Frank Louthan: Great. Thank you. So looking out to your guidance, kind of what does it take to hit the higher end of the range of your guidance? What sort of assumptions are built in there? And if you can kind of break that out between the impact from China and also from the out-of-region business as well? Thanks.
Dan Newman: Thank you, Frank. Our track record with guidance has been fairly good. Normally, the full year outcome is not deviated far from the midpoint of our guidance range in prior years. It’s a recurring revenue business. And the move-in rate is what dictates most of the growth year-on-year. So, as we’re already halfway through the year, I think the part that we’re on within that guidance is already quite well set. Having said that, in the second half this year, particularly in the fourth quarter, we’re going to have our Johor data centers come into service and also in China, some of the data centers, which are the destination for the customer who is redeploying between our data centers. And the move-in rate for those contracts is quite fast.
In one case, a few months and in another case, perhaps one year. So even if we assume that the run rate in China remains as it has been, at least, the gross additional area utilized has been quite consistent, I think, for about the past 10 quarters. So even if we assume that, that remains at the current run rate, and there is no recovery, because we can’t predict that yet. Our growth will pick up, because of the additional contribution from these contracts, particularly, Johor. So that will happen too late this year to make much difference to our financial results this year. But clearly, it will contribute to higher year-on-year growth next year. So, we look forward to that and obviously, we’ll reflect that in our guidance for next year when we come out with that.
Frank Louthan: Okay, great. Thank you very much.
Operator: We are now going to proceed with our next question. And the questions come from the line of Sara Wang from UBS. Please ask your question.
Sara Wang: Hi. Thank you for the opportunity to ask questions. So I have two questions. The first one is on the potential target of Southeast Asia business. So, I see that we are now targeting the overseas business to contribute more than 15% of EBITDA within three years. And then I recall December was around 10% during last earnings release. So just wondering if there’s any [technical difficulty]
William Huang: What’s your question?
Dan Newman: No, we lost the – did we lose the connection or she dropped?
Sara Wang: Can you say is this only [indiscernible] visibility. Can you hear me?
Dan Newman: Yes, we can now.
William Huang: Now can you repeat your question? We just missed, sorry.
Sara Wang: Yes, sure. So I see the target for the oversea business to contribute 15% of EBITDA within three years. And then I recall the number was around 10% during our last earnings call. So I’m just wondering, is this just a simple update because of better visibility? Or actually, we are being more optimistic? And then, what’s the like key points for us to be more optimistic? This is my first question.
Dan Newman: Yes. Thank you. Your observation is correct. We did revise up that number moving from 10% to 15% is significant, but in absolute terms, we’re not talking about hundreds of millions of dollars between tens of millions of dollars higher forecast. And you would have noticed that in the second quarter, we did upsize an existing order in Johor. So that was part of the reason for we’re doing that. Frankly, I also noticed that some analysts and leading analysts begin to put more focus on international business and try to quantify how significant it can be within the context of GDS Holdings as a whole. So, we’re responding to that. We try to provide some more disclosure.
