--- title: "China Mobile (Trans): AIDC revenue surged >4x; telecom under pressure" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/43376342.md" description: "H1 compute services revenue rose 14%, with AIDC revenue up over 4x YoY. Mobile data traffic growth doubled to 16%.However, the telecom services segment was under pressure and profits declined. Interim DPS was RMB 2.51, up just 0.3% YoY.Capex tilted clearly toward compute, with RMB 15.6bn invested in the compute network (+RMB 6.5bn YoY) while the telecom network was cut by RMB 4.1bn. Full-year guidance points to a steady uptick in the payout ratio." datetime: "2026-08-13T12:30:03.000Z" locales: - [en](https://longbridge.com/en/topics/43376342.md) - [zh-CN](https://longbridge.com/zh-CN/topics/43376342.md) - [zh-HK](https://longbridge.com/zh-HK/topics/43376342.md) author: "[Dolphin Research](https://longbridge.com/en/dolphin.md)" --- # China Mobile (Trans): AIDC revenue surged >4x; telecom under pressure **Below is Dolphin Research's summary.** It covers the FY26 1H earnings call for $CHINA MOBILE(00941.HK). **I. Key takeaways from the results** 1\. **Interim shareholder returns** a. Dividend: FY26 interim DPS of RMB 2.51, up 0.3% YoY. With RMB strength this year, HKD equivalent is HK$2.9003 per share, up 5.5% YoY. b. Context: This payout was delivered despite a decline in profit. c. Track record: Since 2002, the company has paid dividends twice a year, lifting payout ratio from 20% to 75% by 2025. DPS rose from HK$0.32 to HK$5.27 by 2025. Cumulative cash dividends reached approx. HK$1.49 tn by end-2025. 2\. **Dividend currency switched from HKD to RMB** a. As a Hong Kong-incorporated red chip and a PRC resident enterprise with main ops onshore, the company can declare in either HKD or RMB. Both currencies are permissible for distribution. b. With RMB as the functional currency, declaring in RMB aligns with the accounting base. Several dual-listed peers already declare in RMB. c. HK shareholders (ex Stock Connect holders) may choose the receipt currency in light of FX moves. 3\. **Dividend and guidance** a. The interim disclosure states: the FY26 payout ratio will edge higher. b. Whether full-year DPS will continue to grow and whether a special dividend will be paid in 2027 (30th listing anniversary) will be decided in due course and disclosed in compliance. No commitment yet. c. 1H development tracked plan. Positive changes support achieving full-year targets, and management is confident about hitting key operating goals. 4\. **1H capex and mix** a. Total: Capex of RMB 61.0 bn, up RMB 2.6 bn YoY. Progress ran ahead of last year. b. Mix: Computing power network capex was RMB 15.6 bn, up RMB 6.5 bn YoY. Comms network capex was cut by RMB 4.1 bn YoY. c. Full-year: A flexible capex mechanism allows for incremental computing power capex as needed. For the comms network, investment scale and mix will trend down while maintaining network leadership. 5\. **Key operating and efficiency metrics** a. Revenue: Computing services revenue grew 14% YoY. AIDC revenue rose over 4x YoY, and intelligent computing services posted multi-fold growth. Comms services are in a transitory soft patch. b. Cash flow: Cash flow grew rapidly, with positive shifts in operating fundamentals. c. Returns: ROA and ROE have ranked among the industry leaders in recent years. **II. Earnings call details** **2.1 Management highlights** 1\. **Overall operating landscape** a. A divergent picture: comms services facing near-term pressure, computing services seeing strong momentum, intelligent services building capabilities, and faster Intl expansion. b. Management views 1H as in line with expectations, with momentum shifting to new engines and a more optimal mix. 2\. **Customers and traffic (comms services)** a. 1H net adds: +5.88 mn mobile subs, +11.45 mn mobile internet subs, and +1.14 mn individual customers. Churn continued to decline. b. Mobile data traffic grew 16% YoY, doubling its prior growth rate. AI is becoming an important new source of network traffic growth, ushering in a new phase of high-speed growth in both Bytes and Tokens. 3\. **Computing services** a. 1H computing services revenue grew 14% YoY, with AIDC revenue up over 4x and intelligent computing revenue achieving multi-fold growth. Large project signings scaled rapidly. b. Some hub nodes and hot-spot regions saw racks pre-sold, indicating supply shortages amid strong demand. c. Investment prioritizes AIDC through hyperscale intelligent computing clusters, adhering to a demand-led approach to meet fast-growing AI training and inference needs. 4\. **Token operations and intelligent services** a. Products: Multi-tier Token pricing plans were designed for different user needs and piloted across multiple provinces. A nationwide unified Token bundle will be launched next. b. Platform: The unified Mobile Model Service Platform 'MoMA' and its dedicated compute pool provide one-stop model services with single access, smart routing, inclusive availability, and trusted security. MoMA has aggregated 300+ mainstream models. c. Ecosystem: Top-tier models and AI apps have been integrated, with diversified commercial models under exploration. d. Business model: Full-stack innovation across Token production (resource base), distribution (platform capabilities and centralized ops to lower Token cost), and usage (flexible combos of Tokens, models, traffic, devices, and perks). Leveraging Agents and new AI devices as entry points to pull cloud, AIDC, and enterprise private line growth. 5\. **AI layout (Infra / Services / Ecology)** a. AI Infra: Advance 5G-A and 6G R&D, step up AIDC build-out and delivery, focus on hyperscale intelligent compute centers, and upgrade the Jiutian secure and trusted LLM. b. AI Services (C-end): Bring AI into sports, culture, and finance, exploring AI phones, AI glasses, and humanoid robots. During last month’s World Cup in the U.S., Canada, and Mexico, Migu ran the first AI World Cup, with 360 mn uses of Migu Video’s AI viewing service. c. AI Services (B-end): Use digital-intelligent services as the entry point for scaled AI adoption, focusing on manufacturing, steel, and energy. The 'Mobile Tiangong' industrial internet platform has delivered AI+ solutions to 300k+ enterprises. d. AI Ecology: Equity investments across the AI value chain, covering chip design, model development, data ops, smart hardware manufacturing, and AI application services, strengthening industry-investment synergy. e. Organization: Set up a Computing Power Office and a Token Office, created a Digital-Intelligence BU, and clarified the development mandate for China Mobile Jiutian AI. 6\. **Strategic direction** a. Elevate intelligent services alongside comms and computing as core businesses, with 'intelligence first' as the guiding principle. The overarching strategy is 'network-led foundation, full-stack innovation', adhering to 'intelligence first, compute essential, connectivity fundamental'. b. Capability upgrade: Transform from a comms services company to a tech services company, shifting network leadership from scale to technology and value. Move from meeting demand to leading and creating demand. c. Quality and efficiency: Drive revenue expansion and cost discipline, monetize network capabilities to raise network ROI, optimize product supply to lift biz. efficiency, and invest in people to convert HR into human capital. d. In the national 'six networks' blueprint, next-gen comms networks and integrated computing networks are core mandates for China Mobile. **2.2 Q&A** **Q: How do you assess 1H performance? Outlook for the full year? Next steps?** A: In 1H26, comms services were under pressure, computing services grew strongly, intelligent services strengthened capabilities, and Intl markets expanded faster. Cash flow grew rapidly with positive shifts in operating fundamentals, showing momentum toward new engines and a better structure. Overall, 1H tracked expectations. Three positive shifts: First, more customers chose China Mobile, with net adds of +5.88 mn mobile subs, +11.45 mn mobile internet subs, and +1.14 mn individual customers, while churn continued to fall, reinforcing network scale effects. Second, the newly proposed dual high-growth phase in Bytes and Tokens started to emerge, with mobile data traffic up 16% YoY, doubling prior growth, and AI becoming a major new source of traffic. Third, new-quality competitive strengths accelerated, with computing services revenue up 14% YoY, AIDC revenue up over 4x, intelligent computing revenue up multiple times, and large project signings scaling rapidly. These will support delivery of full-year targets. Next, we will firmly execute the 'network-led foundation, full-stack innovation' strategy. We will upgrade capabilities to transform from comms services to tech services, adhere to 'intelligence first, compute essential, connectivity fundamental', and shift network leadership from scale to technology and value while moving from meeting to leading and creating demand. We will also enhance quality and efficiency, keep full-year goals in focus, drive revenue growth and cost control, monetize network capabilities to improve network ROI, optimize products and service experience to lift biz. efficiency, and invest in people to enhance productivity. As AI accelerates and blurs industry boundaries, new opportunities are opening, and we are confident of meeting key operating goals. **Q: Progress on Token operations since the start of the year? Overall plan and business model? Will there be a nationwide unified Token bundle?** A: In 1H, we advanced Token operations across product suite, platform capability, and ecosystem, achieving phased progress. On products, we designed multi-tier Token pricing for different users and piloted in several provinces. On platform, we built the unified MoMA with a dedicated compute pool to deliver one-stop model services with single access, smart routing, inclusive availability, and trusted security. On ecosystem, we integrated top models and AI apps and explored diversified commercial models, enriching Token use cases. Anchored on being a 'mobile intelligent services provider', we will drive full-stack innovation across Token production, distribution, and usage to achieve efficient production, high-quality distribution, and high-value usage. On production, we will strengthen the resource base, coordinate network-wide resources, enhance intelligent compute interconnection, accelerate AIDC commissioning, and upgrade AICC services to ensure efficient Token flow and scheduling. On distribution, we will build a stronger platform, continue to scale MoMA, aggregate top open/closed-source models plus compute and app resources, and elevate smart orchestration and cloud-network synergy to best-in-class levels. Centralized operations will structurally lower Token costs. On usage, we will scale products: for consumer and enterprise markets, the company will launch a nationwide unified Token bundle, targeting high-frequency scenarios and high-value customers with flexible combos of Tokens, models, traffic, devices, and privileges on a demand-based subscription. The MoMA aggregation platform will serve as the hub, with Agents and new AI devices as entry points to deliver one-stop intelligent services, driving sustained growth in Tokens, traffic, and apps. Backed by Mobile Cloud and AIDC for model deployment, inference, and industry apps, this will pull growth in cloud, AIDC, and enterprise private lines, enabling coordinated growth across connectivity, compute, and intelligence. **Q: Rationale for switching dividend declaration currency to RMB this year?** A: Since 2002, the company has paid semiannual dividends, lifting payout ratio from 20% to 75% by 2025, with DPS rising from HK$0.32 to HK$5.27 by 2025. Cumulative cash dividends totaled approx. HK$1.49 tn by end-2025. Three reasons for declaring in RMB from this period: First, as a Hong Kong red chip and a PRC resident enterprise with main onshore ops, the company can declare in HKD or RMB. Second, although historically declared in HKD, the functional currency is RMB, and declaring in RMB aligns with the accounting base; many dual-listed peers now declare in RMB, and HK shareholders can elect to receive in RMB or HKD. Third, HK shareholders (ex Stock Connect) may choose the receipt currency based on FX movements to better protect shareholder interests. For the FY26 interim, despite lower profit, DPS is RMB 2.51 (+0.3% YoY). With RMB appreciation this year, the HKD equivalent is HK$2.9003 per share (+5.5% YoY), fully considering shareholder returns. **Q: Can full-year DPS still grow? With the 30th listing anniversary next year, will there be a special dividend?** A: The interim guidance is that shareholder interests will be well protected and the FY26 payout ratio will rise steadily. Whether full-year DPS continues to grow and whether a 30th-anniversary special dividend will be paid in 2027 will be decided after considering all factors and disclosed in compliance. **Q: AI strategy and progress? Investment returns in AI?** A: We elevated intelligent services alongside comms and computing as core businesses and set 'intelligence first' as the strategic direction. In 1H, we formed a Computing Power Office and a Token Office, set up a Digital-Intelligence BU, clarified China Mobile Jiutian AI’s mandate, and increased investment while driving innovation in intelligent services. Our focus has three pillars: First, build robust AI infrastructure. We advanced 5G-A evolution and 6G R&D around AI needs, ramped AIDC build and delivery, focused on hyperscale intelligent compute centers, upgraded the Jiutian secure and trusted LLM, and expanded MoMA to 300+ mainstream models. Second, build the AI services system. For consumers, we brought AI to sports, culture, and finance and explored AI phones, AI glasses, and humanoid robots; during last month’s World Cup in the U.S., Canada, and Mexico, Migu launched the first AI World Cup, with 360 mn uses of its AI viewing service. For enterprises, we used digital-intelligent services as the entry to scaled AI, focusing on manufacturing, steel, and energy, and our 'Mobile Tiangong' industrial internet platform has provided AI+ solutions to 300k+ companies. Third，完善 the AI ecosystem. We invested across the AI value chain in chip design, model R&D, data ops, smart hardware manufacturing, and AI application services, using capital to deepen industry-investment synergy. In 1H, AIDC revenue rose over 4x YoY and intelligent computing revenue saw multi-fold growth. Our recent exploration shows economies of scale are emerging in AI, with improving profitability. We will stick to 'intelligence first', increase AI investment, and innovate the operations system to convert intelligent services into core competitiveness and growth drivers. **Q: 1H capex was faster than prior years. Where did it go? Full-year capex plan?** A: 1H capex was RMB 61.0 bn, up RMB 2.6 bn YoY, with faster progress than last year. We stepped up computing investments for earlier commissioning and value realization: computing network capex reached RMB 15.6 bn, up RMB 6.5 bn YoY, while comms network capex was cut by RMB 4.1 bn YoY. National plans are advancing the 'six networks', with next-gen comms networks and integrated computing networks as China Mobile’s core mandates. We run a flexible capex mechanism and will invest ahead of demand and add to computing capex when needed. For comms, we will invest precisely to support 5G/5G-A and gigabit home broadband, lowering the scale and share of investment while keeping network leadership. For computing, we will stay demand-led and increase investment from AIDC to hyperscale intelligent clusters to meet fast-growing AI training and inference needs. With demand surging in recent years, some hub nodes and hot spots are pre-sold and in short supply, so we will invest per demand. We will also deepen network quality and efficiency, strengthen centralized planning and build-out, and fully activate resources to leverage large-network advantages, enhancing operating returns and ROI. ROA and ROE have stayed among the industry’s best in recent years, sustaining solid returns. Overall, we will sharpen foresight on frontier tech across comms, compute, and intelligence, invest ahead of the curve and in the right slots, and, with a scientific investment mix and pacing, drive coordinated development of comms, computing, and intelligent networks. **Risk disclosure and statement:**[**Dolphin Research Disclaimer and General Disclosure**](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### Related Stocks - [00941.HK](https://longbridge.com/en/quote/00941.HK.md) - [80941.HK](https://longbridge.com/en/quote/80941.HK.md) - [HCMD.SG](https://longbridge.com/en/quote/HCMD.SG.md) - [600941.CN](https://longbridge.com/en/quote/600941.CN.md)