China Tower Corp. Ltd. Class H · HKEX:788
China Tower Corp. Ltd. Class H — China Tower Corp Ltd H — H1 2024 Earnings Presentation
34 slides from China Tower Corp. Ltd. Class H's earnings presentation, Aug 7, 2024
Slide 1: 2024 Interim Results
2024 Interim Results 7 August 2024
Slide 2: Management
Management Mr. Zhang Zhiyong Executive Director and Chairman Mr. Chen Li Executive Director and General Manager Mr. Gao Chunlei Executive Director Mr. Hu Shaofeng Chief Accountant 2
Slide 3: Content
Content 01 02 03 Overall Operational Financial Performance Performance Performance 3
Slide 4: Overall Performance
01 Overall Performance Zhang Zhiyong Executive Director and Chairman 4
Slide 5: Highlights
Highlights Healthy operational performance， 01 achieved double-digit growth in net profit, cash flow improved significantly “One Core and Two Wings” made steady progress, 02 further fortified business development supported by multiple pillars Digital tower empowered thousands industries, 03 Smart To
Slide 6: Key results: revenue, EBITDA, operating cash flow
RMB48,247 million RMB33,045 million RMB32,830 million Operating Revenue EBITDA* Operating Cash Flow 3.8% 3.2% 184.1% RMB5,330 million 3.731 million 1.80 tenants/site Profit attributable to owners of the Company Number of tenants Tower Tenancy Ratio 10.1% 2.3% 1.7% Note: EBITDA is calculated as opera
Slide 7: Steadfastly Implemented "One Core and Two Wings" Strategy
Steadfastly Implemented “One Core and Two Wings”Strategy Two Wings business revenue (RMB million) 6,005 Operating revenue 5,361 (RMB million) 12.0% 3.8% 48,247 46,461 1H 2023 1H 2024 Revenue structure 0.5% 0.3% 11.5% 12.4% 88.0% 87.3% 1H 2023 1H 2024 1H 2023 1H 2024 Note: Other income mainly refers
Slide 8: TSP Business Maintained Steady Growth
TSP Business Maintained Steady Growth Leveraged advantages in resource sharing to support “5G new infrastructure” construction • Strived to capture all construction demand： TSP business revenue Number of 5G base stations demand completed 329,000 5G base stations demand in (RMB million) during the fi
Slide 9: Further Enhanced Smart Tower Business
Further Enhanced Smart Tower Business Smart Tower business revenue • Deepened development in key areas, such as environment protection, water resources, (RMB million) emergency response and continued to drive mid-to-high point site resources to support digital intelligence governance in various indu
Slide 10: Energy Business Continued to Excel
Energy Business Continued to Excel Energy business revenue (RMB million) 2,023 Focus on industries Quality services 2.4% Product optimization Refined operations • Enhanced intelligent service • Battery exchange business 1,975 triaging proportion of focused on courier and • Promoted large-scale • Str
Slide 11: Deepened Reforms to Stimulate Corporate Vitality
Deepened Reforms to Stimulate Corporate Vitality Promoted digital intelligence Continued to deepen the reform of transformation systems and mechanisms in operation management • Deepened the tenure system and contract management, • Through specific measures such as one-code-for-all for further increa
Slide 12: Rapidly Improved Technological Innovation Capabilities
Rapidly Improved Technological Innovation Capabilities Built six technological Enhanced technological Strengthened research in innovation centers innovation ecosystem key technologies New 5G/6G IoT Energy Higher Large education central institutions Ecosystem SOEs Edge Aviation DAS+ computing Big Dat
Slide 13: Actively Rewards Shareholders
Actively Rewards Shareholders Strived to create value and actively enhance shareholder returns The board of directors recommended payment of an interim dividend of RMB0.01090 per share In order to better reward investors and allow all shareholders to share the results of our high-quality development
Slide 14: Fully Implemented ESG Concepts
Fully Implemented ESG Concepts Effective Corporate Governance Continued to Deepen • Clear governance structure: The authorities Fulfillment of Social and responsibilities of each governance entity Green Development Responsibility are clear, coordinated and effective • Good information disclosure sys
Slide 15: Strategies Underpinned High-quality Development
Strategies Underpinned High-quality Development The Company continued to experience a period of great strategic opportunities, anchoring to the positioning of the “three services provider”, deeply implementing of the strategy of “One Core and Two Wings” and accelerating its course to build a world-c
Slide 16: Operational Performance
Operational 02 Performance Chen Li Executive Director and General Manager
Slide 17: Key Operational Indicators
Key Operational Indicators Indicator 1H 2023 1H 2024 Change Operating revenue (RMB million) 46,461 48,247 3.8% TSP Business 40,905 42,121 3.0% Smart Tower Business 3,386 3,982 17.6% Energy Business 1,975 2,023 2.4% Number of Tower Tenants (thousand) 3,647 3,731 2.3% TSP Tenants 3,423 3,493 2.0% Smar
Slide 18: Steady Revenue Growth Supported by Multiple Pillars
Steady Revenue Growth Supported by Multiple Pillars RMB million 1.0pp 1.6pp 1.3pp 0.1pp -0.2pp +3.8% 46,461 48,247 596 48 740 476 -74 1H 2023 Tower DAS Smart Tower Energy Others 1H 2024 business business business business Contribution to revenue growth: 26.7% 41.4% 33.4% 2.7% -4.2% 18
Slide 19: Tower Business Maintained Healthy Development
Tower Business Maintained Healthy Development Revenue from Tower Business TSP tenants TSP Tower tenancy ratio (RMB million) (thousand) (Tower Tenants / Tower Site) 1.3% 37,957 2.0% 3,493 2.4% 37,481 3,423 1.71 1.67 1H 2023 1H 2024 1H 2023 1H 2024 1H 2023 1H 2024 Innovative support tools to Stepped u
Slide 20: DAS Business Continued to Achieve Rapid Growth
DAS Business Continued to Achieve Rapid Growth Revenue from DAS business Strengthened resource coordination capabilities (RMB million) 4,164 01 3,424 21.6% Strengthened product and solution design capabilities 02 02 Strengthened professional service capabilities 03 03 1H 2023 1H 2024 20
Slide 21: Focused on Key Segments, Smart Tower Showed Strong Growth Momentum
Focused on Key Segments, Smart Tower business Showed Strong Growth Momentum Took advantage of mid-to-high point site resources to empower thousands industries Land Emergency response • Protected farmland and provided • Provided early warning services for natural Tower Monitoring mining site supervis
Slide 22: Smart Tower Business Continued to Improve Development Capabilities
Smart Tower Business Continued to Improve Development Capabilities Strengthened capabilities Improved products and services Deepened collaboration and innovation 01 05 02 04 Platform 03 Innovation and construction Algorithm Companion cooperation • Built a strong platform foundation capabilities Prod
Slide 23: Battery Exchange Business Continued to Consolidate Market-leading Position
Battery Exchange Business Continued to Consolidate Market-leading Position Product iteration Improved service Revenue from battery exchange business and upgrading capabilities (RMB million) • Continued to optimize • Promoted the large-scale intelligent customer service application of new-generation
Slide 24: Sound Development of Power Backup Business
Sound Development of Power Backup Business Deeply cultivated key industries and Revenue from power backup business focused on typical scenarios (RMB million) Telecommunications Finance Education Cultivated 7 824 industries security Healthcare Petrochemical Government 12.9%* 718 Base stations Data sh
Slide 25: Financial Performance
03 Financial Performance Hu Shaofeng Chief Accountant
Slide 26: Key Financial Indicators
Key Financial Indicators (RMB million) 1H 2023 1H 2024 Change Operating revenue 46,461 48,247 3.8% Operating expenses 39,047 40,101 2.7% Operating profit 7,414 8,146 9.9% EBITDA 32,021 33,045 3.2% Net profit 4,841 5,330 10.1% Operating cash flow 11,555 32,830 184.1% 26
Slide 27: Sound Cost Control
Sound Cost Control Operating expenses (RMB million) 1H 2023 1H 2024 Change to revenue ratio Operating expenses 39,047 40,101 2.7% 84.0% 83.1% Depreciation and amortization 24,607 24,899 1.2% 0.9pp Repairs and maintenance 3,559 3,397 -4.6% Employee benefits and 4,001 4,375 9.3% expenses Site operatio
Slide 28: Profitability Continued to Improve
Profitability Continued to Improve Operating profit and operating profit margin EBITDA & EBITDA margin (RMB million) (RMB million) 9.9% 3.2% 8,146 33,045 7,414 32,021 16.0% 16.9% 68.9% 68.5% 1H 2023 1H 2024 1H 2023 1H 2024 Net Profit Net profit margin (RMB million) 10.1% 0.6pp 5,330 4,841 11.0% 10.4
Slide 29: Effective Allocation of CAPEX
Effective Allocation of CAPEX CAPEX Supported business development needs and construction capabilities (RMB million) Accelerated effective allocation of CAPEX 13,729 12,822 608 451 7.1% 1,880 Ensured close coordination with the operators’ network construction plan, 1,857 strived to fully obtain new
Slide 30: Cash Flow Continued to Improve
Cash Flow Continued to Improve Operating cash flow (RMB million) 32,830 21,285 RMB 1H 2023 1H 2024 11,555 million 1H 2023 2H 2023 1H 2024 Operating 11,555 32,830 cash flow Free cash flow 19,101 (RMB million) Free cash -1,267 19,101 flow 2,392 -1,267 1H 2023 2H 2023 1H 2024 30
Slide 31: Capital Structure Remained Stable and Healthy
Capital Structure Remained Stable and Healthy Liabilities to assets ratio As at As at RMB million 31 December 30 June 1.4pp 39.4% 38.0% 2023 2024 Total assets 326,007 316,747 Cash and cash 3,955 4,049 equivalents 2023.12.31 2024.06.30 Total liabilities 128,313 120,259 Gearing ratio 2.0pp 31.4% 29.4%
Slide 32: Appendix: Unaudited Consolidated Statement of Financial Position
Appendix: Extracted from Unaudited Consolidated Statement of Financial Position as at 30 June 2024 (RMB million) 2023.12.31 2024.06.30 Total assets 326,007 316,747 Current assets 78,083 76,220 Non-current assets 247,924 240,527 Property, plant and equipment 201,542 195,970 Construction in progress 1
Slide 33: Q&A Contact us
Q&A Contact us: Tel: +852 28114566 Email: ir@chinatowercom.cn www.china-tower.com
Slide 34: Disclaimer
Disclaimer By attending the m eeting where this presentation is m ade, or by reading The information communicated in this presentation may contain certain the presentation materials, you agree to be bound by the following s tatem ents that ar e or m a y be f or war d - lo ok ing . T hes e s tatem en
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