Financial Performance - The company's operating revenue reached RMB 150,000 million, an increase of 0.9% year-on-year[5]. - Net profit amounted to RMB 3,607 million, reflecting a year-on-year growth of 0.6%[5]. - Gross profit margin was 11.7%, up by 0.1 percentage points, marking three consecutive years of steady improvement[5]. - Free cash flow increased by 20.4% to RMB 5,214 million[5]. - Operating revenue for the year ended December 31, 2024, was RMB 150,000,103 thousand, a slight increase from RMB 148,614,676 thousand in 2023, representing a growth of approximately 0.26%[33]. - Gross profit for 2024 was RMB 17,596,221 thousand, compared to RMB 17,257,250 thousand in 2023, indicating a growth of about 1.97%[33]. - Net profit attributable to shareholders for 2024 was RMB 3,606,861 thousand, up from RMB 3,584,391 thousand in 2023, reflecting an increase of approximately 0.62%[33]. - Basic/diluted earnings per share for 2024 was RMB 0.521, compared to RMB 0.518 in 2023, showing a growth of about 0.58%[33]. - The company reported a total comprehensive income of RMB 4,510,635 thousand for 2024, compared to RMB 3,831,304 thousand in 2023, marking an increase of approximately 17.7%[34]. Revenue Breakdown - Revenue from domestic telecom operators grew by 2.3% to RMB 83,603 million despite a general decline in CAPEX investment[10]. - Revenue from overseas markets surged by 22.3% to RMB 4,228 million, driven by the "Belt and Road" initiative[12]. - Revenue from application, content, and other services grew by 8.4% to RMB 31,369 million, accounting for 20.9% of total operating revenue[9]. - Revenue from telecommunications infrastructure services was RMB 75,172,237 thousand in 2024, slightly down from RMB 76,136,756 thousand in 2023, a decrease of approximately 1.27%[42]. - Revenue from application, content, and other services increased to RMB 31,368,848 thousand in 2024 from RMB 28,927,306 thousand in 2023, reflecting a growth of about 8.43%[42]. - Revenue from domestic non-operator customer market was RMB 62,169 million, a year-on-year decrease of 2.0%[62]. - Revenue from business process outsourcing services was RMB 43,459 million, remaining stable compared to RMB 43,551 million in 2023[66]. Contracts and Projects - New contract value in strategic emerging industries increased by over 30%[5]. - The company has signed new contracts in strategic emerging businesses, with a total new contract amount increasing by over 30% year-on-year, accounting for 37% of total new contracts, which is an increase of approximately 7 percentage points from the previous year[14]. - In the digital infrastructure sector, the company undertook around 20 large-scale projects with new contract amounts growing over 30% in this area[15]. - In the green low-carbon sector, the new contract amount increased by over 25%, focusing on energy, industrial manufacturing, and transportation[16]. - The smart city sector saw new contract amounts grow by over 40%, emphasizing urban renewal and digital transformation across various industries[17]. - In the emergency safety sector, the new contract amount increased by over 30%, with a focus on public safety governance and network information security capabilities[18]. Research and Development - The company has developed over 40 products worth millions, with 12 comprehensive solutions implemented in over 50% of provinces nationwide, enhancing operational efficiency[20]. - The company holds over 3,900 authorized patents and more than 10,500 software copyrights, maintaining a strong position in the software and information technology services sector[20]. - The company is actively involved in the development of key technologies in 5G-A, blockchain, and artificial intelligence, aiming to create innovative products and platforms[20]. - Research and development expenses for 2024 were RMB 5,568 million, a slight increase of 0.3% from RMB 5,552 million in 2023, representing 3.7% of operating revenue[78]. Corporate Governance and Recognition - The group has received multiple awards for its corporate governance, including "Best CEO" and "Best CFO" in the "2024 Annual Asia Best Managed Companies" awards[28]. - The group ranked 1,429th in the "2024 Forbes Global 2000" list, indicating its recognition in the capital market[28]. - The group has been included in the "Hang Seng Sustainable Development Corporate Benchmark Index" for three consecutive years, reflecting its strong performance in sustainable development[24]. Sustainability and Social Responsibility - The group is committed to green low-carbon development and has developed a green low-carbon plan in response to the national "dual carbon" strategy[24]. - The group is actively participating in rural revitalization and improving livelihoods through projects in digital rural development and smart agriculture[27]. - The group aims to enhance core competitiveness by leveraging new technologies such as big data, cloud computing, artificial intelligence, and quantum communication, focusing on high-quality product and service delivery[22]. - The group has invested approximately 150,000 person-times in disaster relief communication support throughout the year, ensuring communication during major disasters[25]. Financial Position and Cash Flow - Total assets as of December 31, 2024, amounted to RMB 136,617,576 thousand, an increase from RMB 121,789,750 thousand in 2023, representing a growth of approximately 12.16%[35]. - Total liabilities increased to RMB 90,004,424 thousand in 2024 from RMB 78,122,049 thousand in 2023, indicating a rise of about 15.67%[36]. - The company's cash and cash equivalents decreased to RMB 19,638,036 thousand in 2024 from RMB 22,914,865 thousand in 2023, a decline of about 14.9%[35]. - The net cash outflow for 2024 was RMB 3,286 million, a decrease of RMB 4,124 million compared to a net inflow of RMB 838 million in 2023[84]. - Cash generated from operating activities in 2024 was RMB 6,221 million, an increase of RMB 865 million from RMB 5,356 million in 2023[85]. Dividend and Shareholder Information - The board proposed a final dividend of RMB 0.2187 per share, with a payout ratio of 42%[7]. - The dividend will be paid to shareholders listed on the H-share register as of July 7, 2025, with a suspension of share transfer registration from July 2 to July 7, 2025[99]. - The company will withhold a 10% income tax for overseas individual shareholders from Hong Kong or Macau when distributing dividends[101]. - For overseas non-resident corporate shareholders, a 10% corporate income tax will be withheld on dividends distributed[102]. - The annual report for the year ending December 31, 2024, will be sent to shareholders and published on the Hong Kong Stock Exchange website and the company's website[104].

Financial Performance - Operating revenue for the first half of 2024 reached RMB 74,412 million, a year-on-year increase of 1.7%, with service revenue growing by 3.0%[6] - Net profit attributable to shareholders was RMB 2,125 million, reflecting a 4.4% increase, outpacing revenue growth by 2.7 percentage points[9] - Gross profit margin improved to 10.9%, up 0.2 percentage points compared to the previous year[11] - Basic earnings per share increased to RMB 0.307, a 4.4% rise from the previous year[11] - The company's net profit attributable to shareholders was RMB 2,125 million, representing a 4.4% increase from RMB 2,034 million in the first half of 2023[36] - Gross profit for the first half of 2024 was RMB 8,116 million, up 3.6% from RMB 7,834 million in the same period of 2023, with a gross margin of 10.9%[34] - The total comprehensive income for the period was RMB 2,685,917 thousand, an increase of 7.6% from RMB 2,495,205 thousand in 2023[40] - For the six months ended June 30, 2024, the company reported a total comprehensive income of RMB 2,612,916 thousand, compared to RMB 2,417,251 thousand for the same period in 2023, representing an increase of approximately 8.1%[44] Revenue Breakdown - Revenue from non-telecom operator group customers was RMB 32,409 million, marking a 2.5% year-on-year growth and driving overall customer revenue increase[16] - Revenue from overseas markets reached RMB 1,979 million, showing a significant growth of 26.0% year-on-year[16] - The telecommunications infrastructure service revenue was RMB 37,666 million, remaining stable compared to the previous year, accounting for 50.6% of total operating revenue[12] - Revenue from the domestic telecommunications operator market was RMB 40,024 million, a slight increase of 0.1%; revenue from the domestic non-operator market rose by 2.5% to RMB 32,409 million; and overseas market revenue surged by 26.0% to RMB 1,979 million[31] - Revenue from telecommunications infrastructure services was RMB 37,666,188 thousand, showing a marginal decrease from RMB 37,687,865 thousand in the previous year[52] - The revenue from logistics services increased to RMB 2,074,889 thousand in the first half of 2024, compared to RMB 1,963,350 thousand in the same period of 2023, marking an increase of approximately 5.7%[86] Contract and Project Growth - The company signed new contracts with a growth rate exceeding 40%, reflecting strong demand in strategic emerging industries[9] - New contracts in strategic emerging industries grew by over 40% year-on-year, accounting for more than 35% of total new contracts signed in the first half of the year[17] - In the digital infrastructure sector, new contracts increased by over 35% year-on-year, with successful projects in finance, energy, and manufacturing[18] - The smart city sector saw new contracts grow by over 40% year-on-year, winning multiple large EPC projects in digital government and smart transportation[19] - New contracts in the green low-carbon sector surged by over 60% year-on-year, with green low-carbon projects making up more than half of the strategic emerging industry projects[20] - The emergency safety sector experienced a year-on-year growth of over 40% in new contracts, focusing on information security and emergency management products[21] Research and Development - R&D investment reached RMB 2,314 million, an increase of 11.1% year-on-year, with over 3,600 authorized patents and 9,700 software copyrights obtained[22] - Software development and system support revenue grew by 11.4% year-on-year, contributing 24% to overall revenue growth[22] Cash Flow and Investments - Free cash flow was negative at RMB (2,165) million, compared to RMB (1,122) million in the previous year, indicating increased capital expenditures[6] - The company’s investment activities resulted in a net cash outflow of RMB 6,454,076 thousand for the six months ended June 30, 2024, compared to RMB 899,030 thousand in the previous year, indicating a substantial increase in investment expenditures[45] - The net cash used in operating activities for the six months ended June 30, 2024, was RMB 2,406,974 thousand, up from RMB 1,165,995 thousand in the prior year, indicating a significant increase of approximately 106.5%[45] Assets and Liabilities - As of June 30, 2024, total assets were RMB 128,202 million, an increase of RMB 6,412 million from RMB 121,790 million at the end of 2023[38] - The debt-to-asset ratio stood at 65.0%, slightly up from the previous year-end[38] - Total liabilities as of June 30, 2024, were RMB 83,353,762 thousand, up from RMB 78,122,049 thousand, reflecting a growth of 6.5%[42] - The company's cash and cash equivalents decreased to RMB 13,807,171 thousand from RMB 22,914,865 thousand, a decline of 39.7%[41] - The total accounts receivable and notes receivable, net of credit loss provisions, increased to RMB 27,487,284 thousand as of June 30, 2024, from RMB 23,921,258 thousand as of December 31, 2023, marking a growth of about 14.7%[66] Corporate Governance and Compliance - The board believes that the company has complied with all corporate governance codes as of June 30, 2024[98] - The company is actively seeking suitable female director candidates to meet gender diversity requirements on the board[98] - The audit committee has reviewed the accounting standards and practices adopted by the group, discussing risk management and internal controls[39] Market Position and Strategy - The company ranked 1,429 in the 2024 Forbes Global 2000 list, reflecting its strong market position[25] - The company aims to enhance core competitiveness and achieve high-quality growth by focusing on technological innovation and strategic emerging industries[26] - The company is focused on expanding its digital solutions and integrated smart solutions in the telecommunications sector, aiming to enhance its market position and service offerings[46] - The company plans to continue expanding its telecommunications infrastructure services to capitalize on the growing demand in the market[86] - The company is focusing on enhancing its IT application services to improve revenue stability and growth in the future[86]

业绩稳健向好，新签合同提升明显 中国通信服务（0552.HK）/通信 证券研究报告/公司点评 2024 年 8 月 30 日 | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------|--------|----------------------------------------------|------------------------|--------------------------|--------------------------|----------------|----------| | [Table_Title] 评级：买入（维持） [Table_Industry] \n市场价格： 3.99 港 元 | | [Table_Finance1] 公司盈利预测及估值 \n指标 | \n2022A | 2023A | 2024E | 2025E | 2026E | | 分析师：陈宁玉 | | ...

Investment Rating - The report maintains a rating of "Buy" for China Communication Services (0552.HK) [2] Core Insights - The company reported a revenue of 74.4 billion RMB for the first half of 2024, representing a year-on-year growth of 1.7% [2] - Gross profit reached 8.1 billion RMB, with a gross margin of 10.9%, an increase of 0.2 percentage points year-on-year, attributed to enhanced cost control [2] - Net profit attributable to shareholders was 2.1 billion RMB, reflecting a year-on-year increase of 4.4% [2] - The company has seen a significant improvement in new contracts for strategic emerging businesses, with a year-on-year increase of over 40% [2] Financial Performance Summary - Revenue for 1H24 was 74.4 billion RMB, with a gross profit of 8.1 billion RMB, leading to a net profit margin of 2.9% [2] - The operator market revenue was 40 billion RMB, showing a slight increase of 0.1% year-on-year, while non-operator market revenue reached 32.4 billion RMB, up 2.5% year-on-year [2] - The overseas market revenue was 2 billion RMB, marking a 26% increase year-on-year due to the easing of pandemic restrictions [2] Strategic Business Development - The company is focusing on digital infrastructure, green low-carbon initiatives, and smart city projects, with new contracts in these areas showing significant growth [2] - The strategic emerging business segment has become a key driver for revenue growth, with new contracts in digital infrastructure and green low-carbon services increasing by over 35% [2] - The company aims to leverage opportunities in AI computing and digital transformation, maintaining a strong focus on high-quality development in telecommunications and renewable energy sectors [2] Earnings Forecast and Valuation - The company’s effective cost control and improving gross margins are expected to continue, with net profit forecasts for 2024 and 2025 adjusted to 3.769 billion RMB and 3.978 billion RMB respectively [2] - The report anticipates a steady growth trajectory for the company, with EPS projected to reach 0.54 RMB in 2024 and 0.60 RMB in 2026 [3][4]

Financial Performance - The company's operating revenue for the first half of 2024 was RMB 74,412 million, an increase of 1.7%, with service revenue growing by 3.0%[4] - Net profit reached RMB 2,125 million, up 4.4%, outpacing the revenue growth by 2.7 percentage points[4] - Gross profit margin improved to 10.9%, an increase of 0.2 percentage points, continuing a positive trend seen in recent years[4] - Total comprehensive income for the period was RMB 2,685,917,000, compared to RMB 2,495,205,000 in the previous year, indicating an increase of 7.6%[29] - Basic earnings per share increased to RMB 0.307 from RMB 0.294, marking a growth of 4.4%[27] - The net profit attributable to shareholders for the six months ended June 30, 2024, was RMB 2,124,984,000, compared to RMB 2,034,456,000 in 2023, representing an increase of 4.4%[27] Revenue Breakdown - Revenue from non-telecom operator markets was RMB 32,409 million, growing by 2.5%, making it the primary driver of customer revenue growth[9] - Revenue from telecom infrastructure services was RMB 37,666 million, remaining stable compared to the previous year, representing 50.6% of total operating revenue[8] - The telecom operator market revenue was RMB 40,024 million, showing a slight increase of 0.1%, and accounted for 53.8% of total operating revenue[12] - Revenue from business process outsourcing services was RMB 22,162,474 thousand, up from RMB 21,728,657 thousand, marking an increase of about 2.0%[40] - Revenue from regions outside mainland China was RMB 1,979 million, an increase from RMB 1,570 million in the same period of 2023, representing a growth of approximately 26.0%[40] Strategic Initiatives - The company continues to focus on digital infrastructure, smart cities, and green low-carbon initiatives, enhancing its competitive edge in these strategic sectors[5] - New contracts in strategic emerging industries increased by over 40%, accounting for more than 35% of total new contracts signed[11] - The group achieved a year-on-year increase of over 35% in new contract value in the digital infrastructure sector during the first half of the year[13] - In the smart city sector, new contract value increased by over 40% year-on-year, winning multiple large EPC projects in areas such as digital government and smart transportation[14] - The green low-carbon sector saw a remarkable year-on-year growth of over 60% in new contract value, with green low-carbon projects accounting for more than half of the strategic emerging industry projects[15] - The emergency safety sector experienced a year-on-year increase of over 40% in new contract value, focusing on emergency management and cybersecurity projects[17] Research and Development - The group invested RMB 2,314 million in R&D during the first half of the year, representing an 11.1% increase compared to the previous year[18] - Software development and system support revenue grew by 11.4% year-on-year, contributing 24% to the overall revenue increase[19] - The group has accumulated over 3,600 authorized patents and over 9,700 software copyrights, with multiple core products selected for major national projects[18] Financial Position - Non-current assets as of June 30, 2024, totaled RMB 26,234,558,000, an increase from RMB 24,836,754,000 at the end of 2023[31] - Current assets amounted to RMB 96,952,996,000, compared to RMB 101,967,095,000 at the end of 2023, showing a decrease[31] - As of June 30, 2024, total liabilities amounted to RMB 83,353,762 thousand, an increase from RMB 78,122,049 thousand as of December 31, 2023, representing a growth of approximately 2.9%[32] - The total equity of the company reached RMB 44,847,891 thousand as of June 30, 2024, compared to RMB 43,667,701 thousand at the end of 2023, indicating an increase of about 2.7%[32] - The total assets of the group amounted to RMB 128,202 million, an increase of RMB 6,412 million from RMB 121,790 million as of December 31, 2023[75] Corporate Governance and Recognition - The group was recognized in multiple awards, including "Most Admired Company" and "Best CEO" in the 2024 Asia Corporate Governance Awards[23] - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2024[77] Operational Highlights - The group mobilized over 46,600 personnel and 16,700 vehicles for disaster recovery efforts, restoring over 36,300 communication facilities during natural disasters[21] - The company acknowledges that forward-looking statements are subject to various risks and uncertainties, which may cause actual results to differ significantly[83]

中国通信服务(0552.HK)/通信 证券研究报告/公司深度报告 2024 年 7 月 11 日 2[Table_Industry] 算网基建龙头,重视回报 提升 派息率 [Table_ 评级:买入(首次) Invest] [Table_Finance1] 公司盈利预测及估值 | | | | | | | | |------------------------------------------|------------------------------------------------|----------------------|--------------------------------|---------------------------------|-----------------------|------------------------------| | 市场价格:4.43 港元 | 指标 | 2022A | 2023A | 2024E | 2025E | 2026E | | [Table_ 分析师:陈宁玉 Authors] | 营业收入(百万元) 增长率 yoy% | 141,20 ...

Financial Performance - The company achieved a revenue growth of 5.6% and a net profit growth of 6.7%, with a gross margin increase to 11.6%[21] - The company's operating revenue for 2023 was RMB 148,615 million, representing a 5.6% increase from RMB 140,748 million in 2022[55] - Profit attributable to shareholders for 2023 was RMB 3,584 million, up 6.7% from RMB 3,360 million in 2022[55] - Free cash flow for 2023 was RMB 4,333 million, a slight decrease of 0.5% compared to RMB 4,353 million in 2022[55] - Basic earnings per share increased to RMB 0.518 in 2023, reflecting a 6.7% rise from RMB 0.485 in 2022[55] - The company declared a dividend of RMB 0.2174 per share for 2023, which is a 12.1% increase from RMB 0.1939 in 2022[55] - The proposed dividend payout ratio for the fiscal year ending December 31, 2023, is increased to 42%, up from 40% in 2022, with a final dividend of RMB 0.2174 per share, a 12.1% increase year-on-year[73] - The company's total assets as of the end of 2023 were RMB 121,790 million, an increase of RMB 11,521 million from RMB 110,269 million at the end of 2022[169] - Total liabilities increased to RMB 78,122 million at the end of 2023, up RMB 9,477 million from RMB 68,645 million at the end of 2022, resulting in a debt-to-asset ratio of 64.1%, up 1.8 percentage points[169] Revenue Breakdown - Revenue from the domestic non-telecom operator market reached RMB 63,433 million, up 6.3% year-on-year, becoming a key growth driver[78] - Revenue from domestic telecom operator market amounted to RMB 81,726 million, increasing by 4.7% year-on-year[78] - The overseas market revenue grew to RMB 3,456 million, a significant increase of 15.3% year-on-year[78] - Revenue from telecommunications infrastructure services was RMB 76,137 million, up 4.4% from RMB 72,907 million in 2022, accounting for 51.2% of total revenue[142] - Revenue from application, content, and other services reached RMB 28,927 million in 2023, an increase of 16.8% year-on-year[121] - Revenue from business process outsourcing services was RMB 43,551 million, a 1.1% increase from RMB 43,073 million in 2022, accounting for 29.3% of total operating revenue, down 1.3 percentage points from 30.6% in 2022[144] Contract and Market Growth - New contract value in digital infrastructure increased by approximately 30%[8] - New contract value in green low-carbon solutions grew by over 50%[11] - New contract value in smart city projects saw a growth of over 20%[14] - New contract value in emergency safety solutions increased by around 8%[18] - New contracts signed in strategic emerging industries increased by over 30% year-on-year, accounting for nearly 30% of total new contracts[79] - The company is focusing on digital infrastructure, smart cities, green low-carbon initiatives, and emergency safety as key strategic areas for growth[101] Innovation and R&D - The company emphasizes technology innovation and integrated service capabilities to drive high-quality sustainable development[4] - The company invested significantly in R&D, producing 16 national standards and accumulating over 3,000 authorized patents, while maintaining its position as the fourth strongest in software and IT services for three consecutive years[82] - Research and development investment exceeded RMB 5.5 billion in 2023, focusing on key technology applications and innovations[122] - The group is developing integrated solutions for smart cities, digital government, and cybersecurity, leveraging emerging technologies like AI and big data[128] Strategic Initiatives - The company is positioned as a "new generation comprehensive smart service provider" focusing on strategic emerging industries[2] - The company is actively expanding in digital infrastructure, green low-carbon, smart cities, and emergency safety sectors[20] - The company aims to enhance its core capabilities through technological innovation and focus on strategic emerging industries[70] - The company has implemented a development strategy centered on "CAPEX + OPEX + smart applications" to enhance service quality and strengthen cooperation with telecom operators[98] Customer and Market Engagement - The company is actively responding to the digital economy demands along the "Belt and Road" initiative, aiming for rapid growth in overseas markets[138] - Major clients include domestic telecom operators, government agencies, industry clients, SMEs, and overseas customers[195] - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of 10% to 1.32 billion[3] Awards and Recognition - The company ranked 4th in the "Top 100 Software and Information Technology Service Competitiveness" for three consecutive years[51] - The company was ranked 98th in the "2023 Fortune China 500" and 1,499th in the "2023 Forbes Global 2000," also recognized as a "2023 Forbes China ESG Innovation Enterprise"[90] - The company won multiple honors in the "2023 Institutional Investor" awards, including "Most Admired Company" and "Best CEO"[90] Operational Efficiency - The company reported a 5% reduction in operational costs due to efficiency improvements in the supply chain[9] - The operating cost for 2023 was RMB 131,358 million, an increase of 5.3% from 2022, representing 88.4% of operating revenue[148] - Direct employee costs rose to RMB 8,644 million, a 1.0% increase from RMB 8,558 million in 2022, accounting for 5.8% of operating revenue, down 0.3 percentage points[153] Future Outlook - The company aims to enhance its core competitiveness and build a first-class smart service innovation enterprise through continuous technological innovation and market expansion[98] - The company is considering strategic acquisitions to enhance its service offerings, with potential targets identified in the telecommunications sector[7] - Market expansion plans include entering three new international markets by the end of 2024, targeting a 25% increase in global market share[6]

更多资料加入知识星球：水木调研纪要关注公众号：水木纪要 中国通信服务20240417_原文 2024年04月18日18:17 发言人 00:00 大家下午好，今天下午我们非常荣幸的邀请到了中国通信服务口干部的钟总和梁总两位领导来 为我们各位投资人去介绍一下我们二三年整体的一个业绩情况，然后来回答各位投资人的问题。 周总好，梁你好，可以听到吗？应该的，谢谢。好好好好，那要不先请钟总和梁总简要的介 绍一下咱们公司2023年的一个业绩情况，然后再咱们再进行问答。好的，我们先请我们的投 管部的经理梁以前梁小姐这边介绍一下公司的一些基本情况。谢谢，是客人，谢谢。 发言人 00:40 客人，现在由我来先介绍介绍一下我们公司的基本的情况。如果你们有我们的业绩的材料的话 可以同步的翻一翻。就是我目前开始的就是在第16 页，在我们二三年的业绩的材料。 发言人 01:00 我们中国通服的定位是新一代综合智慧服务商，提供综合一体化智慧解决方案，就是 TIS、CPO 还有 ACO 的服务。TIS 就是电信基建服务，就是包括设计施工还有监理的服务。在二三年占我 们收入是 51%，增长 4.4%。 发言人 01:23 电信基建服务基就是 ...

Financial Performance - The company achieved operating revenue of RMB 148,615 million, an increase of 5.6% compared to the previous year[3]. - Net profit reached RMB 3,584 million, growing by 6.7%, continuing to outpace revenue growth[3]. - Gross margin improved to 11.6%, up by 0.2 percentage points, marking two consecutive years of increase[3]. - Free cash flow remained healthy at RMB 4,333 million[3]. - The group’s operating revenue for the year ended December 31, 2023, was RMB 148,614,676, an increase of 5.0% from RMB 140,747,569 in 2022[32]. - The gross profit for the same period was RMB 17,257,250, up from RMB 15,981,651, reflecting a growth of 8.0%[32]. - The net profit attributable to shareholders for 2023 was RMB 3,584,391, representing an increase of 6.7% compared to RMB 3,359,555 in 2022[32]. - The basic earnings per share for the year was RMB 0.518, compared to RMB 0.485 in the previous year, indicating a growth of 6.8%[32]. - The company reported a total comprehensive income of RMB 3,831,304 for 2023, compared to RMB 3,264,396 in 2022, marking an increase of 17.3%[37]. Revenue Breakdown - Revenue from domestic telecommunications services grew by 4.7%, while revenue from non-telecom customer markets increased by 6.3%[3]. - Revenue from application, content, and other services surged by 16.8%, contributing significantly to overall revenue growth[3]. - The telecommunications infrastructure service revenue was RMB 76,137 million, up 4.4%, accounting for 51.2% of total operating revenue[7]. - Revenue from non-telecom customer markets reached RMB 63,433 million, growing by 6.3%, becoming a key driver of overall revenue growth[8]. - Revenue from domestic telecom operators reached RMB 81,726 million, reflecting a year-on-year growth of 4.7%[11]. - The overseas market revenue grew by 15.3% year-on-year, reaching RMB 3,456 million[11]. - Revenue from business process outsourcing services was RMB 43,551 million, with a year-on-year increase of 1.1%[74]. - Revenue from application, content, and other services reached RMB 28,927 million, marking a growth of 16.8%[74]. - Revenue from supply chain services reached RMB 13,372 million, reflecting a growth of 4.1% compared to the previous year[83]. Strategic Initiatives - The company is focusing on emergency safety, with stable growth in new contract value in this area, leveraging technologies like AI and IoT[16]. - The company invested in R&D for core products, producing 16 national standards and accumulating over 3,000 patents throughout the year[17]. - The company aims to enhance its brand power by focusing on differentiated and high-quality branding, successfully completing the 5G co-construction project with China Telecom and China Unicom, which won a national quality engineering gold award[20]. - The company is committed to digital transformation and has implemented a comprehensive digital management plan to improve operational efficiency and governance capabilities[21]. - The group aims to enhance its core competitiveness by focusing on digital infrastructure, smart city services, and innovative technology solutions[28]. - The group plans to strengthen traditional business efficiency while exploring new market opportunities and service trends[28]. Awards and Recognition - The company received 49 significant technology awards, maintaining its position as the fourth most competitive software and information technology service company for three consecutive years[17]. - The company ranked 98th in the "2023 Fortune China Top 500" and 1,499th in the "2023 Forbes Global 2000," also recognized as a "2023 Forbes China ESG Innovation Company"[26]. - The company has been included in the "Hang Seng Sustainable Development Corporate Index" for two consecutive years, reflecting its commitment to sustainable development[22]. - The company has been recognized for its governance structure and risk management, receiving multiple accolades in the "2023 Best Managed Teams" awards[26]. Dividend and Shareholder Information - The board proposed a final dividend of RMB 0.2174 per share, an increase of 12.1%, raising the payout ratio from 40% to 42%[3]. - The company proposed a final dividend of RMB 0.2174 per share for 2023, an increase from RMB 0.1939 per share in 2022, indicating a rise of approximately 12.5%[62]. - The dividend will be paid to shareholders registered on July 8, 2024, with a suspension of share transfer from July 3 to July 8, 2024[121]. - The company will withhold a 10% income tax on dividends paid to foreign non-resident corporate shareholders[124]. - The annual general meeting is scheduled for June 20, 2024, with a suspension of H-share transfer from June 17 to June 20, 2024[120]. Assets and Liabilities - As of December 31, 2023, total assets amounted to RMB 121,789,750 thousand, an increase from RMB 110,268,598 thousand in the previous year, representing a growth of approximately 10.4%[39]. - Current assets totaled RMB 96,952,996 thousand, up from RMB 84,203,229 thousand, indicating a year-over-year increase of about 15.8%[39]. - Total liabilities rose to RMB 78,122,049 thousand from RMB 68,644,673 thousand, marking an increase of around 13.5%[40]. - The equity attributable to shareholders increased to RMB 42,576,759 thousand from RMB 40,360,637 thousand, which is a growth of about 5.5%[40]. - The debt-to-asset ratio increased to 64.1% at the end of 2023, up 1.8 percentage points from 62.3% at the end of 2022[108]. Compliance and Governance - The company has complied with all provisions of the Corporate Governance Code as of December 31, 2023[118]. - The audit committee has reviewed the accounting principles and practices adopted by the group, discussing risk management and internal controls[116]. - The company confirmed compliance with the standards for securities transactions by directors and supervisors during the year[119]. - The company has adopted the Corporate Governance Code and relevant regulations as its basic guidelines for corporate governance[118].

Financial Performance - Operating revenue reached RMB 73,170 million, an increase of 5.7% year-on-year[6] - Net profit attributable to shareholders was RMB 2,034 million, up 7.3% compared to the previous year[6] - Gross profit margin improved to 10.7%, an increase of 0.2 percentage points[6] - Basic earnings per share were RMB 0.294, reflecting a 7.3% increase year-on-year[6] - The annualized return on equity (ROE) was 10.0%, up 0.2 percentage points from the previous year[6] - The profit attributable to shareholders for the first half of 2023 was RMB 2,034 million, a growth of 7.3% from RMB 1,895 million in the first half of 2022[42] - The total comprehensive income for the first half of 2023 was RMB 2,495 million, an increase from RMB 2,096 million in the first half of 2022[56] - The company's operating revenue for the first half of 2023 reached RMB 73,170 million, a 5.7% increase from RMB 69,254 million in the same period of 2022[34] Revenue Sources - Revenue from domestic telecom operators grew by 7.5%, contributing significantly to overall revenue[9] - Revenue from the domestic non-operator customer market increased by 3.6%, reflecting ongoing optimization of business structure[6] - Revenue from overseas markets reached RMB 1,570 million, a year-on-year increase of 1.2%[13] - Revenue from telecommunications infrastructure services was RMB 37,688 million, growing by 7.5% year-on-year[35] - Revenue from application, content, and other services was RMB 13,753 million, with an 8.6% year-on-year increase; software development and system support services revenue grew by 31.5% to RMB 2,613 million[35] - Revenue from telecommunications infrastructure services provided to joint ventures increased to RMB 2,074,011 thousand, a 18.4% rise from RMB 1,751,740 thousand in H1 2022[123] Cost and Expenses - The company achieved a 5.4% increase in operating costs, totaling RMB 65,336 million, while direct employee costs decreased by 3.9% to RMB 3,871 million[39] - The group's selling, general and administrative expenses for the first half of 2023 were RMB 6,353 million, a 7.3% increase from RMB 5,920 million in the first half of 2022, representing 8.7% of operating revenue, up 0.2 percentage points year-on-year[41] - The company's operating costs for the six months ended June 30, 2023, totaled RMB 65,335,907 thousand, an increase from RMB 61,959,855 thousand in the previous year, representing a growth of approximately 5.7%[79] Cash Flow and Financial Position - Free cash flow improved, indicating better cash management and operational efficiency[6] - The group's net cash outflow for the first half of 2023 was RMB 2,323 million, an improvement from RMB 3,170 million in the same period of 2022, due to enhanced working capital management[44] - As of June 30, 2023, total assets amounted to RMB 119,040 million, an increase of RMB 8,771 million from RMB 110,269 million at the end of 2022, while total liabilities rose by RMB 7,685 million to RMB 76,330 million[45] - The asset-liability ratio stood at 64.1%, slightly up from the end of 2022[45] - The company's current liabilities increased to RMB 74,205,950 thousand from RMB 66,596,457 thousand, representing a rise of about 11.0%[60] - The company's cash and cash equivalents decreased to RMB 19,766,956 thousand from RMB 22,087,661 thousand, a decline of about 10.5%[58] Strategic Initiatives - The company has established a digital infrastructure research institute to focus on data center and computing network development, successfully undertaking multiple projects worth over 100 million yuan[16] - The company is actively involved in the green low-carbon sector, integrating technologies such as 5G and AI to provide intelligent and low-carbon services, and has formed strategic partnerships with 25 research institutions and universities[17] - The company aims to enhance operational efficiency through digital transformation, promoting the use of digital tools to reduce operational costs and improve customer experience[24] - The company is advancing reforms to optimize its operational management system, including the restructuring of its subsidiary into a joint-stock company[25] - The company is committed to supporting national carbon neutrality goals by focusing on power infrastructure and carbon management services[17] Research and Development - The company has increased R&D investment to strengthen its core capabilities, focusing on digital application development and key technologies such as IoT and blockchain[20] - The company has been recognized as a key player in the emergency safety sector, enhancing R&D efforts and promoting core products nationwide[19] Governance and Compliance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, ensuring transparency and accountability in its operations[131] - The company continues to operate under the economic system dominated by government-related enterprises, ensuring compliance with government pricing standards for telecom services[127] Market Position - The company ranked 98th in the 2023 "Fortune" list of China's top 500 listed companies and 1,499th in the 2023 "Forbes" Global 2000 list[28] - The company is a leading service provider in China, offering integrated smart solutions in the fields of information and digitalization, including telecommunications infrastructure services and IT management[65] Risks and Forward-Looking Statements - The company warns that forward-looking statements are subject to various risks and uncertainties, including macroeconomic changes and regulatory environment shifts[141] - The interim report emphasizes the goal of achieving high-quality development and forging a new growth curve[145]