2023-08-08 16:00Financial Performance - The net profit attributable to shareholders for the first half of 2023 is RMB 20.15 billion, with a proposed dividend distribution of RMB 13.1 billion, representing 65% of the net profit[6]. - The company's operating revenue for the first half of 2023 reached ¥258.68 billion, an increase of 7.7% compared to ¥240.22 billion in the same period last year[22]. - Net profit attributable to shareholders was ¥20.15 billion, reflecting a growth of 10.2% from ¥18.29 billion year-on-year[22]. - The net profit after deducting non-recurring gains and losses was ¥20.45 billion, up 11.3% from ¥18.38 billion in the previous year[22]. - The company's total comprehensive income for the first half of 2023 was RMB 20.44 billion, with a significant contribution from undistributed profits of RMB 19.03 billion[117]. - The basic earnings per share for the first half of 2023 were ¥0.22, a 10.0% increase from ¥0.20 in the previous year[23]. - The company reported a net profit of RMB 17.45 billion attributable to shareholders in the first half of 2023, indicating a strong performance[117]. Subscriber and Market Growth - The total number of subscribers reached 391 million, with a year-on-year increase of 5.2%[16]. - The average revenue per user (ARPU) increased by 3.5% year-on-year, reaching RMB 56.8[15]. - The penetration rate of 5G package users reached 73.4%, and the mobile ARPU was RMB 46.2, a slight increase of 0.4%[28]. - The company achieved a mobile communication service revenue of RMB 101.6 billion, growing by 2.7%, with mobile value-added and application revenue reaching RMB 15.4 billion, a 19.4% increase[28]. - The revenue from the digitalization of industries grew significantly, reaching RMB 68.8 billion, marking a 16.7% increase[28]. Investment and R&D - The company is investing in AIoT technologies, with a budget allocation of RMB 2 billion for research and development in this area[15]. - R&D expenses increased by 27.2% year-on-year, with the number of R&D personnel growing by 21.4%[39]. - The company has made significant advancements in AI technology, developing over 5,500 self-developed scenario algorithms and launching a data element service platform[32]. - Research and development expenses reached RMB 4.14 billion, up 27.2% from RMB 3.25 billion, driven by a focus on technological innovation in key areas such as cloud computing and AI[113]. Network and Infrastructure Development - The company plans to continue expanding its 5G network, aiming to cover 300 million users by the end of 2023[16]. - The company built over 150,000 new shared 5G base stations, bringing the total to over 1.15 million, while 4G base stations exceeded 2 million, enhancing network coverage and capacity[41]. - The company has accelerated the construction of digital information infrastructure, achieving a 62% increase in intelligent computing capacity, totaling 4.7 EFLOPS[30]. - The company has launched an integrated computing service package, providing a full range of standardized and convenient computing service products[28]. Environmental and Social Responsibility - The company reduced greenhouse gas emissions by over 5 million tons in the first half of 2023, with a year-on-year decrease in emission intensity of over 10%[43]. - The company has implemented a "1248" dual-carbon action plan, expanding its green initiatives to include eight major actions aimed at promoting low-carbon operations[76]. - The company directly purchased and assisted in the sale of agricultural products worth RMB 88 million, contributing to poverty alleviation efforts[78]. - A total of 9,052 individuals received various types of talent training, aiding employment in impoverished areas[78]. - The company ranked among the top ten central enterprises in the assessment of poverty alleviation effectiveness for five consecutive years[78]. Corporate Governance and Shareholder Engagement - The company held two shareholder meetings during the reporting period, with all resolutions passed, ensuring equal rights for all shareholders[67]. - The company has undergone changes in its board of directors, with new appointments including Li Jun as an executive director and Lü Wei as an independent director[68]. - The company is committed to enhancing shareholder returns, aiming to increase the cash distribution to over 70% of the profit attributable to shareholders for the full year[35]. - The company has been recognized for its corporate governance, winning multiple awards including "Best ESG Strategy" and "Best Corporate Social Responsibility" in Asia[43]. Financial Position and Liabilities - The total assets of the company as of June 30, 2023, are reported at RMB 1.2 trillion, an increase of 6% year-on-year[16]. - The total liabilities of China Telecom amounted to RMB 390.46 billion, an increase from RMB 371.27 billion as of December 31, 2022, representing a growth of 30.99 billion or 8.34%[111]. - The total equity attributable to shareholders reached RMB 445.57 billion, up from RMB 432.09 billion at the end of 2022, indicating an increase of 13.48 billion or 3.12%[111]. - The company's retained earnings increased to RMB 199.60 billion from RMB 186.40 billion, reflecting a growth of 13.20 billion or 7.08%[111]. Risk Management - The company has identified risks related to economic and policy environments, which may impact future performance[9]. - The company faces risks from economic and policy environment changes, which may impact business development and revenue growth[61]. - The company aims to strengthen compliance management and risk assessment for overseas operations to mitigate international business risks[64].