Aug 18, 2026 earnings call — Wholesale order wins and CATL partnership
Secured 347 megawatts in new order wins this quarter, led by wholesale IDC.
Revenue $0.4B (est $0.4B) · EPS $-0.06 (est $-0.06)
Key quotes
"In the second quarter, we secured a total of 347 megawatts in new order wins, primarily driven by accelerating growth in our wholesale IDC business, which contributed 345 megawatts, together with the 517 megawatts of orders disclosed in our last quarter earnings results."
"The parties plan to jointly develop a 3-layer integrated compute energy ecosystem comprising gigawatt-scale compute energy facilities distributed compute energy networks and a zero carbon token ecosystem by combining our complementary strengths and deepening cooperation across technology, infrastructure and supply chains."
"By the end of the second quarter, our total capacity exceeded 3.5 gigawatts in the Chinese Mainland."
Analyst Q&A 7
regional supply, demand, and pricing
Q (Yue Tang · Morgan Stanley): The analyst asked for an update on supply and demand in key regions and whether pricing outlook has changed.
A: Management said overall compute demand is steadily rising, driven by AI training and inference. They said supply is expanding but there is a structural mismatch that keeps the market tight, and new-project pricing will reflect peer rates, costs, scarcity and target returns.
"Now with regard to the demand, we are seeing that the overall compute demand steadily trending up." — Wen Teng (PRESIDENT)
move-in pace and CapEx, overseas
Q (Timothy Zhao · Goldman Sachs): The analyst asked about move-in pace in Q2 and into Q3, and about the CapEx outlook including timeline and unit economics for overseas projects.
A: Management said move-ins were steady in Q2 and they expect a marginally faster move-in pace in H2 as domestic chip production ramps up. On CapEx, they said spending is driven by demand and deliveries and they will disclose full-year CapEx once they set a quantitative delivery target; for overseas, they have 500 megawatts reserved and will take a prudent, order-driven approach, using own funds initially for land and starting fit-out only after securing firm orders.
"On CapEx, essentially, our logic is that our CapEx is centered around demand as well as our actual deliveries." — Peter Zhang
overseas strategy and CATL deal
Q (Huiqun Li · BofA): The analyst asked for more detail on overseas strategy and target countries for next 2–3 years, and for an update on the CATL cooperation and the Shandong Hi-Speed transaction.
A: Management said the first overseas delivery will be in Southeast Asia while they evaluate opportunities in the Middle East and Europe and stay responsive to customer needs. On CATL, they said they issued a joint press release and formed a full-scale strategic partnership focused on a 3-layer integrated architecture and other energy-computing initiatives, and they will disclose more progress when definitive.
"The goal is to build a national and eventually global network and to become the defining player in digital energy infrastructure for the AI era." — Wen Teng (PRESIDENT)
why bookings concentrated in one customer
Q (Xinyi Wang · UBS): The analyst asked why Q2 new bookings were concentrated in one customer and how the customer mix might evolve, including potential wins from emerging AI leaders.
A: Management said they signed a cumulative 862 megawatts of new orders in H1, including a 510-megawatt order with a leading Internet company and a 345-megawatt Q2 order with another leading computing enterprise. They said they will deepen work with Internet companies and hyperscalers while expanding to AI model companies and other verticals to diversify the wholesale customer mix.
"As you have noted that we have signed a cumulative 862 megawatt new orders in the first half, specifically 510-megawatt order was signed with a leading Internet company." — Wen Teng (PRESIDENT)
OpEx sustainability and cost cuts
Q (Yiming Li · Citi): The analyst asked if the strong OpEx performance in Q2 is sustainable and if the company has guidance on costs.
A: Management said cost reduction is an ongoing theme and they saw preliminary results in Q2. They plan to use economies of scale, headcount control and more AI tools to reduce operational cost and will disclose concrete benefits in a timely manner.
"Cost reduction has been an ongoing theme for us, and we have already seen some prelim results in Q2." — Peter Zhang
new land banks and gross margin drop
Q (Ethan Zhang): The analyst asked where the newly added resources are located and about power approvals, and why Q2 cash gross margin declined sequentially.
A: Management said they added 900 megawatts of new resources in China in Q2, mainly in Inner Mongolia and East China, and will keep obtaining resources in Inner Mongolia, especially Wulanchabu. They said the gross-margin decline was due to higher Q2 utility usage from a pass-through mechanism and a one-off gain in Q1.
"In Q2, we added 900 megawatt new resources in China." — Wen Teng (PRESIDENT)
conversion time for reserved capacity
Q (Mingran Li · CICC): The analyst asked how long reserved capacity typically takes to convert to orders and whether more large-scale capacity could be used in H2.
A: Management said reserved capacity is pre-locked expansion at the same site and that historically all customer reservations have converted to firm orders, so the backlog has high conversion certainty. They added timing depends on each customer's deployment schedule and conversions will happen in batches; they will report actual conversions in future quarterly reports.
"Historically, all customer reservations have converted to firm orders, making this a high-quality backlog with a strong conversion certainty." — Wen Teng (PRESIDENT)