China Tower Corporation Limited (788) Earnings Call Transcript & Summary

Good evening, everyone. Welcome to China Tower's 2024 Full Year Results Earnings Call. This is Edgar Fu, Investor Relations Director of China Tower. Let me introduce the member of management joining us today. Mr. Zhang Zhiyong, the Executive Director and Chairman; Mr. Chen Li, Executive Director and General Manager; and Mr. Hu Shaofeng, Chief Accountant. [Foreign Language] [Interpreted] Please be remind that the results presentation can be downloaded from our IR website. I'll remind you that this call might contain forward-looking statements that involve certain risks and uncertainties. Examples of these statements include our expectations regarding future growth, including our future outlook, capital allocation and due to operating performance and any other statements regarding matters that are not historical facts. You should be aware that certain factors may affect us in the future, and could cause actual results to differ materially from those expressed in these forward-looking statements. [Foreign Language] [Interpreted] Please note that all lines have been placed on prevent any background noise. After the conclusion of the openings -- the opening speech, there will be a Q&A session. Please follow the instructions given at a time if you would like to ask questions. The following -- the following speech and Q&A session will be conducted in [indiscernible] with English consecutive interpretation. Now I would like to turn for the call to Mr. Zhang Zhiyong Chairman's of China Power. [Foreign Language]

[Foreign Language] [Interpreted] Good evening, everyone. This is Zhiyong Zhang. Welcome for joining us for the China Tower's 2024 annual results earnings call. Here, we have our management, including our General Manager, Mr. Chen Li; and CFO, Mr. Hu Shaofeng, who will have the first part of the presentation, which is the overall review. After the review of our 2024 results, they will answer your questions. Slide #5, for this year to understand our overall performance in 2024, we have performance highlights here. On the highlights of the company's performance for the year were mainly reflect in the following 5 aspects. First, the overall operating performance was done with net profit increased by 10% year-on-year. Second, on our sustained revenue growth supported by multiple pillars and the revenue contribution of Two Wing business to the total revenue increased to 13.7%. Third different critical intelligence governance, we have upgraded 230,000 telecommunication towers to digital towers to serve thousand industries. Fourth, we also empowered business development through application of resource, research outcome. R&D expenses increased by 40%. And lastly, certainly increased our shareholder returns. Our full-year dividend payout ratio increased to 76%. [Foreign Language] [Interpreted] So on Slide #6, in terms of the key indicators, the company operating revenue in 2024 was RMB 97.7 billion, an increase of 4% year-on-year. Net profit was RMB 10.7 billion, an increase of 10% and EBITDA was RMB 66.56 billion, an increase of 4.7% year-on-year as of the end of 2024, the number of tenants reached 3.791 million, and the tower tenancy ratio was 1.1, increased by 1.1%. The level of colocation was further enhanced. And also in 2024, the company's cash flow level improved significantly. Net cash flow generated from the operating of the year was RMB 49.47 billion, an increase of RMB 16.6 billion year-on-year. Free cash flow was RMB 17.5 billion, an increase of RMB 16.4 billion year-on-year. [Foreign Language] [Interpreted] On Slide #7, in 2024, the company sees the opportunity both by the Cyberpower, Digital China, and Dual Carbon goals and the development of the various business met expectation, while overall performance grew steadily. This slide also shows our revenue structure. The revenue from the TSP business reached in RMB 84.1 billion, accounting for 86% of total revenue. Revenue from the Two Wings business was RMB 13.39 billion with this contribution of total revenue increased to 13.7%, which is 1.5% which point increase and the business development of our 1.28 has, therefore, been further fortified. [Foreign Language] [Interpreted] Regarding to the TSP business, the company has actively seized the development opportunities brought about by 5G network registrations and also the coverage. It also continued to improve resource coordination and sharing and enhanced professional operational capabilities, allowing the TSP business to sustain steady growth, so the overall TSP business revenue increased by 2.4%. For tower business, this continued to different sharing and consolidated the foundation for 5G construction. 412,000 5G base stations were built during the year, bringing the total number of 5G base stations to 2.759 million. More than 95% of 5G projects were delivered through co-location. TSP tenancy ratio also increased by 2.4% year-on-year. The company also assisted our operators in contracting 5G network intensively and effectively. For our DAS business, it scraps the opportunities through 5G network coverage in depth to expand the DAS market and also give full play to the advantage of coordinated site entry, construction and co-building per share to promote the expansion of the DAS market. During the year, 2.53 billion square meters of area of buildings were added with total corporate reaching 12.68 billion square meters. The newly added coverage for the subway and high-speed railway tunnels was 5,243 kilometers with total coverage, reaching 29,315 kilometers. The area covered by the DAS business continuing to expect. [Foreign Language] [Interpreted] Okay. Regarding to the Smart Tower business, the company leveraged its vast mid- to high point resource endowment and its professional operating and iterative development capability to further enhance the business, fully serving the Digital China and Beautiful China strategy. The revenue from the Smart Tower business totaled RMB 8.91 billion for the year, an increase of 22.4% year-on-year with overall business achieved rapid growth. First, the company focused on key industries such as emergency responses, water conservation and agriculture and maintained a leading position in new conservation -- in new market share in key scenarios such as disaster alerts and farmland protection. Second, the company also contracted in-depth research on product innovation and strengthened the construction and developments -- and deployments of distributed platform as well as the algorithm research and development for mid- to high point scenarios, qualifying the fundamental capabilities of the platform and to serve the [indiscernible] industries. [Foreign Language] [Interpreted] As for the Energy business, the company centered around its core business such as battery exchange and power backup and focus on the key industries and deepen the refinement and optimization of business operations. The Energy business generated revenue of RMB 4.48 billion for the year, a year-on-year increase of 6.2% and continuously build development momentum. Firstly, ,we try to build strong advantage with optimized products and also promote the next-generation battery exchange products. And secondly, we also upgraded the platform to strengthen support. The company continued to iterate the battery exchange business and power backup platform. Thirdly, we also refined operations to uncover value. The company deepened full life cycle asset management and implemented user operations with better [indiscernible] management to enhance loyalty. Fourth, we also provide quality service to enhance capabilities, the company optimized its intelligent customer service and build a companion service to some to improve our customer satisfaction. [Foreign Language] [Interpreted] On Slide #11, in 2024, the company continued to deepen reforms to inject new impetus into high-quality development. Firstly, we have deepened the reform of system and mechanisms. The company attached great importance to the introduction and training of talent and optimized the incentive mechanisms for talent allocation is also promoted regional reform to similar is the vitality of smallest production and operation units at the grassroot level. The company also comprehensively promote the big construction and maintenance system and continue to centralize management. Secondly, to accelerate deployment in strategic emerging industries. The company continued to increase the revenue contribution of strategic emerging business. It's also increased investment and placed greater efforts into driving technological innovation and also actively expanded emerging areas such as DAS plus [indiscernible] and edge computing. Thirdly, to fully accelerate the development of digital transformation, the company also implemented digital transformation and upgrading in key areas such as 1 code for all assets, intelligence operation and maintenance and energy and carbon lean management, which accelerating the construction of digital enterprises. [Foreign Language] [Interpreted] On Slide #12, we also improved our technological innovation capabilities steadily. The company continued to improve its technological innovation system and speed up the building of technological strengths. First, the company focused on providing technological support for key areas such as AI, grid and low carbon, SaaS and edge computing network. We accelerated the application of innovation achievements. And secondly, the company also focused on the transformation of research outcomes. The number of branded patents for the whole year increased by 68% compared with 2023, and 5 international centers attained, we got 5 international centers attained, and the outcome value of volume of scale promotion also rising by 113% year-on-year. Thirdly, the company also focused on innovation mechanisms and further promoted the [indiscernible] lease management mechanism. In 2024, the R&D investments and the number of R&D staff grew by 40% and 60%, respectively compared with 2023. So the company also focused on collaborative and innovative synergies. That's including a leverage science and technological association and 6 science and technological innovation centers and operated in integrated -- sorry, and operated in integration and innovation with scientific research institutions. Renowned higher education institutes and also leading enterprises to establish a quality innovation ecosystem with our partners. [Foreign Language] [Interpreted] on Slide #13, the company has always attached great importance to returns to our shareholders. And we have adopted an active dividend -- proactive dividend policy that insists on sharing the fruits of our business development with all shareholders. The company's recent share consolidation has officially come into effect on February 20, 2025, with every 10 shares being consolidated into 1 share. Up on this, the final dividend for 2024 is RMB 0.30796 per share, together with the interim dividend already paid. The total dividend for the full year is RMB 0.41 -- sorry -- the total dividend for the year is RMB 0.41696 per share, an increase of 11.5% from 2023, with the dividend payout ratio rising to 76%. Looking ahead, we will continue to accumulate development momentum, improve profitability and create greater value for our shareholders. [Foreign Language] [Interpreted] on Slide 14, which is more about ESG concepts, the harmonious and coexistence of the economy, society and the environment is of concern to the company, and it has integrated the concepts of social responsibility into development. We have actively promoted green transformation and development, sought to reduce investment and carbon emissions through policy of coducing co-share of base station, promoted the upgrading of communication towers into digital towers and used the integration of communication tower -- use the integration of digital and intelligence technology to empower pollution prevention, ecological protection and others things. We also enhanced social welfare, carry out emergency rescue, work for extreme weather conditions and ensure the promise and establishment of communication lifelines and also improve the construction of communication infrastructure in villages and remote areas, and also promoted and contributed to rural revitalization through digital empowerment. We also built a solid foundation for integrity and co-governance based on a governance [ ESOP ] with clear rights and responsibility, the company also continuously improved risk and internal control mechanism, which disclose important information in a true accurate and complete manner and protect the right to inform for all investors. [Foreign Language] [Interpreted] Okay. On the last slide, which is Slide #15. Looking ahead, the company will continue to adhere the philosophy of share development, deepen the implementation of the One Core and Two Wings strategy and also strengthen its core competitiveness. In terms of TSP business, the company will closely follow the progress of digital infrastructure construction and coordinate resources to promote the continuous and stable development of the TSP business. As for the Two Wing business, we will actively implement the digital intelligence governance and green and low carbon transformation and development to scale up the business rapidly and create greater value for our shareholder, customer as well as our society. This concludes the prepared remarks for today. And myself, Mr. Chen Li and CFO, Mr. Hu Shaofeng, will be happy to answer your questions.

[Operator Instructions] The first question comes from [indiscernible].

[Foreign Language] [Interpreted] Let me first translate the question from CICC, [indiscernible] into English. I have two questions. The first question, first of all, congratulate to the company, we have a pretty good 2014 -- sorry, 2024 results with good revenue growth and profit stability also improved as well as improved EBITDA margin. I would like to ask, looking into 2025, do we have any revenue expectation or target in 2025? That's my first question. The second question is about the CapEx, as we can see, in terms of the tower business, where in 2024, we have built more than 568,000 of 5G base station in 2023, but this number decreased to 412,000 5G base station in 2024, but at the same time, the CapEx in 2024 is actually -- was actually higher than 2023. I would like to know why? And also, I would like the company to provide any CapEx guidance in 2025. So that's the 2 questions I would like to ask.

[Foreign Language] [Interpreted] Thank you very much for your long-term interest of our company. First of all, in terms of business development, we continue to see in our One Core and Two Wing strategy. While China is developing itself into a Cyberpower. As you know, 5G network is expanding its coverage in terms of its breadth and depth. And these 2 are running in parallel, actually. And regarding TSP business, last year, there was a Dual Gigabit projects and also the broadband frontier project as a result, again, in terms of breadth and depth of coverage, both have expanded. And in relation to the paper or document on signal upgrades, altogether, 11 main categories of scenarios are covered in which they include 120,000 important places where there are specific signal requirements for both uploading and downloading in the range of 220 to 450 g that is the enhanced requirement for connected continuous coverage. And then there are also broader coverage in areas like escalators, elevators, doge [indiscernible] and so on. And our colocation capabilities have improved as well. So by using coordinated entry resource coordination. I think all these have achieved very good outcome and effect for us. As a result, our revenue has enjoyed stable growth, TSP business also enjoyed stable growth. And in relation to our TSP business, adjusted and steady and stable. For DAS, it has grown fast in the medium rate. [Foreign Language] [Interpreted] Then let me turn to our Smart Tower business. While we are seeing the development of Digital China, digital intelligence governance, then we can also capitalize on our own resource endowment to -- and we enjoy advantages and strength in the middle to high types of points. We focus on the 4 major industries, and as a result, we know them quite a lot in great depth. And by using our resource endowment, we're able to make our customers become more and more sticky that stickiness has improved. And then we empower our customers as well. As a result, we are getting new contracts in new areas that are covered. All these have generated very good outcomes in terms of both the platform as well as algorithms. Last year, we saw rapid growth for our Smart Tower business. In the future, we believe this trend is going to continue. In other words, growth will continue to be fast in low double-digit range. When our scale continues to increase, we believe that our growth will continue to be strong. [Foreign Language] [Interpreted] So let me turn to our energy business. Now the trend is running of green mobility. So our core business in this regard is battery exchange and power backup. Regarding battery exchange, we are focusing a lot on the food delivery guide and we make use of our power exchange and also recharging capabilities. And we keep on doing iteration, targeting these food delivery worker. And nowadays, there are more and more electric bikes. So when we are able to deliver recharging as well as power backup services, we can satisfy the needs in relation to green mobility. And then regarding power backup, well, we focus on the major key industries. So what we are offering is that we make sure that they would be supplied with the power they need by offering power backup capabilities. Our service is one that is very informatized. So in other words, we are able to increase customer stickiness. By doing that, we are providing a lot of service base on service type power backup capabilities. And together with power generation, power backup and battery exchange, we are able to further develop our business into the model of an energy backup. And again, we are capitalizing on our resource endowment, hoping to be able to become an integrated energy service provider. By our colocation capability, we believe that, again, we can enjoy very rapid growth for our energy business in the range of a low double-digit growth rate. [Foreign Language] [Interpreted] So overall speaking, in terms of our business growth, we believe that we will be able to see a stable and steady trend. We believe the growth rate will be low single digits. And colocation is actually a very important business model for us through our One Core business, we're able to enhance our colocation and sharing with our customers. In this way, we can achieve 3 goods and one low. Low, in the sense that we are able to lower costs for both ourselves as well as our customers. So in terms of our products, our marginal costs can come down, while marginal liquidity can increase, in this way, we can improve our efficiency and do a better job of cost control. Looking at our Two Wing and One Core business development, we are capitalizing on our resource and talent and also resource sharing and colocation. We are making use of the bigger operation and maintenance systems that we build for further enhanced sharing. So in this way, we believe that our profit is going to show a high single-digit growth rate. [Foreign Language] [Interpreted] You have also asked a question about CapEx. For last year, CapEx was CNY 31.9 billion. Basically, CapEx was spent in 4 major areas. So this is the same as past years. The first one is newly built site or new construction and also colocation augmentation. The second one is the replacement of existing tower sites. The third area is about our Two Wing business, especially the Smart Tower business. And the fourth area is IT and integrated overall production needs. So in terms of our tower sites, well, last year, the number of tower sites have increased. That is to increase our coverage, both in terms of breadth and depth. And as a result, our DAS investment has risen a lot -- if you refer to the first category of our CapEx spent, i.e., newly built sites construction and augmentation CapEx increased 5.4%, of which the increase in DAS investment was very late. In the future, we'll continue to make investments in order to satisfy the overall 5G development trend and also to increase the depth and breadth of our coverage of tower sites. And in this way, we can also make sure that we tie in our work with the high-speed network development to satisfy 5G-A, 5G+ industrial 5G development needs and also to tie in our work with the [indiscernible] project for operational action. We are going to expand and increase our coverage in high-speed rail in subways, car parks, elevators and escalators as well. In 2025, we believe that CapEx is going to be more or less the same as last year. In some areas, there will be more. In some areas, there will be less. But overall speaking, all these are to be done to satisfy customers' needs and also to enhance our future business.

[Foreign Language] Our management just mentioned about through 2025 guidance on the DAS business growth, we should be able to have like low to mid-teens improvement in terms of the revenue in 2025.

[Foreign Language] The next question comes from [indiscernible]

[Foreign Language] [Interpreted] Okay. Let me translate the question from Charles from HSBC first. I have 2 questions. The first question is more about tower. In 2024, the tower revenue increased, which is less than 1%. Is that relate to the TSP decreasing their capital investment in the tower business or in the 5G infrastructure. And also in 2025, how is the tower business outlook, I would like to know more about outlook in 2025. And also, do you have a sense of how many 5G base station will be added on our tower in 2025, and the 5G advance opportunities that we are providing more construction demand to the company? That's my first question. My second question, which is the Q4 revenue, which is -- which was quite good compared to the year before as well as better than Q1 to Q3. May I know the reason why? And also, I would like to know more about the Two Wing business guidance in 2025. It seems our management already answered the Two Wings revenue guidance in 2025 in the last question. So I don't think that we need to continue to answer the Two Wings business and revenue growth guidance.

[Foreign Language] [Interpreted] Let me first answer your question concerning our tower business revenue. So last year, in terms of competition as well as the number of tower sites, there was development of substantial sales. So for our tower business revenue, it was up 0.9%. And all these have to do with 5G development because in the process of 5G development, both the function as well as the values have increased and enhanced. For our tower business, basically, it is also affected by 2 other expense items. First of all, the price rental expenses came down and also the power generation expenses also came down. Concerning the tower site rental expenses, because we are not able to achieve better coordination and in instant with the property owners. And for the whole industry, now there is also coordinated entry into site. So rental expenses have come down. In relation to the power generation expenses, this has to deal with an improvement in the network and also our standards and capability enhancement in our operation and maintenance system. So as a result, the fair value of our tower has increased. Now as I said just now, tower business revenue was up 0.9% and this can also be transferred into our profitability by realizing our assumptions and our enhancement in value, and if you talk about our One Core business, this is closely related to the needs arising from the wide and deep coverage of 5G network, and also, as mentioned earlier, there are a number of specialized stage projects as a result for our 5G and also tower business development, we believe that they will enjoy a steady and stable development front. We mentioned also 5GA, 5G+ and also the Yangfan project. So for all these, these will improve and enhance the development capabilities for our tower business as well. If you take 5GA as an example, we believe that there is going to be an increase in demand arising from equipment, construction and also the need for multiple users and homes to be connected to each other. So in terms of 5G needs, they come from population needs and also need for more traffic or increased traffic and also the need of having deeper and wider connection and coverage. So we believe that our tower business is going to enjoy a stable and steady growth and development. And don't forget that our network is one that is integrated or integrating both indoor and outdoor to form one stretch of network. So while we are achieving very broad and deep coverage, at the same time, we also look at applications of various industries, which are actually growing. So all these present a very big room for growth and development for our DAS business. In the future, we believe our DAS business is going to see a growth of double digits. And for our One Core business, we believe that while China is developing itself into a Cyberpower business opportunity for our One Core business will be flourishing. And with 5G development in which our customers are boosting the demand with their increase in need and also a technological evolution, we think that with continuous 5G coverage development, then our One Core business is going to enjoy more and more business opportunities as well. [Foreign Language] [Interpreted] Now let me talk about our revenue growth, especially in Q4. So last year, in terms of our revenue growth, as you rightly pointed out, the increase in Q4 was comparatively bigger. So this is related to our strategy and our enhanced development and strategy in relation to our One Core, Two Wings business. So the increase in revenue is within our expectation. So first of all, if you talk about our TSP business, last year, it was up -- in terms of revenue, it was up 4%; Energy business, 2.2%; Smart Tower business, up 22.4%. In Q4, there was a particularly big increase in revenue, especially for our Smart Tower business. So Smart Tower business growth is the biggest. So last year, we focused a lot on serving our stage, in relation to natural disasters related project, emergency response related to projects. And we also worked on some other aid projects. We delivered organizational safeguard and protection. And we also carried out a number of boutique projects, which are exclusive. In Q3 and Q4, we completed the delivery of such projects, mainly related to natural disasters and emergency response. As a result, revenue for Q4, arising from such projects was actually realized because those projects were completed in delivery in Q3 and Q4, so revenue was booked and realized in Q4 in the amount of RMB 388 million. So in terms of both year-on-year comparison and also quarter-on-quarter comparison, there is both increased. So for Smart business -- sorry, Smart Tower business, our revenue in Q4 was RMB 2.84 billion. In Q3, it was RMB 2.09 billion. In 2023, Q4, it was RMB 2.1 billion. So there was an increase 34.2% on a year-on-year basis. On a quarter-on-quarter basis, 35.7%. For this year 2025, we believe that the same trends will be seen. In other words, there would be rapid growth in our revenue.

[Foreign Language] [Interpreted] So next question comes from Duan Bing from Nomura Securities.

[Foreign Language] [Interpreted] Okay. This question is coming from Duan Bing from Nomura. I have 2 questions. The first question is more about accounts receivable in 2024. It seems the company is still facing some challenges on the accounts receivable collection in 2024. So with the company still facing such challenge in 2025, and what type of measure company to improve the cash collection from your customers? That's the first question. The second question is more about EBITDA margin. In 2024, there is some improvement in terms of EBITDA margin. But we can also see that for some items, for example, the staff cost still have some degree of increase in 2024. I would like to know whether the company is also facing different cost pressure in 2025 in terms of different operating expenses.

[Foreign Language] [Interpreted] The second question in relation to EBITDA and EBITDA margins. And I will refer to Mr. Qingzhou Liu to answer your first question. So okay, let me talk about EBITDA and EBITDA margin. Regarding EBITDA margin last year it increased. For EBITDA, it was -- it showed a growth by 4.7%. EBITDA margin up 05% that is because of our positive business development as well as our cost control. In the future, for our company EBITDA margin and EBITDA, both will grow, we will accelerate our development of our energy business, our Smart Power business and also our One Core business. At the same time, we will continue to strengthen cost control, so that we can keep our operating expenses and cost under good control. For our One Core and Two Wings business, there are in different stages of development. Our One Core business is more mature for our Two Wings business, they are in the early stage of development relative speaking. And so since they are developing more rapidly in a high growth stage that would see an increase of expenses. So their EBITDA and EBITDA margin will be slightly lower than the overall EBITDA and EBITDA margin. But when the Two Wings business become more and more mature, they will become stable. And as a result, EBITDA and EBITDA margin will gradually rise when time comes. And so in the future, we believe that the future trend is such that both EBITDA and EBITDA margin will gradually stabilize and will also pick up gradually. And next year, we believe that they will be the same, more or less the same as this year. [Foreign Language] [Interpreted] Regarding our Two Wings business, even though the EBITDA margin is lower than the overall company's EBITDA margin. However, they are able to enhance a less net contribution with the incremental margin enhancement, so actually, the marginal return from the Two Wings business is bigger than the overall total of our company. So as a result, we do make good contribution to our overall profitability.

[Foreign Language] [Interpreted] Let me comment on our accounts receivables. As of 31st December 2024, there was an increase in accounts receivables of RMB 16 billion. Regarding the 3 major TSPs, the increase in accounts receivables were RMB 12.5 billion. Well, actually, for the actual accounts receivables, there was an increase by RMB 1.98 billion. The main thing is about the note's receivable. The increase is RMB 10.5 billion. So -- but then the duration of such notes is only within 3 to 6 months. So basically, we do not see too much risk involved in such note's receivables regarding the 3 main TSPs. But still, our company attached a lot of importance and pay much attention to the account receivables issue. So what we are doing is to exercise a lot of stringent work in terms of the order signing, internal control of the orders and giving comprehensive and full data concerning our revenue as well as our expenses and speeding up our overall cash collection of the receivables. So all these measures are what we have done in order to tackle the accounts receivable issues. [Foreign Language] [Interpreted] And then there are also accounts receivables related to the non-TSP. The amount was an increase of $3.5 billion. For these, we attach a lot of importance to the control of such non-TSP related accounts receivable. So we increased our work concerning debt collection or cash collection. We improved and we tightened our scrutiny and evaluation of all the cash collection terms for high-risk cases, we even did a more stringent job playing at the gatekeeper. So overall speaking, we focus a lot on enhancing our responsibility and work in our cash production against these non-TSP. [Foreign Language] [Interpreted] Talking about the work that we will do in 2025 concerning accounts receivables. Well, first of all, we believe that in terms of TSPs debt collection or cash collection, because the debt has already adjusted or modified, the performance appraisal indicates metrics. From a basis, on operating cash to credibility. So I believe that this is very beneficial to us, especially concerning cash recovery from TSP. As regards to now TSP, actually, we have taken a lot of government projects involving these non-TSP customers. And there are also special project debt or bonds that have been issued. So we continue to follow-up more closely on the collection of such accounts receivables. Besides, we also enhanced our performance appraisal, putting more focus on cash collection and recovery of accounts receivables. So we believe that the total accounts receivables for outstanding amounts in 2025 is going to go back to a more reasonable level. [Foreign Language] [Interpreted] First of all, thank you very much for your interest in our company. Well, this evening, we've answered quite a lot of questions already, but I know that there are still many questions that I yet to answer, but then there would be more chance to come for more communication. As you know, we have our IR team in Hong Kong. And at the same time, we can arrange more face-to-face meetings in the form of reverse road show and based on the questions to us, we will also think about our strategy and our business approach. Well, as I said earlier, we will continue to deepen and also widen our 5G development work, so that we can achieve wider and deeper coverage of 5G network. And in relation to the development of Cyberpower, Digital China and the Dual Carbon goals, well we are lowering our costs and improving our efficiency by all the measures and efforts that we are putting in. Regarding our One Core business, we believe that there will be stable and sound development. This year, our tower business is going to achieve more or less the same results as in 2024. That would be double-digit growth for DAS business. For Smart Power and Energy business, we believe that there will be record growth as well. And there would be increase in EBITDA. EBITDA margin will be more or less the flat. As results to net profit, we anticipate a high single-digit growth, and we hope that we will achieve growth as well in our operating margin -- operating profit margin. Just now we already explained our accounts receivables related policy. We will enhance our performance appraisal work and do more in customer communication, so that our -- we are able to pass on our pressure in recovering our debt and receivables all the way it can take -- all the way to -- conceding it down. So we hope that it will go back to a more reasonable level in terms of total accounts receivables. So basically, that's all I would like to say for this meeting.

[Foreign Language] Thank you for joining our call. Thank you very much. Bye-bye. [Statements in English on this transcript were spoken by an interpreter present on the live call.]