Investment Rating - The investment rating for China Telecom is "Buy" with a target price of 5.50 HKD [3]. Core Insights - China Telecom reported stable growth in 2023, with total revenue reaching 513.6 billion RMB, a year-on-year increase of 7%. The net profit attributable to shareholders was 30.4 billion RMB, up 10% year-on-year. The company also announced a dividend of 0.2332 RMB per share, achieving a payout ratio of 70%, with plans to increase this to 75% over the next three years [1][2]. Summary by Sections Financial Performance - In 2023, the telecom service revenue was 465 billion RMB, marking a 7% increase and maintaining growth for 11 consecutive years. Mobile communication service revenue reached 195.7 billion RMB, growing by 2%. The mobile user base expanded to 408 million, with a net addition of 16.59 million users, leading the industry for six years [1]. - The average revenue per user (ARPU) for 2023 was 45.4 RMB, a slight increase of 0.4%. Fixed-line and smart home revenue was 123.1 billion RMB, up 4%, with broadband users reaching 190 million and an ARPU of 47.6 RMB, increasing by 3% [1][2]. Digital Transformation - The company's cloud revenue from Tianyi Cloud reached 97.2 billion RMB, a significant increase of 68% year-on-year, with international business revenue exceeding 13.7 billion RMB. The company is enhancing its cloud services with integrated computing platforms, maintaining its leading position in public cloud infrastructure [1][2]. Capital Expenditure and Network Expansion - In 2023, China Telecom's total capital expenditure was 98.8 billion RMB, with 34.8 billion RMB allocated to mobile networks and 35.5 billion RMB to industrial digitalization. The company added 220,000 5G base stations, achieving continuous coverage in towns and effective coverage in developed administrative villages [2]. - The company anticipates a capital expenditure of 96 billion RMB in 2024, a 3% decrease from the previous year, with a focus on mobile network and digitalization investments [2]. Dividend Policy - The company achieved a dividend payout ratio of 70% in 2023, fulfilling its profit distribution commitment made during its A-share issuance. Plans are in place to increase the payout ratio to over 75% within three years, enhancing shareholder returns [2][3].

Investment Rating - The report maintains a "Buy" rating for China Telecom with a target price adjusted to HKD 5.2, reflecting a 27% upside potential from the current stock price of HKD 4.1 [2][3]. Core Views - China Telecom has entered a high-quality development phase focused on improving efficiency and returns, with service revenue expected to maintain good growth over the next three years. The reduction in capital expenditure is anticipated to enhance operating cash flow [2][3]. - The company emphasizes precise cost management and structural optimization, projecting profit growth to outpace revenue growth [2][3]. Summary by Sections Financial Performance - In 2023, China Telecom achieved revenue of CNY 513.6 billion (YoY +6.7%), with service revenue at CNY 465 billion (YoY +6.9%). EBITDA reached CNY 136.8 billion (YoY +5.0%), and net profit was CNY 30.4 billion (YoY +10.3%) [1][3]. - The company plans to increase its dividend payout ratio to over 75% over the next three years, with a dividend of CNY 0.23 per share in 2023 (YoY +19%) [1][3]. Business Segments - Mobile communication service revenue was CNY 195.7 billion (YoY +2.4%), with a mobile ARPU of CNY 45.4 (YoY +0.4%). The number of mobile users reached 408 million, with a net increase of 16.59 million users [1][3]. - The digital industry segment saw revenue of CNY 138.9 billion (YoY +17.9%), with Tianyi Cloud revenue at CNY 97.2 billion (YoY +67.9%), indicating rapid growth and a focus on upgrading to intelligent cloud services [1][3]. Future Outlook - The report anticipates that the capital expenditure for 2024 will be CNY 96 billion, accounting for less than 20% of service revenue, a decrease of 2.9% from the previous year [1][3]. - The company is expected to focus more on the quality of revenue growth in its cloud services, transitioning into a phase of high-quality development [1][2].

Financial Performance - The company's operating revenue for 2023 reached RMB 513.6 billion, a year-on-year increase of 6.7%, with service revenue at RMB 465 billion, up 6.9%, marking 11 consecutive years of growth[3] - EBITDA for 2023 was RMB 136.8 billion, reflecting a 5.0% year-on-year growth, while net profit amounted to RMB 30.4 billion, a 10.3% increase, resulting in basic earnings per share of RMB 0.33[3] - The board proposed a final dividend of RMB 0.090 per share for 2023, leading to a total dividend of RMB 0.2332 per share for the year, a 19.0% increase compared to the previous year, exceeding 70% of the annual profit attributable to shareholders[4] - In 2023, the company's operating revenue reached RMB 513.55 billion, an increase of 6.7% compared to 2022[28] - Service revenue amounted to RMB 464.97 billion, growing by 6.9% year-over-year[30] - The company's net profit attributable to shareholders was RMB 30.45 billion, reflecting a 10.3% increase from the previous year[28] - EBITDA for 2023 was RMB 136.83 billion, with an EBITDA margin of 29.4%[28] - Operating expenses totaled RMB 476.42 billion, increasing by 6.3% and accounting for 92.8% of operating revenue[35] Revenue Breakdown - Mobile communication service revenue reached RMB 195.7 billion, growing 2.4% year-on-year, with mobile value-added and application revenue at RMB 25.8 billion, up 12.4%[3] - Fixed-line and smart home service revenue reached RMB 123.1 billion, a year-on-year increase of 3.8%, with smart home business revenue at RMB 19 billion, up 12.8%[8] - The company's revenue from data and industry services reached RMB 138.9 billion, a year-on-year increase of 17.9%, accounting for 29.9% of service revenue, up 2.8 percentage points from the previous year[9] - Digital industrial services revenue increased significantly to RMB 138,890 million from RMB 117,756 million, a growth of 17.91%[60] Investment and R&D - Research and development expenses increased from RMB 4.7 billion in 2020 to RMB 13.1 billion in 2023, representing a growth of 175.6% over three years[6] - The number of technology-leading talents reached 138 in 2023, a significant increase of 392.9% over three years, while the proportion of R&D personnel rose from 4.2% in 2020 to 11.8%[6] - The company filed over 5,000 invention patent applications in 2023, with self-developed IT systems and business platforms accounting for 45.0% of total systems, an increase of 6.0 percentage points year-on-year[6] Market and Shareholder Value - The market capitalization at the end of 2023 reached 3.2 times that of the end of 2020, demonstrating significant value creation for shareholders[4] - The company aims to increase cash distributions to over 75% of the annual profit attributable to shareholders within three years starting from 2024, enhancing shareholder value[4] User Growth and Service Expansion - The number of mobile users increased by 16.59 million, reaching a total of 408 million users, with an ARPU of RMB 45.4, a 0.4% year-on-year growth[7] - The number of 5G industry application projects increased by 106.3% year-on-year, totaling over 31,000 projects[9] Technological Advancements - The company launched a series of AI models covering four capabilities, enabling over 600 projects in various sectors such as governance and smart cities[11] - The company has achieved a significant enhancement in quantum computing capabilities with the launch of the "Tianyan" quantum computing cloud platform, integrating 13 superposition qubits, which greatly improves processing speed[13] - The company has introduced the world's first operational product "Mobile Direct Satellite" that supports consumer-grade 5G terminal direct connection to satellites for two-way voice and SMS services, enhancing emergency communication capabilities across various industries[14] Environmental and Social Responsibility - The scale of green electricity usage exceeded 1.1 billion kWh, a year-on-year increase of nearly 300%[23] - Greenhouse gas emissions were reduced by over 13 million tons, with a year-on-year decrease of 19.6% in emissions per unit of telecom business volume[22] - The company has signed over 3,000 projects to support ecological protection, pollution prevention, and energy conservation[23] Corporate Governance - The company has maintained compliance with the corporate governance code and has not purchased, sold, or redeemed any of its listed securities during the reporting period[73][75] - The external auditor confirmed that the consolidated performance data for the year ended December 31, 2023, aligns with the audited consolidated financial statements[73] - The company emphasizes its commitment to high levels of corporate governance and effective internal controls to protect the long-term interests of shareholders[74]

Financial Performance - For the first three quarters of 2023, the company's operating revenue reached RMB 384.25 billion, an increase of 6.4% year-on-year, with service revenue also growing by 6.4% to RMB 349.74 billion[1][2][4]. - The company's EBITDA for the same period was RMB 105.65 billion, reflecting a growth of 5.2% compared to the previous year, resulting in an EBITDA margin of 30.2%[1][4][5]. - Net profit attributable to shareholders was RMB 27.10 billion, marking a 10.4% increase year-on-year, with basic earnings per share at RMB 0.30[1][2][4]. - The company reported a net profit of RMB 27,143 million for the nine months ended September 30, 2023, compared to RMB 24,637 million for the same period in 2022, marking an increase of about 10.2%[10]. - Basic and diluted earnings per share for the nine months ended September 30, 2023, were both RMB 0.30, up from RMB 0.27 in the same period of 2022, representing an increase of approximately 11.1%[10]. - The pre-tax profit for the nine months ended September 30, 2023, was RMB 35,014 million, up 10% from RMB 31,831 million in the same period of 2022[12]. User Growth - The total number of mobile users reached approximately 406.1 million, with a net increase of 14.63 million users during the period[3][4]. - The number of 5G package users increased by 39.65 million, totaling approximately 308.1 million users, achieving a penetration rate of 75.8%[3][4]. - Fixed broadband users reached 189.26 million, with a net increase of 83.6 million users, while the average revenue per user (ARPU) for broadband services was RMB 47.8[3][6]. Digitalization and Strategy - The company's digitalization business revenue grew by 16.5% year-on-year, reaching RMB 99.74 billion, driven by cloud, AI, and platform integration[6]. - The company plans to continue implementing its cloud transformation strategy and enhance its core competitiveness in the digital economy[6]. - The company expects to continue its strategic investments in new technologies and market expansion, although specific financial guidance was not provided[13]. - The company emphasizes the importance of cautious investment decisions due to potential risks and uncertainties affecting future performance[13]. Financial Position - Net cash and cash equivalents as of September 30, 2023, amounted to RMB 82,445 million, up from RMB 72,465 million at the end of 2022, indicating a growth of about 13.7%[8]. - Total assets as of September 30, 2023, were RMB 835,598 million, compared to RMB 807,698 million at the end of 2022, reflecting an increase of approximately 3.5%[8]. - Total liabilities as of September 30, 2023, were RMB 391,932 million, an increase from RMB 371,271 million at the end of 2022, indicating a growth of about 5.5%[8]. - The company’s total non-current assets decreased to RMB 652,681 million as of September 30, 2023, from RMB 666,626 million at the end of 2022, a decline of approximately 2.1%[7]. - The company’s total current liabilities increased to RMB 311,267 million as of September 30, 2023, compared to RMB 281,737 million at the end of 2022, reflecting an increase of about 10.5%[8]. - The company’s total equity as of September 30, 2023, was RMB 443,666 million, compared to RMB 436,427 million at the end of 2022, indicating an increase of about 1.6%[8]. Cash Flow and Investments - For the nine months ended September 30, 2023, the net cash generated from operating activities was RMB 112,330 million, a decrease of 3% from RMB 116,018 million in the same period of 2022[11]. - The company’s cash flow from operating activities for the nine months ended September 30, 2023, was RMB 114,597 million, compared to RMB 118,116 million in the same period of 2022[12]. - The net cash used in investing activities was RMB 61,612 million, a decrease of 9% from RMB 68,057 million in the same period of 2022[11]. - The net cash used in financing activities was RMB 40,791 million, a slight decrease from RMB 42,314 million in the same period of 2022[11]. - The company reported an increase in accounts receivable by RMB 32,166 million for the nine months ended September 30, 2023, compared to an increase of RMB 19,654 million in the same period of 2022[12]. - The company’s capital expenditures for the nine months ended September 30, 2023, were RMB 60,564 million, slightly up from RMB 60,251 million in the same period of 2022[11].

中國電信股份有限公司 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部份內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 China Telecom Corporation Limited 中 国 电 信 股 份 有 限 公 司 （於中華人民共和國註冊成立之股份有限公司） （股份編號：728） 截至2023年6月30日止之中期業績公佈 要點 — 公司經營收入為人民幣2,607億元，同比增長7.6%，其中服務收入為人民幣 2,360億元，同比增長6.6%，繼續保持高於行業增幅 — EBITDA為人民幣733億元，同比增長5.0%。淨利潤為人民幣202億元，同比 增長10.2%，每股基本淨利潤為人民幣0.22元 — 移動通信服務收入繼續保持良好增長，達到人民幣1,016億元，同比增長 2.7%，其中，移動增值及應用收入達到人民幣154億元，同比增長19.4%， 5G套餐用戶滲透率達到73.4% ...

Financial Performance and Revenue - Total operating revenue for 2022 reached RMB 481.4 billion, a year-on-year increase of 9.5%, with service revenue at RMB 434.9 billion, up 8.0% year-on-year[19] - EBITDA for 2022 was RMB 130.4 billion, a year-on-year increase of 5.2%, and net profit was RMB 27.6 billion, up 6.3% year-on-year[19] - Mobile service revenue in 2022 was RMB 191 billion, a year-on-year increase of 3.7%, with 5G package user penetration reaching 68.5%[23] - Fixed-line and smart home service revenue in 2022 was RMB 118.5 billion, a year-on-year increase of 4.4%, with gigabit broadband penetration reaching 16.8%[23] - Industrial digitalization revenue in 2022 reached RMB 117.8 billion, a year-on-year increase of 19.7%, with Tianyi Cloud revenue at RMB 57.9 billion, up 107.5% year-on-year[25] - Cybersecurity service revenue in 2022 was RMB 4.7 billion, a year-on-year increase of 23.5%[25] - Operating revenue in 2022 reached RMB 481.448 billion, a 9.5% increase compared to 2021[59][60] - Service revenue in 2022 was RMB 434.928 billion, up 8.0% year-over-year, with a 19.0% growth in industrial digitalization service revenue to RMB 117.756 billion[59][61][64] - Mobile communication service revenue grew 3.7% to RMB 191.026 billion, accounting for 39.7% of total operating revenue[61][62] - Fixed-line and smart home service revenue increased 4.4% to RMB 118.534 billion, representing 24.6% of total operating revenue[61][63] - Revenue from selling goods and other income surged 26.7% to RMB 46.520 billion, driven by strong sales of 5G mobile devices[61][65] - Other service revenue grew 22.7% to RMB 7.612 billion, primarily due to increased rental income from properties[61][67] Dividend and Shareholder Returns - The company proposed a final dividend of RMB 0.076 per share for 2022, totaling RMB 6.955 billion, with a full-year dividend of RMB 0.196 per share, totaling RMB 17.935 billion, representing 65% of the net profit attributable to shareholders[3] - China Telecom plans to increase cash dividends to over 70% of net profit attributable to shareholders within three years after its A-share listing[3] - The company's total dividend for 2022 was RMB 0.196 per share, representing 65% of the net profit attributable to shareholders[19] - The company plans to gradually increase the cash dividend payout ratio to over 70% of net profit attributable to shareholders within three years of its A-share listing[19] - The company's dividend policy aims to balance cash flow and shareholder returns, with adjustments to per-share dividends if share capital changes before the record date[3] - The company prioritizes cash dividends for profit distribution, aiming to balance shareholder returns with sustainable development[96] - The company proposed a final dividend of RMB 0.076 per share for 2022, totaling RMB 6.955 billion, with a full-year dividend of RMB 0.196 per share, totaling RMB 17.935 billion, representing 65% of the annual profit[97] - The total dividend for 2022, including the interim dividend of RMB 0.120 per share (tax inclusive), amounts to RMB 0.196 per share (tax inclusive), totaling RMB 17.935 billion, representing 65% of the company's attributable profit for the year[191] - The cash dividend policy stipulates that the company will distribute no less than 30% of the average distributable profit over any three consecutive years, provided there are no major investment plans or cash outflows[190] User and Market Growth - China Telecom had approximately 391 million mobile users and 181 million fixed broadband users by the end of 2022[1] - Mobile users reached 391 million, with a net increase of 18.75 million[43] - 5G package users reached 268 million, with a penetration rate of 68.5%, an increase of 18.1 percentage points year-on-year[43] - Mobile user ARPU reached RMB 45.2, a year-on-year increase of 0.4%[43] - Broadband users reached 181 million, with a net increase of 11.19 million[43] - Gigabit user penetration rate reached 16.8%, an increase of 9.1 percentage points year-on-year[43] - Broadband comprehensive ARPU reached RMB 46.3, a year-on-year increase of 0.9%[43] - The company's mobile communication service revenue in 2022 was RMB 191 billion, a year-on-year increase of 3.7%, with mobile users reaching 391 million, a net increase of 18.75 million[52] - The company's 5G package users reached 268 million, with a penetration rate of 68.5%, an increase of 18.1 percentage points year-on-year[52] - The company's mobile user ARPU reached RMB 45.2, a year-on-year increase of 0.4%[52] - Fixed network and smart home service revenue reached RMB 118.5 billion, a year-on-year increase of 4.4%, with broadband users reaching 181 million, a net increase of 11.19 million, and gigabit broadband user penetration rate reaching 16.8%, up 9.1 percentage points year-on-year[54] Cloud and Digital Transformation - The company implemented a comprehensive cloud and digital transformation strategy, achieving high-quality development and doubling the revenue of Tianyi Cloud[16] - The company focused on technological innovation, making substantial progress in capability deployment and advancing cloud-network integration to strengthen the digital infrastructure foundation[16] - The company's cloud computing capabilities have significantly improved, with the launch of the "Xirang" platform, which is recognized as one of the top 10 super projects of central enterprises in 2022, and the establishment of the largest quantum metropolitan area network in China, the "Hefei Quantum Metropolitan Area Network"[28] - The company has expanded its cloud computing infrastructure, with over 240 cities covered by the "One City, One Pool" strategy and more than 800 edge computing nodes, adding 1.7 EFLOPS of cloud computing power in 2022, bringing the total cloud computing power to 3.8 EFLOPS[30] - The company has built a nationwide AI computing power network, integrating over 5,000 algorithms and more than 100 scenario-based solutions, and has established more than 700 data centers and over 3,000 edge data centers, with a total of 513,000 IDC racks and a utilization rate exceeding 70%[32] - The company's cloud computing power scale reached 3.8 EFLOPS in 2022, with coverage in over 240 cities[47] - The company has deployed over 800 edge computing nodes and covered over 240 cities with its "one city, one pool" strategy[57] - The company has launched over 5,000 AI algorithms and developed a large-scale urban governance model with over 1 billion parameters[55] - The company has optimized its "2+4+31+X+O" computing power layout, focusing on key regions such as Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area[57] Network and Infrastructure Development - The company developed nearly 15,000 5G 2B commercial projects in 2022, with over 8,000 new projects added during the year[25] - IoT user scale exceeded 400 million, and Tianyi Video Network users surpassed 46 million[26] - The company has built the largest gigabit optical fiber network, with over 6.3 million 10G PON ports, covering over 250 million household users[58] - The company has jointly built and shared over 1 million 5G base stations and over 1.1 million 4G base stations with China Unicom[58] - The company saved over RMB 270 billion in network construction investment through 4G/5G co-construction and sharing with China Unicom, with over 1 million 5G base stations and 1.1 million 4G base stations co-constructed[48] - The company's 10G PON port number exceeded 6.3 million, and the "Cloud Dike" platform covered over 150 cities[47] - The company has built a "Cloud Dike" platform covering over 150 cities, enhancing network security capabilities[58] - The company has achieved significant energy savings, reducing electricity consumption by over 600 million kWh annually through the application of AI technology in mobile base stations and old equipment rooms[34] - The company has saved over RMB 270 billion in network construction costs and reduced annual operating costs by more than RMB 30 billion through the co-construction and sharing of 4G/5G base stations with China Unicom, with over 1 million 5G base stations and 1.1 million 4G base stations shared[34] - The company reduced greenhouse gas emissions by over 13 million tons in 2022 through co-construction and sharing as well as energy-saving measures, with greenhouse gas emissions per unit of information traffic decreasing by 20.6% year-on-year[37] - The company built the first "zero-carbon data center" in Qinghai and actively promoted green cloud network construction and operation[37] Innovation and R&D - The company's domestic invention patent applications and PCT patent applications have increased by 1.4 times and 2 times, respectively, compared to the same period last year[28] - The company's domestic invention patent and PCT patent applications were 1.4 times and 2 times the same period last year, respectively[49] - The company has established a distributed big data lake and developed a cloud-edge collaborative big data computing model, accelerating the digital transformation of internal products, sales, services, operations, and management[35] - The company has formed a 5G industry innovation alliance with over 400 member units, exploring 5G innovative applications and building a 5G industry ecosystem[36] - The company plans to increase investment in technological innovation and R&D, focusing on 5G commercialization and industrial chain development to enhance market competitiveness[92] - The company will strengthen data security and personal information protection, improving core network technology and supply chain security management[93] Corporate Governance and Leadership - The company's board of directors and senior management underwent several changes in 2022, including the appointment of new executive directors and independent non-executive directors[101][102][103] - The company's supervisory board also saw changes in 2022, with new supervisors being appointed and a new chairman of the supervisory board being elected[104][105] - The company's audit committee, remuneration committee, and nomination committee underwent personnel changes effective from January 6, 2023[103] - The board of directors consists of 9 members, including 4 executive directors, 1 non-executive director, and 4 independent non-executive directors, ensuring diversity and independent judgment[165] - The company implemented a board diversity policy in August 2013, focusing on gender, age, educational background, professional experience, and skills to enhance overall performance and sustainable development[165] - The board currently includes one female director, and the company is committed to maintaining gender diversity in its board composition[165] - The board's diversity in expertise, including telecommunications, accounting, finance, law, and management, promotes balanced decision-making and governance[165] - The nomination committee monitors the implementation of the board diversity policy and reviews it periodically to propose revisions[165] - The company strictly adheres to corporate governance codes to ensure the standardization of board and committee workflows, guaranteeing the accuracy and fairness of financial statements for the fiscal period ending December 31, 2022[166] - The board is responsible for major operational decisions, financial planning, and the appointment of senior management, while management oversees daily operations and implements board resolutions[166] - The company provides ongoing training and professional development for directors, including monthly briefings on key financial and operational data[167] - Directors participated in various training activities, including seminars, forums, and reading/writing on topics such as economics, telecommunications, and corporate governance[168] - The company has adopted the "Standard Code of Conduct for Securities Transactions by Directors of Listed Issuers" to regulate securities transactions by directors and supervisors, with full compliance confirmed for 2022[169] - The board held multiple meetings in 2022, including discussions on financial reports, profit distribution, and the appointment of senior executives[170][171] - The company held a total of 11 board meetings in 2022, including 4 on-site meetings and 7 via teleconference[172] - The Chairman and independent non-executive directors conducted one independent communication session to ensure their opinions were fully expressed[172] - The Audit Committee held 7 meetings during the reporting period and had 2 independent communications with external auditors[175][177] - The company reviewed and approved the 2022 Q3 financial report and the use of idle raised funds for cash management in the 21st board meeting[172] - The company reviewed and approved the 2022 Q1 financial report in the April 20th board meeting[176] - The company reviewed and approved the 2022 semi-annual report and the progress of social responsibility work in the August 15th board meeting[178] - The company reviewed and approved the 2022 Q3 financial report in the October 20th board meeting[178] - The Audit Committee proposed multiple practical and professional improvement suggestions to promote the continuous improvement of the company's management[175] - The company reviewed and approved the 2021 annual financial report and the 2022 annual external auditor appointment in the March 16th board meeting[176] Risk Management and Internal Control - The company highlighted risks including economic and policy environment adaptation, operational risks, network and information security risks, and international business risks[4] - The company's risk management and internal control systems are designed to manage risks related to achieving strategic objectives, with a focus on operational efficiency, governance, and compliance[195] - The company has established a comprehensive internal control system, including a manual, implementation rules, and a list of authorities, which is continuously revised to adapt to changes in the internal control environment and business development needs[195] - The company conducted a comprehensive internal control evaluation in 2022, covering all units including newly established professional companies, achieving 100% coverage[198] - In 2022, the company performed independent internal control evaluations on 5 subsidiaries, completing a three-year full coverage of all subsidiaries[199] - The company revised its internal control manual, authority list, and implementation rules in 2022, adding DICT business management processes and optimizing processes for government and enterprise business, procurement management, and financial analysis[197] - The internal audit department regularly reports audit results to the audit committee and board on a quarterly basis, ensuring effective risk management and internal control systems[197] - The company implemented a closed-loop management system for internal control issues, with most identified defects and issues rectified by the end of 2022[199] - The company strengthened IT internal control construction, improving the efficiency, effectiveness, and security of internal monitoring systems[196] - The company conducted a risk assessment for 2023, identifying key risk points in areas such as economic and policy environment adaptation, business operations, and network security[196] - The company's internal control evaluation system follows the guidelines of the 2201 Internal Audit Specific Standards issued by the China Internal Audit Association[198] - The company's board confirmed that the risk management and internal control systems are robust, appropriate, effective, and sufficient as of December 31, 2022[200] - The company emphasized the importance of network and information security, regularly conducting security checks and improving related management regulations[196] Sustainability and Green Development - The company reduced greenhouse gas emissions by over 13 million tons in 2022 through co-construction and sharing as well as energy-saving measures, with greenhouse gas emissions per unit of information traffic decreasing by 20.6% year-on-year[37] - The company built the first "zero-carbon data center" in Qinghai and actively promoted green cloud network construction and operation[37] - The company will focus on green and low-carbon development, integrating sustainability into its products and services[88] - The company has achieved significant energy savings, reducing electricity consumption by over 600 million kWh annually through the application of AI technology in mobile base stations and old equipment rooms[34] - The company has saved over RMB 270 billion in network construction costs and reduced annual operating costs by more than RMB 30 billion through the co-construction and sharing of 4G/5G base stations with China Unicom, with over 1 million 5G base stations and 1.1 million 4G base stations shared[34] - The company's annual electricity savings exceeded 600 million kWh through the application of AI technology in mobile base stations and old equipment rooms[47] Awards and Recognition - The company received multiple awards in 2022, including "Asia's Most Honored Company" for 12 consecutive years and "China's Most Outstanding Enterprise - Telecommunications Services" in the Asiamoney awards[38] - The company was recognized as "Asia's Most Honored Company" for the 12th consecutive year in the 2022 "Asia's Best Corporate Management Team"评选 by Institutional Investor[133] - The company won multiple awards, including "Best Overall ESG" and "Best Investor Relations," in the 2022 "Asia's Best Corporate Management Team"评选[133] - The company was awarded "China's Most Outstanding IPO" and "China's Most Outstanding Enterprise - Telecom Services" in the 2022 Asiamoney Outstanding Enterprise Awards[133] - The company received the "Best Practice for 2022 Annual Report Performance Briefing" from the China Listed Companies Association[133] Employee and Workforce Management - Total number of employees at the end of the reporting period is 280,683, with 31.68% being female employees and 21.30% being female managers[187] - The company has 49,650 employees in management, finance, and administration, 134,426 in sales and marketing, 74,265 in operations and maintenance, and 22,342 in research and product development[187] - Educational background of employees includes 493 with PhDs, 30,207 with master's degrees, 162,695 with bachelor's degrees, 67,958 with associate degrees, and 19,330 with high school education or below[187] - The company emphasizes equal employment opportunities and fair compensation, implementing equity incentives and profit-sharing mechanisms to motivate core talents[188] - The company focuses on training and development, organizing various leadership and professional training

Financial Performance - The operating revenue for Q1 2023 was RMB 130.588 billion, an increase of 9.2% year-on-year, with service revenue at RMB 118.478 billion, up 7.7%[1] - EBITDA for Q1 2023 reached RMB 33.874 billion, growing by 4.7% compared to the same period last year, with an EBITDA margin of 28.6%[1][5] - Profit attributable to shareholders was RMB 7.984 billion, reflecting a 10.5% increase year-on-year, with basic earnings per share at RMB 0.09, up 12.5%[3][5] - The net profit for Q1 2023 was RMB 7.972 billion, an increase from RMB 7.264 billion in the same period last year[10] - The total comprehensive income was RMB 7,883 million, an increase of 11.7% compared to RMB 7,055 million for the same period in 2022[11] - The net profit attributable to shareholders of the company was RMB 7,984 million, up 10.5% from RMB 7,223 million year-over-year[11] - The basic and diluted earnings per share for the period were both RMB 0.09, compared to RMB 0.08 in the same period last year, reflecting a 12.5% increase[11] User Growth and Service Metrics - The total number of mobile users reached 399.87 million, with a net increase of 7.52 million users in Q1 2023[4] - The number of 5G package users increased by 15.25 million to 282.1 million, achieving a penetration rate of 71.0%[4][5] - Fixed broadband users reached 184 million, with a revenue of RMB 31.136 billion, marking a 5.0% year-on-year growth[5] - The average revenue per user (ARPU) for mobile users was RMB 45.8, while the broadband ARPU reached RMB 47.5[5] - The smart home service revenue grew by 15.9% year-on-year, contributing to the overall growth in broadband services[5] Digital Transformation and Future Growth - The company is focusing on digital transformation and enhancing 5G network coverage to improve user experience and service quality[5] - In Q1 2023, the company's digital industry revenue reached RMB 34.971 billion, representing an 18.9% year-over-year growth[6] - The company aims to enhance its digital capabilities and strengthen core technologies to drive future growth[6] - The company plans to deepen its reform mechanisms and stimulate employee innovation to improve core competitiveness[6] Financial Position and Assets - Total assets at the end of the reporting period were RMB 823.656 billion, a 2.0% increase from the previous year[3] - The company's total assets as of March 31, 2023, were RMB 823.656 billion, up from RMB 807.698 billion at the end of 2022[8] - The total liabilities as of March 31, 2023, were RMB 379.345 billion, compared to RMB 371.271 billion at the end of 2022[8] - The company reported a total of RMB 40.734 billion in net accounts receivable as of March 31, 2023, compared to RMB 24.312 billion at the end of 2022[7] - The company’s cash and cash equivalents stood at RMB 74.642 billion as of March 31, 2023, compared to RMB 72.465 billion at the end of 2022[7] Cash Flow and Expenditures - The net cash generated from operating activities was RMB 28,215 million, an increase of 2.2% from RMB 27,613 million in the previous year[12] - Capital expenditures for the period were RMB 14,504 million, down 7.4% from RMB 15,669 million in the same period last year[12] - The company reported a net cash outflow from investing activities of RMB 15,943 million, an improvement from RMB 17,617 million in the previous year[12] - The net cash used in financing activities was RMB 9,977 million, a decrease of 26.5% compared to RMB 13,559 million in the same period last year[12] - As of March 31, 2023, cash and cash equivalents amounted to RMB 74,642 million, an increase from RMB 69,698 million at the end of the same period last year[12] Cautionary Statements - The company emphasized that the financial and operational data provided are based on management accounts and are unaudited, urging investors to exercise caution[15] - Forward-looking statements regarding development strategies and future business plans are subject to known and unknown risks and uncertainties, which may cause actual results to differ significantly from those implied[15]

Financial Performance - The company's operating revenue for 2022 was RMB 481.4 billion, an increase of 9.5% year-on-year, with service revenue reaching RMB 434.9 billion, up 8.0% year-on-year[1]. - EBITDA for 2022 was RMB 130.4 billion, reflecting a year-on-year growth of 5.2%, while net profit was RMB 27.6 billion, a 6.3% increase year-on-year[3]. - The company's net profit attributable to shareholders was RMB 27.593 billion, up 6.3% from 2021, and 12.5% after excluding one-time tax gains from the sale of subsidiaries[18]. - Total comprehensive income for the year reached RMB 28,216 million, an increase from RMB 25,921 million in the previous year, representing a growth of approximately 9.9%[45]. - Profit attributable to shareholders was RMB 27,593 million, compared to RMB 25,949 million in 2021, reflecting an increase of about 6.3%[45]. Revenue Breakdown - Mobile communication service revenue grew to RMB 191.0 billion, a year-on-year increase of 3.7%, with a 5G package user penetration rate of 68.5%[1]. - The smart home business contributed significantly, with fixed-line and smart home service revenue reaching RMB 118.5 billion, up 4.4% year-on-year[1]. - Digital industry revenue reached RMB 117.8 billion, with a year-on-year growth of 19.7%, and Tianyi Cloud revenue was RMB 57.9 billion, up 107.5% year-on-year[1]. - Service revenue reached RMB 434.928 billion, growing by 8.0% year-on-year, with a 8.1% increase after excluding the impact of revenue from the sale of subsidiaries in 2021[18]. - The revenue from mobile communication services was RMB 191,026 million in 2022, compared to RMB 184,158 million in 2021, reflecting an increase of approximately 3.5%[53]. Expenses and Costs - Operating expenses totaled RMB 448.021 billion, increasing by 9.6%, which is 93.1% of operating revenue[25]. - Personnel costs increased by 11.5% to RMB 84.772 billion, constituting 17.6% of operating revenue[30]. - Other operating expenses reached RMB 54.451 billion, a 20.8% increase, accounting for 11.3% of operating revenue[31]. - Depreciation and amortization expenses were RMB 96.932 billion, a 4.3% increase, accounting for 20.1% of operating revenue[27]. Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.076 per share (tax included) for 2022, totaling an annual dividend of RMB 0.196 per share, which represents 65% of the profit attributable to shareholders[4]. - The proposed final dividend for the year ended December 31, 2022, is RMB 0.076 per share, totaling approximately RMB 6.955 billion, pending approval at the annual general meeting[59]. Strategic Initiatives - The company is committed to enhancing profitability and cash flow generation, aiming to increase cash dividends to over 70% of the profit attributable to shareholders within three years of its A-share listing[4]. - The company fully implemented its cloud transformation strategy in 2022, enhancing its digital supply capabilities and aiming for high-quality development[5]. - The company emphasized the importance of cybersecurity and digital transformation as part of its strategic initiatives for future growth[2]. - The company aims to enhance its core competitiveness by accelerating the construction of world-class enterprises and implementing a digital transformation strategy[17]. Technology and Innovation - The company has developed nearly 15,000 5G commercial projects, with over 8,000 new projects added in 2022[8]. - AI core capabilities have been enhanced, with the establishment of a large model for urban governance with over 1 billion parameters[9]. - The company is focusing on technology innovation and has established joint research institutions for next-generation technologies like 6G[10]. - The company added 1.7 EFLOPS of computing power in 2022, bringing the total to 3.8 EFLOPS, a year-on-year increase of 81%[11]. Corporate Governance and Compliance - The company continues to improve its corporate governance and internal control systems to ensure stable operations and protect shareholder interests[3]. - The company has maintained compliance with the corporate governance code and has implemented effective internal control measures throughout 2022[68]. - The external auditor confirmed that the consolidated financial data for the year ended December 31, 2022, is consistent with the audited consolidated financial statements[67]. Environmental and Social Responsibility - The company reduced greenhouse gas emissions by over 13 million tons in 2022, achieving a year-on-year decrease of 20.6% in emissions per unit of information flow[3]. - The company has actively participated in social welfare initiatives, providing various digital products to support small and medium-sized enterprises during the pandemic[3].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不對因本公告全部或任何部份內容而產生或因倚賴 該等內容而引致的任何損失承擔任何責任。 China Telecom Corporation Limited 中国電信股份有限公司 （於中華人民共和國註冊成立之股份有限公司） （股份編號：728） 2022年第三季度報告 中國電信股份有限公司（「本公司」，及其附屬公司合稱「本集團」）董事會（「董事會」） 謹此宣佈本集團截至2022年9月30日止九個月的業績。本公告乃根據香港聯合交易 所有限公司證券上市規則第13.09條及香港法例第571章《證券及期貨條例》第XIVA 部而作出。 重要內容提示： 公司董事會、監事會及董事、監事、高級管理人員保證季度報告內容的真實、準 確、完整，不存在虛假記載、誤導性陳述或重大遺漏，並承擔個別和連帶的法律 責任。 公司負責人、主管會計工作負責人及會計機構負責人（會計主管人員）保證季度報 告中財務報表信息的真實、準確、完整。 2022年第三季度財務報表是否經審計 是 ✔否 – 1 – 一、主要財務數據 本公告所載財務資 ...