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 - The company reported a net 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, amounting to 60% of the net profit [3]. - The company's operating revenue for the first half of 2022 was approximately ¥240.22 billion, representing a 10.4% increase compared to the same period last year [22]. - The net profit attributable to shareholders for the same period was approximately ¥18.29 billion, reflecting a 3.1% increase year-over-year [22]. - The net profit after deducting non-recurring gains and losses was approximately ¥18.38 billion, which is a 12.1% increase compared to the previous year [22]. - The basic earnings per share for the first half of 2022 was ¥0.20, down 9.1% from ¥0.22 in the same period last year [23]. - The weighted average return on equity decreased by 0.6 percentage points to 4.2% compared to the previous year [23]. - The company's total revenue for the first half of 2022 was RMB 240.2 billion, representing a year-on-year growth of 10.4%, with service revenue reaching RMB 221.4 billion, up 8.8% [42]. - The company achieved a net profit attributable to shareholders of RMB 18.3 billion, a year-on-year increase of 3.1%, and a net profit excluding non-recurring items of RMB 18.4 billion, up 12.1% [42]. Dividend and Share Capital - The total share capital as of June 30, 2022, was 91,507,138,699 shares, which will be used as the basis for the dividend distribution calculation [3]. - The company plans to distribute an interim dividend of RMB 0.12 per share, which is 60% of the profit attributable to shareholders for the first half of 2022 [42]. - The company plans to distribute a dividend of RMB 0.120 per share (including tax) based on a net profit of RMB 18.29 billion for the first half of 2022, representing 60% of the net profit attributable to shareholders [88]. - The total number of shares for dividend distribution is calculated based on the total share capital of 91,507,138,699 shares as of June 30, 2022 [88]. Operational Highlights - The company’s fixed-line and smart home service revenue reached RMB 59.9 billion in the first half of the year, a year-on-year increase of 4.4%, with broadband access revenue at RMB 40.8 billion, up 7.1% [47]. - The number of mobile users increased by 11.79 million to reach 384 million, with a mobile ARPU of RMB 46.0, continuing to show growth [34]. - The company maintained a leading position in 5G services, with 5G package users reaching 232 million, representing a penetration rate of 60.3% [46]. - The company has established the largest 5G SA shared network and the largest gigabit fiber network in the world, enhancing its cloud computing capabilities [37]. - The company is focused on enhancing its digital information infrastructure and has implemented a "cloud transformation" strategy to drive high-quality development [43]. Risks and Compliance - The company has outlined various risks including economic and policy environment adaptation risks, operational risks, and international business risks in the report [7]. - The company emphasizes that forward-looking statements regarding development strategies and future business plans are subject to known and unknown risks and uncertainties [4]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period [5]. - There are no violations of decision-making procedures regarding external guarantees [6]. - The board of directors and senior management have confirmed the authenticity, accuracy, and completeness of the semi-annual report, which has not been audited [6]. Environmental and Social Responsibility - The company is committed to complying with environmental protection laws and regulations, ensuring that its operations meet national environmental standards [93]. - The company has not faced any administrative penalties related to environmental issues during the reporting period [93]. - The company achieved a comprehensive energy consumption reduction of over 15% year-on-year through initiatives such as 4/5G base station sharing and AI energy-saving measures, resulting in a reduction of carbon emissions by over 3 million tons [97]. - The company actively promotes water conservation and has implemented measures to recycle production water, aiming to reduce reliance on tap water [94]. - The company has established a carbon peak and carbon neutrality leadership office to integrate green development into all operational processes [96]. Financial Position and Cash Flow - The total assets at the end of the reporting period were approximately ¥783.86 billion, an increase of 2.8% from the end of the previous year [22]. - The company's cash and cash equivalents increased to approximately ¥80.56 billion, up from ¥75.21 billion at the end of the previous year [153]. - The net cash flow from operating activities decreased by 4.6% to approximately ¥65.25 billion compared to the previous year [22]. - The net cash outflow from investment activities increased by 66.0% to RMB 33.8 billion, mainly due to reduced cash recovery from term deposits [65]. - The total liabilities of China Telecom amounted to RMB 349.70 billion, an increase from RMB 331.07 billion as of December 31, 2021, representing a growth of approximately 5.0% [155]. Technological Innovation - The company has made significant advancements in technology innovation, with over 50 core technologies developed, including AI and quantum communication [39]. - The company aims to enhance its digital infrastructure by integrating cloud, network, data, intelligence, and security elements, promoting a comprehensive digital information infrastructure [53]. - R&D expenses surged by 84.8% to RMB 32.5 billion, driven by a focus on technological innovation and core technology development [64]. - The company achieved a 70% utilization rate of AI customer service, significantly reducing reliance on human customer service [59]. Shareholder and Governance - The company has undergone changes in its board of directors, including the election of Tang Ke as an executive director and Han Fang as the chairman of the supervisory board [85]. - The company held two shareholder meetings during the reporting period, with all proposed resolutions approved [84]. - The company has authorized the board to determine the mid-term profit distribution plan for 2022 [88]. - The controlling shareholder, China Telecom Group, increased its stake in the company by acquiring 593,198,098 A shares, representing 0.65% of the total shares, with a total investment of approximately RMB 2.52 billion [123].

Financial Performance - The total revenue for Q1 2022 was CNY 118.58 billion, representing an increase of 11.53% compared to the same period last year[5]. - The net profit attributable to shareholders was CNY 7.22 billion, reflecting a growth of 12.14% year-over-year[5]. - The net profit after deducting non-recurring gains and losses was CNY 7.99 billion, up by 10.39% from the previous year[5]. - The basic earnings per share remained at CNY 0.08, unchanged from the previous year[5]. - The diluted earnings per share also stood at CNY 0.08, consistent with the prior year[5]. - The total comprehensive income for Q1 2022 was CNY 7,054,213,153.91, compared to CNY 6,436,379,182.54 in Q1 2021, marking an increase of 9.6%[27]. - The total profit for Q1 2022 was CNY 9.01 billion, up 21.2% from CNY 7.43 billion in Q1 2021[35]. Operating Metrics - In Q1 2022, the company's operating revenue was RMB 118.576 billion, an increase of 11.5% year-on-year, with service revenue reaching RMB 110.024 billion, up 9.9%[14]. - The company's operating profit for Q1 2022 was CNY 11,169,377,464.69, compared to CNY 9,757,957,950.29 in Q1 2021, indicating a growth of 14.5%[26]. - The company's fixed broadband and smart home service revenue was RMB 29.645 billion, a year-on-year growth of 4.9%[15]. - The revenue from industrial digitalization reached RMB 29.414 billion, marking a significant year-on-year increase of 23.2%[16]. User Growth - The total number of mobile users reached 379.54 million, with a net increase of 7.11 million users in Q1 2022[12][13]. - The number of 5G package users increased by 22.95 million, totaling approximately 211 million, with a penetration rate of 55.5%[14]. Costs and Expenses - The company's operating costs were RMB 81.780 billion, up 12.1% year-on-year, primarily due to network quality optimization and increased investment in 5G and digitalization[17]. - R&D expenses surged by 56.8% year-on-year to RMB 1.118 billion, reflecting the company's commitment to technological innovation[17]. - The company's tax expenses for Q1 2022 were CNY 2,060,669,759.72, up from CNY 1,889,469,818.33 in Q1 2021, reflecting an increase of 9.0%[26]. - The financial expenses decreased significantly to CNY 195,297,829.91 from CNY 545,048,627.79 in the previous year, a reduction of 64.1%[26]. Cash Flow and Assets - The net cash flow from operating activities was CNY 28.27 billion, showing a slight increase of 2.08%[5]. - Cash and cash equivalents as of March 31, 2022, amounted to CNY 71.49 billion, a decrease from CNY 75.21 billion as of December 31, 2021[21]. - Accounts receivable increased to CNY 34.22 billion as of March 31, 2022, compared to CNY 22.33 billion at the end of 2021, representing a growth of 53.38%[21]. - Total assets at the end of the reporting period were CNY 768.15 billion, a 0.78% increase from the end of the previous year[6]. - Total liabilities as of March 31, 2022, were CNY 329.92 billion, a decrease from CNY 331.07 billion at the end of 2021[23]. Future Plans - The company plans to enhance its digital transformation and continue developing comprehensive intelligent information products and services[18]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[35].

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].

Financial Performance - 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, resulting in a dividend of RMB 0.170 per share[2]. - The company's operating revenue for 2021 was approximately CNY 434.16 billion, an increase of 11.3% compared to 2020[19]. - Net profit attributable to shareholders for 2021 was approximately CNY 25.95 billion, reflecting a growth of 24.4% year-over-year[19]. - The net profit after deducting non-recurring gains and losses was approximately CNY 25.04 billion, a 19.2% increase from the previous year[19]. - The total assets at the end of 2021 amounted to approximately CNY 762.24 billion, a 6.6% increase from 2020[19]. - The net assets attributable to shareholders increased to approximately CNY 428.68 billion, representing a growth of 17.9% year-over-year[19]. - Basic earnings per share for 2021 were CNY 0.31, up 19.2% from CNY 0.26 in 2020[20]. - The weighted average return on equity for 2021 was 6.7%, an increase of 0.9 percentage points compared to 2020[20]. - The company reported a diluted earnings per share of CNY 0.31 for 2021, consistent with the basic earnings per share[20]. - The company achieved a mobile communication service revenue of RMB 184.2 billion in 2021, a 4.9% increase, with mobile users reaching 372 million, maintaining industry-leading growth for four consecutive years[33]. - The fixed-line and smart home service revenue reached RMB 113.5 billion, a year-on-year increase of 4.1%, with smart home revenue growing by 25.1%[33]. - The company's digitalization business revenue was RMB 98.9 billion, a 19.4% increase compared to the previous year, with over 1,200 projects launched in 15 key industries[34]. - The company achieved a net profit attributable to shareholders of RMB 25.9 billion, calculated based on a weighted average of 84.4 billion shares outstanding[3]. - The company reported a total revenue from industrial digitalization of RMB 98.9 billion, with a year-on-year growth of 19.4%[48]. - The company reported a significant increase in revenue, achieving a total of 100 billion RMB, representing a year-over-year growth of 15%[102]. Dividend Policy - The company plans to distribute 60% of its annual profit to shareholders in cash, amounting to RMB 0.170 per share, with a goal to increase this to over 70% in the next three years[29]. - The company plans to gradually increase cash dividends to over 70% of the net profit attributable to shareholders within three years after the A-share listing[124]. - The company plans to distribute a total of RMB 15,568,915,025 in dividends, which is 60% of the net profit attributable to shareholders for the year 2021[124]. Risks and Uncertainties - The company emphasizes that its forward-looking statements regarding future strategies and performance are subject to known and unknown risks and uncertainties, which may lead to significant differences from actual results[3]. - The company has outlined various risks including economic and policy environment risks, operational risks, and international business risks in its annual report[5]. - The company faces risks from economic pressures, regulatory changes, and increased competition in the telecommunications sector, which may impact revenue growth[87]. - The company is actively responding to new laws and regulations, ensuring compliance in its operations[47]. - The company is focused on enhancing its cybersecurity capabilities to address emerging risks and challenges[46]. Technology and Innovation - The company is actively pursuing a "cloud transformation" strategy, focusing on integrating cloud and network services to drive digital transformation across various sectors[28]. - The company has completed the R&D layout for its technology innovation system, achieving breakthroughs in key technologies such as Tianyi Cloud 4.0 and 5G edge networks, with 33 technology achievements fully transformed and over 80 micro-innovation results shared[38]. - The company is leveraging new technologies like 5G, cloud computing, and artificial intelligence to drive digital transformation across various industries[84]. - The company aims to enhance its market expansion and technological development in the upcoming years[1]. - The company is committed to strengthening network security and compliance with new data protection laws to safeguard user information[89]. Corporate Governance - The company has been recognized for its corporate governance, receiving multiple awards including "Best Overall ESG" and "Best Investor Relations Program" in 2021[43]. - The company has established a comprehensive R&D system, achieving significant breakthroughs in key technologies such as Tianyi Cloud 4.0 and 5G edge networks[50]. - The company maintained independence from its controlling shareholder, ensuring no interference in its operational management[94]. - The management team includes experienced professionals with extensive backgrounds in telecommunications and finance, enhancing strategic decision-making capabilities[101]. - The company emphasizes the management of insider information to protect the rights of investors and related parties[92]. Market Expansion and Strategic Initiatives - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by 2025[103]. - The company is focusing on mergers and acquisitions to strengthen its market position and enhance operational efficiency[100]. - The company aims to leverage its existing user base to increase revenue through new service offerings and enhanced customer engagement strategies[100]. - The company is committed to building a world-class enterprise to create greater value for shareholders through strategic reforms and digital transformation[85]. - The company is enhancing its cloud security capabilities, with multiple provincial companies recognized as 5G application security innovation demonstration centers[37]. Environmental and Social Responsibility - The company has committed to social responsibilities, including contributions to network security, rural revitalization, and green development, aiming to create value for shareholders and society[28]. - The company has reduced carbon emissions by over 6 million tons annually through network sharing and is actively building a green supply chain[43]. - The company has actively promoted water conservation and waste material recycling, adhering to relevant environmental protection laws[134]. - The company has established digital rural demonstration towns in 10,000 locations and demonstration villages in 100,000 locations, covering 1,600 districts and counties nationwide[138]. - The company received the highest evaluation in the central unit's targeted poverty alleviation assessment for three consecutive years, earning national honors for its contributions to poverty alleviation[138]. Financial Management - The company has effectively reduced interest-bearing debt, contributing to a healthier financial position and lower interest expenses[192]. - The company maintained a loan repayment rate of 100% in both 2021 and 2020, demonstrating strong financial stability[192]. - The audit opinion confirmed that the financial statements fairly reflect the company's financial position and performance for the year ended December 31, 2021[195]. - Key audit matters included revenue recognition and goodwill impairment assessment, highlighting the complexity and significance of these areas in the financial statements[197]. - The company has completed interest payments on all bonds in a timely and full manner during the reporting period[188].

Financial Performance - The company's operating revenue for Q3 2021 reached CNY 108.99 billion, representing a year-on-year increase of 10.8%[4] - Net profit attributable to shareholders was CNY 5.58 billion, up 17.4% compared to the same period last year[4] - The net profit excluding non-recurring gains and losses increased by 35.4% to CNY 6.31 billion[4] - Basic earnings per share for the quarter were CNY 0.06, with a year-to-date figure of CNY 0.28, reflecting a 21.7% increase[5] - The company's total revenue for the first three quarters of 2021 was RMB 326.536 billion, a 12.3% increase year-on-year, with service revenue at RMB 304.271 billion, up 8.3%[14] - The net profit attributable to the parent company for the first three quarters of 2021 was RMB 23.327 billion, an increase of 24.7% compared to the same period in 2020[14] - The net profit attributable to shareholders of the parent company for Q3 2021 was CNY 23,326,518,964, an increase from CNY 18,705,620,919 in Q3 2020, representing a growth of approximately 24.3%[25] - The total comprehensive income for Q3 2021 was CNY 23,284,456,142, up from CNY 18,622,702,083 in Q3 2020, indicating a growth of about 25.5%[25] - Net profit for Q3 2021 reached CNY 23,058,046,373, an increase of 33.5% compared to CNY 17,268,639,932 in Q3 2020[36] - Operating profit for Q3 2021 was CNY 33,496,459,082, up 35.7% from CNY 24,681,695,132 in the same period last year[36] Assets and Liabilities - Total assets at the end of the reporting period amounted to CNY 763.27 billion, a 6.7% increase from the end of the previous year[5] - The total assets of the company as of the end of the third quarter were CNY 763.27 billion, compared to CNY 715.10 billion at the end of the previous year, marking a growth of 6.73%[21] - Total liabilities decreased to CNY 334.59 billion from CNY 348.92 billion, a reduction of 4.09%[21] - The company's equity attributable to shareholders increased to CNY 426.21 billion, up from CNY 363.46 billion, reflecting a growth of 17.28%[21] - Current assets as of September 30, 2021, totaled CNY 114.72 billion, significantly higher than CNY 51.99 billion at the end of 2020, indicating a growth of 120.4%[33] - Non-current assets amounted to CNY 627.77 billion as of September 30, 2021, slightly down from CNY 637.38 billion at the end of 2020, a decrease of 1.0%[33] - Total liabilities as of September 30, 2021, were CNY 334.61 billion, a decrease from CNY 343.55 billion at the end of 2020, reflecting a reduction of 2.7%[34] - Shareholders' equity increased to CNY 407.88 billion, up from CNY 345.82 billion at the end of 2020, representing a growth of 18.0%[34] Cash Flow - The company reported a net cash flow from operating activities of CNY 120.81 billion for the year-to-date, up 20.4%[4] - Cash flow from operating activities for the first three quarters of 2021 was CNY 120,814,566,827, compared to CNY 100,307,327,506 in the same period of 2020, marking an increase of approximately 20.5%[27] - Cash inflow from investment activities in Q3 2021 totaled CNY 14,345,072,860, significantly higher than CNY 4,925,911,430 in Q3 2020[29] - The net cash flow from financing activities in Q3 2021 was CNY (7,992,619,895), a decrease from CNY (44,540,857,715) in Q3 2020, indicating improved cash management[29] - The total cash and cash equivalents at the end of Q3 2021 reached CNY 85,644,304,961, compared to CNY 31,377,904,291 at the end of Q3 2020, showing a substantial increase of 173.5%[29] - The company recorded a net increase in cash flow from investment activities of CNY (50,814,520,037) for the first three quarters of 2021, compared to CNY (45,142,270,447) in the same period of 2020[29] - Cash inflow from financing activities totaled ¥100,001,322,408, significantly higher than last year's ¥43,948,988,076[42] - The net cash flow from financing activities was negative at ¥9,160,043,069, improving from the previous year's negative ¥45,718,936,318[42] - The total cash and cash equivalents at the end of the period reached ¥69,229,254,604, up from ¥16,655,542,985 in the same period last year[42] User Growth and Market Position - As of September 30, 2021, the total mobile users reached 36.966 million, an increase from 34.935 million in the same period of 2020[11] - The net increase in mobile users for the third quarter of 2021 was 1.864 million, compared to 1.378 million in the same period of 2020[14] - The number of 5G package users reached 15.554 million, with a net increase of 6.904 million users in the third quarter of 2021, up from 6.019 million in the same period of 2020[14] - Total mobile internet traffic reached 3,397.72 million TB, a year-on-year increase of 39.3%[14] Research and Development - Research and development expenses increased by 29.7% year-on-year to RMB 2.937 billion, reflecting the company's focus on technology innovation[16] - Research and development expenses increased to CNY 2.94 billion, up 29.63% from CNY 2.26 billion in the previous year[23] - Research and development expenses increased to CNY 1,710,250,393, representing a 34.7% rise from CNY 1,268,979,324 in Q3 2020[36] Strategic Focus - The company is focusing on digital transformation and 5G development opportunities to enhance investment and cost control[8] - The company aims to leverage the current strategic opportunities to transform into a service-oriented, technology-driven, and secure enterprise, enhancing its digital economy capabilities[16]

Financial Performance - For the first half of 2021, China Telecom reported operating revenue of RMB 219.237 billion, a year-on-year increase of 13.1%[11]. - Service revenue reached RMB 203.502 billion, reflecting a year-on-year growth of 8.8%, surpassing the industry average growth of 8.7%[14]. - EBITDA for the first half of 2021 was RMB 66.348 billion, up 5.1% from the previous year, with an EBITDA margin of 32.6%[11][14]. - Net profit attributable to shareholders was RMB 17.743 billion, representing a year-on-year increase of 27.2%[11][14]. - Basic earnings per share increased to RMB 0.219, compared to RMB 0.172 in the same period last year[11]. - Operating revenue for the first half of 2021 reached RMB 219.24 billion, an increase of 13.1% year-on-year[27]. - Net profit for the same period was RMB 17,866 million, representing a 27.5% increase compared to RMB 14,071 million in the prior year[38]. - The company reported a pre-tax profit of RMB 23,415 million for the first half of 2021, compared to RMB 18,246 million in the same period of 2020, an increase of 28.8%[73]. Capital Expenditures and Cash Flow - Capital expenditures amounted to RMB 27.005 billion, significantly lower than RMB 43.126 billion in the previous year[11]. - Free cash flow for the period was RMB 26.8 billion, indicating strong cash generation capabilities[14]. - Capital expenditure for the first half of 2021 was RMB 27.01 billion, a decrease of 37.4% compared to the previous year[32]. - Free cash flow surged to RMB 26.78 billion, marking a significant increase of 182.1% year-on-year[32]. - The net cash generated from operating activities was RMB 67,635 million, compared to RMB 65,286 million in the previous year, indicating a growth of 3.6%[41]. Revenue Breakdown - Mobile service revenue was RMB 97.9 billion, growing by 8.2%, while fixed-line service revenue reached RMB 105.6 billion, increasing by 9.3%[14]. - In the first half of the year, the company's mobile communication service revenue reached RMB 93.3 billion, a year-on-year increase of 32.9%[19]. - The company's fixed-line and smart home service revenue reached RMB 57.4 billion, a year-on-year increase of 5.2%[19]. - The broadband access revenue reached RMB 38.1 billion, with a year-on-year growth of 7.9%, and the broadband access ARPU increased to RMB 39.4, up 2.9%[19]. - The company's digitalization revenue reached RMB 50.1 billion, a year-on-year increase of 16.8%[19]. - Mobile communication service revenue amounted to RMB 93.34 billion, up from RMB 87.33 billion, reflecting a growth of 6.5%[64]. - Industry digitalization service revenue rose to RMB 50.11 billion, a significant increase of 16.7% from RMB 42.91 billion[64]. Strategic Initiatives and Digital Transformation - China Telecom is focusing on digital transformation, leveraging 5G, cloud computing, and AI to enhance its service offerings and user experience[18]. - The company is focusing on the "cloud transformation" strategy, leveraging the A-share listing opportunity to enhance operational efficiency and development momentum[21]. - The company aims to strengthen strategic collaboration and ecosystem partnerships to optimize resources and enhance operational service capabilities[21]. - The company has launched a new cloud computing subsidiary to integrate national cloud resources and capabilities, enhancing project development and delivery capabilities[24]. - The company has formed a high-level talent team of over 10,000 professionals, including scientists and senior experts, to support digital transformation in various industries[24]. Investments and R&D - The company has significantly increased its R&D investment, focusing on core technologies such as cloud computing, AI, and 5G, resulting in a substantial increase in patent applications[23]. - The self-developed distributed storage of Tianyi Cloud has passed ISO27040 certification, making the company the first cloud storage service provider in China to achieve this[23]. - The company has established 50 cloud resource pools with a security rating of level three or above, and 66 resource pools received the highest five-star rating[21]. Financial Position and Assets - Total assets decreased by 1.2% to RMB 706.48 billion as of June 30, 2021, while total debt fell by 38.8% to RMB 32.64 billion[33]. - The debt-to-capital ratio improved to 8.0%, down from 12.8% at the end of 2020[33]. - The company’s equity attributable to shareholders increased to RMB 373,160 million from RMB 363,456 million, reflecting a growth of 2.0%[37]. - The company has a total unused credit line of RMB 271,145 million as of June 30, 2021, up from RMB 244,326 million at the end of 2020[46]. Corporate Governance and Compliance - The company emphasizes the importance of corporate governance and has adopted internal control systems to enhance transparency and protect shareholder interests[104]. - The roles of Chairman and CEO are held by the same individual, which the company believes improves decision-making efficiency[104]. - The company is committed to replacing independent non-executive directors whose terms exceed six years by July 15, 2022, in compliance with regulatory requirements[100]. - The company has confirmed compliance with the standard code of conduct for securities trading by its directors and supervisors during the reporting period[104].

Financial Performance - China Telecom reported operating revenue of RMB 393,561 million for 2020, an increase from RMB 375,734 million in 2019, representing a growth of approximately 2.2%[7] - The company's EBITDA for 2020 was RMB 118,880 million, with an EBITDA margin of 31.8%, slightly down from 32.8% in 2019[7] - Net profit for 2020 was RMB 20,850 million, compared to RMB 20,517 million in 2019, reflecting a growth of about 1.6%[7] - Capital expenditure increased to RMB 84,800 million in 2020, up from RMB 77,557 million in 2019, indicating a focus on infrastructure investment[7] - Free cash flow decreased to RMB 14,276 million in 2020, down from RMB 21,725 million in 2019, highlighting potential cash flow challenges[7] - The company maintained a debt-to-equity ratio of 14.7% in 2020, a significant decrease from 22.4% in 2019, indicating improved financial stability[7] - The company's EBITDA was RMB 118.9 billion, reflecting a year-on-year growth of 1.4%[20] - The net profit attributable to shareholders was RMB 20.9 billion, with a year-on-year increase of 1.6%[20] - The company reported a revenue of CNY 100 billion for the fiscal year, representing a year-over-year growth of 10%[49] - The company provided a revenue guidance for the next fiscal year, expecting growth between 8% to 12%[51] User Growth and Market Presence - China Telecom had approximately 351 million mobile users and 159 million broadband users by the end of 2020, showcasing its strong market presence[2] - The number of mobile users reached 351 million by the end of 2020, with a net increase of 15.45 million users, and the market share rose to 22.0%[22] - The company had 86.5 million 5G package users, achieving a penetration rate of 24.6%[21] - Broadband users reached 159 million, with broadband access revenue of RMB 71.9 billion, a year-on-year increase of 5.1%[23] - The number of IoT connections grew significantly to 237.6 million, representing a 50.9% increase compared to 2019[58] - The mobile user base reached 351 million, with a net increase of 15.45 million users in 2020, and the market share continued to improve[65] Strategic Initiatives and Innovations - The company launched a strategic initiative called "Cloud Transformation" to enhance digital services and drive high-quality development[4] - The company plans to continue expanding its 5G services and has initiated the commercial rollout of 5G SA networks, positioning itself for future growth[4] - The company signed nearly 1,900 contracts for 5G industry applications, with over 1,100 implementation scenarios[24] - The digitalization revenue reached RMB 84 billion, growing by 9.7% year-on-year, maintaining industry leadership in revenue scale and market share[24] - The company launched over 100 ecological benefits in collaboration with more than 30 leading application partners, enhancing the value of 5G services[22] - The company aims to strengthen its technological innovation focus on key technologies, particularly in 5G, cloud, and AI integration[36] - The company is investing CNY 5 billion in R&D for new technologies, focusing on AI and cloud computing solutions[53] Corporate Governance and Management - The company is currently controlled by China Telecom Group, which holds approximately 70.89% of the issued share capital[38] - The management team has extensive experience in the telecommunications industry, with key executives holding advanced degrees in engineering and management[39][40][42] - The company emphasizes the importance of technological innovation and development within its strategic framework[39] - The management team is dedicated to maintaining high standards of corporate governance and financial transparency[46] - The company has a commitment to expanding its market presence and enhancing its service offerings through strategic partnerships and acquisitions[39][45] Social Responsibility and ESG Efforts - In 2020, China Telecom was recognized with national honors for its contributions to combating the COVID-19 pandemic, reflecting its commitment to social responsibility[4] - The company has actively participated in poverty alleviation efforts, achieving poverty alleviation in all targeted counties and villages[35] - The company has supported social recovery efforts during the pandemic by rapidly establishing 5G networks and cloud platforms for hospitals[35] - The company has been recognized with multiple awards for its ESG efforts, including the Bloomberg Businessweek "ESG Leading Enterprise Award" and the "Best Telecom Company in Asia" by FinanceAsia[35] - The company has implemented energy-saving and emission-reduction measures to protect the environment[186] - The company actively fulfills its universal service obligations and ensures smooth communication during emergencies[186] Financial Management and Capital Structure - The company reported a net increase in cash and cash equivalents of RMB 3.08 billion in 2020[107] - As of December 31, 2020, the company had a working capital deficit of RMB 187.13 billion, which decreased by RMB 4.35 billion from 2019, indicating improved liquidity[110] - Total assets increased from RMB 703.13 billion at the end of 2019 to RMB 715.10 billion at the end of 2020, reflecting a growth of 1.7%[111] - Total debt decreased from RMB 790.22 billion at the end of 2019 to RMB 533.42 billion at the end of 2020, a reduction of RMB 256.80 billion[112] - The company maintained a stable cash and cash equivalents balance of RMB 23.68 billion at the end of 2020, with 73.0% in cash[110] - The debt-to-capital ratio improved from 18.3% at the end of 2019 to 12.8% at the end of 2020, indicating better financial health[111] Dividend Policy - The company proposed a final dividend of HKD 0.125 per share for the 2020 fiscal year, balancing long-term development and shareholder returns[20] - The proposed final dividend for the year ended December 31, 2020, is HKD 0.125 per share, totaling approximately RMB 8.403 billion[120] - The dividend is subject to approval at the annual general meeting scheduled for May 7, 2021[120] Compliance and Auditing - The company appointed Deloitte Touche Tohmatsu and Deloitte Huayong as its international and domestic auditors for the year ending December 31, 2020[166] - The company plans to propose the appointment of PwC and KPMG as external auditors for the year ending December 31, 2021, subject to shareholder approval[166] - The company emphasized compliance with laws and regulations, ensuring no actions were taken that would harm shareholder interests[166] - The company has maintained a commitment to shareholder interests and adhered to corporate governance principles throughout its operations[166] Pandemic Response and Community Support - The company launched over 20 service initiatives in response to the pandemic, including free service extensions and rapid activation of important services[197] - The company provided critical communication support during the pandemic, including establishing 5G connections for hospitals and enhancing network coverage for remote education[196] - The company enhanced its online service capabilities through its customer service center, ensuring uninterrupted customer support during the pandemic[197]