Financial Performance - In 2018, China Tower Corporation reported operating revenue of RMB 71,819 million, an increase of 4.6% from RMB 68,665 million in 2017[6]. - EBITDA for 2018 was RMB 41,773 million, reflecting a 3.5% increase from RMB 40,357 million in 2017[6]. - The net profit for 2018 was RMB 2,650 million, which is a 36.4% increase from RMB 1,943 million in 2017[6]. - Operating profit reached RMB 9.081 billion, growing by 17.7% compared to the previous year[54]. - The company achieved an operating profit of RMB 9.081 billion in 2018, reflecting a growth of 17.7% year-on-year, with EBITDA reaching RMB 41.773 billion, accounting for 58.2% of operating revenue[63]. - The company reported a total revenue of 100 billion RMB for the fiscal year, representing a year-over-year growth of 15%[90]. - The company provided a revenue guidance of 110 billion RMB for the next fiscal year, which reflects an expected growth of 10%[92]. Operational Metrics - The number of tenants reached 300.92 thousand, representing a growth of 12.0% compared to 268.75 thousand in 2017[16]. - The average annual revenue per site increased by 5.0% to RMB 37.6 million from RMB 35.8 million in 2017[16]. - The company managed a total of 1.948 million sites by the end of 2018, up 4.0% from 1.872 million in 2017[16]. - The average number of tenants per site increased to 1.55 from 1.44, marking a 7.6% growth[16]. - The number of cross-industry tenants surged by 654.8% to 14.07 thousand from 1.86 thousand in 2017[16]. - The total area covered by indoor distribution business reached 1.461 billion square meters, a growth of 52.5% year-over-year[44]. - The number of indoor distribution sites reached 22,900, with a tenant count of 31,400, marking a 33% increase from the previous year[44]. Capital Expenditure and Investments - Capital expenditure for the year was RMB 26,466 million, a decrease of 39.6% compared to RMB 43,836 million in 2017[6]. - The company plans to allocate 60% of the net proceeds, approximately RMB 302.14 billion, for capital expenditures, with the remaining funds utilized for loan repayment and other corporate purposes[68]. - Capital expenditures for 2018 totaled RMB 26.466 billion, with 66.2% allocated to new site construction and shared renovations[65]. Dividend and Shareholder Returns - The proposed final dividend for the year ending December 31, 2018, is RMB 0.225 per share, with a payout ratio of 55%[32]. - The board proposed a final dividend of RMB 0.225 per 100 shares (pre-tax) for the year ended December 31, 2018, subject to shareholder approval at the annual general meeting[98]. - The company aims to distribute at least 50% of its annual distributable profits as dividends, considering factors such as global dividend levels in the communication tower infrastructure sector and the company's financial performance[97]. Market Expansion and Strategic Initiatives - The company aims to solidify its position in the telecommunications infrastructure market while expanding into new areas such as data services and environmental monitoring[34]. - The company plans to enhance site planning capabilities to support operators' 5G construction needs, focusing on cost-effective solutions[52]. - The company is actively participating in the 5G scale testing project across 19 provinces and 23 cities, providing infrastructure and testing environments[51]. - The company established a Southeast Asia Tower Limited Liability Company in December 2018 to expand into international markets[47]. Risk Management and Challenges - The company emphasizes the importance of selecting and maintaining suitable sites for its operations, which is critical for business development[198]. - The pricing of services is influenced by construction costs and market conditions, with potential risks to profitability if costs cannot be passed on to customers[198]. - The emergence of 5G technology may require substantial capital expenditures for the deployment of high-density micro-stations, impacting the company's revenue and operational performance[198]. - The company has implemented a comprehensive risk management framework to address strategic, market, and operational risks, ensuring effective control measures are in place[199]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and continuously improving its governance level and internal control systems[161]. - The board of directors consists of seven members, including three executive directors, three non-executive directors, and one independent non-executive director[173]. - The company has established appropriate insurance arrangements for directors, supervisors, and senior management against potential legal actions[178]. - The board meets regularly to supervise the preparation of accounts, ensuring they reflect the company's financial status accurately[178]. Related Party Transactions - Revenue from the top five customers, including China Mobile and its subsidiaries, accounted for 98.8% of the total revenue for the year, with the largest customer contributing 54.2%[129]. - The total transaction amount for services provided to China Mobile and its subsidiaries was RMB 38,860 million, with tower products accounting for RMB 36,364 million[136]. - The company has established property leasing framework agreements with major telecom operators, allowing for the rental of various properties[139].