Cover Page
Cover Page | 12 Months Ended |
Dec. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
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 Voluntary Filers | No |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Address, Country | CN |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Common Stock, Shares Outstanding | 67,054,958,321 |
ICFR Auditor Attestation Flag | true |
ADS [Member] | |
Document Information [Line Items] | |
Trading Symbol | CHA |
Title of 12(b) Security | American depositary shares |
Security Exchange Name | NYSE |
Overseas listed H shares [member] | |
Document Information [Line Items] | |
No Trading Symbol Flag | true |
Title of 12(b) Security | H shares, par value RMB1.00 per share |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 13,877,410,000 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | ¥ 23,684 | ¥ 20,791 |
Short-term bank deposits and restricted cash | 9,408 | 3,628 |
Accounts receivable, net | 21,502 | 21,489 |
Contract assets | 604 | 474 |
Inventories | 3,317 | 2,880 |
Prepayments and other current assets | 25,167 | 22,219 |
Financial assets at fair value through profit or loss | 0 | 39 |
Income tax recoverable | 334 | 1,662 |
Total current assets | 84,016 | 73,182 |
Non-current assets | ||
Property, plant and equipment, net | 418,605 | 410,008 |
Construction in progress | 48,425 | 59,206 |
Right-of-use assets | 59,457 | 61,549 |
Goodwill | 29,920 | 29,923 |
Intangible assets | 18,508 | 16,349 |
Interests in associates | 40,303 | 39,192 |
Financial assets at fair value through profit or loss | 73 | 0 |
Equity instruments at fair value through other comprehensive income | 1,073 | 1,458 |
Deferred tax assets | 8,164 | 7,577 |
Other assets | 6,552 | 4,687 |
Total non-current assets | 631,080 | 629,949 |
Total assets | 715,096 | 703,131 |
Current liabilities | ||
Short-term debt | 27,994 | 42,527 |
Current portion of long-term debt | 1,126 | 4,444 |
Accounts payable | 107,578 | 102,616 |
Accrued expenses and other payables | 56,775 | 48,516 |
Contract liabilities | 63,849 | 54,388 |
Income tax payable | 350 | 243 |
Current portion of lease liabilities | 13,192 | 11,569 |
Current portion of deferred revenues | 278 | 358 |
Total current liabilities | 271,142 | 264,661 |
Non-current liabilities | ||
Long-term debt | 24,222 | 32,051 |
Lease liabilities | 27,455 | 30,577 |
Deferred revenues | 861 | 1,097 |
Deferred tax liabilities | 24,208 | 19,078 |
Other non-current liabilities | 1,033 | 627 |
Total non-current liabilities | 77,779 | 83,430 |
Total liabilities | 348,921 | 348,091 |
Equity | ||
Share capital | 80,932 | 80,932 |
Reserves | 282,524 | 271,578 |
Total equity attributable to equity holders of the Company | 363,456 | 352,510 |
Non-controlling interests | 2,719 | 2,530 |
Total equity | 366,175 | 355,040 |
Total liabilities and equity | ¥ 715,096 | ¥ 703,131 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - CNY (¥) ¥ in Millions, shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit or loss [abstract] | |||
Operating revenues | ¥ 393,561 | ¥ 375,734 | ¥ 377,124 |
Operating expenses | |||
Depreciation and amortization | (90,240) | (88,145) | (75,493) |
Network operations and support | (119,517) | (109,799) | (116,062) |
Selling, general and administrative | (55,059) | (57,361) | (59,422) |
Personnel expenses | (65,989) | (63,567) | (59,736) |
Other operating expenses | (29,074) | (27,792) | (37,697) |
Impairment loss on property, plant and equipment | (5,042) | 0 | 0 |
Total operating expenses | (364,921) | (346,664) | (348,410) |
Operating income | 28,640 | 29,070 | 28,714 |
Net finance costs | (3,014) | (3,639) | (2,708) |
Investment income | 60 | 30 | 38 |
Income from investments in associates | 1,701 | 1,573 | 2,104 |
Earnings before income tax | 27,387 | 27,034 | 28,148 |
Income tax | (6,307) | (6,322) | (6,810) |
Profit for the year | 21,080 | 20,712 | 21,338 |
Other comprehensive income for the year, Items that will not be reclassified subsequently to profit or loss: | |||
Change in fair value of investments in equity instruments at fair value through other comprehensive income | (385) | 604 | (324) |
Deferred tax on change in fair value of investments in equity instruments at fair value through other comprehensive income | 97 | (147) | 82 |
Other comprehensive income that will not be reclassified to profit or loss, net of tax | (288) | 457 | (242) |
Other comprehensive income for the year, Items that may be reclassified subsequently to profit or loss: | |||
Exchange difference on translation of financial statements of subsidiaries outside mainland China | (312) | 102 | 154 |
Share of other comprehensive income of associates | (4) | (2) | (7) |
Other comprehensive income that may be reclassified to profit or loss, net of tax | (316) | 100 | 147 |
Other comprehensive income for the year, net of tax | (604) | 557 | (95) |
Total comprehensive income for the year | 20,476 | 21,269 | 21,243 |
Profit attributable to | |||
Equity holders of the Company | 20,850 | 20,517 | 21,210 |
Non-controlling interests | 230 | 195 | 128 |
Profit for the year | 21,080 | 20,712 | 21,338 |
Total comprehensive income attributable to | |||
Equity holders of the Company | 20,244 | 21,074 | 21,115 |
Non-controlling interests | 232 | 195 | 128 |
Total comprehensive income for the year | ¥ 20,476 | ¥ 21,269 | ¥ 21,243 |
Basic earnings per share | ¥ 0.26 | ¥ 0.25 | ¥ 0.26 |
Number of shares | 80,932 | 80,932 | 80,932 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CNY (¥) ¥ in Millions | Total | Share capital [member] | Capital reserve [member] | Share premium [member] | Surplus reserve [member] | General risk 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, 2017 | ¥ 329,671 | ¥ 80,932 | ¥ 17,126 | ¥ 10,746 | ¥ 74,599 | ¥ 414 | ¥ (881) | ¥ 145,906 | ¥ 328,842 | ¥ 829 | |
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 to statutory surplus reserve | 1,875 | (1,875) | |||||||||
Ending balance (Change in accounting policies [member]) at Dec. 31, 2018 | (2,443) | (243) | (2,197) | (2,440) | (3) | ||||||
Ending balance (Restated balance [member]) at Dec. 31, 2018 | 341,656 | 80,932 | 17,806 | 10,746 | 76,231 | 160 | (727) | 155,481 | 340,629 | 1,027 | |
Ending balance at Dec. 31, 2018 | 344,099 | 80,932 | 17,806 | 10,746 | 76,474 | 160 | (727) | 157,678 | 343,069 | 1,030 | |
Profit for the year | 20,712 | 20,517 | 20,517 | 195 | |||||||
Other comprehensive income for the year | 557 | 455 | 102 | 557 | |||||||
Total comprehensive income for the year | 21,269 | 455 | 102 | 20,517 | 21,074 | 195 | |||||
Contribution from non-controlling interests | 1,500 | 1,500 | |||||||||
Acquisition of non-controlling interests | (8) | 3 | 3 | (11) | |||||||
Distribution to non-controlling interests | (181) | (181) | |||||||||
Share of an associate's other changes in reserves | (305) | (305) | (305) | ||||||||
Dividends | (8,891) | (8,891) | (8,891) | ||||||||
Appropriations to statutory surplus reserve | 1,812 | (1,812) | |||||||||
Appropriations to general risk reserve | ¥ 23 | (23) | |||||||||
Ending balance at Dec. 31, 2019 | 355,040 | 80,932 | 17,504 | 10,746 | 78,043 | 23 | 615 | (625) | 165,272 | 352,510 | 2,530 |
Profit for the year | 21,080 | 20,850 | 20,850 | 230 | |||||||
Other comprehensive income for the year | (604) | (294) | (312) | (606) | 2 | ||||||
Total comprehensive income for the year | 20,476 | (294) | (312) | 20,850 | 20,244 | 232 | |||||
Acquisition of non-controlling interests | (1) | (1) | |||||||||
Distribution to non-controlling interests | (42) | (42) | |||||||||
Share of an associate's other changes in reserves | (36) | (36) | (36) | ||||||||
Dividends | (9,262) | (9,262) | (9,262) | ||||||||
Appropriations to statutory surplus reserve | 1,811 | (1,811) | |||||||||
Appropriations to general risk reserve | 33 | (33) | |||||||||
Ending balance at Dec. 31, 2020 | ¥ 366,175 | ¥ 80,932 | ¥ 17,468 | ¥ 10,746 | ¥ 79,854 | ¥ 56 | ¥ 321 | ¥ (937) | ¥ 175,016 | ¥ 363,456 | ¥ 2,719 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement of cash flows [abstract] | ||||
Net cash from operating activities | [1] | ¥ 132,260 | ¥ 112,600 | ¥ 99,298 |
Cash flows used in investing activities | ||||
Capital expenditure | (88,748) | (82,853) | (83,835) | |
Payments for lease prepayments / right-of-use assets | (220) | (310) | (20) | |
Purchase of investments | (74) | (478) | (328) | |
Proceeds from disposal of property, plant and equipment | 863 | 2,514 | 1,866 | |
Proceeds from disposal of lease prepayments / right-of-use assets | 24 | 115 | 45 | |
Proceeds from disposal of investments | 47 | 296 | 96 | |
Net cash outflow from disposal of subsidiaries | 0 | 0 | (1) | |
Purchase of short-term bank deposits | (4,664) | (5,119) | (7,726) | |
Maturity of short-term bank deposits | 5,695 | 8,621 | 3,949 | |
Net cash used in investing activities | (87,077) | (77,214) | (85,954) | |
Cash flows used in financing activities | ||||
Repayments of principal of finance lease obligations / lease liabilities | (12,738) | (10,699) | (73) | |
Proceeds from bank debt and other loans | 81,049 | 103,315 | 97,829 | |
Repayments of bank debt and other loans | (106,982) | (120,107) | (106,923) | |
Payment of the acquisition price of the Eighth Acquisition (Note 1) | 0 | (87) | ||
Payment of dividends | (9,262) | (8,891) | (7,568) | |
Cash distributions to non-controlling interests | (42) | (181) | (177) | |
Payment for the acquisition of non-controlling interests | (1) | (8) | (119) | |
Contribution from non-controlling interests | 0 | 1,590 | 855 | |
Advanced payment received in respect of contribution from non-controlling interest | 978 | 0 | 0 | |
Net deposits with Finance Company | [2] | 5,728 | 4,098 | |
Increase in statutory reserve deposits placed by Finance Company | [2] | (837) | (405) | |
Reduction of capital by non-controlling interests | 0 | (20) | ||
Net cash used in financing activities | (42,107) | (31,288) | (16,283) | |
Net (decrease) / increase in cash and cash equivalents | 3,076 | 4,098 | (2,939) | |
Cash and cash equivalents at beginning of year | 20,791 | 16,666 | 19,410 | |
Effect of changes in foreign exchange rate | (183) | 27 | 195 | |
Cash and cash equivalents at end of year | ¥ 23,684 | ¥ 20,791 | ¥ 16,666 | |
[1] | Reconciliation of earnings before income tax to net cash from operating activities | |||
[2] | “Finance Company” refers to China Telecom Group Finance Co., Ltd., a subsidiary of the Company established on January 8, 2019, providing capital and financial management services to the member units of China Telecommunications Corporation. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Statement [LineItems] | ||||
Earnings before income tax | ¥ 27,387 | ¥ 27,034 | ¥ 28,148 | |
Adjustments for: | ||||
Depreciation and amortization | 90,240 | 88,145 | 75,493 | |
Impairment loss on property, plant and equipment | 5,042 | 0 | 0 | |
Impairment losses for financial assets and other items, net of reversal | 1,512 | 1,695 | 2,050 | |
Write down of inventories, net of reversal | 35 | 61 | 66 | |
Investment income | (60) | (30) | (38) | |
Income from investments in associates | (1,701) | (1,573) | (2,104) | |
Interest income | (582) | (492) | (306) | |
Interest expense | 3,433 | 4,090 | 3,093 | |
Net foreign exchange (gain) / loss | 163 | 41 | (79) | |
Net loss on retirement and disposal of long-lived assets | 3,827 | 2,710 | 1,757 | |
Increase in accounts receivable | (1,771) | (2,601) | (1,848) | |
Decrease / (increase) in contract assets | (132) | 4 | 170 | |
(Increase) / decrease in inventories | (474) | 1,891 | (622) | |
(Increase) / decrease in prepayments and other current assets | (116) | 1,045 | (1,412) | |
Decrease / (increase) in restricted cash | (6,097) | 89 | 63 | |
Decrease / (increase) in other assets | (2,971) | 414 | 271 | |
(Decrease) / increase in accounts payable | 5,689 | (2,657) | (3,181) | |
Increase in accrued expenses and other payables | 1,934 | 614 | 9,842 | |
(Decrease) / increase in contract liabilities | 9,516 | (1,412) | (6,414) | |
Decrease in deferred revenues | (55) | (90) | (138) | |
Cash generated from operations | 134,819 | 118,978 | 104,811 | |
Interest received | 594 | 474 | 306 | |
Interest paid | (3,524) | (4,200) | (3,094) | |
Investment income received | 603 | 133 | 34 | |
Income tax paid | (232) | (2,785) | (2,759) | |
Net cash from operating activities | [1] | ¥ 132,260 | ¥ 112,600 | ¥ 99,298 |
[1] | Reconciliation of earnings before income tax to net cash from operating activities |
Principal Activities, Organizat
Principal Activities, Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
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 by the PRC government and relevant regulations. 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 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. 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, 2020 | |
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”) In the current year, the Group has applied, for the first time, the Amendments to References to the Conceptual Framework in IFRS Standards and the following amendments to IFRSs issued by the International Accounting Standards Board (the “IASB”) that are mandatorily effective for the current year: • Amendments to IAS 1 and IAS 8, “Definition of Material” • Amendments to IFRS 3, “Definition of a Business” • Amendments to IFRS 9, IAS 39 and IFRS 7, “Interest Rate Benchmark Reform” In addition, the Group has early applied the Amendment to IFRS 16, “ Covid-19-Related Except as described below, the application of the Amendments to References to the Conceptual Framework in IFRS Standards and the above amendments to IFRSs in the current year has had no material effect on the Group’s consolidated financial statements. 2.1 Impacts on early application of Amendment to IFRS 16, “ Covid-19-Related ” The Group has applied the amendment for the first time in the current year. The amendment introduces a new practical expedient for lessees to elect not to assess whether a Covid-19-related Covid-19 • the change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change; • any reduction in lease payments affects only payments originally due on or before June 30, 2021; and • there is no substantive change to other terms and conditions of the lease. 2.1 Impacts on early application of Amendment to IFRS 16, “ Covid-19-Related ” (continued) As a result of applying the practical expedient, the Group accounts for changes in lease payments resulting from rent concessions the same way it would account for the changes applying IFRS 16, “ Leases The application has no impact to the opening reserves as of January 1, 2020. The amounts related to changes in lease payments that resulted from rent concessions in the profit or loss for the current year was not material to the consolidated financial statements. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
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 the IASB. For the purpose of preparation of the consolidated financial statements, information is considered material if such information is reasonably expected to influence decisions made by primary users. 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 9, 2021. 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 43. (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(h)). 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. 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(h)). 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) 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 12) 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(h)). 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. (g) 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(h)). Amortization of software is mainly calculated on a straight-line basis over the estimated useful lives, which range from 3 to 5 years. (h) Impairment of goodwill and long-lived assets The carrying amounts of the Group’s long-lived assets, including property, plant and equipment, right-of-use Before the Group recognizes an impairment loss for assets capitalized as contract costs under IFRS 15, “ Revenue from Contracts with Customers 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. (i) Interests in joint operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have the rights to the assets, and obligation for the liabilities, relating to the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses. When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a sale or contribution of assets), the Group is considered to be conducting the transaction with the other parties to the joint operation, and gains and losses resulting from the transactions are recognised in the consolidated financial statements only to the extent of other parties’ interests in the joint operation. When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a purchase of assets), the Group does not recognise its share of the gains and losses until it resells those assets to a third party. (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 trade 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. 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. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss. 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 (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 of fair value through other comprehensive income (“FVTOCI”) At 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. (iii) Financial assets at FVTPL Financial assets that do not meet the criteria for being measured at amortized cost or FVTOCI or designated as FVTOCI are measured at FVTPL. Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit or loss. The net gain or loss recognized in profit or loss includes any dividend or interest earned on the financial asset and is included in the “investment income” line item. Impairment of financial assets and other items subject to impairment assessment under IFRS 9, “Financial Instruments” (“IFRS 9”) The Group performs impairment assessment under ECL model on financial assets (including accounts receivable, financial assets included in prepayments and other current assets, short-term bank deposit, restricted cash, cash and cash equivalents) and other items (contract assets) which are subject to impairment assessment under IFRS 9. 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, 12-month 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 or credit-impaired debtors, 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, 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 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. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. 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 and forward-looking information. The Group uses a practical expedient in estimating ECL on accounts receivable using a provision matrix taking into consideration historical credit loss experience, adjusted for forward-looking information that is available without undue cost or effort. 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. Lifetime ECL for accounts receivable and contract assets are considered on a collective basis taking into consideration past due information and relevant credit information such as forward-looking macroeconomic information. For collective assessment, the Group takes into consideration the following characteristics when formulating the grouping: • 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. 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. 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 Company 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 consolidated 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. (m) Revenue from contract with customers 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 or 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 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Cash and Cash Equivalents | 4. CASH AND CASH EQUIVALENTS December 31, 2019 2020 RMB RMB Cash at bank and in hand 20,006 23,193 Time deposits with original maturity within three months 785 491 20,791 23,684 |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Dec. 31, 2020 | |
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Accounts Receivable, Net | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net, are analyzed as follows: December 31, Note 2019 2020 RMB RMB Third parties 24,438 23,688 China Telecom Group (i ) 1,188 1,784 China Tower (See definition in Note 14) 5 23 Other telecommunications operators in the PRC 550 441 26,181 25,936 Less: Allowance for credit losses (4,692 ) (4,434 ) 21,489 21,502 Note: (i) China Telecommunications Corporation together with its subsidiaries other than the Group are referred to as “China Telecom Group”. As of January 1, 2019, December 31, 2019 and 2020, the gross carrying amounts of accounts receivable from contracts with customers amounted to RMB25,155, RMB26,087 and RMB25,836, respectively. Aging analysis of accounts receivable from telephone and Internet subscribers based on the billing dates is as follows: December 31, 2019 2020 RMB RMB Current, within 1 month 7,545 7,068 1 to 3 months 1,777 1,601 4 to 12 months 1,822 1,481 More than 12 months 1,002 921 12,146 11,071 Less: Allowance for credit losses (2,803 ) (2,438 ) 9,343 8,633 Aging analysis of accounts receivable from other telecommunications operators and enterprise customers based on dates of rendering of services is as follows: December 31, 2019 2020 RMB RMB Current, within 1 month 4,701 5,331 1 to 3 months 2,964 2,785 4 to 12 months 3,768 3,801 More than 12 months 2,602 2,948 14,035 14,865 Less: Allowance for credit losses (1,889 ) (1,996 ) 12,146 12,869 As of December 31, 2019 and 2020, included in the net balance of the Group’s accounts receivable are debtors with aggregate carrying amount of RMB1,936 and RMB1,694 respectively, which are past due as of the reporting date. Details of impairment assessment of accounts receivable for the year ended December 31, 2019 and 2020 are set out in note 36. |
Contract Assets
Contract Assets | 12 Months Ended |
Dec. 31, 2020 | |
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Contract Assets | 6. CONTRACT ASSETS December 31, 2019 2020 RMB RMB Third parties 447 555 China Telecom Group 27 49 474 604 As at January 1, 2019, contract assets amounted to RMB478. 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, 2020 | |
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Inventories | 7. INVENTORIES December 31, 2019 2020 RMB RMB Materials and supplies 577 484 Goods for resale 2,303 2,833 2,880 3,317 |
Prepayments and Other Current A
Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2020 | |
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Prepayments and Other Current Assets | 8. PREPAYMENTS AND OTHER CURRENT ASSETS December 31, 2019 2020 RMB RMB Amounts due from China Telecom Group 1,233 1,189 Amounts due from China Tower (See definition in Note 14) 192 138 Amounts due from other telecommunications operators in the PRC 352 204 Prepayments in connection with construction work and equipment purchases 3,352 6,080 Prepaid expenses and deposits 2,993 2,994 Value-added tax recoverable 8,803 8,501 Other receivables 5,294 6,061 22,219 25,167 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2020 | |
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Property, Plant and Equipment, Net | 9. PROPERTY, PLANT AND EQUIPMENT, NET Buildings and improvements Telecom-munications network plant and equipment Furniture, fixture, motor vehicles and other equipment Total RMB RMB RMB RMB Cost/Deemed cost: Balance at January 1, 2019 102,541 854,382 31,558 988,481 Additions 554 274 277 1,105 Transferred from construction in progress 2,060 74,157 1,644 77,861 Retirement and disposal (751 ) (62,560 ) (2,419 ) (65,730 ) Reclassification (39 ) (536 ) 575 — Balance at December 31, 2019 104,365 865,717 31,635 1,001,717 Additions 425 139 253 817 Transferred from construction in progress 2,249 84,567 1,791 88,607 Retirement and disposal (1,435 ) (53,500 ) (3,039 ) (57,974 ) Reclassification (10 ) (512 ) 522 — Balance at December 31, 2020 105,594 896,411 31,162 1,033,167 Accumulated depreciation and impairment: Balance at January 1, 2019 (58,300 ) (498,986 ) (23,400 ) (580,686 ) Depreciation charge for the year (4,185 ) (64,672 ) (2,101 ) (70,958 ) Written back on retirement and disposal 681 56,943 2,311 59,935 Reclassification 19 358 (377 ) — Balance at December 31, 2019 (61,785 ) (506,357 ) (23,567 ) (591,709 ) Depreciation charge for the year (4,196 ) (64,208 ) (2,038 ) (70,442 ) Provision for impairment loss — (5,027 ) (15 ) (5,042 ) Written back on retirement and disposal 1,324 48,451 2,856 52,631 Reclassification 8 401 (409 ) — Balance at December 31, 2020 (64,649 ) (526,740 ) (23,173 ) (614,562 ) Net book value at December 31, 2020 40,945 369,671 7,989 418,605 Net book value at December 31, 2019 42,580 359,360 8,068 410,008 As a result of the continuing optimization of the Group’s 4G mobile network coverage and the scale deployment of the Group’s 5G mobile network, the utilisation of the Group’s 3G mobile network have been decreasing rapidly. For the year ended December 31, 2020, 3G handset data traffic only accounted for a low proportion of the Group’s total handset data traffic. As a result, the Group has identified an impairment indicator on the 3G specific mobile network assets (the “3G Assets”). Given the Group has made a commitment in the year to gradually terminate its use of 3G Assets in the near future, the Group performed an impairment test on the 3G Assets on the basis of each individual asset as of December 31, 2020. The recoverable amount of the 3G Assets was determined based on their fair value less costs of disposal, which was nominal. As a result, for the year ended December 31, 2020, an impairment loss on property, plant and equipment of RMB5,042 (2019: nil) was recognized. |
Construction in Progress
Construction in Progress | 12 Months Ended |
Dec. 31, 2020 | |
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Construction in Progress | 10. CONSTRUCTION IN PROGRESS RMB Balance at January 1, 2019 66,644 Additions 76,870 Transferred to property, plant and equipment (77,861 ) Transferred to intangible assets (6,447 ) Balance at December 31, 2019 59,206 Additions 84,145 Transferred to property, plant and equipment (88,607 ) Transferred to intangible assets (6,319 ) Balance at December 31, 2020 48,425 |
Right-of-Use Assets
Right-of-Use Assets | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Right-of-Use Assets | 11. RIGHT-OF-USE Leasehold Lands Buildings Telecommunications towers and related assets Equipment Others Total RMB RMB RMB RMB RMB RMB As of December 31, 2020 Carrying amount 20,441 8,672 18,866 11,230 248 59,457 As of December 31, 2019 Carrying amount 20,952 8,289 23,740 8,361 207 61,549 For the year ended December 31, 2020 Depreciation charge 745 3,626 7,642 2,151 78 14,242 For the year ended December 31, 2019 Depreciation charge 732 2,968 6,966 1,612 65 12,343 For the year ended December 31, 2020, expenses relating to short-term leases amounting to RMB1,077 (2019: RMB939, including those relating to other leases with lease terms ended within 12 months of the date of initial application of IFRS 16), expenses relating to leases of low value assets (excluding short-term leases of low value assets) amounting to RMB46 (2019: RMB45) and variable lease payments not included in the measurement of lease liabilities amounting to RMB5,151 (2019: RMB4,640), are recognized in profit or loss. For the year ended December 31, 2020, total cash outflow for leases is RMB20,798 (2019: RMB18,240), and additions to right-of-use The Group leases telecommunications towers and related assets, land and buildings, equipment and other assets for its operations. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. In determining the lease term and assessing the length of the non-cancellable The Group regularly entered into short-term leases for buildings and other assets. As of December 31, 2020 and 2019, the portfolio of short-term leases is similar to the portfolio of short-term leases to which the short-term lease expense disclosed above in this note. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
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Goodwill | 12. GOODWILL December 31, 2019 2020 RMB RMB Cost: Goodwill arising from acquisition of CDMA business 29,923 29,920 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 “Unicom Group”). 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 Unicom Group. This amount was subsequently settled by Unicom Group 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 Covid-19 Key assumptions used for the value in use calculation model are the number of subscribers, the average revenue per subscriber and the amount of operating cost. Management determined the number of subscribers, the average revenue per subscriber and the amount of operating cost based on historical trends and financial information and operational data. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
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Intangible Assets | 13. INTANGIBLE ASSETS Software RMB Cost: Balance at January 1, 2019 37,314 Additions 624 Transferred from construction in progress 6,447 Disposals (591 ) Balance at December 31, 2019 43,794 Additions 1,489 Transferred from construction in progress 6,319 Disposals (748 ) Balance at December 31, 2020 50,854 Accumulated amortization and impairment: Balance at January 1, 2019 (23,153 ) Amortization charge for the year (4,844 ) Written back on disposals 552 Balance at December 31, 2019 (27,445 ) Amortization charge for the year (5,556 ) Written back on disposals 655 Balance at December 31, 2020 (32,346 ) Net book value at December 31, 2020 18,508 Net book value at December 31, 2019 16,349 |
Interests in Associates
Interests in Associates | 12 Months Ended |
Dec. 31, 2020 | |
Investments accounted for using equity method [abstract] | |
Interests in Associates | 14. INTERESTS IN ASSOCIATES December 31, 2019 2020 RMB RMB Cost of investment in associates 37,173 37,168 Share of post-acquisition changes in net assets 2,019 3,135 39,192 40,303 Fair value of listed investments 55,601 34,625 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 equity interest Principal activities China Tower Corporation Limited (Note (i)) 20.5 % 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 December 31, 2019 2020 RMB RMB Current assets 40,995 43,204 Non-current 297,072 294,176 Current liabilities 128,364 106,635 Non-current 27,142 44,499 2019 2020 RMB RMB Operating revenues 76,428 81,099 Profit for the year 5,221 6,427 Other comprehensive income for the year — — Total comprehensive income for the year 5,221 6,427 Dividend received from China Tower 81 525 Reconcile to the Group’s interests in the associate: December 31, 2019 2020 RMB RMB Net assets of China Tower 182,561 186,246 Non-controlling (2 ) (1 ) The Group’s effective interest in China Tower 20.5 % 20.5 % The Group’s share of net assets of China Tower 37,425 38,180 Adjustment for the remaining balance of the deferred gain from the Tower Assets Disposal (865 ) (717 ) Carrying amount of the interest in China Tower in the consolidated financial statements of the Group 36,560 37,463 Shanghai Info-investment December 31, 2019 2020 RMB RMB Current assets 4,292 4,752 Non-current 5,203 5,878 Current liabilities 2,494 2,124 Non-current 787 1,803 2019 2020 RMB RMB Operating revenues 3,214 982 Profit for the year 1,158 641 Other comprehensive income for the year (7 ) (17 ) Total comprehensive income for the year 1,151 624 Dividend received from Shanghai Info-investment 9 14 Reconcile to the Group’s interests in the associate: December 31, 2019 2020 RMB RMB Net assets of Shanghai Info-investment 6,214 6,703 Non-controlling (144 ) (83 ) The Group’s effective interest in Shanghai Info-investment 24.0 % 24.0 % The Group’s share of net assets of Shanghai Info-investment 1,457 1,589 Carrying amount of the interest in Shanghai Info-investment in the consolidated financial statements of the Group 1,457 1,589 Aggregate financial information of the Group’s associates that are not individually material is disclosed below: 2019 2020 RMB RMB The Group’s share of profit of these associates 85 86 The Group’s share of total comprehensive income of these associates 85 86 December 31, 2019 2020 RMB RMB Aggregate carrying amount of interests in these associates in the consolidated financial statements of the Group 1,175 1,251 |
Equity Instruments at Fair Valu
Equity Instruments at Fair Value Through Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
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Equity Instruments at Fair Value Through Other Comprehensive Income | 15. EQUITY INSTRUMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME December 31, Notes 2019 2020 RMB RMB Equity securities listed in the mainland China (i ) 1,228 838 Unlisted equity securities (ii ) 230 235 1,458 1,073 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, 2020 | |
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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 2019 2020 2019 2020 2019 2020 RMB RMB RMB RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,953 2,069 — — 1,953 2,069 Property, plant and equipment, and others 4,862 5,299 (18,831 ) (24,067 ) (13,969 ) (18,768 ) Right-of-use 744 791 — — 744 791 Deferred revenues and installation costs 18 5 (13 ) (4 ) 5 1 Equity instruments at fair value through other comprehensive income — — (234 ) (137 ) (234 ) (137 ) Deferred tax assets/(liabilities) 7,577 8,164 (19,078 ) (24,208 ) (11,501 ) (16,044 ) Balance at January 1, 2018 Recognized in consolidated statement of comprehensive income Balance at December 31, 2018 RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,829 96 1,925 Property, plant and equipment, and others (5,073 ) (3,369 ) (8,442 ) Deferred revenues and installation costs 19 (9 ) 10 Equity instruments at fair value through other comprehensive income (169 ) 82 (87 ) Net deferred tax liabilities (3,394 ) (3,200 ) (6,594 ) Balance at December 31, 2018 Change in accounting policy Recognized in consolidated statement of comprehensive income Balance at December 31, 2019 RMB RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,925 — 28 1,953 Property, plant and equipment, and others (8,442 ) — (5,527 ) (13,969 ) Right-of-use — 676 68 744 Deferred revenues and installation costs 10 — (5 ) 5 Equity instruments at fair value through other comprehensive income (87 ) — (147 ) (234 ) Net deferred tax liabilities (6,594 ) 676 (5,583 ) (11,501 ) Balance at December 31, 2019 Recognized in consolidated statement of comprehensive income Balance at December 31, 2020 RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,953 116 2,069 Property, plant and equipment, and others (13,969 ) (4,799 ) (18,768 ) Right-of-use 744 47 791 Deferred revenues and installation costs 5 (4 ) 1 Equity instruments at fair value through other comprehensive income (234 ) 97 (137 ) Net deferred tax liabilities (11,501 ) (4,543 ) (16,044 ) |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2020 | |
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Other Assets | 17. OTHER ASSETS December 31, Note 2019 2020 RMB RMB Contract costs (i ) 988 1,151 Installation fees 56 16 Other long-term prepaid expenses and receivables 3,643 5,385 4,687 6,552 Note: (i) Contract costs capitalized as of December 31, 2019 and 2020 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 and the cost of installing terminal equipment at subscribers’ homes for the provision of Smart Family services of the Group. The amount of capitalized costs recognized in profit or loss during the years ended December 31, 2019 and 2020 was RMB1,367 and RMB1,234, respectively. There was no impairment in relation to the opening balance of capitalized costs or the costs capitalized during the year. |
Joint Operation
Joint Operation | 12 Months Ended |
Dec. 31, 2020 | |
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Joint Operation | 18. JOINT OPERATION On September 9, 2019, the Group entered into a framework cooperation agreement (the “Cooperation Agreement”) with China United Network Communications Corporation Limited (“China Unicom”) to co-build co-share Pursuant to the Cooperation Agreement, the Group and China Unicom co-share co-build co-share The 5G network co-build co-share co-build co-share Under the joint operation, the business and branding of each party continue to operate independently and the subscribers belong to each party respectively. Revenues from each party’s subscribers are recognised by each party, cost and expenses are assumed by each party respectively, while assets constructed by each party and the relevant liabilities are recognised and assumed by each respective party. |
Short-term and Long-term Debt
Short-term and Long-term Debt | 12 Months Ended |
Dec. 31, 2020 | |
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Short-term and Long-term Debt | 19. SHORT-TERM AND LONG-TERM DEBT Short-term debt comprises: December 31, 2019 2020 RMB RMB Loans from banks—unsecured 15,831 4,831 Super short-term commercial papers—unsecured 19,995 11,999 Other loans—unsecured 80 — Loans from China Telecom Group—unsecured 6,621 11,164 Total short-term debt 42,527 27,994 The weighted average interest rate of the Group’s total short-term debt as of December 31, 2019 and 2020 was 2.9% per annum and 2.8% per annum, respectively. As of December 31, 2020, the Group’s loans from banks and other loans bear interest at rates ranging from 3.3% to 4.4% (December 31, 2019: 3.5% to 4.4%) per annum, and are repayable within one year; as of December 31, 2020, super short-term commercial papers bear interest at rates ranging from 1.6% to 2.5% (December 31, 2019: 1.9% to 2.2%) per annum, of which RMB8,999 was repaid in January 2021 while the remaining balance will be repaid by March 12, 2021; the loans from China Telecom Group bear interest at rate of 3.1% (December 31, 2019: 3.5%) per annum and are repayable within one year. Long-term debt comprises: December 31, Interest rates and final maturity 2019 2020 RMB RMB Bank loans—unsecured Renminbi denominated (Note (i)) Interest rates ranging from 1.08% to 1.20% per annum with maturities through 2036 7,738 6,975 US Dollars denominated Interest rates ranging from 1.25% to 2.00% per annum with maturities through 2028 288 224 Euro denominated Interest rate of 2.30% per annum with maturities through 2032 173 152 8,199 7,351 Other loans—unsecured Renminbi denominated 1 1 Medium-term note—unsecured (Note (ii)) 4,995 4,996 Company bonds – unsecured (Note (iii)) — 2,000 Loans from China Telecom Group—unsecured Renminbi denominated (Note (iv)) 23,300 11,000 Total long-term debt 36,495 25,348 Less: Current portion (4,444 ) (1,126 ) Non-current 32,051 24,222 Notes: (i) The Group obtained long-term RMB denominated government loans with below-market interest rates ranging from 1.08% to 1.20% per annum through banks (the “Low-interest Low-interest Low-interest (ii) On January 22, 2019, the Group issued three-year RMB denominated medium-term note, amounting to RMB3,000, with interest rate of 3.42% per annum, and incurred issuing costs of RMB3. The medium-term note is unsecured and is repayable on January 21, 2022. On March 19, 2019, the Group issued three-year RMB denominated medium-term note, amounting to RMB2,000, with interest rate of 3.41% per annum and incurred issuing costs of RMB3. The medium-term note is unsecured and is repayable on March 18, 2022. (iii) On March 10, 2020, the Group issued three-year RMB denominated company bonds, amounting to RMB2,000, to qualified investors in Shanghai Stock Exchange, with interest rate of 2.90% per annum. The company bonds are unsecured and are payable on March 9, 2023. (iv) On December 25, 2017, the Group obtained long-term RMB denominated loans, amounting to RMB40,000, from China Telecommunications Corporation, with interest rate of 3.8% per annum, which are repayable within 3 to 5 years. The Group partially repaid these loans amounting to RMB3,000, RMB13,700 and RMB12,300, respectively, in 2018, 2019 and 2020. The aggregate maturities of the Group’s long-term debt subsequent to December 31, 2020 are as follows: RMB 2021 1,126 2022 17,081 2023 3,009 2024 984 2025 952 Thereafter 2,196 25,348 The Group’s short-term and long-term debt do not contain any financial covenants. As of December 31, 2019 and 2020, the Group had unutilized committed credit facilities amounting to RMB245,847 and RMB244,326, respectively. |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2020 | |
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Accounts Payable | 20. ACCOUNTS PAYABLE December 31, 2019 2020 RMB RMB Third parties 78,123 83,254 China Telecom Group 19,531 19,272 China Tower 4,312 4,344 Other telecommunications operators in the PRC 650 708 102,616 107,578 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, 2020 | |
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Accrued Expenses and Other Payables | 21. ACCRUED EXPENSES AND OTHER PAYABLES December 31, Note 2019 2020 RMB RMB Amounts due to China Telecom Group 6,069 11,279 Amounts due to China Tower 1,261 1,192 Amounts due to other telecommunications operators in the PRC 32 34 Accrued expenses 34,628 36,885 Advanced payment received in respect of contribution from non-controlling (i) — 978 Value-added tax payable 564 600 Customer deposits and receipts in advance 5,962 5,807 48,516 56,775 Notes: (i) For the year ended 31 December 2020, E-surfing non-controlling |
Contract Liabilities
Contract Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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Contract Liabilities | 22. CONTRACT LIABILITIES December 31, 2019 2020 RMB RMB Third parties 54,225 63,629 China Telecom Group 162 217 China Tower 1 3 54,388 63,849 As of January 1, 2019, contract liabilities amounted to RMB55,783. Majority of contract liabilities as of December 31, 2019 was recognized as operating revenues for the year ended December 31, 2020. |
Lease Liabilities
Lease Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
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Lease Liabilities | 23. LEASE LIABILITIES December 31, 2019 2020 RMB RMB Within one year 11,569 13,192 Within a period of more than one year but not more than two years 10,887 12,585 Within a period of more than two year but not more than five years 16,255 11,138 Within a period of more than five years 3,435 3,732 42,146 40,647 Less: Current portion (11,569 ) (13,192 ) Non-current 30,577 27,455 |
Deferred Revenues
Deferred Revenues | 12 Months Ended |
Dec. 31, 2020 | |
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Deferred Revenues | 24. DEFERRED REVENUES Deferred revenues as of December 31, 2020 and 2019 mainly represent the unearned portion of installation fees for wireline services received from customers (Note 17), and the unamortized portion of government grants (Note 19). 2019 2020 RMB RMB Balance at beginning of the year 1,829 1,455 Reductions for the year: Amortization of installation fees (90 ) (55 ) Amortization of government grants (284 ) (261 ) Balance at end of year 1,455 1,139 Representing: Current portion 358 278 Non-current 1,097 861 1,455 1,139 |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2020 | |
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Share Capital | 25. SHARE CAPITAL December 31, 2019 2020 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 in all material respects. |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2020 | |
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Reserves | 26. RESERVES Capital reserve Share premium Surplus reserves General risk reserve Other reserves Exchange reserve Retained earnings Total RMB RMB RMB RMB RMB RMB RMB RMB (Note (i)) (Note (iii)) (Note (v)) (Note (ii)) Balance as of January 1, 2018 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 33) — — — — — — (7,568 ) (7,568 ) Appropriations to statutory surplus reserve (Note (iii)) — — 1,875 — — — (1,875 ) — Balance as of December 31, 2018 17,806 10,746 76,474 — 160 (727 ) 157,678 262,137 Change in accounting policy (Note 2) — — (243 ) — — — (2,197 ) (2,440 ) Balance as of January 1, 2019, as restated 17,806 10,746 76,231 — 160 (727 ) 155,481 259,697 Total comprehensive income for the year — — — — 455 102 20,517 21,074 Acquisition of non-controlling 3 — — — — — — 3 Share of an associate’s other changes in reserves (305 ) — — — — — — (305 ) Dividends (Note 33) — — — — — — (8,891 ) (8,891 ) Appropriations to statutory surplus reserve (Note (iii)) — — 1,812 — — — (1,812 ) — Appropriations to general risk reserve (Note (v)) — — — 23 — — (23 ) — Balance as of December 31, 2019 17,504 10,746 78,043 23 615 (625 ) 165,272 271,578 Total comprehensive income for the year — — — — (294 ) (312 ) 20,850 20,244 Share of associates’ other changes in reserves (36 ) — — — — — — (36 ) Dividends (Note 33) — — — — — — (9,262 ) (9,262 ) Appropriations to statutory surplus reserve (Note (iii)) — — 1,811 — — — (1,811 ) — Appropriations to general risk reserve (Note (v)) — — — 33 — — (33 ) — Balance as of December 31, 2020 17,468 10,746 79,854 56 321 (937 ) 175,016 282,524 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 at FVTOCI and the deferred tax liabilities recognized due to the change in fair value of those 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, 2020 and 2019, 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, 2020, the Company transferred RMB1,811 (2019: RMB1,812), being 10% of the year’s net profit, to this reserve. As of December 31, 2019 and December 31, 2020, the amount of statutory surplus reserve was RMB31,964 and RMB33,775, respectively. The Company did not transfer any discretionary surplus reserve for the years ended December 31, 2019 and 2020. As of December 31, 2019 and 2020, 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, 2019 and December 31, 2020, the amount of retained earnings available for distribution was RMB138,312 and RMB145,351 respectively, being the amount determined in accordance with IFRSs. Final dividend of approximately RMB8,403 in respect of the financial year 2020 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 33). (v) Pursuant to “Requirements on Impairment Allowance for Financial Institutions” (Caijin [2012] No. 20) issued by the Ministry of Finance of the PRC effective on July 1, 2012 (the “Requirements”), the Group’s subsidiaries, mainly Finance Company, establish a general risk reserve within equity, through appropriation of retained earnings, to address unidentified potential losses relating to risk assets. The general risk reserve balance should not be less than 1.5% of the ending balance of risk assets, as defined in the Requirements. |
Operating Revenues
Operating Revenues | 12 Months Ended |
Dec. 31, 2020 | |
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Operating Revenues | 27. OPERATING REVENUES Disaggregation of revenues Note 2018 2019 2020 RMB RMB RMB Type of goods or services Revenue from contracts with customers Voice (i ) 50,811 45,146 40,866 Internet (ii ) 190,871 197,244 208,019 Information and application services (iii ) 83,478 87,623 96,885 Telecommunications network resource and equipment services (iv ) 20,211 21,978 22,623 Sales of goods and others (v ) 27,450 17,906 19,598 Subtotal 372,821 369,897 387,991 Revenue from other sources (vi ) 4,303 5,837 5,570 Total operating revenues 377,124 375,734 393,561 Timing of revenue recognition A point in time 24,496 14,591 16,141 Over time 352,628 361,143 377,420 Total operating revenues 377,124 375,734 393,561 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 charged 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, digitalized platform services, Smart Family, caller ID service and short messaging service and etc. (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, 2019 and 2020, 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. |
Network Operations and Support
Network Operations and Support Expenses | 12 Months Ended |
Dec. 31, 2020 | |
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Network Operations and Support Expenses | 28. NETWORK OPERATIONS AND SUPPORT EXPENSES Year ended December 31, Note 2018 2019 2020 RMB RMB RMB Operating and maintenance 64,056 65,087 70,943 Utility 13,477 13,818 14,637 Network resources usage and related fee (i ) 29,434 20,976 22,766 Others 9,095 9,918 11,171 116,062 109,799 119,517 Note: (i) Network resources usage and related fee includes the variable lease payments not depending on an index or a rate and fee for non-lease low-value non-lease |
Personnel Expenses
Personnel Expenses | 12 Months Ended |
Dec. 31, 2020 | |
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Personnel Expenses | 29. PERSONNEL EXPENSES Personnel expenses are attributable to the following functions: Year ended December 31, 2018 2019 2020 RMB RMB RMB Network operations and support 40,388 42,214 43,260 Selling, general and administrative 19,348 21,353 22,729 59,736 63,567 65,989 |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2020 | |
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Other Operating Expenses | 30. OTHER OPERATING EXPENSES Year ended December 31, Notes 2018 2019 2020 RMB RMB RMB Interconnection charges (i ) 12,878 12,683 12,050 Cost of goods sold (ii ) 23,185 13,413 15,440 Donations 20 1 13 Others (iii ) 1,614 1,695 1,571 37,697 27,792 29,074 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, 2020 | |
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Net Finance Costs | 31. NET FINANCE COSTS Year ended December 31, 2018 2019 2020 RMB RMB RMB Interest expense on short-term and long-term debts 3,278 2,623 1,981 Interest expense on lease liabilities — 1,607 1,566 Less: Interest expense capitalized* (185 ) (140 ) (114 ) Net interest expense 3,093 4,090 3,433 Interest income (306 ) (492 ) (582 ) Foreign exchange losses 423 680 1,018 Foreign exchange gains (502 ) (639 ) (855 ) 2,708 3,639 3,014 * Interest expense was capitalized in construction in progress at the following rates per annum 3.8%-4.4 % 3.5%-4.4 % 3.0%-4.4 % |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2020 | |
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Income Tax | 32. INCOME TAX Income tax in the profit or loss comprises: Year ended December 31, 2018 2019 2020 RMB RMB RMB Provision for PRC income tax 3,408 781 1,532 Provision for income tax of other tax jurisdictions 120 105 135 Deferred taxation 3,282 5,436 4,640 6,810 6,322 6,307 A reconciliation of the expected tax expense with the actual tax expense is as follows: Year ended December 31, Notes 2018 2019 2020 RMB RMB RMB Earnings before income tax 28,148 27,034 27,387 Expected income tax expense at statutory tax rate of 25% (i ) 7,037 6,759 6,847 Differential tax rate on PRC subsidiaries’ and branches’ income (i ) (291 ) (315 ) (306 ) Differential tax rate on other subsidiaries’ income (ii ) (58 ) (129 ) (47 ) Non-deductible (iii ) 537 979 915 Non-taxable (iv ) (319 ) (460 ) (576 ) Effect of change in tax rate (v ) — — (29 ) Others (vi ) (96 ) (512 ) (497 ) Actual income tax expense 6,810 6,322 6,307 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) Hainan branch of the Company obtained approval from tax authority to adopt the preferential income tax rate of 15% during the current year. Accordingly, deferred tax assets and deferred tax liabilities that were expected to be recovered or settled after December 31, 2019 were adjusted to reflect the change in tax rate. The overall effect of change in tax rate amounting to RMB29 was credited to the consolidated statement of comprehensive income. (vi) Amounts primarily represent settlement of tax filing differences of prior year annual tax return and other tax benefits such as additional tax deduction on research and development expenses. |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2020 | |
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Dividends | 33. DIVIDENDS Pursuant to a resolution passed at the Board of Directors’ meeting on March 9, 2021, a final dividend of equivalent to HK$0.125 per share totaling approximately RMB8,403 for the year ended December 31, 2020 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, 2020. Pursuant to the shareholders’ approval at the Annual General Meeting held on May 26, 2020, a final dividend of RMB0.114441 (equivalent to HK$0.125) per share totaling RMB9,262 in respect of the year ended December 31, 2019 was declared, and paid on July 31, 2020. Pursuant to the shareholders’ approval at the Annual General Meeting held on May 29, 2019, a final dividend of RMB0.109851 (equivalent to HK$0.125) per share totaling RMB8,891 in respect of the year ended December 31, 2018 was declared, and paid on July 26, 2019. |
Basic Earnings Per Share
Basic Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
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Basic Earnings Per Share | 34. BASIC EARNINGS PER SHARE The calculation of basic earnings per share for the years ended December 31, 2018, 2019 and 2020 is based on the profit attributable to equity holders of the Company of RMB21,210, RMB20,517 and RMB20,850, respectively, divided by 80,932,368,321 shares. Diluted earnings per share were equivalent to basic earnings per share, 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, 2020 | |
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Commitments and Contingencies | 35. COMMITMENTS AND CONTINGENCIES Capital commitments As of December 31, 2020, the Group had capital commitments as follows: RMB Contracted for but not provided - property 1,202 - telecommunications network plant and equipment 18,997 20,199 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, 2019 and 2020, 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 unfavourable 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, 2020 | |
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Financial Instruments | 36. FINANCIAL INSTRUMENTS Financial assets of the Group include cash and cash equivalents, bank deposits and restricted cash, equity instrument, accounts receivable, financial assets at FVTPL 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. (a) Fair Value Measurements Based on IFRS 13, “Fair Value Measurement”, the fair value of each financial instrument is categorized in its entirety based on the lowest level of input that is significant to that fair value measurement. The levels are defined as follows: • 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 financial 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 the Group’s equity instruments at fair value through other comprehensive income are categorized as level 1 financial instruments. The fair value of the Group’s listed equity securities investment, which amounted to RMB1,228 and RMB838 as of December 31, 2019 and 2020 respectively was based on quoted market price on PRC stock exchanges. 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 2.9% to 4.9% (2019: 3.7% to 4.9%). As of December 31, 2019 and 2020, the carrying amounts and fair value of the Group’s long-term debt was as follows: December 31, 2019 December 31, 2020 Carrying amount Fair value Carrying amount Fair value RMB RMB RMB RMB Long-term debt 36,495 35,780 25,348 25,294 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, short-term bank deposits and restricted cash 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 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, or individually assessed for those debtors with significant balances or credit impaired debtors. 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 receivables and contract assets from telephone and Internet subscribers and enterprise customers, respectively, as of December 31, 2019 and 2020: Accounts receivable from telephone and Internet subscribers: December 31, 2019 Expected Gross carrying Loss % RMB RMB Current, within 1 month 2 % 7,545 141 1 to 3 months 20 % 1,777 349 4 to 6 months 60 % 739 444 7 to 12 months 80 % 1,083 867 Over 12 months 100 % 1,002 1,002 12,146 2,803 December 31, 2020 Expected Gross carrying Loss % RMB RMB Current, within 1 month 2 % 7,068 132 1 to 3 months 20 % 1,601 317 4 to 6 months 60 % 561 333 7 to 12 months 80 % 920 735 Over 12 months 100 % 921 921 11,071 2,438 Accounts receivable and contract assets from enterprise customers: Due to greater financial uncertainty triggered by the Covid-19 December 31, 2019 Expected Gross carrying Loss % RMB RMB 1 to 6 months 2 % 5,452 102 7 to 12 months 20 % 1,428 239 1 to 2 years 60 % 621 353 2 to 3 years 90 % 258 224 Over 3 years 100 % 371 364 8,130 1,282 December 31, 2020 Expected Gross carrying Loss % RMB RMB 1 to 6 months 2 % 6,031 124 7 to 12 months 22 % 1,120 232 1 to 2 years 67 % 685 445 2 to 3 years 100 % 347 333 Over 3 years 100 % 324 324 8,507 1,458 As of December 31, 2020, the loss allowance for accounts receivable and contract assets was RMB4,434 and RMB9 (2019: RMB4,692 and RMB8), respectively. Loss allowance of RMB556 and RMB615 as of December 31, 2020 and 2019, respectively, which was not calculated collectively in the above tables, was made individually on debtors with significant balances or credit impaired debtors. Expected loss rates are based on actual loss experience over the past 1 to 3 years. 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 years ended December 31, 2018, 2019 and 2020 is as follows: 2018 2019 2020 RMB RMB RMB At beginning of year 4,761 4,680 4,692 Impairment losses for ECL 2,008 1,653 1,382 Amounts written off (2,089 ) (1,641 ) (1,640 ) At end of year 4,680 4,692 4,434 (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 and lease 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: 2019 Carrying amount Total contractual undiscounted cash flow Within 1 year or on demand More than 1 year but less than 2 years More than 2 years but less than 5 years More than 5 years RMB RMB RMB RMB RMB RMB Short-term debt 42,527 43,697 43,697 — — — Long-term debt 36,495 40,791 4,625 1,184 30,824 4,158 Accounts payable 102,616 102,616 102,616 — — — Accrued expenses and other payables 48,516 48,516 48,516 — — — Lease liabilities 42,146 45,535 12,846 11,794 17,266 3,629 272,300 281,155 212,300 12,978 48,090 7,787 2020 Carrying amount Total contractual undiscounted cash flow Within 1 year or on demand More than 1 year but less than 2 years More than 2 years but less than 5 years More than 5 years RMB RMB RMB RMB RMB RMB Short-term debt 27,994 28,417 28,417 — — — Long-term debt 25,348 27,805 1,410 17,838 5,609 2,948 Accounts payable 107,578 107,578 107,578 — — — Accrued expenses and other payables 56,775 56,775 56,775 — — — Lease liabilities 40,647 43,896 14,449 13,363 12,110 3,974 258,342 264,471 208,629 31,201 17,719 6,922 Management believes that the Group’s current cash on hand, expected cash flows from operations and available credit facilities from banks (Note 19) 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: 2019 2020 Effective interest rate Effective interest rate % RMB % RMB Fixed rate debt: Short-term debt 2.5 29,022 2.7 22,719 Long-term debt 3.1 36,495 2.7 25,348 65,517 48,067 Variable rate debt: Short-term debt 3.8 13,505 3.3 5,275 13,505 5,275 Total debt 79,022 53,342 Fixed rate debt as a percentage of total debt 82.9 % 90.1 % 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 90.1% (December 31, 2019: 82.9%) of the Group’s short-term and long-term debt as of December 31, 2020 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 mainly 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 73.0% (December 31, 2019: 78.0%) of the Group’s cash and cash equivalents and 99.3% (December 31, 2019: 99.4%) of the Group’s short-term and long-term debt as of December 31, 2020 are denominated in Renminbi. Details of bank loans denominated in other currencies are set out in Note 19. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2020 | |
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Capital Management | 37. 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 Except Finance Company is subject to certain capital requirements imposed by China Banking and Insurance Regulatory Commission, 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, 2020 | |
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Reconciliation of Liabilities Arising from Financing Activities | 38. 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 debt Long-term debt Lease liabilities Dividend payable Deposits with Finance Company Other payables in respect of certain equity transactions Total RMB RMB RMB RMB RMB RMB RMB (Note (i)) Balance as at January 1, 2019 49,537 45,991 45,864 — — — 141,392 Financing cash flows (7,010 ) (9,782 ) (10,699 ) (9,072 ) 4,098 (8 ) (32,473 ) New leases — — 8,856 — — — 8,856 Lease modifications — — (589 ) — — — (589 ) Transferred to accounts payables — — (2,900 ) — — — (2,900 ) Interest expenses — 284 1,607 — — — 1,891 Foreign exchange loss — 2 7 — — — 9 Acquisition of non-controlling — — — — — 8 8 Distribution to non-controlling — — — 181 — — 181 Dividends declared — — — 8,891 — — 8,891 Balance as at December 31, 2019 42,527 36,495 42,146 — 4,098 — 125,266 Financing cash flows (14,533 ) (11,400 ) (12,738 ) (9,304 ) 5,728 977 (41,270 ) New leases — — 13,561 — — — 13,561 Lease modifications — — (1,254 ) — — — (1,254 ) Transferred to accounts payables — — (2,618 ) — — — (2,618 ) Interest expenses — 266 1,566 — — — 1,832 Foreign exchange gain — (13 ) (16 ) — — — (29 ) Acquisition of non-controlling — — — — — 1 1 Distribution to non-controlling — — — 42 — — 42 Dividends declared — — — 9,262 — — 9,262 Balance as at December 31, 2020 27,994 25,348 40,647 — 9,826 978 104,793 Notes: (i) As of December 31, 2020, the balance of deposits with Finance Company amounting to RMB9,826 (December 31, 2019: RMB4,098) were included in amounts due to China Telecom Group in accrued expenses and other payables (Note 21). (ii) For the year ended December 31, 2020, other than the net financing cash outflows totalling RMB41,270 as presented above: Finance Company, a subsidiary of the Company, placed statutory reserve deposits amounting to RMB837 at the People’s Bank of China which was included in the balance of short-term bank deposits and restricted cash as of December 31, 2020. For the year ended December 31, 2019, other than the net financing cash outflows totalling RMB32,473 as presented above: E-surfing non-controlling non-controlling |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
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Related Party Transactions | 39. 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 2018 2019 2020 RMB RMB RMB Construction and engineering services (i ) 16,396 14,014 15,046 Receiving ancillary services (ii ) 16,744 18,571 18,903 Interconnection revenues (iii ) 80 97 54 Interconnection charges (iii ) 204 183 123 Receiving community services (iv ) 3,296 3,464 3,682 Net transaction amount of centralized services (v ) 519 133 268 Property lease income (vi ) 48 57 45 Property lease related expenses (vii ) 713 577 581 Addition to right-of-use (vii ) — 284 335 Interest expense on lease liabilities (vii ) — 11 16 Provision of IT services (viii ) 531 464 556 Receiving IT services (viii ) 1,895 2,175 2,653 Purchases of telecommunications equipment and materials (ix ) 3,760 3,538 3,567 Sales of telecommunications equipment and materials (ix ) 2,760 1,444 2,070 Internet applications channel services (x ) 298 108 73 Interest on amounts due to and loans from China Telecom Group (xi ) 2,099 1,485 975 Others (xii ) 186 189 243 Net deposit by China Telecom Group with Finance Company (xiii ) — 4,098 5,728 Interest expense on the deposit by China Telecom Group with Finance Company (xiii ) — 7 82 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 China Telecom Group for leasing of properties. (vii) Represent amounts in relation to the leasing of properties from China Telecom Group. Property lease related expenses for the year ended 31 December 2020 include the fee for short-term leases, leases of low-value non-lease (viii) Represent IT services provided to and received from China Telecom Group. (ix) 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. (x) 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. (xi) Represent interest paid and payable to China Telecom Group with respect to the amount due to China Telecommunications Corporation and loans from China Telecom Group (Note 19). (xii) Represent amounts paid and payable to China Telecom Group primarily for usage 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. (xiii) Represent amounts related to financial services provided by Finance Company to China Telecom Group, including lending services, deposit services and other financial services. Amounts due from/to China Telecom Group are summarized as follows: December 31, 2019 2020 RMB RMB Accounts receivable 1,188 1,784 Contract assets 27 49 Prepayments and other current assets 1,233 1,189 Total amounts due from China Telecom Group 2,448 3,022 Accounts payable 19,531 19,272 Accrued expenses and other payables 6,069 11,279 Contract liabilities 162 217 Lease liabilities 389 489 Short-term debt 6,621 11,164 Long-term debt 23,300 11,000 Total amounts due to China Telecom Group 56,072 53,421 Amounts due from/to China Telecom Group, other than short-term debt, long-term debt, deposit with Finance Company included in accrued expenses and other payables (Note 38(i)), 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 19. As of December 31, 2019 and 2020, 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 2018 2019 2020 RMB RMB RMB Tower assets lease related expenses (i ) 16,063 10,543 10,746 Additions of right-of-use (i ) — 3,735 3,645 Interest expense on lease liabilities (i ) — 938 805 Provision of IT services (ii ) 32 31 31 Notes: (i) Represent amounts in relation to the lease of tower assets. Tower assets lease related expenses for the year ended 31 December 2020 includes the variable lease payments not depending on an index or a rate and fee for non-lease (ii) Represent IT and other ancillary services provided to China Tower. Amounts due from/to China Tower are summarized as follows: 2019 2020 RMB RMB Accounts receivable 5 23 Prepayments and other current assets 192 138 Total amounts due from China Tower 197 161 Accounts payable 4,312 4,344 Accrued expenses and other payables 1,261 1,192 Contract liabilities 1 3 Lease liabilities 24,474 19,798 Total amounts due to China Tower 30,048 25,337 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, 2019 and 2020, 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, 2018 2019 2020 RMB RMB RMB thousands thousands thousands Short-term employee benefits 7,942 9,604 8,727 Post-employment benefits 799 1,199 628 8,741 10,803 9,355 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 40. (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 39(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, 2020 | |
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Post-employment Benefits Plans | 40. 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 14% to 20% of the salaries, bonuses and certain allowances of the employees, while the PRC government resolved to waive certain proportion of such contributions during the specific period affected by the Covid-19 The Group’s contributions for the above plans for the years ended December 31, 2018, 2019 and 2020 were RMB7,256 and RMB8,616 and RMB6,599, respectively. The amount payable for contributions to the above defined contribution retirement plans as of December 31, 2019 and 2020 was RMB755 and RMB746, respectively. |
Share Appreciation Rights
Share Appreciation Rights | 12 Months Ended |
Dec. 31, 2020 | |
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Share Appreciation Rights | 41. 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. 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, 2019 and 2020, no share appreciation right units were exercised. For the year ended December 31, 2020, compensation expense of RMB101 was reversed by the Group in respect of share appreciation rights. For the year ended 31 December 2019, compensation expense of RMB136 was recognised by the Group in respect of share appreciation rights. As of December 31, 2019 and 2020, the carrying amount of the liability arising from share appreciation rights were RMB166 and RMB65, respectively. |
Principal Subsidiaries
Principal Subsidiaries | 12 Months Ended |
Dec. 31, 2020 | |
Investments accounted for using equity method [abstract] | |
Principal Subsidiaries | 42. PRINCIPAL SUBSIDIARIES Details of the Company’s subsidiaries which principally affected the results, assets and liabilities of the Group as of December 31, 2020 are as follows: Name of company Type of legal entity Date of incorporation Place of incorporation and 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 635 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 telecommunications 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 China Telecom Group Finance Co., Ltd. (“Finance Company”) Limited Company January 8, 2019 PRC 5,000 Provision of capital and financial management services 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, E-surfing non-controlling |
Accounting Estimates and Judgme
Accounting Estimates and Judgments | 12 Months Ended |
Dec. 31, 2020 | |
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Accounting Estimates and Judgments | 43. 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 credit loss experience taking into consideration reasonable and supportable forward-looking information that is available without undue cost or effort. The historical loss rates are reassessed annually, and changes in the forward-looking information are considered. In addition, accounts receivable with significant balances or credit-impaired are assessed for ECL individually. The provision of ECL is sensitive to changes in estimates. Due to greater financial uncertainty triggered by the Covid-19 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(h). The carrying amounts of the Group’s long-lived assets, including property, plant and equipment, right-of-use For the year ended December 31, 2020, provision for impairment loss of RMB5,042 were made against the carrying value of property, plant and equipment (Note 9), mainly based on the impairment test on the 3G Assets on the basis of each individual asset. For the year ended December 31 2019 and 2018, no provision for impairment loss was made against the carrying value of long-lived assets. In determining the recoverable amount of the assets with the cash-generating unit, 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. Furthermore, the financial budgets, growth rate and discount rate are subject to greater uncertainties in the current year due to uncertainty on how the Covid-19 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. |
Possible Impact of New and Amen
Possible Impact of New and Amendments to Standards Issued But Not Yet Effective For The Annual Accounting Period Ended December 31, 2020 | 12 Months Ended |
Dec. 31, 2020 | |
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Possible Impact of New and Amendments to Standards Issued But Not Yet Effective For The Annual Accounting Period Ended December 31, 2020 | 44. POSSIBLE IMPACT OF NEW AND AMENDMENTS TO STANDARDS ISSUED BUT NOT YET EFFECTIVE FOR THE ANNUAL ACCOUNTING PERIOD ENDED DECEMBER 31, 2020 Up to the date of issue of these consolidated financial statements, the IASB has issued the following new and amendments to standards which are not yet effective and not early adopted for the annual accounting period ended December 31, 2020: Effective for accounting Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, “Interest Rate Benchmark Reform–Phase 2” January 1, 2021 Amendments to IFRS 3, “Reference to the Conceptual Framework” January 1, 2022 Amendments to IAS 16, “Property, Plant and Equipment: Proceeds before Intended Use” January 1, 2022 Amendments to IAS 37, “Onerous Contracts – Cost of Fulfilling a Contract” January 1, 2022 Amendments to IFRS Standards, “Annual Improvements to IFRS Standards 2018-2020” January 1, 2022 IFRS 17, “Insurance Contracts and the related Amendments” January 1, 2023 Amendments to IAS 1, “Classification of Liabilities as Current or Non-current” January 1, 2023 Amendments to IAS 1 and IFRS Practice Statement 2, “Disclosure of Accounting Policies” January 1, 2023 Amendments to IAS 8, “Definition of Accounting Estimates” January 1, 2023 Amendments to IFRS 10 and IAS 28, “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” To be determined The Group is in the process of making an assessment of the impact that will result from adopting the new and amendments to standards issued by the IASB which are not yet effective for the accounting period ended on December 31, 2020. So far the Group believes that the adoption of these new and amendments to standards is unlikely to have a significant impact on its financial position and the results of operations. |
Events After the Reporting Peri
Events After the Reporting Period | 12 Months Ended |
Dec. 31, 2020 | |
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Events After the Reporting Period | 45. EVENTS AFTER THE REPORTING PERIOD (a) NYSE determination to delist American Depositary Shares of the Company The New York Stock Exchange LLC (the “NYSE”) announced on December 31, 2020 (US Eastern standard time) that the staff of NYSE Regulation had determined to commence proceedings to delist the securities of three issuers, including the American Depositary Shares (the “ADSs”) of the Company, on the basis that the Company is no longer suitable for listing pursuant to the NYSE Listed Company Manual Section 802.01D in light of the Executive Order issued on November 12, 2020 (as amended on January 13, 2021 (US Eastern standard time)) by the then President of the United States. On January 4, 2021(US Eastern standard time), NYSE announced that NYSE Regulation no longer intended to move forward with the delisting action in relation to the ADSs, and then on January 6, 2021 (US Eastern standard time), NYSE announced that NYSE Regulation determined to re-commence delisting proceedings of the ADSs (the “Determination”), following which trading of the ADSs was suspended at 4:00 a.m. (US Eastern standard time) on January 11, 2021. In addition, on January 8, 2021 (US Eastern standard time), the US Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) added the Company to the “Issuer Name” column of a list of companies identified as a Restricted Company (the “Restricted List”). In order to protect the legitimate interests of the Company and its shareholders, on January 20, 2021 (US Eastern standard time), the Company filed with the NYSE a written request for a review of the Determination by a Committee of the Board of Directors of the NYSE (the “Committee”) and stay of the trading suspension of the ADSs pending review of the Determination. On January 27, 2021 (US Eastern standard time), OFAC published General License No. 1A in relation to the Executive Order (“GL 1A”), dated January 26, 2021 (US Eastern standard time), and guidance relating to two related frequently asked questions (respectively, “FAQ 878” and “FAQ 879”). GL 1A and FAQ 879 provide, among others, that, pursuant to the Executive Order, the Prohibitions with respect to the Company take effect on the date that The Company will continue to pay close attention to the development of related matters and also seek professional advice and reserve all rights to protect the legitimate interests of the Company. (b) Proposal of share appreciation rights grant for key personnel On February 9, 2021, the Board of Directors of the Company has considered and approved the resolution in relation to the “2021 Share Appreciation Rights Grant Proposal for Key Personnel of China Telecom Corporation Limited” (now renamed as “The Phase II Incentive Scheme for Share Appreciation Rights of China Telecom Corporation Limited” as instructed by the State-owned Assets Supervision and Administration Commission of the State Council of China (“SASAC”)) (the “Proposal”). According to the Proposal, the Company proposed to grant a maximum of approximately 2,412 million share appreciation rights to a maximum of approximately 8,300 key personnel (excluding the Executive Directors, Non-Executive The Proposal has been approved by SASAC on March 3, 2021. (c) Proposed A share offering On March 9, 2021, the Company announced it plans to apply for the offering and listing of A shares on the Main Board of Shanghai Stock Exchange. |
Parent and Ultimate Holding Com
Parent and Ultimate Holding Company | 12 Months Ended |
Dec. 31, 2020 | |
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Parent and Ultimate Holding Company | 46. PARENT AND ULTIMATE HOLDING COMPANY The parent and ultimate holding company of the Company as of December 31, 2020 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, 2020 | |
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Basis of preparation | (a) Basis of preparation The accompanying consolidated financial statements have been prepared in accordance with IFRSs as issued by the IASB. For the purpose of preparation of the consolidated financial statements, information is considered material if such information is reasonably expected to influence decisions made by primary users. 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 9, 2021. 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 43. |
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(h)). 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. 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(h)). 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. |
Goodwill | (f) 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 12) 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(h)). 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 | (g) 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(h)). 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 goodwill and long-lived assets | (h) Impairment of goodwill and long-lived assets The carrying amounts of the Group’s long-lived assets, including property, plant and equipment, right-of-use Before the Group recognizes an impairment loss for assets capitalized as contract costs under IFRS 15, “ Revenue from Contracts with Customers 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. |
Interests in joint operations | (i) Interests in joint operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have the rights to the assets, and obligation for the liabilities, relating to the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The Group accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses. When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a sale or contribution of assets), the Group is considered to be conducting the transaction with the other parties to the joint operation, and gains and losses resulting from the transactions are recognised in the consolidated financial statements only to the extent of other parties’ interests in the joint operation. When a group entity transacts with a joint operation in which a group entity is a joint operator (such as a purchase of assets), the Group does not recognise its share of the gains and losses until it resells those assets to a third party. |
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 trade 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. 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. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss. 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 (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 of fair value through other comprehensive income (“FVTOCI”) At 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. (iii) Financial assets at FVTPL Financial assets that do not meet the criteria for being measured at amortized cost or FVTOCI or designated as FVTOCI are measured at FVTPL. Financial assets at FVTPL are measured at fair value at the end of each reporting period, with any fair value gains or losses recognized in profit or loss. The net gain or loss recognized in profit or loss includes any dividend or interest earned on the financial asset and is included in the “investment income” line item. Impairment of financial assets and other items subject to impairment assessment under IFRS 9, “Financial Instruments” (“IFRS 9”) The Group performs impairment assessment under ECL model on financial assets (including accounts receivable, financial assets included in prepayments and other current assets, short-term bank deposit, restricted cash, cash and cash equivalents) and other items (contract assets) which are subject to impairment assessment under IFRS 9. 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, 12-month 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 or credit-impaired debtors, 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, 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 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. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. 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 and forward-looking information. The Group uses a practical expedient in estimating ECL on accounts receivable using a provision matrix taking into consideration historical credit loss experience, adjusted for forward-looking information that is available without undue cost or effort. 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. Lifetime ECL for accounts receivable and contract assets are considered on a collective basis taking into consideration past due information and relevant credit information such as forward-looking macroeconomic information. For collective assessment, the Group takes into consideration the following characteristics when formulating the grouping: • 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. 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. 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 Company 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 consolidated 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. |
Revenue from contract with customers | (m) Revenue from contract with customers 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 or 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 telecommunications service agreements with the Group, 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 asset is subject to impairment review. 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. The asset is subject to impairment review. |
Leases | (n) Leases Effective January 1, 2019, the Group applied IFRS 16. IFRS 16 superseded IAS 17, “ Leases right-of-use Definition of a lease A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group assesses whether a contract is or contains a lease based on the definition under IFRS 16 at inception or modification date. Such contract will not be reassessed unless the terms and conditions of the contract are subsequently changed. The Group as a lessee As a practical expedient, leases with similar characteristics are accounted on a portfolio basis when the Group reasonably expects that the effects on the consolidated financial statements would not differ materially from individual leases within the portfolio. Allocation of consideration to components of a contract For a contract that contains a lease component and one or more additional lease or non-lease non-lease Short-term leases and leases of low-value The Group applies the short-term lease recognition exemption to leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. It also applies the recognition exemption for lease of low-value low-value Right-of-use The cost of right-of-use • the amount of the initial measurement of the lease liability; • any lease payments made at or before the commencement date, less any lease incentives received; • any initial direct costs incurred by the lessee; and • an estimate of costs to be incurred by the lessee in dismantling and removing the underlying assets, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease. Right-of-use Covid-19-related Right-of-use right-of-use The Group presents right-of-use Lease liabilities At the commencement date of a lease, the Group recognizes and measures the lease liability at the present value of lease payments that are unpaid at that date. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. The lease payments include: • fixed payments (including in-substance • variable lease payments that depend on an index or a rate; • the exercise price of a purchase option reasonably certain to be exercised by the Group; and • payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate the lease. Variable lease payments that depend on an index or a rate are initially measured using the index or rate as of the commencement date. Variable lease payments that do not depend on an index or a rate are not included in the measurement of lease liabilities and right-of-use After the commencement date, lease liabilities are adjusted by interest accretion and lease payments. The Group remeasures lease liabilities (and makes a corresponding adjustment to the related right-of-use • the lease term has changed or there is a change in the assessment of exercise of a purchase option, in which case the related lease liability is remeasured by discounting the revised lease payments using a revised discount rate at the date of assessment. • the lease payments change due to changes in market rental rates following a market rent review, in which cases the related lease liability is remeasured by discounting the revised lease payments using the initial discount rate. Lease modifications Except for Covid-19-related • the modification increases the scope of the lease by adding the right to use one or more underlying assets; and • the consideration for the leases increases by an amount commensurate with the stand-alone price for the increase in scope and any appropriate adjustments to that stand-alone price to reflect the circumstances of the particular contract. For a lease modification that is not accounted for as a separate lease, the Group remeasures the lease liability based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification. The Group accounts for the remeasurement of lease liabilities by making corresponding adjustments to the relevant right-of-use non-lease non-lease Covid-19-related In relation to rent concessions that occurred as a direct consequence of the Covid-19 • the change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change; • any reduction in lease payments affects only payments originally due on or before 30 June 2021; and • there is no substantive change to other terms and conditions of the lease. As a result of applying the practical expedient, the Group accounts for changes in lease payments resulting from rent concessions the same way it would account for the changes applying IFRS 16 if the changes were not a lease modification. Forgiveness or waiver of lease payments are accounted for as variable lease payments. The related lease liabilities are adjusted to reflect the amounts forgiven or waived with a corresponding adjustment recognised in the profit or loss in the period in which the event occurs. 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. 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. The Group as a lessor Classification and measurement of leases Leases for which the Group is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfer substantially all the risks and rewards incidental to ownership of an underlying asset to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases. Amounts due from lessees under finance leases are recognized as receivables at commencement date at amounts equal to net investments in the leases, measured using the interest rate implicit in the respective leases. Initial direct costs (other than those incurred by manufacturer or dealer lessors) are included in the initial measurement of the net investments in the leases. Interest income is allocated to accounting periods so as to reflect a constant periodic rate of return on the Group’s net investment outstanding in respect of the leases. Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset, and such costs are recognized as an expense on a straight-line basis over the lease term. Upon application of IFRS 16 on January 1, 2019, variable lease payments for operating leases that depend on an index or a rate are estimated and included in the total lease payments to be recognized on a straight-line basis over the lease term. Variable lease payments that do not depend on an index or a rate are recognized as income when they arise. The Group as a lessor Allocation of consideration to components of a contract When a contract includes both leases and non-lease non-lease Non-lease Refundable rental deposits Refundable rental deposits received are accounted under IFRS 9 and initially measured at fair value. Adjustments to fair value at initial recognition are considered as additional lease payments from lessees. Sublease When the Group is an intermediate lessor, it accounts for the head lease and the sublease as two separate contracts. The sub-lease right-of-use Lease modification Changes in considerations of lease contracts that were not part of the original terms and conditions are accounted for as lease modifications, including lease incentives provided through forgiveness or reduction of rentals. The Group accounts for a modification to an operating lease as a new lease from the effective date of the modification, considering any prepaid or accrued lease payments relating to the original lease as part of the lease payments for the new lease. |
Net finance costs | (o) Net finance costs Net finance costs comprise interest income on bank deposits, interest costs on borrowings, interest expense on lease liabilities 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 | (p) Research and development expense Research and development expenditure is expensed as incurred if the criteria of recognition as intangible assets were not met. For the years ended December 31, 2018, 2019 and 2020, research and development related personnel expenses amounted to RMB1,327, RMB1,950 and RMB2,392, and research and development related depreciation amounted to RMB110, RMB141 and RMB130, respectively. In addition, other research and development expense for the years ended December 31, 2018, 2019 and 2020 was RMB1,341, RMB2,105 and RMB2,215, respectively. |
Employee benefits | (q) 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 40. 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 | (r) 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: • the Group will comply with all the conditions attaching to them; and • 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 | (s) 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 | (t) Value-added tax (“VAT”) Output VAT rate for basic telecommunications services (including voice communication, lease or sale of network resources) is 9% since April 1, 2019, or 10% between May 1, 2018 and April 1, 2019, 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 13% since April 1, 2019, 16% between May 1, 2018 and April 1, 2019, 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 13% since April 1, 2019, or 3% to 16% between May 1, 2018 and April 1, 2019, 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 | (u) 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. For the purposes of measuring deferred tax for leasing transactions in which the Group recognizes the right-of-use right-of-use The tax deductions of the Group’s leasing transactions are attributable to the lease liabilities. The Group applies IAS 12, “ Income Taxes right-of-use right-of-use |
Dividends | (v) Dividends Dividends are recognized as a liability in the period in which they are declared. |
Related parties | (w) 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 | (x) 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. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 | |
Text block [abstract] | |
Summary of Cash and Cash Equivalents | December 31, 2019 2020 RMB RMB Cash at bank and in hand 20,006 23,193 Time deposits with original maturity within three months 785 491 20,791 23,684 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Summary of Accounts Receivable, Net | Accounts receivable, net, are analyzed as follows: December 31, Note 2019 2020 RMB RMB Third parties 24,438 23,688 China Telecom Group (i ) 1,188 1,784 China Tower (See definition in Note 14) 5 23 Other telecommunications operators in the PRC 550 441 26,181 25,936 Less: Allowance for credit losses (4,692 ) (4,434 ) 21,489 21,502 Note: (i) China Telecommunications Corporation together with its subsidiaries other than the Group are referred to as “China Telecom Group”. |
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, 2019 2020 RMB RMB Current, within 1 month 7,545 7,068 1 to 3 months 1,777 1,601 4 to 12 months 1,822 1,481 More than 12 months 1,002 921 12,146 11,071 Less: Allowance for credit losses (2,803 ) (2,438 ) 9,343 8,633 |
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: December 31, 2019 2020 RMB RMB Current, within 1 month 4,701 5,331 1 to 3 months 2,964 2,785 4 to 12 months 3,768 3,801 More than 12 months 2,602 2,948 14,035 14,865 Less: Allowance for credit losses (1,889 ) (1,996 ) 12,146 12,869 |
Contract Assets (Tables)
Contract Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Contract Assets | December 31, 2019 2020 RMB RMB Third parties 447 555 China Telecom Group 27 49 474 604 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Inventories | December 31, 2019 2020 RMB RMB Materials and supplies 577 484 Goods for resale 2,303 2,833 2,880 3,317 |
Prepayments and Other Current_2
Prepayments and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Prepayments and Other Current Assets | December 31, 2019 2020 RMB RMB Amounts due from China Telecom Group 1,233 1,189 Amounts due from China Tower (See definition in Note 14) 192 138 Amounts due from other telecommunications operators in the PRC 352 204 Prepayments in connection with construction work and equipment purchases 3,352 6,080 Prepaid expenses and deposits 2,993 2,994 Value-added tax recoverable 8,803 8,501 Other receivables 5,294 6,061 22,219 25,167 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Property, Plant and Equipment, Net | Buildings and improvements Telecom-munications network plant and equipment Furniture, fixture, motor vehicles and other equipment Total RMB RMB RMB RMB Cost/Deemed cost: Balance at January 1, 2019 102,541 854,382 31,558 988,481 Additions 554 274 277 1,105 Transferred from construction in progress 2,060 74,157 1,644 77,861 Retirement and disposal (751 ) (62,560 ) (2,419 ) (65,730 ) Reclassification (39 ) (536 ) 575 — Balance at December 31, 2019 104,365 865,717 31,635 1,001,717 Additions 425 139 253 817 Transferred from construction in progress 2,249 84,567 1,791 88,607 Retirement and disposal (1,435 ) (53,500 ) (3,039 ) (57,974 ) Reclassification (10 ) (512 ) 522 — Balance at December 31, 2020 105,594 896,411 31,162 1,033,167 Accumulated depreciation and impairment: Balance at January 1, 2019 (58,300 ) (498,986 ) (23,400 ) (580,686 ) Depreciation charge for the year (4,185 ) (64,672 ) (2,101 ) (70,958 ) Written back on retirement and disposal 681 56,943 2,311 59,935 Reclassification 19 358 (377 ) — Balance at December 31, 2019 (61,785 ) (506,357 ) (23,567 ) (591,709 ) Depreciation charge for the year (4,196 ) (64,208 ) (2,038 ) (70,442 ) Provision for impairment loss — (5,027 ) (15 ) (5,042 ) Written back on retirement and disposal 1,324 48,451 2,856 52,631 Reclassification 8 401 (409 ) — Balance at December 31, 2020 (64,649 ) (526,740 ) (23,173 ) (614,562 ) Net book value at December 31, 2020 40,945 369,671 7,989 418,605 Net book value at December 31, 2019 42,580 359,360 8,068 410,008 |
Construction in Progress (Table
Construction in Progress (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Construction in Progress | RMB Balance at January 1, 2019 66,644 Additions 76,870 Transferred to property, plant and equipment (77,861 ) Transferred to intangible assets (6,447 ) Balance at December 31, 2019 59,206 Additions 84,145 Transferred to property, plant and equipment (88,607 ) Transferred to intangible assets (6,319 ) Balance at December 31, 2020 48,425 |
Right-of-Use Assets (Tables)
Right-of-Use Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure of quantitative information about right-of-use assets [abstract] | |
Summary of Detailed Information About Operating Lease Right Of Use Assets | Leasehold Lands Buildings Telecommunications towers and related assets Equipment Others Total RMB RMB RMB RMB RMB RMB As of December 31, 2020 Carrying amount 20,441 8,672 18,866 11,230 248 59,457 As of December 31, 2019 Carrying amount 20,952 8,289 23,740 8,361 207 61,549 For the year ended December 31, 2020 Depreciation charge 745 3,626 7,642 2,151 78 14,242 For the year ended December 31, 2019 Depreciation charge 732 2,968 6,966 1,612 65 12,343 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Goodwill | December 31, 2019 2020 RMB RMB Cost: Goodwill arising from acquisition of CDMA business 29,923 29,920 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Intangible Assets | Software RMB Cost: Balance at January 1, 2019 37,314 Additions 624 Transferred from construction in progress 6,447 Disposals (591 ) Balance at December 31, 2019 43,794 Additions 1,489 Transferred from construction in progress 6,319 Disposals (748 ) Balance at December 31, 2020 50,854 Accumulated amortization and impairment: Balance at January 1, 2019 (23,153 ) Amortization charge for the year (4,844 ) Written back on disposals 552 Balance at December 31, 2019 (27,445 ) Amortization charge for the year (5,556 ) Written back on disposals 655 Balance at December 31, 2020 (32,346 ) Net book value at December 31, 2020 18,508 Net book value at December 31, 2019 16,349 |
Interests in Associates (Tables
Interests in Associates (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Summary of Interests in Associates | December 31, 2019 2020 RMB RMB Cost of investment in associates 37,173 37,168 Share of post-acquisition changes in net assets 2,019 3,135 39,192 40,303 Fair value of listed investments 55,601 34,625 |
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 equity interest Principal activities China Tower Corporation Limited (Note (i)) 20.5 % 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: 2019 2020 RMB RMB The Group’s share of profit of these associates 85 86 The Group’s share of total comprehensive income of these associates 85 86 December 31, 2019 2020 RMB RMB Aggregate carrying amount of interests in these associates in the consolidated financial statements of the Group 1,175 1,251 |
Shanghai Info Investment Incorporation [member] | |
Statement [LineItems] | |
Summarized Financial Information of Associates and Reconciled to Carrying Amounts of Interests in Associates in Consolidated Financial Statements | Shanghai Info-investment December 31, 2019 2020 RMB RMB Current assets 4,292 4,752 Non-current 5,203 5,878 Current liabilities 2,494 2,124 Non-current 787 1,803 2019 2020 RMB RMB Operating revenues 3,214 982 Profit for the year 1,158 641 Other comprehensive income for the year (7 ) (17 ) Total comprehensive income for the year 1,151 624 Dividend received from Shanghai Info-investment 9 14 Reconcile to the Group’s interests in the associate: December 31, 2019 2020 RMB RMB Net assets of Shanghai Info-investment 6,214 6,703 Non-controlling (144 ) (83 ) The Group’s effective interest in Shanghai Info-investment 24.0 % 24.0 % The Group’s share of net assets of Shanghai Info-investment 1,457 1,589 Carrying amount of the interest in Shanghai Info-investment in the consolidated financial statements of the Group 1,457 1,589 |
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 December 31, 2019 2020 RMB RMB Current assets 40,995 43,204 Non-current 297,072 294,176 Current liabilities 128,364 106,635 Non-current 27,142 44,499 2019 2020 RMB RMB Operating revenues 76,428 81,099 Profit for the year 5,221 6,427 Other comprehensive income for the year — — Total comprehensive income for the year 5,221 6,427 Dividend received from China Tower 81 525 Reconcile to the Group’s interests in the associate: December 31, 2019 2020 RMB RMB Net assets of China Tower 182,561 186,246 Non-controlling (2 ) (1 ) The Group’s effective interest in China Tower 20.5 % 20.5 % The Group’s share of net assets of China Tower 37,425 38,180 Adjustment for the remaining balance of the deferred gain from the Tower Assets Disposal (865 ) (717 ) Carrying amount of the interest in China Tower in the consolidated financial statements of the Group 36,560 37,463 |
Equity Instruments at Fair Va_2
Equity Instruments at Fair Value Through Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Equity Instruments at Fair Value Through Other Comprehensive Income | December 31, Notes 2019 2020 RMB RMB Equity securities listed in the mainland China (i ) 1,228 838 Unlisted equity securities (ii ) 230 235 1,458 1,073 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, 2020 | |
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 2019 2020 2019 2020 2019 2020 RMB RMB RMB RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,953 2,069 — — 1,953 2,069 Property, plant and equipment, and others 4,862 5,299 (18,831 ) (24,067 ) (13,969 ) (18,768 ) Right-of-use 744 791 — — 744 791 Deferred revenues and installation costs 18 5 (13 ) (4 ) 5 1 Equity instruments at fair value through other comprehensive income — — (234 ) (137 ) (234 ) (137 ) Deferred tax assets/(liabilities) 7,577 8,164 (19,078 ) (24,208 ) (11,501 ) (16,044 ) |
Movements in Deferred Tax Assets and Deferred Tax Liabilities | Balance at January 1, 2018 Recognized in consolidated statement of comprehensive income Balance at December 31, 2018 RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,829 96 1,925 Property, plant and equipment, and others (5,073 ) (3,369 ) (8,442 ) Deferred revenues and installation costs 19 (9 ) 10 Equity instruments at fair value through other comprehensive income (169 ) 82 (87 ) Net deferred tax liabilities (3,394 ) (3,200 ) (6,594 ) Balance at December 31, 2018 Change in accounting policy Recognized in consolidated statement of comprehensive income Balance at December 31, 2019 RMB RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,925 — 28 1,953 Property, plant and equipment, and others (8,442 ) — (5,527 ) (13,969 ) Right-of-use — 676 68 744 Deferred revenues and installation costs 10 — (5 ) 5 Equity instruments at fair value through other comprehensive income (87 ) — (147 ) (234 ) Net deferred tax liabilities (6,594 ) 676 (5,583 ) (11,501 ) Balance at December 31, 2019 Recognized in consolidated statement of comprehensive income Balance at December 31, 2020 RMB RMB RMB Provisions and impairment losses, primarily for credit losses 1,953 116 2,069 Property, plant and equipment, and others (13,969 ) (4,799 ) (18,768 ) Right-of-use 744 47 791 Deferred revenues and installation costs 5 (4 ) 1 Equity instruments at fair value through other comprehensive income (234 ) 97 (137 ) Net deferred tax liabilities (11,501 ) (4,543 ) (16,044 ) |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Other Assets | December 31, Note 2019 2020 RMB RMB Contract costs (i ) 988 1,151 Installation fees 56 16 Other long-term prepaid expenses and receivables 3,643 5,385 4,687 6,552 Note: (i) Contract costs capitalized as of December 31, 2019 and 2020 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 and the cost of installing terminal equipment at subscribers’ homes for the provision of Smart Family services of the Group. The amount of capitalized costs recognized in profit or loss during the years ended December 31, 2019 and 2020 was RMB1,367 and RMB1,234, respectively. 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, 2020 | |
Statement [LineItems] | |
Aggregate Maturities of Long-term Debt | The aggregate maturities of the Group’s long-term debt subsequent to December 31, 2020 are as follows: RMB 2021 1,126 2022 17,081 2023 3,009 2024 984 2025 952 Thereafter 2,196 25,348 |
Short-term debt [member] | |
Statement [LineItems] | |
Summary of Debt | Short-term debt comprises: December 31, 2019 2020 RMB RMB Loans from banks—unsecured 15,831 4,831 Super short-term commercial papers—unsecured 19,995 11,999 Other loans—unsecured 80 — Loans from China Telecom Group—unsecured 6,621 11,164 Total short-term debt 42,527 27,994 |
Long-term debt and payable [member] | |
Statement [LineItems] | |
Summary of Debt | Long-term debt comprises: December 31, Interest rates and final maturity 2019 2020 RMB RMB Bank loans—unsecured Renminbi denominated (Note (i)) Interest rates ranging from 1.08% to 1.20% per annum with maturities through 2036 7,738 6,975 US Dollars denominated Interest rates ranging from 1.25% to 2.00% per annum with maturities through 2028 288 224 Euro denominated Interest rate of 2.30% per annum with maturities through 2032 173 152 8,199 7,351 Other loans—unsecured Renminbi denominated 1 1 Medium-term note—unsecured (Note (ii)) 4,995 4,996 Company bonds – unsecured (Note (iii)) — 2,000 Loans from China Telecom Group—unsecured Renminbi denominated (Note (iv)) 23,300 11,000 Total long-term debt 36,495 25,348 Less: Current portion (4,444 ) (1,126 ) Non-current 32,051 24,222 Notes: (i) The Group obtained long-term RMB denominated government loans with below-market interest rates ranging from 1.08% to 1.20% per annum through banks (the “Low-interest Low-interest Low-interest (ii) On January 22, 2019, the Group issued three-year RMB denominated medium-term note, amounting to RMB3,000, with interest rate of 3.42% per annum, and incurred issuing costs of RMB3. The medium-term note is unsecured and is repayable on January 21, 2022. On March 19, 2019, the Group issued three-year RMB denominated medium-term note, amounting to RMB2,000, with interest rate of 3.41% per annum and incurred issuing costs of RMB3. The medium-term note is unsecured and is repayable on March 18, 2022. (iii) On March 10, 2020, the Group issued three-year RMB denominated company bonds, amounting to RMB2,000, to qualified investors in Shanghai Stock Exchange, with interest rate of 2.90% per annum. The company bonds are unsecured and are payable on March 9, 2023. (iv) On December 25, 2017, the Group obtained long-term RMB denominated loans, amounting to RMB40,000, from China Telecommunications Corporation, with interest rate of 3.8% per annum, which are repayable within 3 to 5 years. The Group partially repaid these loans amounting to RMB3,000, RMB13,700 and RMB12,300, respectively, in 2018, 2019 and 2020. |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Accounts Payable | December 31, 2019 2020 RMB RMB Third parties 78,123 83,254 China Telecom Group 19,531 19,272 China Tower 4,312 4,344 Other telecommunications operators in the PRC 650 708 102,616 107,578 |
Accrued Expenses and Other Pa_2
Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Accrued Expenses and Other Payables | December 31, Note 2019 2020 RMB RMB Amounts due to China Telecom Group 6,069 11,279 Amounts due to China Tower 1,261 1,192 Amounts due to other telecommunications operators in the PRC 32 34 Accrued expenses 34,628 36,885 Advanced payment received in respect of contribution from non-controlling (i) — 978 Value-added tax payable 564 600 Customer deposits and receipts in advance 5,962 5,807 48,516 56,775 Notes: (i) For the year ended 31 December 2020, E-surfing non-controlling |
Contract Liabilities (Tables)
Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Contract Liabilities | December 31, 2019 2020 RMB RMB Third parties 54,225 63,629 China Telecom Group 162 217 China Tower 1 3 54,388 63,849 |
Lease Liabilities (Tables)
Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of maturity for opearting lease payments | December 31, 2019 2020 RMB RMB Within one year 11,569 13,192 Within a period of more than one year but not more than two years 10,887 12,585 Within a period of more than two year but not more than five years 16,255 11,138 Within a period of more than five years 3,435 3,732 42,146 40,647 Less: Current portion (11,569 ) (13,192 ) Non-current 30,577 27,455 |
Deferred Revenues (Tables)
Deferred Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Deferred Revenues | 2019 2020 RMB RMB Balance at beginning of the year 1,829 1,455 Reductions for the year: Amortization of installation fees (90 ) (55 ) Amortization of government grants (284 ) (261 ) Balance at end of year 1,455 1,139 Representing: Current portion 358 278 Non-current 1,097 861 1,455 1,139 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Share Capital | December 31, 2019 2020 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, 2020 | |
Text block [abstract] | |
Summary of Reserves | Capital reserve Share premium Surplus reserves General risk reserve Other reserves Exchange reserve Retained earnings Total RMB RMB RMB RMB RMB RMB RMB RMB (Note (i)) (Note (iii)) (Note (v)) (Note (ii)) Balance as of January 1, 2018 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 33) — — — — — — (7,568 ) (7,568 ) Appropriations to statutory surplus reserve (Note (iii)) — — 1,875 — — — (1,875 ) — Balance as of December 31, 2018 17,806 10,746 76,474 — 160 (727 ) 157,678 262,137 Change in accounting policy (Note 2) — — (243 ) — — — (2,197 ) (2,440 ) Balance as of January 1, 2019, as restated 17,806 10,746 76,231 — 160 (727 ) 155,481 259,697 Total comprehensive income for the year — — — — 455 102 20,517 21,074 Acquisition of non-controlling 3 — — — — — — 3 Share of an associate’s other changes in reserves (305 ) — — — — — — (305 ) Dividends (Note 33) — — — — — — (8,891 ) (8,891 ) Appropriations to statutory surplus reserve (Note (iii)) — — 1,812 — — — (1,812 ) — Appropriations to general risk reserve (Note (v)) — — — 23 — — (23 ) — Balance as of December 31, 2019 17,504 10,746 78,043 23 615 (625 ) 165,272 271,578 Total comprehensive income for the year — — — — (294 ) (312 ) 20,850 20,244 Share of associates’ other changes in reserves (36 ) — — — — — — (36 ) Dividends (Note 33) — — — — — — (9,262 ) (9,262 ) Appropriations to statutory surplus reserve (Note (iii)) — — 1,811 — — — (1,811 ) — Appropriations to general risk reserve (Note (v)) — — — 33 — — (33 ) — Balance as of December 31, 2020 17,468 10,746 79,854 56 321 (937 ) 175,016 282,524 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 at FVTOCI and the deferred tax liabilities recognized due to the change in fair value of those 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, 2020 and 2019, 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, 2020, the Company transferred RMB1,811 (2019: RMB1,812), being 10% of the year’s net profit, to this reserve. As of December 31, 2019 and December 31, 2020, the amount of statutory surplus reserve was RMB31,964 and RMB33,775, respectively. The Company did not transfer any discretionary surplus reserve for the years ended December 31, 2019 and 2020. As of December 31, 2019 and 2020, 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, 2019 and December 31, 2020, the amount of retained earnings available for distribution was RMB138,312 and RMB145,351 respectively, being the amount determined in accordance with IFRSs. Final dividend of approximately RMB8,403 in respect of the financial year 2020 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 33). (v) Pursuant to “Requirements on Impairment Allowance for Financial Institutions” (Caijin [2012] No. 20) issued by the Ministry of Finance of the PRC effective on July 1, 2012 (the “Requirements”), the Group’s subsidiaries, mainly Finance Company, establish a general risk reserve within equity, through appropriation of retained earnings, to address unidentified potential losses relating to risk assets. The general risk reserve balance should not be less than 1.5% of the ending balance of risk assets, as defined in the Requirements. |
Operating Revenues (Tables)
Operating Revenues (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Disclosure of Disaggregation of Revenues | Disaggregation of revenues Note 2018 2019 2020 RMB RMB RMB Type of goods or services Revenue from contracts with customers Voice (i ) 50,811 45,146 40,866 Internet (ii ) 190,871 197,244 208,019 Information and application services (iii ) 83,478 87,623 96,885 Telecommunications network resource and equipment services (iv ) 20,211 21,978 22,623 Sales of goods and others (v ) 27,450 17,906 19,598 Subtotal 372,821 369,897 387,991 Revenue from other sources (vi ) 4,303 5,837 5,570 Total operating revenues 377,124 375,734 393,561 Timing of revenue recognition A point in time 24,496 14,591 16,141 Over time 352,628 361,143 377,420 Total operating revenues 377,124 375,734 393,561 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 charged 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, digitalized platform services, Smart Family, caller ID service and short messaging service and etc. (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. |
Network Operations and Suppor_2
Network Operations and Support Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Network Operations and Support Expenses | Year ended December 31, Note 2018 2019 2020 RMB RMB RMB Operating and maintenance 64,056 65,087 70,943 Utility 13,477 13,818 14,637 Network resources usage and related fee (i ) 29,434 20,976 22,766 Others 9,095 9,918 11,171 116,062 109,799 119,517 Note: (i) Network resources usage and related fee includes the variable lease payments not depending on an index or a rate and fee for non-lease low-value non-lease |
Personnel Expenses (Tables)
Personnel Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Personnel Expenses by Functions | Personnel expenses are attributable to the following functions: Year ended December 31, 2018 2019 2020 RMB RMB RMB Network operations and support 40,388 42,214 43,260 Selling, general and administrative 19,348 21,353 22,729 59,736 63,567 65,989 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Other Operating Expenses | Year ended December 31, Notes 2018 2019 2020 RMB RMB RMB Interconnection charges (i ) 12,878 12,683 12,050 Cost of goods sold (ii ) 23,185 13,413 15,440 Donations 20 1 13 Others (iii ) 1,614 1,695 1,571 37,697 27,792 29,074 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, 2020 | |
Text block [abstract] | |
Summary of Net Finance Costs | Year ended December 31, 2018 2019 2020 RMB RMB RMB Interest expense on short-term and long-term debts 3,278 2,623 1,981 Interest expense on lease liabilities — 1,607 1,566 Less: Interest expense capitalized* (185 ) (140 ) (114 ) Net interest expense 3,093 4,090 3,433 Interest income (306 ) (492 ) (582 ) Foreign exchange losses 423 680 1,018 Foreign exchange gains (502 ) (639 ) (855 ) 2,708 3,639 3,014 * Interest expense was capitalized in construction in progress at the following rates per annum 3.8%-4.4 % 3.5%-4.4 % 3.0%-4.4 % |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Summary of Income Tax in Profit or Loss | Income tax in the profit or loss comprises: Year ended December 31, 2018 2019 2020 RMB RMB RMB Provision for PRC income tax 3,408 781 1,532 Provision for income tax of other tax jurisdictions 120 105 135 Deferred taxation 3,282 5,436 4,640 6,810 6,322 6,307 |
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 2018 2019 2020 RMB RMB RMB Earnings before income tax 28,148 27,034 27,387 Expected income tax expense at statutory tax rate of 25% (i ) 7,037 6,759 6,847 Differential tax rate on PRC subsidiaries’ and branches’ income (i ) (291 ) (315 ) (306 ) Differential tax rate on other subsidiaries’ income (ii ) (58 ) (129 ) (47 ) Non-deductible (iii ) 537 979 915 Non-taxable (iv ) (319 ) (460 ) (576 ) Effect of change in tax rate (v ) — — (29 ) Others (vi ) (96 ) (512 ) (497 ) Actual income tax expense 6,810 6,322 6,307 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) Hainan branch of the Company obtained approval from tax authority to adopt the preferential income tax rate of 15% during the current year. Accordingly, deferred tax assets and deferred tax liabilities that were expected to be recovered or settled after December 31, 2019 were adjusted to reflect the change in tax rate. The overall effect of change in tax rate amounting to RMB29 was credited to the consolidated statement of comprehensive income. (vi) Amounts primarily represent settlement of tax filing differences of prior year annual tax return and other tax benefits such as additional tax deduction on research and development expenses. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Text block [abstract] | |
Capital Commitments | As of December 31, 2020, the Group had capital commitments as follows: RMB Contracted for but not provided - property 1,202 - telecommunications network plant and equipment 18,997 20,199 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Carrying Amounts and Fair Value of Long-term Debt | As of December 31, 2019 and 2020, the carrying amounts and fair value of the Group’s long-term debt was as follows: December 31, 2019 December 31, 2020 Carrying amount Fair value Carrying amount Fair value RMB RMB RMB RMB Long-term debt 36,495 35,780 25,348 25,294 |
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 years ended December 31, 2018, 2019 and 2020 is as follows: 2018 2019 2020 RMB RMB RMB At beginning of year 4,761 4,680 4,692 Impairment losses for ECL 2,008 1,653 1,382 Amounts written off (2,089 ) (1,641 ) (1,640 ) At end of year 4,680 4,692 4,434 |
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 and lease 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: 2019 Carrying amount Total contractual undiscounted cash flow Within 1 year or on demand More than 1 year but less than 2 years More than 2 years but less than 5 years More than 5 years RMB RMB RMB RMB RMB RMB Short-term debt 42,527 43,697 43,697 — — — Long-term debt 36,495 40,791 4,625 1,184 30,824 4,158 Accounts payable 102,616 102,616 102,616 — — — Accrued expenses and other payables 48,516 48,516 48,516 — — — Lease liabilities 42,146 45,535 12,846 11,794 17,266 3,629 272,300 281,155 212,300 12,978 48,090 7,787 2020 Carrying amount Total contractual undiscounted cash flow Within 1 year or on demand More than 1 year but less than 2 years More than 2 years but less than 5 years More than 5 years RMB RMB RMB RMB RMB RMB Short-term debt 27,994 28,417 28,417 — — — Long-term debt 25,348 27,805 1,410 17,838 5,609 2,948 Accounts payable 107,578 107,578 107,578 — — — Accrued expenses and other payables 56,775 56,775 56,775 — — — Lease liabilities 40,647 43,896 14,449 13,363 12,110 3,974 258,342 264,471 208,629 31,201 17,719 6,922 |
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: 2019 2020 Effective interest rate Effective interest rate % RMB % RMB Fixed rate debt: Short-term debt 2.5 29,022 2.7 22,719 Long-term debt 3.1 36,495 2.7 25,348 65,517 48,067 Variable rate debt: Short-term debt 3.8 13,505 3.3 5,275 13,505 5,275 Total debt 79,022 53,342 Fixed rate debt as a percentage of total debt 82.9 % 90.1 % |
Accounts receivable [member] | Telephone and Internet subscribers [member] | |
Statement [LineItems] | |
Summary of Accounts Receivable from Telephone and Internet Subscribers | Accounts receivable from telephone and Internet subscribers: December 31, 2019 Expected Gross carrying Loss % RMB RMB Current, within 1 month 2 % 7,545 141 1 to 3 months 20 % 1,777 349 4 to 6 months 60 % 739 444 7 to 12 months 80 % 1,083 867 Over 12 months 100 % 1,002 1,002 12,146 2,803 December 31, 2020 Expected Gross carrying Loss % RMB RMB Current, within 1 month 2 % 7,068 132 1 to 3 months 20 % 1,601 317 4 to 6 months 60 % 561 333 7 to 12 months 80 % 920 735 Over 12 months 100 % 921 921 11,071 2,438 |
Accounts receivable and contract assets [member] | Enterprise customers [member] | |
Statement [LineItems] | |
Summary of Accounts Receivables From Enterprise Customers and Contract Assets | Accounts receivable and contract assets from enterprise customers: December 31, 2019 Expected Gross carrying Loss % RMB RMB 1 to 6 months 2 % 5,452 102 7 to 12 months 20 % 1,428 239 1 to 2 years 60 % 621 353 2 to 3 years 90 % 258 224 Over 3 years 100 % 371 364 8,130 1,282 December 31, 2020 Expected Gross carrying Loss % RMB RMB 1 to 6 months 2 % 6,031 124 7 to 12 months 22 % 1,120 232 1 to 2 years 67 % 685 445 2 to 3 years 100 % 347 333 Over 3 years 100 % 324 324 8,507 1,458 |
Reconciliation of Liabilities_2
Reconciliation of Liabilities Arising from Financing Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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 debt Long-term debt Lease liabilities Dividend payable Deposits with Finance Company Other payables in respect of certain equity transactions Total RMB RMB RMB RMB RMB RMB RMB (Note (i)) Balance as at January 1, 2019 49,537 45,991 45,864 — — — 141,392 Financing cash flows (7,010 ) (9,782 ) (10,699 ) (9,072 ) 4,098 (8 ) (32,473 ) New leases — — 8,856 — — — 8,856 Lease modifications — — (589 ) — — — (589 ) Transferred to accounts payables — — (2,900 ) — — — (2,900 ) Interest expenses — 284 1,607 — — — 1,891 Foreign exchange loss — 2 7 — — — 9 Acquisition of non-controlling — — — — — 8 8 Distribution to non-controlling — — — 181 — — 181 Dividends declared — — — 8,891 — — 8,891 Balance as at December 31, 2019 42,527 36,495 42,146 — 4,098 — 125,266 Financing cash flows (14,533 ) (11,400 ) (12,738 ) (9,304 ) 5,728 977 (41,270 ) New leases — — 13,561 — — — 13,561 Lease modifications — — (1,254 ) — — — (1,254 ) Transferred to accounts payables — — (2,618 ) — — — (2,618 ) Interest expenses — 266 1,566 — — — 1,832 Foreign exchange gain — (13 ) (16 ) — — — (29 ) Acquisition of non-controlling — — — — — 1 1 Distribution to non-controlling — — — 42 — — 42 Dividends declared — — — 9,262 — — 9,262 Balance as at December 31, 2020 27,994 25,348 40,647 — 9,826 978 104,793 Notes: (i) As of December 31, 2020, the balance of deposits with Finance Company amounting to RMB9,826 (December 31, 2019: RMB4,098) were included in amounts due to China Telecom Group in accrued expenses and other payables (Note 21). (ii) For the year ended December 31, 2020, other than the net financing cash outflows totalling RMB41,270 as presented above: Finance Company, a subsidiary of the Company, placed statutory reserve deposits amounting to RMB837 at the People’s Bank of China which was included in the balance of short-term bank deposits and restricted cash as of December 31, 2020. For the year ended December 31, 2019, other than the net financing cash outflows totalling RMB32,473 as presented above: E-surfing non-controlling non-controlling |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Statement [LineItems] | |
Key Management Personnel Compensation | Key management personnel compensation of the Group is summarized as follows: Year ended December 31, 2018 2019 2020 RMB RMB RMB thousands thousands thousands Short-term employee benefits 7,942 9,604 8,727 Post-employment benefits 799 1,199 628 8,741 10,803 9,355 |
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 2018 2019 2020 RMB RMB RMB Construction and engineering services (i ) 16,396 14,014 15,046 Receiving ancillary services (ii ) 16,744 18,571 18,903 Interconnection revenues (iii ) 80 97 54 Interconnection charges (iii ) 204 183 123 Receiving community services (iv ) 3,296 3,464 3,682 Net transaction amount of centralized services (v ) 519 133 268 Property lease income (vi ) 48 57 45 Property lease related expenses (vii ) 713 577 581 Addition to right-of-use (vii ) — 284 335 Interest expense on lease liabilities (vii ) — 11 16 Provision of IT services (viii ) 531 464 556 Receiving IT services (viii ) 1,895 2,175 2,653 Purchases of telecommunications equipment and materials (ix ) 3,760 3,538 3,567 Sales of telecommunications equipment and materials (ix ) 2,760 1,444 2,070 Internet applications channel services (x ) 298 108 73 Interest on amounts due to and loans from China Telecom Group (xi ) 2,099 1,485 975 Others (xii ) 186 189 243 Net deposit by China Telecom Group with Finance Company (xiii ) — 4,098 5,728 Interest expense on the deposit by China Telecom Group with Finance Company (xiii ) — 7 82 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 China Telecom Group for leasing of properties. (vii) Represent amounts in relation to the leasing of properties from China Telecom Group. Property lease related expenses for the year ended 31 December 2020 include the fee for short-term leases, leases of low-value non-lease (viii) Represent IT services provided to and received from China Telecom Group. (ix) 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. (x) 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. (xi) Represent interest paid and payable to China Telecom Group with respect to the amount due to China Telecommunications Corporation and loans from China Telecom Group (Note 19). (xii) Represent amounts paid and payable to China Telecom Group primarily for usage 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. (xiii) Represent amounts related to financial services provided by Finance Company to China Telecom Group, including lending services, deposit services and other financial services. Amounts due from/to China Telecom Group are summarized as follows: December 31, 2019 2020 RMB RMB Accounts receivable 1,188 1,784 Contract assets 27 49 Prepayments and other current assets 1,233 1,189 Total amounts due from China Telecom Group 2,448 3,022 Accounts payable 19,531 19,272 Accrued expenses and other payables 6,069 11,279 Contract liabilities 162 217 Lease liabilities 389 489 Short-term debt 6,621 11,164 Long-term debt 23,300 11,000 Total amounts due to China Telecom Group 56,072 53,421 |
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 2018 2019 2020 RMB RMB RMB Tower assets lease related expenses (i ) 16,063 10,543 10,746 Additions of right-of-use (i ) — 3,735 3,645 Interest expense on lease liabilities (i ) — 938 805 Provision of IT services (ii ) 32 31 31 Notes: (i) Represent amounts in relation to the lease of tower assets. Tower assets lease related expenses for the year ended 31 December 2020 includes the variable lease payments not depending on an index or a rate and fee for non-lease (ii) Represent IT and other ancillary services provided to China Tower. Amounts due from/to China Tower are summarized as follows: 2019 2020 RMB RMB Accounts receivable 5 23 Prepayments and other current assets 192 138 Total amounts due from China Tower 197 161 Accounts payable 4,312 4,344 Accrued expenses and other payables 1,261 1,192 Contract liabilities 1 3 Lease liabilities 24,474 19,798 Total amounts due to China Tower 30,048 25,337 |
Principal Subsidiaries (Tables)
Principal Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 are as follows: Name of company Type of legal entity Date of incorporation Place of incorporation and 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 635 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 telecommunications 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 China Telecom Group Finance Co., Ltd. (“Finance Company”) Limited Company January 8, 2019 PRC 5,000 Provision of capital and financial management services |
Principal Activities, Organiz_2
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, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2013 | Apr. 30, 2012 | Dec. 01, 2011 | Jun. 30, 2008 | Jun. 30, 2007 | Jun. 30, 2004 | Dec. 31, 2003 | Sep. 10, 2002 |
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 | ||||||||||||
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 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) ¥ in Millions | Apr. 01, 2019 | May 01, 2018 | Apr. 01, 2019 | Dec. 31, 2020CNY (¥)Segments | Dec. 31, 2019CNY (¥) | Dec. 31, 2018CNY (¥) | Jan. 01, 2019CNY (¥) |
Disclosure of significant accounting policies [line items] | |||||||
Estimated useful lives of software | 3 to 5 years | ||||||
Number of operating segments | Segments | 1 | ||||||
Increase decrease due to application of IFRS 16 [member] | |||||||
Disclosure of significant accounting policies [line items] | |||||||
Decrease in opening reserves | ¥ 2,440 | ||||||
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 | 9.00% | 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 | 13.00% | 17.00% | 16.00% | ||||
Personnel expenses [Member] | |||||||
Disclosure of significant accounting policies [line items] | |||||||
Research and development expense | ¥ 2,392 | ¥ 1,950 | ¥ 1,327 | ||||
Depreciation [Member] | |||||||
Disclosure of significant accounting policies [line items] | |||||||
Research and development expense | 130 | 141 | 110 | ||||
Other [Member] | |||||||
Disclosure of significant accounting policies [line items] | |||||||
Research and development expense | ¥ 2,215 | ¥ 2,105 | ¥ 1,341 | ||||
Bottom of range [member] | |||||||
Disclosure of significant accounting policies [line items] | |||||||
Input value added tax rate | 3.00% | 3.00% | 3.00% | ||||
Top of range [member] | |||||||
Disclosure of significant accounting policies [line items] | |||||||
Input value added tax rate | 13.00% | 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, 2020 | |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents [abstract] | ||||
Cash at bank and in hand | ¥ 23,193 | ¥ 20,006 | ||
Time deposits with original maturity within three months | 491 | 785 | ||
Cash and cash equivalents | ¥ 23,684 | ¥ 20,791 | ¥ 16,666 | ¥ 19,410 |
Accounts Receivable, Net - Summ
Accounts Receivable, Net - Summary of Accounts Receivable, Net (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of financial assets [line items] | |||
Accounts receivable | ¥ 21,502 | ¥ 21,489 | |
Cost/Deemed cost [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable | 25,936 | 26,181 | |
Cost/Deemed cost [member] | China Telecom Group [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable | [1] | 1,784 | 1,188 |
Cost/Deemed cost [member] | China Tower [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable | 23 | 5 | |
Cost/Deemed cost [member] | Third parties [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable | 23,688 | 24,438 | |
Cost/Deemed cost [member] | Other telecommunications operators in the PRC [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable | 441 | 550 | |
Allowance for credit losses [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable | ¥ (4,434) | ¥ (4,692) | |
[1] | China Telecommunications Corporation together with its subsidiaries other than the Group are referred to as “China Telecom Group”. |
Accounts Receivable, Net - Addi
Accounts Receivable, Net - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of financial assets [line items] | |||
Accounts receivable | ¥ 21,502 | ¥ 21,489 | |
Cost/Deemed cost [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable from contracts with customers | 25,836 | 26,087 | ¥ 25,155 |
Accounts receivable | 25,936 | 26,181 | |
Past due 90 days [member] | |||
Disclosure of financial assets [line items] | |||
Accounts receivable | ¥ 1,694 | ¥ 1,936 |
Accounts Receivable, Net - Agei
Accounts Receivable, Net - Ageing Analysis of Accounts Receivable from Telephone and Internet Subscribers (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ 21,502 | ¥ 21,489 |
Cost/Deemed cost [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 25,936 | 26,181 |
Allowance for credit losses [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | (4,434) | (4,692) |
Telephone and Internet subscribers [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 8,633 | 9,343 |
Telephone and Internet subscribers [member] | Cost/Deemed cost [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 11,071 | 12,146 |
Telephone and Internet subscribers [member] | Cost/Deemed cost [member] | Current, within 1 month [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 7,068 | 7,545 |
Telephone and Internet subscribers [member] | Cost/Deemed cost [member] | 1 to 3 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 1,601 | 1,777 |
Telephone and Internet subscribers [member] | Cost/Deemed cost [member] | 4 to 12 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 1,481 | 1,822 |
Telephone and Internet subscribers [member] | Cost/Deemed cost [member] | More than 12 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 921 | 1,002 |
Telephone and Internet subscribers [member] | Allowance for credit losses [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ (2,438) | ¥ (2,803) |
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, 2020 | Dec. 31, 2019 |
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ 21,502 | ¥ 21,489 |
Cost/Deemed cost [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 25,936 | 26,181 |
Allowance for credit losses [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | (4,434) | (4,692) |
Other telecommunications operators and enterprise customers [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 12,869 | 12,146 |
Other telecommunications operators and enterprise customers [member] | Cost/Deemed cost [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 14,865 | 14,035 |
Other telecommunications operators and enterprise customers [member] | Cost/Deemed cost [member] | Current, within 1 month [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 5,331 | 4,701 |
Other telecommunications operators and enterprise customers [member] | Cost/Deemed cost [member] | 1 to 3 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 2,785 | 2,964 |
Other telecommunications operators and enterprise customers [member] | Cost/Deemed cost [member] | 4 to 12 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 3,801 | 3,768 |
Other telecommunications operators and enterprise customers [member] | Cost/Deemed cost [member] | More than 12 months [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | 2,948 | 2,602 |
Other telecommunications operators and enterprise customers [member] | Allowance for credit losses [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable | ¥ (1,996) | ¥ (1,889) |
Contract Assets - Summary of Co
Contract Assets - Summary of Contract Assets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Disclosure of contract assets [line items] | |||
Contract Assets | ¥ 604 | ¥ 474 | ¥ 478 |
Third parties [member] | |||
Disclosure of contract assets [line items] | |||
Contract Assets | 555 | 447 | |
China Telecom Group [member] | |||
Disclosure of contract assets [line items] | |||
Contract Assets | ¥ 49 | ¥ 27 |
Contract Assets – Additio
Contract Assets – Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Contract assets [abstract] | |||
Contract Assets | ¥ 604 | ¥ 474 | ¥ 478 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Classes of current inventories [abstract] | ||
Materials and supplies | ¥ 484 | ¥ 577 |
Goods for resale | 2,833 | 2,303 |
Inventories | ¥ 3,317 | ¥ 2,880 |
Prepayments and Other Current_3
Prepayments and Other Current Assets - Summary of Prepayments and Other Current Assets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about prepayments and other current assets [Line Items] | ||
Prepayments in connection with construction work and equipment purchases | ¥ 6,080 | ¥ 3,352 |
Prepaid expenses and deposits | 2,994 | 2,993 |
Value-added tax recoverable | 8,501 | 8,803 |
Other receivables | 6,061 | 5,294 |
Prepayments and other current assets | 25,167 | 22,219 |
Other telecommunications operators in the PRC [member] | ||
Disclosure of detailed information about prepayments and other current assets [Line Items] | ||
Amounts due from companies | 204 | 352 |
China Telecom Group [member] | ||
Disclosure of detailed information about prepayments and other current assets [Line Items] | ||
Amounts due from companies | 1,189 | 1,233 |
China Tower [member] | ||
Disclosure of detailed information about prepayments and other current assets [Line Items] | ||
Amounts due from companies | ¥ 138 | ¥ 192 |
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, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | ¥ 410,008 | |
Ending balance | 418,605 | ¥ 410,008 |
Cost/Deemed cost [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 1,001,717 | 988,481 |
Additions | 817 | 1,105 |
Transferred from construction in progress | 88,607 | 77,861 |
Retirement and disposal | (57,974) | (65,730) |
Ending balance | 1,033,167 | 1,001,717 |
Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | (591,709) | (580,686) |
Depreciation charge for the year | (70,958) | |
Depreciation charge for the year | (70,442) | |
Provision for impairment loss | (5,042) | |
Written back on retirement and disposal | 52,631 | 59,935 |
Ending balance | (614,562) | (591,709) |
Buildings and improvements [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 42,580 | |
Ending balance | 40,945 | 42,580 |
Buildings and improvements [member] | Cost/Deemed cost [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 104,365 | 102,541 |
Additions | 425 | 554 |
Transferred from construction in progress | 2,249 | 2,060 |
Retirement and disposal | (1,435) | (751) |
Reclassification | (10) | (39) |
Ending balance | 105,594 | 104,365 |
Buildings and improvements [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | (61,785) | (58,300) |
Depreciation charge for the year | (4,185) | |
Depreciation charge for the year | (4,196) | |
Written back on retirement and disposal | 1,324 | 681 |
Reclassification | 8 | 19 |
Ending balance | (64,649) | (61,785) |
Telecommunications network plant and equipment [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 359,360 | |
Ending balance | 369,671 | 359,360 |
Telecommunications network plant and equipment [member] | Cost/Deemed cost [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 865,717 | 854,382 |
Additions | 139 | 274 |
Transferred from construction in progress | 84,567 | 74,157 |
Retirement and disposal | (53,500) | (62,560) |
Reclassification | (512) | (536) |
Ending balance | 896,411 | 865,717 |
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 | (506,357) | (498,986) |
Depreciation charge for the year | (64,672) | |
Depreciation charge for the year | (64,208) | |
Provision for impairment loss | (5,027) | |
Written back on retirement and disposal | 48,451 | 56,943 |
Reclassification | 401 | 358 |
Ending balance | (526,740) | (506,357) |
Furniture, fixture, motor vehicles and other equipment [member] | ||
Disclosure of detailed information about property, plant and equipment (line items] | ||
Beginning balance | 8,068 | |
Ending balance | 7,989 | 8,068 |
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 | 31,635 | 31,558 |
Additions | 253 | 277 |
Transferred from construction in progress | 1,791 | 1,644 |
Retirement and disposal | (3,039) | (2,419) |
Reclassification | 522 | 575 |
Ending balance | 31,162 | 31,635 |
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 | (23,567) | (23,400) |
Depreciation charge for the year | (2,101) | |
Depreciation charge for the year | (2,038) | |
Provision for impairment loss | (15) | |
Written back on retirement and disposal | 2,856 | 2,311 |
Reclassification | (409) | (377) |
Ending balance | ¥ (23,173) | ¥ (23,567) |
Property, Plant And Equipment_4
Property, Plant And Equipment, Net – Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment loss on property, plant and equipment | ¥ 5,042 | ¥ 0 | ¥ 0 |
Construction in Progress - Summ
Construction in Progress - Summary of Construction in Progress (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about construction in progress [line items] | ||
Beginning balance | ¥ 59,206 | |
Ending balance | 48,425 | ¥ 59,206 |
Construction in progress [member] | ||
Disclosure of detailed information about construction in progress [line items] | ||
Beginning balance | 59,206 | 66,644 |
Additions | 84,145 | 76,870 |
Transferred to property, plant and equipment | (88,607) | (77,861) |
Transferred to intangible assets | (6,319) | (6,447) |
Ending balance | ¥ 48,425 | ¥ 59,206 |
Right-of-Use-Assets - Summary o
Right-of-Use-Assets - Summary of Detailed Information About Operating Lease Right Of Use Assets (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Carrying amount | ¥ 59,457 | ¥ 61,549 |
Depreciation charge, right-of-use assets | 14,242 | 12,343 |
Leasehold Lands [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Carrying amount | 20,441 | 20,952 |
Depreciation charge, right-of-use assets | 745 | 732 |
Buildings [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Carrying amount | 8,672 | 8,289 |
Depreciation charge, right-of-use assets | 3,626 | 2,968 |
Telecommunications towers and related assets [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Carrying amount | 18,866 | 23,740 |
Depreciation charge, right-of-use assets | 7,642 | 6,966 |
Equipment [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Carrying amount | 11,230 | 8,361 |
Depreciation charge, right-of-use assets | 2,151 | 1,612 |
Others [member] | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Carrying amount | 248 | 207 |
Depreciation charge, right-of-use assets | ¥ 78 | ¥ 65 |
Right-of-Use-Assets - Additiona
Right-of-Use-Assets - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Presentation of leases for lessee [abstract] | ||
Expense relating to short-term leases and other leases with lease terms end within 12 months of the date of initial application of IFRS 16 | ¥ 1,077 | ¥ 939 |
Expense relating to leases of low-value assets, excluding short-term leases of low value assets | 46 | 45 |
Variable lease payments not included in the measurement of lease liabilities | 5,151 | 4,640 |
Total cash outflow for leases | 20,798 | 18,240 |
Additions to right-of-use assets | ¥ 13,561 | ¥ 9,172 |
Goodwill - Summary of Goodwill
Goodwill - Summary of Goodwill (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of reconciliation of changes in goodwill [abstract] | ||
Goodwill arising from acquisition of CDMA business | ¥ 29,920 | ¥ 29,923 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | 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 | 9.60% | 9.20% | |
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% | 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] | 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, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about intangible assets [Line Items] | ||
Beginning balance | ¥ 16,349 | |
Ending balance | 18,508 | ¥ 16,349 |
Cost/Deemed cost [member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Beginning balance | 43,794 | 37,314 |
Additions | 1,489 | 624 |
Transferred from construction in progress | 6,319 | 6,447 |
Disposals | (748) | (591) |
Ending balance | 50,854 | 43,794 |
Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Beginning balance | (27,445) | (23,153) |
Amortization charge for the year | (5,556) | (4,844) |
Disposals | 655 | 552 |
Ending balance | ¥ (32,346) | ¥ (27,445) |
Interests in Associates - Summa
Interests in Associates - Summary of Interests in Associates (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of associates [line items] | ||
Share of post-acquisition changes in net assets | ¥ 3,135 | ¥ 2,019 |
Interests in associates | 40,303 | 39,192 |
Fair value of listed investments | 34,625 | 55,601 |
At cost [member] | ||
Disclosure of associates [line items] | ||
Interests in associates | ¥ 37,168 | ¥ 37,173 |
Interests in Associates - Detai
Interests in Associates - Details of Principal Associates Accounted for under Equity Method (Detail) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | |||
China Tower [member] | ||||
Disclosure of associates [line items] | ||||
Attributable equity interest | 20.50% | [1] | 20.50% | |
Principal activities | [1] | Construction, maintenance and operation of telecommunications towers as well as ancillary facilities | ||
Shanghai Info 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 disposal of telecommunications towers and related assets (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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of associates [line items] | |||
Interests in associates | ¥ 40,303 | ¥ 39,192 | |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of associates [line items] | ||||
Current assets | ¥ 84,016 | ¥ 73,182 | ||
Non-current assets | 631,080 | 629,949 | ||
Current liabilities | 271,142 | 264,661 | ||
Non-current liabilities | 77,779 | 83,430 | ||
Operating revenues | 393,561 | 375,734 | ¥ 377,124 | |
Profit for the year | 21,080 | 20,712 | 21,338 | |
Other comprehensive income for the year | (604) | 557 | (95) | |
Total comprehensive income for the year | 20,476 | 21,269 | ¥ 21,243 | |
China Tower [member] | ||||
Disclosure of associates [line items] | ||||
Current assets | 43,204 | 40,995 | ||
Non-current assets | 294,176 | 297,072 | ||
Current liabilities | 106,635 | 128,364 | ||
Non-current liabilities | 44,499 | 27,142 | ||
Operating revenues | 81,099 | 76,428 | ||
Profit for the year | 6,427 | 5,221 | ||
Other comprehensive income for the year | ||||
Total comprehensive income for the year | 6,427 | 5,221 | ||
Dividend received from China Tower | 525 | 81 | ||
Reconcile to the Group's interests in the associate: | ||||
Net assets of China Tower | 186,246 | 182,561 | ||
Non-controlling interests of China Tower | ¥ (1) | ¥ (2) | ||
The Group's effective interest in China Tower | 20.50% | [1] | 20.50% | |
The Group's share of net assets of China Tower | ¥ 38,180 | ¥ 37,425 | ||
Adjustment for the remaining balance of the deferred gain from the Tower Assets Disposal | (717) | (865) | ||
Carrying amount of the interest in China Tower in the consolidated financial statements of the Group | ¥ 37,463 | ¥ 36,560 | ||
[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 disposal of telecommunications towers and related assets (the “Tower Assets Disposal”); and (b) share of profits of associates. |
Interests in Associates - Sum_3
Interests in Associates - Summarized Financial Information of Shanghai Info Investment Incorporation and Reconciled to Carrying Amounts of Interests in Associates in Consolidated Financial Statements (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Disclosure of associates [line items] | ||||
Current assets | ¥ 84,016 | ¥ 73,182 | ||
Non-current assets | 631,080 | 629,949 | ||
Current liabilities | 271,142 | 264,661 | ||
Non-current liabilities | 77,779 | 83,430 | ||
Operating revenues | 393,561 | 375,734 | ¥ 377,124 | |
Profit for the year | 21,080 | 20,712 | 21,338 | |
Other comprehensive income for the year | (604) | 557 | (95) | |
Total comprehensive income for the year | 20,476 | 21,269 | ¥ 21,243 | |
Shanghai Info Investment Incorporation [member] | ||||
Disclosure of associates [line items] | ||||
Current assets | 4,752 | 4,292 | ||
Non-current assets | 5,878 | 5,203 | ||
Current liabilities | 2,124 | 2,494 | ||
Non-current liabilities | 1,803 | 787 | ||
Operating revenues | 982 | 3,214 | ||
Profit for the year | 641 | 1,158 | ||
Other comprehensive income for the year | (17) | (7) | ||
Total comprehensive income for the year | 624 | 1,151 | ||
Dividend received from Shanghai Info-investment | 14 | 9 | ||
Reconcile to the Group's interests in the associate: | ||||
Net assets of Shanghai Info-investment | 6,703 | 6,214 | ||
Non-controlling interests of Shanghai Info-investment | ¥ (83) | ¥ (144) | ||
The Group's effective interest in Shanghai Info-investment | 24.00% | [1] | 24.00% | |
The Group's share of net assets of Shanghai Info-investment | ¥ 1,589 | ¥ 1,457 | ||
Carrying amount of the interest in Shanghai Info-investment in the consolidated financial statements of the Group | ¥ 1,589 | ¥ 1,457 | ||
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of associates [line items] | |||
The Group's share of profit of these associates | ¥ 1,701 | ¥ 1,573 | ¥ 2,104 |
Aggregate carrying amount of interests in these associates in the consolidated financial statements of the Group | 40,303 | 39,192 | |
Aggregated individually immaterial associates [member] | |||
Disclosure of associates [line items] | |||
The Group's share of profit of these associates | 86 | 85 | |
The Group's share of total comprehensive income of these associates | 86 | 85 | |
Aggregate carrying amount of interests in these associates in the consolidated financial statements of the Group | ¥ 1,251 | ¥ 1,175 |
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) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
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 | ¥ 1,073 | ¥ 1,458 |
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 | 838 | 1,228 |
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 | ¥ 235 | ¥ 230 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Assets | ¥ 8,164 | ¥ 7,577 | ||
Liabilities | (24,208) | (19,078) | ||
Net Balance | (16,044) | (11,501) | ¥ (6,594) | ¥ (3,394) |
Equity instruments 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 | (137) | (234) | ||
Net Balance | (137) | (234) | (87) | (169) |
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 | 2,069 | 1,953 | ||
Net Balance | 2,069 | 1,953 | 1,925 | 1,829 |
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 | 5,299 | 4,862 | ||
Liabilities | (24,067) | (18,831) | ||
Net Balance | (18,768) | (13,969) | (8,442) | (5,073) |
Right-of-use assets and lease liabilities [member] | ||||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | ||||
Assets | 791 | 744 | ||
Net Balance | 791 | 744 | ||
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 | 5 | 18 | ||
Liabilities | (4) | (13) | ||
Net Balance | ¥ 1 | ¥ 5 | ¥ 10 | ¥ 19 |
Deferred Tax Assets and Liabi_4
Deferred Tax Assets and Liabilities - Movements in Deferred Tax Assets and Deferred Tax Liabilities (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | |||
Beginning balance | ¥ (11,501) | ¥ (6,594) | ¥ (3,394) |
Increase (decrease) due to changes in accounting policy | 676 | ||
Recognized in consolidated statement of comprehensive income | (4,543) | (5,583) | (3,200) |
Ending balance | (16,044) | (11,501) | (6,594) |
Equity instruments 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] | |||
Beginning balance | (234) | (87) | (169) |
Recognized in consolidated statement of comprehensive income | 97 | (147) | 82 |
Ending balance | (137) | (234) | (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] | |||
Beginning balance | 1,953 | 1,925 | 1,829 |
Recognized in consolidated statement of comprehensive income | 116 | 28 | 96 |
Ending balance | 2,069 | 1,953 | 1,925 |
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 | (13,969) | (8,442) | (5,073) |
Recognized in consolidated statement of comprehensive income | (4,799) | (5,527) | (3,369) |
Ending balance | (18,768) | (13,969) | (8,442) |
Right-of-use assets and lease liabilities [member] | |||
Deferred tax assets and deferred tax liabilities recognized in the consolidated statement of financial position and the movements [line items] | |||
Beginning balance | 744 | ||
Increase (decrease) due to changes in accounting policy | 676 | ||
Recognized in consolidated statement of comprehensive income | 47 | 68 | |
Ending balance | 791 | 744 | |
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 | 5 | 10 | 19 |
Recognized in consolidated statement of comprehensive income | (4) | (5) | (9) |
Ending balance | ¥ 1 | ¥ 5 | ¥ 10 |
Other Assets - Summary of Other
Other Assets - Summary of Other Assets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of other assets [line items] | ||
Other assets | ¥ 6,552 | ¥ 4,687 |
Contract costs [member] | ||
Disclosure of other assets [line items] | ||
Other assets | 1,151 | 988 |
Installation fees [member] | ||
Disclosure of other assets [line items] | ||
Other assets | 16 | 56 |
Other long-term prepaid expenses and receivables [member] | ||
Disclosure of other assets [line items] | ||
Other assets | ¥ 5,385 | ¥ 3,643 |
Other Assets - Summary of Oth_2
Other Assets - Summary of Other Assets (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Contract costs [member] | ||
Disclosure of other assets [line items] | ||
Capitalized costs recognized in profit or loss | ¥ 1,234 | ¥ 1,367 |
Short-term and Long-term Debt -
Short-term and Long-term Debt - Summary of Short-term Debt (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt | ¥ 27,994 | ¥ 42,527 |
Loans from China Telecom Group—unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt | 11,164 | 6,621 |
Loans from banks—unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt | 4,831 | 15,831 |
Super short-term commercial papers—unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt | ¥ 11,999 | 19,995 |
Other loans—unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Short-term debt | ¥ 80 |
Short-term and Long-term Debt_2
Short-term and Long-term Debt - Additional Information (Detail) - CNY (¥) ¥ in Millions | 1 Months Ended | ||
Jan. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about borrowings [line items] | |||
Unutilized committed credit facilities amount | ¥ 244,326 | ¥ 245,847 | |
Repayment of short term debt | ¥ 8,999 | ||
Short-term debt [member] | Weighted average [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 2.80% | 2.90% | |
Short-term debt [member] | China Telecom Group [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 3.10% | 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 | 3.30% | 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 | 4.40% | 4.40% | |
Super short-term commercial papers - unsecured [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 1.60% | 1.90% | |
Super short-term commercial papers - unsecured [member] | Top of range [member] | |||
Disclosure of detailed information about borrowings [line items] | |||
Debt instrument interest rate | 2.50% | 2.20% |
Short-term and Long-term Debt_3
Short-term and Long-term Debt - Summary of Long-term Debt (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | ¥ 25,348 | ¥ 36,495 |
Less: Current portion | (1,126) | (4,444) |
Non-current portion | 24,222 | 32,051 |
Bank loans—unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 7,351 | 8,199 |
Bank loans—unsecured [member] | Renminbi denominated [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 6,975 | 7,738 |
Bank loans—unsecured [member] | US Dollars denominated [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 224 | 288 |
Bank loans—unsecured [member] | Euro denominated [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 152 | 173 |
Other loans—unsecured [member] | Medium term note [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 4,996 | 4,995 |
Other loans—unsecured [member] | Company bonds – unsecured [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 2,000 | |
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 | ¥ 11,000 | ¥ 23,300 |
Short-term and Long-term Debt_4
Short-term and Long-term Debt - Summary of Long-term Debt (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | Mar. 10, 2020 | Mar. 19, 2019 | Jan. 22, 2019 | Dec. 25, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about borrowings [line items] | |||||||
Proceeds from borrowings | ¥ 81,049 | ¥ 103,315 | ¥ 97,829 | ||||
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 | ||||||
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 | 1.20% | ||||||
Bank loans - unsecured [member] | US Dollars denominated [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debt instrument maturity through | 2028 | ||||||
Bank loans - unsecured [member] | US Dollars denominated [member] | Bottom of range [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debt instrument interest rate | 1.25% | ||||||
Bank loans - unsecured [member] | US Dollars denominated [member] | Top of range [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debt instrument interest rate | 2.00% | ||||||
Bank loans - unsecured [member] | Euro denominated [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debt instrument interest rate | 2.30% | ||||||
Debt instrument maturity through | 2032 | ||||||
Loans from China Telecom Group – unsecured [member] | China Telecom Group [member] | Renminbi denominated [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debt instrument interest rate | 3.80% | ||||||
Repayment of partially loan | ¥ 12,300 | ¥ 13,700 | ¥ 3,000 | ||||
Proceeds from borrowings | ¥ 40,000 | ||||||
Loans from China Telecom Group – 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 | ||||||
Loans from China Telecom Group – 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 | ||||||
Medium term note [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debt instrument interest rate | 3.41% | 3.42% | |||||
Proceeds from borrowings | ¥ 2,000 | ¥ 3,000 | |||||
Debt issue costs | ¥ 3 | ¥ 3 | |||||
Other loans—unsecured [member] | Company bonds – unsecured [member] | |||||||
Disclosure of detailed information about borrowings [line items] | |||||||
Debt instrument interest rate | 2.90% | ||||||
Debt instrument maturity through | 3 years | ||||||
Proceeds from borrowings | ¥ 2,000 |
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, 2020 | Dec. 31, 2019 |
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | ¥ 25,348 | ¥ 36,495 |
Within 1 year or on demand [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 1,126 | |
More than 1 year but less than 2 years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 17,081 | |
More than 2 years but less than 3 years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 3,009 | |
More than 3 years but less than 4 years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 984 | |
More than 4 years but less than 5 years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | 952 | |
More than 5 years [member] | ||
Disclosure of detailed information about borrowings [line items] | ||
Total long-term debt | ¥ 2,196 |
Accounts Payable - Summary of A
Accounts Payable - Summary of Accounts Payable (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial liabilities [line items] | ||
Accounts payable | ¥ 107,578 | ¥ 102,616 |
China Telecom Group [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | 19,272 | 19,531 |
China Tower [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | 4,344 | 4,312 |
Third parties [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | 83,254 | 78,123 |
Other telecommunications operators in the PRC [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | ¥ 708 | ¥ 650 |
Accrued Expenses and Other Pa_3
Accrued Expenses and Other Payables - Summary of Accrued Expenses and Other Payables (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial liabilities [line items] | ||
Accrued expenses | ¥ 36,885 | ¥ 34,628 |
Advanced payment received in respect of contribution from non-controlling interests | 978 | |
Value-added tax payable | 600 | 564 |
Customer deposits and receipts in advance | 5,807 | 5,962 |
Accrued expenses and other payables | 56,775 | 48,516 |
Other telecommunications operators in the PRC [member] | ||
Disclosure of financial liabilities [line items] | ||
Amounts due to companies | 34 | 32 |
China Telecom Group [member] | ||
Disclosure of financial liabilities [line items] | ||
Amounts due to companies | 11,279 | 6,069 |
China Tower [member] | ||
Disclosure of financial liabilities [line items] | ||
Amounts due to companies | ¥ 1,192 | ¥ 1,261 |
Accrued Expenses and Other Pa_4
Accrued Expenses and Other Payables - Summary of Accrued Expenses and Other Payables (Parenthetical) (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2020CNY (¥) | |
E Surfing Pay [member] | |
Disclosure of financial liabilities [line items] | |
Advanced payment in respect of contribution from non-controlling interests | ¥ 978 |
Contract Liabilities - Summary
Contract Liabilities - Summary of Contract Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of contract liabilities [line items] | ||
Contract liabilities | ¥ 63,849 | ¥ 54,388 |
Third parties [member] | ||
Disclosure of contract liabilities [line items] | ||
Contract liabilities | 63,629 | 54,225 |
China Telecom Group [member] | ||
Disclosure of contract liabilities [line items] | ||
Contract liabilities | 217 | 162 |
China Tower [member] | ||
Disclosure of contract liabilities [line items] | ||
Contract liabilities | ¥ 3 | ¥ 1 |
Contract Liabilities - Addition
Contract Liabilities - Additional Information (Detail) ¥ in Millions | Jan. 01, 2019CNY (¥) |
Contract liabilities [abstract] | |
Contract liabilities at January 1, 2019 | ¥ 55,783 |
Lease Liabilities - Summary Of
Lease Liabilities - Summary Of Maturity For Opearting Lease Payments (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of maturity analysis of lease liabilities [Line Items] | ||
Undiscounted operating lease payments to be received | ¥ 40,647 | ¥ 42,146 |
Less: Current portion | (13,192) | (11,569) |
Non-current lease liabilities | 27,455 | 30,577 |
Within one year | ||
Disclosure of maturity analysis of lease liabilities [Line Items] | ||
Undiscounted operating lease payments to be received | 13,192 | 11,569 |
Within a period of more than one year but not more than two years | ||
Disclosure of maturity analysis of lease liabilities [Line Items] | ||
Undiscounted operating lease payments to be received | 12,585 | 10,887 |
Within a period of more than two year but not more than five years | ||
Disclosure of maturity analysis of lease liabilities [Line Items] | ||
Undiscounted operating lease payments to be received | 11,138 | 16,255 |
Within a period of more than five years | ||
Disclosure of maturity analysis of lease liabilities [Line Items] | ||
Undiscounted operating lease payments to be received | ¥ 3,732 | ¥ 3,435 |
Deferred Revenues - Summary of
Deferred Revenues - Summary of Deferred Revenues (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Deferred Revenue [line items] | ||
Balance at end of last year | ¥ 1,455 | ¥ 1,829 |
Amortization of installation fees | (55) | (90) |
Amortization of government grants | (261) | (284) |
Balance at end of year | 1,139 | 1,455 |
Current portion | 278 | 358 |
Non-current portion | ¥ 861 | ¥ 1,097 |
Share Capital - Summary of Shar
Share Capital - Summary of Share Capital (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
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, 2020 | Dec. 31, 2019 | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reserves with in equity [line items] | |||
Beginning balance | ¥ 355,040 | ¥ 344,099 | ¥ 329,671 |
Total comprehensive income for the year | 20,476 | 21,269 | 21,243 |
Acquisition of non-controlling interests | (1) | (8) | |
Contribution from non-controlling interests | 1,500 | 945 | |
Dividends | (9,262) | (8,891) | (7,568) |
Share of an associate's other changes in reserves | (36) | (305) | |
Ending balance | 366,175 | 355,040 | 344,099 |
Change in accounting policies [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | (2,443) | ||
Ending balance | (2,443) | ||
Restated balance [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | 341,656 | ||
Ending balance | 341,656 | ||
Capital reserve [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | 17,504 | 17,806 | 17,126 |
Acquisition of non-controlling interests | 3 | ||
Contribution from non-controlling interests | 680 | ||
Share of an associate's other changes in reserves | (36) | (305) | |
Ending balance | 17,468 | 17,504 | 17,806 |
Capital reserve [member] | Restated balance [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | 17,806 | ||
Ending balance | 17,806 | ||
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 | 10,746 | ||
Ending balance | 10,746 | ||
Surplus reserve [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | 78,043 | 76,474 | 74,599 |
Appropriations to statutory surplus reserve | 1,811 | 1,812 | 1,875 |
Ending balance | 79,854 | 78,043 | 76,474 |
Surplus reserve [member] | Change in accounting policies [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | (243) | ||
Ending balance | (243) | ||
Surplus reserve [member] | Restated balance [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | 76,231 | ||
Ending balance | 76,231 | ||
General risk reserve [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | 23 | ||
Appropriations to general risk reserve | 33 | 23 | |
Ending balance | 56 | 23 | |
Other reserves [Member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | 615 | 160 | 414 |
Total comprehensive income for the year | (294) | 455 | (249) |
Disposal of investments in equity instruments at fair value through other comprehensive income | (5) | ||
Ending balance | 321 | 615 | 160 |
Other reserves [Member] | Restated balance [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | 160 | ||
Ending balance | 160 | ||
Exchange reserve [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | (625) | (727) | (881) |
Total comprehensive income for the year | (312) | 102 | 154 |
Ending balance | (937) | (625) | (727) |
Exchange reserve [member] | Restated balance [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | (727) | ||
Ending balance | (727) | ||
Retained earnings [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | 165,272 | 157,678 | 145,906 |
Total comprehensive income for the year | 20,850 | 20,517 | 21,210 |
Disposal of investments in equity instruments at fair value through other comprehensive income | 5 | ||
Dividends | (9,262) | (8,891) | (7,568) |
Appropriations to statutory surplus reserve | (1,811) | (1,812) | (1,875) |
Appropriations to general risk reserve | (33) | (23) | |
Ending balance | 175,016 | 165,272 | 157,678 |
Retained earnings [member] | Change in accounting policies [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | (2,197) | ||
Ending balance | (2,197) | ||
Retained earnings [member] | Restated balance [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | 155,481 | ||
Ending balance | 155,481 | ||
Reserves [Member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | 271,578 | 262,137 | 247,910 |
Total comprehensive income for the year | 20,244 | 21,074 | 21,115 |
Acquisition of non-controlling interests | 3 | ||
Contribution from non-controlling interests | 680 | ||
Dividends | (9,262) | (8,891) | (7,568) |
Share of an associate's other changes in reserves | (36) | (305) | |
Ending balance | ¥ 282,524 | 271,578 | 262,137 |
Reserves [Member] | Change in accounting policies [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | (2,440) | ||
Ending balance | (2,440) | ||
Reserves [Member] | Restated balance [member] | |||
Disclosure of reserves with in equity [line items] | |||
Beginning balance | ¥ 259,697 | ||
Ending balance | ¥ 259,697 |
Reserves - Summary of Reserve_2
Reserves - Summary of Reserves (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
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 | ¥ 33,775 | ¥ 33,775 | ¥ 31,964 |
Discretionary surplus reserve | 46,079 | 46,079 | 46,079 |
Amount of retained earnings available for distribution | 145,351 | 145,351 | 138,312 |
Final dividend for financial year 2020 proposed after the end of the reporting period, total | ¥ 8,403 | 8,403 | |
Statutory reserves [member] | |||
Disclosure of reserves with in equity [line items] | |||
Appropriations | ¥ 1,811 | ¥ 1,812 |
Operating Revenues - Disclosure
Operating Revenues - Disclosure of Disaggregation of Revenues (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of revenue [line items] | |||
Revenue from contracts with customers | ¥ 387,991 | ¥ 369,897 | ¥ 372,821 |
Revenue from other sources | 5,570 | 5,837 | 4,303 |
Total operating revenues | 393,561 | 375,734 | 377,124 |
Voice services [member] | |||
Disclosure of revenue [line items] | |||
Revenue from contracts with customers | 40,866 | 45,146 | 50,811 |
Internet services [member] | |||
Disclosure of revenue [line items] | |||
Revenue from contracts with customers | 208,019 | 197,244 | 190,871 |
Information and application services [member] | |||
Disclosure of revenue [line items] | |||
Revenue from contracts with customers | 96,885 | 87,623 | 83,478 |
Telecommunications network resource and equipment services [member] | |||
Disclosure of revenue [line items] | |||
Revenue from contracts with customers | 22,623 | 21,978 | 20,211 |
Sales of goods and others [member] | |||
Disclosure of revenue [line items] | |||
Revenue from contracts with customers | 19,598 | 17,906 | 27,450 |
A point in time [member] | |||
Disclosure of revenue [line items] | |||
Total operating revenues | 16,141 | 14,591 | 24,496 |
Over time [member] | |||
Disclosure of revenue [line items] | |||
Total operating revenues | ¥ 377,420 | ¥ 361,143 | ¥ 352,628 |
Operating Revenues - Additional
Operating Revenues - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Operating Revenue [line items] | |||
Estimated period of recognizing revenues | 1 year to 3 years | 1 year to 3 years | 1 year to 3 years |
Bottom of range [member] | |||
Disclosure of Operating Revenue [line items] | |||
Estimated period of recognizing revenues | 1 year | 1 year | 1 year |
Top of range [member] | |||
Disclosure of Operating Revenue [line items] | |||
Estimated period of recognizing revenues | 3 years | 3 years | 3 years |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Expenses by nature [abstract] | |||
Operating and maintenance | ¥ 70,943 | ¥ 65,087 | ¥ 64,056 |
Utility | 14,637 | 13,818 | 13,477 |
Network resources usage and related fee | 22,766 | 20,976 | 29,434 |
Others | 11,171 | 9,918 | 9,095 |
Network operations and support expenses | ¥ 119,517 | ¥ 109,799 | ¥ 116,062 |
Personnel Expenses - Personnel
Personnel Expenses - Personnel Expenses by Functions (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of personnel expenses [line items] | |||
Personnel expenses | ¥ 65,989 | ¥ 63,567 | ¥ 59,736 |
Network operations and support [member] | |||
Disclosure of personnel expenses [line items] | |||
Personnel expenses | 43,260 | 42,214 | 40,388 |
Selling, general and administrative [member] | |||
Disclosure of personnel expenses [line items] | |||
Personnel expenses | ¥ 22,729 | ¥ 21,353 | ¥ 19,348 |
Other Operating Expenses - Summ
Other Operating Expenses - Summary of Other Operating Expenses (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Expenses by nature [abstract] | |||
Interconnection charges | ¥ 12,050 | ¥ 12,683 | ¥ 12,878 |
Cost of goods sold | 15,440 | 13,413 | 23,185 |
Donations | 13 | 1 | 20 |
Others | 1,571 | 1,695 | 1,614 |
Other operating expenses | ¥ 29,074 | ¥ 27,792 | ¥ 37,697 |
Net Finance Costs - Summary of
Net Finance Costs - Summary of Net Finance Costs (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of finance costs [Line Items] | |||
Interest expense on short-term and long-term debts | ¥ 1,981 | ¥ 2,623 | ¥ 3,278 |
Interest expense on lease liabilities | 1,566 | 1,607 | |
Less: Interest expense capitalized | (114) | (140) | (185) |
Net interest expense | 3,433 | 4,090 | 3,093 |
Interest income | (582) | (492) | (306) |
Foreign exchange losses | 1,018 | 680 | 423 |
Foreign exchange gains | (855) | (639) | (502) |
Net finance costs | ¥ 3,014 | ¥ 3,639 | ¥ 2,708 |
Bottom of range [member] | |||
Disclosure of finance costs [Line Items] | |||
Capitalization rate of interest expense in construction in progress per annum | 3.00% | 3.50% | 3.80% |
Top of range [member] | |||
Disclosure of finance costs [Line Items] | |||
Capitalization rate of interest expense in construction in progress per annum | 4.40% | 4.40% | 4.40% |
Income Tax - Summary of Income
Income Tax - Summary of Income Tax in Profit or Loss (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of income tax expense and deferred taxes [line items] | |||
Deferred taxation | ¥ 4,640 | ¥ 5,436 | ¥ 3,282 |
Actual income tax expense | 6,307 | 6,322 | 6,810 |
PRC [member] | |||
Disclosure of income tax expense and deferred taxes [line items] | |||
Provision for income tax | 1,532 | 781 | 3,408 |
Other tax jurisdictions [member] | |||
Disclosure of income tax expense and deferred taxes [line items] | |||
Provision for income tax | ¥ 135 | ¥ 105 | ¥ 120 |
Income Tax - Reconciliation of
Income Tax - Reconciliation of Expected Tax Expense with Actual Tax Expense (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | |||
Earnings before income tax | ¥ 27,387 | ¥ 27,034 | ¥ 28,148 |
Expected income tax expense at statutory tax rate of 25% | 6,847 | 6,759 | 7,037 |
Differential tax rate on PRC subsidiaries' and branches' income | (306) | (315) | (291) |
Differential tax rate on other subsidiaries' income | (47) | (129) | (58) |
Non-deductible expenses | 915 | 979 | 537 |
Non-taxable income | (576) | (460) | (319) |
Effect of change in tax rate | (29) | ||
Others | (497) | (512) | (96) |
Actual income tax expense | ¥ 6,307 | ¥ 6,322 | ¥ 6,810 |
Income Tax - Reconciliation o_2
Income Tax - Reconciliation of Expected Tax Expense with Actual Tax Expense (Parenthetical) (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of reconciliation of average effective tax rate and applicable tax rate [line items] | ||
Statutory income tax rate | 15.00% | 15.00% |
Effect of change in tax rate charged to comprehensive income | ¥ 29 | |
Mainland China [member] | ||
Disclosure of reconciliation of average effective tax rate and applicable tax rate [line items] | ||
Statutory income tax rate | 25.00% | 25.00% |
Dividends - Additional Informat
Dividends - Additional Information (Detail) ¥ / shares in Units, ¥ in Millions | Dec. 31, 2020CNY (¥) | Dec. 31, 2020$ / shares | Jul. 31, 2020CNY (¥)¥ / shares | Jul. 31, 2020$ / shares | Jul. 26, 2019CNY (¥)¥ / shares | Jul. 26, 2019$ / shares | Dec. 31, 2020CNY (¥) |
Disclosure of Dividends [abstract] | |||||||
Final dividend for financial year 2020 proposed after the end of the reporting period, per share | $ / shares | $ 0.125 | ||||||
Final dividend for financial year 2020 proposed after the end of the reporting period, total | ¥ 8,403 | ¥ 8,403 | |||||
Dividends paid, per share | (per share) | ¥ 0.114441 | $ 0.125 | ¥ 0.109851 | $ 0.125 | |||
Dividends paid, total | ¥ 9,262 | ¥ 8,891 |
Basic Earnings Per Share - Addi
Basic Earnings Per Share - Additional Information (Detail) - CNY (¥) ¥ in Millions, shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share [abstract] | |||
Profit attributable to equity holders of the Company | ¥ 20,850 | ¥ 20,517 | ¥ 21,210 |
Number of shares | 80,932 | 80,932 | 80,932 |
Commitments and Contingencies -
Commitments and Contingencies - Capital Commitments (Detail) ¥ in Millions | Dec. 31, 2020CNY (¥) |
Disclosure of commitments [line items] | |
Capital commitments | ¥ 20,199 |
Property [member] | |
Disclosure of commitments [line items] | |
Capital commitments, Contracted for but not provided | 1,202 |
Telecommunications network plant and equipment [member] | |
Disclosure of commitments [line items] | |
Capital commitments, Contracted for but not provided | ¥ 18,997 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about financial instruments [line items] | ||
Transfers among instruments between levels of fair value | ¥ 0 | |
Loss allowance for accounts receivable | 4,434 | ¥ 4,692 |
Loss allowance for contract assets | 9 | 8 |
Loss allowance individually calculated | ¥ 556 | ¥ 615 |
Fixed rate debt as a percentage of total debt | 90.10% | 82.90% |
Percentage of cash and cash equivalents denominated in Renminbi | 73.00% | 78.00% |
Percentage of short-term and long-term debt denominated in Renminbi | 99.30% | 99.40% |
Equity instruments at fair value through other comprehensive income | ¥ 1,073 | ¥ 1,458 |
Equity securities listed in the mainland China [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Equity instruments at fair value through other comprehensive income | ¥ 838 | ¥ 1,228 |
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 | 2.90% | 3.70% |
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, 2020 | Dec. 31, 2019 |
Disclosure of financial liabilities [line items] | ||
Carrying amount | ¥ 258,342 | ¥ 272,300 |
Long-term debt [member] | ||
Disclosure of financial liabilities [line items] | ||
Carrying amount | 25,348 | 36,495 |
Fair value | ¥ 25,294 | ¥ 35,780 |
Financial Instruments - Summary
Financial Instruments - Summary of Accounts Receivables (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | ||
Loss allowance | ¥ 4,434 | ¥ 4,692 |
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 | 11,071 | 12,146 |
Loss allowance | ¥ 2,438 | ¥ 2,803 |
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% | 2.00% |
Gross carrying amount | ¥ 7,068 | ¥ 7,545 |
Loss allowance | ¥ 132 | ¥ 141 |
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% | 20.00% |
Gross carrying amount | ¥ 1,601 | ¥ 1,777 |
Loss allowance | ¥ 317 | ¥ 349 |
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% | 60.00% |
Gross carrying amount | ¥ 561 | ¥ 739 |
Loss allowance | ¥ 333 | ¥ 444 |
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% | 80.00% |
Gross carrying amount | ¥ 920 | ¥ 1,083 |
Loss allowance | ¥ 735 | ¥ 867 |
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% | 100.00% |
Gross carrying amount | ¥ 921 | ¥ 1,002 |
Loss allowance | ¥ 921 | ¥ 1,002 |
Financial Instruments - Summa_2
Financial Instruments - Summary of Accounts Receivable From Enterprise Customers and Contract Assets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of information about Group's exposure to credit risk and expected credit losses for accounts receivable [line items] | ||
Loss allowance | ¥ 4,434 | ¥ 4,692 |
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 | 8,507 | 8,130 |
Loss allowance | ¥ 1,458 | ¥ 1,282 |
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% | 2.00% |
Gross carrying amount | ¥ 6,031 | ¥ 5,452 |
Loss allowance | ¥ 124 | ¥ 102 |
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 | 22.00% | 20.00% |
Gross carrying amount | ¥ 1,120 | ¥ 1,428 |
Loss allowance | ¥ 232 | ¥ 239 |
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 | 67.00% | 60.00% |
Gross carrying amount | ¥ 685 | ¥ 621 |
Loss allowance | ¥ 445 | ¥ 353 |
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 | 100.00% | 90.00% |
Gross carrying amount | ¥ 347 | ¥ 258 |
Loss allowance | ¥ 333 | ¥ 224 |
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% | 100.00% |
Gross carrying amount | ¥ 324 | ¥ 371 |
Loss allowance | ¥ 324 | ¥ 364 |
Financial Instruments - Summa_3
Financial Instruments - Summary of Movements in Loss Allowance Account in Respect of Accounts Receivables (Detail) - Accounts receivable [member] - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial assets [line items] | |||
At beginning of year | ¥ 4,692 | ¥ 4,680 | ¥ 4,761 |
Impairment losses for ECL | 1,382 | 1,653 | 2,008 |
Amounts written off | (1,640) | (1,641) | (2,089) |
At end of year | ¥ 4,434 | ¥ 4,692 | ¥ 4,680 |
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, 2020 | Dec. 31, 2019 |
Disclosure of carrying amount and total contractual undiscounted cash flow for non-derivative financial liabilities [line items] | ||
Short-term debt, carrying amount | ¥ 27,994 | ¥ 42,527 |
Long-term debt, carrying amount | 25,348 | 36,495 |
Accounts payable, carrying amount | 107,578 | 102,616 |
Accrued expenses and other payables, carrying amount | 56,775 | 48,516 |
Finance lease obligations, carrying amount | 40,647 | 42,146 |
Financial liabilities, carrying amount | 258,342 | 272,300 |
Short-term debt, contractual undiscounted cash flow | 28,417 | 43,697 |
Long-term debt, contractual undiscounted cash flow | 27,805 | 40,791 |
Accounts payable, contractual undiscounted cash flow | 107,578 | 102,616 |
Accrued expenses and other payables, contractual undiscounted cash flow | 56,775 | 48,516 |
Finance lease obligations, contractual undiscounted cash flow | 43,896 | 45,535 |
Financial liabilities, contractual undiscounted cash flow | 264,471 | 281,155 |
Within 1 year or on demand [member] | ||
Disclosure of carrying amount and total contractual undiscounted cash flow for non-derivative financial liabilities [line items] | ||
Long-term debt, carrying amount | 1,126 | |
Short-term debt, contractual undiscounted cash flow | 28,417 | 43,697 |
Long-term debt, contractual undiscounted cash flow | 1,410 | 4,625 |
Accounts payable, contractual undiscounted cash flow | 107,578 | 102,616 |
Accrued expenses and other payables, contractual undiscounted cash flow | 56,775 | 48,516 |
Finance lease obligations, contractual undiscounted cash flow | 14,449 | 12,846 |
Financial liabilities, contractual undiscounted cash flow | 208,629 | 212,300 |
More than 1 year but less than 2 years [member] | ||
Disclosure of carrying amount and total contractual undiscounted cash flow for non-derivative financial liabilities [line items] | ||
Long-term debt, carrying amount | 17,081 | |
Long-term debt, contractual undiscounted cash flow | 17,838 | 1,184 |
Finance lease obligations, contractual undiscounted cash flow | 13,363 | 11,794 |
Financial liabilities, contractual undiscounted cash flow | 31,201 | 12,978 |
More than 2 years but less than 5 years [member] | ||
Disclosure of carrying amount and total contractual undiscounted cash flow for non-derivative financial liabilities [line items] | ||
Long-term debt, contractual undiscounted cash flow | 5,609 | 30,824 |
Finance lease obligations, contractual undiscounted cash flow | 12,110 | 17,266 |
Financial liabilities, contractual undiscounted cash flow | 17,719 | 48,090 |
More than 5 years [member] | ||
Disclosure of carrying amount and total contractual undiscounted cash flow for non-derivative financial liabilities [line items] | ||
Long-term debt, carrying amount | 2,196 | |
Long-term debt, contractual undiscounted cash flow | 2,948 | 4,158 |
Finance lease obligations, contractual undiscounted cash flow | 3,974 | 3,629 |
Financial liabilities, contractual undiscounted cash flow | ¥ 6,922 | ¥ 7,787 |
Financial Instruments - Interes
Financial Instruments - Interest Rate Profile of Debt (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of financial instruments by type of interest rate [line items] | ||
Short-term debt | ¥ 27,994 | ¥ 42,527 |
Long-term debt | 25,348 | 36,495 |
Total debt | ¥ 53,342 | ¥ 79,022 |
Fixed rate debt as a percentage of total debt | 90.10% | 82.90% |
Fixed rate debt [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Short-term debt | ¥ 22,719 | ¥ 29,022 |
Long-term debt | 25,348 | 36,495 |
Total debt | ¥ 48,067 | ¥ 65,517 |
Fixed rate debt [member] | Short-term debt [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Effective interest rate | 2.70% | 2.50% |
Fixed rate debt [member] | Long-term debt [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Effective interest rate | 2.70% | 3.10% |
Variable rate debt [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Short-term debt | ¥ 5,275 | ¥ 13,505 |
Total debt | ¥ 5,275 | ¥ 13,505 |
Variable rate debt [member] | Short-term debt [member] | ||
Disclosure of financial instruments by type of interest rate [line items] | ||
Effective interest rate | 3.30% | 3.80% |
Capital Management - Additional
Capital Management - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Statement [LineItems] | ||
Total debt-to-total assets ratio | 7.50% | 11.20% |
Deposits Received [member] | ||
Statement [LineItems] | ||
Debts excluded in debt to total assets ratio | ¥ 9,826 | ¥ 4,098 |
Lease liabilities [member] | ||
Statement [LineItems] | ||
Debts excluded in debt to total assets ratio | ¥ 40,647 | ¥ 42,146 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Beginning balance | ¥ 125,266 | ¥ 141,392 | |
Financing cash flows | (41,270) | (32,473) | |
New leases | 13,561 | 8,856 | |
Lease modifications | (1,254) | (589) | |
Transferred to accounts payables | (2,618) | (2,900) | |
Interest expenses | 1,832 | 1,891 | |
Foreign exchange (gain)/loss | (29) | 9 | |
Acquisition of non-controlling interests | (1) | (8) | |
Distribution to non-controlling interests | 42 | 181 | ¥ 177 |
Dividends declared | 9,262 | 8,891 | |
Ending balance | 104,793 | 125,266 | 141,392 |
Short-term Debt [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Beginning balance | 42,527 | 49,537 | |
Financing cash flows | (14,533) | (7,010) | |
Ending balance | 27,994 | 42,527 | 49,537 |
Long-term debt [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Beginning balance | 36,495 | 45,991 | |
Financing cash flows | (11,400) | (9,782) | |
Interest expenses | 266 | 284 | |
Foreign exchange (gain)/loss | (13) | 2 | |
Ending balance | 25,348 | 36,495 | 45,991 |
Lease liabilities/finance lease obligations [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Beginning balance | 42,146 | 45,864 | |
Financing cash flows | (12,738) | (10,699) | |
New leases | 13,561 | 8,856 | |
Lease modifications | (1,254) | (589) | |
Transferred to accounts payables | (2,618) | (2,900) | |
Interest expenses | 1,566 | 1,607 | |
Foreign exchange (gain)/loss | (16) | 7 | |
Ending balance | 40,647 | 42,146 | ¥ 45,864 |
Dividend Payable [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Financing cash flows | (9,304) | (9,072) | |
Distribution to non-controlling interests | 42 | 181 | |
Dividends declared | 9,262 | 8,891 | |
Ending balance | 0 | ||
Deposits With Finance Company [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Beginning balance | 4,098 | ||
Financing cash flows | 5,728 | 4,098 | |
Ending balance | 9,826 | 4,098 | |
Other Payables In Respect Of Certain Equity Transactions [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Financing cash flows | 977 | (8) | |
Acquisition of non-controlling interests | 1 | ¥ 8 | |
Ending balance | ¥ 978 |
Reconciliation of Liabilities_4
Reconciliation of Liabilities Arising from Financing Activities - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Net financing cash flows | ¥ 41,270 | ¥ 32,473 | |
Contribution from non-controlling interests | 0 | 1,590 | ¥ 855 |
Statutory reserve deposits | 837 | 405 | |
E Surfing Pay [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Contribution from non-controlling interests | 90 | ||
Contribution from non-controlling interests receivable | 945 | ||
Finance Company [member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Contribution from non-controlling interests | 1,500 | ||
China Telecom Group [Member] | |||
Disclosure of reconciliation of liabilities arising from financing activities [line Items] | |||
Net deposits | ¥ 9,826 | ¥ 4,098 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [Line Items] | |||
Construction and engineering services | ¥ 15,046 | ¥ 14,014 | ¥ 16,396 |
Receiving ancillary services | 18,903 | 18,571 | 16,744 |
Interconnection revenues | 54 | 97 | 80 |
Interconnection charges | 123 | 183 | 204 |
Receiving community services | 3,682 | 3,464 | 3,296 |
Net transaction amount of centralized services | 268 | 133 | 519 |
Property lease income | 45 | 57 | 48 |
Property lease related expenses | 581 | 577 | 713 |
Addition to right-of-use assets | 335 | 284 | |
Interest expense on lease liabilities | 16 | 11 | |
Provision of IT services | 556 | 464 | 531 |
Receiving IT services | 2,653 | 2,175 | 1,895 |
Purchases of telecommunications equipment and materials | 3,567 | 3,538 | 3,760 |
Sales of telecommunications equipment and materials | 2,070 | 1,444 | 2,760 |
Internet applications channel services | 73 | 108 | 298 |
Interest on amounts due to and loans from China Telecom Group | 975 | 1,485 | 2,099 |
Others | 243 | 189 | ¥ 186 |
Net deposit by China Telecom Group with Finance Company | 5,728 | 4,098 | |
Interest expense on the deposit by China Telecom Group with Finance Company | 82 | 7 | |
Accounts receivable | 1,784 | 1,188 | |
Contract assets | 49 | 27 | |
Prepayments and other current assets | 1,189 | 1,233 | |
Total amounts due from China Telecom Group | 3,022 | 2,448 | |
Accounts payable | 19,272 | 19,531 | |
Accrued expenses and other payables | 11,279 | 6,069 | |
Contract liabilities | 217 | 162 | |
Lease liabilities | 489 | 389 | |
Short-term debt | 11,164 | 6,621 | |
Long-term debt | 11,000 | 23,300 | |
Total amounts due to China Telecom Group | ¥ 53,421 | ¥ 56,072 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - CNY (¥) | Dec. 31, 2020 | Dec. 31, 2019 |
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) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [Line Items] | |||
Additions of right-of-use assets | ¥ 13,561 | ¥ 9,172 | |
Interest expense on lease liabilities | 1,566 | 1,607 | |
China Tower [member] | |||
Disclosure of transactions between related parties [Line Items] | |||
Tower assets lease related expenses | 10,746 | 10,543 | ¥ 16,063 |
Additions of right-of-use assets | 3,645 | 3,735 | |
Interest expense on lease liabilities | 805 | 938 | |
Provision of IT services | 31 | 31 | ¥ 32 |
Accounts receivable | 23 | 5 | |
Prepayments and other current assets | 138 | 192 | |
Total amounts due from China Tower | 161 | 197 | |
Accounts payable | 4,344 | 4,312 | |
Accrued expenses and other payables | 1,192 | 1,261 | |
Contract liabilities | 3 | 1 | |
Lease liabilities | 19,798 | 24,474 | |
Total amounts due to China Tower | ¥ 25,337 | ¥ 30,048 |
Related Party Transactions - Ke
Related Party Transactions - Key Management Personnel Compensation (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of transactions between related parties [abstract] | |||
Short-term employee benefits | ¥ 8,727 | ¥ 9,604 | ¥ 7,942 |
Post-employment benefits | 628 | 1,199 | 799 |
Key management personnel compensation | ¥ 9,355 | ¥ 10,803 | ¥ 8,741 |
Post-employment Benefits Plans
Post-employment Benefits Plans - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of defined benefit plans [Line Items] | |||
Contribution to post-employment benefit plans | ¥ 6,599 | ¥ 8,616 | ¥ 7,256 |
Amount payable for contributions to defined contribution retirement plans | ¥ 746 | ¥ 755 | |
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 | 14.00% | ||
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) ¥ in Millions | 1 Months Ended | 12 Months Ended | ||||
Nov. 30, 2018$ / shares | Dec. 31, 2020CNY (¥) | Dec. 31, 2019CNY (¥) | Nov. 30, 2023 | Nov. 30, 2022 | Nov. 30, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||||
Number of share appreciation right units exercised | 0 | 0 | ||||
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 | |||||
Compensation expense in respect of share appreciation rights | ¥ 101 | ¥ 136 | ||||
Liability arising from share appreciation rights | ¥ 65 | ¥ 166 | ||||
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, 2020CNY (¥) | Dec. 31, 2020HKD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020MOP (MOP$) | Dec. 31, 2020SGD ($) | Dec. 31, 2020AUD ($) | Dec. 31, 2020KRW (₩) | Dec. 31, 2020MYR (RM) | Dec. 31, 2020VND (₫) | Dec. 31, 2020GBP (£) | Dec. 31, 2019CNY (¥) | |
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-commerce service | ||||||||||
Registered/issued capital | ¥ 635 | ||||||||||
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 telecommunications 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 | ||||||||||
China Telecom Group Finance Co., Ltd [member] | |||||||||||
Disclosure of subsidiaries [line Items] | |||||||||||
Name of company | China Telecom Group Finance Co., Ltd. (“Finance Company”) | ||||||||||
Type of legal entity | Limited Company | ||||||||||
Date of incorporation | Jan. 8, 2019 | ||||||||||
Place of incorporation and operation | PRC | ||||||||||
Principal activities | Provision of capital and financial management services | ||||||||||
Registered/issued capital | ¥ 5,000 |
Principal Subsidiaries - Additi
Principal Subsidiaries - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2020 | |
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% |
China Telecom Group Finance Co., Ltd [member] | |
Disclosure of subsidiaries [line Items] | |
Percentage owned by the company | 70.00% |
Accounting Estimates and Judg_2
Accounting Estimates and Judgments - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of changes in accounting estimates [Line Items] | |||
Provision for impairment loss for long-lived assets | ¥ 5,042 | ¥ 0 | ¥ 0 |
Events After the Reporting Pe_2
Events After the Reporting Period - Additional Information (Detail) - Non-adjusting events after reporting period [member] - shares shares in Millions | Feb. 09, 2021 | Jan. 20, 2021 |
Disclosure of Events After Reporting Period [line items] | ||
Number of days taken for company to be in restricted list | 60 days | |
2021 share appreciation rights grant proposal for key personnel of china telecom corporation limited [member] | ||
Disclosure of Events After Reporting Period [line items] | ||
Key management personnel compensation, share-based payment | 2,412 | |
Number of key managerial personnel | 8,300 |