China Telecom Corporation (00728) announced its first quarter financial results, with a net profit attributable to shareholders of 7.35 billion yuan, a decrease of 17.1% year-on-year.

China Telecom Corporation (00728) released its first quarterly report for 2026, with the group achieving operating revenue of RMB 131.967 billion (same unit), a decrease of 2.6% year-on-year; the net profit attributable to shareholders of the company was RMB 7.35 billion, a decrease of 17.1% year-on-year; basic earnings per share were RMB 0.08. In the first quarter of 2026, the company fully implemented the strategy of cloud transformation, digitalization, and intelligent services, accelerating its transformation into a service-oriented, technology-driven, and secure enterprise. It solidly promoted cost reduction and efficiency improvement, effectively driving the company's business development towards new and better directions. The company remains customer-centric, seizing the new trend of "AI+ consumption" and accelerating the integration of elements such as connectivity, terminals, applications, and rights. It continues to enhance the intelligent supply capability of personal and family-end products and services, with stable development of its core business. The number of 5G network users reached 310 million, penetration rate increased to 71.3%, total mobile internet traffic grew by 17.7% year-on-year, mobile internet DOU reached 23GB, a 12.6% increase year-on-year, and the penetration rate of gigabit broadband users is approximately 34%. The company continuously deepens its integrated intelligent cloud system of "computing power, platform, data, model, and application," and actively promotes the "AI+" initiative, continuously enhancing internal applications and external empowerment to improve business quality and efficiency. This supports the digital transformation of the economy and society. The new businesses maintain a good development momentum, with revenue from Tianyi Cloud growing by 6.8% year-on-year, and intelligent revenue growing by 39.4%. In the first quarter of 2026, the company's operating expenses were RMB 123.8 billion, a decrease of 0.7% year-on-year, with depreciation and amortization at RMB 25.7 billion, a decrease of 1.0% year-on-year; network operation and support costs were RMB 39.3 billion, a decrease of 1.5% year-on-year. The main reason for this decrease is due to the company's AI empowerment combined with business development circumstances, strengthening cost control, and continuously enhancing resource efficiency; personnel costs were RMB 28.7 billion, an increase of 1.6% year-on-year. In the future, the company will actively grasp the trends of the new wave of technological revolution and industrial transformation, fully implement the strategy of cloud transformation, digitalization, and intelligent services, aiming to become a leading AI service provider with Token services as the main line, creating high-quality digital products and services, continuously enhancing core functions and competitiveness, accelerating the construction of a world-class enterprise, and actively rewarding its shareholders.