By fully and deeply implementing its Cloudification and Digital Transformation strategy, China Telecom insists on being customer-oriented, strengthens breakthroughs in key core technologies, grasps AI development direction and seizes opportunities to create value, accelerating the construction of a world-class enterprise.
The principal business of China Telecom Corporation Limited (“China Telecom” or the “Company”, a joint stock limited company incorporated in the People’s Republic of China with limited liability, together with its subsidiaries, collectively the “Group”) is digital information services including mobile communications, wireline communications, satellite communications, Internet access, cloud computing and computing power, Big Data, AI, quantum, ICT integration, etc. The Company’s A Shares and H Shares are listed on the Shanghai Stock Exchange and the Main Board of The Stock Exchange of Hong Kong Limited, respectively.
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/ MANAGEMENT’S DISCUSSION AND ANALYSIS (REPORT OF THE DIRECTORS)
/ MANAGEMENT’S DISCUSSION AND ANALYSIS (REPORT OF THE DIRECTORS)
/ MANAGEMENT’S DISCUSSION AND ANALYSIS (REPORT OF THE DIRECTORS)
In 2024, the Company firmly grasped the direction of artificial intelligence development. Having implemented the new development principles completely, accurately and comprehensively, the Company is also resolutely fulfilling its responsibilities in building Cyberpower and Digital China, as well as safeguarding network and information security. The Company further deepened the implementation of its Cloudification and Digital Transformation strategy and accelerated the transformation towards a service-oriented, technology-oriented, and secured enterprise. Insisting on leading industrial innovation with sci-tech innovation, the Company accelerated the development of new quality productive forces in light of its own conditions and continuously improved the supply level of high-quality products and services. The Company also expanded the scale of strategic emerging businesses, consistently deepened corporate reform, and comprehensively advanced opening up and cooperation. With the enhancement of the quality and upgrade of digital information infrastructure, the Company maintained a continued growth in operating performance, and made solid new strides towards high-quality development.
Achieving New Results in Building of an Enterprise with “Three Orientations”, Making Solid New Strides Towards High-Quality Development
China Telecom Cloud Advancing into a New Stage of Intelligent Cloud Development, with “AI+” and “Quantum+” Empowering Industrial Innovation
Comprehensively Deepening Reforms, Intensifying Efforts in Opening Up, and Continuously Stimulating Vitality for Corporate Innovation and Development
Expediting the Enhancement and Upgrade of New Digital Information Infrastructure, Consolidating the Key Foundation for High-Quality Development
Proactively Fulfilling Social Responsibilities, Continuously Strengthening Market Capitalisation Management, and Gaining Widespread Recognition from the Capital Markets
For details, please refer to the 2024 Sustainability Report (ESG Report) published by the Company on the websites of the Company.
The Company strives to maintain a high level of corporate governance and has adhered to excellent, prudent and efficient corporate governance principles and continuously improves its corporate governance methodology, regulates its operations, improves its internal control mechanism, implements sound corporate governance and disclosure measures, and ensures that the Company’s operations are in line with the long-term interests of the Company and its shareholders as a whole. The Company actively implemented the philosophy of green development, focused on China’s carbon peaking and carbon neutrality goals, and continuously advanced the “1248” green development mode, empowering green development through digitalization and leading digital transformation through green initiatives.
For details, please refer to the 2024 Sustainability Report (ESG Report) published by the Company on the websites of the Company.
The Company attaches great importance to shareholder returns. It continuously promotes the synchronised growth of market value and corporate value and strives to enhance its profitability and cash flow generation capabilities. Taking the Company’s profitability into full consideration, alongside cash flow levels and capital needs for its future development, the Board of Directors has decided to recommend at the Annual General Meeting that the profit to be distributed in cash for the year 2024 shall represent 72% of the profit attributable to equity holders of the Company for the year. A final dividend of RMB0.0927 per share (pre-tax) will be declared for year 2024. Together with the 2024 interim dividend of RMB0.1671 per share (pre-tax), which has been already distributed, the full year dividend of 2024 amounts to RMB0.2598 per share (pre-tax), and the aggregate amount of the full year dividend increased by 11.4% year-on-year. Within three years from 2024, the profit distributed in cash by the Company will gradually increase to above 75% of the profit attributable to equity holders of the Company for the year, continuously creating more value for shareholders.
Solid 2024 Annual Results
Revenue Maintained Favourable Growth (service revenues growth outpaced industry)
Profitability Further Enhanced (EBITDA growth outpaced industry, net profit growth surpassed revenue growth)
Robust Business Development (Mobile, Wireline and Smart Family, Industrial Digitalisation)
Rapid Development of Strategic Emerging Businesses (Cloud and computing power, AI, Quantum, Security, New Generation Information and Communication)
CAPEX Structure Continuously Optimised
Continued to Increase Shareholder Returns
In 2024, the Company’s operating revenues amounted to RMB529.4 billion, representing an increase of 3.1% year-on-year. Of which, service revenues amounted to RMB482.0 billion, representing an increase of 3.7% year-on-year. EBITDA amounted to RMB140.8 billion, representing an increase of 2.9% year-on-year. Net profit amounted to RMB33.0 billion, representing an increase of 8.4% year-on-year, and the basic earnings per share were RMB0.36. Capital expenditure was RMB93.5 billion, representing a decrease of 5.4% year-on-year. Free cash flow reached RMB22.2 billion, representing an increase of 70.7% year-on-year.
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