中国电信(00728) - 2023 - 中期业绩

Financial Performance - The company's operating revenue for the first half of 2023 was RMB 260.7 billion, a year-on-year increase of 7.6%, with service revenue reaching RMB 236.0 billion, up 6.6%[1] - EBITDA amounted to RMB 73.3 billion, reflecting a 5.0% year-on-year growth, while net profit was RMB 20.2 billion, an increase of 10.2%, resulting in basic earnings per share of RMB 0.22[3] - The company reported operating revenue of RMB 260,664 million for the six months ended June 30, 2023, an increase of 7.6% compared to RMB 242,319 million in the same period of 2022[22] - Operating profit for the same period was RMB 25,508 million, reflecting a growth of 10.4% from RMB 23,113 million year-on-year[23] - The company achieved a net profit of RMB 20,174 million, which is a 9.9% increase compared to RMB 18,353 million in the previous year[23] - The company's revenue for the six months ended June 30, 2023, was RMB 20,442 million, an increase from RMB 18,550 million in the same period of 2022, representing a growth of 10.2%[24] - Shareholders' profit attributable to the company was RMB 20,153 million for the six months ended June 30, 2023, compared to RMB 18,291 million in 2022, reflecting an increase of 10.2%[25] - The basic and diluted earnings per share for the period were both RMB 0.22, up from RMB 0.20 in the previous year[25] - The company reported a total comprehensive income of RMB 20,442 million for the period, compared to RMB 18,550 million in the previous year, marking an increase of 10.2%[25] Revenue Breakdown - Mobile communication service revenue grew to RMB 101.6 billion, a 2.7% increase year-on-year, with mobile value-added and application revenue reaching RMB 15.4 billion, up 19.4%, and 5G package user penetration rate at 73.4%[7] - Fixed-line and smart home service revenue reached RMB 62.0 billion, a 3.6% year-on-year increase, with smart home business revenue at RMB 9.3 billion, up 15.7%, and gigabit broadband penetration rate at 20.3%[7] - The company's industrial digitalization business maintained rapid growth, with revenue of RMB 68.8 billion, a year-on-year increase of 16.7%, and Tianyi Cloud revenue reaching RMB 45.9 billion, up 63.4%[7] - Service revenue reached RMB 235,977 million, up from RMB 221,384 million year-on-year, indicating a growth of about 6.6%[31] - Mobile communication service revenue was RMB 101,607 million, compared to RMB 98,956 million in the previous year, reflecting an increase of approximately 1.7%[31] Dividend and Shareholder Returns - The board decided to continue paying an interim dividend for 2023, distributing 65% of the profit attributable to shareholders, equating to RMB 0.1432 per share[3] - The company aims to increase the cash distribution to shareholders to over 70% of the profit attributable to shareholders for the 2023 fiscal year[4] - The interim dividend for the six months ended June 30, 2023, is set at RMB 0.1432 per share, totaling approximately RMB 13.104 billion[38] - The company plans to distribute an interim dividend of RMB 131.04 billion, which is 65% of the profit attributable to shareholders of RMB 201.53 billion for the first half of 2023[48] - The dividend payment is expected to be made on or before September 28, 2023, to shareholders listed on the H-share register as of August 30, 2023[48] Strategic Focus and Growth Initiatives - The company is focusing on digital transformation and cloud integration strategies, enhancing its digital infrastructure and service capabilities[5] - The company is actively expanding its strategic emerging industries, integrating cloud, AI, and security to enhance digital product and service capabilities[7] - The company has initiated the establishment of a Quantum Information Technology Group to promote the application of cutting-edge quantum technologies[15] - The company aims to enhance its core competitiveness and accelerate the construction of a world-class enterprise through comprehensive reforms and innovation[20] - The company plans to further optimize its strategic layout in emerging industries, focusing on technology innovation and infrastructure upgrades[20] Research and Development - R&D expenses increased by 27.2% year-on-year, with the number of R&D personnel growing by 21.4%[8] - The AI algorithm platform has developed 5,500 self-researched scene algorithms, enhancing AI capabilities across various industries[10] Network and Infrastructure - The company has established over 1.15 million 5G base stations and over 2 million 4G base stations, enhancing network coverage and capacity[15] - The company constructed over 534,000 racks in its IDC, with more than 70% of new racks deployed in hotspot areas[14] - The company’s intelligent computing capacity increased by 62% to 4.7 EFLOPS, while general computing capacity grew by 19% to 3.7 EFLOPS[13] - The number of IoT connections exceeded 470 million, showcasing significant growth in the IoT sector[12] Environmental and Corporate Governance - The company has reduced greenhouse gas emissions by over 5 million tons in the first half of 2023, with a year-on-year reduction in emission intensity of over 10%[18] - The company emphasizes the importance of corporate governance and has maintained compliance with the corporate governance code during the reporting period[46] - The company has been recognized for its corporate governance, winning multiple awards including "Best Corporate Social Responsibility" for four consecutive years[19] Financial Position and Liquidity - Total assets as of June 30, 2023, amounted to RMB 840,386 million, compared to RMB 807,698 million as of December 31, 2022, indicating an increase of 4.0%[26] - The company's cash and cash equivalents were RMB 83,698 million as of June 30, 2023, compared to RMB 72,465 million at the end of 2022, showing a growth of 15.5%[26] - Total liabilities increased to RMB 390,459 million as of June 30, 2023, from RMB 371,271 million at the end of 2022, representing a rise of 5.1%[27] - The net cash flow from operating activities remains positive, contributing to the company's liquidity position[28] - The company has unused credit facilities amounting to RMB 237 billion as of June 30, 2023, which supports its financial stability[28] Accounts Receivable and Payable - The net accounts receivable as of June 30, 2023, amounts to RMB 46.732 billion, an increase from RMB 24.312 billion as of December 31, 2022[39] - The aging analysis of accounts receivable shows that RMB 9.34 billion is due within one month, compared to RMB 6.405 billion in the previous year[40] - The total accounts payable as of June 30, 2023, is RMB 150.431 billion, up from RMB 127.260 billion as of December 31, 2022[42] - The provision for credit losses on accounts receivable decreased to RMB 8.685 billion as of June 30, 2023, from RMB 30.429 billion as of December 31, 2022[39] Forward-Looking Statements - The company emphasizes that forward-looking statements regarding development strategies and future operating plans are subject to known and unknown risks and uncertainties, which may lead to significant differences from actual performance[55] - The board of directors includes key executives such as the Chairman and CEO, and the President and COO, indicating a strong leadership team[55]