中国铁塔(00788) - 2025 - 中期财报

Performance Summary Key Financial Performance in H1 2025 In the first half of 2025, the company achieved operating revenue of 49.601 billion yuan, a year-on-year increase of 2.8%; profit attributable to the company's shareholders was 5.757 billion yuan, up 8.0%; EBITDA grew by 3.6% to 34.227 billion yuan, and basic earnings per share were 0.3293 yuan Key Financial Indicators for H1 2025 | Million Yuan | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 49,601 | 48,247 | 2.8% | | Operator Business | 42,461 | 42,121 | 0.8% | | Smart Link Business | 4,726 | 3,982 | 18.7% | | Energy Business | 2,209 | 2,023 | 9.2% | | Operating Profit | 8,629 | 8,146 | 5.9% | | EBITDA | 34,227 | 33,045 | 3.6% | | Profit Attributable to Company Shareholders | 5,757 | 5,330 | 8.0% | | Capital Expenditure | 12,392 | 13,729 | -9.7% | | Net Cash Flow from Operating Activities | 28,679 | 32,830 | -12.6% | | Basic Earnings Per Share (Yuan) | 0.3293 | (Restated) 0.3049 | 8.0% | Chairman's Report Strategic Positioning and Overall Performance The company is strategically positioned as a world-class digital infrastructure and information/new energy application service provider, deepening its "One Body, Two Wings" strategy, achieving steady growth and new strides in high-quality development in H1 - Strategic Positioning: World-class digital infrastructure comprehensive service provider, information application service provider with core competitiveness, and new energy application service provider with core competitiveness[13] - Strategic Deepening: "One Body, Two Wings" strategy[13] - Overall Performance: Maintained steady growth, with the company making new strides in high-quality development[13] Financial Performance In H1 2025, the company's operating revenue, EBITDA, and profit attributable to shareholders all increased, demonstrating strengthened profitability and a robust financial position, with an interim dividend declared Key Financial Indicators for H1 2025 | Indicator | H1 2025 (Million Yuan) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 49,601 | +2.8% | | EBITDA | 34,227 | +3.6% | | Profit Attributable to Company Shareholders | 5,757 | +8.0% | | Net Cash Flow from Operating Activities | 28,679 | -12.6% | | Capital Expenditure | 12,392 | -9.7% | | Free Cash Flow | 16,287 | -2.814 billion yuan | | Total Assets (as of June 30) | 331,127 | - | | Net Debt Leverage Ratio (as of June 30) | 29.5% | Decreased by 1.5 percentage points from year-end | - The Board decided to declare an interim dividend of RMB 0.13250 per share (pre-tax), striving for good growth in full-year dividends per share[15] Business Performance The company optimized resource allocation and deepened reform and innovation in H1, driving stable and improved business development, enhancing core competitiveness, with stable operator business and rapid growth in "Two Wings" businesses Operator Business The company leveraged its role as a national team for mobile communication infrastructure, seized 5G network expansion opportunities, and enhanced resource sharing and specialized operation capabilities, maintaining stable operator business revenue and high growth in indoor distribution Operator Business Revenue for H1 2025 | Business Type | H1 2025 (Million Yuan) | YoY Growth | | :--- | :--- | :--- | | Total Operator Business Revenue | 42,461 | +0.8% | | Tower Business | 37,797 | Basically flat | | Indoor Distribution Business | 4,664 | +12.0% | - As of the end of June 2025, the company's tower sites numbered 2.119 million units, an increase of 25,000 from the end of last year; operator tower tenants numbered 3.579 million users, an increase of 35,000 from the end of last year, with an average of 1.72 tenants per site[18] - As of June 2025, cumulative indoor distribution coverage area for buildings reached 13.85 billion square meters, a year-on-year increase of 20.0%; cumulative coverage mileage for high-speed rail tunnels and subways reached 30,878 kilometers, a year-on-year increase of 17.0%[19] Two Wings Businesses The "Two Wings" businesses achieved rapid revenue growth by strengthening product innovation and optimizing business layout, increasing their share of operating revenue to 14.0%, with strong performance in both Smart Link and Energy businesses Two Wings Businesses Revenue for H1 2025 | Business Type | H1 2025 (Million Yuan) | YoY Growth | % of Operating Revenue | | :--- | :--- | :--- | :--- | | Total Two Wings Businesses Revenue | 6,935 | - | 14.0% (up 1.6 percentage points) | | Smart Link Business | 4,726 | +18.7% | - | | Energy Business | 2,209 | +9.2% | - | Smart Link Business The Smart Link business focused on digital governance of space, leveraging resource endowments and capabilities to deepen customer relationships, refine products, optimize services, and strengthen security, achieving 4.726 billion yuan in revenue, up 18.7% - Focus Areas: Digital governance of space, serving national strategies and major projects[20] - Revenue Composition: Tower Vision Link business achieved revenue of 2.822 billion yuan, accounting for 59.7% of Smart Link business revenue[22] Energy Business The Energy business focused on core services like battery swap and backup power, deeply cultivating the C-end food delivery market and B-end customers, accelerating community charging network construction, and promoting "Backup Power+" integrated solutions, achieving 2.209 billion yuan in revenue, up 9.2% - Battery Swap Business: As of June 30, 2025, Tower Battery Swap users numbered approximately 1.47 million, an increase of 166,000 from the end of last year, maintaining a leading position in the low-speed electric vehicle battery swap market[22] - Revenue Composition: Tower Battery Swap business achieved revenue of 1.323 billion yuan, accounting for 59.9% of Energy business revenue[22] - Backup Power Business: Deeply cultivated key industries such as communications and finance, and typical scenarios, promoting "Backup Power+" integrated industry solutions, and forging the "Tower Energy Butler" brand[22] Technology Leadership, Steady Improvement in Innovation Efficiency The company strengthened technology innovation in H1, increasing R&D in next-generation mobile communication, AI, and edge computing, promoting technology commercialization, with R&D personnel up 29% YoY and authorized invention patents up 16% from end-2024 - R&D Focus: Strengthening R&D in key core technologies such as next-generation mobile communication, artificial intelligence, edge computing, 5G+Beidou, 5G shared indoor distribution, new energy, and IoT[23] - R&D Personnel: The number of R&D personnel in H1 2025 increased by 29% compared to the same period last year[23] - Invention Patents: Cumulative authorized invention patents increased by 16% compared to the end of 2024[23] Corporate Governance and Social Responsibility The company prioritizes sustainable development, actively practices ESG responsibilities, adheres to green development, enhances social welfare, and continuously improves corporate governance to protect shareholders' legitimate rights - Green Development: Promoting resource recycling, increasing the scale of clean energy applications like photovoltaics; empowering atmospheric, water, and soil pollution prevention and control, and ecological protection with digital intelligence technology; providing diverse new energy application services to reduce carbon emissions[25] - Social Welfare: Successfully completing communication support for major events, providing emergency warning for forest fire prevention and flood control; improving communication infrastructure in rural and remote areas to assist rural revitalization[25] - Corporate Governance: Strictly complying with listing regulatory rules, optimizing corporate governance mechanisms, enhancing legal and compliant operation and management; strengthening capital market communication and exchange, and reinforcing investor relations maintenance[25] Future Outlook The company will continue to uphold the shared development concept, adhere to the "One Body, Two Wings" strategic layout, continuously enhance core competitiveness, drive high-quality development, and define future directions and goals for operator, Smart Link, and Energy businesses - Overall Strategy: Upholding the shared development concept, adhering to the "One Body, Two Wings" strategic layout, continuously enhancing core competitiveness, and promoting the company's high-quality development[26] - Operator Business: Seizing national policy opportunities such as 5G-A construction, signal upgrades, and broadband expansion in border areas, enhancing resource coordination, construction delivery, and solution innovation capabilities to achieve steady growth[26] - Smart Link Business: Deepening the innovative application of digital intelligence technology in social governance, leveraging "location + computing + power + security" advantages, and strategically deploying emerging industries such as edge computing[29] - Energy Business: Optimizing the layout of battery swap networks in core business districts, deepening the operation of the VIP star-rated user system, and expanding user scale; deeply cultivating key industry markets and promoting "Backup Power+" integrated industry solutions[29] - Technology Innovation: Continuously focusing on core technology breakthroughs, increasing the promotion and commercialization of scientific and technological achievements, accelerating the integrated development of scientific and technological innovation and industrial innovation, and fostering new quality productive forces[29] Acknowledgements The Chairman expresses sincere gratitude for the support and contributions of resigned directors, newly appointed directors, all employees, customers, and shareholders - Objects of Gratitude: Sincere thanks to Mr. Tang Yongbo, Mr. Dong Chunbo, and Mr. Xian Handi, who resigned as company directors, Mr. Cheng Jianjun, Mr. Miao Shouye, Mr. Pei Zhenjiang, and Mr. Wen Bugao, who newly joined as directors, as well as all employees, customers, and all shareholders[29][30] Financial Overview Operating Revenue Operating revenue reached 49.601 billion yuan in H1 2025, a 2.8% YoY increase, with growth across operator, Smart Link, and Energy businesses, and non-tower business revenue share rising to 23.8% Operating Revenue Composition for H1 2025 | Business Type | H1 2025 (Billion Yuan) | YoY Growth | | :--- | :--- | :--- | | Total Operating Revenue | 496.01 | +2.8% | | Operator Business | 424.61 | +0.8% | | Smart Link Business | 47.26 | +18.7% | | Energy Business | 22.09 | +9.2% | - Revenue structure continued to optimize, with non-tower business revenue, including indoor distribution and "Two Wings" businesses, increasing its share of operating revenue from 21.3% in the same period last year to 23.8%[32] Operating Expenses Total operating costs in H1 amounted to 40.972 billion yuan, up 2.2% YoY, with its share of operating revenue decreasing by 0.5 percentage points to 82.6%, effectively controlled through cost benchmarking and lean operations Operating Cost Overview for H1 2025 | Indicator | H1 2025 (Billion Yuan) | YoY Change | Change in % of Operating Revenue | | :--- | :--- | :--- | :--- | | Total Operating Costs | 409.72 | +2.2% | -0.5 percentage points (to 82.6%) | Depreciation and Amortization Depreciation and amortization totaled 25.598 billion yuan in H1, up 2.8% YoY, mainly due to increased depreciation from assets formed by past investments to meet new construction demands and ongoing asset inspection - Depreciation and Amortization: 25.598 billion yuan, a year-on-year increase of 2.8%[33] Maintenance Expenses Maintenance expenses totaled 3.187 billion yuan in H1, down 6.2% YoY, primarily due to improved equipment quality and cost control, with its share of operating revenue decreasing by 0.6 percentage points - Maintenance Expenses: 3.187 billion yuan, a year-on-year decrease of 6.2%[34] - Maintenance Expenses as % of Operating Revenue: Decreased by 0.6 percentage points compared to the same period last year[34] Staff Costs Staff costs totaled 4.767 billion yuan in H1, an increase of 0.392 billion yuan YoY, mainly due to R&D innovation, regional reforms, moderate recruitment of high-end tech talent and frontline staff, and performance-linked incentives - Staff Costs: 4.767 billion yuan, a year-on-year increase of 0.392 billion yuan[35] Site Operation and Support Expenses Site operation and support expenses totaled 2.535 billion yuan in H1, a decrease of 0.367 billion yuan YoY, achieved through precise rectification of external power, enhanced battery backup capabilities, and reasonable control of site rental renewal increases - Site Operation and Support Expenses: 2.535 billion yuan, a year-on-year decrease of 0.367 billion yuan[36] Other Operating Expenses Other operating expenses totaled 4.885 billion yuan in H1, an increase of 0.357 billion yuan YoY, with 0.281 billion yuan attributed to increased business expansion costs for "Two Wings" businesses, including technical support services and market promotion - Other Operating Expenses: 4.885 billion yuan, a year-on-year increase of 0.357 billion yuan[37] - Two Wings Business Expansion Costs: Increased by 0.281 billion yuan year-on-year[37] Finance Costs Net finance costs in H1 were 1.236 billion yuan, consistent with the prior year, reflecting a prudent financing strategy and centralized fund management - Net Finance Costs: 1.236 billion yuan, consistent with the same period last year[38] Profitability In H1, the company achieved an operating profit of 8.629 billion yuan, profit attributable to shareholders of 5.757 billion yuan, up 8.0% YoY; EBITDA was 34.227 billion yuan, up 3.6% YoY, with EBITDA as a percentage of operating revenue increasing by 0.5 percentage points to 69.0% Profitability Indicators for H1 2025 | Indicator | H1 2025 (Billion Yuan) | YoY Growth | | :--- | :--- | :--- | | Operating Profit | 86.29 | - | | Profit Attributable to Company Shareholders | 57.57 | +8.0% | | EBITDA | 342.27 | +3.6% | | EBITDA as % of Operating Revenue | 69.0% | Up 0.5 percentage points | Capital Expenditure and Cash Flow Capital expenditure in H1 was 12.392 billion yuan, a decrease of 1.337 billion yuan YoY, with reduced capital expenditure for new site construction and sharing upgrades, but increased for "Two Wings" businesses and IT/R&D. Net cash flow from operating activities was 28.679 billion yuan, a decrease of 4.151 billion yuan YoY Capital Expenditure and Cash Flow for H1 2025 | Indicator | H1 2025 (Billion Yuan) | YoY Change | | :--- | :--- | :--- | | Total Capital Expenditure | 123.92 | -13.37 | | Capital Expenditure for New Site Construction and Sharing Upgrades | 66.0 | -14.35 | | Capital Expenditure for Site Renovation and Upgrades | 23.77 | -8.29 | | Capital Expenditure for Two Wings Businesses | 24.75 | +5.95 | | Capital Expenditure for IT Support and R&D | 9.40 | +3.32 | | Net Cash Flow from Operating Activities | 286.79 | -41.51 | | Free Cash Flow | 162.87 | -2.814 | Assets and Liabilities As of June 30, 2025, total assets were 331.127 billion yuan, total liabilities were 130.774 billion yuan, and the asset-liability ratio was 39.5%, a decrease of 0.4 percentage points from the beginning of the year Assets and Liabilities as of June 30, 2025 | Indicator | Amount (Billion Yuan) | Change from Year-End | | :--- | :--- | :--- | | Total Assets | 3,311.27 | - | | Total Liabilities | 1,307.74 | - | | Net Debt | 839.66 | - | | Asset-Liability Ratio | 39.5% | Decreased by 0.4 percentage points | Review Report on Interim Financial Information KPMG Review Report KPMG reviewed this interim financial report in accordance with International Standard on Review Engagements 2410 and found no matters suggesting it was not prepared in all material respects according to IAS 34 - Reviewing Body: KPMG[46] - Review Standard: Reviewed in accordance with International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the International Auditing and Assurance Standards Board[44] - Conclusion: Nothing has come to the auditor's attention that causes them to believe that the interim financial information as at June 30, 2025, is not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting"[45] Unaudited Interim Condensed Consolidated Statement of Comprehensive Income Consolidated Statement of Comprehensive Income for H1 2025 In H1 2025, the company reported operating revenue of 49.601 billion yuan, operating profit of 8.629 billion yuan, profit attributable to shareholders of 5.757 billion yuan, and basic earnings per share of 0.3293 yuan Unaudited Interim Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30, 2025) | Indicator | 2025 (Million Yuan) | 2024 (Million Yuan) | | :--- | :--- | :--- | | Operating Revenue | 49,601 | 48,247 | | Operating Expenses | (40,972) | (40,101) | | Operating Profit | 8,629 | 8,146 | | Profit Before Tax | 7,605 | 7,037 | | Income Tax Expense | (1,847) | (1,707) | | Profit for the Period | 5,758 | 5,330 | | Profit Attributable to Company Shareholders | 5,757 | 5,330 | | Basic and Diluted Earnings Per Share (Yuan) | 0.3293 | 0.3049 | Unaudited Interim Condensed Consolidated Statement of Financial Position Consolidated Statement of Financial Position as of June 30, 2025 As of June 30, 2025, total assets were 331.127 billion yuan, comprising 234.272 billion yuan in non-current assets and 96.855 billion yuan in current assets. Total equity was 200.353 billion yuan, and total liabilities were 130.774 billion yuan Unaudited Interim Condensed Consolidated Statement of Financial Position (As at June 30, 2025) | Indicator | June 30, 2025 (Million Yuan) | December 31, 2024 (Million Yuan) | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 234,272 | 241,474 | | Current Assets | 96,855 | 91,360 | | Total Assets | 331,127 | 332,834 | | Equity and Liabilities | | | | Equity Attributable to Company Shareholders | 200,351 | 199,978 | | Total Equity | 200,353 | 199,979 | | Non-current Liabilities | 41,918 | 57,056 | | Current Liabilities | 88,856 | 75,799 | | Total Liabilities | 130,774 | 132,855 | | Total Equity and Liabilities | 331,127 | 332,834 | Unaudited Interim Condensed Consolidated Statement of Changes in Equity Consolidated Statement of Changes in Equity for H1 2025 For the six months ended June 30, 2025, total equity increased from 199.979 billion yuan as of December 31, 2024, to 200.353 billion yuan, primarily influenced by profit for the period and share capital reorganization Unaudited Interim Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2025) | Indicator | Balance as at December 31, 2024 (Million Yuan) | Profit for the Period (Million Yuan) | Dividend Distribution (Million Yuan) | Share Capital Reorganization (Million Yuan) | Balance as at June 30, 2025 (Million Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Equity Attributable to Company Shareholders | 199,978 | 5,757 | (5,384) | 0 | 200,351 | | Non-controlling Interests | 1 | 1 | 0 | 0 | 2 | | Total Equity | 199,979 | 5,758 | (5,384) | 0 | 200,353 | - Share consolidation and capital reduction became effective on February 20, 2025, resulting in a reduction of share capital from 176.008 billion yuan to 17.601 billion yuan, with the reduction credited to capital premium[53][86] Unaudited Interim Condensed Consolidated Statement of Cash Flows Consolidated Cash Flow for H1 2025 In H1 2025, net cash from operating activities was 28.679 billion yuan, net cash used in investing activities was 15.126 billion yuan, net cash used in financing activities was 7.475 billion yuan, and cash and cash equivalents at period-end were 8.673 billion yuan Unaudited Interim Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, 2025) | Cash Flow Type | 2025 (Million Yuan) | 2024 (Million Yuan) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 28,679 | 32,830 | | Net Cash Used in Investing Activities | (15,126) | (13,886) | | Net Cash Used in Financing Activities | (7,475) | (18,850) | | Net Increase in Cash and Cash Equivalents | 6,078 | 94 | | Cash and Cash Equivalents at End of Period | 8,673 | 4,049 | Notes to the Unaudited Interim Financial Information 1 General Information China Tower Corporation Limited was established in 2014 by three major telecom operators, primarily engaging in communication tower construction and operation, indoor distribution services, Smart Link, and Energy businesses, with a share consolidation and capital reduction completed on February 20, 2025 - Establishment Date: China Tower Corporation Limited was established in the People's Republic of China on July 15, 2014[56] - Major Shareholders: Initiated by China Mobile Communications Co., Ltd., China Unicom (Hong Kong) Limited, and China Telecom Corporation Limited[56] - Principal Activities: Construction and operation of telecommunication towers (providing site space, maintenance services, and power services, collectively referred to as tower business), provision of indoor distributed antenna system (DAS) services, cross-industry site application and information services (Smart Link business), and energy business[58] - Share Capital Change: Share consolidation and capital reduction became effective on February 20, 2025, reducing the company's total issued share capital from RMB 176,008,471,024 to RMB 17,600,847,102[57] 2 Basis of Preparation The unaudited interim financial information is prepared in accordance with IAS 34 "Interim Financial Reporting" and should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2024, with consistent accounting policies - Preparation Standard: Prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the International Accounting Standards Board[59] - Reading Requirement: Should be read in conjunction with the Group's audited consolidated financial statements for the year ended December 31, 2024[59] - Accounting Policies: The accounting policies adopted are consistent with those of the previous financial year and the corresponding interim reporting period[59] 3 Changes in Accounting Policies The Group applied amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability" to this interim financial report, which had no material impact on the Group's performance or financial position - Application of Amendments: Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability" have been applied[60] - Impact: These amendments had no material impact on the Group's results and financial position prepared or presented in this interim financial report for the current or prior periods[60] 4 Segment Reporting The Group's primary operating decision-maker reviews performance and resources as a whole, thus determining a single operating segment, with almost all long-term assets, revenue, and operating profit derived from mainland China - Operating Segment: The primary operating decision-maker reviews the Group's performance and resources as a whole, thus concluding that the Group has one operating segment[61] - Geographical Segment: Almost all of the Group's long-term assets are located in mainland China, and almost all of the Group's revenue and operating profit during the reporting period were derived from mainland China[61] 5 Operating Revenue Total operating revenue for H1 2025 was 49.601 billion yuan, including 37.797 billion yuan from tower business, 4.664 billion yuan from indoor distribution, 4.726 billion yuan from Smart Link, and 2.209 billion yuan from Energy business, with three telecom operators contributing 85.7% of total revenue Operating Revenue by Business Type for H1 2025 | Business Type | 2025 (Million Yuan) | 2024 (Million Yuan) | | :--- | :--- | :--- | | Tower Business | 37,797 | 37,957 | | Indoor Distribution Business | 4,664 | 4,164 | | Smart Link Business | 4,726 | 3,982 | | Energy Business | 2,209 | 2,023 | | Others | 205 | 121 | | Total | 49,601 | 48,247 | - Revenue Contribution: For the six months ended June 30, 2025, revenue generated from the three telecommunication operators accounted for 85.7% of total revenue (for the six months ended June 30, 2024: 87.9%)[63] 6 Staff Costs Total staff costs for H1 2025 were 4.767 billion yuan, primarily comprising salaries and benefits, post-employment benefits, medical insurance, and housing provident fund Staff Costs Composition for H1 2025 | Item | 2025 (Million Yuan) | 2024 (Million Yuan) | | :--- | :--- | :--- | | Salaries and Benefits | 3,502 | 3,172 | | Post-employment Benefits | 658 | 620 | | Medical Insurance | 294 | 281 | | Housing Provident Fund | 313 | 302 | | Total | 4,767 | 4,375 | 7 Site Operation and Support Expenses Total site operation and support expenses for H1 2025 were 2.535 billion yuan, mainly consisting of IT service fees, site generator fuel costs, and other site operation expenses Site Operation and Support Expenses Composition for H1 2025 | Item | 2025 (Million Yuan) | 2024 (Million Yuan) | | :--- | :--- | :--- | | Site Operation Expenses | 763 | 862 | | IT Service Fees | 890 | 951 | | Site Generator Fuel Costs | 520 | 719 | | Others | 362 | 370 | | Total | 2,535 | 2,902 | 8 Other Operating Expenses Total other operating expenses for H1 2025 were 4.885 billion yuan, primarily including technical support service fees, credit loss provisions, and equipment leasing/sales costs, with technical support fees mainly for Smart Link and Energy business platform construction Other Operating Expenses Composition for H1 2025 | Item | 2025 (Million Yuan) | 2024 (Million Yuan) | | :--- | :--- | :--- | | Technical Support Service Fees | 2,174 | 1,944 | | Loss on Scrapping/Disposal of Property, Plant and Equipment | 4 | 125 | | Credit Loss Provisions | 737 | 584 | | Other Business Operating Energy Costs | 233 | 352 | | Property and Utilities Expenses | 281 | 243 | | Marketing and Promotion Expenses | 331 | 344 | | Taxes and Surcharges | 219 | 182 | | Equipment Leasing and Sales Costs | 492 | 309 | | Others | 414 | 445 | | Total | 4,885 | 4,528 | - Technical support service fees primarily represent fees paid to third-party service providers for building platforms in the Smart Link business and Energy business[66] - Other business operating energy costs primarily represent electricity costs for battery swap and charging businesses within the Energy business[66] 9 Finance Costs Total finance costs for H1 2025 were 1.260 billion yuan, mainly composed of interest on borrowings and lease liabilities, net of capitalized interest, with an interest capitalization annual rate range of 2.04%–2.28% Finance Costs Composition for H1 2025 | Item | 2025 (Million Yuan) | 2024 (Million Yuan) | | :--- | :--- | :--- | | Interest on Borrowings | 725 | 805 | | Interest on Lease Liabilities | 566 | 542 | | Less: Capitalized Interest | (31) | (67) | | Total | 1,260 | 1,280 | - Interest Capitalization Annual Rate Range: The annual interest rate range for interest capitalized for the six months ended June 30, 2025, was 2.04%–2.28%[67] 10 Income Tax Expense Income tax expense for H1 2025 was 1.847 billion yuan, including current and deferred tax. The company applies a statutory tax rate of 25%, with some provincial branches and subsidiaries enjoying a preferential rate of 15% Income Tax Expense for H1 2025 | Item | 2025 (Million Yuan) | 2024 (Million Yuan) | | :--- | :--- | :--- | | Current Tax | 2,099 | 1,839 | | Deferred Tax | (252) | (132) | | Income Tax Expense | 1,847 | 1,707 | - Statutory Tax Rate: The statutory enterprise income tax rate applicable to the Group in mainland China is 25%[70] - Preferential Tax Rate: Enterprises or branches established in western provinces of mainland China that meet the qualification requirements, Hainan Provincial Branch, and China Tower Smart Link Technology Co., Ltd. (a high-tech enterprise) may enjoy a preferential income tax rate of 15%[70][71] 11 Basic and Diluted Earnings Per Share Basic earnings per share for H1 2025 were RMB 0.3293, retrospectively adjusted for the share consolidation and capital reduction. Diluted earnings per share are equal to basic earnings per share due to the absence of dilutive potential ordinary shares Basic Earnings Per Share for H1 2025 | Indicator | 2025 | 2024 (Restated) | | :--- | :--- | :--- | | Profit Attributable to Company Shareholders (Million Yuan) | 5,757 | 5,330 | | Weighted Average Number of Ordinary Shares Issued after Adjustment for Share Consolidation and Capital Reduction (Million) | 17,481 | 17,481 | | Basic Earnings Per Share (Yuan) | 0.3293 | 0.3049 | - Diluted Earnings: For the six months ended June 30, 2024 and 2025, there were no dilutive potential ordinary shares because all previously granted restricted shares were cancelled in 2022. Therefore, diluted earnings per share are equal to basic earnings per share[74] 12 Property, Plant and Equipment and Construction in Progress In H1 2025, the Group incurred 11.952 billion yuan in additions to property, plant and equipment and construction in progress, and disposed of property, plant and equipment with a net book value of approximately 0.355 billion yuan, resulting in a loss of approximately 4 million yuan - Additions Cost: For the six months ended June 30, 2025, the cost of additions to property, plant and equipment and construction in progress was RMB 11,952 million (for the six months ended June 30, 2024: RMB 13,680 million)[75] - Scrapping and Disposal: For the six months ended June 30, 2025, the net book value of property, plant and equipment scrapped and disposed of was approximately RMB 355 million, resulting in a loss on scrapping/disposal of approximately RMB 4 million[76] 13 Leases As of June 30, 2025, right-of-use assets totaled 32.775 billion yuan, and lease liabilities totaled 23.545 billion yuan. Additions to right-of-use assets were 6.555 billion yuan, and depreciation expense was 5.594 billion yuan in H1 Lease-Related Amounts as of June 30, 2025 | Item | June 30, 2025 (Million Yuan) | December 31, 2024 (Million Yuan) | | :--- | :--- | :--- | | Right-of-Use Assets | 32,775 | 32,247 | | Lease Liabilities (Current) | 6,931 | 7,378 | | Lease Liabilities (Non-current) | 16,614 | 15,555 | | Total Lease Liabilities | 23,545 | 22,933 | - Additions to Right-of-Use Assets: For the six months ended June 30, 2025, the Group recognized additions to right-of-use assets of RMB 6,555 million[77] - Depreciation Expense for Right-of-Use Assets: For the six months ended June 30, 2025, depreciation expense for right-of-use assets was RMB 5,594 million[77] 14 Trade and Other Receivables As of June 30, 2025, trade and other receivables totaled 85.110 billion yuan, with net trade receivables of 78.011 billion yuan primarily from three telecom operators, including a significant amount of commercial acceptance bills Trade and Other Receivables as of June 30, 2025 | Item | June 30, 2025 (Million Yuan) | December 31, 2024 (Million Yuan) | | :--- | :--- | :--- | | Trade Receivables (Net) | 78,011 | 79,436 | | Payments Made on Behalf of Others | 4,808 | 4,600 | | Deposits and Guarantees | 2,292 | 1,872 | | Total | 85,110 | 85,907 | - Trade receivables primarily consist of amounts due from China Mobile Communications Group Co., Ltd., China Telecom Group Co., Ltd., and China Unicom Group Co., Ltd[80] - As of June 30, 2025, bank and finance company acceptance bills included in trade receivables amounted to RMB 798 million, and commercial acceptance bills amounted to RMB 22,740 million[80] 15 Prepayments and Other Current Assets As of June 30, 2025, prepayments and other current assets totaled 3.072 billion yuan, mainly comprising input VAT to be deducted, prepaid short-term and low-value lease rentals, and prepaid site electricity fees Prepayments and Other Current Assets as of June 30, 2025 | Item | June 30, 2025 (Million Yuan) | December 31, 2024 (Million Yuan) | | :--- | :--- | :--- | | Input VAT to be Deducted | 938 | 939 | | Prepayments | 2,130 | 1,912 | | Others | 4 | 4 | | Total | 3,072 | 2,855 | - Prepayments primarily consist of prepaid short-term and low-value lease rentals under IFRS 16 and prepaid site electricity fees[84] 16 Cash and Cash Equivalents As of June 30, 2025, cash and cash equivalents totaled 8.673 billion yuan, primarily consisting of RMB cash and bank deposits Cash and Cash Equivalents as of June 30, 2025 | Item | June 30, 2025 (Million Yuan) | December 31, 2024 (Million Yuan) | | :--- | :--- | :--- | | RMB | 8,456 | 2,410 | | HKD | 217 | 185 | | USD | – | 2 | | LAK | – | 1 | | Total | 8,673 | 2,598 | 17 Share Capital and Dividends As of June 30, 2025, the company's total issued shares were 17,601 million, with share capital of 17.601 billion yuan, following a share consolidation and capital reduction effective February 20, 2025. The Board declared an interim dividend of RMB 0.13250 per share for 2025, and there are no active restricted share incentive schemes Share Capital as of June 30, 2025 | Item | June 30, 2025 (Million Shares) | June 30, 2025 (Million Yuan) | | :--- | :--- | :--- | | Number of Issued Ordinary Shares | 17,601 | 17,601 | - Share consolidation and capital reduction became effective on February 20, 2025, changing the total issued shares from 176,008,471,024 to 17,600,847,102, and reducing total share capital from RMB 176,008,471,024 to RMB 17,600,847,102[86] - Dividend Declaration: On August 5, 2025, the Board resolved to declare a dividend of RMB 0.13250 per ordinary share (pre-tax) for the six months ended June 30, 2025, totaling approximately RMB 2,316 million to the company's shareholders[87] - Restricted Share Incentive Scheme: As of June 30, 2025, all initially granted restricted shares have been cancelled, and no active restricted share incentive scheme is in place[88][89] 18 Borrowings As of June 30, 2025, total long-term borrowings were 56.916 billion yuan, and total short-term borrowings were 44.212 billion yuan. Preferential borrowings matured and were repaid, with long-term borrowings having an effective annual interest rate of 1.35% to 2.50% Borrowings as of June 30, 2025 | Item | June 30, 2025 (Million Yuan) | December 31, 2024 (Million Yuan) | | :--- | :--- | :--- | | Total Long-term Borrowings | 56,916 | 61,869 | | Total Short-term Borrowings | 44,212 | 28,525 | - Preferential Borrowings: As of June 30, 2025, preferential borrowings had matured and been repaid[92] - Long-term Borrowing Interest Rate: For the six months ended June 30, 2025, the effective annual interest rate for long-term borrowings ranged from 1.35% to 2.50%[92] - Short-term Loan Interest Rate: For the six months ended June 30, 2025, all short-term loans were credit borrowings, with an annual interest rate range of 2.01% to 2.27%[93] 19 Trade Payables As of June 30, 2025, total trade payables were 30.668 billion yuan, primarily comprising amounts payable for engineering expenditures, maintenance expenses, and other operating expenses Ageing Analysis of Trade Payables as of June 30, 2025 | Ageing | June 30, 2025 (Million Yuan) | December 31, 2024 (Million Yuan) | | :--- | :--- | :--- | | Not exceeding 6 months | 18,906 | 24,418 | | 6 months to 1 year | 6,562 | 4,095 | | Over 1 year | 5,200 | 4,756 | | Total | 30,668 | 33,269 | 20 Accruals and Other Payables As of June 30, 2025, accruals and other payables totaled 6.952 billion yuan, mainly including contract liabilities, salaries and welfare payable, and temporary deposits/guarantees from suppliers Accruals and Other Payables as of June 30, 2025 | Item | June 30, 2025 (Million Yuan) | December 31, 2024 (Million Yuan) | | :--- | :--- | :--- | | Temporary Deposits and Guarantees from Suppliers | 893 | 974 | | Salaries and Welfare Payable | 1,488 | 467 | | Contract Liabilities | 3,770 | 3,987 | | Accruals | 571 | 445 | | Other Taxes Payable | 230 | 407 | | Total | 6,952 | 6,280 | - Contract liabilities primarily relate to consideration received from customers before the Group satisfies its performance obligations in the Smart Link business and Energy business[98] 21 Capital Commitments As of June 30, 2025, the Group's authorized and contracted capital commitments amounted to 2.514 billion yuan, primarily related to engineering expenditures and property acquisitions Capital Commitments as of June 30, 2025 | Item | June 30, 2025 (Million Yuan) | December 31, 2024 (Million Yuan) | | :--- | :--- | :--- | | Authorized and Contracted (within 1 year) | 2,514 | 2,245 | 22 Related Party Transactions The Group has significant related party transactions with China Mobile, China Unicom, and China Telecom, including providing tower, indoor distribution, and other services, purchasing goods and services, and making payments on behalf of others. Transactions with other government-related entities are conducted on market terms Significant Related Party Transactions for H1 2025 | Transaction Type | 2025 (Million Yuan) | 2024 (Million Yuan) | | :--- | :--- | :--- | | Provision of Tower Business, Indoor Distribution and Other Services | 42,487 | 42,403 | | Purchase of Various Goods and Services | 4,450 | 4,035 | | Property Rental and Site Lease Fees | 133 | 172 | | Payments Made on Behalf of Others | 15,031 | 15,725 | | Recovery of Payments Made on Behalf of Others | 14,823 | 15,626 | - Related Party Balances: As of June 30, 2025, amounts due from related parties totaled 74,174 million yuan, and amounts due to related parties totaled 4,835 million yuan[106][107] - Transactions with Other State-Owned Entities: The Group has collective but not individually significant transactions with other government-related entities, which are conducted on terms similar to those with other non-government-related entities[108] 23 Fair Value Estimation As of June 30, 2025, the Group had no financial assets or liabilities measured at fair value. The carrying amounts of financial assets and liabilities not measured at fair value (such as trade receivables, trade payables, and borrowings) approximate their fair values - Fair Value Measurement: As of June 30, 2025, the Group had no financial assets and financial liabilities measured at fair value[109] - Carrying Amount vs. Fair Value: The carrying amounts of financial assets and financial liabilities not measured at fair value (primarily including trade and other receivables, trade payables, other payables, and borrowings) approximate their fair values due to the short maturity and/or market interest rates of these instruments[109] 24 Non-Adjusting Post-Reporting Period Events The Board declared an interim dividend after the reporting period, with details provided in Note 17(b) - Interim Dividend Declaration: The Board declared an interim dividend after the end of the reporting period, details of which are set out in Note 17(b)[110] Other Information Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - Listed Securities Transactions: For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[113] Changes in Information of Directors and Supervisors During the reporting period, Mr. Cheng Jianjun, Mr. Miao Shouye, Mr. Pei Zhenjiang, and Mr. Wen Bugao were elected as directors, while Mr. Tang Yongbo, Mr. Dong Chunbo, and Mr. Xian Handi resigned due to work changes or personal matters - New Directors: Mr. Cheng Jianjun was elected as a non-executive director on May 20, 2025; Mr. Miao Shouye was elected as a non-executive director on July 23, 2025; Mr. Pei Zhenjiang and Mr. Wen Bugao were elected as independent non-executive directors on July 23, 2025[114][115] - Resigned Directors: Mr. Tang Yongbo resigned as a non-executive director due to work changes; Mr. Dong Chunbo resigned as an independent non-executive director due to age; Mr. Xian Handi resigned as an independent non-executive director due to his intention to devote more time and effort to personal affairs, all effective from July 23, 2025[117] Share Consolidation and Capital Reduction The share consolidation and capital reduction plan was approved by shareholders on December 23, 2024, and became effective on February 20, 2025, reducing the total issued shares from 176,008,471,024 to 17,600,847,102 - Effective Date: The share consolidation and capital reduction became effective on February 20, 2025[119] - Changes: Every ten (10) shares of the company with a par value of RMB 1.00 each were consolidated into one (1) share with a par value of RMB 1.00 each; the company's total issued share capital was reduced from RMB 176,008,471,024 to RMB 17,600,847,102[119] - Total Issued Shares: As of June 30, 2025, the total number of issued shares of the company was 17,600,847,102[119] Restricted Share Incentive Scheme The company adopted a restricted share incentive scheme in 2019 to improve governance and incentivize core employees, which involved purchasing H-shares from the secondary market without issuing new shares. As of December 31, 2023, all initially granted restricted shares were repurchased and cancelled due to unmet vesting conditions, with no active scheme currently - Purpose: To improve the company's corporate governance structure, establish a sound mechanism for shared interests and risks among employees, shareholders, investors, and the company; and effectively attract, retain, and incentivize core employees essential for the company's development[120] - Share Source: The restricted share incentive scheme does not involve the grant of restricted shares that require the issuance of new shares or other new securities by the company, but rather the purchase of a certain number of the company's H-shares by an entrusted agent from the secondary market[122][123] - Grant Limit: The total number of restricted shares granted shall not exceed 10% of the company's total issued share capital at the time of approval of the restricted share incentive scheme by shareholders (adjusted to 17,600,847,102 shares after the share consolidation and capital reduction became effective)[124] - Vesting Status: The relevant restricted shares granted under the first grant scheme failed to vest according to the conditions for the first, second, and third vesting periods, and all were repurchased by the entrusted agent from the grantees at the grant price before December 31, 2023[131][132][134] - Current Status: As of January 1, 2025, and June 30, 2025, there were no outstanding relevant restricted shares granted under the first grant, and no restricted shares were granted to any grantees for the six months ended June 30, 2025[134][135] Interests and Short Positions of Directors, Supervisors and Chief Executive in Shares, Underlying Shares and Debentures of the Company As of June 30, 2025, no directors, supervisors, or the company's chief executive held any interests and/or short positions in the company's or its associated corporations' shares, underlying shares, or debentures requiring disclosure under Part XV of the SFO - Disclosure of Interests: As of June 30, 2025, none of the directors, supervisors, and chief executive of the company had any interests and/or short positions in the shares, underlying shares, or debentures of the company or its associated corporations that were required to be notified to the company and the Hong Kong Stock Exchange under Divisions 7 and 8 of Part XV of the Securities and Futures Ordinance[136] Substantial Interests and Short Positions in Shares and Underlying Shares of the Company As of June 30, 2025, major shareholders including China Mobile Communications Group Co., Ltd., China Unicom Group Co., Ltd., China Telecom Group Co., Ltd., and China Reform Holdings Corporation Ltd. held substantial interests with 5% or more voting rights in the company Substantial Interests of Major Shareholders as of June 30, 2025 | Shareholder Name | Nature of Interest | Class of Shares | Number of Shares(1) | % of Relevant Share Class | % of Total Issued Shares of the Company | | :--- | :--- | :--- | :--- | :--- | :--- | | China Mobile Communications Group Co., Ltd. | Interest held by controlled corporation | Domestic Shares | 4,915,095,371 (L) | 38.00% | 27.93% | | China Unicom Group Co., Ltd. | Interest held by controlled corporation | Domestic Shares | 3,634,583,682 (L) | 28.10% | 20.65% | | China Telecom Group Co., Ltd. | Interest held by controlled corporation | Domestic Shares | 3,608,714,759 (L) | 27.90% | 20.50% | | China Reform Holdings Corporation Ltd. | Legal and beneficial owner/Interest held by controlled corporation | Domestic Shares | 776,067,690 (L) | 6.00% | 4.41% | | GIC Private Limited | Investment manager | H Shares | 279,683,830 (L) | 5.99% | 1.59% | | BlackRock, Inc. | Interest held by controlled corporation | H Shares | 312,676,559 (L) | 6.70% | 1.78% | - Share Number Adjustment: The number of shares held by the above-mentioned relevant shareholders has been adjusted based on the impact of the share consolidation and capital reduction[141] Audit Committee The Board's Audit Committee reviewed the company's adopted accounting standards and practices and discussed financial reporting matters, including the unaudited interim financial information for the six months ended June 30, 2025 - Review Content: The Audit Committee has reviewed the accounting standards and practices adopted by the company and discussed financial reporting matters of the company, including the review of the unaudited interim financial information for the six months ended June 30, 2025[142] Compliance with Corporate Governance Code For the six months ended June 30, 2025, the company consistently complied with the code provisions set out in Appendix C1 to the Listing Rules, "Corporate Governance Code" - Compliance Status: For the six months ended June 30, 2025, the company has complied with the code provisions set out in Appendix C1 to the Listing Rules, "Corporate Governance Code"[143] Compliance with Model Code The company adopted its own "Code for Securities Transactions by Directors, Supervisors and Relevant Employees of China Tower Corporation Limited," based on the Model Code in Appendix C3 of the Listing Rules, and all directors and supervisors confirmed compliance with both codes for the six months ended June 30, 2025 - Compliance Status: Following specific enquiries made by the company to all directors and supervisors, each director and supervisor confirmed that they had complied with the company code and the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules for the six months ended June 30, 2025[144] Contingent Liabilities As of June 30, 2025, the company had no contingent liabilities - Contingent Liabilities: As of June 30, 2025, the company had no contingent liabilities[145] Material Legal Proceedings For the six months ended June 30, 2025, the company was not involved in any material litigation or arbitration, nor was any material litigation or claim pending, threatened, or initiated against it - Material Legal Proceedings: For the six months ended June 30, 2025, the company was not involved in any material litigation or arbitration, and so far as the company is aware, no material litigation or claim was pending, threatened, or initiated against the company[146] Interim Dividend The Board declared an interim dividend of RMB 0.13250 per share (pre-tax) for 2025, expected to be paid around October 31, 2025, to shareholders on record as of September 12, 2025, and detailed policies for dividend currency, exchange rates, and withholding taxes for different shareholder types - Interim Dividend Amount: The Board resolved to declare an interim dividend of RMB 0.13250 per ordinary share (pre-tax) for the six months ended June 30, 2025[147] - Payment Date and Record Date: Expected to be paid on or about Friday, October 31, 2025, to shareholders whose names appear on the company's register of members on Friday, September 12, 2025[147] - Dividend Payment and Tax Policy: Domestic shareholders and Southbound Trading H-share shareholders will be paid in RMB; H-share shareholders other than Southbound Trading shareholders will be paid in HKD, with applicable enterprise income tax or individual income tax withheld based on shareholder identity and tax agreements[149][150][152] Closure of Register of Members To determine H-share shareholders' entitlement to the 2025 interim dividend, the company's H-share register of members will be closed from September 9 to September 12, 2025 - Closure Period: The company's H-share register of members will be closed from September 9, 2025, to September 12, 2025 (both days inclusive)[154] - Purpose: To ensure eligibility for the 2025 interim dividend[154] Compliance with Appendix D2 of the Listing Rules The company confirms that, other than as disclosed, there are no material changes in existing company information regarding matters listed in paragraph 32 of Appendix D2 to the Listing Rules compared to its 2024 annual report - Compliance Status: The company confirms that, other than as disclosed herein, there are no material changes in the existing company information regarding the matters listed in paragraph 32 of Appendix D2 to the Listing Rules compared to the information disclosed in the company's 2024 annual report[155] Forward-Looking Statements Forward-looking statements and opinions in this interim report are based on current plans, estimates, and forecasts, involving risks and uncertainties, and actual results may differ materially from expectations. The company assumes no obligation to correct or update forward-looking statements or any liability for their non-realization - Nature: Any forward-looking statements and opinions in this 2025 interim report are based on current plans, estimates, and forecasts, and thus involve risks and uncertainties[156] - Disclaimer: The company, its directors, and employees assume no obligation to (a) correct or update any forward-looking statements or opinions contained in the 2025 interim report; and (b) any liability arising from the non-realization or inaccuracy of any forward-looking statements or opinions[156]