In the first half of 2024, our operating revenue was RMB546.7 billion, with a growth of 3.0% year-on-year. Of this, our telecommunications services revenue accounted for RMB463.6 billion, an increase of 2.5% year-on-year. Total connections³ surpassed 3.50 billion, with a net addition of 150 million. In the CHBN⁴ markets, HBN revenue accounted for 45.0% of telecommunications services revenue, an increase of 2.3 percentage points year-on-year. Our digital transformation revenue⁵, as the “second curve” of revenue growth, reached RMB147.1 billion, an increase of 11.0% year-on-year. It accounted for 31.7% of telecommunications services revenue and represented an increase of 2.4 percentage points year-on-year.

Profit attributable to equity shareholders was RMB80.2 billion, an increase of 5.3% year-on-year, and earnings per share were RMB3.75. EBITDA⁶ was RMB182.3 billion, and as a percentage of telecommunications services revenue, was 39.3%. Annualized return on equity (ROE) increased by 0.3 percentage points year-on-year to 11.8%, and we maintained industry-leading profitability among top-tier global telecommunications operators. Capital expenditure totaled RMB64.0 billion. Free cash flow amounted to RMB67.4 billion.

To create higher returns for our shareholders and share the results of our growth, after giving full consideration to the Company’s profitability, cash flow generation and future development needs, the Company has decided to pay HK$2.60 per share⁷ for the 2024 interim dividend, representing an increase of 7.0% year-on-year. For the full year of 2024, profit to be distributed in cash as a percentage of the profit attributable to equity shareholders of the Company⁸ will further increase from that of 2023. The Company will continue to create more value for shareholders.

1	Anchoring ourselves to “one single position” of a leading innovator in digital technology and information services; speeding up the “two changes”, which are the shift from quantitative leadership based on scale to qualitative leadership with a focus on improving effectiveness and efficiency, and the shift from delivering business results in the short-to-mid-term to achieving value growth in the mid-to-long-term. We will collectively foster the “Two New Elements”: systematically building smart digitalization infrastructure centered on 5G, Computility Network (CN) and the integration platform, and developing smart info-service spectrum of connectivity, computility and capability. We will proactively unleash the “five benefits” through innovation, customer recognition, reforms, talent and the ecosystem.
2	BASIC6 stands for: B-Big data, A-AI, S-Security, I-Integration platform, C-Computility network, 6-6G.
3	The total number of connections includes the connections of mobile phones, wireline broadband, IoT cards, home devices and industry devices.
4	CHBN refers to the “Customer” market (C), the “Home” market (H), the “Business” market (B), and the “New” market (N).
5	Digital transformation revenue includes the revenues from new businesses from the “Customer” market (China Mobile Cloud Drive and others); the revenues from smart home businesses from the “Home” market; the revenues from DICT, IoT and dedicated lines businesses from the “Business” market; and the revenue from the “New” market (excluding revenue from international basic business).
6	EBITDA = profit from operations + depreciation and amortization.
7	Dividends on A shares will be paid in RMB in the amount of RMB2.3789 per share, applying an exchange rate of HK$1 to RMB0.914962, which is equal to the average of the mid-prices of HK$ to RMB as announced by the People’s Bank of China during the one week before the day on which the Board declared the interim dividend.
8	The basis of profit distribution of the Company is the profit attributable to equity shareholders under IFRS Accounting Standards.

We broke into new areas in the information services market, continued to advance scale-based and value-oriented operations and drive the comprehensive and integrated development of our CHBN markets in a well-coordinated manner, further consolidating our competitive edge.

“Customer” Market: Integrated Operations to Fortify Business Foundation
We continued to integrate data access, applications and customer benefits. 5G customers represented a growing share of our overall customer base as a result of unleashing the synergies of CHBN markets, together with our redoubled efforts to strengthen value retention of mid-to-high-end customers and deepen the innovation of scenario-based operations. Our “Customer” market maintained stable, with revenue reaching RMB255.2 billion in the first half of 2024. Mobile customers exceeded one billion, with a net addition of 9.26 million customers. Of which, our 5G network customer base reached 514 million, representing a net addition of 49 million and accounting for 51.4% of the overall customer base. Revenue from personal China Mobile Cloud Drive increased by 47.7% year-on-year to RMB4.8 billion. The number of customers for integrated-benefit products⁹ reached 315 million, with the corresponding revenue of RMB14.0 billion, up by 37.2% year-on-year. The number of customers using our 5G New Calling over high-definition video reached 129 million, of which, smart application subscribers amounted to 11.82 million. Our M-zone Mango Card products recorded total sales volume of 21.55 million, demonstrating its popularity among young customers. Mobile ARPU (average revenue per user per month) maintained a leading position in the industry and amounted to RMB51.0.

“Home” Market: Extended Services with Greater Value
We pursued the development of a smart home ecosystem featuring full-gigabit network. With China Mobile Aijia (AI Home) brand as the guiding force, we have strengthened the upgrade of our existing customers and the integration of different operations, and actively created new growth drivers such as FTTR (Fiber to the Room) and HDICT (home data, information and communications technology, collectively “home informatization solutions”). As a result, our “Home” market generated favorable growth, with revenue for the first half of 2024 reaching RMB69.8 billion, an increase of 7.5% year-on-year. The number of household broadband customers reached 272 million, or a net increase of 8.48 million customers, maintaining our industry leadership. Gigabit broadband customers accounted for 33.5% of our household broadband customer base, an increase of 3.5 percentage points from the end of 2023. Mobile HD customers reached 208 million, with the corresponding revenue reaching RMB15.1 billion, up by 5.7% year-on-year. The numbers of smart home network and home security customers were 152 million and 58.64 million respectively. FTTR customers surged by 296.4% year-on-year to 5.05 million, and HDICT solutions attracted 35.52 million customers, an increase of 70.1% year-on-year. Household customer blended ARPU reached RMB43.4, representing an increase of 0.2% year-on-year.

“Business” Market: Deep Cultivation of the Industry with Enhancements to Scale and Quality
We advanced the integrated development of our network, cloud and DICT (data, information and communications technology), built innovative “AI+DICT” service capabilities, proactively established an operation system that is standardized and product-driven for effective management of platform-based solutions, and tapped into high-value areas of our corporate customer base. In the first half of 2024, our “Business” market revenue maintained favorable growth and reached RMB112.0 billion, up by 7.3% year-on-year. Our corporate customer base reached 30.38 million, a net increase of 2.01 million. Our share of contracts won in open tenders amounted to an industry-leading 18.4%. We successfully developed “standardized, product-driven and platform-based” solutions that cater to 30 business segments, cultivating 58 core capabilities and expanding over 500 projects. China Mobile Cloud maintained its position as a top-tier cloud services provider, and fully leveraged this advantage and competencies in the integration between cloud on the one hand and network, data, intelligence, edge computing and security on the other. China Mobile Cloud revenue reached RMB50.4 billion, an increase of 19.3% year-on-year. Within this, the revenue market share of IaaS+PaaS sat comfortably in the industry top five. We maintained leadership in 5G applications for vertical industry sectors, signed an accumulative figure of more than 40,000 agreements for 5G commercial projects, and achieved remarkable scaled development across multiple sectors including smart cities, smart factories, smart parks, and smart campuses, which helped generate 5G dedicated network revenue of RMB3.9 billion, an increase of 53.7% year-on-year.

Our Internet of Vehicles (IoV) market in the “To V” market obtained breakthroughs in scale. The net increase of IoV factory-installed connections reached 7.29 million, accumulating to 57.91 million. The usage of 5G+ Beidou high-precision positioning reached 1.7 trillion times. We enriched the “people-car-home” service offering and entered channel partnerships with 10 top-tier car makers. We also participated in the “vehicle-road-cloud integration” pilots in cities. In the “To G” market, alongside a deepened market expansion, we have accumulated digital government capabilities and released the Jiutian massive-computing large model v3.0 for public administration. We have also deeply participated in the construction and operation of multiple key digital cities at the provincial and municipal levels, delivering exemplary benchmark projects. For the first half of 2024, accumulated contract value exceeded 12.6 billion, an increase of 13.8% year-on-year. We tapped into the growth potential of the corporate market, making efforts to build a “terminal, network, cloud, data” product system. We developed 15.80 million corporate packages targeting specifically at SMEs, a net increase of 10.75 million. We actively explored new business opportunities by accelerating deployment of the planning and competencies for the low-altitude economy, aviation Internet and air-ground business.

“New” Market: Increased Contribution with Scaled Development
Thanks to larger business scale, higher effectiveness and better brand building, our “New” business witnessed rapid growth. Revenue from our “New” market reached RMB26.6 billion in the first half of 2024, an increase of 13.2% year-on-year. In terms of international business, we deepened the synergies between international and domestic markets. We increased the export of high-quality product capabilities and 5G solutions to overseas markets to serve the construction of the “Belt and Road”, while upgrading our digital infrastructure overseas and further strengthening our international ties. In the first half of 2024, our international business revenue reached RMB11.8 billion, an increase of 16.3% year-on-year. In terms of equity investment, we focused our strategy in areas such as strategic emerging industry clusters, future strategic industries, and digital transformation of industries, amplifying the role of capital in connecting and empowering the industry value chain. In terms of digital content, we strengthened our “content, technology and integrated innovation” operating model, refining core products such as MIGU Video while developing core atomic-level capabilities for digital products including digital humans in the metaverse, XR+ naked eye 3D display and digital space. Digital content revenue reached RMB14.5 billion in the first half of 2024, or growth of 11.3% year-on-year. The number of monthly active users for our cloud games across all platforms reached an industry leading 123 million. In terms of FinTech, we took full advantage of the role of finance in empowering and promoting business growth throughout the industry value chain, achieving a business scale of RMB37.9 billion in the first half of 2024, an increase of 72.1% year-on-year, and serving 55.5% more enterprises. We created an all-in-one digital consumption portal across all platforms, driving growth in monthly active customers of “and-Wallet” transactions by 15.8% year-on-year.

We placed customers at the heart of our business and spared no effort in developing new digital services for all scenarios across multiple modes and sectors, ensuring rapid and steady development of digital transformation. In the first half of 2024, the digitalization revenues from our “Customer”, “Home” and “Business” markets grew by 34.6%, 4.5% and 7.9% year-on-year respectively. Of which, DICT revenue increased by 8.4% year-on-year to RMB65.2 billion. Meanwhile, “New” market digitalization revenue increased by 9.7% year-on-year.

9	This refers to the number of normal on-net customers who have subscribed to our benefit products, including benefit-only package products, telecommunications + benefit package products and paid members of our benefit superstore. Duplicate customers within the benefit business are removed.

We took on the responsibility of being a leading force behind China’s leapfrog development of science and technology, making active contributions to the building of “Cyberpower” and “Digital China”. We have continuously strengthened the foundation of digital-intelligent foundation.

Continued to optimize our smart digitalization infrastructure. We built upon our leadership in dual gigabit network to create a competitive edge in 5G network and deepen the co-construction and cooperation with China Broadcasting Network Corporation Limited. In the first half of 2024, our investments in 5G network totaled RMB31.4 billion. Accumulatively to the end of June 2024, we have brought into use more than 2.29 million 5G base stations, including 705,000 700MHz 5G base stations. We spearheaded the scaled deployment of 5G-A technology with a focus on enhancing capabilities in areas including RedCap, 3CC (3 Component Carriers), and integrated sensing and communications. The commercial deployment of 5G-A is already in place in more than 280 cities and will be expanded to more than 300 cities within the year. We built out our gigabit broadband capabilities with precise scenarios in mind. As of the end of June 2024, our gigabit platform capability is available in 100% in urban areas across the country and over 97% in villages. Our gigabit network has covered 438 million households. In the meantime, the Company is accelerating the upgrade of the network infrastructure to space-air-ground integration, promoting the deep integration of aviation Internet and satellite Internet with the ground network. We pioneered the deployment of our computility network with leading technology at scale, proactively implementing the national strategy of Eastern Data and Western Computing. We have laid the groundwork to establish a nationwide computility network that is unparalleled in both technological capabilities and scale, and continued to improve general computility, achieving a capacity of 8.2 EFLOPS (FP32). We accelerated the development of intelligent computility, achieving a capacity of 19.6 EFLOPS (FP16). We continued to optimize our “N+X”¹⁰ multi-layer and full-coverage deployment of intelligent computility capability. The first batch of 13 intelligent computing center nodes in Beijing-Tianjin-Hebei, Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, Chengdu-Chongqing have been put into operation. We have established the world’s first 400G full backbone OTN with both the largest scale and widest coverage, and continuously developed the “1-5-20ms” three-tier low latency ranges. We have also fully achieved a smart backbone network based on IPv6. Applications of the integration platform achieved remarkable results. Leveraging the “AaaS+” Action Plan with the launch of both “capabilities superstore” and the centralized sharing model to accelerate the supply of intelligent capabilities, we had included nearly 1,100 integration platform capabilities, which were deployed a total of 319.7 billion times for the first half of 2024. We upgraded and improved the Data Switching Service Network (DSSN) as the infrastructure for the circulation of data elements, and this was implemented in six provinces and across eight industries, and DSSN recorded an average of over 100 million monthly data transactions.

Continued to optimize our smart info-service spectrum. In terms of product offerings, we have intensified our focus on bringing outstanding products to market and this has yielded favorable results. In the mass market, 17 of our products each had a user base in excess of 100 million. Of them, the number of users of eight products exceeded 200 million. In the “Business” market, the revenue from 6 products exceeded RMB10 billion each. In the computility network market, we have developed more than 70 intelligent computility projects with an accumulative contract value surpassing RMB2 billion. While service touchpoint capability of China Mobile Cloud across all platforms occupied a leading position in the industry, the core functional performance of our key products, including COCA¹¹ 2.0 heterogeneous computing architecture and our in-house developed DPU chips, was also at the forefront in the domestic market. In the big data market, we leveraged Wutong Big Data platform to accumulate more than 2,000PB of data resources, and elevated our data governance ability to China’s highest rating of DCMM Level 5, achieving a total of 100 billion times of data deployment throughout the year with extensive applications in various fields including data governance, emergency management, and smart cultural tourism. In the Visual Internet market¹², we were the first operator to release technical standards, service standards and white papers for Visual Internet. We have released the Visual Internet large model. For the first half of 2024, our Visual Internet products have accumulated 70.30 million video-cloud connections, following a net addition of 10.19 million video connections. In the security business market, we built out the product system of “network, cloud, DICT+security”, generating accumulative revenue of RMB2.1 billion for the first half of 2024. In terms of services, we continued to optimize service management covering every aspect and process of service and involving every member of staff, and maintained industry-leading customer satisfaction. We maintained an edge in terms of customer satisfaction with our mobile network quality, while that with household broadband network quality increased substantially for two consecutive years. As the initial developer and adopter of large models for customer service, we deepened the applications of video customer service based on communications networks and the Internet, with an average monthly service volume exceeding 148 million. In terms of brand management, with a focus on our goal of a world-class outstanding brand, we adhered to the principles of “high-quality, premium proposition, high-end image” and adopted the “brand-first approach” to promote the construction and operation of “1+4+4” strategic brand system¹³. China Mobile occupied a prominent position in the Brand Finance Most Valuable Chinese Brands 2024 list. We continued to enhance our brand value and occupied a leading position among global telecommunications operators.

10	It refers to: N (national, regional intelligent computing centers) + X (localized and customized edge intelligent computing nodes).
11	COCA stands for Compute on Chip Architecture.
12	China Mobile Visual Internet is a smart digitalization infrastructure specializing in video connection services. Using video IoT terminals as the medium, it converges connection, capabilities and services on a video-connected platform.
13	“1+4+4” strategic brand system refers to: “China Mobile” as the corporate brand; GoTone, M-zone, Easy Own and China Mobile Aijia (AI Home) as four customer brands; and MIGU Video, China Mobile Cloud, Wutong Big Data and Jiutian as four product brands.

Assuming a principle role in fostering innovation, we upgraded the “Unified Five Rings”¹⁴ technology and innovation framework, striving to promote the BASIC6 Initiatives. We bolstered our efforts in nurturing emerging and future strategic industries to drive innovation continuously.

Systematic planning of 5G-A/6G research and development. We played an active role in the freezing of the 5G R18 standards and maintained our leading status among global operators in the number of related technical proposals and projects we led. We first proposed the 5G-A integrated sensing and communications technology system, and built the 5G-A integrated sensing and communications pilot platform. We developed the industry-leading “China Mobile Link-Cloud” UAV intelligent management and control platform. We also developed a new product “e-Lark” based on the networked passive IoT technology solutions we had proposed. We successfully sent two air-ground experimental satellites — China Mobile 01 satellite and Xinghe verification satellite¹⁵ — into Low Earth orbit, establishing an air-ground experimental foundation, and completing the world’s first IoT-NTN laboratory proof of real-time voice by direct connection between mobile phone and High Earth orbit satellite. We have also released the experimental foundation 1.0 for the R&D of 6G communicating, sensing, computing and intelligent integration. The number of 6G patents, papers and other innovative achievements placed us among the top-tier global operators in this field.

Ongoing leadership in computility network development. The “Computility Network Key Technology” Working Group was established in the internationally-acclaimed Internet Engineering Task Force (IETF), helping our proprietary integrated CN technology to be globally recognized. We achieved breakthroughs in proprietary technologies such as Computility Routing, Computility Native, and fully-deployed Ethernet, with major innovations in areas such as our in-house developed server DPU intelligent computility acceleration engine and intelligent computility cross-architecture migration software. We led and proposed a wide-area high-throughput protocol to achieve high throughput data transmission of over 5,000 kilometers, constructed the world’s first 800G+ hollow-core optical fiber test network capable of 20-kilometer two-way 128TB/s ultra-large data transmission with optical link latency reduced by over 30%. We also released the world’s first computility router. Our Brain of Computility Network integrates general computing, intelligent computing, super computing and quantum computing, namely the Yangtze River Delta Hub Wuhu Cluster Computility Public Service Platform was launched as a national-level hub node for the first time.

Breakthroughs in artificial intelligence innovation at an accelerated pace. We released the Jiutian artificial intelligence foundation comprising 10,000-card intelligent computing clusters, 100 billion-parameter multi-modal large models, and an eco-platform that brings together hundreds of major elements, constantly improving our large model spectrum. We invested every effort to build a “1+N” system of general and industry-specific 100 billion-parameter large models. Through the “in-house development + ecosystem cooperation” approach, we have deployed high-performance industry-specific large models in 40 sub-sectors including network, customer service, healthcare, public administration, industry, transportation and finance. In the first half of 2024, we have released 17 self-developed Jiutian industry-specific large models, accumulating 450 AI capabilities and empowering nearly 1,000 industry applications. Among all AI large models developed by Chinese State-Owned Enterprises, the Jiutian foundation large model has become the first to have obtained “double filings” from the Chinese government for the provision of generative AI services and domestic deep synthesis service algorithms. It has also received the highest-level A-grade security certification from the China Software Testing Center.

Value conversion of big data actively promoted. We progressed the setting of data standards, and actively participated in the compilation of national standards for the classification and grading of high-quality data sets, and for the format of AI data sets. We created a uniform “data catalog” for data standardization, sharing and reuse. We launched our Wutong Big Data platform, the world’s largest communications service data cluster, building a high-quality data set with over five trillion tokens by our autonomous data cleaning and precise data labeling. We actively advanced innovations in data technology and connected with partners throughout the industry chain to intensify efforts in key technologies such as data lake-warehouse integration, data fabric, and distributed computing to improve the processing efficiency of massive, multi-source, and heterogeneous data.

Improved empowerment from the integration platform. We worked with members of the AaaS+ technology alliance to formulate industry standards such as modular platforms in order to promote the interoperability of the integration platform among different ecosystems. We achieved breakthroughs in key technologies for the integration platform, explored AI-based intelligent assembly and automated orchestration technologies, delved into metaverse-based capability operation and interaction technologies, and drove the rapid conversion of technological innovations into products and markets. We promoted the integrated innovation of “capabilities + integration”, accelerated the standardized governance of capabilities, and rapidly upgraded the open sharing of the integration platform capabilities to be flexible, convenient, efficient, and secure.

Strengthened network and information security. We launched the first full-scenario fraud prevention service in the information and communications industry. Currently under trial in various locations, the service builds four layers of defense including intelligent fraud detection, intelligent early warning, smart home connect and insurance compensation. We released China Mobile’s AI security white paper to build a new generation of security foundation for AI infrastructure. We launched a quantum encrypted handset to further help protect customer information security.

The Company achieved remarkable results in technological innovation. We led the “5th-Generation Mobile Communications System (5G) Key Technologies and Engineering Applications” and the project won the first-class award of the State Scientific and Technological Progress Award. China Mobile was also named as the top-ranked enterprise on the inaugural list of 2023 outstanding enterprises leading in science and technology innovation, released by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council.

14

The “Unified Five Rings” refers to our technology and innovation system that consists of five rings: the inner ring (major research institutes), the mid-ring (specialized companies facilitating industry research collaboration), the outer ring (provincial companies and regional innovation institutes), the partnership ring (tertiary institutes and enterprise partners), and the overseas ring (overseas R&D institutes and international organizations).

15

China Mobile 01 satellite carries a base station that supports 5G air-ground communications technology. It is the world’s first integrated terrestrial and celestial signal processing system capable of verifying 5G air-ground evolutionary technology. Designed with 6G concepts, Xinghe verification satellite deploys the industry-first satellite core network capable of in-orbit operation, making it the world’s first verification satellite to validate 6G architecture.

We fully embraced the era of AI by speeding up the transition from “+AI” to “AI+” in order to fuel high-quality development.

Ongoing enhancements to “AI+” capability. We forged a team of top AI talent, established the Jiutian AI Research Institute with a 2,000-strong core team and are building a new AI infrastructure. The hyper-scale Hohhot Intelligent Computing Center has commenced operations. Meanwhile, the hyper-scale Harbin Intelligent Computing Center has commenced construction. We strengthened our high-quality AI core competencies, launching full-stack proprietary and controllable 100 billion-parameter multi-modal large models, alongside starting the trials of the 200 billion-parameter multi-modal large model and conducting initial research into trillion-parameter large model technology. We created an AI industry ecosystem, actively expanding our Jiutian ecosystem platform to include more industry players and opening large model training bases, evaluation bases, and industrial innovation bases to provide one-stop industry integration services such as model training and inference, and AI+ native application incubation to society.

Steady progress in “AI+” application innovation. In the business market, we strove to build an “AI+DICT” product system and launched COMPASS¹⁶ capabilities, becoming the first in the industry to provide integrated services covering network, computility, models, tools, and applications. We launched 20 industry applications such as AI invigilation, AI quality inspection, AI audit, AI first aid, AI agricultural technology question and answer, and AI training and inference integrated machines, and developed intelligent products such as AI office assistant, AI video surveillance and AI digital twin. We accelerated the monetization of our AI capabilities and achieved breakthrough by winning the bid for an AI project of a large state-owned enterprise. For the mass market, we built an AI product portfolio, carrying out fully developed AI+ upgrades for strategic products such as Video Ring Back Tone (RBT), 5G New Calling, China Mobile Cloud Drive, mobile HD, and cloud computers by building in new AI functions and enhancing their innovative digital-intelligent features. We nurtured diverse smart applications with a clear focus on the eight AI+ areas: new communications, new office, new content, smart home, Visual Internet, Internet of Things, security, and hardware. We have also accelerated the research and development of new AI products such as home robots. In the first half of the year, the total number of customers for AI-powered products reached 110 million. At the same time, we promoted the smart upgrading of operations and management internally, and achieved visible results through bettering management and empowerment and enhancing cost-effectiveness. Network-related cost per RMB100 of fixed assets decreased by 3.5% year-on-year, and energy consumption of a single 5G station decreased by 11.7% year-on-year. We deployed 55,000 digital employees, accumulatively reducing workload by 1.54 million man-days.

Going forward, we will further refine our AI development approach and expand the scale of AI+ initiatives. We will enhance our service capabilities of general computility, big data, and large models to consolidate the foundation for “AI+” development. At the same time, we will enrich the “AI+” service model to promote the innovative adoption of AI in a broader range and at a deeper level, helping all sectors to become smarter, more digitalized and connected.

16	COMPASS stands for Computility (CO), Large Models (M), Products (P), Applications (A), Solutions (S), Services (S).

We continued to deepen reforms and improve management quality, at the same time as expanding our circles of “relatives”, “friends” and ecosystem. By doing so, our organic growth vitality increased significantly alongside a thriving ecosystem.

Comprehensively extended enterprise reforms. We advanced enterprise reforms in greater depth and breadth. We promoted the establishment of boards of directors in our subsidiaries as far as practicable, resulting in a more robust system and mechanism. We enhanced our diverse and structured talent pool while achieving breakthroughs in building a strategic leadership pipeline by building a stronger high-level expert force and attracting outstanding, specialized and coveted talent to join us. We sped up our pace to upgrade our workforce, driving staff transformations from traditional to digital-intelligent, from single-skilled to multi-skilled, and from back-end to front-end. We also formulated incentive policies taking into consideration strategies of optimization and allocation of resources, business transformation and technological innovation in order to ensure better and more comprehensive incentive mechanisms in the mid- to long-term. By adopting scientific approaches, we continuously strengthened our management system by ensuring the headquarters, regional companies and specialized teams performed their respective roles in overall strategy-setting and management, driving market development, and enhancing competency. We strengthened the headquarters’ “strategy + operation” role in management and control, particularly in technological innovation and internal coordination. We further implemented all-factor budget control and strengthened full-process and closed-loop management of assets, resulting in consistent improvements in quality management. Frontline reforms have generated notable results. Results of the national technology company development program and the Double-hundred Action have been highly recognized by SASAC of the State Council, and three of our subsidiaries were named as “Benchmark” enterprises and five as “Outstanding” enterprises. We have built a three-tiered management system comprising technological research special zones, key research teams and a research pipeline. Leveraging Jiutian as a benchmark, we have developed 15 technological research special zones, and supported our subsidiary XinSheng Tech to complete A+ strategic investment round. China Mobile’s reforms has been highly recognized and received grade A result for three consecutive years from the evaluation of SASAC of the State Council.

Comprehensively extended open collaboration. With the aim of fostering more extensive strategic collaboration, we strengthened strategic partnerships with governments at all levels, enterprises and tertiary institutes, driving cross-disciplinary collaboration in information services to support further innovations in the digital economy. Through capital investment plan and promoting sector-investment synergy, we mapped our investment in strategic emerging sectors and future industries such as AI, air-ground integrated network, basic software and advanced manufacturing. We strengthened innovation cooperation by enhancing joint innovation and forming innovation alliances in 5G and computility network to establish high-quality and synergistic innovation platforms. We also stepped up new joint R&D by further implementing the Joint Innovation Plus scheme and partnering with leading enterprises, and tertiary and sci-tech research institutes to advance the integrated innovation of industry, academia, research and application. We have accumulatively built 34 joint R&D initiatives and formed the first international joint R&D project. We have also promoted innovation regionally and in overseas by setting up an innovation research institute in Hong Kong and a platform for the coordination, research and management of export capabilities. Drawing on our leadership in the industry chain, we continued to foster ecosystem collaboration. We have attracted more than 1,300 companies to become links in the chain. Leveraging our subsidiary chains, we deepened partnerships with enterprises of different sizes across vertical industry sectors and persistently enhanced our leadership and the industry’s resilience, which resulted in the formation of high-quality industry clusters. We also continued to strengthen the Global TD-LTE Initiative (GTI) international cooperation platform, gathering more than 400 global operators and industry partners.

To ensure high-quality corporate governance, we adhered to principles of integrity, transparency, openness and efficiency and fully complied with all applicable listing rules and regulations governing listed companies. We actively responded to global sustainable development initiatives and strengthened ESG strategy implementation and performance supervision. We continued to improve our corporate governance and decision-making mechanisms and optimize the top-down design and operating mechanism of compliance management. This helped the Company modernize its governance system and governance capabilities to support the Company’s continuing reform and development. We enhanced our internal control and supervision across-the-board with a particular focus on key business areas to strengthen risk prevention and mitigation. By improving risk detection capabilities and strengthening risk prevention and control, we safeguarded the healthy and sustainable development of the company.

We fully utilize our corporate expertise, empowering industries with digital intelligence to drive comprehensive economic and social development. We serve individuals and families, enabling them to create a better digital life. We expand our global vision, deepening and promoting win-win international cooperation. We continued to make extensive contributions in areas including supporting regional coordinated development, advancing digital-intelligent village revitalization, practicing green and low-carbon operations, carrying out public welfare and charity, and assisting in emergency rescue and disaster relief. Our overall performance has been rated as the highest “Five-star Excellence” in the “2024 China ESG Listed Companies Pioneer 100” list. We focused on cultivating all-round talent and value talent as the most important asset for driving innovation and development. We provide effective training and an enabling workplace for outstanding talent, and strive to promote collaborative growth between our employees and our organization.

The evolving external environment has introduced growing adverse impacts, while effective demand has persistently remained inadequate. Our business transformation is clouded by the transitional phase between old and new growth drivers, introducing an element of uncertainty. Meanwhile, the macroeconomic outlook continues to improve. The development of new quality productive forces not only propels the pervasive integration of next-generation information technology across the entirety of economic and social domains, but also ushers in a new digital-intelligent era characterized by the deep integration of information and energy at an accelerating pace. Data, computility and AI have become the new engine for technological innovations. Information technology and its deep integration with the real and financial economies have given rise to emerging industries. “Internet+”, “5G+” and “AI+” have identified a new pathway for information technology to be integrated into all aspects of the economy, society and everyday life, which will profoundly revolutionize the way people work and live, as well as upending the model of social governance, presenting unprecedented opportunities for the information and communications sector. Especially in recent times, we have seen accelerated breakthroughs in the application of new generation information technologies represented by AI, computility networks, big data and blockchain. Promoting economic and social transformation from “+AI” towards “AI+”, this phenomenon has empowered individuals, families, communities and professionals, facilitated the integrated innovation of emerging technologies, further deepened the integration of multi-domain intelligence applications, and opened up a vast blue-ocean of opportunities.

Faced with the new business landscape and opportunities, we will fully, accurately and comprehensively align with the new development paradigm. We will pursue stable progress while forging ahead with a steadfast focus on integrity and innovation. We will enhance core functions, strengthen core competencies and fully implement the “1-2-2-5” strategy, further deepening reforms to bolster our organic growth momentum, innovative vitality and development potential. We will also strive to promote the “Two New Elements” with smart digitalization infrastructure and smart info-service spectrum, while making all-out efforts on “AI+” and “BASIC6” initiatives. By doing so, we will develop new quality productive forces at an accelerated pace, promote digital-intelligent transformation and high-quality growth. As we establish ourselves as a world-class information services and sci-tech innovation enterprise, we will consistently create greater value for our shareholders and customers.

On behalf of the Board, I would like to sincerely express my heartfelt gratitude for the support of our shareholders, customers and the public, and for the dedication and contribution of our employees.