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].

Financial Performance - The company reported a profit attributable to shareholders of RMB 20.15 billion for the six months ended June 30, 2023, with a proposed dividend distribution of RMB 13.104 billion, translating to a dividend of RMB 0.1432 per share (before tax) based on a total share capital of 91,507,138,699 shares[6]. - The company plans to allocate 65% of its profit to shareholders, reflecting a commitment to shareholder returns while considering cash flow and profitability[6]. - The company's operating revenue for the first half of 2023 reached RMB 236 billion, representing a year-on-year growth of 6.6%[20]. - The company's revenue for the first half of the year reached RMB 260.7 billion, a year-on-year increase of 7.6%[32]. - Net profit attributable to shareholders was RMB 20.2 billion, reflecting a year-on-year growth of 10.2%, with basic earnings per share at RMB 0.22[32]. - The total comprehensive income attributable to shareholders is RMB 20,421 million, reflecting a strong performance in the first half of 2023[130]. - The basic and diluted earnings per share are both RMB 0.22, consistent with the previous reporting period[130]. - The company maintained a stable dividend policy, with dividends paid amounting to RMB 15,556 million during the period[131]. Revenue Breakdown - The telecommunications business revenue reached RMB 868.8 billion, representing a year-on-year growth of 6.2%[18]. - Emerging business revenue, including IPTV, internet data centers, big data, cloud computing, and IoT, totaled RMB 188 billion, with a year-on-year increase of 19.2%[18]. - Application revenue amounted to RMB 15.4 billion, with a year-on-year increase of 19.4%[20]. - Mobile communication service revenue grew to RMB 101.6 billion, up 2.7% year-on-year, while mobile user ARPU reached RMB 46.2, a 0.4% increase[20]. - The digitalization business generated RMB 68.8 billion, marking a significant year-on-year increase of 16.7%[20]. Capital Expenditure and Investments - Capital expenditure for the first half was RMB 41.6 billion, with free cash flow amounting to RMB 17.6 billion[32]. - The company has committed approximately RMB 378.88 billion of the raised funds to projects related to 5G infrastructure, cloud integration, and technological innovation[70]. - The total amount raised from the A-share issuance was approximately RMB 479.04 billion, netting approximately RMB 475.16 billion after deducting issuance costs[70]. - The company has invested a total of approximately RMB 439.25 billion from the raised funds, with an unused balance of approximately RMB 96.28 billion[70]. Risk Management and Compliance - The company has outlined its development strategies and identified various economic and policy risks that may impact future operations[7]. - The report emphasizes the importance of risk management in the context of international operations and market expansion[7]. - The company aims to strengthen its overseas compliance management and risk assessment to mitigate risks associated with international business expansion[62]. - The company has conducted ongoing assessments of network security vulnerabilities to ensure reliable operations and data safety[61]. Technological Advancements - The company is focused on enhancing its technological capabilities, including advancements in 5G and AI technologies, to drive future growth[9]. - The company is implementing a cloud transformation strategy, focusing on customer-centricity and technological innovation to enhance service quality and security[18]. - The company aims to deepen the integration of digital technology and the real economy through a combination of network, cloud computing, AI, and applications[18]. - The company upgraded its AI algorithm platform, reaching 5,500 self-developed scene algorithms and launched a general visual model with 10 billion parameters[38]. Sustainability and Corporate Social Responsibility - The company emphasizes green development and is advancing low-carbon operations, aligning with national "dual carbon" goals[91]. - The company has reduced carbon emissions by over 5 million tons in the first half of 2023, with a carbon emission intensity decrease of over 10%[94]. - The company has implemented a "1248" dual carbon action plan, focusing on eight major green actions to promote green low-carbon transformation[92]. - The company has created nearly 60,000 "Love Wing Stations" providing various public services, serving a total of 15 million people[46]. Governance and Shareholder Engagement - The board of directors has approved the profit distribution plan during the second meeting of the eighth board session held on August 8, 2023[6]. - The company held two shareholder meetings during the reporting period, with all resolutions passed[82]. - The company published the resolutions on designated websites, ensuring transparency for shareholders[82]. - The company has not granted any share options to its directors, supervisors, or their immediate family members during the six months ending June 30, 2023[65].

Financial Performance - The company's operating revenue for the first half of 2023 was RMB 260.7 billion, a year-on-year increase of 7.6%, with service revenue reaching RMB 236.0 billion, up 6.6%[1] - EBITDA amounted to RMB 73.3 billion, reflecting a 5.0% year-on-year growth, while net profit was RMB 20.2 billion, an increase of 10.2%, resulting in basic earnings per share of RMB 0.22[3] - The company reported operating revenue of RMB 260,664 million for the six months ended June 30, 2023, an increase of 7.6% compared to RMB 242,319 million in the same period of 2022[22] - Operating profit for the same period was RMB 25,508 million, reflecting a growth of 10.4% from RMB 23,113 million year-on-year[23] - The company achieved a net profit of RMB 20,174 million, which is a 9.9% increase compared to RMB 18,353 million in the previous year[23] - The company's revenue for the six months ended June 30, 2023, was RMB 20,442 million, an increase from RMB 18,550 million in the same period of 2022, representing a growth of 10.2%[24] - Shareholders' profit attributable to the company was RMB 20,153 million for the six months ended June 30, 2023, compared to RMB 18,291 million in 2022, reflecting an increase of 10.2%[25] - The basic and diluted earnings per share for the period were both RMB 0.22, up from RMB 0.20 in the previous year[25] - The company reported a total comprehensive income of RMB 20,442 million for the period, compared to RMB 18,550 million in the previous year, marking an increase of 10.2%[25] Revenue Breakdown - Mobile communication service revenue grew to RMB 101.6 billion, a 2.7% increase year-on-year, with mobile value-added and application revenue reaching RMB 15.4 billion, up 19.4%, and 5G package user penetration rate at 73.4%[7] - Fixed-line and smart home service revenue reached RMB 62.0 billion, a 3.6% year-on-year increase, with smart home business revenue at RMB 9.3 billion, up 15.7%, and gigabit broadband penetration rate at 20.3%[7] - The company's industrial digitalization business maintained rapid growth, with revenue of RMB 68.8 billion, a year-on-year increase of 16.7%, and Tianyi Cloud revenue reaching RMB 45.9 billion, up 63.4%[7] - Service revenue reached RMB 235,977 million, up from RMB 221,384 million year-on-year, indicating a growth of about 6.6%[31] - Mobile communication service revenue was RMB 101,607 million, compared to RMB 98,956 million in the previous year, reflecting an increase of approximately 1.7%[31] Dividend and Shareholder Returns - The board decided to continue paying an interim dividend for 2023, distributing 65% of the profit attributable to shareholders, equating to RMB 0.1432 per share[3] - The company aims to increase the cash distribution to shareholders to over 70% of the profit attributable to shareholders for the 2023 fiscal year[4] - The interim dividend for the six months ended June 30, 2023, is set at RMB 0.1432 per share, totaling approximately RMB 13.104 billion[38] - The company plans to distribute an interim dividend of RMB 131.04 billion, which is 65% of the profit attributable to shareholders of RMB 201.53 billion for the first half of 2023[48] - The dividend payment is expected to be made on or before September 28, 2023, to shareholders listed on the H-share register as of August 30, 2023[48] Strategic Focus and Growth Initiatives - The company is focusing on digital transformation and cloud integration strategies, enhancing its digital infrastructure and service capabilities[5] - The company is actively expanding its strategic emerging industries, integrating cloud, AI, and security to enhance digital product and service capabilities[7] - The company has initiated the establishment of a Quantum Information Technology Group to promote the application of cutting-edge quantum technologies[15] - The company aims to enhance its core competitiveness and accelerate the construction of a world-class enterprise through comprehensive reforms and innovation[20] - The company plans to further optimize its strategic layout in emerging industries, focusing on technology innovation and infrastructure upgrades[20] Research and Development - R&D expenses increased by 27.2% year-on-year, with the number of R&D personnel growing by 21.4%[8] - The AI algorithm platform has developed 5,500 self-researched scene algorithms, enhancing AI capabilities across various industries[10] Network and Infrastructure - The company has established over 1.15 million 5G base stations and over 2 million 4G base stations, enhancing network coverage and capacity[15] - The company constructed over 534,000 racks in its IDC, with more than 70% of new racks deployed in hotspot areas[14] - The company’s intelligent computing capacity increased by 62% to 4.7 EFLOPS, while general computing capacity grew by 19% to 3.7 EFLOPS[13] - The number of IoT connections exceeded 470 million, showcasing significant growth in the IoT sector[12] Environmental and Corporate Governance - The company has reduced greenhouse gas emissions by over 5 million tons in the first half of 2023, with a year-on-year reduction in emission intensity of over 10%[18] - The company emphasizes the importance of corporate governance and has maintained compliance with the corporate governance code during the reporting period[46] - The company has been recognized for its corporate governance, winning multiple awards including "Best Corporate Social Responsibility" for four consecutive years[19] Financial Position and Liquidity - Total assets as of June 30, 2023, amounted to RMB 840,386 million, compared to RMB 807,698 million as of December 31, 2022, indicating an increase of 4.0%[26] - The company's cash and cash equivalents were RMB 83,698 million as of June 30, 2023, compared to RMB 72,465 million at the end of 2022, showing a growth of 15.5%[26] - Total liabilities increased to RMB 390,459 million as of June 30, 2023, from RMB 371,271 million at the end of 2022, representing a rise of 5.1%[27] - The net cash flow from operating activities remains positive, contributing to the company's liquidity position[28] - The company has unused credit facilities amounting to RMB 237 billion as of June 30, 2023, which supports its financial stability[28] Accounts Receivable and Payable - The net accounts receivable as of June 30, 2023, amounts to RMB 46.732 billion, an increase from RMB 24.312 billion as of December 31, 2022[39] - The aging analysis of accounts receivable shows that RMB 9.34 billion is due within one month, compared to RMB 6.405 billion in the previous year[40] - The total accounts payable as of June 30, 2023, is RMB 150.431 billion, up from RMB 127.260 billion as of December 31, 2022[42] - The provision for credit losses on accounts receivable decreased to RMB 8.685 billion as of June 30, 2023, from RMB 30.429 billion as of December 31, 2022[39] Forward-Looking Statements - The company emphasizes that forward-looking statements regarding development strategies and future operating plans are subject to known and unknown risks and uncertainties, which may lead to significant differences from actual performance[55] - The board of directors includes key executives such as the Chairman and CEO, and the President and COO, indicating a strong leadership team[55]

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].

Financial Performance - Operating revenue for the third quarter of 2022 reached RMB 118,663 million, an increase of 7.9% year-on-year[2] - Profit attributable to shareholders was RMB 6,252 million, representing a 12.0% increase compared to the same period last year[2] - Basic earnings per share was RMB 0.07, a 16.7% increase year-on-year[2] - The company's operating revenue for the first three quarters of 2022 was RMB 360.98 billion, an increase of 9.6% year-on-year, with service revenue at RMB 328.60 billion, up 8.0%[8] - Net profit attributable to shareholders reached RMB 24.54 billion, a 5.2% increase year-on-year, and a 12.0% increase after excluding one-time gains from the sale of subsidiaries[8] - Operating profit for the same period was RMB 30,317 million, up 7.4% from RMB 28,254 million in 2021[16] - The company’s total comprehensive income for the nine months was RMB 25,008 million, an increase from RMB 23,284 million in 2021[17] User Growth - The number of mobile users reached 38,989 thousand, with a net increase of 1,746 thousand users[6] - The number of 5G package users increased to 25,104 thousand, with a net increase of 6,324 thousand users[6] - The total number of broadband users reached 17,868 thousand, with a net increase of 897 thousand users[6] - Mobile communication service revenue was RMB 148.37 billion, growing 5.6% year-on-year, with a net increase of 17.46 million mobile users, totaling approximately 390 million[8] - The number of 5G package users increased by 63.24 million, reaching approximately 251 million, with a penetration rate of 64.4%[8] Assets and Liabilities - Total assets as of September 30, 2022, amounted to RMB 784,593 million, a 2.9% increase from the end of the previous year[2] - Total liabilities as of September 30, 2022, amounted to RMB 354,996 million, an increase from RMB 331,066 million in 2021[15] - The company’s total equity as of September 30, 2022, was RMB 429,597 million, slightly down from RMB 431,168 million in 2021[15] Cash Flow and Expenditures - The company reported a net cash inflow from operating activities of RMB 116,018 million for the nine months, compared to RMB 119,930 million in the previous year[19] - Capital expenditures for the nine months were RMB 60,251 million, an increase from RMB 57,105 million in 2021[19] - Cash and cash equivalents as of September 30, 2022, were RMB 79,412 million, down from RMB 85,644 million at the end of 2021[19] Operating Expenses and Financial Costs - Operating expenses for the first three quarters were RMB 330.67 billion, a 9.9% increase year-on-year, primarily due to network operation and support costs[9] - Financial costs decreased significantly by 97.9% to RMB 0.27 million, attributed to improved operating conditions and reduced debt scale[9] - Depreciation and amortization expenses increased to RMB 70,141 million for the nine months ended September 30, 2022, up from RMB 68,094 million in the previous year, reflecting a rise of 3.0%[20] Strategic Initiatives - The company implemented a "cloud transformation and digital upgrade" strategy to enhance its service-oriented and technology-driven capabilities[7] - The company plans to implement a "Cloud Transformation" strategy, focusing on cloud integration and the development of strategic emerging businesses such as cloud, security, big data, and AI[10] Dividend and Shareholder Value - The company declared its first interim dividend, creating new value for shareholders[7]

Financial Performance - The company reported a profit attributable to shareholders of RMB 18.29 billion for the first half of 2022, with a proposed dividend distribution of RMB 0.120 per share, representing 60% of the profit[3]. - In the first half of 2022, the company's operating revenue reached RMB 242.3 billion, representing a year-on-year growth of 10.5%[25]. - Service revenue amounted to RMB 221.4 billion, with a year-on-year increase of 8.8%, continuing to exceed the industry average growth rate[25]. - The company’s net profit attributable to shareholders was RMB 18.29 billion, reflecting a 3.1% increase year-on-year[47]. - The company reported a basic earnings per share of RMB 0.20 for the first half of 2022, unchanged from the same period in 2021[114]. - The total comprehensive income for the period was RMB 18,550 million, compared to RMB 17,770 million in the previous year, indicating an increase of 4.4%[113]. - The company declared an interim dividend of RMB 0.120 per share, totaling approximately RMB 10.975 billion based on 91,507,138,699 shares issued[172]. Subscriber and User Growth - The total number of subscribers reached 390 million, with a year-on-year increase of 5.2%[3]. - The total number of fixed broadband access users reached 563 million, while mobile phone users totaled 1.67 billion by the end of June 2022[19]. - The number of mobile users reached 384 million, with a net increase of 11.79 million users, while mobile ARPU stood at RMB 46.0[25]. - The broadband user base reached 175 million, with a net increase of 5.73 million users, and broadband ARPU was RMB 47.2[25]. Revenue Streams - Revenue from emerging businesses, including IPTV, internet data centers, big data, cloud computing, and IoT, amounted to RMB 162.4 billion, a year-on-year increase of 36.3%[19]. - The company's mobile communication service revenue reached RMB 99 billion, a year-on-year increase of 6.0%[27]. - The revenue from industrial digitalization business was RMB 58.9 billion, showing a comparable year-on-year growth of 19.0%[25]. - Tianyi Cloud revenue reached RMB 28.1 billion, with a significant year-on-year growth of 100.8%[30]. Investment and Capital Expenditure - The company plans to invest significantly in 5G technology and infrastructure, aiming to enhance service capabilities and expand market reach[4]. - Capital expenditures for the first half of 2022 were RMB 41.66 billion, a significant increase of 54.2% compared to the previous year[48]. - The company has committed to invest a total of RMB 47.516 billion in various projects, with RMB 9.501 billion invested during the reporting period[58]. Strategic Initiatives - The company is focusing on the development of new products, including enhanced 5G messaging and AI-driven services, to meet evolving customer needs[4]. - The strategy of "cloud transformation and digital upgrade" is being fully implemented to boost technological innovation[19]. - The company is actively expanding its digitalization services for traditional industries, leveraging its resources and localized services[19]. - The company is exploring potential mergers and acquisitions to strengthen its competitive position in the telecommunications sector[4]. Risk Management and Compliance - The board has approved a risk management framework to address economic and operational risks, ensuring sustainable growth[5]. - The company emphasizes the importance of cybersecurity measures in its operations to protect user data and maintain service integrity[5]. - The company plans to enhance R&D in technology innovation and improve the transformation of results to address diverse customer needs[50]. - The company will focus on enhancing network security and data protection in response to new regulatory requirements[51]. Environmental and Social Responsibility - The company has actively participated in environmental protection activities and adheres to relevant environmental laws and regulations, ensuring compliance in its operations[78]. - The company has saved over 3 million tons of carbon emissions, with a more than 15% decrease in comprehensive energy consumption per unit of information flow compared to last year[40]. - The company has established a strict assessment and control mechanism to manage carbon emissions, focusing on both total carbon emissions and carbon intensity[79]. Shareholder Information - The major shareholder, China Telecom Group, holds approximately 74.43% of the A shares, representing 63.14% of total shares[54]. - The company has granted stock appreciation rights to 7,908 core employees, totaling approximately 2.402 billion H shares, with an exercise price of HKD 2.686[74]. - The company has maintained compliance with corporate governance codes and has strengthened internal control systems to enhance transparency and protect shareholder interests[76]. Financial Position - Total assets increased from RMB 762.234 billion at the end of 2021 to RMB 783.849 billion, a rise of 2.8%[50]. - Total liabilities increased to RMB 349,699 million as of June 30, 2022, from RMB 331,066 million at the end of 2021, marking a rise of 5.1%[111]. - The company’s financial costs decreased significantly to RMB (30) million from RMB (1,079) million in the previous year, indicating improved financial management[112].

Financial Performance - Operating revenue for the first quarter of 2022 reached RMB 119,629 million, representing an increase of 11.94% compared to the same period last year[3] - Profit attributable to shareholders for the first quarter was RMB 7,223 million, reflecting a growth of 12.14% year-on-year[3] - The company's operating revenue for Q1 2022 was RMB 119.629 billion, an increase of 11.9% year-on-year, with service revenue reaching RMB 110.024 billion, up 9.9% year-on-year[10] - The net profit attributable to shareholders was RMB 7.223 billion, a year-on-year increase of 12.1%, with basic earnings per share of RMB 0.08[10] - Net profit for the period was RMB 7,264 million, representing a growth of 11.7% from RMB 6,504 million in the previous year[21] - The pre-tax profit for the three months ended March 31, 2022, was RMB 9,325 million, an increase from RMB 8,393 million in the same period of 2021, representing an increase of 11.1%[25] User Growth - The number of mobile users reached 37,954 thousand, with a net increase of 711 thousand during the quarter[8] - The number of 5G package users surged to 21,075 thousand, with a net increase of 2,295 thousand in the first quarter[8] - Mobile communication service revenue for Q1 2022 was RMB 49.014 billion, a year-on-year increase of 5.0%, with a net increase of 7.11 million mobile users, reaching approximately 380 million[10] - The number of 5G package users increased by 22.95 million, totaling approximately 211 million, with a penetration rate of 55.5%[10] - The number of broadband users reached 17,311 thousand, with a net increase of 340 thousand[8] Assets and Liabilities - Total assets as of March 31, 2022, amounted to RMB 768,146 million, a slight increase of 0.78% from the end of the previous year[3] - The total liabilities decreased to RMB 329,923 million as of March 31, 2022, from RMB 331,066 million at the end of 2021, showing a reduction of 0.3%[18] - The company’s non-current assets totaled RMB 628,749 million, a slight decrease from RMB 634,874 million at the end of 2021, reflecting a decline of 0.8%[17] - The company’s net current liabilities improved to RMB (127,736) million as of March 31, 2022, compared to RMB (137,712) million at the end of 2021, indicating a positive change[18] Cash Flow and Financial Costs - Cash generated from operating activities was RMB 27,613 million, up from RMB 26,766 million in the same period last year, indicating a growth of 3.2%[22] - Operating cash flow generated was RMB 27,613 million for the three months ended March 31, 2022, compared to RMB 26,766 million for the same period in 2021, reflecting a growth of 3.2%[25] - The company reported a significant decrease in net financial costs to RMB 0.195 billion, down 64.2% year-on-year, due to improved operational performance and cash flow[11] - Interest income decreased to RMB 322 million, while interest expenses increased to RMB 515 million, impacting net financial performance[25] Operational Efficiency and Strategy - Operating expenses for Q1 2022 were RMB 110.517 billion, an increase of 12.4% year-on-year, primarily due to network operation and support costs[11] - The company plans to continue its "cloud transformation" strategy, focusing on customer-centric comprehensive intelligent information products and services[12] - The company aims to enhance its green operational capabilities and contribute to social responsibility, including rural revitalization and industry upgrades[13] - The company reported a significant increase in cash flow from operating activities, highlighting strong operational efficiency[25] Shareholder Information - Shareholders' equity attributable to the company was RMB 435,688 million, an increase of 1.64% from the previous year-end[3] - The total number of shareholders as of the report date was 745,225, including 743,588 A-share shareholders and 1,637 H-share shareholders[4]

Financial Performance - China Telecom had approximately 372 million mobile users, 170 million broadband users, and 107 million fixed-line telephone users by the end of 2021[4]. - The company reported a net profit of RMB 25,948,191,708 for 2021, with a proposed dividend distribution of 60%, totaling RMB 15,568,915,025[6]. - China Telecom reported a total revenue of RMB 390 billion for the year 2021, representing a year-on-year increase of 5.1%[18]. - The company reported a net profit of RMB 30 billion for 2021, an increase of 4.5% year-on-year[18]. - In 2021, the company's operating revenue reached RMB 439.6 billion, representing a year-on-year growth of 11.7%[30]. - Service revenue amounted to RMB 402.8 billion, with a year-on-year increase of 7.8%, and an adjusted growth rate of 8.1% after excluding the impact of divested subsidiaries[30]. - EBITDA was RMB 123.9 billion, reflecting a year-on-year growth of 4.2%[30]. - The company achieved a net profit attributable to shareholders of approximately RMB 14.16 billion from the sale of Tianyi E-commerce Co., Ltd. and Tianyi Financial Leasing Co., Ltd.[31]. - The company’s net profit reached RMB 25.948 billion, a year-on-year increase of 24.5%, and 17.7% after adjusting for one-time tax benefits from divested subsidiaries[30]. - The company’s operating capital shortage was RMB 137.712 billion at the end of 2021, reduced by RMB 49.414 billion from the previous year, indicating improved liquidity[99]. Dividend Distribution - The company plans to distribute a dividend of RMB 0.170 per share (before tax) based on a total share capital of 91,507,138,699 shares as of the end of 2021[6]. - The proposed final dividend for the year ending December 31, 2021, is RMB 0.170 per share, totaling RMB 15,568,915,025[113]. - The dividend payment is expected to be made on or before July 18, 2022, following approval at the annual general meeting[113]. - For H-share individual shareholders, the dividend will be paid in Hong Kong dollars, with the exchange rate based on the average middle rate published by the People's Bank of China one week prior to the dividend declaration[113]. - The company will withhold a 10% corporate income tax for non-resident H-share shareholders when distributing the proposed final dividend[113]. Capital Expenditure and Investment - The company plans to invest RMB 100 billion in network infrastructure and technology upgrades over the next three years to enhance service capabilities[18]. - The company's capital expenditure for 2021 was RMB 80 billion, accounting for 20.5% of total revenue[18]. - Capital expenditures for 2021 were RMB 86.723 billion, a 2.3% increase from 2020, focusing on 5G network construction and cloud services[95]. - The total amount of raised funds allocated to projects includes RMB 9.957 billion for 5G industrial internet construction, RMB 23.583 billion for cloud-network integration infrastructure, and RMB 13.976 billion for technology innovation R&D[122]. - The company plans to complete the investment of raised funds for all projects by 2023[122]. Market Strategy and Growth - The company aims to enhance its value through multi-faceted financing and seizing new opportunities in the market[9]. - The company is focused on expanding its market presence and enhancing its service offerings through strategic initiatives and potential acquisitions[9]. - The company has set a revenue growth target of 5% for 2022, driven by increased demand for 5G and cloud services[18]. - The company aims to expand its cloud services, targeting a revenue contribution of RMB 50 billion from cloud and digital services by 2023[18]. - The company is exploring strategic partnerships and potential acquisitions to enhance its market position and service offerings[18]. Technology and Innovation - The company is committed to developing new technologies and services, including 5G and AI, to improve user experience and operational efficiency[11]. - The company is focusing on the development of quantum communication technology, with plans to launch commercial services in 2022[18]. - The company launched over 1,200 projects under the 5G customized network initiative, covering all 15 key industries outlined in the "Sail Plan" action plan[38]. - The company is actively expanding into smart community and digital rural areas, leveraging its cloud and network integration capabilities[34][35]. - The company aims to enhance its comprehensive intelligent information service capabilities and promote high-quality development through its "Cloud Transformation and Digital Upgrade" strategy[32]. Corporate Governance and Compliance - The company has established a comprehensive governance structure to ensure compliance and transparency in its operations[149]. - The company maintains independence from its controlling shareholder in business, assets, and finance, ensuring no interference in management activities[147]. - The company emphasizes the importance of network security and will improve its core technology capabilities to safeguard data and personal information[112]. - The company has appointed external auditors for the year ending December 31, 2021, including PwC and Deloitte[151]. - The company has committed to complying with tax regulations and ensuring accurate tax withholding for its shareholders[115]. Social Responsibility and Sustainability - The company is committed to social responsibilities, including network security and green development initiatives[29]. - The company has reduced carbon dioxide emissions by over 6 million tons annually through its carbon peak and carbon neutrality action plan[53]. - The company is actively promoting energy-saving and green transformations of 5G base stations and data centers[61]. - The company is committed to integrating green and low-carbon concepts throughout its production processes, enhancing green operational capabilities[61]. Risks and Challenges - Future performance projections are subject to known and unknown risks, and the company will not update these forward-looking statements[8]. - The company faces "triple pressure" from domestic economic contraction, supply shocks, and weakened expectations, which may impact business development and revenue growth[110]. - The implementation of new laws, such as the Data Security Law and Personal Information Protection Law, will impose new compliance requirements on the industry[63][64]. - The company will enhance its compliance management system and adapt to stricter regulatory environments to mitigate operational risks[110].