Riding on the Trend

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Riding on the Trend China Mobile Limited Stock Code: 941 Riding on the Trend ANNUAL REPORT 2017 Theme Digital technology is fuelling China’s economic transformation and social progress, changing the way that people think, work and live. The ICT sector is integral to this and experiencing a period of accelerated revolution, giving rise to cross-discipline integration and spurring innovation. In this new digital era, China Mobile will not only understand the trends but will stay ahead of them. We will adopt a macroscopic approach to strategic planning in order to drive the vital developments in the industry. FORWARD-LOOKING STATEMENTS Certain statements contained in this annual report may be viewed as “forward- looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from those implied by such forward-looking statements. In addition, the Company does not intend to update these forward-looking statements. Further information regarding these risks, uncertainties and other factors is included in the Company’s most recent Annual Report on Form 20-F filed and other filings with the U.S. Securities and Exchange Commission. Contents 2 Milestones 56 Report of Directors 4 Corporate Information 63 Notice of the Annual General Meeting 5 Financial Highlights 65 Independent Auditor’s Report 6 Company Profile 71 Consolidated Statement of Comprehensive Income 8 Biographies of Directors and Senior Management 73 Consolidated Balance Sheet 14 Chairman’s Statement 75 Consolidated Statement of Changes in Equity 22 Corporate Recognitions 76 Consolidated Statement of Cash Flows 26 Business Review 78 Notes to the Consolidated Financial Statements 34 Financial Review 134 Financial Summary 39 Corporate Governance Report 55 Human Resources Development 2 China Mobile Limited Milestones JANUARY 2017 JUNE 2017 “The TD-LTE key technology and application for 4G • Released IoT Development Plan and established project” won the Outstanding Prize in the National the China Mobile IoT Alliance Science and Technology Progress Awards • Innovative R&D and deployment of UAV base stations • Released the world’s smallest eSIM NB-IoT MAY 2017 module Initiated the establishment of China Mobile Digital Home Alliance, building a new industrial ecosystem AUGUST 2017 Announced a special dividend of HK$3.200 per share celebrating the 20th anniversary of IPO Annual Report 2017 3 MILESTONES NOVEMBER 2017 Announced the “1-3-9 Cooperative Initiatives” including one brand-new network, three industry alliances and nine capacity applications, facilitating industry development DECEMBER 2017 • Led and completed the first edition of international standard for 5G architecture • Launched MVNO (mobile virtual network operator) service in the UK • Launched NB-IoT in 346 cities, achieving end- to-end scale commercial use 4 China Mobile Limited Corporate Information BOARD OF DIRECTORS COMPANY SECRETARY AMERICAN DEPOSITARY RECEIPTS DEPOSITARY Executive Directors Ms. WONG Wai Lan, Grace Mr. SHANG Bing (FCS, FCIS) BNY Mellon Shareowner Services (Executive Director & Chairman) P.O. Box 30170 Mr. LI Yue AUDITORS College Station, TX 77842-3170 (Executive Director & Chief USA Executive Officer) PricewaterhouseCoopers Mr. SHA Yuejia PricewaterhouseCoopers Overnight Correspondence: (Executive Director & Zhong Tian LLP BNY Mellon Shareowner Services Vice President) 211 Quality Circle, Suite 210 Mr. DONG Xin LEGAL ADVISER College Station, TX 77845 (Executive Director, USA Vice President & Sullivan & Cromwell (Hong Kong) Tel: 1-888-269-2377 Chief Financial Officer) LLP (toll free in USA) 1-201-680-6825 Independent Non-Executive REGISTERED OFFICE (international call) Directors Email: shrrelations@cpushareowner Mr. Frank WONG Kwong Shing 60/F, The Center services.com Dr. Moses CHENG Mo Chi 99 Queen’s Road Central Website: www.mybnymdr.com Mr. Paul CHOW Man Yiu Hong Kong Mr. Stephen YIU Kin Wah PUBLICATIONS PUBLIC AND INVESTOR PRINCIPAL BOARD RELATIONS As required by the United States COMMITTEES securities laws and regulations, the Tel: 852 3121 8888 Company shall file an annual report Audit Committee Fax: 852 2511 9092 on Form 20-F with the US SEC Mr. Frank WONG Kwong Shing Website: www.chinamobileltd.com before 30 April each year. Copies of (Chairman) Stock code: (HKEX) 941 the annual report of the Company Dr. Moses CHENG Mo Chi (NYSE) CHL as well as the annual report on Form Mr. Paul CHOW Man Yiu 20-F, once filed, will be available at: Mr. Stephen YIU Kin Wah CUSIP Reference Number: 16941M109 Hong Kong: Remuneration Committee China Mobile Limited Dr. Moses CHENG Mo Chi SHARE REGISTRAR 60/F, The Center (Chairman) 99 Queen’s Road Central Mr. Frank WONG Kwong Shing Hong Kong Registrars Limited Hong Kong Mr. Paul CHOW Man Yiu Shops 1712–1716, 17/F Hopewell Centre The United States: Nomination Committee 183 Queen’s Road East BNY Mellon Mr. Paul CHOW Man Yiu (Chairman) Wanchai 101 Barclay Street, 22/F Mr. Frank WONG Kwong Shing Hong Kong New York, NY 10286 Dr. Moses CHENG Mo Chi USA Annual Report 2017 5 Financial Highlights 2017 2016 Operating revenue (RMB million) 740,514 708,421 Of which: Revenue from telecommunications services (RMB million) 668,351 623,422 EBITDA1 (RMB million) 270,421 256,677 EBITDA margin2 36.5% 36.2% EBITDA as % of revenue from telecommunications services 40.5% 41.2% Profit attributable to equity shareholders (RMB million) 114,279 108,741 Margin of profit attributable to equity shareholders3 15.4% 15.3% Basic earnings per share (RMB) 5.58 5.31 Dividend per share – Interim (HK$) 1.623 1.489 – Final (HK$) 1.582 1.243 – Special dividend (HK$) 3.200 – – Full year (HK$) 6.405 2.732 Operating Revenue Revenue from Telecommunications Services (RMB million) (RMB million) 2017 740,514 2017 668,351 2016 708,421 2016 623,422 EBITDA Profit Attributable to Equity Shareholders (RMB million) (RMB million) 2017 270,421 2017 114,279 2016 256,677 2016 108,741 1 The Company defines EBITDA as profit for the year before taxation, share of profit of investments accounted for using the equity method, finance costs, interest income, other gains, depreciation and amortization of other intangible assets. 2 EBITDA margin = EBITDA/Operating revenue 3 Margin of profit attributable to equity shareholders = Profit attributable to equity shareholders/Operating revenue 6 China Mobile Limited Company Profile China 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 of Hong Kong Limited (“HKEX” or the “Stock Exchange”) on 22 October 1997 and 23 October 1997, respectively. The Company was admitted as a constituent stock of the Hang Seng Index in Hong Kong on 27 January 1998. As the leading telecommunications services provider in Mainland China, the Group provides full communications services in all 31 provinces, autonomous regions and directly-administered municipalities throughout Mainland China and in Hong Kong Special Administrative Region, and boasts a world-class telecommunications operator with the world’s largest network and customer base, a leading position in profitability and market value ranking. Its businesses primarily consist of mobile voice and data business, wireline broadband and other information and communications services. As of 31 December 2017, the Group had a total of 464,656 employees, 887 million mobile customers and 113 million wireline broadband customers with its annual revenue exceeding RMB740 billion. The Company’s ultimate controlling shareholder is China Mobile Communications Group Co., Ltd. (formerly known as China Mobile Communications Corporation, “CMCC”), which, as of 31 December 2017, indirectly held approximately 72.72% of the total number of issued shares of the Company. The remaining approximately 27.28% was held by public investors. In 2017, the Company was once again selected as one of “The World’s 2,000 Biggest Public Companies” by Forbes magazine, and recognized again on the Dow Jones Sustainability Emerging Markets Index. Currently, the Company’s corporate credit ratings are equivalent to China’s sovereign credit ratings, namely, A+/Outlook Stable from Standard & Poor’s and A1/Outlook Stable from Moody’s. Annual Report 2017 7 COMPANY PROFILE China Mobile Organizational Structure and Majority Shareholding * as at 31 December 2017 * Except those indicated, the rest are wholly-owned China Mobile Communications Group Co., Ltd China Mobile (Hong Kong) Group Limited China Mobile Hong Kong (BVI) Limited 72.72% Public shareholders 27.28% China Mobile Limited 66.41% China Mobile China Mobile Aspire Holdings Ltd. (Shenzhen) Ltd. Communication Co., Ltd China Mobile China Mobile Hong Kong Co., Ltd. International Ltd. 31 Provincial China Mobile Group Design operating subsidiaries Institute Company Limited China Mobile Investment China Mobile IoT Co., Ltd. Holdings Co., Ltd. China Mobile Online China Mobile (Suzhou) Services Co., Ltd. Software Technology Co., Ltd. China Mobile (Hangzhou) MIGU Co., Ltd. Info Technology Co., Ltd. China Mobile Internet Co., Ltd. China Mobile Tietong Co., Ltd. 0.03% China Mobile Group 52.44% China Mobile Group 8.00% Device Co., Ltd. 99.97% Finance Co., Ltd. China Mobile Group Beijing Co., Ltd. holds 39.56% 8 China Mobile Limited Biographies of Directors and Senior Management EXECUTIVE DIRECTORS Mr. SHANG Bing Mr. LI Yue Age 62, Executive Director and Chairman of the Age 58, Executive Director and Chief Executive Officer Company, in charge of the overall management of the of the Company, in charge of the operation, strategic Company, joined the Board of Directors of the Company development as well as planning and construction of the in September 2015. He is currently the Chairman Company, joined the Board of Directors of the Company of CMCC and a director and the Chairman of CMC.
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