Changes in Hong Kong stocks | China Tower (00788) fell more than 5% after earnings, profit increased 30% in the first half of the year, but revenue declined and cash flow was negative

The Zhitong Finance App learned that China Tower (00788) fell by more than 5% after the results. As of press release, it had a decrease of 5.14% to HK$9.22, with a turnover of HK$62.71 million.

According to the news, China Tower announced interim results. Revenue for the first half of the year was RMB 48.693 billion, down 1.8% year on year; profit to mother was RMB 7.489 billion, up 30.1% year on year. It is worth noting that the company's operating cash flow in the first half of the year was 7.135 billion yuan, a year-on-year decrease of 21.54 billion yuan, mainly due to the extension of customer payment cycles and an increase in repayments settled by means of notes. Free cash flow for the first half of the year was 4.515 billion yuan, a year-on-year decrease of 20.802 billion yuan.

Zhang Zhiyong, executive director and chairman of China Tower, said that the company's revenue for the first half of the year fell 1.8% year-on-year. He believes this is a phased result, mainly affected by rent-outs and minimalist station renovation brought about by China Telecom and China Unicom's 4G network construction. The related effects are expected to end this year or next. It is expected that the company's tower business and indoor distributed antenna system business will remain basically flat or decline slightly from year to year.