EQS-News / 18/03/2020 / 14:04 UTC+8
Press Release
?For Immediate Release?
China Tower Furthered Resource Sharing
Net Profit Grew Rapidly Payout Ratio Increased to 60%
(18 March 2020, Hong Kong) 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
annual results for the year ended 31 December 2019.
Performance Highlights
RMB million 2019 2018 Change
Operating revenue 76,428 71,819 6.4%
EBITDA 56,696 41,773 35.7%
Profit attributable to owners of the 5,222 2,650 97.1%
Company
Earnings per share (RMB yuan) 0.0297 0.0179 65.9%
Key operating data
Number of tower sites (thousand) 1,994 1,925 3.6%
Number of tower tenants (thousand) 3,239 2,978 8.8%
Tower tenancy ratio (tower tenants / 1.62 1.55 4.5%
tower sites)
In 2019, China Tower maintained stable and healthy growth, recording an
operating revenue of RMB76,428 million, up by 6.4% year-on-year. The
operating efficiency enhanced steadily, with EBITDA1 achieved RMB56,696
million and EBITDA margin reached 74.2%. On the comparable basis2, the
EBITDA margin maintained at a satisfactory level of 57.9%. Profit
attributable to owners of the Company reached RMB5,222 million, up by 97.1%
year-on-year, demonstrating its improving profitability.
The Company's cash flow remained at a sound and healthy level while debt
leveraging level was stable and controlled. Net cash generated from
operating activities amounted to RMB49,935 million in 2019. Capital
expenditures were RMB27,123 million, while free cash flow reached RMB22,812
million. As of 31 December 2019, the Company's total assets reached
RMB338,067 million and interest-bearing liabilities amounted to RMB120,353
million with a gearing ratio3 of 38.5%.
China Tower strive to create good returns to shareholders. After taking into
consideration the Company's profitability, debt levels, cash flow and
capital needed for future development, the Board recommends to pay a final
dividend of RMB0.01455 (pre-tax) per share for the year ended 31 December
2019, equivalent to a payout ratio of 60% of the annual distributable net
profit.
By the end of 2019, the Company has managed a total of 1,994 thousand tower
sites, representing an increase of 3.6% year-on-year. The total number of
tower tenants increased by 8.8% year-on-year to 3,239 thousand. Tenancy
ratio increased to 1.62 from 1.55 at the end of 2018, showing further
improvement in the level of site co-location.
Note1: EBITDA is calculated by operating profit plus depreciation and
amortization.
Note2: The comparable basis represents the comparison of certain financial
information in 2019 and corresponding financial information in 2018,
excluding the impact of the adoption of IFRS 16.
Note3: Gearing ratio is calculated as net debt, which is the net value of
interest-bearing liabilities less cash and cash equivalents, divided by the
sum of total equity and net debts multiplied by 100%.
Adhering to resource sharing and maintaining stable growth in TSP business
**************************************************************************
The demand for in-depth 4G network coverage and the scaling of 5G
infrastructure created plenty of opportunities in the market. In view of
this, China Tower reinforced its sharing strategy by optimizing the sharing
of existing resources while stepping up its efforts to acquire and utilize
social resources to enhance efficiency and create collaborative value. In
addition, the Company has developed an innovative construction and service
model, which promoted the implementation of integrated wireless
communications coverage solutions to satisfy customers' demand for network
coverage, thus further strengthened its core competencies. With a net
addition of 69 thousand sites, China Tower managed a total of 1,994 thousand
tower sites as at the end of 2019. The total number of tower tenants
increased by approximately 226 thousand over the last year and reached to
3,063 thousand. More than 80% of new tenancy demands were satisfied through
co-location. The full-year revenue of tower business increased by 4.1%
year-on-year to RMB71,406 million.
With regard to DAS business, the Company fully leveraged its advantages on
providing coordinated one-stop solutions. By strengthening collaboration
with external parties and offering diverse network solutions, it achieved
rapid market expansion and boosted the growth of DAS business. As of the end
of 2019, China Tower had covered buildings with a cumulative area of
approximately 2,570 million square meters, with an additional coverage of
approximately 1,110 million square meters. It also covered subways and
high-speed railway tunnels with a cumulative length of approximately 3,370
kilometers and 5,318 kilometers, respectively, with additional coverage of
approximately 483 kilometers and 942 kilometers, respectively. The full-year
DAS revenue increased by 46.1% year-on- year to RMB2,658 million.
Striving for innovation and developing growth momentum in Two Wings
*******************************************************************
Building on the abundance of resources and expertise, China Tower extended
the sharing philosophy from within the industry to the wider society. In
June 2019, the Company established two fully-owned subsidiaries, namely
Smart Tower Corporation Limited (??????????) and Energy Tower Corporation
Limited (????????) to accelerate the development of the Two Wings business.
TSSAI and energy operation business recorded revenue of RMB2,080 million, a
year-on-year growth of 70.2%.
TSSAI business maintained fast and healthy growth. Responding to the demand
raised from the evolution of the digital economy and smart society, the
Company leveraged its capabilities on the sites resources and expertise
advantage to broaden service sectors and scope, from site resource services
to higher value-added integrated information services. It promoted the
development of digitalization and informatization of the society. Focusing
on developing key sectors and key customers, centered on the three brands,
Smart Sharing, Smart Connection and Smart Monitoring (????????), China Tower
has launched innovative projects to explore and break new ground in areas
such as video surveillance, edge computing, field supervision, information
and data collection and smart community. As a result, TSSAI business
achieved high-quality growth. As of the end of 2019, the total number of
TSSAI tenants reached 176 thousand, increased by approximately 35 thousand
over the last year.
The layout of our energy operation business was launched effectively. In
view of the demand across society for reliable energy services, by
leveraging its experience in ensuring base-station power supply and
operating traction batteries, the Company has proactively explored and
formulated plans to scale up its energy operation business in the wider
society. Focusing on key products and key sectors, China Tower commenced
pilot projects and built up a comprehensive product portfolio, comprising
power backup and generation, charging and battery exchange. The Company has
cultivated its capabilities
and laid a good foundation for starting our energy operation business to
take off.
Mr Tong Jilu, Chairman of China Tower said, "The fast-approaching 5G era is
driving the transformation and upgrading of the whole information and
communications industry, accelerating the progress of Cyberpower, Digital
China and smart society. This presents enormous opportunities and market
space for the Company. Looking ahead, as an infrastructure services provider
for the information and communications sector, we will continue to uphold
our strategy of resource sharing and strive for high-quality growth. As we
persist with our 'One Core and Two Wings' strategy, we have confidence in
achieving healthy and sustainable development."
End
About China Tower:
Since its incorporation on 15 July 2014, China Tower Corporation Limited
("China Tower") has developed into the world's largest telecommunications
tower infrastructure service provider with compelling market advantage under
the national strategy of Cyberpower. China Tower was listed on the Main
Board of Hong Kong Stock Exchange on 8 August 2018 (Stock Code: 0788.HK),
raising approximately HK$58.8 billion. The Company implements the strategy
of "One Core and Two Wings". "One core" refers to the traditional tower
business and indoor Distributed Antenna System (DAS) business, which provide
services to the TSPs based on site resources; while "Two Wings" refers to
the Trans-sector Site Application and Information (TSSAI) business which
mainly provides tower site resources and data information services to
different industries, as well as energy operation business to satisfy the
growing demands on energy services in the society, such as power backup and
generation, charging, battery exchange and echelon use of batteries. China
Tower adheres to the "sharing" philosophy for business development. It
promotes site co-location and provides a wide range of services to fulfill
the specific needs of its customers. As of the end of December 2019, the
Company's total assets amounted to RMB338,067 million. China Tower operated
and managed 1,994 thousand tower sites across 31 provinces, municipalities
and autonomous regions in the PRC, and served over 3,239 thousand tenants
with the tenancy ratio of 1.62.
Investor and Media Enquiries
PRChina Limited
Ray Sun / Jack Liu / Liting Chen:
(852) 2522 1838 / (852) 2522 1368
E:rsun@prchina.com.hk / zyliu@prchina.com.hk / lchen@prchina.com.hk
Document: https://eqs-cockpit.com/c/fncls.ssp?u=ERNRWEAAPS [1]
Document title: China Tower Furthered Resource Sharing Net Profit Grew
Rapidly Payout Ratio Increased to 60%
18/03/2020 Dissemination of a Marketing Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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March 18, 2020 02:04 ET (06:04 GMT)
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