#1JATAY ter Connectivity + Computing Force + Ability 中国移动 China Mobile 2022 Interim Results 2022.8.11 中国移动有限公司 China Mobile Limited www.chinamobileltd.com#2Disclaimer This document does not constitute an offer or invitation to purchase or subscribe for any securities or financial instruments of China Mobile Limited (the "Company") or the rendering of any investment advice, and no part thereof shall be relied upon or taken as the basis of any contract, commitment or investment decision relating to such securities or financial instruments, and this document does not constitute a recommendation in respect of the securities or financial instruments of the Company. In addition, the forward-looking statements contained in this document relating to the Company's future plans, development strategies and other matters do not constitute, and should not be construed as, commitments by the Company. Investors are advised to pay attention to the investment risks. Unless otherwise stated, the financial data contained in this document have been prepared in accordance with International Financial Reporting Standards ("IFRS"). For detailed financial statements of the Company prepared in accordance with IFRS, please refer to the Company's disclosure document published on the website of The Stock Exchange of Hong Kong Limited. Certain statements contained in this document 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 China Mobile Limited (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 the above 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. 中国移动 China Mobile 2#3Agenda 01 02 03 Overall Results Operating Performance Financial Performance 中国移动 China Mobile 3#401 Overall Results Mr. YANG Jie Executive Director & Chairman 中国移动 China Mobile 4#5Performance Highlights 1 Maintained a favourable trend in operating performance; marked new milestones on the journey to achieve high-quality development 2 Further promoted value-oriented operations with significant results; transformation business gained strong growth momentum 3 4 Accelerated the development of digital-intelligent new infrastructure; continued to enhance sci-tech and innovation capabilities Extended enterprise reforms in greater breadth and depth; strengthened open cooperation to achieve mutual benefits Attach utmost importance to shareholder returns; 5 share the fruits of digital-intelligent transformation 6 Strive to tap into enormous opportunities in the blue-ocean digital economy; aspire to become a world-class enterprise 中国移动 China Mobile 5#6Key Performance Indicators (RMB Mil) 1H2021 1H2022 Change YoY Operating revenue 443,647 496,934 12.0% of which: telecommunications 393,215 426,417 8.4% service revenue EBITDA 161,988 173,912 7.4% EBITDA margin 36.5% 35.0% -1.5pp Net profit 59,118 70,275 18.9% Net profit margin Basic earnings per share (RMB) Note: Unless otherwise specified, 13.3% 14.1% 0.8pp 2.89 3.29 14.1% 1. Telecommunications service revenue = operating revenue-revenue from sales of products and others; revenue from sales of products and others mainly comprises sales of terminal products such as handsets 2. EBITDA = profit from operations + depreciation and amortisation; net profit refers to profit attributable to equity shareholders of the Company 中国移动 China Mobile 6#7Maintained a Favourable Trend in Operating Performance; Marked New Milestones on the Journey to Achieve High-quality Development 中国移动 China Mobile Revenue maintained double-digit growth Net profit achieved rapid growth Growth in operating revenue Growth in net profit 3.0% 10.4% +12.0% 2020 2021 1H2022 1.1% 2020 7.7% 2021 +18.9% 1H2022 Note: Net profit in 1H2022 increased by 7.3% YoY after excluding the impact of the adjustment to the residual value rate in the same period last year Return on equity showed continuous improvement Return on equity (ROE) 9.8% 9.5% 2020 2021 +1.5pp 11.3% 1H2022 Note: ROE of 1H2022 is annualised 7#8Further Promoted Value-oriented Operations with Significant Results; Transformation Business Gained Strong Growth Momentum CHBN revenue growth (%) 2020 2021 1H2022 As % of service revenue (%) +36.5% CHBN revenue grew across-the- board +18.7% +24.6% 25.8 34.2 +0.2% 20.8 21.4 20.0 Proportion of HBN revenue continued to increase 1.4 -2.8 -7.9 "Customer" market "Home" market "Business" market "New" market "Customer" market "Home", "Business" & "New" markets 68.6 64.3 LH 31.4 35.7 +4.3pp 60.0 40.0 2020 2021 1H2022 Breakdown of digital transformation revenue by market Digital transformation revenue (RMB Bil) Digital transformation revenue as % of service revenue (%) Broke new ground in the information services market +39.2% Digital transformation revenue Up by 5.7pp YoY 110.8 Key revenue growth driver 79.7 1H2021 1H2022 Others 26.0% 74.0% 13.1 13.3 12.9 1H2022 60.7 "Customer" market "Home" market 中国移动 China Mobile "Business" market "New" market Note: Digital transformation revenue includes the revenues from new businesses from the "Customer" market (such as Mobile Cloud Drive), the revenues from smart home value- added businesses from the "Home" market, the revenues from DICT, IoT and dedicated lines businesses from the "Business" market and the revenue from the "New" market 8#9Mobile Cloud Fast Becoming a Top-Tier Player 5元 移动云 中国移动 China Mobile Very rapid growth in revenue to C&H Increasing industry influence to B RMB 23.4 Bil Mobile Cloud Drive Industry NO.2 Public cloud Top 7 Dedicated cloud Monthly active customers > 140 Mil 103.6% 15 places vs 2019 Public admin VS Revenue RMB 2.9 Bil ▲131% Resource iteration and upgrade Server resources doubled 5 3AZ high-quality resource pools Over 600 edge nodes Top 4 cloud (operations) Top 3 China's First OpenStack SuperUser, contribution of Ceph ranked NO.3 Proprietary product development capability supported market expansion Proprietary products with high security and controllability Fourth-generation mobile cloud main server Million IOPS cloud drive EB-level storage with high reliability Integrated cloud-network- edge computing capabilities Proprietary "Tianchi" network Computing network brain system, computing force trading Edge cloud products Signed>3,500 cloud services major contracts, generating revenue of > RMB 13 Bil Delivered >1,100 cloud migration projects for state-owned enterprises, generating revenue of > RMB 3 Bil Public admin cloud Healthcare Education cloud cloud Video Park cloud cloud Desktop cloud 9#10Accelerated the Development of Digital-intelligent New Infrastructure CAPEX (RMB Bil) 185.2 183.6 86.0 92.0 中国移动 China Mobile 5G Commissioned a cumulative of 1Mil 5G base stations with an addition of more than 250k Plan to put in use a cumulative of >1.2 Mil 5G base stations by year-end Of which: 300k are 700MHz base stations First operator to commercialise VoNR with a full-fledged upgrade to 5GtoB core network capabilities Co-construction and sharing Multi-band coordination Centralised and efficient operations Omnipresent intelligence Computing force network 2021 2022E 1H CAPEX A cumulative of 593k cloud servers commissioned A cumulative of 429k IDC cabinets available for external use 1H22 (Actual) FY22 (Planned) Plan to deploy a cumulative of >660K cloud servers 450k DC cabinets available by year-end Backbone nodes of the eastern and western computing hubs realised full interconnection, SD-WAN network achieved full coverage for external use 112k 22k Intelligent interconnection Seamless cloud-network connection Diversified computing forces Green and low carbon 66.2 123.1 Major CAPEX (RMB Bil) Connectivity Of which: 5G-related 58.7 110.0 Computing force 20.0 48.0 Abilities Smart mid-end platform Built a smart mid-end platform as industry benchmark, accelerated the "cloud migration and digital-intelligent transformation" of the whole society 5.0 12.3 Average number of Mid-end platform capabilities pooled 476 items deployments per month >11 Bil times 61.5% 10#11Continued to Enhance Sci-tech and Innovation Capabilities Improved top-level design of technological innovation Policy Support Overall Action Sufficient motivation planning guidelines "T-H-T" expert system Innovative management system Jiutian Scientific Research "Special Zone" Model enterprise for technology reform New R&D institutions with diversified investment entities Continuously increased R&D investment R&D Investment RMB 8.2 Bil 20.3% Address company strategy Address new market driving forces Focused on key areas and allocated resources using a scientific approach Development of CHBN products Critical technological breakthroughs Fundamental research on applications Assumed a principle role in driving innovation Successfully concluded the first-stage development of critical and core technologies 5G innovation consortia continued to expand, forming a cross-disciplinary alliance consisting of a number of leading enterprises to achieve breakthroughs Established an expert committee with fellows of academies as its core members to advance leadership in the industrial chain, and launched our "101-102-103-104" industry partnership Strove to develop advanced and original technologies centring around two key areas 5G and next-generation mobile communications next-generation Al • 中国移动 China Mobile An industry leader in patents and standard-setting Owned more than 11k authorised invention patents, sitting comfortably in the group of top-tier global operators Led a cumulative of 177 5G international standard-setting projects Number of 5G R18 projects ranked the first among global operators Accelerated the setting of CFN standards and established the first CFN open-source community in the world Rapid enhancements to critical digital-intelligent capabilities Launched a range of products on Al platform; more than 100 capabilities were converted into applications to empower network, customer services, public administration and other areas Proprietary loT operating system and enhanced fourth-generation mobile cloud main server boasted industry-leading performance in China Launched the "CMBaaS" integrated brand, empowering supply chain financing, carbon accounting and other key areas 11#12Extended Enterprise Reforms in Greater Breadth and Depth; Strengthened Open Cooperation to Achieve Mutual Benefits Advanced system reforms and organisational evolution Continuously drove the "Double Hundred Action" and further implemented "National Technology Enterprise Reform Program", and added three subsidiaries to the program Launched two key pilot reform programs to support technological research and develop specialised, premium, unique and new products and capabilities. The reforms at the policy level helped stimulate creativity and entrepreneurship Further optimised incentive mechanisms, tailor made incentive policies taking into consideration the unique characteristics of each business to orderly promote medium to long-term incentives Established a pan-terminal and omni-channel direct sales system, deepened grid-based reforms and refined the system supporting the go-to-market initiatives in "Business" market Xinsheng Tech completed its mixed-ownership reforms successfully and achieved breakthroughs Introduction of strategic investors Employee share ownership scheme Fostered open cooperation and ecosystem construction Proactively formed and deepened strategic partnerships with local governments, enterprises and public institutions, creating cross- disciplinary synergy in information services Strove for favourable policy support Continued to strengthen collaborative ecosystem Pooled competitive advantages of the industry Achieved significant results in coordinated development Promoted the "Joint Innovation Plus" R&D cooperation system, expanded cooperation channels between national platforms and tertiary organisations, explored new models of joint R&D initiatives with enterprises Optimised investment strategy to create more synergy within the industry and expanded the digital ecosystem by drawing on the new information service system which features connectivity, computing force and abilities Partners for joint-Innovation >1,400 partners Partners for joint-DICT ecosystem development >10k partners 中国移动 China Mobile 12#13Attach Utmost Importance to Shareholder Returns; Share the Fruits of Digital-Intelligent Transformation Note: Dividend per share (HKD) 1.63 34.9% 2.20 2022 Dividend Policy To create higher returns for our shareholders and share the results of our operating gains, after giving full consideration to the Company's profitability, cash flow condition and future development needs, the Company has decided to pay HK$2.20¹ per share for the 2022 interim dividend, representing an increase of 34.9% year-on-year. 2022 full-year dividend payout ratio will further increase from that of the previous year. The profit to be distributed in cash for 2023 will gradually increase to 70% or above of the profit attributable to equity shareholders of the Company² for that year. 1H2021 1H2022 1. 2. Dividends for A-shares will be paid in Renminbi in the amount of RMB1.8942 per share, applying an exchange rate of HK$1 to RMB0.861004, which is equal to the average central parity rate between Hong Kong dollars and Renminbi announced by the People's Bank of China in the week before the Board declared the interim dividend The base of the Company's profit distribution is the profit attributable to equity shareholders under International Financial Reporting Standards 中国移动 China Mobile 13#14Strive to Tap into Enormous Opportunities in the Blue-ocean Digital Economy; Aspire to Become a World-class Enterprise 中国移动 China Mobile Information network Critical foundation Information Digital Economy Information technology Major driver Data Core element Information Integration and innovation Key strategic elements Accelerate the crafting of "Two New Elements" Systematically create a new information infrastructure centring around 5G, computing force network and smart mid-end platform Innovatively build a new information service system of "connectivity + computing force abilities" G Computing force Market size and GDP proportion of China's digital economy (RMB in trillion) Industry digitalisation Digital industrialisation CAGR > 10% > 65.0 45.5 39.2 37.2 31.7 7.5 8.3 2020 2021 2025F 38.6% 39.8% Note: The data above is sourced from the MIIT and the CAICT • >50% (g" Connectivity Ubiquitous 5G network present computing CFN Omnipotent intelligence AaaS Abilities "Two advancements" Advance the construction of information infrastructure Advance the digital-intelligent transformation of the whole society "Two integrations" Accelerate the integration and innovation of information technology Accelerate the in-depth integration of information technology into the economy, society and people's livelihoods 14#1502 Operating Performance Mr. DONG Xin Executive Director & CEO 中国移动 China Mobile 15#16Composition of CHBN Revenues (RMB Mil) Service revenue 中国移动 China Mobile As % of 1H2022 Change YoY service revenue 426,417 8.4% 100.0% C: "Customer" market revenue 256,056 0.2% 60.0% of which: wireless data traffic 203,064 -0.2% 47.6% H: "Home" market revenue 59,434 18.7% 13.9% of which: smart home value-added business revenue 14,238 41.1% 3.3% B: "Business" market revenue 91,070 24.6% 21.4% of which: DICT 48,174 44.2% 11.3% of which: Industry cloud 18,853 93.9% 4.4% N: "New" market revenue 19,857 36.5% 4.7% of which: international business 8,057 19.3% 1.9% digital content 11,591 50.6% 2.7% 16#17"Customer" Market Integrated operation engendered stable-to-rising growth "Customer" market revenue (RMB Mil) 253,723 1H2020 0.7% 255,545 256,056 0.2% 1H2021 Mobile customers 5G package customers Mobile ARPU (Mil) 5G network customers reached 263 Mil (RMB/user/month) 55.99 Mil 970 957 942 +12.96 Mil 387 165 1H2022 2020 2021 Focus on both scale and quality of 5G development 511 1H2022 50.3 1H2020 3.8% 52.2 0.2% 1H2021 Integrated operation of customer benefits and products yielded notable results 中国移动 China Mobile 52.3 1H2022 Dual uplift in customer scale and income related to benefits Key products with industry-leading customer scale No.1 5G package customers penetration rate 52.7% ▲ 12.3pp Customers with benefits 241 Mil R TWIT 快游 MIGU 50.7 Mil 5G ARPU RMB 85.0 Video Connecting Tones MIGU Cloud XR Cloud Games Mobile Reading Authentication Income generated RMB 8.33 Bil 5G DOU 21.5 GB from benefits ▲ 119.6% Products with over 100Mil customers 10 items 17#18"Home" Market Value orientation drove rapid business expansion "Home" market revenue (RMB Mil) 37,437 33.7% 50,052 18.7% 中国移动 China Mobile Household broadband customers Household customer blended ARPU (Mil) (RMB/user/month) "Mobaihe" penetration rate 59,434 1H2020 1H2021 1H2022 Smart home value-added business revenue (RMB Bil) 10.1 230 218 +12.41Mil 192 78.4% 76.8% 73.3% 2020 2021 Leadership in broadband services, driven by gigabit broadband Gigabit broadband customer penetration rate +41.1% 14.2 11.5% 1H2021 1H2022 4.4.pp Gigabit broadband net-add as % of overall household broadband customer net-add >88% 1H2022 Leadership in TV services, driven by content 43.0 41.1 35.4 4.6% 16.2% 1H2020 1H2021 1H2022 Leadership in smart home services, driven by innovation "Mobaihe" Customers "Mobaihe" Revenue 181 Mil 13.26 Mil RMB 12.1 Bil ▲27.7% smart home network Customers deploying 86.6% Customers using home security services 136.2% Customers using "big- screen" VoD services HDICT (home data, information and communications technology solutions) leading showcases 139.3% 1,667 item 18#19"Business" Market Bolstered capabilities fueled strong momentum "Business" market revenue Scale development of 5G vertical industry applications (RMB Mil) 73,074 55,204 24.6% 1H2020 32.4% Corporate customers (Mil) 13.84 > RMB 16 Bil 中国移动 China Mobile Comprehensive plan for Internet of Vehicles market (to V) >195 Mil 300 Leading 5G showcases loV connections 1H2022 5G DICT Contract Value 91,070 Cumulated number of agreements signed related to 5G industry commercial projects >11,000 Of which: lov factory-installed connections >25Mil Smart factories Smart mines >1,200 >260 Smart grid >230 Smart ports Covering top10 container ports Smart hospitals Smart parks Partnered medical institutions >1,300 223% >1,100 >150 1H2021 1H2022 Industry cloud (RMB Bil) +93.9% 21.12 18.83 18.9 9.7 +2.29Mil Very rapid growth in industry cloud revenue 1H2022 5G Dedicated network revenue Private cloud Industry-leading product richness Self-developed laaS, PaaS, SaaS >210 types products 40% 60% Joint SaaS products >2,300 types Public cloud 1H2021 1H2022 Constructed the world's largest high- precision positioning system Number of cooperative vehicle infrastructure showcase projects implemented Expansion of digital government market (to G) Public administration informatisation solutions Serving nearly 200 cities across 27 provinces in China Crafted an image of "digital government solutions expert" Notable results in landmark digital government solutions projects 2020 2021 1H2022 IDC Revenue RMB 14.7 Bil ▲ 24.5% ICT Revenue RMB 10.9 Bil ▲35.5% Key products Accelerated Cloud "and- "and- High-precision development Video Intercom" Surveillance" positioning 5G smart cloud exam halls 19#20"New" Market Innovative strategy supported very rapid growth "New" market revenue (RMB Mil) 11,866 22.6% 14,544 36.5% 19,857 1H2020 1H2021 1H2022 中国移动 China Mobile International business International / Hong Kong, Macau and Taiwan roaming services covered 264 locations and 5G covered 58 locations, leading the world Upgraded global network deployment on "Information Highway, Information Station and Information Island" Total international transmission bandwidth 116 Tbps Overseas 227 POP points Digital content ☑1 Migu И Video OO Monthly active customers 72.5% across all platforms Continued to build a leading content ecosystem centring around sports Video Q Connecting Customers Tones > 290 Mil Cloud Monthly active customers 快游 Games across all platforms ▲ 149.4% Non-domestic 9,600 self-owned IDC cabinets Internet finance Equity investment (RMB Mil) 1H2022 Change YOY Scale of the financial service platform along the industrial chain International Value contribution Ecosystem formation 8,057 19.3% Industry-investment synergy business Digital ~RMB 30 Bil 157% 11,591 50.6% Nurtured a digital-intelligent industry ecosystem via the dual connection of "industry + capital" content Internet 209 124.7% Monthly "and-Wallet” active 197.9% CFN Industrial Internet ΑΙ finance customers loT Network security Financial technology 20#21Placed Emphasis on Customers and Achieved Comprehensive Enhancement to Operational Quality Achieved a breakthrough in channel transformations All-round improvement in operational efficiency of sales alliance Worked together with up-and-downstream partners along the industry chain 5G terminal manufacturers + distributors 1H22 Pan-terminal sales volume of sales alliance >48Mil Effectively promoted the popularity of 5G terminals Further increase in industrial influence 80 Expansion of new channels yielded remarkable results Steadily promoted the construction of an Internet-oriented marketing system Actively developed cross-industry and pan-channel cooperation Optimisation and upgrade of grid-based operations Articulated standard operating procedures for key business scenarios Enhanced efficiency and satisfaction of front-line operations Innovation and upgrade of brand operation Accelerated brand promotion with 5G as the key leverage GoTone's customers nearly 170Mil M-zone customers nearly 67Mil Precise operation to enrich brand connotation and image Forged brand differentiation advantages centring around products, scenarios and activities 全球通 Exclusivity: Exclusive privileges, health, culture, charity activities ZONE 可隨部 Trendiness: Trendy gadgets and feature events for specific groups Continuous improvement of service quality High quality network perception High performance product experience High efficiency touchpoint service Intelligent upgrade of 10086 integrated portal Integrated service of "see, hear, speak and touch" www. 10086.CN Monthly service volume of video customer services in June 2022 > 130Mil times Company-level, digital-intelligent platform to enhance and manage customer perception, the first of its kind in the industry In-depth insight Stars |神州行 | Forward- Perception 大音平台 DAYIN PLATFORM looking alert restoration Popularity: Convenient services, warm-hearted 心级服务 "Heartwarming Service" brand 让爱连接 Enhanced efficiency of 中国移动 China Mobile technological empowerment Improved efficiency of network operations Energy conservation by energy-saving technology utilised at base stations >180Mil kWh Intelligent management of dumb resources saved an estimate of 760k man-days per annum Improved online customer satisfaction driven by Internet complaint self-service robot Improved efficiency of products and services Average monthly service volume of intelligent interaction technology exceeded 100Mil times, service efficiency significantly improved Intelligent recommendation empowered digital- intelligent operation of big screen VoD, subscription conversion by more than 70% Improved efficiency of management support By launching intelligent card activation verification service, manpower was reduced by 1,929 man-years By empowering contract management and examination, efficiency was enhanced by 54% community activities Note: 1. Sales alliance refers to China Mobile pan-terminal and omni-channel sales alliance Extensive promotion of the 2. Dumb resources refer to equipment resources that are not powered on and cannot automatically report relevant information to the network management system, such as optical delivery boxes, optical splitters, optical fibre pipelines, poles, etc. 21#22Strive to Achieve 2022 Full-year Targets Major plans for 2H2022 • Focus on quality improvements and strive to achieve. full-year targets 中国移动 China Mobile Achieve favourable growth in telecommunications service revenue and net profit 5G network customers Net addition of 130Mil 5G quality Operating quality Product quality C Service quality Management quality Mobile ARPU • Accelerate the capacity forging and solidify the foundation for future development Household broadband customers Stable and healthy growth Net addition of 20Mil Technology innovation Computing force & network operation & maintenance H Product integration Business delivery Household customer blended ARPU Favourable growth Data application Talent team Operating quality Corporate customers Net addition of 3Mil Optimise the collaboration between headquarters, B regional companies and specialised teams to Mobile cloud generate greater synergy for the Company Become a top-tier player in the industry Reinforce risk prevention and control to ensure compliance and healthy operation N "New" market revenue Significant growth 22#2303 Financial Performance Mr. LI Ronghua Executive Director & CFO 中国移动 China Mobile 23#24Financial Highlights 中国移动 China Mobile (RMB Mil) 1H2021 1H2022 Change YoY Operating revenue 443,647 496,934 12.0% Telecommunications service revenue 393,215 426,417 8.4% Sales of products and other revenue 50,432 70,517 39.8% Operating expenses 381,131 422,486 10.9% Profit from operations 62,516 74,448 19.1% Interest and other income 7,367 8,859 20.3% Income from investments 6,527 6,195 -5.1% accounted for using the equity method EBITDA 161,988 173,912 7.4% Net profit 59,118 70,275 18.9% 24#25Revenue Growth Overview: Revenue Related to Business Transformation Continued to Increase Breakdown of revenue growth of telecommunications services - by business Breakdown of revenue growth of telecommunications services - by CHBN (RMB Mil) -0.1pp +1.8pp +7.3pp -0.6pp +8.4% (RMB Mil) 426,417 393,215 -203 -2,143 393,215 268 6,968 28,701 -389 中国移动 China Mobile +0.1pp +2.4pp +4.6pp +1.3pp +8.4% 426,417 5,313 17,996 9,382 511 1H2021 Wireless Wireline Applications SMS Voice Others 1H2022 1H2021 data traffic broadband & information services & MMS "Customer" market "Home" market "Business" market "New" market 1H2022 25#26Cost Control Overview: Maintaining Good Cost Control (RMB Mil) Operating expenses 1H2021 1H2022 Change YoY Major reasons / remarks 381,131 422,486 10.9% Network operation and 121,146 138,194 14.1% support expenses Depreciation and 99,472 99,464 0.0% Amortisation Employee benefit and 55,910 63,934 14.4% related expenses Selling expenses 30,389 26,182 -13.8% 中国移动 China Mobile Accelerated construction and commissioning of new information infrastructure, and increased investments to support business transformation Among which, maintenance and supporting expenses amounted to RMB87.1bil, up by 22.6%; energy consumption expenses amounted to RMB25.2bil, up by 3.5% The scale of assets increased due to accelerated network upgrades and business transformation Adjustments were made to the residual value of certain assets in the same period last year More resources were spent on R&D talents in the fields of 5G and AICDE, and management talents for the "business" and "new" markets Enhanced online sales and service capabilities resulting from accelerated transformation of sales channels Cost of products sold 50,042 68,900 37.7% Handset sales grew significantly as 5G handsets were available with more varieties and at more affordable prices Other operating expenses 24,172 25,812 6.8% Increased investments in R&D and innovation but strictly controlled administrative and business entertainment expenses of which: Interconnection 9,796 10,676 9.0% 26#27Profit Overview: Profit Continued to Increase EBITDA (RMB Mil) 173,912 161,988 7.4% 41.2% 36.5% 1H2021 EBITDA margin 中国移动 China Mobile Net profit (RMB Mil) Net profit increased by 7.3% YoY after excluding the impact of the adjustment to the residual value of certain assets in the same period last year 70,275 18.9% 59,118 40.8% 2.89 35.0% 1H2022 EBITDA / telecommunications service revenue 1H2021 3.29 1H2022 Basic earnings per share (RMB) 27#28Cash Flow Overview: Favourable Cash Flow Net cash generated from operating activities (RMB Mil) Free cash flow (RMB Mil) 161,618 147,272 1H2021 1H2022 75,593 1H2021 55,225 1H2022 Note: Free cash flow = net cash generated from operating activities - capital expenditure incurred 中国移动 China Mobile 28#29Capital Structure Overview: Maintaining Stable and Healthy Capital Structure (RMB Mil) Shareholder's equity Interest-bearing debt Total book capitalisation 2021.12.31 2022.06.30 1,206,350 1,283,466 1,283,466 34.3% 32.6% Liabilities-to-assets ratio 1,206,350 Cash & bank deposits 342,201 369,498 S&P, Moody's: Corporate credit ratings are equivalent to China sovereign ratings 中国移动 China Mobile 29#30Continue to Create Greater Value Double-digit growth in revenue and profit ✓ Abundant cash flow ✓ Effective cost control ✓ Stable and healthy capital structure 1H2022 2H2022 中国移动 China Mobile Further deepen value-oriented operating practices and strengthen centralised management, ensuring the attainment of full-year performance targets Continue to further improve management of funds, assets and capital efficiency, stimulating the Company's vitality in value creation Further strengthen risk management and control, ensuring sustainable and healthy development 30#31Q & A For more information, please contact: Investor Relations Department: [email protected] Or visit the Company's website: www.chinamobileltd.com#32Extracts from Unaudited Consolidated Statement of Comprehensive Income for the Six Months Ended 30 June 2022 - Appendix I 中国移动 China Mobile (RMB Mil) 1H2021 1H2022 (RMB Mil) 1H2021 1H2022 Operating revenue 443,647 496,934 Selling expenses 30,389 26,182 Revenue from telecommunications 393,215 426,417 Cost of products sold 50,042 68,900 services of which: Voice services 40,849 38,706 Other operating expenses 24,172 25,812 SMS & MMS 16,481 16,278 Wireless data traffic 208,581 208,192 Profit from operations 62,516 74,448 Wireline broadband 47,200 54,168 Other gains 2,707 3,076 Applications and 69,287 97,988 Interest and other income 7,367 8,859 information services Others 10,817 11,085 Finance costs (1,421) (1,229) Revenue from sales of products and Income from investments accounted 50,432 70,517 6,527 6,195 others for using the equity method Taxation (18,510) (21,012) Operating expenses 381,131 422,486 Network operation and support 121,146 138,194 Profit for the period 59,186 70,337 expenses Depreciation and amortisation 99,472 99,464 Equity shareholders of the Company 59,118 70,275 Employee benefit and related 55,910 63,934 Non-controlling interests 68 62 expenses 32#33Extracts from Unaudited Consolidated Balance Sheet as at 30 June 2022 - Appendix II 中国移动 China Mobile (RMB Mil) 2021.12.31 2022.06.30 Current assets 595,371 627,561 Non-current assets 1,245,956 1,282,820 Total assets 1,841,327 1,910,381 Current liabilities 582,148 568,573 Non-current liabilities 48,887 54,360 Total liabilities 631,035 622,933 Total equity 1,210,292 1,287,448 33#34Operating Data - Appendix III Unit 1H2021 1H2022 Customers Mil 945.51 969.85 Mobile service revenue RMB Mil 292,459 300,322 ARPU RMB 52.2 52.3 Mobile service Handset data traffic GB Bil 58.19 68.28 Handset data traffic DOU GB 11.9 13.5 MOU Minutes 264 254 Network customers Mil 127.06 262.64 Of which: 5G ARPU RMB 88.9 85.0 Handset data traffic DOU GB 20.7 21.5 Customers Mil 225.60 256.06 Wireline broadband Wireline broadband service revenue RMB Mil 47,200 54,168 service ARPU RMB 36.1 36.3 Customers Mil 205.44 230.34 Of which: Household broadband Household customer blended ARPU RMB 41.1 43.0 中国移动 China Mobile 34