CHINA TELECOM CORP LTD

CIK:0001191255|SEC Filings

Consolidated Statements of Comprehensive Income - CNY (¥) ¥ in Millions, shares in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Profit or loss [abstract]
Operating revenues	¥ 393,561	¥ 375,734	¥ 377,124
Operating expenses
Depreciation and amortization	(90,240)	(88,145)	(75,493)
Network operations and support	(119,517)	(109,799)	(116,062)
Selling, general and administrative	(55,059)	(57,361)	(59,422)
Personnel expenses	(65,989)	(63,567)	(59,736)
Other operating expenses	(29,074)	(27,792)	(37,697)
Impairment loss on property, plant and equipment	(5,042)	0	0
Total operating expenses	(364,921)	(346,664)	(348,410)
Operating income	28,640	29,070	28,714
Net finance costs	(3,014)	(3,639)	(2,708)
Investment income	60	30	38
Income from investments in associates	1,701	1,573	2,104
Earnings before income tax	27,387	27,034	28,148
Income tax	(6,307)	(6,322)	(6,810)
Profit for the year	21,080	20,712	21,338
Other comprehensive income for the year, 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	(385)	604	(324)
Deferred tax on change in fair value of investments in equity instruments at fair value through other comprehensive income	97	(147)	82
Other comprehensive income that will not be reclassified to profit or loss, net of tax	(288)	457	(242)
Other comprehensive income for the year, Items that may be reclassified subsequently to profit or loss:
Exchange difference on translation of financial statements of subsidiaries outside mainland China	(312)	102	154
Share of other comprehensive income of associates	(4)	(2)	(7)
Other comprehensive income that may be reclassified to profit or loss, net of tax	(316)	100	147
Other comprehensive income for the year, net of tax	(604)	557	(95)
Total comprehensive income for the year	20,476	21,269	21,243
Profit attributable to
Equity holders of the Company	20,850	20,517	21,210
Non-controlling interests	230	195	128
Profit for the year	21,080	20,712	21,338
Total comprehensive income attributable to
Equity holders of the Company	20,244	21,074	21,115
Non-controlling interests	232	195	128
Total comprehensive income for the year	¥ 20,476	¥ 21,269	¥ 21,243
Basic earnings per share	¥ 0.26	¥ 0.25	¥ 0.26
Number of shares	80,932	80,932	80,932

Consolidated Statements of Cash Flows - CNY (¥)
¥ in Millions

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Statement of cash flows [abstract]

Net cash from operating activities

^[1]

¥ 132,260

¥ 112,600

¥ 99,298

Cash flows used in investing activities

Capital expenditure

(88,748)

(82,853)

(83,835)

Payments for lease prepayments / right-of-use assets

(220)

(310)

(20)

Purchase of investments

(74)

(478)

(328)

Proceeds from disposal of property, plant and equipment

863

2,514

1,866

Proceeds from disposal of lease prepayments / right-of-use assets

115

Proceeds from disposal of investments

296

Net cash outflow from disposal of subsidiaries

(1)

Purchase of short-term bank deposits

(4,664)

(5,119)

(7,726)

Maturity of short-term bank deposits

5,695

8,621

3,949

Net cash used in investing activities

(87,077)

(77,214)

(85,954)

Cash flows used in financing activities

Repayments of principal of finance lease obligations / lease liabilities

(12,738)

(10,699)

(73)

Proceeds from bank debt and other loans

81,049

103,315

97,829

Repayments of bank debt and other loans

(106,982)

(120,107)

(106,923)

Payment of the acquisition price of the Eighth Acquisition (Note 1)

(87)

Payment of dividends

(9,262)

(8,891)

(7,568)

Cash distributions to non-controlling interests

(42)

(181)

(177)

Payment for the acquisition of non-controlling interests

(1)

(8)

(119)

Contribution from non-controlling interests

1,590

855

Advanced payment received in respect of contribution from non-controlling interest

978

Net deposits with Finance Company

^[2]

5,728

4,098

Increase in statutory reserve deposits placed by Finance Company

^[2]

(837)

(405)

Reduction of capital by non-controlling interests

(20)

Net cash used in financing activities

(42,107)

(31,288)

(16,283)

Net (decrease) / increase in cash and cash equivalents

3,076

4,098

(2,939)

Cash and cash equivalents at beginning of year

20,791

16,666

19,410

Effect of changes in foreign exchange rate

(183)

195

Cash and cash equivalents at end of year

¥ 23,684

¥ 20,791

¥ 16,666

[1]	Reconciliation of earnings before income tax to net cash from operating activities
[2]	“Finance Company” refers to China Telecom Group Finance Co., Ltd., a subsidiary of the Company established on January 8, 2019, providing capital and financial management services to the member units of China Telecommunications Corporation.

Consolidated Statements of Financial Position - CNY (¥) ¥ in Millions	Dec. 31, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	¥ 23,684	¥ 20,791
Short-term bank deposits and restricted cash	9,408	3,628
Accounts receivable, net	21,502	21,489
Contract assets	604	474
Inventories	3,317	2,880
Prepayments and other current assets	25,167	22,219
Financial assets at fair value through profit or loss	0	39
Income tax recoverable	334	1,662
Total current assets	84,016	73,182
Non-current assets
Property, plant and equipment, net	418,605	410,008
Construction in progress	48,425	59,206
Right-of-use assets	59,457	61,549
Goodwill	29,920	29,923
Intangible assets	18,508	16,349
Interests in associates	40,303	39,192
Financial assets at fair value through profit or loss	73	0
Equity instruments at fair value through other comprehensive income	1,073	1,458
Deferred tax assets	8,164	7,577
Other assets	6,552	4,687
Total non-current assets	631,080	629,949
Total assets	715,096	703,131
Current liabilities
Short-term debt	27,994	42,527
Current portion of long-term debt	1,126	4,444
Accounts payable	107,578	102,616
Accrued expenses and other payables	56,775	48,516
Contract liabilities	63,849	54,388
Income tax payable	350	243
Current portion of lease liabilities	13,192	11,569
Current portion of deferred revenues	278	358
Total current liabilities	271,142	264,661
Non-current liabilities
Long-term debt	24,222	32,051
Lease liabilities	27,455	30,577
Deferred revenues	861	1,097
Deferred tax liabilities	24,208	19,078
Other non-current liabilities	1,033	627
Total non-current liabilities	77,779	83,430
Total liabilities	348,921	348,091
Equity
Share capital	80,932	80,932
Reserves	282,524	271,578
Total equity attributable to equity holders of the Company	363,456	352,510
Non-controlling interests	2,719	2,530
Total equity	366,175	355,040
Total liabilities and equity	¥ 715,096	¥ 703,131