2019-09-03 08:20Financial Performance - Operating revenue for the first half of 2019 reached RMB 190.488 billion, a decrease of 1.3% compared to RMB 193.029 billion in the same period of 2018[5]. - EBITDA for the first half of 2019 was RMB 63.287 billion, representing an increase of 13.3% from RMB 55.858 billion in the previous year, with an EBITDA margin of 34.7%[5]. - Net profit for the first half of 2019 was RMB 13.909 billion, up 2.5% from RMB 13.570 billion in the same period of 2018[5]. - Service revenue reached RMB 182.6 billion, a year-on-year increase of 2.8%, with mobile service revenue growing by 5.6% to RMB 88.2 billion[16]. - In the first half of 2019, the company's operating revenue was RMB 190.49 billion, a decrease of 1.3% year-on-year; service revenue was RMB 182.59 billion, an increase of 2.8% year-on-year[26]. - The company reported a basic earnings per share of RMB 0.17, consistent with the same period in 2018[39]. - The net profit attributable to shareholders for the six months ended June 30, 2019, was RMB 13,909 million, representing an increase compared to the previous period[40]. - The total comprehensive income for the same period was RMB 14,092 million, which includes other comprehensive income adjustments[40]. User Growth and Market Share - The number of mobile users increased by 20.48 million, reaching a total of 330 million, with a market share increase to 20.4%[16]. - The number of Tianyi HD users reached 111 million, with smart gateway and home cloud users reaching 61.8 million and 32.15 million respectively[18]. Capital Expenditure and Cash Flow - Capital expenditure for the first half of 2019 was RMB 35.019 billion, an increase of 6.3% compared to RMB 32.947 billion in the previous year[5]. - Free cash flow remained strong at RMB 18.3 billion, reflecting the company's robust financial health[16]. - Capital expenditures for the first half of 2019 were RMB 35.02 billion, an increase of 6.3% year-on-year, while free cash flow remained strong at RMB 18.31 billion[30]. Emerging Business and Innovation - Emerging business revenue accounted for 55.4% of service revenue, contributing 5.7 percentage points to overall service revenue growth[16]. - Cloud business revenue grew by 11.0% year-on-year, while Internet finance revenue increased by 112.2%, with a cumulative transaction amount growing by 40.4%[18]. - The company achieved a 3.0 percentage point increase in service revenue driven by DICT and IoT business[18]. - The company is actively promoting the integration of 5G with cloud computing and AI technologies[20]. - The company has deepened reforms in its technology innovation system, increasing investment in emerging technology R&D[19]. 5G Development - The company plans to accelerate the deployment and preparation for large-scale commercial use of 5G services[15]. - The company aims to launch network upgrades for standalone (SA) architecture in 2020, enhancing its edge computing and network slicing capabilities[21]. - The company is actively exploring and promoting the shared construction of 5G network resources to reduce construction and operational costs[21]. - The company has signed contracts with over 400 enterprise customers to jointly innovate in 5G industry applications across various sectors including transportation, healthcare, and education[21]. Financial Position and Assets - As of June 30, 2019, total assets increased to RMB 710.96 billion, a growth of 7.2% from the end of 2018, while total debt decreased to RMB 76.60 billion, down 20.0%[31]. - The debt-to-capital ratio improved to 18.1%, a decrease of 3.7 percentage points from the end of 2018[31]. - The company’s equity attributable to shareholders was RMB 345,783 million, up from RMB 343,069 million in 2018, indicating a growth of 0.8%[37]. Cost Management and Operational Efficiency - The company continues to focus on precise management and resource utilization efficiency, leading to effective cost control and improved operational performance[27]. - In the first half of 2019, the company's operating expenses amounted to RMB 170.54 billion, a decrease of 1.9% year-on-year, with the expense ratio to operating income at 89.5%, down 0.6 percentage points from the same period last year[27]. - Network operation and support costs totaled RMB 50,780 million for the first half of 2019, a decrease of 6.5% from RMB 54,184 million in the same period of 2018[90]. Corporate Governance and Compliance - The company emphasizes corporate governance and has adopted measures to enhance internal controls and transparency[130]. - The roles of Chairman and CEO are held by the same individual to improve decision-making efficiency[130]. - The company has complied with the corporate governance code during the reporting period[130]. Accounting Standards and Financial Reporting - The financial report is prepared in accordance with International Accounting Standards and reflects the unaudited financial position as of June 30, 2019, and the operating results for the six-month period[48]. - The company adopted several new and revised International Financial Reporting Standards, including IFRS 16 on leases, which has impacted the accounting policies[49]. - The implementation of IFRS 16 resulted in the recognition of right-of-use assets and lease liabilities on the balance sheet, affecting the financial statements significantly[52].