Our operating revenue for the year reached RMB1,040.8 billion, representing year-on-year growth of 3.1%. Of this, telecommunications services revenue accounted for RMB889.5 billion, a year-on-year increase of 3.0%. The total number of connections³ reached 3,670 million, with a net addition of 316 million connections. With regard to the CHBN⁴ markets, revenue from the HBN markets accounted for 45.6% of telecommunications services revenue, an increase of 2.4 percentage points year-on-year. Digital transformation revenue⁵ reached RMB278.8 billion, an increase of 9.9% year-on-year, and its contribution to telecommunications services revenue reached 31.3%, an increase of 1.9 percentage points from the previous year.

Profit attributable to equity shareholders was RMB138.4 billion, an increase of 5.0% year-on-year, with earnings per share of RMB6.45. EBITDA⁶ was RMB333.7 billion, accounting for 37.5% of telecommunications services revenue. Our profitability maintained its leading position among top-tier global telecommunications operators. Capital expenditure totaled RMB164.0 billion, accounting for 18.4% of telecommunications services revenue, a decrease of 2.5 percentage points year-on-year. Free cash flow was RMB151.7 billion, an increase of 22.9% year-on-year.

The Board of Directors recommends a dividend payout ratio of 73%⁷ for the full year of 2024. It also recommends a final dividend payment of HK$2.49 per share⁸ for the year ended 31 December 2024. Together with the interim dividend already paid, total dividend for the full year of 2024 amounted to HK$5.09 per share, an increase of 5.4% year-on-year.

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, in the three-year period from 2024, the profit to be distributed in cash for each year will gradually increase to above 75% of the profit attributable to equity shareholders of the Company⁹ for that year. The Company will strive to create more value for shareholders.

The Company comprehensively advanced its CHBN strategy and drove the integrated development across all four markets. We remained steadfast in our customer-centric and market segment-based approach, focusing on customer retention and value generation as our long-term strategic priorities, while strengthening our product offerings and innovation capabilities. As a result, we have consolidated our fundamental advantages while effectively stimulating growth.

“Customer” Market: Holistic Management of Existing and New Customers with Refined Operations
We have reinforced the development strategy of “connectivity + application + benefits + hardware”, persistently refining the management approach to existing customers through service integration, value creation, and the improvement of customer experience. In the meantime, we have expanded our business based on market segmentation and customers’ use cases. We worked to transform the revenue growth driver of the “Customer” market to AI+ information services, maintaining stable development of this market. In 2024, “Customer” market revenue reached RMB483.7 billion and mobile customers exceeded 1.0 billion, representing a net increase of 13.32 million. Of these, 5G network customers reached 552 million, with a net increase of 88 million, representing 55.0% of the overall customer base. Personal China Mobile Cloud Drive revenue reached RMB8.9 billion, a year-on-year increase of 12.6%; revenue from integrated-benefit products reached RMB26.8 billion, a year-on-year increase of 19.7%. The number of monthly active customers using our 5G New Calling across all platforms reached 150 million, of which smart application subscribers amounted to 34.75 million. Mobile ARPU (average revenue per user per month) continued to be industry-leading at RMB48.5.

“Home” Market: Smart Upgrades with Value Uplift
Our smart home ecosystem, launched under the China Mobile Aijia (AI Home) brand, has been focused on “full gigabit + cloud life”. We actively promoted the upgrade of connection to “gigabit + FTTR (fiber to the room)” and of AI+ smart home applications and smart home services. These initiatives have helped the “Home” market achieve favourable growth. In 2024, “Home” market revenue reached RMB143.1 billion, a year-on-year increase of 8.5%. The number of household broadband customers reached an industry-leading 278 million, representing a net increase of 14.05 million customers. Of these, gigabit broadband customers reached 99 million, a year-on-year increase of 25.0%. FTTR customers reached 10.63 million, a year-on-year increase of 376%. AI+ Mobile Home Security customers reached 12.80 million. Household customer blended ARPU increased by 1.6% year-on-year to RMB43.8.

“Business” Market: Leveraging Strong Capabilities with Deep Cultivation of Vertical Industries
The integrated scale expansion of “network + cloud + DICT (data, information and communication technology)” has helped us forge new “AI + DICT” capabilities, accelerating the construction of an operating system for standardized, product-driven, and platform-based solutions. We have vigorously explored high-value commercial customers and achieved favourable growth in the “Business” market. In 2024, “Business” market revenue reached RMB209.1 billion, a year-on-year increase of 8.8%. Our corporate customer base grew by 4.22 million to reach 32.59 million. The proportion of contracts won in open tenders amounted to an industry leading 16.6%. We launched 99 standardized, product-driven, and platform-based solutions that incorporate our proprietary capabilities. We strove to become a top-tier cloud services provider by embarking on the cloud to intelligence transformation. China Mobile Cloud revenue reached RMB100.4 billion, a year-on-year increase of 20.4%. The scale of IaaS+PaaS (infrastructure as a service + platform as a service) revenue maintained its top-five position in the industry while 5G applications for vertical sectors also maintained an industry-leading position, scaling up significantly in smart cities, smart factories, smart parks, smart campuses and other segments. We won more than 700 large-scale 5G DICT projects, each with a commercial value of more than RMB10 million. 5G dedicated network revenue reached RMB8.7 billion, a year-on-year increase of 61.0%.

In the “To V” market, we have achieved significant breakthroughs. With a net increase of 14.43 million factory-installed IoV connections, our total number of connections reached 65.06 million. We established channel partnerships with 25 leading car manufacturers, fast strengthening our presence in the field of “vehicle-road-cloud integration” and we made good progress in collaborative benchmark projects in pilot cities. In the commercial customer segment, we achieved initial success through enriching the “dedicated line+” one-stop integrated products and lightweight solutions. Our commercial packages for small and medium-sized enterprises grew to 26.84 million, with a net increase of 21.40 million sets. As the low-altitude economy quickly takes shape, we have released the “Four Engines and Two Wings” capability system¹⁰, creating 50 benchmark applications to support the scale growth of the sector.

“New” Markets: Innovation and Breakthroughs with Increased Contribution
We focused on innovative expansion in four major areas: international business, digital content, FinTech, and equity investment, achieving favourable growth in the “New” market. In 2024, “New” market revenue reached RMB53.6 billion, a year-on-year increase of 8.7%. In terms of international business, we unleashed further synergies between the domestic and international markets, sped up the export of high-quality products and solutions to support the “Belt and Road” initiative, and upgraded overseas digital infrastructure while continuing to strengthen our international ecosystem cooperation. In 2024, international business revenue reached RMB22.8 billion, a year-on-year increase of 10.2%. In terms of digital content, we stepped up our efforts in digital-intelligence creation and new quality content operations, while refining our core products such as MIGU Video. Digital content revenue reached RMB30.3 billion for the year, a year-on-year increase of 8.2%. MIGU Video’s monthly active customers across all platforms reached 520 million, with MIGU AI Smart Match accumulating 160 million views. In terms of FinTech, we created a “communications + finance” integrated ecosystem, achieving a business scale throughout the industry value chain of RMB116.5 billion, a year-on-year increase of 52%. Our “and-Wallet” monthly active customers grew by 40.7% year-on-year to 124 million. In terms of equity investment, we focused on strategic emerging industries and key areas of future industries, further enhancing the role of capital as a link and enabler.

The Company continued to upgrade the “Two New Elements”, actively building out a new model for value growth.

Ongoing improvement of smart digitalization infrastructure. Our “dual gigabit” network maintained a leading position. We spared no effort to reinforce our leading advantage in the 5G network, investing RMB69.0 billion in 2024 and accumulatively put into operation more than 2.4 million 5G base stations, a net increase of 467,000 stations. We have built the world’s first large-scale commercial 5G-A network, with RedCap (Reduced Capability) covering all cities nationwide. We piloted technologies including sensing and communication integration, AI applications in wireless networks, and passive IoT in various scenarios and applications. We deployed our gigabit broadband capabilities in an on-demand and precise manner and at the end of December 2024, our entire network had been fully equipped with gigabit service capabilities, with gigabit coverage reaching 480 million households. Meanwhile, we are accelerating the evolution of network infrastructures to support space-air-ground integration, promoting the deep integration of aviation Internet, satellite Internet and ground networks. Our computility network continued to lead the industry. We actively implemented the national Eastern Data and Western Computing project, forging a nationwide computility network with all-round leadership in technology and scale. Our general-purpose computility capacity has reached 8.5 EFLOPS (FP32), and our intelligent computility capacity has reached 29.2 EFLOPS (FP16). The “N+X”¹¹ multi-layer and full-coverage intelligent computility layout continued to improve, with the first batch of 13 intelligent computility center nodes commencing operation in regions including Beijing-Tianjin-Hebei, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and Chengdu-Chongqing. The system gave rise to a computility optical network spanning east to west and connecting different hubs. We continued to optimize the “1-5-20ms” three-tier low-latency computility service circle. Among them, the 400G backbone network was selected as one of the Top 10 mega-projects of China’s central state-owned enterprises in 2024, and the IPv6+ backbone network was selected for the 2024 World Internet Conference Awards for Pioneering Science and Technology. By continuously and comprehensively upgrading the AIDC, our data centers covered all national hub nodes. Our integration platform applications continued to expand. We accelerated the intelligent service supply of “unified packaging and flexible deployment” capabilities, launching 1,348 capabilities on the platform in 2024, with the total number of deployments reaching 777.6 billion. We have built the world’s largest communications service data cluster – the Wutong Big Data Platform – with a cumulative data scale exceeding 2,000PB, and annual data service deployments exceeding 100 billion times.

Continuous optimization of smart info-service spectrum. Our product offerings have significantly expanded. We seized the opportunities arising from accelerated economic and social digital transformation by focusing on creating more core products and industry applications at the scale of hundreds of millions, billions, and tens of billions, while meeting customers’ needs for improved digital lives, streamlined production, and enhanced governance. In the mass market, 17 products have a customer base exceeding 100 million, with 8 products having a customer base exceeding 200 million. In the corporate market, 6 products have generated revenues exceeding RMB10 billion. We have achieved the integration of general-purpose computing, intelligent computing, supercomputing and quantum computing into the network, expanding more than 370 intelligent computing services. We have pioneered the industry’s first technology standards, service standards, and white papers for the Visual Internet¹², while releasing the Visual Internet large model and achieving a year-on-year increase of 165% in newly-added connections. We have established three major product systems: network-integrated security, cloud-integrated security and DICT-integrated security. Our security products generated annual revenue growth of 103%. The newly-launched Beidou satellite messaging service enabled seamless messaging in areas without signal coverage. Our customer service further improved. We set up a Customer Experience Management Committee to further enhance the comprehensive service system that covers every aspect and process of service and involves every member of staff. The system resulted in a significant decrease in customer service-related complaints and an increase in the one-time resolution rate for customer issues by 2.2 percentage points. The average handling time for customer issues decreased notably. Our customer satisfaction is industry-leading, with increased satisfaction with product quality and a high level of satisfaction with touchpoints and network quality. Our brand building efforts persisted. We are committed to creating a high-quality and highly recognized prestigious brand, furthering the building and operation of the “1+4+4” strategic brand system¹³. Our brand impact continued to improve, with our brand value ranking among the top 100 globally renowned lists and maintaining industry leadership. We have refreshed the China Mobile Aijia brand, conveying the well-received brand propositions of AI-powered smart home and loving and beautiful home. Our channel transformation continued to advance. We have deepened the platform-based operations of the pan-terminal and omni-channel alliance, creating an ecosystem comprising upstream and downstream partners in the terminal industry chain, with over 200,000 cooperative channel merchants. We have worked continuously to improve our online presence, with a focus of making the China Mobile APP the main platform for the operations and interactions of existing customers. Our efforts have achieved positive results, with the APP’s monthly active customers exceeding 230 million, a year-on-year increase of 46.9%.

The Company has fully leveraged its role as the main driver of enterprise innovation, continuously enhancing its technological innovation capabilities and quality. In 2024, we were awarded two First Prize awards and three Second Prize awards in The State Scientific and Technological Progress Award.

Achieved more robust innovation and technological breakthroughs. In tackling turnkey technologies, our computility network (CN) brain commenced nationwide commercial use, with the full launch of task-based services, managing over 60 EFLOPS of proprietary computility, social computility, and over 250,000 network links. It has been deployed in four national and regional hub nodes, contributing to the construction of a nationwide integrated computility system. We have jointly developed open standards for intelligent computing card interconnection (OISA) and machine interconnection (GSE) technology systems. We proposed the industry’s first 5G-A integrated sensing and communications technology system and constructed a low-altitude intelligent Internet of Things (IoT) technology system integrating communications, sensing, control and navigation, supporting ten typical low-altitude application scenarios. We built a 6G communications, sensing, computing and intelligence integrated test device, which was selected as a major technological achievement at the Zhongguancun (ZGC) Forum. The Jiutian large model became the first central state-owned enterprise-developed large model to obtain dual filing for “Generative Artificial Intelligence Service” and “Domestic Deep Synthesis Service Algorithm”. Our endogenous security technology commenced large-scale commercial use as we took the lead in releasing the first international standard in computility network security. Our proprietary quantum computing cloud platform became one of the first new items of information infrastructure to be included in the national supercomputing Internet platform. We built a quantum computing scientific device and the first telecom-grade quantum high-definition encrypted communications system. In setting international standards and building high-value patent reserves, we accumulatively led 313 5G international standards, ranking first among global operators. We served as the joint rapporteur for the world’s first 6G scenario and requirement standard, and the first wireless access network 6G standard in 3GPP. China Mobile’s total number of effective patents exceeds 17,000 and we are the first domestic operator to join the world’s largest Linux patent licensing platform.

Innovation yielded more prominent outcomes. We made significant contributions to the commercial conversion of scientific innovation outcomes. We promoted the nationwide commercial use of 5G and 5G-A technologies, creating over 48,000 5G industry commercial cases and helping China maintain an all-round leading position in areas including network construction, technology R&D, integrated applications and industrial development. We upgraded and improved the Data Switching Service Network (DSSN), which has been deployed in 6 provinces, supporting a monthly data transaction volume exceeding 100 million exchanges. The China Mobile DSSN has been written in the National Data Infrastructure Construction Guidelines, becoming the mainstream technical facility and implementation plan for the national data circulation and utilization infrastructure, supporting the healthy development of the data market. We have continuously promoted the large-scale application of 5G+ Beidou high-precision positioning, with service invocations exceeding 2.3 trillion. The outstanding result has won us the “Platinum Award”, the highest award for innovative applications, from the Global Navigation Satellite System (GNSS) and Location Based Services (LBS) Association of China for two consecutive years. We continued to improve the sci-tech innovation system and mechanism. We ran the Jiutian Artificial Intelligence Research Institute while establishing new centres such as the Embodied Intelligence Industry Innovation Centre, the China Mobile General Security Research Institute, the Hong Kong Innovation Research Institute, and the Qilu Research Institute, further strengthening the “Unified Five Rings” innovation system¹⁴. We continued to optimize the three-tier sci-tech reform echelon comprising the sci-tech special zone, key sci-tech teams and a reserve pool, with 15 company-level sci-tech special zones. We have also strengthened the talent pool under the “10-10²-10³-10⁴” program, and sped up the recruitment and development of high-calibre and scarce talent. In the pool, there are more than 5,500 technical experts, more than 20,000 first-rate engineers, and a total of 59,000 R&D personnel.

The Company is seizing the opportunities presented by AI development, anchoring itself as a provider, aggregator and operator, fully leveraging its scale advantage in AI in technological capabilities and economic benefits, and accelerating the transformation from “+AI” to “AI+”.

“AI+” capabilities continued to optimize. We have strengthened our new AI infrastructure, with two mega-scale intelligent computing centres with ten thousand-level processor capacity in Hohhot and Harbin commencing operation. Our hyper-scale training and inference-integrated intelligent computing platform supports functions such as large-scale training at ten-thousand level processor capacity, long-term stable training, heterogeneous mixed training and cross-domain scheduling. It is an industry-leading platform in terms of scale and technology. We have honed high-quality core AI capabilities. Backed by over a decade of experience, we benchmarked our standards against top international and domestic ones and overcame challenges with our proprietary technology in developing the Jiutian general large model, making it possible to make independent innovation in core capabilities across the entire data pipeline, including data construction, pre-training, fine-tuning and inference. The large model supports all modalities such as language, vision, speech, structured data and multi-modal, with versions available in various sizes. It was selected as one of the Top Ten National Pillar brands amongst Central State-owned Enterprises in 2024. In addition, we have deployed 40 AI industry large models in sectors such as energy, transportation, healthcare and education, assisting various industries in intelligent transformation, digital transformation and network integration. We aggregated a high-quality AI industry ecosystem, actively building the Jiutian ecosystem aggregation platform, opening large model training bases, evaluation bases and industry innovation bases, and, at the same time, introducing multiple high-quality domestic and international large models, datasets and intelligent agents. We established an AI joint laboratory with international partners. The China Mobile Cloud is advancing through a strategic transformation and upgrade, with a shift from cloud infrastructure to smart capabilities, and with basic cloud products undergoing comprehensive AI iterations. We constructed a new large model service platform, with upgraded base architecture, core capabilities, platform and services. We have built an AI+ large model data supply system, integrated into the national data annotation system, supporting the construction of national data annotation bases in Baoding and Changsha. We are developing high-quality AI talent, with the AI core team reaching around 2,000 members. The Jiutian AI team was selected as a 2024 Central State-owned Enterprise Model.

Innovative “AI+” applications proliferated. The Company has launched 24 AI+ products and 39 AI+DICT applications, accelerating the comprehensive upgrade to intelligent services. In the corporate market, we stepped up our efforts to promote “AI+DICT” services, introducing industry applications such as AI invigilation and AI quality inspection, and developing intelligent products including AI office assistants and AI video surveillance. We actively drove the monetization of AI capabilities, establishing more than 100 AI+DICT showcases covering central and provincial state-owned enterprises, higher education institutions, and leading enterprises across industries, and securing more than 500 projects. We have co-developed the Kunlun large model, achieving breakthroughs in the commercial application of AI+DICT integrated solutions. In the mass market, we are building an AI product family, upgrading strategic products such as video ringtones, 5G New Calling, China Mobile Cloud drive, mobile HD, and cloud computer, at the same time as creating innovative AI features. We focused on areas such as AI+ new communications, new office, new content, new smart home, new visual Internet and new hardware, cultivating diverse intelligent applications. We launched our AI agent, China Mobile AI intelligent assistant Lingxi, providing customers with comprehensive intelligent services covering office, study, life and entertainment. As of the end of December 2024, the total number of customers using our AI-powered products reached 190 million. Meanwhile, we greatly promoted the deep integration of AI into all areas of operations and management, with customer service, network, sales and marketing, auditing and office large models achieving production-level scale applications. Innovations in digital intelligent operations have seen breakthroughs in the share of “AI+ services”, “AI+ sales and marketing” and “AI+ office” have significantly improved the work efficiency. The smart autonomous network has already reached an advanced level (L4) of smart autonomy in some scenarios, effectively utilizing AI capabilities such as enhancing energy-saving efficiency, accelerating service activation efficiency and enabling automatic network configuration.

The Company continued to drive reforms and enhance management, significantly strengthening internal motivation and fostering a more prosperous cooperative ecosystem.

Furthered enterprise reforms. Mechanism reforms progressed in greater depth, with the development of an implementation outline for furthering reforms across the board and the orderly launch of multiple key reform measures. We set up boards of directors in subsidiaries where conditions allowed, making the institutional systems even more robust. We have advanced the all-round transformation of the workforce in terms of structure, capability and composition with a forward-looking approach while improving the market-oriented employment mechanism. We precisely and efficiently allocated incentive resources to significantly increase the range and intensity of incentives. Management was enhanced using scientific approaches to optimize the collaborative mechanism by ensuring the headquarters, regional companies and specialized teams each performed their respective roles in overall strategy-setting and management, driving market development and enhancing competency. The headquarters’ role in strategy-setting and management was further established. The sales and marketing organizational system for the general market and the corporate market was strengthened. We also implemented special initiatives to improve quality and efficiency while enhancing the level of precise and quality management. Ground-level reforms were effectively implemented with remarkable progress seen in “Scientific Reform Action” and “Double Hundred Action”. Three of our subsidiaries were rated as “Benchmark” enterprises and five others rated “Outstanding” enterprises. We continued to drive transformation adopting a specialized, refined, differentiated and innovative approach. One of our teams was selected as a national Little Giant enterprise and two others were selected as high potential “Sailing Enterprise” by the State-owned Assets Supervision and Administration Commission (SASAC).

Open cooperation expanded. In terms of strengthening strategic cooperation, the Company continued to do so by actively establishing and forming closer strategic partnerships with various levels of government, enterprises and universities, promoting cross-sector synergies in information services and contributing to the development of new quality productive forces. In terms of enhancing capital cooperation, we have been vigorously planning our investment in strategic emerging industries and future industries such as AI, integrated space-air-ground networks, domestic software and advanced manufacturing, consistently increasing the synergy between industry and investment. In terms of innovation cooperation, we have enhanced joint innovation, building 5G and computility network innovation consortia, and expanding cooperation with a cumulative total of 40 central state-owned enterprises. We reinforced new joint R&D efforts by furthering the “Joint Innovation+” plan and deepening the integration of industry, academia, research and application. We strengthened regional and overseas innovation deployments by building a collaborative R&D management platform to promote the export of capabilities. In terms of ecosystem cooperation, we leveraged the role of chain leaders to drive integration, gathering over 1,400 upstream enterprises, and coordinating the implementation of the “Chain Integration Special Project 2.0” for 14 sub-chains to continuously enhance industrial leadership and resilience, and create high-quality industrial clusters. We also strengthened and expanded the GTI international cooperation platform, bringing together more than 400 international operators and industry partners.

As a responsible corporate citizen, the Company places great emphasis on sustainable development, consistently adhering to the principle of “Sincerity and Fulfillment, Self-Realization and Empowerment”. Based on our own growth, we drive and empower comprehensive development in the economy, society and environment.

Furthered green development. Building on the “C² Three Energy – China Mobile Carbon Peak and Carbon Neutrality Action Plan”¹⁵, we formulated the “C² Three Energy Plan 2.0”, by upgrading our vision, goals, actions, organization and capabilities. We have incorporated green concepts into the entire production and operations process, promoting deep and substantive green, low-carbon and sustainable development with remarkable results. In 2024, the total energy consumption per unit of telecommunications business decreased by 9.7% year-on-year, and the carbon emissions per unit of telecommunications business decreased by 14.9% year-on-year. We have fully leveraged the role of information technology in carbon reduction, contributing to a carbon reduction of approximately 350 million tons for the entire society.

Practically and effectively understood social responsibility. We strove to leverage our expertise as an organization to support the high-quality development of the entire society and meet people’s needs for a better life through digital and intelligent innovation. We led the way in offering new information services and empowering a better, smarter future, fully demonstrating the power of “wireless” and “mobility” in the digital and intelligent era. We ensured a robust support mechanism as we launched our regional development strategies in order to provide efficient services to enable the digital and intelligent transformation of regional economies and societies, and our efforts have yielded positive results. By promoting innovative development of supply chain finance, we provided tangible assistance to medium, small and micro enterprises in overcoming difficulties. We successfully accomplished communications missions for major events, and went all out to safeguard communications during flood prevention, and earthquake and disaster relief missions. We actively prevented and combated illegal and criminal activities on communications networks and strove to contribute to a clean and safe cyberspace. We promoted the “Digital Intelligence Rural Revitalization Plan” and built more than 410,000 digital villages that meet the standards. Our charity projects, including the China Mobile Heart Caring Campaign and the Blue Dream – China Mobile Education Aid Plan, have received widespread social acclaim.

Corporate governance achieved remarkable results. We adhered to the principles of integrity, transparency, openness and efficiency, strictly complying with regulatory requirements for listed companies, ensuring the protection of shareholders’ legal rights, and further strengthening the construction of the board of directors. We maintained active communication with the capital market, proactively strengthening investor relations, and maintaining high standards of corporate governance. We persistently strengthened our legal compliance in business operations, building a more robust compliance management, internal control, risk prevention and control system. This allowed us to enhance our ability to lawfully manage our operations and compliance system, providing strong support for the Company’s reform and development. We strengthened audit supervision, focusing on key areas, improving risk warning capabilities and risk control effectiveness, and ensuring the Company’s sustainable and healthy development.

The Company received the highest Five-Star Excellence rating in the “2024 China ESG Listed Companies Pioneer 100” list and the highest rating in the Wind ESG industry rating. We also topped the list of “China ESG Listed Companies Technology Innovation Pioneer 30”. In addition, China Mobile’s Building the New Wutong·Honghu Digital Talent Nurturing Ecosystem case study, contributing to the country’s digital talent development, was selected as an Outstanding China ESG Practice Case Study in 2024. Moreover, Institutional Investor magazine awarded the Company the title of Most Honored Company while Bloomberg Businessweek/Chinese Edition magazine awarded the Company the honors of Listed Company of the Year and Most Valuable Investment Listed Enterprise. We also won the Finance Asia Best Telecommunications Service Company Gold Award and was included on the highest-level honor lists by the China Association for Public Companies, including Best Practice for Annual Results Presentation, Best Practice for Listed Company Board of Directors, and Best Practice for Listed Company Directors’ Office.

Currently, we are experiencing a new wave of technological revolution and industrial transformation characterized by digital intelligence. Data, computility and AI have become the key drivers of new quality productive forces. With the combined effect of high-quality data, high-performance computility and highly sophisticated algorithms, AI is accelerating its breakthrough in applications, empowering thousands of industries and households. This will significantly promote integrated innovation, industrial systems, enterprise operations and information consumption, leading the economy and society to evolve from “Internet+” and “5G+” to “AI+”, and to stride into the AI+ new era.

Despite the pressures and challenges, the Company is presented with ample opportunities to realize its potential. We are at a critical stage with strategic opportunities, business transformation and intensive reforms all interwoven. On the one hand, the external environment has become more difficult and complex. Despite being on the path to recovery, the macro economy remains fragile. This is coupled with weak effective demand and consumption, causing difficulty in production and operations for some businesses. Traditional communications demand is becoming saturated, homogenous competition within the industry is intensifying, and cross-disciplinary competition is becoming more complex. On the other hand, we see valuable opportunities as our business transforms. First, the positive long-term macroeconomic trajectory has not changed, with the vast market scale, well equipped industry system, abundant labour and talent, and other favourable conditions. Second, economic and social development has opened up new spaces for information services. Strategic emerging industries and future industries are accelerating development while traditional sectors are speeding up their transformation and quality upgrade. The demand for a value-for-money, high-tech, high-emotional value and beautiful digital life is growing. The development of smart cities is on the fast track. Third, the evolution of information technology has brought about new growth opportunities for information services. AI-powered smart devices, intelligent connected vehicles and smart robots are fast becoming the “new trio” of information consumption across personal, vehicle and home scenarios. AI+DICT will become the new form of information services, driving the rapidly-rising popularity of new productivity platforms such as Model-as-a-Service.

Facing all of these opportunities and challenges, we will fully, accurately and comprehensively implement the new development paradigm, strengthen confidence, maintain a clear focus, uphold integrity and forge innovation. We will seek progress while maintaining stability by closely adhering to the “1-2-2-5” strategic implementation plan and put the “Three Major Programs” into full practice. In addition, we will further reform and drive innovation, transformation and the cultivation of new growth drivers. We will continue to refine operations and implement precise management. Adhering to a customer-centric philosophy, existing customer and value operations based on market segmentation will become our strategic and long-term mission. We will strengthen the “Two New Elements” and expand the scale effect of “AI+” while vigorously promoting the deep integration of technological and industry innovations, and striving for breakthroughs in the “BASIC6” sci-tech innovation initiative. We will implement supply-side reforms to support high-quality development, alongside other reforms in innovation, systems, and mechanisms. We will advance all these measures in a practical and effective manner, weaving precision, refinement, and efficiency across the full process of operations and management, and empowering management and performance improvement with digital intelligence. We will reinforce the new paradigm of high-quality development and be committed to becoming a world-class information services and sci-tech innovation enterprise, and creating greater value for our shareholders and customers.

Mr. Li Pizheng resigned as an executive director of the company in January 2025. Mr. Gao Tongqing and Mr. Sun Yingxin also ceased to serve as vice presidents in December 2024 and February 2025 respectively. During their tenure, Mr. Li, Mr. Gao, and Mr. Sun diligently fulfilled their duties, made significant contributions and demonstrated commendable dedication. On behalf of the Board of Directors, I would like to express our high appreciation and heartfelt gratitude for their outstanding contributions to the Company.

Finally, I would like to take this opportunity to extend my sincere thanks, on behalf of the Board, to all shareholders, customers and the public for their continued support and assistance, and to all employees for their hard work and dedication.