未经中信证券和演讲嘉宾出面许可,任何机构和个人不得以任何形式将会议内容和相关信息对外公布、转发、转载、传播、复制、编辑、修改等。如有上述违法行为,中信证券保留追究相关方法律责任的权利。 尊敬的投资人 大家下午好 我是中信证券通信组的分析师李和强那非常荣幸今天下午能跟大家来聊一聊运营商铁塔以及中科署我们最近的观点那其实可以看到啊 其实最近虽然一段时间A股的三大运营商表现的其实没有说那么好 但是其实我们从把时间再拉长一点从港股的视角像这个电信联通他们从去年年底港股这边的股价其实累计都已经涨了30%以上了以色列基本上涨了20%多那么以及像我们年初推荐的这个中国铁塔目前其实也有一个比较好的表现那么今天的开这个会主要想跟大家介绍今天上周台湾发的一个新的公司叫做中国通信服务 中国通信服务我们觉得这个公司是可以在运营商和中国铁塔之外做一个额外去配置的也是运营商体系内一个非常优质的优质的基本面然后有良好的这个市值管理以及持续提升股东回报的这么一个公司简单的来讲就中通服这个公司今年的 可能接近7%左右是相当的有性价比那么除了推荐真空谱之外呢我们也将会对最近的这个运营商和铁卡做一个系统性的更新那么首先来聊聊真空谱这个公司其实真空 ...

发言人 45:30 更多一手调研纪要和研报数据加V：shuinu9870 发言人 54:45 但是核电的燃料，它的这个物流环节，或者说是储运环节，它是和我们传统的火电在煤炭上还 是有很大的差异的。相对来说核燃料的成本波动会更加的稳健，所以并不会对于核电的边际成 本形成周期性的影响。这一点它和水电就会比较相似。另外就是核电一旦投产，它的利用小时 数相对于水电可能还会更加的稳健。因为我们基本上核电只有大修检修期间，它会有利用小时 数的影响。但是大部分时间都是满负荷的运行。这一点和水电的丰枯水期以及来水大小年相比， 它的稳定性可能会更强。所以核电的估值的话，我们认为一旦进入一个集中投产期，盈利能力 和现金流大幅改善的时候，它的商业模式和运营的稳定性来讲的话，会媲美于水电公司。 发言人 48:06 更多一手调研纪要和研报数据加V：shuinu9870 更多一手调研纪要和研报数据加V：shuinu9870 中国通信服务 20240603_原文 发言人 00:00 发言人 00:22 发言人 00:55 发言人 01:33 更多一手调研纪要和研报数据加V：shuinu9870 一共持有中通服 60%的股权。这个其实和铁塔 ...

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

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

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

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 中 國 通 信 服 務 股 份 有 限 公 司 CHINA COMMUNICATIONS SERVICES CORPORATION LIMITED （於中華人民共和國註冊成立之股份有限公司） （股份編號：552） 截至二零二三年六月三十日止六個月之中期業績公佈 要點 . 本集團穩步推進戰略實施，業務發展穩中趨好，延續高質量經營業績，其中毛利 率、淨利潤率和ROE等經營效益指標持續提升，自由現金流有所改善。 — 經營收入達到人民幣73,170百萬元，增長5.7%。 — 淨利潤達到人民幣2,034百萬元，增長7.3%。 — 毛利率為10.7%，提升0.2個百分點；淨利潤率為2.8%，提升0.1個百分點；年化 ...

Financial Performance - Revenue growth of 5.0% and net profit growth of 6.4% for 2022, indicating strong financial performance [8] - Operating revenue for 2022 reached RMB 140,746 million, representing a 5.0% increase from RMB 133,991 million in 2021 [13] - Profit attributable to shareholders for 2022 was RMB 3,358 million, up 6.4% from RMB 3,157 million in 2021 [13] - Free cash flow for 2022 was RMB 4,353 million, reflecting a 7.2% increase compared to RMB 4,060 million in 2021 [13] - Basic earnings per share for 2022 were RMB 0.485, a 6.4% rise from RMB 0.456 in 2021 [13] - Total dividend per share for 2022 was RMB 0.1939, marking a 12.0% increase from RMB 0.1732 in 2021 [13] - The return on equity (ROE) was 8.5%, an increase of 0.1 percentage points year-on-year [23] - The company reported a decrease in operational costs by L%, contributing to improved profit margins [9] Revenue Breakdown - Revenue from telecommunications infrastructure services was RMB 72,907 million, accounting for 51.8% of total revenue, with a year-on-year growth of 1.4% [24] - Business process outsourcing services generated RMB 43,072 million, representing 30.6% of total revenue, with a year-on-year increase of 6.0% [24] - Revenue from application, content, and other services grew by 15.3% year-on-year to RMB 24,767 million, making it the largest driver of revenue growth [24] - Revenue from domestic non-telecom operator customers was RMB 60,583 million, representing a year-on-year growth of 5.5% [28] - Revenue from domestic telecom operator market reached RMB 77,165 million, with a year-on-year increase of 4.6%, becoming a key driver for overall revenue growth [29] - The overseas market revenue reached RMB 2,998 million, showing a year-on-year growth of 9.3% [29] Strategic Focus and Initiatives - The company aims to leverage digital economy opportunities to enhance core competitiveness and develop a second growth curve [5] - Focus on strategic emerging industries such as digital infrastructure, smart cities, and green low-carbon initiatives [5] - Continuous internal digital transformation is being implemented to improve operational efficiency [1] - The company is committed to high-quality development and creating new growth curves through integrated smart solutions [1] - The group is focusing on digital infrastructure construction, targeting key areas such as data centers, 5G, and industrial internet [32] - The group aims to enhance its smart city service capabilities, aligning with national strategies for urbanization and community development [33] Research and Development - The group's R&D expenditure was RMB 4,952 million, reflecting a year-on-year increase of 17.0% [30] - The company invested approximately RMB 50 billion in R&D in 2022, with cumulative R&D investment since the 13th Five-Year Plan reaching RMB 250 billion [65] - The company continues to invest in R&D to support digital transformation opportunities and enhance system integration and software development capabilities [79] Awards and Recognition - The company ranked fourth in the "2022 Top 100 Software and Information Technology Service Competitiveness" for the second consecutive year [20] - The company was recognized with multiple awards in 2022, including "Best CEO" and "Best CFO" in the Asia region [19] - The group received a total of 28 provincial and ministerial-level awards for its technological achievements throughout the year [30] Market Expansion and Customer Base - The first major customer group now consists of non-telecom operators, indicating a shift in customer base [11] - The company has expanded its services globally, covering dozens of countries and regions [17] - The company is expanding its overseas market presence, particularly in the Middle East and Southeast Asia, focusing on digital infrastructure and data center projects [54] Governance and Management - The company’s management team includes experienced professionals with over 30 years in the telecommunications industry [110][115] - The financial management team has over 20 years of experience in telecommunications and finance, ensuring robust financial oversight [113] - The company’s board of directors is responsible for formulating the dividend distribution plan, which will be executed following relevant legal and regulatory procedures [136] Related Party Transactions - The company has established seven continuous connected transaction agreements with China Telecom to manage related transactions, which were approved by independent shareholders [171] - The company ensures that the terms offered to China Telecom Group are not less favorable than those provided to independent third parties for similar services [177] - The agreements with China Telecom are expected to provide a stable revenue source, benefiting the company's future growth and development [173] Financial Commitments and Liabilities - Total contractual commitments as of December 31, 2022, amount to RMB 1,235,997,000, with RMB 1,023,431,000 due in 2023 [107] - Short-term borrowings total RMB 752,001,000, while long-term loans amount to RMB 129,120,000, with scheduled repayments of RMB 20,058,000 in 2023 [107] - The company has committed capital expenditures of RMB 217,583,000 that are contracted but not yet executed [107] Risks and Challenges - The company faces risks related to China's economic, political, and social conditions, which could significantly impact its business performance and financial condition [200] - The company anticipates potential economic downturns or disasters that could affect its operations and financial performance [200]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 中 國 通 信 服 務 股 份 有 限 公 司 CHINA COMMUNICATIONS SERVICES CORPORATION LIMITED （於中華人民共和國註冊成立之股份有限公司） （股份編號：552） 截至二零二二年十二月三十一日止之年度業績公佈 要點 . 本集團攻堅克難，整體業績再創新高，主要的經營業績、效益和股東回報指標全面 向好，實現高質量發展。 . 經營收入達到人民幣140,746百萬元，增長5.0%。 . 淨利潤達到人民幣3,358百萬元，增長6.4%，實現了淨利潤增速快於經營收入增 速的良好勢頭。 . 毛利率為11.4%，提升0.4個百分點，扭轉了近十多年以來的下降趨勢，實現企穩 ...

Financial Performance - Operating revenue reached RMB 69,253 million, an increase of 8.0% year-on-year[7] - Profit attributable to shareholders was RMB 1,896 million, up 4.6% compared to the previous year[8] - The group achieved a gross profit of RMB 7,293 million, reflecting a growth of 6.7% year-on-year, with a gross margin of 10.5%[13] - The group reported a basic earnings per share of RMB 0.274, an increase of 4.6% year-on-year[8] - Free cash flow was reported at RMB (2,607) million, indicating a decline from RMB (1,515) million in the previous year[8] - Total comprehensive income for the period was RMB 2,096,455, compared to RMB 1,656,164, marking a significant increase of 26.3%[52] - The company's net profit attributable to shareholders was RMB 1,896 million, representing a 4.6% increase from RMB 1,811 million in the previous year[40] Revenue Breakdown - Revenue from domestic telecom operators increased by 9.2%, contributing RMB 36,529 million, which accounted for 52.8% of total operating revenue[14] - Revenue from the domestic non-telecom operator market grew by 6.5%, totaling RMB 31,173 million, representing 45.0% of total operating revenue[14] - The overseas market achieved revenue of RMB 1,551 million, a year-on-year increase of 12.7%, accounting for 2.2% of total operating income[17] - Telecommunications infrastructure service revenue reached RMB 35,049 million, a year-on-year growth of 1.5%, representing 50.6% of total operating income[18] - Application, content, and other services revenue grew rapidly to RMB 12,667 million, with a year-on-year increase of 29.7%, contributing 18.3% to total operating income[18] - Revenue from business process outsourcing services reached RMB 21,537 million, a year-on-year increase of 8.8%, accounting for 31.1% of total operating income[18] Strategic Focus and Initiatives - The group is focusing on digital infrastructure construction and the integration of digital economy and real economy, seizing strategic opportunities[12] - The company is committed to enhancing its market competitiveness and technological innovation capabilities to drive high-quality development[12] - The group is actively involved in projects related to the Beijing 2022 Winter Olympics, contributing to national carbon neutrality goals[12] - The company is focusing on the "East Data West Calculation" strategy to enhance integrated service capabilities and expand market presence[24] - The company is actively responding to the national "dual carbon" strategy, implementing green and low-carbon plans, and is expected to save over 20% in energy consumption for the Beijing Yongfeng Data Center[30] Research and Development - R&D investment increased by over 18% year-on-year, becoming a key driver for revenue growth[24] - The company is committed to increasing R&D investment, particularly in original technologies in digital applications, aiming to transform into a technology-driven enterprise[31] Risk Management and Governance - The company has strengthened its risk control measures to mitigate impacts from changes in the operating environment, including pandemic outbreaks and regional instability, ensuring stable development[31] - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, ensuring compliance throughout the reporting period[158] - The company has not granted any share options to directors or their immediate family members as of June 30, 2022, maintaining a clear governance structure[160] Market Position and Client Relationships - Major clients include China Telecom Group and China Mobile Group, contributing RMB 22,725 million and RMB 8,978 million to total revenue, respectively, accounting for 32.8% and 13.0% of total operating revenue[73] - The company continues to engage in transactions with government-related enterprises under normal business terms, including telecommunications services and asset leasing[151] Financial Position - The total assets of the group as of June 30, 2022, were RMB 107,005 million, an increase of RMB 6,977 million from the end of 2021[44] - The total liabilities increased to RMB 66,497 million, up RMB 6,079 million from December 31, 2021[44] - Cash and cash equivalents decreased to RMB 18,039,422 from RMB 21,171,025, a decline of 14.3%[55] - The total accounts receivable, net of credit loss provisions, increased to RMB 23,154 million as of June 30, 2022, from RMB 18,254 million as of December 31, 2021, representing a growth of approximately 27.5%[92] Shareholder Information - China Telecom Group holds 3,393,362,496 shares, representing 74.83% of the class issued shares and 48.99% of the total issued shares[162] - China Mobile Communications Group owns 608,256,000 shares, accounting for 13.41% of the class issued shares and 8.78% of the total issued shares[162] - The company did not declare an interim dividend for the six months ended June 30, 2022, consistent with the previous year[88]

Innovation and Reform - The company emphasizes innovation and reform as key themes for 2021, focusing on value creation through technological advancements[3] - In 2021, the company implemented several reform measures, including introducing State Grid Information and Communication Industry Group as a strategic shareholder and four strategic investors at the subsidiary level[5] - The company is committed to deepening reforms to enhance competitiveness, development momentum, and employee creativity[5] - The company established a strategic partnership with SAP to provide cloud products and services[10] - The company plans to expand its market presence through new product development and strategic investments in digital infrastructure[10] - The company is focused on developing a blockchain product platform named "China Tongfu Chain," certified by the China Academy of Information and Communications Technology[67] - The company is enhancing its digital sports technology offerings, targeting government and industry clients to improve the digitalization of the sports sector[69] - The integration of IoT, big data, and digital twin technologies is being utilized to build comprehensive digital management platforms for towns, promoting rural revitalization[70] - The company is committed to smart city solutions, leveraging 5G, AI, and cloud computing to enhance urban management and services[69] Financial Performance - Operating revenue for 2021 reached RMB 133,991 million, representing a 9.2% increase from RMB 122,649 million in 2020[12] - Profit attributable to shareholders was RMB 3,157 million, up 2.5% from RMB 3,081 million in the previous year[12] - Free cash flow increased significantly by 54.4% to RMB 4,060 million from RMB 2,630 million in 2020[12] - Basic earnings per share rose to RMB 0.456, a 2.5% increase compared to RMB 0.445 in 2020[12] - Total dividend per share increased by 8.1% to RMB 0.1732 from RMB 0.1602 in the previous year[12] - The final dividend per share was RMB 0.1641, up from RMB 0.1335 in 2020[12] - Special dividend per share decreased to RMB 0.0091 from RMB 0.0267 in the previous year[12] - The gross profit margin was reported at 11.0%, with a gradual stabilization in the decline of the margin[22] - The company achieved a reduction in subcontracting costs, which accounted for 53.2% of operating revenue, down 1.6 percentage points year-on-year[28] - The accounts receivable turnover ratio improved to 29.7%, the lowest level in the past five years[28] Market and Revenue Growth - The focus is on high-value industries, expanding high-value businesses, and positioning in high-value regions to drive quality development[6] - The company focused on the domestic non-telecom operator market, which became the primary driver of revenue growth[22] - Revenue from the domestic non-operator customer market reached RMB 57,446 million, a year-on-year increase of 15.9%, accounting for 42.9% of operating revenue, up 2.5 percentage points[24] - Revenue from domestic telecom operator market was RMB 73,803 million, a year-on-year increase of 5.5%, reversing a decline of 5% in the previous year, accounting for 55.1% of operating revenue[25] - Overseas market revenue decreased to RMB 2,742 million, down 11.4% year-on-year, accounting for 2.0% of operating revenue[25] - Revenue from telecom infrastructure services was RMB 71,889 million, a year-on-year increase of 7.0%, accounting for 53.7% of operating revenue[26] - Business process outsourcing service revenue reached RMB 40,624 million, a year-on-year increase of 9.0%, accounting for 30.3% of operating revenue[26] - The revenue from applications, content, and other services reached RMB 21,478 million, up 18.0% year-on-year[56] - The company is actively expanding its market presence in 5G, data centers, smart cities, and other sectors to meet digital transformation demands[58] Corporate Governance and Compliance - The company received multiple awards for its corporate governance and ESG efforts, including "Best CEO" and "Best CFO" recognitions[30] - The company’s board of directors includes experienced professionals with extensive backgrounds in telecommunications and finance, ensuring strong governance[110] - The board proposed a final dividend payout ratio increase from 30% to 36%, with a final dividend of RMB 0.1641 per share, representing a year-on-year growth of 22.9%[23] - The company adheres to the Hong Kong Stock Exchange listing rules regarding the independence of its non-executive directors[127] - The company is committed to ensuring compliance with tax regulations for both domestic and foreign shareholders regarding dividend distributions[125] - The company’s board and supervisors have service contracts with a term of three years, which can be renewed upon expiration[137] - The company has established multiple communication channels with shareholders to keep them informed of business developments[180] - The board consists of nine directors, including two executive directors and four independent non-executive directors[183] - The company has adopted a standard code to regulate securities trading by directors and supervisors[189] Strategic Partnerships and Investments - The company completed the acquisition of 100% equity in China Communication Construction Group for RMB 4.63 billion[10] - The company successfully introduced State Grid Information Communication Industry Group as a strategic shareholder, holding 2.40% of the total issued share capital[27] - The supply chain management subsidiary attracted strategic investors with a total investment of RMB 900 million, resulting in a 26.015% stake for the investors[27] - The company plans to leverage its "Consultant + Employee + Steward" service model to capture opportunities in the digital infrastructure market, focusing on key regions and industries[31] - The company will continue to expand its overseas business under the principles of safety and effectiveness, participating in the "Belt and Road" initiative[31] Risk Management and Challenges - The company is facing risks related to the economic, political, and social conditions in China, which could impact its business performance[166] - The company is strategically expanding its overseas business, which involves various operational risks[169] - The company plans to continue enhancing internal management and risk prevention measures in 2022, focusing on protecting shareholder interests[172] Future Outlook - The company has set a future outlook with a revenue growth target of 10-15% for the upcoming fiscal year[108] - New product launches are expected to contribute an additional $500 million in revenue over the next year[109] - The company is expanding its market presence in Southeast Asia, aiming for a 20% market share by 2025[110] - A strategic acquisition of a local telecom firm is anticipated to enhance service offerings and customer base[106] - The management team emphasized a focus on improving operational efficiency, targeting a 5% reduction in costs[108] - The company plans to enhance customer engagement through digital platforms, aiming for a 30% increase in user interaction[109]