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SINGAPORE –\u00a0Media OutReach<\/a>\u00a0– 9 August 2021 –\u00a0The world’s largest telecommunications infrastructure service provider China
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Performance Highlights<\/b><\/p>\n
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\n <\/td>\n
<\/p>\n For the six months ended 30 June\u00a0\u00a0<\/b><\/p>\n
\n <\/td>\n
RMB Million<\/b><\/p>\n
\n <\/td>\n
<\/p>\n 2021<\/b>
\n <\/td>\n
<\/p>\n 2020<\/p>\n
\n <\/td>\n
<\/p>\n Change<\/b> <\/b><\/p>\n
\n <\/td>\n
Operating revenue<\/p>\n
\n <\/td>\n
<\/p>\n 42,673<\/b>
\n <\/td>\n
<\/p>\n 39,794<\/p>\n
\n <\/td>\n
<\/p>\n +7.2%<\/b>
\n <\/td>\n
EBITDA<\/p>\n
\n <\/td>\n
<\/p>\n 31,184<\/b>
\n <\/td>\n
<\/p>\n 29,100<\/p>\n
\n <\/td>\n
<\/p>\n +7.2%<\/b>
\n <\/td>\n
Profit
\n <\/td>\n
<\/p>\n 3,457<\/b>
\n <\/td>\n
<\/p>\n 2,978<\/p>\n
\n <\/td>\n
<\/p>\n +16.1%<\/b>
\n <\/td>\n
Basic earnings per share (RMB yuan)<\/p>\n
\n <\/td>\n
<\/p>\n 0.0198<\/b>
\n <\/td>\n
<\/p>\n 0.0170<\/p>\n
\n <\/td>\n
<\/p>\n +16.5%<\/b>
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Key operating data<\/b><\/p>\n
\n <\/td>\n
<\/p>\n \u00a0<\/b><\/p>\n
\n <\/td>\n
Number of tower
\n <\/td>\n
<\/p>\n 2,035<\/b>
\n <\/td>\n
<\/p>\n 2,015<\/p>\n
\n <\/td>\n
<\/p>\n +1.0%<\/b>
\n <\/td>\n
Number of tower
\n <\/td>\n
<\/p>\n 3,423<\/b>
\n <\/td>\n
<\/p>\n 3,313<\/p>\n
\n <\/td>\n
<\/p>\n +3.3%<\/b>
\n <\/td>\n
Tower tenancy ratio
\n <\/td>\n
<\/p>\n 1<\/b>.68<\/b>
\n <\/td>\n
<\/p>\n 1.64<\/p>\n
\n <\/td>\n
<\/p>\n +2.4%<\/b>
\n <\/td>\n
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Our total revenue maintained steady growth in the first half of 2021 while
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Our cash flow remained sound and ample. In the first half of 2021, net
In the first half of 2021, centered around our “One Core and Two Wings”
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Maintaining stable and healthy growth in our TSP
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Given the growth in 5G networks deployments during the first half of 2021,
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We completed the infrastructure of approximately 256,000 5G projects in
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In the first half of 2021, our TSP business revenue amounted to RMB39,808
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Rapidly scaling our Two Wings business, gaining new
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Leveraging our unique advantages in resources and capabilities, we focused
TSSAI business: <\/b>The Company seized opportunities arising from the further
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Energy business: <\/b>We captured opportunities
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Mr Tong Jilu, Chairman of China Tower<\/b> said, “Looking forward in the second half of 2021, we will continue to
\u00a0<\/p>\n Note 1: EBITDA is
Note 2: EBITDA
Note 3: Free cash
Note 4: Gearing
\nTower Corporation Limited<\/a><\/b> (“China Tower”, or the “Company”) (Stock Code:
\n0788.HK) is pleased to announce its interim results for the six months ended 30
\nJune 2021.<\/p>\n
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\n attributable to owners of the Company<\/p>\n
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\n sites (thousand)<\/p>\n
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\n tenants (thousand)<\/p>\n
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\n (tower tenants \/ tower sites)\u00a0\u00a0<\/p>\n
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\nprofitability continued to improve. Our operating revenue recorded a
\nyear-on-year increase of 7.2% to RMB42,673 million; our EBITDA1<\/sup>
\namounted to RMB31,184 million, representing growth of 7.2% year-on-year with an
\nEBITDA margin2<\/sup> of 73.1%. Profit attributable to owners of the
\nCompany totaled RMB3,457 million, up by 16.1% year-on-year, with a net profit
\nmargin of 8.1%.<\/p>\n
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\ncash generated from operating activities amounted to RMB24,238 million. Capital
\nexpenditures amounted to RMB10,360 million, a reduction of 27.6% year-on-year,
\nwhich resulted in our free cash flow3<\/sup> reaching RMB13,878 million, an
\nincrease of 8.6% year-on-year. Our debt leverage ratio was contained at a
\nreasonable and manageable level and our financial position remained healthy. As
\nof 30 June 2021, our total assets were RMB333,195 million and our
\ninterest-bearing liabilities stood at RMB114,191 million, representing a
\ngearing ratio4<\/sup> of 37.0%.<\/p>\n
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\nstrategy, we continued to leverage the benefits of effective resource
\ncoordination and sharing to achieve higher efficiency in our asset operations,
\nand as a result further reinforced our competitiveness. Building on the stable
\ndevelopment of our TSP business, our TSSAI and energy businesses continued to
\nincrease in scale and grow rapidly.<\/p>\n
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\nbusiness, cementing industry leadership<\/b><\/p>\n
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\nwe used our market-oriented approach to focus on customer demands as well as
\nthe new features of 5G network construction. In this context, we utilized our
\nability to coordinate and share resources, making full use of our existing and
\nsocial resources. We have also focused on construction and service model
\ninnovation, in view of improving our asset operating efficiency and meeting our
\ncustomer’s network coverage demands in a cost-effective, intensive and
\nhigh-performing manner. As a result, our TSP business maintained stable growth,
\nfurther cementing our leadership in the telecommunication infrastructure construction
\nand operation sector.<\/p>\n
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\nthe first half of 2021, of which 97% were completed by utilizing existing
\nresources. This underscored our strength in sharing resources to support the
\nlarge-scale construction of 5G networks in a cost-effective manner. At the same
\ntime, the impact of 5G on improving our revenue has begun to show its effects,
\nwith 5G becoming the key growth driver of our TSP business. As of the end of
\nJune 2021, we were managing a total of 2.035 million tower sites, a net
\ncumulative addition of 12,000 sites from the end of 2020. During the same
\nperiod, we gained 53,000 new TSP tenants, bringing the total number to 3.228
\nmillion. Our TSP tenancy ratio also increased from 1.57 at the end of 2020 to
\n1.59. Our DAS business cumulatively covered buildings with a total area of 4.41
\nbillion square meters, up by 41.3% year-on-year. We also covered a total of
\n14,431 kilometers of high-speed railway tunnels and subways, an increase of
\n31.8% year-on-year.<\/p>\n
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\nmillion, an increase of 4.5% year-on-year, of which our tower business revenue
\naccounted for RMB37,722 million while our DAS business revenue accounted for
\nRMB2,086 million, representing a year-on-year growth of 3.7% and 21.3%
\nrespectively.<\/p>\n
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\nmomentum for further development<\/b><\/p>\n
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\non product innovation and the optimization of our platform operations, to
\nmaximize the benefits of our sharing model. As a result, our Two Wings business
\ncontinued to expand rapidly while gaining new momentum for sustainable
\ndevelopment. The Two Wings business has shown potential in supporting and
\nreinforcing the Company’s multi-pillar development plan. In the first half of
\n2021, Two Wings business recorded revenue of RMB2,737 million, an increase of
\n73.3% year-on-year.<\/p>\n
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\ndigitalization and informatization in China, fully leveraged our competitive
\nadvantages in mid-and high-point monitoring and proactively promoted the
\ntransformation of “Telecommunications Towers” into “Digital Towers”. Focusing on
\nour video surveillance services, we enhanced our innovative business model and
\nimplemented unified technology and service standards, platform support and
\noperations management. We integrated algorithms, terminals, transmission and
\ndata management as well as extended our collaboration with industry partners to
\nexpand our ecosystem. We have officially launched our “Tower Monitoring”
\nbusiness to serve a wide range of customers across sectors relating to the
\nnational economy and people’s livelihoods, including environmental remediation,
\ndisaster relief, eco-conservation and village governance. Our integrated
\ninformation service capabilities were further enhanced, providing a strong
\nbasis for the rapid expansion of our TSSAI business. As of 30 June 2021, we had
\n195,000 TSSAI tenants and TSSAI revenue for the first half of 2021 was RMB1,853
\nmillion, an increase of 46.6% year-on-year.<\/p>\n
\n
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\nrelated to the push toward a low-carbon economy and the thriving new energy
\nindustry. Focusing on our core business segments of battery exchange and power
\nbackup, we expanded the scale of our operations and improved our delicate
\nmanagement approach. By standardizing our product platform and putting in place
\noperating and management systems, we strove to enhance our core competitive
\nadvantages as the “largest industry player with best-in-class services”,
\ncreating smart energy applications with “China Tower characteristics”. As of 30
\nJune 2021, we had cumulatively provided around 460,000 users with battery
\nexchange services, a net increase of 160,000 compared with the end of 2020,
\nmaking us the largest supplier of battery exchange services for light electric
\nvehicles in China. We also cumulatively built 17,000 power backup sites, a net
\nincrease of 5,000 compared with the end of last year. In the first half of
\n2021, our energy business recorded revenue of RMB884 million, an increase of
\n180.6% year-on-year.<\/p>\n
\n
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\ncapture opportunities brought about by the development of 5G new
\ninfrastructure, the digital economy and the new energy industry. Adhering to
\nour goal of building an enterprise with the best potential for growth and value
\ncreation, we will continue to leverage our advantages in resource sharing and
\nfurther implement our ‘One Core and Two Wings’ strategy. In doing so, we will
\nbe in the best position to maintain stable revenue growth, enhance the value of
\nour Company and provide better returns to our shareholders.”<\/p>\n
\n
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\ncalculated by operating profit plus depreciation and amortization.<\/p>\n
\n
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\nmargin is calculated by dividing EBITDA by operating revenue, and multiplying
\nthe resulting value by 100%.<\/p>\n
\n
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\nflow is the net cash generated from operating activities minus the capital
\nexpenditures.<\/p>\n
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\nratio is calculated as net debt divided by the sum of total equity and net
\ndebt, then multiplied by 100%.<\/p>\n