2022-04-14 08:30Financial Performance - China Telecom had approximately 372 million mobile users, 170 million broadband users, and 107 million fixed-line telephone users by the end of 2021[4]. - The company reported a net profit of RMB 25,948,191,708 for 2021, with a proposed dividend distribution of 60%, totaling RMB 15,568,915,025[6]. - China Telecom reported a total revenue of RMB 390 billion for the year 2021, representing a year-on-year increase of 5.1%[18]. - The company reported a net profit of RMB 30 billion for 2021, an increase of 4.5% year-on-year[18]. - In 2021, the company's operating revenue reached RMB 439.6 billion, representing a year-on-year growth of 11.7%[30]. - Service revenue amounted to RMB 402.8 billion, with a year-on-year increase of 7.8%, and an adjusted growth rate of 8.1% after excluding the impact of divested subsidiaries[30]. - EBITDA was RMB 123.9 billion, reflecting a year-on-year growth of 4.2%[30]. - The company achieved a net profit attributable to shareholders of approximately RMB 14.16 billion from the sale of Tianyi E-commerce Co., Ltd. and Tianyi Financial Leasing Co., Ltd.[31]. - The company’s net profit reached RMB 25.948 billion, a year-on-year increase of 24.5%, and 17.7% after adjusting for one-time tax benefits from divested subsidiaries[30]. - The company’s operating capital shortage was RMB 137.712 billion at the end of 2021, reduced by RMB 49.414 billion from the previous year, indicating improved liquidity[99]. Dividend Distribution - The company plans to distribute a dividend of RMB 0.170 per share (before tax) based on a total share capital of 91,507,138,699 shares as of the end of 2021[6]. - The proposed final dividend for the year ending December 31, 2021, is RMB 0.170 per share, totaling RMB 15,568,915,025[113]. - The dividend payment is expected to be made on or before July 18, 2022, following approval at the annual general meeting[113]. - For H-share individual shareholders, the dividend will be paid in Hong Kong dollars, with the exchange rate based on the average middle rate published by the People's Bank of China one week prior to the dividend declaration[113]. - The company will withhold a 10% corporate income tax for non-resident H-share shareholders when distributing the proposed final dividend[113]. Capital Expenditure and Investment - The company plans to invest RMB 100 billion in network infrastructure and technology upgrades over the next three years to enhance service capabilities[18]. - The company's capital expenditure for 2021 was RMB 80 billion, accounting for 20.5% of total revenue[18]. - Capital expenditures for 2021 were RMB 86.723 billion, a 2.3% increase from 2020, focusing on 5G network construction and cloud services[95]. - The total amount of raised funds allocated to projects includes RMB 9.957 billion for 5G industrial internet construction, RMB 23.583 billion for cloud-network integration infrastructure, and RMB 13.976 billion for technology innovation R&D[122]. - The company plans to complete the investment of raised funds for all projects by 2023[122]. Market Strategy and Growth - The company aims to enhance its value through multi-faceted financing and seizing new opportunities in the market[9]. - The company is focused on expanding its market presence and enhancing its service offerings through strategic initiatives and potential acquisitions[9]. - The company has set a revenue growth target of 5% for 2022, driven by increased demand for 5G and cloud services[18]. - The company aims to expand its cloud services, targeting a revenue contribution of RMB 50 billion from cloud and digital services by 2023[18]. - The company is exploring strategic partnerships and potential acquisitions to enhance its market position and service offerings[18]. Technology and Innovation - The company is committed to developing new technologies and services, including 5G and AI, to improve user experience and operational efficiency[11]. - The company is focusing on the development of quantum communication technology, with plans to launch commercial services in 2022[18]. - The company launched over 1,200 projects under the 5G customized network initiative, covering all 15 key industries outlined in the "Sail Plan" action plan[38]. - The company is actively expanding into smart community and digital rural areas, leveraging its cloud and network integration capabilities[34][35]. - The company aims to enhance its comprehensive intelligent information service capabilities and promote high-quality development through its "Cloud Transformation and Digital Upgrade" strategy[32]. Corporate Governance and Compliance - The company has established a comprehensive governance structure to ensure compliance and transparency in its operations[149]. - The company maintains independence from its controlling shareholder in business, assets, and finance, ensuring no interference in management activities[147]. - The company emphasizes the importance of network security and will improve its core technology capabilities to safeguard data and personal information[112]. - The company has appointed external auditors for the year ending December 31, 2021, including PwC and Deloitte[151]. - The company has committed to complying with tax regulations and ensuring accurate tax withholding for its shareholders[115]. Social Responsibility and Sustainability - The company is committed to social responsibilities, including network security and green development initiatives[29]. - The company has reduced carbon dioxide emissions by over 6 million tons annually through its carbon peak and carbon neutrality action plan[53]. - The company is actively promoting energy-saving and green transformations of 5G base stations and data centers[61]. - The company is committed to integrating green and low-carbon concepts throughout its production processes, enhancing green operational capabilities[61]. Risks and Challenges - Future performance projections are subject to known and unknown risks, and the company will not update these forward-looking statements[8]. - The company faces "triple pressure" from domestic economic contraction, supply shocks, and weakened expectations, which may impact business development and revenue growth[110]. - The implementation of new laws, such as the Data Security Law and Personal Information Protection Law, will impose new compliance requirements on the industry[63][64]. - The company will enhance its compliance management system and adapt to stricter regulatory environments to mitigate operational risks[110].