China Mobile Limited (China Mobile, 80941.HK) reported operating revenue of RMB 538.00 billion for the six months ended 30 June 2026, down 1.1% year-on-year but achieving growth on a comparable basis after excluding the VAT scope adjustment. Revenue from principal businesses reached RMB 452.66 billion, representing 84.1% of the total, while computing and AI services contributed 22.6% of that core figure, underscoring the group’s strategic diversification beyond traditional connectivity.
Profit attributable to equity shareholders slipped 6.3% year-on-year to RMB 78.93 billion, although management noted underlying growth when normalised for tax policy changes. EBITDA declined 6.6% to RMB 173.60 billion, equal to 38.4% of principal-business revenue, keeping the company among the most profitable global telecom operators.
Cash generation strengthened; net cash from operating activities jumped 37.0% to RMB 114.85 billion and free cash flow more than doubled to RMB 53.90 billion. Capital commitments stood at RMB 29.07 billion as of 30 June 2026.
Segment performance: 1. Communications services revenue fell 5.7% to RMB 350.40 billion, reflecting VAT reclassification and competitive pressures. Mobile subscribers grew by 5.88 million to 1.011 billion, including 687 million 5G users. Broadband customers rose to 337 million, and IoT card connections expanded by 29.58 million to 1.511 billion. 2. Computing services maintained strong momentum, with revenue up 14.0% to RMB 52.90 billion. Public-cloud revenue climbed into China’s domestic top three, while intelligent computing revenue surged 130.1% to RMB 5.30 billion. 3. AI services generated RMB 49.30 billion, a modest 0.9% rise. Data algorithm and digital-culture revenues grew 6.9% and 12.5%, respectively. 4. International market revenue reached RMB 18.20 billion, a 30.1% increase, supported by expanded global network resources comprising 463 POPs and 437 Tbps of international transmission capacity.
Operational milestones included the deployment of 2.94 million 5G base stations, gigabit network coverage to 560 million households, and intelligent computing capacity of 112,700 PFLOPS with utilisation above 90%.
The board declared an interim dividend of RMB 2.51 per share, up 0.3% year-on-year in RMB terms (HK$2.9003 per share, +5.5% in HKD). From this interim distribution onward, all dividends will be declared in RMB, with Hong Kong-listed shareholders able to elect payment in HKD or RMB. The ex-dividend date is 27 August 2026, and payment is scheduled for 30 September 2026. The payout ratio for full-year 2026 is expected to remain “stable-to-rising.”
Looking ahead, China Mobile highlighted continued investment in integrated communications, computing and AI networks to transition from a traditional telecom operator to a “world-class sci-tech service enterprise” while navigating ongoing VAT policy shifts and competitive pressures.
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