On the evening of March 23, China Mobile released its first annual report after the listing of a shares.
In 2021, China Mobile’s operating revenue reached 848.3 billion yuan, a year-on-year increase of 10.4%, and the growth rate reached a ten-year high. Among them, the main business income reached 751.4 billion yuan, a year-on-year increase of 8.0%, an increase of 4.8 percentage points over 2020. In 2021, the net profit attributable to the shareholders of the parent company of China Mobile reached 115.9 billion yuan (the average daily net profit was about 318 million yuan), an increase of 7.5% year-on-year.
Yang Jie, chairman of China Mobile, said that in 2021, China Mobile’s digital transformation business revenue reached 159.4 billion yuan, with a year-on-year increase of 26.3%. The new momentum of transformation and development increased strongly, contributing nearly 60% to the increment of main business revenue, becoming the first driving force to promote the growth of China Mobile’s revenue.
The latest report of China Mobile A shares is 64.55 yuan / share, and Hong Kong shares are 54.35 Hong Kong dollars / share.
personal market reverses the downward trend
China Mobile’s main revenue sources include personal market, family market, government enterprise market and emerging market. In 2021, China Mobile’s personal market business reversed the downward trend and achieved positive growth. The income of household market, government and enterprise market maintained a rapid growth of more than 20%, and the income of emerging markets increased by more than 30%, realizing a V-shaped reversal; The proportion of households, government enterprises and emerging markets in the main business income increased by 4.3 percentage points to 35.7%, and the income structure continued to be optimizedP align = “center” the picture is from China Mobile investor relations website
In 2021, China Mobile’s personal market business revenue reached 483.4 billion yuan, a year-on-year increase of 1.4%. By the end of December 2021, there were 957 million mobile customers, with a net increase of 14.97 million, including 387 million 5g package customers, with a net increase of 222 million, keeping the scale leading in the industry. Driven by the value growth of customer upgrading 5g and integrated operation, the mobile ARPU was 48.8 yuan, a year-on-year increase of 3%.
In 2021, China Mobile’s household market revenue reached 100.5 billion yuan, a year-on-year increase of 20.8%. By the end of December 2021, the number of home broadband customers had reached 218 million, with a net increase of 25.88 million, keeping the industry leading. The comprehensive ARPU of home broadband reached 39.8 yuan, with a year-on-year increase of 5.6%. The value contribution from smart home applications increased significantly.
In 2021, the government enterprise market revenue of China Mobile reached 137.1 billion yuan, a year-on-year increase of 21.4%. By the end of December 2021, the number of government and enterprise customers of China Mobile had reached 18.83 million, with a net increase of 4.99 million. According to China Mobile, mobile cloud revenue reached 24.2 billion yuan, a year-on-year increase of 114%.
In emerging markets, China Mobile’s revenue achieved double-digit rapid growth in 2021, reaching 30.3 billion yuan, a year-on-year increase of 34.2%. It is worth noting that through the dual connection of “industry + capital” to build a digital intelligence industry ecosystem, China Mobile’s equity investment income accounted for 10.3% of the net profit.
5g investment peak is coming to an end
According to the financial report, China Mobile’s capital expenditure in 2021 reached 183.6 billion yuan, of which 5g related capital expenditure reached 114 billion yuan. The company expects that the capital expenditure in 2022 will be 185.2 billion yuan, of which 5g related capital expenditure is about 110 billion yuan.
China Mobile revealed that the goal is to open 1.1 million 5g base stations by the end of 2022, including 48 Shenzhen Sdg Information Co.Ltd(000070) 0MHz base stations, so as to achieve continuous coverage of cities, counties, urban areas and towns, as well as effective coverage of key areas, developed rural areas and key property sitesP align = “center” the picture is from China Mobile investor relations website
Yang Jie told China Securities Journal that the peak period of 5g investment and construction is from 2020 to 2022, and 2022 is the last year of the peak period of 5g investment of the company. From 2023, if there are no other major events, the company’s capital expenditure will show a gradual downward trend. It is expected that after three years, the proportion of capital expenditure in revenue will be reduced to less than 20%.
According to the financial report, in 2021, China Mobile opened more than 7 Toread Holdings Group Co.Ltd(300005) g base stations, including 2 Shenzhen Quanxinhao Co.Ltd(000007) 00MHz 5g base stations, which basically achieved continuous coverage in urban areas, counties and towns. Some key areas, developed rural areas and key property sites were well covered, serving 207 million 5g network customers, and the scale of 5g network and customers ranked first in the world.
China Mobile remains a leader in 5g vertical industry applications. By the end of 2021, a total of 200 5g leading demonstration projects have been built, 1590 5g private network projects have been expanded, driving the contract amount of dict projects to exceed 16 billion yuan, and realizing scale expansion in many industries such as smart mine, smart factory, smart power, smart metallurgy, smart port and smart hospital.
increase investment in computing power network
According to China Mobile, in addition to 5g, the company’s capital expenditure in 2022 also includes the construction of computing power network and smart console. Yang Jie stressed that the construction of the computing power network will be fully carried out in 2022, and the relevant capital expenditure of the computing power network will gradually increase in the future.
According to the introduction of China Mobile, the capital expenditure on computing network will reach 48 billion yuan in 2022, mainly including direct investment in business network (including mobile cloud and business platform cloud), it cloud, data center, transmission network and convergence computer room. The company will implement the national project deployment of “computing from the east to the west”. The goal is to put into operation about 450000 externally available IDC frames by the end of 2022, speed up the layout of hot center cloud and build edge cloud as needed, More than 660000 cloud servers have been put into operation.
China Mobile said that by the end of 2021, the company had formed a “4 + 3 + X” data center layout in terms of computing power supply, with 407000 available IDC racks, a net increase of 47000; The layout of “n + 31 + X” mobile cloud continues to be optimized, with 13 central nodes and more than 480000 cloud servers put into operation. In the future, the company will explore the absorption of social computing power and realize diversified computing power supply.
In addition, facing the breakthrough of original technology, China Mobile has arranged the research on cutting-edge technologies such as next-generation optical communication and next-generation IP, led the formulation of more than 10 foreign standards, and accelerated the construction of a technologically leading, open and inclusive computing network test network. Next, based on the main goal of “ubiquitous collaboration” in the first stage of the computing network, the company will do a good job in top-level design and stock integration and optimization, accelerate the improvement of computing network capacity and promote the maturity of the computing network.
In 2021, China Mobile’s R & D investment reached 18.6 billion yuan, accounting for 2.2% of revenue, and nearly 14000 R & D personnel. The company expects to invest 19 billion yuan in R & D in 2022.
