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]

Financial Performance - In 2022, the company's operating revenue reached RMB 92.17 billion, a year-on-year increase of 6.5%[8]. - The profit attributable to shareholders was RMB 8.787 billion, reflecting a 19.9% increase compared to the previous year[8]. - The company's EBITDA was RMB 62.844 billion, with an EBITDA margin of 68.2%[24]. - The company achieved a net cash flow from operating activities of RMB 65.134 billion, up 7.7% year-on-year[8]. - The company's revenue from operator business reached RMB 83.031 billion in 2022, a year-on-year increase of 3.5%[39]. - The company reported a profit attributable to shareholders that grew by 17.6% on a comparable basis after adjusting for certain accounting changes[46]. - The EBITDA for 2022 was RMB 62.84 billion, a slight decline of 0.3% compared to the previous year[47]. - Operating expenses totaled RMB 78.86 billion, a year-on-year increase of 7.2%[55]. - The company achieved total operating revenue of RMB 92.17 billion in 2022, up from RMB 86.585 billion in 2021, marking a growth of 7.0%[46]. Revenue Breakdown - Tower business revenue reached RMB 77.204 billion, a year-on-year increase of 1.8%, with 745,000 5G construction demands completed, over 96% achieved through resource sharing[27]. - Indoor distribution business revenue amounted to RMB 5.827 billion, a year-on-year growth of 34.3%, with building coverage area reaching 7.39 billion square meters, up 48.1%[27]. - The two-wing business generated revenue of RMB 8.904 billion, accounting for 9.7% of total revenue, contributing 49.7% to overall revenue growth, an increase of 9.7 percentage points year-on-year[28]. - Smart connection business revenue was RMB 5.704 billion, growing 40.5%, with the tower vision business contributing RMB 3.694 billion, representing 64.8% of smart connection revenue[29]. - The energy business revenue grew by 54.5% year-on-year, reaching RMB 3.2 billion[8]. Operational Metrics - The number of tower sites operated and managed by the company reached 2.055 million, covering all 31 provinces, municipalities, and autonomous regions in China[5]. - The number of operator tower tenants increased to 3.362 million, a 3.1% growth from the previous year[14]. - The average annual revenue per site increased to RMB 40,512, a 2.9% rise from the previous year[14]. - The number of tower sites increased by 17,000 to 2.055 million, with operator tower tenants rising by 102,000 to 3.362 million, improving average tenants per site from 1.60 to 1.65[27]. Capital Expenditure and Cash Flow - The capital expenditure amounted to RMB 26.21 billion, while free cash flow was RMB 38.93 billion[47]. - Total capital expenditure for 2022 was RMB 26.207 billion, an increase of 4.0% compared to 2021[65]. - Operating cash flow for 2022 was RMB 65.134 billion, with free cash flow amounting to RMB 38.927 billion[67]. - The company's interest-bearing debt decreased to RMB 79.12 billion, down by RMB 22.19 billion from the previous year[62]. Dividend Policy - The company proposed a final dividend of RMB 0.03232 per share, with a payout ratio of 72%[24]. - The board proposed a final dividend of RMB 0.03232 per share for the year ended December 31, 2022, subject to shareholder approval at the annual general meeting[107]. - The dividend payment is expected to be made around June 30, 2023, if approved[107]. - The company emphasizes shareholder value and has adopted a dividend policy, planning to distribute 50% or more of the annual distributable profits as dividends[106]. Strategic Initiatives - The company aims to enhance its digital infrastructure services and energy green transformation, focusing on becoming a world-class information communication infrastructure service provider[31]. - The company plans to innovate construction service models and deepen mobile network coverage solutions to meet customer needs efficiently[31]. - The company is committed to risk management and enhancing internal controls to support high-quality development[30]. - The company will continue to promote resource sharing and energy-saving measures to support national carbon neutrality goals[30]. - The company plans to enhance its innovation-driven development strategy, focusing on key areas such as indoor coverage technology and green low-carbon energy applications[36]. Management and Governance - The company continues to focus on enhancing its operational efficiency and financial management through the expertise of its supervisory and management teams[91][92][93][94][97]. - The supervisory board is composed of professionals with advanced degrees and certifications, ensuring a high level of governance and oversight[92][93][94][97]. - The company is committed to leveraging its management team's extensive industry experience to drive future growth and strategic initiatives[91][92][93][94][97]. - The company has a diverse supervisory board with members like Mr. Li Zhangting and Ms. Han Fang, who have significant experience in finance and auditing within the telecommunications industry[93][94]. Shareholder Structure - As of December 31, 2022, the company's total share capital amounted to RMB 176,008,471,024, divided into 176,008,471,024 shares with a par value of RMB 1.00 each[116]. - The domestic shares constitute 73.49% of the total issued share capital, with China Mobile holding 27.93%, China Unicom 20.65%, and China Telecom 20.50%[117]. - The company’s shareholding structure includes significant stakes from major telecommunications operators, ensuring a stable ownership base[119]. Agreements and Transactions - The company has established a service framework agreement (2023-2027) with communication operators, with the expected annual cap percentage below 5%[161]. - The pricing policy for tower products includes a 2.4% discount on the benchmark price for existing orders prior to January 1, 2023[157]. - The company has established independent agreements with provincial subsidiaries based on the framework agreements to ensure localized service delivery[172]. - The procurement framework agreement with China Mobile Group was signed on December 24, 2022, and is effective until December 31, 2023[183]. Employee and Social Responsibility - The total employee cost for the year was RMB 794 million, covering salaries, social insurance, and other benefits for approximately 23,401 employees[145]. - The company made charitable donations totaling RMB 30.5 million during the year[142].

Financial Data and Key Metrics Changes - The company's operating revenue grew by 6.5% year-on-year to RMB 92.2 billion, with a net profit margin increase of 19.9% to RMB 8.79 billion [5][58] - Operating cash flow was RMB 65.1 billion, reflecting a year-on-year increase of 7.7% [5][58] - The company's EBITDA decreased by 0.3% to RMB 62.8 billion, maintaining an EBITDA ratio of 68.2% [57][58] Business Line Data and Key Metrics Changes - The TSP business revenue increased by 3.5% year-on-year to RMB 83 billion, accounting for 90.1% of total revenue [6] - The Two Wings business achieved a revenue of RMB 8.9 billion, an increase of 45.2% from last year, accounting for 9.7% of overall operating revenue [7] - The Tower business revenue reached RMB 77.2 billion, a year-on-year increase of 1.8% [29] - The DAS business revenue was RMB 5.83 billion, representing a year-on-year increase of 34.3% [32] - The Smart Tower business generated revenue of RMB 5.7 billion, with a growth rate of 40.5% [12] - The Energy business recorded revenue of RMB 3.2 billion, representing a 54.5% increase from the previous year [15][40] Market Data and Key Metrics Changes - As of December 2022, the number of TSP tenants reached 3.362 million, a year-on-year increase of 3.1% [30] - The DAS coverage increased by 2.4 billion square meters, which was 2.6 times more than the same period last year [32] - The battery exchange business contributed RMB 1.8 billion in revenue, a year-on-year increase of 44.8% [40] Company Strategy and Development Direction - The company is focused on the One Core and Two Wings strategy, aiming to strengthen its position in the communication infrastructure industry and drive digitization in the Smart Tower business [23][20] - The company is committed to maintaining stable operating revenue and improving profitability through lean management [23] - The company plans to leverage opportunities from the digital economy and the national dual-carbon strategy to expand its energy business [22][23] Management's Comments on Operating Environment and Future Outlook - Management highlighted the ongoing demand for 5G infrastructure and the expected growth in indoor 5G coverage by the end of the 14th Five-Year Plan [20] - The digital economy is seen as a promising area for growth, with an urgent need for digital solutions across various sectors [21] - The company aims to create greater value for shareholders while navigating the transition to a green and low-carbon economy [22][23] Other Important Information - The company recommended a final dividend of RMB 0.03232 per share, representing a year-on-year increase of 23.2% [19] - The company has doubled its R&D investment compared to the previous year to enhance technological capabilities [18] Q&A Session Summary - No specific questions and answers were provided in the content, thus this section is not applicable.

Overall Performance - Operating Revenue reached RMB 92,170 million, a 6.5% increase[5,27] - EBITDA was RMB 62,844 million, a 0.3% decrease[5,49] - Net Profit attributable to owners of the Company was RMB 8,787 million, a 19.9% increase[5,49] - Earnings Per Share (EPS) was RMB 0.0503 yuan, a 20.0% increase[5] Business Segments - TSP (Tower Service Provider) business revenue was RMB 83,031 million, a 3.5% increase, accounting for 90.1% of operating revenue[5,6,27] - Smart Tower business revenue was RMB 5,704 million, a 40.5% increase[6,9,27] - Energy business revenue was RMB 3,200 million, a 54.5% increase[6,11,27] - DAS (Distributed Antenna System) business expanded rapidly, with operating revenue increasing by 34.3% to RMB 5,827 million[38] Operational Metrics - Tower Tenancy Ratio reached 1.74 tenants/site, a 2.4% increase[5,27] - Number of Tower Tenants increased by 3.6% to 3,583 thousand[27] - Revenue per Tower Site increased by 2.9% to RMB 40,512 yuan[27] Financial Health - Free Cash Flow increased by 10.2% to RMB 38,927 million[49,55] - Gearing Ratio decreased by 5.7 percentage points to 27.7%[49,59] - The board recommends a final dividend of RMB 0.03232 per share (pre-tax)[15]

Revenue Performance - Operating revenue for the first three quarters of 2022 reached RMB 68.682 billion, a year-on-year increase of 6.3%[2] - Revenue from operator business was RMB 62.187 billion, up 3.4% year-on-year, with tower business revenue at RMB 57.953 billion (1.8% increase) and indoor distributed antenna system revenue at RMB 4.234 billion (32.6% increase)[2] - Smart connection business revenue grew by 41.4% to RMB 4.012 billion, while energy business revenue surged by 59.9% to RMB 2.303 billion[2] - Profit attributable to shareholders was RMB 6.399 billion, reflecting a year-on-year growth of 21.7%[2] EBITDA and Financial Metrics - EBITDA for the period was RMB 47.460 billion, with an EBITDA margin of 69.1%[3] - The proportion of revenue from the two wings business increased from 6.6% to 9.2% year-on-year[3] Operational Growth - As of September 30, 2022, the number of tower sites reached 2.052 million, with 3.535 million tenants, a net increase of 76,000 tenants compared to the end of the previous year[3] Strategic Goals - The company aims to leverage opportunities from 5G infrastructure, digital China, and dual carbon goals, positioning itself as a leading integrated service provider in information and communication infrastructure[4] - The company plans to enhance its "5G + indoor distribution" growth engine and upgrade its capabilities in smart connection business[4] - Focus on energy business will include product upgrades related to "tower battery swapping" and "tower backup power" to drive rapid growth[4]

Financial Performance - The company's operating revenue for the first half of 2022 was RMB 45,479 million, representing a year-on-year increase of 6.6%[2] - EBITDA for the first half of 2022 was RMB 31,958 million, with a growth of 2.5% year-on-year, resulting in an EBITDA margin of 70.3%[7] - Profit attributable to shareholders reached RMB 4,224 million, marking a 22.2% increase compared to the same period last year[4] - Operating revenue for the six months ended June 30, 2022, was RMB 45,479 million, an increase of 6.7% from RMB 42,673 million in the same period of 2021[29] - Operating profit for the same period was RMB 7,089 million, up 11.6% from RMB 6,354 million year-on-year[29] - Net profit attributable to shareholders for the six months was RMB 4,224 million, representing a 22.2% increase compared to RMB 3,457 million in the prior year[29] - The group generated operating revenue of RMB 45,479 million for the six months ended June 30, 2022, representing an increase of 6.5% from RMB 42,673 million in the same period of 2021[47] Cash Flow and Expenditures - The net cash flow from operating activities was RMB 31,306 million, up 29.2% year-on-year, while capital expenditures decreased by 12.3% to RMB 9,085 million[7] - Capital expenditures for the first half of 2022 totaled RMB 9,085 billion, with net cash flow from operating activities amounting to RMB 31,306 billion[24] - The net cash generated from operating activities was RMB 31,306 million, compared to RMB 24,238 million for the same period in 2021, representing a 29.5% increase[38] - The company incurred capital expenditures of RMB 11,886 million for property and equipment during the period[38] Assets and Liabilities - The total assets of the company as of June 30, 2022, were RMB 313,523 million, with interest-bearing liabilities of RMB 92,428 million, resulting in a net debt leverage ratio of 31.1%[7] - As of June 30, 2022, total assets were RMB 313.523 billion, and total liabilities were RMB 124.495 billion, resulting in a debt-to-asset ratio of 39.7%[25] - The total equity as of June 30, 2022, was RMB 189,028 million, a slight decrease from RMB 189,354 million at the end of 2021[37] - The group’s current liabilities exceeded current assets by RMB 19,239 million, down from RMB 27,838 million as of December 31, 2021[43] - The total accounts receivable and other receivables reached RMB 42,256 million as of June 30, 2022, compared to RMB 34,194 million at the end of 2021, indicating an increase of 23.5%[72] Revenue Breakdown - Revenue from the operator business was RMB 41,345 million, a 3.9% increase year-on-year, while the room distribution business saw a revenue increase of 32.0% to RMB 2,753 million[10] - The two wings business achieved revenue of RMB 4,010 million, a significant increase of 46.5%, contributing 45.4% to overall revenue growth[11] - The energy business revenue reached RMB 1,426 million, reflecting a 61.3% year-on-year growth, with the battery swap service accounting for 56.2% of this revenue[12] - Revenue from tower services amounted to RMB 38,592 million, up from RMB 37,722 million, with service revenue contributing RMB 5,779 million[48] Shareholder Information - Basic and diluted earnings per share for the period were RMB 0.0242, compared to RMB 0.0198 in the same period of 2021[29] - The company declared a final dividend of RMB 0.02624 per share for the year ended December 31, 2021, totaling approximately RMB 4,618 million, while no interim dividend was declared for the six months ended June 30, 2022[82] - The company returned RMB 367 million in cash to incentive participants during the six months ended June 30, 2022, compared to RMB 3 million for the same period in 2021[94] Corporate Governance and Compliance - The company has maintained compliance with corporate governance codes during the reporting period[126] - The audit committee reviewed the accounting standards and practices adopted by the company[125] - The company has made adjustments to its board committees to ensure compliance with listing rules[129] - The company was not involved in any significant litigation or arbitration during the six months ending June 30, 2022[132] Strategic Initiatives - The company aims to enhance its core competitiveness in information application services and new energy applications, focusing on the "5G + indoor distribution" growth engine[14] - The company plans to increase R&D investment to support the transition from "communication towers" to "digital towers" and enhance its smart energy operations[15] - The company is committed to reducing carbon emissions and promoting green development in line with national strategies[15] Employee and Operational Expenses - Employee benefits expenses totaled RMB 3,778 million for the six months ended June 30, 2022, compared to RMB 3,574 million in the same period of 2021[52] - For the six months ended June 30, 2022, total operating expenses were RMB 2,507 million, an increase of 6.95% from RMB 2,344 million in the same period of 2021[55] Financial Risk Management - The group’s financial risk management policies remained unchanged during the reporting period[43] - The group has no financial assets and liabilities measured at fair value as of June 30, 2022, with financial assets and liabilities primarily measured at amortized cost[108]

Financial Data and Key Metrics Changes - The company achieved a revenue growth of 6.6% year-on-year, reaching RMB 45,480 million, while net profit increased by 22.2% to RMB 4,220 million, indicating enhanced profitability [5][46] - Operating cash flow was stable, amounting to RMB 31,310 million, a year-on-year increase of 29.2% [5][50] - The operating expenses increased by 5.7% year-on-year to RMB 38,319 million, but the operating expenses to revenue ratio decreased from 85.1% to 84.4% [40] Business Line Data and Key Metrics Changes - The TSP business revenue grew by 3.9% year-on-year to RMB 1,350 million, accounting for 90.9% of overall revenue [6] - The Two Wings business recorded a revenue of RMB 4,010 million, up 46.5% year-on-year, contributing 8.8% to overall revenue [7] - The Smart Tower business generated revenue of RMB 2,580 million, representing a year-on-year increase of 39.4% [11] - The Energy business revenue reached RMB 1,430 million, a year-on-year increase of 61.3% [14] Market Data and Key Metrics Changes - The share of incremental revenue from 5G services in the TSP business reached 84%, an increase of 20 percentage points from the same period last year [9] - The number of TSP tenants increased to 3.302 million, reflecting a net increase of 2.3% year-on-year [27] - DAS business revenue reached RMB 2,750 million, representing a year-on-year increase of 32.0% [29] Company Strategy and Development Direction - The company is focused on promoting the One Core and Two Wings strategy, aiming to enhance its service provider role across three business segments [20][21] - The company plans to build a professional, intensive, delicate, efficient, and digitalized operating system while enhancing profitability and creating greater value for stakeholders [51] Management Comments on Operating Environment and Future Outlook - Management highlighted the opportunities arising from the development of 5G infrastructure, digital economy, and dual carbon goals, which are expected to drive sustainable growth [18][19] - The company aims to capture growth opportunities in the second half of the year by focusing on operational efficiency and effectiveness [51] Other Important Information - The company has established three key labs for new energy, communication construction, and AI to support technological transformation [16] - The liabilities to asset ratio was 39.7%, a decrease of 1.7 percentage points from the end of the previous year, indicating a stable capital structure [50] Q&A Session Summary - No specific questions or answers were provided in the document regarding the Q&A session [52]

Financial Performance - Operating revenue for Q1 2022 reached RMB 22.633 billion, a year-on-year increase of 7.0%[2] - EBITDA for Q1 2022 was RMB 15.682 billion, with an EBITDA margin of 69.3%[2] - Profit attributable to shareholders was RMB 2.180 billion, reflecting a year-on-year growth of 28.7%[2] Revenue Breakdown - Revenue from operator business was RMB 20.756 billion, up 4.7% year-on-year, with tower business revenue at RMB 19.418 billion, increasing by 3.1%[2] - Smart connection business revenue grew by 34.9% year-on-year to RMB 1.186 billion, while energy business revenue surged by 70.3% to RMB 642 million[2] Operational Metrics - As of March 31, 2022, the number of tower sites reached 2.045 million, with 3.493 million tenants, a net increase of 34,000 tenants compared to the end of the previous year[3] - The average number of tenants per tower site increased to 1.71 from 1.70[2] Strategic Initiatives - The company aims to leverage 5G development opportunities and enhance its operational business through a "5G + indoor distribution" growth strategy[4] - The smart connection business will focus on key industries and strengthen its development momentum, capitalizing on the "Digital China" initiative[4] - The energy business will accelerate growth by focusing on key products such as battery swapping and energy storage, aligning with carbon neutrality goals[4]

Financial Performance - In 2021, the company achieved operating revenue of RMB 86.585 billion, representing a year-on-year growth of 6.8%[3] - EBITDA for 2021 was RMB 63.017 billion, an increase of 5.9% compared to the previous year, with an EBITDA margin of 72.8%[18] - The profit attributable to shareholders was RMB 7.329 billion, reflecting a 14.0% increase year-on-year[6] - The company reported a net cash flow from operating activities of RMB 60.503 billion, with capital expenditures of RMB 25.192 billion, a decrease of 32.1%[18] - The total assets of the company as of December 31, 2021, amounted to RMB 323.259 billion, with interest-bearing liabilities of RMB 101.304 billion[18] - The company achieved a total revenue of RMB 80.197 billion in 2021, representing a year-on-year growth of 4.3%[37] - The EBITDA for 2021 was RMB 63.017 billion, reflecting a year-on-year growth of 5.9%[46] - The company reported a significant increase in revenue, achieving a total of 42 billion yuan for the year 2021, marking a year-on-year growth of 15%[91] - The company reported a net profit margin of 18%, which is an improvement from 16% in the previous year, indicating better cost management[91] Business Segments - The company’s energy business revenue grew by 121.5% year-on-year, reaching RMB 2.071 billion[3] - The company completed approximately 552,000 5G construction demands in 2021, significantly contributing to the growth of operator business[20] - The tower business generated revenue of RMB 75.857 billion, with a year-on-year increase of 3.4%, while the indoor distribution business saw revenue rise to RMB 4.340 billion, up 23.0%[37] - The smart connection business generated revenue of RMB 4.060 billion, with a year-on-year growth of 35.2%[23] - The two-wing business achieved revenue of RMB 6.131 billion, a year-on-year increase of 55.6%, contributing 40.0% to overall revenue growth[22] - The company’s smart connection business achieved revenue of RMB 4.06 billion, with a year-on-year growth of 35.2%, contributing 19.3% to the incremental revenue[40] - The energy business generated revenue of RMB 2.071 billion, a year-on-year increase of 121.5%, contributing 20.7% to the overall revenue growth[45] Operational Efficiency - The company aims to enhance its resource sharing and operational efficiency to support the expansion of 5G network coverage[27] - The average annual revenue per site was RMB 39,358, reflecting a 3.5% increase year-on-year[35] - The company aims to enhance its service capabilities by improving customer service and establishing a service supervision and evaluation system[34] - The company is focused on transforming from a "communication tower" to a "digital tower" by leveraging its site resources and innovative platforms[41] - The company is focusing on enhancing operational efficiency, aiming for a 5% reduction in operational costs through process optimization[97] Capital Expenditures and Investments - Capital expenditures for the year amounted to RMB 25.192 billion, with free cash flow reaching RMB 35.311 billion[46] - The company reduced its interest-bearing debt to RMB 101.304 billion, down by RMB 11.567 billion from the previous year[59] - The overall capital expenditure in 2021 reflects a strategic shift towards more efficient and sustainable operations compared to 2020[63] - The capital expenditure for new site construction and shared renovations was RMB 15,996 million, accounting for 63.5% of total capital expenditure in 2021[63] - The company plans to enhance its product system and accelerate the iteration of battery swap products, including the release of 3.0 technical standards[45] Shareholder Returns and Dividends - The company plans to maintain a dividend payout ratio of 70% for the year, with a proposed final dividend of RMB 0.02624 per share[18] - The company aims to distribute 50% or more of the annual distributable profits as dividends, considering factors such as operational performance and cash flow[103] - The final dividend, if approved, is expected to be paid around June 30, 2022[104] - The company will withhold a 10% corporate income tax on dividends paid to non-resident H-share shareholders[105] Governance and Management - The company has a strong board of directors with members holding advanced degrees and extensive experience in finance and management, enhancing corporate governance[85] - The management team includes professionals with significant backgrounds in telecommunications and finance, which supports the company's strategic objectives[89] - The company has implemented a robust internal audit system to ensure financial integrity and compliance with regulations[90] - The supervisory board confirmed that the company's decision-making processes adhered to relevant laws and regulations, with no violations reported during the year[199] Strategic Initiatives - The company aims to deepen its "one body, two wings" strategy, focusing on becoming a leading integrated service provider in information communication infrastructure[26] - The company is actively pursuing opportunities for mergers and acquisitions to enhance its competitive position in the market[88] - The company is exploring partnerships with tech firms to leverage AI and big data, aiming to increase service efficiency by 30%[92] - The company aims to expand its market presence through strategic investments and partnerships in the telecommunications sector[74] Social Responsibility and Sustainability - The company actively fulfills its social responsibilities, promoting resource-sharing and energy-saving initiatives, and enhancing customer service quality[188] - The management team emphasized the importance of sustainability, committing to invest 500 million yuan in green technology initiatives over the next three years[98] - The company is committed to leveraging national "dual carbon" goals to focus on key products such as battery swapping and backup power[34] Customer and Supplier Relations - Revenue from the top five customers accounted for 93.6% of total revenue, with the largest customer contributing 48.9%[143] - The company provided services to China Mobile, China Unicom, and China Telecom, which are its major shareholders, under a framework agreement valid from January 1, 2018, to December 31, 2022[149] - The pricing for services is determined through fair negotiation, considering construction costs, maintenance costs, and appropriate profit margins[150] Related Party Transactions - Independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[186] - The independent auditor's letter confirmed that there were no issues regarding the approval of related party transactions or compliance with pricing policies[187]

Financial Performance - The company's operating revenue for the first half of 2021 reached RMB 42.673 billion, a year-on-year increase of 7.2%[5] - EBITDA for the first half of 2021 was RMB 31.184 billion, also reflecting a 7.2% year-on-year growth, with an EBITDA margin of 73.1%[9] - Net profit attributable to shareholders was RMB 3.457 billion, marking a 16.1% increase compared to the same period last year[9] - The operating profit for the first half of 2021 was RMB 6.354 billion, with net profit attributable to shareholders reaching RMB 3.457 billion, an increase of 16.1% year-on-year[25] - Basic and diluted earnings per share for the period were RMB 0.0198, compared to RMB 0.0170 in the same period of 2020, reflecting a growth of 16.4%[33] - The total comprehensive income for the period was RMB 3,457 million, compared to RMB 2,978 million for the same period in 2020, marking a growth of around 16%[37] Cash Flow and Expenditures - The company achieved a net cash flow from operating activities of RMB 24.238 billion, with capital expenditures amounting to RMB 10.360 billion, a decrease of 27.6% year-on-year[9] - Free cash flow reached RMB 138.78 billion, reflecting an 8.6% year-on-year increase[9] - The net cash generated from operating activities for the six months ended June 30, 2021, was RMB 24,238 million, compared to RMB 27,083 million for the same period in 2020, indicating a decrease of about 10.5%[39] - The net cash used in investing activities was RMB 18,685 million for the six months ended June 30, 2021, compared to RMB 14,296 million in the same period of 2020, representing an increase of approximately 30%[39] - The company reported a loss of RMB 672 million from the disposal of property, plant, and equipment, compared to a loss of RMB 533 million in the same period last year, indicating an increase in losses of about 26.2%[66] Assets and Liabilities - The company’s total assets as of June 30, 2021, were RMB 333.195 billion, with total liabilities of RMB 147.341 billion, leading to a debt-to-asset ratio decrease from 44.8% at the beginning of the year to 44.2%[27] - Total liabilities decreased to RMB 147,341 million from RMB 151,134 million, indicating improved financial stability[35] - The total accounts receivable and other receivables reached RMB 37,769 million as of June 30, 2021, an increase of 23% from RMB 30,658 million as of December 31, 2020[71] - The net accounts receivable was RMB 32,561 million as of June 30, 2021, up from RMB 24,635 million as of December 31, 2020, indicating a growth of 32%[71] Revenue Breakdown - Revenue from the telecommunications business was RMB 39.808 billion, up 4.5% year-on-year, while revenue from cross-industry business grew by 46.6% to RMB 1.853 billion[5] - The energy business revenue surged by 180.6% to RMB 884 million, driven by the growth in low-carbon economy initiatives[12] - Revenue from tower services was RMB 37,722 million, up from RMB 36,371 million, indicating a growth of 3.7% year-over-year[47] - The revenue from indoor distributed antenna system (室分业务) was RMB 2,086 million, a significant increase of 21.2% compared to RMB 1,720 million in the previous year[47] - Major customers, including China Mobile, China Telecom, and China Unicom, contributed 93.9% of total revenue, down from 96.4% in the previous year[50] Strategic Focus and Market Position - The company aims to enhance its resource-sharing capabilities and strengthen its market position in the 5G infrastructure sector[11] - The company is focusing on 5G infrastructure and digital economy opportunities to drive steady growth and enhance corporate value[15] - The company is committed to innovation in new energy technologies and aims to become a competitive new energy application service provider[18] Governance and Compliance - The company has adhered to the Corporate Governance Code during the six months ending June 30, 2021[4] - The audit committee has reviewed the accounting standards and practices adopted by the company[4] - The company has adopted a securities trading code for directors and employees that is not less stringent than the standard code[5] Shareholder Information - As of June 30, 2021, 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[119] - China Unicom Group held 36,345,836,822 shares, representing 28.10% of the relevant class of shares and 20.65% of the total issued shares[120] - China Telecom Group held 36,087,147,592 shares, representing 27.90% of the relevant class of shares and 20.50% of the total issued shares[120]