![Page 1: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/1.jpg)
2003 Annual Results Presentation
![Page 2: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/2.jpg)
2
Disclaimer
Certain statements contained in this document may be viewed as “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of China Telecom Limited (the “Company”) to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company’s most recent Annual Report on Form 20-F to be filed with the U.S. Securities and Exchange Commission (the “SEC”) and in the Company’s other filings with the SEC.
![Page 3: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/3.jpg)
3
Management
Zhou Deqiang Chairman/CEO
Chang Xiaobing President/COO
Wu Andi EVP/CFO
Li Ping EVP/Company Secretary
![Page 4: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/4.jpg)
4
Agenda
Annual Highlight
Business Review
Financial Review
![Page 5: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/5.jpg)
Annual Highlight
![Page 6: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/6.jpg)
6
Excellent Performance Achieved...
Net Profit16.8 (1) 51.9% (2)RMB Billion, except for
subscriber data
EBITDA57.5(1)
13.9% (2)
Revenue110.6(1)
9.5%
Broadband Subscribers5.63 million
Local Subscribers118.09 million22.0% 200.4%
Note: (1) Excluding up-front connection fee(2) Effect of one-time appraisal deficit and related tax impact in 2002 excluded in calculation
![Page 7: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/7.jpg)
7
In a Favorable Environment...
Local Telephony Penetration(2)GDP(1)
33.7
59.1
79.5
2001 2002 2003
9,59310,240
11,669
2001 2002 2003Source:(1) National Bureau of Statistics,based on comparable price(2) Statistics release of the MII and its provincial branches in our service regions(3) CNNIC, national data
Internet Users(3)
RMB Billion
Million
8.0%9.1%
In our service regions National average
16%19%
15%18%
21%23%
2001 2002 2003
![Page 8: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/8.jpg)
8
…Driven by Continued Reforms and Innovations
External Growth Achieved via Acquisition
Managerial Innovations driving
Efficiency gains
Stronger Distribution driving
Revenue GrowthCreating
Shareholder Value
Corporate IT Strategy
Implemented
Competitiveness Enhanced thru
BPR
![Page 9: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/9.jpg)
9
Acquisition Review: Target Performance(1)
10.1% 9.2%
2003 2003
Faster Revenue Growth(2)
Targets Original Listco
Marked Margin Expansion (2)
45.1% 50.5%
2002 2003
Net Profit Beating Forecast (2) Lower Capex/Sales(3)
RMB Million 4,18247.2% 45.2%
2002 2003
4.6%4,000
2003 Forecast 2003 Actual
Note:(1) All financials unaudited(2) Excluding up-front connection fee(3) Including up-front connection fee
![Page 10: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/10.jpg)
10
Acquisition review: Significant Benefits
JiangsuShanghai
Zhejiang
GuangdongGuangxi
SichuanChongqing
Anhui
JiangxiFujian
Original Listco
Local Subs (million) (1) 49 69 118
Service region pop.(million) 305 223 528
Penetration(2) 16.6% 31.4% 22.8%
Local sub growth (1) 23.1% 21.3% 22.0%
Broadband sub growth 239.7% 186.3% 200.4%
Operating Rev.(3) (RMB billion) 34.7 75.8 110.6
Net profit(3) (RMB billion) 4.2 12.6 16.8
EPS(3)(RMB) 0.17 0.22
As of or for 2003
Note: (1) Local sub of China Telecom (2) Penetration = Total local sub in service region/ Service region population(3) Excluding up-front connection fee, financials unaudited except for Combined Group
Dividend proposed:HKD 0.065/share
Targets Acquired
Original Listco
Combined Group
Targets acquired
![Page 11: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/11.jpg)
Business Review
![Page 12: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/12.jpg)
12
Overview: Continued Steady Growth
RMB Million
Local Telephony 5.5% 3.0
Managed Data
Leased Line
Interconnection
66.3% 3.1
8.8% 0.5
-7.1% -0.3
4.5% 0.1
Long Distance -0.7% -0.1
Internet 66.1%
58,021
7,8286,444
3,915
2,540
23,658
8,160
55,006
4,707
5,921
4,214
2,431
23,817
4,914 3.2
Other
ChangeContribution
to Rev. Growth(p.p.)
Revenue 2003 2002
Total Revenue 9.5% 9.5110,566 101,010
Note: Total revenue excluding up-front connection fee of RMB 7,885 million
![Page 13: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/13.jpg)
13
Local Telephony: Positive Trend
Local Subs Local UsageMillion Billion Pulses
274.5 294.2
71.9 52.7
346.4 346.9
2002 2003Voice Dial-up
7.2%
0.1%
72.3 79.4
12.513.64.86.77.2
18.4118.1
96.8
2002 2003
Wireless Local Access
EnterpriseResidentialPublic Phone
22.0%
![Page 14: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/14.jpg)
14
Local Telephony: Competition Effectively Countered to Boost Usage
Monthly Usage Growth Rate (YoY), 2003
6.3%7.6%
1.6%
3.1%
6.6%
8.1%7.1%
7.7%9.1% 9.0%
11.8% 12.3%
1 2 3 4 5 6 7 8 9 10 11 12
![Page 15: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/15.jpg)
15
Local Telephony: Proactive & Cautious Approach toward PHS
Strong Sub Growth Declining Unit Cost & Improving Return
Thousands
Higher Utilization
Centralized Procurement
2,696
7,243
18,346
2001 2002 2003
168.7%
153.3
%
Return further improved as Capex/Sub down 12% YoY
![Page 16: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/16.jpg)
16
Broadband and other Internet: Continued Strong Growth
4,914
8,160
4.9%
7.4%
2002 2003
Internet RevenueRMB Million
66.1%
483
1,874
3,590
5,630
2001 2002 1H2003 2003
Sustained Broadband Growth
Thousand Subs
288.0%
200.4%
Percentage of total rev. (excl. Up-front connection fee)
Internet revenue
![Page 17: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/17.jpg)
17
Broadband & Other Internet: Growing into A New Pillar Business
Explosive Growth of Broadband
Strong Demand
Industry Value Chain
Compelling Branding & Bundling
Dominant Control of Last Mile
![Page 18: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/18.jpg)
18
VAS: A Rising Star
22.87
40.14
63.4328.3%
41.5%
53.7%
2001 2002 2003Caller ID sub
Rapid Growth of Caller ID
Percentage of Caller ID sub to total local sub
Million
75.5%58.0%
Expanding the VAS Horizon
Broadband New Vision
Wireline SMS
Caller ID
PHSSMS
Tele-ChatQQ
ValueAdded
ServicesVoice Information Taking Off
527 627
1,335
2001 2002 2003
Million
Usage of voice information services
112.9%
19.0%
![Page 19: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/19.jpg)
19
Long Distance: Steady Growth
DLD Revenue DLD Usage
2002 2003
RMB Million-1.2%
20,123 19,888
2002 2003
Million Minutes
50.3%
49.7%
45.8%
54.2%
15.0%46,79353,809
IDD Revenue IDD Usage
2002 2003
RMB Million
2.1%3,6943,770
2002 2003VOIP PSTN
Million Minutes
48.9%
51.1%
38.7%
61.3%
8.4%1,493 1,618
![Page 20: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/20.jpg)
20
Managed Data & Leased Line: Smooth Growth
Managed Data Usage Managed Data Revenue
Digital Circuits Leased
Thousand port equivalents
31.6%
93.0%6.6%
(64K) (128K) (2M)
278.3
39.8 15.9
366.1
76.816.9
DDN FR ATM
2002 2003 2002 2003 2002 2003
2002 2003
2002 2003
Leased Line Revenue
RMB Million
RMB Million
4.5%
-7.1%4,2143,915
2,431 2,540
Thousand 2M equivalents
122.7 128.6
2002 2003
4.8%
![Page 21: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/21.jpg)
21
Interconnection: Rapid Growth
Interconnection Income & Expense Inbound Local Call Volume
2002 2003
Intercon. expense
RMB Million
Intercon rev.
8.8%5,921
6,444
2,828 2,848
39.9
53.6
2002 2003
Billion Minutes
34.4%
![Page 22: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/22.jpg)
22
Managerial Innovation - Core Competitiveness of China Telecom Strengthened
管控模式
管控模式
管控模式
管控模式
管控模式
管控模式
管控模式
管控模式
Institution Procedure Modeling
Financial
Construction of distribution system
Operational
Capital
Headquarters
Provincial companies
Local networks
IT Systems(CTG-MBOSS)
![Page 23: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/23.jpg)
23
Managerial Innovation - Enhancement of the Distribution System
Public Customers
Product Bundling
Fixed linePHSDataBroadband
Key Accounts
Business customers
Distribution Channels
• Key Account Managers
• Community managers
• Rural contract personnel
• 10000 service hot line
Internal Measures• Re-allocate human resource• Streamline IT systems • Implement sales-based compensation• Re-design business procedures
![Page 24: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/24.jpg)
24
Managerial Innovation - Business Process Re-engineering Further Implemented
BPR
•Front-end personnel:50%+
•Key Account direct service time proportion: 30%•Customer satisfaction: 2 p.c points
•Average capex saving:9%•Utilization: 6%
Major Services:•Average time of provisioning: 40%•Average breakdown duration: 50%
![Page 25: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/25.jpg)
Financial Review
![Page 26: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/26.jpg)
26
Strong Financial Performance
Note: All figures excluding up-front connection fee and effects of asset appraisal deficit and related tax impact in 2002
Profit and Loss
Cash Flow
Balance Sheet
Revenue Growth: 9.5%
EBITDA Growth: 13.9% EBITDA Margin: up 2 pc points
Net Profit Growth: 51.9%Net Margin:up 4 pc points
Capex: RMB 42.8 billion, down 4.9% YoY
Free Cash Flow:RMB 8.7 billion
Acquisition of 6 Provincial Operations
Total Debt/Total Cap: 36.3%
![Page 27: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/27.jpg)
27
Significant Revenue and Net Profit Growth
Revenue EBITDA Net Profit
RMB Million RMB Million RMB Million
2002 2003
9.5%
101,010 110,566
2002 2003
13.9%
50,448(1)
57,484
2002 2003
51.9%
11,061(1)
1,219
16,801
Note: All figures exclude up-front connection fee(1) Excluding effects of asset appraisal deficit and related tax impact in 2002
![Page 28: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/28.jpg)
28
Strict Cost Control and Improved Profitability
Operating Expense StructureOperating and EBITDA Margin (1)
Operating Margin EBITDA Margin RMB Million
17.3%
22.2%
2002 2003
49.9%
52.0%
2002 2003
39.5% 38.3%
28.9% 26.5%
12.2% 14.1%
15.9% 17.7%3.4% 3.4%
83,567 86,003
2002 2003
Note: (1) Excluding up-front connection fee, and excluding effects of asset appraisal deficit and related tax impact in 2002(2) Excluding personnel expenses
Depreciation Network O&S (2)
SG&A (2) PersonnelInterconnect & Others
![Page 29: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/29.jpg)
29
Capex Control Target Met
Capital Expenditure
45.0
42.842.0
41.1%36.1%
2002 2003 2004E
RMB Billion
Capex / Revenue (including up-front connection fee)
![Page 30: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/30.jpg)
30
Significant FCF Growth and Return Enhancement
ROE (2)(3)Free Cash Flow (1)(3)
RMB Billion
Note: (1) FCF = EBITDA- Income tax- Capex(2) ROE =Net profit / Average shareholders‘ equity(3) Excluding up-front connection fee and, excluding effects of asset appraisal deficit and related tax impact in 2002
1.17
8.73
2002 2003
7.7%
11.8%
2002 2003
![Page 31: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/31.jpg)
31
Solid Capital Structure
Net Debt (2) / EBITDA (3)Total Debt / Total Cap (1)
24.4%
36.3%
2002 2003
0.9
1.5
2002 2003
Note: (1) Total cap = Total debt + Deferred revenue + Shareholders’ equity + Minority interest(2) Net debt = Total debt - Cash and cash equivalents(3) Excluding up-front connection fee and effects of asset appraisal deficit and related tax impact in 2002
![Page 32: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/32.jpg)
32
Appendix I: Key Data from the Income Statement
2003 2002
Operating Revenue 110,566 101,010
Operating Expense (86,003) (83,567)
Operating Profit 24,563 17,443
Net Interest Expense (1,814) (2,144)
Income Tax (5,933) (4,266)
Net Profit 16,801 11,061
EPS (RMB) 0.22 0.16Weighted Average Number of Shares (Million) 75,614 69,242
RMB million
Note:All figures excluding up-front connection fee; 2002 figures excluding effects of asset appraisal deficit and related tax impact where applicable
![Page 33: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/33.jpg)
33
Appendix II: Key Data from the Balance Sheet
2003 2002
Cash and Cash Equivalents 10,119 18,685
Other Current Assets 15,385 15,015
Non-Current Assets 280,101 269,911
Total Assets 305,605 303,611
Current Liabilities 96,666 99,548
Non-Current Liabilities 76,398 50,029
Minority Interest 1,269 1,186
Shareholders’ Equity 131,272 152,848
Liabilities and Shareholders’ Equity 305,605 303,611
RMB million
![Page 34: 2003 Annual Results Presentation · IDD Revenue IDD Usage 2002 2003 RMB Million 3,694 2 . 1 % 3,770 2002 2003 VOIP PSTN Million Minutes 48.9% 51.1% 38.7% 61.3% 1,493 8 . 4 % 1,618](https://reader035.vdocuments.site/reader035/viewer/2022063019/5fe0f22344b4b03a8c78c7fa/html5/thumbnails/34.jpg)
34
China Telecom
Thank You!
Sharing the Very Best of This Information Age
For more details, please click onto China Telecom’s corporate website at www.chinatelecom-h.com