Hua Er Jie Jian Wen·2025-08-07 13:05Core Viewpoint - China Mobile's financial report for the first half of 2025 shows mixed results, with a significant increase in net profit but a slight decline in revenue, highlighting the need for new growth drivers amid a saturated telecom market [1][2]. Financial Performance - Net profit reached 842 billion yuan, a year-on-year increase of 5.0%, while EBITDA margin remained strong at 39.8% [2][4]. - Operating revenue was 5,438 billion yuan, reflecting a slight decline of 0.5% year-on-year, marking a rare instance of negative growth [2][4]. - Main business revenue was 4,670 billion yuan, showing a modest growth of 0.7% [4]. Traditional Business Challenges - Traditional business segments continue to face pressure, with voice service revenue declining by 5.7% to 342 billion yuan and wireless internet revenue down by 4.7% to 1,955 billion yuan [2][4]. - The saturation of traditional communication demand necessitates a shift towards new growth opportunities [2]. Digital Transformation Progress - The digital transformation strategy is yielding results, with digital transformation revenue reaching 1,569 billion yuan, up 6.6% year-on-year, now accounting for 33.6% of main business revenue [3][4]. - The enterprise market showed strong performance, with revenue of 1,182 billion yuan, a 5.6% increase, and mobile cloud revenue growing by 11.3% to 561 billion yuan [3][4][5]. Cash Flow and Financial Quality - Operating cash flow significantly decreased to 838 billion yuan, down 36.2% year-on-year, primarily due to accelerated payment schedules to support the supply chain [6]. - Accounts receivable increased by 39.7% to 1,058 billion yuan, mainly from enterprise business, indicating a need to monitor future collection [6]. - Main business costs grew only by 0.1%, reflecting effective cost control and improved operational efficiency [6].