Financial Performance - In 2023, the company achieved operating revenue of RMB 94.009 billion, a 2.0% increase from RMB 92.170 billion in 2022[4] - The company's EBITDA for 2023 was RMB 63.551 billion, reflecting a 1.1% growth year-on-year[10] - Profit attributable to shareholders reached RMB 9.750 billion, marking an 11.0% increase compared to RMB 8.787 billion in 2022[4] - The company reported a net cash flow from operating activities of RMB 32.840 billion for 2023[10] - The company’s total operating revenue reached RMB 94.009 billion in 2023, reflecting a year-on-year growth of 2.0%, while net profit attributable to shareholders was RMB 9.750 billion, up 11.0%[29] - Total operating expenses for 2023 were RMB 79,507 million, representing 84.6% of total revenue, a decrease of 1.0 percentage points from the previous year[38] - Operating profit for 2023 was RMB 14,502 million, reflecting an 8.9% year-on-year increase[45] - The company achieved a significant reduction in net financial expenses, totaling RMB 2,784 million, down 3.3% year-on-year[42] Capital Expenditures - Capital expenditures for 2023 amounted to RMB 31.715 billion, a 21.0% increase from RMB 26.207 billion in 2022[4] - Capital expenditure on new site construction and shared renovations accounted for 53.8% of total capital expenditure in 2023, up from 55.9% in 2022[47] - The company invested RMB 8,534 million in site upgrades, representing 26.9% of total capital expenditure in 2023, compared to 23.1% in 2022[47] - Total capital expenditure for 2023 reached RMB 31,715 million, a 20.9% increase from RMB 26,207 million in 2022[47] Business Segments - Tower business revenue reached RMB 75.023 billion in 2023, a decrease of 2.8% year-on-year, with 204.6 million tower sites by year-end, a reduction of 0.009 million sites[12] - Indoor distribution business revenue increased by 22.5% year-on-year to RMB 7.14 billion, with building coverage area reaching 10.15 billion square meters, a growth of 37.3%[12] - Smart connection business generated RMB 7.283 billion in revenue, up 27.7% year-on-year, with tower visual connection revenue at RMB 4.727 billion, accounting for 64.9% of smart connection revenue[13] - Energy business revenue grew by 31.7% year-on-year to RMB 4.214 billion, with tower battery swap revenue at RMB 2.067 billion, representing 49.1% of energy business revenue[14] - The revenue from the operator business for 2023 was RMB 82.163 billion, a decline of 1.0% year-over-year[21] - The non-tower business revenue, including indoor distribution and two-wing businesses, grew at a double-digit rate, increasing its share of total revenue from 16.2% to 20.2%[30] Market Expansion and Strategy - The company is focusing on expanding its smart connection and energy services, with significant growth in these segments of 27.7% and 31.7% respectively[4] - The company aims to enhance core competitiveness and implement a "five-type" enterprise strategy to drive high-quality development[16] - The company plans to expand its market share in indoor distribution and leverage existing resources to meet customer needs effectively[16] - The company is focusing on digital governance and smart transformation, enhancing its platform, algorithm, and application capabilities to support industry upgrades[16] - The company is committed to achieving the "dual carbon" goals through clean energy initiatives and infrastructure improvements[15] Shareholder and Dividend Information - The board proposed a final dividend of RMB 0.03739 per share, representing 75% of the distributable profit for the year[10] - The company emphasizes shareholder value and has adopted a dividend policy, planning to distribute 50% or more of the annual distributable profits as dividends, subject to board approval[69] - The dividend is expected to be paid around June 28, 2024, if approved[70] - For H-share non-resident corporate shareholders, a 10% corporate income tax will be withheld on the proposed final dividend[70] Corporate Governance and Management - The company has a strong management team with extensive experience in finance and telecommunications, including key personnel such as the Chief Financial Officer and Vice Presidents[66][65] - The board of directors consists of nine members, all male, with a commitment to gender diversity by aiming to appoint at least one female director by December 31, 2024[175] - The company has established policies to avoid potential conflicts of interest and ensure objective decision-making by the board[177] - The company has implemented a comprehensive internal control and risk management system to enhance governance standards and transparency[162] Related Party Transactions - The company has established ongoing related party transactions with major shareholders, including China Mobile, China Unicom, and China Telecom[99] - The annual cap and transaction amounts for services provided to China Mobile and its subsidiaries totaled RMB 44,020 million, with a transaction amount of RMB 41,819 million for the year 2023[106] - The company has entered into a new value-added service framework agreement with China Mobile Group for the period 2024-2026, effective from January 1, 2024[127] Social Responsibility and Community Engagement - The company has completed over 20 major communication support tasks for national and international events in 2023, demonstrating its commitment to social responsibility[15] - The company actively fulfills its social responsibility by promoting resource-saving practices and providing uninterrupted power and maintenance services to telecommunications operators and smart business clients[151] Risk Management - The company relies heavily on three telecommunications operators for the majority of its revenue, which poses a risk if these clients' demand fluctuates due to budget changes or strategic shifts[200] - The company faces significant risks related to the overall growth of the telecommunications tower infrastructure industry, which directly impacts its business performance[200] - The supervisory board is responsible for monitoring the performance of directors and senior management, ensuring compliance with financial reporting and legal regulations[196]

Investment Rating - The investment rating for China Tower is upgraded to "Buy-B" for the first time [2] Core Views - The company reported a revenue of 94.009 billion yuan in 2023, a year-on-year increase of 2.0%, and a net profit attributable to shareholders of 9.750 billion yuan, up 11.0% year-on-year [1][4] - The overall revenue growth is maintained, with an improvement in profitability, driven by a decrease in major operating costs and the expansion of its two wings business, which includes smart connection and energy services [1][5] - The company is expected to benefit from the growth of the digital economy and the instant delivery industry, with projected revenues for 2024-2026 of 98.362 billion, 102.688 billion, and 106.567 billion yuan, respectively [2][6] Summary by Sections Financial Performance - In 2023, the company achieved an operating income of 94.009 billion yuan, with a slight decline in operator business revenue to 82.163 billion yuan, down 1.0% year-on-year [1][4] - The EBITDA reached 63.551 billion yuan, indicating a steady improvement in operational efficiency [1] - The net profit margin improved to 10.4% in 2023, with a projected increase to 10.9% in 2024 [4][8] Business Segments - The tower business revenue was 75.023 billion yuan, down 2.8%, while the indoor distribution business grew by 22.5% to 7.140 billion yuan [1][6] - The smart connection business generated 7.283 billion yuan, up 27.7%, and the energy business saw a 31.7% increase to 4.214 billion yuan [1][6] - The two wings business now accounts for 12.2% of total revenue, with significant growth potential in the electric vehicle battery swap market, projected to grow at a CAGR of 41.62% from 2023 to 2026 [1][5] Future Outlook - The company expects stable growth in the operator business from 2024 to 2027, driven by the advantages of "5G + indoor distribution" resources [2][5] - Revenue forecasts for the tower business are expected to decline slightly, while the indoor distribution, smart connection, and energy businesses are projected to grow significantly [5][6] - The company is positioned to leverage its market space and continue developing its two wings business, which is anticipated to contribute to a new round of performance growth [6][7]

h 股 c r a 票 e s e R 研 y [Table_Title] Gin Yu 余劲同 tiu Company Report: China Tower (00788 HK) 中文版 究 q (852)2509 2113 E 公司报告： 中国铁塔 (00788 HK) Chinese version gin.yu@gtjas.com.hk 19 March 2024 [Table_Summary] 2023年盈利稳定增长；折旧期结束打开股息增长空间，“买入” tr  我 我们 们维 预持 计中 20国 24铁 -2塔 0（ 26“ 财公 年司 每” 股） 收的 益目 分标 别价 为为 人1 民.20 币港 0.元 06， 5维 元持 投 人资 民评 币级 0.为 07“ 6元买 /入 人” 民。 公 o [RTaabtlien_gR:a nk] Buy p / e 司 R 币0.124元。由于大量铁塔的折旧年限将在2025年第四季度到期，将为利润释放 Maintained y 报 n a 提供充足的空间，我们预计2026年派息水平将大幅上升；因此，我们维持“买入” 评级： 买入 (维持) p 告 m ...

智通财经APP获悉，野村发布研究报告称，维持中国铁塔(00788)“中性”评级，目标价从0.86港元升至0.96港元。该行认为5G投资放缓，导致增长仍疲弱，去年收入同比增长2%，盈利增长11%，分别较该行预测低0.4%及1%，期内EBITIDA增长1.1%，符合预期。管理层解释，去年塔类服务收入同比下降2.8%，主要是受2022年底与三大电讯营运商签订的新五年商务定价协议所拖累，可比口径计算该业务收入实际同比增长2%。该行认为，由于电讯商5G投资放缓，预期塔类业务增长今年仍将面临阻力，同时新兴业务尚未完全实现健康盈利能力。 ...

Revenue Performance - Revenue reached RMB 940.09 billion, a year-on-year increase of 2.0%[1][3] - Total revenue for 2023 reached RMB 11.497 billion, accounting for 12.2% of overall revenue, an increase of 2.5 percentage points year-over-year[6] - Revenue for 2023 reached RMB 94,009 million, a 2% increase from RMB 92,170 million in 2022[13] - Total revenue for 2023 reached RMB 94,009 million, a slight increase from RMB 92,170 million in 2022[21] - Revenue for 2023 reached RMB 94.009 billion, a year-on-year increase of 2.0%[44] Operator Business Revenue - Operator business revenue was RMB 821.63 billion, a year-on-year decrease of 1.0%, with tower business revenue at RMB 750.23 billion, down 2.8%, and indoor distributed antenna system (DAS) business revenue at RMB 71.40 billion, up 22.5%[1] - Tower business revenue decreased to RMB 75,023 million in 2023 from RMB 77,204 million in 2022, while indoor business revenue increased to RMB 7,140 million from RMB 5,827 million[21] - Tower business revenue decreased by 2.8% to RMB 75.023 billion in 2023[47] - Indoor coverage business revenue grew by 22.5% to RMB 7.14 billion, accounting for 7.6% of total revenue[48] Smart Connectivity Business - Smart connectivity business revenue was RMB 72.83 billion, a year-on-year increase of 27.7%[1] - Smart Connectivity business revenue in 2023 was RMB 7.283 billion, a 27.7% increase year-over-year, with Tower Video business contributing RMB 4.727 billion, making up 64.9% of Smart Connectivity revenue[6] - Smart connectivity business revenue grew to RMB 7,283 million in 2023, up from RMB 5,704 million in 2022[21] - Smart connectivity business revenue increased by 27.7% to RMB 7.283 billion, representing 7.7% of total revenue[49] Energy Business - Energy business revenue was RMB 42.14 billion, a year-on-year increase of 31.7%[1] - Energy business revenue in 2023 was RMB 4.214 billion, a 31.7% increase year-over-year, with Tower Battery Swap business contributing RMB 2.067 billion, accounting for 49.1% of Energy business revenue[7] - Energy business revenue rose significantly to RMB 4,214 million in 2023, compared to RMB 3,200 million in 2022[21] - Energy business revenue rose by 31.7% to RMB 4.214 billion, contributing 4.5% to total revenue[50] Profitability - EBITDA reached RMB 635.51 billion, a year-on-year increase of 1.1%, with an EBITDA margin of 67.6%[3] - Net profit attributable to shareholders was RMB 97.50 billion, a year-on-year increase of 11.0%, with a net profit margin of 10.4%[3] - Operating profit for 2023 was RMB 14,502 million, up 9% from RMB 13,312 million in 2022[13] - Net profit attributable to shareholders for 2023 was RMB 9,750 million, an 11% increase from RMB 8,787 million in 2022[13] - Net profit attributable to shareholders was RMB 9.75 billion, up 11.0% year-on-year[44] - EBITDA for 2023 was RMB 63.551 billion, a 1.1% increase compared to the previous year[44] - Operating profit grew by 8.9% to 14.502 billion yuan in 2023, while EBITDA reached 63.551 billion yuan, up 1.1% year-on-year[59] - Net profit attributable to shareholders increased by 11.0% to 9.750 billion yuan in 2023, with basic earnings per share of 0.0558 yuan[59] 5G and Network Development - The company completed approximately 586,000 5G construction demands in 2023, with over 95% achieved through sharing existing resources[5] - The company plans to focus on 5G, 5G-A deployment, and "dual-gigabit" network construction to drive mobile communication network development[9] - The company will increase investment in edge computing networks, AI, new energy, and 5G-A/6G technologies to drive innovation and enhance core competitiveness[10] Financial Position - Total assets as of December 31, 2023, were RMB 326,007 million, compared to RMB 305,560 million in 2022[15] - Property, plant, and equipment decreased to RMB 201,542 million in 2023 from RMB 209,377 million in 2022[15] - Total liabilities increased to RMB 128,313 million in 2023 from RMB 111,969 million in 2022[16] - Borrowings under non-current liabilities rose to RMB 49,329 million in 2023 from RMB 31,448 million in 2022[16] - Cash and cash equivalents decreased to RMB 3,955 million in 2023 from RMB 5,117 million in 2022[15] - Total equity attributable to shareholders increased to RMB 197,694 million in 2023 from RMB 193,591 million in 2022[15] - Total assets as of the end of 2023 stood at 326.007 billion yuan, with a net debt of 90.671 billion yuan and a net debt leverage ratio of 31.4%[63] - The company's asset-liability ratio was 39.4% at the end of 2023, reflecting a stable financial position[63] Operating Expenses - Operating expenses for site operations decreased to RMB 5,393 million in 2023 from RMB 5,857 million in 2022[24] - Operating expenses for 2023 totaled RMB 79.507 billion, a 0.8% increase year-on-year, with the expense-to-revenue ratio dropping by 1.0 percentage point to 84.6%[51] - Depreciation and amortization expenses decreased by 1.0% to RMB 49.049 billion, accounting for 52.2% of total revenue[53] - Total labor costs for 2023 amounted to 8.844 billion yuan, an increase of 11.4% year-on-year[55] - Site operation and support expenses decreased by 7.9% to 5.393 billion yuan in 2023, with a reduction of 464 million yuan compared to the previous year[56] - Other operating expenses increased by 11.1% to 8.813 billion yuan in 2023, driven by a 976 million yuan increase in technical support service fees[57] - Net financial expenses decreased by 3.3% to 2.784 billion yuan in 2023, reflecting the company's efforts to optimize financing costs[58] Capital Expenditures and Cash Flow - Capital expenditures for 2023 amounted to RMB 31.715 billion[44] - Capital expenditures for 2023 totaled 31.715 billion yuan, a 21.0% increase year-on-year, driven by investments in site construction and upgrades[60] - Operating cash flow for 2023 was 32.840 billion yuan, with free cash flow reaching 1.125 billion yuan, showing significant improvement in the second half[62] Dividend and Shareholder Information - The company proposed a final dividend of RMB 0.03739 per share (pre-tax) for the year ended December 31, 2023, subject to approval at the 2023 Annual General Meeting[71] - The final dividend, if approved, is expected to be paid on or around June 28, 2024, with different payment methods for domestic shareholders, H-shareholders, and Hong Kong Stock Connect investors[71] - The company will withhold and remit 10% enterprise income tax for non-resident enterprise H-shareholders when distributing the proposed final dividend[71] - For H-share individual investors, the company will withhold and remit personal income tax at rates ranging from 10% to 20% depending on the tax treaty between China and the investor's country of residence[72] - Hong Kong Stock Connect individual investors will have 20% personal income tax withheld on dividends, while enterprise investors are responsible for self-declaring and paying the tax[72] - H股股东名册将于2024年5月14日至2024年5月20日暂停办理股份过户登记手续，以确定股东出席2023年度股东周年大会并投票的权利[73] - H股股东名册将于2024年5月27日至2024年5月30日暂停办理股份过户登记手续，以确定股东收取2023年度末期股息的权利[73] - 2023年年度报告将适时发布在公司网站及香港联交所网站，并寄发给股东[73] - 公司董事会由执行董事张志勇（董事长）及高春雷，非执行董事高同庆、唐永博、刘桂清及房小兵，以及独立非执行董事董春波、胡章宏及冼汉廸组成[75] - 公司不承担因H股股东的纳税身份或税务待遇未能及时确定或不准确确定而引发的任何申索或争议的责任[73] Other Financial Metrics - Basic and diluted earnings per share for 2023 were RMB 0.0558, up from RMB 0.0503 in 2022[14] - Income tax expense increased to RMB 3,082 million in 2023, up from RMB 2,741 million in 2022[27] - Pre-tax profit for 2023 was RMB 12,832 million, compared to RMB 11,528 million in 2022[28] - Income tax expense for 2023 was RMB 3,082 million, up from RMB 2,741 million in 2022[28] - Basic earnings per share for 2023 were RMB 0.0558, compared to RMB 0.0503 in 2022[30] - Total lease liabilities as of December 31, 2023, were RMB 21,511 million, down from RMB 22,074 million in 2022[33] - Depreciation expense for right-of-use assets in 2023 was RMB 11,434 million, slightly lower than RMB 11,513 million in 2022[34] - Total cash paid for lease liabilities (principal and interest) in 2023 was RMB 10,470 million, up from RMB 10,136 million in 2022[34] - Trade receivables as of December 31, 2023, were RMB 67,543 million, a significant increase from RMB 38,350 million in 2022[36] - Trade receivables from China Mobile Group increased to RMB 34,869 million in 2023, up from RMB 17,791 million in 2022[38] - Bank acceptance bills included in trade receivables as of December 31, 2023, were RMB 5,945 million, compared to RMB 1,528 million in 2022[38] - Commercial acceptance bills included in trade receivables as of December 31, 2023, were RMB 18,922 million, up from RMB 7,792 million in 2022[38] Strategic Focus - The company aims to accelerate market expansion in the Energy business, focusing on battery swap network layout and maintaining a leading position in the market[10] - The company will increase investment in edge computing networks, AI, new energy, and 5G-A/6G technologies to drive innovation and enhance core competitiveness[10] Miscellaneous - The company's restricted stock incentive plan failed to meet the unlocking conditions for the third time in 2023, resulting in 30% of the restricted stock being repurchased at the grant price[68]

智通财经APP获悉，高盛发布研究报告称，予中国铁塔(00788)“中性”评级，对2023年净利预测基本上保持不变，最多上调2024-2025年净利润预测3%，目标价从0.98港元升11%至1.09港元。公司预定3月18日公布2023年业绩，预计2023年第四季度收入同比增2%至240亿人民币，EBITDA同比增2.4%至161亿元人民币，净利润同比增13.7%至27亿元人民币，2023年全年净利润为100亿元人民币，同比增14.5%。 该行主要关注的问题包括：1)未来股息政策：尤其是在2026年，由于折旧成本降低，中国铁塔可能会出现一次性强劲的净利润增长。预计2024年派息比率或升到100%。2)2024年增长指引。在盈利方面，预计2024年EBITDA利润率下降1个百分点。3)现金流量恢复状况。过去几年，中国铁塔利用额外的自由现金流来偿还债务。展望未来，该公司可能会继续在加强资产负债表和改善股息支付之间保持平衡。 因此高盛料潜在的股息上涨将成为盈利的关键。 ...

Revenue Performance - The company's operating revenue for the first three quarters of 2023 was RMB 70.151 billion, a year-on-year increase of 2.1%[2] - Revenue from operator business was RMB 61.669 billion, a decrease of 0.8% year-on-year; tower business revenue was RMB 56.397 billion, down 2.7%[2] - Indoor distributed antenna system (室分) revenue increased by 24.5% year-on-year to RMB 5.272 billion[2] - Smart connection business revenue grew by 28.8% year-on-year to RMB 5.169 billion[2] - Energy business revenue rose by 32.0% year-on-year to RMB 3.041 billion[2] Profitability - EBITDA for the first three quarters was RMB 48.103 billion, reflecting a 1.4% increase year-on-year[2] - Profit attributable to shareholders was RMB 7.347 billion, a year-on-year increase of 14.8%[2] Operational Metrics - As of September 30, 2023, the number of tower sites was 2.054 million, with 3.651 million tenants, an increase of 68,000 tenants from the end of the previous year[3] Strategic Goals - The company aims to enhance its operational capabilities and service offerings to support stable growth in the operator business and further develop its smart connection and energy businesses[3] - The proportion of revenue from the two wings business increased from 9.2% in the same period last year to 11.7%[3]

Financial Performance - In the first half of 2023, the company's operating revenue reached RMB 46.461 billion, a year-on-year increase of 2.2%[5] - The company's profit attributable to shareholders was RMB 4.841 billion, reflecting a 14.6% increase compared to the same period last year[11] - The company's EBITDA for the first half of 2023 was RMB 32.021 billion, with an EBITDA margin of 68.9%[11] - Operating revenue for the six months ended June 30, 2023, was RMB 46,461 million, an increase of 2.2% from RMB 45,479 million in the same period of 2022[36] - Operating profit for the same period was RMB 7,414 million, up 4.6% from RMB 7,089 million year-on-year[36] - Profit for the period attributable to equity holders was RMB 4,841 million, representing a 14.6% increase compared to RMB 4,224 million in the previous year[36] - Basic and diluted earnings per share for the period were RMB 0.0277, compared to RMB 0.0242 in the same period last year[36] Revenue Breakdown - The revenue from the operator business was RMB 40.905 billion, a decline of 1.1% year-on-year, but a 3.4% increase when excluding the impact of business pricing agreements[14] - The smart connection business revenue grew by 31.0% year-on-year, reaching RMB 3.386 billion[5] - The energy business revenue increased by 38.5% year-on-year, totaling RMB 1.975 billion[5] - The two wings business generated revenue of RMB 5.361 billion, accounting for 11.5% of total operating revenue, an increase of 2.7 percentage points year-on-year[16] - In the first half of 2023, the smart connection business achieved revenue of RMB 3.386 billion, a year-on-year increase of 31.0%, with the tower vision business contributing RMB 2.076 billion, accounting for 61.3% of the smart connection revenue[17] - The energy business generated revenue of RMB 1.975 billion in the first half of 2023, representing a year-on-year growth of 38.5%, with the tower battery swap business contributing RMB 0.982 billion, accounting for 49.7% of the energy business revenue[17] Capital Expenditures and Investments - Capital expenditures for the first half of 2023 amounted to RMB 12.822 billion, a significant increase of 41.1% year-on-year[5] - The total cost of property, plant, and equipment additions for the six months ended June 30, 2023, was RMB 15,697 million, significantly higher than RMB 8,423 million for the same period in 2022[65] - The net cash used in investing activities was RMB (15,315) million, compared to RMB (11,580) million in the previous year, indicating increased investment[43] Cash Flow and Financial Position - The net cash flow from operating activities was RMB 11.555 billion, a decrease of 63.1% compared to the previous year[5] - For the six months ended June 30, 2023, the operating cash flow generated was RMB 13,502 million, a decrease of 59% from RMB 32,995 million in the same period of 2022[43] - The cash and cash equivalents at the end of the period were RMB 3,140 million, down from RMB 6,908 million at the end of the previous year[43] - As of June 30, 2023, the company's total assets were RMB 318.063 billion, with total liabilities of RMB 125.284 billion, resulting in a debt-to-asset ratio of 39.4%[32] Strategic Focus and Development - The company plans to continue focusing on the "one body, two wings" strategic layout, enhancing value and promoting high-quality development in the second half of the year[20] - The company aims to leverage the advantages of shared development policies and enhance service capabilities to meet customer needs more effectively, particularly in the 5G indoor coverage construction[20] - The company is committed to increasing R&D investment in key technologies such as intelligent operation and maintenance, edge computing networks, and video AI algorithms to enhance innovation capabilities[21] - The smart connection business will focus on transforming communication towers into digital towers and data rooms, emphasizing digital governance in various sectors[20] Compliance and Governance - The company emphasizes compliance management and risk control to ensure sustainable development and high-quality growth[18] - The company has adhered to the Corporate Governance Code during the six months ending June 30, 2023[122] - The Audit Committee has reviewed the accounting standards and practices adopted by the company[121] - The company has adopted a securities trading code for directors and employees that aligns with the standards set out in the listing rules[123] Shareholder Information - The company approved a final dividend of RMB 0.03232 per share for the year ended December 31, 2022, totaling approximately RMB 5,689 million[78] - No interim dividend was declared for the six months ended June 30, 2023, consistent with the previous year[78] - As of June 30, 2023, China Mobile Group held 49,150,953,709 shares, representing 38.00% of the relevant class of shares and 27.93% of the total issued shares[117] - China Unicom Group held 36,345,836,822 shares, accounting for 28.10% of the relevant class of shares and 20.65% of the total issued shares as of June 30, 2023[118] - China Telecom Group held 36,087,147,592 shares, which is 27.90% of the relevant class of shares and 20.50% of the total issued shares as of June 30, 2023[118]

Financial Performance - The company's operating revenue for the first half of 2023 reached RMB 46.461 billion, a year-on-year increase of 2.2%[3] - The EBITDA for the first half of 2023 was RMB 32.021 billion, with an EBITDA margin of 68.9%[3] - Profit attributable to shareholders was RMB 4.841 billion, representing a year-on-year growth of 14.6%[3] - Operating revenue for the six months ended June 30, 2023, was RMB 46,461 million, a 2.2% increase from RMB 45,479 million in the same period of 2022[14] - Operating profit for the same period was RMB 7,414 million, up from RMB 7,089 million, reflecting a growth of 4.6%[14] - Net profit attributable to shareholders for the period was RMB 4,841 million, compared to RMB 4,224 million in the previous year, representing a 14.6% increase[14] - The company reported a basic and diluted earnings per share of RMB 0.0277, an increase from RMB 0.0242 in the prior year[14] - The company reported a net profit attributable to shareholders of RMB 4.841 billion, a year-on-year increase of 14.6%[50] - Basic earnings per share for the six months ended June 30, 2023, was RMB 0.0277, up from RMB 0.0242 in the same period of 2022[28] Revenue Breakdown - The revenue from the indoor distributed antenna system (室分) business grew by 24.4% year-on-year, reaching RMB 3.424 billion[6] - The energy business revenue increased by 38.5% year-on-year, totaling RMB 1.975 billion[3] - In the first half of 2023, the company's revenue reached RMB 3.386 billion, representing a year-on-year growth of 31.0%, with the tower vision business contributing RMB 2.076 billion, accounting for 61.3% of the total revenue[8] - The energy business achieved revenue of RMB 1.975 billion in the first half of 2023, a year-on-year increase of 38.5%, with the tower battery swap business generating RMB 0.982 billion, making up 49.7% of the energy business revenue[8] - Revenue from tower business was RMB 37,481 million, a decrease of 2.9% from RMB 38,592 million in the same period last year[20] - The indoor distribution business generated RMB 3,424 million, a 24.3% increase from RMB 2,753 million in the previous year[20] - The operator business revenue was RMB 40.905 billion, a decrease of 1.1% year-on-year, while the smart connection business revenue grew by 31.0% to RMB 3.386 billion, and the energy business revenue increased by 38.5% to RMB 1.975 billion[43] Assets and Liabilities - The total assets as of June 30, 2023, reached RMB 318.063 billion, with interest-bearing liabilities of RMB 92.223 billion[3] - Total assets as of June 30, 2023, amounted to RMB 318,063 million, up from RMB 305,560 million at the end of 2022, indicating a growth of 4.9%[15] - Accounts receivable and other receivables increased significantly to RMB 63,665 million from RMB 42,260 million, marking a 50.7% rise[15] - Non-current liabilities rose to RMB 64,459 million, compared to RMB 46,811 million at the end of 2022, reflecting a 37.5% increase[16] - As of June 30, 2023, total assets were RMB 318.063 billion, with total liabilities of RMB 125.284 billion, resulting in a debt-to-asset ratio of 39.4%[52] Cash Flow and Expenditures - The net cash flow from operating activities was RMB 11.555 billion, while capital expenditures amounted to RMB 12.822 billion[3] - Capital expenditures for the first half of 2023 were RMB 12.822 billion, an increase of RMB 3.737 billion compared to the previous year[51] - Operating costs for the first half of 2023 totaled RMB 39.047 billion, an increase of 1.7% year-on-year, with a cost-to-revenue ratio of 84.0%, down 0.4 percentage points from the previous year[44] - Depreciation and amortization expenses amounted to RMB 24.607 billion, a decrease of 1.1% year-on-year[45] Business Development and Strategy - The company completed approximately 325,000 5G construction demands in the first half of 2023, with over 95% achieved through existing resource sharing[6] - The two wings business (智联 and energy) generated revenue of RMB 5.361 billion, accounting for 11.5% of total revenue, an increase of 2.7 percentage points year-on-year[7] - The company plans to continue focusing on the C-end battery swap market and expand its logistics and dedicated network customer base, enhancing user scale and optimizing service systems[12] - The company aims to enhance its core capabilities in digital governance by leveraging its advantages in high-altitude and edge computing resources, transforming communication towers into digital towers[11] - The company is committed to increasing R&D investment in key technologies such as intelligent operation and maintenance, edge computing networks, and video AI algorithms to boost innovation capabilities[12] - The company has established a new five-year pricing agreement with the three major telecom operators to enhance market competitiveness[43] Risk Management and Compliance - The company emphasizes risk management and compliance, continuously improving internal control and legal compliance systems to enhance overall risk prevention capabilities[9] - The company has completed significant communication and network information security service tasks for major events, contributing to the reduction of the "digital divide" in remote areas[10] - The company has complied with the Corporate Governance Code as of June 30, 2023[54] - No contingent liabilities were reported as of June 30, 2023[56] - The company was not involved in any significant legal proceedings or arbitration during the six months ending June 30, 2023[56] Shareholder Information - The company declared a final dividend of RMB 0.03232 per share for the year ended December 31, 2022, totaling approximately RMB 5,689 million[30] - The aging analysis of accounts receivable showed that RMB 23,562 million was due within three months as of June 30, 2023[33] - Accounts receivable from China Mobile Group was RMB 28,894 million as of June 30, 2023, compared to RMB 17,791 million as of December 31, 2022[35] - The company has subsidiaries in western China that benefit from a preferential income tax rate of 15%, effective until the end of 2030[27] Forward-Looking Statements - The mid-term report will be published later on the company's and Hong Kong Stock Exchange's websites[56] - Any forward-looking statements made are based on current plans and estimates, and actual performance may differ significantly[56]

Financial Performance - The operating revenue for Q1 2023 was RMB 23.199 billion, a year-on-year increase of 2.5%[2] - Revenue from operator services was RMB 20.533 billion, a slight decrease of 1.1% year-on-year; tower business revenue was RMB 18.832 billion, down 3.0%[3] - Indoor distributed antenna system (室分) revenue increased by 27.1% year-on-year to RMB 1.701 billion[2] - Smart connection business revenue grew by 37.6% year-on-year to RMB 1.632 billion[2] - Energy business revenue surged by 47.8% year-on-year to RMB 949 million[2] - EBITDA for Q1 2023 was RMB 16.112 billion, reflecting a 2.7% increase year-on-year, with an EBITDA margin of 69.5%[3] - Profit attributable to shareholders was RMB 2.506 billion, a year-on-year increase of 15.0%[2] Operational Metrics - As of March 31, 2023, the number of tower sites reached 2.062 million, with 3.623 million tenants, a net increase of 40,000 tenants compared to the end of the previous year[3] Strategic Focus - The company aims to leverage opportunities from 5G infrastructure, digital economy, and dual carbon strategies to enhance its operational capabilities and service models[3] - The proportion of revenue from the two wings (智联 and energy) increased from 8.1% to 11.1% year-on-year[3]