Hello, ladies and gentlemen. Thank you for standing by for GDS Holdings Limited's first quarter 2024 earnings conference call. At this time, all participants are in 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, operator. Hello, everyone. Welcome to the first quarter 2024 earnings conference call of GDS Holdings Limited. The company's results were issued via Newswire services earlier today and posted online. A summary presentation, which we will refer to during this conference call, can be viewed and downloaded from our IR website at investors.gds-services.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. Ms. Jamie Khoo, CEO of GDS International, is also available to answer questions. 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 risk uncertainties is included in the company's prospectus as filed with the U.S. SEC, and the company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that GDS earnings release, earnings press release and this conference call includes 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'll now turn the call over to GDS Founder, Chairman, and CEO, William Huang. Please go ahead, William. Hello, everyone. This is William. Thank you for joining us on today's call. The top priority of GDS senior management team is to create value for our shareholders and drive share price recovery. Our business now has two distinct segments, China and International. For China, we believe that the key to creating shareholder value is, first, to get back onto a higher growth track in terms of EBITDA. Second, to generate a positive free cash flow before financing and then reduce debt. And the third, to position strategically for the coming AI wave. For international, the Series A capital raising sets a benchmark of nearly $4 per GDS share. We believe that this value will appreciate significantly as we build on our initial success. Now, let's review our progress towards these goals in more detail, starting with China on slide five. The key to restoring higher growth in China is the move-in rate. Over the past couple of years, we focused our sales efforts on opportunity, opportunities with fast-moving schedules and reasonable pricing. Even though the market as a whole slowed down, we've made good progress with winning this kind of business. The results of our efforts are now starting to become visible in our gross additional area utilized. In 1Q2024, the gross move-in for China was 17,000 square meters, all of which was in Tier One markets. It's the highest since 2020. Going forward, based on contractual commitments in the backlog, we expect gross move-in to continue at these higher levels. From the beginning of 1Q24, we started recognizing revenue and then deducted 12,000 square meters from our area we utilize for three BOT data centers, which we plan to transfer to the customer on an accelerated basis. During 1Q24, this was around 60,000 square meters of customer churn, most of which we immediately replaced with new customer commitments in our 1Q24 bookings. Over the next couple of quarters, we expect the impact of these one-time factors to diminish. As a result, net additional area utilized in China will step up in line with the improved gross move-in. How do we achieve steady EBITDA growth, while at the same time generating positive free cash flow before financing?... The key is increased utilization of existing assets and to only incur additional CapEx when needed to deliver capacity to customers with confirmed moving schedules. In 1Q 2024, we brought 14,000 square meters of new capacity into service in China, at three data centers in Shanghai, Changshu, and Langfang. The commitment rate for these three data centers is 100%. By the end of quarter, the utilization rate was already over 40%. This is the pattern which we are aiming for. In the past couple of years, we put the brakes on our development program in China, completing around 30,000 square meters of projects per annum in 2022 and 2023. In the current year, we expect higher level of completions at around 60,000 square meters due to the higher level of customer move-in. However, to deliver this capacity, we only needed to incur the cost to complete, which works out at around CNY 2.5 billion or less than $333 per MW. Slide eight, net additional area utilized by over 50%, while only needed to incur costs to complete of around CNY 0.4 billion. Turning to ourselves on slide nine. In the market, we have been selective with deals, which fit our capacity and have the right com- In 1Q 2024, new bookings in China were around 9,000 square meters. Most of which relates to inventory at data centers in service. So far, there have been a lot of AI-driven demand in Tier one markets. However, there have been AI developments in remote locations, which are not our focus. These deployments are mainly for AI development and AI enabled applications. Nonetheless, it is an encouraging lead indicator of latency-sensitive AI demand coming to. As we have seen in our international business, AI requires unprecedented scale and faster delivery. We are very well-placed to satisfy this kind of requirement in China Tier One markets. Because of the land and power which we have secured at multiple sites, we will use this resource very strategically to capture the AI wave. Turning to international on slide 12. Our international strategy is based on anticipating new waves of demand and evolving requirements, moving decisively to secure land and power with short time to market. Winning game-changing customer orders, leveraging our competitive strengths to execute faster and more efficiently, and financing the business on a stand-alone basis. Within a few years of launching our international strategy, we are well on the way to developing a market-leading presence in three of the world's largest data center hubs, namely Singapore, Johor Bahru, Hong Kong, and Tokyo. Across these three hubs, we currently have 75 MW in service, 196 MW under construction, and over 500 MW of land and power supply held for future development, subject to demands. All of this capacity could be constructed and delivered within three-four years, which is critical considerations for customers. We currently have 182 MW of commitments, which are around 40% from the leading global customers. In 1Q 2024, we won an 18 MW order from local cloud player, and in the current quarter, we won a 43 MW order from a global cloud service provider. Both of these orders were for our two Johor campuses. Our pipeline of new business for Johor is exceptionally strong, and I am pleased to report that we are in the process of contracting our first business for Batam. Meanwhile, in Hong Kong, we are already sold out our first two data centers. In Tokyo, we are partnering for two new data centers, which we believe will be highly marketable. In today's market, it is very typical for customers to require a short lead time to delivery of only a few quarters. They then commit to rapid moving. Our ability to meet these requirements sets us apart. As a proof point, we have already delivered 70 MW into johor, which was 100% revenue generating by the end of 1Q 2024. We have another 86 MW backlog in Johor, most of which is scheduled for delivery and will become revenue generating over the next six quarters. Due to the accelerated sales pipeline and the stronger investor demand, we decided to upsize the Series A new issue by $85 million- $672 million. This successful new issue demonstrates our ability to access capital for international stand-alone basis. We have now established a channel for future capital raises and the future value in benchmark markets. I will now pass on to Dan for the financial and operating review. Thank you, William. Turning to slide 15. From 2Q 2024, we will start to provide segment reporting in our earnings release. As you can see, excuse me, we have already included most of the segment information in our 1Q 2024 earnings presentation. We will define two segments: Digital Land Holdings Limited and its subsidiaries, which comprises all of our business and assets outside of Mainland China, except for some minor third-party data centers in Hong Kong, will be referred to as GDSI or International. GDS Holdings Limited and all of its subsidiaries, excluding GDSI, which comprises our ultimate holding company and all of our business and assets in Mainland China, will be referred to as GDSH or China. Turning to Slide 16. In 1Q 2024, consolidated revenue increased by 9.1%, and Adjusted EBITDA increased by 4.7% year-on-year. Starting with the China segment. In 1Q 2024, GDSH revenue increased by 1.8%, and Adjusted EBITDA decreased by 1.6% year-on-year. Without the BOT transfers, GDSH revenue would have increased by 3.4%, and GDSH Adjusted EBITDA would have increased by 1.4% year-on-year. GDSH revenue growth was mainly driven by an increase in total area utilized of 7.5% year-on-year, offset by reduction in MSR. GDSH Adjusted EBITDA growth was further impacted by higher power tariffs during the past year, which resulted in a decrease in GDSH Adjusted EBITDA margin from 48.6% in 1Q 2023- 46.9% in 1Q 2024. In 1Q24, net additional area utilized for China before the BOT transfers was 10,858 square meters, which is slightly higher than the average for the prior four quarters. Looking forward, we expect net additional area utilized for China to step up over the next few quarters as a result of higher gross move-in and reduced impact from one-time factors. We also expect the reduction in MSR to slow down, and assuming that power tariffs remain at current levels, we expect GDSH adjusted EBITDA margin to stabilize with just the usual seasonal fluctuations. Turning to international, GDSI recorded strong revenue growth and adjusted EBITDA growth as its first data centers entered service and began to ramp up, with nearly 20,000 square meters of net additional area utilized in a single quarter. Because of the scheduled delivery and move-in commitments, we expect the numbers for GDSI to increase rapidly. Turning to slide 19. In 1Q 2024, our China CapEx totaled CNY 894 million. CapEx during the first quarter is usually elevated, as payables are settled on an accelerated basis before Chinese New Year. We expect lower CapEx per quarter over the rest of the year and still maintain our CNY 2.5 billion guidance for China CapEx for the full year. In 1Q 2024, our international CapEx was around CNY 702 million. As William mentioned, we have an 87 MW backlog to deliver over the next six quarters. In addition, we plan to purchase additional land in Johor and Singapore and to commence new projects as we win customer commitments. Our CapEx guidance for international in 2024 is CNY four billion. Based on the strong sales pipeline, international CapEx may accelerate over the next few quarters. Turning to slide 20. Cash flow before financing for the China segment has fluctuated between positive and negative for the past five quarters. It was negative in 1Q 2024 due to slower collections and faster payments, which follows the same pattern for the past three years. We still expect to be close to or breakeven for the full year. We expect to receive proceeds from the BOT transfer in the second or third quarter. In 1Q 2024, international, on a standalone basis, had negative cash flow before financing of over CNY 730 million. With the proceeds of Series A, we have enough capital to complete all of the current projects. Turning to slide 22. On the 26th of March, we announced that we had entered into definitive agreements with certain private equity investors to subscribe for $587 million of Series A convertible preferred shares, newly issued by GDSI. On the 13th May, we entered into amendments to the definitive agreements, which included increasing the size of the Series A new issue to $672 million, at the same pre-money equity valuation of $750 million. We expect the Series A new issue to close on the 4th of June. Post-closing, and on an as-converted basis, GDSH will own approximately 52.7% of the equity interest of GDSI in the form of ordinary shares. The remaining 47.3% equity interest will be held in the form of Series A shares by the private equity investors. Turning to slide 23. Proceeds of the equity capital raised by GDSI is ring-fenced. We therefore believe that it makes more sense to look at our leverage on a segment basis. After closing of Series A, GDSI will repay all shareholder loans and other amounts due to GDSH. At the end of 1Q 2024, this totaled CNY 1.7 billion. On a pro forma basis, the cash balance of GDSH will increase to CNY nine billion, all of which is available to support the China business. The net debt to last quarter annualized adjusted EBITDA multiple for GDSH was 7.7x. This calculation does not take into account the value of GDSH's equity interest in GDSI. Turning to slide 24. During the period from 2Q 2024- 4Q 2024, we have CNY 1.7 billion of project loan amortization for China. We continue to successfully refinance GDSH onshore project loans, extending maturity and lowering cost. We are also able to draw down on existing project loan facilities to finance a substantial part of GDSH incremental CapEx. As you can see in the loan maturity schedule, GDSI has obtained five-year project term loans to finance its developments. Turning to slide 25, we are not changing our formal guidance for FY 2024 consolidated revenue, adjusted EBITDA and CapEx. We'd now like to open the call to questions. Operator? Thank you. To ask a question, you will need to press star one and one on your telephone and wait for your name to be announced. To withdraw your question, please press star one and one again. For the benefit of all participants on today's call, please limit yourself to one question. If you have more questions, please reenter the queue. Thank you. We will now go ahead with our first question, which is from Jonathan Atkin from RBC Capital Markets. Please go ahead. ... Thanks. I got one question around China domestic business, and then maybe one international, if I could throw that in. Inside of China, what are you seeing apart from the utilization rate on a square meter basis that you have reported? What are you seeing with respect to power draw and customer behavior around, you know, increasing the draw of power that they're contractually able to utilize? Any trend there that might be instructive in terms of increasing demand or maybe follow on demand from customers? My question on internationals is, at the GDSI, you know, it appears they have a lot of project loans, and I wonder if you could provide a little bit of color on cost of capital and just the sort of counterparties that you have for these loans. Are they domestic, international, et cetera? Thank you. Yeah, John, hi, it's Dan. I'll try to answer your questions. Well, the first one about the power draw in China. Most of our established data centers, which are, you know, utilized by the large cloud and internet customers, are already operating at a maximum power levels. You know, the entire available power capacity of the data centers is committed to the customers, and they, of course, operate their own business at a very high level of operating efficiency. So, you know, we don't have a situation in which there is a spare power capacity which is not being utilized or monetized. On the other hand, for new data center developments, you know, we are typically constructing at a higher power density. You know, the power density for new developments is quite often over 3 kW per sq m. So that may be an indicator of what is behind, you know, what you're asking, behind your question. For the project loans in the international business, we're taking a similar approach to the way in which we finance China business, which is to allocate capital project by project, and then to leverage that with debt at the local level. The customer contracts, which have been signed, most mainly in Malaysia, are priced either in U.S. dollars or in Malaysian ringgit. So our income is both U.S. dollar and Malaysian ringgit. So far we are borrowing in Malaysian ringgit, and we're aiming to minimize the FX exposure to that. The loans are from a syndicate of banks who are already very familiar with us, and we expect to go through the same pattern that we did in China of establishing a structure, developing relationships with local banks, and over time, transitioning to having very predominantly local bank relationships. Thank you. And then, for Japan, the 36 MW, can you give us a sense of when you would intend to start construction? Yeah. So, Jonathan, this is Jamie. So on the Japan side, our partner, which is Gaw Capital, will be doing up the construction of the core and shell. So that will be completed and passed on to us by end 2025 or early 2026. So then we will start our approach, our M&E construction, and that will bring us to Q4 2026 for deliveries. Yeah. Thank you. Thank you. We will now take our next question. This is from the line of Yang Liu from Morgan Stanley. Please go ahead. Thanks for the opportunity. I have two questions here. The first question is regarding the asset monetization in China, because previously management mentioned about this strategy. What are the opportunities you are seeing in the market, and what is the current plan, or what should we expect on this front? And should we think the transfer of BOT is a part of that or not? That is the first question. Yeah. Yeah, yeah, Yang, let me answer that question, then you answer your next question. First of all, on the BOT transfer, this is very specific. We have 15 BOT data centers. This transfer involves three of them. You know, one of the three is at a campus where it is the only data center that we have invested in and operate. So that is being transferred really for the sake of operational efficiency. The other two data centers, the customer, you know, has had a change in plan in terms of how they wish to utilize those data centers, which includes the way in which they are fitted out. But this is not a, this is not at any involve any change of strategy. It's not something that we expect to happen in future. We came to a mutual agreement. We will recover our investment, plus a reasonable return over the period of time in which our capital has been invested, and it will make a small positive co-contribution to our cash flow before financing when the proceeds are received, either in this quarter or next quarter. We talk more generally about asset monetization. Yes, I appreciate, you know, we have talked about that, for some time, and it is most definitely a strategic objective of ours, and I think that we are moving in the right direction. We have not ceased to make efforts, and currently we have a number of projects ongoing, including at one end of the spectrum, C-REIT, China REIT. One degree over from that is what's referred to in China as a private REIT, which involves exactly the same structure as a public REIT, but doesn't have the public REIT at the top of it, and but is a stepping stone in terms of monetizing an asset, which can then subsequently be injected into a public REIT. And we also have other structures which are more like financing. And we're dealing with China's leading insurance companies, leading RMB private equity funds, and even some U.S. funds who are looking at assets in China. I think William, we're very determined about this, and I think there's a chance we get something done before the end of this year. Yeah. Plus, it's not in any of the numbers or guidance that we've provided, but clearly, you know, it would make a contribution to our free cash flow before financing, and, you know, I'm quite sure it will be accretive. Thank you. Yeah, I have another question in term of the CapEx outlook beyond 2024. Do you think the China part of the CapEx can further come down next year? If the demand stay at current level or if the growth at moving stay at current pretty good run rate. Thank you. Yeah, we our business plan assumes that our growth rate picks up mainly because of the contracts which are in the backlog. So we're not taking a view on broader market developments. We're simply basing that on, you know, what we already have secured and are working to deliver. So we expect the move-in to go, you know, it already has at a growth level, to go to a higher level and to continue at that level, you know, for the foreseeable future. The CapEx guidance for this year was CNY 2.5 billion. Well, it's too early to give guidance, but in our business plan, CapEx in the next, each of the next, you know, one or two years is around that same level or lower. Okay, thank you. Thank you. We will now take our next question. This is from Frank Louthan, from Raymond James. Please go ahead. Hey, guys, this is Rob on for Frank. You might have touched on this a little bit earlier, but what's, you know, what's the impact of higher interest rates on your customers' business, and how should we think about that, yeah, how should we think about that impact going forward? Yeah, Rob, I have to say, in China, the interest rate trend has been the opposite of what, you know, what you've seen in the U.S. and most of the developed markets, because the reference interest rate for us, you know, which we refer to as the over five-year Loan Prime Rate, is the lowest that it's been in since we started our business. Not only that, but the margin that banks charge in our project financing facilities, which is a spread over the over five-year Loan Prime Rate, has come down to either just a few basis points over or quite often now several tens of basis points under the Loan Prime Rate. So-... Our financing costs in China, debt financing costs in China is the lowest, it's the lowest it's ever been. Our customers are mainly large cloud and internet companies, which in China, most of them don't have any debt. So I don't think that probably affects our customers' business very much either way. Thank you. We will now take the next question. This is from the line of Cooper Belanger from TD Cowen. Please go ahead. Hi, everyone. You have Cooper Belanger on here for Michael Elias. I wanted to ask a quick question regarding the segmentation. You know, obviously, you provide guidance for GDSI and GDSH CapEx separately. Should we expect the same thing going forward in terms of revenue, adjusted EBITDA, et cetera? Yeah, thanks, Cooper. For the time being, the answer is not in a formal sense, but during the prepared remarks, we will continuously update and give some direction on the key performance indicators, both operating and financial KPIs. Maybe after a few quarters, you know, we might revisit that, but for now, I think we split out on a historical basis, all the numbers that really matter. I think the only one which we've not split is MSR, because it's—for now, it's not material to look at China and its national MSR, because there's not enough difference. But when there is, we will split that out, and then we will provide commentary on each of these metrics on a China and international basis. So I think that will probably get you a long way, until we provide formal guidance for GDSH and GDSI, separately. Thank you. Thank you. We now have a follow-up question. This is from the line of Yang Liu, from Morgan Stanley. Please go ahead. Thanks for the opportunity to ask a question again. Yeah, I would like to ask first on the demand side. Do you see that the demand from China customers are getting better maybe than three or six months ago? Because we saw that leading internet companies increasing their CapEx meaningfully in recent quarter. Not sure if that is transferring to GDS demand. And of course, previously, we saw the overseas demand is pretty good, but I just want to have an update on that front compared with three months ago. Is it getting better or moderate a little bit? And another question I also would like to ask, because we saw the financing PE financing got upsized. So, that means the GDS Holdings stake in GDSI will further decline to 52 something, right? But I just want to ask whether GDS have the strategy to consolidate GDSI in the long run. Do you feel comfortable if the future financing round you will the stakes drop below 50%? Yeah, that is my question. Or another thing, do you have a firm plan to spin off GDSI? Yeah. Thank you. Okay, Yang Liu, I think I answered the demand question. I mean, in China, I think that we see the demand, it's start to recover. But I think the... If it, it's already impacted to us, because if you see our first quarter move-in speed up, and, it's, since 2020, it's the highest quarter in last two years, last four years, even, right? So this is already... That's where we expect, and, we will benefit on that. And for the new incremental, I think the, we already seen some of the new incremental, mainly driven by the AI, right? Maybe it's training purposes. This is also going, as I just mentioned, some deal is to go to the remote area, which is not our focus. But we will see the demand, we'll follow up the demand from the, let's say, inference or AI-enabled application. So we will see this trend definitely will benefit to us in near the future. So I think in general, the demand's recovered. ... start to recover, and we, our target is getting more customer moving more fast. This is what we expect. This is what happening in China. For the international, I think the simple answer is that demand is getting more strong, so than three months ago, and this is number one, is that there's more different customer, multinational customer, coming to discuss with us or try to find us some resource in Johor and Batam as well. And the deal size is getting more bigger. So I think we have very, very confident we will get more deal in the next 12 months. Let's see. I think that's what happening. It is happening in the international market. Even in Japan, I think after we just announced that, there's a lot of the sales leads is coming up, so I think if we deliver that by the end of 2026, definitely we have to some pre-sale in Japan. So also, yeah. For the other, let me answer the other part of your question. So I think from the perspective of GDS Holdings, I think what really, what really matters is that GDS International is as successful as possible, and that the value of our investment in GDS International appreciates as much as possible. In order to optimize the success of GDS International, it is highly likely that GDS International will undertake further capital raisings. When that happens, we have to see what the consequences are in terms of our ownership percentage and ability to consolidate. To some degree, we already anticipated this, when we structured the Series A new issue. We included certain unique rights to protect the position of GDSH, but also to ensure that in future, we are able to initiate an IPO and spin-off, meaning distribute the shares to our shareholders, if we think that that is in the best interests of our shareholders. Because it's important not only that the value of our investment in International increases, but that that value accrues to our shareholders. If it's not reflected in our share price, then we have to find another way to ensure that the value accrues to our shareholders. So that was, you know, that was one of the things that we have a unique right to make a decision in the future on whether we wish to go down that path. Thanks. Quite encouraging to hear the plan. Thank you. Thank you. As a reminder, if you would like to ask a question, you can press star one and one on your keypad. We will now take our next question. This is from the line of Gokul Hariharan from JPMC. Please go ahead. Yeah, hi. Thanks for taking my question. William, you did talk about some of the initial AI demand that is starting to show up in China, especially for training. Could you talk a little bit about what kind of data center capacity or power profile that you need to prepare? Are there distinct differences in terms of the kind of data centers required for AI workloads that you're hearing from your customers, compared to the regular cloud data centers that you've always had? And do you feel that you'll have to start increasing to build some of these data centers eventually, or you don't think that's the case, but you can accommodate them in the existing data centers themselves? What kind is this? AI. AI. AIDC. Okay. Yeah. Yeah. I think the AIDC is, it depends on how you define it, right? So I think if you think the data center hosts the GPU is AIDC, yeah, actually, we're already there, right? So, but typically, I think our existing, let's say, data center in all the Tier One market or in the edge town of the Tier One market, the big city, it's already has enough power capacity to fulfill the high density server. That's what configuration we already step up in a couple of years ago. So our new data center in the last, let's say, at least in the last five or six years, we already built very high power density data center already. This is number one. Number two, I think in terms of the differences, maybe not it, it's popular right now, but I think the China data center AI data center require more, maybe in the future, more cooling air cooling system to calibrate the cooling stuff. But this is nothing new for us. We already built a cooling type data liquid cooling type data center four years ago for our two of the largest customer as well. So I think this is already... For us, I think AI data center is nothing, nothing new for us, right? We also build a lot of the similar liquid cooling data center in Johor in the last, since last year. So this is mainly difference. Number one, I think, in terms of the profiles, number one is a larger scale, number two is a high power, maybe future li- Hello? Yeah, yeah. Yeah, we're still here. Oh, okay. Sorry, I, I missed out the last part of William's answer. Sorry about that. My, my next question is on the- I mean, national versus... Oh, okay. Go ahead, William. Sorry. Yeah, Google. I think, yeah, my conclusion is that start to implement a couple of years ago for the large type data center. This is meaning now everybody call this is AI data center, right? So we already have most of our Tier 1 market data center suit for this kind of requirement. Yeah. Got it. My second question is on international, maybe to William and Jamie. What are you seeing in terms of the local competitors, especially in Malaysia and to some extent we are also seeing in Indonesia? There's a lot of announcements coming through from local competitors, coming from the data center industry, coming from other utility industries as well. Are you starting to see them in some of the bids that you're participating in, or this is still a separate market for you compared to these local players who are announcing big data center deals? So I think in Malaysia, typically, let's say Malaysia or Indonesia, Batam, right? I think we definitely have the first mover advantage, number one. I think because we are the pioneer to step in this market, and because we already know, we know better than anyone else in this region about the technology trend, and we know we are much better understanding our customer needs. So we know where they will go and when they will go, and how we will do, right? So I think this is a different advantage we already have than anyone else in this market. So frankly speaking, before 2028, I think the most of the power in this region, we already secured most of the power. So I think the even a lot of new player jump into this market, there's a... I think the time to market were way behind us. Got it. Yeah. Thank you very much. Thanks. Thank you. We will now take our next question. Please stand by. Next question is from the line of Sara Wang from UBS. Please go ahead. Thank you. Just one quick question. So, for the China business, given the backlog might be signed a couple of years ago, I'm just wondering if the AI-driven demand will simply drive acceleration of execution of the previous backlog, or will there be any changes to the contract terms signed maybe previously? Thank you. Thank you. Yeah. If there are any further questions, you can press star one and one on your keypad. You just got more. Huh? Sorry. Sorry, we tried to answer this question, operator. Yeah. Thank you. Line is open. What question I missed? Backlog in way, AI demand will drive China the backlog faster. ... Yeah, yeah, of course, I think the moving, I think in China, the main driver is the internet and perhaps the traditional cloud and AI. Traditional cloud is still very slow, and now most of the demands are driven by the AI. Yeah, and the internet. So I think, as I mentioned, we are already starting to benefit on that, right? So our first quarter moving is mainly driven by the AI and internet company. And we expect that it will continue. Yeah. Got it. Is that your question? Is this just? Yeah, not really. So, I'm just wondering if the AI-driven demand will simply drive acceleration of backlog ramp-up, or will there be any, you know, changes to the contract terms, given the backlog might be signed couple of years ago? Yeah, obviously, our backlog is mainly cloud service providers. Yeah, yeah. So I listen to China's largest cloud service providers' earnings call, and they talk about how they're integrating AI into their cloud business and how AI development is driving demand for their cloud business. So I think if you have cloud service providers in your backlog, then yes, you know, their successful development and bringing to market AI-enabled products and services will contribute to, you could call it AI growth, but also to demand for cloud services. Okay, got it. Thank you. Thank you. As there are no further questions, I'd like to now turn the call back over to the company for closing remarks. Thank you all 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. See you next time. This concludes this conference call. You may now disconnect your line. Thank you.