CHINA TELECOM(00728)2024-03-26 08:31Financial 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]