China Mobile : 2016 Interim Results Press Release

11 August 2016 For Immediate Release

• Maintained 4G leadership, 1.32 million base stations, nearly 430 million customer base

• Encouraging telecommunications services revenue growth beat the industry average

• Wireless data traffic revenue has for the first time exceeded traditional business and is now the biggest revenue source

• Satisfactory level of growth of wireline broadband customers, net increase of 10.81 million

• Operating revenue was RMB370.4 billion, up by 7.1%, of which revenue from telecommunications services was RMB325.4 billion, up by 6.9%

• EBITDA1 was RMB134.4 billion, up by 2.9%

• Profit attributable to equity shareholders was RMB60.6 billion, up by 5.6%

• Total mobile customers was 837 million, up by 2.4%

• Payment of an interim dividend of HK$1.489 per share; interim dividend payout ratio is 43%

Despite an increasing swell of challenges, China Mobile has delivered promising results in the first half of 2016, affirming that it is indeed pursuing the correct strategy. This has been driven by the Company's ongoing focus on innovation in all aspects of operation, as well as a business transformation towards value creation. This is a laudable achievement given that it is going through a period of rapid change where the industry is witnessing further integration and layers of complexity added to the competitive landscape. It has in turn created short-term operating pressures and more risk around those developments slated for the longer-term. However, China Mobile has made steady progress in the 4G, data traffic, wireline broadband and digital services business lines, delivering an outstanding overall performance in the period.

1 The Company defines EBITDA as profit for the period before taxation, share of profit of investments accounted for using the equity method, finance costs, interest income, other gains, depreciation and amortization of other intangible assets.

China Mobile has achieved encouraging growth both in terms of revenue and profit for the first half of 2016. The downward trend in revenue growth in telecommunications services that has been seen in recent years has been corrected, and the Company has once again beaten the average industry growth, underlining its market leading position.

Compared to the same period of the year before, operating revenue increased by 7.1% to RMB370.4 billion, within which, revenue from telecommunications services accounted for RMB325.4 billion, up by 6.9%. The Company generated the largest operating revenue in the first half of 2016 amongst industry peers, which is in line with its leading position in the market. EBITDA increased by 2.9% to RMB134.4 billion. Its profitability also out-performed industry peers, with profit attributable to equity shareholders reaching RMB60.6 billion, representing an increase of 5.6%.

After considering the operating results in the first half of 2016 as well as the need for sustainable future development, the Board has declared payment of an interim dividend of HK$ 1.489 per share (representing a payout ratio of 43%), according to the planned full year dividend payout ratio.

In the first half of 2016, the Company maintained its competitive advantage in 4G business and of particular note was that it conducted the timely launch of the high quality 4G premium network, ahead of market peers. The Company continued to enhance the stability, coverage and strength of its 4G network to ensure good customer experience at the core of its services. The Company added over 200,000 4G base stations, increasing the total number of 4G base stations to 1.32 million. Its 4G network has now been expanded to cover more indoor areas in a larger number of places.

Leveraging its strong existing network, China Mobile has focused its promotional efforts towards 4G upgrades and this campaign has successfully attracted a significant number of 2G/3G customers. In the first half of 2016, the monthly average net increase of 4G customers was over 19 million, pushing the total number of 4G customers to 429 million. 4G penetration rate of its mobile customers attained 51.2% while the Net Promoter Score, which measures the likelihood of customer recommendation, is industry-leading. In addition, the accelerated development of 4G capability and the level of adoption has brought growth in both data traffic and customer spending. During the period, 4G network handset data traffic as a percentage of the total handset data traffic increased to 88.0%. 4G DOU has increased by 31.9%, driving the growth in mobile ARPU. Data traffic reached a record-high level during the period.

During the first half of the year the Company has been exploring the dual agenda of increasing the value of its data traffic business while meeting community and end-user needs better. This focused effort managed to successfully generate growth in both volume and revenue from data traffic. Leveraging its innovative operating model, offering a bigger range of products and supplying its data services to an ever expanding customer base, China Mobile has been able to find a balance between charging lower fees, generating higher traffic volumes and still keeping the value of its services. The data traffic business performed strongly in the first half of 2016. Handset data traffic increased by 133.9% year-on-year, while wireless data traffic revenue increased by 39.7%, rose to 43.3% of the total telecommunications services revenue. Wireless data traffic revenue has for the first time exceeded traditional business and is now notably the biggest revenue source for China Mobile.

In the first half of 2016, China Mobile has seen a satisfactory level of growth in the number of

wireline broadband customers, with a net increase of 10.81 million and the total number of customers reaching 65.84 million. The broadband business line is starting to show its value potential. China Mobile adopts the high-end approach to the development of wireline broadband business, with an aim to grow its capability in household digital services.

Mr. Shang Bing, Chairman of the Company, expressed that 2016 is a milestone year for the implementation of the Big Connectivity strategy that sees the Company expanding its connection to the Internet of Everything, and is therefore crucial in its fundamental shift of business focus to capturing future growth. The Company remains committed to expanding its network, furthering connectivity scale, optimizing services and strengthening applications within its network as it lays the foundations for the next stage of development. The results show that it has experienced a good first half of 2016. However, competition around 4G business, the continued expansion of Internet companies into the communications industry, new regulatory policies and the Company's change of business focus will all pose risks to its existing operations. The management knows that they must concentrate efforts on these areas by speeding up the business transformation in order to capture first-mover advantage in the emerging areas and always be on the front foot when it comes to the development of the Company.

He said, "Our current strategy has the dual aspects of consolidation and future growth. For consolidation, we will be further building on our 4G advantages and increasing our 4G customers proportion. Our high-end approach with regards to wireline broadband will be maintained. We will challenge ourselves to obtain a one-third market share in the ICT business through expansion of our corporate customer base. In terms of future growth, we will take a longer-term perspective, looking towards our digital services segment and increasing the revenue by understanding the important role that this business line will play for the Company in the future. As we have always done, we will take a level-headed approach to market competition. Our ultimate goal is to strike a balance between the interests of our customers, our shareholders and the public, as well as regulatory requirements when we are striving to meet our short-term goals and formulating long-term plans.

For the rest of 2016, we remain committed to creating value for our shareholders and strengthening our market position to ensure that we maintain our lead in terms of profitability when compared to our peers. "

Forward looking statements

Certain statements contained in this Press Release may be viewed as "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of China Mobile Limited (the "Company") to be materially different from those implied by such forward-looking statements. These risks, uncertainties and other factors include but not limited to statements relating to the Company's business objectives and strategies; its operations and prospects; its provision of services and new service offerings; its network expansion and capital expenditure plans; the expected impact of any acquisitions or other strategic transactions, including its investment in and any arrangements with China Tower; the planned development of future mobile and other technologies and related

applications; the expected impact of the implementation in Mainland China of value-added tax, the policy of "speed upgrade and tariff reduction" and tariff changes on its business, financial condition and results of operations; and future developments in the communications industry in Mainland China including changes in the regulatory and competitive landscape. Further information regarding these risks, uncertainties and other factors is included in the Company's most recent Annual Report on Form 20-F filed and other filings with the U.S. Securities and Exchange Commission.

For press enquiries, please contact: China Mobile Limited

Ms. Rainie Lei Tel: 852-31218888

Email: rlei@chinamobilehk.com Fax: 852-31218809