2022-08-11 16:00Financial Performance - China Mobile's total revenue for the first half of 2022 reached RMB 496.9 billion[4] - In the first half of 2022, the company's operating revenue reached RMB 496.9 billion, a year-on-year increase of 12.0%[10] - The main business revenue was RMB 426.4 billion, growing by 8.4% year-on-year, while other business revenue surged to RMB 70.5 billion, up 39.8%[10] - Net profit attributable to shareholders was RMB 70.3 billion, reflecting an 18.9% year-on-year growth, with earnings per share at RMB 3.29, up 14.1%[10] - The company declared an interim dividend of HKD 2.20 per share, a 34.9% increase, with a full-year payout ratio expected to exceed the previous year[10] - EBITDA for the first half of 2022 was RMB 173.9 billion, representing a 7.4% increase year-on-year, with an EBITDA margin of 35.0%, down 1.5 percentage points from the previous year[33] - The company's main business cost was RMB 286.0 billion, up 8.7% year-on-year, accounting for 57.6% of operating revenue[30] - The net profit attributable to shareholders for the first half of 2022 was RMB 70.3 billion, a year-on-year increase of 18.9%, with a net profit margin of 14.1%[33] Customer and Market Growth - The number of mobile customers reached 970 million, while fixed broadband customers totaled 256 million as of June 30, 2022[4] - The personal market revenue was RMB 256.1 billion, showing a slight increase of 0.2%, with mobile customers reaching 970 million, including 511 million 5G subscribers[12] - The family market revenue grew to RMB 59.4 billion, an 18.7% increase, with broadband customers reaching 230 million, and gigabit broadband customers accounting for over 88% of net additions[13] - The enterprise market revenue reached RMB 91.1 billion, a 24.6% increase, with DICT revenue growing by 44.2% to RMB 48.2 billion[14] - Emerging market revenue reached RMB 19.9 billion, a year-on-year increase of 36.5%[15] - International business revenue amounted to RMB 8.1 billion, growing 19.3% year-on-year[15] - Digital content revenue hit RMB 11.6 billion, with a remarkable growth rate of 50.6%[15] - Monthly active users for Migu Video increased by 72.5% year-on-year, while cloud gaming users surged by 149.4%[15] Digital Transformation and Innovation - The company is focusing on creating a new information service system based on 5G, computing power networks, and smart platforms[9] - The company continues to innovate in areas such as ultra-high-definition video, mobile cloud storage, and smart home services[4] - Digital transformation revenue reached RMB 110.8 billion, a significant increase of 39.2%, accounting for 26.0% of main business revenue[10] - The company is actively expanding into new markets and enhancing its digital government solutions, providing services to nearly 200 cities across 27 provinces[14] - Financial technology business scale approached RMB 30 billion, up 157% year-on-year[15] Research and Development - R&D investment reached RMB 8.2 billion, reflecting a 20.3% increase year-on-year[18] - The company has launched over 1.1 million authorized invention patents, maintaining a leading position among global operators[18] Sustainability and Social Responsibility - The company is committed to sustainable development, focusing on digital innovation and green low-carbon initiatives[22] - As of June 30, the company's total energy consumption per unit of telecom business decreased by 10.8% year-on-year, and carbon emissions per unit decreased by 10.7%, contributing to a total reduction of 12.56 million tons of emissions[42] - The company has been recognized for four consecutive years with the highest rating in the central unit targeted assistance assessment, ranking among the top three central enterprises for three consecutive years[43] - The company has supported the "China Mobile Love Action" program for 12 years, providing free screening and treatment for 201 children with congenital heart disease in 2022[45] - The company has implemented the "C² Three Energy Plan" to enhance energy efficiency and green energy levels, aligning with national carbon peak and carbon neutrality goals[42] Governance and Shareholder Structure - The company has appointed new independent non-executive directors and an executive director as part of its governance updates[48] - The company’s cash flow from operating activities showed a decrease of 8.9%, with a net cash flow of RMB 147,272 million in the first half of 2022[26] - The company has over 200 million customers for its products, with six products exceeding 100 million customers each, indicating strong user growth[19] - The company has a total of 34,734,000 shares held by China Life Insurance Company Limited under a traditional insurance product, which will be tradable starting January 6, 2025[65] - The company has a total of 26,050,000 shares held by Zhong Postal Life Insurance Company under a traditional insurance product, with a trading restriction of 36 months from the date of A-share listing[66] Financial Position and Assets - The company’s total assets increased by 3.8% to RMB 1,875,081 million as of June 30, 2022, compared to RMB 1,806,027 million at the end of 2021[26] - The company reported a total of RMB 627,561 million in current assets, which is an increase from RMB 595,371 million in the previous year, reflecting a growth of approximately 5.4%[89] - The company's cash and cash equivalents stood at RMB 363,019 million, compared to RMB 335,155 million at the end of 2021, marking an increase of about 8.3%[89] - The company’s total liabilities as of June 30, 2022, were RMB 627,561 million, reflecting a stable financial position[89] - The total equity attributable to shareholders increased to RMB 1,248,166 million as of June 30, 2022, compared to RMB 1,171,050 million at the end of 2021, reflecting a growth of 6.6%[90] Accounting and Financial Reporting - The financial report for the first half of 2022 was prepared in accordance with both Chinese and international accounting standards[1] - The company’s financial statements are prepared in accordance with the Chinese Accounting Standards and reflect the group's financial position as of June 30, 2022[101] - The group classifies financial assets into three categories: (1) measured at amortized cost; (2) measured at fair value with changes recognized in other comprehensive income; (3) measured at fair value with changes recognized in profit or loss[110] - The group recognizes expected credit losses for financial assets measured at amortized cost and those measured at fair value with changes recognized in other comprehensive income[114] Stock Options and Incentives - The company aims to enhance its governance structure and align the interests of employees, shareholders, and investors through the stock option incentive plan[51] - The stock option plan is designed to attract, motivate, and retain key employees to support the company's strategic transformation and long-term development[51] - The stock options will automatically expire if any significant misconduct occurs related to the incentive recipients[54] Accounts Receivable and Provisions - The company reported a significant increase in accounts receivable, which rose by 69.6% year-on-year to RMB 63.1 billion due to rapid growth in government and enterprise business[34] - The aging analysis of accounts receivable showed that 78.5% (RMB 64,086 million) was within one year as of June 30, 2022, compared to 75.1% (RMB 37,790 million) as of December 31, 2021[165] - Bad debt provisions increased to RMB 18,447 million as of June 30, 2022, compared to RMB 13,117 million as of December 31, 2021, reflecting a rise of 40.5%[170]