CHINA TOWER (00788) reported solid bottom-line growth for the six months ended 30 June 2026, with profit attributable to shareholders up 30.10% year on year to RMB 7.49 billion. The improvement was driven by cost efficiencies and lower depreciation, offsetting a slight decline in top-line performance.

Operating revenue slipped 1.80% to RMB 48.69 billion. Traditional carrier-oriented TSP business remained the largest contributor at RMB 40.36 billion (-5.00%), weighed down by a 6.70% fall in Tower revenue to RMB 35.26 billion. DAS revenue grew 9.20% to RMB 5.09 billion. “Two Wings” continued to scale, with Smart Tower revenue up 12.80% to RMB 5.33 billion and Energy revenue up 17.30% to RMB 2.59 billion; the Two Wings segment now accounts for 16.30% of group revenue.

EBITDA fell 11.60% to RMB 30.25 billion, trimming the EBITDA margin to 62.10% (-6.90 ppts). Lower depreciation (-25.20% to RMB 19.14 billion) and disciplined operating costs supported the sharp rebound in net margin to 15.40%.

Net cash from operating activities stood at RMB 7.14 billion, down RMB 21.54 billion on longer receivable cycles and higher bill settlements. Capital expenditure was tightly managed at RMB 11.65 billion (-6.00%), focused on new site builds, asset upgrades and continued investment in Smart Tower and Energy platforms. Free cash flow turned negative at –RMB 4.52 billion.

Total assets reached RMB 351.24 billion, with interest-bearing liabilities of RMB 101.39 billion. Net debt came in at RMB 94.74 billion, lifting the gearing ratio to 31.50% (+3.80 ppts from end-2025).

The Board approved an interim dividend of RMB 0.19122 per share (pre-tax), consistent with prior-year payout. The dividend is scheduled for payment on or around 30 October 2026 to shareholders on record as of 11 September 2026.

Management reaffirmed the “One Core, Two Wings” strategy, prioritising resource sharing for carriers, expansion in spatial digital-governance solutions, and scaling battery exchange and power-backup services while maintaining prudent capital allocation and technology R&D investment.