Company: GDHLF
Filing Date: 2025-05-29
Form Type: 424B5
Source: 0001104659-25-053912
Chunk: 30

Company: GDS Holdings Ltd
Filing Date: 2025-05-29
Form: 424B5
Chunk 30
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 party.

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We are subject to counterparty risk with respect to the ADS Lending Agreement.

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We may become a passive foreign investment company, which could result in adverse U.S. federal income tax consequences to U.S. investors.

**Our Corporate Structure and Contractual Arrangements with the Consolidated Affiliated Entities**

GDS Holdings Limited is not an operating company in mainland China, but instead is a holding company incorporated as a Cayman Islands exempted company. PRC laws and regulations impose certain restrictions or prohibitions on foreign ownership of companies that engage in telecommunications-related businesses, including the provision of VATS. Our internet data center businesses are classified as VATS by the PRC government. Accordingly, we operate substantially all of these business operations in mainland China through the consolidated VIEs and their subsidiaries, as well as through our subsidiaries, and rely on contractual arrangements, described below, to control the business operations of the consolidated VIEs. GDS Holdings Limited has no equity ownership in the consolidated VIEs. Revenues contributed by the VIEs and their subsidiaries accounted for 96.7%, 97.0%, 96.1% and 98.0% of our total revenues for the years of 2022, 2023, 2024 and the three months ended March 31, 2025, respectively. As used in this prospectus supplement, “we,” “us,” “our company,” “the Company” or “our” refers to GDS Holdings Limited, an exempted company incorporated in the Cayman Islands with limited liability on December 1, 2006 and, where the context requires, its consolidated subsidiaries and the consolidated affiliated entities, including the variable interest entities and their subsidiaries, from time to time. Investors in our ADSs are not purchasing an equity interest in the consolidated VIEs and their subsidiaries in mainland China, but instead are purchasing an equity interest in a holding company incorporated as a Cayman Islands exempted company and its subsidiaries (excluding the VIEs and their subsidiaries).

In addition, aside from our direct operations through our consolidated subsidiaries and consolidated VIEs, we also derive a significant proportion of our value and results of operations from DayOne, our equity investee, in which we hold a 35.6% equity stake and which develops and operates data centers in Southeast Asia and Northeast Asia. See “Item 4 — Information on the Company — B. Business Overview — Our Equity Investment in DayOne” and “Item 5 — Operating and