Latest news with #RMB1.1
Yahoo
21-05-2025
- Business
- Yahoo
GDS Holdings Ltd (GDS) Q1 2025 Earnings Call Highlights: Strong Revenue and Mega Deals Amid AI ...
Revenue Growth: 12% year-on-year increase in 1Q '25. Adjusted EBITDA Growth: 16.1% year-on-year increase in 1Q '25. Adjusted EBITDA Margin: 48.6% in 1Q '25, up from 46.9% in 1Q '24. Utilization Rate: Reached 75.7% in 1Q '25. Gross Move-In: Approximately 20,000 square meters in Tier 1 markets during 1Q '25. New Mega Deal: 152 megawatts signed in 1Q '25. Asset Monetization: Completed first ABS transaction in 1Q '25. DayOne Power Commitment: Added 70 megawatts in 1Q '25, total over 530 megawatts. DayOne Expansion: New commitments in Thailand and Finland totaling over 220 megawatts. CapEx Guidance: Total CapEx for the year at RMB4.8 billion. Debt Deconsolidation: Approximately RMB1.1 billion deconsolidated with ABS transaction. Warning! GuruFocus has detected 6 Warning Signs with GDS. Release Date: May 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GDS Holdings Ltd (NASDAQ:GDS) achieved a revenue growth of 12% and adjusted EBITDA growth of 16% year on year, marking the highest growth rate in the past two years. The company signed a mega deal of 152 megawatts during the first quarter of 2025, showcasing strong demand in the AI era. GDS Holdings Ltd (NASDAQ:GDS) has around 900 megawatts of capacity held for future developments in Tier 1 markets, positioning it well to capture upcoming AI demand. The asset monetization strategy, including the completion of the first ABS transaction, provides GDS Holdings Ltd (NASDAQ:GDS) with financing flexibility and the ability to recycle cash in China. DayOne, a subsidiary of GDS Holdings Ltd (NASDAQ:GDS), is ahead of schedule to meet its target of 1 gigawatt of total power committed within three years, demonstrating successful market expansion into Thailand and Europe. There are uncertainties around AI chip supply in China, which could impact short-term demand and deployment plans. The decrease in MSR per square meter by 2.6% compared to the first quarter of 2024 indicates potential pricing pressure. The deconsolidation of the ABS transaction is expected to reduce full-year EBITDA by around RMB130 million, impacting annual growth rates. New government regulations in China may control the expansion of AI data centers, potentially affecting future projects. The C-REIT transaction, while strategic, is still subject to regulatory approvals and may impact financials if not completed as planned. Q: Could management update us on the demand from China, especially from the hyperscaler side, given the recent chipset supply issues? Also, how does the ABS deconsolidation affect financial guidance? A: Wei Huang, CEO: Demand remains strong, particularly for AI-related services, with a focus on inferencing in Tier 1 markets. We have 900 megawatts of capacity for future development. Daniel Newman, CFO: The ABS transaction reduced full-year EBITDA by around RMB130 million, lowering the annual growth rate from 11% to 8.5%. However, we expect high-single-digit growth in the remaining quarters. Q: Can you compare the IRR profile or EBITDA yield across different markets like Johor, Batam, Thailand, and Finland, and compare that to China? A: Daniel Newman, CFO: Development yields in these markets are in the low-teens, higher than in China, reflecting different supply-demand balances. As AI demand grows in China, we expect yields there to improve as well. Q: When do you expect the China business to be self-funding, and do you have full funding for DayOne's 750 megawatts of commitments? A: Daniel Newman, CFO: We are roughly breakeven in terms of free cash flow before financing in China. With asset monetization, we can support annual CapEx of RMB5 billion. DayOne is fully capitalized to develop its portfolio, having raised nearly $2.5 billion in equity. Q: Can you provide details on the gross new area committed in the first quarter and address concerns about new government regulations on AI data centers in China? A: Wei Huang, CEO: The new area was driven by a traditional hyperscaler customer in Tier 1 markets. Our 900 megawatts of capacity already have power energy quotas, so new regulations will not impact us. Q: Could you elaborate on the pricing outlook for the China business and explain the drivers behind DayOne's improved EBITDA margin? A: Wei Huang, CEO: Pricing for new business in China remains stable across major markets. Daniel Newman, CFO: DayOne's EBITDA margin improved to 31% due to rapid ramp-up and achieving higher operating leverage. We expect it to reach industry benchmark levels in the coming years. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Cango Inc. Reports First Quarter 2025 Unaudited Financial Results
SHANGHAI, May 14, 2025 /PRNewswire/ -- Cango Inc. (NYSE: CANG) ("Cango" or the "Company") today announced its unaudited financial results for the first quarter of 2025. First Quarter 2025 Financial and Operational Highlights Total revenues were RMB1.1 billion (US$145.2 million), a significant increase from RMB64.4 million in the same period of 2024. This surge was primarily attributable to our Bitcoin mining business, which generated revenues of RMB1.0 billion (US$144.2 million) in the quarter. A total of 1,541 Bitcoins were mined during the quarter. The average cost to mine Bitcoin, excluding depreciation of mining machines, was US$70,602.1 per Bitcoin in the quarter. Adjusted EBITDA was RMB27.6 million (US$3.8 million) in the first quarter of 2025. The total balance of cash and cash equivalents and short-term investments was RMB2.5 billion (US$347.4 million) as of March 31, 2025. The total outstanding balance of financing transactions the Company facilitated was RMB2.6 billion (US$358.4 million) as of March 31, 2025. Our credit risk exposure has decreased, with only RMB762.4 million (US$105.1 million) of outstanding loan balances where the Company bears credit risks that have not been provided with full bad debt allowance or full risk assurance liabilities. M1+ and M3+ overdue ratios for all outstanding financing transactions facilitated by the Company that have not been provided with full bad debt allowance or full risk assurance liabilities were 2.86% and 1.59%, respectively, as of March 31, 2025, compared with 3.24% and 1.78%, respectively, as of December 31, 2024. Mr. Jiayuan Lin, Chief Executive Officer of Cango, commented, "The first quarter of 2025 marked a new chapter of growth for Cango following our entry into the Bitcoin mining industry in November 2024. Fueled by the strong performance of our mining operations, we generated total revenues of RMB1.1 billion for the quarter. Throughout the quarter, we focused on enhancing our operational efficiency and mined a total of 1,541 Bitcoins, up substantially from 933.8 Bitcoins last quarter. By the end of April, we produced 2,945 Bitcoins from the inception of our Bitcoin mining business." "Given our strong confidence in the Bitcoin's long-term value appreciation potential, we have adopted a "Mine and Hold" strategy, prioritizing both self-mining and long-term holding. Currently, we operate 32 EH/s of computing power, positioning us among the world's top-tier Bitcoin miners. We expect to add another 18 EH/s by the end of July 2025. Looking ahead, we will continue to consolidate and optimize our existing computing resources to maximize efficiency while actively exploring high-quality M&A opportunities to further scale our operations and deliver long-term value to all stakeholders," concluded Mr. Lin. Mr. Yongyi Zhang, Chief Financial Officer of Cango, stated, "We are pleased to report another solid financial performance this quarter, highlighted by total revenue of RMB1.1 billion and a strong balance sheet. We also continued to reduce our credit risk exposure, further bolstering our financial position and flexibility. Supported by this robust foundation, we are well-positioned to expand the Bitcoin mining business and holistically drive the Company's growth." First Quarter 2025 Financial Results REVENUES Total revenues in the first quarter of 2025 were RMB1.1 billion (US$145.2 million), compared with RMB64.4 million in the same period of 2024. The significant year-over-year increase was primarily driven by the Bitcoin mining business launched in November 2024. Revenue from the Bitcoin mining business was RMB1.0 billion (US$144.2 million), with a total of 1,541 Bitcoins mined in the first quarter of 2025. Revenue from automotive trading-related income[1] was RMB7.6 million (US$1.0 million), compared with RMB64.4 million in the same period of 2024. OPERATING COSTS AND EXPENSES Total operating costs and expenses in the first quarter of 2025 were RMB1.2 billion (US$166.7 million). These costs were primarily associated with our Bitcoin mining business. Cost of revenue in the first quarter of 2025 was RMB955.1 million (US$131.6 million), compared with RMB29.1 million in the same period of 2024. Sales and marketing expenses in the first quarter of 2025 were RMB415,981 (US$57,324), compared with RMB3.5 million in the same period of 2024. General and administrative expenses in the first quarter of 2025 were RMB92.5 million (US$12.8 million), compared with RMB37.9 million in the same period of 2024. Research and development expenses in the first quarter of 2025 were RMB324,991 (US$44,785), compared with RMB1.1 million in the same period of 2024. Net gain on contingent risk assurance liabilities in the first quarter of 2025 was RMB5.3 million (US$726,124), compared with RMB15.0 million in the same period of 2024. Net recovery on provision for credit losses in the first quarter of 2025 was RMB28.7 million (US$4.0 million), compared with RMB66.3 million in the same period of 2024. INCOME (LOSS) FROM OPERATIONS Loss from operations in the first quarter of 2025 was RMB155.5 million (US$21.4 million) compared with income from operations of RMB74.2 million in the same period of 2024. NET INCOME (LOSS) AND NET INCOME (LOSS) PER ADS Net loss in the first quarter of 2025 was RMB207.4 million (US$28.6 million) compared with net income of RMB90.0 million in the same period of 2024. Basic and diluted net loss per American Depositary Share (the "ADS") in the first quarter of 2025 were both RMB2.00 (US$0.28). Each ADS represents two Class A ordinary shares of the Company. ADJUSTED EBITDA Adjusted EBITDA in the first quarter of 2025 was RMB27.6 million (US$3.8 million) compared with RMB108.4 million in the same period of 2024. BALANCE SHEET As of March 31, 2025, the Company had cash and cash equivalents of RMB2.5 billion (US$346.7 million) compared with RMB1.3 billion as of December 31, 2024. As of March 31, 2025, the Company had short-term investments of RMB5.2 million (US$715,049) compared with RMB1.2 billion as of December 31, 2024. Business Outlook We currently maintain a deployed hashrate of 32 EH, demonstrating our operational resilience. As part of our continued commitment to growth and scaling our capabilities, we are targeting a substantial increase in our hashrate over the coming months. We are on track to grow our deployed hashrate to approximately 50 EH before the end of July. This increase is expected to be driven by the closing of our share-settled acquisition of Bitcoin mining assets, positioning us to strengthen our competitive advantage and increase operational efficiency. Share Repurchase Program Pursuant to the share repurchase program announced on April 23, 2024, the Company had repurchased 996,640 ADSs with cash in the aggregate amount of approximately US$1.7 million as of April 25, 2025, the day on which the program expired. Conference Call Information The Company's management will hold a conference call on Wednesday, May 14, 2025, at 9:00 P.M. Eastern Time or Thursday, May 15, 2025, at 9:00 A.M. Beijing Time to discuss the financial results. Listeners may access the call by dialing the following numbers: International: +1-412-902-4272 United States Toll Free: +1-888-346-8982 Mainland China Toll Free: 4001-201-203 Hong Kong, China Toll Free: 800-905-945 Conference ID: Cango Inc. The replay will be accessible through May 21, 2025, by dialing the following numbers: International: +1-412-317-0088 United States Toll Free: +1-877-344-7529 Access Code: 8016651 A live and archived webcast of the conference call will also be available at the Company's investor relations website at About Cango Inc. Cango Inc. (NYSE: CANG) primarily operates a leading Bitcoin mining business. Cango has deployed its mining operation across strategic locations including North America, Middle East, South America, and East Africa. Cango expanded into the crypto assets market in November 2024, driven by the development in blockchain technology, increasing prevalence of crypto assets and its endeavor to diversify its business. Meanwhile, Cango has continued to operate the automotive transaction service in China since 2010, aiming to make car purchases simple and enjoyable. For more information, please visit: Definition of Overdue Ratios The Company defines "M1+ overdue ratio" as (i) exposure at risk relating to financing transactions for which any installment payment is 30 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due. The Company defines "M3+ overdue ratio" as (i) exposure at risk relating to financing transactions for which any installment payment is 90 to 179 calendar days past due as of a specified date, divided by (ii) exposure at risk relating to all financing transactions which remain outstanding as of such date, excluding amounts of outstanding principal that are 180 calendar days or more past due. Use of Non-GAAP Financial Measure As part of our review of business performance, we present adjusted EBITDA as Non-GAAP financial measure to help assess our core operating results. Adjusted EBITDA is defined as net income before interest, taxes, depreciation, and amortization, and further excludes share-based compensation expenses and other non-operating income and expenses. We believe Adjusted EBITDA can be an important financial measure because it allows management, investors, and our board of directors to evaluate and compare our operating results, including our return on capital and operating efficiency from period-to-period by making such adjustments. While adjusted EBITDA is not a measure defined under U.S. GAAP, management uses it to evaluate performance, make strategic decisions, and set operating plans. Management believes it also helps investors gain a clearer understanding of our underlying performance by excluding certain costs and expenses that management believes are not indicative of its core operating results. The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for results or guidance prepared and presented in accordance with U.S. GAAP. The Company compensates for these limitations by reconciling the Non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance. The Company encourages you to review its financial information in its entirety and not rely on a single financial measure. Reconciliations of Cango's Non-GAAP financial measure to the most comparable U.S. GAAP measure are included at the end of this press release. Exchange Rate Information This announcement contains translations of certain RMB amounts into U.S. dollars ("US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB7.2567 to US$1.00, the noon buying rate in effect on March 31, 2025, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the "Business Outlook" section and quotations from management in this announcement, contain forward-looking statements. Cango may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Cango's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Cango's goal and strategies; Cango's expansion plans; Cango's future business development, financial condition and results of operations; Cango's expectations regarding demand for, and market acceptance of, its solutions and services; Cango's expectations regarding keeping and strengthening its relationships with dealers, financial institutions, car buyers and other platform participants; general economic and business conditions; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in Cango's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and Cango does not undertake any obligation to update any forward-looking statement, except as required under applicable law. Investor Relations Contact Yihe LiuCango +86 21 3183 5088 ext.5581Email: ir@ Helen WuPiacente Financial CommunicationsTel: +86 10 6508 0677Email: ir@ [1] Revenue from automotive trading related income consists revenues generated from loan facilitation income and other related income, guarantee income, leasing income, after-market services income, automotive trading income and others. CANGO INTERIM CONDENSED CONSOLIDATED BALANCE SHEET(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data） As of December 31, 2024 As of March 31,2025 (Audited) (Unaudited) (Unaudited) RMB RMB US$ ASSETS:Current assets:Cash and cash equivalents1,289,629,9812,515,712,358 346,674,433 Restricted cash - current10,813,74611,210,722 1,544,879 Short-term investments, net1,231,171,7515,188,899 715,049 Accounts receivable, net22,991,95115,801,108 2,177,451 Finance lease receivables - current, net20,685,47519,332,969 2,664,154 Financing receivables, net5,685,0963,722,236 512,938 Short-term contract asset, net33,719,94419,860,987 2,736,917 Prepayments and other current assets, net 226,352,004362,016,043 49,887,145 Receivable for bitcoin collateral, net617,057,7651,464,654,137 201,834,737 Total current assets3,458,107,7134,417,499,459 608,747,703 Non-current assets:Restricted cash - non-current287,425,602161,939,581 22,315,871 Long-term investment-400,000,000 55,121,474 Mining machines, net1,772,319,0411,619,608,093 223,187,963 Property and equipment, net6,634,5096,205,894 855,195 Intangible assets, net47,425,61747,259,479 6,512,530 Long-term contract asset, net17,551,040348,864 48,075 Finance lease receivables - non-current, net9,309,2273,648,111 502,723 Operating lease right-of-use assets, net40,788,97738,789,517 5,345,338 Other non-current assets, net329,761,833359,761,832 49,576,506 Total non-current assets2,511,215,8462,637,561,371 363,465,675 TOTAL ASSETS5,969,323,5597,055,060,830 972,213,378 LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Short-term debts124,584,293790,393,522 108,919,140 Accrued expenses and other current liabilities1,348,300,7791,999,990,186 275,606,016 Deferred guarantee income11,787,7127,974,712 1,098,945 Contingent risk assurance liabilities 31,190,42520,979,625 2,891,070 Income tax payable311,130,341314,258,152 43,305,931 Short-term lease liabilities7,912,4207,639,264 1,052,719 Total current liabilities1,834,905,9703,141,235,461 432,873,821 Non-current liabilities:Deferred tax liability10,724,13310,724,133 1,477,825 Long-term operating lease liabilities37,044,46635,769,502 4,929,169 Other non-current liabilities19,11818,131 2,499 Total non-current liabilities47,787,71746,511,766 6,409,493 Total liabilities1,882,693,6873,187,747,227 439,283,314 Shareholders' equityOrdinary shares199,087199,087 27,434 Treasury shares(756,517,941)(754,199,105) (103,931,416) Additional paid-in capital4,725,877,4324,749,907,787 654,554,796 Accumulated other comprehensive income152,882,024114,572,087 15,788,456 Accumulated deficit(35,810,730)(243,166,253) (33,509,206) Total Cango Inc.'s equity4,086,629,8723,867,313,603 532,930,064 Total shareholders' equity4,086,629,8723,867,313,603 532,930,064 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY5,969,323,5597,055,060,830 972,213,378 CANGO INTERIM CONDENSED CONSOLIDATED STATEMENTS OFCOMPREHENSIVE INCOME (LOSS)(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data) Three months ended March 31 20242025 (Unaudited) (Unaudited) (Unaudited) RMB RMB US$ Revenues64,422,4941,053,883,166 145,228,984 Bitcoin mining income-1,046,266,997 144,179,448 Loan facilitation income and other related income 13,821,022(829,251) (114,274) Guarantee income 30,259,5814,043,650 557,230 Leasing income4,939,7122,088,483 287,801 After-market services income 11,637,788776,803 107,046 Automobile trading income3,445,04070,796 9,756 Others319,3511,465,688 201,977 Operating cost and expenses:Cost of revenue29,058,868955,091,082 131,615,070 Sales and marketing3,548,273415,981 57,324 General and administrative37,923,53192,536,718 12,751,901 Research and development1,098,105324,991 44,785 Net gain on contingent risk assurance liabilities(15,018,246)(5,269,261) (726,124) Net recovery on provision for credit losses(66,339,084)(28,702,162) (3,955,264) Loss from change in fair value of receivable for bitcoin collateral-194,957,999 26,865,931 Total operation cost and expense(9,728,553)1,209,355,348 166,653,623 (Loss) income from operations74,151,047(155,472,182) (21,424,639) Interest income16,503,9652,152,469 296,618 Net investment income10,984,524- - Interest expense-(9,517,781) (1,311,585) Foreign exchange gain (loss), net131,689(818,002) (112,724) Other income832,55113,609,872 1,875,491 Other expenses(535,390)(54,180,931) (7,466,332) Net income (loss) before income taxes102,068,386(204,226,555) (28,143,171) Income tax expense(12,041,600)(3,128,968) (431,183) Net income (loss)90,026,786(207,355,523) (28,574,354) Net income (loss) attributable to Cango Inc.'s shareholders90,026,786(207,355,523) (28,574,354) Earnings (losses) per ADS attributable to ordinary shareholders:Basic0.85(2.00) (0.28) Diluted0.80(2.00) (0.28) Weighted average ADS used to compute earnings per ADS attributable to ordinary shareholders:Basic105,521,018103,783,087 103,783,087 Diluted112,786,810103,783,087 103,783,087 Other comprehensive income (loss), net of taxForeign currency translation adjustment20,894,928(38,309,937) (5,279,250) Total comprehensive income (loss)110,921,714(245,665,460) (33,853,604) Total comprehensive income (loss) attributable to Cango Inc.'s shareholders110,921,714(245,665,460) (33,853,604) CANGO OF GAAP AND NON-GAAP RESULTS(Amounts in Renminbi ("RMB") and US dollar ("US$"), except for number of shares and per share data Three months ended March 31 20242025 (Unaudited) (Unaudited) (Unaudited) RMB RMB US$ Net (loss) income90,026,786(207,355,523) (28,574,354) Add: Interest expense-9,517,781 1,311,585 Add: Income tax expenses12,041,6003,128,968 431,183 Add: Depreciation and amortization927,576155,503,915 21,429,012 Cost of revenue-154,944,205 21,351,882 General and administrative879,591559,710 77,130 Research and development47,985- - Add: Other expenses535,39054,180,931 7,466,332 Less: Other income832,55113,609,872 1,875,491 Add: Share-based compensation expenses5,717,42226,187,822 3,608,778 Cost of revenue254,39158,766 8,098 Sales and marketing1,046,659339,524 46,788 General and administrative4,416,37225,783,442 3,553,053 Research and development-6,090 839 Non-GAAP adjusted EBITDA108,416,22327,554,022 3,797,045 Non-GAAP adjusted EBITDA attributable to Cango Inc.'s shareholders108,416,22327,554,022 3,797,045 View original content to download multimedia: SOURCE Cango Inc.
