China Telecom’s pre-disclosure prospectus: three consecutive years of net profit exceeded 20 billion yuan

Produced | Sohu Technology

Edit｜ Zhang Yating

On April 28, the Securities Regulatory Commission’s website pre-disclosed China Telecom’s prospectus. Yesterday, China Telecom’s application for the issuance and listing of A shares was accepted by the China Securities Regulatory Commission.

According to the prospectus, subject to regulatory requirements such as the minimum issuance ratio in the place of listing, China Telecom intends to publicly issue no more than 12,093,342,392 A shares (that is, no more than 13% of the total issued share capital after the issuance, and before the over-allotment option is exercised) ). At the same time, China Telecom can authorize the lead underwriter to exercise the over-allotment option under the premise of complying with laws, regulations and regulatory requirements, and the over-sale of A shares does not exceed 15% of the number of A shares issued (before the over-allotment option is exercised). .

China Telecom intends to take advantage of the opportunity of issuing A shares to introduce strategic investors with complementary advantages and synergy effects with the company, further improve corporate governance and market-oriented operation mechanisms, expand the ecological territory, and enhance the company’s products and services, technological innovation and other fields. Comprehensive Competitiveness.

In terms of operating performance, China Telecom has seen steady growth in operating revenue in recent years, leading the industry in service revenue growth for many years, and increasing net profit year by year. In 2018, 2019 and 2020, operating income was 374.929 billion yuan, 372.20 billion yuan and 389.939 billion yuan, and the net profit attributable to shareholders of the parent company was 20.432 billion yuan, 20.521 billion yuan and 20.855 billion yuan, respectively.

In terms of business development, China Telecom ranks first in the industry in a number of indicators. As of December 31, 2020, the scale of mobile users has reached 351 million, and the number of net additions has led the industry for three consecutive years. Among them, 5G package users have reached 86.5 million, with a penetration rate of 24.6%, ranking first in the industry. In 2020, the industry’s digital revenue reached 84 billion yuan, ranking first in the industry; Tianyi Cloud ranked first in the global operator public cloud IaaS, and its revenue scale ranked first among domestic operators; IDC resources have the largest number and widest distribution , Is the largest IDC service provider in China.

In terms of reform and innovation, China Telecom has made remarkable achievements in technological innovation, promoting independent control of core technologies in the fields of cloud-network integration, 5G, security, Internet of Things, and smart homes. Actively undertake major national scientific and technological research tasks. Since 2018, it has undertaken a total of 26 national key scientific and technological research and development projects. In 2020, 40 international standardization projects will be completed. As of the end of 2020, the number of valid patents has exceeded 3,000. China Telecom implements the strategy of strengthening the company with talents and builds a talent team with differentiated competitive advantages. Implementing a market-based incentive mechanism, according to the latest value-added rights plan in 2021, and in accordance with the principles of “divided by contribution”, “divided by potential”, and “acquired by performance”, 8,239 core staff members were granted approximately 2.412 billion shares of stock appreciation rights. Vigorously promote the market-based selection and employment mechanism, and continue to increase the introduction of 5G, cloud-network integration, and ABCI related talents.

In terms of the use of raised funds, the net funds raised this time are planned to be used for 5G industrial Internet construction projects, cloud-network integration new information infrastructure projects, and technological innovation research and development projects. The total investment scale in the next three years will be 102.1 billion yuan, of which, it is planned to use The amount of raised investment funds will reach 54.4 billion yuan.

Through the in-depth implementation of the “cloud-to-digital conversion” strategy and this A-share listing, China Telecom will comprehensively enhance the company’s competitiveness, innovation, control, influence, and anti-risk capabilities, and strive to build a service-oriented, technology-based, and secure enterprise . Looking forward to the next three years: China Telecom’s technological innovation capabilities and talent innovation vitality have been significantly enhanced, the industry’s digital expansion capabilities have been significantly improved, the business structure has been further optimized, and the proportion of industry digital revenue has increased year by year. The layout of the strategic emerging industry segments has been further strengthened, the development model and growth mode have been effectively transformed, the operating income has grown steadily, the income and profit margin has been steadily improved, and the value of the company has been newly improved.