In the first half of 2026, the Company’s operating revenues amounted to RMB260.5 billion. Revenue from principal businesses amounted to RMB244.1 billion, remaining stable on a comparable basis. EBITDA amounted to RMB74.4 billion. Net profit amounted to RMB19.6 billion, maintaining favourable growth on a comparable basis. The basic earnings per share were RMB0.21. Free cash flow reached RMB28.9 billion, representing an increase of 121.3% year-on-year.

In terms of the Communications Business, the Company advanced the upgrade of its connectivity business from a “communication channel” to an “intelligent portal”, accelerating the integration of AI into the connectivity business and expanding new value frontiers for connectivity. The Company accelerated connectivity upgrades to maintain its user base. For mobile networks, it sped up the large-scale commercial deployment and capability upgrade of 5G-A. Leveraging the differentiated strengths of integrated communication and sensing as well as high-speed ubiquitous coverage, it delivered an exceptional next-generation mobile connectivity experience featuring ultra-high speed, low latency and high reliability. The penetration rate of 5G network subscribers was 72.9%, 5G-A subscribers reached 4.68 million, and the DOU of mobile subscribers rose by 10.6% year-on-year. For broadband networks, the Company continued to promote the upgrade of “Gigabit + FTTR”, made ongoing efforts to strengthen and solidify household digital infrastructure, and continuously improved broadband speeds and indoor coverage quality, with the gigabit broadband penetration rate reaching 34.3%, an increase of 2.7pp from the end of the previous year. For the connectivity services in the government and enterprise business, the Company actively promoted the expansion of virtual networks, dedicated lines and corporate all optical network businesses. It cultivated vertical industry scenarios and uncovered the value of vertical markets by rolling out innovative applications. The Company accelerated the development of its space-aerial-ground integrated network, promoted multi-network synergies across mobile communication, all-optical and satellite networks, achieving advantages in connectivity across all domains. It strengthened customer operations and stabilised customer value. Leveraging customer operation intelligent agents’ empowerment, the Company accelerated the improvement of precision in customer operations, built full-process AI digital intelligence capabilities for customer insights, strategic package matching, precise reach, review and audit, accurately meeting customers’ personalised needs and continuously enhancing marketing conversion efficiency. To optimize touchpoint services, the Company strengthened the integration of online and offline services to achieve a dual improvement in customer value and perception. To enrich privilege products, the Company launched packages of diversified privileges covering mobility, catering, entertainment, healthcare and other scenarios in collaboration with ecosystem partners to improve the one-stop service system integrating “connectivity + terminal + application + privilege”. As a result, revenue from privilege partnerships increased by 75% year-on-year. The Company improved the “All Customers’ Say” service mechanism and enhanced customer service quality, with the scale of high-value integrated customers steadily expanding, the number of integrated subscribers exceeding 130 million and the blended ARPU reaching RMB128. The Company deepened scenario-based marketing and continuously innovated development paths. Focusing on key scenarios such as digital life, local services and governance, and leveraging digital platforms as the capability foundation, it continuously built scenario-based integrated applications and promoted the integrated and mutually beneficial development of GBHC. For customer-facing (ToC) business, leveraging 5G-A, the Company created scenario-based applications such as high-speed rail and subway travel, cultural tourism and sports events and live streaming. For household customers (ToH), it created applications such as home security, elderly care, one-click care and smart education powered by its smart family platforms and smart community platforms. For government-facing (ToG)business, it developed scenario-based applications such as AI local governance, AI fire prevention and control, and AI market supervision. For enterprise-facing (ToB)business, it created scenario-based applications such as enterprise dedicated networks, 5G factories, low-altitude surveying and mapping, smart campuses, smart finance and smart healthcare leveraging its 5G customized networks, IoT, low-altitude economy platforms and industry platforms, driving the adoption of customised, integrated solutions and maintaining a market-leading position in industry digitalisation delivery capabilities.

In terms of the Intelligence Business, at the IaaS layer, the Company formed a computing power layout covering general computing, intelligent computing, supercomputing, and quantum computing, and achieved comprehensive coverage of all-optical networks, computing power internet, mobile communication networks, and satellite networks, providing a computing foundation characterised by cloud-network integration. Revenue from AIDC business grew by 9.3% year-on-year, and revenue from intelligent computing increased by 95.0% year-on-year. At the PaaS layer, the Company upgraded the Xirang computing power interconnection scheduling platform to Xirang 2.0, which supported computing power from more than 20 types of heterogeneous chips, while the total scale of self-owned and accessed intelligent computing power exceeded 118.8 EFLOPS; 16 algorithms enabled the integrated scheduling of computing power, networks and models, providing efficient, low-loss and low-latency Token transmission services. At the DaaS layer, the Company accelerated the expansion of high-quality data products, aggregating over 20 trillion Tokens of high-quality foundation model training data and 500 high-quality industry datasets. Two of these datasets were selected as exemplary achievements for high-quality datasets in the “Intelligent Datasets for All Domains” initiative by the SASAC. Construction of the Xinghai Trusted Data Space was strengthened. Supported by three core capabilities, i.e. trusted connection, controllable processing and flexible trading, it opened up data circulation channels to foster market-oriented allocation of data elements. At the MaaS layer, the Xingchen large model system was further enhanced by mastering stable and efficient training techniques for ultra-long contexts, independently developing a reinforcement learning framework for Agentic RL, and crafting a new generation of foundational large models with ultra-large parameter counts. The Xingchen TokenHub brought together 142 large models and built a cross-terminal, cross-business and cross-scenario integrated Token operation service platform. To further enhance the supply of “AI+” industry applications, the Company developed and promoted more than 420 industry-specific agents and 102 industry-specific Skills. At the SaaS layer, internal AI adoption and external empowerment were accelerated. Centring on the five core areas of intelligent operation, intelligent services, intelligent marketing, intelligent R&D and intelligent management, 12 categories of digital employees were deployed at scale, accelerating the integration of AI technology into core production workflows, delivering cumulative cost reductions and efficiency gains totalling over RMB1.4 billion. Both internal adoption and external empowerment continued to progress. The Company accelerated the large-scale deployment of AI technology, and worked to develop AI-native products. Xingchen super intelligent agent, TeleAgent, the Company’s self-developed AI-native application, features characteristics such as high performance, low cost, security and controllability, plug-and-play, full-scenario support for office work, including document drafting, in-depth research, data analysis, development, operations and maintenance. The Company continued to advance the AI-enabled upgrade of traditional products, and created core AI products including e-Surfing Smart Ringtone, e-Surfing Smart Screen, e-Surfing Smart Cam and cloud intelligence handsets, bringing new intelligent service experiences to countless households. It accelerated the transition from ICT to AICT, targeted key areas including government administration services, social livelihood and industrial economy, built a team of intelligent engineers, leveraged its strengths in customised delivery and localised services, and delved into customers’ core production workflows to empower the digital and intelligent transformation of various industries. Leveraging the dual-foundation capability advantages of the “Xirang” and Xingchen TokenHub platforms, the Company accelerated the development and business model innovation of localised intelligent-cloud city platforms across 30 cities. Meanwhile, the Company focused on quantum communication, quantum computing and quantum precision measurement. To that end, the Company continuously upgraded quantum product capabilities and expanded market coverage, developed quantum-enabled application scenarios across key products such as Internet of Video Things (IoVT), IoT, low altitude economy, and cloud services, with the number of quantum communication subscribers reaching 7.2 million. The Company continued to expand its footprint in IoVT. Its “Home-School-Village” solution benefited more than 3,900 schools nationwide; Security Smart Eye covered over 20,000 governance institutions; and Transparent Kitchens and Stoves served over 510,000 merchants. The number of terminals connected to its IoVT has reached the 100-million level. The Company built the AI+ “1+1+4+N” low-altitude economy core capability system, which fully covered critical links such as low-altitude infrastructure, flight services, and security prevention and control, to strengthen low-altitude security protection and scale up scenario deployment, with more than 1,500 application scenarios being operationalised to date.

In the first half of 2026, revenue from China Telecom Cloud reached RMB61.8 billion, representing an increase of 7.8% year-on-year.

Taking the Company’s profitability into full consideration, alongside cash flow levels and capital needs for its future development, the Board of Directors has decided to continue distributing an interim dividend in 2026, with the profit to be distributed in cash representing 75% of the profit attributable to equity holders of the Company for the first half of the year, representing an increase of 3pp year-on-year, i.e., RMB0.1606 per share (pre-tax), thereby continuously creating value for shareholders.

In the first half of 2026, the Company’s capital expenditure was RMB32.4 billion.

2026 marks the beginning of China’s 15th Five-Year Plan period. Currently, China’s economy demonstrates a progressive trend characterised by innovation-driven momentum and structural optimisation. A new round of sci-tech revolution and industrial transformation is accelerating breakthroughs. Artificial intelligence technology innovation has entered an unprecedentedly active period, emerging as a new engine for economic growth and an accelerator for shifting from old growth drivers to new ones. The planning and construction of “Six Networks”, including the computing power network and the new-generation communication network, among others, bring new opportunities for the industry and the Company’s development. Going forward, the Company will fully implement the “Cloudification, Digital Transformation and AI for Good” strategy, keep advancing the construction of its Five-Sphere Integrated intelligent cloud system, and deeply implement the “AI+” initiative. With Token operations as the main thread, the Company will promote the development of new forms of the intelligent economy, continue to dedicate itself to delivering original and leading sci-tech innovations, continuously strengthen its inherent AI security capabilities, accelerate the construction of new digital information infrastructure, further deepen reforms and opening up on all fronts, comprehensively enhance its corporate governance capabilities, and accelerate high-quality development. Through these efforts, the Company aims to secure a good start for the 15th Five-Year Plan period, enabling the Company to take the lead, shoulder the responsibilities, and set an example in Chinese modernisation!