China Telecom: Adjustment of scope for value-added tax items applicable to telecom services.

China Telecom announced that starting from January 1, 2026, the tax category of domestic mobile data, SMS and MMS, and internet broadband access services will be changed from value-added telecommunications services to basic telecommunications services, and the corresponding VAT rate will be increased from 6% to 9%. This adjustment will affect the company's income and profits, and the company will implement measures such as cloud transformation, digitalization, and intelligent optimization strategy to promote high-quality development.