35 slides from China Telecom Corp. Ltd. Class A's earnings presentation, Mar 25, 2025
Slide 1: 2024 Annual Results
2024 Annual Results China Telecom Corporation Limited 25 March 2025 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 Operating results continued to grow with high-quality development 1 took solid steps Sci-tech innovation led industrial innovation with China Telecom 2 Cloud move towards a new stage of intelligent cloud 3 Deeply commenced development of AI+ and Quantum+ to foster and strengthe
Slide 5: Key Operating Results
Key Operating Results RMB Mil 2023 2024 Change Operating Revenues 513,551 529,417 3.1% Incl.: Service Revenues 464,965 482,033 3.7% EBITDA 136,830 140,847 2.9% Net Profit 30,446 33,012 8.4% Net Profit Margin 6.5% 6.8% 0.3p.p. EPS (RMB) 0.33 0.36 8.4% ROE 6.9% 7.3% 0.4p.p. Full-year DPS (RMB) 0.2332
Slide 6: High-quality Development Took Solid Steps
High-quality Development Took Solid Steps Revenue maintained favourable growth Profitability continued to enhance Market value grew steadily Service revenues Surpassed industry growth Net profit Profit growth above revenue growth Market capitalization RMB Mil RMB Mil RMB Bil 3.7% 8.4% 33,012 33.6% 6
Slide 7: Strengthened Breakthroughs in Key Core Technologies with Innovation Achieved Prominent Results
Strengthened Breakthroughs in Key Core Technologies with Innovation Achieved Prominent Results Optimising RDO innovation system Achieving important breakthroughs in core technologies Cloud computing AI PRC’s first full-size, full-modality, full-localisation trillion- Cloud server operating system, d
Slide 8: China Telecom Cloud Moves Towards the New Development Stage of Intelligent Cloud
China Telecom Cloud Moves Towards the New Development Stage of Intelligent Cloud China Telecom intelligent computing cloud capability system China Telecom Cloud fully upgraded to intelligent cloud SaaS AI application ecologies of Revenue RMB 113.9Bil 17.1% thousands of Multiple core technology brea
Slide 9: AI+ Shapes Development of New Quality Productive Forces as an Important Engine
AI+ Shapes Development of New Quality Productive Forces as an Important Engine Prominent results in market expansion Xingchen MaaS / Agent platform Marketization of data elements >50 large models for industries >20 Industry Agent Leading in PRC on National-level Intelligent revenue RMB 8.9Bil 195.7
Slide 10: AI Empowers Network to Promote Digital Transformation and Upgrade
AI Empowers Network to Promote Digital Transformation and Upgrade Accelerating internal empowerment to enhance digital transformation effectiveness AI For Network 13 large models for internal use Production process Business scenes covered Cloud-network automation and intelligence embedded >200 >400
Slide 11: Quantum+ Creates New Momentum and New Models for Development
Quantum+ Creates New Momentum and New Models for Development Industrial development taking shape No. of quantum metropolitan Scale of superconducting quantum No. of “Tianyan” quantum computing Revenue network built computing cluster in PRC cloud platform visits 238.7% 16 No.1 >14Mil times Forging "
Slide 12: Accelerated Quality Enhancement and Upgrade of Digital Information Infrastructure
Accelerated Quality Enhancement and Upgrade of Digital Information Infrastructure Continuous trend in capex optimisation Network for AI Terminal Edge Cloud CAPEX . Access compute Inter-compute RMB Mil . . Edge computing pools G.654E new model optical fibre 10.6% covered by new metropolitan . . . 400
Slide 13: Digitalisation Empowers Green Development while Greenification Drives Digital Transformation
Digitalisation Empowers Green Development while Greenification Drives Digital Transformation Promoting "1248" green development model with greenhouse gas emissions per unit of total volume of telecommunications services 19.2% yoy Green and low-carbon cloud-network infrastructure Green products & se
Slide 14: Comprehensively Deepen Reform to Enhance Innovation and Development Vitality
Comprehensively Deepen Reform to Enhance Innovation and Development 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
Slide 15: High-level Open Cooperation to Promote Digital Transformation of Economy and Society
High-level Open Cooperation to Promote Digital Transformation of Economy and Society Promote comprehensive and in-depth open cooperation leveraging corporate core competence Open cooperation in Open cooperation in Open cooperation in sci-tech cloud-network data • Establish and strengthen industry-ac
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 Promoted rural revitalisation Successfully complet
Slide 17: Continuously Enhancing Shareholders' Return
Continuously Enhancing Shareholders’ Return Dividend Policy Dividend per Share and Payout Ratio RMB 0.2598 11.4% 2024 Final Dividend FY24 DPS 0.2332 72.0% RMB 0.0927per share RMB 0.2598 70.1% The Company attaches great importance to shareholder returns; taking the overall shareholders’ interest, the
Slide 18: Grasping AI Development Direction and Seizing Opportunities to Create value
Grasping AI Development Direction and Seizing Opportunities to Create value 2025 Targets Cutting-edge Waves of digitalisation, network-based, Strengthening macro technology innovation intelligentisation, greenisation policies Maintain favourable growth Rapid growth AI, quantum and other cutting-edge
Slide 19: Business Review & Financial Performance
Overview Business Review & Financial Performance Mr. Tang Ke, Executive Director & Executive Vice President
Slide 20: Summary of Operation and Revenues
Summary of Operation and Revenues RMB Mil 2023 2024 Change Operating Revenues 513,551 529,417 3.1% Service Revenues 464,965 482,033 3.7% Mobile Communications Service 195,660 202,524 3.5% Mobile Value-added and Applications 25,754 29,901 16.1% Wireline and Smart Family Service 123,063 125,680 2.1% B
Slide 21: Fundamental Businesses Achieved Steady Revenue Growth with Stable ARPU
Fundamental Businesses Achieved Steady Revenue Growth with Stable ARPU Steady growth in revenue and subs while subs value remained stable Mobile communications service Wireline and Smart Family revenues revenues Mobile Subs RMB Mil Broadband subs RMB Mil 3.5% 2.1% 125,680 425Mil 197Mil 202,524 123,0
Slide 22: Industrial Digitalisation Deeply Cultivates Intelligent Digitalisation for Industries
Industrial Digitalisation Deeply Cultivates Intelligent Digitalisation for Industries and Promotes Industrial Upgrade Promoting the digital and intelligent transformation and upgrade of thousands of industries No. of leading integrated digital Industrial Digitalistion capability core Market share of
Slide 23: Enhancing "Cloud-intelligent Integrated" Intelligent Computing Service Capability
Enhancing “Cloud-intelligent Integrated” Intelligent Computing Service Capability Cloud Computing power AIDC No. of China Telecom Cloud 2B customers Leading in computing power with Revenue general/intelligent/super compute integration >4.90Mil 8% Computing power deployment All-in-one service RMB 33
Slide 24: Promoting Popularity of AI Applications
Promoting Popularity of AI Applications AI large models for industries Big Data serve >10k scene-based customers Data Intelligent Core Model training dataset Data products Platform serving >1,600 >8,700 AI + DICT SaaS-based Industry deployment informatisation project industrial customers >9Tri token
Slide 25: Enhancing Security / Quantum Service Capability
Enhancing Security / Quantum Service Capability Maintained robust growth Revenue 17.2% SaaS-based service covered 157cities Security Quantum Selected for Gartner's global top Continuously enriching the "Quantum+" capability portfolio Anti-DDoS Cloud Dam service providers list, with 64 VIP industry
Slide 26: Promoting New Generation Information and Communication Development
Promoting New Generation Information and Communication Development 5G 2B IoVT No. of industry application projects Covering hundreds of millions Cumulative 45k High-quality video datasets of video terminals and cross- empower AI service in all scenes domain scheduling capabilities Factory Gov’t enti
Slide 27: International Business Maintained Rapid Growth with Breakthroughs in Overseas Strategic Emerging Business
International Business Maintained Rapid Growth with Breakthroughs in Overseas Strategic Emerging Business International business Strategic emerging businesses Global cloud-network capability grew rapidly achieved multiple breakthroughs deployment accelerated China Telecom Cloud Along “the Belt and R
Slide 28: Precise Cost Allocation to Enhance Efficiency
Precise Cost Allocation to Enhance Efficiency RMB Mil 2024 Change • Deepened AI empowerment to cost reduction and efficiency enhancement, Operating Expenses 489,614 2.8% continuously increased resource utilisation efficiency, opex growth lower than operating revenue growth by 0.3p.p. • Insisted in p
Slide 29: Financial Strength Enhanced
Financial Strength Enhanced EBITDA Free Cash Flow Sound capital structure supports RMB Mil RMB Mil healthy corporate development 2.9% 70.7% 22,176 140,847 Debt-to-asset ratio 136,830 47.3% 12,988 Corporate credit rating ranked the highest 2023 2024 2023 2024 AAA Notes: 1. Free Cash Flow = EBITDA – C
Slide 30: Thank You!
Thank You! For further information & enquiries, please contact our Most Honored Company Asia’s Best CSR Investor Relations Department at ir@chinatelecom-h.com or visit www.chinatelecom-h.com Outstanding Contribution Best Managed Company in China Enterprise Award for the 75th Anniversary of the Found
Slide 31: Appendices
Fee Appendices
Slide 32: Appendix 1: Extracted from Audited Consolidated Statement of Comprehensive Income
Appendix 1: Extracted from Audited Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2024 (IFRS Accounting Standards) RMB Mil 2023 2024 Change Operating Revenues 513,551 529,417 3.1% Service Revenues 464,965 482,033 3.7% Operating Expenses (476,423) (489,614) 2.8% Operati
Slide 33: Appendix 2: Extracted from Audited Consolidated Income Statement (CASs)
Appendix 2: Extracted from Audited Consolidated Income Statement for the Year Ended 31 December 2024 (CASs) RMB Mil 2023 2024 Change Operating Revenues 507,843 523,569 3.1% Operating Costs 361,422 373,498 3.3% Taxes and Surcharges 1,862 2,184 17.3% Selling Expenses 56,117 55,482 (1.1%) General and A
Slide 34: Appendix 3: Extracted from Audited Consolidated Statement of Financial Position
Appendix 3: Extracted from Audited Consolidated Statement of Financial Position as at 31 December 2024 (IFRS Accounting Standards) RMB Mil 2023.12.31 2024.12.31 Current Assets 167,863 188,125 Non-current Assets 667,951 678,500 Total Assets 835,814 866,625 Current Liabilities 303,436 325,377 Non-curr
Slide 35: Appendix 4: Operating Figures
Appendix 4: Operating Figures Selected Operating Metrics for the Year Ended 31 December 2024 Subscriber (Mil) 2023.12 2024.12 Change Mobile 407.77 424.52 16.75 5G package 318.66 351.48 32.82 Wireline Broadband 190.16 197.44 7.28 IPTV 127.81 128.35 0.54 IoT Connected Devices 526.74 627.70 100.96 2023