2022-04-13 10:54Financial Performance - Operating revenue for 2021 reached RMB 848.258 billion, an increase of 10.4% from RMB 768.070 billion in 2020[29] - EBITDA for 2021 was RMB 311.008 billion, with an EBITDA margin of 36.7%, slightly down from 37.1% in 2020[30] - Net profit attributable to shareholders for 2021 was RMB 116.148 billion, representing a profit margin of 13.7%, down from 14.0% in 2020[30] - Communication service revenue for 2021 was RMB 751.409 billion, an increase from RMB 695.692 billion in 2020[30] - The company reported a significant increase in user data, with a total of 1.5 billion mobile subscribers, representing a year-over-year growth of 5%[43] - Revenue for the last fiscal year reached approximately $100 billion, marking a 10% increase compared to the previous year[46] - The company has set a future outlook with a revenue growth target of 8-10% for the upcoming fiscal year[49] - The company achieved a shareholder profit of RMB 116.1 billion, an increase of 7.7% year-on-year, with a profit margin of 13.7%[128] Customer Base and Market Expansion - The total number of 5G package customers exceeded 300 million by August 2021[24] - As of December 31, 2021, China Mobile had a total of 957 million mobile customers and 240 million broadband customers, generating annual revenue of RMB 848.3 billion[32] - China Mobile's Hong Kong subsidiary surpassed 5 million mobile customers by June 2021[24] - The number of mobile customers reached 957 million, with a net increase of 14.97 million customers in 2021[87] - The number of 5G package customers surged to 387 million, representing a 134.4% increase year-on-year[87] - The company is expanding its market presence in Southeast Asia, aiming for a 15% market share by 2025[47] Strategic Initiatives and Investments - The company aims to build a new information service system based on 5G and computing power networks, promoting computing power as a societal service[2] - The company plans to invest $2 billion in research and development for new technologies over the next three years[45] - A strategic acquisition of a tech startup was completed for $1 billion, enhancing the company's capabilities in artificial intelligence[46] - The company has initiated a carbon neutrality action plan in July 2021, focusing on sustainable development[24] - The company is actively involved in research and development of new products and technologies to enhance its service offerings[32] Corporate Governance and Shareholder Relations - The company has a credit rating equivalent to China's sovereign rating, with S&P rating at A+ (stable outlook) and Moody's rating at A1 (stable outlook)[32] - The company’s board of directors was re-elected with approval rates ranging from 99.2506% to 99.7794% for individual directors[159] - The board of directors consists of over one-third independent non-executive directors, with 4 out of 8 directors being independent as of December 31, 2021[147] - The company has published a sustainability report for 15 consecutive years, exceeding the requirements of the Hong Kong Stock Exchange's ESG guidelines[147] - The company aims to enhance investor relations and transparency by regularly disclosing key operational and financial data[159] Sustainability and Social Responsibility - The company has established a new IoT subsidiary, Chip Technology Company, as part of its ongoing corporate reform initiatives[70] - The company has implemented the "Digital Rural Revitalization Plan," aiming to bridge the digital divide and support agricultural modernization[73] - The company has been recognized with multiple awards for its corporate governance and social responsibility, including the "Best Company in Asia for ESG" and the "Chinese Charity Award"[73] - The company has trained nearly 130,000 rural school principals through its "Blue Dream" project, promoting regional educational equity[139] - The company has provided free surgeries for over 7,000 impoverished children with congenital heart disease, contributing to social welfare[139] Operational Efficiency and Cost Management - The company has initiated a cost-reduction strategy expected to save $500 million annually[48] - Operating expenses amounted to RMB 730.3 billion, an increase of 11.4% compared to the previous year, accounting for 86.1% of operating revenue[118] - Network operation and support costs reached RMB 225.0 billion, up 9.0% year-on-year, representing 26.5% of operating revenue[120] - The company achieved a net cash inflow from operating activities of RMB 314.8 billion, showing a 2.3% increase year-on-year[134] Research and Development - Research and development investment accounted for 2.2% of operating revenue in 2021, with nearly 14 thousand R&D personnel[68] - The company leads the industry with 155 5G international standard projects and has applied for 3,600 5G patents, ranking first among global operators[68] - The company is focusing on the next-generation information communication technology research, including 6G, through the establishment of a joint fund with the National Natural Science Foundation[69] Digital Transformation and Technology - Digital transformation revenue reached RMB 159.4 billion, a significant year-on-year growth of 26.3%, contributing 59.5% to the increase in communication service revenue[55] - The company aims to enhance its information service system based on 5G, computing networks, and smart platforms to create a new growth model[77] - The company has optimized its data center layout to include 40.7 thousand available IDC racks, with a net increase of 4.7 thousand racks[66] - The company has deployed over 480 thousand cloud servers, with 13 central nodes in its mobile cloud layout[66] Financial Health and Capital Management - The company’s total assets at the end of 2021 were RMB 1,841.3 billion, with total liabilities of RMB 631.0 billion, resulting in a debt-to-asset ratio of 34.3%[130] - The company plans to increase cash dividends to over 70% of net profit attributable to shareholders within three years, starting from 2021[56] - The board of directors has approved a dividend increase of 10%, reflecting confidence in the company's financial health[44] Compliance and Risk Management - The company has established a comprehensive risk management process, which includes annual reviews and quarterly monitoring, ensuring no major operational risk losses occurred in 2021[187] - The internal audit department conducted independent audits covering financial activities, internal controls, and risk management, reporting directly to the audit committee four times a year[190] - The company emphasizes the importance of internal control over information disclosure, conducting annual audits to ensure effectiveness and compliance with U.S. securities laws[198]