thank you for joining us on today's call. 2018 was an amazing year for GDS. We achieved outstanding results in terms of new business, resource development, and financial performance. We see a sustained high level of demand for data center capacity in China, and we are clearly best positioned to capture this opportunity. Let's start with our sales achievement. In 2018, we signed our customer for over 81,000 sq m of net additional area committed, or over 180 MW of IT power capacity. Almost double what we did the year before. This may be the highest ever reported by a data center company. To support this level of sales, we scaled up our resource development, adding around 100,000 sq m of total capacity.
We increased our data center count from 20 at the beginning of the year to 35 at the year end. We invested nearly $700 million in CapEx, compared with the $300 million in 2017. The flow-through to our financial results was impressive. Our growth accelerated, hitting over 70% for revenue and over 100% for adjusted EBITDA year-over-year. In the last quarter, our adjusted EBITDA margin hit 40%, almost 10 percentage points higher than in 4 Q17. Meanwhile, we maintained our disciplined approach to capital management. With every project fully funded, over the year, we secured over $1 billion of funding raised. Today, I'm excited to announce that we have secured a $150 million strategic investment from Ping An, which I will talk about later. Turning to slide five. We ended 2018 with another quarter of strong sales growth.
In fact, 4 Q18 was a record for us. 22,000 square meters of net add, all organic, all in tier 1 markets. How did we achieve this staggering sales performance? The growth of our business is highly geared to key verticals such as cloud, AI, and fintech. These verticals have been growing at high rates and will continue to do so. During the first wave of growth, we succeeded in establishing very strategic relationships with the top tier of cloud and internet customers in China. Cloud went from zero to 70% of our area committed in three years. We continue to deepen these customers' relationships. They continue to generate significant new business. In 2017, our top three customers contributed 35,000 square meters to our new bookings. In 2018, the same three contributed 47,000 square meters.
Building on this base, we targeted new strategic customers, companies which are reaching an inflection point in their business. This yielded results faster than we expected. New strategic customers such as JD, Kingsoft, NetEase, and Ping An Technology contributed 28,000 square meters or 35% to our new bookings in 2018. Looking forward, I feel confident that we will be able to sustain our current sales momentum. Our strategic customer relationships give us bottom-up visibility into new demand. We are now tapping into a large and more diversified group of hyperscale customers, which includes every significant domestic and global cloud service provider in China. The digital economy is now growing. Chinese government policies are promoting growth. New technologies are coming, which can be demand multiplied. China is forecasted to spend around RMB 200 billion on 5G CapEx up to 2025.
This can enable a new wave of ultra-low latency data, which makes our data centers even more in demand. Let's turn to slide seven, resource progress. Turning to resource on slide seven. We focus on tier 1 markets where demand is concentrated and align our resource development around the growth plans of our customers. This enable us to maintain exceptionally high commitment rates. In 2018, we started 15 new data centers with a total capacity of 100,000 square meters and brought 10 new data centers into service, adding 59,000 square meters. We probably have one of the largest construction programs in the world. We ended the year with a 48% pre-commitment rate for area under construction, and a 95% for area in service. In 4 Q18 alone, we started five new data centers. I would like to highlight the two in Kunshan.
This is a site 45 km from the center of Shanghai, where we own the land. The project is our largest to-date greenfield project, and 100% pre-committed. Securing real estate and power capacity in tier 1 market is very challenging. As the scale increases, so does the challenge. At the end of last year, we had 79,000 sq m held for future development in tier 1 markets. This is enough for about one year new business at current run rate. Despite the challenges, we have successfully added new capacity in downtown area. For example, during 2018, we were able to increase our capacity in Beijing by over three times. In order to strengthen our development pipeline and maintain our resource advantage, we have started to acquire the land in strategic location on the edge of the big cities.
This is a long and complicated process, as it involves identifying sites which work for our customers, have the right telecom network connectivities, sufficient developable area and power capacity, and where the local government is supportive. Availability of land and power is still a major barrier. In January 2019, we completed acquisition of a strategic site in Guangzhou, which can support 34,000 sq m of data center capacity. We are also at an advanced stage with strategic sites in Changshu, near Shanghai, Langfang, near Beijing, Chengdu, and Chongqing, which would be a new tier 1 market for us. Within the next few quarters, we expect to have locked up at least three years' supply, and further strengthens our resource advantage. Finally, we are seeing quite a few attractive M&A opportunities. These are asset deals which could add capacity in key locations and shorten our time to market.
We are currently evaluating several targets. We are highly selective, and we will only move forward if the deals are strategic and the value accretive. Let's turn it to slide 11. GDS today is in the strongest position ever. We have the largest market share in the fastest-growing market in the world, fantastic customer relationships, and the proven ability to execute in a super real way. Our team has demonstrated for many years that it can set a big goal and exceeded them. Our growth has accelerated and underpinned by a strong, secure trend. With that as a strategic backdrop, we will continue to build on our competitive advantages and further increase gap between ourselves and other players. My priorities for 2019 are clear.
Enhance resource supply in Tier 1 markets, both organically and by acquisitions, build on our strategic customer relationships, and reduce our unit development costs and maintain investment returns. Let's move slide 12. Before I hand over to Dan, I'd like to say a few words about Ping An's strategic investment, which we have just announced. Ping An has been an investor in GDS for the past six years, and we are honored to count them as one of our top customers. Ping An is the third-largest non-SOE company in China by market cap and finance and technology powerhouse. Ping An is the market leader in key digital verticals such as fintech, healthcare, auto services, real estate, and smart cities. Their platforms include the largest online finance marketplace, insurance provider, and healthcare ecosystem. GDS and Ping An are committed to working together to realize synergies in technology, real estate, and financing.
We are proud of the trusted relationship we have built with Ping An and are excited to work more closely together in future. With that, I will hand over to Dan for the financial and operating review.
Thank you, William. Starting on slide 16, where we strip out the contribution from equipment sales and the effect of FX changes. 2018 finished strongly, and I'm pleased to say that we beat our revised guidance for revenue and adjusted EBITDA. In 4Q18, our service revenue grew by 10.2%. Underlying adjusted NOI grew by 13%, and underlying adjusted EBITDA grew by 15.9% in consecutive quarters. Our underlying adjusted EBITDA margin hit 40% in the last quarter. For the whole year, our reported adjusted EBITDA margin increased to 37.5% compared to 31.7% in FY 2017. Turning to slide 17. The main driver of revenue growth was the increase in area utilized with over 7,600 sq m added in the fourth quarter and nearly 47,000 sq m added over the whole year.
Monthly service revenue or MSR per sq m declined slightly in 4Q18, and we expect that it will continue to decline by around 5% over the course of FY 2019. The MSR trend is tracking the reduction in our unit CapEx cost, and it is our strategy to share this benefit with our customers while maintaining our returns. As shown on slide 18, our profit margins are on an upward trend. At the data center level, our adjusted NOI margin was nearly 50% in 4Q18. As illustrated on slide 19, 58% of our portfolio is now stabilized, up from 45% this time last year. This shift has been a major contributor to the NOI margin increase. As shown on slide 20, our SG&A was just over 10% of service revenue in 4Q18. We expanded our headcount by 20% last year to gear up for our accelerated growth.
We expect to realize significant further operating leverage over our central costs and target SG&A to be around 8% by the end of FY 2019. Turning to our CapEx on slide 21. 4Q CapEx increased to RMB 1.7 billion, including nearly RMB 700 million related to the Hong Kong land acquisition. For the full year, our CapEx totaled around RMB 4.7 billion or $690 million, which was higher than we guided due to the accelerated delivery of a project in Beijing and the initiation of five new projects in the last quarter. For the data centers currently under construction, the unit CapEx is RMB 59,000 per sq m, excluding the real estate portion. For comparison, the unit CapEx for everything we have completed so far is RMB 68,000 per sq m. With regard to financing on slide 22, during FY 2018, we obtained RMB 3.8 billion, or $550 million of debt facilities, including refinancing.
We have established an excellent track record for project financing and in current conditions are getting the best terms ever. On the equity side, we just announced a convertible preferred share issue to Ping An. The key terms of which are summarized on slide 23. It's a $150 million investment with 5% annual dividend payable in cash or kind at our option, and a conversion price of $35.60. We can force conversion after year three if our share price goes up above 150% of the conversion price, i.e., $53.40. The instrument is treated as equity for accounting purposes. On completion, it will take our pro forma year-end 2018 net debt to last quarter annualized adjusted EBITDA multiple down from 8 to 7.2 times. As William mentioned, we feel really good about our market position, customer franchise, resource pipeline, and opportunities in front of us. Financing is the final ingredient.
You may have seen our announcement regarding the launch of an ADR offering. Since we are in process, I cannot comment on the offering on this call. However, I hope you can see that today we are putting in place the capital we need to position GDS strongly for the next phase of growth. Turning to slide 24. At the end of 4Q 2018, our backlog had increased again to over 75,000 sq m. We currently have around 108,000 sq m, which is revenue generating. The backlog therefore implies that we can grow our revenue-generating space by 70% without signing any new customer contracts. Finally, on page 25. We base our revenue and adjusted EBITDA guidance on the installed base, the project delivery schedule, and the expected customer move-in rate.
We start from a solid base, as quarterly churn was only 0.9% last year, and less than 7% of our total area committed is due for renewal this year. We also have a high degree of visibility from our substantial backlog. With that said, we expect full year 2019 total revenue to be in the range of RMB 3.9 billion-RMB 4.1 billion, implying a growth rate for total revenue of over 43% at the midpoint of the range. We expect adjusted EBITDA to be in the range of RMB 1.64 billion-RMB 1.7 billion, implying year-on-year growth of close to 60% at the midpoint of the range. Our revenue and adjusted EBITDA guidance implies an adjusted EBITDA margin of 41.7% for FY 2019, which would be four percentage points higher than FY 2018 using the midpoint guidance numbers. We also expect CapEx of RMB 4.5 billion-RMB 5 billion.
Included in this guidance is a budget of around RMB 500 million for land acquisitions. With that, I'll end the formal part of our presentation and would now like to open the call to questions. Kevin?
Thank you, ladies and gentlemen. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel the request, please press the pound or hash key. Once again, ladies and gentlemen, to ask a telephone question, it is star one and wait for your name to be announced. Thank you very much. Once again, ladies and gentlemen, to ask a telephone question, it is star one. There might be a slight pause as questions queue. Thank you very much. Our first question is from Jon Atkin from RBC. Please ask your question, Jon.
Yes. Thanks very much. I had a question about build costs. You talked about kind of the reduction in the cost per square meter. If you were to normalize that for power and just think about some of the design parameters around your data centers and resiliency levels and so forth, is there further improvement that you think you can make in CapEx spends per unit of capacity? My second question is just in terms of the scale of the business and as you go to more square meters sold and commissions over the next year, are you able to accommodate numbers significantly greater than 80,000 in terms of your ability to construct quickly and accommodate demand if it were to further increase? Thank you.
Hi, Jon. I'll start by answering.
Hi, Jon.
Sorry, Jon, I'll start by answering on build costs and then let William address how we are reducing it. Just in terms of numbers, I mentioned that what we have under construction right now has an average unit cost of RMB 59,000 per square meter. We're excluding a couple of thousand RMB because certain of the projects have some real estate portion. We normalize for that. It's RMB 59,000 per square meter. We're building, let's say, on average, around two kilowatts per square meter or slightly higher. You can see on a per kilowatt basis, that would imply around RMB 29,000 or RMB 30,000 per kilowatt. To give you an idea of where it can go, we have done projects where the build cost has been RMB 25,000 or RMB 26,000 per square meter, and those are projects in tier 1 markets.
The projects we did in remote location were another quantum below that level. Although in that case, what we're really looking at is a different kind of product with a different design with lower redundancy. I think all of this gives you an idea of what can be achieved over time. William, do you want to add to that?
Yeah. I think the product is now very diversified based on the current fast move market. We are able to introduce different architecture to our different customer. For the multi-tenant type of product, it's almost standardized. We finalized the standardization. For the build-to-suit product, we try to introduce and lead our customer, accept suitable architecture for them. This is number 1. To reduce the cost. We have the various way to reduce the cost. We also share some cost saving for our customer. On the other hand, we are pretty likely leverage our current scale. As I mentioned, we are maybe most largest data center developer in the world. We do have the ability to well manage our supply chain, and this will let us have the huge space to improve the cost.
Yeah. On the final part of your question, whether we have the capacity to exceed 80,000 square meters, of course, assuming the demand is there and that we can capture the orders. Jon, that's certainly our objective. On the resource side, we talk about significantly increasing the amount of resource that we have secured up to three years supply in each tier 1 market. Within a few quarters, we aim to be there. The holding cost of that resource is very low. It's insignificant. What it does do is give us the ability to respond to whatever level of demand there is. If it's higher, we can accelerate. The other element, of course, is whether we have the financial capacity. That's what we're trying to put in place today.
The ability to have a fully funded two-year business plan and the flexibility to do more if the opportunity is there.
Jon, I would like to say, based on our current resource plan and our funding plan, you will see we have the ambition to do more, right? Every time we try to manage the expectation properly.
Thank you. Then, in addition, as you think about where you want to add new capacity, I'm interested in your views on satellite markets, Kunshan is an interesting example because that's showing signs of life recently, from both you and I think maybe even some others. That's been facilitated by improved fiber connectivity across provinces. So are there analogous examples that you see in other parts of China that might lead to development opportunities in some new markets?
Jon, firstly, just from a definition point of view, because there can be a lot of confusion about this. Satellite markets are just part of the tier 1 markets. They may be the periphery of the tier 1 markets, don't let anyone think we're talking about something else, tier 2 market or something. We're just talking about sites which are on the periphery of tier 1 markets, such as Kunshan and such as the other sites which we are working on in terms of land acquisitions. There are only very few locations around the edge of tier 1 markets that work. William, do you want to address that?
Yeah. I think in terms of We treat this edge town surrounded tier 1 market. It's tier 1 market. It should fulfill the local infrastructure. It's very good. The second, the network connectivity, it works. The third, the local government support. The fourth is the existing power or potential power capacity can fulfill our business plan in next three or five years. This is our criteria. That means there looks like a lot of the location you can select, but actually not. Just very few location is suitable for us, meet our criteria. We try to be a first mover in this land acquisition to build our next wave resource advantage. We start working with on that almost one and a half years.
The next telephone question is from Frank Louthan from Raymond James. Please ask your question, Frank.
Great. Thank you. Can you walk us through a little more color on what exactly the JV is going to do for you, any assets being put in there? Can you talk us about as far as your demand goes, if you talk about going forward, any need to expand outside of China, or are you still pretty much looking all domestically? Thanks.
Frank, I don't know if we confused you. We haven't established a JV. If you were referring to the Ping An investment, they are investing in our equity. In fact, they will take their ownership level up to nearly 10%. At the same time, we are increasing our strategic cooperation in various areas. William, would you like to comment on some of the potential areas for cooperation?
I would say Ping An Group is a big group. They have the financial service and they also have the Ping An Technology. From the GDS side, we treat them like we can have more deepened cooperation with them in several areas. One, last year, Ping An already has been our top customer. This is new. We believe we will do more deals this year and the next few years. They are our strategic customer right now. Second of all, Ping An also owns a lot of property in China. This lets us have more flexibility to develop our resource plan. We are working on some projects right now with them. Third, Ping An has the insurance bank and other financial institutions in China, security.
We also potentially can work with them at a project level in order to get lower interest rates and get stronger support in our project.
Frank also asked about our thoughts about expanding outside of China.
I think currently, our target is still in China. That is our main focus. It does not change. Outside China, we expect to have more projects in Hong Kong. Everybody knows, last year we acquired a piece of land in Hong Kong. We already started that process to design and try to build as soon as possible because we got a lot of our mainly China-based customers' demand already. We are trying to seek more projects in Hong Kong. That is our current plan.
Got it, okay. Thanks for the better explanation on Ping An. What's the outlook for adding new logos over the next 12 months? How's the sales force focused and compensated on that? What do we expect for new logo growth?
I think we take it in two parts, William. First of all, in terms of strategic customers, more targets in that category. Second part, the growth of our enterprise customer base.
Enterprise.
Yeah.
I think our sales strategy is very simple. I think number one, current priorities are still follow up the cloud, because cloud is still in a very early stage in China. The good thing is GDS already ready for ride on their growth because we have all the major cloud player, customer in China. They deploy their computing and cloud pops in a significant way in GDS. That's very unique. We are confident to ride on this trend. Second of all, I think there's a lot of new Internet giants still growing very fast. Everybody know last year we acquire a lot of the new Internet vertical giants like Ctrip, like DiDi, like NetEase. They're the biggest player in each vertical. We believe this new logo will let us have another key driver to drive the demand for us.
On the other hand, for the retail side, we keep developing some well-known name customer, especially in financial service. Last year, we gathered two significant new customer. One is China UnionPay, one is JPMorgan. I think this way we'll still keep this development in the three major vertical.
Okay, great. Thank you very much.
Once again, ladies and gentlemen, just a reminder, to star one to ask a question. Our next questionnaire is from Gokul from JPMorgan. Please ask your question.
Hi, William and Dan. Thanks for your comments. Just first question I had, could you talk a little bit about the details of what you talk about pricing potentially going down 5% in 2019? Are these primarily for the newer contract you're signing? Is it because of the expansion to more satellite locations? The 5% down, is it excluding the impact of Hebei?
Gokul, the monthly service revenue per square meter in 2019 will largely price what's in the contracts which are already in the backlog. As those contracts are delivered, that's what will result in a change in the MSR. That trend has been there for at least three years. In fact, our MSR went up and down, but it's actually overall has trended down. What I tried to point out, which I think I actually try to point out on every earnings call is our unit CapEx is also trending down. Our target is to maintain our returns, which we have done so very consistently in the 13%-15% IRR range over multiple years. With certain customers, that's very transparent.
What I think is the positive in this is that because we're able to reduce our unit CapEx cost, we can create a value for our customers. We can create a cost benefit to them. That is something which is very positive to them. If we can do that whilst maintaining our returns, it's absolutely win-win.
Our next telephone question is from Colby from Cowen and Company. Please ask your question, Colby.
Great. Thank you. Two questions, if I may. I think your book-to-bill is something just over a year long, and at this point, I think you said you have somewhere around 79,000 sq m in your backlog. Taking those things into consideration, what are some of the bigger dynamics that we should be paying attention to that could swing you either below or potentially above the guidance that you put out there for 2019? Part of what's behind that question is that in 2018, despite that structure being the same, you were able to raise your guidance a few times through the course of the year. Secondly, you seem like you're going to be doing a lot more M&A of data center assets in 2019. Would that be in lieu of CapEx, or would this be in addition?
I guess, to the extent that you're successful with those, could that potentially be a source of revenue growth acceleration? At least how should we think about that in terms of revenue impact and also, I guess how one would fund that? Thanks.
Hi, Colby. That's good questions. Last year, you're right. We experienced a shorter book-to-bill time lag than we had done historically. This year, for the purposes of guidance, we kept the assumption that we've had from past years, which is more like 15 months or five quarters. When we look at it bottom up, we look at what data centers are coming into service in which quarter, what do we know about our customers' moving intentions, what's the delivery schedule in the contracts? I think our approach is conservative, but leaves some scope for upside. There can't be very much deviation, if we're talking about one year forward. On the second question, M&A can be a substitute for organic.
If we acquire capacity in a particular location, it may shorten our time to market, and then we readjust our organic development program in that market, maybe to hold back or slow down an organic project. If that's the case, it doesn't add to our CapEx in terms of the guidance for this year. If the acquisition is in addition to, meaning that we carry on with our organic program as originally intended, and this is a supplement to that. It is on top of the guidance that we've given. It's hard to say at this stage. We do have several targets which we are quite far along in terms of our evaluation. Frankly, they could fall into both categories. They could be targets which shorten our time to market, and therefore, we prioritize them over organic.
They could be targets that add to the extent of our development activities. If they shorten our time to market, it can have positive revenue and EBITDA impact this year. Maybe not very material. First of all, because we're already in March, and there's only so much time left in the year. New data centers coming into service, they may actually have negative EBITDA initially at the project level. I think in terms of forecasts for 2020, yeah, it could add quite significantly, depending on how many projects we do. Does that answer your question?
Yeah.
No, it does. Just one quick follow-up. You mentioned guidance is assuming 15 months book-to-bill, which is longer than 2018, but in line with historical. Are you actually expecting the book-to-bill to go back to that longer term, or is that just you trying to be prudent in your guidance?
Both, actually, Colby. Yeah, there's nothing fundamental has changed to make customers shorten that time period. In fact, we're probably getting pre-commitments earlier in the life cycle of projects. Invariably, now, we have a pre-commitment on day one of a project. Sometimes we can't announce it because it's a pre-commitment in the eyes of our customer, and in our eyes, but it may not be a contract. With pre-commitment being made earlier, it actually extends that book-to-bill time period. Yeah, we stick around 15 months. I think that's a pretty reasonable assumption. I'm not being overly conservative with that. I think it's the appropriate assumption.
Great. Thank you.
Our next question is from Yang Liu from Morgan Stanley. Please ask your question, Yang.
Thanks for the opportunity to ask questions. I have two questions. The first one, in terms of the new Tier 1 market you plan to enter this year, how does demand and the return profile there, and also the expecting customer moving pace in this kind of new Tier 1 market? The second question is there any early sign of the other Tier 1 cities, in addition to Shanghai, the local government will adopt electricity or power quota in terms of the giving approval to new data centers? Thank you.
What was the question?
Yeah.
Yeah. First question was, which new Tier 1 markets are we looking at?
Yeah.
What is the conditions there?
Yeah.
The second question is, are there any cities where the government is very supportive?
Yeah. I think the Shanghai, Beijing, Shenzhen, Guangzhou, still the Tier 1 market and including Chengdu, historically is the IT center. Last quarter, we say we are quite active in the Chongqing market right now. We think Chongqing, given a time, they will become another Tier 1 market in our view. Hong Kong is our another new target. I think since GDS has been in Hong Kong almost six years, and last year, we think the opportunity is mature right now. Last year, we made our decision to acquire one piece of the land, and we're seeking furthermore development in Hong Kong. Chongqing and Hong Kong is a new two market what we pay attention on.
How is the return profile in these two new markets?
What?
The return profile.
I think will be similar like what we target. We commit all the return profile will be in a 13%-15% IRR.
Thank you. My second question is there any early sign of other Tier 1 cities besides Shanghai that the local government will adopt power quota when giving the approval to build new data centers?
Yeah, we are very familiar with this, and because we are one of the data center player to support the local government to build up their criteria. Definitely, we will be one of the beneficiary. I think the process still another process. We keep talk to the government, and I think this will let us have another opportunity to build a data center in the urban town. That's the current
Did Yang mean that whether other cities would adopt the same quota approach as Shanghai?
Currently, it's only Shanghai, but what we see is Beijing government just last week asked us, they try to understand what Shanghai government are doing right now. We help them to understand the new criteria. What's the logical rationale what we help the government to set up.
Got it. Thank you.
Once again, ladies and gentlemen, it is star one to ask a telephone question. There's no further questions, I'd like now to turn the call back to the company for any closing remarks. Please go ahead.
Thank you once again for joining us today. If you have further questions, please feel free to contact GDS Investor Relations through the contact information on our website or The Piacente Group Investor Relations. Thank you all.
This concludes the conference call. You may disconnect your line. Thank you very much.