Chindata Group Holdings Limited (NASDAQ:CD) Q4 2022 Earnings Call Transcript

And slightly lower EBITDA growth rate, I think — I still call it around 30%. It’s simply because we are actively seeking diversification strategy this year, especially starting from the second half of this year. And that basically means to post-COVID time we’re going to hire multiple and more staff on the business development side, on the R&D side, essentially to support our company’s growth in both China and overseas market over the long run. Having said that, you’re going to see a slight increase of our corporate G&A, R&D and sales and marketing. You spend it this year, they’re going to bring the long term. This incremental resource dedication is going to bring a long-term benefit to companies sustainable the business in the future. So in other words, what do you see?

30% growth rate on the top line and bottom line are pretty much a secured number based on the existing contract and the visible top lines. There is some upper side potential on top of it.

Edison Lee: Nick, can I have a very quick follow-up. I wonder if the EBITDA margin of the non-China projects is putting some pressure on the overall EBITDA margin.

Nick Wang: Actually, on this — the overseas EBITDA margin, we don’t disclose separately about overseas EBITDA margin. But overall, one thing I can tell you is actually with the overseas expansion, bring additional business and bring the long-term potential, it brings out directly the geographical and the customer diversification. That’s point number one. Number two, in terms of per unit financial return, if you measure it against the regional benchmark peers performance, we believe that our EBITDA margin, profit margin, return on assets is definitely going amortized, second point. On third point, regardless of the — a little bit difference on margin profile between the overseas and China market, we’re very confident that on a corporate level, our EBITDA margin to maintain well above 50% moving forward into the future.

And also, the other important factor you’ve got to consider is actually a competitive model or competitive model — confidence model for the company in overseas markets are slightly different from what we have in China. In overseas market, we basically pass through all the power to the client because completely — because more functional Asian nature of the power cost in overseas market. So without this power stuff, you have more certainty of our EBITDA margin overseas. On the other side, that’s probably trying a little bit lower EBITDA margin.

Operator: Great. Thank you very much for all your questions. We have reached the end of the question-and-answer session. And with that, we conclude our conference for today. Thank you for participating. You may all disconnect.