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Name | Symbol | Market | Type |
---|---|---|---|
China Mobile Limited | NYSE:CHL | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 27.51 | 0 | 01:00:00 |
☐ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of Each Class |
Trading Symbol |
Name of Each Exchange on Which Registered | ||
None |
None |
None |
Large accelerated filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | |||||
Emerging growth company | ☐ |
U.S. GAAP ☐ | International Financial Reporting Standards as issued | Other ☐ | ||||||
by the International Accounting Standards Board | ☒ |
Page |
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1 |
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Item 1. |
2 |
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Item 2. |
2 |
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Item 3. |
2 |
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Item 4. |
19 |
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Item 4A. |
43 |
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Item 5. |
43 |
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Item 6. |
55 |
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Item 7. |
59 |
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Item 8. |
63 |
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Item 9. |
64 |
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Item 10. |
64 |
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Item 11. |
73 |
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Item 12. |
74 |
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Item 13. |
75 |
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Item 14. |
75 |
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Item 15. |
75 |
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Item 16A. |
76 |
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Item 16B. |
76 |
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Item 16C. |
76 |
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Item 16D. |
76 |
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Item 16E. |
76 |
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Item 16F. |
76 |
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Item 16G. |
77 |
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Item 16H. |
78 |
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Item 16I. |
78 |
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Item 17. |
79 |
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Item 18. |
79 |
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Item 19. |
79 |
• | our business objectives and strategies, including those relating to the development of our terminal procurement and distribution business; |
• | our operations and prospects; |
• | our network expansion and capital expenditure plans; |
• | the expected impact of any acquisitions or other strategic transactions; |
• | our provision of services, including fifth generation, or 5G, services, wireline broadband services and services based on technological evolution, and our ability to attract customers to these services; |
• | the planned development of future generations of mobile technologies, including 5G technologies, and other technologies and related applications; |
• | the anticipated evolution of the industry chain of 5G and future generations of mobile technologies, including future development in, and availability of, terminals that support our provision of services based on 5G and future generations of mobile technologies, and testing and commercialization of future generations of mobile technologies; |
• | the expected benefit from our collaboration with China Broadcasting Network Corporation Ltd., or China Broadcasting, with respect to the co-construction and sharing of 5G network; |
• | the expected benefit from our investment in and any arrangements with China Tower Corporation Limited (or China Tower, formerly known as China Communications Facilities Services Corporation Limited); |
• | the expected impact of the implementation in the mainland of China of the policy of “speed upgrade and tariff reduction” and the cancellation of roaming tariffs on our business, financial condition and results of operations; |
• | the expected impact of tariff changes on our business, financial condition and results of operations; |
• | the potential impact of restrictions, sanctions or other legal or regulatory actions under relevant laws and regulations in various jurisdictions on our telecommunications equipment suppliers and other business partners; |
• | the potential impact of the outcome of the State Administration for Market Regulation’s investigation on us; |
• | the impact of the continued development of the coronavirus disease, or COVID-19, a disease caused by a novel strain of coronavirus, on the PRC economy and our operations and financial performance; |
• | the expected impact of new service offerings on our business, financial condition and results of operations; and |
• | future developments in the telecommunications industry in the mainland of China, including changes in the regulatory and competitive landscape. |
Item 1. |
Identity of Directors, Senior Management and Advisers. |
Item 2. |
Offer Statistics and Expected Timetable. |
Item 3. |
Key Information. |
Item 4. |
Information on the Company. |
• China Mobile Communication Co., Ltd. |
• China Mobile Group Hubei Co., Ltd. | |
• China Mobile Group Guangdong Co., Ltd. |
• China Mobile Group Hunan Co., Ltd. | |
• China Mobile Group Zhejiang Co., Ltd. |
• China Mobile Group Shaanxi Co., Ltd. | |
• China Mobile Group Jiangsu Co., Ltd. |
• China Mobile Group Shanxi Co., Ltd. | |
• China Mobile Group Fujian Co., Ltd. |
• China Mobile Group Neimenggu Co., Ltd. | |
• China Mobile Group Henan Co., Ltd. |
• China Mobile Group Jilin Co., Ltd. | |
• China Mobile Group Hainan Co., Ltd. |
• China Mobile Group Heilongjiang Co., Ltd. | |
• China Mobile Group Beijing Co., Ltd. |
• China Mobile Group Guizhou Co., Ltd. | |
• China Mobile Group Shanghai Co., Ltd. |
• China Mobile Group Yunnan Co., Ltd. | |
• China Mobile Group Tianjin Co., Ltd. |
• China Mobile Group Xizang Co., Ltd. | |
• China Mobile Group Hebei Co., Ltd. |
• China Mobile Group Gansu Co., Ltd. | |
• China Mobile Group Liaoning Co., Ltd. |
• China Mobile Group Qinghai Co., Ltd. | |
• China Mobile Group Shandong Co., Ltd. |
• China Mobile Group Ningxia Co., Ltd. | |
• China Mobile Group Guangxi Co., Ltd. |
• China Mobile Group Xinjiang Co., Ltd. | |
• China Mobile Group Anhui Co., Ltd. |
• China Mobile Group Design Institute Co., Ltd. | |
• China Mobile Group Jiangxi Co., Ltd. |
• China Mobile Hong Kong Company Limited | |
• China Mobile Group Chongqing Co., Ltd. |
• China Mobile International Limited | |
• China Mobile Group Sichuan Co., Ltd. |
• China Mobile IoT Company Limited | |
• China Mobile Information Technology Company Limited |
• China Mobile Online Services Co., Ltd. | |
• China Mobile (Suzhou) Software Technology Co., Ltd. |
• China Mobile (Hangzhou) Information Technology Company Limited | |
• MIGU Company Limited |
• China Mobile Internet Company Limited | |
• China Mobile Tietong Company Limited |
• China Mobile Financial Technology Co., Ltd. | |
• China Mobile Investment Holdings Company Limited. |
• China Mobile (Shanghai) ICT Co., Ltd | |
• China Mobile (Chengdu) ICT Co., Ltd. |
• China Mobile E-Commerce Co., Ltd. | |
• China Mobile Xiong’an ICT Co., Ltd. |
• China Mobile System Integration Co., Ltd. (formerly known as China Mobile Quantong System Integration Co., Ltd.) | |
• China Mobile Information System Integration Co., Ltd. |
As of or for the year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Mobile Business |
||||||||||||
Customer base (in millions) |
950.3 | 941.9 | 956.9 | |||||||||
of which: 5G package customer base (in millions) |
2.55 | 165 | 387 | |||||||||
Total voice usage (in billions of minutes) |
3,224.8 | 3,032.4 | 2,996.9 | |||||||||
Handset data traffic (in billions of gigabytes) |
65.89 | 90.66 | 124.84 | |||||||||
Average minutes of usage per user per month (minutes) (1) |
287 | 267 | 264 | |||||||||
Average handset data traffic per user per month (GB) (2) |
6.7 | 9.4 | 12.6 | |||||||||
Average revenue per user per month (RMB) (3) |
49.1 | 47.4 | 48.8 | |||||||||
Wireline Broadband Business |
||||||||||||
Customer base (in millions) |
187.0 | 210.3 | 240.1 | |||||||||
Average revenue per user per month (RMB) (4) |
32.8 | 34.0 | 34.7 | |||||||||
IoT Business |
||||||||||||
IoT smart connections (in millions) |
884 | 873 | 1,049 |
(1) | Calculated by (A) dividing the total minutes of usage during the relevant year by the average number of customers during the year (calculated as the average of the numbers of customers at the end of each of the 13 calendar months from the end of the previous year to the end of the current year) and (B) dividing the result by 12. |
(2) | Calculated by (A) dividing the total handset data usage during the relevant year by the average number of handset data users during the year and (B) dividing the result by 12. |
(3) | Calculated by (A) dividing the revenue from mobile services during the relevant year by the average number of mobile customers during the year (calculated as the average of the numbers of customers at the end of each of the 13 calendar months from the end of the previous year to the end of the current year) and (B) dividing the result by 12. The revenue from mobile services in 2019, 2020, and 2021 is derived from our consolidated statements of comprehensive income for the years ended December 31, 2019, 2020 and 2021, respectively. |
(4) | Calculated by (A) dividing the revenue from wireline broadband services during the relevant year by the average number of wireline broadband customers during the year (calculated as the average of the numbers of customers at the end of each of the 13 calendar months from the end of the previous year to the end of the current year) and (B) dividing the result by 12. |
Number |
% of Total |
|||||||
Management |
31,581 | 7.0 | ||||||
Technical |
156,896 | 34.9 | ||||||
Marketing |
212,377 | 47.2 | ||||||
General affairs |
44,918 | 10.0 | ||||||
Other |
4,162 | 0.9 | ||||||
|
|
|
|
|||||
Total |
449,934 | 100.0 |
||||||
|
|
|
|
Item 4A. |
Unresolved Staff Comments. |
Item 5. |
Operating and Financial Review and Prospects. |
Year ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
Total voice usage (in billions of minutes) |
3,224.8 | 3,032.4 | 2,996.9 | |||||||||
Handset data traffic (in billions of gigabytes) |
65.89 | 90.66 | 124.84 | |||||||||
Operating revenue (in RMB millions) |
745,917 | 768,070 | 848,258 | |||||||||
Operating expenses (in RMB millions) |
632,768 | 655,336 | 730,295 | |||||||||
Profit attributable to equity shareholders (in RMB millions) |
106,641 | 107,843 | 116,148 |
(i) | Revenue for each performance obligation is recognized when the Group satisfies the performance obligation by transferring the promised services or products to the customer. Generally, revenue is recognized when the customer obtains the control of the telecommunications services over the time of provision of the services. Revenue is recognized when a customer obtains the control of the product at a point of time. |
(ii) | For contracts which include the provision of multiple performance obligations including services and products, the Group allocates the transaction price to each performance obligation based on the relative stand-alone selling price. The stand-alone selling price of services and products are mainly based on its observable selling price. If a stand-alone selling price is not directly observable, the Group considers all information that is reasonably available and maximizes the use of observable inputs to estimate the stand-alone selling price. Revenue for each performance obligation is then recognized when the control of the promised services or products is transferred to the customer. |
(iii) | The Group usually controls the services and the products it provided before they are transferred to the customer. In certain situations, the Group would consider the primary responsibilities in the arrangement, the establishment of selling price, and the inventory risks, etc. to determine if the Group is acting as a principal or agent. If the Group has assessed and concluded that it does not obtain the control of a specified product before transferring to the customer, the Group is acting as agent in satisfying a performance obligation, and the revenue is recognized in the net amount of any fee or commission to which it expects to be entitled from another party. |
Effective for | ||
accounting periods | ||
beginning on or after | ||
Amendments to IFRS 3, “Business Combinations” – Reference to the Conceptual Framework |
January 1, 2022 | |
Amendments to IAS 16, “Property, Plant and Equipment” – Property, Plant and Equipment: Proceeds Before Intended Use |
January 1, 2022 | |
Amendments to IAS 37, “Provisions, Contingent Liabilities and Contingent Assets” – Onerous Contracts – Cost of Fulfilling a Contract |
January 1, 2022 | |
Annual Improvements to IFRS Standards 2018-2020 Cycle | January 1, 2022 | |
IFRS 17 and Amendments to IFRS 17, “Insurance Contracts” | January 1, 2023 | |
Amendments to IAS 1, “Presentation of Financial Statements” – Classification of Liabilities as Current or Non-Current |
January 1, 2023 | |
Amendments to IAS 1, “Presentation of Financial Statements” and IFRS Practice Statement 2, “Making Materiality Judgements” – Disclosure of Accounting Policies |
January 1, 2023 | |
Amendments to IAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors” – Definition of Accounting Estimates |
January 1, 2023 | |
Amendments to IAS 12, “Income Taxes” – Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction |
January 1, 2023 | |
Amendments to IFRS 10, “Consolidated Financial Statements” and IAS 28, “Investments in Associates and Joint Ventures” – Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture |
To be determined |
Year Ended December 31, |
||||||||||||||||||||||||
2019 |
2020 |
2021 |
||||||||||||||||||||||
Amount |
% of Total |
Amount |
% of Total |
Amount |
% of Total |
|||||||||||||||||||
(in millions of RMB, except percentage data) |
||||||||||||||||||||||||
Operating revenue (1) : |
||||||||||||||||||||||||
Revenue from telecommunications services |
674,392 | 90.4 | 695,692 | 90.6 | 751,409 | 88.6 | ||||||||||||||||||
Revenue from sales of products and others |
71,525 | 9.6 | 72,378 | 9.4 | 96,849 | 11.4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
745,917 | 100.0 | 768,070 | 100.0 | 848,258 | 100.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Operating expenses: |
||||||||||||||||||||||||
Network operation and support expenses |
175,810 | 27.8 | 206,424 | 31.5 | 225,010 | 30.8 | ||||||||||||||||||
Depreciation and amortization |
182,818 | 28.9 | 172,401 | 26.3 | 193,045 | 26.4 | ||||||||||||||||||
Employee benefit and related expenses |
102,518 | 16.2 | 106,429 | 16.2 | 118,680 | 16.3 | ||||||||||||||||||
Selling expenses |
52,813 | 8.3 | 49,943 | 7.6 | 48,243 | 6.6 | ||||||||||||||||||
Cost of products sold |
72,565 | 11.5 | 73,100 | 11.2 | 96,083 | 13.2 | ||||||||||||||||||
Other operating expenses |
46,244 | 7.3 | 47,039 | 7.2 | 49,234 | 6.7 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total |
632,768 | 100.0 | 655,336 | 100.0 | 730,295 | 100.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Profit from operations |
113,149 | 112,734 | 117,963 | |||||||||||||||||||||
Other gains |
4,029 | 5,602 | 8,257 | |||||||||||||||||||||
Interest and other income |
15,560 | 14,341 | 16,729 | |||||||||||||||||||||
Finance costs |
(3,246 | ) | (2,996 | ) | (2,679 | ) | ||||||||||||||||||
Income from investments accounted for using the equity method |
12,641 | 12,678 | 11,914 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Profit before taxation |
142,133 | 142,359 | 152,184 | |||||||||||||||||||||
Taxation |
(35,342 | ) | (34,219 | ) | (35,878 | ) | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Profit for the year |
106,791 | 108,140 | 116,306 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Attributable to: |
||||||||||||||||||||||||
Equity shareholders |
106,641 | 99.9 | 107,843 | 99.7 | 116,148 | 99.9 | ||||||||||||||||||
Non-controlling interests |
150 | 0.1 | 297 | 0.3 | 158 | 0.1 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Profit for the year |
106,791 | 100.0 | 108,140 | 100.0 | 116,306 | 100.0 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Our operating revenue components are revenue from telecommunications services and revenue from sales of products and others. Revenue from telecommunications services consists of revenue from voice services, SMS and MMS, wireless data traffic, wireline broadband, applications and information services, and other telecommunications services. Revenue from sales of products and others is mainly derived from sales of handsets, smart devices and ICT equipment as well as revenue from construction contracts. |
Year Ended December 31, |
Increase (Decrease) |
Change |
||||||||||||||
2020 |
2021 |
|||||||||||||||
(Revenue, in millions of RMB, except percentage data) |
(%) |
|||||||||||||||
Voice services |
78,782 | 76,163 | (2,619 | ) | (3.3 | %) | ||||||||||
SMS and MMS |
29,485 | 31,100 | 1,615 | 5.5 | % | |||||||||||
Wireless data traffic |
385,679 | 392,859 | 7,180 | 1.9 | % | |||||||||||
Wireline broadband |
80,808 | 94,230 | 13,422 | 16.6 | % | |||||||||||
Applications and information services |
101,038 | 136,961 | 35,923 | 35.6 | % | |||||||||||
Other telecommunication services |
19,900 | 20,096 | 196 | 1.0 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
Telecommunications services revenue |
695,692 | 751,409 | 55,717 | 8.0 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
Telecommunications services revenue as a percentage of operating revenue |
90.6 | 88.6 | (2.0 | ) | — |
Years ended December 31, |
||||||||||||
2019 |
2020 |
2021 |
||||||||||
(in millions of RMB) |
||||||||||||
Net cash generated from operating activities |
247,591 | 307,761 | 314,764 | |||||||||
Net cash used in investing activities |
(64,206 | ) | (188,106 | ) | (238,296 | ) | ||||||
Net cash used in financing activities |
(64,901 | ) | (82,252 | ) | (45,201 | ) | ||||||
|
|
|
|
|
|
|||||||
Net increase in cash and cash equivalents |
118,484 | 37,403 | 31,267 | |||||||||
|
|
|
|
|
|
Payments Due by Period |
||||||||||||||||||||
Contractual Obligations |
Total |
Less than 1 year |
1 – 3 years |
3 – 5 years |
More than 5 years |
|||||||||||||||
(in millions of RMB) |
||||||||||||||||||||
Accounts Payable |
152,712 | 152,712 | — | — | — | |||||||||||||||
Bills Payable |
12,747 | 12,747 | — | — | — | |||||||||||||||
Accrued Expenses and Other Payables |
264,545 | 264,545 | — | — | — | |||||||||||||||
Amount Due to Ultimate Holding Company |
23,478 | 23,478 | — | — | — | |||||||||||||||
Lease Liabilities |
61,776 | 26,519 | 19,875 | 8,552 | 6,830 | |||||||||||||||
Other non-current liabilities |
425 | — | 78 | 75 | 272 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total |
515,683 | 480,001 | 19,953 | 8,627 | 7,102 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
Amount of Commitment Expiration Per Period |
||||||||||||||||||||
Other Commercial Commitments |
Total Amount Committed |
Less than 1 year |
1 – 3 years |
3 – 5 years |
More than 5 years |
|||||||||||||||
(in millions of RMB) |
||||||||||||||||||||
Capital Commitments |
33,559 | 26,168 | 7,391 | — | — |
Item 6. |
Directors, Senior Management and Employees. |
Name |
Age |
Position | ||
Mr. YANG Jie | 59 | Executive Director and Chairman | ||
Mr. DONG Xin | 56 | Executive Director and Chief Executive Officer | ||
Mr. LI Ronghua | 56 | Executive Director and Chief Financial Officer | ||
Dr. Moses M.C. CHENG | 72 | Independent Non-Executive Director | ||
Mr. Paul M.Y. CHOW | 75 | Independent Non-Executive Director | ||
Mr. Stephen K.W. YIU | 61 | Independent Non-Executive Director | ||
Dr. YANG Qiang | 60 | Independent Non-Executive Director | ||
Mr. LI Huidi | 53 | Vice President | ||
Mr. GAO Tongqing | 58 | Vice President | ||
Mr. JIAN Qin | 56 | Vice President | ||
Mr. ZHAO Dachun | 51 | Vice President |
• | to review the financial reports, the related report of the independent registered public accounting firm and management’s responses to the reports; |
• | to discuss the audit procedures with the independent registered public accounting firm as well as any issues arising out of such procedures; |
• | to review the appointment of the independent registered public accounting firm, the audit and non-audit fees and any matters relating to the termination or resignation of the independent registered public accounting firm; |
• | to examine the effectiveness of our internal controls, to review our internal audit plan and to submit relevant reports and recommendations to our board of directors on a regular basis; and |
• | to review and supervise the training and continued professional development of and performance of duties by directors and senior management, and to formulate and review manuals (if any) on the performance of duties and compliance by employees and directors and to supervise the implementation of such manuals (if applicable). |
• | to advise the Board in relation to the remuneration structure and payments of our executive directors and executives; and |
• | to represent the Board in confirming the individual remuneration packages and employment terms of executive directors and approving their related employment contracts. |
• | to review, advise and make recommendations to the board on the matters in relation to the appointment and re-appointment of board members; and |
• | to ensure the proper and transparent procedures for the appointment and re-appointment of directors. |
Director |
Number of shares held |
Percentage of ordinary shares |
||||||
Moses M.C. Cheng |
300,000 | 0.0015 | % |
* | Including interest of controlled corporation. |
Item 7. |
Major Shareholders and Related Party Transactions. |
Item 8. |
Financial Information. |
Item 9. |
The Offer and Listing. |
Item 10. |
Additional Information. |
• | for the giving by us of any security or indemnity to the director or his Associates in respect of money lent or obligations incurred or undertaken by him or any of them at the request of, or for, our or any of our subsidiaries’ benefit; |
• | for the giving by us of any security to a third party in respect of our or any of our subsidiaries’ debt or obligation for which the director or his Associates has himself or themselves assumed responsibility or guaranteed or secured in whole or in part whether alone or jointly; |
• | concerning an offer of the shares or debentures or other securities of or by us or any other company which we may promote or be interested in for subscription or purchase where the director or his Associates are, or are to be, interested as a participant in the underwriting or sub-underwriting of the offer; |
• | in which the director or his Associates are interested in the same manner as other holders of our shares or debentures or other securities by virtue only of his or their interest in our shares or debentures or other securities; |
• | concerning any other company in which the director or his Associates are interested, whether directly or indirectly, as an officer or a shareholder or in which the director or his Associates are beneficially interested in shares of that company other than a company in which the director and any of his Associates, are beneficially interested in 5% or more of the issued shares of any class of the equity share capital of such company (or of any third company through which his interest or that of his Associates is derived) or of the voting rights (excluding for the purpose of calculating such 5% interest any indirect interest of such director or his Associates by virtue of our interest in such company); |
• | for the benefit of our or any of our subsidiaries’ employees, including the adoption, modification or operation of a pension fund or retirement, death or disability benefit scheme which relates both to our, or any of our subsidiaries’, directors, his Associates and employees and does not give the director or his Associates any privilege not generally accorded to the class of persons to whom such scheme or fund relates; and |
• | concerning the adoption, modification or operation of any employees’ share scheme involving the issue or grant of options over shares or other securities by us to, or for the benefit of, our or any of our subsidiaries’ employees under which the director or his Associates may benefit. |
• | the chairman of the meeting; |
• | at least three members present in person (or in the case of a member being a corporation, by its duly authorized representative) or by proxy and entitled to vote at the meeting; |
• | any member or members present in person (or in the case of a member being a corporation, by its duly authorized representative) or by proxy and representing in the aggregate not less than five per cent. of the total voting rights of all members having the right to attend and vote at the meeting; or |
• | any member or members present in person (or in the case of a member being a corporation, by its duly authorized representative) or by proxy and holding shares conferring a right to attend and vote at the meeting on which there have been paid up sums in the aggregate equal to not less than five per cent. of the total sum paid up on all shares conferring that right; |
• | a dealer in securities or currencies; |
• | a trader in securities that elects to use a mark-to-market |
• | a tax-exempt organization; |
• | a life insurance company; |
• | a person liable for alternative minimum tax; |
• | a person that actually or constructively owns 10% or more of the combined voting power of our voting stock or of the total value of our stock; |
• | a person that holds ordinary shares as part of a straddle or a hedging or conversion transaction for U.S. federal income tax purposes; |
• | a person that purchases or sells ordinary shares as part of a wash sale for U.S. federal income tax purposes; or |
• | a person whose functional currency is not the U.S. dollar. |
• | a citizen or resident of the United States; |
• | a domestic corporation (or an entity treated as a domestic corporation); |
• | an estate whose income is subject to United States federal income tax regardless of its source; or |
• | a trust if a United States court can exercise primary supervision over the trust’s administration and one or more United States persons are authorized to control all substantial decisions of the trust. |
• | at least 75% of our gross income for the taxable year is passive income; or |
• | at least 50% of the value, determined on the basis of a quarterly average, of our assets is attributable to assets that produce or are held for the production of passive income. |
• | any gain you realize on the sale or other disposition of your ordinary shares; and |
• | any excess distribution that we make to you (generally, any distributions to you during a single taxable year, other than the taxable year in which your holding period in your ordinary shares begins, that are greater than 125% of the average annual distributions received by you in respect of the ordinary shares during the three preceding taxable years or, if shorter, your holding period for the ordinary shares that preceded the taxable year in which you receive the distribution). |
• | the gain or excess distribution will be allocated ratably over your holding period for the ordinary shares; |
• | the amount allocated to the taxable year in which you realized the gain or excess distribution will be taxed as ordinary income; |
• | the amount allocated to each prior year, with certain exceptions, will be taxed at the highest tax rate in effect for that year; and |
• | the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax attributable to each such year. |
Item 11. |
Quantitative and Qualitative Disclosures About Market Risk. |
Expected Maturity Date |
As of December 31, 2021 |
As of December 31, 2020 |
||||||||||||||||||||||||||||||||||||||
2022 |
2023 |
2024 |
2025 |
2026 |
Thereafter |
Total Recorded Amount |
Fair Value |
Total Recorded Amount |
Fair Value |
|||||||||||||||||||||||||||||||
(RMB equivalent in millions) |
||||||||||||||||||||||||||||||||||||||||
On-balance sheet financial instruments |
||||||||||||||||||||||||||||||||||||||||
Restricted bank deposits: |
||||||||||||||||||||||||||||||||||||||||
in U.S. dollars |
36 | — | — | — | — | — | 36 | 36 | 5 | 5 | ||||||||||||||||||||||||||||||
in Hong Kong dollars |
— | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Bank deposits: |
||||||||||||||||||||||||||||||||||||||||
in U.S. dollars |
1,381 | — | — | — | — | — | 1,381 | 1,381 | 1,045 | 1,045 | ||||||||||||||||||||||||||||||
in Hong Kong dollars |
417 | — | — | — | — | — | 417 | 417 | 5,432 | 5,432 | ||||||||||||||||||||||||||||||
Cash and cash equivalents: |
||||||||||||||||||||||||||||||||||||||||
in U.S. dollars |
1,075 | — | — | — | — | — | 1,075 | 1,075 | 1,870 | 1,870 | ||||||||||||||||||||||||||||||
in Hong Kong dollars |
122 | — | — | — | — | — | 122 | 122 | 1,622 | 1,622 |
Item 12. |
Description of Securities Other than Equity Securities. |
ADR holders must pay: |
For: | |
• US$5 (or less) per 100 ADSs (or portion thereof) |
• Each issuance of an ADS, including as a result of a distribution of shares or rights or other property | |
• Each cancellation of an ADS, including if the deposit agreement terminates | ||
• Each distribution of securities, other than shares or ADSs, treating the securities as if they were shares for the purpose of calculating fees | ||
• US$0.02 (or less) per ADS |
• Any cash distribution (not including cash dividend distribution) | |
• Registration or transfer fees |
• Transfer and registration of shares on the share register of our transfer agent and the registrar in Hong Kong from an ADR holder’s name to the name of the depositary or its agent when the ADR holder deposit or withdraw shares | |
• Expenses of the depositary |
• Conversion of Hong Kong dollars to U.S. dollars | |
• Cable, telex and facsimile transmission expenses | ||
• Taxes and other governmental charges the depositary or the custodian has to pay on any ADS or share underlying an ADS; for example, stock transfer taxes, stamp duty or withholding taxes |
• As necessary |
Item 13. |
Defaults, Dividend Arrearages and Delinquencies. |
Item 14. |
Material Modifications to the Rights of Security Holders and Use of Proceeds. |
Item 15. |
Controls and Procedures. |
/s/ DONG Xin |
/s/ LI Ronghua | |||||||
Name: | DONG Xin | Name: | LI Ronghua | |||||
Title: | Executive Director and Chief Executive Officer | Title: | Executive Director and Chief Financial Officer |
Item 16A. |
Audit Committee Financial Expert. |
Item 16B. |
Code of Ethics. |
Item 16C. |
Principal Accountant Fees and Services. |
Audit Fees (1) |
Audit-Related Fees |
Tax Fees (2) |
All Other Fees (2) |
|||||||||||||
(in millions of RMB) |
||||||||||||||||
2020 |
109 | — | 3 | 2 | ||||||||||||
2021 |
98 | — | — | — |
(1) | Includes the fees for services rendered in connection with the audit of internal control over financial reporting as required by Section 404 of the Sarbanes-Oxley Act of 2002. |
(2) | Includes the fees for tax compliance and advisory services, performance improvement and business process optimization advisory services and other advisory services. |
Item 16D. |
Exemptions from the Listing Standards for Audit Committees. |
Item 16E. |
Purchases of Equity Securities by the Issuer and Affiliated Purchasers. |
Item 16F. |
Change in Registrant’s Certifying Accountant. |
Item 16G. |
Corporate Governance. |
Item 16H. |
Mine Safety Disclosure. |
Item 16I. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. |
Item 17. |
Financial Statements. |
Item 18. |
Financial Statements. |
China Mobile Limited: |
||||
F-1 |
||||
F-2 |
||||
F-6 |
||||
F-7 |
||||
F-9 |
||||
F-12 |
||||
F-14 |
||||
F-17 |
Item 19. |
Exhibits. |
(a) | See Item 18 for a list of the financial statements filed as part of this annual report on Form 20-F. |
(b) | Exhibits to this annual report on Form 20-F: |
12.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(a). | |
12.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a). | |
13.1 | Certification of Chief Executive Officer pursuant to Rule 13a-14(b). | |
13.2 | Certification of Chief Financial Officer pursuant to Rule 13a-14(b). | |
15.1 | Letter from PricewaterhouseCoopers Zhong Tian LLP. | |
101.INS | Inline XBRL Instance Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
(1) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2002 (File No. 1-14696), filed with the SEC on June 17, 2003. |
(2) | Incorporated by reference to the Registration Statement on Form F-6 (File No. 333-204640) filed with the SEC with respect to American Depositary Shares representing our shares. |
(3) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2003 (File No. 1-14696), filed with the SEC on June 17, 2004. |
(4) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2004 (File No. 1-14696), filed with the SEC on June 13, 2005. |
(5) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2008 (File No. 1-14696), filed with the SEC on June 23, 2009. |
(6) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2009 (File No. 1-14696), filed with the SEC on June 7, 2010. |
(7) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2010 (File No. 1-14696), filed with the SEC on April 27, 2011. |
(8) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2011 (File No. 1-14696), filed with the SEC on April 25, 2012. |
(9) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2012 (File No. 1-14696), filed with the SEC on April 25, 2013. |
(10) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2013 (File No. 1-14696), filed with the SEC on April 25, 2014. |
(11) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2014 (File No. 1-14696), filed with the SEC on April 24, 2015. |
(12) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2015 (File No. 1-14696), filed with the SEC on April 26, 2016. |
(13) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2016 (File No. 1-14696), filed with the SEC on April 27, 2017. |
(14) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2017 (File No. 1-14696), filed with the SEC on April 26, 2018. |
(15) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2019 (File No. 1-14696), filed with the SEC on April 28, 2020. |
(16) | Incorporated by reference to our Annual Report on Form 20-F for the fiscal year ended December 31, 2020 (File No. 1-14696), filed with the SEC on April 28, 2021. |
CHINA MOBILE LIMITED | ||
By: | /s/ DONG Xin | |
Name: | DONG Xin | |
Title: | Executive Director and Chief Executive Officer |
Page No. | ||||
F-2 | ||||
F-6 | ||||
F-7 |
||||
F-9 |
||||
F-12 |
||||
F-14 | ||||
F -17 |
• |
general IT controls for the billing systems, including access to program controls, program change controls, program development controls and computer operation controls; |
• |
IT application controls over the completeness and accuracy of revenue information generated from the billing systems and the end-to-end reconciliation controls from the billing systems to the accounting system; and |
• |
recalculation of the balances of accounts receivable and advances from customers at period end with the use of a software audit tool using data extracted from the billing systems. |
• |
evaluating the appropriateness of the assets growth rates by comparing them with the SPD Bank’s analysts’ reports; and |
• |
evaluating the appropriateness of the discount rate used by comparing it against discount rate that was independently developed using publicly available industry data. |
/s/ KPMG Huazhen LLP |
We have served as the Company’s auditor since 2021. |
Beijing, China |
April 28, 2022 |
2021 | 2020 | 2019 | ||||||||||||
Note | Million | Million | Million | |||||||||||
Operating revenue |
4 | |||||||||||||
Revenue from telecommunications services |
751,409 | 695,692 | 674,392 | |||||||||||
Revenue from sales of products and others |
96,849 | 72,378 | 71,525 | |||||||||||
|
|
|
|
|
|
|||||||||
848,258 | 768,070 | 745,917 | ||||||||||||
|
|
|
|
|
|
|||||||||
Operating expenses |
||||||||||||||
Network operation and support expenses |
5 | 225,010 | 206,424 | 175,810 | ||||||||||
Depreciation and amortization |
193,045 | 172,401 | 182,818 | |||||||||||
Employee benefit and related expenses |
6 | 118,680 | 106,429 | 102,518 | ||||||||||
Selling expenses |
48,243 | 49,943 | 52,813 | |||||||||||
Cost of products sold |
96,083 | 73,100 | 72,565 | |||||||||||
Other operating expenses |
7 | 49,234 | 47,039 | 46,244 | ||||||||||
|
|
|
|
|
|
|||||||||
730,295 | 655,336 | 632,768 | ||||||||||||
|
|
|
|
|
|
|||||||||
Profit from operations |
117,963 | 112,734 | 113,149 | |||||||||||
Other gains |
8 | 8,257 | 5,602 | 4,029 | ||||||||||
Interest and other income |
9 | 16,729 | 14,341 | 15,560 | ||||||||||
Finance costs |
10 | (2,679 | ) | (2,996 | ) | (3,246 | ) | |||||||
Income from investments accounted for using the equity method |
11,914 | 12,678 | 12,641 | |||||||||||
|
|
|
|
|
|
|||||||||
Profit before taxation |
152,184 | 142,359 | 142,133 | |||||||||||
Taxation |
13(a) | (35,878 | ) | (34,219 | ) | (35,342 | ) | |||||||
|
|
|
|
|
|
|||||||||
PROFIT FOR THE YEAR |
116,306 | 108,140 | 106,791 | |||||||||||
|
|
|
|
|
|
2021 | 2020 | 2019 | ||||||||||||||
Note | Million | Million | Million | |||||||||||||
Other comprehensive income for the year, net of tax: |
||||||||||||||||
Items that will not be subsequently reclassified to profit or loss |
||||||||||||||||
Changes in the fair value of financial assets measured at fair value through other comprehensive income |
(406 | ) | 957 | (75 | ) | |||||||||||
Remeasurement of defined benefit liabilities |
(143 | ) | — | — | ||||||||||||
Share of other comprehensive income/(loss) of investments accounted for using the equity method |
7 | (32 | ) | 14 | ||||||||||||
Items that may be subsequently reclassified to profit or loss |
||||||||||||||||
Currency translation differences |
(882 | ) | (1,915 | ) | 683 | |||||||||||
Share of other comprehensive (loss)/income of investments accounted for using the equity method |
(219 | ) | (585 | ) | 428 | |||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
114,663 | 106,565 | 107,841 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Profit attributable to: |
||||||||||||||||
Equity shareholders of the Company |
116,148 | 107,843 | 106,641 | |||||||||||||
Non-controlling interests |
158 | 297 | 150 | |||||||||||||
|
|
|
|
|
|
|||||||||||
PROFIT FOR THE YEAR |
116,306 | 108,140 | 106,791 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Total comprehensive income attributable to: |
||||||||||||||||
Equity shareholders of the Company |
114,505 | 106,268 | 107,691 | |||||||||||||
Non-controlling interests |
158 | 297 | 150 | |||||||||||||
|
|
|
|
|
|
|||||||||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
114,663 | 106,565 | 107,841 | |||||||||||||
|
|
|
|
|
|
|||||||||||
Earnings per share – Basic |
14(a) | RMB | 5.67 | RMB | 5.27 | RMB | 5.21 | |||||||||
|
|
|
|
|
|
|||||||||||
Earnings per share – Diluted |
14(b) | RMB | 5.67 | RMB | 5.27 | RMB | 5.18 | |||||||||
|
|
|
|
|
|
2021 | 2020 | |||||||||||
Note | Million | Million | ||||||||||
Assets |
||||||||||||
Non-current assets |
||||||||||||
Property, plant and equipment |
15 | 723,305 | 705,547 | |||||||||
Construction in progress |
16 | 71,742 | 71,651 | |||||||||
Right-of-use |
17(a) | 55,350 | 65,091 | |||||||||
Land use rights |
17(b) | 15,739 | 16,192 | |||||||||
Goodwill |
18 | 35,344 | 35,344 | |||||||||
Other intangible assets |
8,171 | 7,213 | ||||||||||
Investments accounted for using the equity method |
20(a) | 169,556 | 161,811 | |||||||||
Deferred tax assets |
21 | 43,216 | 38,998 | |||||||||
Financial assets measured at fair value through other comprehensive income |
22 | 689 | 1,111 | |||||||||
Financial assets measured at fair value through profit or loss |
22 | 78,600 | — | |||||||||
Restricted bank deposits |
23 | 7,046 | 8,836 | |||||||||
Other non-current assets |
24 | 37,198 | 36,345 | |||||||||
1,245,956 | 1,148,139 | |||||||||||
Current assets |
||||||||||||
Inventories |
25 | 10,203 | 8,044 | |||||||||
Contract assets |
26 | 6,551 | 3,841 | |||||||||
Accounts receivable |
27 | 34,668 | 38,401 | |||||||||
Other receivables |
10,137 | 9,923 | ||||||||||
Amount due from ultimate holding company |
28 | 2,612 | 1,396 | |||||||||
Prepayments and other current assets |
29 | 28,291 | 25,713 | |||||||||
Prepaid income tax |
875 | 1,157 | ||||||||||
Other financial assets measured at amortized cost |
30 | 33,884 | 36,724 | |||||||||
Financial assets measured at fair value through profit or loss |
22 | 132,995 | 128,603 | |||||||||
Restricted bank deposits |
23 | 2,163 | 2,830 | |||||||||
Bank deposits |
31 | 89,049 | 110,382 | |||||||||
Cash and cash equivalents |
32 | 243,943 | 212,729 | |||||||||
595,371 | 579,743 | |||||||||||
Total assets |
1,841,327 | 1,727,882 | ||||||||||
2021 |
2020 |
|||||||||||
Note |
Million |
Million |
||||||||||
Equity and liabilities |
||||||||||||
Liabilities |
||||||||||||
Current liabilities |
||||||||||||
Accounts payable |
33 | 152,712 | 167,990 | |||||||||
Bills payable |
12,747 | 4,561 | ||||||||||
Contract liabilities |
34 | 79,068 | 79,028 | |||||||||
Accrued expenses and other payables |
35 | 274,509 | 200,952 | |||||||||
Amount due to ultimate holding company |
28 | 23,478 | 26,714 | |||||||||
Income tax payable |
13,575 | 13,856 | ||||||||||
Lease liabilities |
17(c) | 26,059 | 24,173 | |||||||||
|
|
|
|
|||||||||
582,148 | 517,274 | |||||||||||
|
|
|
|
|||||||||
Non-current liabilities |
||||||||||||
Lease liabilities – non-current |
17(c) | 30,922 | 42,460 | |||||||||
Deferred revenue |
36 | 8,487 | 8,601 | |||||||||
Deferred tax liabilities |
21 | 2,369 | 1,668 | |||||||||
Other non-current liabilities |
7,109 | 5,107 | ||||||||||
|
|
|
|
|||||||||
48,887 | 57,836 | |||||||||||
|
|
|
|
|||||||||
Total liabilities |
631,035 | 575,110 | ||||||||||
|
|
|
|
2021 |
2020 |
|||||||||||
Note |
Million |
Million |
||||||||||
Equity |
||||||||||||
Share capital |
38(a) | 402,130 | 402,130 | |||||||||
Reserves |
804,220 | 746,786 | ||||||||||
Total equity attributable to equity shareholders of the Company |
1,206,350 | 1,148,916 | ||||||||||
Non-controlling interests |
3,942 | 3,856 | ||||||||||
Total equity |
1,210,292 | 1,152,772 | ||||||||||
Total equity and liabilities |
1,841,327 | 1,727,882 | ||||||||||
Attributable to equity shareholders of the Company | ||||||||||||||||||||||||||||||||||||
Share capital |
Capital reserve |
Exchange reserve |
PRC statutory reserves |
Other reserves |
Retained profits |
Total | Non- controlling interests |
Total equity |
||||||||||||||||||||||||||||
Million | Million | Million | Million | Million | Million | Million | Million | Million | ||||||||||||||||||||||||||||
As of January 1, 2019 |
402,130 | (264,723 | ) | 1,034 | 345,129 | 2,246 | 563,483 | 1,049,299 | 3,404 | 1,052,703 | ||||||||||||||||||||||||||
Changes in equity for 2019: |
||||||||||||||||||||||||||||||||||||
Profit for the year |
— | — | — | — | — | 106,641 | 106,641 | 150 | 106,791 | |||||||||||||||||||||||||||
Changes in the fair value of financial assets measured at fair value through other comprehensive income |
— | (75 | ) | — | — | — | — | (75 | ) | — | (75 | ) | ||||||||||||||||||||||||
Currency translation differences |
— | — | 683 | — | — | — | 683 | — | 683 | |||||||||||||||||||||||||||
Share of other comprehensive income of investments accounted for using the equity method |
— | 442 | — | — | — | — | 442 | — | 442 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total comprehensive income for the year |
— | 367 | 683 | — | — | 106,641 | 107,691 | 150 | 107,841 | |||||||||||||||||||||||||||
Dividends approved in respect of previous year (note 38(b)(ii)) |
— | — | — | — | — | (25,059 | ) | (25,059 | ) | (38 | ) | (25,097 | ) | |||||||||||||||||||||||
Dividends declared in respect of current year (note 38(b)(i)) |
— | — | — | — | — | (28,206 | ) | (28,206 | ) | — | (28,206 | ) | ||||||||||||||||||||||||
Transfer to PRC statutory reserves (note 38( c )(ii)) |
— | — | — | 1,094 | — | (1,094 | ) | — | — | — | ||||||||||||||||||||||||||
Transfer to other reserves (note 38( c )(iii)) |
— | — | — | — | 835 | (835 | ) | — | — | — | ||||||||||||||||||||||||||
Others |
— | — | — | — | 48 | — | 48 | — | 48 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
As of December 31, 2019 |
402,130 | (264,356 | ) | 1,717 | 346,223 | 3,129 | 614,930 | 1,103,773 | 3,516 | 1,107,289 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to equity shareholders of the Company | ||||||||||||||||||||||||||||||||||||
Share capital |
Capital reserve |
Exchange reserve |
PRC statutory reserves |
Other reserves |
Retained profits |
Total | Non- controlling interests |
Total equity |
||||||||||||||||||||||||||||
Million | Million | Million | Million | Million | Million | Million | Million | Million | ||||||||||||||||||||||||||||
As of January 1, 2020 |
402,130 | (264,356 | ) | 1,717 | 346,223 | 3,129 | 614,930 | 1,103,773 | 3,516 | 1,107,289 | ||||||||||||||||||||||||||
Changes in equity for 2020: |
||||||||||||||||||||||||||||||||||||
Profit for the year |
— | — | — | — | — | 107,843 | 107,843 | 297 | 108,140 | |||||||||||||||||||||||||||
Changes in the fair value of financial assets measured at fair value through other comprehensive income |
— | 957 | — | — | — | — | 957 | — | 957 | |||||||||||||||||||||||||||
Currency translation differences |
— | — | (1,915 | ) | — | — | — | (1,915 | ) | — | (1,915 | ) | ||||||||||||||||||||||||
Share of other comprehensive loss of investments accounted for using the equity method |
— | (617 | ) | — | — | — | — | (617 | ) | — | (617 | ) | ||||||||||||||||||||||||
Total comprehensive income for the year |
— | 340 | (1,915 | ) | — | — | 107,843 | 106,268 | 297 | 106,565 | ||||||||||||||||||||||||||
Dividends approved in respect of previous year (note 38( b |
— | — | — | — | — | (32,169 | ) | (32,169 | ) | (11 | ) | (32,180 | ) | |||||||||||||||||||||||
Dividends declared in respect of current year (note 38(b)(i)) |
— | — | — | — | — | (27,557 | ) | (27,557 | ) | — | (27,557 | ) | ||||||||||||||||||||||||
Transfer to PRC statutory reserves (note 38( c )(ii)) |
— | — | — | 571 | — | (571 | ) | — | — | — | ||||||||||||||||||||||||||
Transfer to other reserves (note 38( c )(iii)) |
— | — | — | — | 636 | (636 | ) | — | — | — | ||||||||||||||||||||||||||
Share option scheme -Value of share options (note 37) |
— | 232 | — | — | — | — | 232 | — | 232 | |||||||||||||||||||||||||||
Changes in the share of other reserves of investments accounted for using the equity method |
— | (430 | ) | — | — | — | — | (430 | ) | — | (430 | ) | ||||||||||||||||||||||||
Others |
— | (94 | ) | — | — | 21 | (1,128 | ) | (1,201 | ) | 54 | (1,147 | ) | |||||||||||||||||||||||
As of December 31, 2020 |
402,130 | (264,308 | ) | (198 | ) | 346,794 | 3,786 | 660,712 | 1,148,916 | 3,856 | 1,152,772 | |||||||||||||||||||||||||
As of January 1, 2021 |
402,130 | (264,308 | ) | (198 | ) | 346,794 | 3,786 | 660,712 | 1,148,916 | 3,856 | 1,152,772 | |||||||||||||||||||||||||
Changes in equity for 2021: |
||||||||||||||||||||||||||||||||||||
Profit for the year |
— | — | — | — | — | 116,148 | 116,148 | 158 | 116,306 | |||||||||||||||||||||||||||
Changes in the fair value of financial assets measured at fair value through other comprehensive income |
— | (406 | ) | — | — | — | — | (406 | ) | — | (406 | ) | ||||||||||||||||||||||||
Remeasurement of defined benefit liabilities |
— | (143 | ) | — | — | — | — | (143 | ) | — | (143 | ) | ||||||||||||||||||||||||
Currency translation differences |
— | — | (882 | ) | — | — | — | (882 | ) | — | (882 | ) | ||||||||||||||||||||||||
Share of other comprehensive loss of investments accounted for using the equity method |
— | (212 | ) | — | — | — | — | (212 | ) | — | (212 | ) | ||||||||||||||||||||||||
Total comprehensive income for the year |
— | (761 | ) | (882 | ) | — | — | 116,148 | 114,505 | 158 | 114,663 | |||||||||||||||||||||||||
Dividends approved in respect of previous year (note 38(b)(ii)) |
— | — | — | — | — | (29,916 | ) | (29,916 | ) | (72 | ) | (29,988 | ) | |||||||||||||||||||||||
Dividends declared in respect of current year (note 38(b)(i)) |
— | — | — | — | — | (27,669 | ) | (27,669 | ) | — | (27,669 | ) | ||||||||||||||||||||||||
Transfer to PRC statutory reserves (note 38( c )(ii)) |
— | — | — | 579 | — | (579 | ) | — | — | — | ||||||||||||||||||||||||||
Share option scheme -Value of share options (note 37) |
— | 413 | — | — | — | — | 413 | — | 413 | |||||||||||||||||||||||||||
Changes in the share of other reserves of investments accounted for using the equity method |
— | (21 | ) | — | — | — | — | (21 | ) | — | (21 | ) | ||||||||||||||||||||||||
Others |
— | — | — | — | 122 | — | 122 | — | 122 | |||||||||||||||||||||||||||
As of December 31, 2021 |
402,130 | (264,677 | ) | (1,080 | ) | 347,373 | 3,908 | 718,696 | 1,206,350 | 3,942 | 1,210,292 | |||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||
Note | Million | Million | Million | |||||||||||||
Operating activities |
||||||||||||||||
Profit before taxation |
152,184 | 142,359 | 142,133 | |||||||||||||
Adjustments for: |
||||||||||||||||
- Depreciation and amortization |
193,045 | 172,401 | 182,818 | |||||||||||||
- Net loss on disposal and write-off of property, plant and equipment |
7 | 1,748 | 1,547 | 2,911 | ||||||||||||
- Expected credit impairment losses |
7 | 4,171 | 5,084 | 5,761 | ||||||||||||
- Impairment losses of contract assets |
88 | (62 | ) | — | ||||||||||||
- Write-down of inventories |
7 | 280 | 196 | 171 | ||||||||||||
- Interest and other income |
9 | (16,729 | ) | (14,341 | ) | (15,560 | ) | |||||||||
- Finance costs |
10 | 2,679 | 2,996 | 3,246 | ||||||||||||
- Dividend income from equity investments at fair value through other comprehensive income |
— |
(1 |
) |
(2 |
) | |||||||||||
- Income from investments accounted for using the equity method |
(11,914 | ) | (12,678 | ) | (12,641 | ) | ||||||||||
- Net exchange (gain)/loss |
(11 | ) | (32 | ) | 67 | |||||||||||
- Share options expenses |
413 | 232 | — | |||||||||||||
|
|
|
|
|
|
|||||||||||
Operating cash flows before changes in working capital |
325,954 | 297,701 | 308,904 | |||||||||||||
|
|
|
|
|
|
|||||||||||
(Increase)/decrease in inventories |
(2,439 | ) | (902 | ) | 1,348 | |||||||||||
(Increase)/decrease in contract assets |
(3,337 | ) | 1,228 | (64 | ) | |||||||||||
(Increase)/decrease in contract costs |
(3,353 | ) | 1,500 | (9,012 | ) | |||||||||||
Increase in accounts receivable |
(297 | ) | (10,812 | ) | (11,981 | ) | ||||||||||
Increase in other receivables |
(255 | ) | (585 | ) | (1,364 | ) | ||||||||||
(Increase)/decrease in prepayments and other current assets |
(4,667 | ) | 1,538 | (3,075 | ) | |||||||||||
Increase in amount due from ultimate holding company |
(1,216 | ) | (46 | ) | (780 | ) | ||||||||||
Decrease/(increase) in deposited customer reserves |
875 | (897 | ) | 6,447 | ||||||||||||
Increase/(decrease) in accounts payable |
5,546 | 7,896 | (3,334 | ) | ||||||||||||
Increase in bills payable |
4,211 | 829 | 794 | |||||||||||||
Increase /(decrease) in contract liabilities |
40 | 21,203 | (5,360 | ) | ||||||||||||
(Decrease)/increase in deferred revenue |
(114 | ) | 1,740 | 1,980 | ||||||||||||
Increase in accrued expenses and other payables |
24,696 | 18,584 | 508 | |||||||||||||
Increase/(decrease) in amount due to ultimate holding company |
4,305 | (32 | ) | (107 | ) | |||||||||||
Increase in other non-current liabilities |
4,209 | 4,923 | — | |||||||||||||
|
|
|
|
|
|
|||||||||||
Cash generated from operations |
354,158 | 343,868 | 284,904 | |||||||||||||
Tax paid |
||||||||||||||||
- The mainland of China and other countries and regions’ enterprise income tax paid |
(38,991 | ) | (35,776 | ) | (37,300 | ) | ||||||||||
- Hong Kong profits tax paid |
(403 | ) | (331 | ) | (13 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Net cash generated from operating activities |
314,764 | 307,761 | 247,591 | |||||||||||||
|
|
|
|
|
|
2021 | 2020 | 2019 | ||||||||||||
Million | Million | Million | ||||||||||||
Investing activities |
||||||||||||||
Payment for property, plant and equipment |
(202,673 | ) | (189,577 | ) | (202,365 | ) | ||||||||
Payment for land use rights |
(44 | ) | (169 | ) | (355 | ) | ||||||||
Payment for other intangible assets |
(4,594 | ) | (703 | ) | (2,245 | ) | ||||||||
Proceeds from disposal and write-off of property, plant and equipment |
505 | 266 | 423 | |||||||||||
Decrease in bank deposits |
25,596 | 15,008 | 157,709 | |||||||||||
Decrease/(increase) in other financial assets measured at amortized cost |
2,483 | (17,921 | ) | 5,346 | ||||||||||
Decrease/(increase) in restricted bank deposits (excluding deposited customer reserves) |
2,008 | (335 | ) | (4,503 | ) | |||||||||
Interest and other finance income received |
13,361 | 12,999 | 11,550 | |||||||||||
Proceeds from disposal of investments accounted for using the equity method |
523 | 417 | — | |||||||||||
Purchase of investments accounted for using the equity method |
(277 | ) | (1,346 | ) | (161 | ) | ||||||||
Dividends received from investments accounted for using the equity method |
3,926 | 4,362 | 2,299 | |||||||||||
Purchase of financial assets measured at fair value through profit or loss |
(136,813 | ) | (114,893 | ) | (161,343 | ) | ||||||||
Proceeds from disposal of financial assets measured at fair value through profit or loss |
57,687 | 103,479 | 129,505 | |||||||||||
Purchase of financial assets measured at fair value through other comprehensive income |
— | (205 | ) | — | ||||||||||
Proceeds from disposal of financial assets measured at fair value through other comprehensive income |
— | 500 | — | |||||||||||
Others |
16 | 12 | (66 | ) | ||||||||||
|
|
|
|
|
|
|||||||||
Net cash used in investing activities |
(238,296 | ) | (188,106 | ) | (64,206 | ) | ||||||||
|
|
|
|
|
|
2021 | 2020 | 2019 | ||||||||||||||
Note | Million | Million | Million | |||||||||||||
Financing activities |
||||||||||||||||
Subscription funds received from issuance of RMB Shares |
35 | 48,695 | — | — | ||||||||||||
Dividends paid to the Company’s equity shareholders |
(57,585 | ) | (59,726 | ) | (53,265 | ) | ||||||||||
Dividends paid to non-controlling shareholders of subsidiaries |
(72 | ) | (11 | ) | (38 | ) | ||||||||||
Net (repayment)/receipts of short-term deposits placed by CMCC Group |
39(a) | (7,541 | ) | 5,069 | 10,764 | |||||||||||
Interest paid in relation to short-term deposits placed by CMCC Group |
(131 | ) | (170 | ) | (187 | ) | ||||||||||
Repayment of principal and interest of lease liabilities |
(28,502 | ) | (27,346 | ) | (22,175 | ) | ||||||||||
Others |
(65 | ) | (68 | ) | — | |||||||||||
|
|
|
|
|
|
|||||||||||
Net cash used in financing activities |
(45,201 | ) | (82,252 | ) | (64,901 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
Net increase in cash and cash equivalents |
31,267 | 37,403 | 118,484 | |||||||||||||
Cash and cash equivalents at beginning of year |
212,729 | 175,933 | 57,302 | |||||||||||||
Effect of changes in foreign exchange rate |
(53 | ) | (607 | ) | 147 | |||||||||||
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents at end of year |
32 | 243,943 | 212,729 | 175,933 | ||||||||||||
|
|
|
|
|
|
1 |
GENERAL INFORMATION |
2 |
SIGNIFICANT ACCOUNTING POLICIES |
(a) |
Statement of compliance |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(b) |
Basis of preparation |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(c) |
Subsidiaries and non-controlling interests |
(i) |
Subsidiaries |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(c) |
Subsidiaries and non-controlling interests (Continued) |
(ii) |
Separate financial statements |
(iii) |
Business combination other than under common control |
(iv) |
Business combination under common control |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(d) |
Investments in associates and joint arrangements |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(d) |
Investments in associates and joint arrangements (Continued) |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(e) |
Goodwill |
(i) | the aggregate of the fair value of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of the Group’s previously held equity interest in the acquiree; over |
(ii) | the net fair value of the acquiree’s identifiable assets and liabilities measured as of the acquisition date. |
(f) |
Other intangible assets |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(g) |
Property, plant and equipment |
Estimated useful lives |
Estimated residual value rate |
|||||||
Buildings |
8 - 30 years |
3 | % | |||||
Telecommunications transceivers, switching centers, transmission and other network equipment |
5 - 10 years | 0 - 3 |
% | |||||
Office equipment, furniture, fixtures and others |
3 - 10 years | 3 | % |
(h) |
Construction in progress |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(i) |
Leases |
(i) |
As lessee |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(i) |
Leases (Continued) |
(i) |
As lessee (Continued) |
(ii) |
As lessor |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(j) |
Impairment of non-financial assets |
(i) |
Impairment of investments accounted for using the equity method |
• | significant financial difficulty of the entity; |
• | a breach of contract, such as a default or delinquency in interest or principal payments; |
• | it becoming probable that the entity will enter bankruptcy or other financial reorganization; |
• | significant changes in the technological, market, economic or legal environment that have an adverse effect on the entity; and |
• | decline in the fair value of an investment in an equity instrument below its carrying amount. |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(j) |
Impairment of non-financial assets (Continued) |
(ii) |
Impairment of other assets |
• | property, plant and equipment; |
• | right-of-use |
• | construction in progress; |
• | land use rights; |
• | investments in subsidiaries; and |
• | other intangible assets with definite life. |
• | Calculation of recoverable amount |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(j) |
Impairment of non-financial assets (Continued) |
(ii) |
Impairment of other assets (Continued) |
• | Recognition of impairment losses |
• | Reversals of impairment losses |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(k) |
Inventories |
(l) |
Investments and other financial assets |
• | those to be measured at amortized cost, and |
• | those to be measured at fair value (either through other comprehensive income, or through profit or loss). |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(l) |
Investments and other financial assets (Continued) |
(i) | The Group’s financial assets measured at amortized cost represent those financial assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. Interest from these financial assets is included in interest income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in other gains together with foreign exchange gains and losses. Impairment losses are presented in other operating expenses. |
(ii) | Debt investments are classified as fair value through other comprehensive income (“FVOCI”), if the investment is held within a business model whose objective is achieved by both the collection of contractual cash flows and sale and the contractual cash flows of the investment comprise solely payments of principal and interest. Changes in fair value are recognized in other comprehensive income, except for the recognition in profit or loss of expected credit losses, interest income (calculated using the effective interest method) and foreign exchange gains and losses. When the investment is derecognized, the amount accumulated in other comprehensive income is recycled from equity to profit or loss. |
(iii) | Assets that do not meet the criteria for amortized cost or are not elected/classified as FVOCI are classified as FVPL. A gain or loss on a financial instrument that is subsequently measured at FVPL is recognized in profit or loss and presented net within interest and other income in the period in which it arises. |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(l) |
Investments and other financial assets (Continued) |
(m) |
Accounts receivable and other receivables |
(n) |
Cash and cash equivalents |
(o) |
Accounts payable and other payables |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(p) |
Deferred revenue |
(q) |
Interest-bearing borrowings |
(r) |
Revenue recognition from contracts with customers |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(r) |
Revenue recognition from contracts with customers (Continued) |
(i) | Revenue for each performance obligation is recognized when the Group satisfies the performance obligation by transferring the promised services or products to the customer. Generally, revenue is recognized when the customer obtains the control of the telecommunications services over the time of provision of the services. Revenue is recognized when a customer obtains the control of the product at a point of time. |
(ii) | For contracts which include the provision of multiple performance obligations including services and products, the Group allocates the transaction price to each performance obligation based on the relative stand-alone selling price. The stand-alone selling price of services and products are mainly based on its observable selling price. If a stand-alone selling price is not directly observable, the Group considers all information that is reasonably available and maximise the use of observable inputs to estimate the stand-alone selling price. Revenue for each performance obligation is then recognized when the control of the promised services or products is transferred to the customer. |
(iii) | The Group usually controls the services and the products it provided before they are transferred to the customer. In certain situations, the Group would consider the primary responsibilities in the arrangement, the establishment of selling price, and the inventory risks, etc. to determine if the Group is acting as a principal or agent. If the Group has assessed and concluded that it does not obtain the control of a specified product before transferring to the customer, the Group is acting as agent in satisfying a performance obligation, and the revenue is recognized in the net amount of any fee or commission to which it expects to be entitled from another party. |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(r) |
Revenue recognition from contracts with customers (Continued) |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(s) |
Interest income |
(t) |
Income tax |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(t) |
Income tax (Continued) |
• | in the case of current tax assets and liabilities, the Group intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously; or |
• | in the case of deferred tax assets and liabilities, if they relate to income taxes levied by the same taxation authority on either: |
• | the same taxable entity; or |
• | different taxable entities, which, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered, intend to realize the current tax assets and settle the current tax liabilities on a net basis or realize and settle simultaneously. |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(u) |
Provisions and contingent liabilities |
(v) |
Employee benefits |
(i) |
Short-term employee benefits and contributions to defined contribution retirement plans |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(v) |
Employee benefits (Continued) |
(ii) |
Supplementary retirement benefits |
(iii) |
Share-based payments |
(iv) |
Termination benefits |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(w) |
Research and development expenses |
(x) |
Borrowing costs |
(y) |
Translation of foreign currencies |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(z) |
Related parties |
(a) | A person, or a close member of that person’s family, is related to the Group if that person: |
(i) | has control or joint control of the Group; |
(ii) | has significant influence over the Group; or |
(iii) | is a member of the key management personnel of the Group or the Group’s parent. |
(b) | An entity is related to the Group if any of the following conditions applies: |
(i) | The entity and the Group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others); |
(ii) | One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member); |
(iii) | Both entities are joint ventures of the same third party; |
(iv) | One entity is a joint venture of a third entity and the other entity is an associate of the third entity; |
(v) | The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group; |
(vi) | The entity is controlled or jointly controlled by a person identified in note 2(z)(a); or |
(vii) | A person identified in note 2(z)(a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). |
2 |
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) |
(aa) |
Segment reporting |
(ab) |
Dividend distribution |
3 |
CHANGES IN ACCOUNTING POLICIES |
4 |
OPERATING REVENUE |
2021 | 2020 | 2019 | ||||||||||
Million | Million | Million | ||||||||||
Revenue from telecommunications services |
||||||||||||
Voice services |
76,163 | 78,782 | 88,624 | |||||||||
SMS & MMS services |
31,100 | 29,485 | 28,648 | |||||||||
Wireless data traffic services |
392,859 | 385,679 | 384,999 | |||||||||
Wireline broadband services |
94,230 | 80,808 | 68,835 | |||||||||
Applications and information services |
136,961 | 101,038 | 82,543 | |||||||||
Others |
20,096 | 19,900 | 20,743 | |||||||||
751,409 | 695,692 | 674,392 | ||||||||||
Revenue from sales of products and others |
96,849 | 72,378 | 71,525 | |||||||||
848,258 | 768,070 | 745,917 | ||||||||||
5 |
NETWORK OPERATION AND SUPPORT EXPENSES |
2021 | 2020 | 2019 | ||||||||||||||
Note | Million | Million | Million | |||||||||||||
Maintenance, operation support and related expenses |
137,095 | 117,758 | 92,980 | |||||||||||||
Power and utilities expenses |
36,878 | 37,661 | 32,837 | |||||||||||||
Charges for use of tower assets |
(i) (iii) | 26,248 | 26,836 | 25,518 | ||||||||||||
Charges for use of lines and network assets |
(ii) (iii) | 8,272 | 8,224 | 7,715 | ||||||||||||
Charges for use of other assets |
(ii) (iii) | 6,521 | 6,149 | 7,492 | ||||||||||||
Others |
9,996 | 9,796 | 9,268 | |||||||||||||
225,010 | 206,424 | 175,810 | ||||||||||||||
(i) | Charges for use of tower assets include the non-lease components charges (maintenance, certain ancillary facilities usage and related support services) for use of telecommunications towers and variable lease payments not based on an index or a rate, which are recorded in profit or loss as incurred. |
(ii) | Charges for use of lines and network assets and other assets mainly include the non-lease components charges and the lease components charges for lease contracts that are exempted from recognition of right-of-use low-value assets and variable lease payments not based on an index or a rate, which are recorded in profit or loss as incurred. |
(iii) | For the year ended December 31, 2021, short-term lease payments and lease payments of low-value assets amounted to RMB6,576 million (2020: RMB4,462 million; 2019: RMB6,757 million), and variable lease payments not based on an index or a rate, which are recorded in profit or loss as incurred, amounted to RMB7,160 million (2020: RMB7,770 million; 2019: RMB8,186 million). |
6 |
EMPLOYEE BENEFIT AND RELATED EXPENSES |
2021 | 2020 | 2019 | ||||||||||
Million | Million | Million | ||||||||||
Salaries, wages, labor service expenses and other benefits |
102,943 | 95,254 | 86,610 | |||||||||
Retirement costs: contributions to defined contribution retirement plans |
15,324 | 10,943 | 15,908 | |||||||||
Share-based compensation expenses |
413 | 232 | — | |||||||||
118,680 | 106,429 | 102,518 | ||||||||||
2021 | 2020 | |||||||
Million | Million | |||||||
As of January 1 |
4,615 | — | ||||||
Defined benefit costs included in profit or loss |
||||||||
- service cost |
1,178 | 4,615 | ||||||
- interest cost |
145 | — | ||||||
Defined benefit costs included in other comprehensive income |
143 | — | ||||||
Payments during the year |
(267 | ) | — | |||||
As of December 31 |
5,814 | 4,615 | ||||||
7 |
OTHER OPERATING EXPENSES |
2021 | 2020 | 2019 | ||||||||||||||
Note | Million | Million | Million | |||||||||||||
Interconnection |
20,064 | 19,821 | 21,037 | |||||||||||||
Expected credit impairment losses |
4,171 | 5,084 | 5,761 | |||||||||||||
Write-down of inventories |
280 | 196 | 171 | |||||||||||||
Net loss on disposal and write-off of property, plant and equipment |
1,748 | 1,547 | 2,911 | |||||||||||||
Research and development expenses |
(i) | 6,676 | 4,898 | 2,843 | ||||||||||||
Auditors’ remuneration |
||||||||||||||||
- audit services |
(ii) | 98 | 109 | 111 | ||||||||||||
- tax services |
— | 3 | 2 | |||||||||||||
- other services |
— | 2 | 10 | |||||||||||||
Taxes and surcharges |
2,722 | 2,462 | 2,424 | |||||||||||||
Others |
(iii) | 13,475 | 12,917 | 10,974 | ||||||||||||
49,234 | 47,039 | 46,244 | ||||||||||||||
(i) | The item does not include depreciation and amortization and employee benefit and related expenses related to research and development. |
(ii) | Audit services include reporting on the Group’s internal controls over financial reporting pursuant to regulatory requirements at a service fee of RMB19 million (2020: RMB22 million; 2019: RMB22 million). |
(iii) | Others consist of administrative expenses and other miscellaneous expenses. |
8 |
OTHER GAINS |
2021 | 2020 | 2019 | ||||||||||
Million | Million | Million | ||||||||||
Compensation income |
968 | 758 | 915 | |||||||||
Additional deduction of input VAT |
4,411 | 2,813 | 667 | |||||||||
Others |
2,878 | 2,031 | 2,447 | |||||||||
8,257 | 5,602 | 4,029 | ||||||||||
9 |
INTEREST AND OTHER INCOME |
2021 | 2020 | 2019 | ||||||||||
Million | Million | Million | ||||||||||
Interest income |
10,934 | 11,447 | 10,065 | |||||||||
Net gains on hold/disposal of financial assets |
5,795 | 2,894 | 5,495 | |||||||||
16,729 | 14,341 | 15,560 | ||||||||||
10 |
FINANCE COSTS |
2021 | 2020 | 2019 | ||||||||||
Million | Million | Million | ||||||||||
Interest for lease liabilities |
2,383 | 2,806 | 3,052 | |||||||||
Interest paid for short-term deposits received (note 39(a)) |
131 | 170 | 187 | |||||||||
Others |
165 | 20 | 7 | |||||||||
2,679 | 2,996 | 3,246 | ||||||||||
11 |
DIRECTORS’ AND OTHER SENIOR MANAGEMENT’S REMUNERATION |
Directors’ fees ’000 |
Salaries, allowances and bonuses ’000 |
Contributions relating to social insurance, housing fund and retirement scheme ’000 |
2021 Total ’000 |
|||||||||||||
Executive directors (Expressed in RMB) |
||||||||||||||||
YANG Jie 1 |
— | 918 | 214 | 1,132 | ||||||||||||
DONG Xin 2 |
— | 929 | 214 | 1,143 | ||||||||||||
WANG Yuhang 3 |
— | 850 | 206 | 1,056 | ||||||||||||
LI Ronghua 4 |
— | 600 | 205 | 805 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
— | 3,297 | 839 | 4,136 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Independent non-executive directors (Expressed in Hong Kong dollar) |
||||||||||||||||
CHENG Mo Chi, Moses |
460 | — | — | 460 | ||||||||||||
CHOW Man Yiu, Paul |
455 | — | — | 455 | ||||||||||||
YIU Kin Wah, Stephen |
470 | — | — | 470 | ||||||||||||
YANG Qiang |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,385 | — | — | 1,385 | |||||||||||||
|
|
|
|
|
|
|
|
Directors’ fees ’000 |
Salaries, allowances and bonuses ’000 |
Contributions relating to social insurance, housing fund and retirement scheme ’000 |
2020 Total ’000 |
|||||||||||||
Executive directors (Expressed in RMB) |
||||||||||||||||
YANG Jie 1 |
— | 830 | 157 | 987 | ||||||||||||
DONG Xin 2 |
— | 829 | 148 | 977 | ||||||||||||
WANG Yuhang 3 |
— | 757 | 149 | 906 | ||||||||||||
LI Ronghua 4 |
— | 123 | 38 | 161 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
— | 2,539 | 492 | 3,031 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Independent non-executive directors (Expressed in Hong Kong dollar) |
||||||||||||||||
CHENG Mo Chi, Moses |
460 | — | — | 460 | ||||||||||||
CHOW Man Yiu, Paul |
455 | — | — | 455 | ||||||||||||
YIU Kin Wah, Stephen |
470 | — | — | 470 | ||||||||||||
YANG Qiang |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,385 | — | — | 1,385 | |||||||||||||
|
|
|
|
|
|
|
|
11 |
DIRECTORS’ AND OTHER SENIOR MANAGEMENT’S REMUNERATION (CONTINUED) |
Directors’ fees ’000 |
Salaries, allowances and bonuses ’000 |
Contributions relating to social insurance, housing fund and retirement scheme ’000 |
2019 Total ’000 |
|||||||||||||
Executive directors (Expressed in RMB) |
||||||||||||||||
YANG Jie 1 |
— | 461 | 169 | 630 | ||||||||||||
SHANG Bing 5 |
— | 1,354 | 89 | 1,443 | ||||||||||||
LI Yue 6 |
— | 1,585 | 187 | 1,772 | ||||||||||||
WANG Yuhang 3 |
— | 415 | 163 | 578 | ||||||||||||
DONG Xin 2 |
— | 1,469 | 195 | 1,664 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
— | 5,284 | 803 | 6,087 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Independent non-executive directors (Expressed in Hong Kong dollar) |
||||||||||||||||
CHENG Mo Chi, Moses |
460 | — | — | 460 | ||||||||||||
CHOW Man Yiu, Paul |
455 | — | — | 455 | ||||||||||||
YIU Kin Wah, Stephen |
470 | — | — | 470 | ||||||||||||
YANG Qiang |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
1,385 | — | — | 1,385 | |||||||||||||
|
|
|
|
|
|
|
|
1 | Mr. YANG Jie was appointed as an executive director and the chairman of the Company with effect from March 21, 2019. |
2 | Mr. Dong Xin was appointed as the chief executive officer of the Company with effect from August 13, 2020 and had ceased to serve as the chief financial officer of the Company. |
3 | Mr. WANG Yuhang was appointed as an executive director of the Company with effect from October 24, 2019. |
4 | Mr. LI Ronghua was appointed as an executive director and the chief financial officer of the Company with effect from October 15, 2020. |
5 | Mr. SHANG Bing resigned from his position as an executive director and the chairman of the Company with effect from March 4, 2019. |
6 | Mr. LI Yue resigned from his position as an executive director and chief executive officer of the Company with effect from October 11, 2019. |
11 |
DIRECTORS’ AND OTHER SENIOR MANAGEMENT’S REMUNERATION (CONTINUED) |
12 |
INDIVIDUALS WITH HIGHEST EMOLUMENTS |
2021 | 2020 | 2019 | ||||||||||
’000 | ’000 | ’000 | ||||||||||
Salaries, allowances and benefits in kind |
7,765 | 7,684 | 6,592 | |||||||||
Performance related bonuses |
5,775 | 4,545 | 4,314 | |||||||||
Retirement scheme contributions |
336 | 215 | 187 | |||||||||
|
|
|
|
|
|
|||||||
13,876 | 12,444 | 11,093 | ||||||||||
|
|
|
|
|
|
2021 | 2020 | 2019 | ||||||||||
Number of individuals |
Number of individuals |
Number of individuals |
||||||||||
Emolument bands |
||||||||||||
2,000,001 - 2,500,000 |
3 | 4 | 5 | |||||||||
2,500,001 - 3,000,000 |
1 | 1 | — | |||||||||
4,000,001 - 4,500,000 |
1 | — | — | |||||||||
|
|
|
|
|
|
13 |
TAXATION |
(a) |
Taxation in the consolidated statement of comprehensive income represents: |
2021 |
2020 |
2019 |
||||||||||||||
Note |
Million |
Million |
Million |
|||||||||||||
Current tax |
||||||||||||||||
Provision for enterprise income tax in the mainland of China and other countries and regions on the estimated assessable profits for the year |
(i) | 38,957 | 39,870 | 36,989 | ||||||||||||
Provision for Hong Kong profits tax on the estimated assessable profits for the year |
(ii) | 431 | 400 | 269 | ||||||||||||
|
|
|
|
|
|
|||||||||||
39,388 | 40,270 | 37,258 | ||||||||||||||
Deferred tax |
||||||||||||||||
Origination and reversal of temporary differences, net (note 21) |
(3,510 | ) | (6,051 | ) | (1,916 | ) | ||||||||||
|
|
|
|
|
|
|||||||||||
35,878 | 34,219 | 35,342 | ||||||||||||||
|
|
|
|
|
|
(i) | The provision for enterprise income tax in the mainland of China and other countries and regions has been calculated on the estimated assessable profits for the year at the rates of taxation prevailing in the regions in which the Group operates. The Company’s subsidiaries operate mainly in the mainland of China. The provision for the PRC enterprise income tax is based on the statutory tax rate of 25% (2020: 25% ; 2019: 25%) on the estimated assessable profits determined in accordance with the relevant income tax rules and regulations of the PRC for the year ended December 31, 2021. Certain subsidiaries of the Company entitle to the preferential tax rate of 15% (2020: 15%; 2019: 15%), and certain research and development costs of the Company’s PRC subsidiaries are qualified for 75% (2020: 75%; 2019: 75%) additional deduction for tax purpose. |
(ii) | The provision for Hong Kong profits tax is calculated at 16.5% (2020: 16.5% ; 2019: 16.5%) of the estimated assessable profits for the year ended December 31, 2021. |
(iii) | Pursuant to the “Notice regarding Matters on Determination of Tax Residence Status of Chinese-controlled Offshore Incorporated Enterprises under Rules of Effective Management” issued by SAT in 2009 (“2009 Notice”), the Company is qualified as a PRC offshore-registered resident enterprise. Accordingly, the dividend income of the Company from its subsidiaries in the PRC is exempted from PRC enterprise income tax. |
13 |
TAXATION (CONTINUED) |
(b) |
Reconciliations between income tax expense and accounting profit at applicable tax rates: |
2021 |
2020 |
2019 |
||||||||||
Million |
Million |
Million |
||||||||||
Profit before taxation |
152,184 | 142,359 | 142,133 | |||||||||
|
|
|
|
|
|
|||||||
Notional tax on profit before tax, calculated at the PRC’s statutory tax rate of 25% (Note) |
38,046 | 35,590 | 35,533 | |||||||||
Tax effect of non-taxable items |
||||||||||||
- Income from investments accounted for using the equity method |
(2,855 | ) | (3,086 | ) | (3,160 | ) | ||||||
- Other non-taxable income |
(33 | ) | (47 | ) | (75 | ) | ||||||
Tax effect of non-deductible expenses |
1,162 | 1,205 | 1,325 | |||||||||
Tax rate differential (note 13(a)(i)(ii)) |
(1,881 | ) | (1,194 | ) | (1,107 | ) | ||||||
Tax effect of deductible temporary difference and deductible tax loss for which no deferred tax asset was recognized (note 21) |
1,972 | 2,109 | 2,687 | |||||||||
Additional deduction for qualified research and development costs |
(533 | ) | (358 | ) | (282 | ) | ||||||
Others |
|
|
— |
|
|
|
— |
|
|
|
421 |
|
|
|
|
|
|
|
|||||||
Taxation |
35,878 | 34,219 | 35,342 | |||||||||
|
|
|
|
|
|
Note: | The PRC’s statutory tax rate is adopted as the majority of the Group’s operations are subject to this rate. |
(c) |
The tax (charged)/credited relating to components of other comprehensive income is as follows: |
2021 |
2020 |
2019 |
||||||||||||||||||||||||||||||||||
Before tax |
Tax charged |
After tax |
Before tax |
Tax credited |
After tax |
Before tax |
Tax charged |
After tax |
||||||||||||||||||||||||||||
Million |
Million |
Million |
Million |
Million |
Million |
Million |
Million |
Million |
||||||||||||||||||||||||||||
Changes in value of financial assets measured at FVOCI |
(398 | ) | (8 | ) | (406 | ) | 956 | 1 | 957 | (74 | ) | (1 | ) | (75 | ) | |||||||||||||||||||||
Remeasurement of defined benefit liabilities |
(143 | ) | — | (143 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||
Currency translation differences |
(882 | ) | — | (882 | ) | (1,915 | ) | — | (1,915 | ) | 683 | — | 683 | |||||||||||||||||||||||
Share of other comprehensive (loss)/income of investments accounted for using the equity method |
(212 | ) | — | (212 | ) | (617 | ) | — | (617 | ) | 442 | — | 442 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Other comprehensive (loss)/income |
(1,635 | ) | (8 | ) | (1,643 | ) | (1,576 | ) | 1 | (1,575 | ) | 1,051 | (1 | ) | 1,050 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Current tax |
— | — | — | |||||||||||||||||||||||||||||||||
Deferred tax |
(8 | ) | 1 | (1 | ) | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
(8 | ) | 1 | (1 | ) | ||||||||||||||||||||||||||||||||
|
|
|
|
|
|
14 |
EARNINGS PER SHARE |
(a) |
Basic earnings per share |
(b) |
Diluted earnings per share |
(i) |
Convertible bonds issued by an associate of the Group (“CB”) (note 22); |
(ii) |
Share options issued by the Company (note 37); and |
(iii) |
The RMB Shares publicly offered but had yet to be listed on the Shanghai Stock Exchange as of December 31, 2021 (note 42). |
(i) |
The CB had a dilutive effect on earnings per share for 2021 (2020: anti-dilutive, 2019: dilutive), as the assumed conversion would have decreased the profit attributable to equity shareholders of the Company for 2021 (2020: increased, 2019: decreased). |
(ii) |
The share options have been outstanding but had no dilutive effect for 2021 (2020: no dilutive effect), since the exercise price of the share options exceeded the average market price of the Company’s ordinary shares on the HKEX during the period the share options were outstanding (2020: exceeded the average market price during the period from grant date to December 31, 2020). |
(iii) |
For the RMB Shares offered, the offer price was not lower than its fair value during the period from the subscription date to December 31, 2021. |
14 |
EARNINGS PER SHARE (CONTINUED) |
(b) |
Diluted earnings per share (Continued) |
2021 |
2020 |
2019 |
||||||||||
Million |
Million |
Million |
||||||||||
(Note) |
||||||||||||
Profit attributable to equity shareholders of the Company used in calculating basic earnings per share |
116,148 | 107,843 | 106,641 | |||||||||
Add: changes in share of profit of the associate |
308 | 41 | ||||||||||
Less: fair value gain and interest income relating to the CB held by the Group, net of tax |
(336 | ) | (632 | ) | ||||||||
Profit attributable to equity shareholders of the Company used in calculating diluted earnings per share |
116,120 | 106,050 | ||||||||||
15 |
PROPERTY, PLANT AND EQUIPMENT |
Buildings Million |
Telecommunications transceivers, switching centers, transmission and other network equipment Million |
Office equipment, furniture, fixtures and others Million |
Total Million |
|||||||||||||
Cost: |
||||||||||||||||
As of January 1, 2020 |
161,490 | 1,608,355 | 25,917 | 1,795,762 | ||||||||||||
Reclassification |
(2,092 | ) | 12,387 | (10,295 | ) | — | ||||||||||
Transferred from construction in progress |
5,339 | 164,378 | 3,032 | 172,749 | ||||||||||||
Other additions |
163 | 1,935 | 982 | 3,080 | ||||||||||||
Disposals |
(5 | ) | (63 | ) | (81 | ) | (149 | ) | ||||||||
Write-off |
(337 | ) | (45,260 | ) | (1,733 | ) | (47,330 | ) | ||||||||
Exchange differences |
(189 | ) | (444 | ) | (20 | ) | (653 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2020 |
164,369 | 1,741,288 | 17,802 | 1,923,459 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
As of January 1, 2021 |
164,369 | 1,741,288 | 17,802 | 1,923,459 | ||||||||||||
Transferred from construction in progress |
6,751 | 170,961 | 945 | 178,657 | ||||||||||||
Other additions |
542 | 2,917 | 536 | 3,995 | ||||||||||||
Disposals |
(5 | ) | (66 | ) | (30 | ) | (101 | ) | ||||||||
Write-off |
(688 | ) | (48,667 | ) | (2,099 | ) | (51,454 | ) | ||||||||
Exchange differences |
(136 | ) | (304 | ) | (6 | ) | (446 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2021 |
170,833 | 1,866,129 | 17,148 | 2,054,110 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Accumulated depreciation and impairment: |
||||||||||||||||
As of January 1, 2020 |
58,117 | 1,046,055 | 16,758 | 1,120,930 | ||||||||||||
Reclassification |
(1,333 | ) | 6,600 | (5,267 | ) | — | ||||||||||
Charge for the year |
6,073 | 133,912 | 2,897 | 142,882 | ||||||||||||
Written back on disposals |
(2 | ) | (27 | ) | (59 | ) | (88 | ) | ||||||||
Write-off |
(292 | ) | (43,643 | ) | (1,654 | ) | (45,589 | ) | ||||||||
Exchange differences |
(43 | ) | (173 | ) | (7 | ) | (223 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2020 |
62,520 | 1,142,724 | 12,668 | 1,217,912 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
As of January 1, 2021 |
62,520 | 1,142,724 | 12,668 | 1,217,912 | ||||||||||||
Charge for the year |
6,168 | 154,461 | 1,692 | 162,321 | ||||||||||||
Written back on disposals |
(3 | ) | (52 | ) | (14 | ) | (69 | ) | ||||||||
Write-off |
(421 | ) | (46,815 | ) | (1,984 | ) | (49,220 | ) | ||||||||
Exchange differences |
(24 | ) | (111 | ) | (4 | ) | (139 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2021 |
68,240 | 1,250,207 | 12,358 | 1,330,805 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net book value: |
||||||||||||||||
As of December 31, 2021 |
102,593 | 615,922 | 4,790 | 723,305 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
As of December 31, 2020 |
101,849 | 598,564 | 5,134 | 705,547 | ||||||||||||
|
|
|
|
|
|
|
|
15 |
PROPERTY, PLANT AND EQUIPMENT (CONTINUED) |
16 |
CONSTRUCTION IN PROGRESS |
2021 | 2020 | |||||||
Million | Million | |||||||
As of January 1 |
71,651 | 67,978 | ||||||
Additions |
178,748 | 176,422 | ||||||
Transferred to property, plant and equipment |
(178,657 | ) | (172,749 | ) | ||||
|
|
|
|
|||||
As of December 31 |
71,742 | 71,651 | ||||||
|
|
|
|
17 |
LEASES |
(a) |
Right-of-use |
Telecommunications Towers and related assets Million |
Buildings and premises Million |
Others Million |
Total Million |
|||||||||||||
Cost: |
||||||||||||||||
As of January 1, 2020 |
78,975 | 43,327 | 4,117 | 126,419 | ||||||||||||
Additions |
7,100 | 10,554 | 1,302 | 18,956 | ||||||||||||
Termination of lease contracts |
(309 | ) | (3,496 | ) | (341 | ) | (4,146 | ) | ||||||||
Early termination and modification of lease contracts |
(1,654 | ) | (2,127 | ) | (105 | ) | (3,886 | ) | ||||||||
Exchange differences |
— | (99 | ) | — | (99 | ) | ||||||||||
As of December 31, 2020 |
84,112 | 48,159 | 4,973 | 137,244 | ||||||||||||
As of January 1, 2021 |
84,112 | 48,159 | 4,973 | 137,244 | ||||||||||||
Additions |
7,322 | 9,400 | 1,759 | 18,481 | ||||||||||||
Termination of lease contracts |
(936 | ) | (6,966 | ) | (948 | ) | (8,850 | ) | ||||||||
Early termination and modification of lease contracts |
(1,480 | ) | (1,304 | ) | (389 | ) | (3,173 | ) | ||||||||
Exchange differences |
— | (47 | ) | — | (47 | ) | ||||||||||
As of December 31, 2021 |
89,018 | 49,242 | 5,395 | 143,655 | ||||||||||||
Accumulated amortization and impairment: |
||||||||||||||||
As of January 1, 2020 |
29,761 | 19,656 | 2,694 | 52,111 | ||||||||||||
Charge for the year |
15,883 | 9,179 | 950 | 26,012 | ||||||||||||
Termination of lease contracts |
(309 | ) | (3,496 | ) | (341 | ) | (4,146 | ) | ||||||||
Early termination and modification of lease contracts |
(933 | ) | (782 | ) | (64 | ) | (1,779 | ) | ||||||||
Exchange differences |
— | (45 | ) | — | (45 | ) | ||||||||||
As of December 31, 2020 |
44,402 | 24,512 | 3,239 | 72,153 | ||||||||||||
As of January 1, 2021 |
44,402 | 24,512 | 3,239 | 72,153 | ||||||||||||
Charge for the year |
16,545 | 9,232 | 762 | 26,539 | ||||||||||||
Termination of lease contracts |
(936 | ) | (6,966 | ) | (948 | ) | (8,850 | ) | ||||||||
Early termination and modification of lease contracts |
(456 | ) | (674 | ) | (380 | ) | (1,510 | ) | ||||||||
Exchange differences |
— | (27 | ) | — | (27 | ) | ||||||||||
As of December 31, 2021 |
59,555 | 26,077 | 2,673 | 88,305 | ||||||||||||
Net book value: |
||||||||||||||||
As of December 31, 2021 |
29,463 | 23,165 | 2,722 | 55,350 | ||||||||||||
As of December 31, 2020 |
39,710 | 23,647 | 1,734 | 65,091 | ||||||||||||
17 |
LEASES (CONTINUED) |
(b) |
Land use rights |
(c) |
Lease liabilities |
18 |
GOODWILL |
2021 | 2020 | |||||||
Million | Million | |||||||
As of January 1 |
35,344 | 35,343 | ||||||
Additions |
— | 1 | ||||||
As of December 31 |
35,344 | 35,344 | ||||||
19 |
SUBSIDIARIES |
No. |
Name of company* |
Place of incorporation/ establishment and operation |
Particulars of issued and paid up capital |
Proportion of ownership interest |
Principal activity | |||||||||||||
Held by the Company |
Held by a subsidiary |
|||||||||||||||||
1 |
China Mobile Communication (BVI) Limited |
the British Virgin Islands (“BVI”) | HK$ | 1 | 100 | % | — | Investment | ||||||||||
2 |
China Mobile Communication Co., Ltd. (“CMC”)** |
the mainland of China | RMB | 1,641,848,326 | — | 100 | % | Network and business coordination center | ||||||||||
3 |
China Mobile Group Guangdong Co., Ltd. (“Guangdong Mobile”) |
the mainland of China | RMB | 5,594,840,700 | — | 100 | % | Telecommunications operator | ||||||||||
4 |
China Mobile Group Zhejiang Co., Ltd. |
the mainland of China | RMB | 2,117,790,000 | — | 100 | % | Telecommunications operator | ||||||||||
5 |
China Mobile Group Jiangsu Co., Ltd. |
the mainland of China | RMB | 2,800,000,000 | — | 100 | % | Telecommunications operator | ||||||||||
6 |
China Mobile Group Fujian Co., Ltd. |
the mainland of China | RMB | 5,247,480,000 | — | 100 | % | Telecommunications operator | ||||||||||
7 |
China Mobile Group Henan Co., Ltd. |
the mainland of China | RMB | 4,367,733,641 | — | 100 | % | Telecommunications operator | ||||||||||
8 |
China Mobile Group Hainan Co., Ltd. |
the mainland of China | RMB | 643,000,000 | — | 100 | % | Telecommunications operator | ||||||||||
9 |
China Mobile Group Beijing Co., Ltd. |
the mainland of China | RMB | 6,124,696,053 | — | 100 | % | Telecommunications operator | ||||||||||
10 |
China Mobile Group Shanghai Co., Ltd. |
the mainland of China | RMB | 6,038,667,706 | — | 100 | % | Telecommunications operator | ||||||||||
11 |
China Mobile Group Tianjin Co., Ltd. |
the mainland of China | RMB | 2,151,035,483 | — | 100 | % | Telecommunications operator | ||||||||||
12 |
China Mobile Group Hebei Co., Ltd. |
the mainland of China | RMB | 4,314,668,531 | — | 100 | % | Telecommunications operator | ||||||||||
13 |
China Mobile Group Liaoning Co., Ltd. |
the mainland of China | RMB | 5,140,126,680 | — | 100 | % | Telecommunications operator | ||||||||||
14 |
China Mobile Group Shandong Co., Ltd. |
the mainland of China | RMB | 6,341,851,146 | — | 100 | % | Telecommunications operator | ||||||||||
15 |
China Mobile Group Guangxi Co., Ltd. |
the mainland of China | RMB | 2,340,750,100 | — | 100 | % | Telecommunications operator | ||||||||||
16 |
China Mobile Group Anhui Co., Ltd. |
the mainland of China | RMB | 4,099,495,494 | — | 100 | % | Telecommunications operator | ||||||||||
17 |
China Mobile Group Jiangxi Co., Ltd. |
the mainland of China | RMB | 2,932,824,234 | — | 100 | % | Telecommunications operator | ||||||||||
18 |
China Mobile Group Chongqing Co., Ltd. |
the mainland of China | RMB | 3,029,645,401 | — | 100 | % | Telecommunications operator |
19 |
SUBSIDIARIES (CONTINUED) |
No. |
Name of company* |
Place of incorporation/ establishment and operation |
Particulars of issued and paid up capital |
Proportion of ownership interest |
Principal activity | |||||||||||||
Held by the Company |
Held by a subsidiary |
|||||||||||||||||
19 |
China Mobile Group Sichuan Co., Ltd. |
the mainland of China | RMB | 7,483,625,572 | — | 100 | % | Telecommunications operator | ||||||||||
20 |
China Mobile Group Hubei Co., Ltd. |
the mainland of China | RMB | 3,961,279,556 | — | 100 | % | Telecommunications operator | ||||||||||
21 |
China Mobile Group Hunan Co., Ltd. |
the mainland of China | RMB | 4,015,668,593 | — | 100 | % | Telecommunications operator | ||||||||||
22 |
China Mobile Group Shaanxi Co., Ltd. |
the mainland of China | RMB | 3,171,267,431 | — | 100 | % | Telecommunications operator | ||||||||||
23 |
China Mobile Group Shanxi Co., Ltd. |
the mainland of China | RMB | 2,773,448,313 | — | 100 | % | Telecommunications operator | ||||||||||
24 |
China Mobile Group Neimenggu Co., Ltd. |
the mainland of China | RMB | 2,862,621,870 | — | 100 | % | Telecommunications operator | ||||||||||
25 |
China Mobile Group Jilin Co., Ltd. |
the mainland of China | RMB | 3,277,579,314 | — | 100 | % | Telecommunications operator | ||||||||||
26 |
China Mobile Group Heilongjiang Co., Ltd. |
the mainland of China | RMB | 4,500,508,035 | — | 100 | % | Telecommunications operator | ||||||||||
27 |
China Mobile Group Guizhou Co., Ltd. |
the mainland of China | RMB | 2,541,981,749 | — | 100 | % | Telecommunications operator | ||||||||||
28 |
China Mobile Group Yunnan Co., Ltd. |
the mainland of China | RMB | 4,137,130,733 | — | 100 | % | Telecommunications operator | ||||||||||
29 |
China Mobile Group Xizang Co., Ltd. |
the mainland of China | RMB | 5,698,643,686 | — | 100 | % | Telecommunications operator | ||||||||||
30 |
China Mobile Group Gansu Co., Ltd. |
the mainland of China | RMB | 1,702,599,589 | — | 100 | % | Telecommunications operator | ||||||||||
31 |
China Mobile Group Qinghai Co., Ltd. |
the mainland of China | RMB | 3,422,564,911 | — | 100 | % | Telecommunications operator | ||||||||||
32 |
China Mobile Group Ningxia Co., Ltd. |
the mainland of China | RMB | 740,447,232 | — | 100 | % | Telecommunications operator | ||||||||||
33 |
China Mobile Group Xinjiang Co., Ltd. |
the mainland of China | RMB | 9,381,599,639 | — | 100 | % | Telecommunications operator | ||||||||||
34 |
China Mobile Group Design Institute Co., Ltd. |
the mainland of China | RMB | 160,232,547 | — | 100 | % | Provision of telecommunications network planning design and consulting services | ||||||||||
35 |
China Mobile Holding Company Limited** |
the mainland of China | US$ | 30,000,000 | 100 | % | — | Investment holding company | ||||||||||
36 |
China Mobile Information Technology Co., Ltd.** |
the mainland of China | US$ | 7,633,000 | — | 100 | % | Provision of roaming clearance, IT system operation technology support services | ||||||||||
37 |
Aspire Holdings Limited |
Cayman Islands | HK$ | 93,964,583 | 66.41 | % | — | Investment | ||||||||||
38 |
Aspire (BVI) Limited # |
BVI | US$ | 1,000 | — | 100 | % | Investment |
19 |
SUBSIDIARIES (CONTINUED) |
No. |
Name of company* |
Place of incorporation/ establishment and operation |
Particulars of issued and paid up capital |
Proportion of ownership interest |
Principal activity | |||||||||||||
Held by the Company |
Held by a subsidiary |
|||||||||||||||||
39 |
Aspire Technologies (Shenzhen) Limited** # |
the mainland of China | US$ | 10,000,000 | — | 100 | % | Development, services and maintenance of industry value-added platform | ||||||||||
40 |
Aspire Information Network (Shenzhen) Limited** # |
the mainland of China | US$ | 5,000,000 | — | 100 | % | Provision of mobile data solutions, system integration and development | ||||||||||
41 |
Aspire Information Technologies (Beijing) Limited** # |
the mainland of China | US$ | 5,000,000 | — | 100 | % | Operation support and capability service of digital content | ||||||||||
42 |
Fujian FUNO Mobile Communication Technology Company Limited*** |
the mainland of China | RMB | 60,000,000 | — | 51 | % | Network construction and maintenance, network planning and optimizing training and information services | ||||||||||
43 |
Advanced Roaming & Clearing House Limited |
BVI | US$ | 2 | 100 | % | — | Provision of roaming clearance services | ||||||||||
44 |
Fit Best Limited |
BVI | US$ | 1 | 100 | % | — | Investment holding company | ||||||||||
45 |
China Mobile Hong Kong Company Limited |
Hong Kong | HK$ | 951,046,930 | — | 100 | % | Provision of telecommunications and related services | ||||||||||
46 |
China Mobile International Holdings Limited |
Hong Kong | HK$ | 19,319,810,000 | 100 | % | — | Investment holding company | ||||||||||
47 |
China Mobile International Limited |
Hong Kong | HK$ | 8,100,000,000 | — | 100 | % | Provision of voice and roaming clearance services, internet services and value-added services | ||||||||||
48 |
China Mobile Group Device Co., Ltd. |
the mainland of China | RMB | 6,200,000,000 | — | 99.97 | % | Provision of electronic communication products design services and sale of related products | ||||||||||
49 |
China Mobile Group Finance Co., Ltd. (“China Mobile Finance”) |
the mainland of China | RMB | 11,627,783,669 | — | 92 | % | Provision of non-banking financial services | ||||||||||
50 |
China Mobile IoT Company Limited |
the mainland of China | RMB | 3,300,000,000 | — | 100 | % | Provision of network services | ||||||||||
51 |
China Mobile (Suzhou) Software Technology Co., Ltd. |
the mainland of China | RMB | 3,172,000,000 | — | 100 | % | Provision of Mobile Cloud research and development and operation support services | ||||||||||
52 |
China Mobile E-Commerce Co., Ltd. (“China Mobile E-Commerce”) |
the mainland of China | RMB | 500,000,000 | — | 100 | % | Provision of e-payment, e-commerce and internet finance services | ||||||||||
53 |
China Mobile (Hangzhou) Information Technology Co., Ltd. |
the mainland of China | RMB | 1,550,000,000 | — | 100 | % | Provision of family information products, technology research and development services |
19 |
SUBSIDIARIES (CONTINUED) |
No. |
Name of company* |
Place of incorporation/ establishment and operation |
Particulars of issued and paid up capital |
Proportion of ownership interest |
Principal activity | |||||||||||||
Held by the Company |
Held by a subsidiary |
|||||||||||||||||
54 |
China Mobile Online Services Co., Ltd. |
the mainland of China | RMB | 2,000,000,000 | — | 100 | % | Provision of call center and internet information services | ||||||||||
55 |
MIGU Company Limited |
the mainland of China | RMB | 10,400,000,000 | — | 100 | % | Provision of mobile internet digital content services | ||||||||||
56 |
China Mobile TieTong Company Limited |
the mainland of China | RMB | 31,880,000,000 | — | 100 | % | Provision of engineering, maintenance, sales and telecommunications services | ||||||||||
57 |
China Mobile Internet Company Limited |
the mainland of China | RMB | 3,000,000,000 | — | 100 | % | Provision of internet related services | ||||||||||
58 |
China Mobile Investment Holdings Company Limited |
the mainland of China | RMB | 1,675,920,000 | — | 100 | % | Investment holding company | ||||||||||
59 |
China Mobile System Integration Co., Ltd. (formerly known as “China Mobile Quantong System Integration Co., Ltd. ”) |
the mainland of China | RMB | 1,500,000,000 | — | 100 | % | Provision of computer system integration, construction, maintenance and related technology development services | ||||||||||
60 |
China Mobile (Chengdu) ICT Co., Ltd. |
the mainland of China | RMB | 1,650,000,000 | — | 100 | % | Provision of information technology products and technology research and development services | ||||||||||
61 |
China Mobile (Shanghai) ICT Co., Ltd. |
the mainland of China | RMB | 1,000,000,000 | — | 100 | % | Provision of information technology products and technology research and development services | ||||||||||
62 |
China Mobile Financial Technology Co., Ltd. |
the mainland of China | RMB | 555,410,800 | — | 100 | % | Provision of e-payment, e-commerce and internet finance services | ||||||||||
63 |
China Mobile Xiong’an ICT Co., Ltd. |
the mainland of China | RMB | 570,000,000 | — | 100 | % | Provision of information technology products and technology research and development services | ||||||||||
64 |
Zhongyidong Information Technology Co., Ltd. |
the mainland of China | RMB | 1,000,000,000 | — | 100 | % | Provision of IT solution including digital technology | ||||||||||
65 |
China Mobile Information System Integration Co., Ltd. |
the mainland of China | RMB | 50,000,000 | — | 100 | % | Provision of computer system integration, construction, maintenance and related technology development services |
* | The nature of all the legal entities established in the mainland of China is limited liability company. |
** | Companies registered as wholly owned foreign enterprises in the mainland of China. |
*** | Company registered as a sino-foreign equity joint venture in the mainland of China. |
# |
Effective interest held by the Group is 66.41%. |
20 |
INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS |
(a) |
Investments accounted for using the equity method |
The amounts recognized in the consolidated balance sheet are as follows: |
As of |
As of |
|||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Million |
Million |
|||||||
Associates |
168,552 | 160,732 | ||||||
Joint ventures |
1,004 | 1,079 | ||||||
169,556 | 161,811 | |||||||
Name of associate |
Place of incorporation/ establishment and operation |
Proportion of ownership interest held by the Company or its subsidiary |
Principal activity |
|||||||||
Shanghai Pudong Development Bank Co., Ltd. (“SPD Bank”) |
The PRC | 18 | % | Provision of banking services | | |||||||
China Tower Corporation Limited (“China Tower”) |
The PRC | 28 | % | |
Provision of construction, maintenance and operation of telecommunications towers |
| ||||||
True Corporation Public Company Limited (“True Corporation”) |
Thailand | 18 | % | Provision of telecommunications services | |
Note: | The consistency of the accounting policies between the Group and its associates has been considered when the Group recognized its interests in these associates. |
20 |
INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS (CONTINUED) |
(a) |
Investments accounted for using the equity method (Continued) |
(i) | The fair values of the interests in listed associates are based on quoted market prices (level 1: unadjusted quoted price in active markets) at the balance sheet date without any deduction for transaction costs and disclosed as follows: |
As of December 31, 2021 | As of December 31, 2020 | |||||||||||||||
Carrying amount | Fair value | Carrying amount | Fair value | |||||||||||||
Million | Million | Million | Million | |||||||||||||
SPD Bank |
107,982 | 45,507 | 102,102 | 51,642 | ||||||||||||
China Tower |
51,246 | 34,560 | 49,790 | 47,159 | ||||||||||||
True Corporation |
4,903 | 5,489 | 5,192 | 4,502 |
(ii) | The Group assesses whether there is objective evidence that interests in associates are impaired at each balance sheet date. |
20 |
INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS (CONTINUED) |
(a) |
Investments accounted for using the equity method (Continued) |
(iii) | Summarised financial information on principal associates: |
SPD Bank |
||||||||
As of December 31 | ||||||||
2021 | 2020 | |||||||
Million | Million | |||||||
Total assets |
8,136,757 | 7,950,218 | ||||||
Total liabilities |
7,458,539 | 7,304,401 | ||||||
Total equity |
678,218 | 645,817 | ||||||
Total equity attributable to ordinary equity shareholders |
560,098 | 528,288 | ||||||
Percentage of ownership of the Group |
18 | % | 18 | % | ||||
Total equity attributable to the Group |
101,898 | 96,018 | ||||||
The impact of fair value adjustments at the time of acquisition, goodwill and others |
6,084 | 6,084 | ||||||
Interest in associates |
107,982 | 102,102 | ||||||
China Tower |
True Corporation |
|||||||||||||||
As of December 31 | As of December 31 | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Million | Million | Million | Million | |||||||||||||
Total current assets |
48,344 | 43,204 | 19,143 | 22,748 | ||||||||||||
Total non-current assets |
274,915 | 294,176 | 100,326 | 111,806 | ||||||||||||
Total current liabilities |
76,182 | 106,635 | 33,255 | 38,301 | ||||||||||||
Total non-current liabilities |
57,723 | 44,499 | 70,572 | 77,598 | ||||||||||||
Total equity |
189,354 | 186,246 | 15,642 | 18,655 | ||||||||||||
Total equity attributable to equity shareholders |
189,354 | 186,245 | 15,554 | 18,540 | ||||||||||||
Percentage of ownership of the Group |
28 | % | 28 | % | 18 | % | 18 | % | ||||||||
Total equity attributable to the Group |
52,887 | 52,018 | 2,800 | 3,337 | ||||||||||||
The impact of fair value adjustments at the time of acquisition, goodwill and others |
— | — | 2,103 | 1,855 | ||||||||||||
Elimination of unrealized profits resulting from the transfer of Tower Assets |
(1,641 | ) | (2,228 | ) | — | — | ||||||||||
Interest in associates |
51,246 | 49,790 | 4,903 | 5,192 | ||||||||||||
20 |
INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS (CONTINUED) |
(a) |
Investments accounted for using the equity method (Continued) |
(iii) | Summarised financial information on principal associates (Continued): |
SPD Bank |
||||||||||||
2021 | 2020 | 2019 | ||||||||||
Million | Million | Million | ||||||||||
Revenue |
190,982 | 196,384 | 190,688 | |||||||||
Profit before taxation |
59,071 | 66,682 | 69,817 | |||||||||
Profit attributable to the equity shareholders of the company |
53,003 | 58,325 | 58,911 | |||||||||
Other comprehensive (loss)/income attributable to the equity shareholders of the company |
(1,155 |
) |
(3,291 | ) | 2,608 | |||||||
Total comprehensive income attributable to the equity shareholders of the company |
51,848 |
55,034 | 61,519 | |||||||||
Dividends received from associates |
2,561 | 3,201 | 1,867 |
China Tower |
True Corporation |
|||||||||||||||||||||||
2021 | 2020 | 2019 | 2021 | 2020 | 2019 | |||||||||||||||||||
Million | Million | Million | Million | Million | Million | |||||||||||||||||||
Revenue |
86,585 | 81,099 | 76,428 | 33,385 | 30,485 | 31,423 | ||||||||||||||||||
Profit/(loss) before taxation |
9,615 | 8,407 | 6,837 | (318 | ) | 208 | 1,727 | |||||||||||||||||
Profit/(loss) attributable to equity shareholders of the company |
7,329 | 6,428 | 5,222 | (332 | ) | 231 | 1,256 | |||||||||||||||||
Other comprehensive (loss)/income attributable to equity shareholders of the company |
(1 | ) | — | — | 8 | (9 | ) | (186 | ) | |||||||||||||||
Total comprehensive income/(loss) attributable to equity shareholders of the company |
7,328 | 6,428 | 5,222 | (324 | ) | 222 | 1,070 | |||||||||||||||||
Dividends received from associates |
1,099 | 715 | 111 | 88 | 114 | 117 |
20 |
INVESTMENTS IN ASSOCIATES AND JOINT ARRANGEMENTS (CONTINUED) |
(b) |
Investments in a joint operation |
21 |
DEFERRED TAX ASSETS AND LIABILITIES |
As of | As of | |||||||
December 31, 2021 | December 31, 2020 | |||||||
Million | Million | |||||||
Net deferred tax assets after offsetting: |
||||||||
- Deferred tax assets to be recovered after 12 months |
5,870 | 3,647 | ||||||
- Deferred tax assets to be recovered within 12 months |
37,346 | 35,351 | ||||||
43,216 | 38,998 | |||||||
Net deferred tax liabilities after offsetting: |
||||||||
- Deferred tax liabilities to be settled after 12 months |
(2,016 | ) | (1,420 | ) | ||||
- Deferred tax liabilities to be settled within 12 months |
(353 | ) | (248 | ) | ||||
(2,369 | ) | (1,668 | ) | |||||
21 |
DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED) |
As of January 1, 2021 |
Credited/ (charged) to profit or loss |
Charged to other comprehensive income |
Exchange differences |
As of December 31, 2021 |
||||||||||||||||
Million | Million | Million | Million | Million | ||||||||||||||||
Deferred tax assets before offsetting: |
||||||||||||||||||||
Write-down of obsolete inventories |
43 | 42 | — | — | 85 | |||||||||||||||
Depreciation, write-off and impairment of property, plant and equipment |
6,615 | 1,611 | — | — | 8,226 | |||||||||||||||
Accrued expenses |
18,744 | 1,866 | — | — | 20,610 | |||||||||||||||
Unredeemed Reward Program |
8,676 | 1,139 | — | — | 9,815 | |||||||||||||||
Expected credit impairment losses |
2,302 | 80 | — | — | 2,382 | |||||||||||||||
Recognition of right-of-use |
746 | (93 | ) | — | — | 653 | ||||||||||||||
Others |
4,457 | 333 | — | (4 | ) | 4,786 | ||||||||||||||
41,583 | 4,978 | — | (4 | ) | 46,557 | |||||||||||||||
Deferred tax liabilities before offsetting: |
||||||||||||||||||||
Change in value of financial assets measured at FVPL |
(302 | ) | (862 | ) | — | — | (1,164 | ) | ||||||||||||
Accelerated depreciation of property, plant and equipment |
(3,595 | ) | (470 | ) | — | 18 | (4,047 | ) | ||||||||||||
Others |
(356 | ) | (136 | ) | (8 | ) | 1 | (499 | ) | |||||||||||
(4,253 | ) | (1,468 | ) | (8 | ) | 19 | (5,710 | ) | ||||||||||||
Total |
37,330 | 3,510 | (8 | ) | 15 | 40,847 | ||||||||||||||
21 |
DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED) |
As of January 1, 2020 |
Credited/ (charged) to profit or loss |
Credited to other comprehensive income |
Exchange differences |
As of December 31, 2020 |
||||||||||||||||
Million | Million | Million | Million | Million | ||||||||||||||||
Deferred tax assets before offsetting: |
||||||||||||||||||||
Write-down of obsolete inventories |
13 | 30 | — | — | 43 | |||||||||||||||
Depreciation, write-off and impairment of property, plant and equipment |
6,928 | (313 | ) | — | — | 6,615 | ||||||||||||||
Accrued expenses |
15,068 | 3,676 | — | — | 18,744 | |||||||||||||||
Unredeemed Reward Program |
5,753 | 2,923 | — | — | 8,676 | |||||||||||||||
Expected credit impairment losses |
1,803 | 499 | — | — | 2,302 | |||||||||||||||
Recognition of right-of-use |
830 | (84 | ) | — | — | 746 | ||||||||||||||
Others |
4,844 | (386 | ) | — | (1 | ) | 4,457 | |||||||||||||
35,239 | 6,345 | — | (1 | ) | 41,583 | |||||||||||||||
Deferred tax liabilities before offsetting: |
||||||||||||||||||||
Change in value of financial assets measured at FVPL |
(399 | ) | 97 | — | — | (302 | ) | |||||||||||||
Accelerated depreciation of property, plant and equipment |
(3,088 | ) | (546 | ) | — | 39 | (3,595 | ) | ||||||||||||
Others |
(512 | ) | 155 | 1 | — | (356 | ) | |||||||||||||
(3,999 | ) | (294 | ) | 1 | 39 | (4,253 | ) | |||||||||||||
Total |
31,240 | 6,051 | 1 | 38 | 37,330 | |||||||||||||||
21 |
DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED) |
22 |
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS |
• | Level 1 valuations: unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. |
• | Level 2 valuations: observable inputs which fail to meet Level 1, and not using significant unobservable inputs. |
• | Level 3 valuations: fair value measured using significant unobservable inputs. |
22 |
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (CONTINUED) |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Note | Million | Million | Million | Million | ||||||||||||||||
Financial assets measured at FVOCI |
(i) | 600 | — | 89 | 689 | |||||||||||||||
Financial assets measured at FVPL |
(ii) | 41,466 | — | 170,129 | 211,595 | |||||||||||||||
Total |
42,066 | — | 170,218 | 212,284 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Note | Million | Million | Million | Million | ||||||||||||||||
Financial assets measured at FVOCI |
(i) | 1,067 | — | 44 | 1,111 | |||||||||||||||
Financial assets measured at FVPL |
(ii) | 10,581 | — | 118,022 | 128,603 | |||||||||||||||
Total |
11,648 | — | 118,066 | 129,714 | ||||||||||||||||
(i) | The category of FVOCI is primarily the equity investments in listed companies that are not held for trading. |
(ii) | The category of FVPL mainly comprises wealth management products (“WMPs”) offered by various financial institutions in China amounting to RMB169,395 million (as of December 31, 2020: RMB117,289 million), monetary funds and bond funds amounting to RMB30,346 million (as of December 31, 2020: Nil) and the Group’s investment in the CB amounting to RMB9,618 million (as of December 31, 2020: RMB9,259 million). |
22 |
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS (CONTINUED) |
Recognized in | ||||||||||||||||||||||||
As of | other | As of | ||||||||||||||||||||||
December 31, | Recognized in | comprehensive | December 31, | |||||||||||||||||||||
2020 | Purchase | Disposal | profit or loss | income | 2021 | |||||||||||||||||||
Million | Million | Million | Million | Million | Million | |||||||||||||||||||
Financial assets measured at FVOCI |
44 | — | — | — | 45 | 89 | ||||||||||||||||||
Financial assets measured at FVPL |
118,022 | 106,682 | (57,687 | ) | 3,112 | — | 170,129 | |||||||||||||||||
118,066 | 106,682 | (57,687 | ) | 3,112 | 45 | 170,218 | ||||||||||||||||||
23 |
RESTRICTED BANK DEPOSITS |
As of December 31, 2021 | As of December 31, 2020 | |||||||||||||||||||||||
Non-current assets |
Current assets |
Total | Non-current assets |
Current assets |
Total | |||||||||||||||||||
Million | Million | Million | Million | Million | Million | |||||||||||||||||||
Restricted bank deposits |
||||||||||||||||||||||||
- Statutory deposit reserves (Note) |
6,720 | — | 6,720 | 8,728 | — | 8,728 | ||||||||||||||||||
- Deposited customer reserves (Note) |
— | 1,457 | 1,457 | — | 2,332 | 2,332 | ||||||||||||||||||
- Performance bonds and others |
326 | 706 | 1,032 | 108 | 498 | 606 | ||||||||||||||||||
7,046 | 2,163 | 9,209 | 8,836 | 2,830 | 11,666 | |||||||||||||||||||
Note: | The statutory deposit reserves and the deposited customer reserves are deposited by the subsidiaries of the Company, China Mobile Finance and China Mobile E-Commerce, respectively, in accordance with relevant requirements of the People’s Bank of China (“PBOC”), which are not available for use in the Group’s daily operations. |
24 |
OTHER NON-CURRENT ASSETS |
As of | As of | |||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Million | Million | |||||||
Contract assets (note 26) |
2,099 | 1,560 | ||||||
Contract costs (Note) |
17,840 | 14,487 | ||||||
Certificates of deposits |
10,010 | 15,000 | ||||||
Long-term prepaid expenses |
4,466 | 4,445 | ||||||
Others |
2,783 | 853 | ||||||
37,198 | 36,345 | |||||||
Note: | Contract costs capitalized mainly related to the relevant costs incurred for the customers accessing to the Group’s telecommunications network (such as wireline broadband access). As of December 31, 2021, capitalized contract costs that are expected to be amortized exceeding one year amounted to RMB5,178 million (as of December 31, 2020: RMB3,763 million). For the year ended December 31, 2021, the amortization of capitalized contract costs amounted to RMB23,837 million (2020: RMB20,034 million). |
25 |
INVENTORIES |
As of | As of | |||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Million | Million | |||||||
Handsets and other terminals |
7,316 | 6,262 | ||||||
Others |
2,887 | 1,782 | ||||||
10,203 | 8,044 | |||||||
26 |
CONTRACT ASSETS |
As of |
As of |
|||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Million |
Million |
|||||||
Contract assets |
8,972 | 5,646 | ||||||
Loss allowance |
(322 | ) | (245 | ) | ||||
8,650 | 5,401 | |||||||
Less: non-current portion included in other non-current assets |
(2,099 | ) | (1,560 | ) | ||||
6,551 | 3,841 | |||||||
27 |
ACCOUNTS RECEIVABLE |
(a) |
Aging analysis |
As of | As of | |||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Million | Million | |||||||
Base on invoice date: |
||||||||
Within 30 days |
12,198 | 14,917 | ||||||
31 – 60 days |
3,855 | 4,132 | ||||||
61 – 90 days |
4,045 | 3,255 | ||||||
91 days – 1 year |
11,457 | 13,076 | ||||||
Over 1 year |
3,113 | 3,021 | ||||||
34,668 | 38,401 | |||||||
(b) |
Expected credit impairment loss allowance of accounts receivable |
2021 | 2020 | |||||||
Million | Million | |||||||
As of January 1 |
11,590 | 9,557 | ||||||
Recognized/(reversed) |
4,030 | 5,105 | ||||||
Written-off |
(2,503 | ) | (3,072 | ) | ||||
As of December 31 |
13,117 | 11,590 | ||||||
28 |
AMOUNT DUE FROM/TO ULTIMATE HOLDING COMPANY |
29 |
PREPAYMENTS AND OTHER CURRENT ASSETS |
As of | As of | |||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Million | Million | |||||||
Prepaid VAT and input VAT to be deducted, etc. |
18,523 | 17,173 | ||||||
Prepayments (Note) |
9,326 | 8,385 | ||||||
Others |
442 | 155 | ||||||
28,291 | 25,713 | |||||||
Note: | Prepayments mainly include terminal prepayments, power and utilities prepayments, maintenance prepayments, etc. |
30 |
OTHER FINANCIAL ASSETS MEASURED AT AMORTIZED COST |
31 |
BANK DEPOSITS |
32 |
CASH AND CASH EQUIVALENTS |
As of | As of | |||||||
December 31, 2021 | December 31, 2020 | |||||||
Million | Million | |||||||
Bank deposits with original maturity within three months |
5,268 | 8,346 | ||||||
Cash at banks and on hand |
238,675 | 204,383 | ||||||
243,943 | 212,729 | |||||||
33 |
ACCOUNTS PAYABLE |
As of | As of | |||||||
December 31, 2021 | December 31, 2020 | |||||||
Million | Million | |||||||
Base on invoice date: |
||||||||
Within 180 days |
86,545 | 85,872 | ||||||
181 days to 1 year |
28,948 | 41,316 | ||||||
Over 1 year |
37,219 | 40,802 | ||||||
152,712 | 167,990 | |||||||
34 |
CONTRACT LIABILITIES |
As of | As of | |||||||
December 31, 2021 | December 31, 2020 | |||||||
Million | Million | |||||||
Non-refundable prepaid service fees |
17,280 | 24,654 | ||||||
Unredeemed Reward Program |
45,957 | 40,005 | ||||||
Unused data traffic carried over |
13,046 | 11,156 | ||||||
Others |
3,492 | 3,864 | ||||||
79,775 | 79,679 | |||||||
Less: non-current portion |
(707 | ) | (651 | ) | ||||
79,068 | 79,028 | |||||||
35 |
ACCRUED EXPENSES AND OTHER PAYABLES |
As of | As of | |||||||
December 31, 2021 | December 31, 2020 | |||||||
Million | Million | |||||||
Receipts-in-advance |
85,292 | 73,345 | ||||||
Accrued salaries, wages and other benefits |
5,463 | 6,100 | ||||||
Accrued expenses |
106,216 | 93,725 | ||||||
Subscription funds received from issuance of RMB Shares (Note) |
48,695 | — | ||||||
Other payables |
28,843 | 27,782 | ||||||
274,509 | 200,952 | |||||||
Note: | As of December 31, 2021, the Company’s RMB Share Issue was in progress, and shares subscription funds received (prior to the deduction of related issuance and professional expenses) amounting to RMB48,695 million. |
36 |
DEFERRED REVENUE |
2021 | 2020 | |||||||
Million | Million | |||||||
As of January 1 |
8,601 | 6,861 | ||||||
Additions during the year |
1,870 | 3,435 | ||||||
Recognized in the consolidated statement of comprehensive income |
(1,984 | ) | (1,695 | ) | ||||
As of December 31 |
8,487 | 8,601 | ||||||
37 |
SHARE-BASED PAYMENT |
37 |
SHARE-BASED PAYMENT (CONTINUED) |
(a) |
Movements in share options |
Share option scheme | ||||||||
Average exercise prices |
Numbers of options |
|||||||
As of January 1, 2020 |
— | |||||||
Granted |
HK$ | 55.00 | 305,601,702 | |||||
Forfeited |
HK$ | 55.00 | (899,000 | ) | ||||
As of December 31, 2020 |
HK$ | 55.00 | 304,702,702 | |||||
As of January 1, 2021 |
HK$ | 55.00 | 304,702,702 | |||||
Forfeited |
HK$ | 55.00 | (2,605,826 | ) | ||||
As of December 31, 2021 |
HK$ | 55.00 | 302,096,876 | |||||
Vested and exercisable as of December 31, 2021 |
— | |||||||
(b) |
Share options outstanding |
Grant Date | Normal exercise period |
Exercise price | No. of shares involved in the options outstanding as of December 31, 2021 |
No. of shares involved in the options outstanding as of December 31, 2020 |
||||||||||
June 12, 2020 |
June 12, 2022- June 12, 2030 |
|
HK$55.00 | 120,838,750 | 121,881,080 | |||||||||
June 12, 2020 |
June 12, 202 3 - June 12, 2030 |
|
HK$55.00 | 90,629,063 | 91,410,811 | |||||||||
June 12, 2020 |
June 12, 202 4 - June 12, 2030 |
|
HK$55.00 | 90,629,063 | 91,410,811 |
37 |
SHARE-BASED PAYMENT (CONTINUED) |
(c) |
Fair value of share options |
Granted on June 12, 2020 |
||||
The closing price at the Grant Date |
HK$ | 54.25 | ||
Risk-free interest rate |
0.65 | % | ||
Expected dividend yield |
5.9 | % | ||
Expected volatility (Note) |
21.34 | % |
Note: | The expected volatility is determined based on the historical average daily trading price volatility of the shares of the Company. |
38 |
CAPITAL, RESERVES AND DIVIDENDS |
(a) |
Share capital |
Equivalent | ||||||||||||
Number | HK$ | RMB | ||||||||||
of shares | Million | Million | ||||||||||
As of January 1, and December 31, 2021 and 2020 |
20,475,482,897 | 382,263 | 402,130 | |||||||||
38 |
CAPITAL, RESERVES AND DIVIDENDS (CONTINUED) |
(b) |
Dividends |
(i) |
Dividends attributable to the year: |
2021 | 2020 | 2019 | ||||||||||
Million | Million | Million | ||||||||||
Ordinary interim dividend declared and paid of HK$1.630 (equivalent to approximately RMB1.356) (2020: HK$1.530 (equivalent to approximately RMB 1.398); 2019: HK$1.527 (equivalent to approximately RMB 1.343) per share |
27,669 | 27,557 | 28,206 | |||||||||
Ordinary final dividend proposed after the balance sheet date of HK$ ) (2020: HK$2.430 (equivalent to approximately RMB1.9871.760 (equivalent to approximately RMB1.481); 2019: HK$1.723 (equivalent to approximately RMB1.543)) per share |
42,443 | 30,330 | 31,602 | |||||||||
70,112 | 57,887 | 59,808 | ||||||||||
(ii) |
Dividends attributable to the previous financial year, approved and paid during the year: |
2021 | 2020 | 2019 | ||||||||||
Million | Million | Million | ||||||||||
Ordinary final dividend in respect of the previous financial year, approved and paid during the year, of HK$1.760 (equivalent to approximately RMB1.481) (2020: HK$1.723 (equivalent to approximately RMB1.543); 2019: HK$1.391 (equivalent to approximately RMB1.219)) per share |
29,916 | 32,169 | 25,059 | |||||||||
38 |
CAPITAL, RESERVES AND DIVIDENDS (CONTINUED) |
(c) |
Nature and purpose of different reserves |
(i) |
Capital reserve |
• | RMB295,665 million debit balance brought forward as a result of the elimination of goodwill arising on the acquisition of subsidiaries before January 1, 2001 against the capital reserve; |
• | Share of other comprehensive income/(loss) of investments accounted for using the equity method; |
• | The changes in fair value of financial assets measured at FVOCI, net of tax, until the financial assets are derecognized; |
• | The difference between the consideration and the carrying amounts of net assets of acquired business under business combinations under common control; and |
• | The fair value of share options granted to employees of the Group that are recognized in accordance with the accounting policy in note 2 (v)(iii). |
(ii) |
PRC statutory reserves |
(iii) |
Other reserves |
38 |
CAPITAL, RESERVES AND DIVIDENDS (CONTINUED) |
(c) |
Nature and purpose of different reserves (Continued) |
(iv) |
Exchange reserve |
(d) |
Capital management |
As of | As of | |||||||
December 31, 2021 |
December 31, 2020 |
|||||||
Million | Million | |||||||
Total assets |
1,841,327 | 1,727,882 | ||||||
Total liabilities |
631,035 | 575,110 | ||||||
Liabilities-to-assets |
34.3 | % | 33.3 | % | ||||
39 |
RELATED PARTY TRANSACTIONS |
(a) |
Transactions with CMCC Group |
2021 | 2020 | 2019 | ||||||||||||
Note | Million | Million | Million | |||||||||||
Revenue from telecommunications facilities construction services |
(i) | 1,607 | 979 | 495 | ||||||||||
Revenue from comprehensive support services |
(ii) | 329 | 280 | 197 | ||||||||||
Technical support services charges |
(iii) | 271 | 188 | 103 | ||||||||||
Charges for use of network assets |
(iv) | 4,341 | 1,895 | 1,478 | ||||||||||
Property leasing and management services charges |
(v) | 1,641 | 1,365 | 1,129 | ||||||||||
Additions of right-of-use |
(v) | 712 | 458 | 180 | ||||||||||
Interest expenses |
(vi) | 131 | 170 | 187 | ||||||||||
Net (repayment)/receipts of short-term deposits |
(vi) | (7,541 | ) | 5,069 | 10,764 | |||||||||
Consideration of assets transferred |
(vii) | — | — | 873 | ||||||||||
As of | As of | |||||||
December 31, 2021 | December 31, 2020 | |||||||
Million | Million | |||||||
Accounts receivable |
228 | 995 | ||||||
Other receivables |
— | 372 | ||||||
Prepayments and other current assets |
1 | 6 | ||||||
Amount due from ultimate holding company |
2,612 | 1,396 | ||||||
Right-of-use |
631 | 679 | ||||||
Lease liabilities |
728 | 770 | ||||||
Accounts payable |
2,992 | 4,770 | ||||||
Accrued expenses and other payables |
578 | 1,696 | ||||||
Amount due to ultimate holding company |
23,478 | 26,714 | ||||||
39 |
RELATED PARTY TRANSACTIONS (CONTINUED) |
(a) |
Transactions with CMCC Group (Continued) |
(i) |
The Group provides telecommunications facilities construction services to CMCC Group for the telecommunications project planning, design, construction, maintenance and other services. |
(ii) |
The Group provides comprehensive management, support and other services to CMCC Group. |
(iii) |
The Group purchases technical support and other services from CMCC Group. |
(iv) |
The Group leases network assets from CMCC Group. |
(v) | The Group leases offices, retail outlets and machinery rooms from CMCC Group, with additions of right-of-use assets and charges of property leasing and management services. For the year ended December 31, 2021, property leasing and management services charges include the depreciation of right-of-use assets in relation to the property leasing amounting to RMB413 million (2020: RMB393 million; 2019: RMB207 million), charges for property leasing and interest for lease liabilities, etc. amounting to RMB1,228 million (2020: RMB972 million; 2019: RMB922 million). |
(vi) | The amounts represent the bank deposits received from or repaid to CMCC Group and related interest expenses. The interest rate of short-term bank deposits is negotiated based on the benchmark interest rate published by the PBOC. |
(vii) | On August 9, 2019, the Group completed an acquisition of assets related to the “Village Connect” project, at a total consideration of RMB873 million. |
39 |
RELATED PARTY TRANSACTIONS (CONTINUED) |
(b) |
Principal transactions with associates and joint ventures of the Group |
2021 | 2020 | 2019 | ||||||||||||
Note | Million | Million | Million | |||||||||||
Revenue from telecommunications services |
(i) | 796 | 582 | 535 | ||||||||||
Technical support services charges |
(ii) | 4,847 | 2,515 | 474 | ||||||||||
Property leasing and management services revenue |
(iii) | 33 | 32 | 30 | ||||||||||
Dividend received |
3,927 | 4,362 | 2,299 | |||||||||||
Related costs for use of tower assets |
(iv) | 41,486 | 41,438 | 39,843 | ||||||||||
Additions of right-of-use |
(iv) | 4,393 | 4,168 | 3,654 | ||||||||||
Increase/(decrease) in cash, cash equivalents and bank deposits, net |
(v) | 17,179 | (3,228 | ) | 14,250 | |||||||||
Increase/(decrease) in other financial assets measured at amortized cost |
(vi) | 304 | (3,448 | ) | (2,922 | ) | ||||||||
Purchase of financial assets measured at FVPL |
(vii) | 18,500 | 16,250 | 76,442 | ||||||||||
Disposal of financial assets measured at FVPL |
(vii) | 14,549 | 44,414 | 63,080 | ||||||||||
Interest and other income |
(viii) | 3,174 | 969 | 6,130 | ||||||||||
As of December 31, 2021 |
As of December 31, 2020 |
|||||||
Million | Million | |||||||
Accounts receivable |
260 | 185 | ||||||
Right-of-use |
20,169 | 30,355 | ||||||
Other receivables |
340 | 459 | ||||||
Cash, cash equivalents and bank deposits |
75,362 | 56,466 | ||||||
Other financial assets measured at amortized cost |
5,783 | 5,449 | ||||||
Financial assets measured at FVPL |
30,623 | 25,692 | ||||||
Prepayments and other current assets |
— | 23 | ||||||
Lease liabilities |
22,836 | 37,729 | ||||||
Accounts payable |
4,692 | 4,691 | ||||||
Bills payable |
3,534 | 1,214 | ||||||
Accrued expenses and other payables |
9,908 | 8,228 | ||||||
39 |
RELATED PARTY TRANSACTIONS (CONTINUED) |
(b) |
Principal transactions with associates and joint ventures of the Group (Continued) |
(i) |
The Group provides telecommunications services to Group’s associates and joint ventures for the telecommunications project planning, design and construction services and telecommunications services. |
(ii) |
The Group purchases technical support and other services from the Group’s associates and joint ventures. |
(iii) |
The Group provides property leasing and management service to China Tower and other associates and joint ventures. |
(iv) | The amounts primarily represent the right-of-use right-of-use |
(v) | The amounts represent the deposits placed with SPD Bank, the interest rate of which is negotiated based on the benchmark interest rate published by PBOC. |
(vi) | The amounts represent the short-term loans granted to China Tower and debt instrument investments placed with SPD Bank. The related interest rates are mutually agreed among both parties with reference to the market interest rates. |
(vii) | The amounts represent the WMPs purchased from SPD Bank and the CB publicly issued by SPD Bank. The return rates of WMPs are determined with reference to market conditions and the fair values of CB are based on quoted market prices (level 1). |
(viii) | The amounts primarily represent interest income from the deposits placed with SPD Bank, the short-term loans granted to China Tower and debt instrument investments placed with SPD Bank, and the income derived from WMPs purchased from SPD Bank and the CB publicly issued by SPD Bank. |
39 |
RELATED PARTY TRANSACTIONS (CONTINUED) |
(c) |
Transactions with associates and joint ventures of CMCC Group |
(d) |
Transactions with other government-related entities in the PRC |
• |
rendering and receiving telecommunications services, including interconnection revenue/charges |
• |
sharing certain telecommunications network infrastructures and spectrum |
• |
purchasing of goods, including use of public utilities |
• |
placing of bank deposits and purchasing of investment products |
(e) |
For key management personnel remuneration, please refer to note 11. |
40 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES MEASUREMENT |
(a) |
Credit risk and concentration risk |
(i) |
Risk management |
40 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES MEASUREMENT (CONTINUED) |
(a) |
Credit risk and concentration risk (Continued) |
(ii) |
Impairment of financial assets |
• |
Accounts receivable and contract assets |
• |
Other financial assets measured at amortized cost |
40 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES MEASUREMENT (CONTINUED) |
(a) |
Credit risk and concentration risk (Continued) |
(ii) |
Impairment of financial assets (Continued) |
Within | 31 days to | 91 days to | Over | |||||||||||||||||
30 days | 90 days | 1 year | 1 year | |||||||||||||||||
Million | Million | Million | Million | |||||||||||||||||
As of December 31, 2021 |
||||||||||||||||||||
Individual customers |
||||||||||||||||||||
Expected loss rate |
2 | % | 20 | % | 80 | % | 100 | % | ||||||||||||
Gross carrying amount |
2,943 | 790 | 1,518 | 1,420 | ||||||||||||||||
Loss allowance |
(59 | ) | (158 | ) | (1,214 | ) | (1,420 | ) | ||||||||||||
Within |
181 days |
1 year |
2 years |
Over 3 |
||||||||||||||||
180 days |
to 1 year |
to 2 years |
to 3 years |
years |
||||||||||||||||
Million |
Million |
Million |
Million |
Million |
||||||||||||||||
As of December 31, 2021 |
||||||||||||||||||||
Corporate customers |
||||||||||||||||||||
Expected loss rate |
3 | % | 25 | % | 65 | % | 85 | % | 100 | % | ||||||||||
Gross carrying amount |
15,403 | 6,315 | 4,237 | 2,353 | 2,072 | |||||||||||||||
Loss allowance |
(462 | ) | (1,579 | ) | (2,754 | ) | (2,000 | ) | (2,072 | ) | ||||||||||
Within | 31 days to | 91 days to | Over | |||||||||||||||||
30 days | 90 days | 1 year | 1 year | |||||||||||||||||
Million | Million | Million | Million | |||||||||||||||||
As of December 31, 2020 |
||||||||||||||||||||
Individual customers |
||||||||||||||||||||
Expected loss rate |
2 | % | 20 | % | 80 | % | 100 | % | ||||||||||||
Gross carrying amount |
3,112 | 846 | 1,772 | 1,531 | ||||||||||||||||
Loss allowance |
(62 | ) | (169 | ) | (1,418 | ) | (1,531 | ) | ||||||||||||
Within | 181 days | 1 year | 2 years | Over 3 | ||||||||||||||||
180 days | to 1 year | to 2 years | to 3 years | years | ||||||||||||||||
Million | Million | Million | Million | Million | ||||||||||||||||
As of December 31, 2020 |
||||||||||||||||||||
Corporate customers |
||||||||||||||||||||
Expected loss rate |
3 | % | 25 | % | 65 | % | 85 | % | 100 | % | ||||||||||
Gross carrying amount |
15,405 | 6,048 | 3,361 | 1,433 | 1,438 | |||||||||||||||
Loss allowance |
(462 | ) | (1,512 | ) | (2,185 | ) | (1,218 | ) | (1,438 | ) | ||||||||||
40 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES MEASUREMENT (CONTINUED) |
(a) |
Credit risk and concentration risk (Continued) |
(ii) |
Impairment of financial assets (Continued) |
40 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES MEASUREMENT (CONTINUED) |
(b) |
Liquidity risk |
Carrying amount |
Total contractual undiscounted cash flow |
Within 1 year or on demand |
More than 1 year but less than 3 years |
More than 3 years but less than 5 years |
More than 5 years |
|||||||||||||||||||
Million | Million | Million | Million | Million | Million | |||||||||||||||||||
As of December 31, 2021 |
||||||||||||||||||||||||
Accounts payable |
152,712 | 152,712 | 152,712 | — | — | — | ||||||||||||||||||
Bills payable |
12,747 | 12,747 | 12,747 | — | — | — | ||||||||||||||||||
Accrued expenses and other payables |
264,545 | 264,545 | 264,545 | — | — | — | ||||||||||||||||||
Amount due to ultimate holding company |
23,478 | 23,478 | 23,478 | — | — | — | ||||||||||||||||||
Lease liabilities |
56,981 | 61,776 | 26,519 | 19,875 | 8,552 | 6,830 | ||||||||||||||||||
Other non-current liabilities |
373 | 425 | — | 78 | 75 | 272 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
510,836 | 515,683 | 480,001 | 19,953 | 8,627 | 7,102 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Carrying amount |
Total contractual undiscounted cash flow |
Within 1 year or on demand |
More than 1 year but less than 3 years |
More than 3 years but less than 5 years |
More than 5 years |
|||||||||||||||||||
Million | Million | Million | Million | Million | Million | |||||||||||||||||||
As of December 31, 2020 |
||||||||||||||||||||||||
Accounts payable |
167,990 | 167,990 | 167,990 | — | — | — | ||||||||||||||||||
Bills payable |
4,561 | 4,561 | 4,561 | — | — | — | ||||||||||||||||||
Accrued expenses and other payables |
200,952 | 200,952 | 200,952 | — | — | — | ||||||||||||||||||
Amount due to ultimate holding company |
26,714 | 26,714 | 26,714 | — | — | — | ||||||||||||||||||
Lease liabilities |
66,633 | 72,291 | 23,780 | 22,927 | 17,513 | 8,071 | ||||||||||||||||||
Other non-current liabilities |
460 | 479 | — | 67 | 70 | 342 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
467,310 | 472,987 | 423,997 | 22,994 | 17,583 | 8,413 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
40 |
FINANCIAL RISK MANAGEMENT AND FAIR VALUES MEASUREMENT (CONTINUED) |
(c) |
Interest rate and fair value risk |
(d) |
Foreign currency risk |
41 |
CAPITAL COMMITMENTS |
2021 | 2020 | |||||||
Million | Million | |||||||
Land and buildings |
4,049 | 8,607 | ||||||
Telecommunications equipment and others |
29,510 | 37,967 | ||||||
|
|
|
|
|||||
33,559 | 46,574 | |||||||
|
|
|
|
42 |
EVENTS AFTER THE REPORTING PERIOD |
43 |
COMPARATIVE FIGURES |
44 |
ACCOUNTING ESTIMATES AND JUDGEMENTS |
44 |
ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED) |
45 |
POSSIBLE IMPACT OF AMENDMENTS, NEW STANDARDS, INTERPRETATIONS AND DISCLOSURES ISSUED BUT NOT YET EFFECTIVE OR MANDATORY FOR THE YEAR ENDED DECEMBER 31, 2021 |
Effective for | ||
accounting periods | ||
beginning on or after | ||
Amendments to IFRS 3, “Business combinations” – Reference to the conceptual framework |
January 1, 2022 | |
Amendments to IAS 16, “Property, plant and equipment” – Property, plant and equipment: Proceeds before intended use |
January 1, 2022 | |
Amendments to IAS 37, “Provisions, Contingent Liabilities and Contingent Assets” – Onerous contracts – cost of fulfilling a contract |
January 1, 2022 | |
Annual Improvements to IFRS Standards 2018-2020 Cycle |
January 1, 2022 | |
IFRS 17 and Amendments to IFRS 17, “Insurance contracts” |
January 1, 2023 | |
Amendments to IAS 1, “Presentation of financial statements” – Classification of liabilities as current or non-current |
January 1, 2023 | |
Amendments to IAS 1, “Presentation of financial statements” and IFRS Practice Statement 2, “Making materiality judgements” – Disclosure of accounting policies |
January 1, 2023 | |
Amendments to IAS 8, “Accounting policies, changes in accounting estimates and errors” – Definition of accounting estimates |
January 1, 2023 | |
Amendments to IAS 12, “Income taxes” – Deferred tax related to assets and liabilities arising from a single transaction |
January 1, 2023 | |
Amendments to IFRS 10, “Consolidated Financial Statements” and IAS 28, “Investments in associates and joint ventures” – Sale or contribution of assets between an investor and its associate or joint venture |
To be determined |
46 |
CONDENSED FINANCIAL INFORMATION OF THE COMPANY |
(a) |
Condensed statements of comprehensive income |
2021 | 2020 | 2019 | ||||||||||
Million | Million | Million | ||||||||||
Dividend income |
63,176 | 61,401 | 53,475 | |||||||||
Operating expenses |
(71 | ) | (70 | ) | (70 | ) | ||||||
Interest and other income |
9 | 17 | 38 | |||||||||
Other gains |
(56 | ) | — | 77 | ||||||||
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Profit before taxation |
63,058 | 61,348 | 53,520 | |||||||||
Taxation |
— | (4 | ) | (9 | ) | |||||||
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PROFIT FOR THE YEAR |
63,058 | 61,344 | 53,511 | |||||||||
Other comprehensive income for the year, net of tax |
— | — | — | |||||||||
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TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
63,058 | 61,344 | 53,511 | |||||||||
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46 |
CONDENSED FINANCIAL INFORMATION OF THE COMPANY (CONTINUED) |
(b) |
Condensed balance sheets |
As of | As of | |||||||
December 31, 2021 |
December 31, 2020 |
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Million | Million | |||||||
Non-current assets |
494,648 | 494,236 | ||||||
Current assets |
55,939 | 2,183 | ||||||
Current liabilities |
52,951 | 4,669 | ||||||
Non-current liabilities |
— | — | ||||||
NET ASSETS |
497,636 | 491,750 | ||||||
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TOTAL EQUITY |
497,636 | 491,750 | ||||||
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(c) |
Condensed statements of cash flows |
2021 | 2020 | 2019 | ||||||||||
Million | Million | Million | ||||||||||
Net cash used from operating activities |
(98 | ) | (96 | ) | (156 | ) | ||||||
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Net cash generated from investing activities |
15,669 | 16,414 | 14,778 | |||||||||
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Net cash generated/(used) in financing activities |
32,985 | (16,288 | ) | (14,532 | ) | |||||||
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Net increase in cash and cash equivalents |
48,556 | 30 | 90 | |||||||||
Cash and cash equivalents at beginning of year |
294 | 310 | 245 | |||||||||
Effect of changes in foreign exchange rate |
(55 | ) | (46 | ) | (25 | ) | ||||||
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Cash and cash equivalents at end of year |
48,795 | 294 | 310 | |||||||||
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1 Year China Mobile Chart |
1 Month China Mobile Chart |
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