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1、ABOUT CHINA TELECOMChina Telecom Corporation Limited(“China Telecom”or the“Company”,a joint stock limited company incorporated in the Peoples Republic of China with limited liability,together with its subsidiaries,collectively the“Group”)is a leading large-scale integrated intelligent information se

2、rvices operator in the world whose principal business is the provision of fundamental telecommunications businesses including wireline,mobile communications and satellite communications services,value-added telecommunications businesses such as Internet access services,information services and other

3、 related businesses.The Companys 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.C O N T E N T S004 Important Notice256 Shareholder Information Corporate CultureSECTION I005 DefinitionsSECTION III012 Managemen

4、ts Discussion and Analysis(Report of the Directors)SECTION II008 Company ProfileSECTION IV056 Corporate Governance Report063 Biographical Details of Current Directors,Senior Management and SupervisorsSECTION V108 Environmental and Social ResponsibilitiesSECTION VI112 Significant EventsSECTION VII146

5、 Changes in Shares and Information on ShareholdersSECTION VIII156 Financial Reports156 Independent Auditors Report162 Consolidated Statement of Financial Position164 Consolidated Statement of Comprehensive Income166 Consolidated Statement of Changes in Equity167 Consolidated Statement of Cash Flows1

6、70 Notes to the Consolidated Financial Statements253 Financial Summary054 Recognition and AwardsIMPORTANT NOTICEChina Telecom Corporation Limited Annual Report 20230041.The financial statements of the Company for the year of 2023 prepared in accordance with the IFRS Accounting Standards have been au

7、dited by PricewaterhouseCoopers,who has issued a standard unqualified audit report.2.The profit distribution proposal or proposal for conversion of capital reserve into share capital for the Reporting Period has been approved by the Board.Pursuant to the previous decision of the Board,within three y

8、ears after the A Share Offering and Listing,the profit to be distributed by the Company in cash for each year will gradually increase to 70%or above of the profit attributable to equity holders of the Company for that year.After fully considering the Companys cash flow level,the cash return to share

9、holders,etc.,the Board of Directors proposed a final dividend of RMB0.090 per share(pre-tax)in an aggregate amount of approximately RMB8,236 million calculated based on 91,507,138,699 shares,being the total number of issued share capital of the Company as at the end of 2023.The dividend distribution

10、 is derived from net profit realised in the current period.Together with the 2023 interim dividend of RMB0.1432 per share(pre-tax)which has been distributed,the full year dividend of 2023 amounts to RMB0.2332 per share(pre-tax)in an aggregate amount of approximately RMB21,339 million which represent

11、s over 70%of the profit attributable to equity holders of the Company for the year 2023.In case of any change in the total number of issued share capital of the Company before the record date for the implementation of the dividend distribution,the total distribution amount will remain unchanged,and

12、the distribution amount per share will be adjusted accordingly.The Company attaches great importance to shareholder returns and fully considers the overall interests of shareholders,the Companys profitability,cash flow levels and future development needs.Within three years from 2024,the profit distr

13、ibuted in cash will gradually increase to above 75%of the profit attributable to equity holders of the Company for the year,striving to create more value for shareholders.The profit distribution plan will be submitted to the Annual General Meeting of the Company for the year 2023 for consideration a

14、nd approval.3.Risk Statement of Forward-Looking StatementsForward-looking statements,such as development strategies,future business plans and prospects,contained in the 2023 annual report of the Company do not constitute a commitment of the Company to investors.These forward-looking statements are s

15、ubject to known and unknown risks,uncertainties and other factors which may cause the Companys actual performance,financial condition or results of operations to be materially different from any future performance,financial condition or results of operations implied by such forward-looking statement

16、s.In addition,the Company will not update these forward-looking statements.Investors should be aware of the investment risks.4.Significant Risk WarningThe Company has described in detail the economic and policy environment adaptation risks,sci-tech and innovation risks,network and data security risk

17、s,risks relating to emerging businesses in strategic emerging industries and future industries and international business operational risks in this report.Please refer to the“Managements Discussion and Analysis(Report of the Directors)”in this report.SECTION I DEFINITIONSChina Telecom Corporation Li

18、mited Annual Report 2023005In this report,unless the context otherwise requires,the following terms and expressions have the following meanings:2C/2H/2B/2GTo Customer/To Home/To Business/To Government4G4th generation mobile communication technology5G5th generation mobile communication technologyA Sh

19、are(s)Shares of the Company issued in mainland China,listed on domestic stock exchanges and subscribed and traded in RMBAIDCArtificial Intelligence DatacentreAIoTArtificial Intelligence of ThingsARPUMonthly average revenue per userArtificial Intelligence/AITechnology science that researches and deve

20、lops theories,methodologies,technologies and application systems for simulating,extending and expanding human intelligenceBGBusiness GroupBig DataMassive,real-time and diversified data information that can be recorded,collected,developed and utilised,and big data-based mining and processing technolo

21、gyBoard/Board of DirectorsThe board of directors of the CompanyChina Comservice/CCSChina Communications Services Corporation Limited(中國通信服務股份有限公司)China Telecom/the CompanyChina Telecom Corporation Limited(中國電信股份有限公司),or where the context so requires,refers to China Telecom Corporation Limited and it

22、s subsidiariesChina Telecom Digital Intelligence TechnologyChina Telecom Digital Intelligence Technology Co.,Ltd.(中電信數智科技有限公司),formerly known as China Telecom System Integration Co.,Limited(中國電信集團系統集成有限責任公司)SECTION I DEFINITIONSChina Telecom Corporation Limited Annual Report 2023006China Telecom Fin

23、anceChina Telecom Group Finance Co.,Ltd.(中國電信集團財務有限公司)China Telecom GlobalChina Telecom Global Limited(中國電信國際有限公司)China TelecommunicationsChina Telecommunications Corporation(中國電信集團有限公司),formerly known as China Telecommunications Corporation(中國電信集團公司),the controlling shareholder of the CompanyChina

24、TowerChina Tower Corporation Limited(中國鐵塔股份有限公司)Chinese Accounting Standard/China Accounting Standards for Business EnterprisesThe Basic Standard of the Accounting Standards for Business Enterprises issued by the Ministry of Finance,and the specific accounting standards,application guidelines,interp

25、retations and other relevant regulations subsequently revisedCloud/Cloud ComputingAn Internet technology that provides flexible and on-demand services to external users through the Internet with pooled cluster computing capabilitiesCompany LawThe Company Law of the PRCComputing PowerThe ability of c

26、omputer equipment or computing centres/datacentres for processing information,i.e.,the ability of computer hardware and software to cooperate to perform certain computing needsCSRCChina Securities Regulatory CommissionDaaSDesktop as a ServiceDCIDatacentre InterconnectDual Listing RulesThe Rules Gove

27、rning the Listing of Securities on The Stock Exchange of Hong Kong Limited and The Rules Governing the Listing of Stocks on the Shanghai Stock ExchangeE-surfing PayE-surfing Pay Co.,Ltd(天翼電子商務有限公司)EFLOPSFLOPS,Floating-Point Operations Per Second,which is commonly used to estimate computer performanc

28、e;“E”stands for“Exa”and means 1018;therefore EFLOPS implies 1018 times of floating-point operations per secondFTTRFibre to The RoomGuangdong RisingGuangdong Rising Holdings Group Co.,Ltd.(廣東省廣晟控股集團有限公司),formerly known as Guangdong Rising Assets Management Co.,Ltd.(廣東省廣晟資產經營有限公司)H Share(s)Shares of t

29、he Company that are registered in mainland China,issued outside mainland China,listed on the Stock Exchange and subscribed and traded in Hong Kong dollarsSECTION I DEFINITIONSChina Telecom Corporation Limited Annual Report 2023007IaaSInfrastructure as a ServiceIFRS Accounting StandardsIFRS Accountin

30、g Standards,amendments and interpretations issued from time to time by the International Accounting Standards BoardInternet of Things/IoTVarious sensory devices that are based on computer and communication technology,using cellular mobile network,wired network,wireless network,etc.to complete the tr

31、ansmission,coordination and processing of information,so as to realise the network of communication between objects and things,and communication between objects and peopleListing RulesThe Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong LimitedMaaSModel as a ServiceMIITMi

32、nistry of Industry and Information TechnologyPaaSPlatform as a ServicePONPassive Optical NetworkProspectusThe prospectus in connection with the initial public offering of A Shares of China Telecom Corporation LimitedQuantum-encrypted CallsThe communication technology that is closely integrated with

33、quantum information technology to achieve end-to-end voice calls and other encryption protection,and provide users with stable and reliable quantum protection secure communication servicesRDOFundamental research(R),applied technological research and development(D)and operational development(O)Report

34、ing PeriodPeriod from 1 January 2023 to 31 December 2023SASACState-owned Assets Supervision and Administration Commission of the State CouncilSecurities LawThe Securities Law of the PRCSSEShanghai Stock ExchangeSSE Listing RulesThe Rules Governing the Listing of Stocks on the Shanghai Stock Exchange

35、Stock Exchange/Hong Kong Stock Exchange/HKSEThe Stock Exchange of Hong Kong LimitedThe Offering/A Share OfferingThe public offering of RMB ordinary shares(A Shares)by the Company in 2021SECTION II COMPANY PROFILEChina Telecom Corporation Limited Annual Report 20230081.CORPORATE INFORMATIONCompany na

36、me in Chinese中國電信股份有限公司Short name in Chinese中國電信Company name in EnglishChina Telecom Corporation LimitedShort name in EnglishChina TelecomLegal representative of the CompanyKe Ruiwen2.CONTACT PERSONS AND CONTACT INFORMATIONSecretary of the BoardSecurities Affairs RepresentativeCompany SecretaryNameL

37、i YinghuiXu FeiWong Yuk HarAddress31 Jinrong Street,Xicheng District,Beijing,China31 Jinrong Street,Xicheng District,Beijing,China28th Floor,Everbright Centre,108 Gloucester Road,Wanchai,Hong KongTelephone86105850180086105850150885228779777Fax86105850153186105850153185228770988E-mailirchinatelecom-i

38、rchinatelecom-irchinatelecom-3.GENERAL INFORMATIONRegistered address and office address of the Company31 Jinrong Street,Xicheng District,Beijing,ChinaPostal code of the office address of the Company100033Principal place of business in Hong Kong28th Floor,Everbright Centre,108 Gloucester Road,Wanchai

39、,Hong KongCompany websitewww.chinatelecom-E-mailirchinatelecom-SECTION II COMPANY PROFILEChina Telecom Corporation Limited Annual Report 20230094.STOCK INFORMATIONClass of sharesStock exchange for listingStock Short NameStock CodeA SharesShanghai Stock ExchangeChina Telecom601728H SharesHong Kong St

40、ock ExchangeChina Telecom007285.OTHER RELEVANT INFORMATIONAccountant engaged by the Company(mainland China)NamePricewaterhouseCoopers Zhong Tian LLP Recognised Public Interest Entity AuditorOffice Address11/F,PricewaterhouseCoopers Center,2 Corporate Avenue,202 Hu Bin Road,Huangpu District,ShanghaiN

41、ame of signing accountantsSong Shuang,Liu YuanboAccountant engaged by the Company(overseas)NamePricewaterhouseCoopers Certified Public Accountant Registered Public Interest Entity AuditorOffice Address22/F,Princes Building,Central,Hong KongSponsor performing ongoing supervision duties during the Rep

42、orting PeriodNameChina International Capital Corporation LimitedOffice Address27th and 28th Floor,China World Office 2,No.1 Jianguomenwai Avenue,Chaoyang District,BeijingNames of signing sponsor representativesXu Shiyan,Liang JingjingPeriod of ongoing supervision20 August 2021 to 31 December 2023Spo

43、nsor performing ongoing supervision duties during the Reporting PeriodNameCSC Financial Co.,Ltd.Office AddressBuilding 4,No.66 Anli Road,Chaoyang District,BeijingNames of signing sponsor representativesWang Chenning,Dong JunfengPeriod of ongoing supervision20 August 2021 to 31 December 2023TRANSMITS

44、 E C T I O N MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)Ke RuiwenChairman and Chief Executive OfficerIIIChina Telecom Corporation Limited Annual Report 2023China Telecom Corporation Limited Annual Report 2023012013SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTO

45、RS)1.CHAIRMANS STATEMENTIn 2023,with the accelerated development of the new round of sci-tech revolution and industrial transformation represented by artificial intelligence(AI)and quantum technology among others,the building of Digital China continued to advance.Demands for digitalisation from the

46、economy and society have been constantly upgrading,while the digital economy with data as a key element boomed,contributing to a vast market space.Based on the new development stage,the Company implemented the new development principles completely,accurately and comprehensively,while proactively ser

47、ving and integrating into the new development pattern.In the process of supporting the advancement of Chinese modernisation,the Company firmly seized opportunities arising from the market development,resolutely fulfilled its responsibilities in building Cyberpower and Digital China,as well as safegu

48、arding network and information security,while fully and deeply implementing its Cloudification and Digital Transformation strategy.The Company fully leveraged its edges in cloud-network integration,further advanced the building of a service-oriented,technology-oriented,and secured enterprise,continu

49、ed to achieve breakthroughs in sci-tech innovation,and fully completed its deployment in strategic emerging businesses.The Company further upgraded its digital information infrastructure,sped up the formation of new quality productive forces and accelerated the growth of new momentum for market deve

50、lopment.The Company deepened corporate reforms,with continuous enhancement of governance capabilities and levels,propelling its high-quality development to a new level.SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 20230141.OVE

51、RALL RESULTSIn 2023,the Companys operating revenues amounted to RMB513.6 billion,representing an increase of 6.7%year-on-year.Service revenues1 amounted to RMB465.0 billion,representing an increase of 6.9%year-on-year,maintaining growth for 11 consecutive years.EBITDA2 amounted to RMB136.8 billion,r

52、epresenting an increase of 5.0%year-on-year.Net profit3 amounted to RMB30.4 billion,representing an increase of 10.3%year-on-year,and the basic earnings per share were RMB0.33.Capital expenditure was RMB98.8 billion and free cash flow4 reached RMB13.0 billion.The Company attaches great importance to

53、 shareholder returns and strives to enhance its profitability and cash flow generation capabilities.Taking the Companys 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

54、Meeting that a final dividend of 2023 of RMB0.090 per share(pre-tax)shall be declared.Together with the 2023 interim dividend of RMB0.1432 per share(pre-tax),which has been already distributed,the full year dividend of 2023 amounts to RMB0.2332 per share(pre-tax),and the aggregate amount of the full

55、 year dividend increased by 19.0%year-on-year.This represents over 70%of the profit attributable to equity holders of the Company for the year,successfully fulfilling the profit distribution commitment made during the Companys A Shares issuance.Within three years from 2024,the profit distributed in

56、cash will gradually increase to above 75%of the profit attributable to equity holders of the Company for the year,striving to create more value for shareholders.1 Service revenues are calculated based on operating revenues minus sales of mobile terminals,sales of wireline equipment and other non-ser

57、vice revenues.2 EBITDA is calculated based on operating revenues minus operating expenses plus depreciation and amortisation.3 Net profit represents profit attributable to equity holders of the Company.4 Free cash flow is calculated based on EBITDA minus capital expenditure,income tax and depreciati

58、on charge for right-of-use assets other than land-use-rights.Over the past three years since its A Shares listing,the Company seized opportunities,upheld fundamental principles and broke new ground,and carried out expansion and upgrades,successfully fulfilling its commitment made during A Shares iss

59、uance,and continuously sharing new development achievements with shareholders,customers and the society.Service revenues maintained good growth and the compound growth rate for three years was higher than the industry average.The proportion of Industrial Digitalisation within incremental service rev

60、enues increased by 24.5 p.p.to reach 70.4%.Profitability remained strong,with net profit achieving double-digit growth for three consecutive years.Shareholders return increased significantly,with the dividend payout ratio increasing to over 70%within three years,and the compound growth rate of divid

61、end per share for three years reaching 31%,being the highest in the industry.The market capitalisation management achieved remarkable results,with its market capitalisation at the end of 2023 increasing to 3.2 times more than that at the end of 2020.2.FULLY IMPLEMENTED CLOUDIFICATION AND DIGITAL TRA

62、NSFORMATION STRATEGY,WITH NEW ACHIEVEMENTS IN CORPORATE HIGH-QUALITY DEVELOPMENTIn 2023,the Company firmly seized opportunities arising from growing demands for digital transformation and intelligent upgrades from the economy and society,gave full play to its edges in cloud-network integration and p

63、ushed forward upgrades of digital information infrastructure.Insisting on the leading role of sci-tech innovation,while harnessing driving forces from reforms and opening up,the Company effectively stimulated the vitality of its talent teams,comprehensively promoted green transformation and developm

64、ent,continued satisfying customers desires for a better new digital life,with its customer perception and service reputation continuing to elevate.Business revenue maintained steady growth and its operating capabilities were further strengthened,achieving new results in corporate high-quality develo

65、pment.SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 2023015Chairman Ke Ruiwen presented at Digital Technology Ecosystem Conference2.1 Continued to achieve new breakthroughs in sci-tech innovation to accelerate the formation of

66、 new quality productive forcesAnchoring on its vision and mission of building a technology-oriented enterprise,the Company promoted corporate high-quality development driven by sci-tech innovation.Focusing on digital information infrastructure,the Company strengthened breakthroughs in key core techn

67、ologies.With network as the foundation and cloud as the core,the Company promoted cloud-network integration and grasped the development direction of AI.Centring on four major technical directions of cloud,network,AI and quantum/security,the Company carried out deployment focusing on seven strategic

68、emerging industries including cloud computing and computing power,new generation information and communications,Big Data,AI,security,quantum and digital platform,as well as future industries.The Company increased the input of“new”elements.Research and development(R&D)expenses5 increased from RMB4.7

69、billion in 2020 to RMB13.1 billion in 2023,5 The growth rate of R&D expenses is calculated based on figures of R&D expenses in Chinese Accounting Standards.representing an increase of 175.6%for three years.The Company further strengthened the recruitment of high-end sci-tech talents.The aggregate nu

70、mber of leading sci-tech talents reached 138 in 2023,representing an increase of 392.9%for three years.The Company further intensified its efforts in the transformation of its workforce.The number of R&D personnel reached approximately 33,000,representing an increase of 174.5%for three years,with it

71、s proportion increasing to 11.8%from 4.2%in 2020.The Company led the“new”digital information infrastructure.Focusing on key areas such as cloud,network,AI,security and quantum,the Company strove to build a digital base with independent control of key core technologies and accelerated the constructio

72、n of digital information infrastructure with cloud-network integration as the core feature through the integration of various elements.The Company created“new”digital tools to empower the digital,intelligent and green corporation transformation.Driven by data and through AI empowerment,the Company c

73、ontinuously elevated the digital level of R&D,cloud-network operation as well as marketing services,to vigorously promote the upgrade of corporate services as well as costs reduction and efficiency enhancement.SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corp

74、oration Limited Annual Report 2023016Giving full play to the collaborative edges of the RDO6 system,the Company vigorously promoted the conversion and industrialisation of achievements.The number of invention patent applications exceeded 5,000 throughout the year.The Companys proprietary IT system a

75、nd business platforms accounted for 45.0%,up by 6.0 p.p.year-on-year.The Company initiated 98 projects in international standardisation organisations,ranking at the forefront among global operators.The Company achieved a series of groundbreaking sci-tech innovative achievements,which accelerated the

76、 formation of new quality productive forces,effectively boosting the rapid development of strategic emerging businesses and offering strong driving forces for the dual engines of fundamental businesses and Industrial Digitalisation business.2.2 Adhering to customer-oriented principles,with constant

77、driving forces from dual enginesSteady growth in fundamental businesses with brand-new upgrades as well as integration and mutual promotionThe Company proactively promoted upgrades of connectivity,applications,and user experience within its fundamental businesses,accelerated the brand-new upgrades o

78、f 5G and Smart Family,strengthened the integration and mutual promotion of smart community and digital village platforms and continued addition of high-quality digital products and scene-based services.In terms of the brand-new 5G,the Company launched innovative and featured applications such as 5G

79、Mobile Phones with Direct Satellites Connection and 5G Quantum-encrypted Calls and further promoted the scale development of computing products such as 5G Cloud Computer.The Company accelerated the intelligent upgrade of applications such as 5G Communications Assistant and Colour Ringback Tone with

80、Video.The Company stepped up the promotion of applications such as 5G Enhanced Calls and 5G Message to further consolidate its differentiated development edges.In terms of the brand-new Smart Family,the Company continued to promote the enhancement of capabilities of Gigabit network and scale penetra

81、tion,sped up Gigabit customers upgrade to FTTR.The Company further enriched cloud broadband applications such as Cloud Storage,Cloud Playback and Cloud Video,sped up the promotion of family AI and security products such as e-Surfing Webcam and Smart Smoke Detection,and further upgraded applications

82、and services of Whole-home intelligence.In terms of integration and mutual promotion,the Company further promoted the capabilities enhancement of digital platforms such as smart community and digital village.By accelerated addition of applications and services of platforms such as subdistrict cloud

83、and town cloud,convenient living circles,as well as elderly and child care,the Company promoted the integration and mutual promotion of multiple scenes such as rural and community management,community services and family applications to drive the scale development and value enhancement of fundamenta

84、l businesses.In 2023,revenues from the Companys fundamental businesses grew steadily with subscriber scale and value rising continuously.Mobile communications service revenues amounted to RMB195.7 billion,representing an increase of 2.4%year-on-year.Of which,revenues from mobile value-added and appl

85、ications amounted to RMB25.8 billion,representing an increase of 12.4%year-on-year.The net addition of mobile subscribers was 16.59 million,maintaining the industry-leading position for six consecutive years,and bringing the total number of subscribers to 408 million.Mobile ARPU7 reached RMB45.4,rep

86、resenting an increase of 0.4%year-on-year.Wireline and Smart Family service revenues amounted to RMB123.1 billion,representing an increase of 3.8%year-on-year.Of which,revenue from the Smart Family business reached RMB19.0 billion,representing an increase of 12.8%year-on-year.The number of broadband

87、 subscribers reached 190 million with a net addition of 9.26 million.Broadband blended ARPU8 reached RMB47.6,representing an increase of 2.8%year-on-year.6 RDO:fundamental research(R),applied technological research and development(D)and operational development(O).7 Mobile ARPU=monthly average revenu

88、es from mobile services/the average number of mobile subscribers.8 Broadband blended ARPU=monthly average revenues from broadband access,e-Surfing HD and Smart Family applications and services/the average number of broadband subscribers.SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE D

89、IRECTORS)China Telecom Corporation Limited Annual Report 2023017Rapid growth of Industrial Digitalisation business by firmly seizing opportunities arising from the integration of digital technologies and real economyLeveraging its edges in cloud-network integration,capabilities from strategic emergi

90、ng technologies,customer resources and localised services,the Company further enhanced its customer service capabilities while constantly promoted ecological cooperation to achieve leadership in terms of both capabilities and scale in key industries.This boosted the rapid development of its Industri

91、al Digitalisation business.The Companys government and enterprise services cover all major industries of the national economy.The number of government and enterprise customers continued to increase,with an increase of 11.3%year-on-year.China Telecom Cloud continued to achieve breakthroughs in key co

92、re technologies and further consolidated its leading market and customers scale.In the field of 5G applications,the Company fully created industry-leading scene-based customised network solutions to empower use cases such as HD video,data collection and control,unmanned inspection,dual domain switch

93、 and Internet of Vehicles.The number of newly added projects of 5G industry applications for the year increased by 106.3%year-on-year,with the aggregate number surpassing 31,000.The Company further upgraded its e-Surfing Artificial Intelligence of Things(AIoT)platform,providing one-stop IoT services

94、 comprising device access,connectivity management and application empowerment.This helps to achieve cross-field and cross-industry collaboration under the scene of Internet of Everything.The number of terminal users exceeded 520 million.The Companys e-Surfing Internet of Video Things(IoVT)effectivel

95、y supported the building of smart cities,with the aggregate number of subscribers for applications such as Kitchen Monitoring and e-Surfing Emergency Response exceeding 77 million.Focusing on over 10 key industries such as government administration,industry and education and more than 100 subdivisio

96、ns,the Company intensified its efforts in R&D,construction as well as continued iteration of platforms,with emerging technologies as the core foundation.In 2023,the Companys Industrial Digitalisation business maintained rapid growth,with its revenue reaching RMB138.9 billion,representing an increase

97、 of 17.9%year-on-year and accounting for 29.9%of service revenues,up by 2.8 p.p.over last year.Its incremental contribution to service revenues increased to 70.4%from 51.6%in 2021.The revenue of the Companys China Telecom Cloud amounted to RMB97.2 billion,representing an increase of 67.9%year-on-yea

98、r.Revenues from international businesses exceeded RMB13.7 billion.2.3 Fully completed the deployment of strategic emerging businesses,with further strengthened new market momentumChina Telecom Cloud empowered thousands of industries with“computing power”and embarked on a new journey with“intelligenc

99、e”The Company developed China Telecom Cloud as the source of original cloud computing technologies with high quality and made constant breakthroughs in key technologies.With its proprietary cloud operating system TeleCloudOS 4.0 as the core,the Company has fostered a full-stack cloud technologies an

100、d products system that is technologically advanced,independent and controllable,building a cloud foundation that features multi-chip architecture in one cloud,polymorphism and multi-type computing in one cloud.China Telecom Cloud served thousands of industries for cloud migration and the use of clou

101、d,ranking among the top in the market,with China Telecom Cloud being the framework of national cloud fully taking shape.Focusing on new requirements to cloud service providers in the era of large models,China Telecom Cloud has fully upgraded to an intelligent cloud.The Company developed“Yunxiao”,an

102、intelligent computing acceleration platform integrating cloud,intelligent computing and supercomputing,providing the supreme computing power and highly-efficient operation and maintenance tools adapting to AI use cases.The Company also launched“Huiju”,a one-stop intelligent computing service platfor

103、m,providing large model developers with a training and inferencing tool chain that is one-stop,fully linked,low-threshold and highly secured.The Company upgraded“Xirang”,a computing power distribution network platform,to fully support the unified access,packaging and scheduling of general computing,

104、intelligent computing,and supercomputing,providing computing power operators with computing power connection and trading services.This has facilitated better utilisation of computing power resources,the realisation of computing power inclusion,the efficiency enhancement of computing power supply and

105、 the interconnection of computing power from multiple parties.The Company carried out R&D of“Zhenshi 3.0 SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 2023018engine”,a new-generation image and streaming fusion9 algorithm,drivi

106、ng the growth of cloud computer users by more than two times year-on-year,ranking first in Chinas DaaS market,with a market share of nearly 40%.China Telecom Cloud maintained its leading market positions,including the No.1 ranking in government and administration public cloud infrastructure and the

107、No.1 ranking in the global telco cloud.China Telecom Cloud was the only one among the top three players in the domestic public cloud IaaS and IaaS+PaaS market to have achieved continuous growth in market share10.Empowered the digital transformation of the economy and society at depth with the use of

108、“data”and injection of“intelligence”The Company firmly seized the development opportunities in the era of AI and accelerated R&D of technologies as well as launch of applications in fields of AI and Big Data by fully leveraging the multiplier effect of data elements.The Company created the“1+N+M”11

109、Xingchen large models series product portfolio and established the base for the general-purpose large foundation model,covering four major capabilities including language,speech,visual and multimodal capabilities,while achieving open source.The Company rolled out 12 large vertical models in vertical

110、 fields such as government administration,education and transportation,while empowering more than 600 projects for use cases such as grassroots governance,smart customer service and smart city.The Company released“Xingchen MaaS platform”,providing customers with services such as one-stop large model

111、 R&D and applications including computing power,algorithms,data and tools.The Company launched 9 large models for its own use focusing on internal production and operation including network operation,operational analysis and code R&D to help itself accelerate digital transformation and push forward

112、costs reduction and efficiency enhancement.The Company also strengthened R&D of core technologies of Big Data,sped up the deployment in the data elements market.Focusing on four major fields including Big Data PaaS,data core platform,data trading and flow and data security,the Company strove for bre

113、akthroughs in core technologies and passed the DCMM5 level certification,the highest level in national data governance.The total number of Big Data API accessed reached 4.6 billion times throughout the year,representing an increase of 45%year-on-year.The Company developed more than 50“Xinghai Big Da

114、ta”products to offer services such as financial risk control and regional insights.“Lingze data elements 2.0 platform”provided data trading service covering the whole business process and was ranked No.1 among service providers of the data elements ecology in 202312.The Companys“data product superma

115、rket”has been promoted and launched in 9 provinces and cities,supporting the aggregation,development and trading of data resources for customers.Further elevated the level of integrated security protection capabilities by“forging shields with quantum”The Company continued to build an integrated end-

116、to-end collaborative security protection system.It has developed security capabilities and services in 7 major categories and more than 50 subdivisions around key products such as Anti-DDoS Cloud Dam and Security Brain.Its Anti-DDoS Cloud Dam maintained the No.1 ranking in terms of market share in C

117、hina and was included in Gartners list of global top service providers selection.The Company built the industrys first managed security service platform at the operator level,creating an“O2O”integrated managed security service model featuring“cloud operation experts+localised services”.The Company i

118、ntensified its efforts in achieving breakthroughs of original technologies in the field of quantum.Its quantum computing cloud platform,“Tianyan”,achieved super fusion13 which enabled the significant increase in the processing speed of superconducting quantum computers.The Company built quantum comm

119、unications infrastructure at the municipal level with“quantum-network integration”,providing industry customers with security services such as information transmission and data storage.The Company strengthened professional consolidation and 9 Image and streaming fusion:with an aim to provide the bes

120、t user experience,the cloud computer dynamically balances multiple dimensions such as image quality and smoothness and automatically selects desktop compression and transmission algorithms,according to the network and desktop application status.10 Source of market share data of China Telecom Cloud:I

121、DC.11 1+N+M:1 refers to the general-purpose large foundation model.N refers to the number of large vertical models.M refers to the number of large models for own use.12 Source of rankings of data elements service providers:Internet Weekly.13 Super fusion:the fusion of the supercomputing power of Chi

122、na Telecom Cloud and superconducting quantum computing capabilities with 176 quantum bits.SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 2023019forward-looking deployment in the field of quantum technology,initiated the acquisi

123、tion of Quantumctek Co.,Ltd.,strengthened breakthroughs in technological and application innovation,and expanded the space for quantum business development.Innovative breakthroughs in new-generation information and communications technologiesThe Company continued to deepen the cultivation of new-gen

124、eration information and communications technologies to provide more versatile all-domain access capabilities.It further promoted the capabilities building and application innovation of the aerial-ground integrated information network.The Company created the industrys first“Satellite as a Service S+”

125、concept and continued to achieve breakthroughs in key technologies in fields such as satellite network system operation.The Company launched the worlds first commercial service of“Mobile Phones with Direct Satellites Connection”at the operational product level,which supports direct satellites connec

126、tion for consumer-grade 5G terminals with two-way voice calls and text messages.This provided emergency response and communications assurance for industries such as maritime transport,industry and rescue as well as for public users.The Company proactively planned for innovations in key directions of

127、 5G-A,carried out deployment in carrier aggregation,pushed forward the innovative application of cross-domain unified scheduling of resources from the time,frequency and spatial domain,significantly enhancing user experience.The Company completed the scale trial for RedCap on current network with mu

128、ltiple frequencies,multiple carriers and multiple manufacturers,created demonstrative applications in a number of industries such as steel,petrochemical and port,and pushed forward the deployment for scale commercialisation.The Company took the lead to complete the 5G NR NTN test and verification ba

129、sed on real satellites.The Company carried out trials for technologies such as low-altitude communications,sensing and communications integration and NTN,to accelerate the maturity for 5G-A commercialisation.The Company strove for breakthroughs of R&D for key technologies in 6G.The Company continued

130、 to take the lead in setting standards in key fields such as super uplinks,enhanced coverage,as well as co-building and co-sharing.The Company carried out proprietary R&D of the simulated verification system for 6G,realising compatibility to potential key features of 6G,and creating practice and inn

131、ovation demonstration based on current network environments in areas such as aerial-ground integration and near-field cellular.Effectively empowering customers digital transformation and upgrades with digital platformsThe Company further intensified its efforts in technological R&D and function iter

132、ation of digital platforms and developed more than 110 key digital platforms to empower the digital transformation and upgrades at scale for customers from fields such as government administration,enterprises,education,healthcare and finance.In the field of digital government administration,the Comp

133、any strengthened technological empowerment and product integration and innovation services,continued to provide and upgrade resources pools and platforms of China Telecom government administration cloud,and has already provided more than 20 provinces and over 220 cities with various integrated appli

134、cations such as access to services via a single website,management via a single website,collaboration via a single website as well as urban operation,management and services.In the field of new industrialisation,the Company provided network-based connectivity for various enterprises through 5G defin

135、itive network and proprietary industrial PON.In terms of intelligent transformation,the Company built a unified database for industrial protocols and statutes and achieved scale application of its proprietary e Cloud Collection terminals in 15 industries,realising real-time and accurate collection o

136、f production data.At the same time,leveraging its proprietary e Cloud Control platform,the Company vigorously promoted cloud-based decoupling and the application of AI for PLC,and has launched 12 use cases for industries such as tobacco and steel,achieving unified control among equipment.In the fiel

137、d of healthcare,the Company assisted the Health Commissions at all levels to build the universal health information platform and the close-type county-level medical community to realise the interconnection of regional healthcare data,with a coverage of 25 provinces.In many other fields such as educa

138、tion,transportation and logistics,culture and tourism,smart community,and digital village,the Company continued to build and deepen the application capabilities of industry-specific platforms.SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited An

139、nual Report 20230202.4 Expedited the intelligent upgrade of digital information infrastructureThe Company accelerated the intelligent transformation of digital information infrastructure and consolidated digital foundation to forge key cornerstones for the development of new quality productive force

140、s.The Company proactively built the distributed computing power infrastructure with cloud-intelligence integration,training-inferencing integration as well as cloud-network-edge-terminal coordination.Focusing on the hub node regions of the national integrated computing power network,the Company stre

141、ngthened the building of intelligent computing capabilities.The Company added 8.1 EFLOPS of intelligent computing power throughout the year,bringing the total to 11.0 EFLOPS,representing an increase of 279.3%.Nodes in Beijing,Shanghai,Jiangsu,Guizhou,Ningxia and Inner Mongolia have already possessed

142、 training resources of over a thousand GPUs.In regions such as Beijing-Tianjin-Hebei,the Yangtze River Delta and Guangdong-Hong Kong-Macau where the large model industry,technologies and talents concentrate,the Company accelerated the deployment of the new generation large-scale intelligent computin

143、g clusters.The liquid-cooling intelligent computing centre with ten-thousand GPUs in one single pool in Shanghai will be in operation in 2024.The Company advanced the revolution and upgrades of datacentres to become Artificial Intelligence Datacentres(AIDC).The Company proactively built the new-gene

144、ration datacentres that support the hybrid mode of air and liquid cooling with“Two-Elastic-One-Optimised”14,achieving elastic and adaptive capabilities that enable the average power for one single cabinet to range from 2kW to 50kW+,flexibly meeting requirements for the scale and centralised deployme

145、nt of general computing,intelligent computing,and supercomputing power.The Company built a network of intelligent computing centres that is high-speed,lossless,and elastic,while also optimised its DCI networks with large bandwidth,wide coverage,low latency and high reliability.The Company continued

146、the building of latency circles with 1ms/10ms/15ms latency for the east-west direction traffic and 1ms/5ms/20ms latency for the south-north direction traffic15.The average mutual access latency among hub nodes of“East-to-West Computing Resource Transfer”was 14 Two-Elastic-One-Optimised:elastic power

147、 supply,elastic cooling,optimised air distribution.15 East-west direction traffic:data traffic between datacentres.South-north direction traffic:data traffic between external users and datacentres.16 The industrys common calculation method has been applied for computing power.Intelligent computing p

148、ower is calculated using FP16,while general computing power is calculated using FP32.reduced by more than 10%year-on-year.The Company steadily pushed forward the building of general computing power capabilities,with the number of cities covered by“One-City-One-Pool”reaching 280 and the number of edg

149、e nodes surpassing 1,000.The Company added 1.0 EFLOPS of general computing power throughout the year,bringing the total to 4.1 EFLOPS16,representing an increase of 32.3%.The Companys security capability pools carried out software and hardware decoupling for industry mainstream security products to a

150、chieve unified configuration,setting,operation,maintenance and management,as well as flexible output of customised security capabilities,with its business covering more than 200 cities.The Company fully strengthened the digital transformation and construction of its cloud-network.It completed the fu

151、ll launch and application of its proprietary new generation cloud-network operating system that enables SDN-based,scalable and unified control of major networks such as IP,transmission and 5G.The Company also accelerated the application of new technologies,such as AI large models to the cloud-networ

152、k operating system.The Company released“Qiming”,the first large network model within the information and communications sector,to empower scenes such as emergency scheduling,network optimisation and product delivery.The overall level of automation and intelligence of its cloud-network operation reac

153、hed L3 while the level of automation and intelligence of some scenes such as 5G Core reached L4,further enhancing its cloud-network operation capabilities.The Company continued to deepen network co-building and co-sharing with China Unicom to continuously enhance the depth and breadth of its 5G cove

154、rage.It also accelerated the consolidation and co-sharing of“one single 4G mid-band network”to jointly create 4G/5G co-shared networks that lead in terms of user experience,efficiency,and technologies.The cumulative savings of investment for both parties reached over RMB340 billion,while the annuali

155、sed savings of operating costs exceeded RMB39 billion.The number of newly built 5G base stations was over 220,000 throughout the year,and the number of 5G base stations in use exceeded 1.21 million,achieving contiguous SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Tel

156、ecom Corporation Limited Annual Report 2023021coverage for townships and above,as well as effective coverage for developed administrative villages.The number of co-shared 4G mid-band base stations exceeded 2 million,with the mid-band co-sharing rate exceeding 90%.The two parties jointly promoted the

157、 precise construction and optimisation in key locations such as airports,high-speed railways and hospitals.As a result,the satisfaction rate of its mobile network quality increased steadily with benefits of co-building and co-sharing being further unleashed.In addition,the Company proactively pushed

158、 forward the refarming of its 800MHz spectrum and obtained approval in August 2023 to refarm its 800MHz spectrum for 5G use.As of January 2024,the Company has built 250,000 800MHz base stations with 4/5G integrated service capabilities,significantly enhancing network coverage and user experience in

159、rural areas.2.5 Deepened corporate reforms and opening up on all fronts to continue unleashing vitality for high-quality developmentThe Company deepened reforms in key fields and processes on all fronts,fully and successfully completed the three-year action programme of state-owned enterprise(SOE)re

160、forms,and planned and pushed forward key tasks in the new round of deepening and enhancing action of SOE reforms.The Company strengthened the building of customer-oriented organisations,processes and mechanisms,and continued to foster comprehensive edges in system integration aggregating professiona

161、l capabilities,industry capabilities,ecological capabilities as well as sales and servicing capabilities.The Company continued to optimise the building of its organisational system,strengthened functional reforms of its headquarters to further enhance the impact on fields such as sci-tech innovation

162、,business promotion,talent development and corporate governance.The Company fully promoted the optimisation of main processes with cloud core platform as the hub and elevated the level of end-to-end integration delivery,operation and service.The Company established the AI company,quantum technology

163、group,IoVT company and unmanned technology company.Four industry business groups(BGs)for government and enterprise including healthcare,education,finance as well as government administration took the lead in achieving market-oriented and corporate operation.This has given full play to the autotomy i

164、n areas such as industrial cooperation,talent recruitment as well as compensation and incentives,elevating the level of sci-tech breakthroughs,market expansion and professional capabilities.The Company also accelerated the digital and intelligent transformation of its operation and management,optimi

165、sed its corporate data governance system,enhanced the value of data elements and created an intelligent,agile,and highly efficient digital sales and marketing service model.The proportion of user acquisition for fundamental businesses from online increased by 11.5 p.p.year-on-year,while the proporti

166、on of AI smart customer service increased by 12.6 p.p.year-on-year.The Companys proprietary smart AI system enabled precise energy savings,resulting in annualised electricity savings of approximately 800 million kWh for AI facility rooms and base stations.Through strengthened digitalisation of eleme

167、nts and smart management,the Companys operating efficiency continued to increase.The Company deepened market-oriented reforms of organisations and mechanisms,promoted the implementation of mechanisms such as“open bidding for selecting the best candidates”in the field of sci-tech innovation.The Compa

168、ny vigorously implemented the project of promoting corporate strength through talents and achieved breakthroughs in the recruitment of strategic top talents in fields such as cloud computing,AI and quantum.Through innovative mechanisms such as the chief technician system,the talent special zone and

169、the talent workstation,the Company created a big stage for experts and talents to carry out their work and get the job done.The Company further deepened reforms of talent development system and mechanism and laid a solid talent foundation for the high-quality development and strategy implementation

170、of the Company.Insisting on balancing responsibilities,rights and interests with a dual emphasis on using incentives and constraints,the Company refined its market-oriented employment mechanism,optimised its remuneration mechanism to become more precise,flexible,standardised and efficient to fully s

171、timulate the vitality of employees.The Company expedited the open cooperation at a high level,creating win-win ecological patterns in areas such as sci-tech innovation,exchange of talents and business ecology.The number of members of the World Broadband Association(WBBA)increased to 77,spanning 32 c

172、ountries in 5 continents.The association published the WBBA World Cloud-Network Broadband Industry Development Report and World Cloud-network Development Index to advance global cooperation in digital governance.The Company continued to deepen collaboration among industry,academia,and research insti

173、tutes,establishing joint laboratories with leading SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 2023022scientific research institutions and enterprises to achieve breakthroughs in key technologies such as intelligent computin

174、g network,satellite Internet and large models.The Company also strengthened the exchange and cooperation of talents,joining hands with leading universities to carry out joint academia-enterprise training projects with a focus on the field of emerging technologies.The Company carried out business and

175、 channel cooperation in key areas,promoting cooperation across the industrial chain and supply chain to further extend into the upstream and downstream of the innovation chain and service chain,while supporting the co-development of products and applications as well as the co-sharing of earnings and

176、 value.The Company deepened the cultivation of international businesses,with its business covering major countries and regions around the world.The Company has established 53 branches overseas,serving customers growing demands for services such as communications,Internet,cloud computing and digital

177、transformation in the international market.The Company accelerated the construction of overseas digital information infrastructure,with the total capacity of its international transmission network backbone reaching nearly 115Tbps,of which over 50%was along“the Belt and Road”direction.The Company has

178、 more than 6,000 cabinets in nearly 30 overseas facility rooms around the world.The Company vigorously pushed forward China Telecom Clouds expansion into the overseas markets.The number of newly added China Telecom Cloud global CDN nodes was 15 for the year.The Company also proactively promoted the

179、launch of strategic emerging businesses such as satellite communications and IoT in overseas markets.2.6 Insisted on the green development principles to empower green transformation of the economy and societyIn line with the global trends of green and low-carbon transformation,the Company proactivel

180、y implemented the green development principles.Focusing on the national“dual carbon”goals,the Company promoted corporate low-carbon operation and empowered the green development of the whole society.The Company deepened efforts to achieve breakthroughs in key green and low-carbon technologies as wel

181、l as the conversion of achievements.The Company has developed a series of proprietary green and low-carbon products such as e Secure Energy,e Energy Saving,e Extreme Cooling and 5G Integrated Smart Power Supply Cabinet.The Company established and optimised a green and low-carbon standard system,part

182、icipated in setting Chairman Ke Ruiwen introduced China Telecoms efforts in supporting the high-quality development of the computing power industrySECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 2023023nearly 30 national,industr

183、y and enterprise standards in total in areas of dual carbon,and established a green and zero-carbon innovative experimental base in Qinghai.The Company continued to accelerate the green upgrade of cloud-network and created efficient,intelligent,green and low-carbon networks with end-to-end dynamic a

184、djustability as well as automated energy-saving.Through co-building and co-sharing,as well as various energy saving measures,the Company reduced its greenhouse gas emissions by more than 13 million tons,while greenhouse gas emissions per unit of total volume of telecommunications services decreased

185、by 19.6%year-on-year.The Company also supported the society to reduce greenhouse gas emissions by over 100 million tons.By continued optimisation of energy consumption structure,the consumption volume of green electricity with“integration of trading of permit and electricity”throughout the year exce

186、eded 1.1 billion kWh,representing an increase of nearly 3 times year-on-year.The Company intensified the recycling of resources and optimised the building of green packaging and waste disposal systems.The Company enhanced the green elements in digital products and launched a series of green and low-

187、carbon products and solutions.The Company rolled out green products such as Green Cloud Drive,Green Cloud Computer and Zero-carbon Datacentres.The Company also developed green and environmental protection solutions such as the management platform of energy consumption and carbon emissions,the monito

188、ring and management system of air/water pollution source and the biodiversity monitoring platform.The number of project signings exceeded 3,000,serving customers from industries such as government,industrial manufacturing and construction.This empowered application fields such as ecological protecti

189、on,pollution prevention and control,energy conservation and carbon reduction,supporting the green and low-carbon transformation of thousands of industries.3.PROACTIVELY UNDERTOOK SOCIAL RESPONSIBILITIES WHILE CONTINUOUSLY ENHANCED CORPORATE GOVERNANCEThe Company successfully completed communications

190、 assurance tasks for key events.It utilised satellite communications,drones and other technologies to effectively assist flood fighting and disaster relief efforts during times of natural disasters such as the Beijing-Tianjin-Hebei flood and Jishishan earthquake.The Company effectively supported rur

191、al revitalisation,popularised digital services and narrowed the digital divide between urban and rural areas.The Company promoted the building of digital villages,with the penetration rate of administrative villages exceeding 60%.The Company has achieved the highest rating for the review and assessm

192、ent of targeted support carried out by central units for 5 consecutive years.The Company has been committed to social welfare and proactively helped the disabled and underprivileged.The Company initiated the launch of“Public Welfare Union of Caring Stations”,and 96 of its“Caring Stations”have been a

193、warded the title of“Most Beautiful Trade Union Outdoor Worker Service Station”by the All-China Federation of Trade Unions.The Company protected the rights and interests of its employees in accordance with the law,and created a comprehensive system for employee care,while continuing to enhance its in

194、stitutional safeguards.The Company created career development paths for employees and strove to achieve the mutual growth of employees and the Company.Insisting on high-standard corporate governance while adhering to excellent,prudent and effective corporate governance principles,the Company maintai

195、ned compliance and efficient operation of its Shareholders Meeting,Board of Directors and Supervisory Committee,and continued to optimise its corporate governance system,while cultivating and further reinforcing the culture of compliance.The Company also further enhanced its risk prevention level wi

196、th more stable corporate operation.The Company attaches great importance to the management of market capitalisation and held roadshows and reverse roadshows activities for domestic and overseas investors and equity analysts.The Company continued to increase the frequency of communications between th

197、e Company and investors,while also enriched the forms of communications,creating multi-dimensional and matrix investor communications channels.The Company actively listened to the voice of investors,proactively fulfilled various commitments made to the capital market and effectively safeguarded the

198、best and long-term interests of its shareholders.The Company received high affirmation and recognition from domestic and international capital markets and industry organisations for its relentless efforts and outstanding performance.It was voted as the“Most Honoured Companies in Asia”for the 13th co

199、nsecutive year in the“All-Asia-Executive Team Poll 2023”organised by Institutional Investor.The SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 2023024Company also received top rankings in the“Best Board of Directors”,“Best IR T

200、eam”and“Best ESG”categories.Furthermore,the Company was awarded“Best Investor Relations Team”and“Best Social Responsibility Initiative”in The Assets“ESG Corporate Awards 2023”.It was accredited“Golden Bull Most Investment Value Award”and“Golden Bull Award for Hong Kong Stocks”in the Golden Bull Awar

201、d poll organised by China Securities Journal.At the same time,the Company was awarded the“Best Practise of the Board of Directors for Listed Companies in 2023”by the China Association for Public Companies.4.OUTLOOKIn a boat race,those who row the hardest will win.When a thousand boats set sail,the b

202、oat which advances bravely will win.China has edges such as great market potential,complete industrial system and versatile high-quality human resources.With the rapid formation and accelerated growth of new momentum,the intrinsic impetus and vitality for development are further strengthened.With th

203、e rapid development of digital technologies such as AI,cloud computing,Big Data,and quantum information,new technologies and applications continue to emerge.Digital and intelligent transformation of the economy and society is in great demand,which will bring greater space for the development of the

204、industry.The Company is in an important period of opportunities of promoting high-quality development.Facing the future,the Company will proactively seize the development trends of the new round of sci-tech revolution and industrial transformation and firmly seize opportunities arising from the deve

205、lopment of industries in the process of supporting the advancement of Chinese modernisation.The Company will continue to deeply implement its Cloudification and Digital Transformation strategy,anchoring its mission and vision of building a service-oriented,technology-oriented,and secured enterprise.

206、With network as the foundation and cloud as the core,the Company will grasp the direction of AI development and innovate the supply of products and services.The Company will satisfy the demands for digitalisation from thousands of families and thousands of industries leveraging“network+cloud+AI+appl

207、ications”.The Company will put sci-tech innovation at a more prominent position and further open up the big cycle of technology,product and industry.The Company will accelerate the fostering and development of new quality productive forces according to its own conditions,speed up the scale expansion

208、 of strategic emerging businesses and further create new momentum and edges for development.The Company will deepen the transformation and upgrades of its digital information infrastructure,enhance the green and low carbon capabilities of its cloud-network,and build the key foundation for Digital Ch

209、ina.The Company will deepen reforms and opening up on all fronts,comprehensively push forward high-quality development,and further enhance its core functions and core competitiveness.The Company will accelerate the building of a world-class enterprise,further enhance corporate value and proactively

210、bring returns to shareholders.Finally,on behalf of the Board of Directors,I would like to take this opportunity to express our sincere appreciation to all shareholders and customers for their continued support,and our sincere thanks to all our employees for their hard work and contributions.Furtherm

211、ore,I would also like to extend our sincere gratitude towards Mr.Xia Bing for his outstanding contributions to the Companys transformation and upgrades as well as continued development made during his tenure.Ke RuiwenChairman and Chief Executive Officer Beijing,China26 March 2024SECTION III MANAGEME

212、NTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 20230252.OVERVIEW OF THE COMPANYS INDUSTRY DURING THE REPORTING PERIOD1.INDUSTRY OVERVIEWIn 2023,the volume and revenue of telecommunications businesses of the communications industry achieved a stead

213、y growth,with positive growth in investment for five consecutive years.The construction of new network infrastructure such as computing power was accelerated,and the scale of 5G and Gigabit subscribers maintained rapid growth,making solid progress in high-quality development.The development of the t

214、elecommunications industry achieved significant enhancement of quality and efficiency.Firstly,both volume and revenue of telecommunications businesses achieved growth.The total volume of telecommunications businesses calculated based on the price of the previous year increased by 16.8%year-on-year,w

215、hich strongly drove the recovery and growth of the service industry.The revenue from telecommunications businesses for the year amounted to RMB1.68 trillion,representing an increase of 6.2%year-on-year.Secondly,the supporting role of emerging businesses was consolidated.The industry achieved promine

216、nt results in expanding the digital transformation services,with the business structure showing the characteristics of being driven by“three wheels”including mobile Internet,wireline broadband access and emerging businesses such as cloud computing.Thirdly,new breakthroughs in promoting industrial de

217、velopment were achieved through sci-tech innovation.By increasing efforts in sci-tech R&D,the industry made advanced deployment in emerging fields,strengthened key technological R&D,and achieved a number of innovation breakthroughs.The industry appropriately advanced the deployment of new infrastruc

218、ture on a large scale.Firstly,the coverage of“dual-Gigabit”networks continued to optimise.FTTR moved to the user promotion stage,propelling the launch of Smart Family applications such as HD Video and Smart Home.The Gigabit fibre network supported thousands of industries and empowered the digital tr

219、ansformation of the society.Secondly,the computing power network achieved an initial leap.The industry strengthened the coordinated enhancement of computing power,storage capacity and network bandwidth,creating a all-fibre foundation with the integration of computing power network and cloud-network

220、integration.The industry carried out coordinated deployment of general computing power and intelligent computing power,commenced the construction of the ultra-large-scale intelligent computing centre,and continuously optimised the supply structure of computing power.Thirdly,the industry built an AI

221、infrastructure system.The industry explored new models of AI applications through the combination of internal application and external empowerment,promoted the integrated development of“cloud,network and intelligence”,and comprehensively transformed to the“AI+”strategy.The proportion of dual-Gigabit

222、 and IoT users increased rapidly.Firstly,5G mobile phone users accounted for nearly half of the total.By the end of 2023,the number of mobile phone users in China reached 1,727 million.The 5G migration of mobile phone users accelerated,with the number of 5G mobile phone users reaching 805 million.Se

223、condly,Gigabit users accounted for more than a quarter.By the end of 2023,the number of wireline broadband access users reached 636 million,while the number of users with access speed of 1000Mbps and above reached 163 million.Thirdly,the proportion of IoT terminal connections was nearly 60%.By the e

224、nd of 2023,the total number of mobile network terminal connections in China reached 4,059 million,of which the number of cellular IoT terminal users reached 2,332 million,and cellular IoT terminals were widely used in public services,Internet of Vehicles,smart retail,smart home and other fields.The

225、development and upgrade of converged applications accelerated.Firstly,data traffic consumption continued to be active.In 2023,the access data traffic of mobile Internet users reached 301.5 billion GB,representing an increase of 15.2%over last year.the average access data traffic per user per month(a

226、lso known as dataflow of usage,DOU)reached 16.85 GB,representing an increase of 10.9%over last year.Secondly,the expansion of industry converged applications deepened.5G industry applications evolved from single demonstration to large-scale replication in some fields.The number of 5G application cas

227、es exceeded 94,000.5G applications have been integrated into 71 out of the 97 national economic categories,covering 70%of major industries,and achieving scale replication in industries such as mining,electricity and ports.The coverage of 31 provinces(regions and municipalities)and all prefecture-lev

228、el cities has been achieved.Note:The above data are from MIITs Statistical Communique of the Communications Industry in 2023 and its interpretations.SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 20230262.SIGNIFICANT IMPACT OF

229、NEW LAWS,ADMINISTRATIVE REGULATIONS,DEPARTMENTAL RULES AND INDUSTRY POLICIES ON THE INDUSTRYDuring the Reporting Period,a number of laws,administrative regulations,departmental rules and departmental normative documents were promulgated and implemented,introducing new requirements for the developmen

230、t and compliance operation of the industry.On 29 December 2023,the Company Law of the Peoples Republic of China was amended and adopted at the seventh meeting of the Standing Committee of the 14th National Peoples Congress,which will come into effect on 1 July 2024.The newly revised Company Law impr

231、oved the company capital system,establishment and withdrawal system,relevant provisions of state-funded companies and relevant provisions of corporate bonds,optimised corporate governance,strengthened the protection of shareholders rights,and strengthened the responsibilities of controlling sharehol

232、ders,actual controllers,directors,supervisors and senior management.On 16 October 2023,the State Council promulgated the Regulation on the Protection of Minors in Cyberspace(the“Regulation”),which came into effect on 1 January 2024.The Regulation put forward requirements for Internet products and se

233、rvices providers,personal information processors,intelligent terminal product manufacturers and sellers in terms of promoting the Internet literacy of minors,strengthening the construction of Internet information and content,protecting personal information of minors,and preventing minors from addict

234、ing to the Internet.On 10 March 2023,the State Administration for Market Regulation promulgated the Provisions on the Examination of Concentrations of Undertakings,the Provisions on Prohibiting Monopoly Agreements and the Provisions on Prohibiting Abuse of Dominant Market Positions,which became effe

235、ctive on 15 April 2023.The Provisions on the Examination of Concentrations of Undertakings took into account the overall situation of practices,adding capabilities to master and control data processing as a new special consideration when the market regulatory authorities analyse and make decisions o

236、n market control,market entry and additional restrictive conditions.The Provisions on Prohibiting Monopoly Agreements improved relevant regulations on the development of data,algorithms and other technologies,and required that operators shall not use data and algorithms,technologies and platform rul

237、es to reach relevant monopoly agreements.The Provisions on Prohibiting Abuse of Dominant Market Positions strengthened the restrictions on the abuse of dominant market positions in the field of data,and clarified that operators with dominant market positions shall not use data and algorithms,technol

238、ogies and platform rules to engage in related abuse of dominant market positions.On 25 June 2023,the State Administration for Market Regulation issued the Provisions on Prohibiting the Abuse of Intellectual Property Rights to Exclude or Restrict Competition,which became effective on 1 August 2023.Th

239、e Provisions on Prohibiting the Abuse of Intellectual Property Rights to Exclude or Restrict Competition expanded the connotation of“abuse of intellectual property rights to exclude or restrict competition”,improved the rules for determining monopolistic conducts by means of exercising intellectual

240、property rights,and strengthened the regulation of typical and special monopolistic conducts in the field of intellectual property rights.Management introduced the development of China Telecoms strategic emerging businessesSECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China

241、 Telecom Corporation Limited Annual Report 2023027On 10 July 2023,seven departments including the Cyberspace Administration of China jointly announced the Interim Measures for the Management of Generative Artificial Intelligence Services(the“Interim Measures”),which came into effect on 15 August 202

242、3.The Interim Measures regulated the development and governance of generative AI technologies and contents such as service specifications of generative AI service providers.On 3 January 2023,16 departments including the Ministry of Industry and Information Technology jointly issued the Guiding Opini

243、ons on Promoting the Development of the Data Security Industry,which proposed that by 2025,the fundamental capabilities and comprehensive strength of the data security industry shall be significantly enhanced,the industry ecology and innovation system shall be initially established,and the product a

244、nd service supply capabilities shall be greatly improved.By 2035,the data security industry shall enter a prosperous and mature stage,the data security industry policy system shall be further improved,and the awareness and application capabilities of data security applications in various fields shal

245、l be significantly improved.On 13 March 2023,the Ministry of Industry and Information Technology issued the Regulations on Handling Reports on Illegal Acts in the Telecommunications Field(the“Regulations on Handling Reports”),which came into effect on 1 June 2023.The Regulations on Handling Reports

246、clarified the basic requirements,acceptance requirements,handling procedures,processing time limit and other contents for the telecommunications authorities in handling reports on illegal acts in the telecommunications sector,and optimised the supervision mechanism for the compliance operation of te

247、lecommunications operators in accordance with the law.On 1 August 2023,the Ministry of Finance issued the Interim Provisions on Accounting Treatment Relating to Enterprises Data Resources(the“Interim Provisions”),which came into effect on 1 January 2024.The Interim Provisions clarified the condition

248、s for the recognition of data resources and the relevant accounting treatment,and required enterprises to conduct accounting recognition,measurement and reporting of data resources-related transactions and matters in accordance with the provisions,and present and disclose them in the balance sheet a

249、ccordingly.The Company will conscientiously implement the relevant newly issued and revised laws,administrative regulations,departmental rules and industry policies,and proactively follow and study the relevant upcoming laws,administrative regulations,departmental rules and industry policies to ensu

250、re that the relevant business operations are in compliance with laws and regulations and that the Company operates in compliance with laws and regulations.3.BUSINESS OF THE COMPANY DURING THE REPORTING PERIODIn 2023,the Company firmly seized opportunities arising from the growing demands for digital

251、 transformation and intelligent upgrade of the economy and society,gave full play to its edges in cloud-network integration and adhered to the green development principles.The Company insisted on the leading role of sci-tech innovation,harnessed driving forces from reforms and opening up,and further

252、 upgraded the digital intelligent applications and services for 2C/2H/2B/2G customers.Business revenues achieved steady growth,with continuous enhancement of operating capabilities,and new achievements in corporate high-quality development.With accurate insight into user demands,the Company proactiv

253、ely promoted upgrades of connectivity,applications,and user experience within its fundamental businesses.The Company further accelerated the brand-new upgrades of 5G,launched innovative and featured applications such as 5G Mobile Phones with Direct Satellites Connection and 5G Quantum-encrypted Call

254、s,and continued to promote the intelligent upgrade of applications such as 5G Communications Assistant and Colour Ringback Tone with Video,so as to consolidate differentiated development advantages.The Company further accelerated the brand-new upgrades of Smart Family,continued to promote the enhanc

255、ement of capabilities of Gigabit network and scale penetration and strengthened the expansion of Smart Family applications and service upgrades.The Company enriched cloud broadband applications such as Cloud Storage,Cloud Playback and Cloud Video,strengthened the promotion of family AI and security

256、products such as e-Surfing Webcam and Smart Smoke Detection,and accelerated the upgrade of applications and services of Whole-home Intelligence.The Company continued to deepen the integration and mutual promotion of digital platforms such as smart community and SECTION III MANAGEMENTS DISCUSSION AND

257、 ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 2023028digital village.By accelerated addition of applications and services of platforms such as subdistrict cloud and town cloud,convenient living circles,as well as elderly and child care,the Company drove the scale

258、development and value enhancement of fundamental businesses.In 2023,the number of the Companys mobile subscribers reached 408 million,with a net addition of 16.59 million,maintaining the industry-leading position for six consecutive years.Mobile ARPU reached RMB45.4,representing an increase of 0.4%y

259、ear-on-year.The number of broadband subscribers reached 190 million,with a net addition of 9.26 million.Broadband blended ARPU reached RMB47.6,representing an increase of 2.8%year-on-year.Leveraging its edges in cloud-network integration,capabilities from strategic emerging technologies,customer res

260、ources and localised services,the Company has fully completed its deployment in seven strategic emerging industries such as cloud computing and computing power,AI,security,digital platform,Big Data,quantum,and new generation information and communications.The Company continued to optimise and streng

261、then 5G industry applications,and accelerated the development of industry-leading 5G scene-based customised network solutions.The Company continued to upgrade the industry digital platforms and continuously strengthened the service capabilities of platforms such as the e-Surfing Artificial Intellige

262、nce of Things(AIoT)and the e-Surfing Internet of Video Things.The Company promoted the rapid development of Industrial Digitalisation business,achieved breakthroughs in the scale of strategic emerging businesses,and empowered thousands of industries.In 2023,the Companys Industrial Digitalisation bus

263、iness maintained a rapid development trend,with its revenue reaching RMB138.9 billion,representing an increase of 17.9%year-on-year,accounting for 29.9%of service revenues,up by 2.8 p.p.over last year.Its incremental contribution to service revenues increased to 70.4%from 51.6%in 2021.The revenue of

264、 China Telecom Cloud amounted to RMB97.2 billion,representing an increase of 67.9%year-on-year.For detailed business analysis of the Company,please refer to“5.MAJOR OPERATION DURING THE REPORTING PERIOD”in this section.4.ANALYSIS OF CORE COMPETITIVENESS DURING THE REPORTING PERIODDuring the Reportin

265、g Period,based on its own resource endowment,edges and characteristics,China Telecom strengthened sci-tech innovation,accelerated the formation of new quality productive forces,and proactively fulfilled responsibilities in building Cyberpower and Digital China,as well as maintaining network and info

266、rmation security.The Company fully and deeply implemented its Cloudification and Digital Transformation strategy,continued to build a service-oriented,technology-oriented and secured enterprise,effectively enhanced corporate core competitiveness,and accelerated the building of a world-class enterpri

267、se.ACCELERATED UPGRADE OF DIGITAL INFORMATION INFRASTRUCTUREThe Company continued to deepen co-building and co-sharing and promoted the quality and efficiency enhancement of“dual-Gigabit”.The number of 5G base stations in use exceeded 1.21 million,achieving contiguous coverage for townships and abov

268、e,as well as effective coverage for developed administrative villages.Focusing on the hub node regions of the national integrated computing power network,the Company Management introduced China Telecoms achievements in sci-tech innovationSECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE

269、DIRECTORS)China Telecom Corporation Limited Annual Report 2023029strengthened the building of intelligent computing capabilities.At present,nodes in Beijing,Shanghai,Jiangsu,Guizhou,Ningxia and Inner Mongolia have already possessed training resources of over a thousand GPUs,and the liquid-cooling in

270、telligent computing centre with ten-thousand GPUs in one single pool in Shanghai will be in operation in 2024.The Company advanced the revolution and upgrades of datacentres to become AIDC and proactively built the new-generation datacentres that support the hybrid mode of air and liquid cooling wit

271、h“Two-Elastic-One-Optimised”,achieving elastic and adaptive capabilities that enable the average power for one single cabinet to range from 2kW to 50kW+.The Company built a network of intelligent computing centres that is high-speed,lossless,and elastic,while also optimised its DCI networks with lar

272、ge bandwidth,wide coverage,low latency and high reliability.The Company continued the building of latency circles with 1ms/10ms/15ms latency for the east-west direction traffic and 1ms/5ms/20ms latency for the south-north direction traffic.The average mutual access latency among hub nodes of“East-to

273、-West Computing Resource Transfer”was reduced by more than 10%year-on-year.Green and low-carbon achievements have begun to manifest.Through co-building and co-sharing,as well as various energy saving measures,the Company reduced its greenhouse gas emissions by more than 13 million tons,while greenho

274、use gas emissions per unit of total volume of telecommunications services decreased by 19.6%year-on-year.The consumption volume of green electricity with“integration of trading of permit and electricity”throughout the year exceeded 1.1 billion kWh,representing an increase of nearly 3 times year-on-y

275、ear.The Company fully strengthened the digital transformation and construction of its cloud-network.It completed the full launch and application of its proprietary new generation cloud-network operating system that enables SDN-based,scalable and unified control of major networks such as IP,transmiss

276、ion and 5G.FULLY COMPLETED DEPLOYMENT IN STRATEGIC EMERGING BUSINESSESThe Company insisted on taking industrial control as its own responsibility,proactively gave play to the leading role of industry and the promotion driven by integration,and focused on the deployment of seven strategic emerging in

277、dustries and future industries.In terms of cloud computing and computing power,with its proprietary cloud operating system TeleCloudOS 4.0 as the core,the Company has fostered a full-stack cloud technologies and products system that is technologically advanced,independent and controllable,building a

278、 cloud foundation that features multi-chip architecture in one cloud,polymorphism and multi-type computing in one cloud.China Telecom Cloud served thousands of industries for cloud migration and the use of cloud,ranking among the top in the market,with China Telecom Cloud being the framework of nati

279、onal cloud fully taking shape.In terms of Big Data,focusing on four major fields including Big Data PaaS,data core platform,data trading and flow and data security,the Company strove for breakthroughs in core technologies and passed the DCMM5 level certification,the highest level in national data go

280、vernance.The total number of Big Data API accessed reached 4.6 billion times throughout the year,representing an increase of 45%year-on-year.In terms of AI,the Company created the“1+N+M”Xingchen large models series product portfolio and established the base for the general-purpose large foundation m

281、odel,covering four major capabilities including language,speech,visual and multimodal capabilities,while achieving open source.In terms of security,its Anti-DDoS Cloud Dam maintained the No.1 ranking in terms of market share in China and was included in Gartners list of global top service providers

282、selection.In terms of quantum,the Company built quantum communications infrastructure at the municipal level with“quantum-network integration”,providing industry customers with security services such as information transmission and data storage.The Company strengthened professional consolidation and

283、 forward-looking deployment in the field of quantum technology,and initiated the acquisition of Quantumctek Co.,Ltd.In terms of digital platforms,the Company promoted the construction of a group-wide unified technology stack and created more than 110 industry digital platforms.In the area of next-ge

284、neration information and communications,the Company fully SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 2023030created industry-leading scene-based customised network solutions in the field of 5G applications to empower use ca

285、ses such as HD video,data collection and control,unmanned inspection,dual domain switch and Internet of Vehicles.The Company further upgraded its e-Surfing Artificial Intelligence of Things(AIoT)platform,providing one-stop IoT services comprising device access,connectivity management and application

286、 empowerment.This helps to achieve cross-field and cross-industry collaboration under the scene of Internet of Everything.The number of terminal users of its e-Surfing AIoT exceeded 520 million.STEADY ENHANCEMENT IN PRODUCT AND SERVICE CAPABILITIESThe Company adhered to the customer-oriented princip

287、le and continued to promote the building of a service-oriented enterprise.Focusing on meeting peoples needs for a better digital life,the Company insisted on the driving forces from dual engines of fundamental businesses and Industrial Digitalisation business and provided higher quality digital prod

288、ucts and services.The Company launched the brand-new 5G brand and continuously rolled out featured applications such as 5G Mobile Phones with Direct Satellites Connection and 5G Quantum-encrypted Calls.The Company vigorously promoted the Gigabit fibre broadband to households,deepened the integration

289、 and mutual promotion of digital platforms such as smart community and digital village,and expanded multi-scene applications such as rural and community management,community services and family services.The scale of smart communities increased by 46%year-on-year,and the scale of digital villages inc

290、reased by 48%year-on-year.The Company innovated and upgraded the new model of 5G customised network services,and the number of new projects of 5G industry applications in the year increased by 106.3%year-on-year,bringing the aggregate number to exceed 31,000.The Company continued to enhance customer

291、 experience and comprehensively promoted the digital and intelligent upgrade of customer services.NEW BREAKTHROUGHS IN SCI-TECH INNOVATION CAPABILITIESThe Company firmly grasped opportunities arising from the new round of sci-tech revolution and industrial transformation and accelerated the building

292、 of a technology-oriented enterprise.The Company continued to increase sci-tech innovation efforts,with the incremental revenue contribution from sci-tech innovation continuing to increase.The distributed cloud operating system of China Telecom Cloud,TeleCloudOS 4.0,won the first prize of Science an

293、d Technology Award of China Institute of Communications in 2023.The Company built a four-level cross-centre and cross-region AI computing power layout comprising core+province+edge+terminal,creating high-quality digital products and services.The Company launched the Lingze data elements service plat

294、form,upgraded the“Yunxiao”intelligent computing acceleration platform integrating cloud,intelligent computing and supercomputing and launched the one-stop intelligent computing service platform“Huiju”.The Company released the“Xingchen”large language model at the hundred-billion parameter grade,as we

295、ll as a series of large vertical models for education,emergency and transportation.The Company developed the computing power distribution and scheduling platform“Xirang”to schedule cross-operating-entities and heterogeneous cloud computing infrastructure through DCI networks with large bandwidth,low

296、 latency and high reliability.The Company intensified its efforts in achieving breakthroughs of original technologies in the field of quantum.Its quantum computing cloud platform,“Tianyan”,achieved super fusion.The Company realised the worlds first two-way voice calls and text messages sending and r

297、eceiving communications service for consumer-grade mobile phones with direct satellites connection.The breakthroughs in sci-tech innovations propelled the rapid development of strategic emerging businesses.In the field of sci-tech innovation,the Company promoted the implementation of systems such Ma

298、nagement introduced China Telecoms new 5G applicationsSECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 2023031as the“open bidding for selecting the best candidates”and solidly promoted the building of sci-tech talent teams.CONTIN

299、UOUS CONSOLIDATION OF SECURE AND CONTROLLABLE CAPABILITIESThe Company solidly promoted the building of a secured enterprise to achieve benign interaction of high-quality development and high-level security.The network security operating system has gradually matured,and the data security work system

300、has basically taken shape.The Company built the industrys first managed security service platform at the operator level,creating an“O2O”integrated managed security service model featuring“cloud operation experts+localised services”.The Company took the lead in the industry to build a digital securit

301、y situational awareness system,with its accuracy increasing to 98%.The Company created a collaborative protection system for digital security ecology and built the first ecological platform for network security.The Company expanded key products such as Security Brain and Security Cat and provided cu

302、stomers with comprehensive and managed security services.The Company built the leading quantum-encrypted communications metropolitan network.The Company also built an anti-fraud risk model for all users and realised the daily full risk assessment for 470 million users.The Company incorporated the bl

303、acklist data of communications/banks,such that newly plugged in sim cards for terminals involved would be shut down in minutes.5.MAJOR OPERATION DURING THE REPORTING PERIODThe Company fully grasped the opportunities arising from the digital transformation of the economy and society,proactively explo

304、red new scenes,new business formats and new models,and continuously upgraded the digital innovative applications for 2C/2H/2B/2G customers.The Company accelerated the integrated development of fundamental businesses and strategic emerging businesses,achieving new results in corporate development.In

305、2023,the Companys operating revenues amounted to RMB513.6 billion,representing an increase of 6.7%year-on-year.Of which,service revenues amounted to RMB465.0 billion,representing an increase of 6.9%year-on-year,maintaining favourable growth for 11 consecutive years.THE COMPANY SPED UP THE BRAND-NEW

306、UPGRADES OF 5G AND CONTINUOUSLY ENHANCED USER EXPERIENCE OF 5G INNOVATIVE APPLICATIONS FOR INDIVIDUAL CUSTOMERS,ACHIEVING A STEADY INCREASE OF SCALE AND VALUE OF MOBILE SUBSCRIBERS.The Company deeply understood the needs of users in the digital era,comprehensively built 5G superior network,and conti

307、nuously enhanced 5G network coverage and service quality.The Company accelerated the brand-new upgrades of 5G,continuously enhanced customer experience,and steadily increased the scale and value of mobile subscribers.The Company accelerated the creation of differentiated advantages in 5G communicati

308、ons and connectivity.The Company launched innovative and featured applications such as 5G Mobile Phones with Direct Satellites Connection and 5G Quantum-encrypted Calls,and strengthened the promotion of applications such as 5G Enhanced Calls and 5G Message to provide users with more secure and more

309、versatile voice calls and text messaging services.The Company accelerated the integration and innovation of 5G with computing power and AI.The Company continued to promote the scale development of computing power products such as 5G Cloud Computers,and continuously promoted the intelligent upgrade o

310、f applications such as 5G Communications Assistant and Colour Ringback Tone with Video to meet more expectations from users for personalised,diversified and quality information services.In 2023,the Companys mobile communications service revenues reached RMB195.7 billion,representing an increase of 2

311、.4%year-on-year.Of which revenue from mobile value-added and application services reached RMB25.8 billion,representing an increase of 12.4%year-on-year.The net addition of mobile subscribers was 16.59 million,maintaining the industry-leading position SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(R

312、EPORT OF THE DIRECTORS)China Telecom Corporation Limited Annual Report 2023032for six consecutive years,and bringing the total number of subscribers to 408 million.Mobile ARPU reached RMB45.4,representing an increase of 0.4%year-on-year.THE COMPANY ACCELERATED UPGRADES OF GIGABIT AND SMART FAMILY AP

313、PLICATIONS AND CONTINUOUSLY STRENGTHENED THE INTEGRATION AND INNOVATION OF DIGITAL PLATFORMS SUCH AS SMART COMMUNITY AND DIGITAL VILLAGE,RESULTING IN A STEADY INCREASE IN BROADBAND REVENUE,SUBSCRIBER SCALE AND BLENDED ARPU.The Company proactively followed the new trend of digital life development,re

314、lied on its resource endowment,edges and characteristics such as cloud-network integration,and continued to promote the enhancement of capabilities of Gigabit network and scale penetration.The Company strengthened the expansion of Smart Family applications and service upgrades,deepened the integrati

315、on and mutual promotion of digital platforms such as smart community and digital village,and continued to enhance user perception,resulting in a steady increase in broadband revenue,subscriber scale and blended ARPU.The Company continuously accelerated the development of Gigabit fibre network.The Co

316、mpany accelerated Gigabit customers upgrade to FTTR and created the ultimate experience of family networking by providing high-quality fibre network with full coverage and increased speed,so as to consolidate the digital infrastructure for Smart Family and meet family users demands for access with l

317、arger bandwidth,greater connectivity and lower latency.The Company continuously upgraded new applications for Smart Family.Based on cloud-network integration,the Company further enriched cloud broadband applications such as Cloud Storage,Cloud Playback and Cloud Video,sped up the promotion of family

318、 AI and security products such as e-Surfing Webcam and Smart Smoke Detection,and further upgraded applications and services of Whole-home Intelligence.The Company continuously deepened the integration and mutual promotion of digital platforms such as smart community and digital village.The Company f

319、urther promoted the capabilities enhancement of digital platforms such as smart community and digital village.By accelerated addition of applications and services of platforms such as subdistrict cloud and town cloud,convenient living circles,as well as elderly and child care,the Company promoted th

320、e integration and mutual promotion of multiple scenes such as rural and community management,community services and family applications to drive the scale development and value enhancement of fundamental businesses.In 2023,the Companys Wireline and Smart Family service revenues amounted to RMB123.1

321、billion,representing an increase of 3.8%over last year.Of which,revenue from Smart Family business amounted to RMB19.0 billion,representing an increase of 12.8%year-on-year.The number of broadband subscribers reached 190 million with a net addition of 9.26 million.Broadband blended ARPU reached RMB4

322、7.6,representing an increase of 2.8%year-on-year.THE COMPANY INCREASED EFFORTS IN SCI-TECH INNOVATION,PROMOTED THE BREAKTHROUGHS OF STRATEGIC EMERGING BUSINESSES SCALE TO FORM NEW MOMENTUM,WITH RAPID GROWTH OF INDUSTRIAL DIGITALISATION REVENUE.With deepened development of the new round of sci-tech r

323、evolution and industrial transformation,the Company proactively grasped customers growing demands for digitalisation,intelligence,greenness and security,and fully completed deployment in seven strategic emerging industries,including cloud computing and computing power,AI,security,digital platform,Bi

324、g Data,quantum and new generation information and communications.The Company obtained leading advantages in cloud,quantum,satellites and other fields,while it further consolidated its foundations in fields such as security,AI and Big Data,boasting huge potential in the future.Based on its advantages

325、 of cloud-network integration,customer resources and localised services,the Company further strengthened its service capabilities for industry customers,achieving dual leadership in terms of scale and capabilities of digital platforms in key industries,as well as high-quality development of Industri

326、al Digitalisation business.The cloud computing and intelligent computing power continued to upgrade.The Company developed China Telecom Cloud as the source of original cloud computing technologies with high quality and made SECTION III MANAGEMENTS DISCUSSION AND ANALYSIS(REPORT OF THE DIRECTORS)Chin

327、a Telecom Corporation Limited Annual Report 2023033constant breakthroughs in key technologies.With its proprietary cloud operating system TeleCloudOS 4.0 as the core,the Company has fostered a full-stack cloud technologies and products system that is technologically advanced,independent and controll

328、able,building a cloud foundation that features multi-chip architecture in one cloud,polymorphism and multi-type computing in one cloud.China Telecom Cloud served thousands of industries for cloud migration and the use of cloud,ranking among the top in the market,with China Telecom Cloud being the fr

329、amework of national cloud fully taking shape.Focusing on new requirements to cloud service providers in the era of large models,China Telecom Cloud has fully upgraded to an intelligent cloud.The Company developed“Yunxiao”,an intelligent computing acceleration platform integrating cloud,intelligent c

330、omputing and supercomputing,providing the supreme computing power and highly-efficient operation and maintenance tools adapting to AI use cases.The Company also launched“Huiju”,a one-stop intelligent computing service platform,providing large model developers with a training and inferencing tool cha

331、in that is one-stop,fully linked,low-threshold and highly secured.The Company upgraded“Xirang”,a computing power distribution network platform,to fully support the unified access,packaging and scheduling of general computing,intelligent computing,and supercomputing,providing computing power operator

332、s with computing power connection and trading services.This has facilitated better utilisation of computing power resources,the realisation of computing power inclusion,the efficiency enhancement of computing power supply and the interconnection of computing power from multiple parties.The Company c

333、arried out R&D of“Zhenshi 3.0 engine”,a new-generation image and streaming fusion algorithm,driving the growth of cloud computer users by more than two times year-on-year,ranking first in Chinas DaaS market,with a market share of nearly 40%.China Telecom Cloud maintained its leading market positions,including the No.1 ranking in government and administration public cloud infrastructure and the No.