Pres ent at today's event, we have the follo wi ng management team. Mr. Zhan g Zhiyong, Executive Director and Chairman of the company. Mr. Chen Li, Executive Director and General Manager. Mr. Hu Shaofeng, Chief Accountant of the company. Today's presentation is divided into two parts. Firstly, the management team is going to present on the performance of the company for the year 2025, and then we're going to have the Q&A session. Now, we're going to give the floor to the Chairman. He's going to present on the overall performance of the company for the year 2025.
Ladies and gentlemen, welcome to the 2025 annual results announcement of China Tower. I'd like to take this opportunity to thank you for your ongoing support and interest in our company. Today's presentation is divided into three parts.
Firstly, I'm going to talk about the overall performance of the company, and then we're going to look at the business performance and financial performance of the company. I will be firstly present to you about the overall performance of the company for 2025, and then General Manager Mr. Chen Li and Chief Accountant Mr. Hu Shaofeng are going to talk about business performance and financial performance. Finally, we are going to answer your questions together. For last year, through our effort, we have the following highlights for the company's performance. Firstly, the overall operational performance remained robust, with net profit increasing 8.4% year-on-year. Secondly, a multi-pillar development structure has taken shape, with revenue from the Two Wings business increasing to 14.9%.
Thirdly, we actively serve digital governance with 252,000 digital towers serving thousands of industries. Fourthly, we continue to enhance technological innovation with our R&D expenses increasing by 80.2% year-on-year. Fifthly, we place strong emphasis in shareholders' returns with the full year dividend payout ratio rising to 77%. In terms of key indicators, we have a chart here. As you can see, the overall performance is very good. China Tower recorded operating revenue of RMB 100.4 billion, up 2.7% year-on-year, and 3.1% on a comparable basis. That's to consider the differences in electricity or energy price. Net profit was RMB 11.63 billion, up 8.4% year-on-year. EBITDA totaled RMB 65.81 billion, down 1.1% year-on-year.
Due to an increase in tenant termination orders resulting from the integration of networks, the growth rate of the number of tenants has slowed down. As of the end of 2025, the number of tenants reached 3.856 million, with a tower tenancy ratio of 1.79, slightly lower than that of last year. The company's cash flow remained sound in 2025. Net cash flow generated from operating activities for the year was RMB 56.12 billion, up RMB 6.65 billion year-on-year. Free cash flow was RMB 26.63 billion, up RMB 9.1 billion year-on-year. In 2025, the company continued to seize the opportunities arising from the Cyber China and Digital China initiatives and the dual carb on goals.
All business segments performed in line with expectations, achieved a steady overall growth, as you can see from the chart. For our TSP business, its revenue reached CNY 84.73 billion, accounting for 84.4% of total revenue. Revenue from the Two Wings business was CNY 14.99 billion. That's close to 15 billion, up 11.9% year on year, and a growth of 14.9% on the comparable basis. Accounting for 14.9% of total revenue. The One Core Two Wings strategy continued to solidify. Regarding the TSP business, the company continues to strengthen its new 5G telecommunication infrastructure and implemented specialized projects such as the signal upgrades and the extension of broadband coverage to all border areas and forests. As a result, TSP business remained stable.
For tower business, capitalizing on clients' ongoing network expansion and leveraging its competitive strengths of efficient delivery, superior maintenance, and optimal cost structure while minimizing management risks. The company built 364,000 5G stations during the year, bringing the total to 3.123 million. More than 95% of 5G projects were delivered through site co-location, helping operators effectively deploy and accelerate the 5G network. For DAS business, the focus was on high-value and livelihood scenarios, while strengthening capabilities in resource coordination and sharing, and collaborative construction. In 2025, a total of 2.47 billion square meters of building floor areas was added, bringing the total coverage to 15.15 billion square meters.
We also added 4,346 kilometers of coverage in subways and railway tunnels, with total coverage reaching 33,661 kilometers. Total coverage continued to expand steadily. Regarding Smart Tower business, the company has firmly established itself in a special digital intelligence spatial governance field, leveraging its rich resources and capabilities. It continued to perform well in Smart Tower business with revenue exceeding RMB 10 billion. First, we continue to deepen key industries and scenarios and steadily increase our market share in key areas such as straw burning, farmland protection, disaster alerts. Secondly, we continued to advance our nationwide one single network for the distributed platform and promoted the application and implementation of large models for spatial governance industries in key scenarios, thereby enhancing the competitiveness of industry products.
Thirdly, we continued to develop high-standard service systems and reinforced unified local support and service teams to ensure a swifter response to customers' iterative development requirements and continuously enhance our companion service capabilities. Fourthly, we deepened the closed-loop management of network information security risks and carried out special initiatives to comprehensively enhance technical protection capabilities for network information security across terminals, client networks, platforms and data. In 2025, the Smart Tower business maintained rapid growth with revenue reaching RMB 10.17 billion, up 14.2% year-on-year. In the Energy business, the company focused on corporations such as battery exchange and power backup, enhanced refined operation capabilities, strengthened core competencies in product services and platforms, and continued to develop the Energy business in a prof essional manner.
Firstly, in terms of product and upgrades and iterations, we completed functional enhancements for battery exchange products, continued to improve the overall performance of the battery exchange systems, enrich the standardized product system for power backup, and promoted China Tower's comprehensive Energy Butler industry solution. Secondly, we strengthened platform support. We enriched intelligent analysis models, comprehensively upgraded the core functions of the Energy Butler platform, and improved the platform support capabilities. Thirdly, we deepened refined operations. We strengthened asset management across the entire life cycle, conducted in-depth analysis of asset value, and improved asset utilization efficiency. We also enhanced the VIP user operation system to improve the ability to manage user segmentation. Fourthly, we optimized services. We strengthened the development of C-end intelligent customer service, optimized the B-end companion service system, and continued to improve service satisfaction.
The energy business achieved revenue of RMB 4.81 billion for the full year, a 7.5% increase year-on-year, a 16.5% increase year-on-year on a comparable basis, with development momentum continuing to strengthen. In 2025, the company strengthened to deepen reforms and improvements, injecting new impetus to the high-quality development of our business. Firstly, we accelerated the deployment of the strategic layout in emerging industries, actively promoted the implementation of the hundred major products, strengthened the integrated support of industry plus technology plus talent, accelerated the commercialization of technological achievements, and actively explore new sectors such as low-altitude economy and edge computing. Secondly, we shifted resources to the front-line regions, implemented tiered management and targeted policies, and improved the evaluation incentive mechanisms, foster an atmosphere of competitive excellence.
We enhanced efficiency and prevented risks through lean management, promoted integration empowerment through digital intelligence transformation, and optimized systems and capabilities through intensified operation. The company continued to strengthen its research on key technologies, accelerated the transformation of scientific and technological achievements, and stepped up efforts in scientific and technological innovation. First, we focused on R&D breakthroughs in key areas including next-generation mobile communications, AI, low-altitude economy, and edge computing networks. The number of invention patents authorized through the year increased by 50.4% year-on-year. Secondly, we focused on the commercialization of achievements and promoted the large-scale application of innovative products such as shared micro repeaters, edge gateways, and the One Code for All solution. Thirdly, we focused on refining the innovation system.
The six scientific and technological innovation centers achieved through high-quality development, where high-level platforms such as postdoctoral workstations and joint innovation centers were upgraded and expanded. The company participated in the formulation of nine international standards and a total of 16 new technology awards at provincial or ministry level and above were received during the year. Further strengthening our scientific and technological innovation system. The company has always adhered to the philosophy of giving back to our shareholders, maintaining a proactive and stable dividend policy to share the fruits of its business development with all shareholders. The board of directors recommended a payment of a final dividend together with the already distributed interim dividend increased by 9.8% compared with last year, and full year dividend payout ratio rose to 77%.
In the future, the company will continue to strengthen our competitiveness, consolidated our development foundation, and comprehensively enhance operational quality, efficiency and profitability, while striving to generate greater value for shareholders. The company is consistently promote the deep integration of ESG into its operations, embedding the philosophy of social responsibility throughout its entire development programs. In terms of social responsibility, the company established a highly efficient emergency communication support system to fully ensure the smooth running of rescue operations, on-site command, and communication security during emergency operations. We have supported network infrastructure in rural and remote areas, empowering Rural Revitalization through digitalization. We also built rider homes to foster a sense of community and convey city's care and warmth. In terms of green development, the company practice shared green and low-carbon operations.
We vigorously promoted energy conservation and emission reduction at base stations and expanded the application of green energy, such as the use of PV and energy storage. We also deepened the application of digital intelligence to empower ecological conservation, promote green travel, encourage convenient low-carbon lifestyles. In terms of the governance foundation, the company continuously enhances corporate governance standards and improves compliance management capabilities through a clearly defined governance mechanism, a sound compliance management system, and a transparent information disclosure and investor communication. Looking ahead, the company will continue to uphold the philosophy of resource sharing and anchor its positioning as a three-service provider. You can find information on the slide and adhere to the One Core Two Wings strategy to continuously enhance core capabilities and core competitiveness.
In terms of the TSP business, we will seize the opportunities presented by such as signal upgrade and expansion of broadband coverage to all border areas and forest and grassland. The upgrade of 5G action plan as well as high-quality urban development strategy centered on innovation, resilience, and smart have brought vast development opportunities, reinforce our competitiveness as a service provider, offering efficient delivery, superior maintenance, and optimal cost structure, while minimizing management risks to realize stable development. As for the Two Wings business, the company will deepen the development of core resources and expand the development of new markets such as low-altitude economy, edge computing, battery charging and exchange, and PV energy storage. This will help to nurturing enhanced capabilities of demand acquisition. Now I'm going to give the floor to Mr. Chen Li, who is going to talk about the business performance of the company.
Thank you, Mr. Chairman. Now, I'm going to report to you the business development of Company. As you can see from the slide, the Company's various business performed very well. Now, I'm going to provide you with further explanation. In 2025, the Company's various business performed very well, and a multi-pillar revenue growth pattern continued to take shape. Operating revenue reached CNY 100.41 billion, representing a year-on-year increase of 2.7% and a growth of 3.1% on a comparable basis. In terms of growth structure, the TSP business maintained sound development. Thanks to the decrease of lower site fees, power generation costs, and other social expenses, together with the impact from the increase in tenant termination orders resulting from the integration of networks, revenue from the tower business recorded a slight decrease.
The DAS business developed rapidly with an incremental contribution of 26.7%, representing an increase of 0.8 percentage point. The incremental revenue contribution from the Two Wings business reached 65.1%, of which the Smart Tower business contributed 42.3%, driving revenue growth by 1.3 percentage point. The incremental revenue contribution from the Energy business was 22.8%, a growth of 0.7 percentage point. Next, I'm going to provide a detailed overview of the development of our key businesses. Regarding the tower business, the company focused on addressing customers' needs. Firstly, we fully implemented embedded service mechanisms to continuously meet customers' demands for in-depth and broad coverage. Secondly, we enhanced network optimization capabilities and strengthened collaboration with TSPs on precise planning and construction to better serve customers.
Thirdly, we adhere to a customer-oriented philosophy, the needs of network coverage in culture and tourism, education, transportation, other sectors, and constantly optimize the business processes and management, comprehensively enhance the capabilities in demand acquisition, resource coordination, and sharing customer service. Annual revenue from the tower business reached RMB 75.5 billion as of the end of 2025. The number of TSP tenants reached 3.567 million, up 0.6% year-over-year. The TSP tenancy ratio was 1.7, maintaining steady overall development. As for the DAS business, we leveraged the integrated resources plus demand development model to continuously solidify our competitiveness as a service provider. We did this by offering efficient delivery, superior maintenance, and optimal cost structure while minimizing management risks and actively expanding the DAS market.
We're deeply cultivating niche markets, seizing opportunities from the signal upgrades initiative to focus on the coverage of DAS business. We also collaboratively advanced special projects such as elevators, underground parking lots, and 5G network upgrades on high-speed railways. At the same time, we strengthened our innovation leadership by driving innovation in active and passive products. Striving to enhance the market competitiveness of RuiTech products and solutions. We also leveraged a series of innovative products such as shared micro repeaters and 5G spread spectrum leaky coaxial cables. Annual revenue from the DAS business totaled RMB 9.23 billion, a year-on-year increase of 9.5%. Regarding the Smart Tower business, we have our feet in the field of special digital governance, leveraging our rich resources and cap abilities.
We continue to deeply cultivate key industries and scenarios, upgrading 252,000 telecommunication towers to digital towers, and steadily increase our market share in areas such as straw burning bans, farmland protection, and disaster alerts. In 2025, the Smart Tower business maintained rapid growth. Revenue from the tower monitoring business reached RMB 6.33 billion, a year-over-year increase of 14.3%, accounting for 62.2% of total revenue from the Smart Tower business. Revenue from the tower sharing business reached RMB 3.84 billion, up 14% year-over-year, accounting for 37.8% of the total Smart Tower revenue. In developing Smart Tower business, the company leveraged its mid-to-high point site resources to continuously advance five core competencies.
Firstly, we deepened the operational capabilities of distributed platform, strengthened the collaborative platform service, responded quickly and precisely to customer needs, and enhanced service value. Secondly, we continuously consolidate the advantages of mid-to-high-end algorithms. Utilizing our library of 900 million mid-to-high-end samples, we strive to achieve greater algorithm accuracy, faster R&D iteration, and broader service scenarios. Thirdly, we constantly improved product capabilities by establishing a nationwide integrated R&D iteration system. 15 specialized industry applications now cover over 30 business scenarios, ensuring efficient sharing of product capabilities. Fourthly, we continuously enhanced service capabilities. We implemented the major infrastructure system to strengthen project delivery, deepened professional operations and maintenance, and reinforced network management platform to ensure high-quality operation of clients' businesses. Fifthly, we continued to strengthen our innovation capabilities.
We drove technological breakthroughs in key fields to promote the commercialization of large models and leveraged the National Postdoctoral Research Workstation to enhance our innovation capacity. Regarding the development of the battery exchange business, the company continuously deepened user operation strategies while improving operation levels across products, services, benefits, and marketing. For example, we increased the allocation ratio of 4.0 battery exchange products, focused on R&D for next-generation 5.0 exchange products in areas such as battery life span and discharge performance, centered on customer satisfaction, and constructed a full-process smart service system to elevate user experience. We accelerated the construction of community charging infrastructure networks to expand the scale of the user base. Through these measures, we effectively elevated the user experience and customer satisfaction, boosted user stickiness, and maintained steady growth in the number of battery exchange users throughout the year.
As of December 31, 2025, China Tower had approximately 1.477 million battery exchange users, an increase of 173,000 from the end of the previous year, further solidifying its leading position in the low-speed electric vehicle battery exchange market. The battery exchange business recorded revenue of RMB 3.03 billion for the year, up 22.4% year-on-year on a comparable basis, maintaining its market-leading position. Regarding the development of the power backup business, first, we deeply cultivated key industries by developing standardized products for typical scenarios and enabling one-stop access to and advance R&D innovation and regional management reforms. The company recruited additional mid- and senior-level scientific and technical talent and regional management personnel while strengthening performance-linked incentives to boost its development momentum.
Second, we upgraded the service model of China Tower's Energy Butler platform to enrich various industry application scenarios and meet customer's needs for power supply security, carbon reduction, energy conservation, and carbon reduction. Third, we optimized the companion service system and leveraged localized maintenance capabilities to improve rapid response capabilities. The revenue from power backup totaled RMB 1.78 billion for the year, up 7.7%. Now Mr. Hu Shaofeng will present the company's financial performance for 2025.
Thank you, Mr. Chen Li. Now I'm going to talk about the key financial performance for 2025. The table shows our key financial indicators for 2025. In 2025, the company's overall performance was sound. Revenue grew steadily, profitability continued to improve, cash flow improved gradually, and a robust capital structure was maintained.
In 2025, the company implemented special projects to reduce costs and increase efficiency. We strictly managed the income-to-expenditure ratio, prioritizing production expenditure directly related to the expansion of the One Core Two Wings business. Reasonable measures were taken to extend the lifespan of aging assets and maintain the sustained and healthy operation of assets. In 2025, operating expenses totaled RMB 83.05 billion, up 2% year on year. The operating expense to revenue ratio was 82.7%, down 0.6% year on year. Depreciation and amortization expenses totaled RMB 48.45 billion, down 3.5% year on year, mainly due to the adjustment of depreciation period for DAS assets and the expiration of depreciation for tower assets acquired in 2015. Repair and maintenance expenses totaled RMB 7.10 billion, up 1.6% year on year.
As the tower assets acquired by the company gradually expire, it is reasonable to extend the life of the region's assets, strengthening safety hazards inspection and rectification for assets, and continuously promoting the construction application of intelligent operation and maintenance functions. In terms of employee and benefits expenses, it totaled RMB 10.08 billion, up 5.3% year-on-year. To advance R&D innovation and regional management reforms, the company recruited additional mid- and senior-level scientific and technical talent and regional management personnel while strengthening performance-linked incentives to boost this development momentum. Site operation and support expenses totaled RMB 6.13 billion, up 11.3% or RMB 620 million year-on-year.
The company accelerated the development of site operations and digital capabilities, resulting in a year-on-year increase of RMB 760 million in costs and IT support expenses related to site operations. Other operating expenses totaled RMB 11.29 billion, up 23.5% or RMB 2.15 billion year-on-year. Business development expenses increased by RMB 1.08 billion, primarily due to increased expenditure on localized technical support services and marketing costs to support the development of the Two Wings business and advance the construction of companion services systems and platform operation management capabilities.
Other expenses increased by RMB 1.07 billion, mainly due to an increase in provisions for bad assets of approximately RMB 550 million, based on a prudent approach, as well as a decrease in net gains from asset disposals of approximately RMB 260 million. In 2025, adhering to an efficiency-oriented approach, the company stepped up efforts to benchmark costs of the individual sites and reduce expenses while increasing efficiency, thereby maintain stable profit growth. Operating profit reached RMB 17.36 billion in 2025, up 6.3% year-over-year. Net profit attributable to parent company reached RMB 11.63 billion, up 8.4% year-over-year.
The company's EBITDA reached RMB 65.81 billion, down 1.1% year-on-year, mainly due to the company's reasonably expanding the service life of aged assets, strengthening the building of digitalization capabilities, etc. EBITDA accounted for 65.5% of operating revenue. In 2025, the company adhered to a total CapEx plus project lean investment management model, aligning total investment allocation with the overall needs of business development and capacity building. It continues to improve the pre-assessment and post-evaluation of projects, with CapEx totaling RMB 29.49 billion for the year, down 7.7% year-on-year. CapEx for the new site construction and augmentation totaled RMB 15.13 billion, down 15.8% year-on-year.
This was primarily due to changes in operation demand, as well as the company's ongoing optimization of construction plans and the adoption of innovative products. CapEx for site replacement improvement reached CNY 5.47 billion, down 19.9% year on year. This was mainly attributable to the company's focus on conducting safety hazard inspection and rectification and others. Capital expenditure for smart tower and energy facilities amounted to CNY 5.97 billion, up 24.8% year on year. This was mainly due to the company's efforts to adapt to the development needs of the Two Wings business, accelerate the construction of a smart tower business platform, and implement product iteration and upgrading. In 2025, the company accelerated advancing the collection of payments for the One Core Two Wings business.
The net cash flow from operating activities for the year amounted to RMB 56.12 billion, up RMB 6.65 billion year on year. Free cash flow reached RMB 26.63 billion, up RMB 9.10 billion year on year. As of the end of 2025, the company's total assets stood at RMB 336.58 billion. Total liability was RMB 132.67 billion, of which RMB 78.15 billion was net debt. The company's liability to asset ratio was 39.4%. Net gearing ratio was 27.7%.
In 2026, the company will continue to deepen its One Core Two Wings business strategy, building upon its professional, intensive, dedicated, efficient, and digitized operating system to enhance its lean management capabilities and drive continuous improvement in operation efficiency and effectiveness to drive the sustainable and healthy growth of the company and create great value for shareholders. Thank you.