Company: GDHLF
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001410578-25-000935
Chunk: 277

Company: GDS Holdings Ltd
Filing Date: 2025-04-28
Form: 20-F
Item: Item 5
Chunk 277
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39.5 million as a result of certain data centers commencing operations in 2023, (ii) a decrease in professional fees of RMB20.7 million, (iii) a cash reimbursement from the Company’s ADS depositary bank of RMB22.1 million in 2023 and (iv) a decrease in other expenses of RMB14.9 million, partially offset by an increase in share-based compensation of RMB16.1 million as a result of increased headcount in 2023.

Research and Development Expenses. Our research and development expenses increased by 19.6% to RMB38.2 million in 2023 from RMB31.9 million in 2022. This increase was primarily attributable to more research and development activities incurred.

Impairment Losses of Long-Lived Assets. Impairment losses of long-lived assets of RMB3,013.4 million was provided in 2023 mainly due to lower sales price and slower move-in within fixed lease terms for the leased properties and proactive plans to consolidate certain data centers.

Other Income (Expenses)

Interest Income. Our interest income increased by 122.6% to RMB94.0 million in 2023 from RMB42.2 million in 2022, which was primarily a result of the arrangement of several higher interest rate time deposits with the bank.

Interest Expenses. Our interest expenses increased by 3.1% to RMB1,936.5 million in 2023 from RMB1,878.2 million in 2022. This increase was primarily a result of an increase in borrowings and convertible bonds payable.

Government Grants. Income from government grants decreased by 11.3% to RMB84.4 million in 2023 from RMB95.2 million in 2022, primarily due to the decrease in additional deduction of input VAT.

Foreign Currency Exchange (Loss) Gain, net. Changes in currency rates resulted in a loss of RMB1.6 million in 2023 as compared to a loss of RMB11.1 million in 2022, primarily due to fluctuation of U. S. dollar against the RMB.

Income Tax Benefits (Expenses)

Income tax benefits were RMB15.6 million in 2023, compared to income tax expenses of RMB276.2 million in 2022. Our income tax benefits (expenses) are comprised of current tax expense, mainly attributable to certain profitable subsidiaries in mainland China, and