2007

Key Financial Data⁽¹⁾

Hong Kong GAAP (excluding upfront connection fees) (in RMB millions, except earnings per share)	2007	2006
Revenue	82,488	81,788
EBITDA(2)	41,244	42,058
Consolidated Net Profit(3)	10,578	10,559
CAPEX	20,684	24,560
Free cash flow(4)	11,775	7,490

Note:
(1)	Since the Group disposed of Asia Netcom on August 22nd, 2006 and disposed of its telecommunications assets, liabilities and business operations in Guangdong and Shanghai branches in the PRC on February 28th, 2007, the results and cash flows of the operation of the Guangdong and Shanghai branches and Asia Netcom, and the gains on the disposals have been presented as discontinued operations. Accordingly, the comparative results and cash flows in 2006 have been restated here. The Group acquired a 100% equity interest in Beijing Telecommunications Planning and Designing Institute Corporation Limited, a subsidiary of China Netcom Beijing Communications Corporation on December 31st, 2007. Since the transaction is a business combination under common control, the business and assets acquired have been presented in the book value according to HKFRS and regarded as being owned by the Group from the beginning of the period presented. Accordingly, the 2006 financial data have been restated.
(2)	Excluding other income
(3)	Consolidated net profit in 2006 included net profit from discontinued operation of RMB1,487 million, while the consolidated net profit in 2007 included net profit from discontinued operation of RMB 624 million
(4)	Net cash inflow from operating activities of continuing operations net of our capital expenditure

Key Operating Data

	2007	2006
Local Access subscribers ('000)	110,820	113,972
Including: PHS subscribers ('000)	26,189	27,316
Broadband subscribers ('000)	19,768	14,429
Total usage (pulses in millions)	202,547	214,474
Excluding Internet dial-up usage (pulses in millions)	198,887	209,223
Domestic long distance calls (minutes in millions)	28,797	28,809
International long distance calls* (minutes in millions)	344	324
Number of ports for DDN (ports)	101,815	115,315
Number of ports for Frame Relay (ports)	37,337	41,254
Number of ports for ATM (ports)	6,876	6,361
Digital circuits leased (x2Mbps)	219,881	161,582
Volume of PHS short messages (in millions)	7,531	7,815
"Personalised Ring" subscribers ('000)	28,137	15,758
Penetration for caller ID (%)	72.2%	68.8%
Telephone information services (million minutes)	1,696	2,457

Note: The above operational data excludes our Southern service region.
* Including calls to Hong Kong, Macau and Taiwan

2006

Key Financial Data

Hong Kong GAAP (excluding upfront connection fees) (in RMB millions, except earnings per share)	2006	2005
Consolidated Revenue(1)	85,495	83,827
Including: Revenue from Continuing Operation	84,515	82,456
Consolidated EBITDA(1)	43,179	42,150
Consolidated Net Profit(1)	10,554	10,483
CAPEX(2)	26,474	27,247
Free cash flow(2)(3)	7,476	6,236

Note:
(1)	Including continuing operations, discontinued operations and related adjustments.
(2)	Refers to the continuing operations.
(3)	Free cash flow refers to net cash inflow from operating activities of continuing operations net of capital expenditure.

Key Operating Data

	2006	2005
Local Access subscribers ('000)	114,934	115,328
Including: PHS subscribers ('000)	27,334	27,337
Broadband subscribers ('000)	15,081	11,475
Total usage (pulses in millions)	217,270	228,436
Excluding Internet dial-up usage (pulses in millions)	211,999	219,884
Internet dial-up usage (pulses in millions)	5,271	8,552
Domestic long distance calls (minutes in millions)	33,670	30,975
International long distance calls* (minutes in millions)	566	591
Number of ports for DDN (ports)	115,480	131,812
Number of ports for Frame Relay (ports)	41,448	43,519
Number of ports for ATM (ports)	6,441	4,212
Digital circuits leased (x2Mbps)	171,249	129,989
Volume of PHS short messages (in millions)	7,815	6,777
"Personalised Ring" subscribers ('000)	15,766	6,814
Penetration for caller ID (%)	68.5%	65.9%
Telephone information services (million minutes)	2,457	3,084

Note: The above operational data includes our Southern service region.
* Including calls to Hong Kong, Macau and Taiwan

2005

Key Financial Data

	2005	2004
Revenues (in RMB millions)	87,232	83,494
Including: upfront connection fees	3,405	4,346
EBITDA(1)	45,554	42,701
Operating profit(2)	20,505	17,521
Profit for the year/period	13,888	2,699
CAPEX	27,562	28,256
Basic earnings/per Share	2.11	0.48
Basic earning/per ADS	42.2	9.6

Note:
(1)	EBITDA refers to profit before finance costs, interests income, dividend income, deficit on revaluation of fixed assets, income tax, depreciation and amortization, share of profit of associated companies. To supplement our consolidated financial statements presented in accordance with the Hong Kong GAAP, we use the non-Hong Kong GAAP measure of EBITDA, which is adjusted from our results based on Hong Kong GAAP. We believes that EBITDA provides useful information to both management and investors to further analyze our operating results since we, as a company operating in the capital intensive telecommunication industry, incurred significant capital expenditure and finance costs which have significant impact to our results based on Hong Kong GAAP. EBITDA should only be considered in addition to our Hong Kong GAAP results. It should not be considered a substitute for or superior to our Hong Kong GAAP results as it cannot be used to measure operation results and liquidity and does not represent operation cash flows. In addition, our EBITDA may not be comparable to similar indicators of other companies.
(2)	Operating profit refers to profit before interests income, dividend income and deficit on revaluation of fixed assets.

Key Operating Data

	2005	2004
Local Access subscribers ('000)	115,328	108,079
Including: PHS subscribers ('000)	27,337	22,124
Broadband subscribers ('000)	11,475	8,492
Total usage (pulses in millions)	228,436	234,661
Excluding Internet dial-up usage (pulses in millions)	219,884	217,435
Internet dial-up usage (pulses in millions)	8,552	17,226
Domestic long distance calls (minutes in millions)	30,975	29,366
International long distance calls* (minutes in millions)	591	471
Number of ports for DDN (ports)	131,812	150,630
Number of ports for Frame Relay (ports)	43,519	43,078
Number of ports for ATM (ports)	4,212	4,816
Digital circuits leased (x2Mbps)	171,249	91,103
Volume of PHS short messages (in millions)	6,777	1,988
"Personalised Ring" subscribers ('000)	6,814	630
Penetration for caller ID (%)	65.9%	60.4%
Telephone information services (million minutes)	3,084	2,969