Good afternoon, ladies and gentlemen. I am Huang Liping, the Managing Director of Investor Relations Department.

Thank you very much for coming to China Telecom's 2025 annual results presentation, investor presentation. First, let me introduce the management present in the event: We have Chairman and CEO, Mr.

Ke Ruiwen. We have Executive Director, President, and COO, Mr.

Liu Guiqing. We have Executive Director, EVP, Mr.

Tang Ke. We have Executive Director, EVP, CFO, and Board Secretary, Mr.

Li Yinghui. Today's presentation will be divided into two parts, including presentation and Q&A.

The meeting will be conducted in Mandarin, and we'll have simultaneous interpretation. First, we will invite Chairman Ke to introduce the overview of the company results.

Good afternoon, ladies and gentlemen. Welcome to the company's 2025 annual results presentation.

Thank you for your long-term care and support for the company. Today's presentation is divided into two parts.

First, I will introduce the overview, and then Mr. Liu Guiqing will introduce the business and financial performance.

In 2025, the company accurately grasps the trends of sci-tech innovation and industrial development, fully embrace AI and upgrade its cloudification, digital transformation, and AI for Good strategy. Business move towards new and optimal directions.

First, business development progress steadily. Second, proactively promote strategy upgrade.

Third, comprehensively and deeply promote AI Plus action. Fourth, comprehensively deepen reform and opening up to enhance corporate governance capabilities.

Five, seize opportunities and strike a solid starts to the 15th Five-Year Plan. This page sets out the key KPIs for 2025.

In 2025, the company's development progressed steadily, with service revenue increased by 0.7%, driven by the dual-engine integration of innovation-related fundamental and industry digitization businesses. Fundamental business revenue increased by 0.7%, with mobile and wireline smart family business maintained steady.

Industry digitization revenue increased by 0.5%. Meanwhile, the company promotes its strategic emerging businesses to accelerate the development of new growth drivers.

Revenue size of e-Surfing Cloud, AIDC, security, and intelligence continue to expand. IoVT, quantum, and satellite maintained rapid growth.

The company took new and solid strides in high-quality development. In recent years, the company has continued to explore the new path transforming from a traditional telco to sci-tech enterprise.

Last year, we seized the momentum to upgrade corporate strategy towards cloudification, digital transformation, and AI for Good strategy. Based on the number one technology, CT-Yun, we completed and continued deepen into intelligent cloud system of compute platform, data, model, application to achieve fruitful results.

At IaaS layer, the company builds high-speed, secure, and multi-dimensional network coverage, forming cross-domain, multi-party, and heterogeneous compute layer, and achieving a comprehensive upgrade from the fundamental compute foundation to an AI-native compute foundation. Currently, we have the total compute of 91 EFLOPS, and AIDC rack power exceed 3.2 GW.

Its position in public cloud market further consolidated and enhanced, ranked in the leader quadrant of China's intelligent compute cloud service market. At PaaS layer, we provide one-stop compute scheduling and AI development services to efficiently meet customers' demand in training and inference, and provide one-stop integrated token services for users of various large model and AI agents.

At DaaS layer, high-quality data sets and trust circulation toolchain has developed, aggregating over 10 trillion tokens of general purpose LLM corpus data and high-quality industry data set totaling over 500 TB. At MaaS layer, the self-developed Xingchen large model has established leading edge in fields such as language, voice, visual, and multimodal.

At SaaS software layer, we comprehensively and deeply promote the AI Plus action to empower the digital and intelligent transformation of economy and society. The company has consistently regards sci-tech innovation as a core essence of its strategy, and the fundamental support for the high-quality development, continuously focusing on four major root technologies and accelerating breakthroughs in core technologies.

On cloud and cloud-network integration, we construct cloud, edge, terminal coordinate inference network featuring multi-element heterogeneity, software hardware synergy, and compute network integration, achieve multiple technology breakthroughs. On network, we achieved fundamental network transmission technology and reached international leading standards.

On AI, we innovatively constructed AI for terminal technology system. On quantum and security, we released the first open-source security guardrail for large model foundation in China, and constantly preferred in key core technologies.

In 2025, the company's R&D expenses were RMB 15.6 billion, increased by 7.3%. Our technological influence continued to enhance, with Xingchen large model series and e-Surfing IoT platform being selected as the 2025 top 10 national mega projects and top 10 super projects respectively, accelerating development as the leading sci-tech enterprise.

The company has comprehensively and deeply promote the AI Plus action, integrating AI into core links of operation, accelerating deep integration of AI with economy and society. In terms of internal applications, focusing on the areas like customer service, marketing, operation, R&D, and management, over 250 AI agent services was developed, enhancing cost reduction and efficiency enhancement of over RMB 2 billion in a year.

On this basis, the company has accelerated the promotion of AI enter into thousands of households and industries. We proactively constructing a unified portal for individual and family AI applications, accelerating the AI integrate upgrade of existing products and create new AI-native products.

Hundreds of industry LLM and AI agents has been extensively integrated into the open scenes, with AI service penetration of 85% among central SOEs. Intelligent revenue reached RMB 20.3 billion in a year.

The company adhere to token service as a core business line, aiming to develop as a leading AI service provider as a goal. We consolidate the system integration capabilities with factors like technology, talents, and channel, offering smart and digital localized AI service and build form new form of smart economy.

In e-Surfing smart ringtone, have over 4 million users create AI content during the Spring Festival. The company adhere to the cloud-network integration development philosophy of network is the foundation, cloud is the core, network moving with cloud, cloud-network integration and symbolize of intelligent and benefits, and accelerate the upgrade of intelligent digital information infrastructure.

In 2025, capex was RMB 80.4 billion, and capex-to-sales ratio continued to decline. In the field of compute infrastructure, we accelerate the integrated layout of compute, storage, transmission, AIDC, and electricity, construct the first commercial supernode cluster at GBA in the country, with proprietary intelligent compute increased by more than 30%, constructed 2+31+X storage network layout, create compute interconnection network with intelligent coordination, and a new metropolitan network with cloud-network integration.

The power of high-power AIDC racks increased by 35%, with deeply synergistic development of compute and electricity to create efficient, green, and intelligent supply of compute power. In terms of network infrastructure, we continue to promote the evolution and upgrades of information and communication network infrastructure, and integrate air, space, and ground.

In 2026, the company will continue to optimize its capex structure, with full year budget of RMB 73 billion, representing of 9.2% decline, of which computing infrastructure increased by 26%, account for 35% of the total. The company continues to build a new generation of AIDC infrastructure oriented towards the intelligent compute, and optimize its resources layout closely around the east-to-west compute resource transfer strategy.

In accordance to the construction standards of high density, high IT output, flexible extension, and flexible construction, it has now completed 15 100 MW scale hub nodes AIDC parks and hub nodes network latency of less than 12 ms, forming an efficient, green, and intelligent compute foundation. It can provide customers with full-service full system first services capabilities covering planning, design, construction, and operation, an AIDC service provider with the largest scale, the greatest number, the widest distribution, efficient delivery, and technically advanced in China.

Meanwhile, the company has moderately and proactively reserved resources such as the data center building, power, and energy consumption at national hub nodes, with the total capacity of AIDC resources reaching 7 GW, can rapidly satisfy future compute requirement in the future. The company has strengthened its security service for intelligent cloud and develop full-stack security products and service covering cloud, network, edge, terminal, platform, data, model, and application.

The competitiveness of its products like Cloud Dam, Zero Trust, Security Brain, and Cloud Mirror Hosting continue to lead the industry, providing customers with wide range of reliable security service. The company accelerate the intelligent integration of security, developed the industry-leading ChangeMore dataset, continuously to iterate upgrade the Xingchen Chengwei large model.

In addition, the company proactively participate in the improvement of AI security governance, open-sourced the first security guardrail for the large model foundation in China, and released the first large model security scanner in China, promote AI security development. Recently, the company has launched the first domestic carrier-grade security solutions for AI agents, such as OpenClaw.

The solution provides standardized, actionable security capabilities, featuring end-to-end management, real-time defense, and behavior traceability, to ensure that the AI agent is more controllable and trustworthy. The company has deepened the promotion of Quantum Plus.

Its innovation drives the development of quantum technology and industry, having complete a systematic deployment in three core fields of communication, computing, and precision measurement, promoting the transition of quantum technology from laboratory to various industries. On quantum communication, a metropolitan network was built in 40 key cities nationwide, creating full-stack products such as quantum encrypted messaging, security network, with the subscriber number exceeding 6.8 million.

Quantum computing, we built the first quantum computing cloud platform with quantum supremacy to provide quantum compute service, and for the universities and central enterprise, the latest number of visits exceeding 46 million. On quantum measurement, multiple core technical KPIs achieve industry-leading level.

Our quantum precision measurement technology products has achieved breakthrough in ecological scenes application and have applied in fields of low-altitude security and geological hazard detection. The company further comprehensively deepen reform and open up, increase investment in people, promote the modernization of governance system and capabilities, and enhance AI service capabilities.

The company promotes deep-level reform, stimulating the vitality of various actors, strengthen the systematic integration of factors such as technology, talent, and channel, and provide integrated digital, intelligent, and localized AI service to meet the new digital demands of customers. The company has deeply implement the promoting corporate strength through talent projects, resulting a more strengthen, robust system for sci-tech talents.

Continuously promoting the high-level opening up and cooperation, AI company and Tianyu Vision technology company completed the first round of capital investment in capital increase and introduced strategic investors. The company has increased multiple AI companies such as Moore Threads, MetaX, and ModelArts, become the largest domestic compute open-source AI companies in China.

The company proactively practice the concept of green development, accelerate the green transformation of digital information infrastructure, building 43 national green compute facilities, maintaining industry-leading. The company deepen innovative AI energy-saving technology.

Carbon savings exceeds 540,000 tonnes, and promote 5G and 4G co-build co-share. The annual carbon reduction by both party exceed 13 million.

Innovate in transformation of energy consumption structure. Green energy usage exceed 4.2 billion kWh, increase 56%.

Green gas emission per unit continue to decline throughout the year. Externally, the company has strengthened green empowerment by creating diversified green products and solutions and accelerate the market expansion of key products, such as environmental protection cloud, green lighting, and green industry, continuously injecting momentum into the comprehensive green transformation of economic and social development.

The company applied sci-tech innovation achievement to fulfill social responsibility and safeguard communication activities of major events. It performs emergency relief operation leveraging satellite communication and low-altitude platform.

It commence rural digitization and universal services, building 490,000 digital villages, narrowing the digital divide. It has its caring stations serve mass public, and CT-Yun Cup held offering free compute data to university students.

The company attach great importance to market value management, as shareholders' return, and continue to improve quality, transparency of information disclosure, and striving to create favorable returns for shareholders. The board proposed the dividend payout ratio for 2025 increase by 3 percentage points compared to 2024, reach 75%, with the full year DPS of RMB 0.272, representing an increase of 4.7%, higher than net profit growth.

The high-quality development of the company is inseparable from the long-term support from our shareholders and analysts. We will always continue to move forward hand in hand with everyone to share the fruit of development.

2025 marks the final year of the 14th Five-Year Plan and a year of strategic planning and layout of 15th Five-Year Plan. Over the past five years, the company has fully implement cloudification strategy, carving out the new path transformation from traditional telco into service-oriented, technology-oriented, and secure enterprise.

Operating results achieved new leaps, and direction of transformation is fully validated, and will laying solid foundation for the 15th Five-Year Plan period. 2026 commence the 15th Five-Year Plan.

The company will seize the opportunities and fully implement cloudification, digital transformation, AI for Good strategy, firmly fulfill the responsibility, building cyberpower, a sci-tech power, and Digital China, and will continue to shoulder responsibility, and continue to deepen the 5-in-1 intelligent cloud system, take token service as a core business line, and develop itself as a leading AI service provider. The company strive for steady growth in service revenue, EBITDA, net profit for the full year on a comparable basis, and for intelligent revenue have rapid growth.

Next, we will invite Mr. Liu Guiqing to introduce the company's business and financial performance.

Thank you, Chairman Ke. Ladies and gentlemen, good afternoon.

I will now present the company's business and financial performance in 2025. In 2025, revenue from each business segment grew steadily.

The increase in OPEX was effectively controlled, and profitability continued to enhance. I will now provide further details on the development of each business segment.

The company adhere to the customer-centric approach, continuously promote the evolution of industrial and household products towards intelligent service, accelerating the upgrade of fundamental connectivity and intelligent platform, and continuously enrich the intelligent products portfolio. We innovatively create products, e-Surfing smart ringtone, smart panels, to enable users to embark on the intelligent and beneficial chapter of AI life.

At the same time, the company promote customer value management with greater efforts, continuously enhance digital capabilities in customer demand insights and precise digital matching, and strengthen the refined operation of 5G, FTTR, and privilege to stabilize customer value. In 2025, the company's fundamental business remained steady, with the scale of subscribers and revenue continued to grow.

Mobile communication service revenue increased by 1%. Value web operation achieved significant results, with blended ARPU of integrated subscribers reaching RMB 130.5, of which high-value integrated customers reached 64.58 million, with a net add of 2.26 million.

The company continued to deepen, cultivate and industrial digitization, and continue to deepen the integration of AI with digital economy, livelihood, and government administration. The Xingchen series platform underwent an advanced AI scene-based upgrade, with large model and AI agents being applied in large scale across industries, with over 350 industry AI Plus solutions, empowering the digital intelligent transformation of thousands of industries.

On digital economy, Xingchen industrial internet platform achieved AI implementation paradigm of small model detection, large model decision-making, and integrated data collection and control and execution, serving 128,000 enterprise. On digital livelihood, the Xingchen intelligent education platform creates an intelligent agent matrix for home-school synergy to achieve AI teaching, AI learning, management, and research, serving 190,000 schools.

On digital government admin, the Xingchen smart government admin platform and Xingchen smart city platform empower core scenes such as market supervision, social governance, public services, and urban operations, serving more than 250 cities, with market share more than 20%. In AI era, creating the new form of AI economy require accelerating transformation and upgrading of traffic operation to token operation.

The 5-in-1 intelligent cloud system we proposed last year is the token operation framework. In the process of continuously deepening the intelligent cloud system, we have initially established advantages in areas such as power-compute coordination, CT-Yun platform, edge computing, compute-network integration, localized services, and cross-border services.

The company has already gained preliminary practical experience in token operations. It provides over 3,000 edge computing nodes that allows the agile deployment of inference compute on demand.

The number of terminals such as AI handsets, cameras, and smart panels exceed 25 million. The user base for various AI applications such as cloud drive, communication assistant, and smart ringtones exceed 110 million.

Our physical outlets and installation maintenance team has progressively becoming localized AI delivery forces. Taking the private deployment for large enterprise of CT-Yun platform as an example, 73 custom-made AI agent drove an annual consumption of 1.2 trillion tokens.

Token services will be the company's core business line going forward. The company will strengthen the proprietary token, expand its ecosystem token, and proactively explore global token operation.

Adhere to the value operation and provide differentiated service and pricing based on the general, professional, and customized tokens. For public customers, we will innovate the operation of token packages, create distinctive privilege, and extend value space.

For SME and micro-enterprises, we will launch coding plans package. For government and large enterprise, we will provide privatized deployment plus token wholesale.

For the overseas customers, we will provide integrated domestic and overseas token packages. The company continued to create excellent security products and first-class security service, accelerating the intelligent upgrade of security capabilities across all segments: terminal, edge, network, and cloud, providing customers with more and rich, reliable, and intelligent security protection.

In 2025, revenue of Cloud Dam reached RMB 3.87 billion, representing an increase of 20.9%. Number of secure connection increased by 69%.

Meanwhile, we are actively constructing a security system covering model, data, and application. The number of parameters of Xingchen Chengwei security model reached 10 billion level.

LLM foundation security guardrail has effectively increased the compliance rate of model generated content. The company continue to promote the integration of quantum technology into livelihood scenes and empower industrial development, facilitating the transformation of frontier technologies from technical concepts into practical products.

Full-stack quantum products have accelerated their commercial application, creating over 50 Quantum Plus scene solutions, and serving over 5,000 industry customers in fields such as government administration, finance, and energy. The company's platform-based emerging business developed rapidly.

In IoVT, construct the intelligent network for the interconnection of people, things, and environment, and AI Plus vision network scene application has widely implemented, with the revenue amount to RMB 7.8 billion, increased by 31.3%. The self-developed e-Surfing IoT platform, which is the world's first, largest, and most widely covered billion-level cross-cluster scheduling platform, is positioned in the leader quadrant of China's AIoT platform, with over 740 million connected users.

Create a newly upgrade AI+1+1+4+N low-altitude economy capability system, and implement over 1,000 projects in 162 cities, in fields such as water conservancy, transportation, and smart cities. The number of direct-to-satellite mobile phone subscribers exceeding 8.2 million, with over 26 million devices.

The number of auto companies using direct-to-satellite vehicle services expands to nine, covering over 100,000 vehicles. The company continued to increase its global cloud-network resources and ecology layout, seizing opportunities for strategic emerging business to expand overseas, and maintain rapid growth in international businesses, with revenue reached RMB 19.3 billion in 2025, representing an increase of 14%.

The company's strategic emerging business continued to achieve breakthroughs in overseas market, with overseas cloud business revenue increased by 36%. The IoVT platform launched overseas, and the Tiantong handsets direct-to-satellite service commercially launched in Southeast Asia.

Overseas projects such as quantum, security, and IoT continued to make new progress. The company strengthened the refined management of resources initiatives, deepening the empowerment of cost reduction and efficiency enhancement through AI and big data, and improve resources utilization efficiency to effectively support the high-quality development, with OPEX increasing by 0.1%.

In 2025, the company's financial strength continued to enhance, with EBITDA increased by 2.1%. The debt-to-asset ratio declined by 1.1%.

The capital structure remained robust, and the credit rating was highest AAA level. That concludes our presentation.

Thank you.