Company: GDHLF
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001410578-25-000935
Chunk: 73

Company: GDS Holdings Ltd
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 73
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 for the issuance and listing of REITs;  

  highly complex structuring requirements, in order to comply with PRC regulations applicable to the data center sector business and industry in mainland China;  

  potential market price volatility of the ABS and REITs and the impact of the underlying project performance on the cash flow and valuation of the ABS and REITs;  

  our ability to continue to take responsibility for colocation and managed services delivery and operations under relevant customer agreements for our existing data center assets, given the high...  

  intense competition for financing generally, and alternative investment opportunities may be available on more favorable terms to investors;  
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  challenges in securing sufficient investor interests for our operational or development data center assets and successfully negotiating mutually acceptable commercial and legal terms for the pr...  

  limited investor willingness to transact in the data center sector in China as there is not a well-established market with any generally accepted valuation benchmark for this asset class.  

Any of these factors may prevent us from being successful in monetizing our existing data center assets. Investment performance achieved and rates of return realized by any asset monetization transactions may fail to meet investor expectations. We therefore may be unable to establish and scale up asset monetization transactions in order to meet our financing objectives. If we are unable to monetize our existing data center assets, our business, results of operations and financial condition may be materially and adversely affected.

Table of Contents

The assets we sold in the monetization program involving the ABS Scheme and failure to comply with relevant laws and regulations may adversely impact our financial performance and profitability and may subject us to potential liabilities.

The future performance of the assets we sold under the monetization transaction involving the ABS Scheme may adversely affect the returns on our long-term investment in the ABS and impact our financial performance. Although the underlying assets have been deconsolidated following the sale, we remain exposed to certain financial outcomes based on their future performance. Specifically, our returns from the ABS could be adversely impacted in several ways. First, a portion of the consideration payable to us under the asset sale agreement is contingent upon the performance of the underlying assets. If these assets underperform, we may receive reduced contingent consideration or none at all. In addition, we re-invested part of the cash proceeds from the asset sale into the ABS Scheme, which is accounted for as a long-term investment. Any deterioration in the financial results of the underlying projects may