中国电信(00728) - 2022 - 年度财报

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