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 connections surpassed 3.50 billion, with a net addition of 150 million. In the CHBN markets, HBN revenue accounted for 45.0% of telecommunications services revenue, an increase of 2.3 percentage points year-on-year. Our digital transformation revenue, 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. EBITDA 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.

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 products 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.

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.

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.

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 adopted a systematic approach to developing smart digitalization infrastructure centering around 5G, computility network and integration platform. In the first half of 2024, we spent an overall CAPEX of RMB64.0 billion. For full-year 2024, we expect total capital expenditure to be within RMB173.0 billion, which will be funded mainly from cash flow from operating activities.

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 share 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 Company will further increase from that of 2023. The Company will continue to create more value for shareholders.

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.