China Tower H1 2026 slides: profit jumps 30% as costs fall, cash flow weakens
China Tower Corporation presented its interim results for the first half of 2026 on August 11, 2026. Net profit rose by 30.1% year-on-year to RMB 7.49 billion, while operating revenue fell 1.8% to RMB 48.69 billion. The company's shares fell 0.26% to $9.72, reflecting investor concerns over cash flow. Chairman Zhang Zhiyong, General Manager Chen Li, and Chief Accountant Hu Shaofeng explained the company's transition to its "One Core and Two Wings" strategy.
New business segments demonstrated robust growth, with the Two Wings businesses, Smart Tower and Energy services, expanding faster than the core TSP business. Revenue from the Two Wings segment surged 14.2% to RMB 7.92 billion, accounting for 16.3% of total operating revenue. Smart Tower revenue climbed 12.8% to RMB 5.33 billion, driven by the deployment of digital towers for various industries.
The Energy business also grew 17.3% year-on-year to RMB 2.59 billion, with battery exchange revenue surging 20.6% to RMB 1.60 billion. Despite these positive trends, the company's operating profit margin declined from 17.4% to 22.8%, and EBITDA decreased by 11.6% to RMB 30.25 billion.
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