On March 21, China Mobile released its 2018 annual results announcement. In 2018, China Mobile achieved operating income of RMB 736.8 billion, of which communication services revenue was RMB 670.9 billion, an increase of 3.7%; shareholders’ profit attributable to shareholders was RMB 117.8 billion, an increase of 1.9%. Details are as follows:

• Operating income was RMB 736.8 billion, an increase of 1.8%; of which, communications services revenue was RMB 670.9 billion, an increase of 3.7%.
• EBITDA was RMB 275.5 billion, an increase of 1.9%
• Profit attributable to shareholders was RMB 117.8 billion, an increase of 3.1%
• The total number of mobile phone customers was 925 million, a net increase of 37.87 million
• The total number of cable broadband customers is 157 million, a net increase of 44 million
• The final dividend is proposed to be HK$1.391 per share; the current dividend will be distributed at HK$1.826 per share, and the full-year dividend for 2018 will be HK$3.217 per share. The profit spread rate for the whole year will increase to 49%.

Chairman Yang Jie mentioned in the report that in 2018, China Mobile’s annual operating income reached RMB 736.8 billion, a 1.8% increase over the same period. Among them, the service revenue of Tongxin reached RMB 607.09 billion, an increase of 3.7%. The “four-wheel drive” structure has been further optimized, and the proportion of household market, government market, and new business market has increased rapidly. The total number of connections reached 1.633 billion, of which 925 million were connected by mobile; the cable and broadband connection was 157 million, and the scale grew rapidly; the Internet of Things was connected with 551 million, leading the industry.

The company is striving to reduce cost and increase efficiency, reduce unit costs, and achieve good results. The shareholder should account for RMB 111.7 billion, and the profit per share was RMB 5.75, a 3.1% increase over the same period. Profitability continues to maintain the leading level of the world’s top operators.

Significant achievements in transformation and development

The company deepened the integration of “four-wheel drive” and established itself as the leader of the mobile market. It expanded the family market, the government market and the new business market to promote the optimization of business structure and the transformation of kinetic energy, and achieved good results.

As the individual moved to the market, the company continued to maintain the leading position of the personal mobile market. The net increase in the number of 4G customers and the volume of the volume rose to around 50% in the fourth quarter. In 2018, the company’s 4G customers reached 713 million, of which 380 million VoLTE customers. The amount of traffic on the mobile phone increased by 182.1% in the same period, and the 4G DOU in December reached 6.6 GB. The mobile ARPU reached RMB 53.1, leading the industry.

In the family market, the number of customers in the home wideband increased by 37.42 million, with a total number of 147 million.

The amount reached 41.5%. The number of users of “Magic Baihe” reached 96.81 million, and the penetration rate reached 65.9%. The family wide belt combined ARPU reached RMB 34.4, a 3.2% increase over the same period.

In the government and enterprise market, we are focusing on key industries and deepening the informatization blue ocean, and the industry competitiveness has improved significantly. The total number of government and enterprise customers reached 7.18 million, a year-on-year increase of 19.2%, and the group’s communications and information revenues reached 38.5%.

Increase by 2.2 percentage points. Faced with a vertical direction, the company continued to focus on the expansion of its business. In the expansion of the market, it continued to enhance the “one-stop” comprehensive service capability, and the number of industries with annual revenues exceeding 100 million yuan reached 11.

In the new business market, we will create new operation modes and create more important products to achieve scale growth. The number of intelligent connections in the Internet of Things increased by 322 million, and the scale reached 551 million.

Some provinces and cities have realized the number of connections between things and people more than the number of connections between people and people; the revenue of “Mimi Video” increased by 21.7% year-on-year.咕Video” The client watched more than 4.3 billion person-times; the “Mimi Reading” revenue exceeded RMB 2.3 billion; the mobile payment business “Way Package” transaction amounted to over RMB 2.5 trillion.

Continuous improvement in sustainability

The company insisted on the current situation, the long-term layout, the number of 4G base stations reached 2.41 million, and the coverage rate of the administrative village network exceeded 97.8%, effectively responding to the demand for rapid growth of 4G traffic. The cellular network (NB-IoT) achieves continuous coverage in areas above townships. The entire network home wideband has a capacity of 100 megabits or more.

Key technology research and standards lead to positive development. Leading the development of the 5G network architecture standards, the number of standard proposals for the R15 contribution is among the top players in the global operations, and it has served as an important task for many international standards organizations, and the international voice rights in the field of information communication continue to increase. We will steadily push forward the network transformation and upgrade, and actively develop 5G network test and business application demonstrations, accelerate the NFV/SDN technology to mature, and realize the NB-IoT core network virtualization commercialization.

Industrial change

At present, the macro environment and industrial development are undergoing four accelerated transformations. First, the economy has accelerated from high-speed growth to high-quality development. Second, information and communication technologies have accelerated the transformation from the basic driving force for economic development to the core engine for economic development. It is the transformation of basic telecommunications business from scale operation to scale-based value management. Fourth, the information and communication market is accelerating from “factor” competition to “factor + capability” competition.

The opportunities and challenges of the company’s development are coexisting.

The further development of 5G will accelerate the key infrastructure for promoting economic and social digital transformation; the integration of artificial intelligence, big data and other innovations will continue to escalate, ubiquitous connectivity, perceptual ubiquity, and intelligent ubiquity will accelerate the evolution; consumer-oriented Internet is moving toward individuals Industrial Internet expansion represented by Industrial Internet. All of these give us a historical opportunity to continue to make large connections, make strong connections, and do excellent connectivity services.

Outlook for 2019

The practitioner is far away. In the new year, we will firmly believe in the strategy, maintain strategic determination, accelerate innovation, deepen cooperation, and strive to create new high-quality development advantages.

The first is to deepen the integration and development, and to consolidate the position.

The second is to promote the cost reduction and strengthen the fine management.

The third is to enhance customer service and ensure that customers are satisfied.

The fourth is to persist in the innovation drive, and to improve the development capability.

The fifth is to promote the reform and land, and further strengthen the physical mechanism.

2019 is the foundation year for the 5G information society, and it is also the key year for the company to strive to achieve the strategic goal of “big connection”. We will do our utmost to repay the trust of the vast investors, create better performance, and return to the trust of the shareholders. Under the expectation of the policy environment, the company will make efforts to achieve a total connection scale of over 2 billion in 2019, a good growth in communication services, and a steady increase in profit and profit.