Hello ladies and gentlemen. Thank you for standing by for GDS Holdings Limited’s First Quarter 2017 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.

Hello everyone and welcome to the first quarter 2017 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 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’s Founder, Chairman and Chief Executive Officer, who will provide an overview of the business. Mr. Dan Newman, GDS’s Chief Financial Officer, 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 the U.S. Securities and Exchange Commission. The Company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that GDS’s earnings press release and this conference call include discussions of unaudited GAAP financial information as well as unaudited non-GAAP financial measures. GDS’s 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’s Founder, Chairman and Chief Executive Officer, William Huang. Please go ahead.

Hello everyone. Thank you for joining today’s call. In the first quarter of 2017 we continued to make meaningful progress across all aspects of our business and further strengthened our market leadership position. As you can see on Slide 3 we grew total revenue by over 60 percent and Adjusted EBITDA by over 130 percent year-on-year. We invested over $50 million of CapEx to develop the capacity required by our customers. We raised nearly $80 million of debt to ensure that each new project is fully funded. We maintained our strong sales growth momentum, signing up customers for over 7 thousand square meters (net) of new commitments, worth over $35 million in terms of annual recurring revenue. This includes full re-commitment of the area released by a churn customer. I want to highlight that it is a rare case for any company to be able to reallocate such a large amount of area in such a short period. This further proves GDS’s high ability to execute and deliver, as well as the strong market demand. As a result, our total area committed grew to over 68 thousand square meters, 85 percent higher than 1 year ago. We ended the quarter with commitment rates of 90 percent for area in service and 38 percent for area under construction. We continued delivering the backlog, increasing our area utilized to nearly 38 thousand square meters, 58 percent higher than 1 year ago. On the resource side, we enhanced our supply pipeline with the Shenzhen acquisition we announced last quarter of a 10 thousand square meter project under construction. Construction is ahead of schedule and the customer will be moving in Q3, faster than anticipated. In addition, I am pleased to announce today that we have secured a new data center project in Beijing.…

Thank you, William. In this section, I will focus on 4 main areas: first, revenue and operating leverage; secondly,CapEx; thirdly, funding; and then, fourthly, I will make some comments about delivery of the backlog and quarterly expectations for 2017. Starting with the first quarter 2017 P&L analysis on Slide 10. On a GAAP basis, service revenue grew by 14.7% quarter-on-quarter to Rmb 343.7 million. However, this includes a termination fee of Rmb 44.1 million, arising from the previously reported churn of 1,225 square meters at our Shanghai campus. The termination took effect a few days after the start of the quarter and the fee is now cash in the bank. In 4Q16, we generated service revenue of Rmb 16.0 million from the churn area. The termination fee is therefore equivalent to nearly 9 months revenue. On a Pro Forma basis, excluding the termination fee entirely from 1Q17, service revenue was Rmb 299.6 million, which is the same as for the prior quarter. In other words, even without the buffer of the termination fee, we were able to keep service revenue at the same level as before the churn event. Turning to Slide 11, I will show you how we can better track the underlying trends in our financial results. On a non-GAAP basis, Adjusted NOI grew by 27.2% quarter-on-quarter to Rmb 179.4 million. After excluding the termination fee and equipment profit which is non-core, underlying Adjusted NOI was 4.2% lower compared with the prior quarter. The main reason for this is that we booked a full quarter of operating costs for the 3 data centers, totaling over 12,000 square meters of space, which came in to service during 4Q16. The contribution from these data centers will take several quarters to build up to breakeven. On a non-GAAP basis, Adjusted EBITDA…

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.

This concludes this conference call. You may now disconnect your line. Thank you. 1