CHINA TOWER (788) H2 2025 earnings summary

Executive summary

• Net profit increased 8.4% year-on-year to RMB 11.63 billion, reflecting robust operational performance and effective multi-pillar development.

• Operating revenue grew 2.7% year-on-year to RMB 100.41 billion, supported by steady growth in Smart Tower and energy businesses.

• Dividend payout ratio rose to 77%, with a 9.8% increase in total dividend compared to last year.

• R&D expenses surged over 80% year-on-year, highlighting a strong focus on technological innovation.

• Cash flow remained robust, with net cash from operating activities at RMB 56.12 billion and free cash flow at RMB 26.63 billion.

Financial highlights

• Operating revenue: RMB 100.41 billion, up 2.7% year-on-year.

• Net profit: RMB 11.63 billion, up 8.4% year-on-year.

• EBITDA: RMB 65.81 billion, down 1.1% year-on-year, margin at 65.5%.

• CapEx: RMB 29.49 billion, down 7.7% year-on-year; CapEx for Smart Tower and energy facilities up 24.8%.

• Free cash flow: RMB 26.63 billion, up 51.9% year-on-year.

Outlook and guidance

• Will deepen the One Core and Two Wings strategy, focusing on digital transformation, 5G-A, and emerging sectors like low-altitude economy and edge computing.

• Plans to enhance operational efficiency, lean management, and technological innovation for sustainable growth.

• Aims to further expand broadband, 5G coverage, and strengthen Smart Tower and energy businesses.