Company: GDHLF
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001410578-25-000935
Chunk: 276

Company: GDS Holdings Ltd
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 276
---
4 million in 2023 from RMB9,268.1 million in 2022. This increase was due to increases in service revenue of RMB521.5 million, mainly due to an increase in area utilized from 369,513 sqm as of December 31, 2022 to 405,302 sqm as of December 31, 2023, as (i) customers with commitments moved into the data center area, and (ii) the signing of new service contracts by customers who commenced utilizing services during the period.

Cost of Revenue

Our cost of revenue increased by 7.0% to RMB7,831.2 million in 2023 from RMB7,316.6 million in 2022. This increase was primarily due to an increase of 10.9% in utility costs to RMB3,076.2 million in 2023 from RMB2,773.0 million in 2022, and an increase of 9.2% in depreciation and amortization costs to RMB2,974.5 million in 2023 from RMB2,722.8 million in 2022. Increase in utility costs was largely a result of an increase in power tariff and new data center facilities. Increase in depreciation and amortization costs was largely a result of new data center facilities in service. Cost of revenue as percentage of net revenue increased to 80.1% in 2023 from 78.9% in 2022.

Operating Expenses

Our total operating expenses increased by 235.8% to RMB4,158.4 million in 2023 as compared to RMB1,238.3 million in 2022. The increase was primarily due to an increase in impairment losses of long-lived assets of RMB3,000.7 million. Our total operating expenses as a percentage of our net revenue increased to 42.5% in 2024 from 13.4% in 2023.

Selling and Marketing Expenses. Our selling and marketing expenses decreased by 3.8% to RMB140.9 million from RMB146.5 million in 2022.

Table of Contents

General and Administrative Expenses. Our general and administrative expenses were RMB966.0 million in 2023, compared with RMB1,047.1 million in 2022, which was mainly resulted from (i) a decrease in operating lease cost relating to prepaid land use rights expenses of RMB