Profitability Continuously Improving ; Distributes Interim Dividend for the First Time

HONG KONG SAR - Media OutReach Newswire – 7 August 2024 - The world's largest telecommunications infrastructure service provider China Tower Corporation Limited ("China Tower", or the "Company") (Stock Code: 0788.HK) is pleased to announce its interim results for the six months ended 30 June 2024. Performance Highlights

RMB Million	1H 2024	1H 2023	Change
Operating revenue	48,247	46,461	3.8%
EBITDA[1]	33,045	32,021	3.2%
Profit attributable to owners of the Company	5,330	4,841	10.1%
Basic earnings per share (RMB yuan)	0.0305	0.0277	10.1%
Dividend per share (RMB yuan)	0.01090	-	-
Key operating data
Number of tower sites (thousand)	2,070	2,061	0.4%
Number of tower tenants (thousand)	3,731	3,647	2.3%
Tenancy ratio (tenants / tower site)	1.80	1.77	1.7%

Our operating revenue grew steadily in the first half of 2024 to RMB48,247 million, an increase of 3.8% year-on-year. EBITDA reached RMB33,045 million, an increase of 3.2% year-on-year, with an EBITDA margin[2] of 68.5%. Profit attributable to the owners of the Company was RMB5,330 million, an increase of 10.1% year-on-year and with a net profit margin of 11.0%, demonstrating further improved profitability. Our cash flow improved significantly in the first half of 2024, with net cash generated from operating activities amounting to RMB32,830 million, an increase of RMB21,275 million year-on-year. Capital expenditures stood at RMB13,729 million, with free cash flow[3] reaching RMB19,101 million, up by RMB20,368 million year-on-year. As of 30 June 2024, our total assets amounted to RMB316,747 million, with interest-bearing liabilities of RMB85,985 million and a gearing ratio[4] of 29.4%, representing a decrease of 2.0 percentage points from the end of 2023. Our financial position remains healthy and stable. We remain committed to providing stable returns to our shareholders. After considering our profitability, cash flow and future needs for development, the board of directors of the Company has recommended the payment of an interim dividend of RMB0.01090 per share (pre-tax) for the first time; full-year dividend to be distributed in cash in 2024 will not be less than 75% of the annual distributable net profit for the year under review. We will work towards realizing healthy growth in annual dividend payment per share and creating greater value for shareholders. Reinforced advantages enabled stable growth in TSP business We actively implemented the state strategies of "Cyberpower" and "Digital China", strengthened resource coordination and sharing, and enhanced operational efficiencies. We worked closely with TSPs to increase 5G network construction to fully meet customer network construction needs, while continuing to promote the expansion of 5G network coverage in breadth and depth. This has solidified the foundation for our TSP business to achieve high-quality development. In the first half of 2024, our TSP business generated revenue of RMB42,121 million, an increase of 3.0% year-on-year. Tower business. Through tackling the Dual-Gigabit network joint-entry and challenging projects, as well as special projects such as signal strength upgrade and extension of broadband coverage to all border areas, we used this core competency to help us generate business results. We focused on key scenarios such as high-speed railways and residential properties, as well as new construction needs for low-frequency network construction, relocation and reconstruction. We increased our efforts in tackling difficult sites, reduced entry barriers and costs, and were able to fully meet new construction demands from customers. By adhering to the philosophy of being client-focused across the entire process of demand matching and acquisition, order delivery, billing and payment collection, we consistently optimized our management mechanisms, enhanced service capabilities and customer satisfaction. We developed and deployed a 3D indoor and outdoor simulation support system to visualize the coverage of planned sites and construction solutions, helping TSPs accurately implement their 5G network plans. In the first half of 2024, our Tower business revenue reached RMB37,957 million, up by 1.3% year-on-year. As of 30 June 2024, the Company managed a total of 2.07 million tower sites, an increase of 24,000 sites compared to the end of 2023. We gained 69,000 new TSP tenants since the end of 2023, bringing the total number of TSP tenants to 3.493 million. Our TSP tenancy ratio increased from 1.68 at the end of 2023 to 1.71 as a result of further improvements achieved through site co-location. DAS business. With the implementation of...