From the very first mobile phone call made from Guangzhou in 1987, to Chinese mobile phone users surpassing 1.1 billion in 2012, we have seen immense chance in only 25 years. With the evolution from communication among people to communication between people and things, and even among things, the historic progress of "Mobile Changes Life" is redefining future social lifestyles, and is having a profound influence on the trajectory of the telecommunications industry. The evolution of voice to data services, as well as communication services to a range of applications based on mobile internet, cloud computing and the Internet of Things, is also forcing business to adapt and revamp existing development protocols, organisational mechanisms and management patterns.

At the same time, our customers are expecting to enjoy more carefree service and achieve more possibilities by using mobile technology. Employees are demanding greater career and professional development opportunities, to enable the realisation of individual value and self-fulfillment through meaningful work. Communities hope to share and take part in a company's development achievements, including fair development for disadvantaged groups, and meaningful progress toward an eco-friendly civilisation.

In line with the profound industrial revolution of "Mobile Changes Life" and with the attention and expectation of our stakeholders, China Mobile is committed to creating a sustainable future for our company and our stakeholders through transformation and innovation.

In 2012, we improved our corporate governance, strengthened risk management mechanisms, emphasised anti-corruption measures, and continued to generate value and positive returns for our investors. With the steady and healthy growth of our company, we have also led partners throughout our supply chains to grow together with us in a socially responsible manner.

We always pay great attention and actively respond to stakeholders' requirements to fulfill our responsibilities. We continuously strive to maintain a reliable network with comprehensive coverage for our customers, address our customers' greatest concerns, and protect their interests through a range of methods, from the optimisation of tariffs, accurate billing and prompt services reminders to the strict protection of customer privacy and information security. As an employer, we consistently generate fair opportunities for our employees, protect their occupational health and safety, support their personal development, and actively provide a harmonious and positive working environment. As a community member, we fulfill our long-term commitments to support social welfare, and continuously implement key programmes to help alleviate poverty, care for vulnerable groups, promote education development as well as volunteering service, and share our company's development achievements with a wide range of people within the community. As a responsible company, we work unceasingly to improve our environmental policies, with a specific focus on energy saving and emissions reduction measures throughout the entire life-cycle of our networks, provide green services, and propose the implementation and adoption of energy saving green standards with other social forces. We have also made great strides in leveraging advanced Information and Communication Technology to support and promote social emission reductions, to ultimately harmonise corporate, social and environment needs.

We inherently believe that a company should leverage its core competence and take its responsibility to contribute to its stakeholders and the greater society. As such, we are committed to ensuring the realisation of our vision of "Mobile Changes Life", and the promotion of new technology such as TD-LTE. We actively strengthen infrastructure development and organisational transformation for the future, as well as initiate the development of start-ups and innovations. Building on these efforts, we have promoted the construction of the Wireless City and developed innovative applications to improve social and professional lifestyles, economic efficiency and overall urban quality of life. We are also fulfilling the needs of New Countryside construction through the Three Networks for a New Countryside initiative, which is helping farmers increase their income, as well as promoting agricultural transformation and rural development.

In 2012, we received extensive positive feedback regarding our social responsibility efforts and sustainability performance. Examples include our inclusion in the Dow Jones Sustainability World Index for the fifth consecutive year, which is an accomplishment that no other company from Mainland China has managed to achieve, as well as honors such as the "China Charity Award" and "Sustainability Excellence Award," among others. We were also honored that some of our corporate social responsibility practices have been selected by the United Nations Global Compact to serve as best practices for China.

We will strive to fulfill our economic, social and environmental responsibilities. We believe that in the future, we will constantly strive to improve our operations with integrity and responsibility and improve the transparency of our company. By leveraging our innovative technology and services, we are helping the society become increasingly connected so that, together, we can create and share a better future.

March, 2013