CHINA TELECOM(601728)2024-03-26 16:00Financial Performance - The company's operating revenue for 2023 reached approximately CNY 507.84 billion, representing a 6.9% increase compared to CNY 474.97 billion in 2022 [18]. - Net profit attributable to shareholders for 2023 was approximately CNY 30.45 billion, an increase of 10.3% from CNY 27.59 billion in 2022 [18]. - The net cash flow from operating activities for 2023 was approximately CNY 138.62 billion, showing a slight increase of 1.0% from CNY 137.22 billion in 2022 [18]. - The total assets at the end of 2023 amounted to approximately CNY 835.81 billion, a 3.5% increase from CNY 807.70 billion at the end of 2022 [18]. - The net assets attributable to shareholders at the end of 2023 were approximately CNY 442.93 billion, reflecting a 2.5% increase from CNY 432.09 billion in 2022 [18]. - Basic earnings per share for 2023 were CNY 0.33, up 10.3% from CNY 0.30 in 2022 [19]. - The weighted average return on equity for 2023 increased by 0.5 percentage points to 6.9% from 6.4% in 2022 [19]. Dividend Distribution - The proposed cash dividend for 2023 is RMB 0.090 per share, totaling approximately RMB 8.236 billion, which exceeds 70% of the net profit attributable to shareholders for the year [4]. - The total dividend for 2023, including the interim dividend of RMB 0.1432 per share, amounts to RMB 0.2332 per share, totaling approximately RMB 21.339 billion [4]. - The total dividend for 2023 was RMB 0.2332 per share, a 19.0% increase year-on-year, exceeding 70% of the annual profit attributable to shareholders [26]. - From 2024 onwards, the company aims to gradually increase the cash profit distribution to over 75% of the net profit attributable to shareholders within three years [4]. Risk Management - The company has identified various risks, including economic, policy, technological innovation, and international business operation risks, which may impact future performance [7]. - The company will not update its forward-looking statements, which are subject to known and unknown risks and uncertainties [5]. - The company emphasizes risk management and internal control systems, which include comprehensive risk assessments and a robust financial accounting system [94]. Corporate Governance - The company held a total of 2 shareholder meetings and 8 board meetings in 2023, with all resolutions passed in compliance with legal and regulatory requirements [97]. - The company received an A-level evaluation for its information disclosure work from the Shanghai Stock Exchange for the 2022-2023 period, reflecting its commitment to transparency [94]. - The company actively discloses user data monthly, including fixed-line, mobile, and broadband user numbers, enhancing communication with the capital market [94]. - The company has established an investor relations management department to facilitate communication with shareholders and investors, ensuring timely information dissemination [94]. - The company has implemented a dual-layer governance structure with a board of directors and a supervisory board, ensuring effective oversight of management activities [94]. Technological Innovation - The company is actively implementing a cloud transformation strategy, enhancing digital infrastructure, and focusing on high-quality development driven by technological innovation [27]. - The company plans to leverage new technologies such as artificial intelligence, cloud computing, and quantum information to meet the digital transformation needs of various industries [42]. - The company has achieved a 279.3% increase in intelligent computing capacity, reaching 11.0 EFLOPS, with a total of 8.1 EFLOPS added during the year [37]. - The company has launched a quantum communication cloud platform, achieving two-way voice and SMS communication services via consumer mobile phones connected to satellites [53]. Market Expansion - The company plans to continue expanding its market presence and investing in new technologies to drive future growth [18]. - The company aims to enhance its core competitiveness and accelerate the construction of a world-class enterprise, focusing on high-quality development and increasing shareholder value [43]. - The company is focusing on technological innovation and digital transformation, with significant investments in new infrastructure and AI applications [44]. - The company is expanding its global cloud network by adding 15 new global CDN nodes throughout the year [39]. Environmental Initiatives - The company has reduced greenhouse gas emissions by over 13 million tons, with a year-on-year decrease of 19.6% in emissions per unit of telecom business volume [40]. - The scale of green electricity usage exceeded 1.1 billion kWh, representing a nearly 300% year-on-year increase [40]. - The company has launched a series of self-developed green low-carbon products, including smart power cabinets and energy-saving solutions, contributing to ecological protection and pollution prevention [40]. Employee and Talent Development - The company has a workforce of 278,539 employees, with 113,461 in sales and marketing, and 32,847 in research and product development [123]. - The company conducted 12 training sessions on its "cloud transformation" strategy, with over 1.46 million participants [125]. - The company has established a long-term incentive mechanism to motivate core talents and frontline employees [124]. Financial Management - The company reported a net cash outflow from financing activities of RMB 36.12 billion, a decrease of 15.8% from RMB 42.90 billion last year [72]. - The company completed capital expenditures of RMB 98.8 billion in 2023, including RMB 34.8 billion for mobile network investment and RMB 35.5 billion for industrial digitalization [79]. - The company has recognized investment income from China Tower of RMB 2.106 billion in 2023 [78]. Strategic Acquisitions - A strategic acquisition of a smaller telecom firm is in progress, which is anticipated to enhance service offerings and customer base [100]. - The company is considering strategic acquisitions to enhance its market position, with a target of acquiring at least two companies in the next year [107].