Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Trading Symbol | CHA |
Entity Registrant Name | CHINA TELECOM CORP LTD |
Entity Central Index Key | 0001191255 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 67,054,958,321 |
Overseas listed H shares [member] | |
Document information [Line Items] | |
Entity Common Stock, Shares Outstanding | 13,877,410,000 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | ¥ 16,666 | ¥ 19,410 |
Short-term bank deposits | 6,814 | 3,100 |
Accounts receivable, net | 20,475 | 22,096 |
Contract assets | 478 | |
Inventories | 4,832 | 4,123 |
Prepayments and other current assets | 23,619 | 22,128 |
Income tax recoverable | 121 | 693 |
Total current assets | 73,005 | 71,550 |
Non-current assets | ||
Property, plant and equipment, net | 407,795 | 406,257 |
Construction in progress | 66,644 | 73,106 |
Lease prepayments | 21,568 | 22,262 |
Goodwill | 29,922 | 29,920 |
Intangible assets | 14,161 | 12,391 |
Interests in associates | 38,051 | 35,726 |
Investments | 1,154 | |
Equity instruments at fair value through other comprehensive income | 852 | |
Deferred tax assets | 6,544 | 5,479 |
Other assets | 4,840 | 3,349 |
Total non-current assets | 590,377 | 589,644 |
Total assets | 663,382 | 661,194 |
Current liabilities | ||
Short-term debt | 49,537 | 54,558 |
Current portion of long-term debt | 1,139 | 1,146 |
Accounts payable | 107,887 | 119,321 |
Accrued expenses and other payables | 43,497 | 98,695 |
Contract liabilities | 55,783 | |
Income tax payable | 601 | 404 |
Current portion of finance lease obligations | 101 | 51 |
Current portion of deferred revenues | 375 | 1,233 |
Total current liabilities | 258,920 | 275,408 |
Non-current liabilities | ||
Long-term debt | 44,852 | 48,596 |
Finance lease obligations | 115 | 26 |
Deferred revenues | 1,454 | 1,828 |
Deferred tax liabilities | 13,138 | 8,010 |
Other non-current liabilities | 804 | 629 |
Total non-current liabilities | 60,363 | 59,089 |
Total liabilities | 319,283 | 334,497 |
Equity | ||
Share capital | 80,932 | 80,932 |
Reserves | 262,137 | 244,935 |
Total equity attributable to equity holders of the Company | 343,069 | 325,867 |
Non-controlling interests | 1,030 | 830 |
Total equity | 344,099 | 326,697 |
Total liabilities and equity | ¥ 663,382 | ¥ 661,194 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Profit or loss [abstract] | |||
Operating revenues | ¥ 377,124 | ¥ 366,229 | ¥ 352,534 |
Operating expenses | |||
Depreciation and amortization | (75,493) | (74,951) | (67,942) |
Network operations and support | (116,062) | (103,969) | (94,156) |
Selling, general and administrative | (59,422) | (58,434) | (56,426) |
Personnel expenses | (59,736) | (56,043) | (54,504) |
Other operating expenses | (37,697) | (45,612) | (52,286) |
Total operating expenses | (348,410) | (339,009) | (325,314) |
Operating income | 28,714 | 27,220 | 27,220 |
Net finance costs | (2,708) | (3,291) | (3,235) |
Investment income | 38 | 147 | 40 |
Income from investments in associates | 2,104 | 877 | 91 |
Earnings before income tax | 28,148 | 24,953 | 24,116 |
Income tax | (6,810) | (6,192) | (5,993) |
Profit for the year | 21,338 | 18,761 | 18,123 |
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 | (324) | ||
Deferred tax on change in fair value of investments in equity instruments at fair value through other comprehensive income | 82 | ||
Items that will not be reclassified subsequently to profit or loss | (242) | ||
Other comprehensive income for the year, Items that may be reclassified subsequently to profit or loss: | |||
Change in fair value of available-for-sale equity securities | (400) | (228) | |
Deferred tax on change in fair value of available-for-sale equity securities | 100 | 57 | |
Exchange difference on translation of financial statements of subsidiaries outside mainland China | 154 | (259) | 190 |
Share of other comprehensive income of associates | (7) | 7 | 6 |
Items that may be reclassified subsequently to profit or loss | 147 | (552) | 25 |
Other comprehensive income for the year, net of tax | (95) | (552) | 25 |
Total comprehensive income for the year | 21,243 | 18,209 | 18,148 |
Profit attributable to | |||
Equity holders of the Company | 21,210 | 18,617 | 18,018 |
Non-controlling interests | 128 | 144 | 105 |
Profit for the year | 21,338 | 18,761 | 18,123 |
Total comprehensive income attributable to | |||
Equity holders of the Company | 21,115 | 18,065 | 18,043 |
Non-controlling interests | 128 | 144 | 105 |
Total comprehensive income for the year | ¥ 21,243 | ¥ 18,209 | ¥ 18,148 |
Basic earnings per share | ¥ 0.26 | ¥ 0.23 | ¥ 0.22 |
Number of shares | 80,932,368,321 | 80,932,368,321 | 80,932,368,321 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CNY (¥) ¥ in Millions | Total | Share capital [member] | Capital reserve [member] | Share premium [member] | Surplus reserve [member] | Other reserves [Member] | Exchange reserve [member] | Retained earnings [member] | Attributable to equity holders of the company [member] | Non-controlling interests [member] | |
Beginning balance at Dec. 31, 2015 | ¥ 304,790 | ¥ 80,932 | ¥ 17,160 | ¥ 10,746 | ¥ 70,973 | ¥ 876 | ¥ (812) | ¥ 123,948 | ¥ 303,823 | ¥ 967 | |
Profit for the year | 18,123 | 18,018 | 18,018 | 105 | |||||||
Other comprehensive income for the year | 25 | (165) | 190 | 25 | |||||||
Total comprehensive income for the year | 18,148 | (165) | 190 | 18,018 | 18,043 | 105 | |||||
Disposal of a subsidiary | (15) | (15) | |||||||||
Distribution to non-controlling interests | (86) | (86) | |||||||||
Dividends | (6,489) | (6,489) | (6,489) | ||||||||
Appropriations | 1,638 | (1,638) | |||||||||
Beginning balance at Dec. 31, 2015 | 304,790 | 80,932 | 17,160 | 10,746 | 70,973 | 876 | (812) | 123,948 | 303,823 | 967 | |
Profit for the year | 18,123 | 18,018 | 18,018 | 105 | |||||||
Other comprehensive income for the year | 25 | (165) | 190 | 25 | |||||||
Total comprehensive income for the year | 18,148 | (165) | 190 | 18,018 | 18,043 | 105 | |||||
Disposal of a subsidiary | (15) | (15) | |||||||||
Distribution to non-controlling interests | (86) | (86) | |||||||||
Dividends | (6,489) | (6,489) | (6,489) | ||||||||
Appropriations | 1,638 | (1,638) | |||||||||
Ending balance at Dec. 31, 2016 | 316,348 | 80,932 | 17,160 | 10,746 | 72,611 | 711 | (622) | 133,839 | 315,377 | 971 | |
Profit for the year | 18,761 | 18,617 | 18,617 | 144 | |||||||
Other comprehensive income for the year | (552) | (293) | (259) | (552) | |||||||
Total comprehensive income for the year | 18,209 | (293) | (259) | 18,617 | 18,065 | 144 | |||||
Distribution to non-controlling interests | (89) | (89) | |||||||||
Dividends | (7,530) | (7,530) | (7,530) | ||||||||
Appropriations | 1,686 | (1,686) | |||||||||
Others | (4) | (4) | (4) | ||||||||
Beginning balance at Dec. 31, 2016 | 316,348 | 80,932 | 17,160 | 10,746 | 72,611 | 711 | (622) | 133,839 | 315,377 | 971 | |
Profit for the year | 18,761 | 18,617 | 18,617 | 144 | |||||||
Other comprehensive income for the year | (552) | (293) | (259) | (552) | |||||||
Total comprehensive income for the year | 18,209 | (293) | (259) | 18,617 | 18,065 | 144 | |||||
Acquisition of the Eighth Acquired Group | (87) | (80) | (7) | (87) | |||||||
Acquisition of non-controlling interests | (150) | 46 | 46 | (196) | |||||||
Distribution to non-controlling interests | (89) | (89) | |||||||||
Dividends | (7,530) | (7,530) | (7,530) | ||||||||
Appropriations | 1,686 | (1,686) | |||||||||
Ending balance (Changes in accounting policies [member]) at Dec. 31, 2017 | 2,974 | 302 | 2,673 | 2,975 | (1) | ||||||
Ending balance (Restated balance [member]) at Dec. 31, 2017 | [1] | 329,671 | 80,932 | 17,126 | 10,746 | 74,599 | 414 | (881) | 145,906 | 328,842 | 829 |
Ending balance at Dec. 31, 2017 | 326,697 | 80,932 | 17,126 | 10,746 | 74,297 | 414 | (881) | 143,233 | 325,867 | 830 | |
Profit for the year | 21,338 | 21,210 | 21,210 | 128 | |||||||
Other comprehensive income for the year | (95) | (249) | 154 | (95) | |||||||
Total comprehensive income for the year | 21,243 | (249) | 154 | 21,210 | 21,115 | 128 | |||||
Disposal of a subsidiary | 5 | 5 | |||||||||
Distribution to non-controlling interests | (177) | (177) | |||||||||
Dividends | (7,568) | (7,568) | (7,568) | ||||||||
Appropriations | 1,875 | (1,875) | |||||||||
Beginning balance (Changes in accounting policies [member]) at Dec. 31, 2017 | 2,974 | 302 | 2,673 | 2,975 | (1) | ||||||
Beginning balance (Restated balance [member]) at Dec. 31, 2017 | [1] | 329,671 | 80,932 | 17,126 | 10,746 | 74,599 | 414 | (881) | 145,906 | 328,842 | 829 |
Beginning balance at Dec. 31, 2017 | 326,697 | 80,932 | 17,126 | 10,746 | 74,297 | 414 | (881) | 143,233 | 325,867 | 830 | |
Profit for the year | 21,338 | 21,210 | 21,210 | 128 | |||||||
Other comprehensive income for the year | (95) | (249) | 154 | (95) | |||||||
Total comprehensive income for the year | 21,243 | (249) | 154 | 21,210 | 21,115 | 128 | |||||
Disposal of investments in equity instruments at fair value through other comprehensive income | (5) | 5 | |||||||||
Disposal of a subsidiary | 5 | 5 | |||||||||
Contribution from non-controlling interests | 945 | 680 | 680 | 265 | |||||||
Reduction of capital by non-controlling interests | (20) | (20) | |||||||||
Distribution to non-controlling interests | (177) | (177) | |||||||||
Dividends | (7,568) | (7,568) | (7,568) | ||||||||
Appropriations | 1,875 | (1,875) | |||||||||
Ending balance at Dec. 31, 2018 | ¥ 344,099 | ¥ 80,932 | ¥ 17,806 | ¥ 10,746 | ¥ 76,474 | ¥ 160 | ¥ (727) | ¥ 157,678 | ¥ 343,069 | ¥ 1,030 | |
[1] | restated |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement of cash flows [abstract] | ||||
Net cash from operating activities | [1] | ¥ 99,298 | ¥ 96,502 | ¥ 101,135 |
Cash flows used in investing activities | ||||
Capital expenditure | (83,835) | (87,334) | (96,678) | |
Lease prepayments | (20) | (89) | (99) | |
Purchase of investments | [2] | (328) | (443) | (3,099) |
Proceeds from disposal of property, plant and equipment | 1,866 | 2,066 | 1,560 | |
Proceeds from disposal of lease prepayments | 45 | 72 | 10 | |
Proceeds from disposal of investments | 96 | |||
Net cash (outflow) / inflow from disposal of subsidiaries | (1) | 184 | (50) | |
Purchase of short-term bank deposits | (7,726) | (2,815) | (3,237) | |
Maturity of short-term bank deposits | 3,949 | 3,096 | 2,550 | |
Net cash used in investing activities | (85,954) | (85,263) | (99,043) | |
Cash flows used in financing activities | ||||
Principal element of finance lease payments | (73) | (84) | (59) | |
Proceeds from bank debt and other loans | 97,829 | 123,250 | 110,446 | |
Repayments of bank debt and other loans | (106,923) | (69,953) | (113,366) | |
Repayment of deferred consideration in respect of the Mobile Network Acquisition | (61,710) | |||
Payment of the acquisition price of the Eighth Acquisition (Note 1) | (87) | |||
Payment of dividends | (7,568) | (7,530) | (6,489) | |
Cash distributions to non-controlling interests | (177) | (89) | (87) | |
Payment for the acquisition of non-controlling interests | (119) | (31) | ||
Contribution from non-controlling interests | 855 | |||
Reduction of capital by non-controlling interests | (20) | |||
Net cash used in financing activities | (16,283) | (16,147) | (9,555) | |
Net decrease in cash and cash equivalents | (2,939) | (4,908) | (7,463) | |
Cash and cash equivalents at beginning of year | 19,410 | 24,617 | 31,869 | |
Effect of changes in foreign exchange rate | 195 | (299) | 211 | |
Cash and cash equivalents at end of year | ¥ 16,666 | ¥ 19,410 | ¥ 24,617 | |
[1] | Reconciliation of earnings before income tax to net cash from operating activities | |||
[2] | The amount for the year ended December 31, 2016 included the payment for the cash injection amounting to RMB2,966 ("Cash Consideration") to China Tower Corporation Limited ("China Tower") in relation to the disposal of certain telecommunications towers and related assets to China Tower (the "Tower Assets Disposal") in 2015. The Cash Consideration was paid in February 2016. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement [LineItems] | ||||
Earnings before income tax | ¥ 28,148 | ¥ 24,953 | ¥ 24,116 | |
Adjustments for: | ||||
Depreciation and amortization | 75,493 | 74,951 | 67,942 | |
Credit impairment losses, net of reversal | 2,050 | 2,036 | 2,278 | |
Impairment losses for long-lived assets | 10 | 62 | ||
Write down of inventories | 66 | 178 | 176 | |
Investment income | (38) | (147) | (40) | |
Income from investments in associates | (2,104) | (877) | (91) | |
Interest income | (306) | (429) | (354) | |
Interest expense | 3,093 | 3,586 | 3,702 | |
Net foreign exchange (gain) / loss | (79) | 134 | (113) | |
Net loss on retirement and disposal of long-lived assets | 1,757 | 1,841 | 1,867 | |
Increase in accounts receivable | (1,848) | (2,770) | (2,306) | |
Decrease in contract assets | 170 | |||
Decrease / (increase) in inventories | (622) | 905 | 1,038 | |
Increase in prepayments and other current assets | (1,349) | (2,618) | (3,783) | |
Decrease / (increase) in other assets | 271 | (231) | 366 | |
Increase / (decrease) in accounts payable | (3,181) | (4,213) | 3,755 | |
Increase in accrued expenses and other payables | 9,842 | 7,232 | 10,878 | |
Decrease in contract liabilities | (6,414) | |||
Decrease in deferred revenues | (138) | (202) | (418) | |
Cash generated from operations | 104,811 | 104,339 | 109,075 | |
Interest received | 306 | 433 | 366 | |
Interest paid | (3,094) | (3,707) | (3,737) | |
Investment income received | 34 | 63 | 57 | |
Income tax paid | (2,759) | (4,626) | (4,626) | |
Net cash from operating activities | [1] | 99,298 | 96,502 | 101,135 |
Purchase of investments | [2] | 328 | 443 | 3,099 |
China Tower [member] | ||||
Adjustments for: | ||||
Purchase of investments | ¥ 2,966 | |||
[1] | Reconciliation of earnings before income tax to net cash from operating activities | |||
[2] | The amount for the year ended December 31, 2016 included the payment for the cash injection amounting to RMB2,966 ("Cash Consideration") to China Tower Corporation Limited ("China Tower") in relation to the disposal of certain telecommunications towers and related assets to China Tower (the "Tower Assets Disposal") in 2015. The Cash Consideration was paid in February 2016. |
Principal Activities, Organizat
Principal Activities, Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Principal Activities, Organization and Basis of Presentation | 1. PRINCIPAL ACTIVITIES, ORGANIZATION AND BASIS OF PRESENTATION Principal activities China Telecom Corporation Limited (the “Company”) and its subsidiaries (hereinafter, collectively referred to as the “Group”) offers a comprehensive range of wireline and mobile telecommunications services including voice, Internet, telecommunications network resource and equipment services, information and application services and other related services. The Group provides wireline telecommunications services and related services in Beijing Municipality, Shanghai Municipality, Guangdong Province, Jiangsu Province, Zhejiang Province, Anhui Province, Fujian Province, Jiangxi Province, Guangxi Zhuang Autonomous Region, Chongqing Municipality, Sichuan Province, Hubei Province, Hunan Province, Hainan Province, Guizhou Province, Yunnan Province, Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Hui Autonomous Region and Xinjiang Uygur Autonomous Region of the People’s Republic of China (the “PRC”). The Group also provides mobile telecommunications and related services in the mainland China and Macau Special Administrative Region (“Macau”) of the PRC. The Group also provides international telecommunications services, including network equipment services, international Internet access and transit, Internet data center and mobile virtual network services in certain countries and regions of the Asia Pacific, Europe, Africa, South America and North America. The operations of the Group in the mainland China are subject to the supervision and regulation by the PRC government. Organization As part of the reorganization (the “Restructuring”) of China Telecommunications Corporation, the Company was incorporated in the PRC on September 10, 2002. In connection with the Restructuring, China Telecommunications Corporation transferred to the Company the wireline telecommunications business and related operations in Shanghai Municipality, Guangdong Province, Jiangsu Province and Zhejiang Province together with the related assets and liabilities in consideration for 68,317 ordinary domestic shares of the Company. The shares issued to China Telecommunications Corporation have a par value of RMB1.00 each and represented the entire registered and issued share capital of the Company at that date. On December 31, 2003, the Company acquired the entire equity interests in Anhui Telecom Company Limited, Fujian Telecom Company Limited, Jiangxi Telecom Company Limited, Guangxi Telecom Company Limited, Chongqing Telecom Company Limited and Sichuan Telecom Company Limited (collectively the “First Acquired Group”) and certain network management and research and development facilities from China Telecommunications Corporation for a total purchase price of RMB46,000 (hereinafter, referred to as the “First Acquisition”). On June 30, 2004, the Company acquired the entire equity interests in Hubei Telecom Company Limited, Hunan Telecom Company Limited, Hainan Telecom Company Limited, Guizhou Telecom Company Limited, Yunnan Telecom Company Limited, Shaanxi Telecom Company Limited, Gansu Telecom Company Limited, Qinghai Telecom Company Limited, Ningxia Telecom Company Limited and Xinjiang Telecom Company Limited (collectively the “Second Acquired Group”) from China Telecommunications Corporation for a total purchase price of RMB27,800 (hereinafter, referred to as the “Second Acquisition”). On June 30, 2007, the Company acquired the entire equity interests in China Telecom System Integration Co., Ltd. (“CTSI”), China Telecom Global Limited (“CT Global”) and China Telecom (Americas) Corporation (“CT Americas”) (collectively the “Third Acquired Group”) from China Telecommunications Corporation for a total purchase price of RMB1,408 (hereinafter, referred to as the “Third Acquisition”). On June 30, 2008, the Company acquired the entire equity interest in China Telecom Group Beijing Corporation (“Beijing Telecom” or the “Fourth Acquired Company”) from China Telecommunications Corporation for a total purchase price of RMB5,557 (hereinafter, referred to as the “Fourth Acquisition”). On August 1, 2011 and December 1, 2011, the subsidiaries of the Company, E-surfing (“E-surfing E-surfing (“E-surfing e-commerce E-surfing On April 30, 2012, the Company acquired the digital trunking business (the “Sixth Acquired Business”) from Besttone Holding Co., Ltd. (“Besttone Holding”), a subsidiary of China Telecommunications Corporation, at a purchase price of RMB48 (hereinafter, referred to as the “Sixth Acquisition”). On December 31, 2013, CT Global , a subsidiary of the Company, acquired 100% equity interest in China Telecom (Europe) Limited (“CT Europe” or the “Seventh Acquired Company”), a wholly owned subsidiary of China Telecommunications Corporation, from China Telecommunications Corporation for a total purchase price of RMB278 (hereinafter, referred to as the “Seventh Acquisition”). On October 31, 2017, the Company disposed of the 100% equity interest in Chengdu E-store (“E-store”), E-store Analysis of assets and liabilities of the disposed subsidiary: October 31, 2017 RMB Current Assets Cash and cash equivalents 65 Accounts receivable, net 48 Prepayments and other current assets 67 Non-current Property, plant and equipment, net 16 Intangible assets 3 Current liabilities Accounts payable 29 Accrued expenses and other payables 27 Net assets disposal of 143 Gain on disposal of a subsidiary: 2017 RMB Consideration for the disposal 251 Net assets disposed of (143 ) Gain on disposal 108 The gain on disposal of E-store Net cash inflow from disposal of a subsidiary: 2017 RMB Consideration received in cash and cash equivalents 249 Less: Cash and cash equivalents disposed of (65 ) Net cash inflow from disposal of a subsidiary 184 In December 2017, the Company acquired the satellite communications business (the “Satcom Business”) from China Telecom Satellite Communication Co., Ltd., a wholly owned subsidiary of China Telecommunications Corporation, at a purchase price of RMB70. In the same month, E-surfing Hereinafter, the First Acquired Group, the Second Acquired Group, the Third Acquired Group, the Fourth Acquired Company, the Fifth Acquired Group, the Sixth Acquired Business, the Seventh Acquired Company and the Eighth Acquired Group are collectively referred to as the “Acquired Groups”. Basis of presentation Since the Group and the Acquired Groups are under common control of China Telecommunications Corporation, the Group’s acquisitions of the Acquired Groups have been accounted for as a combination of entities under common control in a manner similar to a pooling-of-interests. The consolidated results of operations for the year ended December 31, 2016 and the consolidated statement of financial position as of December 31, 2016 as previously reported by the Group and the combined amounts presented in the consolidated financial statements of the Group to reflect the acquisition of the Eighth Acquired Group are set out below: The Group (as previously RMB The Eighth Acquired Group RMB The Group (restated) RMB Consolidated statement of comprehensive income for the year ended December 31, 2016: Operating revenues 352,285 249 352,534 Profit for the year 18,109 14 18,123 Consolidated statement of financial position as of December 31, 2016: Total assets 652,368 190 652,558 Total liabilities 336,073 137 336,210 Total equity 316,295 53 316,348 For the periods presented, all significant transactions and balances between the Group and the Eighth Acquired Group have been eliminated on combination. Merger with subsidiaries Pursuant to the resolution passed by the Company’s shareholders at an Extraordinary General Meeting held on February 25, 2008, the Company entered into merger agreements with each of the following subsidiaries: Shanghai Telecom Company Limited, Guangdong Telecom Company Limited, Jiangsu Telecom Company Limited, Zhejiang Telecom Company Limited, Anhui Telecom Company Limited, Fujian Telecom Company Limited, Jiangxi Telecom Company Limited, Guangxi Telecom Company Limited, Chongqing Telecom Company Limited, Sichuan Telecom Company Limited, Hubei Telecom Company Limited, Hunan Telecom Company Limited, Hainan Telecom Company Limited, Guizhou Telecom Company Limited, Yunnan Telecom Company Limited, Shaanxi Telecom Company Limited, Gansu Telecom Company Limited, Qinghai Telecom Company Limited, Ningxia Telecom Company Limited and Xinjiang Telecom Company Limited. In addition, the Company entered into merger agreements with Beijing Telecom on July 1, 2008. Pursuant to these merger agreements, the Company merged with these subsidiaries and the assets, liabilities and business operations of these subsidiaries were transferred to the Company’s branches in the respective regions. |
Application of New and Amendmen
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation | 2. APPLICATION OF NEW AND AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRSs”) AND INTERPRETATION In the current year, the Group has applied, for the first time, the following new and amendments to IFRSs and interpretation issued by the International Accounting Standards Board (“IASB”) that are mandatorily effective for the current year: • IFRS 9, “Financial Instruments” • IFRS 15, “Revenue from Contracts with Customers” • IFRIC 22, “Foreign Currency Transactions and Advance Consideration” • Amendments to IFRS 2, “Classification and Measurement of Share-based Payment Transactions” • Amendments to IFRS 4, “Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts” • Amendments to IAS 40, “Transfers of Investment Property” • Amendments to IAS 28 as part of the “Annual Improvements to IFRS Standards 2014-2016 Cycle” Except for IFRS 9, “Financial Instruments” “Revenue from Contracts with Customers” The Group has not yet applied any new and revised standard or interpretation that is not yet effective for the current year (Note 42). 2.1 IFRS 15, “Revenue from Contracts with Customers” The Group has applied IFRS 15 for the first time in the current year. IFRS 15 superseded IAS 18, “Revenue” “Construction Contracts” The Group has applied IFRS 15 retrospectively with the cumulative effect of initially applying this standard recognized at the date of initial application, January 1, 2018. Any difference at the date of initial application is recognized in the opening reserves and comparative information has not been restated. Furthermore, in accordance with the transition provisions in IFRS 15, the Group has elected to apply the standard retrospectively only to the contracts that are not completed at January 1, 2018. Accordingly, certain comparative information may not be comparable as comparative information was prepared under IAS 18, “Revenue” The Group recognizes revenue from the following major sources which arise from contracts with customers: • Telecommunications services, including voice, Internet, information and application and telecommunications network resource and equipment services, and resale of mobile services (MVNO); and • Sales, and repair and maintenance of telecommunications equipment and others. Information about the Group’s performance obligations and the accounting policies resulting from application of IFRS 15 are disclosed in Notes 25 and 3(m) respectively. Summary of effects arising from initial application of IFRS 15 The following table summarizes the impacts of transition to IFRS 15 on reserves as of January 1, 2018. RMB Reserves Consideration payable to customers 2,884 Contract with multiple performance obligations 663 Incremental costs of obtaining contracts 1,210 Tax effect (1,066 ) Increase as of 1 January 2018 3,691 The following adjustments were made to the amounts recognized in the consolidated statement of financial position as of January 1, 2018. Line items that were not affected by the changes have not been included. Carrying amounts December 31, 2017 Carrying amounts January 1, 2018* Notes Reclassification Remeasurement RMB RMB RMB RMB Non-current Other assets (a ) 3,349 — 1,210 4,559 Current assets Accounts receivable, net (b ) 22,096 (596 ) — 21,500 Contract assets (b,e ) — 633 23 656 Prepayments and other current assets (b ) 22,128 (37 ) — 22,091 Current liabilities Accrued expenses and other payables (c ) 98,695 (64,912 ) — 33,783 Contract liabilities (c,d,e ) — 65,699 (3,524 ) 62,175 Current portion of deferred revenues (c ) 1,233 (787 ) — 446 Non-current Deferred tax liabilities (a,d,e ) 8,010 — 1,066 9,076 Equity Reserves 244,935 — 3,691 248,626 * The amounts in this column are before the adjustments from the application of IFRS 9. Notes: (a) The Group incurred incremental commission paid/payable to third party agents in connection with obtaining the contracts with customers. These amounts were previously expensed as incurred. At the date of initial application of IFRS 15, incremental costs of obtaining contracts, netted off deferred tax, amounting to RMB940 were recognized with corresponding adjustments to reserves. (b) At the date of initial application of IFRS 15, unbilled revenue of RMB633 arising from information and application service contracts are conditional on the Group’s achieving specified milestones as stipulated in the contracts, and hence such balance was reclassified from accounts receivable and prepayments and other current assets to contract assets. (c) At the date of initial application of IFRS 15, considerations received from telecommunications service contracts included in receipts in advance and deferred revenues amounting to RMB64,912 and RMB787, respectively, were reclassified from accrued expenses and other payables and current portion of deferred revenues to contract liabilities. (d) Certain subsidies payable to third party agents incurred by the Group in respect of customer contracts, which will be ultimately enjoyed by end customers, and other subsidies incurred by the Group directly payable to its customers, were previously expensed as incurred. At the date of initial application of IFRS 15, such subsidies were considered as consideration payable to customers and the related impact, netted off deferred tax, amounting to RMB2,224 were recognized with corresponding adjustments to reserves. (e) The sales of terminal equipment and the provision of telecommunications services represent separate performance obligations from the Group’s direct sales of promotional packages. The total contract consideration of a promotional package is previously allocated to revenues generated from the provision of telecommunications services and the sales of terminal equipment using the residual method. At the date of initial application of IFRS 15, the transaction price was allocated to each performance obligation in the contract on a relative stand-alone selling price basis, and the consideration allocated to sales of terminal equipment was recognized as revenue at contract inception, i.e. when the equipment are delivered, while consideration allocated to provision of telecommunications services would be subsequently recognized as revenue as services are delivered during the contract period, with the impact, netted of deferred tax, amounting to RMB527 recognized with corresponding adjustments to reserves. The following tables summarize the impacts of applying IFRS 15 on the Group’s consolidated statement of financial position as of December 31, 2018 and its consolidated statement of comprehensive income and consolidated statement of cash flows for the current year for each of the line items affected. Line items that were not affected by the changes have not been included. Impact on the consolidated statement of financial position Notes As reported as of Adjustments Amounts without RMB RMB RMB Non-current Other assets (a ) 4,840 (1,287 ) 3,553 Current assets Accounts receivable, net (b ) 20,475 461 20,936 Contract assets (b,e ) 478 (478 ) — Current liabilities Accrued expenses and other payables (c,d,e ) 43,497 57,681 101,178 Contract liabilities (c ) 55,783 (55,783 ) — Current portion of deferred revenues (c ) 375 765 1,140 Non-current Deferred tax liabilities 13,138 (869 ) 12,269 Equity Reserves 262,137 (3,098 ) 259,039 Impact on the consolidated statement of comprehensive income Notes As reported Adjustments Amounts without application of IFRS RMB RMB RMB Operating revenues (d,e ) 377,124 4,377 381,501 Operating expenses Selling, general and administrative (a,d,e ) 59,422 3,956 63,378 Other operating expenses (e ) 37,697 (369 ) 37,328 Total operating expenses 348,410 3,587 351,997 Operating profit 28,714 790 29,504 Profit before taxation 28,148 790 28,938 Income tax 6,810 197 7,007 Profit for the year 21,338 593 21,931 Total comprehensive income for the year 21,243 593 21,836 Impact on the consolidated statement of cash flows As reported Adjustments Amounts without RMB RMB RMB Profit before taxation 28,148 790 28,938 Operating profit before changes in working capital 108,080 790 108,870 Increase in accounts receivable (1,848 ) 164 (1,684 ) Decrease in contract assets 170 (170 ) — Decrease in other assets 271 77 348 Increase in accrued expenses and other payables 9,842 (7,253 ) 2,589 Decrease in contract liabilities (6,414 ) 6,414 — Decrease in contract revenues (138 ) (22 ) (160 ) Net cash from operating activities 99,298 — 99,298 Notes: (a) The Group incurred incremental commission paid/payable to third party agents in connection with obtaining the contracts with customers. These amounts were previously expensed as incurred. Upon application of IFRS 15, incremental costs of obtaining contracts were recognized as an asset if the Group expects to recover such cost. The asset so recognized was subsequently amortized to consolidated statement of comprehensive income on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the asset relates. This change in accounting policy resulted in a reduction of operating expenses by RMB77 for the year ended December 31, 2018, and an increase in contract costs, included in other assets, by RMB1,287 as of December 31, 2018. (b) At December 31, 2018, upon application of IFRS 15, unbilled revenue of RMB461 arising from information and application service contracts are conditional on the Group’s achieving specified milestones as stipulated in the contracts, and hence such balance was recognized as contract assets. Before application of IFRS 15, such balance was presented as accounts receivable. (c) At December 31, 2018, upon application of IFRS 15, consideration received from telecommunications service contracts amounting to RMB55,783 was recognized as contract liability. Before application of IFRS 15, such balance was presented as receipts in advance (included in accrued expenses and other payables) and current portion of deferred revenues amounting to RMB55,018 and RMB765, respectively. (d) Certain subsidies payable to third party agents incurred by the Group in respect of customer contracts, which will be ultimately enjoyed by end customers, and other subsidies incurred by the Group directly payable to its customers, were previously expensed as incurred. Upon application of IFRS 15, such subsidies were considered as consideration payable to a customer and were accounted for as a reduction of operating revenues unless the payment to the customer is in exchange for a distinct good or service that the customer transfers to the Group and the fair value of the good or service received from the customer can be reasonably estimated. This change in accounting policy resulted in a reduction of operating revenues by RMB3,897 and a reduction of operating expenses by RMB3,510 for the year ended December 31, 2018, and a reduction of contract liabilities, which was presented as accrued expenses and other payables before application of IFRS 15, by RMB2,497 as of December 31, 2018. (e) The sales of terminal equipment and the provision of telecommunications services represent separate performance obligations from the Group’s sales of promotional packages. The total contract consideration of a promotional package is previously allocated to revenues generated from the provision of telecommunications services and the sales of terminal equipment using the residual method. Upon application of IFRS 15, the transaction price was allocated to each performance obligation in the contract on a relative stand-alone selling price basis, and the consideration allocated to sales of terminal equipment was recognized as revenue at contract inception, i.e. when the equipment are delivered, while consideration allocated to provision of telecommunications services would be subsequently recognized as revenue as services are delivered during the contract period. This change in accounting policy resulted in a reduction of operating revenues by RMB480 for the year ended December 31, 2018, a reduction of contract liabilities, which was presented as accrued expenses and other payables before application of IFRS 15, by RMB166, and an increase of contract assets by RMB17 as of December 31, 2018. 2.2 IFRS 9, “Financial Instruments” In the current year, the Group has applied IFRS 9, “Financial instruments” and the related consequential amendments to other IFRSs. IFRS 9 introduces new requirements for (1) the classification and measurement of financial assets and financial liabilities, (2) expected credit losses (“ECL”) for financial assets and other items (for example, contract assets) and (3) general hedge accounting. The Group has applied IFRS 9 in accordance with the transition provisions set out in IFRS 9, i.e. applied the classification and measurement requirements (including impairment under ECL model) retrospectively to instruments that have not been derecognized as of January 1, 2018 (date of initial application) and has not applied the requirements to instruments that have already been derecognized as of January 1, 2018. The difference between carrying amounts as of December 31, 2017 and the carrying amounts as of January 1, 2018 are recognized in the opening reserves, without restating comparative information. Accordingly, certain comparative information may not be comparable as comparative information was prepared under IAS 39, “Financial Instruments: Recognition and Measurement” Accounting policies resulting from application of IFRS 9 are disclosed in Note 3(k). Summary of effects arising from initial application of IFRS 9 The table below illustrates the classification and measurement of financial assets and other items subject to ECL under IFRS 9 and IAS 39 at the date of initial application, January 1, 2018. Notes Investments Equity instruments at fair value through other income Accounts receivable Contract Prepayments and other Deferred Deferred Reserves Non- RMB RMB RMB RMB RMB RMB RMB RMB RMB Closing balance as of December 31, 2017 – IAS 39 1,154 — 22,096 — 22,128 5,479 8,010 244,935 830 Effect arising from initial application of IFRS 15 — — (596 ) 656 (37 ) — 1,066 3,691 — Effect arising from initial application of IFRS 9: Reclassification From investments (a ) (1,154 ) 1,154 — — — — — — — Remeasurement Impairment under ECL model (b ) — — (919 ) — (1 ) 203 — (716 ) (1 ) Opening balance as of January 1, 2018 — 1,154 20,581 656 22,090 5,682 9,076 247,910 829 Notes: (a) Available for sale (“AFS”) investments From AFS equity investments to equity instruments at fair value through other comprehensive income (“FVTOCI”) The Group elected to present in other comprehensive income (“OCI”) for the fair value changes of all its equity investments previously classified as available-for-sale (b) Impairment under ECL model The Group applies the IFRS 9 simplified approach to measure ECL which uses a lifetime ECL for all accounts receivable and contract assets. To measure the ECL, accounts receivable and contract assets have been grouped based on shared credit risk characteristics, nature of services provided as well as type of customers. The contract assets relate to unbilled work in progress and have substantially the same risk characteristics as accounts receivable for the same types of contracts. The Group has therefore concluded that the expected loss rates for accounts receivable are a reasonable approximation of the loss rates for contract assets. Loss allowances for other financial assets at amortized cost mainly comprise of financial assets included in prepayments and other current assets, are measured on 12-month As of January 1, 2018, the additional credit loss allowance of RMB920 and the related deferred tax impact of RMB203 have been recognized against reserves and non-controlling All loss allowances for financial assets measured at amortized cost, including accounts receivable and financial assets included in prepayments and other current assets as of December, 31 2017 reconciled to the opening loss allowance as of January,1 2018 are as follows: Accounts Prepayments and RMB RMB As of December 31, 2017 – IAS 39 3,842 370 Amount remeasured through opening reserves 919 1 As of January 1, 2018 4,761 371 2.3 Impacts on opening consolidated statement of financial position arising from the application of all new standards As a result of the changes in the Group’s accounting policies above, the opening consolidated statement of financial position had to be restated. The following table shows the adjustments recognized for each of the line items affected. December 31, IFRS IFRS January 1, RMB RMB RMB RMB (audited) (restated) Non-current Investments 1,154 — (1,154 ) — Equity instruments at fair value through other comprehensive income — — 1,154 1,154 Deferred tax assets 5,479 — 203 5,682 Other assets 3,349 1,210 — 4,559 Others with no adjustments 579,662 — — 579,662 Total non-current 589,644 1,210 203 591,057 Current assets Accounts receivable, net 22,096 (596 ) (919 ) 20,581 Contract assets — 656 — 656 Prepayments and other current assets 22,128 (37 ) (1 ) 22,090 Others with no adjustments 27,326 — — 27,326 Total current assets 71,550 23 (920 ) 70,653 Total assets 661,194 1,233 (717 ) 661,710 Current liabilities Accrued expenses and other payables 98,695 (64,912 ) — 33,783 Contract liabilities — 62,175 — 62,175 Current portion of deferred revenues 1,233 (787 ) — 446 Others with no adjustments 175,480 — — 175,480 Total current liabilities 275,408 (3,524 ) — 271,884 Net current liabilities (203,858 ) 3,547 (920 ) (201,231 ) Total assets less current liabilities 385,786 4,757 (717 ) 389,826 Non-current Deferred tax liabilities 8,010 1,066 — 9,076 Others with no adjustments 51,079 — — 51,079 Total non-current 59,089 1,066 — 60,155 Total liabilities 334,497 (2,458 ) — 332,039 Equity Share capital 80,932 — — 80,932 Reserves 244,935 3,691 (716 ) 247,910 Total equity attributable to equity holders of the Company 325,867 3,691 (716 ) 328,842 Non-controlling 830 — (1 ) 829 Total equity 326,697 3,691 (717 ) 329,671 Total liabilities and equity 661,194 1,233 (717 ) 661,710 Note: For the purpose of reporting cash flows from operating activities under indirect method for the year ended December 31, 2018, movements in working capital have been computed based on opening consolidated statement of financial position as of January 1, 2018 as disclosed above. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Significant Accounting Policies | 3. SIGNIFICANT ACCOUNTING POLICIES (a) Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with IFRSs as issued by IASB. The consolidated financial statements of the Group have been prepared on a going concern basis. These consolidated financial statements were approved and authorized by the Board of Directors on March 19, 2019. The consolidated financial statements are prepared on the historical cost basis as modified by the revaluation of certain financial instruments measured at fair value (Note 3(k)). The preparation of consolidated financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates and associated assumptions are based on historical experience and various other factors that management believes are reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Judgments made by management in the application of IFRSs that have significant effect on the consolidated financial statements and major sources of estimation uncertainty are discussed in Note 41. (b) Basis of consolidation The consolidated financial statements comprise the Company and its subsidiaries and the Group’s interests in associates. A subsidiary is an entity controlled by the Company. When fulfilling the following conditions, the Company has control over an entity: (a) has power over the investee, (b) has exposure, or rights, to variable returns from its involvement with the investee, and (c) has the ability to use its power over the investee to affect the amount of the investor’s returns. When assessing whether the Company has power over that entity, only substantive rights (held by the Company and other parties) are considered. The financial results of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases, and the profit attributable to non-controlling non-controlling Non-controlling non-controlling Non-controlling non-controlling An associate is an entity, not being a subsidiary, in which the Group exercises significant influence, but not control, over its management. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. An investment in an associate is accounted for in the consolidated financial statements under the equity method and is initially recorded at cost, adjusted for any excess of the Group’s share of the acquisition-date fair values of the investee’s net identifiable assets over the cost of the investment (if any) after reassessment. Thereafter, the investment is adjusted for the Group’s equity share of the post-acquisition changes in the associate’s net assets and any impairment loss relating to the investment. When the Group ceases to have significant influence over an associate, it is accounted for as a disposal of the entire interest in that investee, with a resulting gain or loss being recognized in profit or loss. Any interest retained in that former investee at the date when significant influence is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset. All significant intercompany balances and transactions and unrealized gains arising from intercompany transactions are eliminated on consolidation. Unrealized gains arising from transactions with associates are eliminated to the extent of the Group’s interest in the entity. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. (c) Foreign currencies The accompanying consolidated financial statements are presented in Renminbi (“RMB”). The functional currency of the Company and its subsidiaries in mainland China is RMB. The functional currency of the Group’s foreign operations is the currency of the primary economic environment in which the foreign operations operate. Transactions denominated in currencies other than the functional currency during the year are translated into the functional currency at the applicable rates of exchange prevailing on the transaction dates. Foreign currency monetary assets and liabilities are translated into the functional currency using the applicable exchange rates at the end of the reporting period. The resulting exchange differences, other than those capitalized as construction in progress (Note 3(e)), are recognized as income or expense in profit or loss. For the periods presented, no exchange differences were capitalized. When preparing the Group’s consolidated financial statements, the results of operations of the Group’s foreign operations are translated into RMB at average rate prevailing during the year. Assets and liabilities of the Group’s foreign operations are translated into RMB at the foreign exchange rates ruling at the end of the reporting period. The resulting exchange differences are recognized in other comprehensive income and accumulated separately in equity in the exchange reserve. (d) Property, plant and equipment Property, plant and equipment are initially recorded at cost, less subsequent accumulated depreciation and impairment losses (Note 3(i)). The cost of an asset comprises its purchase price, any directly attributable costs of bringing the asset to working condition and location for its intended use and the cost of borrowed funds used during the periods of construction. Expenditure incurred after the asset has been put into operation, including cost of replacing part of such an item, is capitalized only when it increases the future economic benefits embodied in the item of property, plant and equipment and the cost can be measured reliably. All other expenditure is expensed as it is incurred. Assets held under finance leases (Note 3(o)) are amortized over the shorter of the lease term and their estimated useful lives on a straight-line basis. As of December 31, 2018, no asset was held by the Group under finance leases (December 31, 2017: nil). Gains or losses arising from retirement or disposal of property, plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the respective asset and are recognized as income or expense in the profit or loss on the date of disposal. Depreciation is provided to write off the cost of each asset over its estimated useful life on a straight-line basis, after taking into account its estimated residual value, as follows: Depreciable lives Buildings and improvements 8 to 30 years Telecommunications network plant and equipment 5 to 10 years Furniture, fixture, motor vehicles and other equipment 5 to 10 years Where parts of an item of property, plant and equipment have different useful lives, the cost of the item is allocated on a reasonable basis between the parts and each part is depreciated separately. Both the useful life of an asset and its residual value are reviewed annually. (e) Construction in progress Construction in progress represents buildings, telecommunications network plant and equipment and other equipment and intangible assets under construction and pending installation, and is stated at cost less impairment losses (Note 3(i)). The cost of an item comprises direct costs of construction, capitalization of interest charge, and foreign exchange differences on related borrowed funds to the extent that they are regarded as an adjustment to interest charges during the periods of construction. Capitalization of these costs ceases and the construction in progress is transferred to property, plant and equipment and intangible assets when the asset is substantially ready for its intended use. No depreciation is provided in respect of construction in progress. (f) Lease prepayments Lease prepayments represent land use rights paid. Land use rights are initially carried at cost or deemed cost and then charged to profit or loss on a straight-line basis over the respective periods of the rights which range from 20 years to 70 years. (g) Goodwill Goodwill represents the excess of the cost over the Group’s interest in the fair value of the net assets acquired in the CDMA business (as defined in Note 11) acquisition. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is tested annually for impairment (Note 3(i)). On disposal of a cash generating unit during the year, any attributable amount of the goodwill is included in the calculation of the profit or loss on disposal. (h) Intangible assets The Group’s intangible assets are primarily software. Software that is not an integral part of any tangible assets, is recorded at cost less subsequent accumulated amortization and impairment losses (Note 3(i)). Amortization of software is mainly calculated on a straight-line basis over the estimated useful lives, which range from 3 to 5 years. (i) Impairment of goodwill and long-lived assets The carrying amounts of the Group’s long-lived assets, including property, plant and equipment, intangible assets with finite useful lives, construction in progress and contract costs included in other assets are reviewed periodically to determine whether there is any indication of impairment. These assets are tested for impairment whenever events or changes in circumstances indicate that their recorded carrying amounts may not be recoverable. For goodwill, the impairment testing is performed annually at each year end. Before the Group recognizes an impairment loss for assets capitalized as contract costs under IFRS 15, the Group assesses and recognizes any impairment loss on other assets related to the relevant contracts in accordance with applicable standards. Then, impairment loss, if any, for assets capitalized as contract costs is recognized to the extent the carrying amounts exceeds the remaining amount of consideration that the Group expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services that have not been recognized as expenses. The assets capitalized as contract costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit. The recoverable amount of an asset or cash-generating unit is the greater of its fair value less costs of disposal and value in use. The recoverable amount of a tangible and an intangible asset is estimated individually. When an asset does not generate cash flows largely independent of those from other assets, the recoverable amount is determined for the smallest group of assets that generates cash inflows independently (i.e. a cash-generating unit). In determining the value in use, expected future cash flows generated by the assets are discounted to their present value using a pre-tax An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment loss is recognized as an expense in profit or loss. Impairment loss recognized in respect of cash-generating units is allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis. The Group assesses at the end of each reporting period whether there is any indication that an impairment loss recognized for an asset in prior years may no longer exist. An impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount. A subsequent increase in the recoverable amount of an asset, when the circumstances and events that led to the write-down cease to exist, is recognized as an income in profit or loss. The reversal is reduced by the amount that would have been recognized as depreciation and amortization had the write-down not occurred. An impairment loss in respect of goodwill is not reversed. For the years presented, no reversal of impairment loss was recognized in profit or loss. (j) Inventories Inventories consist of materials and supplies used in maintaining the telecommunications network and goods for resale. Inventories are valued at cost using the specific identification method or the weighted average cost method, less a provision for obsolescence. Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, the estimated costs to make the sale and the related tax expenses. (k) Financial instruments Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument. All regular way purchases or sales of financial assets are recognized and derecognized on a settlement date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place. Financial assets and financial liabilities are initially measured at fair value except for accounts receivable arising from contracts with customers which are initially measured in accordance with IFRS 15 since January 1, 2018. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, other than financial assets or financial liabilities at fair value through profit or loss (“FVTPL”) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. The effective interest method is a method of calculating the amortized cost of a financial asset or financial liability and of allocating interest income and interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts and payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset or financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Financial assets Classification and subsequent measurement of financial assets (upon application of IFRS 9 in accordance with transitions in note 2.2) The Group’s financial assets include financial assets measured subsequently at amortized cost and equity instruments designated as at FVTOCI. (i) Financial assets measured subsequently at amortized cost Financial assets that meet the following conditions are subsequently measured at amortized cost: • the financial asset is held within a business model whose objective is to collect contractual cash flows; and • the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income is recognized using the effective interest method for financial assets measured subsequently at amortized cost. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for financial assets that have subsequently become credit-impaired (see below). For financial assets that have subsequently become credit-impaired, interest income is recognized by applying the effective interest rate to the amortized cost of the financial asset from the next reporting period. If the credit risk on the credit-impaired financial instrument improves so that the financial asset is no longer credit-impaired, interest income is recognized by applying the effective interest rate to the gross carrying amount of the financial asset from the beginning of the reporting period following the determination that the asset is no longer credit-impaired. (ii) Equity instruments designated as at FVTOCI At the date of initial application / initial recognition of a financial asset, the Group may irrevocably elect to present subsequent changes in fair value of an equity investment in OCI, and accumulate in other reserves, if that equity investment is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3, “Business Combinations” Dividend from these investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment. Dividends are included in the “investment income” line item in profit or loss. Impairment of financial assets (upon application of IFRS 9 with transitions in accordance with note 2.2) The Group recognizes a loss allowance for ECL on financial assets which are subject to impairment under IFRS 9 (including accounts receivable and financial assets included in prepayments and other current assets) and contract assets. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition. Lifetime ECL represents the ECL that will result from all possible default events over the expected life of the relevant instrument. In contrast, 12m ECL represents the portion of lifetime ECL that is expected to result from default events that are possible within 12 months after the reporting date. Assessments are done based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current conditions at the reporting date as well as the forecast of future conditions. The Group always recognizes lifetime ECL for accounts receivable and contract assets. The ECL on these assets are assessed individually for debtors with significant balances and collectively using a provision matrix with appropriate groupings based on shared credit risk characteristics, nature of services provided as well as type of customers, such as receivable from telephone and Internet subscribers and from enterprise customers. For all other instruments, i.e. financial assets included in prepayments and other current assets, the Group measures the loss allowance equal to 12m ECL, unless when there has been a significant increase in credit risk since initial recognition, the Group recognizes lifetime ECL. The assessment of whether lifetime ECL should be recognized is based on significant increases in the likelihood or risk of a default occurring since initial recognition. (i) Significant increase in credit risk In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as of the reporting date with the risk of a default occurring on the financial instrument as of the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. In particular, the following information is taken into account when assessing whether credit risk has increased significantly: • failure to make payments of principal or interest on their contractually due dates; • an actual or expected significant deterioration in a financial instrument’s external or internal credit rating (if available); • an actual or expected significant deterioration in the operating results of the debtor; and • existing or forecast changes in the technological, market, economic or legal environment that have a significant adverse effect on the debtor’s ability to meet its obligation to the Group. (ii) Definition of default For internal credit risk management, the Group considers an event of default occurs when information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collaterals held by the Group). (iii) Credit-impaired financial assets A financial asset is credit-impaired when one or more events of default that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events: • significant financial difficulty of the issuer or the borrower; • a breach of contract, such as a default or past due event; • the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider; • it is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or • the disappearance of an active market for that financial asset because of financial difficulties. (iv) Write-off The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, for example, when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings. A write-off (v) Measurement and recognition of ECL The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on the historical data adjusted by forward-looking information. Generally, the ECL is the difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the effective interest rate determined at initial recognition. Where ECL is measured on a collective basis or cater for cases where evidence at the individual instrument level may not be available, the financial instruments are grouped on the following basis: • Nature of financial instruments (i.e. the Group’s accounts receivable and financial assets included in prepayments and other current assets are each assessed as a separate group); • Past-due • Nature, size and industry of debtors; and • External credit ratings where available. The grouping is regularly reviewed by management to ensure the constituents of each group continue to share similar credit risk characteristics. The Group recognizes an impairment gain or loss in profit or loss for all financial instruments measured at amortized cost by adjusting their carrying amount, with the exception of accounts receivable and other receivables where the corresponding adjustment is recognized through a loss allowance account. Classification and subsequent measurement of financial assets (before application of IFRS 9 on January 1, 2018) The Group’s financial assets are classified into the following specified categories: AFS financial assets and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. All regular way purchases or sales of the financial assets are recognized and derecognized on a settlement date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. (i) AFS financial assets Investments in available-for-sale available-for-sale (ii) Loans and receivables Accounts receivable and other receivables are initially recognized at fair value and thereafter stated at amortized cost using the effective interest method, less allowance for doubtful debts (see below) unless the effect of discounting would be immaterial, in which case they are stated at cost less allowance for doubtful debts. Accounts and other receivables and investments in equity securities carried at cost are reviewed at the end of each reporting period to determine whether there is objective evidence of impairment. Objective evidence of impairment includes observable data that comes to the attention of the Group about one or more of the following loss events: • significant financial difficulty of the debtor or issuer; • a breach of contract, such as a default or delinquency in interest or principal payments; • it becoming probable that the debtor will enter bankruptcy or other financial reorganization; and • significant changes in the technological, market, economic or legal environment that have an adverse effect on the debtor/issuer. The impairment loss for accounts and other receivables is measured as the difference between the asset’s carrying amount and the estimated future cash flows, discounted at the financial asset’s original effective interest rate where the effect of discounting is material, and is recognized as an expense in profit or loss. The impairment loss for investments in equity securities carried at cost is measured as the difference between the asset’s carrying amount and the estimated future cash flows, discounted at the current market rate of return for a similar financial asset where the effect of discounting is material, and is recognized as an expense in profit or loss. Impairment losses for accounts and other receivables are reversed through profit or loss if in a subsequent period the amount of the impairment losses decreases. Impairment losses for equity securities carried at cost are not reversed. Derecognition of financial assets The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. On derecognition of a financial asset measured at amortized cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in equity instrument which the Group has elected on initial recognition / initial application to measure at FVTOCI upon application of IFRS 9, the cumulative gain or loss previously accumulated in other reserves is not reclassified to profit or loss, but is transferred to retained earnings. On derecognition of an AFS financial asset, the cumulative gain or loss previously accumulated in other reserves is reclassified to profit or loss. Financial liabilities and equity Classification as debt or equity Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs. Financial liabilities All financial liabilities are subsequently measured at amortized cost using the effective interest method. Financial liabilities including short-term and long-term debt, accounts payable, and financial liabilities included in accrued expenses and other payables are subsequently measured at amortized cost, using the effective interest method. Offsetting a financial asset and a financial liability A financial asset and a financial liability are offset and the net amount presented in the statement of financial position when, and only when, the Group currently has a legally enforceable right to set off the recognized amounts; and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. (l) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand and time deposits with original maturities of three months or less when purchased. Cash equivalents are stated at cost, which approximates fair value. None of the Group’s cash and cash equivalents is restricted as to withdrawal. (m) Revenue from contract with customers (upon application of IFRS 15 in accordance with transitions in note 2.1) Under IFRS 15, the Group recognizes revenue when (or as) a performance obligation is satisfied. i.e. when “control” of the goods or services underlying the particular performance obligation is transferred to the customer. A performance obligation represents a good or service (or a bundle of goods or services) that is distinct or a series of distinct goods or services that are substantially the same. Control is transferred over time and revenue is recognized over time by reference to the progress towards complete satisfaction of the relevant performance obligation if one of the following criteria is met: • the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs; • the Group’s performance creates and enhances an asset that the customer controls as the Groups performs; or • the Group’s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. As such, revenues from contracts with customers of telecommunications services, including voice, Internet, information and application and telecommunications network resource and equipment services, resale of mobile services (MVNO) and repair and maintenance of equipment are generally recognized over time during which the services are provided to customers. Otherwise, revenue is recognized at a point in time when the customer obtains control of the distinct good or service. As such, revenues from sales of equipment are recognize at a point in time when the equipment is delivered to the customers and when the control over the equipment have been transferred to the customers. A contract asset represents the Group’s right to consideration in exchange for goods or services that the Group has transferred to a customer but the right is conditioned on the Group’s future performance. A contract asset is transferred to accounts receivable when the right becomes unconditional. A contract asset is assessed for impairment in accordance with IFRS 9. In contrast, a receivable represents the Group’s unconditional right to consideration, i.e. only the passage of time is required before payment of that consideration is due. A contract liability represents the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. When the Group receives an advance payment before the performance obligation is satisfied, this will give rise to a contract liability, until the operating revenues recognized on the relevant contract exceed the amount of the advance payment. A contract asset and a contract liability relating to the same contract are accounted for and presented on a net basis. Contracts with multiple performance obligations (including allocation of transaction price) For contracts that contain more than one performance obligations, such as the Group’s direct sales of promotional packages bundling terminal equipment, e.g. mobile handsets, and the telecommunications services, the Group allocates the transaction price to each performance obligation on a relative stand-alone selling price basis. The stand-alone selling price of the distinct good or service underlying each performance obligation is determined at contract inception. It represents the price at which the Group would sell a promised good or service separately to a custome |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2018 | |
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Cash and Cash Equivalents | 4. CASH AND CASH EQUIVALENTS December 31, 2017 2018 RMB RMB Cash at bank and in hand 17,763 14,937 Time deposits with original maturity within three months 1,647 1,729 19,410 16,666 |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2018 | |
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Accounts Receivable, Net | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net, are analyzed as follows: December 31, Note 2017 2018 RMB RMB Third parties 23,762 23,308 China Telecom Group (i ) 1,502 1,327 China Tower (See definition in Note 13) 5 10 Other telecommunications operators in the PRC 669 510 25,938 25,155 Less: Allowance for credit losses (3,842 ) (4,680 ) 22,096 20,475 Note: (i) China Telecommunications Corporation together with its subsidiaries other than the Group are referred to as “China Telecom Group”. As of December 31, 2018 and January 1, 2018, the gross carrying amounts of accounts receivable from contracts with customers amounted to RMB25,155 and RMB25,342, respectively. Aging analysis of accounts receivable from telephone and Internet subscribers based on the billing dates is as follows: December 31, 2017 2018 RMB RMB Current, within 1 month 9,323 8,376 1 to 3 months 2,607 2,117 4 to 12 months 1,780 1,932 More than 12 months 878 943 14,588 13,368 Less: Allowance for credit losses (2,603 ) (2,898 ) 11,985 10,470 Aging analysis of accounts receivable from other telecommunications operators and enterprise customers based on dates of rendering of services is as follows: 31 December 2017 2018 RMB RMB Current, within 1 month 4,421 3,318 1 to 3 months 1,973 2,300 4 to 12 months 2,644 3,994 More than 12 months 2,312 2,175 11,350 11,787 Less: Allowance for credit losses (1,239 ) (1,782 ) 10,111 10,005 As of December 31, 2018, included in the net balance of the Group’s accounts receivable are debtors with aggregate carrying amount of RMB2,503 which are past due as of the reporting date. Aging analysis of accounts receivable that are not impaired as of December 31, 2017 is as follows: December 31, RMB Not past due 19,623 Less than 1 month past due 1,518 1 to 3 months past due 955 Amounts past due 2,473 22,096 The following table summarizes the changes in allowance for doubtful debts in 2016 and 2017: Year ended 2016 2017 RMB RMB At beginning of year 2,935 3,402 Impairment losses for doubtful debts 2,203 1,962 Accounts receivable written off (1,736 ) (1,522 ) At end of year 3,402 3,842 Details of impairment assessment of accounts receivable for the year ended December 31, 2018 are set out in note 34. |
Contract Assets
Contract Assets | 12 Months Ended |
Dec. 31, 2018 | |
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Contract Assets | 6. CONTRACT ASSETS January 1, December 31, RMB RMB Third parties 480 454 China Telecom Group 176 24 656 478 * The amounts in this column are after the adjustments from the application of IFRS 9 and 15. The Group’s contracts for information and application services include payment schedules which require stage payments over the service period once certain specified milestones are reached. The Group classifies these contract assets as current because the Group expects to realize them in its normal operating cycle. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
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Inventories | 7. INVENTORIES December 31, 2017 2018 RMB RMB Materials and supplies 1,071 1,012 Goods for resale 3,052 3,820 4,123 4,832 |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2018 | |
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Prepayments and Other Current Assets | 8. PREPAYMENTS AND OTHER CURRENT ASSETS December 31, Note 2017 2018 RMB RMB Amounts due from China Telecom Group 774 1,035 Amounts due from China Tower 2,152 293 Amounts due from other telecommunications operators in the PRC 369 333 Prepayments in connection with construction work and equipment purchases 2,542 2,752 Prepaid expenses and deposits 3,486 3,628 Value-added tax recoverable 7,186 8,618 Other receivables (i ) 5,619 6,960 22,128 23,619 Note: (i) Other receivables as of December 31, 2018 include the unpaid remaining consideration of the contribution from non-controlling |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
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Property, Plant and Equipment, Net | 9. PROPERTY, PLANT AND EQUIPMENT, NET Buildings and ments Telecom- network plant and Furniture, other Total RMB RMB RMB RMB Cost/Deemed cost: Balance at January 1, 2017 99,509 823,836 30,114 953,459 Additions 583 532 410 1,525 Transferred from construction in progress 1,967 87,129 1,707 90,803 Retirement and disposal (709 ) (68,719 ) (1,936 ) (71,364 ) Disposal of a subsidiary — (33 ) — (33 ) Reclassification (18 ) (272 ) 290 — Balance at December 31, 2017 101,332 842,473 30,585 974,390 Additions 712 512 306 1,530 Transferred from construction in progress 1,454 71,704 1,721 74,879 Retirement and disposal (860 ) (59,822 ) (1,636 ) (62,318 ) Reclassification (97 ) (485 ) 582 — Balance at December 31, 2018 102,541 854,382 31,558 988,481 Accumulated depreciation and impairment: Balance at January 1, 2017 (51,018 ) (490,917 ) (21,853 ) (563,788 ) Depreciation and impairment charge for the year (4,326 ) (63,903 ) (2,145 ) (70,374 ) Written back on retirement and disposal 620 63,553 1,839 66,012 Disposal of a subsidiary — 17 — 17 Reclassification 18 184 (202 ) — Balance at December 31, 2017 (54,706 ) (491,066 ) (22,361 ) (568,133 ) Depreciation charge for the year (4,370 ) (63,878 ) (2,135 ) (70,383 ) Written back on retirement and disposal 750 55,519 1,561 57,830 Reclassification 26 439 (465 ) — Balance at December 31, 2018 (58,300 ) (498,986 ) (23,400 ) (580,686 ) Net book value at December 31, 2018 44,241 355,396 8,158 407,795 Net book value at December 31, 2017 46,626 351,407 8,224 406,257 |
Construction in Progress
Construction in Progress | 12 Months Ended |
Dec. 31, 2018 | |
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Construction in Progress | 10. CONSTRUCTION IN PROGRESS RMB Balance at January 1, 2017 80,386 Additions 88,359 Transferred to property, plant and equipment (90,803 ) Transferred to intangible assets (4,836 ) Balance at December 31, 2017 73,106 Additions 74,457 Transferred to property, plant and equipment (74,879 ) Transferred to intangible assets (6,040 ) Balance at December 31, 2018 66,644 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
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Goodwill | 11. GOODWILL December 31, 2017 2018 RMB RMB Cost: Goodwill arising from acquisition of CDMA business 29,920 29,922 On October 1, 2008, the Group acquired the CDMA mobile communication business and related assets and liabilities, which also included the entire equity interests of China Unicom (Macau) Company Limited (currently known as China Telecom (Macau) Company Limited) and 99.5% equity interests of Unicom Huasheng Telecommunications Technology Company Limited (currently known as Tianyi Telecom Terminals Company Limited) (collectively the “CDMA business”) from China Unicom Limited and China Unicom Corporation Limited (collectively “China Unicom”). The purchase price of the business combination was RMB43,800, which was fully settled as of December 31, 2010. In addition, pursuant to the acquisition agreement, the Group acquired the customer-related assets and assumed the customer-related liabilities of CDMA business for a net settlement amount of RMB3,471 due from China Unicom. This amount was subsequently settled by China Unicom in 2009. The business combination was accounted for using the purchase method. The goodwill recognized in the business combination is attributable to the skills and technical talent of the acquired business’s workforce, and the synergies expected to be achieved from integrating and combining the CDMA mobile communication business into the Group’s telecommunications business. For the purpose of goodwill impairment testing, the goodwill arising from the acquisition of CDMA business was allocated to the appropriate cash-generating unit of the Group, which is the Group’s telecommunications business. The recoverable amount of the Group’s telecommunications business is estimated based on the value in use model, which considers the Group’s financial budgets covering a five-year period and a pre-tax Key assumptions used for the value in use calculation model are the number of subscribers, average revenue per subscriber and gross margin. Management determined the number of subscribers, average revenue per subscriber and gross margin based on historical trends and financial information and operational data. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
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Intangible Assets | 12. INTANGIBLE ASSETS Software RMB Cost: Balance at January 1, 2017 29,818 Additions 175 Transferred from construction in progress 4,836 Disposals (268 ) Disposal of a subsidiary (11 ) Balance at December 31, 2017 34,550 Additions 269 Transferred from construction in progress 6,040 Disposals (3,545 ) Balance at December 31, 2018 37,314 Accumulated amortization and impairment: Balance at January 1, 2017 (18,574 ) Amortization charge for the year (3,843 ) Written back on disposals 250 Disposal of a subsidiary 8 Balance at December 31, 2017 (22,159 ) Amortization charge for the year (4,366 ) Written back on disposals 3,372 Balance at December 31, 2018 (23,153 ) Net book value at December 31, 2018 14,161 Net book value at December 31, 2017 12,391 |
Interests in Associates
Interests in Associates | 12 Months Ended |
Dec. 31, 2018 | |
Investments accounted for using equity method [abstract] | |
Interests in Associates | 13. INTERESTS IN ASSOCIATES December 31, 2017 2018 RMB RMB Unlisted equity investments, at cost 36,648 36,933 Share of post-acquisition changes in net assets (922 ) 1,118 35,726 38,051 Fair value of listed investments N/A 46,797 The Group’s interests in associates are accounted for under the equity method. Details of the Group’s principal associates are as follows: Name of company Attributable Principal activities China Tower Corporation Limited (Note (i)) 20.5 (2017: 27.9 % %) Construction, maintenance and operation of telecommunications towers as well as ancillary facilities Shanghai Information Investment Incorporation (Note (ii)) 24.0 % Provision of information technology consultancy services Notes: (i) China Tower Corporation Limited (“China Tower”) is established and operated in the PRC, and listed on the Main Board of The Stock Exchange of Hong Kong Limited on August 8, 2018. Income from investments in associates for the year ended December 31, 2018 includes: (a) a one-off (ii) Shanghai Information Investment Incorporation (“Shanghai Info-investment”) is established and operated in the PRC and is not traded on any stock exchange. Summarized financial information of the Group’s principal associates and reconciled to the carrying amounts of interests in associates in the Group’s consolidated financial statements are disclosed below: China Tower Corporation Limited December 31, 2017 2018 RMB RMB Current assets 30,517 31,799 Non-current 292,126 283,565 Current liabilities 150,438 114,759 Non-current 44,710 20,103 2017 2018 RMB RMB Operating revenues 68,665 71,819 Profit for the year 1,943 2,650 Other comprehensive income for the year — — Total comprehensive income for the year 1,943 2,650 Dividend received from the associate — — Reconcile to the Group’s interests in the associate: December 31, 2017 2018 RMB RMB Net assets of the associate 127,495 180,502 Non-controlling — — The Group’s effective interest in the associate 27.9 % 20.5 % The Group’s share of net assets of the associate 35,571 37,003 Adjustment for the remaining balance of the deferred gain from the Tower Assets Disposal (1,580 ) (1,013 ) Carrying amount of the interest in the associate in the consolidated financial statements of the Group 33,991 35,990 Shanghai Information Investment Incorporation December 31, 2017 2018 RMB RMB Current assets 7,146 7,181 Non-current 8,049 8,592 Current liabilities 5,835 6,615 Non-current 2,673 1,985 2017 2018 RMB RMB Operating revenues 4,313 4,337 Profit for the year 563 586 Other comprehensive income for the year 22 (29 ) Total comprehensive income for the year 585 557 Dividend received from the associate 9 9 Reconcile to the Group’s interests in the associate: December 31, 2017 2018 RMB RMB Net assets of the associate 6,687 7,173 Non-controlling (2,004 ) (2,180 ) The Group’s effective interest in the associate 24.0 % 24.0 % The Group’s share of net assets of the associate 1,124 1,198 Carrying amount of the interest in the associate in the consolidated financial statements of the Group 1,124 1,198 Aggregate financial information of the Group’s associates that are not individually material is disclosed below: 2017 2018 RMB RMB The Group’s share of profit of these associates 36 14 The Group’s share of other comprehensive income of these associates 2 — The Group’s share of total comprehensive income of these associates 38 14 December 31, 2017 2018 RMB RMB Aggregate carrying amount of interests in these associates in the consolidated financial statements of the Group 611 863 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
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Investments | 14. INVESTMENTS December 31, RMB Available-for-sale 969 Other unlisted equity investments 185 1,154 Other unlisted equity investments mainly represent the Group’s various interests in private enterprises which are mainly engaged in the provision of telecommunications infrastructures construction services, information technology services and Internet contents. |
Equity Instruments at Fair Valu
Equity Instruments at Fair Value Through Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2018 | |
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Equity Instruments at Fair Value Through Other Comprehensive Income | 15. EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Notes December 31, RMB Equity securities listed in the mainland China (i) 638 Unlisted equity securities (ii) 214 852 Notes: (i) The above listed equity instruments represent ordinary shares of entities listed in the mainland China. These investments are not held for trading, instead, they are held for long-term strategic purposes. The directors of the Company have elected to designate these investments in equity instruments as of FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes and realizing their performance potential in the long run. (ii) The above unlisted equity securities represent the Group’s equity interests in various private entities established in the PRC. The directors of the Company have elected to designate these investments in equity instruments as of FVTOCI as they believe that the Group will hold these investments for long-term strategic purposes. |
Deferred Tax Assets and Liabili
Deferred Tax Assets and Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
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Deferred Tax Assets and Liabilities | 16. DEFERRED TAX ASSETS AND LIABILITIES The components of deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements are as follows: Assets Liabilities Net Balance 2018 2017 2018 2017 2018 2017 RMB RMB RMB RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,925 1,626 — — 1,925 1,626 Property, plant and equipment, and others 4,580 3,782 (13,022 ) (7,789 ) (8,442 ) (4,007 ) Deferred revenues and installation costs 39 71 (29 ) (52 ) 10 19 Available-for-sale — — — (169 ) — (169 ) Equity instruments at fair value through other comprehensive income — — (87 ) — (87 ) — Deferred tax assets/(liabilities) 6,544 5,479 (13,138 ) (8,010 ) (6,594 ) (2,531 ) Balance at January 1, 2016 Recognized in consolidated Balance at December 31, 2016 RMB RMB RMB Provisions and impairment losses, primarily for doubtful debts 1,291 240 1,531 Property, plant and equipment, and others 1,569 (2,575 ) (1,006 ) Deferred revenues and installation costs 60 (25 ) 35 Available-for-sale (326 ) 57 (269 ) Net deferred tax assets 2,594 (2,303 ) 291 Balance at January 1, 2017 Recognized in consolidated Balance at December 31, 2017 RMB RMB RMB Provisions and impairment losses, primarily for doubtful debts 1,531 95 1,626 Property, plant and equipment, and others (1,006 ) (3,001 ) (4,007 ) Deferred revenues and installation costs 35 (16 ) 19 Available-for-sale (269 ) 100 (169 ) Net deferred tax assets/(liabilities) 291 (2,822 ) (2,531 ) Balance at December 31, 2017 Changes Recognized in Balance at December 31, 2018 RMB RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,626 203 96 1,925 Property, plant and equipment, and others (4,007 ) (1,066 ) (3,369 ) (8,442 ) Deferred revenues and installation costs 19 — (9 ) 10 Available-for-sale (169 ) 169 — — Equity instruments at fair value through other comprehensive income — (169 ) 82 (87 ) Net deferred tax liabilities (2,531 ) (863 ) (3,200 ) (6,594 ) |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
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Other Assets | 17. OTHER ASSETS December 31, Note 2017 2018 RMB RMB Contract costs (i ) — 1,287 Installation fees 228 124 Other long-term prepaid expenses 3,121 3,429 3,349 4,840 Note: (i) Contract costs capitalized as of December 31, 2018 mainly relate to the incremental sales commissions paid to third party agents whose selling activities resulted in subscribers entering into telecommunications service agreements with the Group. The amount of capitalized costs recognized in profit or loss during the year was RMB1,744. There was no impairment in relation to the opening balance of capitalized costs or the costs capitalized during the year. |
Short-term and Long-term Debt
Short-term and Long-term Debt | 12 Months Ended |
Dec. 31, 2018 | |
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Short-term and Long-term Debt | 18. SHORT-TERM AND LONG-TERM DEBT Short-term debt comprises: December 31, 2017 2018 RMB RMB Loans from banks – unsecured 16,565 12,881 Super short-term commercial papers – unsecured 18,745 27,992 Other loans – unsecured 150 80 Loans from China Telecom Group – unsecured 19,098 8,584 Total short-term debt 54,558 49,537 The weighted average interest rate of the Group’s total short-term debt as of December 31, 2017 and 2018 was 4.0% per annum and 3.2% per annum, respectively. As of December 31, 2018, the Group’s loans from banks and other loans bear interest at rates ranging from 3.5% to 4.6% (December 31, 2017: 3.5% to 7.3%) per annum, and are repayable within one year; as of December 31, 2018, super short-term commercial papers bear interest at rates ranging from 2.1% to 3.3% (December 31, 2017: 4.1% to 4.2%) per annum, and are repayable by July 26, 2019; the loans from China Telecom Group bear interest at rate of 3.5% (December 31, 2017: 3.5%) per annum and are repayable within one year. Long-term debt comprises: December 31, Interest rates and final maturity 2017 2018 RMB RMB Bank loans – unsecured Renminbi denominated (Note (i)) Interest rates ranging from 1.08% to 7.04% per annum with maturities through 2036 9,148 8,455 US Dollars denominated Interest rates ranging from 1.00% to 8.30% per annum with maturities through 2048 370 336 Euro denominated Interest rate of 2.30% per annum with maturities through 2032 223 199 9,741 8,990 Other loans – unsecured Renminbi denominated 1 1 Loans from China Telecom Group – unsecured Renminbi denominated (Note (ii)) 40,000 37,000 Total long-term debt 49,742 45,991 Less: Current portion (1,146 ) (1,139 ) Non-current 48,596 44,852 Notes: (i) The Group obtained long-term RMB denominated government loans with below-market interest rate ranging from 1.08% to 1.20% per annum through banks (the “Low-interest Low-interest (ii) The Group obtained long-term RMB denominated loans with the interest rate of 3.8% per annum from China Telecommunications Corporation on December 25, 2017, which are repayable within 3 to 5 years. The Group partially repaid these loans amounting to RMB3,000 in 2018. The aggregate maturities of the Group’s long-term debt subsequent to December 31, 2018 are as follows: RMB 2019 1,139 2020 18,091 2021 1,029 2022 20,992 2023 923 Thereafter 3,817 45,991 The Group’s short-term and long-term debt do not contain any financial covenants. As of December 31, 2017 and 2018, the Group had unutilized committed credit facilities amounting to RMB154,793 and RMB150,693 respectively. |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2018 | |
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Accounts Payable | 19. ACCOUNTS PAYABLE December 31, 2017 2018 RMB RMB Third parties 93,324 83,418 China Telecom Group 22,682 20,983 China Tower 2,611 2,850 Other telecommunications operators in the PRC 704 636 119,321 107,887 Amounts due to China Telecom Group and China Tower are payable in accordance with contractual terms which are similar to those terms offered by third parties. |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 12 Months Ended |
Dec. 31, 2018 | |
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Accrued Expenses and Other Payables | 20. ACCRUED EXPENSES AND OTHER PAYABLES December 31, Notes 2017 2018 RMB RMB Amounts due to China Telecom Group (i ) 1,838 2,171 Amounts due to China Tower 1,374 1,246 Amounts due to other telecommunications operators in the PRC 59 46 Accrued expenses (ii ) 24,864 33,811 Value-added tax payable 645 484 Customer deposits and receipts in advance 69,915 5,739 98,695 43,497 Notes: (i) Amounts due to China Telecom Group as of December 31, 2017 include the consideration of the Eighth Acquisition amounting to RMB87, which has been fully settled by June 30, 2018. (ii) Accrued expenses as of December 31, 2017 include the unpaid portion of consideration of the acquisition of non-controlling |
Contract Liabilities
Contract Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
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Contract Liabilities | 21. CONTRACT LIABILITIES January 1, December 31, RMB RMB Third parties 62,001 55,638 China Telecom Group 174 145 62,175 55,783 * The amounts in this column are after the adjustments from the application of IFRS 9 and 15. Majority of contract liabilities as of January 1, 2018 was recognized as operating revenues for the year ended December 31, 2018. |
Deferred Revenues
Deferred Revenues | 12 Months Ended |
Dec. 31, 2018 | |
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Deferred Revenues | 22. DEFERRED REVENUES Deferred revenues as of December 31, 2017 mainly represent the unearned portion of installation fees for wireline services received from customers, the unused portion of calling cards, and the unamortized portion of government grants (Note 18). On January 1, 2018, upon application of IFRS 15, the unused portion of calling cards was reclassified into contract liabilities. 2017 2018 RMB RMB Balance at end of last year 3,558 3,061 Change in accounting policy (Note 2) — (787 ) Balance at beginning of the year, as restated 3,558 2,274 Additions for the year: Calling cards 390 — Reductions for the year: Amortization of installation fees (208 ) (138 ) Usage of calling cards (384 ) — Amortization of government grants (295 ) (307 ) Balance at end of year 3,061 1,829 Representing: Current portion 1,233 375 Non-current 1,828 1,454 3,061 1,829 |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2018 | |
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Share Capital | 23. SHARE CAPITAL December 31, 2017 2018 RMB RMB Registered, issued and fully paid 67,054,958,321 ordinary domestic shares of RMB1.00 each 67,055 67,055 13,877,410,000 overseas listed H shares of RMB1.00 each 13,877 13,877 80,932 80,932 All ordinary domestic shares and H shares rank pari passu |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2018 | |
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Reserves | 24. RESERVES Capital Share premium Surplus reserves Other reserves Exchange Retained earnings Total RMB RMB RMB RMB RMB RMB RMB (Note (i)) (Note (iii)) (Note (ii)) Balance as of January 1, 2016 17,160 10,746 70,973 876 (812 ) 123,948 222,891 Total comprehensive income for the year — — — (165 ) 190 18,018 18,043 Dividends (Note 31) — — — — — (6,489 ) (6,489 ) Appropriations (Note (iii)) — — 1,638 — — (1,638 ) — Balance as of December 31, 2016 17,160 10,746 72,611 711 (622 ) 133,839 234,445 Total comprehensive income for the year — — — (293 ) (259 ) 18,617 18,065 Acquisition of the Eighth Acquired Group (Note 1) (80 ) — — — — (7 ) (87 ) Acquisition of non-controlling 46 — — — — — 46 Dividends (Note 31) — — — — — (7.530 ) (7,530 ) Appropriations (Note (iii)) — — 1,686 — — (1,686 ) — Others — — — (4 ) — — (4 ) Balance as of December 31, 2017 17,126 10,746 74,297 414 (881 ) 143,233 244,935 Changes in accounting policies (Note 2) — — 302 — — 2,673 2,975 Balance as of 1 January 2018, as restated 17,126 10,746 74,599 414 (881 ) 145,906 247,910 Total comprehensive income for the year — — — (249 ) 154 21,210 21,115 Disposal of investments in equity instruments at fair value through other comprehensive income — — — (5 ) — 5 — Contribution from non-controlling 680 — — — — — 680 Dividends (Note 31) — — — — — (7,568 ) (7,568 ) Appropriations (Note (iii)) — — 1,875 — — (1,875 ) — Balance as of December 31, 2018 17,806 10,746 76,474 160 (727 ) 157,678 262,137 Notes: (i) Capital reserve of the Group mainly represents the sum of (a) the difference between the carrying amount of the Company’s net assets and the par value of the Company’s shares issued upon its formation; (b) the difference between the consideration paid by the Group for the entities acquired, other than the Fifth Acquired Group, from China Telecommunications Corporation, which were accounted for as equity transactions as disclosed in Note 1, and the historical carrying amount of the net assets of these acquired entities; and (c) the difference between the consideration paid by the Group for the acquisition of non-controlling non-controlling The difference between the consideration paid by the Group and the historical carrying amount of the net assets of the Fifth Acquisition was recorded as a deduction of retained earnings. Capital reserve of the Company represents the difference between the carrying amount of the Company’s net assets and the par value of the Company’s shares issued upon its formation. (ii) Other reserves of the Group and the Company represent primarily the change in the fair value of investment in equity instruments and the deferred tax liabilities recognized due to the change in fair value of investment in equity instruments. (iii) The surplus reserves consist of statutory surplus reserve and discretionary surplus reserve. According to the Company’s Articles of Association, the Company is required to transfer 10% of its net profit, as determined in accordance with the lower of the amount determined under the PRC Accounting Standards for Business Enterprises and the amount determined under IFRSs, to the statutory surplus reserve until such reserve balance reaches 50% of the registered capital. The transfer to this reserve must be made before distribution of any dividend to shareholders. For the year ended December 31, 2018, the Company transferred RMB1,875, being 10% of the year’s net profit determined in accordance with the PRC Accounting Standards for Business Enterprises, to this reserve. For the years ended December 31, 2017, the net profit of the Company determined in accordance with the PRC Accounting Standards for Business Enterprises and IFRS are the same. For the year ended December 31, 2017, the Company transferred RMB1,686, being 10% of the year’s net profit, to this reserve. As of December 31, 2017, January 1, 2018 and December 31, 2018, the amount of statutory surplus reserve was RMB28,218, RMB28,520 and RMB30,395, respectively. The Company did not transfer any discretionary surplus reserve for the years ended December 31, 2017 and 2018. As of December 31, 2017 and 2018, the amount of discretionary surplus reserve was RMB46,079. The statutory and discretionary surplus reserves are non-distributable (iv) According to the Company’s Articles of Association, the amount of retained earnings available for distribution to shareholders of the Company is the lower of the amount of the Company’s retained earnings determined in accordance with the PRC Accounting Standards for Business Enterprises and the amount determined in accordance with IFRSs. As of December 31, 2017, January 1, 2018 and December 31, 2018, the amount of retained earnings available for distribution was RMB120,270, RMB122,987 and RMB133,076 respectively, being the amount determined in accordance with IFRSs. Final dividend of approximately RMB8,629 in respect of the financial year 2018 proposed after the end of the reporting period has not been recognized as a liability in the consolidated financial statements at the end of the reporting period (Note 31). |
Operating Revenues
Operating Revenues | 12 Months Ended |
Dec. 31, 2018 | |
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Operating Revenues | 25. OPERATING REVENUES For the year ended December 31, 2018 Disaggregation of revenues Notes 2018 RMB Type of goods or services Revenue from contracts with customers Voice (i ) 50,811 Internet (ii ) 190,871 Information and application services (iii ) 83,478 Telecommunications network resource and equipment services (iv ) 20,211 Others (v ) 27,450 Subtotal 372,821 Revenue from other sources (vi ) 4,303 Total operating revenues 377,124 Timing of revenue recognition A point in time 24,496 Over time 352,628 Total operating revenues 377,124 Notes: (i) Represent the aggregate amount of voice usage fees, installation fees and interconnections fees charged to customers for the provision of telephony services. (ii) Represent amounts charge to customers for the provision of Internet access services. (iii) Represent primarily the aggregate amount of fees charged to customers for the provision of Internet data center service, system integration services, e-Surfing (iv) Represent amounts charged to other domestic telecommunications operators and enterprise customers for the provision of telecommunications network resource and equipment services. (v) Represent primarily revenue from sales, and repair and maintenance of telecommunications equipment as well as the resale of mobile services (MVNO). (vi) Represent primarily revenue from property rental and other revenues. As of December 31, 2018, the aggregated amount of the transaction price allocated to the remaining performance obligations under the Group’s existing contracts represents revenue expected to be recognized in the future when service is provided over the contract terms over the next 1 year to 3 years. For the year ended December 31, 2016 and 2017 The components of the Group’s operating revenues are as follows: Year ended 2016 2017 RMB RMB Voice 70,185 61,678 Internet 150,449 172,554 Information and application services 66,881 73,044 Telecommunications network resource and equipment services 17,781 19,125 Others 47,238 39,828 352,534 366,229 |
Network Operations and Support
Network Operations and Support Expenses | 12 Months Ended |
Dec. 31, 2018 | |
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Network Operations and Support Expenses | 26. NETWORK OPERATIONS AND SUPPORT EXPENSES Year ended December 31, Note 2016 2017 2018 RMB RMB RMB Operating and maintenance 48,390 55,360 64,056 Utility 13,148 12,522 13,477 Property rental and management fee (i ) 22,327 26,926 29,434 Others 10,291 9,161 9,095 94,156 103,969 116,062 Note: (i) Property rental and management fee includes the fee in relation to the lease of telecommunications towers and related assets (“Tower Assets”) (hereinafter referred to as the “tower assets lease and related fee”). |
Personnel Expenses
Personnel Expenses | 12 Months Ended |
Dec. 31, 2018 | |
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Personnel Expenses | 27. PERSONNEL EXPENSES Personnel expenses are attributable to the following functions: Year ended December 31, 2016 2017 2018 RMB RMB RMB Network operations and support 36,286 38,574 40,388 Selling, general and administrative 18,218 17,469 19,348 54,504 56,043 59,736 |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2018 | |
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Other Operating Expenses | 28. OTHER OPERATING EXPENSES Year ended December 31, Notes 2016 2017 2018 RMB RMB RMB Interconnection charges (i ) 11,822 12,223 12,878 Cost of goods sold (ii ) 38,705 31,712 23,185 Donations 19 23 20 Others (iii ) 1,740 1,654 1,614 52,286 45,612 37,697 Notes: (i) Interconnection charges represent amounts incurred for the use of other domestic and foreign telecommunications operators’ networks for delivery of voice and data traffic that originate from the Group’s telecommunications networks. (ii) Cost of goods sold primarily represents cost of telecommunications equipment sold. (iii) Others mainly include tax and surcharges other than value-added tax and income tax. |
Net Finance Costs
Net Finance Costs | 12 Months Ended |
Dec. 31, 2018 | |
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Net Finance Costs | 29. NET FINANCE COSTS Year ended December 31, 2016 2017 2018 RMB RMB RMB Interest expense incurred 4,200 3,913 3,278 Less: Interest expense capitalized* (498 ) (327 ) (185 ) Net interest expense 3,702 3,586 3,093 Interest income (354 ) (429 ) (306 ) Foreign exchange losses 209 664 423 Foreign exchange gains (322 ) (530 ) (502 ) 3,235 3,291 2,708 * Interest expense was capitalized in construction in progress at the following rates per annum 4.1%-5.0% 3.9%-4.9% 3.8%-4.4% |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2018 | |
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Income Tax | 30. INCOME TAX Income tax in the profit or loss comprises: Year ended December 31, 2016 2017 2018 RMB RMB RMB Provision for PRC income tax 3,478 3,147 3,408 Provision for income tax of other tax jurisdictions 155 123 120 Deferred taxation 2,360 2,922 3,282 5,993 6,192 6,810 A reconciliation of the expected tax expense with the actual tax expense is as follows: Year ended December 31, Notes 2016 2017 2018 RMB RMB RMB Earnings before income tax 24,116 24,953 28,148 Expected income tax expense at statutory tax rate of 25% (i ) 6,029 6,238 7,037 Differential tax rate on PRC subsidiaries’ and branches’ income (i ) (275 ) (108 ) (291 ) Differential tax rate on other subsidiaries’ income (ii ) (53 ) (82 ) (58 ) Non-deductible (iii ) 485 380 537 Non-taxable (iv ) (105 ) (112 ) (319 ) Others (v ) (88 ) (124 ) (96 ) Actual income tax expense 5,993 6,192 6,810 Notes: (i) Except for certain subsidiaries and branches which are mainly taxed at a preferential rate of 15%, the provision for mainland China income tax is based on a statutory rate of 25% of the assessable income of the Company, its mainland China subsidiaries and branches as determined in accordance with the relevant income tax rules and regulations of the PRC. (ii) Income tax provisions of the Company’s subsidiaries in Hong Kong and Macau Special Administrative Regions of the PRC, and in other countries are based on the subsidiaries’ assessable income and income tax rates applicable in the respective tax jurisdictions which range from 8% to 35%. (iii) Amounts represent miscellaneous expenses in excess of statutory deductible limits for tax purposes. (iv) Amounts represent miscellaneous income which are not subject to income tax. (v) Amounts primarily represent settlement of tax filing differences of prior year annual tax return and other tax benefits. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2018 | |
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Dividends | 31. DIVIDENDS Pursuant to a resolution passed at the Board of Directors’ meeting on March 19, 2019, a final dividend of equivalent to HK$0.125 per share totaling approximately RMB8,629 for the year ended December 31, 2018 was proposed for shareholders’ approval at the Annual General Meeting. The dividend has not been provided for in the consolidated financial statements for the year ended December 31, 2018. Pursuant to the shareholders’ approval at the Annual General Meeting held on May 28, 2018, a final dividend of RMB0.093512 (equivalent to HK$0.115) per share totaling RMB7,568 in respect of the year ended December 31, 2017 was declared, and paid on July 27, 2018. Pursuant to the shareholders’ approval at the Annual General Meeting held on May 23, 2017, a final dividend of RMB0.093043 (equivalent to HK$0.105) per share totaling RMB7,530 in respect of the year ended December 31, 2016 was declared and paid on July 21, 2017. |
Basic Earnings Per Share
Basic Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
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Basic Earnings Per Share | 32. BASIC EARNINGS PER SHARE The calculation of basic earnings per share for the years ended December 31, 2016, 2017 and 2018 is based on the profit attributable to equity holders of the Company of RMB18,018, RMB18,617 and RMB21,210, respectively, divided by 80,932,368,321 shares. The amount of diluted earnings per share is not presented as there were no dilutive potential ordinary shares in existence for the periods presented. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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Commitments and Contingencies | 33. COMMITMENTS AND CONTINGENCIES Operating lease commitments The Group leases business premises and equipment through non-cancellable As of December 31, 2018, the Group’s future minimum lease payments under non-cancellable RMB 2019 15,658 2020 14,466 2021 13,440 2022 12,682 2023 3,461 Thereafter 6,098 Total minimum lease payments 65,805 Operating lease commitment as set out above includes the lease commitment to China Tower for the tower assets lease fee. The amount was calculated based on the current lease condition and did not take into consideration the contingent adjustment to the lease charges resulting from the change in sharing of certain towers amongst the telecommunications operators. Total rental expense in respect of operating leases charged to profit or loss for the years ended December 31, 2016, 2017 and 2018 were RMB21,240, RMB25,493 and RMB27,810, respectively. Capital commitments As of December 31, 2018, the Group had capital commitments as follows: RMB Contracted for but not provided - property 1,103 - telecommunications network plant and equipment 14,200 15,303 Contingent liabilities (a) The Group was advised by their PRC lawyers that no material contingent liabilities were assumed by the Group. (b) As of December 31, 2017 and 2018, the Group did not have contingent liabilities in respect of guarantees given to banks in respect of banking facilities granted to other parties, or other forms of contingent liabilities. Legal contingencies The Group is a defendant in certain lawsuits as well as the named party in other proceedings arising in the ordinary course of business. Management has assessed the likelihood of an unfavorable outcome of such contingencies, lawsuits or other proceedings and based on such assessment, believes that any resulting liabilities will not have a material adverse effect on the financial position, operating results or cash flows of the Group. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
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Financial Instruments | 34. FINANCIAL INSTRUMENTS Financial assets of the Group include cash and cash equivalents, bank deposits, equity instrument, accounts receivable and financial assets included in prepayments and other current assets. Financial liabilities of the Group include short-term and long-term debt, accounts payable and financial liabilities included in accrued expenses and other payables. The Group does not hold nor issue financial instruments for trading purposes. (a) Fair Value Measurements Based on IFRS 13, “ Fair Value Measurement • Level 1: fair values measured using quoted prices (unadjusted) in active markets for identical financial instruments • Level 2: fair values measured using quoted prices in active markets for similar financial instruments, or using valuation techniques in which all significant inputs are directly or indirectly based on observable market data • Level 3: fair values measured using valuation techniques in which any significant input is not based on observable market data The fair values of the Group’s financial instruments (other than long-term debt and equity instruments measured at fair value) approximate their carrying amounts due to the short-term maturity of these instruments. The listed equity securities investment included in Group’s equity instruments at fair value through other comprehensive income (2017: available-for-sale The fair values of long-term debt is estimated by discounting future cash flows using current market interest rates offered to the Group for debt with substantially the same characteristics and maturities. The fair value measurement of long-term debt is categorized as level 2. The interest rates used by the Group in estimating the fair values of long-term debt, having considered the foreign currency denomination of the debt, ranged from 1.0% to 4.9% (2017: 1.0% to 4.9%). As of December 31, 2017 and 2018, the carrying amounts and fair value of the Group’s long-term debt was as follows: December 31, 2017 December 31, 2018 Carrying amount Fair value Carrying amount Fair value RMB RMB RMB RMB Long-term debt 49,742 48,256 45,991 44,968 During the year, there were no transfers among instruments in level 1, level 2 or level 3. (b) Risks The Group’s financial instruments are exposed to three main types of risks, namely, credit risk, liquidity risk and market risk (which mainly comprises of interest rate risk and foreign currency exchange rate risk). The Group’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. Risk management is carried out under policies approved by the Board of Directors. The Board provides principles for overall risk management, as well as policies covering specific areas, such as liquidity risk, credit risk, and market risk. The Board regularly reviews these policies and authorizes changes if necessary based on operating and market conditions and other relevant risks. The following summarizes the qualitative and quantitative disclosures for each of the three main types of risks: (i) Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. For the Group, this arises mainly from deposits it maintains at financial institutions and credit it provides to customers for the provision of telecommunications services. Cash and cash equivalents and short-term bank deposits To limit exposure to credit risk relating to deposits, the Group primarily places cash deposits only with large state-owned financial institutions in the PRC with acceptable credit ratings. The credit risks on bank balances are limited because the counterparties are banks with high credit ratings. Accounts receivable and contract assets arising from contracts with customers For accounts receivable and contract assets, management performs ongoing credit evaluations of its customers’ financial condition and generally does not require collateral on accounts receivable and contract assets. These evaluations focus on the customer’s past history of making payments when due and current ability to pay, and take into account information specific to the customer as well as pertaining to the economic environment in which the customer operates. In addition, the Group performs impairment assessment under ECL model upon application of IFRS 9 (2017: incurred loss model) on trade balances individually or based on provision matrix. Furthermore, the Group has a diversified base of customers with no single customer contributing more than 10% of revenues for the periods presented. The Group measures loss allowances for accounts receivable and contract assets at an amount equal to lifetime ECL, which is calculated using a provision matrix. As different loss patterns were indicated during the analysis of the Group’s historical credit loss experience between telephone and Internet subscribers and enterprise customers, the following tables provide information about the Group’s exposure to credit risk and ECL for accounts receivable from telephone and Internet subscribers and enterprise customers and contract assets, respectively, as of December 31, 2018: Accounts receivable from telephone and Internet subscribers: December 31, 2018 Expected Gross carrying Loss % RMB RMB Current, within 1 month 2 % 8,376 158 1 to 3 months 20 % 2,117 420 4 to 6 months 60 % 839 502 7 to 12 months 80 % 1,093 875 Over 12 months 100 % 943 943 13,368 2,898 Accounts receivable from enterprise customers and contract assets: December 31, 2018 Expected Gross carrying Loss % RMB RMB 1 to 6 months 2 % 4,478 109 7 to 12 months 20 % 800 157 1 to 2 years 60 % 479 290 2 to 3 years 90 % 225 202 Over 3 years 100 % 298 298 6,280 1,056 As of December 31, 2018, the loss allowance for accounts receivable and contract assets was RMB4,680 and RMB8, respectively. Loss allowance of RMB734 as of December 31,2018, which was not calculated collectively in the above tables, was made individually on debtors with significant balances and credit impaired debtors. Expected loss rates are based on actual loss experience over the past 1 to 3 year. These rates are adjusted to reflect differences between economic conditions during the period over which the historical data has been collected, current conditions and the Group’s view of economic conditions over the expected lives of the receivables. Movement in the loss allowance account in respect of accounts receivable during the year is as follows: RMB At December 31, 2017 under IAS 39 3,842 Impact on initial application of IFRS 9 (note 2.2) 919 At January 1, 2018 4,761 Impairment losses for ECL 2,008 Accounts receivable written off (2,089 ) At December 31, 2018 4,680 (ii) Liquidity risk Liquidity risk refers to the risk that funds will not be available to meet liabilities as they fall due, and results from timing and amount mismatches of cash inflow and outflow. The Group manages liquidity risk by maintaining sufficient cash balances and adequate amount of committed banking facilities to meet its funding needs, including working capital, principal and interest payments on debts, dividend payments, capital expenditures and new investments for a set minimum period of between 3 to 6 months.. The following table sets out the remaining contractual maturities at the end of the reporting period of the Group’s financial liabilities, which are based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on prevailing rates at the end of the reporting period) and the earliest date the Group would be required to repay: 2017 Carrying Total Within 1 More than 1 More than 2 More RMB RMB RMB RMB RMB RMB Short-term debt 54,558 55,682 55,682 — — — Long-term debt 49,742 58,543 2,725 2,716 46,612 6,490 Accounts payable 119,321 119,321 119,321 — — — Accrued expenses and other payables 98,695 98,695 98,695 — — — Finance lease obligations 77 85 56 14 13 2 322,393 332,326 276,479 2,730 46,625 6,492 2018 Carrying Total Within 1 More than 1 More than 2 More RMB RMB RMB RMB RMB RMB Short-term debt 49,537 51,091 51,091 — — — Long-term debt 45,991 52,625 2,602 19,604 25,061 5,358 Accounts payable 107,887 107,887 107,887 — — — Accrued expenses and other payables 43,497 43,497 43,497 — — — Finance lease obligations 216 241 112 40 82 7 247,128 255,341 205,189 19,644 25,143 5,365 Management believes that the Group’s current cash on hand, expected cash flows from operations and available credit facilities from banks (Note 18) will be sufficient to meet the Group’s working capital requirements and repay its borrowings and obligations when they become due. (iii) Interest rate risk The Group’s interest rate risk exposure arises primarily from its short-term debt and long-term debt. Debts carrying interest at variable rates and at fixed rates expose the Group to cash flow interest rate risk and fair value interest rate risk respectively. The Group manages its exposure to interest rate risk by closely monitoring the change in the market interest rate. The following table sets out the interest rate profile of the Group’s debt at the end of the reporting period: 2017 2018 Effective Effective % RMB % RMB Fixed rate debt: Short-term debt 4.0 54,042 3.2 49,347 Long-term debt 3.3 49,742 3.3 45,991 103,784 95,338 Variable rate debt: Short-term debt 4.1 516 4.2 190 516 190 Total debt 104,300 95,528 Fixed rate debt as a percentage of total debt 99.5 % 99.8 % Management does not expect the increase or decrease in interest rate will materially affect the Group’s financial position and result of operations because the interest rates of 99.8% (December 31, 2017: 99.5%) of the Group’s short-term and long-term debt as of December 31, 2018 are fixed as set out above. (iv) Foreign currency exchange rate risk Foreign currency exchange rate risk arises on financial instruments that are denominated in a currency other than the functional currency in which they are measured. The Group’s foreign currency risk exposure relates to bank deposits and borrowings denominated primarily in US dollars, Euros and Hong Kong dollars. Management does not expect the appreciation or depreciation of the Renminbi against foreign currencies will materially affect the Group’s financial position and result of operations because 64.0% (December 31, 2017: 81.6%) of the Group’s cash and cash equivalents and 99.4% (December 31, 2017: 99.4%) of the Group’s short-term and long-term debt as of December 31, 2018 are denominated in Renminbi. Details of bank loans denominated in other currencies are set out in Note 18. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2018 | |
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Capital Management | 35. CAPITAL MANAGEMENT The Group’s primary objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, so that it can continue to provide investment returns for shareholders and benefits for other stakeholders, by pricing products and services commensurately with the level of risk and by securing access to finance at a reasonable cost. Management regularly reviews and manages its capital structure to maintain a balance between the higher shareholder returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position, and makes adjustments to the capital structure in light of changes in economic conditions. Management monitors its capital structure on the basis of total debt-to-total debt-to-total Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements. |
Reconciliation of Liabilities A
Reconciliation of Liabilities Arising from Financing Activities | 12 Months Ended |
Dec. 31, 2018 | |
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Reconciliation of Liabilities Arising from Financing Activities | 36. RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash Short-term Long-term Finance lease Other payables non-controlling Consideration Consideration non-controlling Dividend Total RMB RMB RMB RMB RMB RMB RMB RMB Balance as of January 1, 2017 40,780 71,646 102 — — — — 112,528 Financing cash flows 13,778 (22,191 ) (84 ) — — (31 ) (7,619 ) (16,147 ) New finance leases — — 55 — — — — 55 Interest expenses — 295 9 — — — — 304 Foreign exchange gain — (8 ) — — — — — (8 ) Acquisition of the Eighth Acquired Group — — — — 87 — — 87 Acquisition of non-controlling — — — — — 150 — 150 Distribution to non-controlling — — — — — — 89 89 Dividends declared — — — — — — 7,530 7,530 Others — — (5 ) — — — — (5 ) Balance as of December 31, 2017 54,558 49,742 77 — 87 119 — 104,583 Financing cash flows (5,021 ) (4,073 ) (73 ) (20 ) (87 ) (119 ) (7,745 ) (17,138 ) New finance leases — — 200 — — — — 200 Interest expenses — 304 12 — — — — 316 Foreign exchange loss — 18 — — — — — 18 Reduction of capital by non-controlling — — — 20 — — — 20 Distribution to non-controlling — — — — — — 177 177 Dividends declared — — — — — — 7,568 7,568 Balance as of December 31, 2018 49,537 45,991 216 — — — — 95,744 Other than net financing cash outflows for the year ended December 31, 2018 totaling RMB17,138 as presented above, E-surfing non-controlling |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
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Related Party Transactions | 37. RELATED PARTY TRANSACTIONS (a) Transactions with China Telecom Group The Group is a part of companies under China Telecommunications Corporation, a company owned by the PRC government, and has significant transactions and business relationships with members of China Telecom Group. The principal transactions with China Telecom Group which were carried out in the ordinary course of business are as follows. Year ended December 31, Notes 2016 2017 2018 RMB RMB RMB Construction and engineering services. (i ) 18,936 18,672 16,396 Receiving ancillary services. (ii ) 13,938 16,072 16,744 Interconnection revenues (iii ) 60 48 80 Interconnection charges (iii ) 232 193 204 Receiving community services (iv ) 2,871 3,028 3,296 Net transaction amount of centralized services (v ) 523 727 519 Property lease income (vi ) 36 53 48 Property lease expenses (vi ) 559 654 713 Provision of IT services (vii ) 312 642 531 Receiving IT services (vii ) 1,597 1,812 1,895 Purchases of telecommunications equipment and materials. (viii ) 5,199 4,248 3,760 Sales of telecommunications equipment and materials. (viii ) 2,786 3,291 2,760 Internet applications channel services (ix ) 332 344 298 Interest on amounts due to and loans from China Telecom Group (x ) 2,928 2,720 2,099 Others (xi ) 176 190 186 Notes: (i) Represent construction and engineering as well as design and supervisory services provided by China Telecom Group. (ii) Represent amounts paid and payable to China Telecom Group in respect of ancillary services such as repairs and maintenance of telecommunications equipment and facilities and certain customer services. (iii) Represent amounts received and receivable from/paid and payable to China Telecom Group for interconnection of local and domestic long distance calls. (iv) Represent amounts paid and payable to China Telecom Group in respect of cultural, educational, health care and other community services. (v) Represent net amount shared between the Company and China Telecom Group for costs associated with centralized services. The amount represents amounts received or receivable for the net amount of centralized services. (vi) Represent amounts of property lease fee received and receivable from/paid and payable to China Telecom Group for mutual leasing of properties. (vii) Represent IT services provided to and received from China Telecom Group. (viii) Represent the amount of telecommunications equipment and materials purchased from/sold to China Telecom Group and commission paid and payable for procurement services provided by China Telecom Group. (ix) Represent amounts received and receivable from China Telecom Group in respect of Internet applications channel services, including the provision of telecommunications channel and applications support platform and billing and deduction services, etc. (x) Represent interest paid and payable to China Telecom Group with respect to the amounts due to China Telecommunications Corporation and loans from China Telecom Group (Note 18). (xi) Represent amounts paid and payable to China Telecom Group primarily for lease of CDMA mobile telecommunications network (“CDMA network”) facilities located in Xizang Autonomous Region, certain inter-provincial transmission optic fibers within its service regions and land use rights. Amounts due from/to China Telecom Group are summarized as follows: December 31, 2017 2018 RMB RMB Accounts receivable 1,502 1,327 Contract assets — 24 Prepayments and other current assets 774 1,035 Total amounts due from China Telecom Group 2,276 2,386 Accounts payable 22,682 20,983 Accrued expenses and other payables 1,838 2,171 Contract liabilities — 145 Short-term debt 19,098 8,584 Long-term debt 40,000 37,000 Total amounts due to China Telecom Group 83,618 68,883 Amounts due from/to China Telecom Group, other than short-term debt and long-term debt, bear no interest, are unsecured and are repayable in accordance with contractual terms which are similar to those terms offered by third parties. The terms and conditions associated with short-term debt and long-term debt due to China Telecom Group are set out in Note 18. As of December 31, 2017 and 2018, no material loss allowance was recognized in respect of amounts due from China Telecom Group. (b) Transactions with China Tower The principal transactions with China Tower are as follows: Year ended December 31, Notes 2016 2017 2018 RMB RMB RMB Tower assets lease and related fee (i ) 11,657 15,389 16,063 Provision of IT services (ii ) 12 49 32 Notes: (i) Represent tower assets lease and related fee paid and payable to China Tower. The Company and China Tower entered into agreement on July 8, 2016 and a supplemental agreement on February 1, 2018 to confirm the pricing and related arrangements in relation to the leases of the telecommunications towers and related assets. (ii) Represent IT and other ancillary services provided to China Tower. Amounts due from/to China Tower are summarized as follows: 2017 2018 RMB RMB Accounts receivable 5 10 Prepayments and other current assets 2,152 293 Total amounts due from China Tower 2,157 303 Accounts payable 2,611 2,850 Accrued expenses and other payables 1,374 1,246 Total amounts due to China Tower 3,985 4,096 Amounts due from/to China Tower bear no interest, are unsecured and are repayable in accordance with contractual terms which are similar to those terms offered by third parties. As of December 31, 2017 and 2018, no material loss allowance was recognized in respect of amounts due from China Tower. (c) Key management personnel compensation Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, including directors and supervisors of the Group. Key management personnel compensation of the Group is summarized as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB thousands thousands thousands Short-term employee benefits. 9,886 7,804 7,942 Post-employment benefits. 801 816 799 10,687 8,620 8,741 The above remuneration is included in personnel expenses. (d) Contributions to post-employment benefit plans The Group participates in various defined contribution post-employment benefit plans organized by municipal, autonomous regional and provincial governments for its employees. Further details of the Group’s post-employment benefit plans are disclosed in Note 38. (e) Transactions with other government-related entities in the PRC The Group is a government-related enterprise and operates in an economic regime currently dominated by entities directly or indirectly controlled by the People’s Republic of China through government authorities, agencies, affiliations and other organizations (collectively referred to as “government-related entities”). Apart from transactions with parent company and its fellow subsidiaries (Note 37(a)), the Group has transactions that are collectively but not individually significant with other government-related entities, which include but not limited to the following: • rendering and receiving services, including but not limited to telecommunications services • sales and purchases of goods, properties and other assets • lease of assets • depositing and borrowing • use of public utilities These transactions are conducted in the ordinary course of the Group’s business on terms comparable to the terms of transactions with other entities that are not government-related. The Group prices its telecommunications services and products based on government-regulated tariff rates, where applicable, or based on commercial negotiations. The Group has also established procurement policies and approval processes for purchases of products and services, which do not depend on whether the counterparties are government-related entities or not. The directors of the Company believe the above information provides appropriate disclosure of related party transactions. |
Post-employment Benefits Plans
Post-employment Benefits Plans | 12 Months Ended |
Dec. 31, 2018 | |
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Post-employment Benefits Plans | 38. POST-EMPLOYMENT BENEFITS PLANS As stipulated by the regulations of the PRC, the Group participates in various defined contribution retirement plans organized by municipal, autonomous regional and provincial governments for its employees. The Group is required to make contributions to the retirement plans at rates ranging from 13% to 20% of the salaries, bonuses and certain allowances of the employees. A member of the plan is entitled to a pension equal to a fixed proportion of the salary prevailing at the member’s retirement date. Other than the above, the Group also participates in supplementary defined contribution retirement plans managed by independent external parties whereby the Group is required to make contributions to the retirement plans at fixed rates of the employees’ salaries, bonuses and certain allowances. The Group has no other material obligation for the payment of pension benefits associated with these plans beyond the annual contributions described above. The Group’s contributions for the above plans for the years ended December 31, 2016, 2017 and 2018 were RMB6,656 and RMB6,884 and RMB7,256, respectively. The amount payable for contributions to the above defined contribution retirement plans as of December 31, 2017 and 2018 was RMB569 and RMB675, respectively. |
Share Appreciation Rights
Share Appreciation Rights | 12 Months Ended |
Dec. 31, 2018 | |
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Share Appreciation Rights | 39. SHARE APPRECIATION RIGHTS The Group implemented a share appreciation rights plan for members of its management to provide incentives to these employees. Under this plan, share appreciation rights are granted in units with each unit representing one H share. No shares will be issued under the share appreciation rights plan. Upon exercise of the share appreciation rights, a recipient will receive, subject to any applicable withholding tax, a cash payment in RMB, translated from the Hong Kong dollar amount equal to the product of the number of share appreciation rights exercised and the difference between the exercise price and market price of the Company’s H shares at the date of exercise based on the applicable exchange rate between RMB and Hong Kong dollar at the date of the exercise, where the highest proportion of the earnings from exercise of the share appreciation rights to the total remuneration at the grant of the share appreciation rights shall be 40%. The Company recognizes compensation expense of the share appreciation rights over the applicable period. In November 2018, the Company approved the granting of 2,394 million share appreciation right units to eligible employees. Under the terms of this grant, all share appreciation rights had a contractual life of five years from date of grant and an exercise price of HK$3.81 per unit. A recipient of share appreciation rights may exercise the rights in stages commencing November 2020. As of each of the third, fourth and fifth anniversary of the date of grant, the total number of share appreciation rights exercisable may not in aggregate exceed 33.3%, 66.7% and 100.0%, respectively, of the total share appreciation rights granted to such person. During the year ended December 31, 2018 and 2017, no share appreciation right units were exercised. For the year ended December 31, 2018, compensation expense of RMB30 was recognized by the Group in respect of share appreciation rights (2017: Nil). As of December 31, 2018, the carrying amount of the liability arising from share appreciation rights was RMB30. As of December 31, 2017, no liability arising from share appreciation rights was assumed by the Group. |
Principal Subsidiaries
Principal Subsidiaries | 12 Months Ended |
Dec. 31, 2018 | |
Investments accounted for using equity method [abstract] | |
Principal Subsidiaries | 40. PRINCIPAL SUBSIDIARIES Details of the Company’s subsidiaries which principally affected the results, assets and liabilities of the Group as of December 31, 2018 are as follows: Name of company Type of legal entity Date of incorporation Place of incorporation and operation Registered /issued capital (in RMB million unless Principal activities China Telecom System Integration Co., Limited Limited Company September 13, 2001 PRC 542 Provision of system integration and consulting services China Telecom Global Limited Limited Company February 25, 2000 Hong Kong Special Administrative Region of the PRC HK$168 million Provision of telecommunications services China Telecom (Americas) Corporation Limited Company November 22, 2001 The United States of America US$43 million Provision of telecommunications services China Telecom Best Tone Information Service Co., Limited Limited Company August 15, 2007 PRC 350 Provision of Best Tone information services China Telecom (Macau) Company Limited Limited Company October 15, 2004 Macau Special Administrative Region of the PRC MOP60 million Provision of telecommunications services Tianyi Telecom Terminals Company Limited Limited Company July 1, 2005 PRC 500 Sales of telecommunications terminals China Telecom (Singapore) Pte. Limited Limited Company October 5, 2006 Singapore S$1,000,001 Provision of international value-added network services E-surfing Limited Company March 3, 2011 PRC 500 Provision of e-commerce Shenzhen Shekou Telecommunications Company Limited Limited Company May 5, 1984 PRC 91 Provision of telecommunications services China Telecom (Australia) Pty Ltd Limited Company January 10, 2011 Australia AUD1 million Provision of international value-added network services China Telecom Korea Co.,Ltd Limited Company May 16, 2012 South Korea KRW500 million Provision of international value-added network services China Telecom (Malaysia) SDN BHD Limited Company June 26, 2012 Malaysia MYR3,723,500 Provision of international value-added network services China Telecom Information Technology (Vietnam) Co., Ltd Limited Company July 9, 2012 Vietnam VND10,500 million Provision of international value-added network services iMUSIC Culture & Technology Co., Ltd. Limited Company June 9, 2013 PRC 250 Provision of music production and related information services China Telecom (Europe) Limited Limited Company March 2, 2006 The United Kingdom of Great Britain and Northern Ireland GBP16.15 million Provision of international value-added network services Zhejiang Yixin Technology Co., Ltd. Limited Company August 19, 2013 PRC 11 Provision of instant messenger service Tianyi Capital Holding Co., Ltd. Limited Company November 30, 2017 PRC 5,000 Capital Investment and provision of consulting services China Telecom Leasing Corporation Limited. Limited Company November 30, 2018 PRC 5,000 Provision of finance lease service Except for Shenzhen Shekou Telecommunications Company Limited which is 51% owned by the Company, Zhejiang Yixin Technology Co., Ltd. which is 65% owned by the Company and E-surfing non-controlling |
Accounting Estimates and Judgme
Accounting Estimates and Judgments | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Accounting Estimates and Judgments | 41. ACCOUNTING ESTIMATES AND JUDGMENTS The Group’s financial position and results of operations are sensitive to accounting methods, assumptions and estimates that underlie the preparation of the consolidated financial statements. Management bases the assumptions and estimates on historical experience and on other factors that the management believes to be reasonable and which form the basis for making judgments about matters that are not readily apparent from other sources. On an on-going The selection of significant accounting policies, the judgments and other uncertainties affecting application of those policies and the sensitivity of reported results to changes in conditions and assumptions are factors to be considered when reviewing the consolidated financial statements. The significant accounting policies are set forth in Note 3. Management believes the following significant accounting policies involve the most significant judgments and estimates used in the preparation of the consolidated financial statements. Provision of ECL for accounts receivable The Group uses provision matrix to calculate ECL for the accounts receivable. The provision rates are based on customer’s past history of making payments when due and current ability to pay by groupings of various debtors that have similar loss patterns. The provision matrix is based on the Group’s historical default rates taking into consideration reasonable and supportable forward-looking information that is available without undue cost or effort. The historical observed default rates are reassessed annually, and changes in the forward-looking information are considered. In addition, accounts receivable with significant balances and credit-impaired are assessed for ECL individually. The provision of ECL is sensitive to changes in estimates. The information about the ECL and the Group’s accounts receivable are disclosed in notes 5 and 34. Impairment of goodwill and long-lived assets If circumstances indicate that the carrying amount of a long-lived asset may not be recoverable, the asset may be considered “impaired”, and an impairment loss would be recognized in accordance with accounting policy for impairment of long-lived assets as described in Note 3(i). The carrying amounts of the Group’s long-lived assets, including property, plant and equipment, intangible assets with finite useful lives, construction in progress and contract costs are reviewed periodically to determine whether there is any indication of impairment. These assets are tested for impairment whenever events or changes in circumstances indicate that their recorded carrying amounts may not be recoverable. For goodwill, the impairment testing is performed annually at the end of each reporting period. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and fair value less costs of disposal. When an asset does not generate cash flows largely independent of those from other assets, the recoverable amount is determined for the smallest group of assets that generates cash inflows independently (i.e. a cash-generating unit). In determining the value in use, expected future cash flows generated by the assets are discounted to their present value. An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. It is difficult to precisely estimate fair value of the Group’s long-lived assets because quoted market prices for such assets may not be readily available. In determining the value in use, expected future cash flows generated by the asset are discounted to their present value, which requires significant judgment relating to level of revenue, amount of operating costs and applicable discount rate. Management uses all readily available information in determining an amount that is a reasonable approximation of recoverable amount, including estimates based on reasonable and supportable assumptions and projections of revenue and amount of operating costs. For the year ended December 31, 2018, no provision for impairment losses were made against the carrying value of long-lived assets. For the year ended December 31, 2017, provision for impairment losses of RMB10 were made against the carrying value of long-lived assets. For the year ended December 31, 2016, provision for impairment losses of RMB62 were made against the carrying value of long-lived assets. In determining the recoverable amount of these equipment, significant judgments were required in estimating future cash flows, level of revenue, amount of operating costs and applicable discount rate. Changes in these estimates could have a significant impact on the carrying value of the assets and could result in additional impairment charge or reversal of impairment in future periods. Depreciation and amortization Property, plant and equipment and intangible assets with finite useful lives are depreciated and amortized on a straight-line basis over the estimated useful lives of the assets, after taking into account their estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation and amortization expense to be recorded during any reporting period. The useful lives and residual values are based on the Group’s historical experience with similar assets and take into account anticipated technological changes. The depreciation and amortization expense for future periods is adjusted if there are significant changes from previous estimates. Classification of lease arrangement with China Tower The Company and China Tower entered into a lease arrangement regarding the lease of Tower Assets on July 8, 2016 and a supplemental agreement on February 1, 2018. Management evaluated the detailed clauses of the lease agreements and determined such lease arrangements as operating leases according to the accounting policies disclosed in Note 3(o) and based on the following judgments: (i) the Company does not expect any transfer of ownership of Tower Assets from China Tower by the end of the lease term; (ii) the Company considered the current lease term of 5 years does not account for the major part of the economic lives of Tower Assets; (iii) the present value of minimum lease payment at the inception of the lease does not substantially account for all of the fair value of the Tower Assets; and (iv) Tower Assets are compatible with all telecommunications operators, and therefore are not of specialized nature that only the Company can use them without major modifications. |
Possible Impact of Amendments t
Possible Impact of Amendments to Standards , New Standards and Interpretation Issued but Not Yet Effective for the Annual Accounting Period Ended December 31, 2018 | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Possible Impact of Amendments to Standards , New Standards and Interpretation Issued but Not Yet Effective for the Annual Accounting Period Ended December 31, 2018 | 42. POSSIBLE IMPACT OF AMENDMENTS TO STANDARDS, NEW STANDARDS AND INTERPRETATION ISSUED BUT NOT YET EFFECTIVE FOR THE ANNUAL ACCOUNTING PERIOD ENDED DECEMBER 31, 2018 Up to the date of issue of these consolidated financial statements, the IASB has issued the following amendments to standards, new standards and interpretation which are not yet effective and not early adopted for the annual accounting period ended December 31, 2018: Effective for accounting IFRS 16, “Leases” 1 January 2019 IFRIC 23, “Uncertainty over Income Tax Treatments” 1 January 2019 Amendments to IFRS 9, “Prepayment Features with Negative Compensation” 1 January 2019 Amendments to IAS 28, “Long-term Interests in Associates and Joint Ventures” 1 January 2019 Amendments to IFRSs, “Annual Improvements to IFRS Standards 2015-2017 Cycle” 1 January 2019 Amendments to IAS 19, “Plan Amendment, Curtailment or Settlement” 1 January 2019 Amendments to IFRS 3, “Definition of a Business” 1 January 2020 Amendments to IAS 1 and IAS 8, “Definition of Material” 1 January 2020 IFRS 17, “Insurance Contracts” 1 January 2021 Amendments to IFRS 10 and IAS 28, “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” Postponed The Group is in the process of making an assessment of the impact that will result from adopting the amendments to standards, new standards and interpretation issued by the IASB which are not yet effective for the accounting period ended on December 31, 2018. Except for IFRS 16, “Leases” IFRS 16, “Leases” IFRS 16 introduces a comprehensive model for the identification of lease arrangements and accounting treatments for both lessors and lessees. IFRS 16 will supersede IAS 17, “Leases” IFRS 16 distinguishes lease and service contracts on the basis of whether an identified asset is controlled by a customer. Distinctions of operating leases and finance leases are removed for lessee accounting, and is replaced by a model where a right-of-use The right-of-use Under IAS 17, the Group has already recognized an asset and a related finance lease liability for finance lease arrangement and prepaid lease payments for land use rights where the Group is a lessee. The application of IFRS 16 may result in potential changes in classification of these assets depending on whether the Group presents right-of-use Other than certain requirements which are also applicable to lessor, IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17, and continues to require a lessor to classify a lease either as an operating lease or a finance lease. Furthermore, extensive disclosures are required by IFRS 16. As of December 31, 2018, the Group has non-cancellable right-of-use The application of new requirements may result in changes in measurement, presentation and disclosure as indicated above. The Group intends to elect the modified retrospective approach for the application of IFRS 16 as lessee and will recognize the cumulative effect of initial application to opening reserves without restating comparative information. |
Event After the Reporting Perio
Event After the Reporting Period | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Event After the Reporting Period | 43. EVENT AFTER THE REPORTING PERIOD The Company, China Telecommunications Corporation and China Communications Services Corporation Limited (“CCS”, a subsidiary of China Telecommunications Corporation) entered into an agreement (“Capital Contribution Agreement”) on June 22, 2018 and jointly established China Telecom Group Finance Co., Ltd. (“China Telecom Finance”), a non-banking The Company, China Telecommunications Corporation and CCS respectively contributed RMB3,500, RMB750 and RMB750, which respectively represented 70%, 15% and 15% of the total registered capital of China Telecom Finance. As the Company holds 70% of the issued share capital of China Telecom Finance, China Telecom Finance is a subsidiary of the Company. |
Parent and Ultimate Holding Com
Parent and Ultimate Holding Company | 12 Months Ended |
Dec. 31, 2018 | |
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Parent and Ultimate Holding Company | 44. PARENT AND ULTIMATE HOLDING COMPANY The parent and ultimate holding company of the Company as of December 31, 2018 is China Telecommunications Corporation, a state-owned enterprise established in the PRC. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Basis of preparation | (a) Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with IFRSs as issued by IASB. The consolidated financial statements of the Group have been prepared on a going concern basis. These consolidated financial statements were approved and authorized by the Board of Directors on March 19, 2019. The consolidated financial statements are prepared on the historical cost basis as modified by the revaluation of certain financial instruments measured at fair value (Note 3(k)). The preparation of consolidated financial statements in conformity with IFRSs requires management to make judgments, estimates and assumptions that affect the application of policies and the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates and associated assumptions are based on historical experience and various other factors that management believes are reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. Judgments made by management in the application of IFRSs that have significant effect on the consolidated financial statements and major sources of estimation uncertainty are discussed in Note 41. |
Basis of consolidation | (b) Basis of consolidation The consolidated financial statements comprise the Company and its subsidiaries and the Group’s interests in associates. A subsidiary is an entity controlled by the Company. When fulfilling the following conditions, the Company has control over an entity: (a) has power over the investee, (b) has exposure, or rights, to variable returns from its involvement with the investee, and (c) has the ability to use its power over the investee to affect the amount of the investor’s returns. When assessing whether the Company has power over that entity, only substantive rights (held by the Company and other parties) are considered. The financial results of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases, and the profit attributable to non-controlling non-controlling Non-controlling non-controlling Non-controlling non-controlling An associate is an entity, not being a subsidiary, in which the Group exercises significant influence, but not control, over its management. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. An investment in an associate is accounted for in the consolidated financial statements under the equity method and is initially recorded at cost, adjusted for any excess of the Group’s share of the acquisition-date fair values of the investee’s net identifiable assets over the cost of the investment (if any) after reassessment. Thereafter, the investment is adjusted for the Group’s equity share of the post-acquisition changes in the associate’s net assets and any impairment loss relating to the investment. When the Group ceases to have significant influence over an associate, it is accounted for as a disposal of the entire interest in that investee, with a resulting gain or loss being recognized in profit or loss. Any interest retained in that former investee at the date when significant influence is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset. All significant intercompany balances and transactions and unrealized gains arising from intercompany transactions are eliminated on consolidation. Unrealized gains arising from transactions with associates are eliminated to the extent of the Group’s interest in the entity. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. |
Foreign currencies | (c) Foreign currencies The accompanying consolidated financial statements are presented in Renminbi (“RMB”). The functional currency of the Company and its subsidiaries in mainland China is RMB. The functional currency of the Group’s foreign operations is the currency of the primary economic environment in which the foreign operations operate. Transactions denominated in currencies other than the functional currency during the year are translated into the functional currency at the applicable rates of exchange prevailing on the transaction dates. Foreign currency monetary assets and liabilities are translated into the functional currency using the applicable exchange rates at the end of the reporting period. The resulting exchange differences, other than those capitalized as construction in progress (Note 3(e)), are recognized as income or expense in profit or loss. For the periods presented, no exchange differences were capitalized. When preparing the Group’s consolidated financial statements, the results of operations of the Group’s foreign operations are translated into RMB at average rate prevailing during the year. Assets and liabilities of the Group’s foreign operations are translated into RMB at the foreign exchange rates ruling at the end of the reporting period. The resulting exchange differences are recognized in other comprehensive income and accumulated separately in equity in the exchange reserve. |
Property, plant and equipment | (d) Property, plant and equipment Property, plant and equipment are initially recorded at cost, less subsequent accumulated depreciation and impairment losses (Note 3(i)). The cost of an asset comprises its purchase price, any directly attributable costs of bringing the asset to working condition and location for its intended use and the cost of borrowed funds used during the periods of construction. Expenditure incurred after the asset has been put into operation, including cost of replacing part of such an item, is capitalized only when it increases the future economic benefits embodied in the item of property, plant and equipment and the cost can be measured reliably. All other expenditure is expensed as it is incurred. Assets held under finance leases (Note 3(o)) are amortized over the shorter of the lease term and their estimated useful lives on a straight-line basis. As of December 31, 2018, no asset was held by the Group under finance leases (December 31, 2017: nil). Gains or losses arising from retirement or disposal of property, plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the respective asset and are recognized as income or expense in the profit or loss on the date of disposal. Depreciation is provided to write off the cost of each asset over its estimated useful life on a straight-line basis, after taking into account its estimated residual value, as follows: Depreciable lives Buildings and improvements 8 to 30 years Telecommunications network plant and equipment 5 to 10 years Furniture, fixture, motor vehicles and other equipment 5 to 10 years Where parts of an item of property, plant and equipment have different useful lives, the cost of the item is allocated on a reasonable basis between the parts and each part is depreciated separately. Both the useful life of an asset and its residual value are reviewed annually. |
Construction in progress | (e) Construction in progress Construction in progress represents buildings, telecommunications network plant and equipment and other equipment and intangible assets under construction and pending installation, and is stated at cost less impairment losses (Note 3(i)). The cost of an item comprises direct costs of construction, capitalization of interest charge, and foreign exchange differences on related borrowed funds to the extent that they are regarded as an adjustment to interest charges during the periods of construction. Capitalization of these costs ceases and the construction in progress is transferred to property, plant and equipment and intangible assets when the asset is substantially ready for its intended use. No depreciation is provided in respect of construction in progress. |
Lease prepayments | (f) Lease prepayments Lease prepayments represent land use rights paid. Land use rights are initially carried at cost or deemed cost and then charged to profit or loss on a straight-line basis over the respective periods of the rights which range from 20 years to 70 years. |
Goodwill | (g) Goodwill Goodwill represents the excess of the cost over the Group’s interest in the fair value of the net assets acquired in the CDMA business (as defined in Note 11) acquisition. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to cash-generating units and is tested annually for impairment (Note 3(i)). On disposal of a cash generating unit during the year, any attributable amount of the goodwill is included in the calculation of the profit or loss on disposal. |
Intangible assets | (h) Intangible assets The Group’s intangible assets are primarily software. Software that is not an integral part of any tangible assets, is recorded at cost less subsequent accumulated amortization and impairment losses (Note 3(i)). Amortization of software is mainly calculated on a straight-line basis over the estimated useful lives, which range from 3 to 5 years. |
Impairment of long-lived assets | (i) Impairment of goodwill and long-lived assets The carrying amounts of the Group’s long-lived assets, including property, plant and equipment, intangible assets with finite useful lives, construction in progress and contract costs included in other assets are reviewed periodically to determine whether there is any indication of impairment. These assets are tested for impairment whenever events or changes in circumstances indicate that their recorded carrying amounts may not be recoverable. For goodwill, the impairment testing is performed annually at each year end. Before the Group recognizes an impairment loss for assets capitalized as contract costs under IFRS 15, the Group assesses and recognizes any impairment loss on other assets related to the relevant contracts in accordance with applicable standards. Then, impairment loss, if any, for assets capitalized as contract costs is recognized to the extent the carrying amounts exceeds the remaining amount of consideration that the Group expects to receive in exchange for related goods or services less the costs which relate directly to providing those goods or services that have not been recognized as expenses. The assets capitalized as contract costs are then included in the carrying amount of the cash-generating unit to which they belong for the purpose of evaluating impairment of that cash-generating unit. The recoverable amount of an asset or cash-generating unit is the greater of its fair value less costs of disposal and value in use. The recoverable amount of a tangible and an intangible asset is estimated individually. When an asset does not generate cash flows largely independent of those from other assets, the recoverable amount is determined for the smallest group of assets that generates cash inflows independently (i.e. a cash-generating unit). In determining the value in use, expected future cash flows generated by the assets are discounted to their present value using a pre-tax An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment loss is recognized as an expense in profit or loss. Impairment loss recognized in respect of cash-generating units is allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amounts of the other assets in the unit (group of units) on a pro rata basis. The Group assesses at the end of each reporting period whether there is any indication that an impairment loss recognized for an asset in prior years may no longer exist. An impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount. A subsequent increase in the recoverable amount of an asset, when the circumstances and events that led to the write-down cease to exist, is recognized as an income in profit or loss. The reversal is reduced by the amount that would have been recognized as depreciation and amortization had the write-down not occurred. An impairment loss in respect of goodwill is not reversed. For the years presented, no reversal of impairment loss was recognized in profit or loss. |
Inventories | (j) Inventories Inventories consist of materials and supplies used in maintaining the telecommunications network and goods for resale. Inventories are valued at cost using the specific identification method or the weighted average cost method, less a provision for obsolescence. Inventories are stated at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, the estimated costs to make the sale and the related tax expenses. |
Financial instruments | (k) Financial instruments Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument. All regular way purchases or sales of financial assets are recognized and derecognized on a settlement date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the market place. Financial assets and financial liabilities are initially measured at fair value except for accounts receivable arising from contracts with customers which are initially measured in accordance with IFRS 15 since January 1, 2018. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, other than financial assets or financial liabilities at fair value through profit or loss (“FVTPL”) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. The effective interest method is a method of calculating the amortized cost of a financial asset or financial liability and of allocating interest income and interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts and payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial asset or financial liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. Financial assets Classification and subsequent measurement of financial assets (upon application of IFRS 9 in accordance with transitions in note 2.2) The Group’s financial assets include financial assets measured subsequently at amortized cost and equity instruments designated as at FVTOCI. (i) Financial assets measured subsequently at amortized cost Financial assets that meet the following conditions are subsequently measured at amortized cost: • the financial asset is held within a business model whose objective is to collect contractual cash flows; and • the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income is recognized using the effective interest method for financial assets measured subsequently at amortized cost. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for financial assets that have subsequently become credit-impaired (see below). For financial assets that have subsequently become credit-impaired, interest income is recognized by applying the effective interest rate to the amortized cost of the financial asset from the next reporting period. If the credit risk on the credit-impaired financial instrument improves so that the financial asset is no longer credit-impaired, interest income is recognized by applying the effective interest rate to the gross carrying amount of the financial asset from the beginning of the reporting period following the determination that the asset is no longer credit-impaired. (ii) Equity instruments designated as at FVTOCI At the date of initial application / initial recognition of a financial asset, the Group may irrevocably elect to present subsequent changes in fair value of an equity investment in OCI, and accumulate in other reserves, if that equity investment is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3, “Business Combinations” Dividend from these investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment. Dividends are included in the “investment income” line item in profit or loss. Impairment of financial assets (upon application of IFRS 9 with transitions in accordance with note 2.2) The Group recognizes a loss allowance for ECL on financial assets which are subject to impairment under IFRS 9 (including accounts receivable and financial assets included in prepayments and other current assets) and contract assets. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition. Lifetime ECL represents the ECL that will result from all possible default events over the expected life of the relevant instrument. In contrast, 12m ECL represents the portion of lifetime ECL that is expected to result from default events that are possible within 12 months after the reporting date. Assessments are done based on the Group’s historical credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current conditions at the reporting date as well as the forecast of future conditions. The Group always recognizes lifetime ECL for accounts receivable and contract assets. The ECL on these assets are assessed individually for debtors with significant balances and collectively using a provision matrix with appropriate groupings based on shared credit risk characteristics, nature of services provided as well as type of customers, such as receivable from telephone and Internet subscribers and from enterprise customers. For all other instruments, i.e. financial assets included in prepayments and other current assets, the Group measures the loss allowance equal to 12m ECL, unless when there has been a significant increase in credit risk since initial recognition, the Group recognizes lifetime ECL. The assessment of whether lifetime ECL should be recognized is based on significant increases in the likelihood or risk of a default occurring since initial recognition. (i) Significant increase in credit risk In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as of the reporting date with the risk of a default occurring on the financial instrument as of the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort. In particular, the following information is taken into account when assessing whether credit risk has increased significantly: • failure to make payments of principal or interest on their contractually due dates; • an actual or expected significant deterioration in a financial instrument’s external or internal credit rating (if available); • an actual or expected significant deterioration in the operating results of the debtor; and • existing or forecast changes in the technological, market, economic or legal environment that have a significant adverse effect on the debtor’s ability to meet its obligation to the Group. (ii) Definition of default For internal credit risk management, the Group considers an event of default occurs when information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collaterals held by the Group). (iii) Credit-impaired financial assets A financial asset is credit-impaired when one or more events of default that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following events: • significant financial difficulty of the issuer or the borrower; • a breach of contract, such as a default or past due event; • the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having granted to the borrower a concession(s) that the lender(s) would not otherwise consider; • it is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or • the disappearance of an active market for that financial asset because of financial difficulties. (iv) Write-off The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, for example, when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings. A write-off (v) Measurement and recognition of ECL The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on the historical data adjusted by forward-looking information. Generally, the ECL is the difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the Group expects to receive, discounted at the effective interest rate determined at initial recognition. Where ECL is measured on a collective basis or cater for cases where evidence at the individual instrument level may not be available, the financial instruments are grouped on the following basis: • Nature of financial instruments (i.e. the Group’s accounts receivable and financial assets included in prepayments and other current assets are each assessed as a separate group); • Past-due • Nature, size and industry of debtors; and • External credit ratings where available. The grouping is regularly reviewed by management to ensure the constituents of each group continue to share similar credit risk characteristics. The Group recognizes an impairment gain or loss in profit or loss for all financial instruments measured at amortized cost by adjusting their carrying amount, with the exception of accounts receivable and other receivables where the corresponding adjustment is recognized through a loss allowance account. Classification and subsequent measurement of financial assets (before application of IFRS 9 on January 1, 2018) The Group’s financial assets are classified into the following specified categories: AFS financial assets and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. All regular way purchases or sales of the financial assets are recognized and derecognized on a settlement date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace. (i) AFS financial assets Investments in available-for-sale available-for-sale (ii) Loans and receivables Accounts receivable and other receivables are initially recognized at fair value and thereafter stated at amortized cost using the effective interest method, less allowance for doubtful debts (see below) unless the effect of discounting would be immaterial, in which case they are stated at cost less allowance for doubtful debts. Accounts and other receivables and investments in equity securities carried at cost are reviewed at the end of each reporting period to determine whether there is objective evidence of impairment. Objective evidence of impairment includes observable data that comes to the attention of the Group about one or more of the following loss events: • significant financial difficulty of the debtor or issuer; • a breach of contract, such as a default or delinquency in interest or principal payments; • it becoming probable that the debtor will enter bankruptcy or other financial reorganization; and • significant changes in the technological, market, economic or legal environment that have an adverse effect on the debtor/issuer. The impairment loss for accounts and other receivables is measured as the difference between the asset’s carrying amount and the estimated future cash flows, discounted at the financial asset’s original effective interest rate where the effect of discounting is material, and is recognized as an expense in profit or loss. The impairment loss for investments in equity securities carried at cost is measured as the difference between the asset’s carrying amount and the estimated future cash flows, discounted at the current market rate of return for a similar financial asset where the effect of discounting is material, and is recognized as an expense in profit or loss. Impairment losses for accounts and other receivables are reversed through profit or loss if in a subsequent period the amount of the impairment losses decreases. Impairment losses for equity securities carried at cost are not reversed. Derecognition of financial assets The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. On derecognition of a financial asset measured at amortized cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in equity instrument which the Group has elected on initial recognition / initial application to measure at FVTOCI upon application of IFRS 9, the cumulative gain or loss previously accumulated in other reserves is not reclassified to profit or loss, but is transferred to retained earnings. On derecognition of an AFS financial asset, the cumulative gain or loss previously accumulated in other reserves is reclassified to profit or loss. Financial liabilities and equity Classification as debt or equity Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument. Equity instruments An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs. Financial liabilities All financial liabilities are subsequently measured at amortized cost using the effective interest method. Financial liabilities including short-term and long-term debt, accounts payable, and financial liabilities included in accrued expenses and other payables are subsequently measured at amortized cost, using the effective interest method. Offsetting a financial asset and a financial liability A financial asset and a financial liability are offset and the net amount presented in the statement of financial position when, and only when, the Group currently has a legally enforceable right to set off the recognized amounts; and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously. |
Cash and cash equivalents | (l) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand and time deposits with original maturities of three months or less when purchased. Cash equivalents are stated at cost, which approximates fair value. None of the Group’s cash and cash equivalents is restricted as to withdrawal. |
Revenue from contract with customers (upon application of IFRS 15 in accordance with transitions in note 2.1) | (m) Revenue from contract with customers (upon application of IFRS 15 in accordance with transitions in note 2.1) Under IFRS 15, the Group recognizes revenue when (or as) a performance obligation is satisfied. i.e. when “control” of the goods or services underlying the particular performance obligation is transferred to the customer. A performance obligation represents a good or service (or a bundle of goods or services) that is distinct or a series of distinct goods or services that are substantially the same. Control is transferred over time and revenue is recognized over time by reference to the progress towards complete satisfaction of the relevant performance obligation if one of the following criteria is met: • the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs; • the Group’s performance creates and enhances an asset that the customer controls as the Groups performs; or • the Group’s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. As such, revenues from contracts with customers of telecommunications services, including voice, Internet, information and application and telecommunications network resource and equipment services, resale of mobile services (MVNO) and repair and maintenance of equipment are generally recognized over time during which the services are provided to customers. Otherwise, revenue is recognized at a point in time when the customer obtains control of the distinct good or service. As such, revenues from sales of equipment are recognize at a point in time when the equipment is delivered to the customers and when the control over the equipment have been transferred to the customers. A contract asset represents the Group’s right to consideration in exchange for goods or services that the Group has transferred to a customer but the right is conditioned on the Group’s future performance. A contract asset is transferred to accounts receivable when the right becomes unconditional. A contract asset is assessed for impairment in accordance with IFRS 9. In contrast, a receivable represents the Group’s unconditional right to consideration, i.e. only the passage of time is required before payment of that consideration is due. A contract liability represents the Group’s obligation to transfer goods or services to a customer for which the Group has received consideration (or an amount of consideration is due) from the customer. When the Group receives an advance payment before the performance obligation is satisfied, this will give rise to a contract liability, until the operating revenues recognized on the relevant contract exceed the amount of the advance payment. A contract asset and a contract liability relating to the same contract are accounted for and presented on a net basis. Contracts with multiple performance obligations (including allocation of transaction price) For contracts that contain more than one performance obligations, such as the Group’s direct sales of promotional packages bundling terminal equipment, e.g. mobile handsets, and the telecommunications services, the Group allocates the transaction price to each performance obligation on a relative stand-alone selling price basis. The stand-alone selling price of the distinct good or service underlying each performance obligation is determined at contract inception. It represents the price at which the Group would sell a promised good or service separately to a customer. If a stand-alone selling price is not directly observable, the Group estimates it using appropriate techniques such that the transaction price ultimately allocated to any performance obligation reflects the amount of consideration to which the Group expects to be entitled in exchange for transferring the promised goods or services to the customer. Over time revenue recognition: measurement of progress towards complete satisfaction of a performance obligation The progress towards complete satisfaction of a performance obligation is generally measured based on output method, which is to recognize revenue on the basis of direct measurements of the value of the goods or services transferred to the customer to date relative to the remaining goods or services promised under the contract. Principal versus agent When another party is involved in providing goods or services to a customer, the Group determines whether the nature of its promise is a performance obligation to provide the specified goods or services itself (i.e. the Group is a principal) or to arrange for those goods or services to be provided by the other party (i.e. the Group is an agent). The Group is a principal if it controls the specified good or service before that good or service is transferred to a customer. The Group is an agent if its performance obligation is to arrange for the provision of the specified good or service by another party. In this case, the Group does not control the specified good or service provided by another party before that good or service is transferred to the customer. When the Group acts as an agent, it recognizes revenue in the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the specified goods or services to be provided by the other party. Consideration payable to a customer Consideration payable to a customer includes cash amounts that the Group pays, or expects to pay, to the customer, and also includes credit or other items that can be applied against amounts owed to the Group. The Group accounted for such consideration payable to a customer as a reduction of the transaction price and, therefore, of revenue unless the payment to the customer is in exchange for a distinct good or service that the customer transfers to the Group and the fair value of the good or service received from the customer can be reasonably estimated. Certain subsidies payable to third party agent incurred by the Group in respect of customer contracts, which will be ultimately enjoyed by end customers, and other subsidies incurred by the Group directly payable to its customers, are qualified as consideration payable to a customer and accounted for as a reduction of operating revenues. Incremental costs of obtaining a contract Incremental costs of obtaining a contract are those costs that the Group incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. Certain commissions incurred by the Group paid or payable to third party agents, whose selling activities resulted in customers entering into sale agreements for the Group’s telecommunications service, are qualified as incremental costs. The Group recognizes such costs as an asset, included in other assets, if it expects to recover these costs. The asset so recognized is subsequently amortized to profit or loss on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the assets relate. The Group applies the practical expedient of expensing all incremental costs to obtain a contract if these costs would otherwise have been fully amortized to profit or loss within one year. Costs to fulfil a contract When the Group incurs costs to fulfil a contract, it first assesses whether these costs qualify for recognition as an asset in terms of other relevant standards, failing which it recognizes an asset for these costs only if they meet all of the following criteria: • the costs relate directly to a contract or to an anticipated contract that the Group can specifically identify; • the costs generate or enhance resources of the Group that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and • the costs are expected to be recovered. The asset so recognized is subsequently amortized to profit or loss on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the assets relate. |
Revenue recognition | (n) Revenue recognition (prior to January 1, 2018) Before the application of IFRS 15, the revenue recognition methods of the Group are as follows: • Revenues from telecommunications services, including voice, Internet, information and application and telecommunications network resource and equipment services, resale of mobile services (MVNO) and repair and maintenance of equipment are recognized over time during which the services are provided to customers. Revenue from information and application services in which no third party service providers are involved, such as caller display and Internet data center services, are presented on a gross basis. Revenues from all other information and application services are presented on either gross or net basis based on the assessment of each individual arrangement with third parties. The following factors indicate that the Group is acting as principal in the arrangements with third parties: - The Group is primarily responsible for providing the applications or services desired by customers, and takes responsibility for fulfillment of ordered applications or services, including the acceptability of the applications or services ordered or purchased by customers; - The Group takes title of the inventory of the applications before they are ordered by customers; - The Group has risks and rewards of ownership, such as risks of loss for collection from customers after applications or services are provided to customers; - The Group has latitude in establishing selling prices with customers; - The Group can modify the applications or perform part of the services; - The Group has discretion in selecting suppliers used to fulfill an order; and - The Group determines the nature, type, characteristics, or specifications of the applications or services. If majority of the indicators of risks and responsibilities exist in the arrangements with third parties, the Group is acting as a principal and have exposure to the significant risks and rewards associated with the rendering of services or the sale of applications, and revenues for these services are recognized on a gross basis. If majority of the indicators of risks and responsibilities do not exist in the arrangements with third parties, the Group is acting as an agent, and revenues for these services are recognized on a net basis. • Sale of equipment is recognized on delivery of the equipment to customers and when the significant risks and rewards of ownership and title have been transferred to the customers. The Group offers promotional packages, which involve the bundled sales of terminal equipment, i.e. mobile handsets, and telecommunications services, to customers. The total contract consideration of a promotional package is allocated to revenues generated from the provision of telecommunications services and the sales of terminal equipment using the residual method. Under the residual method, the total contract consideration of the arrangement is allocated as follows: the undelivered component, which is the provision of telecommunications services, is measured at fair value, and the remainder of the contract consideration is allocated to the delivered component, which is the sales of terminal equipment. The Group recognizes revenues generated from the delivery and sales of the terminal equipment when the title of the terminal equipment is passed to the customers whereas revenues generated from the provision of telecommunications services are recognized based upon the actual usage of such services. |
Leasing | (o) Leasing Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. The Group as lessor Lease income from operating leases is recognized over the term of the lease. The Group as lessee Assets acquired under finance leases are initially recorded at amounts equivalent to the lower of the fair value of the leased assets at the inception of the lease or the present value of the minimum lease payments (computed using the rate of interest implicit in the lease). The net present value of the future minimum lease payments is recorded correspondingly as a finance lease obligation. Where the Group has the right to use the assets under operating leases, payments made under the leases are charged to profit or loss in equal installments over the accounting periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased asset. Lease incentives received are recognized in profit or loss as an integral part of the aggregate net lease payments made. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred |
Net finance costs | (p) Net finance costs Net finance costs comprise interest income on bank deposits, interest costs on borrowings, and foreign exchange gains and losses. Interest income from bank deposits is recognized as it accrues using the effective interest method. Interest costs incurred in connection with borrowings are calculated using the effective interest method and are expensed as incurred, except to the extent that they are capitalized as being directly attributable to the construction of an asset which necessarily takes a substantial period of time to get ready for its intended use. |
Research and development expense | (q) Research and development expense Research and development expenditure is expensed as incurred. For the years ended December 31, 2016, 2017 and 2018, research and development expense was RMB825, RMB1,088 and RMB 1,341, respectively. |
Employee benefits | (r) Employee benefits The Group’s contributions to defined contribution retirement plans administered by the PRC government and defined contribution retirement plans administered by independent external parties are recognized in profit or loss as incurred. Further information is set out in Note 38. Compensation expense in respect of the share appreciation rights granted is accrued as a charge to the profit or loss over the applicable vesting period based on the fair value of the share appreciation rights. The liability of the accrued compensation expense is re-measured |
Government grants | (s) Government grants The Group’s government grants are mainly related to the government loans with below-market rate of interest. Government grants shall only be recognized until there is reasonable assurance that: (i) the Group will comply with all the conditions attaching to them; and (ii) the grants will be received. Government grants that compensate expenses incurred are recognized in the consolidated statement of comprehensive income in the same periods in which the expenses are incurred. Government grants relating to assets are recognized in deferred revenue and are credited to the consolidated statement of comprehensive income on a straight-line basis over the expected lives of the related assets. |
Provisions and contingent liabilities | (t) Provisions and contingent liabilities A provision is recognized in the consolidated statement of financial position when the Group has a legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the time value of money is material, provisions are stated at the present value of the expenditure expected to settle the obligation. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence |
Value-added tax | (u) Value-added tax Under current PRC tax rules and regulations, output VAT rate for basic telecommunications services (including voice communication, lease or sale of network resources) is 10% , or 11% before May 1, 2018, while the output VAT rate for value-added telecommunications services (including Internet access services, short and multimedia messaging services, transmission and application service of electronic data and information) is 6%, and the output VAT for sales of telecommunications terminals and equipment is 16%, or 17% before May 1, 2018. Input VAT rate depends on the type of services received and the assets purchased as well as the VAT rate applicable to a specific industry, and ranges from 3% to 16%, or 3% to 17% before May 1, 2018. Output VAT is excluded from operating revenues while input VAT, which is incurred as a result of the Company’s receipt of services and purchases of telecommunications equipment and materials, is excluded from operating expenses or the original cost of equipment purchased and can be netted against the output VAT, arriving at the net amount of VAT recoverable or payable. As the VAT obligations are borne by branches and subsidiaries of the Company, input and output VAT are set off at branches and subsidiaries levels, and the net amount of VAT recoverable or payable of branches and subsidiaries are not offset at the consolidation level. Such net amount of VAT recoverable or payable is recorded in the line item of prepayments and other current assets and accrued expenses and other payables, respectively on the face of consolidated statements of financial position. |
Income tax | (v) Income tax Income tax for the year comprises current tax and movement in deferred tax assets and liabilities. Income tax is recognized in profit or loss except to the extent that it relates to items recognized in other comprehensive income, or directly in equity, in which case the relevant amounts of tax are recognized in other comprehensive income or directly in equity respectively. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the reporting period, and any adjustment to tax payable in respect of previous years. Deferred tax is provided using the balance sheet liability method, providing for all temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. The amount of deferred tax is calculated on the basis of the enacted or substantively enacted tax rates that are expected to apply in the period when the asset is realized or the liability is settled. The effect on deferred tax of any changes in tax rates is charged or credited to profit or loss, except for the effect of a change in tax rate on the carrying amount of deferred tax assets and liabilities which were previously recognized in other comprehensive income, in such case the effect of a change in tax rate is also recognized in other comprehensive income. A deferred tax asset is recognized only to the extent that it is probable that future taxable income will be available against which the asset can be utilized. Deferred tax assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. |
Dividends | (w) Dividends Dividends are recognized as a liability in the period in which they are declared. |
Related parties | (x) Related parties (a) A person, or a close member of that person’s family, is related to the Group if that person: (i) has control or joint control over the Group; (ii) has significant influence over the Group; or (iii) is a member of the key management personnel of the Group or the Group’s parent. (b) An entity is related to the Group if any of the following conditions applies: (i) The entity and the Group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others); (ii) The entity is an associate or joint venture of the Group (or an associate or joint venture of a member of a group of which the Group is a member); or the Group is an associate or joint venture of the entity (or an associate or joint venture of a member of a group of which the entity is a member); (iii) The entity and the Group are joint ventures of the same third party; (iv) The entity is a joint venture of a third entity and the Group is an associate of the third entity; or the Group is a joint venture of a third entity and the entity is an associate of the third entity; (v) The entity is controlled or jointly controlled by a person identified in (a); (vi) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity. |
Segmental reporting | (y) Segmental reporting An operating segment is a component of an entity that engages in business activities from which revenues are earned and expenses are incurred, and is identified on the basis of the internal financial reports that are regularly reviewed by the chief operating decision maker in order to allocate resource and assess performance of the segment. For the periods presented, management has determined that the Group has one operating segment as the Group is only engaged in the integrated telecommunications business. The Group’s assets located outside mainland China and operating revenues derived from activities outside mainland China are less than 10% of the Group’s assets and operating revenues, respectively. No geographical area information has been presented as such amount is immaterial. No single external customer accounts for 10% or more of the Group’s operating revenues. |
Principal Activities, Organiz_2
Principal Activities, Organization and Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Analysis of Assets and Liabilities of Disposed Subsidiary | Analysis of assets and liabilities of the disposed subsidiary: October 31, 2017 RMB Current Assets Cash and cash equivalents 65 Accounts receivable, net 48 Prepayments and other current assets 67 Non-current Property, plant and equipment, net 16 Intangible assets 3 Current liabilities Accounts payable 29 Accrued expenses and other payables 27 Net assets disposal of 143 |
Summary of Gain on Disposal of Subsidiary | Gain on disposal of a subsidiary: 2017 RMB Consideration for the disposal 251 Net assets disposed of (143 ) Gain on disposal 108 |
Summary of Net Cash Inflow from Disposal of Subsidiary | Net cash inflow from disposal of a subsidiary: 2017 RMB Consideration received in cash and cash equivalents 249 Less: Cash and cash equivalents disposed of (65 ) Net cash inflow from disposal of a subsidiary 184 |
Summary of Consolidated Financial Statements of Group to Reflect Acquisition of Eighth Acquired Group | The consolidated results of operations for the year ended December 31, 2016 and the consolidated statement of financial position as of December 31, 2016 as previously reported by the Group and the combined amounts presented in the consolidated financial statements of the Group to reflect the acquisition of the Eighth Acquired Group are set out below: The Group (as previously RMB The Eighth Acquired Group RMB The Group (restated) RMB Consolidated statement of comprehensive income for the year ended December 31, 2016: Operating revenues 352,285 249 352,534 Profit for the year 18,109 14 18,123 Consolidated statement of financial position as of December 31, 2016: Total assets 652,368 190 652,558 Total liabilities 336,073 137 336,210 Total equity 316,295 53 316,348 |
Application of New and Amendm_2
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Impact of IFRS 15 on Reserves | The following table summarizes the impacts of transition to IFRS 15 on reserves as of January 1, 2018. RMB Reserves Consideration payable to customers 2,884 Contract with multiple performance obligations 663 Incremental costs of obtaining contracts 1,210 Tax effect (1,066 ) Increase as of 1 January 2018 3,691 |
Summary of Impact of Implementation of IFRS 15 on Consolidated Statement of Financial Position | The following adjustments were made to the amounts recognized in the consolidated statement of financial position as of January 1, 2018. Line items that were not affected by the changes have not been included. Carrying amounts December 31, 2017 Carrying amounts January 1, 2018* Notes Reclassification Remeasurement RMB RMB RMB RMB Non-current Other assets (a ) 3,349 — 1,210 4,559 Current assets Accounts receivable, net (b ) 22,096 (596 ) — 21,500 Contract assets (b,e ) — 633 23 656 Prepayments and other current assets (b ) 22,128 (37 ) — 22,091 Current liabilities Accrued expenses and other payables (c ) 98,695 (64,912 ) — 33,783 Contract liabilities (c,d,e ) — 65,699 (3,524 ) 62,175 Current portion of deferred revenues (c ) 1,233 (787 ) — 446 Non-current Deferred tax liabilities (a,d,e ) 8,010 — 1,066 9,076 Equity Reserves 244,935 — 3,691 248,626 * The amounts in this column are before the adjustments from the application of IFRS 9. Notes: (a) The Group incurred incremental commission paid/payable to third party agents in connection with obtaining the contracts with customers. These amounts were previously expensed as incurred. At the date of initial application of IFRS 15, incremental costs of obtaining contracts, netted off deferred tax, amounting to RMB940 were recognized with corresponding adjustments to reserves. (b) At the date of initial application of IFRS 15, unbilled revenue of RMB633 arising from information and application service contracts are conditional on the Group’s achieving specified milestones as stipulated in the contracts, and hence such balance was reclassified from accounts receivable and prepayments and other current assets to contract assets. (c) At the date of initial application of IFRS 15, considerations received from telecommunications service contracts included in receipts in advance and deferred revenues amounting to RMB64,912 and RMB787, respectively, were reclassified from accrued expenses and other payables and current portion of deferred revenues to contract liabilities. (d) Certain subsidies payable to third party agents incurred by the Group in respect of customer contracts, which will be ultimately enjoyed by end customers, and other subsidies incurred by the Group directly payable to its customers, were previously expensed as incurred. At the date of initial application of IFRS 15, such subsidies were considered as consideration payable to customers and the related impact, netted off deferred tax, amounting to RMB2,224 were recognized with corresponding adjustments to reserves. (e) The sales of terminal equipment and the provision of telecommunications services represent separate performance obligations from the Group’s direct sales of promotional packages. The total contract consideration of a promotional package is previously allocated to revenues generated from the provision of telecommunications services and the sales of terminal equipment using the residual method. At the date of initial application of IFRS 15, the transaction price was allocated to each performance obligation in the contract on a relative stand-alone selling price basis, and the consideration allocated to sales of terminal equipment was recognized as revenue at contract inception, i.e. when the equipment are delivered, while consideration allocated to provision of telecommunications services would be subsequently recognized as revenue as services are delivered during the contract period, with the impact, netted of deferred tax, amounting to RMB527 recognized with corresponding adjustments to reserves. |
Disclosure of Impact of Implementation of IFRS 15 on Consolidated Statement of Financial Position | Impact on the consolidated statement of financial position Notes As reported as of Adjustments Amounts without RMB RMB RMB Non-current Other assets (a ) 4,840 (1,287 ) 3,553 Current assets Accounts receivable, net (b ) 20,475 461 20,936 Contract assets (b,e ) 478 (478 ) — Current liabilities Accrued expenses and other payables (c,d,e ) 43,497 57,681 101,178 Contract liabilities (c ) 55,783 (55,783 ) — Current portion of deferred revenues (c ) 375 765 1,140 Non-current Deferred tax liabilities 13,138 (869 ) 12,269 Equity Reserves 262,137 (3,098 ) 259,039 |
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation | Impact on the consolidated statement of comprehensive income Notes As reported Adjustments Amounts without application of IFRS RMB RMB RMB Operating revenues (d,e ) 377,124 4,377 381,501 Operating expenses Selling, general and administrative (a,d,e ) 59,422 3,956 63,378 Other operating expenses (e ) 37,697 (369 ) 37,328 Total operating expenses 348,410 3,587 351,997 Operating profit 28,714 790 29,504 Profit before taxation 28,148 790 28,938 Income tax 6,810 197 7,007 Profit for the year 21,338 593 21,931 Total comprehensive income for the year 21,243 593 21,836 |
Disclosure of Impact of Implementation of IFRS 15 on Consolidated Statement of Cash Flows | As reported Adjustments Amounts without RMB RMB RMB Profit before taxation 28,148 790 28,938 Operating profit before changes in working capital 108,080 790 108,870 Increase in accounts receivable (1,848 ) 164 (1,684 ) Decrease in contract assets 170 (170 ) — Decrease in other assets 271 77 348 Increase in accrued expenses and other payables 9,842 (7,253 ) 2,589 Decrease in contract liabilities (6,414 ) 6,414 — Decrease in contract revenues (138 ) (22 ) (160 ) Net cash from operating activities 99,298 — |
Classification and Measurement of Financial Assets and Other Items Subject to ECL Under IFRS 9 and IAS 39 | The table below illustrates the classification and measurement of financial assets and other items subject to ECL under IFRS 9 and IAS 39 at the date of initial application, January 1, 2018. Notes Investments Equity instruments at fair value through other income Accounts receivable Contract Prepayments and other Deferred Deferred Reserves Non- RMB RMB RMB RMB RMB RMB RMB RMB RMB Closing balance as of December 31, 2017 – IAS 39 1,154 — 22,096 — 22,128 5,479 8,010 244,935 830 Effect arising from initial application of IFRS 15 — — (596 ) 656 (37 ) — 1,066 3,691 — Effect arising from initial application of IFRS 9: Reclassification From investments (a ) (1,154 ) 1,154 — — — — — — — Remeasurement Impairment under ECL model (b ) — — (919 ) — (1 ) 203 — (716 ) (1 ) Opening balance as of January 1, 2018 — 1,154 20,581 656 22,090 5,682 9,076 247,910 829 |
Disclosure of Loss Allowances for Financial Assets, Including Account Receivables and Financial Assets Included in Prepayments and Other Current Assets, and Contract Assets | All loss allowances for financial assets measured at amortized cost, including accounts receivable and financial assets included in prepayments and other current assets as of December, 31 2017 reconciled to the opening loss allowance as of January,1 2018 are as follows: Accounts Prepayments and RMB RMB As of December 31, 2017 – IAS 39 3,842 370 Amount remeasured through opening reserves 919 1 As of January 1, 2018 4,761 371 |
Disclosure of Impacts on Opening Consolidated Statement of Financial Position from Application of New Standards | The following table shows the adjustments recognized for each of the line items affected. December 31, IFRS IFRS January 1, RMB RMB RMB RMB (audited) (restated) Non-current Investments 1,154 — (1,154 ) — Equity instruments at fair value through other comprehensive income — — 1,154 1,154 Deferred tax assets 5,479 — 203 5,682 Other assets 3,349 1,210 — 4,559 Others with no adjustments 579,662 — — 579,662 Total non-current 589,644 1,210 203 591,057 Current assets Accounts receivable, net 22,096 (596 ) (919 ) 20,581 Contract assets — 656 — 656 Prepayments and other current assets 22,128 (37 ) (1 ) 22,090 Others with no adjustments 27,326 — — 27,326 Total current assets 71,550 23 (920 ) 70,653 Total assets 661,194 1,233 (717 ) 661,710 Current liabilities Accrued expenses and other payables 98,695 (64,912 ) — 33,783 Contract liabilities — 62,175 — 62,175 Current portion of deferred revenues 1,233 (787 ) — 446 Others with no adjustments 175,480 — — 175,480 Total current liabilities 275,408 (3,524 ) — 271,884 Net current liabilities (203,858 ) 3,547 (920 ) (201,231 ) Total assets less current liabilities 385,786 4,757 (717 ) 389,826 Non-current Deferred tax liabilities 8,010 1,066 — 9,076 Others with no adjustments 51,079 — — 51,079 Total non-current 59,089 1,066 — 60,155 Total liabilities 334,497 (2,458 ) — 332,039 Equity Share capital 80,932 — — 80,932 Reserves 244,935 3,691 (716 ) 247,910 Total equity attributable to equity holders of the Company 325,867 3,691 (716 ) 328,842 Non-controlling 830 — (1 ) 829 Total equity 326,697 3,691 (717 ) 329,671 Total liabilities and equity 661,194 1,233 (717 ) 661,710 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Estimated Useful Life for Depreciation Purposes of Property, Plant and Equipment | Depreciation is provided to write off the cost of each asset over its estimated useful life on a straight-line basis, after taking into account its estimated residual value, as follows: Depreciable lives Buildings and improvements 8 to 30 years Telecommunications network plant and equipment 5 to 10 years Furniture, fixture, motor vehicles and other equipment 5 to 10 years |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Cash and Cash Equivalents | December 31, 2017 2018 RMB RMB Cash at bank and in hand 17,763 14,937 Time deposits with original maturity within three months 1,647 1,729 19,410 16,666 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) - Accounts receivable [member] | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Accounts Receivable, Net | Accounts receivable, net, are analyzed as follows: December 31, Note 2017 2018 RMB RMB Third parties 23,762 23,308 China Telecom Group (i ) 1,502 1,327 China Tower (See definition in Note 13) 5 10 Other telecommunications operators in the PRC 669 510 25,938 25,155 Less: Allowance for credit losses (3,842 ) (4,680 ) 22,096 20,475 Note: (i) China Telecommunications Corporation together with its subsidiaries other than the Group are referred to as “China Telecom Group”. |
Ageing Analysis of Accounts Receivable not Impaired | Aging analysis of accounts receivable that are not impaired as of December 31, 2017 is as follows: December 31, RMB Not past due 19,623 Less than 1 month past due 1,518 1 to 3 months past due 955 Amounts past due 2,473 22,096 |
Changes in Allowance for Doubtful Debts | The following table summarizes the changes in allowance for doubtful debts in 2016 and 2017: Year ended 2016 2017 RMB RMB At beginning of year 2,935 3,402 Impairment losses for doubtful debts 2,203 1,962 Accounts receivable written off (1,736 ) (1,522 ) At end of year 3,402 3,842 |
Telephone and Internet subscribers [member] | |
Statement [LineItems] | |
Summary of Accounts Receivable, Net | Aging analysis of accounts receivable from telephone and Internet subscribers based on the billing dates is as follows: December 31, 2017 2018 RMB RMB Current, within 1 month 9,323 8,376 1 to 3 months 2,607 2,117 4 to 12 months 1,780 1,932 More than 12 months 878 943 14,588 13,368 Less: Allowance for credit losses (2,603 ) (2,898 ) 11,985 10,470 |
Other telecommunications operators and enterprise customers [member] | |
Statement [LineItems] | |
Summary of Accounts Receivable, Net | Aging analysis of accounts receivable from other telecommunications operators and enterprise customers based on dates of rendering of services is as follows: 31 December 2017 2018 RMB RMB Current, within 1 month 4,421 3,318 1 to 3 months 1,973 2,300 4 to 12 months 2,644 3,994 More than 12 months 2,312 2,175 11,350 11,787 Less: Allowance for credit losses (1,239 ) (1,782 ) 10,111 10,005 |
Contract Assets (Tables)
Contract Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Contract Assets | January 1, December 31, RMB RMB Third parties 480 454 China Telecom Group 176 24 656 478 * The amounts in this column are after the adjustments from the application of IFRS 9 and 15. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Inventories | December 31, 2017 2018 RMB RMB Materials and supplies 1,071 1,012 Goods for resale 3,052 3,820 4,123 4,832 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Prepayments and Other Current Assets | December 31, Note 2017 2018 RMB RMB Amounts due from China Telecom Group 774 1,035 Amounts due from China Tower 2,152 293 Amounts due from other telecommunications operators in the PRC 369 333 Prepayments in connection with construction work and equipment purchases 2,542 2,752 Prepaid expenses and deposits 3,486 3,628 Value-added tax recoverable 7,186 8,618 Other receivables (i ) 5,619 6,960 22,128 23,619 Note: (i) Other receivables as of December 31, 2018 include the unpaid remaining consideration of the contribution from non-controlling |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment, Net | Buildings and ments Telecom- network plant and Furniture, other Total RMB RMB RMB RMB Cost/Deemed cost: Balance at January 1, 2017 99,509 823,836 30,114 953,459 Additions 583 532 410 1,525 Transferred from construction in progress 1,967 87,129 1,707 90,803 Retirement and disposal (709 ) (68,719 ) (1,936 ) (71,364 ) Disposal of a subsidiary — (33 ) — (33 ) Reclassification (18 ) (272 ) 290 — Balance at December 31, 2017 101,332 842,473 30,585 974,390 Additions 712 512 306 1,530 Transferred from construction in progress 1,454 71,704 1,721 74,879 Retirement and disposal (860 ) (59,822 ) (1,636 ) (62,318 ) Reclassification (97 ) (485 ) 582 — Balance at December 31, 2018 102,541 854,382 31,558 988,481 Accumulated depreciation and impairment: Balance at January 1, 2017 (51,018 ) (490,917 ) (21,853 ) (563,788 ) Depreciation and impairment charge for the year (4,326 ) (63,903 ) (2,145 ) (70,374 ) Written back on retirement and disposal 620 63,553 1,839 66,012 Disposal of a subsidiary — 17 — 17 Reclassification 18 184 (202 ) — Balance at December 31, 2017 (54,706 ) (491,066 ) (22,361 ) (568,133 ) Depreciation charge for the year (4,370 ) (63,878 ) (2,135 ) (70,383 ) Written back on retirement and disposal 750 55,519 1,561 57,830 Reclassification 26 439 (465 ) — Balance at December 31, 2018 (58,300 ) (498,986 ) (23,400 ) (580,686 ) Net book value at December 31, 2018 44,241 355,396 8,158 407,795 Net book value at December 31, 2017 46,626 351,407 8,224 406,257 |
Construction in Progress (Table
Construction in Progress (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Construction in Progress | RMB Balance at January 1, 2017 80,386 Additions 88,359 Transferred to property, plant and equipment (90,803 ) Transferred to intangible assets (4,836 ) Balance at December 31, 2017 73,106 Additions 74,457 Transferred to property, plant and equipment (74,879 ) Transferred to intangible assets (6,040 ) Balance at December 31, 2018 66,644 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Goodwill | December 31, 2017 2018 RMB RMB Cost: Goodwill arising from acquisition of CDMA business 29,920 29,922 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Intangible Assets | Software RMB Cost: Balance at January 1, 2017 29,818 Additions 175 Transferred from construction in progress 4,836 Disposals (268 ) Disposal of a subsidiary (11 ) Balance at December 31, 2017 34,550 Additions 269 Transferred from construction in progress 6,040 Disposals (3,545 ) Balance at December 31, 2018 37,314 Accumulated amortization and impairment: Balance at January 1, 2017 (18,574 ) Amortization charge for the year (3,843 ) Written back on disposals 250 Disposal of a subsidiary 8 Balance at December 31, 2017 (22,159 ) Amortization charge for the year (4,366 ) Written back on disposals 3,372 Balance at December 31, 2018 (23,153 ) Net book value at December 31, 2018 14,161 Net book value at December 31, 2017 12,391 |
Interests in Associates (Tables
Interests in Associates (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Summary of Interests in Associates | December 31, 2017 2018 RMB RMB Unlisted equity investments, at cost 36,648 36,933 Share of post-acquisition changes in net assets (922 ) 1,118 35,726 38,051 Fair value of listed investments N/A 46,797 |
Details of Principal Associates Accounted for under Equity Method | The Group’s interests in associates are accounted for under the equity method. Details of the Group’s principal associates are as follows: Name of company Attributable Principal activities China Tower Corporation Limited (Note (i)) 20.5 (2017: 27.9 % %) Construction, maintenance and operation of telecommunications towers as well as ancillary facilities Shanghai Information Investment Incorporation (Note (ii)) 24.0 % Provision of information technology consultancy services Notes: (i) China Tower Corporation Limited (“China Tower”) is established and operated in the PRC, and listed on the Main Board of The Stock Exchange of Hong Kong Limited on August 8, 2018. Income from investments in associates for the year ended December 31, 2018 includes: (a) a one-off (ii) Shanghai Information Investment Incorporation (“Shanghai Info-investment”) is established and operated in the PRC and is not traded on any stock exchange. |
Summarized Financial Information of Associates and Reconciled to Carrying Amounts of Interests in Associates in Consolidated Financial Statements | Aggregate financial information of the Group’s associates that are not individually material is disclosed below: 2017 2018 RMB RMB The Group’s share of profit of these associates 36 14 The Group’s share of other comprehensive income of these associates 2 — The Group’s share of total comprehensive income of these associates 38 14 December 31, 2017 2018 RMB RMB Aggregate carrying amount of interests in these associates in the consolidated financial statements of the Group 611 863 |
Shanghai Information Investment Incorporation [member] | |
Statement [LineItems] | |
Summarized Financial Information of Associates and Reconciled to Carrying Amounts of Interests in Associates in Consolidated Financial Statements | China Tower Corporation Limited December 31, 2017 2018 RMB RMB Current assets 30,517 31,799 Non-current 292,126 283,565 Current liabilities 150,438 114,759 Non-current 44,710 20,103 2017 2018 RMB RMB Operating revenues 68,665 71,819 Profit for the year 1,943 2,650 Other comprehensive income for the year — — Total comprehensive income for the year 1,943 2,650 Dividend received from the associate — — Reconcile to the Group’s interests in the associate: December 31, 2017 2018 RMB RMB Net assets of the associate 127,495 180,502 Non-controlling — — The Group’s effective interest in the associate 27.9 % 20.5 % The Group’s share of net assets of the associate 35,571 37,003 Adjustment for the remaining balance of the deferred gain from the Tower Assets Disposal (1,580 ) (1,013 ) Carrying amount of the interest in the associate in the consolidated financial statements of the Group 33,991 35,990 Shanghai Information Investment Incorporation December 31, 2017 2018 RMB RMB Current assets 7,146 7,181 Non-current 8,049 8,592 Current liabilities 5,835 6,615 Non-current 2,673 1,985 2017 2018 RMB RMB Operating revenues 4,313 4,337 Profit for the year 563 586 Other comprehensive income for the year 22 (29 ) Total comprehensive income for the year 585 557 Dividend received from the associate 9 9 Reconcile to the Group’s interests in the associate: December 31, 2017 2018 RMB RMB Net assets of the associate 6,687 7,173 Non-controlling (2,004 ) (2,180 ) The Group’s effective interest in the associate 24.0 % 24.0 % The Group’s share of net assets of the associate 1,124 1,198 Carrying amount of the interest in the associate in the consolidated financial statements of the Group 1,124 1,198 |
China Tower [member] | |
Statement [LineItems] | |
Summarized Financial Information of Associates and Reconciled to Carrying Amounts of Interests in Associates in Consolidated Financial Statements | Summarized financial information of the Group’s principal associates and reconciled to the carrying amounts of interests in associates in the Group’s consolidated financial statements are disclosed below: China Tower Corporation Limited December 31, 2017 2018 RMB RMB Current assets 30,517 31,799 Non-current 292,126 283,565 Current liabilities 150,438 114,759 Non-current 44,710 20,103 2017 2018 RMB RMB Operating revenues 68,665 71,819 Profit for the year 1,943 2,650 Other comprehensive income for the year — — Total comprehensive income for the year 1,943 2,650 Dividend received from the associate — — Reconcile to the Group’s interests in the associate: December 31, 2017 2018 RMB RMB Net assets of the associate 127,495 180,502 Non-controlling — — The Group’s effective interest in the associate 27.9 % 20.5 % The Group’s share of net assets of the associate 35,571 37,003 Adjustment for the remaining balance of the deferred gain from the Tower Assets Disposal (1,580 ) (1,013 ) Carrying amount of the interest in the associate in the consolidated financial statements of the Group 33,991 35,990 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Investments | December 31, RMB Available-for-sale 969 Other unlisted equity investments 185 1,154 |
Equity Instruments at Fair Va_2
Equity Instruments at Fair Value Through Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Equity Instruments at Fair Value Through Other Comprehensive Income | Notes December 31, RMB Equity securities listed in the mainland China (i) 638 Unlisted equity securities (ii) 214 852 Notes: (i) The above listed equity instruments represent ordinary shares of entities listed in the mainland China. These investments are not held for trading, instead, they are held for long-term strategic purposes. The directors of the Company have elected to designate these investments in equity instruments as of FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes and realizing their performance potential in the long run. (ii) The above unlisted equity securities represent the Group’s equity interests in various private entities established in the PRC. The directors of the Company have elected to designate these investments in equity instruments as of FVTOCI as they believe that the Group will hold these investments for long-term strategic purposes. |
Deferred Tax Assets and Liabi_2
Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Components of Deferred Tax Assets and Deferred Tax Liabilities | The components of deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements are as follows: Assets Liabilities Net Balance 2018 2017 2018 2017 2018 2017 RMB RMB RMB RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,925 1,626 — — 1,925 1,626 Property, plant and equipment, and others 4,580 3,782 (13,022 ) (7,789 ) (8,442 ) (4,007 ) Deferred revenues and installation costs 39 71 (29 ) (52 ) 10 19 Available-for-sale — — — (169 ) — (169 ) Equity instruments at fair value through other comprehensive income — — (87 ) — (87 ) — Deferred tax assets/(liabilities) 6,544 5,479 (13,138 ) (8,010 ) (6,594 ) (2,531 ) |
Movements in Deferred Tax Assets and Deferred Tax Liabilities | Balance at January 1, 2016 Recognized in consolidated Balance at December 31, 2016 RMB RMB RMB Provisions and impairment losses, primarily for doubtful debts 1,291 240 1,531 Property, plant and equipment, and others 1,569 (2,575 ) (1,006 ) Deferred revenues and installation costs 60 (25 ) 35 Available-for-sale (326 ) 57 (269 ) Net deferred tax assets 2,594 (2,303 ) 291 Balance at January 1, 2017 Recognized in consolidated Balance at December 31, 2017 RMB RMB RMB Provisions and impairment losses, primarily for doubtful debts 1,531 95 1,626 Property, plant and equipment, and others (1,006 ) (3,001 ) (4,007 ) Deferred revenues and installation costs 35 (16 ) 19 Available-for-sale (269 ) 100 (169 ) Net deferred tax assets/(liabilities) 291 (2,822 ) (2,531 ) Balance at December 31, 2017 Changes Recognized in Balance at December 31, 2018 RMB RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,626 203 96 1,925 Property, plant and equipment, and others (4,007 ) (1,066 ) (3,369 ) (8,442 ) Deferred revenues and installation costs 19 — (9 ) 10 Available-for-sale (169 ) 169 — — Equity instruments at fair value through other comprehensive income — (169 ) 82 (87 ) Net deferred tax liabilities (2,531 ) (863 ) (3,200 ) (6,594 ) |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Other Assets | December 31, Note 2017 2018 RMB RMB Contract costs (i ) — 1,287 Installation fees 228 124 Other long-term prepaid expenses 3,121 3,429 3,349 4,840 Note: (i) Contract costs capitalized as of December 31, 2018 mainly relate to the incremental sales commissions paid to third party agents whose selling activities resulted in subscribers entering into telecommunications service agreements with the Group. The amount of capitalized costs recognized in profit or loss during the year was RMB1,744. There was no impairment in relation to the opening balance of capitalized costs or the costs capitalized during the year. |
Short-term and Long-term Debt (
Short-term and Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Aggregate Maturities of Long-term Debt | The aggregate maturities of the Group’s long-term debt subsequent to December 31, 2018 are as follows: RMB 2019 1,139 2020 18,091 2021 1,029 2022 20,992 2023 923 Thereafter 3,817 45,991 |
Short-term debt [member] | |
Statement [LineItems] | |
Summary of Debt | Short-term debt comprises: December 31, 2017 2018 RMB RMB Loans from banks – unsecured 16,565 12,881 Super short-term commercial papers – unsecured 18,745 27,992 Other loans – unsecured 150 80 Loans from China Telecom Group – unsecured 19,098 8,584 Total short-term debt 54,558 49,537 |
Long-term debt and payable [member] | |
Statement [LineItems] | |
Summary of Debt | Long-term debt comprises: December 31, Interest rates and final maturity 2017 2018 RMB RMB Bank loans – unsecured Renminbi denominated (Note (i)) Interest rates ranging from 1.08% to 7.04% per annum with maturities through 2036 9,148 8,455 US Dollars denominated Interest rates ranging from 1.00% to 8.30% per annum with maturities through 2048 370 336 Euro denominated Interest rate of 2.30% per annum with maturities through 2032 223 199 9,741 8,990 Other loans – unsecured Renminbi denominated 1 1 Loans from China Telecom Group – unsecured Renminbi denominated (Note (ii)) 40,000 37,000 Total long-term debt 49,742 45,991 Less: Current portion (1,146 ) (1,139 ) Non-current 48,596 44,852 Notes: (i) The Group obtained long-term RMB denominated government loans with below-market interest rate ranging from 1.08% to 1.20% per annum through banks (the “Low-interest Low-interest (ii) The Group obtained long-term RMB denominated loans with the interest rate of 3.8% per annum from China Telecommunications Corporation on December 25, 2017, which are repayable within 3 to 5 years. The Group partially repaid these loans amounting to RMB3,000 in 2018. |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Accounts Payable | December 31, 2017 2018 RMB RMB Third parties 93,324 83,418 China Telecom Group 22,682 20,983 China Tower 2,611 2,850 Other telecommunications operators in the PRC 704 636 119,321 107,887 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Accrued Expenses and Other Payables | December 31, Notes 2017 2018 RMB RMB Amounts due to China Telecom Group (i ) 1,838 2,171 Amounts due to China Tower 1,374 1,246 Amounts due to other telecommunications operators in the PRC 59 46 Accrued expenses (ii ) 24,864 33,811 Value-added tax payable 645 484 Customer deposits and receipts in advance 69,915 5,739 98,695 43,497 Notes: (i) Amounts due to China Telecom Group as of December 31, 2017 include the consideration of the Eighth Acquisition amounting to RMB87, which has been fully settled by June 30, 2018. (ii) Accrued expenses as of December 31, 2017 include the unpaid portion of consideration of the acquisition of non-controlling |
Contract Liabilities (Tables)
Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Contract Liabilities | January 1, December 31, RMB RMB Third parties 62,001 55,638 China Telecom Group 174 145 62,175 55,783 * The amounts in this column are after the adjustments from the application of IFRS 9 and 15. |
Deferred Revenues (Tables)
Deferred Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Deferred Revenues | 2017 2018 RMB RMB Balance at end of last year 3,558 3,061 Change in accounting policy (Note 2) — (787 ) Balance at beginning of the year, as restated 3,558 2,274 Additions for the year: Calling cards 390 — Reductions for the year: Amortization of installation fees (208 ) (138 ) Usage of calling cards (384 ) — Amortization of government grants (295 ) (307 ) Balance at end of year 3,061 1,829 Representing: Current portion 1,233 375 Non-current 1,828 1,454 3,061 1,829 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Share Capital | December 31, 2017 2018 RMB RMB Registered, issued and fully paid 67,054,958,321 ordinary domestic shares of RMB1.00 each 67,055 67,055 13,877,410,000 overseas listed H shares of RMB1.00 each 13,877 13,877 80,932 80,932 |
Reserves (Tables)
Reserves (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Reserves | Capital Share premium Surplus reserves Other reserves Exchange Retained earnings Total RMB RMB RMB RMB RMB RMB RMB (Note (i)) (Note (iii)) (Note (ii)) Balance as of January 1, 2016 17,160 10,746 70,973 876 (812 ) 123,948 222,891 Total comprehensive income for the year — — — (165 ) 190 18,018 18,043 Dividends (Note 31) — — — — — (6,489 ) (6,489 ) Appropriations (Note (iii)) — — 1,638 — — (1,638 ) — Balance as of December 31, 2016 17,160 10,746 72,611 711 (622 ) 133,839 234,445 Total comprehensive income for the year — — — (293 ) (259 ) 18,617 18,065 Acquisition of the Eighth Acquired Group (Note 1) (80 ) — — — — (7 ) (87 ) Acquisition of non-controlling 46 — — — — — 46 Dividends (Note 31) — — — — — (7.530 ) (7,530 ) Appropriations (Note (iii)) — — 1,686 — — (1,686 ) — Others — — — (4 ) — — (4 ) Balance as of December 31, 2017 17,126 10,746 74,297 414 (881 ) 143,233 244,935 Changes in accounting policies (Note 2) — — 302 — — 2,673 2,975 Balance as of 1 January 2018, as restated 17,126 10,746 74,599 414 (881 ) 145,906 247,910 Total comprehensive income for the year — — — (249 ) 154 21,210 21,115 Disposal of investments in equity instruments at fair value through other comprehensive income — — — (5 ) — 5 — Contribution from non-controlling 680 — — — — — 680 Dividends (Note 31) — — — — — (7,568 ) (7,568 ) Appropriations (Note (iii)) — — 1,875 — — (1,875 ) — Balance as of December 31, 2018 17,806 10,746 76,474 160 (727 ) 157,678 262,137 Notes: (i) Capital reserve of the Group mainly represents the sum of (a) the difference between the carrying amount of the Company’s net assets and the par value of the Company’s shares issued upon its formation; (b) the difference between the consideration paid by the Group for the entities acquired, other than the Fifth Acquired Group, from China Telecommunications Corporation, which were accounted for as equity transactions as disclosed in Note 1, and the historical carrying amount of the net assets of these acquired entities; and (c) the difference between the consideration paid by the Group for the acquisition of non-controlling non-controlling The difference between the consideration paid by the Group and the historical carrying amount of the net assets of the Fifth Acquisition was recorded as a deduction of retained earnings. Capital reserve of the Company represents the difference between the carrying amount of the Company’s net assets and the par value of the Company’s shares issued upon its formation. (ii) Other reserves of the Group and the Company represent primarily the change in the fair value of investment in equity instruments and the deferred tax liabilities recognized due to the change in fair value of investment in equity instruments. (iii) The surplus reserves consist of statutory surplus reserve and discretionary surplus reserve. |
Operating Revenues (Tables)
Operating Revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Disclosure of Disaggregation of Revenues | For the year ended December 31, 2018 Disaggregation of revenues Notes 2018 RMB Type of goods or services Revenue from contracts with customers Voice (i ) 50,811 Internet (ii ) 190,871 Information and application services (iii ) 83,478 Telecommunications network resource and equipment services (iv ) 20,211 Others (v ) 27,450 Subtotal 372,821 Revenue from other sources (vi ) 4,303 Total operating revenues 377,124 Timing of revenue recognition A point in time 24,496 Over time 352,628 Total operating revenues 377,124 Notes: (i) Represent the aggregate amount of voice usage fees, installation fees and interconnections fees charged to customers for the provision of telephony services. (ii) Represent amounts charge to customers for the provision of Internet access services. (iii) Represent primarily the aggregate amount of fees charged to customers for the provision of Internet data center service, system integration services, e-Surfing (iv) Represent amounts charged to other domestic telecommunications operators and enterprise customers for the provision of telecommunications network resource and equipment services. (v) Represent primarily revenue from sales, and repair and maintenance of telecommunications equipment as well as the resale of mobile services (MVNO). (vi) Represent primarily revenue from property rental and other revenues. |
Components of Operating Revenues | For the year ended December 31, 2016 and 2017 The components of the Group’s operating revenues are as follows: Year ended 2016 2017 RMB RMB Voice 70,185 61,678 Internet 150,449 172,554 Information and application services 66,881 73,044 Telecommunications network resource and equipment services 17,781 19,125 Others 47,238 39,828 352,534 366,229 |
Network Operations and Suppor_2
Network Operations and Support Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Network Operations and Support Expenses | Year ended December 31, Note 2016 2017 2018 RMB RMB RMB Operating and maintenance 48,390 55,360 64,056 Utility 13,148 12,522 13,477 Property rental and management fee (i ) 22,327 26,926 29,434 Others 10,291 9,161 9,095 94,156 103,969 116,062 Note: (i) Property rental and management fee includes the fee in relation to the lease of telecommunications towers and related assets (“Tower Assets”) (hereinafter referred to as the “tower assets lease and related fee”). |
Personnel Expenses (Tables)
Personnel Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Personnel Expenses by Functions | Personnel expenses are attributable to the following functions: Year ended December 31, 2016 2017 2018 RMB RMB RMB Network operations and support 36,286 38,574 40,388 Selling, general and administrative 18,218 17,469 19,348 54,504 56,043 59,736 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Other Operating Expenses | Year ended December 31, Notes 2016 2017 2018 RMB RMB RMB Interconnection charges (i ) 11,822 12,223 12,878 Cost of goods sold (ii ) 38,705 31,712 23,185 Donations 19 23 20 Others (iii ) 1,740 1,654 1,614 52,286 45,612 37,697 Notes: (i) Interconnection charges represent amounts incurred for the use of other domestic and foreign telecommunications operators’ networks for delivery of voice and data traffic that originate from the Group’s telecommunications networks. (ii) Cost of goods sold primarily represents cost of telecommunications equipment sold. (iii) Others mainly include tax and surcharges other than value-added tax and income tax. |
Net Finance Costs (Tables)
Net Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Net Finance Costs | Year ended December 31, 2016 2017 2018 RMB RMB RMB Interest expense incurred 4,200 3,913 3,278 Less: Interest expense capitalized* (498 ) (327 ) (185 ) Net interest expense 3,702 3,586 3,093 Interest income (354 ) (429 ) (306 ) Foreign exchange losses 209 664 423 Foreign exchange gains (322 ) (530 ) (502 ) 3,235 3,291 2,708 * Interest expense was capitalized in construction in progress at the following rates per annum 4.1%-5.0% 3.9%-4.9% 3.8%-4.4% |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Income Tax in Profit or Loss | Income tax in the profit or loss comprises: Year ended December 31, 2016 2017 2018 RMB RMB RMB Provision for PRC income tax 3,478 3,147 3,408 Provision for income tax of other tax jurisdictions 155 123 120 Deferred taxation 2,360 2,922 3,282 5,993 6,192 6,810 |
Reconciliation of Expected Tax Expense with Actual Tax Expense | A reconciliation of the expected tax expense with the actual tax expense is as follows: Year ended December 31, Notes 2016 2017 2018 RMB RMB RMB Earnings before income tax 24,116 24,953 28,148 Expected income tax expense at statutory tax rate of 25% (i ) 6,029 6,238 7,037 Differential tax rate on PRC subsidiaries’ and branches’ income (i ) (275 ) (108 ) (291 ) Differential tax rate on other subsidiaries’ income (ii ) (53 ) (82 ) (58 ) Non-deductible (iii ) 485 380 537 Non-taxable (iv ) (105 ) (112 ) (319 ) Others (v ) (88 ) (124 ) (96 ) Actual income tax expense 5,993 6,192 6,810 Notes: (i) Except for certain subsidiaries and branches which are mainly taxed at a preferential rate of 15%, the provision for mainland China income tax is based on a statutory rate of 25% of the assessable income of the Company, its mainland China subsidiaries and branches as determined in accordance with the relevant income tax rules and regulations of the PRC. (ii) Income tax provisions of the Company’s subsidiaries in Hong Kong and Macau Special Administrative Regions of the PRC, and in other countries are based on the subsidiaries’ assessable income and income tax rates applicable in the respective tax jurisdictions which range from 8% to 35%. (iii) Amounts represent miscellaneous expenses in excess of statutory deductible limits for tax purposes. (iv) Amounts represent miscellaneous income which are not subject to income tax. (v) Amounts primarily represent settlement of tax filing differences of prior year annual tax return and other tax benefits. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Future Minimum Lease Payments under Non-cancellable Operating Leases | As of December 31, 2018, the Group’s future minimum lease payments under non-cancellable RMB 2019 15,658 2020 14,466 2021 13,440 2022 12,682 2023 3,461 Thereafter 6,098 Total minimum lease payments 65,805 |
Capital Commitments | As of December 31, 2018, the Group had capital commitments as follows: RMB Contracted for but not provided - property 1,103 - telecommunications network plant and equipment 14,200 15,303 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Carrying Amounts and Fair Value of Long-term Debt | As of December 31, 2017 and 2018, the carrying amounts and fair value of the Group’s long-term debt was as follows: December 31, 2017 December 31, 2018 Carrying amount Fair value Carrying amount Fair value RMB RMB RMB RMB Long-term debt 49,742 48,256 45,991 44,968 |
Summary of Movements in Loss Allowance Account in Respect of Accounts Receivables | Movement in the loss allowance account in respect of accounts receivable during the year is as follows: RMB At December 31, 2017 under IAS 39 3,842 Impact on initial application of IFRS 9 (note 2.2) 919 At January 1, 2018 4,761 Impairment losses for ECL 2,008 Accounts receivable written off (2,089 ) At December 31, 2018 4,680 |
Remaining Contractual Maturities of Financial Liabilities Based on Contractual Undiscounted Cash Flows and Earliest Date of Repayment Required | The following table sets out the remaining contractual maturities at the end of the reporting period of the Group’s financial liabilities, which are based on contractual undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on prevailing rates at the end of the reporting period) and the earliest date the Group would be required to repay: 2017 Carrying Total Within 1 More than 1 More than 2 More RMB RMB RMB RMB RMB RMB Short-term debt 54,558 55,682 55,682 — — — Long-term debt 49,742 58,543 2,725 2,716 46,612 6,490 Accounts payable 119,321 119,321 119,321 — — — Accrued expenses and other payables 98,695 98,695 98,695 — — — Finance lease obligations 77 85 56 14 13 2 322,393 332,326 276,479 2,730 46,625 6,492 2018 Carrying Total Within 1 More than 1 More than 2 More RMB RMB RMB RMB RMB RMB Short-term debt 49,537 51,091 51,091 — — — Long-term debt 45,991 52,625 2,602 19,604 25,061 5,358 Accounts payable 107,887 107,887 107,887 — — — Accrued expenses and other payables 43,497 43,497 43,497 — — — Finance lease obligations 216 241 112 40 82 7 247,128 255,341 205,189 19,644 25,143 5,365 |
Interest Rate Profile of Debt | The following table sets out the interest rate profile of the Group’s debt at the end of the reporting period: 2017 2018 Effective Effective % RMB % RMB Fixed rate debt: Short-term debt 4.0 54,042 3.2 49,347 Long-term debt 3.3 49,742 3.3 45,991 103,784 95,338 Variable rate debt: Short-term debt 4.1 516 4.2 190 516 190 Total debt 104,300 95,528 Fixed rate debt as a percentage of total debt 99.5 % 99.8 % |
Accounts receivable [member] | Telephone and Internet subscribers [member] | |
Statement [LineItems] | |
Summary of Accounts Receivables | Accounts receivable from telephone and Internet subscribers: December 31, 2018 Expected Gross carrying Loss % RMB RMB Current, within 1 month 2 % 8,376 158 1 to 3 months 20 % 2,117 420 4 to 6 months 60 % 839 502 7 to 12 months 80 % 1,093 875 Over 12 months 100 % 943 943 13,368 2,898 |
Accounts receivable [member] | Customers and Contract assets [member] | |
Statement [LineItems] | |
Summary of Accounts Receivables From Enterprise Customers and Contract Assets | Accounts receivable from telephone and Internet subscribers: December 31, 2018 Expected Gross carrying Loss % RMB RMB Current, within 1 month 2 % 8,376 158 1 to 3 months 20 % 2,117 420 4 to 6 months 60 % 839 502 7 to 12 months 80 % 1,093 875 Over 12 months 100 % 943 943 13,368 2,898 Accounts receivable from enterprise customers and contract assets: December 31, 2018 Expected Gross carrying Loss % RMB RMB 1 to 6 months 2 % 4,478 109 7 to 12 months 20 % 800 157 1 to 2 years 60 % 479 290 2 to 3 years 90 % 225 202 Over 3 years 100 % 298 298 6,280 1,056 |
Reconciliation of Liabilities_2
Reconciliation of Liabilities Arising from Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Text block [abstract] | |
Summary of Changes in Group's Liabilities Arising from Financing Activities | The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash Short-term Long-term Finance lease Other payables non-controlling Consideration Consideration non-controlling Dividend Total RMB RMB RMB RMB RMB RMB RMB RMB Balance as of January 1, 2017 40,780 71,646 102 — — — — 112,528 Financing cash flows 13,778 (22,191 ) (84 ) — — (31 ) (7,619 ) (16,147 ) New finance leases — — 55 — — — — 55 Interest expenses — 295 9 — — — — 304 Foreign exchange gain — (8 ) — — — — — (8 ) Acquisition of the Eighth Acquired Group — — — — 87 — — 87 Acquisition of non-controlling — — — — — 150 — 150 Distribution to non-controlling — — — — — — 89 89 Dividends declared — — — — — — 7,530 7,530 Others — — (5 ) — — — — (5 ) Balance as of December 31, 2017 54,558 49,742 77 — 87 119 — 104,583 Financing cash flows (5,021 ) (4,073 ) (73 ) (20 ) (87 ) (119 ) (7,745 ) (17,138 ) New finance leases — — 200 — — — — 200 Interest expenses — 304 12 — — — — 316 Foreign exchange loss — 18 — — — — — 18 Reduction of capital by non-controlling — — — 20 — — — 20 Distribution to non-controlling — — — — — — 177 177 Dividends declared — — — — — — 7,568 7,568 Balance as of December 31, 2018 49,537 45,991 216 — — — — 95,744 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Statement [LineItems] | |
Key Management Personnel Compensation | Key management personnel compensation of the Group is summarized as follows: Year ended December 31, 2016 2017 2018 RMB RMB RMB thousands thousands thousands Short-term employee benefits. 9,886 7,804 7,942 Post-employment benefits. 801 816 799 10,687 8,620 8,741 The above remuneration is included in personnel expenses. |
China Telecom Group [member] | |
Statement [LineItems] | |
Principal Transactions and Amounts Due From/To Related Parties | The principal transactions with China Telecom Group which were carried out in the ordinary course of business are as follows. Year ended December 31, Notes 2016 2017 2018 RMB RMB RMB Construction and engineering services. (i ) 18,936 18,672 16,396 Receiving ancillary services. (ii ) 13,938 16,072 16,744 Interconnection revenues (iii ) 60 48 80 Interconnection charges (iii ) 232 193 204 Receiving community services (iv ) 2,871 3,028 3,296 Net transaction amount of centralized services (v ) 523 727 519 Property lease income (vi ) 36 53 48 Property lease expenses (vi ) 559 654 713 Provision of IT services (vii ) 312 642 531 Receiving IT services (vii ) 1,597 1,812 1,895 Purchases of telecommunications equipment and materials. (viii ) 5,199 4,248 3,760 Sales of telecommunications equipment and materials. (viii ) 2,786 3,291 2,760 Internet applications channel services (ix ) 332 344 298 Interest on amounts due to and loans from China Telecom Group (x ) 2,928 2,720 2,099 Others (xi ) 176 190 186 Notes: (i) Represent construction and engineering as well as design and supervisory services provided by China Telecom Group. (ii) Represent amounts paid and payable to China Telecom Group in respect of ancillary services such as repairs and maintenance of telecommunications equipment and facilities and certain customer services. (iii) Represent amounts received and receivable from/paid and payable to China Telecom Group for interconnection of local and domestic long distance calls. (iv) Represent amounts paid and payable to China Telecom Group in respect of cultural, educational, health care and other community services. (v) Represent net amount shared between the Company and China Telecom Group for costs associated with centralized services. The amount represents amounts received or receivable for the net amount of centralized services. (vi) Represent amounts of property lease fee received and receivable from/paid and payable to China Telecom Group for mutual leasing of properties. (vii) Represent IT services provided to and received from China Telecom Group. (viii) Represent the amount of telecommunications equipment and materials purchased from/sold to China Telecom Group and commission paid and payable for procurement services provided by China Telecom Group. (ix) Represent amounts received and receivable from China Telecom Group in respect of Internet applications channel services, including the provision of telecommunications channel and applications support platform and billing and deduction services, etc. (x) Represent interest paid and payable to China Telecom Group with respect to the amounts due to China Telecommunications Corporation and loans from China Telecom Group (Note 18). (xi) Represent amounts paid and payable to China Telecom Group primarily for lease of CDMA mobile telecommunications network (“CDMA network”) facilities located in Xizang Autonomous Region, certain inter-provincial transmission optic fibers within its service regions and land use rights. Amounts due from/to China Telecom Group are summarized as follows: December 31, 2017 2018 RMB RMB Accounts receivable 1,502 1,327 Contract assets — 24 Prepayments and other current assets 774 1,035 Total amounts due from China Telecom Group 2,276 2,386 Accounts payable 22,682 20,983 Accrued expenses and other payables 1,838 2,171 Contract liabilities — 145 Short-term debt 19,098 8,584 Long-term debt 40,000 37,000 Total amounts due to China Telecom Group 83,618 68,883 |
China Tower [member] | |
Statement [LineItems] | |
Principal Transactions and Amounts Due From/To Related Parties | The principal transactions with China Tower are as follows: Year ended December 31, Notes 2016 2017 2018 RMB RMB RMB Tower assets lease and related fee (i ) 11,657 15,389 16,063 Provision of IT services (ii ) 12 49 32 Notes: (i) Represent tower assets lease and related fee paid and payable to China Tower. The Company and China Tower entered into agreement on July 8, 2016 and a supplemental agreement on February 1, 2018 to confirm the pricing and related arrangements in relation to the leases of the telecommunications towers and related assets. (ii) Represent IT and other ancillary services provided to China Tower. Amounts due from/to China Tower are summarized as follows: 2017 2018 RMB RMB Accounts receivable 5 10 Prepayments and other current assets 2,152 293 Total amounts due from China Tower 2,157 303 Accounts payable 2,611 2,850 Accrued expenses and other payables 1,374 1,246 Total amounts due to China Tower 3,985 4,096 |
Principal Subsidiaries (Tables)
Principal Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments accounted for using equity method [abstract] | |
Details of Subsidiaries which Principally Affected Results, Assets and Liabilities of the Group | Details of the Company’s subsidiaries which principally affected the results, assets and liabilities of the Group as of December 31, 2018 are as follows: Name of company Type of legal entity Date of incorporation Place of incorporation and operation Registered /issued capital (in RMB million unless Principal activities China Telecom System Integration Co., Limited Limited Company September 13, 2001 PRC 542 Provision of system integration and consulting services China Telecom Global Limited Limited Company February 25, 2000 Hong Kong Special Administrative Region of the PRC HK$168 million Provision of telecommunications services China Telecom (Americas) Corporation Limited Company November 22, 2001 The United States of America US$43 million Provision of telecommunications services China Telecom Best Tone Information Service Co., Limited Limited Company August 15, 2007 PRC 350 Provision of Best Tone information services China Telecom (Macau) Company Limited Limited Company October 15, 2004 Macau Special Administrative Region of the PRC MOP60 million Provision of telecommunications services Tianyi Telecom Terminals Company Limited Limited Company July 1, 2005 PRC 500 Sales of telecommunications terminals China Telecom (Singapore) Pte. Limited Limited Company October 5, 2006 Singapore S$1,000,001 Provision of international value-added network services E-surfing Limited Company March 3, 2011 PRC 500 Provision of e-commerce Shenzhen Shekou Telecommunications Company Limited Limited Company May 5, 1984 PRC 91 Provision of telecommunications services China Telecom (Australia) Pty Ltd Limited Company January 10, 2011 Australia AUD1 million Provision of international value-added network services China Telecom Korea Co.,Ltd Limited Company May 16, 2012 South Korea KRW500 million Provision of international value-added network services China Telecom (Malaysia) SDN BHD Limited Company June 26, 2012 Malaysia MYR3,723,500 Provision of international value-added network services China Telecom Information Technology (Vietnam) Co., Ltd Limited Company July 9, 2012 Vietnam VND10,500 million Provision of international value-added network services iMUSIC Culture & Technology Co., Ltd. Limited Company June 9, 2013 PRC 250 Provision of music production and related information services China Telecom (Europe) Limited Limited Company March 2, 2006 The United Kingdom of Great Britain and Northern Ireland GBP16.15 million Provision of international value-added network services Zhejiang Yixin Technology Co., Ltd. Limited Company August 19, 2013 PRC 11 Provision of instant messenger service Tianyi Capital Holding Co., Ltd. Limited Company November 30, 2017 PRC 5,000 Capital Investment and provision of consulting services China Telecom Leasing Corporation Limited. Limited Company November 30, 2018 PRC 5,000 Provision of finance lease service |
Principal Activities, Organiz_3
Principal Activities, Organization and Basis of Presentation - Additional Information (Detail) - CNY (¥) ¥ / shares in Units, ¥ in Millions, shares in Millions | Nov. 16, 2017 | Oct. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2013 | Apr. 30, 2012 | Dec. 01, 2011 | Jun. 30, 2008 | Jun. 30, 2007 | Jun. 30, 2004 | Dec. 31, 2003 | Sep. 10, 2002 |
Disclosure of general information about financial statements (line items] | |||||||||||||
cash received from disposal of a subsidiary | ¥ (1) | ¥ 184 | ¥ (50) | ||||||||||
Chengdu E-store Technology Co., Ltd [member] | |||||||||||||
Disclosure of general information about financial statements (line items] | |||||||||||||
Percentage of equity interest disposed | 100.00% | ||||||||||||
Consideration for the disposal | ¥ 251 | ||||||||||||
cash received from disposal of a subsidiary | ¥ 249 | ¥ 2 | 184 | ||||||||||
Anhui Telecom Company Limited, Fujian Telecom Company Limited, Jiangxi Telecom Company Limited, Guangxi Telecom Company Limited, Chongqing Telecom Company Limited and Sichuan Telecom Company Limited [member] | |||||||||||||
Disclosure of general information about financial statements (line items] | |||||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||||
Total purchase price for acquiring equity interests | ¥ 46,000 | ||||||||||||
Hubei Telecom Company Limited, Hunan Telecom Company Limited, Hainan Telecom Company Limited, Guizhou Telecom Company Limited, Yunnan Telecom Company Limited, Shaanxi Telecom Company Limited, Gansu Telecom Company Limited, Qinghai Telecom Company Limited, Ningxia Telecom Company Limited and Xinjiang Telecom Company Limited [member] | |||||||||||||
Disclosure of general information about financial statements (line items] | |||||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||||
Total purchase price for acquiring equity interests | ¥ 27,800 | ||||||||||||
China Telecom Group Beijing Corporation [member] | |||||||||||||
Disclosure of general information about financial statements (line items] | |||||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||||
Total purchase price for acquiring equity interests | ¥ 5,557 | ||||||||||||
Digital Trunking Business from Besttone Holding Co., Ltd., a Subsidiary of China Telecommunications Corporation [member] | |||||||||||||
Disclosure of general information about financial statements (line items] | |||||||||||||
Total purchase price for acquiring equity interests | ¥ 48 | ||||||||||||
China Telecom (Europe) Limited [member] | |||||||||||||
Disclosure of general information about financial statements (line items] | |||||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||||
Total purchase price for acquiring equity interests | ¥ 278 | ||||||||||||
E-commerce business and video media business from China Telecommunications Corporation and its subsidiaries [member] | |||||||||||||
Disclosure of general information about financial statements (line items] | |||||||||||||
Total purchase price for acquiring equity interests | ¥ 61 | ||||||||||||
China Telecom System Integration Co., Ltd., China Telecom Global Limited and China Telecom (Americas) Corporation [member] | |||||||||||||
Disclosure of general information about financial statements (line items] | |||||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||||
Total purchase price for acquiring equity interests | ¥ 1,408 | ||||||||||||
Satcom Business [member] | |||||||||||||
Disclosure of general information about financial statements (line items] | |||||||||||||
Total purchase price for acquiring equity interests | ¥ 70 | ||||||||||||
Shaanxi Zhonghe Hengtai Insurance Agent Limited [member] | |||||||||||||
Disclosure of general information about financial statements (line items] | |||||||||||||
Percentage of equity interest acquired | 100.00% | ||||||||||||
Total purchase price for acquiring equity interests | ¥ 17 | ||||||||||||
Domestic shares [member] | |||||||||||||
Disclosure of general information about financial statements (line items] | |||||||||||||
Number of shares issued on the date of incorporation | 68,317 | ||||||||||||
Par value per share of shares issued on the date of incorporation | ¥ 1 | ¥ 1 | ¥ 1 |
Principal Activities, Organiz_4
Principal Activities, Organization and Basis of Presentation - Analysis of Assets and Liabilities of Disposed Subsidiary (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets | |||||
Cash and cash equivalents | ¥ 16,666 | ¥ 19,410 | ¥ 24,617 | ¥ 31,869 | |
Prepayments and other current assets | 23,619 | 22,128 | |||
Non-current assets | |||||
Property, plant and equipment, net | 407,795 | 406,257 | |||
Intangible assets | 14,161 | 12,391 | |||
Current liabilities | |||||
Accrued expenses and other payables | ¥ 43,497 | 98,695 | |||
Chengdu E-store Technology Co., Ltd [member] | |||||
Current assets | |||||
Cash and cash equivalents | ¥ 65 | ||||
Accounts receivable, net | 48 | ||||
Prepayments and other current assets | 67 | ||||
Non-current assets | |||||
Property, plant and equipment, net | 16 | ||||
Intangible assets | 3 | ||||
Current liabilities | |||||
Accounts payable | 29 | ||||
Accrued expenses and other payables | 27 | ||||
Net assets disposal of | ¥ 143 | ¥ 143 |
Principal Activities, Organiz_5
Principal Activities, Organization and Basis of Presentation - Summary of Gain on Disposal of Subsidiary (Detail) - Chengdu E-store Technology Co., Ltd [member] - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Oct. 31, 2017 | |
Disclosure of general information about financial statements (line items] | ||
Consideration for the disposal | ¥ 251 | |
Net assets disposed of | (143) | ¥ (143) |
Gain on disposal | ¥ 108 |
Principal Activities, Organiz_6
Principal Activities, Organization and Basis of Presentation - Summary of Net Cash Inflow from Disposal of Subsidiary (Detail) - CNY (¥) ¥ in Millions | Nov. 16, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of general information about financial statements (line items] | ||||
Net cash inflow from disposal of a subsidiary | ¥ (1) | ¥ 184 | ¥ (50) | |
Chengdu E-store Technology Co., Ltd [member] | ||||
Disclosure of general information about financial statements (line items] | ||||
Consideration received in cash and cash equivalents | 249 | |||
Less: Cash and cash equivalents disposed of | (65) | |||
Net cash inflow from disposal of a subsidiary | ¥ 249 | ¥ 2 | ¥ 184 |
Principal Activities, Organiz_7
Principal Activities, Organization and Basis of Presentation - Summary of Consolidated Financial Statements of Group to Reflect Acquisition of Eighth Acquired Group (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reclassifications or changes in presentation [line items] | ||||
Operating revenues | ¥ 377,124 | ¥ 366,229 | ¥ 352,534 | |
Profit for the year | 21,338 | 18,761 | 18,123 | |
Total assets | 663,382 | 661,194 | 652,558 | |
Total liabilities | 319,283 | 334,497 | 336,210 | |
Total equity | ¥ 344,099 | ¥ 326,697 | 316,348 | ¥ 304,790 |
Previously stated [member] | ||||
Disclosure of reclassifications or changes in presentation [line items] | ||||
Operating revenues | 352,285 | |||
Profit for the year | 18,109 | |||
Total assets | 652,368 | |||
Total liabilities | 336,073 | |||
Total equity | 316,295 | |||
Business combinations adjustment [member] | Satcom Business and Zhonghehengtai [member] | ||||
Disclosure of reclassifications or changes in presentation [line items] | ||||
Operating revenues | 249 | |||
Profit for the year | 14 | |||
Total assets | 190 | |||
Total liabilities | 137 | |||
Total equity | ¥ 53 |
Application of New and Amendm_3
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation - Summary of Impact of IFRS 15 on Reserves (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Incremental costs of obtaining contracts | ¥ 4,840 | ¥ 3,349 | |
Tax effect | (13,138) | ¥ (8,010) | |
Increase (decrease) due to application of IFRS 15 [member] | |||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |||
Consideration payable to customers | ¥ 2,884 | ||
Contract with multiple performance obligations | 663 | ||
Incremental costs of obtaining contracts | (1,287) | 1,210 | |
Tax effect | ¥ 869 | (1,066) | |
Increase as of 1 January 2018 | ¥ 3,691 |
Application of New and Amendm_4
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation - Summary of Impact of Implementation of IFRS 15 on Consolidated Statement of Financial Position (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Non-current assets | |||
Other assets | ¥ 4,840 | ¥ 3,349 | |
Current assets | |||
Accounts receivable, net | 20,475 | 22,096 | |
Contract assets | 478 | ||
Prepayments and other current assets | 23,619 | 22,128 | |
Current liabilities | |||
Accrued expenses and other payables | 43,497 | 98,695 | |
Contract liabilities | 55,783 | ||
Current portion of deferred revenues | 375 | 1,233 | |
Non-current liabilities | |||
Deferred tax liabilities | 13,138 | 8,010 | |
Equity | |||
Reserves | ¥ 262,137 | ¥ 244,935 | |
IFRS 15 [member] | |||
Non-current assets | |||
Other assets | ¥ 4,559 | ||
Current assets | |||
Accounts receivable, net | 21,500 | ||
Contract assets | 656 | ||
Prepayments and other current assets | 22,091 | ||
Current liabilities | |||
Accrued expenses and other payables | 33,783 | ||
Contract liabilities | 62,175 | ||
Current portion of deferred revenues | 446 | ||
Non-current liabilities | |||
Deferred tax liabilities | 9,076 | ||
Equity | |||
Reserves | 248,626 | ||
Reclassified items [member] | |||
Current assets | |||
Accounts receivable, net | (596) | ||
Contract assets | 633 | ||
Prepayments and other current assets | (37) | ||
Current liabilities | |||
Accrued expenses and other payables | (64,912) | ||
Contract liabilities | 65,699 | ||
Current portion of deferred revenues | (787) | ||
Reemeasurement [member] | |||
Non-current assets | |||
Other assets | 1,210 | ||
Current assets | |||
Contract assets | 23 | ||
Current liabilities | |||
Contract liabilities | (3,524) | ||
Non-current liabilities | |||
Deferred tax liabilities | 1,066 | ||
Equity | |||
Reserves | ¥ 3,691 |
Application of New and Amendm_5
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation - Summary of Impact of Implementation of IFRS 15 on Consolidated Statement of Financial Position (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of initial application of standards or interpretations [line items] | |||
Deferred revenues | ¥ 375 | ¥ 1,233 | |
Consideration payable to customer, netted off deferred tax | ¥ 2,224 | ||
IFRS 15 [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Incremental cost to obtain contracts | 940 | ||
Deferred revenues | 446 | ||
Telecommunications service contracts [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Advance | 55,018 | ||
Deferred revenues | ¥ 765 | ||
Telecommunications service contracts [member] | IFRS 15 [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Advance | 64,912 | ||
Deferred revenues | 787 | ||
Consideration allocated to provision of telecommunications services | 527 | ||
Information and application services [member] | IFRS 15 [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Unbilled revenue | ¥ 633 |
Application of New and Amendm_6
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation - Disclosure of Impact of Implementation of IFRS 15 on Consolidated Statement of Financial Position (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Non-current assets | |||
Other assets | ¥ 4,840 | ¥ 3,349 | |
Current assets | |||
Accounts receivable, net | 20,475 | 22,096 | |
Contract assets | 478 | ||
Current liabilities | |||
Accrued expenses and other payables | 43,497 | 98,695 | |
Contract liabilities | 55,783 | ||
Current portion of deferred revenues | 375 | 1,233 | |
Non-current liabilities | |||
Deferred tax liabilities | 13,138 | 8,010 | |
Equity | |||
Reserves | 262,137 | ¥ 244,935 | |
Increase (decrease) due to application of IFRS 15 [member] | |||
Non-current assets | |||
Other assets | (1,287) | ¥ 1,210 | |
Current assets | |||
Accounts receivable, net | 461 | (596) | |
Contract assets | (478) | 656 | |
Current liabilities | |||
Accrued expenses and other payables | 57,681 | (64,912) | |
Contract liabilities | (55,783) | 62,175 | |
Current portion of deferred revenues | 765 | (787) | |
Non-current liabilities | |||
Deferred tax liabilities | (869) | 1,066 | |
Equity | |||
Reserves | (3,098) | ¥ 3,691 | |
Amounts without application of IFRS15 [member] | |||
Non-current assets | |||
Other assets | 3,553 | ||
Current assets | |||
Accounts receivable, net | 20,936 | ||
Current liabilities | |||
Accrued expenses and other payables | 101,178 | ||
Current portion of deferred revenues | 1,140 | ||
Non-current liabilities | |||
Deferred tax liabilities | 12,269 | ||
Equity | |||
Reserves | ¥ 259,039 |
Application of New and Amendm_7
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation - Disclosure of Impact of Implementation of IFRS 15 on Consolidated Statement of Comprehensive Income (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of initial application of standards or interpretations [line items] | |||
Operating revenues | ¥ 377,124 | ¥ 366,229 | ¥ 352,534 |
Operating expenses | |||
Selling, general and administrative | 59,422 | ||
Other operating expenses | 37,697 | 45,612 | 52,286 |
Total operating expenses | 348,410 | 339,009 | 325,314 |
Operating profit | 28,714 | 27,220 | 27,220 |
Profit before taxation | 28,148 | 24,953 | 24,116 |
Income tax | 6,810 | 6,192 | 5,993 |
Profit for the year | 21,338 | 18,761 | 18,123 |
Total comprehensive income for the year | 21,243 | ¥ 18,209 | ¥ 18,148 |
Increase (decrease) due to application of IFRS 15 [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Operating revenues | 4,377 | ||
Operating expenses | |||
Selling, general and administrative | 3,956 | ||
Other operating expenses | (369) | ||
Total operating expenses | 3,587 | ||
Operating profit | 790 | ||
Profit before taxation | 790 | ||
Income tax | 197 | ||
Profit for the year | 593 | ||
Total comprehensive income for the year | 593 | ||
Amounts without application of IFRS15 [member] | |||
Disclosure of initial application of standards or interpretations [line items] | |||
Operating revenues | 381,501 | ||
Operating expenses | |||
Selling, general and administrative | 63,378 | ||
Other operating expenses | 37,328 | ||
Total operating expenses | 351,997 | ||
Operating profit | 29,504 | ||
Profit before taxation | 28,938 | ||
Income tax | 7,007 | ||
Profit for the year | 21,931 | ||
Total comprehensive income for the year | ¥ 21,836 |
Application of New and Amendm_8
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation - Disclosure of Impact of Implementation of IFRS 15 on Consolidated Statement of Cash Flows (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of initial application of standards or interpretations [line items] | ||||
Profit before taxation | ¥ 28,148 | ¥ 24,953 | ¥ 24,116 | |
Operating profit before changes in working capital | 108,080 | |||
Increase in accounts receivable | (1,848) | (2,770) | (2,306) | |
Decrease in contract assets | 170 | |||
Decrease in other assets | 271 | (231) | 366 | |
Increase in accrued expenses and other payables | 9,842 | 7,232 | 10,878 | |
Decrease in contract liabilities | (6,414) | |||
Decrease in contract revenues | (138) | (202) | (418) | |
Net cash from operating activities | [1] | 99,298 | ¥ 96,502 | ¥ 101,135 |
Increase (decrease) due to application of IFRS 15 [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Profit before taxation | 790 | |||
Operating profit before changes in working capital | 790 | |||
Increase in accounts receivable | 164 | |||
Decrease in contract assets | (170) | |||
Decrease in other assets | 77 | |||
Increase in accrued expenses and other payables | (7,253) | |||
Decrease in contract liabilities | 6,414 | |||
Decrease in contract revenues | (22) | |||
Amounts without application of IFRS15 [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Profit before taxation | 28,938 | |||
Operating profit before changes in working capital | 108,870 | |||
Increase in accounts receivable | (1,684) | |||
Decrease in other assets | 348 | |||
Increase in accrued expenses and other payables | 2,589 | |||
Decrease in contract revenues | (160) | |||
Net cash from operating activities | ¥ 99,298 | |||
[1] | Reconciliation of earnings before income tax to net cash from operating activities |
Application of New and Amendm_9
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation - Disclosure of Impact of Implementation of IFRS 15 on Consolidated Statement of Cash Flows (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Disclosure of initial application of standards or interpretations [line items] | ||||
Contract liabilities | ¥ 55,783 | |||
Deferred revenues | 375 | ¥ 1,233 | ||
Reduction of operating revenues | 377,124 | ¥ 366,229 | ¥ 352,534 | |
Increase (decrease) due to application of IFRS 15 [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Contract liabilities | (55,783) | ¥ 62,175 | ||
Deferred revenues | 765 | ¥ (787) | ||
Reduction of operating revenues | 4,377 | |||
Reduction of operating expenses | (77) | |||
Increase in contract costs | 1,287 | |||
Increase in contract assets | 461 | |||
Telecommunications service contracts [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Advance | 55,018 | |||
Deferred revenues | 765 | |||
Telecommunications service contracts [member] | Increase (decrease) due to application of IFRS 15 [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Contract liabilities | 55,783 | |||
Reduction of operating revenues | (480) | |||
Reduction of contract liabilities | (166) | |||
Increase of contract assets | 17 | |||
Customer contracts [member] | Increase (decrease) due to application of IFRS 15 [member] | ||||
Disclosure of initial application of standards or interpretations [line items] | ||||
Reduction of operating revenues | (3,897) | |||
Reduction of operating expenses | (3,510) | |||
Reduction of contract liabilities | ¥ (2,497) |
Application of New and Amend_10
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation - Classification and Measurement of Financial Assets and Other Items Subject to ECL Under IFRS 9 and IAS 39 (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | |||
Investments | ¥ 1,154 | ||
Equity instruments at FVTOCI | ¥ 852 | ||
Accounts receivable | 20,475 | 22,096 | |
Contract assets | 478 | ||
Prepayments and other current assets | 23,619 | 22,128 | |
Deferred tax assets | 6,544 | 5,479 | |
Deferred tax liabilities | 13,138 | 8,010 | |
Reserves | 262,137 | 244,935 | |
Non-controlling interests | 1,030 | ¥ 830 | |
Increase (decrease) due to application of IFRS 15 [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable | 461 | ¥ (596) | |
Contract assets | (478) | 656 | |
Prepayments and other current assets | (37) | ||
Deferred tax liabilities | (869) | 1,066 | |
Reserves | ¥ (3,098) | 3,691 | |
Increase (decrease) due to application of IFRS 9 [member] | |||
Disclosure of financial assets [line items] | |||
Investments | (1,154) | ||
Equity instruments at FVTOCI | 1,154 | ||
Accounts receivable | (919) | ||
Prepayments and other current assets | (1) | ||
Deferred tax assets | 203 | ||
Reserves | (716) | ||
Non-controlling interests | (1) | ||
Increase (decrease) due to application of IFRS 9 [member] | Reclassified items [member] | |||
Disclosure of financial assets [line items] | |||
Investments | (1,154) | ||
Equity instruments at FVTOCI | 1,154 | ||
Increase (decrease) due to application of IFRS 9 [member] | Changes in accounting policies [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable | (919) | ||
Prepayments and other current assets | (1) | ||
Deferred tax assets | 203 | ||
Reserves | (716) | ||
Non-controlling interests | (1) | ||
Restated balance [member] | |||
Disclosure of financial assets [line items] | |||
Equity instruments at FVTOCI | 1,154 | ||
Accounts receivable | 20,581 | ||
Contract assets | 656 | ||
Prepayments and other current assets | 22,090 | ||
Deferred tax assets | 5,682 | ||
Deferred tax liabilities | 9,076 | ||
Reserves | 247,910 | ||
Non-controlling interests | ¥ 829 |
Application of New and Amend_11
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation - Classification and Measurement of Financial Assets and Other Items Subject to ECL Under IFRS 9 and IAS 39 (Parenthetical) (Detail) - CNY (¥) | Jan. 01, 2018 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Reclassified from investments to equity instruments at FVTOCI | ¥ 852,000,000 | |
Additional credit loss allowance | ¥ 920,000,000 | |
Increase (decrease) due to changes in accounting policy | 203,000,000 | ¥ 863,000,000 |
12-month expected credit losses [member] | ||
Disclosure of financial assets [line items] | ||
Significant increase in credit risk | 0 | |
Financial assets measured at fair value through other comprehensive income, category [member] | ||
Disclosure of financial assets [line items] | ||
Fir value gain loss on investments | 674,000,000 | |
Financial assets measured at fair value through other comprehensive income, category [member] | IFRS9 [member] | ||
Disclosure of financial assets [line items] | ||
Reclassified from investments to equity instruments at FVTOCI | 1,154,000,000 | |
Financial assets measured at fair value through other comprehensive income, category [member] | IAS 39 [member] | ||
Disclosure of financial assets [line items] | ||
Unquoted equity investments | ¥ 185,000,000 |
Application of New and Amend_12
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation - Disclosure of Loss Allowances for Financial Assets, Including Account Receivables and Financial Assets Included in Prepayments and Other Current Assets, and Contract Assets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Accounts receivable [member] | |||
Disclosure of financial assets [line items] | |||
Allowance account for credit losses of financial assets | ¥ 4,680 | ¥ 4,761 | ¥ 4,761 |
Accounts receivable [member] | Remeasurement [member] | |||
Disclosure of financial assets [line items] | |||
Allowance account for credit losses of financial assets | 919 | ||
Current Prepayments And Other Current Assets [member] | |||
Disclosure of financial assets [line items] | |||
Allowance account for credit losses of financial assets | 371 | ||
Current Prepayments And Other Current Assets [member] | Remeasurement [member] | |||
Disclosure of financial assets [line items] | |||
Allowance account for credit losses of financial assets | ¥ 1 | ||
IAS 39 [member] | Accounts receivable [member] | |||
Disclosure of financial assets [line items] | |||
Allowance account for credit losses of financial assets | 3,842 | ||
IAS 39 [member] | Current Prepayments And Other Current Assets [member] | |||
Disclosure of financial assets [line items] | |||
Allowance account for credit losses of financial assets | ¥ 370 |
Application of New and Amend_13
Application of New and Amendments to International Financial Reporting Standards ("IFRSs") and Interpretation - Disclosure of Impacts on Opening Consolidated Statement of Financial Position From Application of New Standards (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-current assets | ||||||
Investments | ¥ 1,154 | |||||
Equity instruments at fair value through other comprehensive income | ¥ 852 | |||||
Deferred tax assets | 6,544 | 5,479 | ||||
Other assets | 4,840 | 3,349 | ||||
Others with no adjustments | 579,662 | |||||
Total non-current assets | 590,377 | 589,644 | ||||
Current assets | ||||||
Accounts receivable, net | 20,475 | 22,096 | ||||
Contract assets | 478 | |||||
Prepayments and other current assets | 23,619 | 22,128 | ||||
Others with no adjustments | 27,326 | |||||
Total current assets | 73,005 | 71,550 | ||||
Total assets | 663,382 | 661,194 | ¥ 652,558 | |||
Current liabilities | ||||||
Accrued expenses and other payables | 43,497 | 98,695 | ||||
Contract liabilities | 55,783 | |||||
Current portion of deferred revenues | 375 | 1,233 | ||||
Others with no adjustments | 175,480 | |||||
Total current liabilities | 258,920 | 275,408 | ||||
Net current liabilities | (203,858) | |||||
Total assets less current liabilities | 385,786 | |||||
Non-current liabilities | ||||||
Deferred tax liabilities | 13,138 | 8,010 | ||||
Others with no adjustments | 51,079 | |||||
Total non-current liabilities | 60,363 | 59,089 | ||||
Total liabilities | 319,283 | 334,497 | 336,210 | |||
Equity | ||||||
Share capital | 80,932 | 80,932 | ||||
Reserves | 262,137 | 244,935 | ||||
Total equity attributable to equity holders of the Company | 343,069 | 325,867 | ||||
Non-controlling interests | 1,030 | 830 | ||||
Total equity | 344,099 | 326,697 | ¥ 316,348 | ¥ 304,790 | ||
Total liabilities and equity | 663,382 | 661,194 | ||||
Increase (decrease) due to application of IFRS 15 [member] | ||||||
Non-current assets | ||||||
Other assets | (1,287) | ¥ 1,210 | ||||
Total non-current assets | 1,210 | |||||
Current assets | ||||||
Accounts receivable, net | 461 | (596) | ||||
Contract assets | (478) | 656 | ||||
Prepayments and other current assets | (37) | |||||
Total current assets | 23 | |||||
Total assets | 1,233 | |||||
Current liabilities | ||||||
Accrued expenses and other payables | 57,681 | (64,912) | ||||
Contract liabilities | (55,783) | 62,175 | ||||
Current portion of deferred revenues | 765 | (787) | ||||
Total current liabilities | (3,524) | |||||
Net current liabilities | 3,547 | |||||
Total assets less current liabilities | 4,757 | |||||
Non-current liabilities | ||||||
Deferred tax liabilities | (869) | 1,066 | ||||
Total non-current liabilities | 1,066 | |||||
Total liabilities | (2,458) | |||||
Equity | ||||||
Reserves | ¥ (3,098) | 3,691 | ||||
Total equity attributable to equity holders of the Company | 3,691 | |||||
Total equity | 3,691 | |||||
Total liabilities and equity | 1,233 | |||||
Increase (decrease) due to application of IFRS 9 [member] | ||||||
Non-current assets | ||||||
Investments | (1,154) | |||||
Equity instruments at fair value through other comprehensive income | 1,154 | |||||
Deferred tax assets | 203 | |||||
Total non-current assets | 203 | |||||
Current assets | ||||||
Accounts receivable, net | (919) | |||||
Prepayments and other current assets | (1) | |||||
Total current assets | (920) | |||||
Total assets | (717) | |||||
Current liabilities | ||||||
Net current liabilities | (920) | |||||
Total assets less current liabilities | (717) | |||||
Equity | ||||||
Reserves | (716) | |||||
Total equity attributable to equity holders of the Company | (716) | |||||
Non-controlling interests | (1) | |||||
Total equity | (717) | |||||
Total liabilities and equity | (717) | |||||
Restated balance [member] | ||||||
Non-current assets | ||||||
Equity instruments at fair value through other comprehensive income | 1,154 | |||||
Deferred tax assets | 5,682 | |||||
Other assets | 4,559 | |||||
Others with no adjustments | 579,662 | |||||
Total non-current assets | 591,057 | |||||
Current assets | ||||||
Accounts receivable, net | 20,581 | |||||
Contract assets | 656 | |||||
Prepayments and other current assets | 22,090 | |||||
Others with no adjustments | 27,326 | |||||
Total current assets | 70,653 | |||||
Total assets | 661,710 | |||||
Current liabilities | ||||||
Accrued expenses and other payables | 33,783 | |||||
Contract liabilities | 62,175 | |||||
Current portion of deferred revenues | 446 | |||||
Others with no adjustments | 175,480 | |||||
Total current liabilities | 271,884 | |||||
Net current liabilities | (201,231) | |||||
Total assets less current liabilities | 389,826 | |||||
Non-current liabilities | ||||||
Deferred tax liabilities | 9,076 | |||||
Others with no adjustments | 51,079 | |||||
Total non-current liabilities | 60,155 | |||||
Total liabilities | 332,039 | |||||
Equity | ||||||
Share capital | 80,932 | |||||
Reserves | 247,910 | |||||
Total equity attributable to equity holders of the Company | 328,842 | |||||
Non-controlling interests | 829 | |||||
Total equity | 329,671 | ¥ 329,671 | [1] | |||
Total liabilities and equity | ¥ 661,710 | |||||
[1] | restated |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | Apr. 30, 2018 | Dec. 31, 2018CNY (¥)Segment | Dec. 31, 2017CNY (¥)Segment | Dec. 31, 2016CNY (¥)Segment |
Disclosure of significant accounting policies [line items] | ||||
Assets held under finance leases | ¥ 0 | ¥ 0 | ||
Estimated useful lives of software | 3 to 5 years | |||
Research and development expense | ¥ 1,341,000,000 | ¥ 1,088,000,000 | ¥ 825,000,000 | |
Number of operating segments | Segment | 1 | 1 | 1 | |
Basic telecommunications services (including voice communication, lease or sale of network resources) [member] | ||||
Disclosure of significant accounting policies [line items] | ||||
Output value added tax rate | 11.00% | 10.00% | ||
Value-added telecommunications services (including Internet access services, short and multimedia messaging services, transmission and application service of electronic data and information) [member] | ||||
Disclosure of significant accounting policies [line items] | ||||
Output value added tax rate | 6.00% | |||
Sales of telecommunications terminals and equipment [member] | ||||
Disclosure of significant accounting policies [line items] | ||||
Output value added tax rate | 17.00% | 16.00% | ||
Bottom of range [member] | ||||
Disclosure of significant accounting policies [line items] | ||||
Land use rights terms | 20 years | |||
Input value added tax rate | 3.00% | 3.00% | ||
Top of range [member] | ||||
Disclosure of significant accounting policies [line items] | ||||
Land use rights terms | 70 years | |||
Input value added tax rate | 17.00% | 16.00% |
Significant Accounting Polici_5
Significant Accounting Policies - Estimated Useful Life for Depreciation Purposes of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Buildings and improvements [member] | |
Disclosure of detailed information about property, plant and equipment (line items] | |
Estimated useful or depreciable lives of property, plant and equipment | 8 to 30 years |
Telecommunications network plant and equipment [member] | |
Disclosure of detailed information about property, plant and equipment (line items] | |
Estimated useful or depreciable lives of property, plant and equipment | 5 to 10 years |
Furniture, fixture, motor vehicles and other equipment [member] | |
Disclosure of detailed information about property, plant and equipment (line items] | |
Estimated useful or depreciable lives of property, plant and equipment | 5 to 10 years |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents [abstract] | ||||
Cash at bank and in hand | ¥ 14,937 | ¥ 17,763 | ||
Time deposits with original maturity within three months | 1,729 | 1,647 | ||
Cash and cash equivalents | ¥ 16,666 | ¥ 19,410 | ¥ 24,617 | ¥ 31,869 |
Accounts Receivable, Net - Summ
Accounts Receivable, Net - Summary of Accounts Receivable, Net (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ 20,475 | ¥ 22,096 |
Cost/Deemed cost [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 25,155 | 25,938 |
Cost/Deemed cost [member] | China Telecom Group [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 1,327 | 1,502 |
Cost/Deemed cost [member] | China Tower [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 10 | 5 |
Cost/Deemed cost [member] | Third parties [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 23,308 | 23,762 |
Cost/Deemed cost [member] | Other telecommunications operators in the PRC [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 510 | 669 |
Allowance for credit losses [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ (4,680) | ¥ (3,842) |
Accounts Receivable, Net - Addi
Accounts Receivable, Net - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | |||
Accounts receivable | ¥ 20,475 | ¥ 22,096 | |
Cost/Deemed cost [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable from contracts with customers | 25,155 | ¥ 25,342 | |
Accounts receivable | 25,155 | ¥ 25,938 | |
Past due 90 days [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable | ¥ 2,503 |
Accounts Receivable, Net - Agei
Accounts Receivable, Net - Ageing Analysis of Accounts Receivable from Telephone and Internet Subscribers (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ 20,475 | ¥ 22,096 |
Cost/Deemed cost [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 25,155 | 25,938 |
Allowance for credit losses [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | (4,680) | (3,842) |
Telephone and Internet subscribers [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 10,470 | 11,985 |
Telephone and Internet subscribers [member] | Cost/Deemed cost [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 13,368 | 14,588 |
Telephone and Internet subscribers [member] | Cost/Deemed cost [member] | Current, within 1 month [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 8,376 | 9,323 |
Telephone and Internet subscribers [member] | Cost/Deemed cost [member] | 1 to 3 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 2,117 | 2,607 |
Telephone and Internet subscribers [member] | Cost/Deemed cost [member] | 4 to 12 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 1,932 | 1,780 |
Telephone and Internet subscribers [member] | Cost/Deemed cost [member] | More than 12 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 943 | 878 |
Telephone and Internet subscribers [member] | Allowance for credit losses [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ (2,898) | ¥ (2,603) |
Accounts Receivable, Net - Ag_2
Accounts Receivable, Net - Ageing Analysis of Accounts Receivable from Other Telecommunications Operators and Enterprise Customers (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ 20,475 | ¥ 22,096 |
Cost/Deemed cost [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 25,155 | 25,938 |
Allowance for credit losses [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | (4,680) | (3,842) |
Other telecommunications operators and enterprise customers [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 10,005 | 10,111 |
Other telecommunications operators and enterprise customers [member] | Cost/Deemed cost [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 11,787 | 11,350 |
Other telecommunications operators and enterprise customers [member] | Cost/Deemed cost [member] | Current, within 1 month [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 3,318 | 4,421 |
Other telecommunications operators and enterprise customers [member] | Cost/Deemed cost [member] | 1 to 3 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 2,300 | 1,973 |
Other telecommunications operators and enterprise customers [member] | Cost/Deemed cost [member] | 4 to 12 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 3,994 | 2,644 |
Other telecommunications operators and enterprise customers [member] | Cost/Deemed cost [member] | More than 12 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 2,175 | 2,312 |
Other telecommunications operators and enterprise customers [member] | Allowance for credit losses [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ (1,782) | ¥ (1,239) |
Accounts Receivable, Net - Ag_3
Accounts Receivable, Net - Ageing Analysis of Accounts Receivable not Impaired (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ 20,475 | ¥ 22,096 |
Not past due [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 19,623 | |
Amounts past due [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 2,473 | |
Amounts past due [member] | Less than 1 month past due [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 1,518 | |
Amounts past due [member] | 1 to 3 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ 955 |
Accounts Receivable, Net - Chan
Accounts Receivable, Net - Changes in Allowance for Doubtful Debts (Detail) - CNY (¥) ¥ in Millions | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | |||
Impairment losses for doubtful debts | ¥ 920 | ||
Allowance for credit losses [member] | |||
Disclosure of financial assets [line items] | |||
At end of year | ¥ 3,402 | ||
At beginning of year | ¥ 3,402 | 2,935 | |
Impairment losses for doubtful debts | 1,962 | 2,203 | |
Accounts receivable written off | (1,522) | (1,736) | |
Allowance for credit losses [member] | IAS 39 [member] | |||
Disclosure of financial assets [line items] | |||
At end of year | 3,842 | ¥ 3,402 | |
At beginning of year | ¥ 3,842 | ¥ 3,402 |
Contract Assets - Summary of Co
Contract Assets - Summary of Contract Assets (Detail) - Increase (decrease) due to application of IFRS 15 [member] - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 |
Disclosure of contract assets [line items] | ||
Contract Assets | ¥ 478 | ¥ 656 |
Third parties [member] | ||
Disclosure of contract assets [line items] | ||
Contract Assets | 454 | 480 |
China Telecom Group [member] | ||
Disclosure of contract assets [line items] | ||
Contract Assets | ¥ 24 | ¥ 176 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Classes of current inventories [abstract] | ||
Materials and supplies | ¥ 1,012 | ¥ 1,071 |
Goods for resale | 3,820 | 3,052 |
Inventories | ¥ 4,832 | ¥ 4,123 |
Prepayments and Other Current_3
Prepayments and Other Current Assets - Summary of Prepayments and Other Current Assets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about prepayments and other current assets [Line Items] | |||
Prepayments in connection with construction work and equipment purchases | ¥ 2,752 | ¥ 2,542 | |
Prepaid expenses and deposits | 3,628 | 3,486 | |
Value-added tax recoverable | 8,618 | 7,186 | |
Other receivables | [1] | 6,960 | 5,619 |
Prepayments and other current assets | 23,619 | 22,128 | |
Other telecommunications operators in the PRC [member] | |||
Disclosure of detailed information about prepayments and other current assets [Line Items] | |||
Amounts due from companies | 333 | 369 | |
China Telecom Group [member] | |||
Disclosure of detailed information about prepayments and other current assets [Line Items] | |||
Amounts due from companies | 1,035 | 774 | |
China Tower [member] | |||
Disclosure of detailed information about prepayments and other current assets [Line Items] | |||
Amounts due from companies | ¥ 293 | ¥ 2,152 | |
[1] | Other receivables as of December 31, 2018 include the unpaid remaining consideration of the contribution from non-controlling interest of a subsidiary of the Group amounting to RMB90, which was received in January 2019. |
Prepayments and Other Current_4
Prepayments and Other Current Assets - Summary of Prepayments and Other Current Assets (Parenthetical) (Detail) ¥ in Millions | Dec. 31, 2018CNY (¥) |
Miscellaneous current assets [abstract] | |
Unpaid remaining consideration of the contribution from non-controlling interest | ¥ 90 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Summary of Property, Plant and Equipment, Net (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | ¥ 406,257 | |
Ending balance | 407,795 | ¥ 406,257 |
Cost/Deemed cost [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 974,390 | 953,459 |
Additions | 1,530 | 1,525 |
Transferred from construction in progress | 74,879 | 90,803 |
Retirement and disposal | (62,318) | (71,364) |
Disposal of a subsidiary | (33) | |
Ending balance | 988,481 | 974,390 |
Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | (568,133) | (563,788) |
Depreciation charge for the year | (70,383) | |
Depreciation and impairment charge for the year | (70,374) | |
Retirement and disposal | 57,830 | 66,012 |
Disposal of a subsidiary | 17 | |
Ending balance | (580,686) | (568,133) |
Buildings and improvements [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 46,626 | |
Ending balance | 44,241 | 46,626 |
Buildings and improvements [member] | Cost/Deemed cost [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 101,332 | 99,509 |
Additions | 712 | 583 |
Transferred from construction in progress | 1,454 | 1,967 |
Retirement and disposal | (860) | (709) |
Reclassification | (97) | (18) |
Ending balance | 102,541 | 101,332 |
Buildings and improvements [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | (54,706) | (51,018) |
Depreciation charge for the year | (4,370) | |
Depreciation and impairment charge for the year | (4,326) | |
Retirement and disposal | 750 | 620 |
Reclassification | 26 | 18 |
Ending balance | (58,300) | (54,706) |
Telecommunications network plant and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 351,407 | |
Ending balance | 355,396 | 351,407 |
Telecommunications network plant and equipment [member] | Cost/Deemed cost [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 842,473 | 823,836 |
Additions | 512 | 532 |
Transferred from construction in progress | 71,704 | 87,129 |
Retirement and disposal | (59,822) | (68,719) |
Disposal of a subsidiary | (33) | |
Reclassification | (485) | (272) |
Ending balance | 854,382 | 842,473 |
Telecommunications network plant and equipment [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | (491,066) | (490,917) |
Depreciation charge for the year | (63,878) | |
Depreciation and impairment charge for the year | (63,903) | |
Retirement and disposal | 55,519 | 63,553 |
Disposal of a subsidiary | 17 | |
Reclassification | 439 | 184 |
Ending balance | (498,986) | (491,066) |
Furniture, fixture, motor vehicles and other equipment [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 8,224 | |
Ending balance | 8,158 | 8,224 |
Furniture, fixture, motor vehicles and other equipment [member] | Cost/Deemed cost [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 30,585 | 30,114 |
Additions | 306 | 410 |
Transferred from construction in progress | 1,721 | 1,707 |
Retirement and disposal | (1,636) | (1,936) |
Reclassification | 582 | 290 |
Ending balance | 31,558 | 30,585 |
Furniture, fixture, motor vehicles and other equipment [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | (22,361) | (21,853) |
Depreciation charge for the year | (2,135) | |
Depreciation and impairment charge for the year | (2,145) | |
Retirement and disposal | 1,561 | 1,839 |
Reclassification | (465) | (202) |
Ending balance | ¥ (23,400) | ¥ (22,361) |
Construction in Progress - Summ
Construction in Progress - Summary of Construction in Progress (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about construction in progress [line items] | ||
Beginning balance | ¥ 406,257 | |
Ending balance | 407,795 | ¥ 406,257 |
Construction in progress [member] | ||
Disclosure of detailed information about construction in progress [line items] | ||
Beginning balance | 73,106 | 80,386 |
Additions | 74,457 | 88,359 |
Transferred to property, plant and equipment | (74,879) | (90,803) |
Transferred to intangible assets | (6,040) | (4,836) |
Ending balance | ¥ 66,644 | ¥ 73,106 |
Goodwill - Summary of Goodwill
Goodwill - Summary of Goodwill (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of reconciliation of changes in goodwill [abstract] | ||
Goodwill arising from acquisition of CDMA business | ¥ 29,922 | ¥ 29,920 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Oct. 01, 2008 | |
Disclosure of reconciliation of changes in goodwill [line items] | |||
Cash flow projected period considering financial budgets for the purpose of goodwill impairment testing | Five-year | ||
Pre-tax discount rate for the purpose of goodwill impairment testing | 9.40% | 9.80% | |
Annual growth rate for the purpose of goodwill impairment testing, used for cash flows beyond the five-year period which are projected to perpetuity | 1.50% | ||
CDMA business [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Total purchase price for acquiring equity interests | ¥ 43,800 | ||
Net settlement amount of customer-related assets acquired and customer-related liabilities assumed | ¥ 3,471 | ||
CDMA business [member] | China Telecom (Macau) Company Limited [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Percentage of equity interest acquired | 100.00% | ||
CDMA business [member] | Tianyi Telecom Terminals Company Limited [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Percentage of equity interest acquired | 99.50% |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about intangible assets [Line Items] | ||
Beginning balance | ¥ 12,391 | |
Ending balance | 14,161 | ¥ 12,391 |
Cost/Deemed cost [member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Beginning balance | 34,550 | 29,818 |
Additions | 269 | 175 |
Transferred from construction in progress | 6,040 | 4,836 |
Disposals | (3,545) | (268) |
Disposal of a subsidiary | (11) | |
Ending balance | 37,314 | 34,550 |
Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Beginning balance | (22,159) | (18,574) |
Amortization charge for the year | (4,366) | (3,843) |
Disposals | 3,372 | 250 |
Disposal of a subsidiary | 8 | |
Ending balance | ¥ (23,153) | ¥ (22,159) |
Interests in Associates - Summa
Interests in Associates - Summary of Interests in Associates (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of associates [line items] | ||
Share of post-acquisition changes in net assets | ¥ 1,118 | ¥ (922) |
Unlisted equity investments, at cost | 38,051 | 35,726 |
Fair value of listed investments | 46,797 | |
At cost [member] | ||
Disclosure of associates [line items] | ||
Unlisted equity investments, at cost | ¥ 36,933 | ¥ 36,648 |
Interests in Associates - Detai
Interests in Associates - Details of Principal Associates Accounted for under Equity Method (Detail) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | |||
China Tower [member] | ||||
Disclosure of associates [line items] | ||||
Attributable equity interest | [1] | 20.50% | 27.90% | |
Principal activities | [1] | Construction, maintenance and operation of telecommunications towers as well as ancillary facilities | Construction, maintenance and operation of telecommunications towers as well as ancillary facilities | |
Shanghai Information Investment Incorporation [member] | ||||
Disclosure of associates [line items] | ||||
Attributable equity interest | 24.00% | [2] | 24.00% | |
Principal activities | [2] | Provision of information technology consultancy services | ||
[1] | China Tower Corporation Limited ("China Tower") is established and operated in the PRC, and listed on the Main Board of The Stock Exchange of Hong Kong Limited on August 8, 2018. Income from investments in associates for the year ended December 31, 2018 includes: (a) a one-off gain amounting to RMB1,170 arising from the dilution of the Company's share in China Tower in respect of China Tower's listing including those released from the deferred gain from the Tower Assets Disposal; and (b) share of profits of associates. | |||
[2] | Shanghai Information Investment Incorporation ("Shanghai Info-investment") is established and operated in the PRC and is not traded on any stock exchange. |
Interests in Associates - Det_2
Interests in Associates - Details of Principal Associates Accounted for under Equity Method (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of associates [line items] | ||
Interests in associates | ¥ 38,051 | ¥ 35,726 |
China Tower [member] | ||
Disclosure of associates [line items] | ||
Interests in associates | ¥ 1,170 |
Interests in Associates - Sum_2
Interests in Associates - Summarized Financial Information of China Tower Corporation Limited and Reconciled to Carrying Amounts of Interests in Associates in Consolidated Financial Statements (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of associates [line items] | ||||
Current assets | ¥ 73,005 | ¥ 71,550 | ||
Non-current assets | 590,377 | 589,644 | ||
Current liabilities | 258,920 | 275,408 | ||
Non-current liabilities | 60,363 | 59,089 | ||
Operating revenues | 377,124 | 366,229 | ¥ 352,534 | |
Profit for the year | 21,338 | 18,761 | 18,123 | |
Other comprehensive income for the year | (95) | (552) | 25 | |
Total comprehensive income for the year | 21,243 | 18,209 | ¥ 18,148 | |
Reconcile to the Group's interests in the associate: | ||||
Non-controlling interests of the associate | (1,030) | (830) | ||
China Tower [member] | ||||
Disclosure of associates [line items] | ||||
Current assets | 31,799 | 30,517 | ||
Non-current assets | 283,565 | 292,126 | ||
Current liabilities | 114,759 | 150,438 | ||
Non-current liabilities | 20,103 | 44,710 | ||
Operating revenues | 71,819 | 68,665 | ||
Profit for the year | 2,650 | 1,943 | ||
Other comprehensive income for the year | 0 | 0 | ||
Total comprehensive income for the year | 2,650 | 1,943 | ||
Dividend received from the associate | 0 | 0 | ||
Reconcile to the Group's interests in the associate: | ||||
Net assets of the associate | 180,502 | 127,495 | ||
Non-controlling interests of the associate | ¥ 0 | ¥ 0 | ||
The Group's effective interest in the associate | [1] | 20.50% | 27.90% | |
The Group's share of net assets of the associate | ¥ 37,003 | ¥ 35,571 | ||
Adjustment for the remaining balance of the deferred gain from the Tower Assets Disposal | (1,013) | (1,580) | ||
Carrying amount of the interest in the associate in the consolidated financial statements of the Group | ¥ 35,990 | ¥ 33,991 | ||
[1] | China Tower Corporation Limited ("China Tower") is established and operated in the PRC, and listed on the Main Board of The Stock Exchange of Hong Kong Limited on August 8, 2018. Income from investments in associates for the year ended December 31, 2018 includes: (a) a one-off gain amounting to RMB1,170 arising from the dilution of the Company's share in China Tower in respect of China Tower's listing including those released from the deferred gain from the Tower Assets Disposal; and (b) share of profits of associates. |
Interests in Associates - Sum_3
Interests in Associates - Summarized Financial Information of Shanghai Information Investment Incorporation and Reconciled to Carrying Amounts of Interests in Associates in Consolidated Financial Statements (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of associates [line items] | ||||
Current assets | ¥ 73,005 | ¥ 71,550 | ||
Non-current assets | 590,377 | 589,644 | ||
Current liabilities | 258,920 | 275,408 | ||
Non-current liabilities | 60,363 | 59,089 | ||
Operating revenues | 377,124 | 366,229 | ¥ 352,534 | |
Profit for the year | 21,338 | 18,761 | 18,123 | |
Other comprehensive income for the year | (95) | (552) | 25 | |
Total comprehensive income for the year | 21,243 | 18,209 | ¥ 18,148 | |
Reconcile to the Group's interests in the associate: | ||||
Non-controlling interests of the associate | (1,030) | (830) | ||
Carrying amount of the interest in the associate in the consolidated financial statements of the Group | 38,051 | 35,726 | ||
Shanghai Information Investment Incorporation [member] | ||||
Disclosure of associates [line items] | ||||
Current assets | 7,181 | 7,146 | ||
Non-current assets | 8,592 | 8,049 | ||
Current liabilities | 6,615 | 5,835 | ||
Non-current liabilities | 1,985 | 2,673 | ||
Operating revenues | 4,337 | 4,313 | ||
Profit for the year | 586 | 563 | ||
Other comprehensive income for the year | (29) | 22 | ||
Total comprehensive income for the year | 557 | 585 | ||
Dividend received from the associate | 9 | 9 | ||
Reconcile to the Group's interests in the associate: | ||||
Net assets of the associate | 7,173 | 6,687 | ||
Non-controlling interests of the associate | ¥ (2,180) | ¥ (2,004) | ||
The Group's effective interest in the associate | 24.00% | [1] | 24.00% | |
The Group's share of net assets of the associate | ¥ 1,198 | ¥ 1,124 | ||
Carrying amount of the interest in the associate in the consolidated financial statements of the Group | ¥ 1,198 | ¥ 1,124 | ||
[1] | Shanghai Information Investment Incorporation ("Shanghai Info-investment") is established and operated in the PRC and is not traded on any stock exchange. |
Interests in Associates - Aggre
Interests in Associates - Aggregate Financial Information of Individually Immaterial Associates (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of associates [line items] | |||
The Group's share of profit of these associates | ¥ 2,104 | ¥ 877 | ¥ 91 |
The Group's share of other comprehensive income of these associates | 1,118 | (922) | |
Aggregate carrying amount of interests in these associates in the consolidated financial statements of the Group | 38,051 | 35,726 | |
Aggregated individually immaterial associates [member] | |||
Disclosure of associates [line items] | |||
The Group's share of profit of these associates | 14 | 36 | |
The Group's share of other comprehensive income of these associates | 2 | ||
The Group's share of total comprehensive income of these associates | 14 | 38 | |
Aggregate carrying amount of interests in these associates in the consolidated financial statements of the Group | ¥ 863 | ¥ 611 |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) ¥ in Millions | Dec. 31, 2017CNY (¥) |
Disclosure of financial assets [abstract] | |
Available-for-sale listed equity securities | ¥ 969 |
Other unlisted equity investments | 185 |
Investments | ¥ 1,154 |
Equity Instruments at Fair Va_3
Equity Instruments at Fair Value Through Other Comprehensive Income - Summary of Equity Instruments at Fair Value Through Other Comprehensive Income (Detail) ¥ in Millions | Dec. 31, 2018CNY (¥) | |
Disclosure of Fair Value of Investments in Equity Instruments Designated at Fair Value Through Other Comprehensive Income [Line Items] | ||
Fair Value Of Investments In Equity Instruments Designated As Measured At Fair Value Through Other Comprehensive Income | ¥ 852 | |
Equity securities listed in the mainland China [member] | ||
Disclosure of Fair Value of Investments in Equity Instruments Designated at Fair Value Through Other Comprehensive Income [Line Items] | ||
Fair Value Of Investments In Equity Instruments Designated As Measured At Fair Value Through Other Comprehensive Income | 638 | [1] |
Equity Securities Unlisted [member] | ||
Disclosure of Fair Value of Investments in Equity Instruments Designated at Fair Value Through Other Comprehensive Income [Line Items] | ||
Fair Value Of Investments In Equity Instruments Designated As Measured At Fair Value Through Other Comprehensive Income | ¥ 214 | [2] |
[1] | The above listed equity instruments represent ordinary shares of entities listed in the mainland China. These investments are not held for trading, instead, they are held for long-term strategic purposes. The directors of the Company have elected to designate these investments in equity instruments as of FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Group's strategy of holding these investments for long-term purposes and realizing their performance potential in the long run. | |
[2] | The above unlisted equity securities represent the Group's equity interests in various private entities established in the PRC. The directors of the Company have elected to designate these investments in equity instruments as of FVTOCI as they believe that the Group will hold these investments for long-term strategic purposes. |
Deferred Tax Assets and Liabi_3
Deferred Tax Assets and Liabilities - Components of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Assets | ¥ 6,544 | ¥ 5,479 | ||
Liabilities | (13,138) | (8,010) | ||
Net Balance | (6,594) | (2,531) | ¥ 291 | ¥ 2,594 |
Investments in equity instruments designated at fair value through other comprehensive income [member] | ||||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Liabilities | (87) | |||
Net Balance | (87) | |||
Provisions and impairment losses, primarily for credit losses [member] | ||||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Assets | 1,925 | 1,626 | ||
Net Balance | 1,925 | 1,626 | ||
Property, plant and equipment and others [member] | ||||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Assets | 4,580 | 3,782 | ||
Liabilities | (13,022) | (7,789) | ||
Net Balance | (8,442) | (4,007) | (1,006) | 1,569 |
Deferred revenues and installation costs [member] | ||||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Assets | 39 | 71 | ||
Liabilities | (29) | (52) | ||
Net Balance | ¥ 10 | 19 | 35 | 60 |
Available-for-sale equity securities [member] | ||||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Liabilities | (169) | |||
Net Balance | ¥ (169) | ¥ (269) | ¥ (326) |
Deferred Tax Assets and Liabi_4
Deferred Tax Assets and Liabilities - Movements in Deferred Tax Assets and Deferred Tax Liabilities (Detail) - CNY (¥) ¥ in Millions | Jan. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Beginning balance | ¥ (2,531) | ¥ (2,531) | ¥ 291 | ¥ 2,594 |
Increase (decrease) due to changes in accounting policy | (203) | (863) | ||
Recognized in consolidated statement of comprehensive income | (3,200) | (2,822) | (2,303) | |
Ending balance | (6,594) | (2,531) | 291 | |
Investments in equity instruments designated at fair value through other comprehensive income [member] | ||||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Increase (decrease) due to changes in accounting policy | (169) | |||
Recognized in consolidated statement of comprehensive income | 82 | |||
Ending balance | (87) | |||
Provisions and impairment losses, primarily for doubtful debts [member] | ||||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Beginning balance | 1,626 | 1,626 | 1,531 | 1,291 |
Increase (decrease) due to changes in accounting policy | 203 | |||
Recognized in consolidated statement of comprehensive income | 96 | 95 | 240 | |
Ending balance | 1,925 | 1,626 | 1,531 | |
Property, plant and equipment and others [member] | ||||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Beginning balance | (4,007) | (4,007) | (1,006) | 1,569 |
Increase (decrease) due to changes in accounting policy | (1,066) | |||
Recognized in consolidated statement of comprehensive income | (3,369) | (3,001) | (2,575) | |
Ending balance | (8,442) | (4,007) | (1,006) | |
Deferred revenues and installation costs [member] | ||||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Beginning balance | 19 | 19 | 35 | 60 |
Recognized in consolidated statement of comprehensive income | (9) | (16) | (25) | |
Ending balance | 10 | 19 | 35 | |
Available-for-sale equity securities [member] | ||||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Beginning balance | ¥ (169) | (169) | (269) | (326) |
Increase (decrease) due to changes in accounting policy | ¥ 169 | |||
Recognized in consolidated statement of comprehensive income | 100 | 57 | ||
Ending balance | ¥ (169) | ¥ (269) |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - Increase (decrease) due to application of IFRS 15 [member] - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of other assets [line items] | ||
Other assets | ¥ 4,840 | ¥ 3,349 |
Contract costs [member] | ||
Disclosure of other assets [line items] | ||
Other assets | 1,287 | |
Installation fees [member] | ||
Disclosure of other assets [line items] | ||
Other assets | 124 | 228 |
Other long-term prepaid expenses [member] | ||
Disclosure of other assets [line items] | ||
Other assets | ¥ 3,429 | ¥ 3,121 |
Other Assets - Summary of Oth_2
Other Assets - Summary of Other Assets (Parenthetical) (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Contract costs [member] | |
Disclosure of other assets [line items] | |
Capitalized costs | ¥ 1,744 |
Short-term and Long-term Debt -
Short-term and Long-term Debt - Summary of Short-term Debt (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt | ¥ 49,537 | ¥ 54,558 |
China Telecom Group [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt | 8,584 | 19,098 |
Loans from banks - unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt | 12,881 | 16,565 |
Super short-term commercial papers - unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt | 27,992 | 18,745 |
Other loans - unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt | ¥ 80 | ¥ 150 |
Short-term and Long-term Debt_2
Short-term and Long-term Debt - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Unutilized committed credit facilities amount | ¥ 150,693 | ¥ 154,793 |
Short-term debt [member] | Weighted average [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt instrument interest rate | 3.20% | 4.00% |
Short-term debt [member] | China Telecom Group [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt instrument interest rate | 3.50% | 3.50% |
Loans from banks - unsecured and other loans - unsecured [member] | Bottom of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt instrument interest rate | 3.50% | 3.50% |
Loans from banks - unsecured and other loans - unsecured [member] | Top of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt instrument interest rate | 4.60% | 7.30% |
Super short-term commercial papers - unsecured [member] | Bottom of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt instrument interest rate | 2.10% | 4.10% |
Super short-term commercial papers - unsecured [member] | Top of range [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Debt instrument interest rate | 3.30% | 4.20% |
Short-term and Long-term Debt_3
Short-term and Long-term Debt - Summary of Long-term Debt (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | ¥ 45,991 | ¥ 49,742 |
Less: Current portion | (1,139) | (1,146) |
Non-current portion | 44,852 | 48,596 |
Bank loans - unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 8,990 | 9,741 |
Bank loans - unsecured [member] | Renminbi denominated [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 8,455 | 9,148 |
Bank loans - unsecured [member] | US Dollars denominated [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 336 | 370 |
Bank loans - unsecured [member] | Euro denominated [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 199 | 223 |
Other loans - unsecured [member] | Renminbi denominated [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 1 | 1 |
Loans from China Telecom Group - unsecured [member] | Renminbi denominated [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | ¥ 37,000 | ¥ 40,000 |
Short-term and Long-term Debt_4
Short-term and Long-term Debt - Summary of Long-term Debt (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 25, 2017 | |
Long-term government loans with below-market interest rate [member] | Renminbi denominated [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 1.08% | ||
Long-term government loans with below-market interest rate [member] | Renminbi denominated [member] | Top of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 1.20% | ||
Bank loans - unsecured [member] | Renminbi denominated [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument maturity through | 2036 | 2036 | |
Bank loans - unsecured [member] | Renminbi denominated [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 1.08% | ||
Bank loans - unsecured [member] | Renminbi denominated [member] | Top of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 7.04% | ||
Bank loans - unsecured [member] | US Dollars denominated [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument maturity through | 2048 | 2048 | |
Bank loans - unsecured [member] | US Dollars denominated [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 1.00% | ||
Bank loans - unsecured [member] | US Dollars denominated [member] | Top of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 8.30% | ||
Bank loans - unsecured [member] | Euro denominated [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 2.30% | 2.30% | |
Debt instrument maturity through | 2032 | 2032 | |
Other loans - unsecured [member] | China Telecom Group [member] | Renminbi denominated [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 3.80% | ||
Other loans - unsecured [member] | China Telecom Group [member] | Renminbi denominated [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument maturity through | 3 years | ||
Repayment of partially loan | ¥ 3,000 | ||
Other loans - unsecured [member] | China Telecom Group [member] | Renminbi denominated [member] | Top of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument maturity through | 5 years |
Short-term and Long-term Debt_5
Short-term and Long-term Debt - Aggregate Maturities of Long-term Debt (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | ¥ 45,991 | ¥ 49,742 |
Within 1 year or on demand [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 1,139 | |
More than 1 year but less than 2 years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 18,091 | |
More than 2 years but less than 3 years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 1,029 | |
More than 3 years but less than 4 years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 20,992 | |
More than 4 years but less than 5 years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 923 | |
More than 5 years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | ¥ 3,817 |
Accounts Payable - Summary of A
Accounts Payable - Summary of Accounts Payable (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial liabilities [line items] | ||
Accounts payable | ¥ 107,887 | ¥ 119,321 |
China Telecom Group [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | 20,983 | 22,682 |
China Tower [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | 2,850 | 2,611 |
Third parties [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | 83,418 | 93,324 |
Other telecommunications operators in the PRC [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | ¥ 636 | ¥ 704 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables - Summary of Accrued Expenses and Other Payables (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial liabilities [line items] | ||
Accrued expenses | ¥ 33,811 | ¥ 24,864 |
Value-added tax payable | 484 | 645 |
Customer deposits and receipts in advance | 5,739 | 69,915 |
Accrued expenses and other payables | 43,497 | 98,695 |
Other telecommunications operators in the PRC [member] | ||
Disclosure of financial liabilities [line items] | ||
Amounts due to companies | 46 | 59 |
China Telecom Group [member] | ||
Disclosure of financial liabilities [line items] | ||
Amounts due to companies | 2,171 | 1,838 |
China Tower [member] | ||
Disclosure of financial liabilities [line items] | ||
Amounts due to companies | ¥ 1,246 | ¥ 1,374 |
Accrued Expenses and Other Pa_4
Accrued Expenses and Other Payables - Summary of Accrued Expenses and Other Payables (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 |
Disclosure of financial liabilities [line items] | |||
Liabilities arising from financing activities | ¥ 104,583 | ¥ 95,744 | ¥ 112,528 |
Consideration Payable In Respect of Acquisition of Non-controlling Interests of a Subsidiary of the Group [member] | |||
Disclosure of financial liabilities [line items] | |||
Liabilities arising from financing activities | ¥ 119 | ||
Consideration settlement date | January 23, 2018 | ||
Consideration Payable In Respect Of Acquisition [member] | |||
Disclosure of financial liabilities [line items] | |||
Liabilities arising from financing activities | ¥ 87 |
Contract Liabilities - Summary
Contract Liabilities - Summary of Contract Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Jan. 01, 2018 |
Disclosure of contract liabilities [line items] | ||
Contract liabilities | ¥ 55,783 | ¥ 62,175 |
Third parties [member] | ||
Disclosure of contract liabilities [line items] | ||
Contract liabilities | 55,638 | 62,001 |
China Telecom Group [member] | ||
Disclosure of contract liabilities [line items] | ||
Contract liabilities | ¥ 145 | ¥ 174 |
Deferred Revenues - Summary of
Deferred Revenues - Summary of Deferred Revenues (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 | |
Disclosure of Deferred Revenue [line items] | |||
Balance at end of last year | ¥ 3,061 | ¥ 3,558 | |
Calling cards | 390 | ||
Amortization of installation fees | (138) | (208) | |
Usage of calling cards | (384) | ||
Amortization of government grants | (307) | (295) | |
Balance at end of year | 1,829 | 3,061 | |
Current portion | 375 | 1,233 | |
Non-current portion | 1,454 | 1,828 | |
Increase (decrease) due to changes in accounting policy [member] | |||
Disclosure of Deferred Revenue [line items] | |||
Balance at end of last year | (787) | ||
Balance at end of year | (787) | ||
Restated balance [member] | |||
Disclosure of Deferred Revenue [line items] | |||
Balance at end of last year | ¥ 2,274 | 3,558 | |
Balance at end of year | ¥ 2,274 | ||
Current portion | ¥ 446 |
Share Capital - Summary of Shar
Share Capital - Summary of Share Capital (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of classes of share capital [line items] | ||
Share capital | ¥ 80,932 | ¥ 80,932 |
Domestic shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Share capital | 67,055 | 67,055 |
Overseas listed H shares [member] | ||
Disclosure of classes of share capital [line items] | ||
Share capital | ¥ 13,877 | ¥ 13,877 |
Share Capital - Summary of Sh_2
Share Capital - Summary of Share Capital (Parenthetical) (Detail) - ¥ / shares | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 10, 2002 |
Domestic shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of shares registered, issued and fully paid | 67,054,958,321 | 67,054,958,321 | |
Par value per share | ¥ 1 | ¥ 1 | ¥ 1 |
Overseas listed H shares [member] | |||
Disclosure of classes of share capital [line items] | |||
Number of shares registered, issued and fully paid | 13,877,410,000 | 13,877,410,000 | |
Par value per share | ¥ 1 | ¥ 1 |
Reserves - Summary of Reserves
Reserves - Summary of Reserves (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | ¥ 326,697 | ¥ 316,348 | ¥ 304,790 | |
Total comprehensive income for the year | 21,243 | 18,209 | 18,148 | |
Dividends | (7,568) | (7,530) | (6,489) | |
Ending balance | 344,099 | 326,697 | 316,348 | |
Acquisition of the Eighth Acquired Group | (87) | |||
Acquisition of non-controlling interests | (150) | |||
Others | (4) | |||
Contribution from non-controlling interests | 945 | |||
Changes in accounting policies [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | 2,974 | |||
Ending balance | 2,974 | |||
Restated balance [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | [1] | 329,671 | ||
Ending balance | [1] | 329,671 | ||
Capital reserve [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | 17,126 | 17,160 | 17,160 | |
Ending balance | 17,806 | 17,126 | 17,160 | |
Acquisition of the Eighth Acquired Group | (80) | |||
Acquisition of non-controlling interests | 46 | |||
Contribution from non-controlling interests | 680 | |||
Capital reserve [member] | Restated balance [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | [1] | 17,126 | ||
Ending balance | [1] | 17,126 | ||
Capital reserve [member] | Satcom Business and Zhonghehengtai [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Acquisition of the Eighth Acquired Group | (80) | |||
Share premium [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | 10,746 | 10,746 | 10,746 | |
Ending balance | 10,746 | 10,746 | 10,746 | |
Share premium [member] | Restated balance [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | [1] | 10,746 | ||
Ending balance | [1] | 10,746 | ||
Surplus reserve [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | 74,297 | 72,611 | 70,973 | |
Appropriations | 1,875 | 1,686 | 1,638 | |
Ending balance | 76,474 | 74,297 | 72,611 | |
Surplus reserve [member] | Changes in accounting policies [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | 302 | |||
Ending balance | 302 | |||
Surplus reserve [member] | Restated balance [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | [1] | 74,599 | ||
Ending balance | [1] | 74,599 | ||
Other reserves [Member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | 414 | 711 | 876 | |
Total comprehensive income for the year | (249) | (293) | (165) | |
Ending balance | 160 | 414 | 711 | |
Others | (4) | |||
Disposal of investments in equity instruments at fair value through other comprehensive income | (5) | |||
Other reserves [Member] | Restated balance [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | [1] | 414 | ||
Ending balance | [1] | 414 | ||
Exchange reserve [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | (881) | (622) | (812) | |
Total comprehensive income for the year | 154 | (259) | 190 | |
Ending balance | (727) | (881) | (622) | |
Exchange reserve [member] | Restated balance [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | [1] | (881) | ||
Ending balance | [1] | (881) | ||
Retained earnings [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | 143,233 | 133,839 | 123,948 | |
Total comprehensive income for the year | 21,210 | 18,617 | 18,018 | |
Dividends | (7,568) | (7,530) | (6,489) | |
Appropriations | (1,875) | (1,686) | (1,638) | |
Ending balance | 157,678 | 143,233 | 133,839 | |
Acquisition of the Eighth Acquired Group | (7) | |||
Disposal of investments in equity instruments at fair value through other comprehensive income | 5 | |||
Retained earnings [member] | Changes in accounting policies [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | 2,673 | |||
Ending balance | 2,673 | |||
Retained earnings [member] | Restated balance [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | [1] | 145,906 | ||
Ending balance | [1] | 145,906 | ||
Retained earnings [member] | Satcom Business and Zhonghehengtai [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Acquisition of the Eighth Acquired Group | (7) | |||
Reserves [Member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | 244,935 | 234,445 | 222,891 | |
Total comprehensive income for the year | 21,115 | 18,065 | 18,043 | |
Dividends | (7,568) | (7,530) | (6,489) | |
Ending balance | 262,137 | 244,935 | ¥ 234,445 | |
Acquisition of non-controlling interests | 46 | |||
Others | (4) | |||
Contribution from non-controlling interests | 680 | |||
Reserves [Member] | Changes in accounting policies [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | 2,975 | |||
Ending balance | 2,975 | |||
Reserves [Member] | Restated balance [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Beginning balance | ¥ 247,910 | |||
Ending balance | 247,910 | |||
Reserves [Member] | Satcom Business and Zhonghehengtai [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Acquisition of the Eighth Acquired Group | ¥ (87) | |||
[1] | restated |
Reserves - Summary of Reserve_2
Reserves - Summary of Reserves (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 |
Disclosure of reserves with in equity [line items] | ||||
Percentage of net profit the Company is required to transfer to statutory surplus reserve | 10.00% | |||
Percentage of registered capital when the appropriation to statutory surplus reserve may cease | 50.00% | |||
Minimum percentage of statutory reserves to registered capital, after bonus share issuance, that must be maintained | 25.00% | |||
Statutory surplus reserve | ¥ 30,395 | ¥ 30,395 | ¥ 28,218 | ¥ 28,520 |
Discretionary surplus reserve | 46,079 | 46,079 | 46,079 | |
Amount of retained earnings available for distribution | 133,076 | 133,076 | 120,270 | ¥ 122,987 |
Final dividend for financial year 2018 proposed after the end of the reporting period, total | ¥ 8,629 | |||
Statutory reserves [member] | ||||
Disclosure of reserves with in equity [line items] | ||||
Appropriations | ¥ 1,875 | ¥ 1,686 |
Operating Revenues - Disclosure
Operating Revenues - Disclosure of Disaggregation of Revenues (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2018CNY (¥) | |
Disclosure of revenue [line items] | |
Revenue from contracts with customers | ¥ 372,821 |
Revenue from other sources | 4,303 |
Total operating revenues | 377,124 |
Voice services [member] | |
Disclosure of revenue [line items] | |
Revenue from contracts with customers | 50,811 |
Internet services [member] | |
Disclosure of revenue [line items] | |
Revenue from contracts with customers | 190,871 |
Information and application services [member] | |
Disclosure of revenue [line items] | |
Revenue from contracts with customers | 83,478 |
Telecommunications network resource and equipment services [member] | |
Disclosure of revenue [line items] | |
Revenue from contracts with customers | 20,211 |
Others [member] | |
Disclosure of revenue [line items] | |
Revenue from contracts with customers | 27,450 |
A point in time [member] | |
Disclosure of revenue [line items] | |
Total operating revenues | 24,496 |
Over time [member] | |
Disclosure of revenue [line items] | |
Total operating revenues | ¥ 352,628 |
Operating Revenues - Additional
Operating Revenues - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Operating Revenue [line items] | |
Estimated period of recognizing revenues | 1 year to 3 years |
Bottom of range [member] | |
Disclosure of Operating Revenue [line items] | |
Estimated period of recognizing revenues | 1 year |
Top of range [member] | |
Disclosure of Operating Revenue [line items] | |
Estimated period of recognizing revenues | 3 years |
Operating Revenues - Components
Operating Revenues - Components of Operating Revenues (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue [abstract] | |||
Voice | ¥ 61,678 | ¥ 70,185 | |
Internet | 172,554 | 150,449 | |
Information and application services | 73,044 | 66,881 | |
Telecommunications network resource and equipment services | 19,125 | 17,781 | |
Others | 39,828 | 47,238 | |
Operating revenues | ¥ 377,124 | ¥ 366,229 | ¥ 352,534 |
Network Operations and Suppor_3
Network Operations and Support Expenses - Summary of Network Operations and Support Expenses (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expenses by nature [abstract] | |||
Operating and maintenance | ¥ 64,056 | ¥ 55,360 | ¥ 48,390 |
Utility | 13,477 | 12,522 | 13,148 |
Property rental and management fee | 29,434 | 26,926 | 22,327 |
Others | 9,095 | 9,161 | 10,291 |
Network operations and support expenses | ¥ 116,062 | ¥ 103,969 | ¥ 94,156 |
Personnel Expenses - Personnel
Personnel Expenses - Personnel Expenses by Functions (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of personnel expenses [line items] | |||
Personnel expenses | ¥ 59,736 | ¥ 56,043 | ¥ 54,504 |
Network operations and support [member] | |||
Disclosure of personnel expenses [line items] | |||
Personnel expenses | 40,388 | 38,574 | 36,286 |
Selling, general and administrative [member] | |||
Disclosure of personnel expenses [line items] | |||
Personnel expenses | ¥ 19,348 | ¥ 17,469 | ¥ 18,218 |
Other Operating Expenses - Summ
Other Operating Expenses - Summary of Other Operating Expenses (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Expenses by nature [abstract] | |||
Interconnection charges | ¥ 12,878 | ¥ 12,223 | ¥ 11,822 |
Cost of goods sold | 23,185 | 31,712 | 38,705 |
Donations | 20 | 23 | 19 |
Others | 1,614 | 1,654 | 1,740 |
Other operating expenses | ¥ 37,697 | ¥ 45,612 | ¥ 52,286 |
Net Finance Costs - Summary of
Net Finance Costs - Summary of Net Finance Costs (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of finance costs [Line Items] | |||
Interest expense incurred | ¥ 3,278 | ¥ 3,913 | ¥ 4,200 |
Less: Interest expense capitalized | (185) | (327) | (498) |
Net interest expense | 3,093 | 3,586 | 3,702 |
Interest income | (306) | (429) | (354) |
Foreign exchange losses | 423 | 664 | 209 |
Foreign exchange gains | (502) | (530) | (322) |
Net finance costs | ¥ 2,708 | ¥ 3,291 | ¥ 3,235 |
Bottom of range [member] | |||
Disclosure of finance costs [Line Items] | |||
Capitalization rate of interest expense in construction in progress per annum | 3.80% | 3.90% | 4.10% |
Top of range [member] | |||
Disclosure of finance costs [Line Items] | |||
Capitalization rate of interest expense in construction in progress per annum | 4.40% | 4.90% | 5.00% |
Income Tax - Summary of Income
Income Tax - Summary of Income Tax in Profit or Loss (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of income tax expense and deferred taxes [line items] | |||
Deferred taxation | ¥ 3,282 | ¥ 2,922 | ¥ 2,360 |
Actual income tax expense | 6,810 | 6,192 | 5,993 |
PRC [member] | |||
Disclosure of income tax expense and deferred taxes [line items] | |||
Provision for income tax | 3,408 | 3,147 | 3,478 |
Other tax jurisdictions [member] | |||
Disclosure of income tax expense and deferred taxes [line items] | |||
Provision for income tax | ¥ 120 | ¥ 123 | ¥ 155 |
Income Tax - Reconciliation of
Income Tax - Reconciliation of Expected Tax Expense with Actual Tax Expense (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||
Earnings before income tax | ¥ 28,148 | ¥ 24,953 | ¥ 24,116 |
Expected income tax expense at statutory tax rate of 25% | 7,037 | 6,238 | 6,029 |
Differential tax rate on PRC subsidiaries' and branches' income | (291) | (108) | (275) |
Differential tax rate on other subsidiaries' income | (58) | (82) | (53) |
Non-deductible expenses | 537 | 380 | 485 |
Non-taxable income | (319) | (112) | (105) |
Others | (96) | (124) | (88) |
Actual income tax expense | ¥ 6,810 | ¥ 6,192 | ¥ 5,993 |
Income Tax - Reconciliation o_2
Income Tax - Reconciliation of Expected Tax Expense with Actual Tax Expense (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of average effective tax rate and applicable tax rate [line items] | |||
Income tax rate | 25.00% | 25.00% | 25.00% |
Preferential income tax rate | 15.00% | ||
CHINA (member) | |||
Disclosure of reconciliation of average effective tax rate and applicable tax rate [line items] | |||
Income tax rate | 25.00% | ||
Other tax jurisdictions [member] | Bottom of range [member] | |||
Disclosure of reconciliation of average effective tax rate and applicable tax rate [line items] | |||
Income tax rate | 8.00% | ||
Other tax jurisdictions [member] | Top of range [member] | |||
Disclosure of reconciliation of average effective tax rate and applicable tax rate [line items] | |||
Income tax rate | 35.00% |
Dividends - Additional Informat
Dividends - Additional Information (Detail) ¥ / shares in Units, ¥ in Millions | Dec. 31, 2018CNY (¥) | Dec. 31, 2018$ / shares | Jul. 27, 2018CNY (¥)¥ / shares | Jul. 27, 2018$ / shares | Jul. 21, 2017CNY (¥)¥ / shares | Jul. 21, 2017$ / shares |
Disclosure of Dividends [abstract] | ||||||
Final dividend for financial year 2018 proposed after the end of the reporting period, per share | $ / shares | $ 0.125 | |||||
Final dividend for financial year 2018 proposed after the end of the reporting period, total | ¥ 8,629 | |||||
Dividends paid, per share | (per share) | ¥ 0.093512 | $ 0.115000 | ¥ 0.093043 | $ 0.105000 | ||
Dividends paid, total | ¥ 7,568 | ¥ 7,530 |
Basic Earnings Per Share - Addi
Basic Earnings Per Share - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [abstract] | |||
Profit attributable to equity holders of the Company | ¥ 21,210 | ¥ 18,617 | ¥ 18,018 |
Number of shares | 80,932,368,321 | 80,932,368,321 | 80,932,368,321 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments under Non-cancellable Operating Leases (Detail) ¥ in Millions | Dec. 31, 2018CNY (¥) |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments under non-cancellable operating leases | ¥ 65,805 |
Within 1 year or on demand [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments under non-cancellable operating leases | 15,658 |
More than 1 year but less than 2 years [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments under non-cancellable operating leases | 14,466 |
More than 2 years but less than 3 years [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments under non-cancellable operating leases | 13,440 |
More than 3 years but less than 4 years [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments under non-cancellable operating leases | 12,682 |
More than 4 years but less than 5 years [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments under non-cancellable operating leases | 3,461 |
More than 5 years [member] | |
Disclosure of finance lease and operating lease by lessee [line items] | |
Future minimum lease payments under non-cancellable operating leases | ¥ 6,098 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Material income and expense [abstract] | |||
Rental expense related to operating leases | ¥ 27,810 | ¥ 25,493 | ¥ 21,240 |
Commitments and Contingencies_3
Commitments and Contingencies - Capital Commitments (Detail) ¥ in Millions | Dec. 31, 2018CNY (¥) |
Disclosure of commitments [line items] | |
Capital commitments | ¥ 15,303 |
Property [member] | |
Disclosure of commitments [line items] | |
Capital commitments, Contracted for but not provided | 1,103 |
Telecommunications network plant and equipment [member] | |
Disclosure of commitments [line items] | |
Capital commitments, Contracted for but not provided | ¥ 14,200 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about financial instruments [line items] | ||
Transfers among instruments between levels of fair value | ¥ 0 | |
Loss allowance for accounts receivable | 4,680,000,000 | |
Loss allowance for contract assets | 8,000,000 | |
Loss allowance individually calculated | ¥ 734,000,000 | |
Fixed rate debt as a percentage of total debt | 99.80% | 99.50% |
Percentage of cash and cash equivalents denominated in Renminbi | 64.00% | 81.60% |
Percentage of short-term and long-term debt denominated in Renminbi | 99.40% | 99.40% |
Bottom of range [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Interest rates used by the Group in estimating the fair values of long-term debt | 1.00% | 1.00% |
Minimum period for managing liquidity risk | 3 months | |
Top of range [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Interest rates used by the Group in estimating the fair values of long-term debt | 4.90% | 4.90% |
Minimum period for managing liquidity risk | 6 months |
Financial Instruments - Carryin
Financial Instruments - Carrying Amounts and Fair Value of Long-term Debt (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial liabilities [line items] | ||
Carrying amount | ¥ 247,128 | ¥ 322,393 |
Long-term debt [member] | ||
Disclosure of financial liabilities [line items] | ||
Carrying amount | 45,991 | 49,742 |
Fair value | ¥ 44,968 | ¥ 48,256 |
Financial Instruments - Summary
Financial Instruments - Summary of Accounts Receivables (Detail) ¥ in Millions | Dec. 31, 2018CNY (¥) |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Loss allowance | ¥ 4,680 |
Telephone and Internet subscribers [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Gross carrying amount | 13,368 |
Loss allowance | ¥ 2,898 |
Telephone and Internet subscribers [member] | Current, within 1 month [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Expected loss rate | 2.00% |
Gross carrying amount | ¥ 8,376 |
Loss allowance | ¥ 158 |
Telephone and Internet subscribers [member] | 1 to 3 months [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Expected loss rate | 20.00% |
Gross carrying amount | ¥ 2,117 |
Loss allowance | ¥ 420 |
Telephone and Internet subscribers [member] | 4 to 6 months [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Expected loss rate | 60.00% |
Gross carrying amount | ¥ 839 |
Loss allowance | ¥ 502 |
Telephone and Internet subscribers [member] | 7 to 12 months [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Expected loss rate | 80.00% |
Gross carrying amount | ¥ 1,093 |
Loss allowance | ¥ 875 |
Telephone and Internet subscribers [member] | More than 12 months [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Expected loss rate | 100.00% |
Gross carrying amount | ¥ 943 |
Loss allowance | ¥ 943 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Accounts Receivable From Enterprise Customers and Contract Assets (Detail) ¥ in Millions | Dec. 31, 2018CNY (¥) |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Loss allowance | ¥ 4,680 |
Enterprise customers and contract assets [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Gross carrying amount | 6,280 |
Loss allowance | ¥ 1,056 |
Enterprise customers and contract assets [member] | Later than one month and not later than six months [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Expected loss rate | 2.00% |
Gross carrying amount | ¥ 4,478 |
Loss allowance | ¥ 109 |
Enterprise customers and contract assets [member] | 7 to 12 months [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Expected loss rate | 20.00% |
Gross carrying amount | ¥ 800 |
Loss allowance | ¥ 157 |
Enterprise customers and contract assets [member] | More than 1 year but less than 2 years [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Expected loss rate | 60.00% |
Gross carrying amount | ¥ 479 |
Loss allowance | ¥ 290 |
Enterprise customers and contract assets [member] | More than 2 years but less than 3 years [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Expected loss rate | 90.00% |
Gross carrying amount | ¥ 225 |
Loss allowance | ¥ 202 |
Enterprise customers and contract assets [member] | Later than three years [member] | |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | |
Expected loss rate | 100.00% |
Gross carrying amount | ¥ 298 |
Loss allowance | ¥ 298 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Movements in Loss Allowance Account in Respect of Accounts Receivables (Detail) - CNY (¥) ¥ in Millions | Jan. 01, 2018 | Dec. 31, 2018 |
Disclosure of financial assets [line items] | ||
Impairment losses for ECL | ¥ 920 | |
Accounts receivable [member] | ||
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | 4,761 | ¥ 4,761 |
At beginning of year | 4,761 | 4,761 |
Impairment losses for ECL | 2,008 | |
Accounts receivable written off | (2,089) | |
At end of year | 4,761 | 4,680 |
Accounts receivable [member] | IAS 39 [member] | ||
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | 3,842 | 3,842 |
At beginning of year | 3,842 | ¥ 3,842 |
At end of year | ||
Accounts receivable [member] | IFRS9 [member] | ||
Disclosure of financial assets [line items] | ||
Allowance account for credit losses of financial assets | 919 | |
At end of year | ¥ 919 |
Financial Instruments - Remaini
Financial Instruments - Remaining Contractual Maturities of Financial Liabilities Based on Contractual Undiscounted Cash Flows and Earliest Date of Repayment Required (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Short-term debt, carrying amount | ¥ 49,537 | ¥ 54,558 |
Long-term debt, carrying amount | 45,991 | 49,742 |
Accounts payable, carrying amount | 107,887 | 119,321 |
Accrued expenses and other payables, carrying amount | 43,497 | 98,695 |
Finance lease obligations, carrying amount | 216 | 77 |
Financial liabilities, carrying amount | 247,128 | 322,393 |
Short-term debt, contractual undiscounted cash flow | 51,091 | 55,682 |
Long-term debt, contractual undiscounted cash flow | 52,625 | 58,543 |
Accounts payable, contractual undiscounted cash flow | 107,887 | 119,321 |
Accrued expenses and other payables, contractual undiscounted cash flow | 43,497 | 98,695 |
Finance lease obligations, contractual undiscounted cash flow | 241 | 85 |
Financial liabilities, contractual undiscounted cash flow | 255,341 | 332,326 |
Within 1 year or on demand [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt, carrying amount | 1,139 | |
Short-term debt, contractual undiscounted cash flow | 51,091 | 55,682 |
Long-term debt, contractual undiscounted cash flow | 2,602 | 2,725 |
Accounts payable, contractual undiscounted cash flow | 107,887 | 119,321 |
Accrued expenses and other payables, contractual undiscounted cash flow | 43,497 | 98,695 |
Finance lease obligations, contractual undiscounted cash flow | 112 | 56 |
Financial liabilities, contractual undiscounted cash flow | 205,189 | 276,479 |
More than 1 year but less than 2 years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt, carrying amount | 18,091 | |
Long-term debt, contractual undiscounted cash flow | 19,604 | 2,716 |
Finance lease obligations, contractual undiscounted cash flow | 40 | 14 |
Financial liabilities, contractual undiscounted cash flow | 19,644 | 2,730 |
More than 2 years but less than 5 years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt, contractual undiscounted cash flow | 25,061 | 46,612 |
Finance lease obligations, contractual undiscounted cash flow | 82 | 13 |
Financial liabilities, contractual undiscounted cash flow | 25,143 | 46,625 |
More than 5 years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Long-term debt, carrying amount | 3,817 | |
Long-term debt, contractual undiscounted cash flow | 5,358 | 6,490 |
Finance lease obligations, contractual undiscounted cash flow | 7 | 2 |
Financial liabilities, contractual undiscounted cash flow | ¥ 5,365 | ¥ 6,492 |
Financial Instruments - Interes
Financial Instruments - Interest Rate Profile of Debt (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial instruments by type of interest rate [line items] | ||
Short-term debt | ¥ 49,537 | ¥ 54,558 |
Long-term debt | 45,991 | 49,742 |
Total debt | ¥ 95,528 | ¥ 104,300 |
Fixed rate debt as a percentage of total debt | 99.80% | 99.50% |
Fixed rate debt [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Short-term debt | ¥ 49,347 | ¥ 54,042 |
Long-term debt | 45,991 | 49,742 |
Total debt | ¥ 95,338 | ¥ 103,784 |
Fixed rate debt [member] | Short-term debt [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Effective interest rate | 3.20% | 4.00% |
Fixed rate debt [member] | Long-term debt [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Effective interest rate | 3.30% | 3.30% |
Variable rate debt [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Short-term debt | ¥ 190 | ¥ 516 |
Total debt | ¥ 190 | ¥ 516 |
Variable rate debt [member] | Short-term debt [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Effective interest rate | 4.20% | 4.10% |
Capital Management - Additional
Capital Management - Additional Information (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of objectives, policies and processes for managing capital [abstract] | ||
Total debt-to-total assets ratio | 14.40% | 15.80% |
Reconciliation of Liabilities_3
Reconciliation of Liabilities Arising from Financing Activities - Summary of Changes in Group's Liabilities Arising from Financing Activities (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Beginning balance | ¥ 104,583 | ¥ 112,528 | |
Financing cash flows | (17,138) | (16,147) | |
New finance leases | 200 | 55 | |
Interest expenses | 316 | 304 | |
Foreign exchange loss/(gain) | 18 | (8) | |
Acquisition of the Eighth Acquired Group | 87 | ||
Reduction of capital by non-controlling interests | 20 | ||
Acquisition of non-controlling interests | 150 | ||
Distribution to non-controlling interests | 177 | 89 | ¥ 86 |
Dividends declared | 7,568 | 7,530 | |
Others | (5) | ||
Ending balance | 95,744 | 104,583 | 112,528 |
Short-term Debt [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Beginning balance | 54,558 | 40,780 | |
Financing cash flows | (5,021) | 13,778 | |
Ending balance | 49,537 | 54,558 | 40,780 |
Long-term debt and payable [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Beginning balance | 49,742 | 71,646 | |
Financing cash flows | (4,073) | (22,191) | |
Interest expenses | 304 | 295 | |
Foreign exchange loss/(gain) | 18 | (8) | |
Ending balance | 45,991 | 49,742 | 71,646 |
Finance Lease Obligation [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Beginning balance | 77 | 102 | |
Financing cash flows | (73) | (84) | |
New finance leases | 200 | 55 | |
Interest expenses | 12 | 9 | |
Others | (5) | ||
Ending balance | 216 | 77 | ¥ 102 |
Other payables in respect of reduction of capital by non-controlling interests [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Financing cash flows | (20) | ||
Reduction of capital by non-controlling interests | 20 | ||
Consideration Payable In Respect Of Acquisition [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Beginning balance | 87 | ||
Financing cash flows | (87) | ||
Acquisition of the Eighth Acquired Group | 87 | ||
Ending balance | 87 | ||
Consideration Payable In Respect of Acquisition of Non-controlling Interests of a Subsidiary of the Group [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Beginning balance | 119 | ||
Financing cash flows | (119) | (31) | |
Acquisition of non-controlling interests | 150 | ||
Ending balance | 119 | ||
Dividend Payable [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Financing cash flows | (7,745) | (7,619) | |
Distribution to non-controlling interests | 177 | 89 | |
Dividends declared | ¥ 7,568 | ¥ 7,530 |
Reconciliation of Liabilities_4
Reconciliation of Liabilities Arising from Financing Activities - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | ||
Financing cash flows | ¥ (17,138) | ¥ (16,147) |
Contribution from non-controlling interests | 945 | |
Prepayments and other current assets | 23,619 | ¥ 22,128 |
E Surfing Pay [member] | ||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | ||
Contribution from non-controlling interests | 855 | |
Prepayments and other current assets | ¥ 90 |
Related Party Transactions - Pr
Related Party Transactions - Principal Transactions and Amounts Due From/To China Telecom Group (Detail) - China Telecom Group [member] - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [Line Items] | |||
Construction and engineering services | ¥ 16,396 | ¥ 18,672 | ¥ 18,936 |
Receiving ancillary services | 16,744 | 16,072 | 13,938 |
Interconnection revenues | 80 | 48 | 60 |
Interconnection charges | 204 | 193 | 232 |
Receiving community services | 3,296 | 3,028 | 2,871 |
Net transaction amount of centralized services | 519 | 727 | 523 |
Property lease income | 48 | 53 | 36 |
Property lease expenses | 713 | 654 | 559 |
Provision of IT services | 531 | 642 | 312 |
Receiving IT services | 1,895 | 1,812 | 1,597 |
Purchases of telecommunications equipment and materials | 3,760 | 4,248 | 5,199 |
Sales of telecommunications equipment and materials | 2,760 | 3,291 | 2,786 |
Internet applications channel services | 298 | 344 | 332 |
Interest on amounts due to and loans from China Telecom Group | 2,099 | 2,720 | 2,928 |
Others | 186 | 190 | ¥ 176 |
Accounts receivable | 1,327 | 1,502 | |
Contract assets | 24 | ||
Prepayments and other current assets | 1,035 | 774 | |
Total amounts due from related party | 2,386 | 2,276 | |
Accounts payable | 20,983 | 22,682 | |
Accrued expenses and other payables | 2,171 | 1,838 | |
Contract liabilities | 145 | ||
Short-term debt | 8,584 | 19,098 | |
Long-term debt | 37,000 | 40,000 | |
Total amounts due to related party | ¥ 68,883 | ¥ 83,618 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - CNY (¥) | Dec. 31, 2018 | Dec. 31, 2017 |
China Telecom Group [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Loss allowance | ¥ 0 | ¥ 0 |
China Tower [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Loss allowance | ¥ 0 | ¥ 0 |
Related Party Transactions - _2
Related Party Transactions - Principal Transactions and Amounts Due From/To China Tower (Detail) - China Tower [member] - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [Line Items] | |||
Tower assets lease and related fee | ¥ 16,063 | ¥ 15,389 | ¥ 11,657 |
Provision of IT services | 32 | 49 | ¥ 12 |
Accounts receivable | 10 | 5 | |
Prepayments and other current assets | 293 | 2,152 | |
Total amounts due from related party | 303 | 2,157 | |
Accounts payable | 2,850 | 2,611 | |
Accrued expenses and other payables | 1,246 | 1,374 | |
Total amounts due to related party | ¥ 4,096 | ¥ 3,985 |
Related Party Transactions - Ke
Related Party Transactions - Key Management Personnel Compensation (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [abstract] | |||
Short-term employee benefits. | ¥ 7,942 | ¥ 7,804 | ¥ 9,886 |
Post-employment benefits. | 799 | 816 | 801 |
Key management personnel compensation | ¥ 8,741 | ¥ 8,620 | ¥ 10,687 |
Post-employment Benefits Plans
Post-employment Benefits Plans - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [Line Items] | |||
Contribution to post-employment benefit plans | ¥ 7,256 | ¥ 6,884 | ¥ 6,656 |
Amount payable for contributions to defined contribution retirement plans | ¥ 675 | ¥ 569 | |
Bottom of range [member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Contributions to the retirement plans, percentage of the salaries, bonuses and certain allowances of the employees | 13.00% | ||
Top of range [member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Contributions to the retirement plans, percentage of the salaries, bonuses and certain allowances of the employees | 20.00% |
Share Appreciation Rights - Add
Share Appreciation Rights - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2018$ / shares | Dec. 31, 2018CNY (¥) | Dec. 31, 2017CNY (¥) | Nov. 30, 2023 | Nov. 30, 2022 | Nov. 30, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Proportion of share appreciation right to total remuneration | 40.00% | |||||
Share appreciation rights [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Share appreciation right units to eligible employees, number of units approved for granting | 2,394,000,000 | |||||
Share appreciation right units to eligible employees, exercise price | $ / shares | $ 3.81 | |||||
Share appreciation rights, contractual life | 5 years | |||||
Number of share appreciation right units exercised | 0 | 0 | ||||
Compensation expense in respect of share appreciation rights | ¥ 30,000,000 | ¥ 0 | ||||
Liability arising from share appreciation rights | ¥ 30,000,000 | ¥ 0 | ||||
Third Anniversary [member] | Share appreciation rights [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Share appreciation right units to eligible employees, maximum percentage exercisable | 33.30% | |||||
Fourth Anniversary [member] | Share appreciation rights [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Share appreciation right units to eligible employees, maximum percentage exercisable | 66.70% | |||||
Fifth Anniversary [member] | Share appreciation rights [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Share appreciation right units to eligible employees, maximum percentage exercisable | 100.00% |
Principal Subsidiaries - Detail
Principal Subsidiaries - Details of Subsidiaries which Principally Affected Results, Assets and Liabilities of the Group (Detail) £ in Thousands, ₫ in Millions, ₩ in Millions, ¥ in Millions, MOP$ in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||||||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018HKD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018VND (₫) | Dec. 31, 2018MYR (RM) | Dec. 31, 2018KRW (₩) | Dec. 31, 2018AUD ($) | Dec. 31, 2018SGD ($) | Dec. 31, 2018MOP (MOP$) | Dec. 31, 2018GBP (£) | Dec. 31, 2017CNY (¥) | |
Disclosure of subsidiaries [line Items] | |||||||||||
Registered/issued capital | ¥ 80,932 | ¥ 80,932 | |||||||||
China Telecom System Integration Co., Limited [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom System Integration Co., Limited | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Sep. 13, 2001 | ||||||||||
Place of incorporation and operation | PRC | ||||||||||
Principal activities | Provision of system integration and consulting services | ||||||||||
Registered/issued capital | ¥ 542 | ||||||||||
China Telecom Global Limited [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom Global Limited | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Feb. 25, 2000 | ||||||||||
Place of incorporation and operation | Hong Kong Special Administrative Region of the PRC | ||||||||||
Principal activities | Provision of telecommunications services | ||||||||||
Registered/issued capital | $ | $ 168 | ||||||||||
China Telecom (Americas) Corporation [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom (Americas) Corporation | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Nov. 22, 2001 | ||||||||||
Place of incorporation and operation | The United States of America | ||||||||||
Principal activities | Provision of telecommunications services | ||||||||||
Registered/issued capital | $ | $ 43 | ||||||||||
China Telecom Best Tone Information Service Co., Limited [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom Best Tone Information Service Co., Limited | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Aug. 15, 2007 | ||||||||||
Place of incorporation and operation | PRC | ||||||||||
Principal activities | Provision of Best Tone information services | ||||||||||
Registered/issued capital | ¥ 350 | ||||||||||
China Telecom (Macau) Company Limited [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom (Macau) Company Limited | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Oct. 15, 2004 | ||||||||||
Place of incorporation and operation | Macau Special Administrative Region of the PRC | ||||||||||
Principal activities | Provision of telecommunications services | ||||||||||
Registered/issued capital | MOP$ | MOP$ 60 | ||||||||||
Tianyi Telecom Terminals Company Limited [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | Tianyi Telecom Terminals Company Limited | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Jul. 1, 2005 | ||||||||||
Place of incorporation and operation | PRC | ||||||||||
Principal activities | Sales of telecommunications terminals | ||||||||||
Registered/issued capital | ¥ 500 | ||||||||||
China Telecom (Singapore) Pte. Limited [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom (Singapore) Pte. Limited | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Oct. 5, 2006 | ||||||||||
Place of incorporation and operation | Singapore | ||||||||||
Principal activities | Provision of international value-added network services | ||||||||||
Registered/issued capital | $ | $ 1,000,001 | ||||||||||
E-surfing Pay Co., Ltd [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | E-surfing Pay Co., Ltd | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Mar. 3, 2011 | ||||||||||
Place of incorporation and operation | PRC | ||||||||||
Principal activities | Provision of e-commerceservice | ||||||||||
Registered/issued capital | ¥ 500 | ||||||||||
Shenzhen Shekou Telecommunications Company Limited [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | Shenzhen Shekou Telecommunications Company Limited | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | May 5, 1984 | ||||||||||
Place of incorporation and operation | PRC | ||||||||||
Principal activities | Provision of telecommunications services | ||||||||||
Registered/issued capital | ¥ 91 | ||||||||||
China Telecom (Australia) Pty Ltd [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom (Australia) Pty Ltd | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Jan. 10, 2011 | ||||||||||
Place of incorporation and operation | Australia | ||||||||||
Principal activities | Provision of international value-added network services | ||||||||||
Registered/issued capital | $ | $ 1 | ||||||||||
China Telecom Korea Co., Ltd [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom Korea Co.,Ltd | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | May 16, 2012 | ||||||||||
Place of incorporation and operation | South Korea | ||||||||||
Principal activities | Provision of international value-added network services | ||||||||||
Registered/issued capital | ₩ | ₩ 500 | ||||||||||
China Telecom (Malaysia) SDN BHD [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom (Malaysia) SDN BHD | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Jun. 26, 2012 | ||||||||||
Place of incorporation and operation | Malaysia | ||||||||||
Principal activities | Provision of international value-added network services | ||||||||||
Registered/issued capital | RM | RM 3,723,500 | ||||||||||
China Telecom Information Technology (Vietnam) Co., Ltd [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom Information Technology (Vietnam) Co., Ltd | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Jul. 9, 2012 | ||||||||||
Place of incorporation and operation | Vietnam | ||||||||||
Principal activities | Provision of international value-added network services | ||||||||||
Registered/issued capital | ₫ | ₫ 10,500 | ||||||||||
iMUSIC Culture & Technology Co., Ltd. [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | iMUSIC Culture & Technology Co., Ltd. | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Jun. 9, 2013 | ||||||||||
Place of incorporation and operation | PRC | ||||||||||
Principal activities | Provision of music production and related information services | ||||||||||
Registered/issued capital | ¥ 250 | ||||||||||
China Telecom (Europe) Limited [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom (Europe) Limited | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Mar. 2, 2006 | ||||||||||
Place of incorporation and operation | The United Kingdom of Great Britain and Northern Ireland | ||||||||||
Principal activities | Provision of international value-added network services | ||||||||||
Registered/issued capital | £ | £ 16,150 | ||||||||||
Zhejiang Yixin Technology Co., Ltd. [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | Zhejiang Yixin Technology Co., Ltd. | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Aug. 19, 2013 | ||||||||||
Place of incorporation and operation | PRC | ||||||||||
Principal activities | Provision of instant messenger service | ||||||||||
Registered/issued capital | ¥ 11 | ||||||||||
Tianyi Capital Holding Co., Ltd. [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | Tianyi Capital Holding Co., Ltd. | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Nov. 30, 2017 | ||||||||||
Place of incorporation and operation | PRC | ||||||||||
Principal activities | Capital Investment and provision of consulting services | ||||||||||
Registered/issued capital | ¥ 5,000 | ||||||||||
China Telecom Leasing Corporation Limited [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom Leasing Corporation Limited | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Nov. 30, 2018 | ||||||||||
Place of incorporation and operation | PRC | ||||||||||
Principal activities | Provision of finance lease service | ||||||||||
Registered/issued capital | ¥ 5,000 |
Principal Subsidiaries - Additi
Principal Subsidiaries - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Shenzhen Shekou Telecommunications Company Limited [member] | |
Disclosure of subsidiaries [line Items] | |
Percentage owned by the company | 51.00% |
Zhejiang Yixin Technology Co., Ltd. [member] | |
Disclosure of subsidiaries [line Items] | |
Percentage owned by the company | 65.00% |
E-surfing Pay Co., Ltd [member] | |
Disclosure of subsidiaries [line Items] | |
Percentage owned by the company | 78.74% |
Accounting Estimates and Judg_2
Accounting Estimates and Judgments - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of changes in accounting estimates [Line Items] | |||
Provision for impairment loss for long-lived assets | ¥ 0 | ¥ 10 | ¥ 62 |
China Tower [member] | |||
Disclosure of changes in accounting estimates [Line Items] | |||
Current lease term | 5 years |
Possible Impact of Amendments_2
Possible Impact of Amendments to Standards , New Standards and Interpretations Issued but Not Yet Effective for the Annual Accounting Period Ended December 31, 2018 - Additional Information (Detail) ¥ in Millions | Dec. 31, 2018CNY (¥) |
Disclosure of expected impact of initial application of new standards or interpretations [abstract] | |
Future minimum lease payments under non-cancellable operating leases | ¥ 65,805 |
Event After the Reporting Per_2
Event After the Reporting Period - Additional Information (Detail) - CNY (¥) ¥ in Millions | Jan. 08, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Events After Reporting Period [line items] | |||
Share capital | ¥ 80,932 | ¥ 80,932 | |
Major business combination [member] | |||
Disclosure of Events After Reporting Period [line items] | |||
Share capital | ¥ 3,500 | ||
Percentage of equity interest acquired | 70.00% | ||
Major business combination [member] | China Telecommunications Corporation [member] | |||
Disclosure of Events After Reporting Period [line items] | |||
Share capital | ¥ 750 | ||
Percentage of equity interest acquired | 15.00% | ||
Major business combination [member] | China Communications Services Corporation Limited [member] | |||
Disclosure of Events After Reporting Period [line items] | |||
Share capital | ¥ 750 | ||
Percentage of equity interest acquired | 15.00% | ||
Major business combination [member] | China Telecom Group Finance Co Ltd [member] | |||
Disclosure of Events After Reporting Period [line items] | |||
Share capital | ¥ 5,000 | ||
Percentage owned by the company | 70.00% |