26 March 2026 2025 Annual Results 1 Disclaimer This document does not constitute an offer or invitation to purchase or subscribe for any securities or relevant derivatives of China Mobile Limited (the "Company") or the rendering of any investment advice, and no part thereof shall be relied upon or taken as the basis of any contract, commitment or investment decision relating to such securities or relevant derivatives, and this document does not constitute a recommendation in respect of the securities or rel ...

Core Insights - The company achieved the highest quarterly revenue in its history during Q4 2025, driven by an 11% increase in licensing revenue and broad demand across all technology pillars [1] - The strategic focus has transitioned toward 'Physical AI,' emphasizing the need for edge devices to connect, sense, and infer data locally in real-time for autonomous decision-making [1] - A significant NPU design win was secured with a top-tier PC OEM, validating the company's capability to provide high-performance, power-efficient AI silicon IP for next-generation computing [1] Revenue and Growth - The connectivity franchise expanded with record shipments in Wi-Fi and cellular IoT, which grew 48% and 42% year-over-year respectively, helping to offset softness in the mobile handset market [1] - The diversified 'Smart Edge' portfolio generated 86% of total revenue in 2025, reducing dependency on the volatile smartphone sector [1] Licensing and Agreements - The company demonstrated a 'licensing and royalty flywheel' by signing 54 agreements in 2025, with 12 customers licensing multiple technologies to address complex system requirements [1]

Group 1 - The Cellular IoT market is expected to experience significant growth, with the number of connections projected to reach 5.9 billion by 2035 [1] - The introduction of 5G RedCap is anticipated to accelerate starting in 2025, providing a mid-tier connectivity solution for devices that do not require ultra-reliable low-latency communication or enhanced mobile broadband [2] - Initial deployment of RedCap has been slower than expected, but positive signals are emerging, such as the latest generation Apple Watch incorporating RedCap technology [2][4] Group 2 - The automotive sector's connections are projected to grow from 500 million to approximately 1.2 billion over the next decade, increasing its market share from 13% to 21% [4] - This growth in the automotive sector is primarily driven by rising consumer demand for smart vehicles with 5G connectivity, particularly in Asia and Oceania [4] - The rapid development of software-defined vehicles, the fundamental need for over-the-air upgrades, regulatory requirements, and vehicle-to-everything (V2X) communications are all reliant on cellular connectivity [4]