In 2024, our operating revenue reached RMB1,040.8 billion, up by 3.1% year-on-year, of which revenue from telecommunications services was RMB889.5 billion, up by 3.0% year-on-year. We refined our operations through customer segmentation, cultivated our existing strengths and furthered value-oriented operations. We enhanced product supply management and innovation, drove the comprehensive and integrated development of our CHBNVG markets, and achieved stable growth on record-high revenue.

We prioritized the development of a system of operations tailored for different market, customer, scenario and need segments, and promoted holistic development of existing and new customers. Our revenue from wireless data traffic services was RMB385.9 billion, down by 2.3 percentage points when expressed as a percentage of revenue from telecommunications services.

We continued to solidify our high grounds in terms of broadband scale and vigorously cultivated high-value commercial customers, with equal emphasis on scale and quality. Our revenue from wireline broadband services reached RMB130.2 billion, up by 9.6% year-on-year, making up a growing portion of our revenue from telecommunications services.

We focused on optimizing our business structure and developing new capabilities and sources of revenue. We leveraged AI+ as a core driver for growth in information services revenue and development of the digital intelligent economy in strengthening our capabilities, enhancing our value and expanding our scale in the information services sector. Our revenue from applications and information services reached RMB243.8 billion, up by 10.0% year-on-year, and contributed 2.6 percentage points of the increase in revenue from telecommunications services.

Driven by sales of handsets and other terminals, our revenue from sales of products and others was RMB151.3 billion, up by 3.8% year-on-year. Our terminal sales business mainly serves to support the expansion of our principal telecommunications businesses, and hence its contribution to our profit is relatively low.

We consistently pursued precision, meticulousness and leanness in our operation management. We stepped up differential and systematic management of costs and resources and application of cost-reduction technologies, and persisted in lowering our costs while enhancing our efficiency.

In 2024, our operating expenses were RMB898.2 billion, up by 2.7% year-on-year. Our operating expenses represented 86.3% of our operating revenue.

Network operation and support expenses were RMB283.3 billion, up by 5.4% year-on-year and representing 27.2% of operating revenue. Of which, maintenance, operation support and related expenses increased by 8.8% year-on-year and reached RMB191.0 billion, primarily driven by continued growth in our transformation-related businesses and innovation-related investments.

Depreciation and amortization were RMB191.1 billion, down by 7.7% year-on-year and representing 18.4% of operating revenue. The decrease was primarily driven by the change of the depreciable life of 5G wireless assets and related transmission equipment.

Employee benefit and related expenses were RMB151.9 billion, up by 5.3% year-on-year and representing 14.6% of operating revenue. The increase was primarily driven by our increased investments in sci-tech talents to support our strategic transformation and sci-tech innovation.

Selling expenses were RMB54.6 billion, up by 4.0% year-on-year and representing 5.2% of operating revenue.

Cost of products sold was RMB149.2 billion, up by 4.5% year-on-year and representing 14.3% of operating revenue. The increase was primarily driven by the growth in revenue from sales of products.

Other operating expenses were RMB68.0 billion, up by 14.6% year-on-year and representing 6.5% of operating revenue. The increase was primarily driven by expected credit impairment losses in accounts receivable and increases in settlement costs for our international businesses.

In 2024, we continued to improve the quality and efficiency of our operations, maintained an industry-leading level of profitability, and continued to create greater value for our shareholders and customers. Profit from operations was RMB142.6 billion, up by 6.1% year-on-year. EBITDA was RMB333.7 billion, down by 2.3% year-on-year, and EBITDA margin was 32.1%, down by 1.7 percentage points year-on-year. Benefiting from solid growth in revenue, continued structural optimization and robust cost control, profit attributable to equity shareholders was RMB138.4 billion in 2024, up by 5.0% year-on-year. The margin of profit attributable to equity shareholders was 13.3%.

Our financial position continued to remain robust. As at the end of 2024, total assets and total liabilities were RMB2,108.1 billion and RMB711.6 billion, respectively. The liabilities to assets ratio was 33.8%.

We consistently and firmly adhered to our prudent financial risk management policies and maintained sound repayment capabilities. The effective interest coverage multiple was 48 times.

We consistently and firmly adhered to our sound and prudent financial policies and stringent fund management systems, and maintained a healthy cash flow and ensure the safety and integrity of our funds through our highly centralized management of investing and financing activities. Meanwhile, we continued to reinforce our centralized fund management efforts and made appropriate allocations of our funds, thereby fully leveraging our fund scale efficiency.

In 2024, we maintained a healthy and strong cash flow. Net cash generated from operating activities was RMB315.7 billion, up by 3.9% year-on-year. Net cash used in investing activities was RMB185.2 billion, down by 10.0% year-on-year. Net cash used in financing activities was RMB105.2 billion, down by 15.1% year-on-year. Free cash flow was RMB151.7 billion, up by 22.9% year-on-year. As at the end of 2024, our total cash and bank balances were RMB296.7 billion, of which 93.1%, 1.8% and 4.9% were denominated in Renminbi, U.S. dollars and Hong Kong dollars, respectively. Our robust fund management and healthy cash flow provided a solid foundation for our sustainable and healthy development.

Currently, the Company’s corporate credit ratings are equivalent to China’s sovereign credit ratings, namely, A+/Outlook Stable from Standard & Poor’s and A1/Outlook Negative from Moody’s. These ratings reflect that our sound financial strength, favourable business potential and solid financial management are highly recognized by the market.