China Tower Corporation Limited (Stock Code: 0788.HK), the world's largest telecommunications infrastructure service provider, has announced its interim results for the six months ended June 30, 2026. Despite a slight decline in overall operating revenue, the company reported a significant increase in net profit, underscoring the effectiveness of its strategic focus on core competitiveness and business diversification.
For the first half of 2026, China Tower's operating revenue reached RMB 48,693 million, a decrease of 1.8% year-on-year, while EBITDA amounted to RMB 30,252 million, down 11.6%. However, profit attributable to owners of the company surged 30.1% to RMB 7,489 million, with a net profit margin of 15.4%. Basic earnings per share rose correspondingly to RMB 0.4284. The company's board has declared an interim dividend of RMB 0.19122 per share, reflecting its commitment to shareholder returns.
The financial performance highlights the success of China Tower's 'One Core and Two Wings' strategy, which focuses on strengthening the core tower business while expanding into smart tower applications and energy services. The 'Two Wings' business, comprising Smart Tower and Energy segments, generated revenue of RMB 7,923 million, accounting for 16.3% of total operating revenue, up 2.3 percentage points from the same period last year.
Smart Tower business revenue grew 12.8% to RMB 5,332 million, driven by the deployment of over 260,000 'digital towers' serving more than 10 industries, including land resources, emergency response, water conservancy, and environmental protection. The company has deepened its 'AI+' initiative, applying large models for spatial digital intelligence governance and positioning itself in emerging fields such as the low-altitude economy. This segment also saw growth in Tower Monitoring, which contributed RMB 3,200 million, representing 60% of Smart Tower revenue.
Energy business revenue increased 17.3% to RMB 2,591 million, with battery exchange services growing 20.6% to RMB 1,595 million. The company now serves approximately 1.493 million battery exchange users, maintaining its market leadership. It has also accelerated the deployment of community charging infrastructure for low-speed electric vehicles, expanding service coverage.
The core tower business, however, experienced a revenue decline of 6.7% to RMB 35,263 million, attributed to customers' network deployment optimization and the continued development of the unified 4G network by China Telecom and China Unicom. Despite this, the number of tower sites managed increased by 23,000 to 2.172 million, and the company maintained a tenancy ratio of 1.69 for TSPs. The DAS business, which provides indoor coverage solutions, grew 9.2% to RMB 5,094 million, supported by initiatives to enhance coverage in high-value scenarios such as high-speed railways and underground spaces.
China Tower's commitment to innovation is evident in its increased R&D investment, up 23% year-on-year, and a 132% surge in patent authorizations. The company received a second prize in the State Science and Technology Progress Award and led the initiation of two additional international standards. These efforts have led to large-scale commercial application of products like new 5G leaky cables and the Tower Monitoring platform.
Looking ahead, Chairman Zhang Zhiyong emphasized the company's alignment with national strategies such as 'Cyberpower', 'Digital China', and 'Dual Carbon' goals. 'We will remain anchored in the 'One Core and Two Wings' strategic positioning, focusing on strengthening our core capabilities and competitiveness, further deepening resource sharing, and improving operating efficiency, to create greater value for shareholders, customers, and society,' he said.
The results reflect China Tower's ability to adapt to market changes and its strategic pivot towards higher-growth areas, positioning it well for future challenges and opportunities in the telecommunications infrastructure sector.
