GDS (GDS) investor relations material

Executive summary

• Record H1 2026 bookings reached 471 MW; the FY booking target rose to 1 GW amid strong AI and cloud demand.

• Q2 net revenue grew 6.5% YoY to RMB 3,088.0 million; adjusted EBITDA rose 2.5% to RMB 1,406.0 million and net income was RMB 837.6 million.

• Total area committed and pre-committed increased 18.2% YoY to 784,802 sqm (2,047 MW); utilization reached 79.2%.

• Customers secured 600 MW of additional reservations so far in 2026; year-end reservations are expected to exceed 1 GW.

• Strategy centers on binding take-or-pay commitments, selective customer and contract choices, and financial discipline.

Financial highlights

• Pro forma adjusted EBITDA grew 12.7% in H1 2026 after excluding Q1 one-time items, restructured prior-period recurring income, and monetized-asset contributions before deconsolidation.

• Adjusted gross profit was RMB 1,498.9 million, down 0.7% YoY; adjusted gross profit margin declined to 48.5% from 52.0%.

• Adjusted EBITDA margin was 45.5%, down from 47.3% in Q2 2025; gross profit fell 3.6% to RMB 664.2 million as utility costs rose.

• Net interest expenses fell 9.4% YoY to RMB 366.8 million; selling and marketing and G&A expenses also declined on specified adjusted bases.

• Net income was RMB 837.6 million, versus a net loss of RMB 70.6 million in Q2 2025; equity-method income included a dilution gain from DayOne Data Centers.

Outlook and guidance

• FY 2026 revenue guidance rose to RMB 12,700–13,000 million, implying 11.1–13.7% YoY growth; adjusted EBITDA guidance increased to RMB 5,900–6,100 million, up 9.2–12.9%.

• FY 2026 net move-ins are forecast at 235 MW: 145 MW in H1 and 90 MW in H2; 2027 move-ins are expected to more than double 2026, weighted to H2.

• Move-ins are expected to accelerate through 2027, supporting significant EBITDA growth in H2 2027; 2028 was characterized as a high-growth year.

• FY 2026 booking target rose to 1 GW; backlog is expected to exceed 1 GW by year-end if achieved.

• FY 2026 CapEx guidance increased to RMB 10 billion, with most spending in H2; guidance excludes further asset monetization, including the asset injection under regulatory review.