On March 20, China Mobile delivered an annual answer sheet that was both stable and breakthrough.

The proportion of digital transformation revenue has exceeded 30%. Mobile cloud broke the 100 billion mark for the first time

Against the backdrop of slowing growth in the traditional communications market, the world's largest operator by users is passing through an AI-driven computing power revolution to tell a more imaginative technology story to the capital market.2024 financial report data shows that the company achieved operating income of 1.04 trillion yuan, a year-on-year increase of 3.1%, and net profit of 138.4 billion yuan, a year-on-year increase of 5%. Behind the seemingly moderate growth rate, there are two key turning points hidden: digital transformation revenue The proportion exceeded 31.3%, mobile cloud revenue exceeded the 100.4 billion yuan for the first time, and the proportion of computing power capital expenditure climbed to 25%, which further revealed the management's aggressive layout for the future.InvalidParameterValue

This transformation is no accident.When operators around the world are generally caught in the dilemma of declining ARPU values and peaking user growth, China Mobile chose to bet on the construction of AI infrastructure.Chairman Yang Jie bluntly said at the performance meeting: "Our benchmarking targets have shifted from traditional operators to global technology giants."This shift in positioning is reflected in specific actions-in 2024, the scale of self-built computing power will reach 29.2EFLOPS (smart computing)+8.5EFLOPS (general computing), covering all" Eastern Digital and Western Computing "hub nodes, and in 2025. Among the planned investment of 37.3 billion yuan in computing power, there will be no upper limit on the investment in reasoning resources.What is more noteworthy is that its independently developed nine-day-old model has been selected as the "Top Ten Important Equipment of Central Enterprises" and has implemented 40 industry models in energy, transportation and other fields. This deep penetration in vertical areas is reshaping operators. Value chain positioning.InvalidParameterValue

The enthusiastic response from the market confirms the forward-looking nature of the strategy.The explosive growth of DeepSeek products is a typical example: GPU utilization soared from 20% to 68% after launch, resource sales increased by 40 percentage points to 77%, and 60% of customers chose the hyper-converged deployment model.This technological dividend was directly transmitted to financial performance. Mobile cloud revenue increased by 20.4% year-on-year, and government and enterprise market revenue exceeded 209.1 billion yuan, of which 5G private network revenue grew by as high as 61%.It is worth noting that the customer structure is undergoing qualitative changes-among the 190 million "AI-based product" users, traditional enterprise customers achieve cost reduction and efficiency improvement through AI quality inspection and intelligent office assistants, and C-end users pay for innovative services such as AI video surveillance and intelligent game viewing. This ecological effect of B/C-end collaboration is dispelling the market's concerns about operators '"pipelining".InvalidParameterValue

At the level of capital allocation, China Mobile has shown rare strategic determination.Although overall capital expenditure in 2025 will fall by 7.8% year-on-year to 151.2 billion yuan, computing power investment will increase against the trend to 37.3 billion yuan, accounting for 25%.Behind this structural adjustment is the management's accurate prediction of the contradiction between supply and demand of AI computing power: the current resource utilization rate of smart computing centers has reached 75%-80%, far exceeding the industry average, and the "no limit" strategy points to the resource jam war during the explosion of AI applications in the next three years.What is more noteworthy is the evolution of its business model-by building a "Model-as-Service"(MaaS) platform, the three major elements of computing power, algorithms, and data are encapsulated into standardized products. This shift from resource leasing to capability export, may subvert the valuation system of traditional cloud services.InvalidParameterValue

Yang Jie: Upgrade cloud computing to cloud smart computing and become "TSMC in the AI field"

At the "Analyst and Investor Conference" held in the evening, China Mobile Chairman Yang Jie said that the cloud has become the cornerstone of the digital economy and the information infrastructure that carries various applications.

Yang Jie emphasized the importance of the AI+ era.He said that ten years ago, Internet +, five years ago 5G+, and now we have entered AI+, which can bring huge growth space to the company.The Internet of Everything has become a source of more training data for AI in the future: "Now everyone says that AI training data resources are a bit scarce, and it should be almost done.What are the next data sources?The first Internet of Everything, real-time data is generated at any time.The second AI automatically generates data and forms a new data source.”

The management pointed out that the company is now positioned as an information service technology innovation company. It wants to be TSMC in the AI field and increase the scale of AI investment: "Information services have greatly expanded our entire development space. We are now not only targeting global operators, but also a global technology innovation company.In 2025, China Mobile plans to invest 37.3 billion yuan in computing power, accounting for 25% of capital expenditure.”

China Mobile said that since DeepSeek went public, its GPU resource utilization has tripled.Management revealed: "After the outbreak of DeepSeek, the overall customer demand is growing exponentially.Therefore, it is expected that the entire cloud computing business brought by AI, including the growth of mobile cloud, will show good growth next year.”

Regarding the return issue that investors are concerned about, management said that China Mobile has paid dividends twice a year since 2002, and the dividend payout ratio has increased from 20% to the current 73%, and plans to increase to more than 75% by 2026.