China Telecom Corporation (728) H1 2026 earnings summary

Executive summary

• Operating revenues for H1 2026 were RMB260.5 billion, with principal business revenue at RMB244.1 billion, stable year-over-year, and net profit at RMB19.6 billion, with basic EPS of RMB0.21.

• Free cash flow surged 121.3% year-over-year to RMB28.9 billion, reflecting strong operational efficiency.

• Interim dividend declared at 75% of profit attributable to shareholders, with DPS of RMB0.1606.

• The company accelerated digital transformation, focusing on intelligent cloud, AI, and token operation, with rapid growth in intelligent business and cloud revenue.

• Major advancements in AI, quantum technology, and security, with significant R&D investment and industry recognition.

Financial highlights

• Intelligence Business revenue rose 7.1% year-over-year to RMB31.1 billion, accounting for 12.8% of principal business revenue.

• China Telecom Cloud revenue increased 7.8% year-over-year to RMB61.8 billion.

• AIDC business revenue grew 9.3% year-over-year; intelligent computing revenue up 95%.

• EBITDA reached RMB74.4 billion for H1 2026.

• Operating expenses decreased 2.2% year-over-year to RMB237.5 billion; debt-to-asset ratio improved to 45.8%.

Outlook and guidance

• The company will continue to implement its “Cloudification, Digital Transformation and AI for Good” strategy, focusing on expanding intelligent cloud, AI+ initiatives, and digital infrastructure.

• Aims for stable revenue, EBITDA, and net profit growth for 2026, with intelligence revenue targeted to exceed 20% of total revenue during the 15th Five-Year Plan.

• Net profit growth is expected to outpace revenue growth.