China Tower (HKG:0788) is raising the annual caps for multiple service and procurement agreements with its key telecom partners, according to a Hong Kong bourse filing Thursday.
Shares of the communications tower operator fell over 1% in midday trade Friday.
The company lifted the annual cap on value-added services to China Mobile to 1.4 billion yuan and 2.33 billion yuan for 2025 and 2026, respectively, up from the previous limits of 800 million yuan and 1 billion yuan.
The cap on its agreement with China Unicom was raised to 815 million yuan from 500 million yuan for 2025, while limits with China Telecom increased to 820 million yuan and 1.7 billion yuan for 2025 and 2026, compared with 620 million yuan and 760 million yuan earlier.
China Tower also revised its caps under materials procurement and non-telecommunications services agreements with each of the companies.
With China Mobile, the materials procurement limit will rise to 350 million yuan and 450 million yuan for 2025 and 2026, from 280 million yuan and 330 million yuan, while the non-telecommunications services cap will increase to 1.45 billion yuan and 2.17 billion yuan, from 1.02 billion yuan and 1.09 billion yuan.
Likewise, the company's non-telecommunications services cap with China Unicom will be lifted to 730 million yuan and 1.1 billion yuan for 2025 and 2026, from 680 million yuan and 730 million yuan, respectively.
The materials procurement limit with China Telecom will rise to 470 million yuan and 540 million yuan, from 380 million yuan and 430 million yuan.
Separately, China Tower renewed its value-added service framework agreement with China Unicom for another three years through Dec. 31, 2028. The annual caps under the renewed deal were set at 1.31 billion yuan, 1.78 billion yuan, and 2.29 billion yuan for 2026, 2027, and 2028.
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