2021-08-18 08:33Financial 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].