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Report of the Directors
/ Annual Report 2011 /
1
Supervisors of the Company
The following table sets out information concerning the supervisors of the Company as at the date of this report:
Name
Position in the Company
Date of appointment
Xia Jianghua
Chairperson of the Supervisory Committee
3 August 2006
Hai Liancheng
Independent Supervisor
3 August 2006
Yan Dong
Supervisor (Employee Representative)
15 August 2006
On 2 August 2009, the terms of office of the first session of the members of the Supervisory Committee expired.
Upon the re-election by shareholders in the extraordinary general meeting on 31 July 2009, Ms. Xia Jianghua and
Mr. Hai Liancheng continue to hold office in the second session of the Supervisory Committee. Upon the re-election
by employees, Mr. Yan Dong continues to be the Employee Representative Supervisor in the second session of the
Supervisory Committee.
Profiles of the directors, supervisors and senior management are set out in the “Profiles of Directors, Supervisors
and Senior Management” section of this annual report.
Share Capital
The Company was incorporated on 30 August 2006. In December 2006, by way of an initial public offering (the
“IPO”), the Company issued 1,484,986,000 H shares of RMB1.00 each at a price of HK$2.20 per share. At the same
time, the promoters of the Company transferred 148,498,600 domestic state-owned shares of RMB1.00 each to
National Council for Social Security Fund of the PRC (the “NSSF”) and converted them into H shares on the basis
of one domestic share to one H share. Immediately after the IPO, the registered capital of the Company amounted
to RMB5,444,986,000, of which 1,633,484,600 H shares of the Company were listed and traded on The Stock
Exchange of Hong Kong Limited (the “Stock Exchange”).
On 9 April 2008, the Company announced the completion of placing a total of 359,365,600 H shares, including an
issue of 326,696,000 new H shares and an issue of 32,669,600 H shares placed on behalf of NSSF upon conversion
of the same number of existing domestic shares of the Company allocated to NSSF by China Telecommunications
Corporation (“China Telecom”). After the completion of placing, the total issued shares of the Company increased to
5,771,682,000 shares, of which 1,992,850,200 shares were H shares.
As disclosed in the prospectus of the Company dated 27 November 2006, China Telecom entered into equity
transfer arrangements with China Mobile Communications Corporation (“China Mobile”) and China United
Telecommunications Corporation (now known as China United Network Communications Group Company Limited
(“China Unicom”)), respectively. Pursuant to the arrangements, China Telecom agreed to transfer 506,880,000
and 236,300,000 domestic shares to China Mobile and China Unicom, respectively. On 24 March 2009, the equity
transfers were formally completed and became effective. On the same date, Guangdong Telecom Industry Group
Corporation and Zhejiang Telecom Industry Corporation completed the transfers of 236,313,086 and 87,664,532
domestic shares respectively to China Telecom.