2022-03-17 16:00Financial Performance - 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, resulting in a dividend of RMB 0.170 per share[2]. - The company's operating revenue for 2021 was approximately CNY 434.16 billion, an increase of 11.3% compared to 2020[19]. - Net profit attributable to shareholders for 2021 was approximately CNY 25.95 billion, reflecting a growth of 24.4% year-over-year[19]. - The net profit after deducting non-recurring gains and losses was approximately CNY 25.04 billion, a 19.2% increase from the previous year[19]. - The total assets at the end of 2021 amounted to approximately CNY 762.24 billion, a 6.6% increase from 2020[19]. - The net assets attributable to shareholders increased to approximately CNY 428.68 billion, representing a growth of 17.9% year-over-year[19]. - Basic earnings per share for 2021 were CNY 0.31, up 19.2% from CNY 0.26 in 2020[20]. - The weighted average return on equity for 2021 was 6.7%, an increase of 0.9 percentage points compared to 2020[20]. - The company reported a diluted earnings per share of CNY 0.31 for 2021, consistent with the basic earnings per share[20]. - The company achieved a mobile communication service revenue of RMB 184.2 billion in 2021, a 4.9% increase, with mobile users reaching 372 million, maintaining industry-leading growth for four consecutive years[33]. - The fixed-line and smart home service revenue reached RMB 113.5 billion, a year-on-year increase of 4.1%, with smart home revenue growing by 25.1%[33]. - The company's digitalization business revenue was RMB 98.9 billion, a 19.4% increase compared to the previous year, with over 1,200 projects launched in 15 key industries[34]. - The company achieved a net profit attributable to shareholders of RMB 25.9 billion, calculated based on a weighted average of 84.4 billion shares outstanding[3]. - The company reported a total revenue from industrial digitalization of RMB 98.9 billion, with a year-on-year growth of 19.4%[48]. - The company reported a significant increase in revenue, achieving a total of 100 billion RMB, representing a year-over-year growth of 15%[102]. Dividend Policy - The company plans to distribute 60% of its annual profit to shareholders in cash, amounting to RMB 0.170 per share, with a goal to increase this to over 70% in the next three years[29]. - The company plans to gradually increase cash dividends to over 70% of the net profit attributable to shareholders within three years after the A-share listing[124]. - The company plans to distribute a total of RMB 15,568,915,025 in dividends, which is 60% of the net profit attributable to shareholders for the year 2021[124]. Risks and Uncertainties - The company emphasizes that its forward-looking statements regarding future strategies and performance are subject to known and unknown risks and uncertainties, which may lead to significant differences from actual results[3]. - The company has outlined various risks including economic and policy environment risks, operational risks, and international business risks in its annual report[5]. - The company faces risks from economic pressures, regulatory changes, and increased competition in the telecommunications sector, which may impact revenue growth[87]. - The company is actively responding to new laws and regulations, ensuring compliance in its operations[47]. - The company is focused on enhancing its cybersecurity capabilities to address emerging risks and challenges[46]. Technology and Innovation - The company is actively pursuing a "cloud transformation" strategy, focusing on integrating cloud and network services to drive digital transformation across various sectors[28]. - The company has completed the R&D layout for its technology innovation system, achieving breakthroughs in key technologies such as Tianyi Cloud 4.0 and 5G edge networks, with 33 technology achievements fully transformed and over 80 micro-innovation results shared[38]. - The company is leveraging new technologies like 5G, cloud computing, and artificial intelligence to drive digital transformation across various industries[84]. - The company aims to enhance its market expansion and technological development in the upcoming years[1]. - The company is committed to strengthening network security and compliance with new data protection laws to safeguard user information[89]. Corporate Governance - The company has been recognized for its corporate governance, receiving multiple awards including "Best Overall ESG" and "Best Investor Relations Program" in 2021[43]. - The company has established a comprehensive R&D system, achieving significant breakthroughs in key technologies such as Tianyi Cloud 4.0 and 5G edge networks[50]. - The company maintained independence from its controlling shareholder, ensuring no interference in its operational management[94]. - The management team includes experienced professionals with extensive backgrounds in telecommunications and finance, enhancing strategic decision-making capabilities[101]. - The company emphasizes the management of insider information to protect the rights of investors and related parties[92]. Market Expansion and Strategic Initiatives - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by 2025[103]. - The company is focusing on mergers and acquisitions to strengthen its market position and enhance operational efficiency[100]. - The company aims to leverage its existing user base to increase revenue through new service offerings and enhanced customer engagement strategies[100]. - The company is committed to building a world-class enterprise to create greater value for shareholders through strategic reforms and digital transformation[85]. - The company is enhancing its cloud security capabilities, with multiple provincial companies recognized as 5G application security innovation demonstration centers[37]. Environmental and Social Responsibility - The company has committed to social responsibilities, including contributions to network security, rural revitalization, and green development, aiming to create value for shareholders and society[28]. - The company has reduced carbon emissions by over 6 million tons annually through network sharing and is actively building a green supply chain[43]. - The company has actively promoted water conservation and waste material recycling, adhering to relevant environmental protection laws[134]. - The company has established digital rural demonstration towns in 10,000 locations and demonstration villages in 100,000 locations, covering 1,600 districts and counties nationwide[138]. - The company received the highest evaluation in the central unit's targeted poverty alleviation assessment for three consecutive years, earning national honors for its contributions to poverty alleviation[138]. Financial Management - The company has effectively reduced interest-bearing debt, contributing to a healthier financial position and lower interest expenses[192]. - The company maintained a loan repayment rate of 100% in both 2021 and 2020, demonstrating strong financial stability[192]. - The audit opinion confirmed that the financial statements fairly reflect the company's financial position and performance for the year ended December 31, 2021[195]. - Key audit matters included revenue recognition and goodwill impairment assessment, highlighting the complexity and significance of these areas in the financial statements[197]. - The company has completed interest payments on all bonds in a timely and full manner during the reporting period[188].