中国电信(00728) - 2025 - 中期业绩

Performance Highlights The company achieved steady growth in operating revenue and net profit in the first half of 2025, driven by rapid development in strategic emerging businesses and enhanced shareholder returns Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 271.5 billion | 1.3% | | Service Revenue | 249.1 billion | 1.2% | | EBITDA | 80.6 billion | 4.9% | | Net Profit | 23.0 billion | 5.5% | | Basic EPS | 0.25 yuan | - | - Strategic emerging businesses experienced rapid growth, with Smart Business Revenue increasing by 89.4%, Security Business Revenue by 18.2%, Video Network Revenue by 46.2%, Satellite Business Revenue by 20.5%, and Quantum Business Revenue by 171.1%[2] - The company continued to strengthen shareholder returns, with the Board of Directors approving an interim dividend for 2025, representing 72% of H1 shareholder-attributable profit, or RMB 0.1812 per share (tax inclusive), a year-on-year increase of 8.4%[2] Chairman's Report The Chairman's Report details the company's robust financial performance, strategic advancements in innovation, enhanced governance, and commitment to social responsibility in the first half of 2025 Overall Performance The company achieved steady growth in operating revenue and net profit in H1 2025, with sustained service revenue, strong free cash flow, rapid development in strategic emerging businesses, and enhanced shareholder returns Key Financial Data for H1 2025 | Indicator | H1 2025 (RMB) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 271.5 billion | 1.3% | | Service Revenue | 249.1 billion | 1.2% | | EBITDA | 80.6 billion | 4.9% | | Net Profit | 23.0 billion | 5.5% | | Basic EPS | 0.25 yuan | - | | Capital Expenditure | 34.2 billion | - | | Free Cash Flow | 13.1 billion | 13.9% | - Mobile communication service revenue reached RMB 106.6 billion, a 1.3% year-on-year increase; fixed-line and smart home service revenue reached RMB 64.1 billion, a 0.2% year-on-year increase[6] - Industrial digitalization revenue reached RMB 74.9 billion, with AIDC revenue growing by 7.4% year-on-year; Tianyi Cloud revenue reached RMB 57.3 billion; Smart Business Revenue reached RMB 6.3 billion, up 89.4% year-on-year; Security Business Revenue reached RMB 9.1 billion, up 18.2% year-on-year; Video Network Revenue increased by 46.2% year-on-year, Satellite Business Revenue by 20.5% year-on-year, and Quantum Business Revenue by 171.1% year-on-year[6] - The Board of Directors decided to continue distributing an interim dividend for 2025, with cash distribution representing 72% of the profit attributable to shareholders for the first half, amounting to RMB 0.1812 per share (tax inclusive), a year-on-year increase of 8.4%[7] Strategic Development and Innovation The company fully embraces AI, building a smart cloud system, accelerating technological innovation, upgrading digital information infrastructure, and actively pursuing green development and cybersecurity strategies to navigate the new technological revolution Smart Cloud System and "AI+" Initiative The company built a smart cloud system centered on "Xirang," offering integrated "computing power + platform + data + model + application" services to accelerate AI empowerment across industries, individuals, and enhance operational efficiency - A smart cloud system, centered on the primary technology "Xirang," has been established, providing integrated "computing power + platform + data + model + application" smart cloud services, with total owned and accessed computing power reaching 77 EFLOPS[9] - For government and enterprise clients, smart cloud services accelerate digital and intelligent transformation across various industries, developing over 80 industry-specific large models and more than 30 intelligent agents, serving over 20,000 industry clients[10] - The company deeply promotes AI technology empowerment, creating over 160 AI applications, with smart customer service accounting for 87.5%, fault work orders reduced by 9.8%, and work order processing time reduced by 13%[11] Technological Innovation and Leading Enterprise Development The company continues to advance high-level technological self-reliance, achieving breakthroughs in AI, computing power scheduling, large models, and quantum communication, earning multiple industry awards and certifications to solidify its leading technological position - The self-developed Tianyi Cloud server operating system passed national security and reliability assessments; breakthroughs in key technologies like computing power fusion scheduling and training inference acceleration led to the company retaining its number one position in China's computing power interconnection scheduling market[14] - The Xingchen multimodal large model was continuously upgraded, winning championships in the ICCV 2025 and IJCAI 2025 AI anti-counterfeiting tracks; self-developed high-performance privacy computing protocol clusters earned the "Wu Wenjun Artificial Intelligence Science and Technology Progress Award"[14] - Quantum communication user scale exceeded 6 million, serving over 3,000 industry clients in government, finance, and energy sectors; quantum computing achieved productization in three application scenarios: physical machine deployment, cloud platform applications, and quantum information education[12] Cloud-Network Convergence and Digital Infrastructure Upgrade Leveraging cloud-network convergence, the company accelerates intelligent upgrades of digital information infrastructure, proactively deploying computing power, building a new generation of AIDC with a center-edge tiered layout, and evolving networks towards ultra-high speed and large capacity while deepening co-construction and sharing - Proactively deploying computing power infrastructure, owned smart computing power reached 43 EFLOPS, data center racks exceeded 580,000, with eight major hub nodes accounting for 85%[16] - A smart computing network system integrating cloud-edge-device and coordinating access/inter-computing/intra-computing was built, launching the nation's first 400G quantum-secure OTN encrypted computing private line[16] - Networks are evolving towards ultra-high speed and large capacity, with over 9.88 million 10G PON ports for gigabit optical networks, and gigabit residential coverage exceeding 96% in urban areas; total 5G mid-to-high frequency base stations reached 1.49 million, and low-frequency base stations reached 880,000[16] Green Empowerment and Security Escort The company actively implements green development, promoting digital information infrastructure's green transformation, optimizing energy use, and enhancing green product and service empowerment, while integrating security with AI innovation to bolster cybersecurity, build large model security fences, and fortify AI defenses with quantum technology - Carbon emissions per unit of telecom business volume decreased by double digits; AI energy saving covered over 5.96 million base station sectors and 3,400 equipment rooms, with annualized electricity savings of approximately 1.1 billion kWh, and green electricity usage exceeding 1.4 billion kWh[17] - Accelerating "security-intelligence integration," continuously iterating the "Xingchen • Jianwei" security large model, Cloud-Dike anti-DDoS scrubbing capacity exceeded 18 Tbps, and Cloud-Dike security托管 services accumulated over 7,000 connected clients[18] - Strengthening "security for intelligence," building foundational security fences for large models, and deeply integrating quantum technology with next-generation networks and cloud computing to establish quantum-level security defenses for AI[18] Reform and Opening-up and Governance System The company comprehensively advances state-owned enterprise reform, optimizing talent development, refining R&D organization and innovation incentives, deepening reforms across all levels, and enhancing systemic open cooperation in technology, digital infrastructure, capital, and international markets to improve governance - Solidly advancing the "Everest," "Kunlun," and "Wuyue" programs, 24 new chief experts were selected, improving the echelon structure of scientific and technological talent[19] - Deepening reforms of specialized companies, establishing Artificial Intelligence Technology (Shanghai) Co., Ltd.; Cloud Company and Digital Intelligence Company were recognized as benchmark enterprises in SASAC's "Sci-Tech Reform Action" for three consecutive years[19] - Strengthening open cooperation in technology, collaborating with Shanghai AI Lab to deeply participate in the application of DeepLink ultra-large-scale cross-domain mixed training technology; strengthening open cooperation in capital, acquiring a controlling stake in Guodun Quantum, and comprehensively deploying in the quantum information industry[20] Social Responsibility and Capital Market Recognition The company actively fulfills social responsibilities in communication assurance, rural revitalization, anti-fraud, and employee care, while prioritizing corporate governance, enhancing information disclosure, and strengthening investor relations, earning broad capital market recognition and numerous awards - Successfully completed communication assurance for major events such as the Harbin Asian Winter Games, Boao Forum for Asia, and Shenzhou-20 manned spacecraft launch, utilizing Tiangong satellite and drone technologies in disaster relief efforts[22] - "Caring Wing Stations" universal services covered 80,000 urban and rural business halls, organized over 80,000 care activities, benefiting over 8.6 million people; developed the "Yi'an Anti-Fraud" platform[22] - Awarded "Best Corporate Social Responsibility in Asia" by Corporate Governance Asia for the sixth consecutive year; received the "Investor Relations Management Shareholder Return Award" at the 16th Listed Company Investor Relations Management "Tianma Award" by Securities Times; achieved an A-level Huazheng Index ESG Comprehensive Rating in 2025[24] Strategic Outlook and Future Direction Reviewing the success of its "Cloud-Network Convergence and Digital Transformation" strategy, the company upgrades its strategy to "Cloud-Network Convergence, Digital Transformation, and Smart Empowerment," focusing on customer-centricity, reform, innovation, cloud-network integration, green security, digital platforms, and talent to build a world-class enterprise - The company fully implemented its Cloud-Network Convergence and Digital Transformation strategy, with service revenue growth consistently above the industry average for years, significant technological innovation achievements, and the formation of a "1+1+1+M+N" AI development layout[25] - The company's strategy is upgrading to "Cloud-Network Convergence, Digital Transformation, and Smart Empowerment," adhering to customer-centricity, reform and opening-up as drivers, technological innovation as the core, cloud-network convergence as the foundation, green security as the baseline, digital intelligence platforms as hubs, and talent as the root[27] - Looking ahead, the company will deeply advance the "AI+" initiative, accelerate the intelligent evolution and upgrade of digital information infrastructure, further comprehensively deepen reform and opening-up, and expedite the construction of a world-class enterprise[28] Group Performance This section presents the condensed consolidated financial statements, including the statement of comprehensive income and financial position, along with detailed notes on accounting policies, segment reporting, revenue, costs, and shareholder distributions Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's operating revenue increased by 1.3% to RMB 271.469 billion, net profit grew by 5.5% to RMB 23.019 billion, and basic earnings per share were RMB 0.25 Key Data from Condensed Consolidated Statement of Comprehensive Income | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Operating Revenue | 271,469 | 268,011 | | Operating Profit | 28,549 | 27,260 | | Net Finance Costs | (294) | (250) | | Investment Income and Other | 107 | 84 | | Share of Profit of Associates and Joint Ventures | 1,233 | 1,145 | | Profit Before Tax | 29,595 | 28,239 | | Income Tax | (6,576) | (6,273) | | Profit for the Period | 23,019 | 21,966 | | Profit Attributable to Company Shareholders | 23,017 | 21,812 | | Basic EPS (RMB) | 0.25 | 0.24 | Composition of Operating Expenses | Expense Category | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Depreciation and Amortization | (52,039) | (49,532) | | Network Operation and Support Costs | (78,288) | (80,131) | | Selling, General and Administrative Expenses | (32,783) | (33,090) | | Staff Costs | (50,438) | (50,566) | | Other Operating Expenses | (29,372) | (27,432) | | Total Operating Expenses | (242,920) | (240,751) | Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets reached RMB 887.224 billion, a 2.38% increase from year-end 2024, with non-current assets slightly down, current assets significantly up due to increased receivables and short-term bank deposits, and both total liabilities and equity growing Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | | :--- | :--- | :--- | | Assets | | | | Total Non-Current Assets | 662,230 | 678,500 | | Total Current Assets | 224,994 | 188,125 | | Total Assets | 887,224 | 866,625 | | Liabilities and Equity | | | | Total Current Liabilities | 330,152 | 325,377 | | Total Non-Current Liabilities | 83,063 | 84,696 | | Total Liabilities | 413,215 | 410,073 | | Total Equity Attributable to Company Shareholders | 466,871 | 452,390 | | Non-Controlling Interests | 7,138 | 4,162 | | Total Equity | 474,009 | 456,552 | - Net current liabilities improved to RMB 105.158 billion from RMB 137.252 billion at year-end 2024; management believes that with sustained operating cash flow, unused credit facilities (RMB 205.266 billion), and a strong credit record, the company has sufficient funds for operations and debt servicing[36][40] Notes to the Financial Statements These notes detail the basis of preparation for interim financial information, adoption of accounting standards, segment reporting, operating revenue breakdown, finance costs, income tax, EPS, dividend policy, accounts receivable and payable composition and aging, and post-reporting period dividend distribution Basis of Preparation The condensed consolidated interim financial information is prepared in accordance with IAS 34 and HKEX Listing Rules, and during the period, the Group gained control of Guodun Quantum through a concerted action agreement, consolidating it and recognizing RMB 991 million in goodwill - The condensed consolidated interim financial information is prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" issued by the IASB and complies with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[37] - The Group, through a concerted action agreement with other shareholders of Guodun Quantum, collectively holds 40.43% of Guodun Quantum's voting rights, gaining control in H1 2025, consolidating it into the financial statements, and recognizing goodwill of RMB 991 million[39] Adoption of Revised International Financial Reporting Standards The first-time adoption of IAS 21 "The Effects of Changes in Foreign Exchange Rates" (amended) – Lack of Exchangeability, had no material impact on the Group's condensed consolidated interim financial information - The first-time adoption of International Accounting Standard 21 "The Effects of Changes in Foreign Exchange Rates" (amended) – Lack of Exchangeability had no material impact on the Group's condensed consolidated interim financial information[41] Segment Reporting Given the Group operates its telecommunications business in an integrated manner, management identifies only one operating segment; assets and operating revenue outside mainland China are immaterial, thus no geographical information is presented, and no single customer accounts for over 10% of revenue - The Group operates its telecommunications business in an integrated manner, and management has identified only one operating segment[42] - The Group's assets located outside mainland China and operating revenue generated from activities outside mainland China are less than ten percent of the Group's total assets and operating revenue, and no single customer accounts for ten percent or more of the Group's operating revenue[42] Operating Revenue Analysis For the six months ended June 30, 2025, total operating revenue was RMB 271.469 billion, with service revenue at RMB 249.112 billion, comprising mobile, fixed-line, smart home, industrial digitalization, and other services, while revenue from sales of goods and others was RMB 22.357 billion Operating Revenue Breakdown | Type of Goods or Services | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Service Revenue | 249,112 | 246,235 | | - Mobile Communication Service Revenue | 106,572 | 105,217 | | - Fixed-line and Smart Home Service Revenue | 64,133 | 63,993 | | - Industrial Digitalization Service Revenue | 74,853 | 73,750 | | - Other Service Revenue | 3,554 | 3,275 | | Revenue from Sales of Goods and Other | 22,357 | 21,776 | | Total Operating Revenue | 271,469 | 268,011 | - Revenue recognition timing: RMB 20.298 billion revenue recognized at a point in time, and RMB 251.171 billion revenue recognized over a period of time[43] Net Finance Costs For the six months ended June 30, 2025, the Group's net finance costs increased to RMB 294 million from RMB 250 million in the prior year, comprising net interest expense of RMB 1.063 billion, interest income of RMB 941 million, and net exchange losses and other items of RMB 172 million Composition of Net Finance Costs | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Interest Expense on Lease Liabilities | 776 | 912 | | Interest Expense on Short-term and Long-term Loans | 322 | 320 | | Less: Capitalized Interest Expense | (35) | (40) | | Net Interest Expense | 1,063 | 1,192 | | Interest Income | (941) | (1,042) | | Net Exchange Losses and Other | 172 | 100 | | Net Finance Costs | 294 | 250 | - The applicable annual interest rate for capitalization of interest on construction in progress was 2.4%–2.9% (2024: 2.8%–3.2%)[45] Income Tax For the six months ended June 30, 2025, income tax expense increased to RMB 6.576 billion from RMB 6.273 billion in the prior year, primarily comprising provisions for China income tax, other tax jurisdictions, and deferred tax Composition of Income Tax Expense | Indicator | H1 2025 (RMB million) | H1 2024 (RMB million) | | :--- | :--- | :--- | | Provision for China Income Tax | 4,309 | 5,761 | | Provision for Income Tax in Other Tax Jurisdictions | 118 | 103 | | Deferred Tax | 2,149 | 409 | | Income Tax Expense | 6,576 | 6,273 | - Estimated income tax expense calculated at the statutory tax rate of 25% was RMB 7.399 billion; income tax expense is influenced by tax rate differences, non-taxable income, non-deductible expenses, unrecognized deferred tax, and R&D expense super deduction, among other factors[48] Earnings Per Share For the six months ended June 30, 2025, both basic and diluted earnings per share were RMB 0.25, representing an increase compared to the same period last year - Basic earnings per share were RMB 0.25 (H1 2024: RMB 0.24)[49] - Diluted earnings per share were equal to basic earnings per share, as there were no potential ordinary shares during the reporting period[50] Dividends The final dividend for the year ended December 31, 2024, was RMB 0.0927 per share (tax inclusive), totaling approximately RMB 8.483 billion, which has been declared and distributed - The final dividend for the year ended December 31, 2024, was RMB 0.0927 per share (tax inclusive), totaling approximately RMB 8.483 billion, which has been declared[51] - Of this, RMB 7.269 billion was distributed on June 11, 2025, and RMB 1.214 billion was distributed on July 18, 2025[51] Net Accounts Receivable As of June 30, 2025, net accounts receivable significantly increased to RMB 70.135 billion from RMB 42.867 billion at year-end 2024, with third-party receivables at RMB 79.166 billion and credit loss provisions at RMB 15.981 billion Net Accounts Receivable Analysis | Category | June 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | | :--- | :--- | :--- | | Third Parties | 79,166 | 49,726 | | China Telecom Group | 5,133 | 2,556 | | China Tower | 50 | 46 | | Other China Telecom Operators | 1,767 | 1,259 | | Total | 86,116 | 53,587 | | Less: Provision for Credit Losses | (15,981) | (10,720) | | Net Amount | 70,135 | 42,867 | Accounts Receivable Aging Analysis | Aging | June 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | | :--- | :--- | :--- | | Within 1 Year | 69,222 | 42,715 | | 1 to 2 Years | 10,197 | 6,435 | | 2 to 3 Years | 3,820 | 2,273 | | Over 3 Years | 2,877 | 2,164 | Accounts Payable As of June 30, 2025, total accounts payable slightly decreased to RMB 157.417 billion from RMB 160.550 billion at year-end 2024, with third-party accounts payable amounting to RMB 113.150 billion Accounts Payable Analysis | Category | June 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | | :--- | :--- | :--- | | Third Parties | 113,150 | 117,720 | | China Telecom Group | 30,863 | 31,194 | | China Tower | 11,730 | 10,618 | | Other China Telecom Operators | 1,674 | 1,018 | | Total | 157,417 | 160,550 | Accounts Payable Aging Analysis | Aging | June 30, 2025 (RMB million) | Dec 31, 2024 (RMB million) | | :--- | :--- | :--- | | Due within 1 Month or on Demand | 34,195 | 39,275 | | Due between 1 and 3 Months | 32,383 | 32,642 | | Due between 3 and 6 Months | 36,859 | 40,409 | | Due over 6 Months | 53,980 | 48,224 | Events After the Reporting Period Post-reporting period, the company distributed the 2024 final dividend of RMB 1.214 billion on July 18, 2025; the Board resolved on August 14, 2025, to declare an interim dividend for H1 2025 of RMB 0.1812 per share (tax inclusive), totaling approximately RMB 16.581 billion - The 2024 final dividend of RMB 1.214 billion was distributed on July 18, 2025[57] - The Board of Directors resolved on August 14, 2025, to declare an interim dividend for H1 2025 of RMB 0.1812 per share (tax inclusive), totaling approximately RMB 16.581 billion[57] - This dividend was not accrued in the condensed consolidated financial information for the six months ended June 30, 2025[57] Corporate Governance and Other Information This section covers the company's adherence to corporate governance codes, review by the audit committee, compliance with securities trading standards, details of interim dividend distribution, forward-looking statements, and board member composition Dealings in Listed Securities For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[58] Review by Audit Committee The Audit Committee reviewed the Group's accounting policies, practices, risk management, internal controls, and financial reporting matters with management and external auditors, and also reviewed the interim report for the six months ended June 30, 2025 - The Audit Committee has reviewed the accounting policies and practices adopted by the Group with management and the company's external auditors, and has discussed the Group's risk management, internal controls, and financial reporting matters[59] - The Audit Committee has reviewed the interim report for the six months ended June 30, 2025[59] Compliance with Corporate Governance Code The company prioritizes corporate governance, continuously improving internal controls, enhancing information disclosure, and increasing transparency; except for the combined roles of Chairman and CEO, the company complied with the Corporate Governance Code in Appendix C1 of the HKEX Listing Rules during the reporting period - The company places high importance on corporate governance, continuously promoting the improvement of its internal control system, strengthening information disclosure, and enhancing corporate transparency[60] - For the six months ended June 30, 2025, the roles of Chairman and Chief Executive Officer of the company were held by the same person[60] - Save for the above, the company has complied with the code provisions set out in Appendix C1 "Corporate Governance Code" of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited for the six months ended June 30, 2025[60] Standard Code for Securities Transactions by Directors and Supervisors Following written inquiries, all company directors and supervisors confirmed compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, for the period from January 1 to June 30, 2025 - Following written inquiries to the directors and supervisors, they have confirmed compliance with all standard requirements of the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules for the period from January 1, 2025, to June 30, 2025[61] Interim Dividend Distribution Details The Board resolved to declare an interim dividend for H1 2025 of RMB 0.1812 per share (tax inclusive), totaling approximately RMB 16.581 billion; H share register closure is from August 29 to September 3, 2025, with payment expected by September 30, 2025, and this section also details withholding tax policies and payment arrangements for various H share shareholders - The Board of Directors decided to distribute a dividend to all shareholders, representing 72% of the profit attributable to company shareholders for the six months ended June 30, 2025 (RMB 23.02 billion), totaling RMB 16.58 billion, or RMB 0.1812 per share (tax inclusive)[62] - The interim dividend is expected to be paid on or before September 30, 2025, to shareholders whose names appear on the company's H share register of members on September 3, 2025; the H share register of members will be closed from August 29, 2025, to September 3, 2025[63] - Dividends will be denominated and declared in RMB; A share shareholders and Stock Connect investors will receive dividends in RMB, while H share shareholders (excluding Stock Connect investors) will receive dividends in HKD, with the conversion rate based on the average central parity rate of RMB to HKD for the week prior to August 14, 2025[64] - Withholding income tax policy: 10% corporate income tax will be withheld for overseas H share non-resident enterprise shareholders; H share individual shareholders will have 10% or 20% individual income tax withheld based on their resident status and tax treaties; Stock Connect mainland individual investors and securities investment funds will have 20% individual income tax withheld; Stock Connect mainland enterprise investors will not have dividend income tax withheld[65][66][68] Forward-Looking Statements Forward-looking statements in this announcement do not constitute a commitment to investors, are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, and the company will not update them, urging investors to be aware of investment risks - Forward-looking statements in this announcement, including development strategies, future operating plans, and outlooks, do not constitute a commitment by the company to investors[74] - Such forward-looking statements are subject to known and unknown risks, uncertainties, and other factors, which may cause the company's actual performance, financial condition, or operating results to differ materially from any future performance, financial condition, or operating results implied by such forward-looking statements[74] - The company will not update these forward-looking statements, and investors are kindly reminded to pay attention to investment risks[74] Board Members As of the announcement date, the Board of Directors includes Chairman and CEO Ke Ruiwen, President and COO Liu Guiqing, Executive VPs Tang Ke and Li Yinghui (CFO), Non-Executive Director Lü Yongzhong, and Independent Non-Executive Directors Wu Jianing, Yang Zhiwei, Chen Dongqi, and Lü Wei - Board members include Ke Ruiwen (Chairman and Chief Executive Officer), Liu Guiqing (President and Chief Operating Officer), Tang Ke (Executive Vice President), Li Yinghui (Chief Financial Officer, Executive Vice President), Lü Yongzhong (Non-Executive Director), Wu Jianing (Independent Non-Executive Director), Yang Zhiwei (Independent Non-Executive Director), Chen Dongqi (Independent Non-Executive Director), and Lü Wei (Independent Non-Executive Director)[75]