The latest: Independent data center operator GDS Holdings Ltd. (GDS.US; 9698.HK) reported its revenue rose 31.5% to 2.24 billion yuan ($354 million) in the first quarter of the year, as its net loss widened 33.7% to 373 million yuan, according to an announcement on Thursday.
Looking up: The company continued to expand its business during the period, with its area in service increasing 36.6% to 492,000 square meters, and area utilized by customers increasing 32.2% to 332,000 square meters year-on-year.
Take Note: The company’s cost of sales increased by 30% to 1.7 billion yuan and interest expense increased by 23.8% to 442 million yuan, which were key factors behind the widening first-quarter loss.
Digging Deeper: Founded in 2000, GDS is an information technology infrastructure services provider that was listed on the Nasdaq in 2016 and in Hong Kong four years later. The company has expanded rapidly in recent years, both at home and abroad. In addition to expanding its data center operations in China, it sold $620 million in convertible notes to Singapore’s GIC sovereign wealth fund and Chinese private equity giant Sequoia Capital in February to accelerate the establishment of regional centers in Hong Kong, Macau and around Singapore.
Market Reaction: GDS shares opened 4.6% lower on Thursday and extended their losses to close 5.5% lower at HK$27.55 at the midday break. Its shares now trade at the low end of their 52-week range.
Translation by Jony Ho
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