Page 60 - China Mobile Limited - Annual Report 2012

China Mobile Limited
Annual Report 2012
Report of Directors
54
The directors take pleasure in submitting their annual report together with the audited financial statements for the year ended
31 December 2012.
Principal Activities
The Group’s principal activity is providing mobile telecommunications and related services in 31 provinces, autonomous
regions and directly-administered municipalities in Mainland China and Hong Kong. The principal activity of the Company is
investment holding.
The turnover of the Group during the financial year consisted primarily of income generated from the provision of mobile
telecommunications services.
Major Customers and Suppliers
The Group’s aggregate turnover with its five largest customers did not exceed 30% of the Group’s total turnover in 2012.
Purchases from the largest supplier for the year represented 8% of the Group’s total purchases. The five largest suppliers
accounted for an aggregate of 29% of the Group’s purchases in 2012. Purchases for the Group include network equipment
purchases, leasing of transmission lines and payments in relation to interconnection arrangements. Purchases from
suppliers, other than suppliers of leased lines and network equipment and interconnection arrangements, were not material
to the Group’s total purchases.
At no time during the year ended 31 December 2012 have the directors, their associates or any shareholder of the Company
(which to the knowledge of the directors owns more than 5% of the Company’s share capital) had any interest in these five
largest suppliers.
Subsidiaries, Associates and Jointly Controlled Entity
Particulars of the Company’s subsidiaries, the Group’s associates and jointly controlled entity as at 31 December 2012 are
set out in notes 18, 19 and 20, respectively, to the financial statements.
Financial Statements
The profit of the Group for the year ended 31 December 2012 and the financial conditions of the Company and the Group as
at that date are set out in the financial statements on pages 73 to 150.