Core Insights - Recent capital increases by two subsidiaries of China Telecom have attracted market attention, indicating a strategic move towards deeper marketization in cutting-edge technology sectors [1][3] Group 1: Capital Increase Projects - China Telecom's AI company is seeking strategic investors through a public solicitation to accelerate the development of key AI technologies and enhance market mechanisms [2] - The funding goal for the AI company is not fixed, but it aims to raise capital corresponding to a shareholding of no more than 10%, while China Telecom will retain at least 88% ownership post-investment [2] Group 2: Strategic Importance - The capital increases signify China Telecom's long-term strategic investments in artificial intelligence, cloud computing, and quantum technology [3] - The AI company serves as a critical capability within China Telecom's intelligent cloud system, supporting internal business intelligence and offering standardized products and industry solutions externally [3] Group 3: Future Outlook - China Telecom is implementing a comprehensive "cloud transformation and intelligent upgrade" strategy, aiming to leverage technology to empower various industries and enhance societal services [4] - The company is committed to becoming a world-class technology enterprise while fulfilling its mission as a central state-owned enterprise [4]

Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The company reported a revenue of 394.3 billion yuan for the first three quarters of 2025, representing a year-on-year growth of 0.6%. Service revenue reached 366.3 billion yuan, up 0.9%, while net profit attributable to shareholders was 30.8 billion yuan, an increase of 5.0% year-on-year [1][3] - The company is focusing on transforming its strategy towards "cloud, data, and intelligent services," aiming to enhance its service capabilities and drive high-quality development [3] - The company has seen a significant increase in its new business segments, with IDC revenue reaching 27.5 billion yuan, up 9.1%, and intelligent revenue growing by 62.3% [2][3] Business Performance - The basic business is developing steadily, with 5G network users reaching 290 million, a penetration rate of 66.9%. Mobile internet traffic increased by 16.9%, and the average data usage per user reached 22.3GB, up 11.4% [2] - The company is expanding its new business segments, with notable growth in security revenue (up 12.4%), satellite communication revenue (up 23.5%), and quantum revenue (up 134.6%) [2] Cost Management and R&D - The company maintained effective cost control, with operating costs increasing by only 0.1% year-on-year. R&D expenses rose by 4.4% to 9.1 billion yuan, focusing on key technologies such as AI and quantum security [3] Financial Forecast and Investment Advice - The company is expected to achieve net profits of 34.87 billion yuan, 36.71 billion yuan, and 38.63 billion yuan for the years 2025, 2026, and 2027, respectively. The forecast has been slightly adjusted downwards due to uncertainties in new business developments [3] - The company is positioned to fully embrace AI and support the digital transformation of the economy and society, indicating a positive outlook for future growth [3]

Core Insights - China Telecom reported a revenue of 394.3 billion yuan for the first three quarters of 2025, a year-on-year increase of 0.6% [1] - The company is focusing on embracing artificial intelligence and transforming its strategy towards cloud and digital intelligence [1][2] - Net profit attributable to shareholders reached 30.8 billion yuan, reflecting a 5% year-on-year growth [1] Financial Performance - Service revenue for the period was 366.3 billion yuan, up 0.9% year-on-year [1] - Operating costs amounted to 274.8 billion yuan, a slight increase of 0.1% [2] - Research and development expenses rose by 4.4% to 9.1 billion yuan, emphasizing the focus on core technology advancements [2] User Metrics - The number of 5G network users reached 290 million, with a penetration rate of 66.9% [1] - Mobile internet traffic increased by 16.9% year-on-year, with a daily average usage (DOU) of 22.3 GB, up 11.4% [1] New Business Growth - IDC revenue grew by 9.1% to 27.5 billion yuan, while security revenue increased by 12.4% to 12.6 billion yuan [2] - Smart revenue surged by 62.3%, and satellite communication revenue rose by 23.5% [2] - Quantum revenue saw a remarkable growth of 134.6% [2] Strategic Initiatives - The company aims to implement a comprehensive strategy for cloud transformation and digital intelligence, enhancing core functions and competitiveness [2] - China Telecom is committed to advancing its "AI+" initiative to promote intelligent infrastructure across various sectors [2]

Core Insights - China Telecom reported a revenue of 394.27 billion yuan for the first three quarters of 2025, a year-on-year increase of 0.59% [1] - The net profit attributable to shareholders reached 30.773 billion yuan, up 5.03% year-on-year, with a basic earnings per share of 0.34 yuan [1] - The company is focusing on transforming into a service-oriented, technology-driven, and secure enterprise, emphasizing high-quality development [1] Financial Performance - Revenue for the first three quarters: 394.27 billion yuan, up 0.59% year-on-year [1] - Net profit: 30.773 billion yuan, up 5.03% year-on-year [1] - Non-recurring net profit: 28.697 billion yuan, up 0.04% year-on-year [1] - Basic earnings per share: 0.34 yuan [1] Business Development - The company is embracing artificial intelligence and accelerating its transformation towards cloud and digital services [1] - 5G network users reached 290 million, with a penetration rate of 66.9% [1] - Mobile internet traffic increased by 16.9% year-on-year, with a daily average usage (DOU) of 22.3 GB, up 11.4% [1] - Gigabit broadband user penetration rate is approximately 31.0% [1] Strategic Initiatives - The company has established an intelligent cloud system centered around its core technology "Xirang," providing integrated intelligent cloud services [2] - New strategic business segments are expanding, with IDC revenue reaching 27.5 billion yuan, up 9.1% year-on-year [2] - Security revenue increased to 12.6 billion yuan, up 12.4% year-on-year [2] - Intelligent revenue grew by 62.3%, while video internet revenue increased by 34.2% [2] - Satellite communication revenue rose by 23.5%, and quantum revenue surged by 134.6% [2]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 China Telecom Corporation Limited 中国电信股份有限公司 （於中華人民共和國註冊成立之股份有限公司） （股份編號：728） 海外監管公告 中國電信股份有限公司 2025 年第三季度報告 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.10B 條而作出。 兹載列中國電信股份有限公司（「本公司」）在上海證券交易所網站刊登的《中國電信股份有 限公司 2025 年第三季度報告》，僅供參考。 承董事會命 中國電信股份有限公司 董事長兼首席執行官 柯瑞文 中國北京，2025 年 10 月 21 日 於本公告刊發之日的本公司董事會包括柯瑞文（董事長兼首席執行官）；劉桂清（總裁兼首席 運營官）；唐珂、李英輝（財務總監）（皆為執行副總裁）；呂永鐘（非執行董事）；吳嘉寧、 楊志威、陳東琪、呂薇（皆為獨立非執行董事）。 中国电信股份有限公司 2025 年第三季度报告 证券代码：601728 ...

Core Insights - The core viewpoint of the articles indicates that China Telecom's revenue has slightly decreased while net profit has increased, driven mainly by non-operating items, and highlights the contrasting performance between emerging and traditional businesses [1][3][4]. Financial Performance - In Q3 2025, China Telecom reported a revenue of 1248.48 billion RMB, a year-on-year decrease of 0.91% [1][2]. - The net profit attributable to shareholders increased by 3.60% to 77.56 billion RMB, primarily driven by non-operating projects [1][2]. - For the first three quarters of 2025, total revenue reached 394.27 billion RMB, a growth of 0.59% year-on-year, while net profit was 307.73 billion RMB, up 5.03% [2]. User Growth - The company added 12.67 million mobile users and 3.05 million broadband users in the first three quarters of 2025 [1][4]. - The total number of mobile users reached 437 million, with a 5G penetration rate of 66.9% [4]. - The net increase in mobile users was lower than the previous year's 14.90 million, and broadband user growth also slowed significantly from 6.10 million to 3.05 million [4]. Emerging Business Growth - Emerging businesses are identified as the main growth driver, with significant increases in revenue from strategic new businesses [3]. - IDC business revenue reached 27.5 billion RMB, growing by 9.1%, while security business revenue was 12.6 billion RMB, up 12.4% [3]. - "Smart revenue" surged by 62.3%, IoT revenue grew by 34.2%, and quantum revenue doubled with a growth of 134.6% [3]. Cost Control and R&D Investment - The company maintained effective cost control, with operating costs rising only 0.1% to 274.8 billion RMB [6]. - Sales expenses decreased by 1.4%, optimizing the expense structure [6]. - R&D expenses increased by 4.4% to 9.1 billion RMB, focusing on key technologies related to network, cloud, AI, and quantum security [6].

Group 1 - The core viewpoint of the news is that China Telecom will be included in the Hang Seng Index starting September 8, 2025, which is expected to enhance its reputation, investor confidence, and stock liquidity [1] - The inclusion is projected to bring approximately $160 million in passive fund inflows to China Telecom, with the adjustment occurring over a period of 4-5 days [1] - The Hang Seng Index is a significant market index in Hong Kong, reflecting the performance of major listed companies, with a total market capitalization exceeding HKD 40 trillion [1] Group 2 - China Telecom is upgrading its strategy from "cloud transformation" to "intelligent cloud transformation," focusing on AI integration and developing a comprehensive intelligent cloud system [2] - In the first half of 2025, China Telecom's service revenue grew by 1.2% year-on-year, while net profit increased by 5.5%, with significant growth in key products such as Tianyi Cloud, which generated revenue of CNY 57.3 billion [2] - Major investment institutions have maintained "buy" or "outperform" ratings for China Telecom, with several firms raising the target price for its H-shares [2] Group 3 - China Telecom is enhancing its market value management and has maintained a high dividend payout ratio of 72% for the first half of 2025, with cumulative dividends of approximately CNY 95.2 billion since 2021 [3] - The company has received numerous accolades for its corporate governance and social responsibility, establishing a strong foundation for its inclusion in the Hang Seng Index [3] - Following its inclusion in the Hang Seng Index, China Telecom is expected to attract more market attention and continue to modernize its governance while executing its strategic upgrades [3]

Core Viewpoint - The inclusion of China Telecom in the Hang Seng Index starting September 8, 2025, is expected to enhance the company's reputation, investor confidence, and stock liquidity, with an estimated passive fund inflow of approximately $160 million [1]. Group 1: Company Transformation and Performance - China Telecom is transitioning from a traditional telecom operator to a service-oriented, technology-driven, and secure enterprise, achieving steady operational performance and high-quality development [2]. - The company is embracing artificial intelligence and has upgraded its strategy from "cloud transformation" to "intelligent cloud transformation," focusing on building an intelligent cloud system and integrating AI applications across various sectors [2]. - In the first half of 2025, China Telecom's service revenue grew by 1.2% year-on-year, while net profit increased by 5.5%, with significant growth in key products such as Tianyi Cloud, which generated revenue of 57.3 billion yuan, and intelligent services, which reached 6.3 billion yuan, marking a year-on-year growth of 89.4% [2]. Group 2: Market Value Management - China Telecom is actively enhancing its market value management, which complements its high-quality development, by engaging with investors and maintaining a high dividend payout ratio of 72% for the mid-2025 period [3]. - The company has received numerous accolades for its performance, including being recognized as "Asia's Most Admired Companies" for 14 consecutive years and winning awards for corporate social responsibility and information disclosure [3].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - In H1 2025, the company's operating performance steadily improved, with a notable recovery in service revenue growth in Q2. The company maintains its guidance for good growth in revenue, EBITDA, and net profit for the full year. The core business showed steady growth, while emerging businesses rapidly developed, fully upgrading the strategy from "cloud transformation" to "cloud transformation and intelligent benefits" [2][12]. - The company achieved operating revenue of 269.4 billion yuan in H1 2025, a year-on-year increase of 1.3%, and a net profit attributable to shareholders of 23 billion yuan, up 5.5% year-on-year [6][12]. Summary by Sections Operating Performance - In H1 2025, the company reported revenue of 269.4 billion yuan, a 1.3% increase year-on-year, with service revenue at 249.1 billion yuan, up 1.2%. In Q2 alone, revenue reached 134.9 billion yuan, growing 2.6% year-on-year, and net profit was 14.2 billion yuan, a 7.1% increase [12]. - The company maintains its guidance for good growth in revenue, EBITDA, and net profit for the full year [12]. Core Business and Emerging Strategies - The mobile communication service revenue reached 106.6 billion yuan in H1 2025, up 1.3%, while fixed-line and smart home service revenue was 64.1 billion yuan, a 0.2% increase. The mobile ARPU was 46.0 yuan, down 0.6%, and broadband ARPU was 48.3 yuan, unchanged [12]. - The company is actively promoting the upgrade of its enterprise strategy from "cloud transformation" to "cloud transformation and intelligent benefits," enhancing the integration of innovative-driven core and digital businesses [12]. Financial Management - The company reduced its full-year capital expenditure guidance to less than 83.6 billion yuan, with H1 capital expenditure at 34.2 billion yuan, down 27.5% year-on-year. The operating cash flow net amount was 47 billion yuan, a 19.4% decrease year-on-year, while free cash flow increased by 13.9% to 13.1 billion yuan [12]. - The interim dividend per share was 0.1812 yuan, an 8.4% increase, with a payout ratio of 72%. The company clarified that the full-year payout ratio for 2025 will be further increased compared to 2024 [12].

Core Viewpoint - The company experienced accelerated revenue and profit growth in Q2 2025, with rapid expansion in international business. It continues to enhance integrated development for individual and household customers, driving upgrades in connectivity, terminals, applications, and rights, while advancing mobile networks to 5G-A and home broadband to gigabit and FTTR. Both mobile communication services and fixed-line smart home businesses achieved good growth. New strategic business segments saw significant growth, with intelligent revenue reaching 6.3 billion, up 89.4% year-on-year; security revenue at 9.1 billion, up 18.2%; video internet revenue up 46.2%; satellite revenue up 20.5%; and quantum revenue up 171.1% [1][8]. Financial Performance - In the first half of 2025, the company reported operating revenue of 269.422 billion, a year-on-year increase of 1.3%, with service revenue at 249.112 billion, up 1.2%. The net profit attributable to the parent company was 23.017 billion, up 5.5%, and the net profit excluding non-recurring items was 21.721 billion, up 0.18% [2][3]. - For Q2 2025, the company achieved operating revenue of 134.913 billion, a year-on-year increase of 2.6%, with service revenue at 124.412 billion, up 2.1%. The net profit attributable to the parent company was 14.153 billion, up 7.1%, and the net profit excluding non-recurring items was 12.923 billion, up 3.21% [3]. Business Segments - The company actively develops high-value integrated users, maintaining growth in mobile communication service revenue, which reached 106.6 billion in the first half of 2025, up 1.3%. Fixed-line and smart home service revenue was 64.1 billion, up 0.2%. The mobile user base reached 433 million, and broadband users reached 199 million, with mobile ARPU at 46.0, down 0.3 from the previous year, and broadband ARPU at 48.3, unchanged year-on-year [5]. - The company’s industrial digitalization revenue grew at a slower pace, reaching 74.9 billion in the first half of 2025, up 1.5%. AIDC revenue was 18.4 billion, up 7.4%; Tianyi Cloud revenue was 57.3 billion, up 3.8%; intelligent revenue at 6.3 billion, up 89.4%; security revenue at 9.1 billion, up 18.2%; video internet revenue up 46.2%; satellite revenue up 20.5%; and quantum revenue up 171.1% [6]. Investment and Capital Expenditure - The company’s capital expenditure in the first half of 2025 was 34.2 billion, with a full-year plan of less than 83.6 billion, indicating a continuous decline in the ratio of capital expenditure to revenue. Depreciation and amortization amounted to 52.039 billion, up 5.1%, primarily due to proactive investments in computing infrastructure and upgrades to digital information infrastructure [7]. Future Outlook - The company maintains a positive outlook for revenue, EBITDA, and net profit growth for the full year. Projections for net profit attributable to the parent company for 2025-2027 are 35.093 billion, 37.453 billion, and 40.013 billion, representing year-on-year growth of 6.3%, 6.73%, and 6.83%, respectively, with corresponding PE ratios of 19X, 18X, and 17X, and PB ratios of 1.45X, 1.42X, and 1.39X [8].