At the mid-year performance presentation in 2025, the company's chairman introduced the steady improvement in business performance in the first half of the year, comprehensive upgrade of strategies, especially in the construction of intelligent cloud system, leading technology enterprises, green and safe development, deepening of reform and opening up, and increasing shareholder returns, which have achieved significant results. The meeting also emphasized the company's seizing of the opportunities of technological revolution, fully embracing artificial intelligence, and achieving new progress in high-quality development.

In the first half of the year, the company's service revenue increased by 1.2% year-on-year, net profit increased by 5.5% year-on-year, and profitability strengthened. The company deepened its value operation, with high-value integrated users reaching 63.54 million households, AI application terminal users exceeding 100 million households, and a 5G network user penetration rate of 65.2%. The revenue from Qianyun reached 57.3 billion yuan, with intelligent revenue increasing by 89.4% year-on-year. The company has built an intelligent cloud system, providing integrated services combining computing power, platform, data, models, and applications, with a total computing power capacity of 7.7 billion flops. Significant progress has been made in the fields of quantum technology, security services, and green ICT, with security revenue reaching 9.1 billion yuan, an increase of 18.2% year-on-year. The company has strengthened its governance system, improved governance capabilities, built a prosperous cooperation ecosystem, and won the Asia's Best Corporate Social Responsibility Award for six consecutive years. The board of directors has decided to distribute a mid-term dividend for 2025 of 0.1812 yuan per share, an increase of 8.4% year-on-year. The company continues to promote the cloud-to-digital transformation strategy, transforming into a service-oriented, technology-oriented, and security-oriented enterprise, seizing the opportunities of technological revolutions such as artificial intelligence and quantum technology, and promoting high-quality development.

In the first half of the year, the company saw steady growth in revenue across various business sectors, effectively controlling the increase in operating expenses, and continuously improving profitability. The development of sectors such as mobile communication, fixed network and smart home services, digital economy, digital society, digital government affairs, security products, and next-generation information and communication businesses, as well as the rapid expansion of international operations, were highlighted. In the second half of the year, the company will continue to implement the Cloud-Change-Data-Intelligence strategy, deepen Action Plus Initiative, accelerate infrastructure upgrades, and promote high-quality development of the enterprise.

The dialogue revolves around China Telecom's advancement of enterprise strategic upgrading towards cloud transformation and intelligent transformation, emphasizing its role and achievements in intelligent transformation, technological innovation, and national cloud construction. The strategic upgrade aims to fully embrace artificial intelligence, enhance enterprise governance and service intelligence, promote high-quality development, strengthen the construction of new infrastructure such as intelligent cloud systems, to adapt to high-quality economic development and technological revolution, and achieve intelligent transformation of enterprises and society.

Discussed the progress of Tianyi Cloud in intelligent cloud transformation, including the rapid growth of intelligent revenue and its alignment with global trends, while analyzing the adjustment strategy of capital expenditure, emphasizing the reduction of investment demand through co-building, sharing, and technological innovation while maintaining the improvement of network quality.

The dialogue provides a detailed interpretation of the five-layer architecture of China Telecom's intelligent cloud system, including network cloud convergence, computing power scheduling, data, models, and application services, emphasizing its importance as infrastructure in the era of artificial intelligence. It mentions the research and development progress of the Xingchen Large Model and the empowering role of the intelligent cloud system in the economic intelligence transformation. It also looks forward to the future impact of the intelligent cloud system on the high-quality development of enterprises and the enhancement of market competitiveness.

The State Council executive meeting proposed that government departments and state-owned enterprises should strengthen demonstration and guidance, and promote the application of artificial intelligence. China Telecom has applied more than 160 AI projects in 21 major business scenarios internally, significantly improving efficiency and customer satisfaction. Through internal practice, China Telecom has accumulated rich experience and expanded externally to cooperate with government departments, state-owned enterprises, and small and medium-sized enterprises to promote the implementation of technology. In the future, China Telecom will continue to enhance its capabilities, provide intelligent services to customers, and support the digital and intelligent transformation of the economy and society.

Discussed the contribution of the 43 billion signed contracts and project opportunities brought by the cooperation with Deep Seek in the first half of the year to business income, as well as the strategy of AI cloud network infrastructure layout in 2024 and capital expenditure focusing on computational power investment in 2025. Emphasized the strong demand for intelligent cloud service systems and market demand, and looked forward to the broad application prospects of artificial intelligence in government, enterprise, household, and individual customers.