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Investor Presentaiton

Cost Appropriately Contained and Reduced to Support High-quality Development 中国电信 CHINA TELECOM RMB Mil Operating Expenses Incl.: Depreciation & Amortisation 1H2022 Change 219,206 10.7% 46,735 3.6% Network Operations & Support 70,051 9.6% Personnel SG&A 44,618 12.4% 32,026 11.4% Interconnection Charges 6,348 4.8% Cost of Goods Sold • Seized the strategic opportunity of rapid digital economy development and increased initiatives in sci-tech innovation, Industrial Digitalisation and other key areas to enhance resource efficiency • • • Expanded 5G co-build and co-share and 4G network co-share, D&A continued to grow slower than revenue Digitalised operation reduced cost and increased efficiency, network operation related expense grew slower than revenue Seized development opportunity and appropriately increased initiatives in high growth areas, such as Industrial Digitalisation, Smart Family and others Strengthened high-tech talent recruitment • Increased incentives to frontline staff and high-performance teams • Precision sales and marketing resulting stable selling expense as a % of revenue Enhanced core capability, continued to increase R&D initiatives for future growth momentum 18,519 35.4% Significantly increased 5G handset sales volume 2022 Interim Results | 28
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