We focused on the holistic management of existing and new customers by strengthening integrated operation and enhancing customer loyalty to efficiently meet the diverse needs of customers to live a better digital life. On one hand, we strengthened existing customer operations and implemented a focused strategy to maintain customer value. We converged mid-to-high-end customers with GoTone operations to enhance their sense of gain. We enriched our offerings related to terminals, benefit products and applications, amongst others, and designed innovative scenario-based packages. We focused on the five factors to drive traffic growth: tariffs, terminals, products, ecosystems and networks. On the other hand, we undertook various measures to increase the scale of our customer base in order to speed up our growth and enhance customer value. By focusing on key customer segments such as business travellers, young generation, senior citizens and campuses, we were able to deliver differentiated product offerings to match their needs. We also created unique product benefits and launched benefit membership targeting emerging vertical markets, improving our competitive advantages. With a focus on ubiquitous connectivity, we vigorously drove the application of cloud handsets and terminal AI intelligent agents. As of the end of December 2024, the Company’s 5G network customers reached 552 million, with its share of the overall customer base increased to an industry-leading rate of 55.0%. There was a net increase of 88 million customers in 2024, with an average monthly net increase of 7.30 million customers. 5G network customer ARPU and DOU reached RMB76.0 and 20.9GB respectively. Customer upgrade to 5G not only brought about value enhancements but also laid the foundation for future AI+ product expansion.

We focused on the smart home business to build a smart home service ecosystem around “one line + one network + one home”. Under the new China Mobile Aijia (AI Home) brand, we brought users a smarter, warmer and safer family life experience. We continued the AI+ upgrades, launching a smart network house-keeper, accelerating the large-screen application of our AI intelligent assistant Lingxi, and promoting the full AI-driven transition of home security intelligent services. We continued to enrich FTTR functions, promoting integrated solutions of “Gigabit + FTTR + Scenario-based services”. We also actively expanded our home information services such as cloud computing, smart elderly care and smart home tutoring. The “Home” market achieved favourable growth, and obtained stable and healthy improvement in customer value. As of the end of December 2024, the number of household broadband customers reached 278 million, with a monthly average net increase of 1.17 million customers. The penetration rate of Mobile HD customers reached 75.2%. Smart home businesses in key scenarios such as networking, large screens and security maintained favourable growth, while accelerated expansion was seen in new HDICT (home data, information and communications technology) scenarios such as digital villages and smart communities. Household broadband revenue increased by 10.1%, smart home revenue increased by 4.4%, and household customer blended ARPU maintained stable and healthy growth.

We maintained our dual focus on business development and capability enhancement, particularly in industry verticals. We pursued operations in segmented scenarios in order to foster our competitive advantages in the “new quality” sectors. We further strengthened our market leadership by continuing to reinforce our capabilities in front-line sales, product solutions, and integrated service delivery in terms of both quantity and quality. We fully leveraged the combined advantages brought by China Mobile Cloud, converging computility, storage, network and applications to provide users with one-stop solutions. In view of the driving role AI has in the cloud, we worked to transform the China Mobile Cloud into an industry leader particularly in terms of intelligence, convenience and efficiency. In terms of 5G, we invested more effort in driving the technology’s role in empowering economic and social development and promoting 5G industry applications from selective adoption to scaled replication across multiple segments. Our “three-pronged” approach to converting our traditional services into standardized, product-driven, and platform-based solutions has picked up speed, showing improvement in both quality and efficiency. We explored the development potential of commercial customers by enriching our offering of terminal, network, cloud and data products while sparing no effort in overcoming the challenges in high-value key scenarios such as buildings and industrial parks. This has yielded initial success in the corporate market segment. We actively formulated plans for the development of AI, low-altitude economy, Visual Internet, and security capabilities to create momentum for future growth. In 2024, our 5G vertical industry applications covered 80 of the 97 major categories of the national economy. Industry cloud revenue reached RMB83.8 billion, an increase of 18.3% year-on-year.

In terms of international business, we supported the formation of high-quality partnerships surrounding the Belt and Road Initiative, continued to optimize the build-out of the overseas information infrastructure, and improved the end-to-end service quality of international business. We continued to expand our “circle of friends” and grow the scale of our international business, with full-year international business revenue reaching RMB22.8 billion, an increase of 10.2% year-on-year. In terms of digital content, we focused on four product categories – video, music and color media¹, the metaverse, and games and reading. We converged the operation of content, platform, users, and commerce to break new ground. Full-year digital content revenue increased by 8.2% year-on-year while the number of monthly active cloud game users across all platforms reached 154 million, and the scale of video ringtone subscribers reached 427 million. In terms of FinTech, we launched the first financial risk management industry large model and provided services to multiple industry leading enterprises. The number of enterprises served by the financial industrial chain reached 3,170, an increase of 179% year-on-year. In terms of equity investment, guided by the strategy of building a world-class “Powerhouse”, we continued to strengthen industrial investment by improving the fund investment platform and accelerating the expansion of the industrial innovation ecosystem. By doing so, we further demonstrated our role in creating value, fostering the ecosystem, and unleashing synergy between industries and investments.

We have always adhered to forward-looking planning and precise investment. We focused on connectivity, computility, and capability to cement our leadership in network scale, technology, quality and security. At the same time, we continued to implement precise and quality management, further optimize our investment structure, improve resource efficiency to secure investment returns, and promote green and low-carbon development.

The quality of our infrastructure continued to improve. As of the end of December 2024, the number of our base stations had exceeded 6.86 million, making our network the largest in the world. The total length of our optical network reached 35.86 million cable kilometers while our dedicated business network and backbone transmission network boasted bandwidth of 139 Tbps and 1,042 Tbps respectively. The bandwidth of CMNET, cloud dedicated network and IP dedicated network exceeded 633 Tbps.

We continued to optimize our international information infrastructure. As of the end of December 2024, we had over 90 submarine and land cable resources that enabled global coverage, and a total international transmission bandwidth of 164 Tbps. Our 330 POP covered all major countries and regions around the world. Our international roaming and 5G NSA services covered 268 and 87 locations respectively. Worldwide users covered by our Hand-in-Hand global partnership program exceeded 3.0 billion.

Total capital expenditure for the Company in 2024 totaled approximately RMB164.0 billion. We expect total capital expenditure for 2025 to be approximately RMB151.2 billion, primarily for areas such as optimizing connectivity infrastructure, upgrading computility infrastructure, building out long-term infrastructure, supporting CHBN sci-tech innovation, and enhancing customer satisfaction. The funds required will mainly come from operating cash flow.

We furthered marketing transformation to deliver more efficient sales service. In the mass market, we implemented three key measures: first, we upgraded the channel system based on the “store + network + people” channel architecture, promoting transformation in five areas – channel system, planning, orientation, model, and support. Second, we enhanced our online capabilities, focusing on turning the China Mobile APP into the main platform for the operations and interactions of existing customers. We included business outlet, customer manager and smart home engineer functions on the APP to establish user connections. We also created the AI intelligent assistant Lingxi to optimize customer experience. Through these initiatives, we rapidly boosted the activity level on the APP. Third, we expanded the pan-terminal omni-channel alliance through building an ecosystem of terminals, linking up the channels and encouraging customers to join our membership programs. Further upgrade of the alliance took place in the year, making it the largest direct supply platform for pan-terminals in the country. In the corporate market, we focused on the construction of a customer-centric sales system, categorically sorting out the strategic customer list and the commercial customer list. We set up key roles to optimize the organizational structure for serving commercial customers and continuously strengthened our sales and marketing team. Our headquarters-to-headquarters strategy has gained traction. Coupled with pilot exclusive services for strategic customers, our front-end sales capabilities continued to improve.

We are committed to building a high-quality and highly recognized prestigious brand. Guided by this strategic direction, we further built out and operated the “1+4+4” strategic brand system, winning customer word-of-mouth through a smoother network, more user-friendly products, more regulated sales practices, more convenient customer touchpoints, more streamlined processes, and a hassle-free experience. We innovated our brand operations by consolidating the customer value of GoTone, M-zone, Easy Own and China Mobile Aijia and other consumer brands, aggregating the technological value of product brands such as MIGU, China Mobile Cloud, Wutong Big Data and Jiutian, and enhancing the industry-leading brand value of China Mobile. We refreshed the China Mobile Aijia brand and built an AI-powered smart home service ecosystem, opening a new chapter for the brand with a sense of intelligence, warmth and security.

We steadfastly advanced the implementation of a service management system encompassing every aspect and process of service and involving every member of staff, resulting in continued improvement of our overall service quality. First, the service management mechanism became more robust. The three-level Customer Experience Management Committee involving headquarters, provincial or professional companies, and prefectural companies was established, alongside a mechanism of hosting service quality analysis meetings. By doing so, we improved the efficiency of addressing customer pain points. Second, customers’ perception of service was significantly improved. Service data gathered from various touchpoints was integrated. More than 150 million video customer service calls were conducted monthly while the touchpoint quality satisfaction rate increased year-on-year. The product quality standard system based on customer perception covered all four CHBN markets. We formulated and released the first service standard for the Video Internet industry. The satisfaction rate of key products remained at a high level. Third, our digital and intelligent service capabilities remained industry-leading. Customer service large models were applied on scale, and 31 provincial companies fully launched the augmented online customer service. The Dayin platform won the Best Practice in Digital Transformation of Listed Companies in 2024 award. Fourth, the reputation of “Heartwarming Service” improved continuously. We stepped up efforts to protect customer rights, and customer complaints were significantly reduced.

In 2025, We will relentlessly shoulder the responsibility of being the main force in building a strong “Technology Power” and “Cyberpower”, and Digital China. We will fully demonstrate the power of “mobility” in the digital and intelligent era, stimulate the surging momentum of reforms and innovation, and take solid steps towards becoming a leading innovator in digital technology and information services. To this end, we will devote all our efforts to the following four areas:

First, we will pursue high-quality development and achieve new breakthroughs in corporate strength, quality and scale. We will consolidate our leading advantages of new information infrastructure, improve the level of refined operation, expand the revenue contribution of key markets, improve the level of global operation, accelerate the release of the AI+ scale impact, cultivate the growth momentum of emerging fields, and build a healthy development ecosystem.

Second, we will drive innovation and scale new heights in building the Company’s sci-tech strength. We will vigorously promote the deep integration of technological and industrial innovation, making further breakthroughs in BASIC6. We will drive industrial innovation with technological innovation, and accelerate the cultivation and development of new quality productive forces.

Third, we will further the reforms and take new steps to stimulate momentum, vitality and potential. We will fully adopt the Company’s implementation outline for furthering reforms across-the-board, extending various reforms swiftly and steadily to implement, solidify and achieve results. We will make concerted effort to drive reforms comprehensively, pragmatically and systematically.

Fourth, we will practise precise and quality management in order to make progress in improving operational efficiency and effectiveness. We will weave precision, refinement and quality together throughout the entire process of operations and management, promote the deep integration of AI across the board, and empower management and performance improvement with digitalization and intelligence.