12:00AM New York - The world’s largest mobile phone operator reported annual operating revenues increased 21% to Rmb356 billion leveraged by strong customer growth.

Annual Earnings Review

China Mobile, largest mobile phone service provider in China, reported revenue for the year 2007 ending in December rose 20.9% to Rmb 356 billion ($50.1 billion) from Rmb 295.3 billion a year earlier as the company used new technologies to penetrate the rural market.

For the year, net profit advanced 31.9% Rmb 87 billion ($12.25 billion) from Rmb 66 billion. Basic earnings per share rose 31% to Rmb 4.35 from Rmb 3.32 a year earlier. Earnings before income, taxes, depreciation and amortization grew 21.6% from Rmb 159 billion a year ago to Rmb 194 billion. Net profit margin improved to 24.4% from 22.4% in 2006.

The mobile company also declared a full-year dividend of HK$1.997 per share and a special dividend of 10 HK cents per share.

China Mobile improved its market share to 69% at the end of 2007 from 68% in 2006. Average monthly churn rate declined to 2.64% from 2.73% in 2006.

Segment Review

According to the company robust economic growth and boom in demand for telecommunications services continued to positively impact on the business.

There was continued growth across all the portfolios such as new customers, new business and new voice usage that fueled the growth. In addition, the company’s subscriber base continued to expand and value-added data services were popular among customers.

During the year, China Mobile adjusted its tariffs to meet regulatory requirements and demand, while at the same time stimulating voice usage volumes.

At the end of December, there was a net increase in subscribers of 68.1 million to 369.3 million, while the average monthly net addition exceeded 5.67 million.

Total voice usage volume reached 1,818.89 billion minutes and average minutes of usage per user per month was 455 minutes. Average revenue per user per month declined Rmb 89 ($12.53) compared to Rmb 90 in 2006.

China Mobile particularly focused on the rural market in 2007. The availability of national unified information platform helped to provide updates in agricultural market information and job market information. Agricultural information service subscriber increased to 26.4 million from 17.8 million in 2006.

Revenues generated by the value-added business contributed 25.7% of the company’s total operating revenue.

‘‘Color Ring’’, WAP and MMS businesses continued positive growth and other value added services also grew rapidly.

In addition, the mobile music business registered significant growth, with the ‘‘Wireless Music Club’’ senior members reaching 35.4 million by the end of the year, while the group’s Mobile Paper news and information service had 23.5 million paying subscribers and the ‘‘Fetion’’ instant messaging service had more than 12.8 million active subscribers.

China Mobile also introduced the Financial Information Express and Trade & Business Express and at the end the corporate customer base had reached 2.12 million companies.

Network

In 2007, the mobile company carried out network capacity expansion and network optimization programs in order to grow the peak-time voice traffic volume. The company claims the wireless connection rate was maintained at 99.2%.

Also at the end of 2007, the GSM roaming services were offered through 350 operators in 231 countries and regions and the GPRS roaming services in 161 countries and regions.