China Telecom (00728) released its unaudited 2026 interim report, underscoring resilient profitability against a softer top line.

Financial Performance • Operating revenue reached RMB260.47 billion, down 4.10% year-on-year, mainly reflecting VAT category adjustments and an industry-wide shift in revenue mix. • Revenue from principal businesses was RMB244.10 billion; Communications Business contributed RMB213.00 billion, while Intelligence Business rose 7.10% to RMB31.10 billion and now represents 12.8 % of core revenue. • China Telecom Cloud delivered RMB61.80 billion, a 7.80 % increase. • EBITDA stood at RMB74.36 billion. • Net profit attributable to shareholders edged to RMB19.59 billion, translating into basic earnings per share of RMB0.21.

Cash Flow and Capital Expenditure • Capital expenditure totalled RMB32.45 billion for the half-year. • Free cash flow surged 121.30 % to RMB28.93 billion, buoyed by tighter working-capital management. • Total assets were RMB884.72 billion; the debt-to-asset ratio improved to 45.8 %.

Dividend Declaration The board approved an interim dividend of RMB0.1606 per share (pre-tax), equivalent to HK$0.185633, to be paid on or before 13 October 2026. The distribution totals about RMB14.70 billion and equals 75 % of first-half attributable profit.

Operational Highlights • Mobile subscribers reached 1.84 billion industry-wide, with 5G users at 1.29 billion; China Telecom’s 5G penetration climbed to 72.9 %. • Gigabit broadband penetration within the company’s base grew to 34.3 %. • The firm expanded its 5G-Advanced footprint, added 150,000 carrier-aggregation base stations and 700,000 RedCap base stations, and increased intelligent-computing power to 118.8 EFLOPS. • Ongoing investment in AI and cloud infrastructure saw 16 data-center campuses reach the 100 MW class, supporting nearly 8 GW total power capacity.

Governance and Outlook Management reaffirmed the “Cloudification, Digital Transformation and AI for Good” strategy, with continued focus on intelligence-driven revenue streams, disciplined capex, and shareholder returns. The company positions itself for sustained high-quality growth as it enters China’s 15th Five-Year Plan period.