Summary of China Mobile's Conference Call Company Overview - **Company**: China Mobile - **Period**: First half of 2025 Key Financial Metrics - **Net Profit**: 842 billion CNY, up 5% year-on-year [2][4] - **EBITDA Margin**: Increased by 0.9 percentage points to 34.2% [2][4] - **Total Revenue**: 5,438 billion CNY, down 0.5% year-on-year [13] - **Communication Service Revenue**: 4,670 billion CNY, up 0.7% year-on-year [2][4] - **Capital Expenditure**: 584 billion CNY in H1 2025, with a full-year plan of 1,512 billion CNY [20] Customer and Market Performance - **Mobile Customer Base**: Exceeded 1 billion, with high-end customer retention over 102% [2][5] - **Product Innovation**: 17 products with over 100 million users each [5] - **Digital Transformation Revenue**: Grew by 6.6%, accounting for over one-third of total service revenue [4] - **Emerging Market Revenue**: 290 billion CNY, up 9.3% [14] - **International Business Revenue**: 140 billion CNY, up 18% [14] Operational Highlights - **5G Base Stations**: Over 2.59 million established [6] - **Gigabit Broadband Coverage**: Over 500 million households [6] - **AI and DICT Projects**: 1,485 signed projects, indicating strong market penetration [2][5] - **Smart City Projects**: Nearly 1,300 signed projects [2] Brand and Service Development - **Mobile App Engagement**: Over 270 million monthly active users, a nearly 50% increase year-on-year [7] - **Service Commitments**: Launched 10 service commitments and a service supervision platform [7] Technological Innovations - **6G Testing**: Established the world's first small-scale 6G test network [8] - **AI Model Development**: Launched the VLA giant AI model and developed over 50 industry-specific models [8] Cost Management and Efficiency - **Operating Expenses**: Decreased by 1.7% year-on-year, improving profitability [3][30] - **Depreciation and Amortization**: Decreased by 1.2% [32] - **Cost Control Measures**: Implemented zero-based budgeting and enhanced source management [30][31] Challenges and Strategic Focus - **Market Challenges**: Saturation in communication demand, demographic shifts, and intensified competition [16] - **Future Strategy**: Focus on innovation-driven growth, transitioning from communication services to information services [19] Investment and Growth Outlook - **Investment Focus**: Emphasis on AI and cloud computing, with a projected increase in capital expenditure in these areas [23][36] - **Dividend Growth**: Proposed dividend of 2.75 HKD per share, up 5.8% year-on-year [9][41] Conclusion China Mobile demonstrated robust financial performance in the first half of 2025, with significant advancements in customer engagement, technological innovation, and cost management. The company is strategically positioned to navigate market challenges while focusing on growth in AI and cloud services.