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China Tower Reports 30.1% Net Profit Growth in H1 2026 Amid Strategic Focus on Core Competitiveness and Two Wings Expansion

By Burstable Editorial Team
China Tower's interim results show a 30.1% increase in net profit despite a slight revenue dip, driven by strategic focus on core tower business and rapid growth in Smart Tower and Energy segments.
China Tower Reports 30.1% Net Profit Growth in H1 2026 Amid Strategic Focus on Core Competitiveness and Two Wings Expansion

China Tower Corporation Limited (Stock Code: 0788.HK), the world's largest telecommunications infrastructure service provider, has announced its interim results for the six months ended 30 June 2026. The company reported a net profit attributable to owners of RMB 7,489 million, a 30.1% increase year-on-year, despite operating revenue declining 1.8% to RMB 48,693 million. This performance underscores the effectiveness of the company's "One Core and Two Wings" strategy, which focuses on strengthening core competitiveness while expanding into smart tower and energy services.

The company's EBITDA decreased by 11.6% to RMB 30,252 million, with an EBITDA margin of 62.1%. Basic earnings per share rose to RMB 0.4284, up 30.1% from the prior year. The board has declared an interim dividend of RMB 0.19122 per share, a 44.3% increase, reflecting the company's commitment to shareholder returns.

In the core Tower business, revenue declined 6.7% to RMB 35,263 million, impacted by customers' network deployment optimizations and the continued development of the unified 4G network by China Telecom and China Unicom. However, the company managed 2.172 million tower sites, an increase of 23,000 sites since the end of 2025, and maintained a tenancy ratio of 1.69. The DAS (Distributed Antenna Systems) business, however, grew 9.2% to RMB 5,094 million, driven by increased coverage in buildings and transportation networks, with cumulative building coverage reaching 16.17 billion square meters and railway tunnel and subway coverage extending to 36,111 kilometers.

The "Two Wings" businesses—Smart Tower and Energy—continued their rapid growth, collectively generating RMB 7,923 million in revenue, which now accounts for 16.3% of total operating revenue (up 2.3 percentage points). Smart Tower revenue grew 12.8% to RMB 5,332 million, with over 260,000 "digital towers" serving more than 10 industries, including land resources, emergency response, and environmental protection. The company has also made strides in the low-altitude economy and AI-driven spatial governance solutions. Energy business revenue surged 17.3% to RMB 2,591 million, with battery exchange services contributing RMB 1,595 million, up 20.6%. The company now serves approximately 1.493 million battery exchange users, maintaining its market leadership.

China Tower's focus on innovation is evident in its increased R&D investment, up 23%, and a 132% jump in patent authorizations. The company received a second prize in the State Science and Technology Progress Award and led the initiation of two international standards. Technological achievements, including new 5G leaky cables and the Tower Monitoring platform, have achieved large-scale commercial application.

Looking ahead, Chairman Zhang Zhiyong emphasized the company's alignment with national strategies like "Cyberpower", "Digital China", and "Dual Carbon" goals. "We will remain anchored in the 'One Core and Two Wings' strategic positioning, focusing on strengthening our core capabilities and competitiveness, further deepening resource sharing, and improving operating efficiency, to create greater value for shareholders, customers, and society," he said.

The company's balance sheet remains robust with total assets of RMB 351,237 million and a gearing ratio of 31.5%. Net cash generated from operating activities stood at RMB 7,135 million, supporting continued investment in infrastructure and innovation.

Burstable Editorial Team

Burstable Editorial Team

@burstable

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