2022-08-16 16:00Financial Performance - The company reported a net profit attributable to shareholders of RMB 18.29 billion for the first half of 2022, with a proposed dividend distribution of RMB 0.120 per share, amounting to 60% of the net profit [3]. - The company's operating revenue for the first half of 2022 was approximately ¥240.22 billion, representing a 10.4% increase compared to the same period last year [22]. - The net profit attributable to shareholders for the same period was approximately ¥18.29 billion, reflecting a 3.1% increase year-over-year [22]. - The net profit after deducting non-recurring gains and losses was approximately ¥18.38 billion, which is a 12.1% increase compared to the previous year [22]. - The basic earnings per share for the first half of 2022 was ¥0.20, down 9.1% from ¥0.22 in the same period last year [23]. - The weighted average return on equity decreased by 0.6 percentage points to 4.2% compared to the previous year [23]. - The company's total revenue for the first half of 2022 was RMB 240.2 billion, representing a year-on-year growth of 10.4%, with service revenue reaching RMB 221.4 billion, up 8.8% [42]. - The company achieved a net profit attributable to shareholders of RMB 18.3 billion, a year-on-year increase of 3.1%, and a net profit excluding non-recurring items of RMB 18.4 billion, up 12.1% [42]. Dividend and Share Capital - The total share capital as of June 30, 2022, was 91,507,138,699 shares, which will be used as the basis for the dividend distribution calculation [3]. - The company plans to distribute an interim dividend of RMB 0.12 per share, which is 60% of the profit attributable to shareholders for the first half of 2022 [42]. - The company plans to distribute a dividend of RMB 0.120 per share (including tax) based on a net profit of RMB 18.29 billion for the first half of 2022, representing 60% of the net profit attributable to shareholders [88]. - The total number of shares for dividend distribution is calculated based on the total share capital of 91,507,138,699 shares as of June 30, 2022 [88]. Operational Highlights - The company’s fixed-line and smart home service revenue reached RMB 59.9 billion in the first half of the year, a year-on-year increase of 4.4%, with broadband access revenue at RMB 40.8 billion, up 7.1% [47]. - The number of mobile users increased by 11.79 million to reach 384 million, with a mobile ARPU of RMB 46.0, continuing to show growth [34]. - The company maintained a leading position in 5G services, with 5G package users reaching 232 million, representing a penetration rate of 60.3% [46]. - The company has established the largest 5G SA shared network and the largest gigabit fiber network in the world, enhancing its cloud computing capabilities [37]. - The company is focused on enhancing its digital information infrastructure and has implemented a "cloud transformation" strategy to drive high-quality development [43]. Risks and Compliance - The company has outlined various risks including economic and policy environment adaptation risks, operational risks, and international business risks in the report [7]. - The company emphasizes that forward-looking statements regarding development strategies and future business plans are subject to known and unknown risks and uncertainties [4]. - The company has not experienced any non-operating fund occupation by controlling shareholders or related parties during the reporting period [5]. - There are no violations of decision-making procedures regarding external guarantees [6]. - The board of directors and senior management have confirmed the authenticity, accuracy, and completeness of the semi-annual report, which has not been audited [6]. Environmental and Social Responsibility - The company is committed to complying with environmental protection laws and regulations, ensuring that its operations meet national environmental standards [93]. - The company has not faced any administrative penalties related to environmental issues during the reporting period [93]. - The company achieved a comprehensive energy consumption reduction of over 15% year-on-year through initiatives such as 4/5G base station sharing and AI energy-saving measures, resulting in a reduction of carbon emissions by over 3 million tons [97]. - The company actively promotes water conservation and has implemented measures to recycle production water, aiming to reduce reliance on tap water [94]. - The company has established a carbon peak and carbon neutrality leadership office to integrate green development into all operational processes [96]. Financial Position and Cash Flow - The total assets at the end of the reporting period were approximately ¥783.86 billion, an increase of 2.8% from the end of the previous year [22]. - The company's cash and cash equivalents increased to approximately ¥80.56 billion, up from ¥75.21 billion at the end of the previous year [153]. - The net cash flow from operating activities decreased by 4.6% to approximately ¥65.25 billion compared to the previous year [22]. - The net cash outflow from investment activities increased by 66.0% to RMB 33.8 billion, mainly due to reduced cash recovery from term deposits [65]. - The total liabilities of China Telecom amounted to RMB 349.70 billion, an increase from RMB 331.07 billion as of December 31, 2021, representing a growth of approximately 5.0% [155]. Technological Innovation - The company has made significant advancements in technology innovation, with over 50 core technologies developed, including AI and quantum communication [39]. - The company aims to enhance its digital infrastructure by integrating cloud, network, data, intelligence, and security elements, promoting a comprehensive digital information infrastructure [53]. - R&D expenses surged by 84.8% to RMB 32.5 billion, driven by a focus on technological innovation and core technology development [64]. - The company achieved a 70% utilization rate of AI customer service, significantly reducing reliance on human customer service [59]. Shareholder and Governance - The company has undergone changes in its board of directors, including the election of Tang Ke as an executive director and Han Fang as the chairman of the supervisory board [85]. - The company held two shareholder meetings during the reporting period, with all proposed resolutions approved [84]. - The company has authorized the board to determine the mid-term profit distribution plan for 2022 [88]. - The controlling shareholder, China Telecom Group, increased its stake in the company by acquiring 593,198,098 A shares, representing 0.65% of the total shares, with a total investment of approximately RMB 2.52 billion [123].