China Mobile (941) investor relations material

Executive summary

• Operating revenue for H1 2026 was RMB538.0 billion, down 1.1% year-over-year, with net profit at RMB78.9 billion, down 6.3%, but both showed positive growth on a comparable basis due to VAT policy changes.

• Free cash flow surged 111.6% year-over-year to RMB53.9 billion, and net cash from operating activities rose 37% to RMB114.9 billion.

• Interim dividend declared at RMB2.51 per share, up 0.3% year-over-year, with new RMB/HKD payment options for shareholders.

• Customer base remained robust: mobile customers reached 1,011 million, broadband customers 340 million, and IoT card connections 1.51 billion.

• Significant investments in network, computing, and AI infrastructure, with CapEx up 4.5% year-over-year to RMB61.0 billion.

Financial highlights

• Principal business revenue was RMB452.7 billion, down 3.1% year-over-year; other business revenue (including handset sales) rose 11.2% to RMB85.4 billion.

• EBITDA was RMB173.6 billion, down 6.6% year-over-year, with margin at 32.3% of revenue.

• Operating expenses increased 1.4% year-over-year; network operation and support expenses were RMB140.6 billion, up 0.5%.

• Employee benefit expenses fell 2.8% to RMB75.2 billion; selling expenses dropped 1.6% to RMB28.3 billion.

• Net profit margin decreased from 15.5% to 14.7% year-over-year.

Outlook and guidance

• Focus on integrated deployment and innovation in communications, computing, and AI networks.

• Dividend payout ratio for 2026 expected to be stable or rising.

• Targets stable and healthy revenue growth and coordinated profit growth on a comparable basis for the full year.

• Aims for net additions of 10 million mobile customers and 18 million integrated broadband network customers, plus over 48,000 PFLOPS in intelligent computing capacity.

• Anticipates continued external headwinds, VAT policy adjustments, and industry transition from conventional to new growth drivers.