China Telecom Corporation (728) H1 2026 earnings summary

Executive summary

• Operating revenues for H1 2026 were RMB 260.5 billion, with principal business revenue at RMB 244.1 billion, reflecting a stable or slightly declining trend year-over-year due to industry shifts and VAT adjustments.

• Intelligence Business revenue rose 7.1% year-over-year to RMB 31.1 billion, accounting for 12.8% of principal business revenue.

• Net profit attributable to equity holders was RMB 19.6 billion, with basic EPS of RMB 0.21, down from RMB 23.0 billion and RMB 0.25 year-over-year.

• Free cash flow surged 121.3% year-over-year to RMB 28.9 billion.

• Continued focus on AI, cloudification, and digital transformation, with significant R&D and infrastructure investments.

Financial highlights

• EBITDA for H1 2026 was RMB 74.4 billion, down from RMB 80.6 billion in H1 2025.

• Operating expenses decreased 2.2% year-over-year to RMB 237.5 billion.

• Capital expenditure was RMB 32.4 billion, down 5.2% year-over-year.

• Total assets increased 1.6% to RMB 884.7 billion; debt-to-asset ratio improved to 45.8%.

• Interim dividend per share set at RMB 0.1606, with a payout ratio of 75%, totaling RMB 14.7 billion.

Outlook and guidance

• 2026 development goals target net profit growth surpassing revenue growth and intelligence revenue to exceed 20% of principal business revenue.

• Continued implementation of “Cloudification, Digital Transformation and AI for Good” strategy, focusing on intelligent cloud, AI+ initiatives, and digital infrastructure.

• Emphasis on high-quality development, sci-tech innovation, and corporate governance reforms.