GDS Holdings Class B Shares Under Lock-Up Until August 26, 2025

Certain Class B ordinary shares of GDS Holdings Limited are subject to a Lock-Up Agreement ending on August 26, 2025. These shares will be under lockup for 91 days starting from May 27, 2025. The company, directors, executive officers, and certain shareholders have agreed not to sell, transfer, or dispose of ordinary shares, ADSs, or other securities convertible into or exercisable for ADSs or ordinary shares for a period of 90 days following the date of the prospectus supplement.

Title: GDS Holdings Limited Reports Strong Q2 2025 Financial Results

GDS Holdings Limited, a leading developer and operator of high-performance data centers in China, has reported its second-quarter 2025 financial results, showcasing significant improvements in financial performance. The company reported a 12.4% year-over-year (Y-o-Y) increase in net revenue to RMB2,900.3 million (approximately US$404.9 million), while reducing its net loss to RMB70.6 million from RMB231.8 million in the previous year [1].

Adjusted EBITDA also rose by 11.2% to RMB1,371.8 million, with a stable adjusted EBITDA margin of 47.3%. Operationally, GDS Holdings experienced growth in area commitments and utilization, indicating robust demand for its services [1].

A key strategic milestone was the successful initial public offering (IPO) of its C-REIT on the Shanghai Stock Exchange, raising net proceeds of approximately RMB2,073 million, which provided enhanced financing flexibility [1].

GDS Holdings plans to maintain its revenue guidance for 2025 and has revised its capital expenditures (capex) down to approximately RMB2,700 million, indicating a strong strategic position as it seeks to leverage evolving market opportunities [1].

Potential Positives
- Revenue Growth: Net revenue increased by 12.4% Y-o-Y to RMB2,900.3 million, reflecting the continued ramp-up of data centers.
- Reduced Net Loss: Net loss significantly decreased from RMB231.8 million to RMB70.6 million, indicating improved financial performance.
- Adjusted EBITDA Growth: Adjusted EBITDA grew by 11.2% Y-o-Y to RMB1,371.8 million, demonstrating solid operational execution.
- C-REIT IPO: Successful IPO of the C-REIT on the Shanghai Stock Exchange raised net proceeds of approximately RMB2,073 million, enhancing financing capabilities.

Potential Negatives
- Ongoing Financial Challenges: Net loss was RMB70.6 million (US$9.9 million) for the second quarter of 2025, indicating ongoing financial challenges despite a Y-o-Y improvement.
- Increased Selling and Marketing Expenses: Selling and marketing expenses increased significantly by 47.9% Y-o-Y, which may signal escalating pressures on cost management and operational efficiency.
- Decreasing Adjusted EBITDA Margin: Adjusted EBITDA margin decreased from 47.8% in the same quarter of the previous year to 47.3%, highlighting a potential decline in profitability relative to revenue growth.

GDS Holdings will hold a conference call on August 20, 2025, at 8:00 a.m. U.S. Eastern Time, to discuss these results in more detail [1].

References
[1] https://www.quiverquant.com/news/GDS+Holdings+Limited+Reports+Second+Quarter+2025+Financial+Results+with+12.4%25+Revenue+Growth+and+Reduced+Net+Loss