中国通信服务(00552) - 2025 - 中期财报

Summary This summary outlines the company's H1 2025 operating performance, showing growth in both revenue and net profit, with a slight decrease in gross profit margin. The company actively addresses market challenges, seizes digital economy and AI opportunities, and drives steady development across its three business segments and three customer markets, with non-telecom operator enterprise and overseas markets' revenue share exceeding half for the first time H1 2025 Key Financial Data | Metric | 2025 (RMB million) | 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Operating Revenue | 76,939 | 74,412 | 3.4% | | Gross Profit | 7,888 | 8,116 | -2.8% | | Profit Attributable to Equity Holders of the Company | 2,129 | 2,125 | 0.2% | | Basic Earnings Per Share (RMB) | 0.307 | 0.307 | 0.2% | | Free Cash Flow | (7,627) | (2,165) | – | - The Group's operating performance showed steady progress, with operating revenue increasing by 3.4% year-over-year and net profit by 0.2% year-over-year. The gross profit margin was 10.3%, and the net profit margin was 2.8%[7] - The Group's three major customer markets developed steadily, with combined revenue from domestic non-telecommunications operator enterprise customers and overseas markets exceeding half of operating revenue for the first time[7] - The Group's three business segments achieved comprehensive growth, with deepening AI application scenarios and accelerated digital transformation driving the continuous rapid development of applications, content, and other services, becoming the core driver of revenue growth[7] Chairman's Report The Chairman's Report outlines the company's strategic positioning as a 'new-generation integrated smart service provider' in H1 2025, emphasizing stable operating performance growth through technological innovation, market expansion, and strategic emerging business cultivation amidst the rapid evolution of the digital economy and AI technologies. The report also covers the company's ESG practices and future outlook Operating Performance and Financial Results The company maintained steady growth in operating revenue and net profit in H1, with service revenue increasing by 2.9% year-over-year. Despite a decline in gross profit margin, the company achieved comprehensive growth across its three business segments and steady development in its three customer markets by transitioning old and new drivers and seizing digital intelligence opportunities - H1 operating revenue reached RMB 76,939 million, a 3.4% year-over-year increase; service revenue was RMB 74,981 million, a 2.9% year-over-year increase[9] - Operating gross profit was RMB 7,888 million, a 2.8% year-over-year decrease; gross profit margin was 10.3%, down 0.6 percentage points year-over-year[9] - Net profit was RMB 2,129 million, a 0.2% year-over-year increase; net profit margin was 2.8%, down 0.1 percentage points year-over-year[9] Business Segment Performance All three of the company's business segments maintained a positive trend. Revenue from applications, content, and other services increased by 11.7% year-over-year, accounting for 21.2% of total revenue, and has been the core driver of revenue growth for several consecutive years, benefiting from deepening AI applications and accelerated digital transformation across various industries H1 2025 Business Segment Revenue | Business Segment | Revenue (RMB million) | YoY Growth | | :--- | :--- | :--- | | Telecommunications Infrastructure Services | 38,272 | 1.6% | | Business Process Outsourcing Services | 22,383 | 1.0% | | Applications, Content and Other Services | 16,284 | 11.7% | - Revenue from applications, content, and other services continuously increased its share to 21.2%, serving as the core driver of revenue growth for several consecutive years[10] Customer Market Performance The company's three major customer markets developed steadily. Domestic non-telecommunications operator enterprise customer market revenue grew by 12.9% year-over-year, strongly supporting overall revenue growth; overseas market revenue grew by 8.7% year-over-year; domestic telecommunications operator market revenue decreased by 4.6% year-over-year, but the company maintained resilience through its 'CAPEX+OPEX+Smart Applications' strategy H1 2025 Customer Market Revenue | Customer Market | Revenue (RMB million) | YoY Growth | | :--- | :--- | :--- | | Domestic Telecommunications Operators | 38,203 | -4.6% | | Domestic Non-Telecommunications Operator Enterprise Customers | 36,585 | 12.9% | | Overseas Market | 2,151 | 8.7% | - The domestic non-telecommunications operator enterprise customer market achieved double-digit growth, primarily benefiting from opportunities in computing infrastructure construction and integrated service capabilities[13] - The overseas market integrated into the 'Belt and Road' initiative, expanded high-value projects, and extended into new sectors such as industrial digitalization and new energy services[13] Strategic Emerging Business Development The company's strategic emerging businesses showed strong momentum in H1, with new contract value accounting for over 40% of total new contract value. The company deeply cultivates digital infrastructure, green and low-carbon, smart city, and emergency safety sectors, focusing on key industries like government, energy, and transportation, to create benchmark projects and facilitate industrial upgrading through technological innovation and full-chain service capabilities - Strategic emerging businesses maintained rapid growth in H1, with new contract value from this segment accounting for over 40% of total new contract value[15] Digital Infrastructure Sector The company seized the computing power market opportunities brought by AI technological transformation, undertaking smart computing center construction, data center renovation, and cloud platform/5G+ projects in multiple locations, providing intelligent, agile, green, energy-efficient, secure, and controllable integrated digital infrastructure construction and service assurance for government, internet, finance, energy, and other industry clients - Seized the computing power market opportunities driven by AI technological transformation, undertaking smart computing center construction, data center renovation, cloud platform, and 5G+ projects in multiple locations domestically and internationally[16] - New contract value from this sector maintained rapid growth in H1[16] Green and Low-Carbon Sector The company actively engaged in the green and low-carbon industry, adopting a 'green energy + energy-saving technology' dual-driven model to create benchmark projects such as low-carbon smart computing centers and 5G green base stations, and participated in drafting the first national standard for green data center evaluation, demonstrating its industry influence - Adopted a 'green energy + energy-saving technology' dual-driven model to create a series of benchmark projects, including low-carbon smart computing centers, 5G green base stations, green and low-carbon parks, and virtual power plant platforms[17] - Participated in drafting the first national standard for green data center evaluation, 'Green Data Center Evaluation,' demonstrating cutting-edge technological wisdom and industry influence[17] Smart City Sector The company seized opportunities in new urban infrastructure construction, leveraging its 'planning + design + implementation + delivery + operation' full-chain service capabilities, deeply integrating digital technologies such as AI, IoT, and big data, achieving rapid growth in new contract value in digital government, smart education, and smart water conservancy sectors - Leveraged 'planning + design + implementation + delivery + operation' full-chain service capabilities, deeply integrating digital technologies such as AI, IoT, and big data[19] - In H1, new contract value in digital government, smart education, smart water conservancy, smart cultural tourism, smart healthcare, and enterprise digital transformation sectors all achieved rapid growth[19] Emergency Safety Sector The company assists in building a modern emergency management system, leveraging AI large models to empower industry applications and enhance disaster prevention, mitigation, and relief capabilities. In cybersecurity, it developed multiple independently controllable products, undertook major national cybersecurity projects, and provided integrated security services - Leveraged AI large models to empower industry applications, assisting clients in key sectors such as mining, chemical, water conservancy, and fire protection to achieve intelligent transformation of emergency management[20] - Developed multiple independently controllable cybersecurity products, undertook major national cybersecurity projects, and provided integrated security services covering cybersecurity planning, design, implementation, integration, delivery, and operation and maintenance[20] Technological Innovation and New Productive Forces The company strengthened technology-driven innovation in H1, increasing R&D investment in cutting-edge fields like AI, developing nearly a hundred innovative products, and fully implementing the 'AI+' initiative to strategically deploy AI businesses and build core competitiveness. Concurrently, it activated new development momentum through scientific and technological innovation system reforms - Focused on cutting-edge fields to strengthen technological innovation, centralized R&D efforts, built differentiated core competitiveness, deepened industrial cooperation, and promoted deep integration of technological and industrial innovation[22] Technological Innovation Leadership The company adheres to self-reliance in technological innovation, increasing R&D investment in core areas, forming nearly a hundred innovative products for emerging technologies such as AI, security, and low-carbon. It has accumulated over 4,100 authorized patents, over 10,900 software copyrights, and participated in 48 national standards - Formed a product innovation library with nearly a hundred products for emerging technologies such as AI, security, and low-carbon[23] - Accumulated over 4,100 authorized patents, over 10,900 software copyrights, and participated in 48 national standards[23] AI Business Layout The company fully implemented the 'AI+' initiative, strategically deploying AI businesses from three aspects: integrated innovation, deep scenario cultivation, and ecological collaboration, with an AI delivery team of over 1,400 people. In H1, new contract value in the AI sector exceeded RMB 1.3 billion, covering over 200 clients - Fully implemented the 'AI+' initiative, strategically deploying AI businesses from three aspects: integrated innovation, deep scenario cultivation, and ecological collaboration[24] - Possesses an AI delivery team of over 1,400 people, providing customized services such as smart computing infrastructure construction and operation, data governance, and scenario-based application R&D[24] - In H1, new contract value in the AI sector exceeded RMB 1.3 billion, covering over 200 clients[24] Scientific and Technological Innovation System Reform The company continuously deepened its scientific and technological innovation system reform, optimizing R&D intensive operation and promotion mechanisms and achievement transformation mechanisms to improve R&D resource utilization efficiency, and perfecting mechanisms for cultivating, introducing, and selecting scientific and technological innovation experts to stimulate innovation and development vitality - Optimized R&D intensive operation and promotion mechanisms and achievement transformation mechanisms, improving R&D resource utilization efficiency[25] - Perfected mechanisms for cultivating, introducing, and selecting scientific and technological innovation experts, adopting multi-dimensional incentive methods to stimulate innovation and development vitality[25] Environmental, Social, and Governance (ESG) The company actively fulfills its environmental and social responsibilities, implements the 'dual carbon' strategy, promotes green and low-carbon development, and actively participates in social welfare activities such as emergency rescue and rural revitalization. In corporate governance, the company continuously enhances governance capabilities, improves its risk and internal control management system, and has received multiple capital market awards - Implemented the national 'dual carbon' strategy, steadily executed green and low-carbon development plans, established an energy-saving and emission-reduction assessment and reward/punishment mechanism, and reduced total energy consumption[27] - Completed construction and communication assurance tasks related to emergency rescue, major events, and rural revitalization, becoming a strong support for emergency relief and livelihood protection[28] - Received honors such as 'Most Respected Company,' 'Best CFO,' 'Best Investor Relations Company,' 'Best ESG,' and 'Best Company Board' in the Extel 'Asia's Best Management Team 2025' awards[29] Future Outlook Looking ahead, the company will firmly adhere to its positioning as a 'new-generation integrated smart service provider,' fully embrace AI, deeply advance the 'AI+' initiative, and build a distinctive technology-driven enterprise with AI at its core. The company will continuously enhance its full-chain, integrated delivery capabilities, actively deploy in emerging markets such as smart computing centers, smart operations and maintenance, and new energy, to achieve high-quality development and high-level security - Firmly adhered to the positioning as a 'new-generation integrated smart service provider,' continuously enhancing the 'four capabilities,' strengthening technological innovation leadership, and fully embracing AI[31] - Deeply advanced the 'AI+' initiative, internally empowering corporate governance and externally strengthening service capabilities, to build a distinctive technology-driven enterprise with AI at its core, driving comprehensive smart services[31] - Actively deployed in emerging markets, focusing on areas such as smart computing centers, smart operations and maintenance, and new energy, continuously innovating business models, and creating industry-leading products[31] Financial Overview This financial overview provides a detailed analysis of the company's H1 2025 financial performance, including operating revenue, operating costs, gross profit, selling and administrative expenses, profit attributable to shareholders, cash flow, and asset-liability status. The report indicates stable revenue growth but a decline in gross profit margin due to reduced customer capital expenditure, while emphasizing the importance of cost control and working capital management Operating Revenue Analysis The company's H1 2025 operating revenue was RMB 76,939 million, a 3.4% year-over-year increase, with service revenue growing by 2.9% year-over-year. Revenue from applications, content, and other services maintained rapid growth, domestic non-operator enterprise customer market revenue achieved faster growth, and overseas market revenue grew steadily - H1 2025 operating revenue reached RMB 76,939 million, a 3.4% increase compared to H1 2024; service revenue reached RMB 74,981 million, a 2.9% increase compared to H1 2024[34] H1 2025 Revenue by Business Segment | Business Type | Revenue (RMB million) | YoY Growth | | :--- | :--- | :--- | | Telecommunications Infrastructure Services | 38,272 | 1.6% | | Business Process Outsourcing Services | 22,383 | 1.0% | | Applications, Content and Other Services | 16,284 | 11.7% | H1 2025 Revenue by Market | Market Type | Revenue (RMB million) | YoY Growth | | :--- | :--- | :--- | | Domestic Telecommunications Operators | 38,203 | -4.6% | | Domestic Non-Telecommunications Operator Enterprise Customers | 36,585 | 12.9% | | Overseas Market | 2,151 | 8.7% | Operating Costs Analysis H1 2025 operating costs increased by 4.2% year-over-year. Subcontracting costs rose by 4.1%, and material costs increased by 8.1%, primarily driven by large projects undertaken under the general contracting model. Direct employee costs decreased by 2.6%, reflecting the company's reasonable control over total employment and optimization of employment structure - H1 2025 operating costs were RMB 69,051 million, a 4.2% year-over-year increase[38] - Direct employee costs decreased by 2.6%, subcontracting costs increased by 4.1%, and material costs grew by 8.1%[38] - The company will further strengthen subcontracting management, enhance independent delivery capabilities, and reinforce general contracting project management and material cost control[38] Gross Profit Analysis H1 2025 gross profit was RMB 7,888 million, a 2.8% year-over-year decrease, with a gross profit margin of 10.3%, down 0.6 percentage points year-over-year, primarily affected by reduced customer capital expenditure. The company is improving its gross profit margin by selecting high-margin projects, increasing the proportion of high-value businesses, and strengthening cost control - H1 2025 gross profit was RMB 7,888 million, a 2.8% year-over-year decrease; gross profit margin was 10.3%, down 0.6 percentage points year-over-year[39] - The change in gross profit margin was primarily influenced by factors such as reduced customer capital expenditure[39] - The company, through performance assessments, guides subsidiaries to select and expand high-margin projects, increase the proportion of high-value businesses, and optimize R&D mechanisms, expecting a positive trend in overall gross profit margin[39] Selling, General and Administrative Expenses Analysis H1 2025 selling, general and administrative expenses were RMB 6,182 million, a 5.5% year-over-year decrease, accounting for 8.0% of operating revenue, down 0.8 percentage points year-over-year. This was due to the company's active cost control, strict implementation of quality and efficiency improvement measures, and precise investment of R&D resources in AI and digital infrastructure - H1 2025 selling, general and administrative expenses were RMB 6,182 million, a 5.5% year-over-year decrease[41] - Selling, general and administrative expenses accounted for 8.0% of operating revenue, a 0.8 percentage point decrease from the same period last year[41] - The company actively controlled expenses, strictly implemented quality and efficiency improvement measures, and precisely invested R&D resources, focusing on cultivating capabilities related to AI and digital infrastructure[41] Profit Attributable to Equity Holders of the Company In H1 2025, profit attributable to equity holders of the company was RMB 2,129 million, a 0.2% increase compared to RMB 2,125 million in H1 2024 - In H1 2025, profit attributable to equity holders of the company was RMB 2,129 million, a 0.2% increase compared to H1 2024[42] Cash Flow Analysis In H1 2025, the company's net cash outflow was RMB 8,073 million, an improvement compared to the RMB 9,123 million outflow in H1 2024. The company continues to prioritize working capital management to maintain healthy cash flow levels - In H1 2025, the Group's net cash outflow was RMB 8,073 million, compared to a net cash outflow of RMB 9,123 million in H1 2024[43] - The company consistently prioritizes working capital management and will continue to strengthen related efforts to maintain healthy cash flow levels[43] Assets and Liabilities Status As of June 30, 2025, the company's financial position remained stable. Total assets were RMB 138,248 million, total liabilities were RMB 90,598 million, and the asset-liability ratio was 65.5%, a slight decrease from the end of 2024 Key Assets and Liabilities Data | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total Assets | 138,248 | 136,618 | | Total Liabilities | 90,598 | 90,004 | | Asset-Liability Ratio | 65.5% | Slightly decreased | Interim Financial Report Review Report KPMG reviewed the company's interim financial report for the six months ended June 30, 2025. Based on the review, no matters were identified that indicate the interim financial report was not prepared in all material respects in accordance with International Accounting Standard 34 'Interim Financial Reporting' - KPMG has reviewed the interim financial report in accordance with International Standard on Review Engagements 2410[48] - Review conclusion: Nothing has come to our attention that causes us to believe that the interim financial report as at June 30, 2025, is not prepared, in all material respects, in accordance with International Accounting Standard 34 'Interim Financial Reporting'[49] Consolidated Income Statement This consolidated income statement presents the company's financial performance for the six months ended June 30, 2025. Operating revenue increased by 3.4% year-over-year to RMB 76,939 million, and gross profit decreased by 2.8% year-over-year to RMB 7,888 million. Profit for the period attributable to equity holders of the company was RMB 2,129 million, with basic earnings per share of RMB 0.307 Consolidated Income Statement (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Operating Revenue | 76,939,251 | 74,411,953 | | Operating Costs | (69,051,641) | (66,296,374) | | Gross Profit | 7,887,610 | 8,115,579 | | Other Income | 839,173 | 879,847 | | Selling, General and Administrative Expenses | (6,181,999) | (6,541,835) | | Other Expenses | (104,888) | (56,832) | | Finance Costs | (43,911) | (59,026) | | Share of Profits of Associates and Joint Ventures | 44,741 | 67,372 | | Profit Before Tax | 2,440,726 | 2,405,105 | | Income Tax | (234,123) | (207,155) | | Profit for the Period | 2,206,603 | 2,197,950 | | Profit for the Period Attributable to Equity Holders of the Company | 2,128,715 | 2,124,984 | | Basic/Diluted Earnings Per Share (RMB) | 0.307 | 0.307 | Consolidated Statement of Profit or Loss and Other Comprehensive Income This consolidated statement of profit or loss and other comprehensive income presents the company's comprehensive income for the six months ended June 30, 2025. Profit for the period was RMB 2,206,603 thousand, and total other comprehensive income was RMB 410,871 thousand, primarily comprising net fair value changes of equity instruments measured at fair value through other comprehensive income. Total comprehensive income for the period was RMB 2,617,474 thousand Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 2,206,603 | 2,197,950 | | Other Comprehensive Income for the Period (After tax) | | | | Equity instruments measured at fair value through other comprehensive income: Net change in fair value reserve | 394,782 | 501,997 | | Exchange differences on translation of financial statements of subsidiaries outside mainland China | 16,089 | (14,030) | | Total Other Comprehensive Income for the Period | 410,871 | 487,967 | | Total Comprehensive Income for the Period | 2,617,474 | 2,685,917 | | Total Comprehensive Income for the Period Attributable to Equity Holders of the Company | 2,539,573 | 2,612,916 | Consolidated Statement of Financial Position This consolidated statement of financial position presents the company's assets, liabilities, and equity as of June 30, 2025. Total assets were RMB 138,248,212 thousand, an increase from the end of 2024. Term deposits with financial institutions for over one year significantly increased within non-current assets. Net current assets were RMB 14,791,857 thousand, total liabilities were RMB 90,598,314 thousand, and equity attributable to equity holders of the company was RMB 46,460,941 thousand Consolidated Statement of Financial Position (As of June 30, 2025) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Non-Current Assets | | | | Property, Plant and Equipment, Net | 5,986,579 | 5,910,252 | | Term deposits with financial institutions for over one year | 15,163,324 | 12,170,901 | | Total Non-Current Assets | 35,007,293 | 31,944,591 | | Current Assets | | | | Inventories | 2,110,075 | 1,183,231 | | Trade and Bills Receivables, Net | 29,588,202 | 25,296,205 | | Contract Assets, Net | 42,559,871 | 37,767,809 | | Cash and Cash Equivalents | 11,580,258 | 19,638,036 | | Total Current Assets | 103,240,919 | 104,672,985 | | Total Assets | 138,248,212 | 136,617,576 | | Current Liabilities | | | | Trade and Bills Payables | 67,577,549 | 65,894,889 | | Contract Liabilities | 7,147,578 | 9,190,050 | | Total Current Liabilities | 88,449,062 | 87,954,679 | | Total Liabilities | 90,598,314 | 90,004,424 | | Equity Attributable to Equity Holders of the Company | 46,460,941 | 45,435,871 | | Total Equity | 47,649,898 | 46,613,152 | Consolidated Statement of Changes in Equity This consolidated statement of changes in equity presents the company's equity movements for the six months ended June 30, 2025. Equity attributable to equity holders of the company increased from RMB 45,435,871 thousand at the beginning of the period to RMB 46,460,941 thousand at the end, primarily due to contributions from profit for the period and total other comprehensive income for the period, as well as the impact of dividend distribution Consolidated Statement of Changes in Equity (For the six months ended June 30) | Metric | January 1, 2025 (RMB thousand) | June 30, 2025 (RMB thousand) | | :--- | :--- | :--- | | Total Equity Attributable to Equity Holders of the Company | 45,435,871 | 46,460,941 | | Non-Controlling Interests | 1,177,281 | 1,188,957 | | Total Equity | 46,613,152 | 47,649,898 | | Profit for the Period Attributable to Equity Holders of the Company | 2,128,715 | | | Other Comprehensive Income for the Period Attributable to Equity Holders of the Company | 410,858 | | | Dividend Distribution | (1,514,720) | | Condensed Consolidated Statement of Cash Flows This condensed consolidated statement of cash flows presents the company's cash flows for the six months ended June 30, 2025. Net cash used in operating activities was RMB (7,565,828) thousand, net cash used in investing activities was RMB (241,440) thousand, and net cash used in financing activities was RMB (266,107) thousand. Cash and cash equivalents at the end of the period were RMB 11,580,258 thousand Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (7,565,828) | (2,406,974) | | Net Cash Used in Investing Activities | (241,440) | (6,454,076) | | Net Cash Used in Financing Activities | (266,107) | (262,125) | | Net Decrease in Cash and Cash Equivalents | (8,073,375) | (9,123,175) | | Cash and Cash Equivalents at End of Period | 11,580,258 | 13,807,171 | Notes to the Unaudited Interim Financial Report These notes provide detailed supplementary information to the unaudited interim financial report, covering the company's principal activities, basis of preparation, changes in accounting policies, segment reporting, specific composition and changes of various financial statement items, and significant related party transactions. These notes are crucial for understanding the specific details and context of the company's financial statements Principal Activities The company and its subsidiaries are leading service providers in China, offering integrated smart solutions for informatization and digitalization, including telecommunications infrastructure services, business process outsourcing services, and applications, content, and other services - The Group provides integrated smart solutions for informatization and digitalization[59] - Principal activities include telecommunications infrastructure services, business process outsourcing services, and applications, content, and other services[59] Basis of Preparation This interim financial report is prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and complies with the disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. The report is unaudited but has been reviewed by KPMG - This interim financial report is prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and complies with the disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[60] - The interim financial report is unaudited but has been reviewed by KPMG in accordance with International Standard on Review Engagements 2410[60] Changes in Accounting Policies During this interim period, the company first applied the amended International Accounting Standard 21 'The Effects of Changes in Foreign Exchange Rates 'Lack of Exchangeability'', but this amendment had no significant impact on the Group's interim financial report - The amendment to International Accounting Standard 21 'The Effects of Changes in Foreign Exchange Rates 'Lack of Exchangeability'' was first applied during this interim period[61] - The adoption of the above amendment had no significant impact on the Group's interim financial report[61] Segment Reporting The company primarily has one business segment, which is providing integrated smart solutions for informatization and digitalization, thus no other segment information is disclosed. Information regarding major customers and operating regions can be found in Note 5 - The Group primarily has one business segment, which is providing integrated smart solutions for informatization and digitalization[63] - No other segment information is disclosed; information regarding major customers and operating regions can be found in Note 5[63] Operating Revenue The company's operating revenue is derived from providing integrated smart solutions. In H1 2025, revenue from telecommunications infrastructure services was RMB 38,272,609 thousand, business process outsourcing services revenue was RMB 22,382,937 thousand, and applications, content, and other services revenue was RMB 16,283,705 thousand. Operating revenue from regions outside mainland China was RMB 2,151 million Operating Revenue by Nature of Business (For the six months ended June 30) | Nature of Business | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Telecommunications Infrastructure Services Revenue | 38,272,609 | 37,666,188 | | Business Process Outsourcing Services Revenue | 22,382,937 | 22,162,474 | | Applications, Content and Other Services Revenue | 16,283,705 | 14,583,291 | | Total | 76,939,251 | 74,411,953 | - Revenue from China Telecom Group accounted for 33.6% of total operating revenue, and revenue from China Mobile Communications Group accounted for 8.3%[65] - Operating revenue from regions outside mainland China was RMB 2,151 million[65] Operating Costs H1 2025 total operating costs were RMB 69,051,641 thousand. Of this, subcontracting costs were RMB 42,932,050 thousand, material costs were RMB 13,341,575 thousand, and direct employee costs were RMB 3,707,393 thousand Composition of Operating Costs (For the six months ended June 30) | Cost Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Subcontracting Costs | 42,932,050 | 41,233,277 | | Material Costs | 13,341,575 | 12,336,999 | | Direct Employee Costs | 3,707,393 | 3,807,665 | | Direct Costs of Goods Distributed | 1,560,609 | 1,098,458 | | Short-Term Leases and Leases of Low-Value Assets Expenses | 609,940 | 604,986 | | Depreciation and Amortization | 498,208 | 505,257 | | Others | 6,401,866 | 6,709,732 | | Total | 69,051,641 | 66,296,374 | Other Income H1 2025 total other income was RMB 839,173 thousand. This primarily included interest income of RMB 270,299 thousand, dividend income from equity instruments measured at fair value through other comprehensive income of RMB 211,712 thousand, and management fee income of RMB 166,948 thousand Composition of Other Income (For the six months ended June 30) | Income Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest Income | 270,299 | 325,641 | | Dividend Income | 211,712 | 191,435 | | Management Fee Income | 166,948 | 165,747 | | Government Grants | 93,034 | 87,807 | | Write-off of Debts Not Required to be Paid | 27,869 | 11,116 | | Gains on Disposal of Property, Plant and Equipment, etc | 9,840 | 7,688 | | Additional Deduction for Input VAT | 2,750 | 29,241 | | Others | 56,721 | 61,172 | | Total | 839,173 | 879,847 | Finance Costs H1 2025 total finance costs were RMB 43,911 thousand, a decrease from RMB 59,026 thousand in H1 2024. The main components were interest on bank and other loans and interest on lease liabilities Composition of Finance Costs (For the six months ended June 30) | Expense Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on Bank and Other Loans | 20,419 | 31,503 | | Interest on Lease Liabilities | 23,492 | 27,523 | | Total | 43,911 | 59,026 | Profit Before Tax H1 2025 profit before tax was RMB 2,440,726 thousand. Of this, total employee costs were RMB 7,987,519 thousand, amortization was RMB 99,633 thousand, depreciation was RMB 709,824 thousand, and net impairment losses on trade receivables and others were RMB 161,577 thousand Deductions from Profit Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries, Wages and Other Benefits | 6,833,056 | 7,308,835 | | Contributions to Defined Contribution Retirement Benefit Plans | 1,154,463 | 1,108,808 | | Total Employee Costs | 7,987,519 | 8,417,643 | | Amortization | 99,633 | 98,587 | | Depreciation | 709,824 | 729,391 | | Net Impairment Losses and Reversals on Inventories | 27,729 | 18,604 | | Net Impairment Losses and Reversals on Trade Receivables, Other Receivables, Contract Assets and Others | 161,577 | 118,914 | Income Tax H1 2025 total income tax was RMB 234,123 thousand. The actual tax expense differed from the estimated income tax expense calculated at the statutory tax rate of 25%, primarily due to factors such as subsidiary tax rate concessions, non-taxable income, and additional deductions for R&D expenses Composition of Income Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current Tax | 244,762 | 296,994 | | Deferred Tax | (10,639) | (89,839) | | Total Income Tax | 234,123 | 207,155 | - The actual tax expense differed from the estimated income tax expense calculated at the statutory tax rate of 25%, primarily due to factors such as subsidiary tax rate concessions, non-taxable income, and additional deductions for R&D expenses[70] - Entities qualified as high-tech enterprises, those in the Western Development region, and small low-profit enterprises may calculate income tax at preferential rates of 15%, 15%, and 20%, respectively[70] Earnings Per Share For the six months ended June 30, 2025, basic earnings per share were RMB 0.307. As there were no potentially dilutive ordinary shares issued during either period, diluted earnings per share were the same as basic earnings per share - Basic earnings per share for the six months ended June 30, 2025, were RMB 0.307[71] - As there were no potentially dilutive ordinary shares issued during either period, diluted earnings per share were the same as basic earnings per share[72] Other Comprehensive Income H1 2025 total other comprehensive income was RMB 410,871 thousand. This primarily included fair value changes of equity instruments measured at fair value through other comprehensive income recognized during the period of RMB 526,396 thousand, and exchange differences on financial statements of RMB 16,089 thousand Composition of Other Comprehensive Income (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Fair value changes of equity instruments measured at fair value through other comprehensive income recognized during the period | 526,396 | 670,820 | | Net deferred tax recognized in other comprehensive income | (131,614) | (168,823) | | Exchange differences on financial statements | 16,089 | (14,030) | | Total Other Comprehensive Income for the Period | 410,871 | 487,967 | Dividends The Board resolved not to declare an interim dividend for the six months ended June 30, 2025. The final dividend pertaining to the previous financial year and approved during this period was RMB 0.2187 per share, totaling RMB 1,514,720 thousand - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[74] Approved Final Dividends (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Final dividend pertaining to the previous financial year, approved during the period (RMB 0.2187 per share) | 1,514,720 | 1,505,716 | Other Non-Current Assets As of June 30, 2025, total other non-current assets were RMB 824,323 thousand, primarily comprising long-term receivables of RMB 505,086 thousand and other items of RMB 319,237 thousand Composition of Other Non-Current Assets | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Long-Term Receivables | 505,086 | 521,668 | | Others | 319,237 | 318,344 | | Total | 824,323 | 840,012 | Trade and Bills Receivables, Net As of June 30, 2025, trade and bills receivables, net, amounted to RMB 29,588,202 thousand. Of this, trade receivables were RMB 31,479,179 thousand, and bills receivables were RMB 869,866 thousand. The aging analysis shows that trade and bills receivables within one year accounted for the largest proportion Composition of Trade and Bills Receivables, Net | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bills Receivables | 869,866 | 1,410,736 | | Trade Receivables | 31,479,179 | 26,509,784 | | Less: Provision for Credit Losses | (2,760,843) | (2,624,315) | | Net Amount | 29,588,202 | 25,296,205 | Aging Analysis of Trade and Bills Receivables (Net of credit loss provision) | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current | 2,301,124 | 2,089,253 | | Within 1 Year | 23,185,072 | 19,334,238 | | Over 1 Year but Less Than 2 Years | 2,995,918 | 2,900,914 | | Over 2 Years but Less Than 3 Years | 843,399 | 718,462 | | Over 3 Years but Less Than 4 Years | 163,930 | 161,188 | | Over 4 Years but Less Than 5 Years | 49,564 | 43,676 | | Over 5 Years | 49,195 | 48,474 | | Total | 29,588,202 | 25,296,205 | Contract Assets, Net As of June 30, 2025, contract assets, net, amounted to RMB 42,559,871 thousand, primarily from telecommunications infrastructure services. Contract assets represent unbilled amounts receivable by the company for construction, design, and other services provided, where the right to receive payment is conditional on future performance reaching specific milestones Composition of Contract Assets, Net | Service Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Telecommunications Infrastructure Services | 36,472,255 | 32,552,493 | | Business Process Outsourcing Services | 1,610,953 | 1,469,655 | | Applications, Content and Other Services | 5,015,331 | 4,271,528 | | Less: Provision for Credit Losses | (538,668) | (525,867) | | Net Amount | 42,559,871 | 37,767,809 | - Contract assets represent unbilled amounts receivable by the Group for construction, design, and other services provided, where the right to receive payment is conditional on the Group's future performance not yet reaching specific milestones[79] Cash and Cash Equivalents As of June 30, 2025, total cash and cash equivalents were RMB 11,580,258 thousand, comprising bank balances and cash of RMB 7,534,055 thousand and deposits with China Telecom Group Finance Co., Ltd. of RMB 4,046,203 thousand Composition of Cash and Cash Equivalents | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Bank Balances and Cash | 7,534,055 | 15,634,788 | | Deposits with China Telecom Group Finance Co., Ltd. | 4,046,203 | 4,003,248 | | Total | 11,580,258 | 19,638,036 | Interest-Bearing Loans As of June 30, 2025, total short-term interest-bearing loans were RMB 763,847 thousand, primarily unsecured bank loans. RMB loans had annual interest rates ranging from 2.50%-3.10%, and other bank loans had annual interest rates ranging from 4.44%-6.96%. All loans are repayable within one year Composition of Short-Term Interest-Bearing Loans | Loan Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | RMB Bank Loans (Unsecured) | 90,800 | 82,050 | | USD Bank Loans (Unsecured) | – | 178,991 | | Other Bank Loans (Unsecured) | 666,588 | 437,046 | | Interest Payable | 6,459 | 8,162 | | Total | 763,847 | 706,249 | Annual Interest Rates for Short-Term Loans | Loan Type | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | RMB Bank Loans (Unsecured) | 2.50%-3.10% | 3.40%-3.70% | | Other Bank Loans (Unsecured) | 4.44%-6.96% | 6.91%-7.12% | - All short-term loans are repayable within one year[82] Trade and Bills Payables As of June 30, 2025, total trade and bills payables were RMB 67,577,549 thousand. Of this, trade payables were RMB 62,688,302 thousand, and bills payables were RMB 4,889,247 thousand. The aging analysis shows that trade and bills payables within one year accounted for the largest proportion Composition of Trade and Bills Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade Payables | 62,688,302 | 59,837,140 | | Bills Payables | 4,889,247 | 6,057,749 | | Total | 67,577,549 | 65,894,889 | Aging Analysis of Trade and Bills Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 1 Year | 64,920,272 | 63,309,727 | | Over 1 Year but Less Than 2 Years | 1,449,837 | 1,319,642 | | Over 2 Years but Less Than 3 Years | 439,340 | 492,037 | | Over 3 Years | 768,100 | 773,483 | | Total | 67,577,549 | 65,894,889 | Contract Liabilities As of June 30, 2025, total contract liabilities were RMB 7,147,578 thousand, primarily from telecommunications infrastructure services and other services. Contract liabilities represent customer prepayments received by the company before fulfilling performance obligations Composition of Contract Liabilities | Service Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Telecommunications Infrastructure Services | 4,951,610 | 6,700,059 | | Other Services | 2,195,968 | 2,489,991 | | Total | 7,147,578 | 9,190,050 | - Contract liabilities represent customer prepayments received by the Group before fulfilling performance obligations, until the relevant contractual performance obligations are completed[84] Accruals and Other Payables As of June 30, 2025, total accruals and other payables were RMB 12,279,640 thousand. This primarily included deposits and guarantees, salaries and welfare payable, output VAT to be transferred, and amounts payable to China Telecom Group and other related parties Composition of Accruals and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Deposits and Guarantees | 2,196,229 | 2,559,838 | | Salaries and Welfare Payable | 1,992,991 | 1,648,393 | | Output VAT to be Transferred | 1,380,924 | 1,335,552 | | Amounts Payable to China Telecom Group and Other Related Parties | 1,315,784 | 563,047 | | Dividends Payable | 781,206 | 4,761 | | Other Taxes Payable Apart from Income Tax | 688,871 | 897,915 | | Lease Prepayments | 30,114 | 35,740 | | Payables Related to Construction and Acquisition of Property, Plant and Equipment | 3,498 | 2,756 | | Others | 3,890,023 | 4,372,955 | | Total | 12,279,640 | 11,420,957 | Other Non-Current Liabilities Other non-current liabilities primarily refer to deferred income from government grants and termination benefits - Other non-current liabilities primarily refer to deferred income from government grants and termination benefits[86] Share Capital As of June 30, 2025, the company's total registered, issued, and paid-up share capital was RMB 6,926,018 thousand, comprising 4,534,598,160 domestic shares and 2,391,420,240 H shares, each with a par value of RMB 1.00 Composition of Share Capital | Share Type | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Domestic Shares (4,534,598,160 shares) | 4,534,598 | 4,534,598 | | H Shares (2,391,420,240 shares) | 2,391,420 | 2,391,420 | | Total | 6,926,018 | 6,926,018 | Capital Commitments and Contingent Liabilities As of June 30, 2025, the company's contracted but unexecuted capital commitments for the purchase and construction of property, plant, and equipment and other non-current assets amounted to RMB 56,863 thousand. The company had no significant contingent liabilities or provided significant financial guarantees - As of June 30, 2025, the Group's contracted but unexecuted capital commitments for the purchase and construction of property, plant, and equipment and other non-current assets amounted to RMB 56,863 thousand[88] - As of June 30, 2025, the Group had no significant contingent liabilities or provided significant financial guarantees[89] Fair Value Measurement of Financial Instruments The company uses a three-level classification for fair value measurement of financial instruments. As of June 30, 2025, equity instruments measured at fair value through other comprehensive income were RMB 5,027,214 thousand, and equity instruments measured at fair value through profit or loss were RMB 416,345 thousand. The fair value of Level 3 financial instruments is determined based on discounted cash flows Fair Value Measurement of Financial Assets (June 30, 2025) | Item | Level 1 (RMB thousand) | Level 2 (RMB thousand) | Level 3 (RMB thousand) | Total (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Equity instruments measured at fair value through other comprehensive income | 5,026,161 | – | 1,053 | 5,027,214 | | Equity instruments measured at fair value through profit or loss | – | – | 416,345 | 416,345 | - Level 3 investee entities are non-public interest entities, and their fair values are determined based on discounted cash flows[91] Reconciliation of Level 3 Fair Value Measurements (For the six months ended June 30) | Item | Equity instruments measured at fair value through other comprehensive income (RMB thousand) | Equity instruments measured at fair value through profit or loss (RMB thousand) | | :--- | :--- | :--- | | As of January 1, 2025 | 1,053 | 385,070 | | Purchases | – | 16,162 | | Gains – in profit or loss | – | 15,113 | | As of June 30, 2025 | 1,053 | 416,345 | Related Party Transactions This note details significant related party transactions between the company and China Telecom Group, the Group's associates/joint ventures, China Telecom Group's associates/joint ventures, and other state-owned enterprises, including various service revenues, expenses, and related receivable and payable balances Transactions with China Telecom Group The company conducts several major transactions with China Telecom Group in its normal operations, including telecommunications infrastructure service revenue of RMB 8,873,056 thousand, IT application service revenue of RMB 4,027,013 thousand, and last-mile telecommunications service revenue of RMB 9,483,198 thousand. As of June 30, 2025, total amounts receivable from China Telecom Group were RMB 37,355,614 thousand, and total amounts payable to China Telecom Group were RMB 5,287,312 thousand Major Transactions with China Telecom Group (For the six months ended June 30) | Transaction Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Telecommunications Infrastructure Services Revenue | 8,873,056 | 10,859,686 | | IT Application Services Revenue | 4,027,013 | 3,318,436 | | Last-Mile Telecommunications Services Revenue | 9,483,198 | 9,193,971 | | Logistics Services Revenue | 2,055,761 | 2,074,889 | | Material Procurement Services Revenue | 1,309,231 | 1,553,999 | | Property Leasing Services Revenue | 77,332 | 80,548 | | Management Fee Income | 166,948 | 165,747 | | Property Leasing Services Expenses | 51,628 | 46,579 | | IT Application Services Expenses | 421,654 | 162,913 | | Logistics Services Expenses | 620,120 | 703,312 | | Material Procurement Services Expenses | 1,897,974 | 1,704,146 | | Interest Expenses | 12,612 | 11,663 | | Interest Income from Deposits with China Telecom Finance Co., Ltd. | 57,741 | 67,583 | Receivables/Payables with China Telecom Group (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Amounts Receivable from China Telecom Group | 37,355,614 | 37,482,178 | | Total Amounts Payable to China Telecom Group | 5,287,312 | 3,139,364 | Transactions with Associates, Joint Ventures and Other Related Parties The company engaged in multiple transactions with the Group's and China Telecom Group's associates, joint ventures, and other related parties. In H1 2025, telecommunications infrastructure service revenue was RMB 2,215,672 thousand, and IT application service revenue was RMB 236,908 thousand. As of June 30, 2025, total receivables from these related parties were RMB 3,407,696 thousand, and total payables were RMB 2,923,753 thousand Transactions with Associates, Joint Ventures and Other Related Parties (For the six months ended June 30) | Transaction Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Telecommunications Infrastructure Services Revenue | 2,215,672 | 2,216,278 | | IT Application Services Revenue | 236,908 | 135,145 | | Last-Mile Telecommunications Services Revenue | 999,400 | 990,514 | | Logistics Services Revenue | 81,414 | 59,370 | | Material Procurement Services Revenue | 122,117 | 108,762 | | Property Leasing Services Revenue | 3,075 | 1,982 | | Property Leasing Services Expenses | 176 | 949 | | IT Application Services Expenses | 663,557 | 1,073,331 | | Logistics Services Expenses | 971,073 | 992,065 | | Material Procurement Services Expenses | 425,871 | 193,477 | | Interest Expenses | 5 | 5 | Receivables/Payables with Associates, Joint Ventures and Other Related Parties (As of June 30) | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade and Bills Receivables, Net | 828,943 | 644,618 | | Contract Assets, Net | 1,005,070 | 664,640 | | Prepayments and Other Current Assets | 1,573,683 | 1,286,523 | | Total Receivables | 3,407,696 | 2,595,781 | | Trade and Bills Payables | 2,638,540 | 3,091,262 | | Contract Liabilities | 160,014 | 219,777 | | Lease Liabilities | 160 | 210 | | Lease Liabilities Due Within One Year | 90 | 79 | | Accruals and Other Payables | 124,949 | 111,692 | | Total Payables | 2,923,753 | 3,423,020 | Transactions with Other State-Owned Enterprises in China As a government-related enterprise, the company conducts transactions with other state-owned enterprises in China in its ordinary course of business, on terms similar to those with non-government-related enterprises, including providing and receiving services, selling and purchasing goods, leasing assets, deposits and borrowings, and utilizing public utilities - The Group conducts transactions with other state-owned enterprises in China in its ordinary course of business, on terms similar to those with non-government-related enterprises[105] - Transactions include providing and receiving services, selling and purchasing goods, leasing assets, deposits and borrowings, and utilizing public utilities[107] Transactions with Key Management Personnel In H1 2025, total remuneration received by key management personnel was RMB 12,658 thousand, including salaries and other emoluments, retirement benefits, and discretionary bonuses Key Management Personnel Remuneration (For the six months ended June 30) | Remuneration Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Salaries and Other Emoluments | 3,321 | 3,806 | | Share Appreciation Rights | – | 3,434 | | Retirement Benefits | 1,598 | 1,590 | | Discretionary Bonuses | 7,739 | 5,678 | | Total | 12,658 | 14,508 | Other Information This section provides other important information regarding changes in the company's Board and Supervisory Committee personnel, Audit Committee work, compliance with the Corporate Governance Code, compliance with the Model Code for Securities Transactions by Directors, compliance with Appendix D2 of the Listing Rules, share interests of directors/supervisors/chief executive, substantial interests and short positions in company shares, and purchase/sale/redemption of listed securities, along with a cautionary note on forward-looking statements Changes in Directors and Supervisors and Their Biographies The term of the company's Sixth Board of Directors expired, and all directors except Mr. Xiao Weiqiang were re-elected. Mr. Cheng Jianjun and Mr. Chen Li were newly appointed as non-executive directors, and Ms. Zhao Minhui was newly appointed as an independent non-executive director. Additionally, Mr. Tang Yongbo's position was adjusted - Mr. Xiao Weiqiang retired as an independent non-executive director upon expiry of his term, and the remaining directors were re-elected to continue serving as directors of the Seventh Board of Directors[108] - Mr. Cheng Jianjun and Mr. Chen Li were newly appointed as non-executive directors, and Ms. Zhao Minhui was newly appointed as an independent non-executive director[108] - Non-executive Director Mr. Tang Yongbo, due to work adjustments, no longer serves as Deputy General Manager of China Unicom Group Co., Ltd. and other positions, and resigned as a non-executive director of China Tower Corporation Limited[109] Audit Committee The Audit Committee has reviewed the accounting principles and practices adopted by the company with management and discussed matters related to risk management, internal control, and financial reporting, including the review of this report - The Audit Committee has reviewed the accounting principles and practices adopted by the Group with management personnel and discussed matters related to the Group's risk management, internal control, and financial reporting, including the review of this report[110] Compliance with Corporate Governance Code The company confirms that it has complied with all code provisions set out in the Corporate Governance Code in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited for the six months ended June 30, 2025 - The company has complied with all code provisions set out in the Corporate Governance Code in Appendix C1 of the Listing Rules for the six months ended June 30, 2025[111] Compliance with Model Code for Securities Transactions by Directors The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and following specific enquiries, all directors and supervisors confirmed compliance with the Model Code for securities transactions of the company for the six months ended June 30, 2025 - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, to regulate securities transactions by its directors and supervisors[112] - All directors and supervisors confirmed compliance with the Model Code for securities transactions of the company for the six months ended June 30, 2025[112] Compliance with Appendix D2 of Listing Rules The company confirms that, except as disclosed in this interim report, there have been no material changes to the existing company information regarding matters listed in paragraph 32 of Appendix D2 of the Listing Rules compared to the information disclosed in the company's 2024 annual report - The company confirms that there have been no material changes to the existing company information regarding matters listed in paragraph 32 of Appendix D2 of the Listing Rules compared to the information disclosed in the company's 2024 annual report[113] Directors', Supervisors' and Chief Executive's Interests in Shares As of June 30, 2025, none of the company's directors, supervisors, and chief executive had any registrable interests or short positions in the shares, underlying shares of equity derivatives, or debentures of the company or its associated corporations - As of June 30, 2025, none of the company's directors, supervisors, and chief executive had any registrable interests or short positions in the shares, underlying shares of equity derivatives, or debentures of the company or its associated corporations[114] Substantial Interests and Short Positions in Shares of the Company As of June 30, 2025, in accordance with the Securities and Futures Ordinance, China Telecom Group Co., Ltd., China Mobile Communications Group Co., Ltd., and China Unicom Group Co., Ltd. held substantial interests in the company's shares Substantial Interests and Short Positions in Shares of the Company (As of June 30, 2025) | Shareholder Name | Description of Shares | Capacity | Number of Shares | Percentage of Domestic/