Core Viewpoint - The company reported steady operational performance in Q1 2025, with a focus on digital transformation and high-quality development, while achieving revenue growth and maintaining a strong customer base in the 5G sector [5][6][14]. Financial Performance - The company's revenue for Q1 2025 was RMB 134.5 billion, with service revenue at RMB 124.7 billion, reflecting a year-on-year growth of 0.3% and a quarter-on-quarter increase of 4.6% [5]. - Net profit attributable to shareholders was RMB 8.9 billion, representing a year-on-year increase of 3.1%, with basic earnings per share at RMB 0.10 [5]. - Operating costs amounted to RMB 94.9 billion, with sales expenses decreasing by 3.9% to RMB 13.6 billion, while management expenses increased by 4.7% to RMB 10.4 billion [7]. Operational Highlights - The company reported a total of 270 million 5G network users, with a penetration rate of 62.0%, and mobile internet traffic increased by 14.2% year-on-year [6]. - The company’s IDC revenue reached RMB 9.5 billion, growing by 10.4%, while smart revenue surged by 151.6% and satellite communication revenue increased by 37.2% [6]. Strategic Initiatives - The company is committed to enhancing its digital capabilities and integrating AI, satellite, and quantum technologies into its services, aiming to transform into a service-oriented and technology-driven enterprise [6][7]. - The company plans to continue its cloud transformation strategy and strengthen its core technologies to foster innovation and improve operational efficiency [7]. Shareholder Information - The company’s board of directors confirmed the accuracy and completeness of the quarterly report, with no significant omissions or misleading statements [2][16]. - The company is in the process of electing a new non-executive director, with the nomination of Mr. Lv Yongzhong to be submitted for shareholder approval [19][23].

Core Insights - China Telecom reported a slight revenue increase of 0.01% year-on-year for Q1 2025, with total revenue reaching 134.5 billion yuan [1][4] - The net profit attributable to shareholders increased by 3.11% year-on-year to approximately 8.86 billion yuan, with basic earnings per share rising to 0.10 yuan [1][4] Financial Performance - Service revenue for Q1 2025 was 124.7 billion yuan, showing a year-on-year growth of 0.3% and a quarter-on-quarter increase of 4.6% [1] - Operating costs amounted to 94.9 billion yuan, with sales expenses decreasing by 3.9% to 13.6 billion yuan, while management expenses increased by 4.7% to 10.4 billion yuan [4] - Research and development expenses rose by 11.5% to 1.8 billion yuan, reflecting a commitment to technological innovation [4] User Growth and Service Expansion - The number of 5G network users reached 270 million, with a penetration rate of 62.0%, and a net increase of 15.48 million users in Q1 2025 [2][3] - Mobile internet traffic grew by 14.2% year-on-year, with a daily average usage (DOU) of 20.4 GB, up by 9.1% [2] - Fixed broadband users reached 19.81 million, with a net increase of 670,000 users [3] Revenue from New Services - IDC revenue for Q1 2025 was 9.5 billion yuan, representing a year-on-year growth of 10.4% [3] - Smart revenue surged by 151.6% year-on-year, while revenue from video networking and satellite communication also saw significant increases of 58.4% and 37.2%, respectively [3]