Securities code: 600941 securities abbreviation: China Mobile
Record of investor relations activities of China Mobile Co., Ltd
No.: 2022003
Investor relations activity □ research on specific objects □ analyst meeting □ media interview □ performance presentation meeting
Dynamic category
□ press conference □ roadshow activity □ site visit
□ others (please specify other activities in words)
Name of participants: Li Yusheng from Furui securities, China International Capital Corporation Limited(601995) Qian Kai, Wang Xinyi from UBS Securities, Zhou Dexi from Credit Suisse and Citic Securities Company Limited(600030) Huang Yayuan
Time: 20:30-22:00, 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 Cloud business has talked about the revenue proportion of public cloud and private cloud in the semi annual report. What is the proportion in the second half of the year?
The mobile cloud revenue caliber is different from that in the past. In the early stage, it mainly refers to the industry cloud revenue
Income, i.e. to B income, is adjusted by the company according to industry practices. The caliber disclosed this time and later is the full volume cloud income of the four markets. According to this caliber, the overall income of mobile cloud includes industry cloud income, as well as personal, family and other cloud income. Among them, industry cloud includes public cloud and private cloud, accounting for 68.4% and 68.4% respectively
31.6%。
2. Has the industry distribution of the industry cloud changed significantly in the second half of the year?
The customers of government enterprises and medical institutions at all levels are mainly distributed in the cloud service industry. From the perspective of recent development, the customer structure has not changed significantly. The industries with rapid growth in the near future are still concentrated in the government, enterprises and institutions, education, medical treatment, transportation and other vertical industries, as well as some small and medium-sized customers such as commercial buildings.
3. To C value-added services, such as smart home and digital content services, are also growing rapidly. What is the profit level of these two businesses? Do you have any plans to continue to invest or acquire some content enterprises?
China Mobile's content operation and development have company characteristics, which are very different from other content operators. The company has a huge user base, 957 million users in the personal market and 218 million users in the household market. At the same time, the company has sales channels all over the country. At present, macro calculation can maintain a good growth rate and profitability. The next step is to realize value realization and drainage through platform building. Combined with the company's value management based on scale, it can drive the growth of 5g and to C traffic and improve comprehensive benefits.
4. Why did 5g users increase more in February this year? In May, radio and television will launch 5g package. What is the current competitive environment in the market?
In February 2022, 5g network customers increased a lot in a single month. On the one hand, the company has always focused on accelerating the transfer of customers to 5g and realizing the double improvement of 5g customer scale and value, especially focusing on the construction of terminal ecological chain and scene based accurate marketing; On the other hand, it is seasonal. During the Spring Festival, consumption is relatively strong, especially terminal consumption. The superposition of the two makes the number of 5g users develop better in February. In particular, the company does not promote 5g terminal subsidy contract plan, and does not specifically drive user growth through cost.
At present, the mobile communication market is relatively mature. Due to the saturation of traditional industries, the whole industry is trying to transform and find new growth points. I believe that as a new entrant, radio and television will also strive to maintain the value of the whole industry and jointly expand the cake, especially in realizing product differentiation, meeting customer needs and paying attention to the improvement of customer service quality, so as to jointly realize high-quality development and contribute to the development of National Digital Economy. The company and radio and television will also achieve mutual benefit and win-win results in content cooperation and new business formats. 5. The other two companies have given double-digit business growth guidelines. Are there general guidelines for the growth of the company's core business, including cloud business?
The general guideline of the company's operating performance is: 2022 will continue the development trend of the previous year, and the revenue and net profit will maintain good growth.
The company is full of confidence in the whole market, mainly based on the following considerations: first, the development space of digital economy is broad; Second, national policies support the development of digital economy, digital government and digital life, and this year's government work report does not mention the relevant requirements of raising speed and reducing fees. At the same time, the epidemic has also accelerated the transformation of digital intelligence in the whole society; Third, the industry competition is more rational and standardized, and the industry development environment is more healthy and orderly. 6. How much capital expenditure budget in 2022 is invested in the data center?
Based on the overall layout of "4 + 3 + X", the company builds a data center with high technology, high computing power, high energy efficiency and high security, focusing on hot areas such as Beijing Tianjin Hebei, Yangtze River Delta, Guangdong Hong Kong Macao Bay area and Chengdu Chongqing, and synchronously promotes the construction of data center in the western region in accordance with the overall deployment of the national "Eastern data and Western computing" project. In 2022, the capital expenditure is expected to be 5.8 billion yuan, and the scale of IDC racks available will reach about 450000. While building its own data center, the company actively expands foreign cooperation and gradually increases the proportion of data centers for foreign cooperation. 7. At present, does the transmission network need to be expanded? Will the capital expenditure on the transmission network increase in the next two or three years?
In 2022, the company arranged a total investment of 185.2 billion, most of which was used for the construction of "connection + computing power + capacity". In terms of computing power network, it plans to invest 48 billion yuan in capital expenditure, including direct investment in business network, it cloud and data center, as well as partial shared investment in transmission network and convergence computer room. In 2022, the capital expenditure related to transmission network was about 47.4 billion yuan, an increase of 2.2 billion yuan over last year, mainly for the layout of computing network, continuously optimize the network architecture and improve the direct system between backbone hub nodes. At the same time, the company focused on hot areas of data center and strengthened inter regional network interconnection.
In addition, the company will add cloud private network nodes as needed according to the layout of computing power network and in combination with the requirements of data center direct connection flow direction and quality, improve the provincial direct connection layout, realize the efficient scheduling of computing resources and access to the network nearby, promote the realization of "one point access, immediate use" of computing power like hydropower, and provide high-quality computing services for all walks of life. 8. Does the company have any new equity incentive plan in the future, including A-share equity incentive plan? After the end of the quiet period, what are the opinions of the company on the repurchase of Hong Kong shares and the increase of A-share holdings
What specific plans?
The company passed the equity incentive plan at the 2020 annual general meeting of shareholders, which is valid for 10 years, and the total amount of equity granted does not exceed 10% of the total amount of Hong Kong share capital of the company. In June 2020, stock options of 306 million shares have been officially granted to 9914 incentive objects, accounting for 1.5% of the total issued Hong Kong shares of the company, and the exercise price is HK $55.0 per share. If the company's performance reaches the option unlocking target, it will be unlocked gradually. As the unlocking condition is a dynamic target, it is necessary to benchmark the industry, and the final unlocking situation needs to be confirmed. At present, the development trend of the company is good, and the operating revenue, net profit and EVA are expected to reach the unlocking target. After returning to a shares, the company is considering and studying the incentive methods of the two markets, and will disclose any new progress in time.
The shareholding increase plan of China Mobile Communications Group Co., Ltd., the actual controller of the company, has been publicly disclosed. By the end of 2022, the cumulative amount of shareholding increase is planned to be no less than 3 billion yuan and no more than 5 billion yuan. As of February 28, the actual controller has increased its holdings of 26.21 million A-Shares of the company, with a cumulative increase of about 1.5 billion yuan. Subsequently, it will continue to implement the increase plan in due time according to the fluctuation of the company's stock price and the overall trend of the capital market.
The 2021 annual general meeting of shareholders of the company authorized the board of directors of the company to repurchase no more than 10% of the issued Hong Kong shares, and 10% is only the upper limit. The company will conduct scientific repurchase operations in accordance with the trend of the capital market and the trend of the company's share price, taking into account the company's cash situation and long-term development. Five repurchase operations have been carried out this year, with a cumulative repurchase amount of HK $866 million. In the next step, the company will carry out scientific repurchase in accordance with the rules of the Hong Kong Stock Exchange in an appropriate window period and on the premise of meeting the conditions and needs. 9. The company will further increase R & D investment this year. What will be the key aspects of R & D expenditure?
In 2022, the company expects to invest about 19 billion yuan in R & D, which is determined by its historical background. At present, 5g is developing rapidly, but there are few applications. The development of new technologies in the future, such as the application of 5g in to B and to C markets, the development of 5g to 6G, and the application of 5g in the field of metauniverse, will depend on the joint efforts of the industry. stay
In the future development, cloud network integration is the biggest advantage that operators have. In the future, the company will combine the project deployment of "East data and West computing", and its R & D investment will focus on the construction of a new information service system of "connection + computing power + capability", so as to promote the application of 5g, computing power network and smart platform in a wider range, more fields and deeper levels.
List of accessories (if any)
Date: March 23, 2022
