China Tower's Net Profit Surges 30.1% in H1 2026, Dividend Up 44.3%

China Tower Corporation Limited, the world's largest telecommunications infrastructure service provider, announced its interim results for the first half of 2026, showcasing a robust 30.1% increase in net profit attributable to owners, reaching RMB 7,489 million. Despite a slight 1.8% dip in operating revenue to RMB 48,693 million, the company's strategic focus on cost efficiency and shareholder returns drove profitability. The Board declared an interim dividend of RMB 0.19122 per share, a 44.3% increase year-on-year, reflecting confidence in sustained cash flow generation. EBITDA declined by 11.6% to RMB 30,252 million, with a margin of 62.1%, while capital expenditure stood at RMB 11,650 million. The company's total assets reached RMB 351,237 million, with a gearing ratio of 31.5%, up 3.8 percentage points from end-2025.

The company's core Tower business, which constitutes the majority of revenue, saw a 6.7% decline to RMB 35,263 million, impacted by customers' network optimization and the continued integration of China Telecom and China Unicom's 4G networks. However, the Distributed Antenna System (DAS) business grew 9.2% to RMB 5,094 million, supported by expansion in indoor coverage and high-value scenarios. The 'Two Wings' business, comprising Smart Tower and Energy, emerged as a growth engine, contributing RMB 7,923 million (16.3% of total revenue), up 2.3 percentage points from the prior year. Smart Tower revenue surged 12.8% to RMB 5,332 million, driven by digital tower deployments across over 10 industries, including land resources, emergency response, and environmental protection. Energy business revenue jumped 17.3% to RMB 2,591 million, fueled by battery exchange and power backup services, with 1.493 million battery exchange users, maintaining market leadership.

Chairman Zhang Zhiyong emphasized the company's alignment with national strategies like 'Cyberpower' and 'Digital China,' and its 'One Core and Two Wings' strategy. Innovation remains a key pillar, with R&D investment and team size up 23% and 22%, respectively, and patent applications growing 15%, while authorizations soared 132%. The company also made strides in AI and low-altitude economy applications, contributing to new quality productive forces. China Tower's results underscore its resilience and strategic pivot towards diversified growth areas, even as traditional tower revenue faces headwinds. The company's ability to enhance shareholder value through higher dividends and its commitment to technology leadership position it well for future opportunities in digital infrastructure.