Financial Performance - Operating revenue reached RMB 1,040.8 billion, an increase of 3.1% year-on-year; communication service revenue was RMB 889.5 billion, up 3.0% year-on-year[3] - Net profit attributable to shareholders was RMB 138.4 billion, a year-on-year increase of 5.0%, with earnings per share at RMB 6.45[7] - Free cash flow was RMB 151.7 billion, representing a year-on-year growth of 22.9%[7] - The operating profit for the year was RMB 142,590 million, representing an increase of 6.5% compared to RMB 134,346 million in 2023[51] - The net profit for the year was RMB 138,526 million, which is a 5.4% increase from RMB 131,935 million in the previous year[52] - Earnings per share (EPS) for the year was RMB 6.45, compared to RMB 6.16 in 2023, indicating a growth of 4.7%[52] Customer Metrics - The number of mobile customers reached 1.004 billion, with 5G network customers at 555 million; mobile ARPU was RMB 48.5[3] - The number of fixed broadband customers was 315 million, with household broadband customers at 278 million; household customer comprehensive ARPU reached RMB 43.8[3] - The number of home broadband customers reached 278 million, with a net increase of 14.05 million, leading the industry[13] - The number of enterprise customers increased to 32.59 million, with a net addition of 4.22 million[15] - The number of AI+ mobile home customers reached 12.8 million, indicating significant growth in smart home applications[13] Revenue Growth Projections - In 2024, personal market revenue is expected to reach RMB 483.7 billion, with mobile cloud revenue at RMB 8.9 billion, growing by 12.6% year-on-year[11] - The revenue from the home market is projected to reach RMB 143.1 billion in 2024, representing an 8.5% year-on-year growth[13] - The enterprise market revenue is expected to reach RMB 209.1 billion in 2024, showing an 8.8% year-on-year growth[15] - The revenue from international business is anticipated to reach RMB 22.8 billion, reflecting a 10.2% year-on-year growth[18] - The digital content revenue is projected to be RMB 30.3 billion in 2024, with an 8.2% year-on-year increase[18] Capital Expenditure and Investments - Capital expenditure was RMB 164 billion, accounting for 18.4% of communication service revenue, a decrease of 2.5 percentage points year-on-year[7] - The total investment in 5G networks for 2024 is expected to be RMB 69 billion, with over 2.4 million 5G base stations opened[21] - The company has capital commitments totaling RMB 25,669 million as of December 31, 2024, compared to RMB 22,895 million in 2023, representing an increase of 12.0%[87] Research and Development - The company has established 15 research special zones, enhancing its research and development capabilities[28] - The company has created over 48,000 commercial cases for 5G applications, maintaining a leading position in network construction and technology development[28] - The company has launched the "Jiutian" large model, which is the first to receive dual filing for national "generative artificial intelligence service" and "domestic deep synthesis service algorithm" from a central enterprise[26] - The AI core team consists of approximately 2,000 members, with the "Nine Sky" AI team recognized as a model enterprise for 2024[31] - The company has developed 40 AI industry models across sectors such as energy, transportation, healthcare, and education, facilitating digital transformation[31] Corporate Governance and Compliance - The company is committed to improving corporate governance and investor relations, ensuring compliance with regulatory requirements[42] - The company has confirmed compliance with all corporate governance codes as per the Hong Kong Stock Exchange regulations[94] - The company will hold its 2025 Annual General Meeting from May 19 to May 22, 2025, for Hong Kong shareholders to vote[97] Environmental and Social Responsibility - The company achieved a 9.7% year-on-year reduction in total energy consumption per unit of telecom business in 2024[39] - Carbon emissions per unit of telecom business decreased by 14.9% year-on-year in 2024[39] - The company contributed approximately 350 million tons of carbon reduction to society through information technology[39] - The company was recognized as a "Pioneer in ESG Listed Companies" with a five-star rating and received the highest rating in Wind ESG industry evaluation[43] Strategic Initiatives - The company is entering a critical phase of strategic opportunities, with macroeconomic trends remaining favorable in the long term[46] - The company is focusing on AI and digital transformation to drive innovation and enhance operational efficiency[45] - The company has implemented a comprehensive reform plan, enhancing internal dynamics and cooperation ecosystems[35] - The company aims to integrate technological innovation with industry development to drive high-quality growth[48] Financial Position - Total assets increased to RMB 2,108,127 million in 2024, up from RMB 1,992,657 million in 2023, representing an increase of approximately 5.8%[53] - Total liabilities rose to RMB 711,588 million in 2024, compared to RMB 646,672 million in 2023, marking an increase of approximately 10.0%[54] - Cash and cash equivalents at the end of 2024 were RMB 167,309 million, up from RMB 141,559 million in 2023, indicating a net increase of RMB 25,380 million[55] - The company's equity attributable to shareholders increased to RMB 1,392,032 million in 2024, from RMB 1,341,732 million in 2023, a rise of about 3.7%[54] Dividend Information - The board proposed a full-year dividend payout ratio of 73%, with a final dividend of HKD 2.49 per share, totaling HKD 5.09 per share for the year, an increase of 5.4% year-on-year[7] - The total declared and paid interim dividend for 2024 is RMB 50,534 million, compared to RMB 47,674 million in 2023, marking an increase of 3.6%[76] - The proposed final dividend per share for 2024 is HKD 2.490 (approximately RMB 2.306), compared to HKD 2.400 (approximately RMB 2.175) in 2023, reflecting a year-over-year increase of 6.0%[76]

Financial Performance - For the first three quarters of 2024, the group's operating revenue was RMB 791.5 billion, an increase of 2.0% year-on-year; of which, communication service revenue was RMB 678.0 billion, also up 2.0%[2] - EBITDA for the same period was RMB 263.1 billion, a decrease of 2.0% year-on-year, with an EBITDA margin of 33.2%[3] - Shareholders' profit attributable to the company was RMB 110.9 billion, representing a year-on-year increase of 5.1%, with a profit margin of 14.0%[7] - Operating revenue for the nine months ended September 30, 2024, was RMB 791,458 million, an increase from RMB 775,560 million in the same period of 2023, representing a growth of approximately 2.3%[9] - Communication service revenue reached RMB 678,049 million, up from RMB 111,003 million year-over-year, indicating a significant increase[9] - Operating profit for the period was RMB 118,904 million, compared to RMB 113,457 million in the previous year, reflecting a growth of about 4.0%[9] - Net profit attributable to shareholders was RMB 110,881 million, an increase from RMB 105,506 million, marking a growth of approximately 5.0%[10] - Basic earnings per share increased to RMB 5.18 from RMB 4.94, showing a rise of about 4.9%[11] - The company reported a total comprehensive income of RMB 111,894 million for the period, compared to RMB 107,258 million in the previous year, reflecting an increase of approximately 4.9%[10] Customer Metrics - The total number of mobile customers reached 1.004 billion, with 539 million 5G network customers[4] - The average revenue per user (ARPU) for mobile services was RMB 49.5, while the average monthly data usage per user (DOU) was 15.7 GB[5] - The total number of fixed broadband customers was 314 million, with a net increase of 15.36 million in the first three quarters[5] Cash Flow and Investments - Cash and cash equivalents were RMB 121,279 million, down from RMB 141,559 million, indicating a decrease of about 14.3%[13] - The company generated net cash inflow from operating activities of RMB 224,075 million, down from RMB 237,678 million in the previous year, representing a decrease of approximately 5.7%[14] - The net cash outflow from investment activities was RMB 127,014 million for the nine months ended September 30, 2024, compared to RMB 107,698 million for the same period in 2023, representing an increase of approximately 17.3%[16] - The net cash outflow from financing activities was RMB 117,323 million for the nine months ended September 30, 2024, slightly decreased from RMB 120,208 million in the same period of 2023[17] - The net increase in cash and cash equivalents was RMB 20,262 million for the nine months ended September 30, 2024, compared to a net increase of RMB 9,772 million in the same period of 2023, indicating a significant improvement[17] - The total cash and cash equivalents at the end of the period were RMB 121,279 million, down from RMB 177,383 million at the end of the same period in 2023, reflecting a decrease of approximately 31.7%[17] - The company received RMB 4,051 million from stock option exercises during the nine months ended September 30, 2024, compared to RMB 1,232 million in the same period of 2023, showing a substantial increase[17] - The company paid dividends of RMB 97,458 million to shareholders during the nine months ended September 30, 2024, compared to no dividends paid in the same period of 2023[17] - The company reported a decrease in the statutory deposit reserve of RMB 49 million for the nine months ended September 30, 2024, compared to a decrease of RMB 1,219 million in the same period of 2023[16] - The company disposed of financial assets measured at amortized cost, generating RMB 54,103 million in cash inflow for the nine months ended September 30, 2024, compared to RMB 26,388 million in the same period of 2023, indicating a significant increase[16] Strategic Initiatives - The group is actively promoting the "AI+" initiative and the "BASIC6" innovation plan to enhance operational efficiency and market competitiveness[5] - The group reported good growth in its DICT business, focusing on integrated solutions for enterprise customers[5] - The company aims to deepen its market expansion in international business and content media, maintaining rapid growth in these areas[5] - The group plans to continue enhancing core capabilities and competitiveness while advancing digital transformation and high-quality development[7] Cautionary Notes - The board of directors cautioned investors regarding reliance on the unaudited financial data presented, emphasizing the inherent risks and uncertainties involved[18]

Shareholder Information - The company repurchased a total of 2,377,000 shares at a total cost of HKD 154,555,920.75 during the six months ended June 30, 2024[13]. - Major shareholder China Mobile Group holds 42,367,000 shares, representing 69.64% of the total issued shares[5]. - The company will withhold 10% corporate income tax on the interim dividend for non-resident corporate shareholders[21]. - The company declared an interim dividend of HKD 2.60 per share, a 7.0% increase compared to the previous year[61]. - The company paid dividends amounting to RMB 46,924 million during the period, consistent with its commitment to returning value to shareholders[110]. Financial Performance - In the first half of 2024, the operating revenue reached RMB 463.589 billion, a year-on-year increase of 2.60% compared to RMB 452.238 billion in the first half of 2023[38]. - The total operating revenue for the first half of 2024 reached RMB 546,744 million, compared to RMB 530,719 million in the same period of 2023, reflecting a growth of approximately 3.4%[54]. - The company reported a profit attributable to shareholders of RMB 80,201 million, an increase from RMB 80,201 million in the first half of 2023[54]. - The net profit attributable to shareholders was RMB 80.20 billion, reflecting a 5.3% year-on-year growth, with earnings per share at RMB 3.75[73]. - The total comprehensive income for the period was RMB 81,735 million, compared to RMB 77,826 million in the previous year, indicating a growth of around 5.4%[110]. Revenue Breakdown - Communication service revenue reached RMB 463,589 million, up 2.9% from RMB 452,238 million year-on-year[96]. - Revenue from emerging markets amounted to RMB 26.6 billion, reflecting a year-on-year growth of 13.2%[39]. - International business revenue reached RMB 11.8 billion, with a year-on-year increase of 16.3%[39]. - Digital content revenue was RMB 14.5 billion, showing an 11.3% year-on-year growth, with cloud gaming active users reaching 123 million, the largest in the industry[39]. - Financial technology business scale reached RMB 37.9 billion, a significant year-on-year increase of 72.1%, with the number of service chain enterprises growing by 55.5%[39]. Operational Highlights - The company has achieved a total of 438 million households with gigabit coverage, with 100% of urban areas and over 97% of rural areas expected to have gigabit platform capabilities by June 2024[43]. - The company has signed contracts for over 70 intelligent computing projects, with a cumulative contract amount exceeding RMB 2 billion in the intelligent network business sector[45]. - The company has launched over 1,019 new video access routes in the visual internet sector, achieving a cumulative total of 70.3 million video cloud connections[45]. - The company has constructed the world's largest and most comprehensive 400G all-optical backbone network, enhancing low-latency computing services[43]. - The company has developed a national-level computing network with a general computing capacity of 8.2 EFLOPS (FP32) and intelligent computing capacity of 19.6 EFLOPS (FP16)[43]. Investment and Expenditure - The capital expenditure for the period was RMB 64 billion, with free cash flow amounting to RMB 67.4 billion[61]. - In the first half of the year, the company invested a total of RMB 31.4 billion in 5G network construction, with over 2.29 million 5G base stations opened, including 705,000 700MHz 5G base stations[43]. - The company's total investment in fixed assets and other intangible assets was RMB 73,460 million, down from RMB 79,646 million, a reduction of 7.3%[114]. - The company’s total liabilities decreased to RMB 637,738 million from RMB 646,672 million, a reduction of approximately 1.4%[101]. - The company’s cash and cash equivalents were not explicitly detailed in the provided data, but the overall financial position indicates a stable liquidity status[101]. Corporate Governance and Compliance - The company has fully complied with the Corporate Governance Code as per the Hong Kong Listing Rules during the six months ended June 30, 2024[16]. - The audit committee reviewed the unaudited consolidated interim financial information for the six months ended June 30, 2024[15]. - The company received a "five-star" rating in the "2024 China ESG Listed Company Pioneer 100" list, reflecting its commitment to sustainable development and corporate governance[91]. - The company is actively participating in the standardization of 6G technology, with commercial use expected by 2030, indicating a long lifecycle for 5G equipment[150]. - The company has established 34 research and development cooperation platforms and formed its first international cooperation platform, enhancing innovation collaboration[89]. Strategic Initiatives - The company aims to enhance AI service models and expand the scale effects of "AI+" in various industries[29]. - The company is focusing on the development of new technologies such as AI, computing networks, and big data, which are expected to drive significant new market opportunities[92]. - The company plans to continue strengthening strategic partnerships with governments, enterprises, and educational institutions to promote cross-industry collaboration and innovation[89]. - The company aims to enhance its position as a world-class information service technology innovation company, focusing on long-term value growth and quality efficiency[62]. - The company aims to create greater value for shareholders and customers through continuous innovation and development[93].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance relative to market indices [2][7]. Core Views - The company reported a revenue of approximately 546.74 billion yuan for the first half of 2024, reflecting a year-on-year increase of 3.02%. The net profit attributable to shareholders was 80.20 billion yuan, up 5.29% year-on-year [1]. - The revenue structure is continuously optimized, with a focus on digital transformation as a second growth curve, achieving a 11% increase in digital transformation revenue to 147.1 billion yuan [1]. - The company has adjusted its depreciation policy, resulting in a 7.1% decrease in depreciation and amortization costs, which supports good profit growth [1]. Summary by Sections Financial Performance - For Q2 2024, the company achieved a revenue of 283.04 billion yuan, a year-on-year increase of 1.09% and a quarter-on-quarter increase of 7.33%. The net profit for Q2 was 50.59 billion yuan, up 5.17% year-on-year and 70.87% quarter-on-quarter [1]. - The company expects net profits for 2024-2026 to be 138.70 billion, 147.01 billion, and 155.63 billion yuan, respectively, with corresponding PE ratios of 10.4, 9.8, and 9.2 [1][4]. Business Segments - Personal business saw a net increase of 9.26 million mobile customers, with a total exceeding 1 billion. The 5G network customer base increased by 49 million to 514 million, with a penetration rate of 51.4% [1]. - The family business segment reported a net increase of 8.48 million broadband customers, with a total of 272 million, and a gigabit broadband penetration rate of 33.5% [1]. - The government and enterprise business segment leveraged cloud-network integration, achieving a 19.3% increase in mobile cloud revenue to 50.4 billion yuan [1]. Dividend Policy - The company announced an interim dividend of 2.60 HKD per share for 2024, representing a year-on-year increase of 7.0%, indicating a commitment to enhancing shareholder returns [1].

Earnings and Dividends - Diluted earnings per share for the six months ended June 30, 2024, were calculated based on the company's profit attributable to shareholders of RMB 80,169 million, compared to RMB 76,070 million for the same period in 2023[3] - The company declared an interim dividend of HK$2.60 per share for the six months ended June 30, 2024[16] - Interim dividend declared at HKD 2.60 per share, a year-on-year increase of 7.0%[59] - The company decided to pay an interim dividend of HKD 2.60 per share for 2024, a year-on-year increase of 7.0%[63] - The company declared an interim dividend of HKD 2.600 per share (approximately RMB 2.373) for 2024, totaling RMB 50,882 million, up from HKD 2.430 per share (approximately RMB 2.240) in 2023[111] - The company's basic earnings per share increased to RMB 3.75 from RMB 3.56 in the previous period[80] - The company's diluted earnings per share increased to RMB 3.73 from RMB 3.56 in the previous period[80] - Basic earnings per share for the six months ended June 30, 2024 were calculated based on a profit attributable to shareholders of RMB 80,201 million, compared to RMB 76,173 million for the same period in 2023[110] - The company's profit attributable to shareholders for the six months ended June 30, 2024 was RMB 80,201 million, up from RMB 76,173 million in the same period in 2023[115] Financial Performance - Shareholder profit attributable was RMB 80.2 billion, a year-on-year increase of 5.3%[59] - The company's total comprehensive income attributable to shareholders increased to 81,735 from 77,826 in the previous period[86] - Operating revenue reached RMB 546.7 billion, a year-on-year increase of 3.0%, with communication service revenue at RMB 463.6 billion, up 2.5%[59] - The company's operating revenue for the first half of 2024 reached RMB 546.7 billion, a year-on-year increase of 3.0%, with communication service revenue at RMB 463.6 billion, up 2.5%[61] - Communication service revenue increased to RMB 463.589 billion, up 2.5% YoY[152] - Total operating revenue reached RMB 546.744 billion, a 3% increase from the previous year[152] - Operating profit rose to RMB 85.734 billion, reflecting a 6.8% growth YoY[152] - EBITDA was RMB 182.3 billion, with EBITDA to communication service revenue ratio at 39.3%[46] - Capital expenditure was RMB 64 billion, with free cash flow at RMB 67.4 billion[46] - Operating cash inflow decreased to RMB 131,377 million in H1 2024 from RMB 160,525 million in H1 2023[104] - Investment cash outflow increased to RMB 85,482 million in H1 2024 from RMB 59,255 million in H1 2023[104] - Financing cash outflow decreased to RMB 55,514 million in H1 2024 from RMB 63,766 million in H1 2023[104] - Net decrease in cash and cash equivalents was RMB 9,619 million in H1 2024 compared to a net increase of RMB 37,504 million in H1 2023[104] Assets and Liabilities - Accounts payable decreased to RMB 166,167 million as of June 30, 2024, from RMB 173,309 million as of December 31, 2023[8] - Accrued expenses increased to RMB 142,886 million as of June 30, 2024, from RMB 124,147 million as of December 31, 2023[8] - Total fixed assets decreased to RMB 680,172 million as of June 30, 2024, from RMB 714,663 million as of December 31, 2023[13] - Construction in progress increased to RMB 86,890 million as of June 30, 2024, from RMB 74,496 million as of December 31, 2023[13] - Total assets increased to RMB 2,021,607 million as of June 30, 2024, from RMB 1,992,657 million as of December 31, 2023[13] - The company's total liabilities decreased to 637,738 million from 646,672 million in the previous period[87] - The company's total equity increased to 1,383,869 million from 1,345,985 million in the previous period[87] - The company's total equity and liabilities increased to 2,021,607 million from 1,992,657 million in the previous period[87] - Total receivables increased to 84,342 million, up 53.68% from 54,881 million in the previous year[199] - Receivables over 91 days to one year surged to 38,392 million, an 88.72% increase from 20,342 million in the previous year[199] - Receivables over one year rose to 9,542 million, a 42.48% increase from 6,697 million in the previous year[199] Market and Customer Metrics - Mobile customer base exceeded 1 billion, with 5G network customers reaching 514 million; mobile ARPU was RMB 51.0[59] - Wired broadband customers reached 309 million, with home broadband customers at 272 million; home customer comprehensive ARPU was RMB 43.4[59] - Total connections exceeded 3.5 billion, with a net increase of 150 million[61] - The personal market revenue reached RMB 255.2 billion, with mobile customers surpassing 1 billion, a net increase of 9.26 million, and 5G network customers reaching 514 million, a net increase of 49 million[66] - The family market revenue reached RMB 69.8 billion, a year-on-year increase of 7.5%, with family broadband customers reaching 272 million, a net increase of 8.48 million[67] - The emerging market revenue reached RMB 26.6 billion, a year-on-year increase of 13.2%, with international business revenue at RMB 11.8 billion, up 16.3%[72] - The digital content revenue reached RMB 14.5 billion, a year-on-year increase of 11.3%, with cloud gaming monthly active users reaching 123 million[72] - The industrial chain financial business scale reached RMB 37.9 billion, a year-on-year increase of 72.1%, with the number of served enterprises up 55.5%[72] - The company's government and enterprise market revenue reached RMB 112 billion, a year-on-year increase of 7.3%, with the number of government and enterprise customers reaching 30.38 million, a net increase of 2.01 million[135] - Mobile Cloud revenue reached RMB 50.4 billion, a year-on-year increase of 19.3%, with IaaS+PaaS revenue share ranking among the top five in the industry[135] - The company signed over 40,000 5G industry commercial cases, driving 5G private network revenue to RMB 3.9 billion, a year-on-year increase of 53.7%[135] - AI-enabled products have reached 110 million customers in the first half of the year[144] Digital Transformation and Innovation - Digital transformation revenue reached RMB 147.1 billion, a year-on-year increase of 11.0%, accounting for 31.7% of communication service revenue[59] - The "Second Curve" digital transformation revenue reached RMB 147.1 billion, a year-on-year increase of 11.0%, accounting for 31.7% of communication service revenue[61] - DICT revenue reached RMB 65.2 billion, a year-on-year increase of 8.4%[52] - Personal digital revenue grew by 34.6% year-on-year, while family digital revenue increased by 4.5%[52] - The company expanded over 70 intelligent computing projects, with cumulative contract amounts exceeding RMB 2 billion[137] - The company's big data platform has accumulated over 2,000 PB of data resources, with data governance reaching the highest domestic level (DCMM Level 5)[137] - The company released the "Nine Heavens" AI base, which includes a 10,000-card intelligent computing cluster, a 100-billion multimodal large model, and an ecosystem platform integrating 100 major elements[140] - The company has released 17 self-developed "Nine Heavens" industry large models, accumulating 450 AI capabilities and empowering nearly 1,000 industry applications[140] - The company launched the industry's first full-scenario anti-fraud service product, building four lines of defense: intelligent fraud detection, intelligent early warning, smart home correlation, and insurance compensation[142] - The company has formed a core AI team of 2,000 people and launched the "Jiutian" AI Research Institute[143] - The company has deployed a large-scale intelligent computing center in Hohhot and initiated the construction of another in Harbin[143] - The company has released a fully self-developed multimodal large model with trillions of parameters and started training a 200-billion-parameter model[143] - The company has launched 20 industry applications, including AI inspection, AI auditing, and AI emergency response[144] - The company has established 34 R&D cooperation platforms and formed its first international cooperation entity[147] - The company has gathered over 1,300 upstream enterprises and more than 400 international operators and industry partners through its GTI international cooperation platform[147] - The company's general computing power reached 8.2 EFLOPS (FP32), and intelligent computing power reached 19.6 EFLOPS (FP16)[157] - The company's "N+X" multi-level intelligent computing layout has been established, with 13 intelligent computing center nodes operational in key regions[157] - The company's data transaction volume exceeded 100 million entries per month, supported by the Data Sharing and Services Network (DSSN)[157] - The company aims to enhance AI+ services by improving big data, computing power, and model supply capabilities[161] - The company has built the world's largest communication service data cluster, the Wutong Big Data Platform, with over 5 trillion tokens of high-quality data[172] - The company is accelerating the transformation from "+AI" to "AI+" to inject momentum into high-quality development[173] - The company is actively promoting the conversion of big data value and participating in the formulation of national high-quality data classification and grading standards[172] - The company is advancing the "BASIC6" innovation plan and upgrading the "One Body Five Rings" innovation system[171] - The company is implementing the "Two New Types" upgrade plan, the "AI+" action plan, and the "BASIC6" innovation plan to develop new productive forces[176] Network and Technology - The company achieved a high-throughput data transmission of over 5,000 kilometers with its proposed wide-area high-throughput protocol[74] - The company successfully built the world's first 800G+ hollow-core fiber test network, achieving a bidirectional transmission capacity of 128TB/s over 20 kilometers, with optical link latency reduced by over 30%[74] - 5G network investment totaled RMB 31.4 billion, with over 2.29 million 5G base stations deployed[157] - The company plans to expand 5G-A commercial deployment to over 300 cities by the end of the year[157] - The company has reduced network-related costs per 100 yuan of fixed assets by 3.5% and decreased 5G single-site energy consumption by 11.7%[144] Expenses and Costs - Maintenance support costs increased to 96,382 million, up 1.99% from 94,502 million in the previous year[197] - Energy usage fees rose slightly to 21,234 million, compared to 21,191 million in the previous year[197] - Tower usage fees decreased to 11,991 million, down 6.47% from 12,821 million in the previous year[197] - Circuit, network element, and other asset usage fees dropped to 9,579 million, a 6.72% decrease from 10,269 million in the previous year[197] - Other expenses fell to 3,496 million, a 26.29% decrease from 4,743 million in the previous year[197] - Total expenses for the period amounted to 142,682 million, slightly down from 143,526 million in the previous year[197] - Depreciation and amortization decreased by approximately RMB 9,535 million for the six months ended June 30, 2024 due to a change in the depreciation period of 5G wireless and related transmission equipment from 7 to 10 years[116] - Expected credit impairment losses rose to RMB 12,027 million in H1 2024 from RMB 7,501 million in H1 2023[109] - Interconnection expenses increased to RMB 14,214 million in H1 2024 from RMB 11,340 million in H1 2023[109] - Interest income decreased to RMB 2,980 million in H1 2024 from RMB 3,836 million in H1 2023[109] - Net gains from holding/disposal of financial assets rose to RMB 8,143 million in H1 2024 from RMB 7,537 million in H1 2023[109] Taxation and Financial Provisions - Corporate income tax provision for mainland China and other regions was RMB 22,506 million in H1 2024, slightly lower than RMB 23,588 million in H1 2023[93] - Hong Kong profits tax provision increased to RMB 347 million in H1 2024 from RMB 335 million in H1 2023[93] - The company will withhold and pay 10% corporate income tax on the 2024 interim dividend to Hong Kong Clearing[192] Share Repurchase and Equity - The company repurchased 2,377,000 Hong Kong-listed shares for a total of HKD 154,555,920.75 during the six months ended June 30, 2024[123] - The weighted average number of shares for the six months ended June 30, 2024, was 21,510,078,365, up from 21,397,822,194 in the same period in 2023[3] International Operations - The company's operating income and assets outside mainland China account for less than 5% of the group's total operating income and assets[167]

Investment Rating - Maintains a "Buy" rating with a target price of HKD 78.00, corresponding to 10.4x/9.9x/9.6x P/E for 2024-2026 and dividend yields of 7.0%/7.5%/8.0% [1] Core Views - China Mobile's Q1 2024 performance exceeded expectations, driven by cost control and efficiency improvements, which are expected to enhance profitability and support higher-than-expected dividend payouts [1] - The company's high-growth and high-dividend characteristics are expected to persist, supported by sustained industry growth [1] - Despite slightly lower-than-expected Q1 2024 profit growth, full-year profit and dividend growth remain optimistic, with service revenue and net profit reaching RMB 219.3 billion (+4.5% YoY) and RMB 29.6 billion (+5.5% YoY), respectively [2] - Mobile and home broadband users increased by 4.63 million and 6.83 million, respectively, with stable ARPU expected to continue in 2024 [2] - The company plans to increase its dividend payout ratio to over 75% starting from 2024, with dividend growth expected to outpace profit growth [2] Cost Efficiency and Capital Expenditure - 5G network construction has reached a moderate scale, with future capital expenditure expected to slow down as 5G demand becomes more fragmented [3] - China Mobile's 5G network capital expenditure is projected to decrease by 21.6% YoY in 2024, with total capital expenditure down 4% YoY, leading to healthier cash flow and reduced depreciation pressure [3] - The company adjusted the depreciation period for 5G wireless and related transmission equipment from 7 to 10 years, reducing annual depreciation by approximately RMB 18 billion [3] Dividend and Shareholder Returns - Based on the closing price as of April 22, 2024, China Mobile's estimated dividend yields for 2024/2025/2026 are 7.8%, 8.3%, and 8.9%, respectively, supported by stable profit growth [3] - The company's high and stable dividend growth is expected to provide a strong margin of safety for its stock price [3] Industry Comparison - China Mobile's valuation metrics (P/E and dividend yield) are competitive compared to peers in Hong Kong, the US, Japan, South Korea, and Europe, with a 2024F P/E of 9.8x and a dividend yield of 7.4% [7][10] - The company's capital expenditure is shifting towards computing power, with a focus on reducing costs and improving efficiency [7]

Financial Performance - For the three months ended March 31, 2024, the operating revenue was RMB 263.7 billion, representing a year-on-year increase of 5.2%[3] - The communication service revenue for the same period was RMB 219.3 billion, reflecting a year-on-year growth of 4.5%[7] - The EBITDA for the first quarter of 2024 was RMB 78 billion, a decrease of 2.3% compared to the previous year[9] - The profit attributable to shareholders was RMB 29.6 billion, which is a 5.5% increase year-on-year[7] - In Q1 2024, the group's communication service revenue was RMB 219.3 billion, representing a year-on-year growth of 4.5%, while sales of products and other revenues amounted to RMB 44.4 billion, up 8.6% year-on-year[12] - The profit attributable to shareholders for Q1 2024 was RMB 29.6 billion, an increase of 5.5% year-on-year, with a profit margin of 11.2%[14] - EBITDA for the same period was RMB 78 billion, down 2.3% year-on-year, with an EBITDA margin of 35.6% of communication service revenue[14] - The total comprehensive income for the period was RMB 30.5 billion, compared to RMB 27.4 billion in the previous year[15] Customer Metrics - The total mobile customer base reached 996 million, with 5G package customers numbering 799 million[11] - The average revenue per user (ARPU) for mobile services was RMB 47.9, up from RMB 44.9 in the previous year[9] - The total number of fixed broadband customers was 305 million, with a net increase of 6.83 million during the quarter[9] - The average revenue per user (ARPU) for household customers in Q1 was RMB 39.9, reflecting a year-on-year growth of 1.8%[12] - The average monthly mobile internet traffic per user (DOU) was 14.9 GB, showing a year-on-year increase of 3.3%[11] - As of March 31, 2024, the total number of broadband customers reached 305 million, with a quarterly net increase of 6.83 million, including 269 million household broadband customers, which saw a net increase of 5.28 million[12] Cash Flow and Investments - Cash and cash equivalents amounted to RMB 166 billion, up from RMB 141.6 billion in the previous quarter[22] - Operating cash inflow for Q1 2024 was RMB 65.9 billion, compared to RMB 82.7 billion in the same period last year[22] - For the three months ended March 31, 2024, the net cash outflow from investment activities was RMB 20,491 million, a decrease of 39% compared to RMB 33,721 million in the same period of 2023[24] - The net cash outflow from financing activities was RMB 12,064 million, a decrease of 18% compared to RMB 14,719 million in the same period of 2023[26] - The net increase in cash and cash equivalents for the period was RMB 24,349 million, compared to RMB 26,765 million in the same period of 2023[26] - The total cash and cash equivalents at the end of the period was RMB 166,026 million, down from RMB 193,648 million at the end of the same period in 2023[26] - The company received RMB 3,720 million in interest and other income, significantly up from RMB 1,600 million in the same period of 2023[24] - The company disposed of financial assets measured at amortized cost, generating RMB 31,225 million, compared to RMB 10,146 million in the same period of 2023[24] - The company reported a decrease in the purchase of fixed assets and other non-current assets to RMB 34,478 million from RMB 37,246 million in the same period of 2023[24] - The company’s statutory deposit reserve decreased by RMB 2,214 million, compared to RMB 275 million in the same period of 2023[24] Assets and Liabilities - The total assets as of March 31, 2024, were RMB 2,030.9 billion, an increase from RMB 1,992.7 billion as of December 31, 2023[17] - The total liabilities increased to RMB 653.8 billion from RMB 646.7 billion in the previous quarter[20] Strategic Initiatives - The company aims to enhance core competitiveness and accelerate the development of strategic emerging industries[1] - The company is committed to digital transformation and high-quality development as part of its strategic implementation[11] Cautionary Statements - The company cautioned investors regarding reliance on the unaudited financial data presented, highlighting potential risks and uncertainties[28]

Financial Performance - The company achieved a basic earnings per share of HKD 2.4002 for the fiscal year 2023, with a total dividend of HKD 4.830, reflecting an increase from HKD 4.410 in 2022[19]. - The total revenue for 2023 was RMB 1,009.309 billion, reflecting a significant increase from RMB 812.058 billion in 2022[189]. - The company plans to distribute over 70% of its profits to shareholders in cash for the year 2023[70]. - The board of directors proposed a full-year dividend payout ratio of 71%, with a final dividend of HKD 2.40 per share, resulting in a total annual dividend of HKD 4.83 per share, an increase of 9.5% compared to 2022[107]. Sustainability and Environmental Initiatives - The company has built 86,000 ultra-simple 5G base stations, with energy efficiency per new large data center dropping to below 1.32 PUE, and a 9% year-on-year improvement in energy efficiency for new single stations[3]. - The clean energy supply capacity has reached 21 million peak watts, enhancing the company's commitment to green development[3]. - The company has reduced paper usage by 130 million sheets through a 99.9% paperless procurement rate, resulting in a carbon emission reduction of 260 tons[3]. - The company has enabled a reduction of approximately 310 million tons of greenhouse gas emissions through its green technology initiatives[3]. - The company plans to continue its sustainable development initiatives, including the establishment of a sustainability committee under the board of directors starting January 1, 2024[8]. - A sustainable development committee was established on January 1, 2024, to oversee corporate social responsibility and sustainability goals[66]. Corporate Governance - The company maintains a strong focus on corporate governance, ensuring transparency and effective communication with shareholders and stakeholders[7]. - The board discussed the company's corporate governance report in 2023, focusing on compliance with legal regulations[29]. - The company has implemented a director nomination policy to ensure suitable candidates are appointed to the board[25]. - The company has committed to continuously improving its corporate governance practices to meet shareholder expectations and ensure long-term sustainable development[127]. - The company received confirmation of independence from independent non-executive directors, affirming their compliance with independence requirements[41]. - The board consists of independent non-executive directors who review the board's structure and composition annually[66]. Audit and Internal Controls - The audit committee held 6 meetings in 2023, with a notable attendance rate, and met with external auditors 3 times, including 1 meeting without executive directors present[34]. - The audit committee approved the audited financial statements for the year ending December 31, 2022, and the profit distribution plan for 2022, along with the interim dividend for 2023[35]. - The internal audit department conducts independent audits across all business units and reports directly to the audit committee four times a year[140]. - The internal audit plan includes financial audits, internal control audits, and risk assessments, ensuring compliance with relevant regulations[141]. - The company has maintained effective internal controls over financial reporting, with no significant deficiencies identified as of December 31, 2023[123]. - The company has established a comprehensive internal audit framework to address risks and improve audit oversight, focusing on key business transformation areas[143]. Talent Development and Workforce - The company emphasizes the importance of talent development as a core competitive advantage, implementing various employee welfare programs[2]. - The company has a total employee count of 451,830, with female employees making up 52.3% of the workforce[97]. - The company aims to strengthen its talent pool with over 5,000 provincial-level experts and more than 10,000 outstanding engineers in key technology areas[151]. - The company has implemented a comprehensive incentive system to drive performance growth, focusing on "two breakthroughs and four enhancements" development goals[152]. - The workforce has been optimized with over 28,000 digital employees developed to enhance productivity in key business areas[153]. Innovation and Technology - The company successfully developed the first domestic reconfigurable 5G RF transceiver chip "Breaking Wind 8676" in August 2023[198]. - The company launched the "BASIC6" scientific innovation plan to stimulate innovation momentum in October 2023[198]. - The company aims to build a smart auditing ecosystem and enhance audit quality through AI and innovative practices in 2024[143]. Shareholder Engagement and Transactions - The company reported a year-on-year increase in interim profit distribution approval rate of 99.9906% at the annual general meeting held on May 24, 2023[21]. - The general authorization for the board to issue and handle Hong Kong shares was expanded based on the number of repurchased shares, with an approval rate of 96.9777%[22]. - The company received 99.9959% approval for a related party transaction agreement with China Tower Corporation[67]. - The company has not entered into any significant transactions or arrangements with its directors or related entities during the year[131]. Financial Management and Fund Utilization - The total amount raised from the issuance of RMB shares is RMB 51,981,373,781.86, with a net amount of RMB 51,373,879,467.74 after deducting issuance costs[80]. - As of December 31, 2022, the company has invested approximately RMB 42.917 billion of the raised funds, with RMB 8.457 billion remaining uninvested[80]. - For the fiscal year ending December 31, 2023, the company has invested approximately RMB 6.654 billion of the raised funds[80]. - The company aims to utilize the raised funds for projects related to 5G network construction, cloud infrastructure, and new generation information technology research and development[80]. - The company has not experienced significant changes or delays in the planned use of the raised funds as disclosed in previous announcements[99].

Investment Rating - The report maintains a "Buy" rating for China Mobile (00941 HK) with a target price of HK$78.00 [23][21][15]. Core Insights - The company is expected to achieve stable growth in revenue and net profit, with service revenue reaching RMB 863.5 billion (up 6.3% YoY) and net profit reaching RMB 131.8 billion (up 5.0% YoY) in 2023 [3][11]. - The company plans to increase its dividend payout ratio to 71.5% for 2023 and aims to raise it to over 75% in the next three years [11][15]. - The report anticipates that the company's cost control measures and efficiency improvements will enhance profitability, allowing for dividends to exceed market expectations [21][15]. Financial Summary - For the fiscal years 2024 to 2026, the expected earnings per share (EPS) are RMB 6.912, RMB 7.245, and RMB 7.533 respectively [15][21]. - The projected dividend yields for 2024, 2025, and 2026 are 7.0%, 7.5%, and 8.0% respectively [21][15]. - The company’s capital expenditure is expected to decline, particularly in 5G infrastructure, which will help alleviate operational cost pressures [22][15]. Market Position and Strategy - The competitive environment for traditional telecom operators is expected to remain moderate, benefiting profitability [26]. - The company has been actively repurchasing shares, reflecting management confidence and adherence to state-owned enterprise value management requirements [15][11]. - The report highlights the strong demand for industrial digitalization and the easing of depreciation pressures from traditional business investments as key factors supporting growth [3][11].

Investment Rating - The report assigns a "Buy" rating for China Mobile [3] Core Views - China Mobile's revenue has surpassed 1 trillion yuan, achieving a record high in profit, with a revenue of 1,009.3 billion yuan in 2023, representing a year-on-year increase of 7.7% [3] - The company aims to increase its dividend payout ratio to over 75% within the next three years, with a projected dividend payout ratio of 71% for 2023 [3] - The report highlights the continuous optimization of revenue structure and strong growth in various segments, including personal market revenue and enterprise market revenue [3] Financial Summary - Revenue for 2022 was 937,259 million yuan, with a projected increase to 1,068,640 million yuan in 2024, reflecting a growth rate of 5.9% [7] - Net profit for 2022 was 125,459 million yuan, expected to rise to 141,007 million yuan in 2024, with a growth rate of 7.0% [7] - The report forecasts an increase in earnings per share (EPS) from 6.35 yuan in 2022 to 7.14 yuan in 2024 [7] - The company’s EBITDA for 2023 is projected at 341.5 billion yuan, with an EBITDA margin of 39.5% [3][11] Capital Expenditure and Cash Flow - Capital expenditure for 2023 is reported at 180.3 billion yuan, with a year-on-year decrease of 1.9% [3] - Free cash flow is expected to improve, with a focus on returning value to shareholders through increased dividends [3] Market Position and Growth - China Mobile has a strong market presence with 990 million mobile users, including 180 million 5G subscribers [3] - The company is expanding its cloud services and digital content offerings, with significant growth in enterprise market revenue [3][11] Valuation - The report sets a target price of 80 Hong Kong dollars for China Mobile, maintaining a buy rating based on the company's strong governance and growth potential [3]