1934 Act Registration No. 1-14696
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the Month of April 2004
China Mobile (Hong Kong) Limited
(Translation of registrant's name into English)
60/F The Center
99 Queen's Road Central
Hong Kong, China
(Address of principal executive offices)
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
----- -----
(Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.)
Yes No X
----- -----
(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b):82-_____________.)
================================================================================
EXHIBITS
Exhibit Number Page
-------------- ----
1.1 Announcement, dated April 20, 2004
FORWARD-LOOKING STATEMENTS
The announcement constituting Exhibit 1.1 contains certain forward-looking
statements that are, by their nature, subject to significant risks and
uncertainties, including those risks and uncertainties described under "Item 3.
Key Information - Risk Factors" in our annual report on Form 20-F for the fiscal
year ended December 31, 2002. These forward looking statements include, without
limitation, statements relating to certain development trends in the mobile
telecommunications market in China, the opportunities in the mobile
telecommunications services and wireless data business, our market position and
competitiveness, our business, operational and investment plans, development
strategies and our ability to effectively implement these plans and strategies
and achieve the intended goals such as optimizing network development and
utilization, improving service quality, upgrading technology, controlling costs,
and increasing productivity and operational efficiency, and other statements
relating to our future performance. The words "anticipate", "believe",
"estimate", "expect", "intend" and similar expressions, as they relate to us,
are intended to identify certain of such Forward-Looking Statements.
These Forward-Looking Statements reflect our current views with respect to
future events and are not a guarantee of future performance. Actual results may
differ materially from information contained in the Forward-Looking Statements
as a result of a number of factors, including, without limitation:
. changes in the regulatory policies of the Ministry of Information
Industry of China and other relevant government authorities, which could
affect, among other things, the granting of requisite government
approvals, licenses and permits, interconnection and transmission line
arrangements, tariff policies, capital investment priorities, and
spectrum allocation;
. the effect of competition on the demand for and price of our services;
. changes in mobile telecommunications and related technologies, which
could affect the viability and competitiveness of our mobile
telecommunications networks; and
. changes in political, economic, legal and social conditions in Mainland
China, including, without limitation, the Chinese government's policies
with respect to new entrants in the telecommunications industry, the
entry of foreign companies into China's telecommunications market and
China's economic growth.
We do not intend to update these Forward-Looking Statements.
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CHINA MOBILE (HONG KONG) LIMITED
Date: April 21, 2004 By: /s/ Wang Xiaochu
-----------------
Name: Wang Xiaochu
Title: Chairman and Chief Executive Officer
3
The Stock Exchange of Hong Kong Limited takes no responsibility for the contents
of this announcement, makes no representation as to its accuracy or completeness
and expressly disclaims any liability whatsoever for any loss howsoever arising
from or in reliance upon the whole or any part of the contents of this
announcement.
[Company Logo]
CHINA MOBILE (HONG KONG) LIMITED
(Incorporated in Hong Kong with limited liability under the Companies Ordinance)
(Hong Kong Stock Code: 941)
ANNOUNCEMENT
In accordance with the Company's disclosure policy and to further enhance the
transparency of the Group and timely provide additional information with which
shareholders, investors and the general public may better appraise the business
and financial position of the Group, the Board announces certain selected
unaudited key performance indicators of the Group for the first quarter of 2004.
In accordance with the Company's disclosure policy and to further enhance the
transparency of the Group and timely provide additional information with which
shareholders, investors and the general public may better appraise the business
and financial position of the Group, the board of directors (the "Board") of
China Mobile (Hong Kong) Limited (the "Company", together with its subsidiaries,
the "Group") announces certain selected unaudited key performance indicators of
the Group for the first quarter of 2004.
SELECTED UNAUDITED KEY PERFORMANCE INDICATORS
Financial Data
For the period from 1 January
2004 For the period from 1 January 2003
to 31 March 2004 to 31 March 2003 Increase
42.143 billion (equivalent to
Operating Revenue approximately 37.650 billion (equivalent to
(RMB) HK$39.758 billion) approximately HK$35.519 billion) 11.9%
24.286 billion (equivalent to
EBITDA (RMB) approximately 22.395 billion (equivalent to
HK$22.911 billion) approximately HK$21.127 billion) 8.4%
EBITDA margin 57.6% 59.5%
9.389 billion (equivalent to
Net profit (RMB) approximately 8.975 billion (equivalent to
HK$8.858 billion) approximately HK$8.467 billion) 4.6%
Net Profit margin 22.3% 23.8%
Operational Data
As at 31 March As at 31 December As at 30 September
2004/For the 2003/For the 2003/For the
period from period from period from
1 January 2004 to 1 October 2003 to 1 July 2003 to
31 March 2004 31 December 2003 30 September 2003
Number of Subscribers 150.26 million 141.62 million 135.00 million
Net increase in subscribers for the 8.64 million 6.62 million 5.91 million
relevant reporting period
Average Revenue per User per Month (ARPU)
during the relevant reporting period
(RMB/User/Month) 97 100 101
Total Usage for the relevant reporting 119.53 billion 113.07 billion 98.28 billion
period (Minutes)
Average Usage per User per Month (MOU)
during the relevant reporting period
(Minutes/User/Month) 275 270 246
Average Revenue per Minute of Usage during 0.353 0.369 0.409
the relevant reporting period (RMB)
Number of Users of Mobile Data Services 110.68 million 100.64 million 91.78 million
Short Message Services Usage Volume for the 32.4 billion 27.7 billion 25.1 billion
relevant reporting period (Messages)
Network Capacity (Users) 176 million 172 million 152 million
Network Utilization Rate 85.4% 82.3% 88.7%
Number of Employees 64,324 63,859 63,359
Labour Productivity (Subscribers/Employee) 2,336 2,218 2,131
During the first quarter of 2004, the Group continued to fully leverage its
advantages of scale, integrated its brands and enhanced its customer service,
rolled out marketing plans, such as tariff packages and point accumulation
reward programs that suit the needs and consumption characteristics of different
customer segments, and aggressively promoted voice usage volume, in order to
enhance customer loyalty and increase business revenue, and to develop new
businesses. Because the new adds market is characteristically comprised of
low-usage, low ARPU users, the Group increased its efforts in promoting the
"Shenzhouxing" sub-brand regional services with a view to better satisfying the
needs of new users, further expanded the Company's user base, further
consolidated the Company's position as the market leader and realize economies
of scale. As at 31 March 2004, the Group's subscribers reached 150.26 million,
representing a net increase of 8.64 million subscribers in three months from the
subscriber base as at 31 December 2003. Total usage and operating revenue also
recorded sustained and favourable growth as a result of the robust growth in
subscriber base and the flexible and effective marketing plans that stimulated
increased voice usage volume. During the period, the decline in average revenue
per minute of usage has been relatively better controlled.
Owing to the rapid increase in subscriber base, which was primarily comprised of
low-usage, low ARPU customers, including in particular the subscribers of the
"Shenzhouxing" sub-brand, the Group's ARPU for the first quarter of 2004
continued to decline. However, these new subscribers, with their lower usage
volume and correspondingly lower operating costs to the Group, have made a
positive contribution to the growth of the Group's operating revenue and net
profit. In the first quarter of 2004, the Group's Short Message Service
continued to record rapid growth in usage volume, demonstrating the enormous
development potential of the Group's mobile data businesses.
The Group's strong business growth, effective cost control and the further
realization of economies of scale led to the continued favourable growth of
operating revenue, EBITDA and net profit, which grew by 11.9%, 8.4% and 4.6%,
respectively in the first quarter of 2004 when compared to the same period in
2003. EBITDA margin was 57.6% in the first quarter 2004. Although this is
slightly lower than the figure of 58.2% recorded for the full financial year
2003, it showed marked improvement when compared to the figure of 55.8% for the
fourth quarter of 2003. During this period, net profit margin was 22.3%, which
was substantially the same as the figure of 22.4% recorded for the full
financial year 2003.
In light of ever-increasing competitive pressures, the Group will continue to
fully leverage its leading position in Mainland China's mobile
telecommunications industry and its economies of scale. The Group will further
integrate its brands, catering to different target customer segments, and
aggressively develop mobile data and other new businesses. The Group will
unswervingly pursue business and service innovation, focusing on its mobile
telecommunications business. The Group will strive to consolidate its leading
market position and maintain its sound fundamentals and sustainable development,
with a view to generating greater value for its shareholders.
The Board wishes to remind investors that the above key performance indicators
are based on the Group's unaudited management accounts. Investors are cautioned
not to unduly rely on such data.
In the meantime, investors are advised to exercise caution in dealing in the
securities of the Company.
For your convenience, this announcement contains translation between Renminbi
amounts and Hong Kong dollars at RMB1.06 = HK$1.00. The translations are not
representations that the Renminbi and Hong Kong dollar amounts could actually be
converted at this rate, or at all.
As at the date of this announcement, the Board of Directors of the Company is
comprised of Mr. Wang Xiaochu, Mr. Li Yue, Mr. Lu Xiangdong, Mr. Xue Taohai, Mr.
He Ning, Mr. Li Gang and Mr. Xu Long as executive directors, Dr. Lo Ka Shui, Mr.
Frank Wong Kwong Shing and Mr. Moses Cheng Mo Chi as independent non-executive
directors and Mr. Zhang Ligui and Dr. J. Brian Clark as non-executive directors.
By Order of the Board
China Mobile (Hong Kong) Limited
Wang Xiaochu
Chairman and Chief Executive Officer
Hong Kong, 20 April 2004