Company: GDHLF
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001410578-25-000935
Chunk: 58

Company: GDS Holdings Ltd
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 58
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 for renovation of the leased premises, and we may be ordered to suspend operations at applicable premises if we fail to timely cure any such defect. Construction or renovation of certain other of our data centers was carried out without obtaining construction (including zoning) related permits, and certain leased premises were put into use without fulfillment of construction inspection and acceptance procedures, which may cause administrative penalties to be imposed on us in the case of renovation, and may cause the use of the leased premises to be deemed illegal, and we may be forced to suspend our operations as a result. See also “ - Risks Related to Doing Business in the People’s Republic of China - Our business operations are impacted by the policies and regulations of the PRC government. Any policy or regulatory change may cause us to incur compliance costs.”

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We may be regarded as being non-compliant with the regulations on VATS due to the lack of IDC licenses for which penalties may be assessed that may materially and adversely affect our business, financial condition, growth strategies and prospects.

The laws and regulations regarding VATS licenses in the PRC are relatively new and are still evolving, and their interpretation and implementation involve uncertainties. Investment activities in the PRC by foreign investors are principally governed by the Industry Catalog Relating to Foreign Investment, or the Catalog, which was promulgated and is amended from time to time by the MOFCOM and the NDRC. Industries not included in theSpecial Management Measures (Negative List) of the Catalogare permitted industries. Industries such as VATS, including internet data center services, are restricted or prohibited to foreign investment. TheSpecial Management Measures (Foreign Investment Permitted Negative List) of the Cataloghas been superseded by theSpecial Management Measures (Negative List) for the Access of Foreign Investment (2018), theSpecial Management Measures (Negative List) for the Access of Foreign Investment (2019), theSpecial Management Measures (Negative List) for the Access of Foreign Investment (2020), theSpecial Management Measures (Negative List) for the Access of Foreign Investment (2021) andthe Special Management Measures (Negative List) for the Access of Foreign Investment (2024), and theEncouraged Foreign Investment Industry Cataloghas been superseded by theEncouraged Foreign Investment Industry Catalog (2019), the Encouraged Foreign Investment Industry Catalog (2020)and theEncouraged Foreign Investment Industry Catalog (2022). On September 6, 2024, the MOFCOM and the NDRC promulgated the Special Management Measures (Negative List)