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1、Integrated Innovation of Information and EnergyChina Mobile LimitedStock Codes:941(HKD Counter)and 80941(RMB Counter)Interim Report 202302Company Profile03Financial Highlights04Chairman s Statement14Interim Financial Information14Unaudited Condensed Consolidated Statement of Comprehensive Income16Un
2、audited Condensed Consolidated Balance Sheet18Unaudited Condensed Consolidated Statement of Changes in Equity20Unaudited Condensed Consolidated Statement of Cash Flows23Notes to Unaudited Condensed Consolidated Interim Financial Information42Report on Review of Interim Financial Information44Discuss
3、ion of Selected Items in the Interim Results46Other InformationContentsCompany ProfileChina Mobile Limited(the“Company”,and together with its subsidiaries,the“Group”)was incorporated in Hong Kong on 3 September 1997.The Company was listed on the New York Stock Exchange(“NYSE”)and The Stock Exchange
4、of Hong Kong Limited(the“Hong Kong Stock Exchange”)on 22 October 1997 and 23 October 1997,respectively.The shares of the Company were admitted as a constituent stock of the Hang Seng Index in Hong Kong on 27 January 1998.On 7 May 2021,the NYSE filed a Form 25 with the US Securities and Exchange Comm
5、ission and the delisting of the American Depositary Shares of the Company became effective on 18 May 2021.On 5 January 2022,the Company s RMB ordinary shares(“RMB Shares”or“A Shares”)were listed on the Shanghai Stock Exchange(“SSE”).On 19 June 2023,a RMB counter was added for the trading of shares i
6、n the Company listed on the Main Board of the Hong Kong Stock Exchange(the“Hong Kong Shares”).As the leading ICT services provider in the mainland of China,the Group provides communications and information services in all 31 provinces,autonomous regions and directly-administered municipalities throu
7、ghout the mainland of China and in Hong Kong SAR,and boasts a world-class telecommunications and information operator with the world s largest network and customer base,a leading position in profitability,brand value and market value ranking.Its businesses primarily consist of voice,data,broadband,d
8、edicated lines,IDC,cloud computing,IoT and other services in the Customer,Home,Business and New(“CHBN”)markets.As of 30 June 2023,the Group s total number of employees approached 450,000,and had a total of 985 million mobile customers and 286 million wireline broadband customers.For the first half o
9、f 2023,the Group s operating revenue was RMB530.7 billion.The Companys ultimate controlling shareholder is China Mobile Communications Group Co.,Ltd.(“CMCC”),which,as of 30 June 2023,directly and indirectly held approximately 69.79%of the total number of issued shares of the Company.The remaining ap
10、proximately 30.21%was held by public investors.Currently,the Company s corporate credit ratings are equivalent to Chinas sovereign credit ratings,namely,A+/Outlook Stable from Standard&Poor s and A1/Outlook Stable from Moody s.China Mobile Communications Group Co.,Ltd.China Mobile Principal Organiza
11、tional Structure as at 30 June 2023China Mobile(Hong Kong)Group Limited26.11%4.22%*69.67%China Mobile Hong Kong(BVI)LimitedChina Mobile LimitedHolders of RMB SharesOther holders of Hong Kong SharesOperating subsidiaries in 31 provinces,autonomous regions and directly-administered municipalities in t
12、he mainland of China and Hong KongOther specialized subsidiaries#China Mobile Communication Co.,Ltd.Aspire Holdings Ltd.China Mobile International Limited*Includes 0.12%of the shares of the Company that were directly held by CMCC#Other specialized subsidiaries include:China Mobile Group Design Insti
13、tute Co.,Ltd.China Mobile IoT Company Limited China Mobile Group Device Co.,Ltd.China Mobile Information Technology Company Limited China Mobile Online Services Co.,Ltd.MIGU Co.,Ltd.China Mobile(Suzhou)Software Technology Co.,Ltd.China Mobile(Hangzhou)Information Technology Company Limited China Mob
14、ile Internet Company Limited China Mobile TieTong Company Limited China Mobile Investment Holdings Co.,Ltd.China Mobile System Integration Co.,Ltd.China Mobile Financial Technology Co.,Ltd.China Mobile(Chengdu)ICT Co.,Ltd.China Mobile(Shanghai)ICT Co.,Ltd.China Mobile e-Commerce Co.,Ltd.China Mobile
15、 Xiong an ICT Co.,Ltd.China Mobile Information System Integration Co.,Ltd.China Mobile Group Finance Co.,Ltd.02China Mobile Limited Financial HighlightsOperating Revenue(RMB million)Revenue from Telecommunications Services(RMB million)EBITDA(RMB million)Basic Earnings Per Share(RMB)1H2023/530,7191H2
16、022/496,9341H2023/183,4571H2022/173,9121H2023/452,2381H2022/426,4171H2023/3.561H2022/3.29Six months ended 30 June20232022 Operating revenue(RMB million)530,719496,934Of which:Revenue from telecommunications services(RMB million)452,238426,417EBITDA1(RMB million)183,457173,912EBITDA margin234.6%35.0%
17、Profit attributable to equity shareholders(RMB million)76,17370,275Margin of profit attributable to equity shareholders314.4%14.1%Basic earnings per share(RMB)3.563.29Dividend per share Interim(HK$)2.432.201 EBITDA=profit from operations+depreciation and amortization2 EBITDA margin=EBITDA/operating
18、revenue3 Margin of profit attributable to equity shareholders=profit attributable to equity shareholders/operating revenueInterim Report 202303Chairmans StatementDear Shareholders,In the first half of 2023,despite various difficulties and challenges brought about by insufficient macro demand and com
19、plex external environment,we worked closely together as a solid team to seize the valuable opportunities emerging from the flourishing digital economy,deepening the implementation of the world-class“Powerhouse”development strategy.We systematically built our new information infrastructure centering
20、around 5G,computing force network(CFN)and capability middle platform,and innovatively created a new information services system equipped with connectivity,computing force and capability.These efforts,coupled with our deeper and more extensive reforms and innovation,enabled us to achieve fresh accomp
21、lishments across all aspects of our operations.We recorded favorable business results and made steady enhancements to quality of growth,laying a solid foundation for achieving our full-year targets.These results were truly hard-earned.2023 INTERIM RESULTSIn the first half of 2023,our operating reven
22、ue was RMB530.7 billion,or growth of 6.8%year-on-year.Of this,our telecommunications services revenue accounted for RMB452.2 billion,an increase of 6.1%year-on-year.Total connections1 reached 3.19 billion,with a net addition of 250 million.CHBN2 markets saw all-round growth,with HBN revenue accounti
23、ng for 42.7%of telecommunications services revenue,an increase of 2.7 percentage points year-on-year.Our digital transformation revenue3 increased by 19.6%year-on-year and reached RMB132.6 billion,taking up 29.3%of telecommunications services revenue.We are steadily advancing our transition from tra
24、ditional to new growth drivers,with a continuously rising share of revenue contribution from digital transformation.This has underscored the value contribution of digital transformation as our“second curve”of revenue growth.Profit attributable to equity shareholders was RMB76.2 billion,an increase o
25、f 8.4%year-on-year,and earnings per share were RMB3.56.We maintained industry-leading profitability among top-tier global telecommunications operators.EBITDA was RMB183.5 billion,an increase of 5.5%year-on-year.EBITDA as a percentage of telecommunications services revenue was 40.6%.Capital expenditu
26、re totaled RMB81.4 billion.Free cash flow amounted to RMB79.1 billion,an increase of 43.3%year-on-year.We maintained a leading position in terms of effectiveness and efficiency,and continued to achieve favorable momentum.To create higher returns for our shareholders and share the results of our grow
27、th,after giving full consideration to the Company s profitability,cash flow generation and future development needs,the Company has decided to pay HK$2.43 per share4 for the 2023 interim dividend,representing an increase of 10.5%year-on-year.Full-year profit to be distributed in cash in 2023 will in
28、crease to 70%or above of the profit attributable to equity shareholders of the Company5 for the year.The Company will strive to create more value for shareholders.1 Total connections include mobile phones,wireline broadband,IoT cards,household devices and industry device connections2 CHBN refers to
29、the“Customer”market(C),the“Home”market(H),the“Business”market(B),and the“New”market(N)3 Digital transformation revenue includes the revenues from new businesses from the“Customer”market(Mobile Cloud Drive and others);the revenues from smart home value-added businesses from the“Home”market;the revenu
30、es from DICT,IoT and dedicated lines businesses from the“Business”market;and the revenue from the“New”market(excluding revenue from international basic business)4 Dividends for A shares will be paid in RMB in the amount of RMB2.2247 per share,applying an exchange rate of HK$1 to RMB0.915500,which is
31、 equal to the average of the mid-prices of HK$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 dividend5 The basis of profit distribution of the Company is the profit attributable to equity shareholders under IFRS04China Mob
32、ile Limited Chairman s StatementInterim Report 202305Chairman s StatementREMARKABLE RESULTS IN VALUE-ORIENTED OPERATIONSWe adhered to scale-based and value-oriented operations and continued to drive the comprehensive and integrated development of our CHBN markets in a well-coordinated manner,breakin
33、g into new areas and opened new markets.All four markets expanded both in scale and value.We consolidated our leading position in the industry and customer satisfaction continued to increase.“Customer”Market:Solid Foundation with Stable-to-rising GrowthWe strengthened the integration of data access,
34、applications and customer benefits,and extended our promotion for universal 5G adoption and the China Mobile digital superstore.As a result,our“Customer”market experienced stable-to-rising growth,with revenue reaching RMB259.4 billion in the first half of 2023,an increase of 1.3%year-on-year.Mobile
35、customers totaled 985 million,with a net addition of 10.38 million customers.In our mobile customer base,722 million were 5G package customers,with a net addition of 108 million.The number of customers using our integrated-benefit products6 reached 326 million,a net addition of 38.85 million custome
36、rs.The number of monthly active users of Mobile Cloud Drive,our cloud product,recorded a net addition of 9.76 million customers,bringing the total to 176 million,the second largest in the industry in terms of customer base.The number of customers using our 5G new voice over high-definition video rea
37、ched 101 million,a net addition of 9.24 million customers.Our range of emerging 5G personal digital products,including cloud XR(augmented reality),cloud games and 5G ultra high-definition video connecting tones,all saw rapid growth.With increased customer value and loyalty,mobile ARPU(average revenu
38、e per user per month)reached an industry-leading figure of RMB52.4.“Home”Market:Value Discovery Driving Favorable GrowthWe captured the value potential of full-gigabit network and cloud-based applications by deepening our leadership in four areas gigabit broadband,content-driven TV,platform-based Io
39、T,and ecosystem-enabled HDICT(home data,information and communications technology).As a result,our“Home”market generated favorable growth,with revenue for the first half of 2023 reaching RMB64.9 billion,an increase of 9.3%year-on-year.The number of household broadband customers reached 255 million,o
40、r a net increase of 11.15 million,and led the industry.The number of household gigabit broadband customers reached 60.36 million,accounting for 23.7%of the overall household broadband customer base and showing ample room for development from bandwidth upgrade.Our mobile HD customer base reached 201
41、million.The number of smart home network and home security customers increased by 50.1%and 40.6%respectively year-on-year.HDICT solutions applied in new scenarios such as smart community and digital village have attracted 20.88 million users.Contribution from smart home applications continued to inc
42、rease,and household customer blended ARPU reached RMB43.3.6 This refers to the number of normal on-net customers who have subscribed to our benefit products,including benefit-only integrated products,telecommunications+benefit integrated products,and paid members of our benefit superstore.Duplicate
43、customers within the benefit business are removed06China Mobile Limited Chairman s Statement“Business”Market:Strengthened Capabilities with Leading Growth RateWe focused our efforts on the integrated development of network,cloud and DICT(data,information and communications technology),by fully lever
44、aging our advantage in cloud and network resources.We focused on Mobile Cloud and 5G industry applications and obtained breakthroughs in scale,and our“Business”market continued to achieve rapid growth.In the first half of 2023,our“Business”market revenue reached RMB104.4 billion,an increase of 14.6%
45、year-on-year.Our corporate customer base reached 24.30 million,with a net increase of 1.10 million customers.Our Mobile Cloud revenue reached RMB42.2 billion,an increase of 80.5%year-on-year.Within Mobile Cloud,the revenue market share of IaaS ranked top 3 in China,with revenue growth of our proprie
46、tary IaaS+PaaS exceeding 100%.Cumulatively,we have signed agreements for more than 25,000 5G commercial projects across multiple sectors,driving the value of DICT contracts to RMB20.9 billion in the first half of 2023,or growth of 28%year-on-year.The revenue from our 5G dedicated network reached RMB
47、2.51 billion,an increase of 69.7%year-on-year.We achieved industry leadership in segments including smart mining,smart factories,smart power,smart hospitals,smart city and autonomous driving.We obtained breakthroughs in the new markets of Internet of Vehicles(IoV)and digital government.In the To V m
48、arket,we forged partnerships with 9 of the top 10 new energy brands in China,ranked by sales volume;in the To G market,we empowered public administration,social governance and services related to people s livelihoods,securing more than 1,000 projects with contract values exceeding RMB3 million each,
49、showing a growing brand recognition in this space.“New”Market:Increased Contribution with Rapid GrowthThe“New”market maintained rapid growth following our efforts to focus on increasing the value contribution from international business,equity investment,digital content and FinTech.Revenue of the“Ne
50、w”market reached RMB23.5 billion in the first half of 2023,an increase of 18.4%year-on-year.In terms of international business,we deepened the synergies between international and domestic markets.We increased the export of high-quality products capabilities and 5G solutions to overseas markets while
51、 upgrading our digital infrastructure overseas and further strengthening our international ties.In the first half of 2023,our international business revenue reached RMB10.1 billion,an increase of 25.9%year-on-year.In terms of equity investment,we applied capital to attract and empower the formation
52、and strengthening of industry chains,innovation chains,supply chains,ecological chains and value chains,actively expanding the family and ecosystem of the modern mobile information industry.In terms of digital content,we drew on the China Mobile Metaverse Industry Alliance to assist in our effort to
53、 drive the integrated innovation of the digital economy and metaverse,at the same time as enhancing our core products such as MIGU video and cloud games.Digital content revenue reached RMB13.0 billion in the first half of 2023,or growth of 12.5%year-on-year.The number of monthly active users for our
54、 cloud games across all platforms boasted a top-of-the-industry scale reaching 120 million.In terms of FinTech,we relentlessly promoted the rapid development of financial services throughout the industry chain,servicing around 600 partners upstream and downstream of the industry chain.We created an
55、all-in-one digital consumption portal across all platforms,driving growth in“and-Wallet”monthly active customers by 64.8%year-on-year.Interim Report 202307Chairman s StatementWe achieved strong growth in digital transformation through increased efforts in business innovation,integrating connectivity
56、,computing force and capability.In the first half of 2023,our digital transformation revenue contributed 84.1%to our incremental telecommunications services revenue and was the strongest driver of revenue growth.In terms of industry digitalization,DICT revenue increased by 24.9%year-on-year to RMB60
57、.2 billion.In the area of personal and household digitalization,our benefit product revenue increased by 23.0%year-on-year to RMB10.2 billion;our smart home value-added business revenue grew by 21.4%year-on-year to RMB17.3 billion.We are committed to providing exceptional services to our customers t
58、hrough our service system that manages every aspect of services and processes and all employees.As a result,we enjoyed industry-leading overall customer satisfaction.We continued to improve our services across the board,enhancing the quality of customer touch points,products and network.The level of
59、 digitalization and the innovative adoption of AI in customer services has greatly increased service efficiency.We also stepped up our communications effort in promoting service culture,contributing to a widespread recognition for quality.We continued to strengthen brand recognition and brand premiu
60、m,enhancing brand building through the three key areas of strategic branding,brand operations and resource support.China Mobile topped the industry in first-mention,loyalty,reputation and other brand indicators.Our brand value remained one of the best among global telecommunications operators.STRONG
61、 PROMOTION OF THE“TWO NEW ELEMENTS”We adopted a systematic approach to developing 5G,CFN and capability middle platform,which are the key components of the new information infrastructure.In addition,we established a new information services system,integrating connectivity,computing force and capabil
62、ity.These measures reinforced our digital intelligence foundation.Dual Gigabit maintained comprehensive leadership.We spared no effort in developing our leadership in 5G network,including furthering our collaboration with China Broadcasting Network Corporation Limited in the areas of co-construction
63、 and sharing,expanding synergies from multi-frequency network and extending our 5G coverage in an intensive and effective manner.In the first half of 2023,our investments in 5G network totaled RMB42.3 billion.Cumulatively to the end of June 2023,we have put into use 1.761 million 5G base stations7,i
64、ncluding 578,000 700MHz 5G base stations.We provided seamless services to 393 million 5G network customers and played a role in promoting the replication at scale of 5G industry applications in various business segments.By anticipating the evolution of 5G development,we continued to lead the setting
65、 of 5G R18 standards and completed the first phase of 5G-A trials of eight key new technologies,driving advancements in signature technology and key sectors such as communications and experience integration,space-ground integration,and passive IoT.With a clear focus on customer needs,we built the fu
66、ll-fiber gigabit broadband network and adapted to different scenarios in different regions.Our Optical Line Terminal(OLT)platforms in urban areas boast 100%gigabit capability,and we have extended this capability to villages with 93.2%coverage.As a result,our gigabit coverage has reached 370 million
67、households,with a net addition of 110 million households.7 The statistical method for counting the number of indoor 5G base stations has been adjusted from baseband units to remote radio units08China Mobile Limited Chairman s StatementOngoing leadership in CFN development.We accelerated the structur
68、al reform of the supply side of computing force services,turning CFN from a conceptual prototype into an industry deployment and strengthening the infrastructure of our CFN.As we continued to intensify the hierarchical structure of our“4+N+31+X”8 computing force,our data centers now cover all the hu
69、bs and nodes corresponding to the national“eastern data and western computing”strategy.We increased the number of IDC cabinets available for external use by 11,000 to a total of 478,000,and the number of computing force servers for deployment by more than 91,000 to a total of more than 804,000,repre
70、senting total computing capacity of 9.4 EFLOPS.We have completed the world s longest 400G all-optical network transmission distance of 5,616 kilometers from Zhejiang to Guizhou.This is the most advanced computing highway in China and supports“eastern data and western computing”.The“1-5-20 millisecon
71、ds”three-tiered computing latency range reduced the average response time within our network by 22%.We gradually expanded our computing force services,including development of our proprietary CFN brain and the network-connected computing force platform.Our CFN brain was amongst the first batch to pa
72、ss the autonomous CFN brain intelligence certification by the China Academy of Information and Communications Technology.Subsequently a number of network-connected computing force projects were launched,and we have integrated and managed the computing force of more than 10 enterprises.We have proact
73、ively pursued the“computing force faucets”strategy:for the mass market,we launched the“3+2+1”9 product system for computing force terminals;for the government and enterprise markets,we promoted computing-network integrated products related to“eastern data and western computing”,flexible network serv
74、ices,intelligent computing services,network-connected computing force and more.We have had a number of breakthroughs in CFN technology,leading nearly 100 standards-setting projects at home and abroad.Our original and iconic technology“computing power routing”achieved breakthrough in the Internationa
75、l Organization for Standardization(ISO)Internet Engineering Task Force(IETF).Building on the national CFN trial network,we collaborated with more than 30 partners and nurtured more than 40 notable projects.Continued to expand applications of capability middle platform.We focused on scaling our capab
76、ility middle platform for both internal and external application to realize the value of the capabilities.This effort brought good results.As of the end of June 2023,we had launched 944 capabilities.These capabilities had been deployed 40.2 billion times per month on average,representing an increase
77、 of 192.3%from that of full-year 2022.Through commercialization of the capabilities and cost-savings from deploying them internally,we generated a value of more than RMB10 billion.This has supported us in empowering cloud migration and digital transformation across society,and improved the cost-effe
78、ctiveness of our operations with visible results.We continued to mine the value of big data and emphasized the application of big data throughout enterprise production and operations.In the first half of 2023,we generated big data revenue of RMB2.56 billion,or a year-on-year increase of 56.6%,showin
79、g our growing brand recognition in this area.In addition,we are proactively integrating ourselves into the national big data strategy and have streamlined data element circulation by leveraging our advantages such as data and computing force.8 4(hotspot regions)+N(central nodes)+31(provincial nodes)
80、+X(edge nodes)9 3 types of light terminals(cloud mobile phone,cloud computer,Mobile Cloud HD)+2 types of heavy terminals(store computing force server,family computing force server)+1 unified base(to enable computing force integration,management and deployment to support business operations)Interim R
81、eport 202309Chairman s StatementSignificant increase in information services offering.We have further strengthened our product portfolio and competitiveness,with a coordinated product release series beginning to take shape.In the mass market,our customer base for 7 of our products,including video co
82、nnecting tones,home security services and mobile authentication services,led the industry;16 products,including MIGU Video,cloud games and big-screen video-on demand have each exceeded 100 million customers.In the“Business”market,5 and 12 of our products have generated annual revenue of more than RM
83、B10 billion and more than RMB1 billion respectively.Our Mobile Cloud capability was industry leading across all platforms.We launched COCA10(our proprietary high performance computing architecture)and built Panshi(our big cloud bedrock computing platform enabling a full-stack of autonomous and contr
84、ollable tools).Our key products,such as cloud servers,were at the forefront of the industry in terms of their core performance.Two of our Mobile Cloud products were bestowed the Red Dot Award:Brands&Communication Design.In artificial intelligence(AI),we created the Jiutian AI platform building on ou
85、r strengths as a telecommunications operator,and offering industrial-level intelligent service capabilities ranging from algorithms and platforms to capabilities and large-scale applications.This platform has been deployed in more than 830 applications across 27 fields internally and externally.Unde
86、r this platform we have launched the Jiutian massive computing public administration large model and the Jiutian customer service large model,which help to promote the digitalization and integration of various industries.In terms of terminal products,China Mobile s pan-terminal omni-channel alliance
87、 continued to expand.In the first half of 2023,sales of all terminals including handsets reached 47.13 million units,further reinforcing our influence in the industry.CONTINUOUS REFINEMENT OF INNOVATIVE DEVELOPMENT STRATEGYWe accelerated innovation and extended open collaboration while advancing ent
88、erprise reforms,further future-proofing our innovation capabilities.Strengthened technological innovation.Building on the“Unified Five Rings”11 strategy,we further implemented our innovation strategy by increasing our efforts to encourage innovation and develop talent,actively building a collaborati
89、ve and open ecosystem.Our strong commitment in this area has bolstered our innovative vitality.We have maintained a leading position in the origination of innovative strategies,continuously leading in 5G-A technology and spearheading the largest number of 5G R18 standards projects amongst global tel
90、ecommunications operators.We achieved breakthroughs in key technologies such as centralized orchestration and intelligent deployment of the CFN capabilities.For 6G,we formulated advance plans for 6G R&D,putting forward suggestions on 6G systemic network structure and jointly releasing more than 10 p
91、rototype technology samples.Our influence in this area has become more apparent in the international arena.We also achieved breakthroughs and advancements in critical digital-intelligent technology,attaining significant milestones in areas such as basis chips and Internet of Things(IoT)operating sys
92、tems.We launched engine 2.0 for the Heyun network security base platform,integrating and managing 71 mainstream tools in the industry;we developed our own blockchain security engine to build the trust infrastructure drawing on our advantages as a telecommunications operator.We have further enhanced
93、our DSSN products in preparation to develop this high potential market.Our innovative collaborative efforts have yielded significant results,and acting as a leader in the industry chain we have established partnership with more than 1,300 enterprises under our“10-102-103-104”cooperation program,proa
94、ctively working to break through bottlenecks and promote high-quality development of the industry chain.The 5G innovation consortium has facilitated the integration of innovative of 5G technology across diverse industries.10 Compute on Chip Architecture11 The“Unified Five Rings”refers to the technol
95、ogy and innovation system composed 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
96、partners),and the overseas ring(overseas R&D institutes and international organizations)10China Mobile Limited Chairman s StatementExtended open collaboration.We strengthened strategic partnerships with local governments,public institutions and enterprises.By focusing on implementing digital technol
97、ogy and the digital transformation across industries,we drove cross-disciplinary collaboration in information services to support the further development of the digital economy.We supported ecosystem growth by providing venture capital in various sectors including AI,Industrial Internet,Internet and
98、 information security,and visual IoT.We have strengthened innovation cooperation by enhancing new joint R&D projects,further implementing the“Joint Innovation Plus”scheme and partnering with enterprises,tertiary and sci-tech research institutes to advance the integrated innovation of industry,academ
99、ia,research and application.We have also enhanced our plans on regional and overseas innovation and further strengthened the synergy between innovation and capital,promoting the development of an innovative ecosystem.Drawing on our position as an industry leader,we strengthened collaboration within
100、the ecosystem to proactively build a new digital-intelligent ecosystem encompassing strategic and investment partners,telecommunications industry peers,system integration vendors,Internet technology companies and participants from broader society.Solid progress in enterprise reforms.We continuously
101、extended reforms to mechanisms and systems and proactively formulated strategies to develop strategic emerging industries.We continued to implement the national technology company development program and the“Double-hundred Action”.Our System Integration Company and Zijin(Jiangsu)Innovation Research
102、Institute have been included in the expanded technology company development program initiated by The State-owned Assets Supervision and Administration Commission of the State Council.We launched an initiative to create specialized,premium,unique and new products and capabilities and the first priori
103、ty teams to join this initiative have completed their selection and training,and were provided with tailored support from the Company.We have also further optimized the mechanisms of operations of our subsidiaries.In addition,we persistently enhanced our scientific management level,in which we conti
104、nuously strengthened our scientific management system 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 competence.We look to implement changes to ensure coor
105、dinated product operations between provincial and specialized companies.We set the benchmark for good customer service by strengthening the customer experience-based service quality standards.We also effectively invigorated innovation and creation,appointing chief scientists and starting the second
106、batch selection of chief experts.We strove to build a high-performing team of engineers and strengthen the talent pool of outstanding young technology talent.We tailored incentive schemes for different grades and different nature of work.We spearheaded the market-oriented reforms for certain key com
107、panies,improving the quality and coverage of our mid-to long-term incentive schemes through share options,dividends and other forms of incentives.Interim Report 202311Chairman s StatementCONTINUOUS IMPROVEMENTS IN ENVIRONMENTAL,SOCIAL AND GOVERNANCE(ESG)MANAGEMENTWe adhered to the principles of inte
108、grity,transparency,openness and efficiency to fully comply with all applicable listing rules and regulations governing listed companies to ensure sound corporate governance.We adhered to the board member diversity policy,fully leveraging the experience and expertise of the independent non-executive
109、directors to help us further improve our corporate governance and decision-making mechanisms.We continued to implement compliance management that matches our corporate governance and business transformation.We appointed a Chief Compliance Officer and ensured the continuing improvement of our complia
110、nce management system and compliance capabilities.We enhanced our supervision over key business areas by stepping up internal controls,risk prevention and mitigation.Strength in risk detection and risk management will help safeguard the healthy and sustainable development of the Company.We attach gr
111、eat importance to the sustainable development of the Company.Based on our principles of“Sincerity and Fulfillment.Self-Realization and Empowerment”,we aligned our efforts with the key themes of digital-intelligent innovation,inclusive growth,green development and outstanding governance.By leveraging
112、 our expertise,we are committed to empowering the development of economy,society and environment,while concurrently contributing to causes such as advancing new information services,building a bright digital-intelligent future,supporting coordinated regional development,revitalizing villages,practis
113、ing green and low-carbon operations,and taking part in charitable work and emergency and disaster relief missions.Our efforts have been recognized by the wider community.In addition,we emphasize developing talent and providing favorable conditions and environment for outstanding talent to develop.We
114、 care for our employees and are devoted to supporting them as they grow with our Company.FUTURE OUTLOOKThe rapid development and continued integration of next-generation information technologies,such as 5G,cloud computing,big data and AI,are leading to new trends of systematic innovation and becomin
115、g increasingly integrated into all aspects of the economy,society,and everyday life,leading to the emergence of new industries and models such as autonomous driving,unmanned factories,and metaverse.The new wave of technological innovation has created more opportunities for industry development,but a
116、lso put higher demands on the transformation of traditional business models.The integration of CT,IT and DT technologies,the integration of connectivity,computing force and capability in services,and the integration of new-generation information technology with production,livelihood and governance i
117、n applications are accelerating.These three integrations have quickened their pace and presented valuable opportunities for us to expand our information services.In the meantime,the macroeconomic environment is facing new challenges with a complex and rapidly changing business landscape.A lack of ov
118、erall demand,operating difficulties,and intense competition from multiple entities are posing challenges for certain enterprises.We also face certain uncertainties in our transformation and future development.12China Mobile Limited Chairman s StatementFaced with a new business environment and new op
119、portunities,we will fully,accurately and comprehensively align with new principles to ensure we contribute to the new development paradigm.We will firmly adhere to and creatively implement our“1-2-2-5”12 strategy with precision.We will accelerate the construction of a new growth model driven by inno
120、vation and establish a world-class“Powerhouse”to a high standard,breaking new ground as we become a world-class information services and sci-tech innovation enterprise.By doing so,we will continue to bring more value to our shareholders and customers.ACKNOWLEDGEMENTFinally,on behalf of the Board,I w
121、ould like to take this opportunity to express my heartfelt gratitude for the support of our shareholders,customers and the public,and for the dedication and contribution of our employees.Yang JieChairmanHong Kong,10 August 202312 Anchoring ourselves to the“one position”of a world-class information s
122、ervices and sci-tech innovation enterprise;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 achievin
123、g value growth in the mid-to-long-term.We will collectively foster the“two new elements”:systematically building a new information infrastructure centering 5G,CFN and capability middle platform,and developing a new information service system of connectivity,computing force and capability.We will pro
124、actively unleash the“five benefits”through innovation,customer recognition,reforms,talent and ecosystemInterim Report 20231314China Mobile Limited for the six months ended 30 June 2023(Expressed in Renminbi(“RMB”)Unaudited Condensed Consolidated Statement of Comprehensive IncomeSix months ended 30 J
125、une20232022NoteMillionMillion Operating revenue5Revenue from telecommunications services452,238426,417Revenue from sales of products and others78,48170,517 530,719496,934 Operating expensesNetwork operation and support expenses6143,526138,194Depreciation and amortization103,17099,464Employee benefit
126、 and related expenses70,43363,934Selling expenses26,83526,182Cost of products sold77,33268,900Other operating expenses729,13625,812 450,432422,486 Profit from operations80,28774,448Other gains4,0033,076Interest and other income811,3738,859Finance costs(1,938)(1,229)Income from investments accounted
127、for using the equity method4,9536,195 Profit before taxation98,67891,349 Taxation9(22,439)(21,012)PROFIT FOR THE PERIOD76,23970,337 Other comprehensive income for the period,net of tax:Items that will not be subsequently reclassified to profit or lossChanges in the fair value of financial assets mea
128、sured at fair value through other comprehensive income(7)(160)Share of other comprehensive loss of investments accounted for using the equity method(93)(3)Items that may be subsequently reclassified to profit or lossCurrency translation differences1,2191,211Share of other comprehensive income/(loss)
129、of investments accounted for using the equity method534(386)TOTAL COMPREHENSIVE INCOME FOR THE PERIOD77,89270,999 Interim Report 202315for the six months ended 30 June 2023(Expressed in Renminbi(“RMB”)Unaudited Condensed Consolidated Statement of Comprehensive IncomeSix months ended 30 June20232022N
130、oteMillionMillion Profit attributable to:Equity shareholders of the Company76,17370,275Non-controlling interests6662 PROFIT FOR THE PERIOD76,23970,337 Total comprehensive income attributable to:Equity shareholders of the Company77,82670,937Non-controlling interests6662 TOTAL COMPREHENSIVE INCOME FOR
131、 THE PERIOD77,89270,999 Earnings per share Basic11(a)RMB3.56RMB3.29 Earnings per share Diluted11(b)RMB3.56RMB3.29 The notes on pages 23 to 41 are an integral part of this interim financial information.16China Mobile Limited as at 30 June 2023(Expressed in RMB)Unaudited Condensed Consolidated Balance
132、 SheetAs at30 June2023As at31 December2022NoteMillionMillion Assets Non-current assets Property,plant and equipment12705,974741,029Construction in progress12102,25773,087Right-of-use assets102,314108,749Land use rights15,08715,244Goodwill35,30135,301Other intangible assets7,1438,691Investments accou
133、nted for using the equity method13178,194175,649Deferred tax assets45,37943,638Financial assets measured at fair value through other comprehensive income14509490Financial assets measured at fair value through profit or loss14186,565187,130Other financial assets measured at amortized cost1612,1539,71
134、6Bank deposits53,45945,887Other non-current assets37,76034,556 1,482,0951,479,167 Current assetsInventories12,97711,696Contract assets14,58513,657Accounts receivable1568,56440,245Other receivables14,16412,838Amount due from ultimate holding company20(a)2,9102,537Prepayments and other current assets2
135、6,33826,257Prepaid income tax8191,055Other financial assets measured at amortized cost1614,38316,300Financial assets measured at fair value through profit or loss14126,778108,303Bank deposits23,05556,377Cash and cash equivalents204,928167,106 509,501456,371 Total assets1,991,5961,935,538 Interim Rep
136、ort 202317as at 30 June 2023(Expressed in RMB)Unaudited Condensed Consolidated Balance SheetAs at30 June2023As at31 December2022NoteMillionMillion Equity and liabilities Liabilities Current liabilities Accounts payable17170,341156,536Bills payable12,40414,759Contract liabilities54,63175,255Accrued e
137、xpenses and other payables258,182225,576Amount due to ultimate holding company20(a)11,99620,136Income tax payable15,06610,156Lease liabilities35,29030,919 557,910533,337 Non-current liabilities Lease liabilities non-current77,03881,741Deferred revenue8,8488,810Deferred tax liabilities2,9062,571Other
138、 non-current liabilities8,0097,656 96,801100,778 Total liabilities654,711634,115 Equity Share capital19454,113453,504Reserves878,655843,844 Total equity attributable to equity shareholders of the Company1,332,7681,297,348 Non-controlling interests4,1174,075 Total equity1,336,8851,301,423 Total equit
139、y and liabilities1,991,5961,935,538 The notes on pages 23 to 41 are an integral part of this interim financial information.18China Mobile Limited for the six months ended 30 June 2023(Expressed in RMB)Unaudited Condensed Consolidated Statement of Changes in EquityAttributable to equity shareholders
140、of the Company Share capitalCapital reserveExchange reservePRC Statutory reservesOther reservesRetained profitsTotalNon-controlling interestsTotal equityMillionMillionMillionMillionMillionMillionMillionMillionMillion As at 1 January 2022402,130(264,455)(1,080)347,3733,670718,7121,206,3503,9421,210,2
141、92Changes in equity for the six months ended 30 June 2022:Profit for the period70,27570,2756270,337Changes in the fair value of financial assets measured at fair value through other comprehensive income(160)(160)(160)Currency translation differences1,2111,2111,211Share of other comprehensive loss of
142、 investments accounted for using the equity method(389)(389)(389)Total comprehensive income for the period1,211(549)70,27570,9376270,999Dividends paid during the period(note 10(b)(44,594)(44,594)(22)(44,616)Issuance of RMB Shares and exercise of over-allotment51,37451,37451,374Purchase of own shares
143、(707)(707)(707)Share option scheme Value of share options(note 18)146146146Changes in the share of other reserves of investments accounted for using the equity method(98)(98)(98)Others2812185858 As at 30 June 2022453,504(264,379)131347,3733,133743,7041,283,4663,9821,287,448 Interim Report 202319for
144、the six months ended 30 June 2023(Expressed in RMB)Unaudited Condensed Consolidated Statement of Changes in EquityAttributable to equity shareholders of the Company Share capitalCapital reserveExchange reservePRC Statutory reservesOther reservesRetained profitsTotalNon-controlling interestsTotal equ
145、ityMillionMillionMillionMillionMillionMillionMillionMillionMillion As at 1 January 2023453,504(264,035)1,495355,4632,366748,5551,297,3484,0751,301,423 Changes in equity for the six months ended 30 June 2023:Profit for the period76,17376,1736676,239Changes in the fair value of financial assets measur
146、ed at fair value through other comprehensive income(7)(7)(7)Currency translation differences1,2191,2191,219Share of other comprehensive income of investments accounted for using the equity method441441441 Total comprehensive income for the period1,21943476,17377,8266677,892Dividends paid during the
147、period(note 10(b)(43,414)(43,414)(24)(43,438)Exercise of share options609(43)566566Share option scheme Value of share options(note 18)392392392Changes in the share of other reserves of investments accounted for using the equity method(3)(3)(3)Others29245353 As at 30 June 2023454,113(263,660)2,714355
148、,4632,824781,3141,332,7684,1171,336,885 The notes on pages 23 to 41 are an integral part of this interim financial information.20China Mobile Limited for the six months ended 30 June 2023(Expressed in RMB)Unaudited Condensed Consolidated Statement of Cash FlowsSix months ended 30 June20232022NoteMil
149、lionMillion Operating activities Profit before taxation98,67891,349Adjustments for:Depreciation and amortization103,17099,464 Interest and other income8(11,373)(8,859)Finance costs1,9381,229 In come from investments accounted for using the equity method(4,953)(6,195)Others8,1675,808 Operating cash f
150、lows before changes in working capital195,627182,796 Changes in working capital Increase in inventories(1,519)(6,243)Increase in contract assets(2,027)(3,801)Increase in accounts receivable(35,919)(31,263)Increase in accounts payable11,6135,790 Increase in accrued expenses and other payables32,61932
151、,664 Decrease in contract liabilities(20,624)(19,741)Changes in other working capital(468)11,340 Cash generated from operations179,302171,542 Tax paid The mainland of China and other countries and regions enterprise income tax paid(18,403)(24,170)Hong Kong profits tax paid(374)(100)Net cash generate
152、d from operating activities160,525147,272 Interim Report 202321for the six months ended 30 June 2023(Expressed in RMB)Unaudited Condensed Consolidated Statement of Cash FlowsSix months ended 30 June20232022MillionMillion Investing activitiesPayment for property,plant and equipment(77,115)(88,289)Pay
153、ment for other intangible assets(2,531)(1,433)Proceeds from disposal and write-off of property,plant and equipment271355Decrease in bank deposits25,58110,758Increase in other financial assets measured at amortized cost(including non-current portion)(330)(57)Interest and other finance income received
154、4,1226,465Proceeds from partial disposal of investments accounted for using the equity method1,593Purchase of investments accounted for using the equity method(1,972)Dividends received from investments accounted for using the equity method1,6741,512Purchase of financial assets measured at fair value
155、 through profit or loss(17,101)(51,000)Proceeds from disposal of financial assets measured at fair value through profit or loss6,56847,601Purchase of financial assets measured at fair value through other comprehensive income(15)Proceeds from disposal of financial assets measured at fair value throug
156、h other comprehensive income22 Net cash used in investing activities(59,255)(74,066)22China Mobile Limited for the six months ended 30 June 2023(Expressed in RMB)Unaudited Condensed Consolidated Statement of Cash FlowsSix months ended 30 June20232022NoteMillionMillion Financing activitiesProceeds re
157、ceived from exercise of over-allotment of RMB Shares3,286Proceeds received from exercise of share options566Dividends paid to the Company s equity shareholders(43,414)(44,594)Interest paid in relation to short-term deposits placed by CMCC Group(23)(41)Net(payment)/receipts of short-term deposits pla
158、ced by CMCC Group20(a)(10,593)10,286Repayment of principal and interest of lease liabilities(10,261)(13,156)Payment for purchase of own shares(707)Others(41)(82)Net cash used in financing activities(63,766)(45,008)Net increase in cash and cash equivalents37,50428,198 Cash and cash equivalents,beginn
159、ing of period167,106243,943 Effect of changes in foreign exchange rate318209 Cash and cash equivalents,end of period204,928272,350 The notes on pages 23 to 41 are an integral part of this interim financial information.Interim Report 202323(Expressed in RMB unless otherwise indicated)Notes to Unaudit
160、ed Condensed Consolidated Interim Financial Information1 GENERAL INFORMATIONChina Mobile Limited(the“Company”)was incorporated in the Hong Kong Special Administrative Region(“Hong Kong”)of the Peoples Republic of China(the“PRC”)on 3 September 1997.The principal activities of the Company and its subs
161、idiaries(together referred to as the“Group”)are the provision of telecommunications and information related services in the mainland of China and in Hong Kong(for the purpose of preparing the unaudited condensed consolidated interim financial information,the mainland of China refers to the PRC exclu
162、ding Hong Kong,Macau Special Administrative Region of the PRC and Taiwan).The Company s immediate holding company is China Mobile Hong Kong(BVI)Limited(incorporated in the British Virgin Islands),and the Company s ultimate holding company is China Mobile Communications Group Co.,Ltd.(“CMCC”,incorpor
163、ated in the mainland of China).The address of the Company s registered office is 60th Floor,The Center,99 Queen s Road Central,Hong Kong.The ordinary shares of the Company have been listed on The Stock Exchange of Hong Kong Limited(the“HKEX”)since 23 October 1997.On 5 January 2022,the Company comple
164、ted the initial public offering of ordinary shares subscribed for and traded in RMB(the“RMB Shares”),which were listed on the Shanghai Stock Exchange(the“SHEX”).2 BASIS OF PREPARATIONThe unaudited condensed consolidated interim financial information for the six months ended 30 June 2023 has been pre
165、pared in accordance with International Accounting Standard(“IAS”)34,“Interim financial reporting”,issued by the International Accounting Standards Board(“IASB”),and Hong Kong Accounting Standard(“HKAS”)34,“Interim financial reporting”,issued by HKICPA,which are consistent,and the applicable disclosu
166、re requirements of the Rules Governing the Listing of Securities(the“Listing Rules”)on HKEX.The preparation of the unaudited condensed consolidated interim financial information in conformity with IAS/HKAS 34 requires management to make judgements,estimates and assumptions that affect the applicatio
167、n of policies and reported amounts of assets and liabilities,income and expenses on a year-to-date basis.Actual results may differ from these estimates.The unaudited condensed consolidated interim financial information should be read in conjunction with the Company s annual financial statements for
168、the year ended 31 December 2022.The Group s policies on financial risk management were set out in the financial statements included in the Company s 2022 Annual Report and there have been no significant changes in these policies for the six months ended 30 June 2023.No events and transactions that a
169、re significant to the changes in financial position and performance of the Group since the release of the annual financial statements for the year ended 31 December 2022 should be included in the Group s unaudited condensed consolidated interim financial information.The unaudited condensed consolida
170、ted interim financial information does not include all of the information required for a full set of financial statements prepared in accordance with International Financial Reporting Standards(“IFRSs”)or Hong Kong Financial Reporting Standards(“HKFRSs”).The unaudited condensed consolidated interim
171、financial information was approved by the board of directors of the Company for issuance on 10 August 2023.24China Mobile Limited(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information2 BASIS OF PREPARATION(CONTINUED)The Group s condensed
172、consolidated interim financial information is unaudited,but has been reviewed by the Company s Audit Committee.The condensed consolidated interim financial information has also been reviewed by the Company s independent auditor,KPMG,in accordance with Hong Kong Standard on Review Engagements 2410,“R
173、eview of Interim Financial Information Performed by the Independent Auditor of the Entity”,issued by the Hong Kong Institute of Certified Public Accountants(“HKICPA”).KPMG s unmodified independent review report to the board of directors is included on page 42 of this interim report.The financial inf
174、ormation relating to the year ended 31 December 2022,that is included in the unaudited condensed consolidated interim financial information for the six months ended 30 June 2023 as comparative information,does not constitute the Companys statutory annual consolidated financial statements for that ye
175、ar but is derived from those financial statements.Further information relating to these statutory financial statements required to be disclosed in accordance with section 436 of the Hong Kong Companies Ordinance(Cap.622)is as follows:The Company has delivered the financial statements for the year en
176、ded 31 December 2022 to the Registrar of Companies as required by section 662(3)of,and Part 3 of Schedule 6 to,the Hong Kong Companies Ordinance(Cap.622).The Company s auditor has reported on those financial statements.The auditor s report was unqualified;did not include a reference to any matters t
177、o which the auditor drew attention by way of emphasis without qualifying its report;and did not contain a statement under sections 406(2),407(2)or(3)of the Hong Kong Companies Ordinance(Cap.622).3 SIGNIFICANT ACCOUNTING POLICIESExcept as described below,the accounting policies applied in the prepara
178、tion of this unaudited condensed consolidated interim financial information are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2022.The following new and amended IFRSs/HKFRSs are mandatory for the first time for the Group s financial y
179、ear beginning on 1 January 2023 and are applicable for the Group:IFRS/HKFRS 17,Insurance contracts Amendments to IAS/HKAS 8,Accounting policies,changes in accounting estimates and errors:Definition of accounting estimates Amendments to IAS/HKAS 12,Income taxes:Deferred tax related to assets and liab
180、ilities arising from a single transaction Amendments to IAS/HKAS 12,Income taxes:International tax reform Pillar Two model rulesThe adoption of the above new and amended IFRSs/HKFRSs did not have any significant impact on the Group s unaudited condensed consolidated interim financial information.The
181、 Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.The management is assessing the impact of such standards and will adopt the relevant standards in the subsequent periods as required.Interim Report 202325(Expressed in RMB unless oth
182、erwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information4 SEGMENT REPORTINGAn operating segment is a component of the Group that engages in business activities from which the Group may earn revenue and incur expenses,and is identified on the basis of the internal fina
183、ncial reports that are provided to and regularly reviewed by the Group s Chief Operating Decision Maker(the“CODM”)in order to allocate resource and assess performance of the segment.The CODM has been identified as the Executive Directors of the Company.For the periods presented,the Group as a whole
184、is an operating segment since the Group is only engaged in telecommunications and information related services.No geographical information has been disclosed as the majority of the Group s operating activities are carried out in the mainland of China.The Group s assets located and operating revenue
185、derived from activities outside of the mainland of China are less than 5%of the Group s assets and operating revenue,respectively.5 OPERATING REVENUESix months ended 30 June20232022MillionMillion Revenue from telecommunications servicesVoice services37,91938,706SMS&MMS services16,15216,278Wireless d
186、ata traffic services211,780208,192Wireline broadband services58,06554,168Applications and information services116,35897,988Others11,96411,085 452,238426,417Revenue from sales of products and others78,48170,517 530,719496,934 The majority of the Group s operating revenue is from contracts with custom
187、ers,and the remaining is not material.6 NETWORK OPERATION AND SUPPORT EXPENSESSix months ended 30 June20232022NoteMillionMillion Maintenance,operation support and related expenses94,50287,141Power and utilities expenses21,19125,202Charges for use of tower assets(i)12,82113,512Charges for use of line
188、s and network assets and other assets(ii)10,2697,407Others4,7434,932 143,526138,194 Note:(i)Charges for use of tower assets include the non-lease components charges(maintenance,certain ancillary facilities usage and related support services)for use of telecommunications towers and variable lease pay
189、ments not based on an index or a rate,which are recorded in profit or loss as incurred.(ii)Charges for use of lines and network assets and other assets mainly include the non-lease components charges and the lease components charges for lease contracts that are exempted from recognition of right-of-
190、use assets and lease liabilities,such as short-term lease payments,lease payments of low-value assets and variable lease payments not based on an index or a rate,which are recorded in profit or loss as incurred.26China Mobile Limited(Expressed in RMB unless otherwise indicated)Notes to Unaudited Con
191、densed Consolidated Interim Financial Information7 OTHER OPERATING EXPENSESSix months ended 30 June20232022MillionMillion Interconnection11,34010,676Expected credit impairment losses7,5015,223Net loss on disposal and write-off of property,plant and equipment169233Co-research and development expenses
192、2,2342,369Taxes and surcharges1,4741,464Others6,4185,847 29,13625,812 8 INTEREST AND OTHER INCOMESix months ended 30 June20232022MillionMillion Interest income3,8365,543Net gains on hold/disposal of financial assets7,5373,316 11,3738,859 9 TAXATIONSix months ended 30 June20232022NoteMillionMillion C
193、urrent taxProvision for enterprise income tax in the mainland of China and other countries and regions on the estimated assessable profits for the period(i)23,58822,840Provision for Hong Kong profits tax on the estimated assessable profits for the period(ii)335280 23,92323,120Deferred taxOrigination
194、 and reversal of temporary differences,net(1,484)(2,108)22,43921,012 Note:(i)The provision for enterprise income tax in the mainland of China and other countries and regions has been calculated on the estimated assessable profits for the period at the rates of taxation prevailing in the regions in w
195、hich the Group operates.The Company s subsidiaries operate mainly in the mainland of China.The provision for the PRC enterprise income tax is based on the statutory tax rate of 25%(for the six months ended 30 June 2022:25%)on the estimated assessable profits determined in accordance with the relevan
196、t income tax rules and regulations of the PRC for the six months ended 30 June 2023.Certain subsidiaries of the Company entitle to the preferential tax rate of 15%(for the six months ended 30 June 2022:15%),and certain research and development costs of the Company s PRC subsidiaries are qualified fo
197、r 100%(for the six months ended 30 June 2022:75%)additional deduction for tax purpose.(ii)The provision for Hong Kong profits tax is calculated at 16.5%(for the six months ended 30 June 2022:16.5%)of the estimated assessable profits for the six months ended 30 June 2023.(iii)Pursuant to the“Notice r
198、egarding Matters on Determination of Tax Residence Status of Chinese-controlled Offshore Incorporated Enterprises under Rules of Effective Management”issued by SAT in 2009(“2009 Notice”),the Company is qualified as a PRC offshore-registered resident enterprise.Accordingly,the dividend income of the
199、Company from its subsidiaries in the PRC is exempted from PRC enterprise income tax.Interim Report 202327(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information10 DIVIDENDS(a)Dividends attributable to the periodSix months ended 30 June2023
200、2022MillionMillion Ordinary interim dividend declared after the balance sheet date of HK$2.430(equivalent to approximately RMB2.240)(2022:HK$2.200(equivalent to approximately RMB1.881)per share47,88740,192 As the proposed ordinary interim dividend in Hong Kong dollar was declared after the balance s
201、heet date,such dividend is not recognized as liability as at 30 June 2023.In case of any change in the total number of issued shares of the Company between the date of approval for these financial statements and the record date for the implementation of the 2023 interim dividend,the Company intends
202、to keep the amount of dividend per share unchanged and adjust the total amount of profit distribution accordingly.(b)Dividends attributable to the previous financial year,approved and paid during the periodSix months ended 30 June20232022MillionMillion Ordinary final dividend in respect of the previ
203、ous financial year,approved and paid during the period,of HK$2.210(equivalent to approximately RMB1.974)(2022:HK$2.430(equivalent to approximately RMB1.987)per share43,41444,594 The proposed/approved ordinary interim dividend/ordinary final dividend per share,which is declared in Hong Kong dollar,is
204、 translated into RMB for disclosure with reference to the exchange rate announced by the State Administration of Foreign Exchange in the PRC on 30 June 2023 and 30 December 2022(2022:30 June 2022 and 31 December 2021),respectively.In accordance with the 2009 Notice and the PRC enterprise income tax
205、law,the Company is required to withhold enterprise income tax equal to 10%of any dividend,when it is distributed to non-resident enterprise shareholders whose names appeared on the Company s register of members for shares listed on the HKEX,as at the record date for such dividend,and who were not in
206、dividuals.28China Mobile Limited(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information11 EARNINGS PER SHARE(a)Basic earnings per shareThe calculation of basic earnings per share for the six months ended 30 June 2023 is based on the profit
207、 attributable to equity shareholders of the Company of RMB76,173 million(for the six months ended 30 June 2022:RMB70,275 million)and the weighted average number of 21,368,063,583 shares in issue during the period(for the six months ended 30 June 2022:21,335,565,066 shares).(b)Diluted earnings per sh
208、areFor the six months ended 30 June 2023 and 2022,the Group has considered the impact from the following factors when calculating diluted earnings per share:(i)Convertible bonds issued by an associate of the Group(“CB”)that were outstanding during the periods(note 14);(ii)Share options issued by the
209、 Company that were outstanding during the periods(note 18);(iii)The RMB Shares publicly offered but had yet to be listed on the SHEX during the preceding period;and(iv)The over-allotment option that was outstanding during the preceding period.Of the above,the first two factors had dilutive effects f
210、or the six months ended 30 June 2023 but not 2022.In particular,(i)the assumed conversion of the CB would have decreased the profit attributable to equity shareholders of the Company(for the six months ended 30 June 2022:increased),and(ii)to the extent that the performance conditions would have been
211、 satisfied if the end of the period were the end of the performance period,the exercise price of the relevant share options were below the average market price of the Company s ordinary shares on the HKEX during the period those share options were outstanding(for the six months ended 30 June 2022:ab
212、ove).The third factor had no dilutive effect during the preceding period,as(iii)the offer price of the RMB Shares was not lower than its fair value during the period from the beginning of the preceding period to the completion date of the listing on the SHEX.The fourth factor had a dilutive effect d
213、uring the preceding period,as(iv)the exercise price of the over-allotment option was lower than the average market price of the RMB Shares during the exercisable period.Interim Report 202329(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Infor
214、mation11 EARNINGS PER SHARE(CONTINUED)(b)Diluted earnings per share(Continued)For the six months ended 30 June 2023,the calculation of diluted earnings per share is based on the profit attributable to equity shareholders of the Company of RMB76,070 million and the weighted average number of 21,397,8
215、22,194 shares after adjusting for the effect of all dilutive potential ordinary shares during the period.For the six months ended 30 June 2023Million Profit attributable to equity shareholders of the Company used in calculating basic earnings per share76,173Add:changes in share of profit of the asso
216、ciate113Less:fa ir value gain and interest income relating to the CB held by the Group,net of tax(216)Profit attributable to equity shareholders of the Company used in calculating diluted earnings per share76,070 As the dilutive effects on earnings per share resulting from the assumed conversion of
217、the CB and the deemed issue of shares under the Company s share options scheme were negligible,therefore diluted earnings per share were the same as basic earnings per share.For the six months ended 30 June 2022,the calculation of diluted earnings per share is based on the profit attributable to equ
218、ity shareholders of the Company of RMB70,275 million and the weighted average number of 21,335,665,605 shares after adjusting for the effect of all dilutive potential ordinary shares during the period.As the dilutive effect on earnings per share resulting from the assumed exercise of over-allotment
219、option was negligible,therefore diluted earnings per share were the same as basic earnings per share.12 PROPERTY,PLANT AND EQUIPMENT AND CONSTRUCTION IN PROGRESSFor the six months ended 30 June 2023,the Group acquired items of property,plant and equipment and construction in progress with an aggrega
220、te cost of RMB80,536 million(for the six months ended 30 June 2022:RMB91,576 million)and the depreciation of property,plant and equipment recognized in unaudited condensed consolidated statement of comprehensive income was RMB85,623 million(for the six months ended 30 June 2022:RMB82,190 million).30
221、China Mobile Limited(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information13 INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTSThe amounts recognized in the unaudited condensed consolidated balance sheet are as follows:As at 30 June 2023As
222、at 31 December 2022MillionMillion Associates177,466174,955Joint ventures728694 178,194175,649 (a)Major associatesDetails of major associates,both of which are listed on stock exchanges,are as follows:Name of associatePlace ofincorporation/establishmentand operationProportion ofownershipinterest held
223、by the Companyor its subsidiaryPrincipal activity Shanghai Pudong Development Bank Co.,Ltd.(“SPD Bank”)The PRC18%Provision of banking servicesChina Tower Corporation Limited(“China Tower”)The PRC28%Provision of construction,maintenance and operation oftelecommunications towersThe Groups effective in
224、terest holding in True Corporation Public Company Limited(“True Corporation”)has reduced from 18%to 8%following the investee s corporate amalgamation and disposal of certain shares by the Group during the six months ended 30 June 2023.Since then,True Corporation is no longer considered as a major as
225、sociate of the Group.(i)The fair values of the interests in listed associates are based on quoted market prices(level 1:unadjusted quoted price in active markets)at the balance sheet date without any deduction for transaction costs and disclosed as follows:As at 30 June 2023As at 31 December 2022Car
226、ryingamountFair valueCarryingamountFair valueMillionMillionMillionMillion SPD Bank115,47338,625113,01738,838China Tower52,74739,42552,76236,880 Interim Report 202331(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information13 INVESTMENTS IN A
227、SSOCIATES AND JOINT ARRANGEMENTS(CONTINUED)(a)Major associates(Continued)(ii)The Group assesses at the end of each reporting period whether there is objective evidence that interests in associates and joint ventures are impaired.As at 30 June 2023,the fair value of investment in SPD Bank was RMB38,6
228、25 million(as at 31 December 2022:RMB38,838 million)based on its quoted market price,which was below its carrying amount by 66.6%(as at 31 December 2022:65.6%).The management of the Group performed an impairment assessment and determined the recoverable amount of the investment based on its VIU.The
229、calculation has considered pre-tax cash flow projections of SPD Bank for a five-year forecast with an extrapolation made to perpetuity.The discount rate used to discount the cash flows to their respective net present values was based on cost of capital used to evaluate investments of similar nature
230、in the mainland of China.Management judgement is required in estimating the future cash flows of SPD Bank.The key assumptions are determined with reference to external sources of information.Based on the management s assessment result,there was no impairment of the investment as at 30 June 2023.As a
231、t 30 June 2023,the fair value of investment in China Tower was RMB39,425 million(as at 31 December 2022:RMB36,880 million)based on its quoted market price,which was below its carrying amount by 25.3%(as at 31 December 2022:30.1%).Based on the management s assessment result,there was no impairment of
232、 the investment as at 30 June 2023.As at 30 June 2023 and 31 December 2022,there was no impairment indicator of the Group s interests in other associates or joint ventures.(b)Investments in a joint operationTo efficiently enhance its 5G network coverage,the Group entered into a series of collaborati
233、on agreements with China Broadcasting Network Corporation Ltd.(“CBN”)to co-construct and share 700MHz 5G wireless network(the“Co-construction and Sharing Agreement”).In accordance with the Co-construction and Sharing Agreement,the parties shall co-construct and share 700MHz wireless network(includin
234、g but not limited to base stations and antennas)based on all 700MHz frequency bands of the radio spectrum in respect of which CBN had been permitted to use by relevant national departments.The parties shall jointly determine network construction plans.Without consent from the other party,any party m
235、ay not dispose of(including transfer,mortgage or pledge,etc)all or any of the 700MHz wireless network assets within the scope of collaboration.The Group initially bear the construction costs of the 700MHz 5G wireless network within the agreed scope under the Co-construction and Sharing Agreement and
236、 shall initially own the assets underlying the said wireless network.CBN shall pay the Group network usage fees based on fair and reasonable negotiations.Therefore,both parties have the right to use the 700MHz wireless network.Subject to compliance with applicable laws,regulations and regulatory req
237、uirements,CBN may purchase 50%of the 700MHz 5G wireless network assets from the Group by stages,at the then assessed fair value.32China Mobile Limited(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information14 FAIR VALUE MEASUREMENT OF FINAN
238、CIAL INSTRUMENTS(a)Methods of determining fair value of financial instrumentsThe following table presents the fair value and fair value hierarchy of the Group s financial instruments measured at the end of the reporting period on a recurring basis.The level into which a fair value measurement is cla
239、ssified is determined with reference to the lowest level input that is significant to the entire measurement.The different levels have been defined as follows:Level 1 valuations:unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.Level 2 valuations:
240、observable inputs which fail to meet Level 1,and not using significant unobservable inputs.Level 3 valuations:fair value measured using significant unobservable inputs.(b)Assets measured at fair value on a recurring basisThe following table presents the Group s assets that are measured at fair value
241、 at 30 June 2023:Level 1Level 2Level 3TotalMillionMillionMillionMillion Financial assets measured at FVPLWealth management products(“WMPs”)198,914198,914Asset management plans50,78350,783Bond funds and monetary funds52,03852,038CB9,8219,821Equity investments and others3461,4411,787Financial assets m
242、easured at FVOCI368141509 Total62,573251,279313,852 The following table presents the Group s assets that are measured at fair value at 31 December 2022:Level 1Level 2Level 3TotalMillionMillionMillionMillion Financial assets measured at FVPLWealth management products(“WMPs”)184,912184,912Asset manage
243、ment plans50,01150,011Bond funds and monetary funds48,81648,816CB9,5329,532Equity investments and others9311,2312,162Financial assets measured at FVOCI364126490 Total59,643236,280295,923 Note:The Group s asset management plans are issued by domestic public offering fund,securities companies and othe
244、r financial institutions investing in low or medium risk underlying assets,which mainly consist of money market instruments,PRC treasury bond,central bank bill,local government debt,corporate bond or debt with high credit ratings,debt assets and a few stock investments.For the six months ended 30 Ju
245、ne 2023 and 2022,the Group did not convert any CB into SPD Bank s common stock.Interim Report 202333(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information14 FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS(CONTINUED)(c)Valuation techniques
246、 used and the qualitative information of key parameters for fair value measurements categorized as Level 3The financial assets categorized into Level 3 mainly represented wealth management products,asset management plans and unlisted equity investments.The fair value of wealth management products an
247、d asset management plans is determined based on their net asset value provided by the counterparty financial institutions as at the end of the reporting period,where the significant unobservable inputs are the net assets.The relationship of unobservable inputs to fair value is positive correlation.T
248、he fair value of unlisted equity investments is measured using the market approach,where the significant unobservable inputs are the liquidity discount of similar financial instruments.The relationship of unobservable inputs to fair value is negative correlation.The movements during the period in th
249、e balance of these Level 3 fair value measurements are as follows:As at31 December2022PurchaseDisposalRecognized inprofit or lossRecognized inothercomprehensiveincomeAs at30 June2023MillionMillionMillionMillionMillionMillion Financial assets measured at FVOCI12615141Financial assets measured at FVPL
250、236,15413,000(3,293)5,277251,138 236,28013,015(3,293)5,277251,279 (d)Transfers between LevelsThere were no transfers between the levels of fair value hierarchy for the six months ended 30 June 2023 and 2022.15 ACCOUNTS RECEIVABLEAging analysis of accounts receivable,net of loss allowance is as follo
251、ws:As at 30 June 2023As at 31 December 2022MillionMillion Base on invoice date:Within 30 days20,42314,58031 60 days6,2234,19761 90 days7,1163,65891 days 1 year29,55815,033Over 1 year5,2442,777 68,56440,245 The accounts receivable of the Group are primarily comprised of receivables due from customers
252、 and other telecommunications operators.Accounts receivable from customers are spread among an extensive number of customers and the majority of the receivables from individual customers are due for payment within one month from the date of billing.For corporate customers,the credit period grants by
253、 the Group is based on the service contract terms,normally not exceeding 1 year.34China Mobile Limited(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information16 OTHER FINANCIAL ASSETS MEASURED AT AMORTIZED COSTAs at 30 June 2023As at 31 Dec
254、ember 2022Non-current assetsCurrent assetsTotalNon-current assetsCurrent assetsTotalMillionMillionMillionMillionMillionMillion Other financial assets measured at amortized cost PRC treasury bonds11,76811,7689,3319,331 Other debt instrument investments38514,38314,76838516,30016,685 12,15314,38326,536
255、9,71616,30026,016 As at 30 June 2023,the aggregated principal of PRC treasury bonds amounted to RMB11,500 million(as at 31 December 2022:RMB9,000 million),which will mature in 2052 and bear interest at a fixed rate of 3.12%-3.32%per annum(as at 31 December 2022:3.32%per annum).Other debt instrument
256、investments mainly include various debt instrument investments to banks,other financial institutions and third parties.17 ACCOUNTS PAYABLEAccounts payable primarily include payables for expenditure of network expansion,maintenance and support expenses and interconnection expenses,etc.The aging analy
257、sis of accounts payable is as follows:As at 30 June 2023As at 31 December 2022MillionMillion Base on invoice date:Within 180 days99,19693,269181 days 1 year36,71026,253Over 1 year34,43537,014 170,341156,536 All of the accounts payable are expected to be settled within one year or are repayable on de
258、mand.Interim Report 202335(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information18 SHARE-BASED PAYMENTAt the Companys Annual General Meeting(“AGM”)held on 20 May 2020,the shareholders of the Company approved the adoption of the Share Opti
259、on Scheme(the“Scheme”),for the grant of share options(“Share Options”)to qualified participants.The maximum number of shares to be issued upon the exercise of the Share Options granted under the Scheme shall not in aggregate exceed 10%of the total share capital of the Company as at the date of appro
260、val of the Scheme at a general meeting of shareholders.The exercise price of options shall be determined in accordance with the fair market price principle,with the base day for pricing being the Grant Date.The exercise price shall not be lower than the higher of the following prices:(i)the closing
261、price of the Shares on the Grant Date;and(ii)the average closing price of the Shares on the HKEX for the five trading days prior to the Grant Date.Subject to the satisfaction of the conditions for vesting as provided under the Scheme,the Share Options granted shall be vested in three batches as foll
262、ows:(i)the first batch(being 40%of the Share Options granted)will be vested on the first trading day after 24 months from the Grant Date;(ii)the second batch(being 30%of the Share Options granted)will be vested on the first trading day after 36 months from the Grant Date;and(iii)the third batch(bein
263、g 30%of the Share Options granted)will be vested on the first trading day after 48 months from the Grant Date.Vesting period ends ten years from the Grant Date.The vesting of share options under the Scheme shall be conditional upon fulfilment of certain performance conditions under the relevant perf
264、ormance period.Participants are backbone management,technical and business personnel who have a direct impact on the Company s operating performance and sustainable development.No Share Options had been granted to the directors,chief executive or substantial shareholders of the Company or any of the
265、ir related parties.On 12 June 2020(the“First Grant”),the Board of Directors of the Company approved the grant of Share Options representing an aggregate of 305,601,702 shares to 9,914 participants of the Scheme pursuant to the aforementioned authorization,which represented 1.5%of the Company s issue
266、d share capital at then.The exercise price was HK$55.00 per share.On 19 September 2022(the“Second Grant”),the Board of Directors of the Company approved the grant of Share Options representing an aggregate of 607,649,999 shares to 10,988 participants of the Scheme pursuant to the aforementioned auth
267、orization,which represented 2.8%of the Company s issued share capital at then.The exercise price was HK$51.60 per share.For the six months ended 30 June 2023,share options compensation expenses recorded in profit or loss amounted to RMB392 million(for the six months ended 30 June 2022:RMB146 million
268、).36China Mobile Limited(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information18 SHARE-BASED PAYMENT(CONTINUED)(a)Movements in share optionsMovements in the number of share options outstanding and their related weighted average exercise p
269、rices are as follows:Share option schemeAverageexercise priceNumbers of options As at 1 January 2022HK$55.00302,096,876ForfeitedHK$55.00(18,897,600)As at 30 June 2022HK$55.00283,199,276 Vested and exercisable as at 30 June 2022HK$55.00104,167,642 As at 1 January 2023HK$52.67887,599,718ExercisedHK$55
270、.00(11,594,026)ForfeitedHK$54.78(16,403,873)As at 30 June 2023HK$52.60859,601,819 Vested and exercisable as at 30 June 2023HK$55.00166,515,356 The weighted average share price at the date of exercise for share options exercised during the period was HK$64.78(for the six months ended 30 June 2022:not
271、 applicable).(b)Share options outstandingDetails of the expiry dates,exercise prices and the respective numbers of share options which remained outstanding as at 30 June 2023 and 31 December 2022 are as follows:Grant DateNormal exercise periodExercise priceNo.of shares involved in the options outsta
272、nding as at 30 June 2023No.of shares involved in the options outstanding as at 31 December 2022 12 June 202012 June 2022-12 June 2030HK$55.0091,047,592101,069,90512 June 202012 June 2023-12 June 2030HK$55.0075,467,76489,515,81712 June 202012 June 2024-12 June 2030HK$55.0086,648,95389,515,81719 Septe
273、mber 202219 September 2024-19 September 2032HK$51.60242,575,004242,999,27119 September 202219 September 2025-19 September 2032HK$51.60181,931,253182,249,45419 September 202219 September 2026-19 September 2032HK$51.60181,931,253182,249,454The options outstanding as at 30 June 2023 had a weighted aver
274、age remaining contractual life of 8.5 years(as at 31 December 2022:9.0 years).Interim Report 202337(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information18 SHARE-BASED PAYMENT(CONTINUED)(c)Fair value of share optionsThe Company used the B
275、inomial Model to determine the fair value of the Share Options as at the Grant Date,which is to be recorded in profit or loss over the vesting period.The weighted average fair value of the Share Options granted by the Company was HK$4.00 per share(the First Grant)and HK$3.28 per share(the Second Gra
276、nt).The model inputs to determine the fair value of Share Options granted included:Granted on 12 June 2020 the First GrantGranted on19 September 2022 the Second Grant Exercise pricesHK$55.00HK$51.60The closing price at the Grant DateHK$54.25HK$51.45Risk-free interest rate0.65%3.34%Expected dividend
277、yield5.90%9.04%Expected volatility(Note)21.34%22.23%Note:The expected volatility is determined based on the historical average daily trading price volatility of the shares of the Company.19 SHARE CAPITALNoteNumber of sharesRMB Million Ordinary shares,issued and fully paid:As at 31 December 202221,36
278、2,826,764453,504Exercise of share options1811,594,026609 As at 30 June 202321,374,420,790454,113 Of which:Shares listed on the HKEX20,471,652,923Shares listed on the SHEX902,767,867 Note:The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled t
279、o one vote per share at meetings of the Company.All ordinary shares rank equally with regard to the Company s residual assets.38China Mobile Limited(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information20 RELATED PARTY TRANSACTIONS(a)Tran
280、sactions with CMCC GroupThe following is a summary of principal related party transactions entered into by the Group with CMCC and its subsidiaries excluding the Group(“CMCC Group”)for the six months ended 30 June 2023 and 2022.The majority of these transactions also constitute continuing connected
281、transactions as defined under Chapter 14A of the Listing Rules.Six months ended 30 June20232022NoteMillionMillion Revenue from telecommunications facilities construction services(i)771701Revenue from comprehensive support services(ii)167179Technical support services charges(iii)152191Additions of ri
282、ght-of-use assets(iv)2,0098,428Related costs for lease of network assets and property(iv)5,9464,073Interest expenses(v)2139Net(repayment)/receipts of short-term deposits(v)(10,593)10,286 The outstanding balances related to transactions with CMCC Group are included in the following accounts captions
283、summarized as follows:As at 30 June 2023As at31 December 2022MillionMillion Accounts receivable155289Other receivables52Prepayments and other current assets331Amount due from ultimate holding company2,9102,537Right-of-use assets6,9166,818Lease liabilities8,1517,467Accounts payable2,2392,196Accrued e
284、xpenses and other payables1,4491,694Amount due to ultimate holding company11,99620,136 The amounts arise in the ordinary course of business and with terms determined through mutual negotiation which are fair and reasonable.Note:(i)The Group provides telecommunications facilities construction service
285、s to CMCC Group for the telecommunications project planning,design,construction,maintenance and other services.(ii)The Group provides comprehensive management,support and other services to CMCC Group.(iii)The Group purchases technical support and other services from CMCC Group.(iv)The amounts primar
286、ily represent the additions of right-of-use assets/the charges to CMCC Group for the lease of machinery rooms and transmission pipelines,power support and other network assets and resources,offices and retail outlets.Related costs for lease of network assets and property include the depreciation of
287、right-of-use assets,finance costs associated with the lease liabilities and other service charges.(v)The amounts represent the bank deposits received from or repaid to CMCC Group and related interest expenses.The interest rate of short-term bank deposits is negotiated based on the benchmark interest
288、 rate published by the People s Bank of China(“PBOC”).Interim Report 202339(Expressed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information20 RELATED PARTY TRANSACTIONS(CONTINUED)(b)Principal transactions with associates and joint ventures of the G
289、roupThe following is a summary of principal related party transactions entered into by the Group with the associates and joint ventures of the Group for the six months ended 30 June 2023 and 2022,the terms of which are fair and reasonable.Six months ended 30 June20232022NoteMillionMillion Revenue fr
290、om telecommunications services(i)614699Telecommunications services charges(i)5254Technical support services charges(ii)2,0461,883Property leasing and management services revenue(iii)2223Dividend received1,6741,512Related costs for use of tower assets(iv)20,88921,264Additions of right-of-use assets(i
291、v)1,9321,976Increase in cash,cash equivalents and bank deposits(v)7,5235,778Decrease in other financial assets measured at amortized cost(vi)(200)(1,150)Disposal of financial assets measured at FVPL(vii)3,2487,498Interest and other income(viii)1,4521,411 The outstanding balances related to transacti
292、ons with the associates and joint ventures of the Group are included in the following accounts captions summarized as follows:As at 30 June 2023As at 31 December 2022MillionMillion Accounts receivable374278Right-of-use assets61,75967,776Other receivables189252Cash,cash equivalents and bank deposits6
293、2,68956,052Other financial assets measured at amortized cost201Financial assets measured at FVPL29,61932,185Prepayments and other current assets63Lease liabilities69,38570,599Accounts payable3,9684,056Bills payable2,9725,026Accrued expenses and other payables19,58311,334 40China Mobile Limited(Expre
294、ssed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information20 RELATED PARTY TRANSACTIONS(CONTINUED)(b)Principal transactions with associates and joint ventures of the Group(Continued)Note:(i)The Group provides/purchases telecommunications services t
295、o/from Groups associates and joint ventures for the telecommunications project planning,design and construction services and telecommunications services.(ii)The Group purchases technical support and other services from the Group s associates.(iii)The Group provides property leasing and management se
296、rvice to China Tower and other associates.(iv)The amounts primarily represent the related costs for tower assets leasing and other service charges.For the six months ended 30 June 2023,related costs for use of tower assets include the depreciation of right-of-use assets amounting to RMB6,905 million
297、(For the six months ended 30 June 2022:RMB7,395 million),charges for use of tower assets and finance costs associated with the lease liabilities amounting to RMB13,736 million(For the six months ended 30 June 2022:RMB13,733 million),other service charges amounting to RMB248 million(For the six month
298、s ended 30 June 2022:RMB136 million).(v)The amounts represent the deposits placed with SPD Bank,the interest rate of which is negotiated based on the benchmark interest rate published by the People s Bank of China(“PBOC”).(vi)The amounts represent the debt instrument investments placed with SPD Bank
299、.The related interest rates are mutually agreed among both parties with reference to the market interest rates.(vii)The amounts represent the WMPs purchased from SPD Bank.The return rates of WMPs are determined with reference to market conditions.(viii)The amounts primarily represent interest income
300、 from the deposits placed with SPD Bank and debt instrument investments placed with SPD Bank,and the income derived from WMPs purchased from SPD Bank and the CB publicly issued by SPD Bank.(c)Transactions with major associates of CMCC GroupThe following is a summary of principal related party transa
301、ctions entered into by the Group with the major associates of the CMCC Group for the six months ended 30 June 2023 and 2022,the terms of which are fair and reasonable.Six months ended 30 June20232022NoteMillionMillion Increase in cash,cash equivalents and bank deposits(i)576Interest and other income
302、(ii)760 The outstanding balances related to transactions with the major associates of the CMCC Group are included in the following accounts captions summarized as follows:As at30 June2023As at31 December 2022MillionMillion Cash,cash equivalents and bank deposits3,250Financial assets measured at FVPL
303、33,164 (i)The amounts represent the deposits placed with Postal Savings Bank of China(“PSBC”),the interest rate of which is negotiated based on the benchmark interest rate published by PBOC.(ii)The amounts primarily represent income derived from WMPs purchased from PSBC.Interim Report 202341(Express
304、ed in RMB unless otherwise indicated)Notes to Unaudited Condensed Consolidated Interim Financial Information20 RELATED PARTY TRANSACTIONS(CONTINUED)(d)Transactions with other government-related entities in the PRCThe Group is a government-related enterprise and operates in an economic regime current
305、ly dominated by entities directly or indirectly controlled by the PRC government through government authorities,agencies,affiliations and other organization(collectively referred to as“government-related entities”).Apart from transactions with CMCC Group(note 20(a),associates and joint ventures(note
306、 20(b)and the associates of CMCC Group(note 20(c)with other government-related entities which include but not limited to the following:rendering and receiving telecommunications services,including interconnection revenue/charges sharing certain telecommunications network infrastructures and frequenc
307、y bands of the radio spectrum purchasing of goods,including use of public utilities placing of bank deposits and purchasing of investment productsThese transactions are conducted during the ordinary course of the Group s business based on terms comparable to the terms of transactions enacted with ot
308、her entities that are not government-related.The Group prices all its telecommunications services and products based on commercial negotiations with reference to rules and regulations stipulated by related authorities of the PRC Government,where applicable.The Group has also established its procurem
309、ent policies and approval processes for purchases of products and services,which do not depend on whether the counterparties are government-related entities or not.21 CAPITAL COMMITMENTSThe Group s capital expenditure contracted for as at the balance sheet dates but not provided for in the unaudited
310、 condensed consolidated interim financial information were as follows:As at30 June2023As at31 December2022MillionMillion Land and buildings2,9402,205 Telecommunications equipment and others29,40927,552 32,34929,757 22 EVENTS AFTER THE REPORTING PERIODAfter the balance sheet date,the Board of Directo
311、rs proposed an ordinary interim dividend.Further details are disclosed in note 10(a).42China Mobile Limited Report on Review of Interim Financial InformationTo the Board of Directors of China Mobile Limited(Incorporated in Hong Kong with limited liability)INTRODUCTIONWe have reviewed the condensed c
312、onsolidated interim financial information set out on pages 14 to 41 which comprises the condensed consolidated balance sheet of China Mobile Limited(the“Company”)and its subsidiaries(together,the“Group”)as of 30 June 2023 and the related condensed consolidated statement of comprehensive income,conde
313、nsed consolidated statement of changes in equity and condensed consolidated statement of cash flows for the six-month period then ended and explanatory notes.The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of an interim financial infor
314、mation to be in compliance with the relevant provisions thereof,and to be in compliance with either International Accounting Standard 34“Interim Financial Reporting”issued by the International Accounting Standards Board or Hong Kong Accounting Standard 34“Interim Financial Reporting”issued by the Ho
315、ng Kong Institute of Certified Public Accountants,depending on whether the issuer s annual financial statements are prepared in accordance with International Financial Reporting Standards(“IFRSs”)or Hong Kong Financial Reporting Standards(“HKFRSs”)respectively.As the annual financial statements of t
316、he Group are prepared in accordance with both IFRSs and HKFRSs,the directors are responsible for the preparation and presentation of the interim financial information in accordance with both International Accounting Standard 34 and Hong Kong Accounting Standard 34.Our responsibility is to form a con
317、clusion,based on our review,on the condensed consolidated interim financial information and to report our conclusion solely to you,as a body,in accordance with our agreed terms of engagement,and for no other purpose.We do not assume responsibility towards or accept liability to any other person for
318、the contents of this report.SCOPE OF REVIEWWe conducted our review in accordance with Hong Kong Standard on Review Engagements 2410,“Review of interim financial information performed by the independent auditor of the entity”,issued by the Hong Kong Institute of Certified Public Accountants.A review
319、of the condensed consolidated interim financial information consists of making enquiries,primarily of persons responsible for financial and accounting matters,and applying analytical and other review procedures.A review is substantially less in scope than an audit conducted in accordance with Hong K
320、ong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.Accordingly we do not express an audit opinion.Interim Report 202343Report on Review of Interim Financial InformationCONCLUSION
321、Based on our review,nothing has come to our attention that causes us to believe that the interim financial information as at 30 June 2023 is not prepared,in all material respects,in accordance with International Accounting Standard 34“Interim Financial Reporting”and Hong Kong Accounting Standard 34“
322、Interim Financial Reporting”.KPMGCertified Public Accountants8th Floor,Prince s Building10 Chater RoadCentral,Hong Kong10 August 202344China Mobile Limited Discussion of Selected Items in the Interim ResultsOPERATING REVENUEIn the first half of 2023,we embraced the valuable opportunities emerging fr
323、om the flourishing digital economy and continued progress in the development of Digital China,and accelerated the establishment of a world-class“Powerhouse”.Our revenue maintained favourable growth,our revenue structure was further optimized and value contribution from digital transformation revenue
324、 as the“second curve”was remarkable.Our operating revenue was RMB530.7 billion,up by 6.8%year-on-year,of which revenue from telecommunications services reached RMB452.2 billion,up by 6.1%year-on-year.Revenue from voice services was RMB37.9 billion,down by 2.0%year-on-year.Revenue from SMS/MMS servic
325、es was RMB16.2 billion,down by 0.8%year-on-year.Revenue from wireless data traffic services was RMB211.8 billion,up by 1.7%year-on-year.Revenue from wireline broadband services reached RMB58.1 billion,up by 7.2%year-on-year.Revenue from applications and information services reached RMB116.4 billion,
326、up by 18.7%year-on-year,contributing 4.3 percentage points of the growth of revenue from telecommunications services.OPERATING EXPENSESWe further promoted scientific and sophisticated cost management,and continued to allocate resources in line with the principles of ensuring a sufficient budget for
327、areas essential to promote growth,while reducing and controlling expenses on certain selected areas,thereby constantly optimizing the structure of resource deployment and achieving effective cost control.In the first half of 2023,our operating expenses were RMB450.4 billion,up by 6.6%year-on-year an
328、d representing 84.9%of operating revenue.Network operation and support expenses were RMB143.5 billion,up by 3.9%year-on-year and representing 27.0%of operating revenue.Of which,maintenance,operation support and related expenses saw a 8.4%increase year-on-year and reached RMB94.5 billion,primarily dr
329、iven by rapid commissioning of new infrastructure projects and increased transformation-related investments.Depreciation and amortization were RMB103.2 billion,up by 3.7%year-on-year and representing 19.4%of operating revenue.The increase was primarily driven by growth in the scale of our assets as
330、we accelerated network upgrades and business transformation,which brought about a corresponding increase in depreciation and amortization.Employee benefit and related expenses were RMB70.4 billion,up by 10.2%year-on-year and representing 13.3%of operating revenue,mainly because we continued to adjus
331、t and optimize our personnel structure,and placed more efforts in recruitment and training of digital-intelligent talents.Selling expenses were RMB26.8 billion,up by 2.5%year-on-year and representing 5.1%of operating revenue,down by 0.2 percentage points year-on-year.We rapidly advanced transformati
332、on of channels,and constantly upgraded our online sales and services capabilities.Cost of products sold was RMB77.3 billion,up by 12.2%year-on-year and representing 14.6%of operating revenue.The increase was mainly driven by the growth in revenue from sales of products.Other operating expenses were
333、RMB29.1 billion,up by 12.9%year-on-year and representing 5.5%of operating revenue.The increase was mainly because we continued to step-up our efforts in developing our core capabilities to empower our intelligent development.Interim Report 202345Discussion of Selected Items in the Interim ResultsPROFITABILITYWe continued to improve quality and efficiency in our operations and management,and mainta