China Mobile (HKG:0941, SHA:600941) is accelerating its plan to shift to a "sci-tech service enterprise" from a communications group, as it reported first-half results weighed down in part by a changing market and policy adjustments.
The Chinese company reported post-market Thursday a 1.1% annual decline in operating revenue to 538 billion yuan and a 6.3% fall in profit attributable to equity shareholders of 78.9 billion yuan.
On the other hand, the company said the two metrics grew on a comparable basis, which it defines as excluding the impact of the scope of VAT items. A 2026 policy adjustment in China raised its applicable VAT rate to 9% from 6% for basic telco services.
"Artificial intelligence is profoundly reshaping every aspect of how people work and live," the company said in its earnings report. "At the same time, changes in the external environment continue to exert a deeper impact. Our industry is entering a critical stage of transitioning from conventional to new growth drivers. Policy adjustments to the scope of VAT items will also affect us and add to the uncertainties."
Against this background, China Mobile said it will advance the deployment of integrated communications, computing and AI networks; reinforce its AI strategic positioning; and expedite its computing market expansion, among others.
On the shareholder returns front, the company said it will align its renminbi-denominated accounting system with the 2026 interim dividend. As such, it will pay on Sept. 30 a per-share dividend of 2.51 yuan to shareholders on record as of Aug. 31. The amount represents a 0.3% annual increase.
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