China Telecom Corp. Ltd. Class A · SSE:601728
China Telecom Corp. Ltd. Class A — H1 2024 Earnings Presentation
35 slides from China Telecom Corp. Ltd. Class A's earnings presentation, Aug 20, 2024
Slide 1: 2024 Interim Results
2024 Interim Results China Telecom Corporation Limited 20 August 2024 www.chinatelecom-h.com
Slide 2: Forward-looking Statements
Forward-looking Statements The development strategies, future business plans, prospects and other forward-looking statements in this document do not constitute commitment by China Telecom Corporation Limited (the “Company”) to investors. Such forward- looking statements are subject to known and unkn
Slide 3: Overview
Overview Mr. Ke Ruiwen, Executive Director, Chairman & CEO Business Review & Financial Performance
Slide 4: Summary of Highlights
Summary of Highlights 1 Operating results grew steadily and high-quality development maintained positive trend 2 Continued to strengthen sci-tech innovation and constructed “Xirang” intelligent computing capabilities 3 Promoted AI+ & Quantum+ and accelerated development of new quality productive for
Slide 5: Key Operating Results
Key Operating Results RMB Mil 1H2023 1H2024 Change Operating Revenues 260,664 268,011 2.8% Incl.: Service Revenues 235,977 246,235 4.3% EBITDA 73,346 76,792 4.7% Net Profit 20,153 21,812 8.2% Net Profit Margin 8.5% 8.9% 0.4p.p. EPS (RMB) 0.22 0.24 8.2% ROE 4.6% 4.8% 0.2p.p. Interim DPS (RMB) 0.1432
Slide 6: High-quality Development Maintained Positive Trend
High-quality Development Maintained Positive Trend Revenue maintained favourable growth Profitability continued to enhance Shareholder returns continued to increase Service revenues Net profit ROE RMB Mil RMB Mil 4.8% Growth outpaced industry Profit growth above revenue growth 4.6% 246,235 21,812 23
Slide 7: Sci-tech Innovation Advanced to a New Level
Sci-tech Innovation Advanced to a New Level Named Central Enterprises with Outstanding Sci-tech Innovation in 2023 Achievements in key core technology breakthroughs O Secondary development, Two projects won Approved source of original technologies of several cutting-edge technologies; integration de
Slide 8: Construct Leading Integrated Intelligent Computing Service Capability of "Xirang"
Construct Leading Integrated Intelligent Computing Service Capability of “Xirang” China Telecom intelligent computing cloud capability system Capabilities of integrated intelligent computing platform “Xirang” AI application ecologies of SaaS thousands of Compelling computing power- High efficiency h
Slide 9: Promoted "Xingchen" Large Foundation Model to Achieve Further Breakthroughs
Promoted “Xingchen” Large Foundation Model to Achieve Further Breakthroughs in Innovation and Capabilities Strengthen technological breakthroughs of “Xingchen” large foundation model Xingchen large language, speech and multimodal models completed “dual recordation” of algorithms and services; in whi
Slide 10: Thoroughly Commence AI+ to Empower Intelligentised Development
Thoroughly Commence AI+ to Empower Intelligentised Development Xingchen large models for industries AI standardised products 32 large models for industries with 20 newly added, serving >7,600 customers Cloud-side applications Device-side applications serving serving Digital governance Digital liveli
Slide 11: AI Empowers Internal Digital Transformation and Upgrade
AI Empowers Internal Digital Transformation and Upgrade AI empowers cost reduction and efficiency enhancement AI + focusing on key resource areas, to carry forward source Costs empowerment governance and promote the application of large Selling expense 10000 Hotline AI empowered network models for
Slide 12: Quantum+ to Forge Carrier-grade Security Capabilities
Quantum+ to Forge Carrier-grade Security Capabilities Enriching quantum industry ecosystem and building quantum security infrastructure to form differentiated edges of “Quantum+” application Call + Quantum Network + Quantum Cloud + Quantum Platform + Quantum • Develop a product portfolio integrating
Slide 13: Accelerate the Transformation and Upgrade of Digital Information Infrastructure
Accelerate the Transformation and Upgrade of Digital Information Infrastructure CAPEX structure continuously optimised Consolidated digital information infrastructure capability edges CAPEX structure Computing power continued to Fully upgrade to AIDC Computing power interconnection strengthen 1H2024
Slide 14: All-round Promotion of Green Transformation and Development
All-round Promotion of Green Transformation and Development Guided by the “1248” green development model, greenhouse gas emissions per unit of total volume of telecommunications services maintained double-digit decline yoy Green cloud-network infrastructure Green products & services Coordinated gree
Slide 15: Comprehensively Deepen Reform to Continuously Enhance Corporate Vitality
Comprehensively Deepen Reform to Continuously Enhance Corporate Vitality Comprehensively deepen reform and promote high-quality development, to facilitate the development of service-oriented, technology-oriented and secured enterprise Deepen the reform of systems and Deepen the reform of systems and
Slide 16: Proactively Fulfill Social Responsibilities
Proactively Fulfill Social Responsibilities Accredited with “Asia’s Best CSR” by Corporate Governance Asia for 5 consecutive years Key communications assurance Rural revitalisation and universal services Support social welfare and care for employees Successfully completed AI empowers rural revitalis
Slide 17: Continued to Increase Shareholder Returns
Continued to Increase Shareholder Returns DPS and payout ratio RMB The Company attaches great importance to shareholders’ returns, 0.1671 and strives to enhance profitability and cash flow generation capabilities 16.7% The Board decided to continue interim dividend payout in 2024 0.1432 >70% Within
Slide 18: Seize Opportunities to Create Value
Seize Opportunities to Create Value Expedite the building of a world-class enterprise Continue to deeply implement the Further deepen comprehensive reforms Thoroughly promote high-quality development Cloudification and Digital Transformation strategy Continue to enhance corporate value Strive to ach
Slide 19: Business Review & Financial Performance
Overview Business Review & Financial Performance Mr. Liang Baojun, President and COO
Slide 20: Summary of Operation and Revenues
Summary of Operation and Revenues RMB Mil 1H2023 1H2024 Change Operating Revenues 260,664 268,011 2.8% Service Revenues 235,977 246,235 4.3% Mobile Communications Service 101,607 105,217 3.6% Mobile Value-added and Applications 15,440 18,087 17.1% Wireline and Smart Family Service 62,024 63,993 3.2%
Slide 21: Fundamental Businesses Innovation and Upgrade to Enhance value
Fundamental Businesses Innovation and Upgrade to Enhance value Revenue structure optimised with value enhancement driven by application innovations Mobile communications service revenues Wireline and Smart Family revenues RMB Mil RMB Mil 3.6% 3.2% Mobile value-added and 101,607 105,217 63,993 Smart
Slide 22: Industrial Digitalisation Achieved Deep Integration and Extensive Empowerment
Industrial Digitalisation Achieved Deep Integration and Extensive Empowerment Construct Industrial Digitalisation Capability System Scalable promotion of digital platforms Municipal grassroots governance platform All-domain tourism platform Industrial Digitalisation revenue No. of enterprise custome
Slide 23: China Telecom Cloud's Leading Intelligent Computing Services Development Gained Momentum
China Telecom Cloud’s Leading Intelligent Computing Services Development Gained Momentum Market leadership position further strengthened No. of China Telecom Cloud 2B customers Public cloud revenue Market share 4.55Mil 29.2% 26% IaaS+PaaS 1.5p.p. IaaS1.4p.p. Diversified use cases Computing power
Slide 24: AI+ Market Promotion Achieved Prominent Results
AI+ Market Promotion Achieved Prominent Results AI Big data Data product supermarket: No. of 2B customers No. of 2C/2H customers Lingze data element Capabilities of Lingze 2.0 platform upgraded with scale promotion of platform empowered in 1H2024 empowered Served public data operation of SaaS versio
Slide 25: Security Products and Services Serving Extensively
Security Products and Services Serving Extensively Bestsellers continued to gain traction Example cases widely replicated 1Bil revenue-grade product Cloud Dam anti-DDoS • Yunmai Zero Trust (SASE): Deployed for a large No. of customers enterprise with >10,000 employees, enabling 36% Enhance the effe
Slide 26: New Generation Information and Communication Accelerated Popularisation and Application
New Generation Information and Communication Accelerated Popularisation and Application 5G 2B Satellite communications Low altitude economy Projects implemented in Fully propel 5G penetration into Industry dedicated networks Revenue 110% Shenzhen, Jiangsu and other cities thousands of industries wi
Slide 27: International Business Achieved Scale Development
International Business Achieved Scale Development Strategic emerging businesses Construction of international cloud- International business grew rapidly made inroads network infrastructure strengthened Granted with full-service international International business revenue Handset direct-to-satellite
Slide 28: Precise Cost Allocation to Promote High-quality Development
Precise Cost Allocation to Promote High-quality Development RMB Mil 1H2024 Change • Strengthened AI empowerment in cost reduction and efficiency enhancement, continued to Operating Expenses 240,751 2.4% enhance resource efficiency, growth rate was lower than that of operating revenues by 0.4p.p. • I
Slide 29: Financial Strength Enhanced
Financial Strength Enhanced EBITDA Equity attributable to Sound capital structure supports RMB Mil shareholders healthy corporate development RMB Mil 456,279 Debt-to-asset ratio 76,792 73,346 442,926 47.1% 4.7% 3.0% Corporate credit rating maintained the highest 1H2023 1H2024 2023.12 2024.06 AAA Not
Slide 30: Thank You!
Thank You! For further information & enquiries, Most Outstanding Company Most Honored Companies Asia’s Best CSR please contact our in China – Communication Investor Relations Department at ir@chinatelecom-h.com or visit www.chinatelecom-h.com Services Sector Best Social Best Corporate ESG Responsibi
Slide 31: Appendices
[/ @ 188i Appendices
Slide 32: Appendix 1: Unaudited Condensed Consolidated Statement of Comprehensive Income
Appendix 1: Extracted from Unaudited Condensed Consolidated Statement of Comprehensive Income for the Six-month Period Ended 30 June 2024 (IFRS Accounting Standards) RMB Mil 1H2023 1H2024 Change Operating Revenues 260,664 268,011 2.8% Service Revenues 235,977 246,235 4.3% Revenues from Sales of Good
Slide 33: Appendix 2: Unaudited Consolidated Income Statement (CASs)
Appendix 2: Extracted from Unaudited Consolidated Income Statement for the Six-month Period Ended 30 June 2024 (CASs) RMB Mil 1H2023 1H2024 Change Operating Revenues 258,679 265,973 2.8% Operating Costs 179,122 183,957 2.7% Taxes and Surcharges 847 918 8.4% Selling Expenses 27,933 27,568 (1.3%) Gene
Slide 34: Appendix 3: Unaudited Condensed Consolidated Statement of Financial Position
Appendix 3: Extracted from Unaudited Condensed Consolidated Statement of Financial Position as at 30 June 2024 (IFRS Accounting Standards) RMB Mil 2023.12.31 2024.6.30 Current Assets 167,863 199,920 Non-current Assets 667,951 671,071 Total Assets 835,814 870,991 Current Liabilities 303,436 327,974 N
Slide 35: Appendix 4: Operating Figures
Appendix 4: Operating Figures Selected Operating Metrics for the Period Ended 30 June 2024 Subscriber (Mil) 2023.12 2024.6 Change Mobile 407.77 416.85 9.08 5G package 318.66 336.63 17.97 Wireline Broadband 190.16 193.35 3.19 Access Lines in Service 101.02 99.16 (1.86) IPTV 127.81 128.49 0.68 IoT Con