CHINA TOWER (788) Q2 2026 earnings summary

Executive summary

• Net profit rose 30.1% year-on-year to RMB7,489 million in H1 2026, despite a 1.8% decline in operating revenue to RMB48,693 million.

• Revenue from the Two Wings business increased to 16.3% of total revenue, with strong growth in Smart Tower and Energy segments.

• Interim dividend per share increased by 44.3% year-on-year to RMB0.19122 (pre-tax), reflecting a proactive dividend policy.

• The company advanced technological innovation, with a 132% increase in granted patents, a 23% rise in R&D investment, and notable industry awards.

• Operating profit increased 28.8% to RMB11,111 million year-on-year.

Financial highlights

• Operating expenses fell 8.3% year-on-year to RMB37,582 million, with depreciation and amortization down 25.2%.

• EBITDA was RMB30,252 million, down 11.6% year-on-year, mainly due to lease terminations and increased maintenance costs.

• Operating cash flow was RMB7,135 million, down 75.1% year-on-year, with free cash flow at RMB-4,515 million.

• Capital expenditure was RMB11,650 million, down 6% year-on-year.

• Basic and diluted EPS was RMB0.4284, up 30.1% year-on-year.

Outlook and guidance

• The company will focus on expanding 5G and 5G-A coverage, leveraging national policy support for network upgrades.

• Plans to drive sustained growth in the Two Wings business through product innovation and business layout optimization.

• Emphasis on enhancing operational efficiency, resource sharing, and digital transformation.

• Smart Tower and Energy businesses to accelerate innovation, expand into new sectors, and enhance service offerings.

• Increased investment in R&D and technology innovation to drive future growth.