Selected Unaudited Key Performance Indicators

Notes:
1. The above unaudited financial data is prepared in accordance with the generally accepted accounting principles in Hong Kong. The financial data of the Group for the first quarter of 2005 included the results of the Company and its subsidiaries, including the 31 provincial mobile companies, while the financial data for the first quarter of 2004 included the results of the Company and its original subsidiaries, including the 21 provincial mobile companies.

2. The Hong Kong Institute of Certified Public Accountants has issued a number of new and revised Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards ("New HKFRSs"), which are effective for accounting periods beginning on or after 1 Jan 2005. The above unaudited financial data has recognised the impact of New HKFRSs.

Notes:
* for the relevant reporting period

By leveraging the advantages of scale that result from the Group being the market leader in Mainland China's mobile telecommunications industry, by ceaselessly pursuing refined management techniques, and benefiting from the contribution from the 10 provincial mobile companies that were acquired on 1 July 2004, the Group achieved favourable financial results for the first quarter of 2005, notwithstanding the competitive market environment. The Group's operating revenue reached RMB54.859 billion, representing an increase of 30.2 per cent. compared to the same period of last year. EBITDA reached RMB29.624 billion, representing an increase of 22.0 per cent. compared to the same period of last year. EBITDA margin was maintained at a high level of 54.0 per cent. Net profit reached RMB11.246 billion, representing an increase of 19.8 per cent. compared to the same period of last year.

By leveraging its premium and efficient network and significant brand advantages, refining its management methods, adopting effective marketing strategies, delivering personalised services, and focusing on innovation and developing new businesses, the Group continued to make encouraging progress in developing its business and recorded favourable subscriber growth in a competitive environment during the first quarter of 2005. As at 31 March 2005, the Group's subscribers (including all 31 provincial mobile companies) reached 213.87 million. Owing to the robust subscriber growth, which was primarily comprised of low ARPU customers, the Group's ARPU for the first quarter of 2005 declined moderately. However, during the period, the decline in average revenue per minute of usage has been relatively better controlled. New businesses have sustained rapid and stable growth and the contribution of new businesses to operating revenue has further increased. Operating revenue continued to record favourable growth.

The Group will continue to fully leverage its leading position in Mainland China's mobile telecommunications industry and its economies of scale, further integrate its brands catering to different target customer segments, aggressively develop mobile data and other new businesses, and strengthen the classification of voice usage volume promotion. The Group will unswervingly pursue business and service innovation, strive to consolidate its leading market position and maintain its sound fundamentals and sustainable development, with a view to generating greater value for its shareholders. Within a competitive environment, the Group will continue to promote orderly and rational competition and strive to foster a healthy environment for further industry development. This will better serve the long-term interests of consumers, operating companies and investors.