Securities code: 600941 securities abbreviation: China Mobile
Record of investor relations activities of China Mobile Co., Ltd
No.: 2022002
Investor relations activity □ specific object research □ analyst meeting □ media interview □ performance description meeting category
□ press conference □ roadshow activity □ site visit
□ others (please specify other activities in words)
Names of participants: Liu chenyao of China News Agency, Yang Jie of China Securities News, Wen Ting of Shanghai Securities News, Liu canbang of securities and personnel name times, Li Qiaoyu of Securities Daily, Huang Chenhua of Oriental Daily, Chen Lihuan of Ming Pao, Li Jieyi of Ta Kung Pao and Wang Shuting of Xinbao
Time: 19:00-20:00, March 23, 2022
Place online meeting
The listed company received Yang Jie, chairman of China Mobile, Dong Xin, CEO, Li ronghua, chief financial officer, Li huidy, deputy general manager, Gao Tongqing, deputy general manager, Jian Qin, deputy general manager and Zhao Dachun, deputy general manager
Main contents of the Q & a session of investor relations: introduction to the main contents of the event 1 This year, the company disclosed the digital transformation income for the first time. In the future, should the focus of business development be shifted to this aspect? Will there be more investment in this aspect this year?
The digital transformation revenue announced this time includes the digital business of chbn’s four major markets, and will continue to lead the company to achieve transformation and development through this index in the future. two thousand and twenty-one
In, the digital transformation achieved certain results. The digital transformation revenue was 159.4 billion yuan, an increase of 26.3%, accounting for 21.2% of the main business revenue, and contributed 59.5% to the increment of the company’s general service revenue.
In the future, the company will continue to promote digital transformation and development, mainly including three aspects: first, value management based on scale; Second, chbn develops in an all-round and integrated way; Third, build a new service system based on “connection + computing power + capability”.
2. The company announced the “5g + Plan” in March 2019. Now three years have passed. How is the implementation? Is it in line with previous expectations?
“4G + 5g + Plan” includes four aspects; Second is
5G+AICDE； Third, 5g + ecology; Fourth, 5g + X. In recent years, the company has fully implemented various objectives of 5g + and achieved good results. In terms of 5g + 4G, 5g and 4G collaboration has been realized. At present, 5g package users have exceeded 400 million, and 5g traffic has been close to 30% of the total traffic of 4 / 5G; 5g + aicde has accelerated the integration and innovation of applications; In terms of 5g + ecology, various ecosystems including terminal industrial chain have been constructed to lead the development of the whole industrial chain ecology; In terms of 5g + X, more than 6400 5g projects have been built, and 5g applications have developed rapidly.
In the future, the company will still adhere to the “5g + Plan” as a whole, and the specific contents contained therein may change. In the future, the company’s new infrastructure of “5g + computing network + smart middle platform” will play a greater role and realize the better and faster development of 5g. 3. What is the deployment progress of 700MHz network? What are the plans for the target market? Will the small investment scale of 700MHz further widen the gap between the company and its friends? It will build and share with other operators in the future
700MHz network?
The overall progress of 700MHz is relatively smooth. The company and radio and television jointly built and shared 2 Shenzhen Quanxinhao Co.Ltd(000007) 00MHz base stations last year and plans to build another 28 Shenzhen Sdg Information Co.Ltd(000070) 0MHz base stations this year. The target markets include villages, towns and cities. It is more to solve the problem of coverage below the township and county level, and more to solve the problems of deep coverage and network quality in urban areas. The investment of 700MHz related wireless network equipment is smaller than that of 2.6GHz. Capex has also made corresponding arrangements. In addition to 700MHz construction this year, there are also 2.6GHz and 4.9ghz construction. At present, China Telecom and China Unicom have achieved joint construction and sharing and achieved good results. The whole industry will implement the new development concept of green development, low-carbon development and shared development in accordance with the national requirements. I believe they can promote their own development through joint construction and sharing.
4. Last year, mobile ARPU reached 48.8 yuan. What are the main reasons for the improvement? Is there any room for improvement this year?
In recent years, through value management based on scale, the company has stabilized the scale of customers on the one hand, and enriched various products and applications on the basis of stable scale to improve ARPU. It is expected that ARPU will continue to improve this year.
5. In terms of equity investment, I heard that the company plans to spend 200 billion yuan to do corresponding equity investment projects within three years. What is the evaluation of the company?
At present, the company has a certain scale of equity investment. The general idea is to give play to the role of capital “value contribution, industry investment coordination and ecological construction”, closely focus on the main business, focus on the list of capacity reinforcement and the list of target enterprises, strengthen the layout of key fields, and play a role of mutual integration and pulling. We have never heard of the idea of investing 200 billion yuan in three years. In terms of equity investment, as long as it is conducive to the development of the company and fully meets the requirements of the state, the company will make capital investment in accordance with laws and regulations and give full play to the role of capital. 6. What are the layout and considerations of the company in terms of spin off and listing? What businesses are eligible for spin off?
The company has always adhered to an open mind on the split listing. If it is conducive to the development of the company’s main business and the development of a subsidiary or a piece of business, on the premise of complying with the regulatory rules, the company will choose the right object at the right time and adopt the right way for the split listing. At present, the company’s Internet of things, content and other businesses are being promoted in an all-round way, but the conditions for spin off are not yet met. If there are specific arrangements in this regard in the future, the company will perform corresponding procedures and make timely announcements in accordance with relevant regulatory rules. 7. What are the management’s growth goals for profit and revenue this year? How does covid-19 epidemic affect the business of China Mobile?
In recent years, the company has fully implemented the development strategy of creating a world-class “power building” and the overall strategy of 5g +, the overall business has achieved sound development, and maintained good growth last year and the previous year.
Considering the future market demand, the company believes that 5g + will usher in a vigorous period of development. It is expected that this year’s revenue and profit will continue the development trend of the previous year, and the revenue and net profit will maintain good growth.
In recent years, the global epidemic has a great impact on economic and social development, and the impact on the communication industry is initially obvious. With the continuation of the epidemic, all social parties are increasingly dependent on communication applications. Companies turn danger into opportunity and speed up the transformation and upgrading of the online trend. At present, the epidemic will not have a significant impact on the company’s performance. 8. How does the company consider the level and pace of capital expenditure related to 5g in the future? The company announced the capital expenditure level of the computing power network of 48 billion yuan, focusing on the main purpose of the computing power network
What construction should be carried out?
The capital expenditure of the company is 185.2 billion yuan in 2022, and the investment peak is from 2020 to 2022. In the early stage, the management of the company gave guidelines to make it clear that even considering 5g investment, the total scale of the company’s capex will not increase significantly. The capital expenditure of the company from 2020 to 2022 is 180.6 billion yuan, 183.6 billion yuan and 185.2 billion yuan (expected), with a three-year increase of only 2.5%. The company’s 5g investment this year is about 110 billion yuan, slightly lower than last year. It is expected that 5g investment will not increase and show a gradual downward trend from next year. If there are no major special events, the capital expenditure of listed companies will not increase since 2023 and will show a gradual downward trend. After three years, the proportion of capital expenditure in revenue will fall to less than 20%.
Computing power network is the most important part of the new infrastructure, and the investment in computing power network may increase gradually in the future. This year, the company plans to invest 48 billion yuan in computing network, including direct investment in business network, it cloud and data center, as well as partial shared investment in transmission network and convergence computer room. 9. Just now, the company mentioned that the peak of capital expenditure has passed. Will there be room for an increase in the proportion of dividends in the future? Is there a clear goal for 2022?
The dividend payout rate of the company in 2021 is 60%. In order to better feed back to shareholders and share development achievements, the company fully considers profitability, cash flow status and future development needs. It is expected that the profit distributed in cash within three years from 2021 will gradually increase to more than 70% of the profit attributable to shareholders of the company in that year (according to international and Hong Kong Standards), and strive to create greater value for shareholders. According to the closing price on December 31, 2021, the yield of Hong Kong stocks has reached more than 8%; According to the issue price on January 5, 2022, the yield of A-Shares is about 5.8%.
This year is the last peak of 5g construction investment. Combined with the overall development needs in the next step, it is expected that the company’s cash volume is relatively abundant and can support the company’s business development. On this basis, the company’s management will gradually study and increase the overall dividend distribution rate. 10. What is the company’s latest layout for the development of metauniverse?
The company pays close attention to and tracks the development of metauniverse, and has done some research.
The characteristics of the yuan universe are embodied in the “four fusions”. First, technology integration, including AI technology, input and output technology, VR / AR technology, Internet technology, blockchain technology, etc. some information technologies need to be deeply integrated; The second is the fusion of virtual and real, that is, the fusion of virtual space and physical space; Third, the integration of science and technology, information technology and finance; Fourth, the integration of silicon-based life and carbon-based life.
In view of these characteristics, the company is actively layout. The new infrastructure of “5g + computing network + smart middle platform” being built by the company is a necessary infrastructure for Beijing Vastdata Technology Co.Ltd(603138) computing processing, supporting massive access, real modeling and interaction, and large-scale virtual content creation and experience. At present, China Mobile Research Institute and Migu company have tracked and explored the meta universe. During the Winter Olympics, the company launched applications similar to the concept of meta universe, including digital Homo sapiens and virtual human, to realize the integration of virtual and real, and played a good role in the broadcasting of the Winter Olympics. Metauniverse is still in the early stage of development. It will take time to really play its role, and there are many technical problems to be solved. The company will continue to follow up and study closely.
11. What does the company think of the prospect of 6G development?
At present, 5g development of the company is in a critical period, and the top priority is to develop 5g well. There is a reserve R & D cycle for communication technology. From 1g to now, the R & D cycle is basically 5 to 10 years. The company began to conduct comprehensive research on 6G two years ago and set up a future research institute to closely study and track 6G and related forward-looking technologies and applications; Establish joint research institutes and laboratories with Tsinghua University, Beiyou University, Southeast University and other universities, build a cross domain collaborative innovation system, and promote the creation of a global unified 6G standard and industrial ecology. Like other technologies, the most important thing for the development of 6G is standards, technology and industry. The company now promotes 6G R & D in an all-round way according to this layout. In the next step, the company will go all out to develop 5g in all aspects, and comprehensively layout 6G and other cutting-edge technologies.
List of accessories (if any)
Date: March 23, 2022
