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Key Operation Data
Selected Unaudited Key Performance Indicators
Financial Data
  For the period from
1 Jan to 31 Mar 2004
For the period from
1 Jan to 31 Mar 2003
Increase
Operating Revenue (RMB) 42.143 billion
(equivalent to approx.
HK$39.758 billion)
37.650 billion
(equivalent to approx.
HK$35.519 billion)
11.9%
EBITDA (RMB) 24.286 billion
(equivalent to approx.
HK$22.911 billion)
22.395 billion
(equivalent to approx.
HK$21.127 billion)
8.4%
EBITDA margin 57.6% 59.5%  
Net Profit (RMB) 9.389 billion
(equivalent to approx.
HK$8.858 billion)
8.975 billion
(equivalent to approx.
HK$8.467 billion)
4.6%
Net Profit margin 22.3% 23.8%  

 

Operating Data
  As at 31 Mar 2004 /
For the period from
1 Jan to 31 Mar 2004
As at 31 Dec 2003 /
For the period from
1 Oct to 31 Dec 2003
As at 30 Sep 2003 /
For the period from
1 Jul to 30 Sep 2003
Number of Subscribers 150.26 million 141.62 million 135.00 million
* Net increase in subscribers 8.64 million 6.62 million 5.91 million
* Average Revenue per User per Month (ARPU)(RMB/User/Month) 97 100 101
* Total Usage (Minutes) 119.53 billion 113.07 billion 98.28 billion
* Average Usage per User per Month (MOU) (Minutes/User/Month) 275 270 246
* Average Revenue per Minute (RMB) 0.353 0.369 0.409
Number of Users of Mobile Data Services 110.68 million 100.64 million 91.78 million
* Short Message Services Usage Volume (Messages) 32.4 billion 27.7 billion 25.1 billion
Network Capacity (Users) 176 million 172 million 152 million
Network Utilisation Rate 85.4% 82.3% 88.7%
Number of Employees 64,324 63,859 63,359
Labour Productivity (Subscribers/Employee) 2,336 2,218 2,131

Notes:
* for the relevant reporting period

During the first quarter of 2004, the Group continued to fully leverage its advantages of scale, integrated its brands and enhanced its customer service, rolled out marketing plans, such as tariff packages and point accumulation reward programs that suit the needs and consumption characteristics of different customer segments, and aggressively promoted voice usage volume, in order to enhance customer loyalty and increase business revenue, and to develop new businesses. Because the new adds market is characteristically comprised of low-usage, low ARPU users, the Group increased its efforts in promoting the "Shenzhouxing" sub-brand regional services with a view to better satisfying the needs of new users, further expanded the Company's user base, further consolidated the Company's position as the market leader and realize economies of scale. As at 31 March 2004, the Group's subscribers reached 150.26 million, representing a net increase of 8.64 million subscribers in three months from the subscriber base as at 31 Decemberember 2003. Total usage and operating revenue also recorded sustained and favourable growth as a result of the robust growth in subscriber base and the flexible and effective marketing plans that stimulated increased voice usage volume. During the period, the decline in average revenue per minute of usage has been relatively better controlled.

Owing to the rapid increase in subscriber base, which was primarily comprised of low-usage, low ARPU customers, including in particular the subscribers of the "Shenzhouxing" sub-brand, the Group's ARPU for the first quarter of 2004 continued to decline. However, these new subscribers, with their lower usage volume and correspondingly lower operating costs to the Group, have made a positive contribution to the growth of the Group's operating revenue and net profit. In the first quarter of 2004, the Group's Short Message Service continued to record rapid growth in usage volume, demonstrating the enormous development potential of the Group's mobile data businesses.

The Group's strong business growth, effective cost control and the further realization of economies of scale led to the continued favourable growth of operating revenue, EBITDA and net profit, which grew by 11.9%, 8.4% and 4.6%, respectively in the first quarter of 2004 when compared to the same period in 2003. EBITDA margin was 57.6% in the first quarter 2004. Although this is slightly lower than the figure of 58.2% recorded for the full financial year 2003, it showed marked improvement when compared to the figure of 55.8% for the fourth quarter of 2003. During this period, net profit margin was 22.3%, which was substantially the same as the figure of 22.4% recorded for the full financial year 2003.

In light of ever-increasing competitive pressures, the Group will continue to fully leverage its leading position in Mainland China's mobile telecommunications industry and its economies of scale. The Group will further integrate its brands, catering to different target customer segments, and aggressively develop mobile data and other new businesses. The Group will unswervingly pursue business and service innovation, focusing on its mobile telecommunications business. The Group will strive to consolidate its leading market position and maintain its sound fundamentals and sustainable development, with a view to generating greater value for its shareholders.

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