--- title: "China Mobile: Tax Revamp Hit, Div. Still Intact?" type: "Topics" locale: "zh-CN" url: "https://longbridge.com/zh-CN/topics/39546859.md" description: "China Mobile (600941.SH/00941.HK) released its 2025 annual report and Q4 results (to Dec 2025) after hours in Hong Kong on Mar 26, 2026. Key takeaway (1) operating metrics: revenue saw a slight uptick, while OP continued to trend higher.$CHINA MOBILE(00941.HK) reported Q4 2025 revenue of RMB 255.5bn, up 2.5% YoY. Telecom service revenue edged higher YoY this quarter, while product sales and related businesses grew about 14% YoY for the second straight quarter..." datetime: "2026-03-26T13:26:48.000Z" locales: - [en](https://longbridge.com/en/topics/39546859.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39546859.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39546859.md) author: "[Dolphin Research](https://longbridge.com/zh-CN/news/dolphin.md)" --- > 支持的语言: [English](https://longbridge.com/en/topics/39546859.md) | [繁體中文](https://longbridge.com/zh-HK/topics/39546859.md) # China Mobile: Tax Revamp Hit, Div. Still Intact? China Mobile (00941.HK/600941.SH) released its FY25 annual results and Q4 2025 earnings (to Dec 2025) after the Hong Kong close on Mar 26, 2026 (Beijing time). Key takeaways below: **1) Ops: revenue edged up; operating profit trended higher**. $CHINA MOBILE(00941.HK) **reported Q4 revenue of RMB 255.5bn (+2.5% YoY).** Communications service revenue was slightly higher YoY, while product sales and related lines rose about 14% for a second straight quarter. **Q4 operating profit came in at RMB 25.6bn (+8% YoY),** mainly on a lower opex ratio. **2) Core biz: lower data tariffs to drive usage; broadband steady**. **a) Data traffic: still the largest revenue contributor at 40% of total**. H2 data revenue was RMB 173.6bn, down 4% YoY. Data usage rose 10% YoY, but average data tariffs fell 13%, as the company continued to cut prices to attract users. **b) Broadband: steady growth.** H2 broadband revenue reached RMB 73.0bn, up 8.6% YoY, supported by both user growth and higher ARPU. **c) Other lines**: voice and SMS continued to decline, while information services kept growing. **3) Capex: dialing back network spend, adding to computing power**. $China Mobile(600941.SH) Q4 2025 capex was approx. RMB 39.8bn, broadly flat YoY. **On the outlook, 2026 capex is guided at RMB 136.6bn, down RMB 15–20bn YoY.** Cuts will focus on communications network capex, while investment in computing-power networks will continue to rise (around RMB 37.8bn). **4) ROE and dividends: TTM ROE at 10%, flat YoY**. **Total dividends and buybacks in Q2–Q3 reached RMB 104.2bn, with the dividend payout ratio still above 72%.** **Dolphin take: despite 'higher taxes', dividends remain rich; 'compute power' is the growth hope** Results were broadly in line with expectations, with revenue growth primarily from product sales and related businesses, while core communications saw modest gains. The sharp drop in bottom-line profit was mainly due to other gains/losses, whereas operating profit rose 8% YoY. By line: **① the data business kept executing a 'cut tariffs to drive traffic' playbook, with H2 data ARPU down 13% and mobile user numbers still inching up;** ② broadband sustained roughly 8% growth in H2, with both users and ARPU up; ③ information services and product sales grew, led mainly by computing-related services. **Versus the steady ops, the market is more focused on:** **a) Capex**: Q4 capex was RMB 39.8bn, roughly flat YoY. **Management guides 2026 capex at RMB 136.6bn (-9.5% YoY), with cuts in network capex and continued additions to computing-power capex (around RMB 37.8bn).** With 5G peak investment behind it, China Mobile’s capex has clearly rolled over. **As capex declines while D&A remains elevated, cash operating profit exceeds reported operating profit, implying stronger cash earnings**. **Dolphin estimates Q4 after-tax cash operating profit at RMB 25.5bn, up 6% YoY.** **b) Dividends**: since distributions typically fall in Q2/Q3, **full-year 2025 dividends totaled about RMB 104.2bn, keeping payout north of 72%.** **Overall, operating trends remained stable this quarter,** while the decline in net profit was mainly driven by other gains/losses. From Jan 1, 2026, under the new VAT policy, **data, SMS and MMS will be reclassified from 'value-added telecom services' to 'basic telecom services', with VAT lifted from 6% to 9%.** Based on the revenue mix of data, SMS and MMS, **the VAT hike is expected to trim total revenue by roughly 1–2%.** Given the ongoing 'price cuts to drive volume' strategy, pass-through to end-users is limited, implying a profit impact of about 5–7%. At the current market cap of RMB 1.5tn, 2026E net income implies around 11x PE (assumptions: +1% revenue growth, GPM 58.6%, tax rate 22.3%). **Historically, the stock traded in a 7–13x PE range, and the current multiple sits near the midpoint.** **In this print, capex keeps trending down, ROE is improving, and payout remains high. The company still offers both 'earnings stability' and 'high dividends'. The VAT change is an industry-wide factor for the three national operators,** bringing a one-off hit to 2026 growth and slightly reducing dividends (by about 5%). **As a data traffic provider, usage keeps climbing through the year, making it a steady business.** The VAT increase is a sector headwind that will dampen results but should be manageable. With data centers and AI yet to ramp, even after a haircut to dividends, China Mobile still offers a 6%+ yield and remains a dividend play. Below is Dolphin’s detailed read of China Mobile’s results: **I. Operating metrics: steady growth** **1.1 Top line** **Q4 2025 revenue was RMB 255.5bn (+2.5% YoY).** By segment, communications services contributed RMB 212.4bn (+0.5% YoY), while product sales and others delivered RMB 43.1bn (+14% YoY). Communications service revenue rose slightly YoY, with personal mobile services down 4% in the quarter. Home and government/enterprise continued to grow around 9% YoY. For the personal mobile segment, which accounts for over half of total revenue: ① **mobile subs** stayed above 1bn, slipping QoQ; ② **mobile ARPU** was RMB 43.2 in Q4, down 4.5% YoY. ARPU has been trending lower over the past year. **2.2 Gross margin** **Q4 2025 GPM was 51.4%, down 380bps YoY.** Dolphin treats 'network operation & support' and 'cost of products sold' as COGS to derive gross profit and margin. Communications services carry higher margins than product sales. **A higher mix of product-related revenue in Q4 diluted the consolidated GPM.** **2.3 Operating expenses** **Q4 2025 opex was RMB 105.9bn, down 4.9% YoY.** Dolphin aggregates 'selling expenses', 'employee benefit expenses', 'D&A', and 'other operating expenses' into opex. **1) Selling expenses:** RMB 15.2bn (+21.5% YoY), reflecting higher spend on retention and customer service. **2) Employee benefits:** RMB 36.9bn (+2.2% YoY), with more tilt to core and frontline staff. **3) D&A:** RMB 48.0bn (-2.7% YoY) as capex trends down post the 5G investment peak. **2.4 Net profit** Q4 2025 net income was RMB 21.8bn, down 21% YoY, mainly due to other gains/losses. With VAT rising from 2026, the company adjusted 'bundle revenue tax allocation' this quarter. **Given D&A exceeds capex, after-tax cash operating profit was RMB 25.5bn in Q4 (ex non-operating items), up 6% YoY.** **II. By business: 'cut tariffs to draw traffic' remains the core approach** China Mobile’s revenue mainly comes from communications services and product sales, with the former long accounting for 80%+. Hence, trends in communications services drive overall revenue and business changes. **Within communications services, wireless data remains the largest contributor at 40.5%, but its share is falling under the 'cut tariffs to drive usage' strategy.** Other lines include broadband, voice, SMS, and application & information services. **2.1 Wireless data** **H2 2025 data revenue was RMB 173.6bn (-4% YoY).** Short-video and other use cases kept boosting data consumption, but a lower unit tariff continued to weigh on revenue. Breakdown: **H2 wireless data usage reached 96.1bn GB (+10.3% YoY), while the avg. tariff was RMB 1.8/GB (-13% YoY)**. **Despite robust demand, the company continued to reduce data tariffs.** **2.2 Broadband** **H2 2025 broadband revenue was RMB 73.0bn (+8.6% YoY).** Growth persisted, driven by share gains in the broadband market. **As of Dec 2025, broadband subs rose to 324mn (+3% YoY), implying monthly ARPU of RMB 37.6 (+4.6% YoY).** **2.3 Other lines** **1) Voice:** H2 2025 revenue was RMB 32.44bn (-4% YoY). The line is in secular decline as OTT video/voice substitutes legacy calling. **2) SMS/MMS:** H2 2025 revenue was RMB 13.5bn (-7.6% YoY). This is no longer a mainstream channel, with demand concentrated among B-end clients such as banks. **3) Apps & information services:** H2 2025 revenue was RMB 122.1bn (+6% YoY). The bucket spans consumer digital content & apps (entertainment & lifestyle), smart-home (digital home hub), and enterprise digitalization (gov./enterprise IT services). As a legacy carrier, the company aims to upgrade via app and information services, shifting from connectivity to value-based services. **The biggest pivot is toward cloud, 5G and AI as strategic anchors to move the mix up the tech stack.** **Current growth is only ~6%; watch data center and cloud-related businesses for more 'potential' upside.** Dolphin Research’s China Mobile archive: Oct 20, 2025 earnings take: '[China Mobile: as steady as a ballast, the cash cow stays on track!](https://longportapp.cn/zh-CN/topics/35402458)' Aug 7, 2025 call transcript: '[China Mobile (Trans): guidance unchanged for 'steady revenue growth, solid profit growth'](https://longportapp.cn/zh-CN/topics/32749983)' Aug 7, 2025 earnings take: '[China Mobile: earnings power intact, cash-cow status unchanged](https://longportapp.cn/zh-CN/topics/32749613)' Apr 22, 2025 earnings take: '[The non-discretionary champ! Is China Mobile the real king of stocks?](https://longportapp.cn/zh-CN/topics/29067474)' Risk disclosure and disclaimer: [Dolphin Research disclaimer and general disclosures](https://support.longbridge.global/topics/misc/dolphin-disclaimer) ### 相关股票 - [CHINA MOBILE (00941.HK)](https://longbridge.com/zh-CN/quote/00941.HK.md) - [CHINA MOBILE-R (80941.HK)](https://longbridge.com/zh-CN/quote/80941.HK.md) - [China Mobile (600941.CN)](https://longbridge.com/zh-CN/quote/600941.CN.md) - [CHINA UNICOM (00762.HK)](https://longbridge.com/zh-CN/quote/00762.HK.md) - [CN Mobile HK SDR 5to1 (HCMD.SG)](https://longbridge.com/zh-CN/quote/HCMD.SG.md) ## 评论 (1) - **师姐在向我招手 · 2026-03-26T14:38:45.000Z**: In that case, the impact of the value-added tax is almost completely offset by the reduction in expenditure.