Company: GDHLF
Filing Date: 2025-05-27
Form Type: 424B5
Source: 0001104659-25-053057
Chunk: 91

Company: GDS Holdings Ltd
Filing Date: 2025-05-27
Form: 424B5
Chunk 91
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. In order for us to distribute any dividends to our shareholders and ADS holders, we may rely on dividends distributed by our mainland China subsidiaries. Certain payments from our mainland China subsidiaries to us may be subject to PRC withholding tax. In addition, regulations in the PRC currently permit payment of dividends of a PRC company only out of accumulated distributable after-tax profits as determined in accordance with its articles of association and the accounting standards and regulations in mainland China. Each of our mainland China subsidiaries is required to set aside at least 10% of its after-tax profit based on PRC accounting standards every year to a statutory common reserve fund until the aggregate amount of such reserve fund reaches 50% of the registered capital of such subsidiary. Such statutory reserves are not distributable as loans, advances or cash dividends.

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TABLE OF CONTENTS

<div align='center'>**DESCRIPTION OF THE DELTA PLACEMENT OF BORROWED ADSs AND CONCURRENT OFFERING CONVERTIBLE SENIOR NOTES**</div>

Concurrently with the Delta Placement of Borrowed ADSs (as defined below), we are offering US$450,000,000 aggregate principal amount of convertible senior notes, plus up to US$50,000,000 aggregate principal amount of our convertible senior notes if the initial purchasers exercise their option to purchase additional convertible senior notes in full, in reliance on the exemption from registration provided by Rule 144A under the Securities Act (the “Concurrent Notes Offering”).

The ADS Borrower or its affiliates will use the short positions resulting from the Delta Placement of the Borrowed ADSs to facilitate privately negotiated derivative transactions, by which certain investors in our convertible senior notes, who employ a convertible arbitrage strategy, will hedge their market risk with respect to the convertible senior notes. These derivative transactions are expected to be on market-standard terms for such type of transactions. During the term of such transactions, such investors may use their synthetic short positions established thereunder at their sole discretion.

The number of Borrowed ADSs to be sold hereunder will depend on what portion of investors in the Concurrent Notes Offering desire to hedge their investment in the Notes through privately negotiated derivatives transactions with the ADS Borrower or its affiliates, and will be determined at the time of pricing of the Delta Placement of Borrowed ADSs and is expected to be no greater than commercially reasonable initial short positions of such arbitrage investors. It is possible, however, that investors in the Notes in the Concurrent Notes Offering may short sell additional shares of