中国电信2026年前三季度归母净利262.07亿元、同比降14.84%，但单季表现基本符合市场预期

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China Telecom Corporation Limited
中国电信股份有限公司
(A joint stock limited company incorporated in the People’s Republic of China with limited liability)
(Stock Code: 728)

THE FIRST THREE QUARTERS REPORT OF 2026

The unaudited financial data of the Group for the first three quarters of 2026

─ Operating revenues amounted to RMB382.4 billion, and revenue from principal
businesses amounted to RMB359.3 billion

─ EBITDA amounted to RMB108.0 billion

─ Profit attributable to equity holders of the Company amounted to RMB26.2 billion


The board of directors (the “Board”) of China Telecom Corporation Limited (the “Company”,
together with its subsidiaries, the “Group”) hereby announces the results of the Group for
the nine months ended 30 September 2026. This announcement is made pursuant to Rule
13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong
Limited and Part XIVA of the Securities and Futures Ordinance (Cap. 571 of the Laws of
Hong Kong).




–1–
KEY FINANCIAL DATA

Financial information set out in this announcement has been prepared in accordance with the
IFRS Accounting Standards.

Amounts expressed in RMB million unless otherwise specified

For the
nine months ended The year-on-year
30 September 2026 increase/decrease
(the “reporting in the reporting
Item period”) period
(%)

Operating revenues 382,402 (3.7)
Profit attributable to equity holders of the Company 26,207 (14.8)
Basic earnings per share (RMB per share) 0.29 (14.8)

Increase/decrease
as at the end of
the reporting
period as
As at the end of compared to
the reporting As at the end of the end of
period last year last year
(%)

Total assets 879,463 870,644 1.0
Equity attributable to equity
holders of the Company 463,883 460,828 0.7


BUSINESS DATA

As at As at
30 September 2026/ 30 September 2025/
For the period from For the period from
1 January 2026 to 1 January 2025 to
30 September 2026 30 September 2025

Mobile Subscribers (Million) 445.27 437.19
Net Increase of Mobile Subscribers (Million) 6.62 12.67
5G Network Subscribers (Million) 330.39 292.41
Net Increase of 5G Network Subscribers
(Million) 28.58 41.68
Handset Data Traffic (kTB) 87,125.8 77,332.6
Wireline Broadband Subscribers (Million) 201.49 200.49
Net Increase of Wireline Broadband Subscribers
(Million) 0.37 3.05

Note: Mobile subscribers and net increase of mobile subscribers include 5G network subscribers and net
increase of 5G network subscribers.


–2–
In the first three quarters of 2026, with full implementation of the “Cloudification, Digital
Transformation and AI for Good” strategy, the Company maintained stable operating performance,
refreshed its growth drivers and optimised its business structure. Operating revenues amounted
to RMB382.4 billion, and revenue from principal businesses 1 amounted to RMB359.3 billion,
remaining stable on a comparable basis 2. Revenue from Communications Business amounted to
RMB313.1 billion, and revenue from Intelligence Business reached RMB46.2 billion. EBITDA 3
amounted to RMB108.0 billion. Profit attributable to equity holders of the Company amounted to
RMB26.2 billion, maintaining favourable growth on a comparable basis.

Persistence in Token operations as the main theme, the Company accelerated its progress
towards becoming a leading AI service provider. It undertook the appropriate forward-
thinking construction of a new-generation communications network and a computing power
network and continuously upgraded the Xingchen TokenHub platform, driving rapid growth
in daily Token call volume usage. While accelerating the rollout of intelligent-cloud city
and launching Xingchen super intelligent agent TeleAgent, the Company expedited the
popularisation of AI applications and continuously expanded its user scale, constantly forging
new growth poles for the corporate transformation and development.

The Company will continue to transform itself into a service-oriented, technology-oriented
and secured enterprise, accelerate the transformation of sci-tech achievements into real
productivity and promote the scale development of new quality productive forces. It will
continue to deepen the construction of its Five-Sphere Integrated intelligent cloud system,
strive to promote Token operations, further deepen reform and opening up on all fronts with
“Intelligence Transformation” at the core and continuously enhance its core functions and
core competitiveness, accelerating its development as a world-class enterprise and proactively
bringing returns to shareholders.




1
Revenue from principal businesses comprises revenue from Communications Business (including mobile
communications, wireline communications, IoT, satellite services, information services, etc.) and revenue
from Intelligence Business (including computing power, platforms, data, models, intelligent applications,
etc.)
2
On a comparable basis: excluding the impact of the adjustment to the scope of application of VAT
classification items in the first three quarters of 2026
3
EBITDA = operating revenues – operating expenses + depreciation and amortisation


–3–
QUARTERLY FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(UNAUDITED)
at 30 September 2026
(Amounts in million)

30 September 31 December
2026 2025
RMB RMB

ASSETS

Non-current assets
Property, plant and equipment, net 385,570 416,183
Construction in progress 69,520 56,481
Right-of-use assets 51,365 58,103
Goodwill 30,912 30,914
Intangible assets 25,576 28,439
Interests in associates and joint ventures 48,153 45,280
Financial assets at fair value through profit or loss 25,947 923
Financial assets at fair value through
other comprehensive income 1,551 1,878
Deferred tax assets 1,344 1,002
Long-term bank deposits 794 11,210
Other assets 17,432 14,096

Total non-current assets 658,164 664,509

Current assets
Inventories 4,378 3,431
Income tax recoverable 207 74
Accounts receivable, net 72,076 53,146
Contract assets 4,232 4,123
Prepayments and other current assets 33,107 33,845
Financial assets at fair value through profit or loss 32,107 11,709
Financial assets at fair value through
other comprehensive income 4,348 –
Bank deposits and restricted cash 35,022 38,413
Cash and cash equivalents 35,822 61,394

Total current assets 221,299 206,135

Total assets 879,463 870,644



–4–
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(UNAUDITED) (Continued)
at 30 September 2026
(Amounts in million)

30 September 31 December
2026 2025
RMB RMB

LIABILITIES AND EQUITY

Current liabilities
Short-term debts 1,810 2,448
Current portion of long-term debts 1,262 1,466
Accounts payable 153,236 149,704
Accrued expenses and other payables 93,431 87,180
Contract liabilities 62,182 67,113
Income tax payable 3,961 1,563
Current portion of lease liabilities 21,856 14,239

Total current liabilities 337,738 323,713

Net current liabilities (116,439) (117,578)

Total assets less current liabilities 541,725 546,931

Non-current liabilities
Long-term debts 5,444 6,109
Lease liabilities 17,312 25,051
Deferred tax liabilities 39,672 39,294
Other non-current liabilities 7,849 8,217

Total non-current liabilities 70,277 78,671

Total liabilities 408,015 402,384

Equity
Share capital 91,507 91,507
Reserves 372,376 369,321

Total equity attributable to equity
holders of the Company 463,883 460,828
Non-controlling interests 7,565 7,432

Total equity 471,448 468,260

Total liabilities and equity 879,463 870,644


–5–
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
for the nine-month period ended 30 September 2026
(Amounts in million)

Nine-month period ended
30 September
2026 2025
RMB RMB

Operating revenues 382,402 396,998

Operating expenses
Depreciation and amortisation (77,163) (77,893)
Network operations and support (109,719) (114,890)
Selling, general and administrative (47,591) (49,272)
Personnel expenses (77,021) (75,218)
Other operating expenses (40,032) (41,986)

Total operating expenses (351,526) (359,259)

Operating profit 30,876 37,739
Net finance costs (196) (454)
Investment income and others 1,165 206
Share of profits of associates and joint ventures 2,523 1,959

Profit before taxation 34,368 39,450
Income tax (8,181) (8,679)

Profit for the period 26,187 30,771


Other comprehensive income for the period
Items that will not be reclassified subsequently to
profit or loss:
Change in fair value of investments in equity instruments
at fair value through other comprehensive income (73) 96
Deferred tax on change in fair value of investments in
equity instruments at fair value through
other comprehensive income 16 (22)

(57) 74




–6–
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED) (Continued)
for the nine-month period ended 30 September 2026
(Amounts in million except for per share data)

Nine-month period ended
30 September
2026 2025
RMB RMB

Items that may be reclassified subsequently to profit or loss:
Exchange difference on translation of financial statements
of subsidiaries outside mainland China and others (556) (3)

(556) (3)

Other comprehensive income for the period, net of tax (613) 71

Total comprehensive income for the period 25,574 30,842


Profit attributable to
Equity holders of the Company 26,207 30,773
Non-controlling interests (20) (2)

Profit for the period 26,187 30,771


Total comprehensive income attributable to
Equity holders of the Company 25,593 30,844
Non-controlling interests (19) (2)

Total comprehensive income for the period 25,574 30,842


Basic earnings per share (RMB) 0.29 0.34


Diluted earnings per share (RMB) 0.29 0.34




–7–
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
for the nine-month period ended 30 September 2026
(Amounts in million)

Nine-month period
ended 30 September
Note 2026 2025
RMB RMB

Net cash from operating activities (a) 98,436 87,421

Cash flows used in investing activities
Capital expenditure (43,956) (44,810)
Investment in associates and joint ventures (1,584) (75,558)
Payments for right-of-use assets (5) (26)
Proceeds from disposal of property, plant and
equipment 968 1,261
Proceeds from disposal of right-of-use assets 295 408
Payments for financial assets at fair value
through profit or loss (171,691) 6
Proceeds from disposal of financial assets at
fair value through profit or loss 127,104 46,818
Payments for financial assets at fair value
through other comprehensive income (4,400) (500)
Proceeds from disposal of financial assets at
fair value through other comprehensive income 301 –
Placement of bank deposits and others (16,810) (41,766)
Maturity of bank deposits 29,810 27,769
Short-term loans granted to China Telecom
Group by Finance Company (2,000) (2,071)
China Telecom Group’s repayments of
short-term loans granted by Finance Company 2,099 2,045
Net cash inflow from acquisition of subsidiary – 1,466

Net cash used in investing activities (79,869) (84,958)




–8–
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(Continued)
for the nine-month period ended 30 September 2026
(Amounts in million)

Nine-month period
ended 30 September
2026 2025
RMB RMB

Cash flows used in financing activities
Repayments of principal of lease liabilities (6,368) (12,120)
Proceeds from bank and other loans 3,137 6,064
Repayments of bank and other loans (10,010) (7,649)
Payments of dividends (20,881) (25,064)
Contribution from non-controlling interests 627 99
Net withdrawal of deposits by China Telecom
Group to Finance Company (11,226) (1,422)
Decrease in statutory deposit reserves placed
by Finance Company 792 40
Others – 19

Net cash used in financing activities (43,929) (40,033)

Net decrease in cash and cash equivalents (25,362) (37,570)
Cash and cash equivalents as at 1 January 61,394 82,207
Effect of changes in foreign exchange rate (210) (43)

Cash and cash equivalents as at 30 September 35,822 44,594




–9–
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(Continued)
for the nine-month period ended 30 September 2026
(Amounts in million)

(a) Reconciliation of profit before taxation to net cash from operating activities

Nine-month period ended
30 September
2026 2025
RMB RMB

Profit before taxation 34,368 39,450

Adjustment for:
Depreciation and amortisation 77,163 77,893
Impairment losses for financial assets and
contract assets, net of reversal 8,414 7,593
Write-down of inventories, net of reversal (5) 10
Investment income and others (1,165) (211)
Share of profits of associates and joint ventures (2,523) (1,959)
Interest income (1,167) (1,348)
Net interest expense 1,272 1,563
Net foreign exchange gain or loss and others 91 239
Net loss on retirement and disposal of
long-lived assets and others (17) 758

116,431 123,988


Increase in accounts receivable (27,019) (34,758)
Increase in contract assets (259) (486)
Increase in inventories (936) (511)
Increase in prepayments and other current assets (109) (1,603)
Decrease in restricted cash 62 36
Increase in other assets (2,820) (1,258)
Increase/(decrease) in accounts payable 6,817 (5,930)
Increase in accrued expenses and other payables 15,771 17,056
Decrease in contract liabilities (4,865) (4,875)

Cash generated from operations 103,073 91,659
Interest received 979 747
Interest paid (1,287) (1,456)
Investment income and dividends received 1,544 1,566
Income tax paid (5,873) (5,095)

Net cash from operating activities 98,436 87,421


– 10 –
The Board wishes to remind investors that the above financial and business data are based on
the Group’s unaudited management accounts. Investors are cautioned not to unduly rely on
such data.

In the meantime, investors are advised to exercise caution in dealing in the securities of
the Company.

By Order of the Board
China Telecom Corporation Limited
Ke Ruiwen
Chairman and Chief Executive Officer

Beijing, China, 22 October 2026

FORWARD-LOOKING STATEMENTS

Forward-looking statements included in this announcement in relation to development
strategies, future operation plans, outlook, etc. do not constitute a commitment to investors
by the Company. Such forward-looking statements are subject to known and unknown
risks, uncertainties and other factors, which may cause the actual performance, financial
condition or results of operations of the Company to be materially different from any future
performance, financial condition or results of operations implied by such forward-looking
statements. In addition, the Company does not intend to update these forward-looking
statements. Investors are advised to pay attention to the investment risks.

As at the date of this announcement, the Board of Directors of the Company consists of
Mr. Ke Ruiwen (as the Chairman and Chief Executive Officer); Mr. Liu Guiqing (as the
President and Chief Operating Officer); Mr. Tang Ke and Mr. Li Yinghui (as the Chief
Financial Officer) (both as the Executive Vice Presidents); Mr. Lyu Yongzhong (as the
Non-Executive Director); Mr. Ng Kar Ling Johnny, Mr. Lee Sunny Wai Kwong, Mr. Liang
Xuming and Madam Chen Ji Min (all as the Independent Non-Executive Directors); Madam
Guan Lixin (as the Employee Director).




– 11 –