CHINA TOWER (788) Q2 2026 earnings summary

Executive summary

• Net profit rose 30.1% year-on-year to RMB 7,489 million in H1 2026, despite a 1.8% decline in operating revenue to RMB 48,693 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 RMB 0.19122, reflecting a proactive dividend policy and commitment to shareholder returns.

• The company advanced technological innovation, with a 132% increase in granted patents, two new international standards approved, and R&D investment up 23%.

• Commercialization of technological achievements and large-scale application of innovative products, including 5G liquid coaxial cables and AI-powered platforms, supported quality and efficiency.

Financial highlights

• Operating expenses fell 8.3% year-on-year to RMB 37,580 million, with depreciation and amortization down 25.2%.

• EBITDA was RMB 30,252 million, down 11.6% year-on-year, mainly due to lease terminations and increased maintenance costs.

• Operating cash flow was RMB 7,135 million, down 75.1% year-on-year, with free cash flow at RMB -4,515 million.

• Total assets stood at RMB 351,240 million, with a liability to asset ratio of 41.4%.

• Basic and diluted EPS was RMB 0.4284, up from RMB 0.3293 year-over-year.

Outlook and guidance

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

• Plans to drive sustained growth in the Two Wings business through product innovation, business layout optimization, and expansion into digital intelligence and energy services.

• Emphasis on enhancing operational efficiency, resource sharing, digital transformation, and green, low-carbon initiatives aligned with "Dual Carbon" goals.