Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document - Document and Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | CHL |
Entity Registrant Name | CHINA MOBILE LTD /ADR/ |
Entity Central Index Key | 1,117,795 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 20,475,482,897 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating revenue | |||
Revenue from telecommunications services | ¥ 668,351 | ¥ 623,422 | ¥ 584,089 |
Revenue from sales of products and others | 72,163 | 84,999 | 84,246 |
Operating revenue | 740,514 | 708,421 | 668,335 |
Operating expenses | |||
Leased lines and network assets | 46,336 | 39,083 | 20,668 |
Interconnection | 21,762 | 21,779 | 21,668 |
Depreciation | 149,780 | 138,090 | 136,832 |
Employee benefit and related expenses | 85,513 | 79,463 | 74,805 |
Selling expenses | 61,086 | 57,493 | 59,850 |
Cost of products sold | 73,668 | 87,352 | 89,297 |
Other operating expenses | 182,243 | 167,073 | 162,293 |
Operating expenses | 620,388 | 590,333 | 565,413 |
Profit from operations | 120,126 | 118,088 | 102,922 |
Gain on the transfer of Tower Assets | 15,525 | ||
Other gains | 2,389 | 1,968 | 1,800 |
Interest income | 15,883 | 16,005 | 15,852 |
Finance costs | (210) | (235) | (455) |
Share of profit of investments accounted for using the equity method | 9,949 | 8,636 | 8,090 |
Profit before taxation | 148,137 | 144,462 | 143,734 |
Taxation | (33,723) | (35,623) | (35,079) |
PROFIT FOR THE YEAR | 114,414 | 108,839 | 108,655 |
Item that will not be subsequently reclassified to profit or loss | |||
Share of other comprehensive loss of investments accounted for using the equity method | (16) | ||
Items that may be subsequently reclassified to profit or loss | |||
Change in value of available-for-sale financial assets | (5) | 24 | |
Exchange differences on translation of financial statements of overseas entities | (735) | 774 | 603 |
Share of other comprehensive (loss)/income of investments accounted for using the equity method | (1,038) | (1,043) | 901 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 112,636 | 108,578 | 110,159 |
Profit attributable to: | |||
Equity shareholders of the Company | 114,279 | 108,741 | 108,539 |
Non-controlling interests | 135 | 98 | 116 |
PROFIT FOR THE YEAR | 114,414 | 108,839 | 108,655 |
Total comprehensive income attributable to: | |||
Equity shareholders of the Company | 112,501 | 108,480 | 110,043 |
Non-controlling interests | 135 | 98 | 116 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | ¥ 112,636 | ¥ 108,578 | ¥ 110,159 |
Earnings per share - Basic | ¥ 5.58 | ¥ 5.31 | ¥ 5.30 |
Earnings per share - Diluted | ¥ 5.58 | ¥ 5.31 | ¥ 5.30 |
Consolidated Balance Sheets
Consolidated Balance Sheets ¥ in Millions, $ in Millions | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Non-current assets | ||
Property, plant and equipment | ¥ 648,029 | ¥ 622,356 |
Construction in progress | 78,112 | 89,853 |
Land lease prepayments and others | 28,322 | 26,720 |
Goodwill | 35,343 | 35,343 |
Other intangible assets | 1,721 | 1,708 |
Investments accounted for using the equity method | 132,499 | 124,039 |
Deferred tax assets | 33,343 | 29,767 |
Available-for-sale financial assets | 44 | 35 |
Restricted bank deposits | 6,504 | 4,528 |
Non-current assets | 963,917 | 934,349 |
Current assets | ||
Inventories | 10,222 | 8,832 |
Accounts receivable | 24,153 | 19,045 |
Other receivables | 31,201 | 25,693 |
Proceeds receivable for the transfer of Tower Assets | 57,152 | |
Prepayments and other current assets | 24,552 | 16,801 |
Amount due from ultimate holding company | 221 | 221 |
Tax recoverable | 1,519 | 1,097 |
Available-for-sale financial assets | 65,630 | 31,897 |
Restricted bank deposits | 691 | 197 |
Bank deposits | 279,371 | 335,297 |
Cash and cash equivalents | 120,636 | 90,413 |
Current assets | 558,196 | 586,645 |
Total assets | 1,522,113 | 1,520,994 |
Current liabilities | ||
Interest-bearing borrowings | 4,998 | |
Accounts payable | 233,169 | 250,838 |
Bills payable | 3,303 | 1,206 |
Deferred revenue | 85,282 | 84,289 |
Accrued expenses and other payables | 190,866 | 180,950 |
Amount due to ultimate holding company | 8,646 | 5,563 |
Current taxation | 8,716 | 8,545 |
Current liabilities | 529,982 | 536,389 |
Non-current liabilities | ||
Deferred revenue - non-current | 2,888 | 2,175 |
Deferred tax liabilities | 362 | 292 |
Non-current liabilities | 3,250 | 2,467 |
Total liabilities | 533,232 | 538,856 |
Equity | ||
Share capital | 402,130 | 402,130 |
Reserves | 583,506 | 576,891 |
Total equity attributable to equity shareholders of the Company | 985,636 | 979,021 |
Non-controlling interests | 3,245 | 3,117 |
Total equity | 988,881 | 982,138 |
Total equity and liabilities | ¥ 1,522,113 | ¥ 1,520,994 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CNY (¥) ¥ in Millions | Total | Share capital [Member] | Capital reserve [Member] | General reserve [Member] | Exchange reserve [Member] | PRC statutory reserves [Member] | Retained profits [Member] | Attributable to equity shareholders of the Company [member] | Non-controlling interests [Member] |
Beginning balance at Dec. 31, 2014 | ¥ 888,983 | ¥ 400,737 | ¥ (231,954) | ¥ 72 | ¥ (768) | ¥ 258,942 | ¥ 459,887 | ¥ 886,916 | ¥ 2,067 |
Changes in equity | |||||||||
PROFIT FOR THE YEAR | 108,655 | 108,539 | 108,539 | 116 | |||||
Currency translation differences | 603 | 603 | 603 | ||||||
Share of other comprehensive income of investments accounted for using the equity method | 901 | 901 | 901 | ||||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 110,159 | 901 | 603 | 108,539 | 110,043 | 116 | |||
Dividends approved in respect of previous year (note 34(b)(ii)) | (22,304) | (22,283) | (22,283) | (21) | |||||
Dividends declared in respect of current year (note 34(b)(i)) | (25,629) | (25,629) | (25,629) | ||||||
Shares issued under share option scheme | 1,024 | 1,393 | (369) | 1,024 | |||||
Transfer to PRC statutory reserves (note 34(c)(ii)) | 40 | 20,542 | (20,502) | 40 | |||||
Transfer between reserves upon expiry of options | (92) | 92 | |||||||
Consideration for business combination under common control | (31,967) | (31,967) | (31,967) | ||||||
Transfer of assets of entities under common control to the ultimate holding company | (808) | (808) | (808) | ||||||
Capital injection from non-controlling interests of a subsidiary | 870 | 870 | |||||||
Ending balance at Dec. 31, 2015 | 920,368 | 402,130 | (264,289) | 72 | (165) | 279,484 | 500,104 | 917,336 | 3,032 |
Changes in equity | |||||||||
PROFIT FOR THE YEAR | 108,839 | 108,741 | 108,741 | 98 | |||||
Change in value of available-for-sale financial assets | 24 | 24 | 24 | ||||||
Currency translation differences | 774 | 774 | 774 | ||||||
Share of other comprehensive income of investments accounted for using the equity method | (1,059) | (1,043) | (16) | (1,059) | |||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 108,578 | (1,019) | 774 | 108,725 | 108,480 | 98 | |||
Dividends approved in respect of previous year (note 34(b)(ii)) | (20,777) | (20,764) | (20,764) | (13) | |||||
Dividends declared in respect of current year (note 34(b)(i)) | (26,227) | (26,227) | (26,227) | ||||||
Transfer to PRC statutory reserves (note 34(c)(ii)) | 196 | 25,721 | (25,525) | 196 | |||||
Ending balance at Dec. 31, 2016 | 982,138 | 402,130 | (265,308) | 72 | 609 | 305,205 | 536,313 | 979,021 | 3,117 |
Changes in equity | |||||||||
PROFIT FOR THE YEAR | 114,414 | 114,279 | 114,279 | 135 | |||||
Change in value of available-for-sale financial assets | (5) | (5) | (5) | ||||||
Currency translation differences | (735) | (735) | (735) | ||||||
Share of other comprehensive income of investments accounted for using the equity method | (1,038) | (1,038) | (1,038) | ||||||
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 112,636 | (1,043) | (735) | 114,279 | 112,501 | 135 | |||
Dividends approved in respect of previous year (note 34(b)(ii)) | (22,211) | (22,204) | (22,204) | (7) | |||||
Dividends declared in respect of current year (note 34(b)(i)) | (83,832) | (83,832) | (83,832) | ||||||
Transfer to PRC statutory reserves (note 34(c)(ii)) | 150 | 21,958 | (21,808) | 150 | |||||
Ending balance at Dec. 31, 2017 | ¥ 988,881 | ¥ 402,130 | ¥ (266,351) | ¥ 72 | ¥ (126) | ¥ 327,163 | ¥ 522,748 | ¥ 985,636 | ¥ 3,245 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating activities | |||
Profit before taxation | ¥ 148,137 | ¥ 144,462 | ¥ 143,734 |
Adjustments for: | |||
Depreciation of property, plant and equipment | 149,780 | 138,090 | 136,832 |
Amortization of other intangible assets | 515 | 499 | 274 |
Amortization of land lease prepayments | 446 | 443 | 426 |
Gain on the transfer of Tower Assets | (15,525) | ||
Loss/(gain) on disposal of property, plant and equipment | 8 | (180) | (4) |
Write-off and impairment of property, plant and equipment | 12,593 | 7,216 | 7,614 |
Impairment loss of doubtful accounts | 3,392 | 3,734 | 4,839 |
Write-down of inventories | 297 | 282 | 272 |
Interest income | (15,883) | (16,005) | (15,852) |
Finance costs | 210 | 235 | 455 |
Dividend income from unlisted securities | (11) | ||
Share of profit of investments accounted for using the equity method | (9,949) | (8,636) | (8,090) |
Unrealized exchange (gain)/loss, net | (27) | 115 | 182 |
Gain on disposal of other financial assets | (14) | ||
Operating cash flows before changes in working capital | 289,519 | 270,255 | 255,132 |
(Increase)/decrease in inventories | (1,690) | 886 | (1,005) |
Increase in accounts receivable | (8,367) | (4,930) | (5,830) |
Decrease/(increase) in other receivables | 648 | (4,668) | (1,341) |
(Increase)/decrease in prepayments and other current assets | (6,330) | (5,071) | 276 |
Decrease/(increase) in amount due from ultimate holding company | 26 | (135) | |
Increase in deposited customer reserves | (3,047) | ||
(Decrease)/increase in accounts payable | (1,246) | 11,931 | (6,832) |
Increase in bills payable | 1,695 | 227 | 12 |
Increase in deferred revenue | 1,811 | 7,231 | 14,005 |
Increase in accrued expenses and other payables | 9,956 | 17,545 | 18,633 |
Increase/(decrease) in amount due to ultimate holding company | 24 | 10 | (32) |
Cash generated from operations | 282,973 | 293,442 | 272,883 |
Tax paid | |||
Net cash generated from operating activities | 245,514 | 253,701 | 235,089 |
Investing activities | |||
Capital expenditure | (193,015) | (188,209) | (172,243) |
Land lease prepayments and others | (590) | (1,157) | (1,450) |
Acquisition of other intangible assets | (638) | (1,399) | (212) |
Proceeds from disposal of property, plant and equipment | 287 | 564 | 7 |
Decrease/(increase) in bank deposits | 53,889 | (11,967) | 30,177 |
Decrease/(increase) in restricted bank deposits (excluding deposited customer reserves) | 578 | (135) | 4,877 |
Interest received | 15,204 | 13,862 | 15,655 |
Payment for investment accounted for using the equity method | (168) | (2,451) | (376) |
Dividends received from investments accounted for using the equity method | 847 | 1,944 | 2,842 |
Dividends received from unlisted securities | 11 | ||
Purchase of available-for-sale financial assets | (106,296) | (77,320) | (24,965) |
Maturity of available-for-sale financial assets | 75,550 | 65,881 | 8,294 |
Short-term loans granted by China Mobile Finance and payment for other investments | (14,417) | (1,650) | (5,500) |
Maturity of short-term loans granted by China Mobile Finance and other investments | 4,650 | 2,500 | |
Proceeds from disposal of other financial assets | 140 | ||
Receipt of consideration from China Tower | 57,585 | 5,000 | |
Others | 1 | 14 | |
Net cash used in investing activities | (106,533) | (194,523) | (142,743) |
Financing activities | |||
Proceeds from issuance of shares under share option scheme | 1,024 | ||
Capital injection from non-controlling shareholders of a subsidiary | 870 | ||
Interest paid | (247) | (232) | (442) |
Dividends paid to the Company's equity shareholders | (106,036) | (46,991) | (47,912) |
Dividends paid to non-controlling shareholders of subsidiaries | (7) | (13) | (21) |
Consideration for business combination under common control | (31,880) | ||
Proceeds from entrusted loans | 8,592 | ||
Repayment of entrusted loans | (18,834) | ||
Short-term deposits placed by ultimate holding company | 8,611 | 5,552 | 7,274 |
Repayment of short-term deposits placed by ultimate holding company | (5,552) | (7,274) | (4,181) |
Repayment of bonds | (5,000) | (1,000) | |
Net cash used in financing activities | (108,231) | (48,958) | (86,510) |
Net increase in cash and cash equivalents | 30,750 | 10,220 | 5,836 |
Cash and cash equivalents at beginning of year | 90,413 | 79,842 | 73,812 |
Effect of changes in foreign exchange rate | (527) | 351 | 194 |
Cash and cash equivalents at end of year | 120,636 | 90,413 | 79,842 |
Hong Kong [member] | |||
Tax paid | |||
Tax paid | (135) | (236) | (232) |
PRC [member] | |||
Tax paid | |||
Tax paid | ¥ (37,324) | ¥ (39,505) | ¥ (37,562) |
Consolidated Statements of Cas6
Consolidated Statements of Cash Flows (Parenthetical) - CNY (¥) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of cash flows [abstract] | |||
Payment to equipment suppliers | ¥ 100,584,000,000 | ¥ 103,940,000,000 | ¥ 125,210,000,000 |
General Information
General Information | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
General Information | 1 GENERAL INFORMATION China Mobile Limited (the “Company”) was incorporated in the Hong Kong Special Administrative Region (“Hong Kong”) of the People’s Republic of China (the “PRC”) on September 3, 1997. The principal activities of the Company and its subsidiaries (together referred to as the “Group”) are the provision of telecommunications and related services in Mainland China and in Hong Kong (for the purpose of preparing these consolidated financial statements, Mainland China refers to the PRC excluding Hong Kong, Macau Special Administrative Region of the PRC and Taiwan). The Company’s immediate holding company is China Mobile Hong Kong (BVI) Limited (incorporated in British Virgin Islands), and the Company’s ultimate holding company is China Mobile Communications Group Co., Ltd. (“CMCC”, formerly known as “China Mobile Communications Corporation”). The address of the Company’s registered office is 60 th Floor, The Center, 99 Queen’s Road Central, Hong Kong. The shares of the Company were listed on The Stock Exchange of Hong Kong Limited (the “HKEX”) on October 23, 1997 and the American Depositary Shares of the Company were listed on the New York Stock Exchange on October 22, 1997. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Significant Accounting Policies | 2 SIGNIFICANT ACCOUNTING POLICIES (a) Statement of compliance These financial statements have been prepared in accordance with all applicable International Financial Reporting Standards (“IFRSs”) issued by the International Accounting Standards Board (“IASB”), which collective term includes all applicable individual International Financial Reporting Standards, International Accounting Standards (“IASs”) and Interpretations issued by the IASB. A summary of the significant accounting policies adopted by the Group is set out below. (b) Basis of preparation The consolidated financial statements comprise the Group and the Group’s interest in associates and joint ventures. The measurement basis used in the preparation of the financial statements is the historical cost basis, as modified by the revaluation of available-for-sale The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements made by management in the application of IFRSs that have significant effect on the financial statements and major sources of estimation uncertainty are discussed in note 39. Acquisition of Target Assets and Businesses from China Tietong Telecommunications Corporation On November 27, 2015, China Mobile TieTong Company Limited (“CM TieTong”), a wholly-owned subsidiary of the Company, entered into an acquisition agreement with China Tietong Telecommunications Corporation (“TieTong”), a wholly-owned subsidiary of CMCC, under which CM TieTong has agreed to acquire, and TieTong has agreed to sell, certain assets, businesses and related liabilities as well as its related employees in relation to the fixed-line telecommunications operations (“Target Assets and Businesses”). The final consideration for the acquisition of the Target Assets and Businesses based on the acquisition agreement was RMB31,967,000,000. The acquisition was completed on December 31, 2015. The acquisition of the Target Assets and Businesses was considered as a business combination under common control as CM TieTong and the Target Assets and Businesses are both ultimately controlled by CMCC. Under IFRSs, the acquisition of the Target Assets and Businesses was accounted for using merger accounting in accordance with the Accounting Guideline 5 “Merger Accounting for Common Control Combinations” (“AG 5”) issued by the Hong Kong Institute of Certified Public Accountants (note 2(c)(iii)). (i) Subsidiaries Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. An investment in a subsidiary is consolidated into the consolidated financial statements from the date that control commences until the date that control ceases. Intra-group balances and transactions and any unrealized gains arising from intra-group transactions are eliminated in full in preparing the consolidated financial statements. Unrealized losses resulting from intra-group transactions are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of impairment. Accounting policies of subsidiaries would be changed where necessary in the consolidated financial statements to ensure consistency with the policies adopted by the Group. Non-controlling non-controlling Non-controlling Non-controlling non-controlling Changes in the Group’s interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire interest in that subsidiary, with a resulting gain or loss being recognized in profit or loss. Any interest retained in that former subsidiary at the date when control is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset or, when appropriate, the cost on initial recognition of an investment in an associate or a joint venture. (ii) Business combination other than under common control The Group applies the acquisition method to account for business combination of entities and businesses which are not under common control. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred. (iii) Business combination under common control Under IFRSs, the Group use merger accounting to account for the business combination of entities and businesses under common control in accordance with AG 5. The consolidated financial statements incorporate the financial statements of the combining entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the controlling party. The assets and liabilities of the combining entities or businesses are combined using the carrying book values from the controlling parties’ perspective. No amount is recognized in consideration for goodwill or excess of acquirers’ interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over the consideration at the time of common control combination, to the extent of the continuation of the controlling party’s interest. The consolidated statements of comprehensive income includes the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under the common control, where there is a shorter period, regardless of the date of the common control combination. Transaction costs, including professional fees, registration fees, costs of furnishing information to shareholders, costs or losses incurred in combining operations of the previously separate businesses, etc., incurred in relation to the common control combination that is to be accounted for by using merger accounting is recognized as an expense in the period in which they were incurred. (d) Investments accounted for using the equity method Investments accounted for using the equity method include investment in associates and joint ventures. An associate is an entity in which the Group has significant influence, but not control or joint control, over its management, including participation in the financial and operating policy decisions. The Group has applied IFRS 11 to all joint arrangements. Under IFRS 11, investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures. Under the equity method, the investment is initially recorded at cost. Thereafter, the investment is adjusted for the post-acquisition change in the Group’s share of the investee’s net assets and any impairment loss relating to the investment (see note 2(i)). The Group’s share of the post-acquisition post-tax When the Group’s share of losses exceeds its interest in the associate or joint ventures, the Group’s interest is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the investee. For this purpose, the Group’s interest in the investee is the carrying amount of the investment under the equity method together with the Group’s long-term interests that in substance form part of the Group’s net investment in the associates or joint ventures. Unrealized profits and losses resulting from transactions between the Group and its associates or joint ventures are eliminated to the extent of the Group’s interest in the investee, except where unrealized losses provide evidence of an impairment of the asset transferred, in which case they are recognized immediately in profit or loss. Accounting policies of associates or joint ventures would be changed where necessary in the consolidated financial statements to ensure consistency with the policies adopted by the Group. Gain or loss on dilution of equity interest in associates and joint ventures are recognized in profit or loss. (e) Goodwill Goodwill represents the excess of: (i) the aggregate of the fair value of the consideration transferred, the amount of any non-controlling (ii) the net fair value of the acquiree’s identifiable assets and liabilities measured as of the acquisition date. When (ii) is greater than (i), then this excess is recognized immediately in profit or loss as a gain on a bargain purchase. Goodwill is stated at cost less accumulated impairment losses. Goodwill arising on a business combination is allocated to each cash-generating unit, or groups of cash-generating units, that is expected to benefit from the synergies of the combination and is tested annually for impairment (see note 2(i)). Each unit or groups of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purpose. Goodwill is monitored at the operating segment level. On disposal of a cash-generating unit during the year, any attributable amount of purchased goodwill is included in the calculation of the gain or loss on disposal. (f) Other intangible assets Other intangible assets that are acquired by the Group are stated in the balance sheets at cost less accumulated amortization (where the estimated useful life is finite) and impairment losses (see note 2(i)). Amortization of intangible assets with finite useful lives is recorded in other operating expenses on a straight-line basis over the assets’ estimated useful lives, from the date they are available for use. Both the period and method of amortization are reviewed annually. Intangible assets are not amortized where their useful lives are assessed to be indefinite. The useful life of an intangible asset that is not being amortized is reviewed annually to determine whether events and circumstances continue to support the indefinite useful life assessment for that asset. Otherwise, the change in useful life assessment from indefinite to finite is accounted for prospectively from the date of change and in accordance with the policy for amortization of intangible assets with finite lives as set out above. (g) Property, plant and equipment Property, plant and equipment are stated in the balance sheets at cost less accumulated depreciation and impairment losses (see note 2(i)). The cost of property, plant and equipment comprises the purchase price and any directly attributable costs of bringing the asset to its working location and condition for its intended use. Subsequent expenditure relating to an item of property, plant and equipment that has already been recognized is added to the carrying amount of the asset when it is probable that future economic benefits, in excess of the originally assessed standard of performance of the existing asset, will flow to the entity. All other subsequent expenditure is recognized as an expense in the period in which it is incurred. Gains or losses arising from the retirement or disposal of an item of property, plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of retirement or disposal. Depreciation is calculated to write off the cost of items of property, plant and equipment, less their estimated residual value, if any, using the straight-line method over their estimated useful lives as follows: Buildings 8 - 30 years Telecommunications transceivers, switching centers, transmission and other network equipment 5 - 10 years Office equipment, furniture, fixtures and others 3 - 10 years Both the assets’ useful lives and residual values, if any, are reviewed annually. (h) Leased assets An arrangement, comprising a transaction or a series of transactions, is or contains a lease if the Group determines that the arrangement conveys a right to use a specific asset or assets for an agreed period of time in return for a payment or a series of payments. Such a determination is made based on an evaluation of the substance of the arrangement and is regardless of whether the arrangement takes the legal form of a lease. (i) Classification of assets leased to the Group Assets that are held by the Group under leases which transfer to the Group substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the Group are classified as operating leases. (ii) Assets acquired under finance leases Where the Group acquires the use of assets under finance leases, the amounts representing the fair value of the leased asset, or, if lower, the present value of the minimum lease payments of such assets is included in property, plant and equipment and the corresponding liabilities, net of finance charges, are recorded as obligations under finance leases. Depreciation is provided for at rates, which write off the cost of the assets over the term of the relevant lease or, where it is likely the Group will obtain ownership of the asset, the useful life of the asset as set out in note 2(g). Impairment losses are accounted for in accordance with the accounting policy as set out in note 2(i). Finance charges implicit in the lease payments are charged to profit or loss over the period of the leases so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting period. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred. (iii) Leased lines and network assets and operating lease charges Where the Group has the use of assets held under operating leases, payments made under the leases are charged to profit or loss in equal instalments over the accounting periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased asset. Lease incentives received are recognized in profit or loss as an integral part of the aggregate net lease payments made. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred. The cost of acquiring land held under an operating lease is amortized on a straight-line basis over the period of the lease term. (iv) Sale and leaseback A sale and leaseback transaction involves the sale of an asset and the leasing back of the same asset. The accounting treatment of a sale and leaseback transaction depends upon the type of lease involved. If a sale and leaseback transaction results in a finance lease, any excess of sales proceeds over the carrying amount shall not be immediately recognized as income by a seller-lessee. Instead, it shall be deferred and amortized over the lease term. If a sale and leaseback transaction results in an operating lease, and it is clear that the transaction is established at fair value, any profit or loss shall be recognized immediately. If the sale price is below fair value, any profit or loss shall be recognized immediately except that, if the loss is compensated for by future lease payments at below market price, it shall be deferred and amortized in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value shall be deferred and amortized over the period for which the asset is expected to be used. (i) Impairment of assets (i) Impairment of investments accounted for using the equity method, available-for-sale Investments accounted for using the equity method, available-for-sale – significant financial difficulty of the entity; – a breach of contract, such as a default or delinquency in interest or principal payments; – it becoming probable that the entity will enter bankruptcy or other financial reorganization; – significant changes in the technological, market, economic or legal environment that have an adverse effect on the entity; and – a significant or prolonged decline in the fair value of an investment in an equity instrument below its cost. If any such evidence exists, any impairment loss is determined and recognized as follows: – For investment accounted for using the equity method (see note 2(d)), the impairment loss is measured by comparing the recoverable amount of the investment with its carrying amount in accordance with note 2(i)(ii). The impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount in accordance with note 2(i)(ii). – For unquoted equity securities carried at cost, the impairment loss is measured as the difference between the carrying amount of the financial asset and the estimated future cash flows, discounted at the current market rate of return for a similar financial asset where the effect of discounting is material. Impairment losses for such equity securities are not reversed. – For debt instruments classified as available-for-sale available-for-sale available-for-sale – For trade and other current receivables carried at amortized cost, the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition of these assets), where the effect of discounting is material. This assessment is made collectively where these financial assets share similar risk characteristics, such as similar past due status, and have not been individually assessed as impaired. Future cash flows for financial assets which are assessed for impairment collectively are based on historical loss experience for assets with credit risk characteristics similar to the collective group. If in a subsequent period the amount of an impairment loss decreases and the decrease can be linked objectively to an event occurring after the impairment loss was recognized, the impairment loss is reversed through profit or loss. A reversal of an impairment loss shall not result in the asset’s carrying amount exceeding that which would have been determined had no impairment loss been recognized in prior years. Impairment losses are written off against the corresponding assets directly, except for impairment losses recognized in respect of debtors included within trade and other receivables, whose recovery is considered doubtful but not remote. In this case, the impairment losses for doubtful debts are recorded using an allowance account. When the Group is satisfied that recovery is remote, the amount considered irrecoverable is written off against trade debtors directly and any amounts held in the allowance account relating to that debt are reversed. Subsequent recoveries of amounts previously charged to the allowance account are reversed against the allowance account. Other changes in the allowance account and subsequent recoveries of amounts previously written off directly are recognized in profit or loss. (ii) Impairment of other assets Internal and external sources of information are reviewed at the end of each reporting period to identify indications that the following assets may be impaired or, except in the case of goodwill and other intangible assets with indefinite useful lives, an impairment loss previously recognized no longer exists or may have decreased: – property, plant and equipment; – construction in progress; – prepaid interests in leasehold land classified as being held under an operating lease; – investments in subsidiaries; – goodwill; and – other intangible assets. If any such indication exists, the asset’s recoverable amount is estimated. For goodwill and other intangible assets that have indefinite useful lives, the recoverable amount is estimated annually whether or not there is any indication of impairment. – Calculation of recoverable amount The recoverable amount of an asset is the higher of its fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax – Recognition of impairment losses An impairment loss is recognized in profit or loss if the carrying amount of an asset, or the cash-generating unit to which it belongs, exceeds its recoverable amount. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit (or group of units) and then, to reduce the carrying amount of the other assets in the unit (or group of units) on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual fair value less costs of disposal, or value in use, if determinable. – Reversals of impairment losses In respect of assets other than goodwill, an impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount. An impairment loss in respect of goodwill is not reversed. A reversal of an impairment loss is limited to the asset’s carrying amount that would have been determined had no impairment loss been recognized in prior years. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognized. (j) Construction in progress Construction in progress is stated at cost less impairment losses (see note 2(i)). Cost comprises direct costs of construction as well as interest expense and exchange differences capitalized during the periods of construction and installation. Capitalization of these costs ceases and the construction in progress is transferred to property, plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided for in respect of construction in progress until it is completed and ready for its intended use. (k) Inventories Inventories are carried at the lower of cost and net realizable value. Cost represents purchase cost of goods calculated using the weighted average cost method. Net realizable value is determined by reference to the sales proceeds of items sold in the ordinary course of business or to management’s estimates based on prevailing market conditions. When inventories are sold, the carrying amount of those inventories is recognized as cost of products sold. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realizable value, is recognized as a reduction in the amount of inventories recognized as an expense in the period in which the reversal occurs. No reversal of any write-down of inventories occurred during the years presented. (l) Accounts receivable and other receivables Accounts receivable and other receivables are initially recognized at fair value and thereafter stated at amortized cost using the effective interest method less allowance for impairment loss (see note 2(i)), except where the effect of discounting would be immaterial. (m) Available-for-sale Available-for-sale non-derivatives non-current Regular way purchases and sales of available-for-sale available-for-sale Available-for-sale When available-for-sale Interest on available-for-sale available-for-sale (n) Deferred revenue Deferred revenue consists primarily of prepaid service fees received from customers which are generally not refundable and revenue deferred for unredeemed point rewards under Customer Point Reward Program (“Reward Program”, see note 2(r)(iv)). The prepaid service fees are stated at the amount of proceeds received less the amount already recognized as revenue. (o) Interest-bearing borrowings Interest-bearing borrowings are recognized initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortized cost with any difference between the amount initially recognized and redemption value being recognized in profit or loss over the period of the borrowings, together with any interest and fees payable, using the effective interest method. (p) Accounts payable and other payables Accounts payable and other payables are initially recognized at fair value and subsequently stated at amortized cost unless the effect of discounting would be immaterial. (q) Cash and cash equivalents Cash and cash equivalents comprise bank deposits with original maturity within three months, cash at banks and in hand, demand deposits with banks, and short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value, having been within three months of maturity at acquisition. (r) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Provided it is probable that the economic benefits will flow to the Group and the revenue and costs, if applicable, can be measured reliably, revenue is recognized in profit or loss as follows: (i) revenue derived from voice and data services are recognized when the service is rendered; (ii) sales of products are recognized when the title is passed to the buyer; (iii) for offerings which include the provision of services and sale of mobile handset, the Group determines the revenue from the sale of the mobile handset by deducting the fair value of the service element from the total contract consideration; and (iv) for transactions which offer customer points reward when services are provided, the consideration allocated to the customer points reward is based on its fair value which is deducted from revenue and recorded as deferred revenue when the rewards are granted and recognized as revenue when the points are redeemed or expired. (s) Interest income Interest income is recognized as it accrues using the effective interest method. (t) Income tax Income tax for the year comprises current tax and movements in deferred tax assets and liabilities. Current tax and movements in deferred tax assets and liabilities are recognized in profit or loss except items recognized in other comprehensive income or directly in equity, in which case the relevant amounts of tax are recognized in other comprehensive income or directly in equity, respectively. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities arise from deductible and taxable temporary differences respectively, being the differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets also arise from unused tax losses and unused tax credits. Apart from certain limited exceptions, all deferred tax liabilities, and all deferred tax assets to the extent that it is probable that future taxable profits will be available against which the asset can be utilized, are recognized. Future taxable profits that may support the recognition of deferred tax assets arising from deductible temporary differences include those that will arise from the reversal of existing taxable temporary differences, provided those differences relate to the same taxation authority and the same taxable entity, and are expected to reverse either in the same period as the expected reversal of the deductible temporary difference or in periods into which a tax loss arising from the deferred tax asset can be carried back or forward. The same criteria are adopted when determining whether existing taxable temporary differences support the recognition of deferred tax assets arising from unused tax losses and credits, that is, those differences are taken into account if they relate to the same taxation authority and the same taxable entity, and are expected to reverse in a period, or periods, in which the tax loss or credit can be utilized. The limited exceptions to recognition of deferred tax assets and liabilities are those temporary differences arising from initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit (provided they are not part of a business combination), and temporary differences relating to investments in subsidiaries and associates to the extent that, in the case of taxable temporary differences, the Group controls the timing of the reversal and it is probable that the differences will not reverse in the foreseeable future, or in the case of deductible differences, unless it is probable that they will reverse in the future. The amount of deferred tax recognized is measured based on the expected manner of realization or settlement of the carrying amount of the assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax assets and liabilities are not discounted. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the related tax benefit to be utilized. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available. Current tax balances and deferred tax balances, and movements therein, are presented separately from each other and are not offset. Current tax assets are offset against current tax liabilities, and deferred tax assets against deferred tax liabilities, if the Group has the legally enforceable right to set off current tax assets against current tax liabilities and the following additional conditions are met: – in the case of current tax assets and liabilities, the Group intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously; or – in the case of deferred tax assets and liabilities, if they relate to income taxes levied by the same taxation authority on either: – the same taxable entity; or – different taxable entities, which, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered, intend to realize the current tax assets and settle the current tax liabilities on a net basis or realize and settle simultaneously. (u) Provisions and contingent liabilities Provisions are recognized for liabilities of uncertain timing or amount when the Group has a legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be estimated reliably. Where the time value of money is m |
Changes in Accounting Policies
Changes in Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
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Changes in Accounting Policies | 3 CHANGES IN ACCOUNTING POLICIES Amendments to IFRS and IAS effective for the financial year beginning on January 1, 2017 do not have a material impact on the Group. The Group did not apply any other amendments, new standards or interpretation that is not yet effective for the current accounting year (see note 40). |
Operating Revenue
Operating Revenue | 12 Months Ended |
Dec. 31, 2017 | |
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Operating Revenue | 2017 2016 2015 Million Million Million Revenue from telecommunications services Voice services 156,918 209,949 261,896 Data services 493,350 394,937 303,425 Others 18,083 18,536 18,768 668,351 623,422 584,089 Revenue from sales of products and others 72,163 84,999 84,246 740,514 708,421 668,335 |
Employee Benefit and Related Ex
Employee Benefit and Related Expenses | 12 Months Ended |
Dec. 31, 2017 | |
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Employee Benefit and Related Expenses | 5 EMPLOYEE BENEFIT AND RELATED EXPENSES 2017 2016 2015 Million Million Million Salaries, wages, labor service expenses and other benefits 74,427 69,546 67,622 Retirement costs: contributions to defined contribution retirement plans 11,086 9,917 7,183 85,513 79,463 74,805 |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2017 | |
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Other Operating Expenses | 2017 2016 2015 Note Million Million Million Maintenance 55,737 53,852 53,991 Impairment loss of doubtful accounts 3,392 3,734 4,839 Write-down of inventories 297 282 272 Amortization of other intangible assets 515 499 274 Operating lease charges - land and buildings 11,453 11,628 13,447 - others (i) 3,698 4,248 6,186 Loss/(gain) on disposal of property, plant and equipment 8 (180 ) (4 ) Write-off 12,593 7,216 7,614 Power and utilities expenses 30,518 29,461 27,134 Operation support and research and development expenses (ii) 38,016 32,296 27,209 Auditors’ remuneration - audit services (iii) 107 103 97 - tax services 3 1 1 - other services 12 9 4 Others (iv) 25,894 23,924 21,229 182,243 167,073 162,293 Note: (i) Other operating lease charges represent the operating lease charges for motor vehicles, computer and other office equipment. (ii) Operation support and research and development expenses mainly include support expenses for new business operation, research and development cost for new technology evolution, amortization of testing equipment, and other related costs. (iii) Audit services include reporting on the Group’s internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of the United States of America with the service fee amount of RMB22,000,000 (2016: RMB22,000,000; 2015: RMB20,000,000). (iv) Others consist of administrative expenses, property management expenses, taxes and surcharges, and other miscellaneous expenses. |
Proceeds Receivable for the Tra
Proceeds Receivable for the Transfer of Tower Assets | 12 Months Ended |
Dec. 31, 2017 | |
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Proceeds Receivable for the Transfer of Tower Assets | On October 14, 2015, China Mobile Communication Co., Ltd. (“CMC”), a wholly-owned subsidiary of the Company, jointly with China United Network Communications Corporation Limited (“China Unicom”), China Telecom Corporation Limited (“China Telecom”), and China Reform Holdings Corporation Ltd. (“CRHC”), entered into an agreement with China Tower Corporation Limited (“China Tower”), pursuant to which China Tower (i) purchased telecommunications towers and related assets (“Tower Assets”) from CMC, China Unicom and China Telecom and (ii) issued new equity shares to CRHC. The consideration of Tower Assets was determined based on the appraised value and subject to adjustment in accordance with the terms of the transaction agreement by each party as of the date of delivery. China Tower agreed to settle the consideration by way of issuing its equity shares to each party, plus cash consideration equalling to the excess of total consideration over the amount settled by equity shares. Upon completion of the above transactions, China Tower would be owned by CMC, China Unicom, China Telecom and CRHC with their respective shares of equity interests of 38.0%, 28.1%, 27.9% and 6.0%. On October 31, 2015, CMC completed the transfer of Tower Assets to China Tower. In return, China Tower issued equity shares to CMC and shall pay CMC the remaining cash consideration. The first payment of RMB5,000,000,000 has been made in February 2016 and the remaining balance of cash consideration was settled in December 2017. The gain arising from the transfer of CMC’s Tower Assets, which has eliminated unrealized profits due to the Group’s interest in China Tower, is recorded as “Gain on the transfer of Tower Assets” in the consolidated statements of comprehensive income for the year ended December 31, 2015. |
Other Gains
Other Gains | 12 Months Ended |
Dec. 31, 2017 | |
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Other Gains | 2017 2016 2015 Million Million Million Penalty and compensation income 1,118 764 658 Dividend income from unlisted securities — — 11 Others 1,271 1,204 1,131 2,389 1,968 1,800 |
Finance Costs
Finance Costs | 12 Months Ended |
Dec. 31, 2017 | |
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Finance Costs | 9 FINANCE COSTS 2017 2016 2015 Million Million Million Interest on bonds 187 228 257 Interest on bank deposits received and entrusted loans (note 35(a)) 21 7 194 Others 2 — 4 210 235 455 |
Directors' Remuneration
Directors' Remuneration | 12 Months Ended |
Dec. 31, 2017 | |
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Directors' Remuneration | 10 DIRECTORS’ REMUNERATION Directors’ remuneration during 2017 is as follows: Directors’ Salaries, Contributions 2017 ’000 ’000 ’000 ’000 Executive directors (Expressed in RMB) SHANG Bing — 781 123 904 LI Yue (Chief Executive Officer) — 781 151 932 LIU Aili* — 592 110 702 SHA Yuejia — 702 148 850 DONG Xin** — 695 145 840 — 3,551 677 4,228 Independent non-executive directors (Expressed in Hong Kong WONG Kwong Shing, Frank 470 — — 470 CHENG Mo Chi, Moses 460 — — 460 CHOW Man Yiu, Paul 455 — — 455 YIU Kin Wah, Stephen*** 255 — — 255 1,640 — — 1,640 Directors’ remuneration during 2016 is as follows: Directors’ Salaries, Contributions 2016 ’000 ’000 ’000 ’000 Executive directors (Expressed in RMB) SHANG Bing # — 498 122 620 LI Yue (Chief Executive Officer) — 717 147 864 LIU Aili — 662 141 803 XUE Taohai ## — 646 143 789 SHA Yuejia — 662 141 803 — 3,185 694 3,879 Independent non-executive directors (Expressed in Hong Kong LO Ka Shui ### 130 — — 130 WONG Kwong Shing, Frank 470 — — 470 CHENG Mo Chi, Moses 452 — — 452 CHOW Man Yiu, Paul 405 — — 405 1,457 — — 1,457 Directors’ remuneration during 2015 is as follows: Directors’ Salaries, Contributions 2015 ’000 ’000 ’000 ’000 Executive directors (Expressed in RMB) SHANG Bing 1 — 107 30 137 XI Guohua 2 — 377 113 490 LI Yue (Chief Executive Officer) — 437 138 575 LIU Aili — 365 133 498 XUE Taohai — 387 135 522 HUANG Wenlin 3 — 139 21 160 SHA Yuejia — 365 133 498 — 2,177 703 2,880 Independent non-executive directors (Expressed in Hong Kong LO Ka Shui 325 — — 325 WONG Kwong Shing, Frank 470 — — 470 CHENG Mo Chi, Moses 440 — — 440 CHOW Man Yiu, Paul 330 — — 330 1,565 — — 1,565 * Mr. LIU Aili resigned from the position as executive director of the Company with effect from September 29, 2017. ** Mr. DONG Xin was appointed as an executive director of the Company with effect from March 23, 2017. *** Mr. Stephen YIU Kin Wah was appointed as an independent non-executive # The unpaid portion of executive directors’ performance related bonuses for 2015 was included in executive directors’ salaries, allowances and bonuses in 2016. Mr. SHANG Bing has been serving the Company since September 2015. ## Mr. XUE Taohai resigned from the position as executive director of the Company with effect from March 23, 2017. ### Mr. LO Ka Shui resigned from the position as independent non-executive 1 Mr. SHANG Bing was appointed as an executive director and chairman of the Company with effect from September 10, 2015. 2 Mr. XI Guohua resigned from the position as executive director and chairman of the Company with effect from August 24, 2015. 3 Madam HUANG Wenlin resigned from the position as executive director of the Company with effect from March 19, 2015. In 2015, 2016 and 2017, executive directors of the Company voluntarily waived their directors’ fees. The unpaid portion of executive directors’ performance related bonuses for 2017 will be determined based on the evaluation conducted in 2018, and the additional bonuses related to their term of service will be determined based on the evaluation conducted upon the completion of three-year evaluation period. |
Individuals with Highest Emolum
Individuals with Highest Emoluments | 12 Months Ended |
Dec. 31, 2017 | |
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Individuals with Highest Emoluments | 11 INDIVIDUALS WITH HIGHEST EMOLUMENTS The emoluments payable to the five individuals with highest emoluments during 2015, 2016 and 2017 are as follows: 2017 2016 2015 ’000 ’000 ’000 Salaries, allowances and benefits in kind 5,259 5,602 8,135 Performance related bonuses 4,014 2,029 1,814 Retirement scheme contributions 158 157 148 9,431 7,788 10,097 The emoluments fell within the following bands: 2017 2016 2015 Number of Number of Number of Emolument bands 1,500,001 - 2,000,000 3 5 4 2,000,001 - 2,500,000 2 — 1 |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2017 | |
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Taxation | 12 TAXATION (a) Taxation in the consolidated statements of comprehensive income represents: 2017 2016 2015 Note Million Million Million Current tax Provision for Hong Kong profits tax on the estimated assessable profits for the year (i ) 260 193 164 Provision for the PRC enterprise income tax on the estimated taxable profits for the year (ii ) 36,945 39,709 39,588 37,205 39,902 39,752 Deferred tax Origination and reversal of temporary differences (note 20) (iii ) (3,482 ) (4,279 ) (4,673 ) 33,723 35,623 35,079 Note: (i) The provision for Hong Kong profits tax is calculated at 16.5% (2016: 16.5%; 2015: 16.5%) of the estimated assessable profits for the year ended December 31, 2017. (ii) The provision for the PRC enterprise income tax is based on the statutory tax rate of 25% (2016: 25%; 2015: 25%) on the estimated taxable profits determined in accordance with the relevant income tax rules and regulations of the PRC for the year ended December 31, 2017. Certain subsidiaries of the Company enjoy the preferential tax rate of 15% (2016: 15%; 2015: 15%). (iii) Deferred taxes of the Group are recognized based on tax rates that are expected to apply to the periods when the temporary differences are realized or settled. (iv) On April 22, 2009, SAT issued the “Notice regarding Matters on Determination of Tax Residence Status of Chinese-controlled Offshore Incorporated Enterprises under Rules of Effective Management” (“2009 Notice”). The Company is qualified as a PRC offshore-registered resident enterprise for purposes of the 2009 Notice. In accordance with the 2009 Notice and the PRC enterprise income tax law, the dividend income of the Company from its subsidiaries in the PRC is exempted from PRC enterprise income tax. (b) Reconciliation between income tax expense and accounting profit at applicable tax rates: 2017 2016 2015 Million Million Million Profit before taxation 148,137 144,462 143,734 Notional tax on profit before tax, calculated at the PRC’s statutory tax rate of 25% (Note) 37,034 36,116 35,934 Tax effect of non-taxable - Share of profit of investments accounted for using the equity method (2,487 ) (2,159 ) (2,023 ) - Interest income (41 ) (22 ) (31 ) Tax effect of non-deductible 772 798 986 Tax effect of non-deductible 70 76 68 Rate differential of certain PRC operations (note 12(a)(ii)) (2,317 ) (1,580 ) (1,576 ) Rate differential on Hong Kong operations (note 12(a)(i)) (182 ) (133 ) (122 ) Tax effect of deductible temporary difference for which no deferred tax asset was recognized 154 1,562 98 Tax effect of deductible tax loss for which no deferred tax asset was recognized 818 1,349 356 Tax effect on the eliminated unrealized profits related to the transfer of Tower Assets — — 1,547 Others (98 ) (384 ) (158 ) Taxation 33,723 35,623 35,079 Note: The PRC’s statutory tax rate is adopted as the majority of the Group’s operations are subject to this rate. (c) The tax credited/(charged) relating to components of other comprehensive income is as follows: 2017 2016 2015 Before Tax After Before Tax After Before Tax After Million Million Million Million Million Million Million Million Million Change in value of available-for-sale (7 ) 2 (5 ) 32 (8 ) 24 — — — Currency translation differences (735 ) — (735 ) 774 — 774 603 — 603 Share of other comprehensive (loss)/income of investments accounted for using the equity method (1,038 ) — (1,038 ) (1,059 ) — (1,059 ) 901 — 901 Other comprehensive (loss)/income (1,780 ) 2 (1,778 ) (253 ) (8 ) (261 ) 1,504 — 1,504 Current tax — — — Deferred tax 2 (8 ) — 2 (8 ) — |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
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Earnings Per Share | 13 EARNINGS PER SHARE (a) Basic earnings per share The calculation of basic earnings per share for the year is based on the profit attributable to equity shareholders of the Company of RMB114,279,000,000 (2016: RMB108,741,000,000; 2015: RMB108,539,000,000) and the weighted average number of 20,475,482,897 shares (2016: 20,475,482,897 shares; 2015: 20,473,119,088 shares) in issue during the year, calculated as follows: Weighted average number of shares 2017 2016 2015 Number of shares Number of shares Number of shares Issued shares as of January 1 20,475,482,897 20,475,482,897 20,438,426,514 Effect of share options exercised — — 34,692,574 Weighted average number of shares in issue during the year 20,475,482,897 20,475,482,897 20,473,119,088 (b) Diluted earnings per share The calculation of diluted earnings per share for the year is based on the profit attributable to equity shareholders of the Company of RMB114,279,000,000 (2016: RMB108,741,000,000; 2015: RMB108,539,000,000) and the weighted average number of 20,475,482,897 shares (2016: 20,475,482,897 shares; 2015: 20,479,705,763 shares), calculated as follows: Weighted average number of shares (diluted) 2017 2016 2015 Number of shares Number of shares Number of shares Weighted average number of shares in issue during the year 20,475,482,897 20,475,482,897 20,473,119,088 Dilutive equivalent shares arising from share options — — 6,586,675 Weighted average number of shares (diluted) during the year 20,475,482,897 20,475,482,897 20,479,705,763 In 2016 and 2017, there was no dilutive potential ordinary shares of the Company outstanding (note 33). Therefore, there was no dilution impact on weighted average number of shares (diluted) of the Company. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
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Property, Plant and Equipment | 14 PROPERTY, PLANT AND EQUIPMENT Buildings Telecommunications Office Total Million Million Million Million Cost: As of January 1, 2016 129,460 1,174,803 22,784 1,327,047 Transferred from construction in progress 8,476 172,502 2,267 183,245 Other additions 214 2,367 287 2,868 Disposals (1,048 ) (5,017 ) (138 ) (6,203 ) Assets written-off (308 ) (58,650 ) (2,210 ) (61,168 ) Exchange differences 129 262 1 392 As of December 31, 2016 136,923 1,286,267 22,991 1,446,181 As of January 1, 2017 136,923 1,286,267 22,991 1,446,181 Transferred from construction in progress 10,577 174,250 833 185,660 Other additions 820 962 1,193 2,975 Disposals (72 ) (181 ) (109 ) (362 ) Assets written-off (331 ) (38,971 ) (1,117 ) (40,419 ) Exchange differences (141 ) (359 ) (4 ) (504 ) As of December 31, 2017 147,776 1,421,968 23,787 1,593,531 Accumulated depreciation and impairment: As of January 1, 2016 36,825 689,564 15,027 741,416 Charge for the year 5,310 129,915 2,945 138,170 Written back on disposals (446 ) (2,336 ) (68 ) (2,850 ) Assets written-off (203 ) (51,108 ) (1,805 ) (53,116 ) Exchange differences 16 186 3 205 As of December 31, 2016 41,502 766,221 16,102 823,825 As of January 1, 2017 41,502 766,221 16,102 823,825 Charge for the year 5,695 143,026 1,227 149,948 Written back on disposals (58 ) (45 ) (105 ) (208 ) Assets written-off (299 ) (26,465 ) (1,068 ) (27,832 ) Exchange differences (20 ) (208 ) (3 ) (231 ) As of December 31, 2017 46,820 882,529 16,153 945,502 Net book value: As of December 31, 2017 100,956 539,439 7,634 648,029 As of December 31, 2016 95,421 520,046 6,889 622,356 As a result of the optimization of 4G network coverage, the continuing impact of the mobile Internet substitution effect, and particularly, the significant progress of Voice over LTE (“VoLTE”) business services this year, the usage and utilization of the Group’s 2G network has been decreasing rapidly. Meanwhile, due to the further decline of voice tariff, the revenue from voice services dropped even faster and the management anticipates more pressure on the profitability of 2G wireless and related assets (“2G Network Assets”). Therefore, management performed impairment test on the 2G Network Assets as of December 31, 2017. For the impairment testing purpose, the recoverable amounts (note 2(i)(ii)) of 2G Network Assets was determined based on value-in-use pre-tax |
Construction in Progress
Construction in Progress | 12 Months Ended |
Dec. 31, 2017 | |
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Construction in Progress | 15 CONSTRUCTION IN PROGRESS 2017 2016 Million Million As of January 1 89,853 88,012 Additions 173,919 185,086 Transferred to property, plant and equipment (185,660 ) (183,245 ) As of December 31 78,112 89,853 As of December 31, 2017, construction in progress primarily comprises expenditure incurred on the network expansion projects but not yet completed. |
Land Lease Prepayments and Othe
Land Lease Prepayments and Others | 12 Months Ended |
Dec. 31, 2017 | |
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Land Lease Prepayments and Others | 16 LAND LEASE PREPAYMENTS AND OTHERS For the year ended December 31, 2017, the amortization of land lease prepayments expensed in the profit or loss amounted to approximately RMB446,000,000 (2016: approximately RMB443,000,000; 2015: approximately RMB426,000,000). |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
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Goodwill | 17 GOODWILL 2017 2016 Million Million Cost and carrying amount: As of January 1 and December 31 35,343 35,343 Impairment tests for goodwill As set out in IAS 36 “Impairment of Assets”, a cash-generating unit is the smallest identifiable group of assets that generate cash inflows from continuing use that are largely independent of the cash flows from other assets or groups of assets. For the purpose of impairment tests of goodwill, goodwill is allocated to groups of cash-generating units (being subsidiaries acquired in each acquisition). Such groups of cash-generating units represent the lowest level within the Group for which the goodwill is monitored for internal management purposes. As of December 31, 2017, the goodwill of RMB35,300,000,000 is attributable to the cash-generating unit in relation to the operation in Mainland China which management currently monitors. The recoverable amount of the cash-generating unit is determined based on the VIU calculations by using the discounted cash flow method. This method considers the pre-tax pre-tax |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
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Subsidiaries | 18 SUBSIDIARIES The following list contains only the particulars of subsidiaries as of December 31, 2017, which principally affected the results, assets or liabilities of the Group. The class of shares held is ordinary unless otherwise stated. Place of Proportion of incorporation/ Particulars ownership interest establishment of issued and Held by the Held by a Name of company* and operation paid up capital Company subsidiary Principal activity China Mobile Communication (BVI) Limited British Virgin Islands(“BVI”) HK$1 100% — Investment holding company CMC** Mainland China RMB1,641,848,326 — 100% Network and business coordination center China Mobile Group Guangdong Co., Ltd. (“Guangdong Mobile”) Mainland China RMB5,594,840,700 — 100% Telecommunications operator China Mobile Group Zhejiang Co., Ltd. Mainland China RMB2,117,790,000 — 100% Telecommunications operator China Mobile Group Jiangsu Co., Ltd. Mainland China RMB2,800,000,000 — 100% Telecommunications operator China Mobile Group Fujian Co., Ltd. Mainland China RMB5,247,480,000 — 100% Telecommunications operator China Mobile Group Henan Co., Ltd. Mainland China RMB4,367,733,641 — 100% Telecommunications operator China Mobile Group Hainan Co., Ltd. Mainland China RMB643,000,000 — 100% Telecommunications operator China Mobile Group Beijing Co., Ltd. Mainland China RMB6,124,696,053 — 100% Telecommunications operator China Mobile Group Shanghai Co., Ltd. Mainland China RMB6,038,667,706 — 100% Telecommunications operator China Mobile Group Tianjin Co., Ltd. Mainland China RMB2,151,035,483 — 100% Telecommunications operator China Mobile Group Hebei Co., Ltd. Mainland China RMB4,314,668,600 — 100% Telecommunications operator China Mobile Group Liaoning Co., Ltd. Mainland China RMB5,140,126,680 — 100% Telecommunications operator China Mobile Group Shandong Co., Ltd. Mainland China RMB6,341,851,146 — 100% Telecommunications operator China Mobile Group Guangxi Co., Ltd. Mainland China RMB2,340,750,100 — 100% Telecommunications operator China Mobile Group Anhui Co., Ltd. Mainland China RMB4,099,495,494 — 100% Telecommunications operator China Mobile Group Jiangxi Co., Ltd. Mainland China RMB2,932,824,234 — 100% Telecommunications operator China Mobile Group Chongqing Co., Ltd. Mainland China RMB3,029,645,401 — 100% Telecommunications operator Place of Proportion of incorporation/ Particulars ownership interest establishment of issued and Held by the Held by a Name of company* and operation paid up capital Company subsidiary Principal activity China Mobile Group Sichuan Co., Ltd. Mainland China RMB7,483,625,572 — 100% Telecommunications operator China Mobile Group Hubei Co., Ltd. Mainland China RMB3,961,279,556 — 100% Telecommunications operator China Mobile Group Hunan Co., Ltd. Mainland China RMB4,015,668,593 — 100% Telecommunications operator China Mobile Group Shaanxi Co., Ltd. Mainland China RMB3,171,267,431 — 100% Telecommunications operator China Mobile Group Shanxi Co., Ltd. Mainland China RMB2,773,448,313 — 100% Telecommunications operator China Mobile Group Neimenggu Co., Ltd. Mainland China RMB2,862,621,870 — 100% Telecommunications operator China Mobile Group Jilin Co., Ltd. Mainland China RMB3,277,579,314 — 100% Telecommunications operator China Mobile Group Heilongjiang Co., Ltd. Mainland China RMB4,500,508,035 — 100% Telecommunications operator China Mobile Group Guizhou Co., Ltd. Mainland China RMB2,541,981,749 — 100% Telecommunications operator China Mobile Group Yunnan Co., Ltd. Mainland China RMB4,137,130,733 — 100% Telecommunications operator China Mobile Group Xizang Co., Ltd. Mainland China RMB848,643,686 — 100% Telecommunications operator China Mobile Group Gansu Co., Ltd. Mainland China RMB1,702,599,589 — 100% Telecommunications operator China Mobile Group Qinghai Co., Ltd. Mainland China RMB902,564,911 — 100% Telecommunications operator China Mobile Group Ningxia Co., Ltd. Mainland China RMB740,447,232 — 100% Telecommunications operator China Mobile Group Xinjiang Co., Ltd. Mainland China RMB2,581,599,600 — 100% Telecommunications operator China Mobile Group Design Institute Co., Ltd. Mainland China RMB160,232,500 — 100% Provision of telecommunications network planning design and consulting services Place of Proportion of incorporation/ Particulars ownership interest establishment and of issued and Held by the Held by a Name of company* operation paid up capital Company subsidiary Principal activity China Mobile Holding Company Limited** Mainland China US$30,000,000 100% — Investment holding company China Mobile (Shenzhen) Limited** Mainland China US$7,633,000 — 100% Provision of roaming clearance services Aspire Holdings Limited Cayman Islands HK$93,964,583 66.41% — Investment holding company Aspire (BVI) Limited # BVI US$1,000 — 100% Investment holding company Aspire Technologies (Shenzhen) Limited** # Mainland China US$10,000,000 — 100% Technology platform development and maintenance Aspire Information Network (Shenzhen) Limited** # Mainland China US$5,000,000 — 100% Provision of mobile data solutions, system integration and development Aspire Information Technologies (Beijing) Limited** # Mainland China US$5,000,000 — 100% Technology platform development and maintenance Fujian FUNO Mobile Communication Technology Company Limited*** Mainland China US$3,800,000 — 51% Network construction and maintenance, network planning and optimizing, training and communication services Advanced Roaming & Clearing House Limited BVI US$2 100% — Provision of roaming clearance services Fit Best Limited BVI US$1 100% — Investment holding company China Mobile Hong Kong Company Limited Hong Kong HK$951,046,930 — 100% Provision of telecommunications and related services China Mobile International Holdings Limited Hong Kong HK$16,495,670,000 100% — Investment holding company China Mobile International Limited Hong Kong HK$6,400,000,000 — 100% Provision of voice and roaming clearance services, Internet services and value-added services China Mobile Group Device Co., Ltd. Mainland China RMB6,200,000,000 — 99.97% Provision of electronic communication products design and sale of related products Place of Proportion of incorporation/ Particulars ownership interest establishment and of issued and Held by the Held by a Name of company* operation paid up capital Company subsidiary Principal activity China Mobile Group Finance Co., Ltd. (“China Mobile Finance”) Mainland China RMB11,627,783,669 — 92% Provision of non-banking China Mobile IoT Company Limited Mainland China RMB1,000,000,000 — 100% Provision of network services China Mobile (Suzhou) Software Technology Co., Ltd. Mainland China RMB980,000,000 — 100% Provision of computer hardware and software research and development services China Mobile (Hangzhou) Information Technology Co., Ltd. Mainland China RMB1,150,000,000 — 100% Provision of computer hardware and software research and development services China Mobile Online Services Co., Ltd. Mainland China RMB50,000,000 — 100% Provision of call center services MIGU Company Limited Mainland China RMB7,000,000,000 — 100% Provision of Mobile Internet digital content services CM TieTong Mainland China RMB31,880,000,000 — 100% Provision of telecommunications services China Mobile Internet Company Limited Mainland China RMB2,000,000,000 — 100% Provision of value added telecommunications services China Mobile Investment Holdings Company Limited Mainland China RMB330,000,000 — 100% Investment holding company China Mobile Quantong System Integration Co., Ltd. Mainland China RMB550,000,000 — 100% Provision of computer system integration, construction, maintenance and related technology development services * The nature of all the legal entities established in the Mainland China is limited liability company. ** Companies registered as wholly owned foreign enterprises in the Mainland China. *** Company registered as a sino-foreign equity joint venture in the Mainland China. # Effective interest held by the Group is 66.41%. |
Investments Accounted for Using
Investments Accounted for Using the Equity Method | 12 Months Ended |
Dec. 31, 2017 | |
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Investments Accounted for Using the Equity Method | 19 INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD The amounts recognized in the consolidated balance sheets are as follows: As of As of December 31, December 31, Million Million Associates 131,636 123,255 Joint ventures 863 784 132,499 124,039 Details of major associates are as follows: Name of associate Place of incorporation/ establishment and operation Proportion of ownership interest held by the Company or its subsidiary Principal Activity Unlisted company China Tower PRC 38% Construction, maintenance and operation of telecommunications towers Listed company Shanghai Pudong Development Bank Co., Ltd. (“SPD Bank”) (Note) PRC 18% Provision of banking services IFLYTEK Co., Ltd. (“IFLYTEK”) PRC 13% Provision of Chinese speech and technology products and services True Corporation Public Company Limited (“True Corporation”) Thailand 18% Provision of Note: The Group’s shareholding percentage in SPD Bank has been diluted from 18.98% to 18.18% as a result from SPD Bank’s issuance of new ordinary shares to other companies in 2017. Up to the release day of these financial statements, SPD Bank has not yet announced its audited annual results for the year ended December 31, 2017, therefore, the Group has recognized its share of SPD Bank’s comprehensive income for the year 2017 based on the financial information which was already released by SPD Bank and publicly disclosed, with some information such as total liabilities and total equity not provided. (i) Summary financial information on principal associates: SPD Bank As of December 31 2017 2016 Million Million Total assets 6,135,061 5,857,263 Total liabilities — 5,484,329 Total equity — 372,934 Total equity attributable to ordinary equity shareholders 395,466 338,027 Percentage of ownership of the Group 18% 19% Total equity attributable to the Group 71,896 64,158 The impact of fair value adjustments at the time of acquisition and goodwill 6,663 7,780 Interest in associates 78,559 71,938 IFLYTEK True Corporation China Tower As of December 31 As of December 31 As of December 31 2017 2016 2017 2016 2017 2016 Million Million Million Million Million Million Total current assets 7,329 5,533 23,566 23,135 30,517 39,565 Total non-current 6,151 4,881 69,511 61,532 292,125 272,103 Total current liabilities 4,428 2,521 39,589 30,333 150,438 171,568 Total non-current 1,042 674 26,643 29,492 44,710 14,548 Total equity 8,010 7,219 26,845 24,842 127,494 125,552 Total equity attributable to equity shareholders 7,759 7,061 26,711 24,714 127,494 125,552 Percentage of ownership of the Group 13% 14% 18% 18% 38% 38% Total equity attributable to the Group 1,047 962 4,808 4,449 48,448 47,710 The impact of fair value adjustments at the time of acquisition and goodwill 805 814 2,664 2,847 — — Elimination of unrealized profits resulting from the transfer of Tower Assets and its realization — — — — (4,856 ) (5,474 ) Interest in associates 1,852 1,776 7,472 7,296 43,592 42,236 SPD Bank IFLYTEK 2017 2016 2015 2017 2016 2015 Million Million Million Million Million Million Revenue 168,619 160,792 146,550 5,458 3,320 2,501 Profit before taxation 69,785 69,975 66,877 584 561 465 Profit attributable to ordinary equity shareholders for the year 52,515 51,374 49,704 428 484 425 Other comprehensive (loss)/income (5,568 ) (5,480 ) 4,458 — — — Total comprehensive income 46,947 45,894 54,162 428 484 425 Dividends received from associates 821 1,921 2,824 18 18 18 True Corporation China Tower 2017 2016 2015 2017 2016 2015 Million Million Million Million Million Million Revenue 28,262 23,520 21,416 68,665 54,474 10,325 Profit/(loss) before taxation 726 (437 ) 839 2,685 (776 ) (3,864 ) Profit/(loss) for the year 465 (531 ) 795 1,943 (575 ) (2,944 ) Other comprehensive income/(loss) 32 (87 ) — — — — Total comprehensive income/(loss) 497 (618 ) 795 1,943 (575 ) (2,944 ) Dividends received from associates — 5 — — — — (ii) The fair values of the interests in SPD Bank, IFLYTEK and True Corporation are based on quoted market prices (level 1: quoted price (unadjusted) in active markets) at the balance sheet date without any deduction for transaction costs and disclosed as follows: As of December 31, As of December 31, Carrying Fair Carrying Fair Million Million Million Million SPD Bank 78,559 67,166 71,938 66,522 IFLYTEK 1,852 10,598 1,776 4,854 True Corporation 7,472 7,450 7,296 8,297 Interest in listed associates 87,883 85,214 81,010 79,673 (iii) The Group assesses at the end of each reporting period whether there is objective evidence that interest in associates are impaired. As of December 31, 2017, the fair value of investment in SPD Bank was RMB67,166,000,000 (2016: RMB66,522,000,000), below its carrying amount by approximately 14.5% (2016: approximately 7.5%). Management performed impairment test accordingly considering such impairment indicator. The recoverable amount of the interest in SPD Bank is determined by VIU. The calculation used pre-tax As of December 31, 2017, the fair value of investment in True Corporation was RMB7,450,000,000 (2016: RMB8,297,000,000), below its carrying amount by approximately 0.3% (2016: exceeding by approximately 13.7%). Since the decline in the fair value of interest in True Corporation is not significant or prolonged, there was no objective evidence of impairment as of December 31, 2017. The management has determined that there was no impairment indicator of the Group’s interests in other associates as of December 31, 2016 and 2017. Details of major joint venture are as follows: In 2015, CMC together with State Development & Investment Corporation and China Mobile State Development & Investment Management Company Limited (45% of its registered capital is owned by CMCC), established China Mobile Innovative Business Fund (Shenzhen) Partnership (Limited Partnership) (the “Fund”). The Group recognized the investment as interest in a joint venture. CMC committed to invest RMB1,500,000,000 in cash, which represents 50% equity interest in the Fund. As of December 31, 2017, CMC has contributed RMB759,000,000 (2016: RMB721,000,000) to the Fund and has a commitment to invest RMB741,000,000 (2016: RMB779,000,000) to the Fund upon the request by the Fund. There are no contingent liabilities relating to the Group’s interest in the joint venture. |
Deferred Tax Assets and Liabili
Deferred Tax Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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Deferred Tax Assets and Liabilities | 20 DEFERRED TAX ASSETS AND LIABILITIES The analysis of deferred tax assets and liabilities are as follows: As of As of Million Million Deferred tax assets: - Deferred tax asset to be recovered after 12 months 8,236 6,607 - Deferred tax asset to be recovered within 12 months 25,107 23,160 33,343 29,767 Deferred tax liabilities: - Deferred tax liabilities to be settled after 12 months (258 ) (248 ) - Deferred tax liabilities to be settled within 12 months (104 ) (44 ) (362 ) (292 ) Deferred tax assets and liabilities recognized and the movements during 2017 As of (Charged)/ profit or loss Credited to Exchange As of Million Million Million Million Million Deferred tax assets arising from: Write-down for obsolete inventories 175 (55 ) — — 120 Write-off 4,538 2,544 — — 7,082 Accrued operating expenses 17,969 965 — — 18,934 Deferred revenue from Reward Program 5,796 147 — — 5,943 Impairment loss for doubtful accounts 1,297 (27 ) — — 1,270 Change in value of available-for-sale (8 ) — 2 — (6 ) 29,767 3,574 2 — 33,343 Deferred tax liabilities arising from: Depreciation allowance in excess of related depreciation (292 ) (92 ) — 22 (362 ) Total 29,475 3,482 2 22 32,981 Deferred tax assets and liabilities recognized and the movements during 2016 As of (Charged)/ credited to Charged to other Exchange As of Million Million Million Million Million Deferred tax assets arising from: Write-down for obsolete inventories 217 (42 ) — — 175 Write-off and impairment of certain network 4,152 386 — — 4,538 Accrued operating expenses 14,125 3,844 — — 17,969 Deferred revenue from Reward Program 5,350 446 — — 5,796 Impairment loss for doubtful accounts 1,579 (282 ) — — 1,297 Change in value of available-for-sale financial — — (8 ) — (8 ) 25,423 4,352 (8 ) — 29,767 Deferred tax liabilities arising from: Depreciation allowance in excess of related depreciation (203 ) (73 ) — (16 ) (292 ) Total 25,220 4,279 (8 ) (16 ) 29,475 Deferred tax assets are recognized for deductible temporary differences and tax losses carry-forwards only to the extent that the realization of the related tax benefit through future taxable profits is probable. Certain subsidiaries of the Group did not recognize deferred tax assets of RMB1,716,000,000 (2016: RMB1,562,000,000) and RMB2,079,000,000 (2016: RMB1,349,000,000) in respect of deductible temporary differences and tax losses amounting to RMB6,885,000,000 (2016: RMB6,249,000,000) and RMB8,713,000,000 (2016: RMB5,504,000,000) respectively that can be carried forward against future taxable income as of December 31, 2017. The deductible tax losses are allowed to be carried forward in next five years against the future taxable profits. |
Available-for-sale Financial As
Available-for-sale Financial Assets | 12 Months Ended |
Dec. 31, 2017 | |
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Available-for-sale Financial Assets | 21 AVAILABLE-FOR-SALE As of As of Note Million Million Equity investments (i) 44 35 Wealth management products issued by banks (ii) 65,630 31,897 65,674 31,932 Less: current portion (65,630 ) (31,897 ) Non-current 44 35 Note: (i) The equity investments represent the Group’s investments in other companies at fair values (level 1: quoted price (unadjusted) in active markets; or level 3: inputs for the assets or liability that are not based on observable market data (that is, unobservable inputs)) through other comprehensive income as of December 31, 2017. (ii) The wealth management products issued by banks will mature within one year with variable return rates indexed to the performance of underlying assets. As of December 31, 2017, the carrying amount approximated the fair value (level 3 of fair value hierarchy). The fair values are based on cash flow discounted assuming the expected return will be obtained upon maturity. |
Restricted Bank Deposits
Restricted Bank Deposits | 12 Months Ended |
Dec. 31, 2017 | |
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Restricted Bank Deposits | 22 RESTRICTED BANK DEPOSITS As of December 31, 2017 As of December 31, 2016 Non-current Current Total Non-current Current Total Million Million Million Million Million Million Restricted bank deposits - Statutory deposit reserves (Note) 3,453 — 3,453 4,527 — 4,527 - Deposited customer reserves (Note) 3,047 — 3,047 — — — - Pledged bank deposits 4 691 695 1 197 198 6,504 691 7,195 4,528 197 4,725 Note: The statutory deposit reserves and the deposited customer reserves are deposited by China Mobile Finance and China Mobile E-Commerce |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
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Inventories | 23 INVENTORIES As of As of December 31, December 31, Million Million SIM cards, handsets and other terminals 8,357 7,696 Other consumables 1,865 1,136 10,222 8,832 |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2017 | |
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Accounts Receivable | 24 ACCOUNTS RECEIVABLE (a) Aging analysis Aging analysis of accounts receivable, net of allowance for impairment loss of doubtful accounts is as follows: As of As of December 31, December 31, Million Million Within 30 days 13,711 10,974 31 - 60 days 3,002 2,726 61 - 90 days 1,798 1,540 Over 90 days 5,642 3,805 24,153 19,045 Accounts receivable primarily comprise receivables from customers and telecommunications operators. Accounts receivable from the provision of telecommunications services to customers are mainly due for payment within one month from date of billing. Customers with balances that are overdue or exceed credit limits are required to settle all outstanding balances before any further telecommunications services can be provided. The increase of accounts receivable over 90 days is mainly due to receivables arising from other telecommunications operators and certain corporate customers that are within credit term. Accounts receivable are expected to be recovered within one year. (b) Impairment of accounts receivable Impairment loss in respect of accounts receivable is recorded using an allowance account unless the Group is satisfied that recovery of the amount is remote, in which case the impairment loss is written off against accounts receivable directly. The following table summarizes the changes in impairment loss of doubtful accounts: 2017 2016 Million Million As of January 1 5,762 6,549 Impairment loss recognized 3,415 3,797 Accounts receivable written off (3,509 ) (4,584 ) As of December 31 5,668 5,762 (c) Past due but not impaired The aging analysis of the accounts receivable that are past due but not impaired is as follows: As of As of December 31, December 31, Million Million Past due within 1 month 848 577 As of December 31, 2017, accounts receivable of RMB848,000,000 (2016: RMB577,000,000) were past due but not impaired. Receivables that were past due but not impaired relate to a number of independent customers that have a good track record with the Group. Based on past experience, management believes that no impairment allowance is necessary in respect of these balances as there has not been a significant change in credit quality and the balances are still considered fully recoverable. Remaining receivables that were neither past due nor impaired relate to a wide range of customers for which there was no recent history of default. The Group does not hold any collateral over these balances. |
Other Receivables, Prepayments
Other Receivables, Prepayments and Other Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
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Other Receivables, Prepayments and Other Current Assets | 25 OTHER RECEIVABLES, PREPAYMENTS AND OTHER CURRENT ASSETS Other receivables comprise certain items which are expected to be recovered within one year, primarily including interest receivable from banks, utilities deposits and rental deposits, and short-term loans of RMB13,650,000,000 (2016: RMB4,650,000,000) granted to other companies through China Mobile Finance at the interest rate agreed by each party with reference to the market interest rate. Prepayments and other current assets primarily consist of rental prepayments, maintenance prepayments and input VAT to be deducted. As of December 31, 2016 and 2017, there were no significant overdue amounts for other receivables. |
Amounts Due from_to Ultimate Ho
Amounts Due from/to Ultimate Holding Company | 12 Months Ended |
Dec. 31, 2017 | |
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Amounts Due from/to Ultimate Holding Company | 26 AMOUNTS DUE FROM/TO ULTIMATE HOLDING COMPANY Amount due from ultimate holding company is unsecured, interest free, repayable on demand and arising in the ordinary course of business. As of December 31, 2017, amount due to ultimate holding company comprises the short-term deposits of CMCC and its subsidiaries (“CMCC Group”) in China Mobile Finance amounting to RMB8,611,000,000 (2016: RMB5,552,000,000) and the corresponding interest payable arising from the deposits. The deposits are unsecured and carry interest at prevailing market rate. |
Bank Deposits
Bank Deposits | 12 Months Ended |
Dec. 31, 2017 | |
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Bank Deposits | 27 BANK DEPOSITS Bank deposits represent term deposits with banks with original maturity exceeding three months. The applicable interest rate is determined in accordance with the benchmark interest rate published by PBOC or with reference to the market interest rate. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2017 | |
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Cash and Cash Equivalents | 28 CASH AND CASH EQUIVALENTS As of As of December 31, December 31, Million Million Bank deposits with original maturity within three months 5,907 15,115 Cash at banks and in hand 114,729 75,298 120,636 90,413 |
Interest-Bearing Borrowings
Interest-Bearing Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
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Interest-Bearing Borrowings | 29 INTEREST-BEARING BORROWINGS As of As of December 31, December 31, Million Million Bonds — 4,998 As of December 31, 2016, the bonds represented the balance of fifteen-year guaranteed bonds issued by Guangdong Mobile, a wholly-owned subsidiary of the Company, with a principal amount of RMB5,000,000,000, at an issue price equal to the face value of the bonds. The bonds were unsecured and bear interest at the rate of 4.5% per annum which was payable annually. The bonds was repaid on October 28, 2017. |
Accounts Payable
Accounts Payable | 12 Months Ended |
Dec. 31, 2017 | |
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Accounts Payable | 30 ACCOUNTS PAYABLE Accounts payable primarily include payables for expenditure of network expansion, maintenance and interconnection expenses. The aging analysis of accounts payable is as follows: As of As of December 31, December 31, Million Million Payable in the periods below: Within 1 month or on demand 201,429 215,775 After 1 month but within 3 months 13,086 14,677 After 3 months but within 6 months 7,660 8,231 After 6 months but within 9 months 2,761 4,342 After 9 months but within 12 months 8,233 7,813 233,169 250,838 All of the accounts payable are expected to be settled within one year or are repayable on demand. |
Deferred Revenue
Deferred Revenue | 12 Months Ended |
Dec. 31, 2017 | |
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Deferred Revenue | 31 DEFERRED REVENUE Deferred revenue primarily includes prepaid service fees received from customers and unredeemed point rewards. 2017 2016 Million Million As of January 1 - Current portion 84,289 78,100 - Non-current 2,175 1,291 Additions during the year 352,011 359,626 Recognized in the consolidated statements of comprehensive income (350,305 ) (352,553 ) As of December 31 88,170 86,464 Less: Current portion (85,282 ) (84,289 ) Non-current 2,888 2,175 |
Accrued Expenses and Other Paya
Accrued Expenses and Other Payables | 12 Months Ended |
Dec. 31, 2017 | |
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Accrued Expenses and Other Payables | 32 ACCRUED EXPENSES AND OTHER PAYABLES As of As of December 31, December 31, Million Million Receipts-in-advance 73,583 75,819 Other payables 26,643 24,523 Accrued salaries, wages, labor service expenses and other benefits 6,535 6,241 Accrued expenses 84,105 74,367 190,866 180,950 |
Equity Settled Share-based Tran
Equity Settled Share-based Transactions | 12 Months Ended |
Dec. 31, 2017 | |
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Equity Settled Share-based Transactions | 33 EQUITY SETTLED SHARE-BASED TRANSACTIONS Pursuant to a resolution passed at the Annual General Meeting held on June 24, 2002, the current share option scheme (the “Current Scheme”) was adopted. Under the Current Scheme, the directors of the Company may, at their discretion, invite employees, including executive directors and non-executive The maximum aggregate number of shares which can be subscribed for pursuant to options that are or may be granted under the above scheme equals to 10% of the total issued share capital of the Company as of the date of adoption of the Current Scheme. Options lapsed or cancelled in accordance with the terms of the Current Scheme will not be counted for the purpose of calculating this 10% limit. The HKEX requires the exercise price of options to be at least the higher of the closing price of the shares on the HKEX on the date on which the option was granted and the average closing price of the shares on the HKEX for the five trading days immediately preceding the date on which the option was granted. For options granted under the Current Scheme, the exercise price of options shall be determined by the directors of the Company at their discretion provided that such price may not be set below a minimum price which is the highest of: (i) the closing price of the shares on the HKEX on the date on which the option was granted; and (ii) the average closing price of the shares on the HKEX for the five trading days immediately preceding the date on which the option was granted. Under the Current Scheme, the term of the option is determined by the directors at their discretion, provided that all options shall be exercised within 10 years after the date on which the option is granted. No options were outstanding as of December 31, 2016 and 2017. No share options were granted to the directors of the company or other employees of the Group or lapsed during 2016 and 2017. |
Capital, Reserves and Dividends
Capital, Reserves and Dividends | 12 Months Ended |
Dec. 31, 2017 | |
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Capital, Reserves and Dividends | 34 CAPITAL, RESERVES AND DIVIDENDS (a) Share capital Ordinary shares, issued and fully paid: Equivalent Number HK$ RMB of shares Million Million As of January 1 and December 31, 2016 and 2017 20,475,482,897 382,263 402,130 The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company’s residual assets. (b) Dividends (i) Dividends attributable to the year: 2017 Million 2016 Million 2015 Million Ordinary interim dividend declared and paid of HK$1.623 (equivalent to approximately RMB1.409) (2016: HK$1.489 (equivalent to approximately RMB1.273); 2015: HK$1.525 (equivalent to approximately RMB1.203)) per share 28,211 26,227 25,629 Special dividend declared and paid of HK$3.200 (equivalent to approximately RMB2.777) per share 55,621 — — Ordinary final dividend proposed after the balance sheet date of HK$1.582 (equivalent to approximately RMB1.322) (2016: HK$1.243 (equivalent to approximately RMB1.112); 2015: HK$1.196 (equivalent to approximately RMB1.002)) per share 27,077 22,766 20,516 110,909 48,993 46,145 The proposed ordinary final dividend which is declared in Hong Kong dollar is translated into RMB with reference to the rate HK$1 = RMB0.83591, being the rate announced by the State Administration of Foreign Exchange in the PRC on December 29, 2017 (December 31, 2016: HK$1 = RMB0.89451; December 31, 2015: HK$1 = RMB0.83778). As the ordinary final dividend is declared after the balance sheet date, such dividend is not recognized as liability as of December 31, 2017. In accordance with the 2009 Notice and the PRC enterprise income tax law, the Company is required to withhold enterprise income tax equal to 10% of any dividend when it is distributed to non-resident (ii) Dividends attributable to the previous financial year, approved and paid during the year: 2017 2016 2015 Million Million Million Ordinary final dividend in respect of the previous financial year, approved and paid during the year, of HK$1.243 (equivalent to approximately RMB1.112) (2016: HK$1.196 (equivalent to approximately RMB1.002); 2015: HK$1.380 (equivalent to approximately RMB1.089)) per share 22,204 20,764 22,283 (c) Nature and purpose of reserves (i) Capital reserve The capital reserve mainly comprises the following: – RMB295,665,000,000 debit balance brought forward as a result of the elimination of goodwill arising on the acquisition of subsidiaries before January 1, 2001 against the capital reserve; – Share of other comprehensive income/(loss) of investments accounted for using the equity method; – The changes in fair value of available-for-sale – The difference between the consideration and the aggregate carrying amounts of Target Assets and Businesses acquired from the controlling party under business combinations under common control (see note 2(b)). (ii) PRC statutory reserves PRC statutory reserves mainly include statutory surplus reserve and discretionary surplus reserve. In accordance with the Company Law of the PRC, domestic enterprises in Mainland China are required to transfer 10% of their profit after taxation, as determined under accounting principles generally accepted in the PRC (“PRC GAAP”), to the statutory surplus reserve until such reserve balance reaches 50% of the registered capital of relevant Mainland subsidiaries. Moreover, upon a resolution made by the shareholders, a certain percentage of domestic enterprises’ profit after taxation, as determined under PRC GAAP, is transferred to the discretionary surplus reserve. During the year, appropriations were made by such subsidiaries to the statutory surplus reserves and discretionary surplus reserves accordingly. The statutory and discretionary surplus reserves can be used to reduce previous years’ losses, if any, and may be converted into paid-up In accordance with relevant regulations issued by the Ministry of Finance of the PRC, a subsidiary of the Company, China Mobile Finance, is required to set aside a reserve through appropriations of profit after tax according to a certain ratio of the ending balance of its gross risk-bearing assets to cover potential losses against such assets. (iii) Exchange reserve The exchange reserve comprises all foreign exchange differences arising from the translation of the financial statements of overseas entities. The reserve is dealt with in accordance with the accounting policies set out in note 2(x). (d) Capital management The Group’s primary objectives of capital management are to maintain a reasonable capital structure and to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders. The Group actively and regularly reviews and manages its capital structure to stabilize the capital position and prevent operation risk. Meanwhile, the Group will maximize the shareholders’ return when having high level of borrowings and will make adjustment on the capital structure in accordance with the changes in economic conditions. The Group monitors capital on the basis of total debt-to-book As of December 31, 2017, the Group’s total debt-to-book Except China Mobile Finance, the Company and its subsidiaries are not subject to externally imposed capital requirements. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
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Related Party Transactions | 35 RELATED PARTY TRANSACTIONS (a) Transactions with CMCC Group The following is a summary of principal related party transactions entered into by the Group with CMCC Group, for the years ended December 31, 2015, 2016 and 2017. 2017 2016 2015 Note Million Million Million Telecommunications services revenue (i) 47 159 474 Property leasing and management services revenue (ii) 188 197 191 Property leasing and management services charges (ii) 999 976 956 Network assets leasing charges (iii) 2,494 2,738 4,376 Network capacity leasing charges (iii) 1,047 2,696 4,757 Entrusted loans received (iv) — — 8,592 Entrusted loans repaid (iv) — — 18,834 Short-term bank deposits received (iv) 8,611 5,552 7,274 Short-term bank deposits repaid (iv) 5,552 7,274 4,181 Interest expenses (iv) 21 7 194 Note: (i) The amounts represent telecommunications services settlement received/receivable from CMCC Group for the telecommunications project planning, design and construction services, telecommunications line and pipeline construction services, and telecommunications line maintenance services. (ii) The amount represents the rental and property management fees received/receivable from or paid/payable to CMCC Group in respect of offices, retail outlets and warehouses. (iii) The amounts represent the network assets leasing settlement paid/payable to CMCC Group, and the TD-SCDMA TD-SCDMA (iv) The amounts represent the entrusted loans/bank deposits received from or repaid to CMCC and interest expenses paid/payable to CMCC in respect of the entrusted loans/bank deposits. (b) Amounts due from/to CMCC Group Amounts due from/to CMCC Group, other than amount due from/to ultimate holding company, are included in the following accounts captions summarized as follows: As of As of Million Million Accounts receivable 301 354 Other receivables 116 105 Accounts payable 4,580 4,251 Accrued expenses and other payables 131 88 The amounts are unsecured, interest-free, repayable on demand/on contract terms and arise in the ordinary course of business. (c) Significant transactions with associates and joint venture of the Group and of CMCC Group The Group has entered into transactions with associates and joint venture of the Group or CMCC Group. The major transactions entered into by the Group and these companies and amounts due from/to these companies are as follows: As of As of Note Million Million Accounts receivable (i) 313 29 Interest receivable (ii) 997 2,134 Other receivables (iii) 12,565 9,862 Proceeds receivable for the transfer of Tower Assets (note 7) — 57,152 Prepayments and other current assets 51 17 Available-for-sale (iii) 31,778 17,222 Bank deposits (iii) 62,969 37,631 Accounts payable (iv) 4,479 4,076 Accrued expenses and other payables (iv) 5,429 4,185 2017 2016 2015 Note Million Million Million Telecommunications services revenue (i) 828 637 767 Telecommunications services charges (v) — 422 774 Property leasing and management services revenue (vi) 99 1 6 Gain on the transfer of Tower Assets (iv) — — 15,525 Charges for use of tower assets (iv) 36,335 28,144 5,563 Interest income (ii) 4,807 4,140 1,699 Dividend income 847 1,944 2,842 Note: (i) The amounts represent the telecommunications services revenue received/receivable from the Group’s associates. (ii) The amounts primarily represent interest received/receivable from deposits placed with SPD Bank, short-term loans granted by China Mobile Finance to SPD Bank and China Tower, and the proceeds receivable for the transfer of Tower Assets. The interest rate of deposits placed with SPD Bank is determined in accordance with the benchmark interest rate published by PBOC. (iii) Other receivables primarily represent the short-term loans granted by China Mobile Finance to SPD Bank and China Tower, and withholding power and utilities expenses and lease charges due from China Tower, etc.. The loans will mature by or before December 2018. Available-for-sale (iv) The amounts represent the gain arising from the transfer of Tower Assets on October 31, 2015 (note 7) and the charges paid/payable to China Tower for the use of telecommunications towers and related assets (“Leased Tower”). On July 8, 2016, CMC and China Tower finalized the leasing and pricing arrangement in relation to the lease of Leased Tower, and entered into an agreement (the “Lease Agreement”). Accordingly, the respective provincial companies of CMC and China Tower entered into provincial company service agreements for the leasing of individual Leased Tower based on their actual service requirements. Pursuant to the management’s assessment, the 5 years lease terms of the Lease Agreement does not account for the major part of the economic lives of the Leased Tower and the present value of the minimum lease payments is not considered substantial comparing to the fair value of the corresponding Leased Tower. At the end of the lease term, there is no purchase option granted to the Group to purchase the Leased Tower. The Group also does not bear any gains or losses in the fluctuation in the fair value of the Leased Tower at the end of the lease terms. As a result, the Group does not substantially bear the risks and reward incidental to the ownership of the Leased Tower, and hence the Group accounts for the Leased Tower leasing as operating leases. On January 31, 2018, CMC and China Tower unanimously agreed on supplementary provisions to the Lease Agreement (“Supplementary Agreement”). The Supplementary Agreement mainly included: the adjustments to the pricing of tower products, the term of the agreement shall be 5 years, effective from January 1, 2018 and expiring on December 31, 2022. The Supplementary Agreement will not affect the Group’s judgement on operating lease aforementioned. (v) The amount represents the telecommunications services charges paid/payable to Union Mobile Pay Co., Ltd., an associate of CMCC Group until July 2016. (vi) The amount represents the property leasing revenue received/receivable from SPD Bank and China Tower. (d) Transactions with other government-related entities in the PRC The Group is a government-related enterprise and operates in an economic regime currently dominated by entities directly or indirectly controlled by the PRC government through government authorities, agencies, affiliations and other organization (collectively referred to as “government-related entities”). Apart from transactions with CMCC Group (notes 26 and 35(a)), and associates and joint venture (note 35(c)) and the transaction to increase contribution to the Fund (note 19), the Group has collectively, but not individually, significant transactions with other government-related entities which include but not limited to the following: – rendering and receiving telecommunications services, including interconnection revenue/charges – purchasing of goods, including use of public utilities – placing of bank deposits These transactions are conducted in the ordinary course of the Group’s business on terms comparable to the terms of transactions with other entities that are not government-related. The Group prices its telecommunications services and products based on commercial negotiations with reference to rules and regulations stipulated by related authorities of the PRC Government, where applicable. The Group has also established its procurement policies and approval processes for purchases of products and services, which do not depend on whether the counterparties are government-related entities or not. (e) For key management personnel remuneration, please refer to note 10. |
Financial Risk Management and F
Financial Risk Management and Fair Values | 12 Months Ended |
Dec. 31, 2017 | |
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Financial Risk Management and Fair Values | 36 FINANCIAL RISK MANAGEMENT AND FAIR VALUES Exposure to credit, liquidity, interest rate and foreign currency risks arises in the normal course of the Group’s business. The Group’s exposure to these risks and the financial risk management policies and practices used by the Group to manage these risks are described below: (a) Credit risk and concentration risk The Group’s credit risk is primarily attributable to the financial assets in the consolidated balance sheets, which mainly include deposits with banks, wealth management products issued by banks, accounts receivable and other receivables. The maximum exposure to credit risk is represented by the carrying amount of the financial assets. Substantially all the Group’s cash at banks and bank deposits are deposited in financial institutions in Mainland China and Hong Kong. The credit risk on liquid funds is limited as the majority of counterparties are financial institutions with high credit ratings assigned by international credit-rating agencies and large state-controlled financial institutions. Wealth management products are issued by major domestic banks investing in low risk underlying assets, which mainly consist of bank deposits, treasury bond, central bank bill, local government debt, corporate bond or debt with high credit ratings and low credit risks. The accounts receivable of the Group is primarily comprised of receivables due from customers and telecommunications operators. Accounts receivable from customers are spread among an extensive number of customers and the majority of the receivables from customers are due for payment within one month from the date of billing. Other receivables primarily comprise interest receivable from banks, utilities deposits, rental deposits and short-term loans granted to other companies through China Mobile Finance. Management has a credit policy in place and the exposures to these credit risks are monitored on an ongoing basis, taking into account the counter parties’ financial position, the Group’s past experience and other factors. As such, management considers the aggregate risks arising from the possibility of credit losses is limited and to be acceptable. Concentrations of credit risk with respect to accounts receivable are limited due to the Group’s customer base being large and unrelated. As such, management does not expect any significant losses of accounts receivable that have not been provided for by way of allowances as shown in note 24(c). (b) Liquidity risk Liquidity risk refers to the risk that funds will not be available to meet liabilities as they fall due, and results from timing and amount mismatches of cash inflow and outflow. The Group manages liquidity risk by maintaining sufficient cash balances and bank deposits (which are readily convertible to known amounts of cash) to meet its funding needs, including working capital, principal and interest payments on debts, dividend payments and capital expenditures. The following table sets out the remaining contractual maturities at the balance sheet date of the Group’s financial liabilities, which are based on the undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on prevailing rates at the balance sheet date) and the earliest date the Group would be required to repay: As of December 31, 2017 Carrying Total undiscounted Within 1 year or on Million Million Million Accounts payable 233,169 233,169 233,169 Bills payable 3,303 3,303 3,303 Accrued expenses and other payables 190,866 190,866 190,866 Amount due to ultimate holding company 8,646 8,646 8,646 435,984 435,984 435,984 As of December 31, 2016 Carrying Total undiscounted Within 1 Million Million Million Accounts payable 250,838 250,838 250,838 Bills payable 1,206 1,206 1,206 Accrued expenses and other payables 180,950 180,950 180,950 Amount due to ultimate holding company 5,563 5,563 5,563 Interest-bearing borrowings 4,998 5,185 5,185 443,555 443,742 443,742 (c) Interest rate risk The Group consistently monitors the current and potential fluctuation of interest rates in managing the interest rate risk on a reasonable level. As of December 31, 2017, the Group did not have any interest-bearing borrowings at variable rates, but had RMB8,611,000,000 of short-term bank deposits placed by CMCC (2016: RMB5,552,000,000 and RMB5,000,000,000 of bonds (note 29)), which was at fixed rate and expose the Group to fair value interest rate risk. The Group determines the amount of its fixed rate borrowings depending on the prevailing market condition. Management does not expect fair value interest rate risk to be high as the interest involved will not be significant. As of December 31, 2017, total cash and bank balances of the Group amounted to RMB407,202,000,000 (2016: RMB430,435,000,000), and interest-bearing receivables amounted to RMB13,650,000,000 (2016: RMB62,235,000,000). The interest income for 2017 was RMB15,883,000,000 (2016: RMB16,005,000,000; 2015: RMB15,852,000,000) and the average interest rate was 3.13% (2016: 3.44%; 2015: 3.75%). Assuming the total cash and bank balances and interest-bearing receivables are stable in the coming year and interest rate increases/decreases by 100 basis points, the profit for the year and total equity would approximately increase/decrease by RMB3,182,000,000 (2016: RMB3,695,000,000; 2015: RMB3,531,000,000). (d) Foreign currency risk The Group has foreign currency risk as certain cash and deposits with banks are denominated in foreign currencies, principally US dollars and Hong Kong dollars. As the amount of the Group’s foreign currency cash and deposits with banks represented 2.5% (2016: 1.2%) of the total cash and deposits with banks and predominantly all of the business operations of the Group are transacted in RMB, the Group does not expect the appreciation or depreciation of the RMB against foreign currency will materially affect the Group’s financial position and result of operations. (e) Fair values All financial instruments are carried at amounts not materially different from their fair values at the balance sheet dates. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
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Commitments | (a) Capital commitments The Group’s capital expenditure contracted for as of December 31, but not provided in the consolidated financial statements were as follows: 2017 2016 Million Million Land and buildings 10,950 8,788 Telecommunications equipment 32,112 26,147 43,062 34,935 (b) Operating lease commitments The total future minimum lease payments under non-cancellable Land and Leased lines and network Others Total Million Million Million Million As of December 31, 2017 Within one year 10,344 46,730 1,023 58,097 After one year but within five years 20,372 112,465 961 133,798 After five years 4,831 1,183 58 6,072 35,547 160,378 2,042 197,967 As of December 31, 2016 Within one year 9,222 40,078 1,184 50,484 After one year but within five years 18,182 119,628 812 138,622 After five years 4,810 860 45 5,715 32,214 160,566 2,041 194,821 The Group leases certain land and buildings, leased lines and network assets, motor vehicles, computer and other office equipment under operating leases. (c) Investment commitments The Group has an investment commitment to a joint venture (see note 19). |
Post Balance Sheet Event
Post Balance Sheet Event | 12 Months Ended |
Dec. 31, 2017 | |
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Post Balance Sheet Event | 38 POST BALANCE SHEET EVENT After the balance sheet date, the Board of Directors proposed a final dividend for the year ended December 31, 2017. Further details are disclosed in note 34(b)(i). |
Accounting Estimates and Judgem
Accounting Estimates and Judgements | 12 Months Ended |
Dec. 31, 2017 | |
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Accounting Estimates and Judgements | 39 ACCOUNTING ESTIMATES AND JUDGEMENTS Key sources of estimation uncertainty Note 17 contains information about the assumptions relating to goodwill impairment, and note 35 contains information about the judgements on the lease classification of leasing of TD-SCDMA Impairment loss for doubtful accounts The Group assesses impairment loss for doubtful accounts based upon evaluation of the recoverability of the accounts receivable and other receivables at each balance sheet date. The estimates are based on the aging of the accounts receivable and other receivables balances and the historical write-off Depreciation Depreciation is calculated to write off the cost of items of property, plant and equipment, less their estimated residual value, if any, using the straight-line method over their estimated useful lives. The Group reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation expense to be recorded during any reporting period. The useful lives and residual values are determined based on the Group’s historical experience with similar assets and take into account anticipated technological changes. The depreciation expense for future periods is adjusted if there are significant changes from previous estimates. Taxation The Group is subject to income taxes mainly in Mainland China and Hong Kong. Significant judgment is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. For temporary differences which give rise to deferred tax assets, the Group assesses the likelihood that the deferred tax assets could be recovered. Deferred tax assets are recognised based on the Group’s estimates and assumptions that they will be recovered from taxable income arising from continuing operations in the foreseeable future. Impairment of property, plant and equipment, goodwill, other intangible assets and investments accounted for using the equity method The Group’s property, plant and equipment comprise a significant portion of the Group’s total assets. Changes in technology or industry conditions may cause the estimated period of use or the value of these assets to change. Property, plant and equipment, other intangible assets subject to amortization and investments accounted for using the equity method, are reviewed at least annually to determine whether there is any indication of impairment. The recoverable amount is estimated whenever events or changes in circumstances have indicated that their carrying amounts may not be recoverable. In addition, for goodwill and other intangible assets with indefinite useful lives, the recoverable amount is estimated annually whether or not there is any indication of impairment. The recoverable amount of an asset is the greater of its fair value less costs of disposal and value-in-use. value-in-use, pre-tax Classification of leases The Group has a number of lease arrangements. The Group follows the guidance of IAS 17 “Leases” to determine the classification of leases as operating leases versus finance leases. Significant judgements and assumptions are required in the assessment of the classification. The determination of classification depends on whether the lease transfers substantially all the risks and rewards of the assets to the Group. In particular, during the assessment, the management estimates (i) economic lives of lease assets, (ii) the discount rate used in the calculation of present value of minimum lease payments, and (iii) the fair value of the leased assets. Any future changes to these judgements or assumptions will affect the classification and hence the results of operation and financial position of the Group. |
Possible Impact of Amendments,
Possible Impact of Amendments, New Standards, Interpretations and Disclosures Issued but Not Yet Effective for the Year Ended December 31, 2017 | 12 Months Ended |
Dec. 31, 2017 | |
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Possible Impact of Amendments, New Standards, Interpretations and Disclosures Issued but Not Yet Effective for the Year Ended December 31, 2017 | 40 POSSIBLE IMPACT OF AMENDMENTS, NEW STANDARDS, INTERPRETATIONS AND DISCLOSURES ISSUED BUT NOT YET EFFECTIVE FOR THE YEAR ENDED DECEMBER 31, 2017 Up to the date of issue of these consolidated financial statements, the IASB has issued a number of amendments and new standards and interpretations which are not yet effective for the year ended December 31, 2017 and which have not been adopted in these consolidated financial statements. Of these developments, the following relate to matters that may be relevant to the Group’s operations and financial statements: Effective for IFRS 9 “Financial Instrument” January 1, 2018 IFRS 15 “Revenue from Contracts with Customers” January 1, 2018 Annual Improvement to IFRSs 2014-2016 cycle* January 1, 2018 IFRIC – Int 22, “Foreign Currency Transactions and Advance Consideration” January 1, 2018 IFRS 16 “Leases” January 1, 2019 IFRIC – Int 23, “Uncertainty over Income Tax Treatments” January 1, 2019 Annual Improvement to IFRSs 2015-2017 cycle January 1, 2019 Amendment to IFRS 10, “Consolidated Financial Statements” To be determined Amendment to IAS 28, “Investments in Associates and Joint Ventures” To be determined * It included amendment to IFRS 12 which was effective on January 1, 2017 and does not have a material impact on the Group. IFRS 9 “Financial Instruments” The new standard addresses the classification, measurement and derecognition of financial assets and financial liabilities, and a new impairment model for financial assets. The Group has reviewed its financial assets and liabilities and is expecting the following impact from the adoption of the new standard on January 1, 2018. Management anticipates the application of IFRS 9 will affect the classification and measurement of the Group’s available-for-sale available-for-sale There will be no impact on the Group’s accounting for financial liabilities, as the new requirements only affect the accounting for financial liabilities that are designated at fair value through profit or loss and the Group does not have any such liabilities. The derecognition rules have been transferred from IAS 39 “Financial Instruments: Recognition and Measurement” and have not been changed. The new impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses as is the case under IAS 39. It applies to financial assets classified at amortized cost, contract assets under IFRS 15 “Revenue from Contracts with Customers”, trade debtors and certain other financial assets. Based on the assessments undertaken to date, the Group expects no material impact on the loss allowance for the aforementioned assets. The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the Group’s disclosures about its financial instruments particularly in the year of the adoption of the new standard. IFRS 9 is mandatory for financial years commencing on or after January 1, 2018. The Group adopted the IFRS 9 from January 1, 2018, with the practical expedients permitted under the standard. Comparatives for 2017 will not be restated. IFRS 15 “Revenue from Contracts with Customers” IFRS 15 replaces IAS 18 which covers contracts for goods and services and IAS 11 which covers construction contracts. The new standard is based on the principle that revenue is recognized when control of a good or service transfers to a customer. IFRS 15 specifies how and when the Group will recognize revenue as well as requiring the Group to provide users of financial statements with more informative and relevant disclosures. The Group has finished analysis on the impact of the new standard on the Group’s financial statements and has identified areas which will be affected as follows. IFRS 15 requires the identification of the distinct deliverables in contracts with customers that qualify as separate “performance obligations” and the allocation of the transaction price receivables from customers to each “performance obligation” on relative stand-alone selling price basis. Upon the completion of the principal or agent analysis under the new standard, the Group will allocate the total consideration to each “performance obligation”, including telecommunications services, handsets and customer point rewards and other promotional goods or services. The current accounting policy for telecommunications services, handsets, customer points rewards is disclosed in note 2(r), and promotional items are accounted for as selling expenses under the existing treatment. IFRS 15 requires customer acquisition cost to be capitalized as an asset and amortized on a systematic basis consistent with the pattern of the transfer of the goods or services to which the asset relates. The Group considers that certain types of sales commissions will be capitalized and amortized on a straight-line basis over the period under the new standards. The change will impact on the timing of the expense recognition. The Group has assessed the static impact on the Group’s consolidated financial statements for the year ended December 31, 2017 if IFRS 15 was applied, and the Group expected the operating revenue would decrease by approximately 2.2% while the revenue from telecommunications services would decrease by approximately 3.2% in 2017. However, the adoption of IFRS 15 is not expected to have a significant impact on profit from operations in the long-term. IFRS 15 is mandatory for financial years commencing on or after January 1, 2018. The standard permits either a full retrospective or a modified retrospective approach for the adoption. The Group has finished the upgrade of the accounting systems and the processes of the business, and adopted the IFRS 15 from January 1, 2018 with modified retrospective approach. IFRS 16 “Leases” IFRS 16 will result in almost all leases being recognized on the balance sheets, as the distinction between operating and finance leases is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognized. The only exceptions are short-term and low-value Upon preliminary evaluation, given that the Group leases certain telecommunications facilities for time periods longer than a year, the application of IFRS 16 “Leases” in 2019 is expected to have impact on the Group’s consolidated financial statements to certain extent because present values of lease liabilities and leased assets will be recorded on the balance sheets when the standard is applied. Accordingly, the Group expects a corresponding increase in its assets and liabilities. In addition, related operating lease expenses will be reclassified as depreciation and finance costs. IFRS 16 is mandatory for financial years commencing on or after January 1, 2019. At this stage, the Group does not intend to adopt the standard before its effective date. Management is assessing the impact of the rest new standards, amendments to standards and will adopt the relevant standards, amendments to standards in the subsequent periods as required. |
Condensed Financial Information
Condensed Financial Information of the Company | 12 Months Ended |
Dec. 31, 2017 | |
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Condensed Financial Information of the Company | 41 CONDENSED FINANCIAL INFORMATION OF THE COMPANY (a) Condensed statements of comprehensive income 2017 2016 2015 Million Million Million Dividend income 111,490 49,080 43,848 Operating expenses (77 ) (71 ) (77 ) Interest income 23 11 25 Other (losses)/gains (87 ) 57 61 Finance costs (2 ) (3 ) (3 ) Profit before taxation 111,347 49,074 43,854 Taxation (14 ) (1 ) — PROFIT FOR THE YEAR 111,333 49,073 43,854 Other comprehensive income for the year — — — TOTAL COMPREHENSIVE INCOME FOR THE YEAR 111,333 49,073 43,854 (b) Condensed balance sheets As of As of Million Million Non-current 490,256 487,290 Current assets 2,718 2,144 Current liabilities 3,658 5,415 Non-current — — NET ASSETS 489,316 484,019 TOTAL EQUITY 489,316 484,019 In the Company’s balance sheets, an investment in a subsidiary is stated at cost less impairment losses. The results of subsidiaries are accounted for by the Company on the basis of dividends received and receivable. (c) Condensed statements of cash flows 2017 2016 2015 Million Million Million Net cash used in operating activities (72 ) (69 ) (78 ) Net cash generated from investing activities 28,840 12,900 9,760 Net cash used in financing activities (28,913 ) (12,813 ) (11,964 ) Net increase/(decrease) in cash and cash equivalents (145 ) 18 (2,282 ) Cash and cash equivalents at beginning of year 796 753 3,030 Effect of changes in foreign exchange rate (97 ) 25 5 Cash and cash equivalents at end of year 554 796 753 |
Significant Accounting Polici48
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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Statement of compliance | (a) Statement of compliance These financial statements have been prepared in accordance with all applicable International Financial Reporting Standards (“IFRSs”) issued by the International Accounting Standards Board (“IASB”), which collective term includes all applicable individual International Financial Reporting Standards, International Accounting Standards (“IASs”) and Interpretations issued by the IASB. A summary of the significant accounting policies adopted by the Group is set out below. |
Basis of preparation | (b) Basis of preparation The consolidated financial statements comprise the Group and the Group’s interest in associates and joint ventures. The measurement basis used in the preparation of the financial statements is the historical cost basis, as modified by the revaluation of available-for-sale The preparation of financial statements in conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Judgements made by management in the application of IFRSs that have significant effect on the financial statements and major sources of estimation uncertainty are discussed in note 39. Acquisition of Target Assets and Businesses from China Tietong Telecommunications Corporation On November 27, 2015, China Mobile TieTong Company Limited (“CM TieTong”), a wholly-owned subsidiary of the Company, entered into an acquisition agreement with China Tietong Telecommunications Corporation (“TieTong”), a wholly-owned subsidiary of CMCC, under which CM TieTong has agreed to acquire, and TieTong has agreed to sell, certain assets, businesses and related liabilities as well as its related employees in relation to the fixed-line telecommunications operations (“Target Assets and Businesses”). The final consideration for the acquisition of the Target Assets and Businesses based on the acquisition agreement was RMB31,967,000,000. The acquisition was completed on December 31, 2015. The acquisition of the Target Assets and Businesses was considered as a business combination under common control as CM TieTong and the Target Assets and Businesses are both ultimately controlled by CMCC. Under IFRSs, the acquisition of the Target Assets and Businesses was accounted for using merger accounting in accordance with the Accounting Guideline 5 “Merger Accounting for Common Control Combinations” (“AG 5”) issued by the Hong Kong Institute of Certified Public Accountants (note 2(c)(iii)). |
Subsidiaries and non-controlling interests | (i) Subsidiaries Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. An investment in a subsidiary is consolidated into the consolidated financial statements from the date that control commences until the date that control ceases. Intra-group balances and transactions and any unrealized gains arising from intra-group transactions are eliminated in full in preparing the consolidated financial statements. Unrealized losses resulting from intra-group transactions are eliminated in the same way as unrealized gains but only to the extent that there is no evidence of impairment. Accounting policies of subsidiaries would be changed where necessary in the consolidated financial statements to ensure consistency with the policies adopted by the Group. Non-controlling non-controlling Non-controlling Non-controlling non-controlling Changes in the Group’s interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling When the Group loses control of a subsidiary, it is accounted for as a disposal of the entire interest in that subsidiary, with a resulting gain or loss being recognized in profit or loss. Any interest retained in that former subsidiary at the date when control is lost is recognized at fair value and this amount is regarded as the fair value on initial recognition of a financial asset or, when appropriate, the cost on initial recognition of an investment in an associate or a joint venture. (ii) Business combination other than under common control The Group applies the acquisition method to account for business combination of entities and businesses which are not under common control. The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred to the former owners of the acquiree and the equity interests issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisition-related costs are expensed as incurred. (iii) Business combination under common control Under IFRSs, the Group use merger accounting to account for the business combination of entities and businesses under common control in accordance with AG 5. The consolidated financial statements incorporate the financial statements of the combining entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the controlling party. The assets and liabilities of the combining entities or businesses are combined using the carrying book values from the controlling parties’ perspective. No amount is recognized in consideration for goodwill or excess of acquirers’ interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over the consideration at the time of common control combination, to the extent of the continuation of the controlling party’s interest. The consolidated statements of comprehensive income includes the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under the common control, where there is a shorter period, regardless of the date of the common control combination. Transaction costs, including professional fees, registration fees, costs of furnishing information to shareholders, costs or losses incurred in combining operations of the previously separate businesses, etc., incurred in relation to the common control combination that is to be accounted for by using merger accounting is recognized as an expense in the period in which they were incurred. |
Investments accounted for using the equity method | (d) Investments accounted for using the equity method Investments accounted for using the equity method include investment in associates and joint ventures. An associate is an entity in which the Group has significant influence, but not control or joint control, over its management, including participation in the financial and operating policy decisions. The Group has applied IFRS 11 to all joint arrangements. Under IFRS 11, investments in joint arrangements are classified as either joint operations or joint ventures depending on the contractual rights and obligations of each investor. The Group has assessed the nature of its joint arrangements and determined them to be joint ventures. Under the equity method, the investment is initially recorded at cost. Thereafter, the investment is adjusted for the post-acquisition change in the Group’s share of the investee’s net assets and any impairment loss relating to the investment (see note 2(i)). The Group’s share of the post-acquisition post-tax When the Group’s share of losses exceeds its interest in the associate or joint ventures, the Group’s interest is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the investee. For this purpose, the Group’s interest in the investee is the carrying amount of the investment under the equity method together with the Group’s long-term interests that in substance form part of the Group’s net investment in the associates or joint ventures. Unrealized profits and losses resulting from transactions between the Group and its associates or joint ventures are eliminated to the extent of the Group’s interest in the investee, except where unrealized losses provide evidence of an impairment of the asset transferred, in which case they are recognized immediately in profit or loss. Accounting policies of associates or joint ventures would be changed where necessary in the consolidated financial statements to ensure consistency with the policies adopted by the Group. Gain or loss on dilution of equity interest in associates and joint ventures are recognized in profit or loss. |
Goodwill | (e) Goodwill Goodwill represents the excess of: (i) the aggregate of the fair value of the consideration transferred, the amount of any non-controlling (ii) the net fair value of the acquiree’s identifiable assets and liabilities measured as of the acquisition date. When (ii) is greater than (i), then this excess is recognized immediately in profit or loss as a gain on a bargain purchase. Goodwill is stated at cost less accumulated impairment losses. Goodwill arising on a business combination is allocated to each cash-generating unit, or groups of cash-generating units, that is expected to benefit from the synergies of the combination and is tested annually for impairment (see note 2(i)). Each unit or groups of units to which the goodwill is allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purpose. Goodwill is monitored at the operating segment level. On disposal of a cash-generating unit during the year, any attributable amount of purchased goodwill is included in the calculation of the gain or loss on disposal. |
Other intangible assets | (f) Other intangible assets Other intangible assets that are acquired by the Group are stated in the balance sheets at cost less accumulated amortization (where the estimated useful life is finite) and impairment losses (see note 2(i)). Amortization of intangible assets with finite useful lives is recorded in other operating expenses on a straight-line basis over the assets’ estimated useful lives, from the date they are available for use. Both the period and method of amortization are reviewed annually. Intangible assets are not amortized where their useful lives are assessed to be indefinite. The useful life of an intangible asset that is not being amortized is reviewed annually to determine whether events and circumstances continue to support the indefinite useful life assessment for that asset. Otherwise, the change in useful life assessment from indefinite to finite is accounted for prospectively from the date of change and in accordance with the policy for amortization of intangible assets with finite lives as set out above. |
Property, plant and equipment | (g) Property, plant and equipment Property, plant and equipment are stated in the balance sheets at cost less accumulated depreciation and impairment losses (see note 2(i)). The cost of property, plant and equipment comprises the purchase price and any directly attributable costs of bringing the asset to its working location and condition for its intended use. Subsequent expenditure relating to an item of property, plant and equipment that has already been recognized is added to the carrying amount of the asset when it is probable that future economic benefits, in excess of the originally assessed standard of performance of the existing asset, will flow to the entity. All other subsequent expenditure is recognized as an expense in the period in which it is incurred. Gains or losses arising from the retirement or disposal of an item of property, plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the item and are recognized in profit or loss on the date of retirement or disposal. Depreciation is calculated to write off the cost of items of property, plant and equipment, less their estimated residual value, if any, using the straight-line method over their estimated useful lives as follows: Buildings 8 - 30 years Telecommunications transceivers, switching centers, transmission and other network equipment 5 - 10 years Office equipment, furniture, fixtures and others 3 - 10 years Both the assets’ useful lives and residual values, if any, are reviewed annually. |
Leased assets | (h) Leased assets An arrangement, comprising a transaction or a series of transactions, is or contains a lease if the Group determines that the arrangement conveys a right to use a specific asset or assets for an agreed period of time in return for a payment or a series of payments. Such a determination is made based on an evaluation of the substance of the arrangement and is regardless of whether the arrangement takes the legal form of a lease. (i) Classification of assets leased to the Group Assets that are held by the Group under leases which transfer to the Group substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the Group are classified as operating leases. (ii) Assets acquired under finance leases Where the Group acquires the use of assets under finance leases, the amounts representing the fair value of the leased asset, or, if lower, the present value of the minimum lease payments of such assets is included in property, plant and equipment and the corresponding liabilities, net of finance charges, are recorded as obligations under finance leases. Depreciation is provided for at rates, which write off the cost of the assets over the term of the relevant lease or, where it is likely the Group will obtain ownership of the asset, the useful life of the asset as set out in note 2(g). Impairment losses are accounted for in accordance with the accounting policy as set out in note 2(i). Finance charges implicit in the lease payments are charged to profit or loss over the period of the leases so as to produce an approximately constant periodic rate of charge on the remaining balance of the obligations for each accounting period. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred. (iii) Leased lines and network assets and operating lease charges Where the Group has the use of assets held under operating leases, payments made under the leases are charged to profit or loss in equal instalments over the accounting periods covered by the lease term, except where an alternative basis is more representative of the pattern of benefits to be derived from the leased asset. Lease incentives received are recognized in profit or loss as an integral part of the aggregate net lease payments made. Contingent rentals are charged to profit or loss in the accounting period in which they are incurred. The cost of acquiring land held under an operating lease is amortized on a straight-line basis over the period of the lease term. (iv) Sale and leaseback A sale and leaseback transaction involves the sale of an asset and the leasing back of the same asset. The accounting treatment of a sale and leaseback transaction depends upon the type of lease involved. If a sale and leaseback transaction results in a finance lease, any excess of sales proceeds over the carrying amount shall not be immediately recognized as income by a seller-lessee. Instead, it shall be deferred and amortized over the lease term. If a sale and leaseback transaction results in an operating lease, and it is clear that the transaction is established at fair value, any profit or loss shall be recognized immediately. If the sale price is below fair value, any profit or loss shall be recognized immediately except that, if the loss is compensated for by future lease payments at below market price, it shall be deferred and amortized in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value shall be deferred and amortized over the period for which the asset is expected to be used. |
Impairment of assets | (i) Impairment of assets (i) Impairment of investments accounted for using the equity method, available-for-sale Investments accounted for using the equity method, available-for-sale – significant financial difficulty of the entity; – a breach of contract, such as a default or delinquency in interest or principal payments; – it becoming probable that the entity will enter bankruptcy or other financial reorganization; – significant changes in the technological, market, economic or legal environment that have an adverse effect on the entity; and – a significant or prolonged decline in the fair value of an investment in an equity instrument below its cost. If any such evidence exists, any impairment loss is determined and recognized as follows: – For investment accounted for using the equity method (see note 2(d)), the impairment loss is measured by comparing the recoverable amount of the investment with its carrying amount in accordance with note 2(i)(ii). The impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount in accordance with note 2(i)(ii). – For unquoted equity securities carried at cost, the impairment loss is measured as the difference between the carrying amount of the financial asset and the estimated future cash flows, discounted at the current market rate of return for a similar financial asset where the effect of discounting is material. Impairment losses for such equity securities are not reversed. – For debt instruments classified as available-for-sale available-for-sale available-for-sale – For trade and other current receivables carried at amortized cost, the impairment loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at initial recognition of these assets), where the effect of discounting is material. This assessment is made collectively where these financial assets share similar risk characteristics, such as similar past due status, and have not been individually assessed as impaired. Future cash flows for financial assets which are assessed for impairment collectively are based on historical loss experience for assets with credit risk characteristics similar to the collective group. If in a subsequent period the amount of an impairment loss decreases and the decrease can be linked objectively to an event occurring after the impairment loss was recognized, the impairment loss is reversed through profit or loss. A reversal of an impairment loss shall not result in the asset’s carrying amount exceeding that which would have been determined had no impairment loss been recognized in prior years. Impairment losses are written off against the corresponding assets directly, except for impairment losses recognized in respect of debtors included within trade and other receivables, whose recovery is considered doubtful but not remote. In this case, the impairment losses for doubtful debts are recorded using an allowance account. When the Group is satisfied that recovery is remote, the amount considered irrecoverable is written off against trade debtors directly and any amounts held in the allowance account relating to that debt are reversed. Subsequent recoveries of amounts previously charged to the allowance account are reversed against the allowance account. Other changes in the allowance account and subsequent recoveries of amounts previously written off directly are recognized in profit or loss. (ii) Impairment of other assets Internal and external sources of information are reviewed at the end of each reporting period to identify indications that the following assets may be impaired or, except in the case of goodwill and other intangible assets with indefinite useful lives, an impairment loss previously recognized no longer exists or may have decreased: – property, plant and equipment; – construction in progress; – prepaid interests in leasehold land classified as being held under an operating lease; – investments in subsidiaries; – goodwill; and – other intangible assets. If any such indication exists, the asset’s recoverable amount is estimated. For goodwill and other intangible assets that have indefinite useful lives, the recoverable amount is estimated annually whether or not there is any indication of impairment. – Calculation of recoverable amount The recoverable amount of an asset is the higher of its fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax – Recognition of impairment losses An impairment loss is recognized in profit or loss if the carrying amount of an asset, or the cash-generating unit to which it belongs, exceeds its recoverable amount. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit (or group of units) and then, to reduce the carrying amount of the other assets in the unit (or group of units) on a pro rata basis, except that the carrying value of an asset will not be reduced below its individual fair value less costs of disposal, or value in use, if determinable. – Reversals of impairment losses In respect of assets other than goodwill, an impairment loss is reversed if there has been a favorable change in the estimates used to determine the recoverable amount. An impairment loss in respect of goodwill is not reversed. A reversal of an impairment loss is limited to the asset’s carrying amount that would have been determined had no impairment loss been recognized in prior years. Reversals of impairment losses are credited to profit or loss in the year in which the reversals are recognized. |
Construction in progress | (j) Construction in progress Construction in progress is stated at cost less impairment losses (see note 2(i)). Cost comprises direct costs of construction as well as interest expense and exchange differences capitalized during the periods of construction and installation. Capitalization of these costs ceases and the construction in progress is transferred to property, plant and equipment when substantially all the activities necessary to prepare the assets for their intended use are completed. No depreciation is provided for in respect of construction in progress until it is completed and ready for its intended use. |
Inventories | (k) Inventories Inventories are carried at the lower of cost and net realizable value. Cost represents purchase cost of goods calculated using the weighted average cost method. Net realizable value is determined by reference to the sales proceeds of items sold in the ordinary course of business or to management’s estimates based on prevailing market conditions. When inventories are sold, the carrying amount of those inventories is recognized as cost of products sold. The amount of any write-down of inventories to net realizable value and all losses of inventories are recognized as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realizable value, is recognized as a reduction in the amount of inventories recognized as an expense in the period in which the reversal occurs. No reversal of any write-down of inventories occurred during the years presented. |
Accounts receivable and other receivables | (l) Accounts receivable and other receivables Accounts receivable and other receivables are initially recognized at fair value and thereafter stated at amortized cost using the effective interest method less allowance for impairment loss (see note 2(i)), except where the effect of discounting would be immaterial. |
Available-for-sale financial assets | (m) Available-for-sale Available-for-sale non-derivatives non-current Regular way purchases and sales of available-for-sale available-for-sale Available-for-sale When available-for-sale Interest on available-for-sale available-for-sale |
Deferred revenue | (n) Deferred revenue Deferred revenue consists primarily of prepaid service fees received from customers which are generally not refundable and revenue deferred for unredeemed point rewards under Customer Point Reward Program (“Reward Program”, see note 2(r)(iv)). The prepaid service fees are stated at the amount of proceeds received less the amount already recognized as revenue. |
Interest-bearing borrowings | (o) Interest-bearing borrowings Interest-bearing borrowings are recognized initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortized cost with any difference between the amount initially recognized and redemption value being recognized in profit or loss over the period of the borrowings, together with any interest and fees payable, using the effective interest method. |
Accounts payable and other payables | (p) Accounts payable and other payables Accounts payable and other payables are initially recognized at fair value and subsequently stated at amortized cost unless the effect of discounting would be immaterial. |
Cash and cash equivalents | (q) Cash and cash equivalents Cash and cash equivalents comprise bank deposits with original maturity within three months, cash at banks and in hand, demand deposits with banks, and short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value, having been within three months of maturity at acquisition. |
Revenue recognition | (r) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Provided it is probable that the economic benefits will flow to the Group and the revenue and costs, if applicable, can be measured reliably, revenue is recognized in profit or loss as follows: (i) revenue derived from voice and data services are recognized when the service is rendered; (ii) sales of products are recognized when the title is passed to the buyer; (iii) for offerings which include the provision of services and sale of mobile handset, the Group determines the revenue from the sale of the mobile handset by deducting the fair value of the service element from the total contract consideration; and (iv) for transactions which offer customer points reward when services are provided, the consideration allocated to the customer points reward is based on its fair value which is deducted from revenue and recorded as deferred revenue when the rewards are granted and recognized as revenue when the points are redeemed or expired. |
Interest income | (s) Interest income Interest income is recognized as it accrues using the effective interest method. |
Income tax | (t) Income tax Income tax for the year comprises current tax and movements in deferred tax assets and liabilities. Current tax and movements in deferred tax assets and liabilities are recognized in profit or loss except items recognized in other comprehensive income or directly in equity, in which case the relevant amounts of tax are recognized in other comprehensive income or directly in equity, respectively. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. Deferred tax assets and liabilities arise from deductible and taxable temporary differences respectively, being the differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets also arise from unused tax losses and unused tax credits. Apart from certain limited exceptions, all deferred tax liabilities, and all deferred tax assets to the extent that it is probable that future taxable profits will be available against which the asset can be utilized, are recognized. Future taxable profits that may support the recognition of deferred tax assets arising from deductible temporary differences include those that will arise from the reversal of existing taxable temporary differences, provided those differences relate to the same taxation authority and the same taxable entity, and are expected to reverse either in the same period as the expected reversal of the deductible temporary difference or in periods into which a tax loss arising from the deferred tax asset can be carried back or forward. The same criteria are adopted when determining whether existing taxable temporary differences support the recognition of deferred tax assets arising from unused tax losses and credits, that is, those differences are taken into account if they relate to the same taxation authority and the same taxable entity, and are expected to reverse in a period, or periods, in which the tax loss or credit can be utilized. The limited exceptions to recognition of deferred tax assets and liabilities are those temporary differences arising from initial recognition of goodwill, the initial recognition of assets or liabilities that affect neither accounting nor taxable profit (provided they are not part of a business combination), and temporary differences relating to investments in subsidiaries and associates to the extent that, in the case of taxable temporary differences, the Group controls the timing of the reversal and it is probable that the differences will not reverse in the foreseeable future, or in the case of deductible differences, unless it is probable that they will reverse in the future. The amount of deferred tax recognized is measured based on the expected manner of realization or settlement of the carrying amount of the assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax assets and liabilities are not discounted. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow the related tax benefit to be utilized. Any such reduction is reversed to the extent that it becomes probable that sufficient taxable profits will be available. Current tax balances and deferred tax balances, and movements therein, are presented separately from each other and are not offset. Current tax assets are offset against current tax liabilities, and deferred tax assets against deferred tax liabilities, if the Group has the legally enforceable right to set off current tax assets against current tax liabilities and the following additional conditions are met: – in the case of current tax assets and liabilities, the Group intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously; or – in the case of deferred tax assets and liabilities, if they relate to income taxes levied by the same taxation authority on either: – the same taxable entity; or – different taxable entities, which, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered, intend to realize the current tax assets and settle the current tax liabilities on a net basis or realize and settle simultaneously. |
Provisions and contingent liabilities | (u) Provisions and contingent liabilities Provisions are recognized for liabilities of uncertain timing or amount when the Group has a legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and the amount can be estimated reliably. Where the time value of money is material, provisions are stated at the present value of the expenditures expected to settle the obligation. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence |
Employee benefits | (v) Employee benefits (i) Short-term employee benefits and contributions to defined contribution retirement plans Salaries, annual bonuses, paid annual leave, leave passage, contributions to defined contribution retirement plans and the cost of non-monetary (i) Short-term employee benefits and contributions to defined contribution retirement plans (Continued) The Company and subsidiaries incorporated in Hong Kong are required to make contributions to Mandatory Provident Funds under the Hong Kong Mandatory Provident Fund (“MPF”) Schemes Ordinance. Under the MPF scheme, the employer and its employees are each required to make contributions to the scheme at 5% of the employees’ relevant income, subject to a cap of monthly relevant income of HK$30,000. Such contributions are recognized as an expense in profit or loss as incurred. The employees of the subsidiaries in Mainland China participate in the defined contribution retirement plans managed by the local government authorities whereby the subsidiaries are required to contribute to the schemes at fixed rates of the employees’ salary costs. In addition to the local governmental defined contribution retirement plans, the subsidiaries also participate in a pension scheme launched by the Group managed by an independent insurance company whereby the subsidiaries are required to make contributions to the retirement plans at fixed rates of the employees’ salary costs or in accordance with the terms of the plans. The Group’s contributions to these plans are charged to profit or loss when incurred. The Company and subsidiaries have no obligations for the payment of retirement and other post-retirement benefits of staff other than the contributions described above. (ii) Share-based payments The fair value of share options granted to employees is recognized as an employee cost with a corresponding increase in a capital reserve within equity. The fair value is measured at grant date using the binomial lattice model, taking into account the terms and conditions upon which the options were granted. Where the employees have to meet vesting conditions before becoming unconditionally entitled to the options, the total estimated fair value of the options is spread over the vesting period, taking into account the probability that the options will vest. During the vesting period, the number of share options that is expected to vest is reviewed at each balance sheet date. Any resulting adjustment to the cumulative fair value recognized in prior years is credited/charged to the profit or loss for the year of the review, unless the original employee expenses qualify for recognition as an asset, with a corresponding adjustment to the capital reserve. On vesting date, the amount recognized as an expense is adjusted to reflect the actual number of share options that vest (with a corresponding adjustment to the capital reserve). The equity amount is recognized in the capital reserve until either the option is exercised (when it is transferred to the share capital account) or the option expires (when it is released directly to retained profits). (iii) Termination benefits Termination benefits are recognized when, and only when, the Group demonstrably commits itself to terminate employment which is without realistic possibility of withdrawal or to provide benefits as a result of voluntary redundancy by having a detailed formal plan which is without realistic possibility of withdrawal. |
Borrowing costs | (w) Borrowing costs Borrowing costs that are directly attributable to the acquisition, construction or production of an asset which necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of that asset. Other borrowing costs are expensed in the period in which they are incurred. The capitalization of borrowing costs as part of the cost of a qualifying asset commences when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are in progress. Capitalization of borrowing costs is suspended or ceased when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are interrupted or completed. |
Translation of foreign currencies | (x) Translation of foreign currencies The functional currency of majority of the entities within the Group is RMB. The Group adopted RMB as its presentation currency in the preparation of the consolidated financial statements, which is the currency of the primary economic environment in which most of the Group’s entities operate. Foreign currency transactions during the year are translated at the foreign exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in currencies other than the functional currency are retranslated at the foreign exchange rates ruling at the balance sheet date. Exchange gains and losses are recognized in profit or loss. Non-monetary Non-monetary The results of overseas entities are translated into RMB at the exchange rates approximating the foreign exchange rate ruling at the dates of transactions. Balance sheet items are translated into RMB at the exchange rates ruling at the balance sheet date. The resulting exchange differences are recognized in other comprehensive income and accumulated separately in equity in the exchange reserve. On disposal of an overseas entity, the cumulative amount of the exchange differences relating to that particular foreign operation is reclassified from equity to profit or loss. For the purpose of the consolidated statements of cash flows, the cash flows of overseas entities within the Group are translated into RMB by using the exchange rates approximating the foreign exchange rate ruling at the dates of the cash flows. |
Related parties | (y) Related parties (a) A person, or a close member of that person’s family, is related to the Group if that person: (i) has control or joint control of the Group; (ii) has significant influence over the Group; or (iii) is a member of the key management personnel of the Group or the Group’s parent. (b) An entity is related to the Group if any of the following conditions applies: (i) The entity and the Group are members of the same group (which means that each parent, subsidiary and fellow subsidiary is related to the others); (ii) One entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member); (iii) Both entities are joint ventures of the same third party; (iv) One entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) The entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group; (vi) The entity is controlled or jointly controlled by a person identified in note 2(y)(a); or (vii) A person identified in note 2(y)(a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity). Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity. |
Segment reporting | (z) Segment reporting An operating segment is a component of the Group that engages in business activities from which the Group may earn revenue and incur expenses, and is identified on the basis of the internal financial reports that are provided to and regularly reviewed by the Group’s Chief Operating Decision Maker (“CODM”) in order to allocate resources and assess performance of the segment. The CODM has been identified as the Executive Directors of the Company. For the years presented, the Group as a whole is an operating segment since the Group is only engaged in telecommunications and related businesses. No geographical information has been disclosed as the majority of the Group’s operating activities are carried out in Mainland China. The Group’s assets located and operating revenue derived from activities outside Mainland China are less than 5% of the Group’s assets and operating revenue, respectively. |
Dividend distribution | (aa) Dividend distribution Dividend distribution to the Company’s shareholders is recognized as a liability in the Group’s financial statements in the period in which the dividends are approved by the Company’s shareholders or directors, where appropriate. |
Significant Accounting Polici49
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Estimated Useful Lives of Property, Plant and Equipment | Depreciation is calculated to write off the cost of items of property, plant and equipment, less their estimated residual value, if any, using the straight-line method over their estimated useful lives as follows: Buildings 8 - 30 years Telecommunications transceivers, switching centers, transmission and other network equipment 5 - 10 years Office equipment, furniture, fixtures and others 3 - 10 years |
Operating Revenue (Tables)
Operating Revenue (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Operating Revenue | 2017 2016 2015 Million Million Million Revenue from telecommunications services Voice services 156,918 209,949 261,896 Data services 493,350 394,937 303,425 Others 18,083 18,536 18,768 668,351 623,422 584,089 Revenue from sales of products and others 72,163 84,999 84,246 740,514 708,421 668,335 |
Employee Benefit and Related 51
Employee Benefit and Related Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Employee Benefit and Related Expenses | 2017 2016 2015 Million Million Million Salaries, wages, labor service expenses and other benefits 74,427 69,546 67,622 Retirement costs: contributions to defined contribution retirement plans 11,086 9,917 7,183 85,513 79,463 74,805 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Other Operating Expenses | 2017 2016 2015 Note Million Million Million Maintenance 55,737 53,852 53,991 Impairment loss of doubtful accounts 3,392 3,734 4,839 Write-down of inventories 297 282 272 Amortization of other intangible assets 515 499 274 Operating lease charges - land and buildings 11,453 11,628 13,447 - others (i) 3,698 4,248 6,186 Loss/(gain) on disposal of property, plant and equipment 8 (180 ) (4 ) Write-off 12,593 7,216 7,614 Power and utilities expenses 30,518 29,461 27,134 Operation support and research and development expenses (ii) 38,016 32,296 27,209 Auditors’ remuneration - audit services (iii) 107 103 97 - tax services 3 1 1 - other services 12 9 4 Others (iv) 25,894 23,924 21,229 182,243 167,073 162,293 Note: (i) Other operating lease charges represent the operating lease charges for motor vehicles, computer and other office equipment. (ii) Operation support and research and development expenses mainly include support expenses for new business operation, research and development cost for new technology evolution, amortization of testing equipment, and other related costs. (iii) Audit services include reporting on the Group’s internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act of the United States of America with the service fee amount of RMB22,000,000 (2016: RMB22,000,000; 2015: RMB20,000,000). (iv) Others consist of administrative expenses, property management expenses, taxes and surcharges, and other miscellaneous expenses. |
Other Gains (Tables)
Other Gains (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Other Gains | 2017 2016 2015 Million Million Million Penalty and compensation income 1,118 764 658 Dividend income from unlisted securities — — 11 Others 1,271 1,204 1,131 2,389 1,968 1,800 |
Finance Costs (Tables)
Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Finance Costs | 2017 2016 2015 Million Million Million Interest on bonds 187 228 257 Interest on bank deposits received and entrusted loans (note 35(a)) 21 7 194 Others 2 — 4 210 235 455 |
Directors' Remuneration (Tables
Directors' Remuneration (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Directors' Remuneration | Directors’ remuneration during 2017 is as follows: Directors’ Salaries, Contributions 2017 ’000 ’000 ’000 ’000 Executive directors (Expressed in RMB) SHANG Bing — 781 123 904 LI Yue (Chief Executive Officer) — 781 151 932 LIU Aili* — 592 110 702 SHA Yuejia — 702 148 850 DONG Xin** — 695 145 840 — 3,551 677 4,228 Independent non-executive directors (Expressed in Hong Kong WONG Kwong Shing, Frank 470 — — 470 CHENG Mo Chi, Moses 460 — — 460 CHOW Man Yiu, Paul 455 — — 455 YIU Kin Wah, Stephen*** 255 — — 255 1,640 — — 1,640 Directors’ remuneration during 2016 is as follows: Directors’ Salaries, Contributions 2016 ’000 ’000 ’000 ’000 Executive directors (Expressed in RMB) SHANG Bing # — 498 122 620 LI Yue (Chief Executive Officer) — 717 147 864 LIU Aili — 662 141 803 XUE Taohai ## — 646 143 789 SHA Yuejia — 662 141 803 — 3,185 694 3,879 Independent non-executive directors (Expressed in Hong Kong LO Ka Shui ### 130 — — 130 WONG Kwong Shing, Frank 470 — — 470 CHENG Mo Chi, Moses 452 — — 452 CHOW Man Yiu, Paul 405 — — 405 1,457 — — 1,457 Directors’ remuneration during 2015 is as follows: Directors’ Salaries, Contributions 2015 ’000 ’000 ’000 ’000 Executive directors (Expressed in RMB) SHANG Bing 1 — 107 30 137 XI Guohua 2 — 377 113 490 LI Yue (Chief Executive Officer) — 437 138 575 LIU Aili — 365 133 498 XUE Taohai — 387 135 522 HUANG Wenlin 3 — 139 21 160 SHA Yuejia — 365 133 498 — 2,177 703 2,880 Independent non-executive directors (Expressed in Hong Kong LO Ka Shui 325 — — 325 WONG Kwong Shing, Frank 470 — — 470 CHENG Mo Chi, Moses 440 — — 440 CHOW Man Yiu, Paul 330 — — 330 1,565 — — 1,565 * Mr. LIU Aili resigned from the position as executive director of the Company with effect from September 29, 2017. ** Mr. DONG Xin was appointed as an executive director of the Company with effect from March 23, 2017. *** Mr. Stephen YIU Kin Wah was appointed as an independent non-executive # The unpaid portion of executive directors’ performance related bonuses for 2015 was included in executive directors’ salaries, allowances and bonuses in 2016. Mr. SHANG Bing has been serving the Company since September 2015. ## Mr. XUE Taohai resigned from the position as executive director of the Company with effect from March 23, 2017. ### Mr. LO Ka Shui resigned from the position as independent non-executive 1 Mr. SHANG Bing was appointed as an executive director and chairman of the Company with effect from September 10, 2015. 2 Mr. XI Guohua resigned from the position as executive director and chairman of the Company with effect from August 24, 2015. 3 Madam HUANG Wenlin resigned from the position as executive director of the Company with effect from March 19, 2015. |
Individuals with Highest Emol56
Individuals with Highest Emoluments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Emoluments Payable to the Five Individuals with Highest Emoluments | The emoluments payable to the five individuals with highest emoluments during 2015, 2016 and 2017 are as follows: 2017 2016 2015 ’000 ’000 ’000 Salaries, allowances and benefits in kind 5,259 5,602 8,135 Performance related bonuses 4,014 2,029 1,814 Retirement scheme contributions 158 157 148 9,431 7,788 10,097 |
Emoluments by Bands | The emoluments fell within the following bands: 2017 2016 2015 Number of Number of Number of Emolument bands 1,500,001 - 2,000,000 3 5 4 2,000,001 - 2,500,000 2 — 1 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Taxation in Consolidated Statements of Comprehensive Income | (a) Taxation in the consolidated statements of comprehensive income represents: 2017 2016 2015 Note Million Million Million Current tax Provision for Hong Kong profits tax on the estimated assessable profits for the year (i ) 260 193 164 Provision for the PRC enterprise income tax on the estimated taxable profits for the year (ii ) 36,945 39,709 39,588 37,205 39,902 39,752 Deferred tax Origination and reversal of temporary differences (note 20) (iii ) (3,482 ) (4,279 ) (4,673 ) 33,723 35,623 35,079 Note: (i) The provision for Hong Kong profits tax is calculated at 16.5% (2016: 16.5%; 2015: 16.5%) of the estimated assessable profits for the year ended December 31, 2017. (ii) The provision for the PRC enterprise income tax is based on the statutory tax rate of 25% (2016: 25%; 2015: 25%) on the estimated taxable profits determined in accordance with the relevant income tax rules and regulations of the PRC for the year ended December 31, 2017. Certain subsidiaries of the Company enjoy the preferential tax rate of 15% (2016: 15%; 2015: 15%). (iii) Deferred taxes of the Group are recognized based on tax rates that are expected to apply to the periods when the temporary differences are realized or settled. (iv) On April 22, 2009, SAT issued the “Notice regarding Matters on Determination of Tax Residence Status of Chinese-controlled Offshore Incorporated Enterprises under Rules of Effective Management” (“2009 Notice”). The Company is qualified as a PRC offshore-registered resident enterprise for purposes of the 2009 Notice. In accordance with the 2009 Notice and the PRC enterprise income tax law, the dividend income of the Company from its subsidiaries in the PRC is exempted from PRC enterprise income tax. |
Reconciliation Between Income Tax Expense and Accounting Profit at Applicable Tax Rates | (b) Reconciliation between income tax expense and accounting profit at applicable tax rates: 2017 2016 2015 Million Million Million Profit before taxation 148,137 144,462 143,734 Notional tax on profit before tax, calculated at the PRC’s statutory tax rate of 25% (Note) 37,034 36,116 35,934 Tax effect of non-taxable - Share of profit of investments accounted for using the equity method (2,487 ) (2,159 ) (2,023 ) - Interest income (41 ) (22 ) (31 ) Tax effect of non-deductible 772 798 986 Tax effect of non-deductible 70 76 68 Rate differential of certain PRC operations (note 12(a)(ii)) (2,317 ) (1,580 ) (1,576 ) Rate differential on Hong Kong operations (note 12(a)(i)) (182 ) (133 ) (122 ) Tax effect of deductible temporary difference for which no deferred tax asset was recognized 154 1,562 98 Tax effect of deductible tax loss for which no deferred tax asset was recognized 818 1,349 356 Tax effect on the eliminated unrealized profits related to the transfer of Tower Assets — — 1,547 Others (98 ) (384 ) (158 ) Taxation 33,723 35,623 35,079 Note: The PRC’s statutory tax rate is adopted as the majority of the Group’s operations are subject to this rate. |
Tax Credited/(Charged) Relating to Components of Other Comprehensive Income | (c) The tax credited/(charged) relating to components of other comprehensive income is as follows: 2017 2016 2015 Before Tax After Before Tax After Before Tax After Million Million Million Million Million Million Million Million Million Change in value of available-for-sale (7 ) 2 (5 ) 32 (8 ) 24 — — — Currency translation differences (735 ) — (735 ) 774 — 774 603 — 603 Share of other comprehensive (loss)/income of investments accounted for using the equity method (1,038 ) — (1,038 ) (1,059 ) — (1,059 ) 901 — 901 Other comprehensive (loss)/income (1,780 ) 2 (1,778 ) (253 ) (8 ) (261 ) 1,504 — 1,504 Current tax — — — Deferred tax 2 (8 ) — 2 (8 ) — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Weighted Average Number of Shares - Basic and Diluted | Weighted average number of shares 2017 2016 2015 Number of shares Number of shares Number of shares Issued shares as of January 1 20,475,482,897 20,475,482,897 20,438,426,514 Effect of share options exercised — — 34,692,574 Weighted average number of shares in issue during the year 20,475,482,897 20,475,482,897 20,473,119,088 Weighted average number of shares (diluted) 2017 2016 2015 Number of shares Number of shares Number of shares Weighted average number of shares in issue during the year 20,475,482,897 20,475,482,897 20,473,119,088 Dilutive equivalent shares arising from share options — — 6,586,675 Weighted average number of shares (diluted) during the year 20,475,482,897 20,475,482,897 20,479,705,763 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Property, Plant and Equipment | Buildings Telecommunications Office Total Million Million Million Million Cost: As of January 1, 2016 129,460 1,174,803 22,784 1,327,047 Transferred from construction in progress 8,476 172,502 2,267 183,245 Other additions 214 2,367 287 2,868 Disposals (1,048 ) (5,017 ) (138 ) (6,203 ) Assets written-off (308 ) (58,650 ) (2,210 ) (61,168 ) Exchange differences 129 262 1 392 As of December 31, 2016 136,923 1,286,267 22,991 1,446,181 As of January 1, 2017 136,923 1,286,267 22,991 1,446,181 Transferred from construction in progress 10,577 174,250 833 185,660 Other additions 820 962 1,193 2,975 Disposals (72 ) (181 ) (109 ) (362 ) Assets written-off (331 ) (38,971 ) (1,117 ) (40,419 ) Exchange differences (141 ) (359 ) (4 ) (504 ) As of December 31, 2017 147,776 1,421,968 23,787 1,593,531 Accumulated depreciation and impairment: As of January 1, 2016 36,825 689,564 15,027 741,416 Charge for the year 5,310 129,915 2,945 138,170 Written back on disposals (446 ) (2,336 ) (68 ) (2,850 ) Assets written-off (203 ) (51,108 ) (1,805 ) (53,116 ) Exchange differences 16 186 3 205 As of December 31, 2016 41,502 766,221 16,102 823,825 As of January 1, 2017 41,502 766,221 16,102 823,825 Charge for the year 5,695 143,026 1,227 149,948 Written back on disposals (58 ) (45 ) (105 ) (208 ) Assets written-off (299 ) (26,465 ) (1,068 ) (27,832 ) Exchange differences (20 ) (208 ) (3 ) (231 ) As of December 31, 2017 46,820 882,529 16,153 945,502 Net book value: As of December 31, 2017 100,956 539,439 7,634 648,029 As of December 31, 2016 95,421 520,046 6,889 622,356 |
Construction in Progress (Table
Construction in Progress (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Construction in Progress | 2017 2016 Million Million As of January 1 89,853 88,012 Additions 173,919 185,086 Transferred to property, plant and equipment (185,660 ) (183,245 ) As of December 31 78,112 89,853 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Goodwill | 2017 2016 Million Million Cost and carrying amount: As of January 1 and December 31 35,343 35,343 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Subsidiaries | The following list contains only the particulars of subsidiaries as of December 31, 2017, which principally affected the results, assets or liabilities of the Group. The class of shares held is ordinary unless otherwise stated. Place of Proportion of incorporation/ Particulars ownership interest establishment of issued and Held by the Held by a Name of company* and operation paid up capital Company subsidiary Principal activity China Mobile Communication (BVI) Limited British Virgin Islands(“BVI”) HK$1 100% — Investment holding company CMC** Mainland China RMB1,641,848,326 — 100% Network and business coordination center China Mobile Group Guangdong Co., Ltd. (“Guangdong Mobile”) Mainland China RMB5,594,840,700 — 100% Telecommunications operator China Mobile Group Zhejiang Co., Ltd. Mainland China RMB2,117,790,000 — 100% Telecommunications operator China Mobile Group Jiangsu Co., Ltd. Mainland China RMB2,800,000,000 — 100% Telecommunications operator China Mobile Group Fujian Co., Ltd. Mainland China RMB5,247,480,000 — 100% Telecommunications operator China Mobile Group Henan Co., Ltd. Mainland China RMB4,367,733,641 — 100% Telecommunications operator China Mobile Group Hainan Co., Ltd. Mainland China RMB643,000,000 — 100% Telecommunications operator China Mobile Group Beijing Co., Ltd. Mainland China RMB6,124,696,053 — 100% Telecommunications operator China Mobile Group Shanghai Co., Ltd. Mainland China RMB6,038,667,706 — 100% Telecommunications operator China Mobile Group Tianjin Co., Ltd. Mainland China RMB2,151,035,483 — 100% Telecommunications operator China Mobile Group Hebei Co., Ltd. Mainland China RMB4,314,668,600 — 100% Telecommunications operator China Mobile Group Liaoning Co., Ltd. Mainland China RMB5,140,126,680 — 100% Telecommunications operator China Mobile Group Shandong Co., Ltd. Mainland China RMB6,341,851,146 — 100% Telecommunications operator China Mobile Group Guangxi Co., Ltd. Mainland China RMB2,340,750,100 — 100% Telecommunications operator China Mobile Group Anhui Co., Ltd. Mainland China RMB4,099,495,494 — 100% Telecommunications operator China Mobile Group Jiangxi Co., Ltd. Mainland China RMB2,932,824,234 — 100% Telecommunications operator China Mobile Group Chongqing Co., Ltd. Mainland China RMB3,029,645,401 — 100% Telecommunications operator Place of Proportion of incorporation/ Particulars ownership interest establishment of issued and Held by the Held by a Name of company* and operation paid up capital Company subsidiary Principal activity China Mobile Group Sichuan Co., Ltd. Mainland China RMB7,483,625,572 — 100% Telecommunications operator China Mobile Group Hubei Co., Ltd. Mainland China RMB3,961,279,556 — 100% Telecommunications operator China Mobile Group Hunan Co., Ltd. Mainland China RMB4,015,668,593 — 100% Telecommunications operator China Mobile Group Shaanxi Co., Ltd. Mainland China RMB3,171,267,431 — 100% Telecommunications operator China Mobile Group Shanxi Co., Ltd. Mainland China RMB2,773,448,313 — 100% Telecommunications operator China Mobile Group Neimenggu Co., Ltd. Mainland China RMB2,862,621,870 — 100% Telecommunications operator China Mobile Group Jilin Co., Ltd. Mainland China RMB3,277,579,314 — 100% Telecommunications operator China Mobile Group Heilongjiang Co., Ltd. Mainland China RMB4,500,508,035 — 100% Telecommunications operator China Mobile Group Guizhou Co., Ltd. Mainland China RMB2,541,981,749 — 100% Telecommunications operator China Mobile Group Yunnan Co., Ltd. Mainland China RMB4,137,130,733 — 100% Telecommunications operator China Mobile Group Xizang Co., Ltd. Mainland China RMB848,643,686 — 100% Telecommunications operator China Mobile Group Gansu Co., Ltd. Mainland China RMB1,702,599,589 — 100% Telecommunications operator China Mobile Group Qinghai Co., Ltd. Mainland China RMB902,564,911 — 100% Telecommunications operator China Mobile Group Ningxia Co., Ltd. Mainland China RMB740,447,232 — 100% Telecommunications operator China Mobile Group Xinjiang Co., Ltd. Mainland China RMB2,581,599,600 — 100% Telecommunications operator China Mobile Group Design Institute Co., Ltd. Mainland China RMB160,232,500 — 100% Provision of telecommunications network planning design and consulting services Place of Proportion of incorporation/ Particulars ownership interest establishment and of issued and Held by the Held by a Name of company* operation paid up capital Company subsidiary Principal activity China Mobile Holding Company Limited** Mainland China US$30,000,000 100% — Investment holding company China Mobile (Shenzhen) Limited** Mainland China US$7,633,000 — 100% Provision of roaming clearance services Aspire Holdings Limited Cayman Islands HK$93,964,583 66.41% — Investment holding company Aspire (BVI) Limited # BVI US$1,000 — 100% Investment holding company Aspire Technologies (Shenzhen) Limited** # Mainland China US$10,000,000 — 100% Technology platform development and maintenance Aspire Information Network (Shenzhen) Limited** # Mainland China US$5,000,000 — 100% Provision of mobile data solutions, system integration and development Aspire Information Technologies (Beijing) Limited** # Mainland China US$5,000,000 — 100% Technology platform development and maintenance Fujian FUNO Mobile Communication Technology Company Limited*** Mainland China US$3,800,000 — 51% Network construction and maintenance, network planning and optimizing, training and communication services Advanced Roaming & Clearing House Limited BVI US$2 100% — Provision of roaming clearance services Fit Best Limited BVI US$1 100% — Investment holding company China Mobile Hong Kong Company Limited Hong Kong HK$951,046,930 — 100% Provision of telecommunications and related services China Mobile International Holdings Limited Hong Kong HK$16,495,670,000 100% — Investment holding company China Mobile International Limited Hong Kong HK$6,400,000,000 — 100% Provision of voice and roaming clearance services, Internet services and value-added services China Mobile Group Device Co., Ltd. Mainland China RMB6,200,000,000 — 99.97% Provision of electronic communication products design and sale of related products Place of Proportion of incorporation/ Particulars ownership interest establishment and of issued and Held by the Held by a Name of company* operation paid up capital Company subsidiary Principal activity China Mobile Group Finance Co., Ltd. (“China Mobile Finance”) Mainland China RMB11,627,783,669 — 92% Provision of non-banking China Mobile IoT Company Limited Mainland China RMB1,000,000,000 — 100% Provision of network services China Mobile (Suzhou) Software Technology Co., Ltd. Mainland China RMB980,000,000 — 100% Provision of computer hardware and software research and development services China Mobile (Hangzhou) Information Technology Co., Ltd. Mainland China RMB1,150,000,000 — 100% Provision of computer hardware and software research and development services China Mobile Online Services Co., Ltd. Mainland China RMB50,000,000 — 100% Provision of call center services MIGU Company Limited Mainland China RMB7,000,000,000 — 100% Provision of Mobile Internet digital content services CM TieTong Mainland China RMB31,880,000,000 — 100% Provision of telecommunications services China Mobile Internet Company Limited Mainland China RMB2,000,000,000 — 100% Provision of value added telecommunications services China Mobile Investment Holdings Company Limited Mainland China RMB330,000,000 — 100% Investment holding company China Mobile Quantong System Integration Co., Ltd. Mainland China RMB550,000,000 — 100% Provision of computer system integration, construction, maintenance and related technology development services * The nature of all the legal entities established in the Mainland China is limited liability company. ** Companies registered as wholly owned foreign enterprises in the Mainland China. *** Company registered as a sino-foreign equity joint venture in the Mainland China. # Effective interest held by the Group is 66.41%. |
Investments Accounted for Usi63
Investments Accounted for Using the Equity Method (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Investments Accounted for Using the Equity Method | The amounts recognized in the consolidated balance sheets are as follows: As of As of December 31, December 31, Million Million Associates 131,636 123,255 Joint ventures 863 784 132,499 124,039 |
Details of Major Associates | Details of major associates are as follows: Name of associate Place of incorporation/ establishment and operation Proportion of ownership interest held by the Company or its subsidiary Principal Activity Unlisted company China Tower PRC 38% Construction, maintenance and operation of telecommunications towers Listed company Shanghai Pudong Development Bank Co., Ltd. (“SPD Bank”) (Note) PRC 18% Provision of banking services IFLYTEK Co., Ltd. (“IFLYTEK”) PRC 13% Provision of Chinese speech and technology products and services True Corporation Public Company Limited (“True Corporation”) Thailand 18% Provision of Note: The Group’s shareholding percentage in SPD Bank has been diluted from 18.98% to 18.18% as a result from SPD Bank’s issuance of new ordinary shares to other companies in 2017. Up to the release day of these financial statements, SPD Bank has not yet announced its audited annual results for the year ended December 31, 2017, therefore, the Group has recognized its share of SPD Bank’s comprehensive income for the year 2017 based on the financial information which was already released by SPD Bank and publicly disclosed, with some information such as total liabilities and total equity not provided. |
Summary Financial Information on Principal Associates | SPD Bank As of December 31 2017 2016 Million Million Total assets 6,135,061 5,857,263 Total liabilities — 5,484,329 Total equity — 372,934 Total equity attributable to ordinary equity shareholders 395,466 338,027 Percentage of ownership of the Group 18% 19% Total equity attributable to the Group 71,896 64,158 The impact of fair value adjustments at the time of acquisition and goodwill 6,663 7,780 Interest in associates 78,559 71,938 IFLYTEK True Corporation China Tower As of December 31 As of December 31 As of December 31 2017 2016 2017 2016 2017 2016 Million Million Million Million Million Million Total current assets 7,329 5,533 23,566 23,135 30,517 39,565 Total non-current 6,151 4,881 69,511 61,532 292,125 272,103 Total current liabilities 4,428 2,521 39,589 30,333 150,438 171,568 Total non-current 1,042 674 26,643 29,492 44,710 14,548 Total equity 8,010 7,219 26,845 24,842 127,494 125,552 Total equity attributable to equity shareholders 7,759 7,061 26,711 24,714 127,494 125,552 Percentage of ownership of the Group 13% 14% 18% 18% 38% 38% Total equity attributable to the Group 1,047 962 4,808 4,449 48,448 47,710 The impact of fair value adjustments at the time of acquisition and goodwill 805 814 2,664 2,847 — — Elimination of unrealized profits resulting from the transfer of Tower Assets and its realization — — — — (4,856 ) (5,474 ) Interest in associates 1,852 1,776 7,472 7,296 43,592 42,236 SPD Bank IFLYTEK 2017 2016 2015 2017 2016 2015 Million Million Million Million Million Million Revenue 168,619 160,792 146,550 5,458 3,320 2,501 Profit before taxation 69,785 69,975 66,877 584 561 465 Profit attributable to ordinary equity shareholders for the year 52,515 51,374 49,704 428 484 425 Other comprehensive (loss)/income (5,568 ) (5,480 ) 4,458 — — — Total comprehensive income 46,947 45,894 54,162 428 484 425 Dividends received from associates 821 1,921 2,824 18 18 18 True Corporation China Tower 2017 2016 2015 2017 2016 2015 Million Million Million Million Million Million Revenue 28,262 23,520 21,416 68,665 54,474 10,325 Profit/(loss) before taxation 726 (437 ) 839 2,685 (776 ) (3,864 ) Profit/(loss) for the year 465 (531 ) 795 1,943 (575 ) (2,944 ) Other comprehensive income/(loss) 32 (87 ) — — — — Total comprehensive income/(loss) 497 (618 ) 795 1,943 (575 ) (2,944 ) Dividends received from associates — 5 — — — — |
Fair Value of Interests in Listed Associates | As of December 31, As of December 31, Carrying Fair Carrying Fair Million Million Million Million SPD Bank 78,559 67,166 71,938 66,522 IFLYTEK 1,852 10,598 1,776 4,854 True Corporation 7,472 7,450 7,296 8,297 Interest in listed associates 87,883 85,214 81,010 79,673 |
Deferred Tax Assets and Liabi64
Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Analysis of Deferred Tax Assets and Liabilities | The analysis of deferred tax assets and liabilities are as follows: As of As of Million Million Deferred tax assets: - Deferred tax asset to be recovered after 12 months 8,236 6,607 - Deferred tax asset to be recovered within 12 months 25,107 23,160 33,343 29,767 Deferred tax liabilities: - Deferred tax liabilities to be settled after 12 months (258 ) (248 ) - Deferred tax liabilities to be settled within 12 months (104 ) (44 ) (362 ) (292 ) |
Deferred Tax Assets and Liabilities Recognized and Movements During the Period | Deferred tax assets and liabilities recognized and the movements during 2017 As of (Charged)/ profit or loss Credited to Exchange As of Million Million Million Million Million Deferred tax assets arising from: Write-down for obsolete inventories 175 (55 ) — — 120 Write-off 4,538 2,544 — — 7,082 Accrued operating expenses 17,969 965 — — 18,934 Deferred revenue from Reward Program 5,796 147 — — 5,943 Impairment loss for doubtful accounts 1,297 (27 ) — — 1,270 Change in value of available-for-sale (8 ) — 2 — (6 ) 29,767 3,574 2 — 33,343 Deferred tax liabilities arising from: Depreciation allowance in excess of related depreciation (292 ) (92 ) — 22 (362 ) Total 29,475 3,482 2 22 32,981 Deferred tax assets and liabilities recognized and the movements during 2016 As of (Charged)/ credited to Charged to other Exchange As of Million Million Million Million Million Deferred tax assets arising from: Write-down for obsolete inventories 217 (42 ) — — 175 Write-off and impairment of certain network 4,152 386 — — 4,538 Accrued operating expenses 14,125 3,844 — — 17,969 Deferred revenue from Reward Program 5,350 446 — — 5,796 Impairment loss for doubtful accounts 1,579 (282 ) — — 1,297 Change in value of available-for-sale financial — — (8 ) — (8 ) 25,423 4,352 (8 ) — 29,767 Deferred tax liabilities arising from: Depreciation allowance in excess of related depreciation (203 ) (73 ) — (16 ) (292 ) Total 25,220 4,279 (8 ) (16 ) 29,475 |
Available-for-sale Financial 65
Available-for-sale Financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Available-for-sale Financial Assets | As of As of Note Million Million Equity investments (i) 44 35 Wealth management products issued by banks (ii) 65,630 31,897 65,674 31,932 Less: current portion (65,630 ) (31,897 ) Non-current 44 35 Note: (i) The equity investments represent the Group’s investments in other companies at fair values (level 1: quoted price (unadjusted) in active markets; or level 3: inputs for the assets or liability that are not based on observable market data (that is, unobservable inputs)) through other comprehensive income as of December 31, 2017. (ii) The wealth management products issued by banks will mature within one year with variable return rates indexed to the performance of underlying assets. As of December 31, 2017, the carrying amount approximated the fair value (level 3 of fair value hierarchy). The fair values are based on cash flow discounted assuming the expected return will be obtained upon maturity. |
Restricted Bank Deposits (Table
Restricted Bank Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Restricted Bank Deposits | As of December 31, 2017 As of December 31, 2016 Non-current Current Total Non-current Current Total Million Million Million Million Million Million Restricted bank deposits - Statutory deposit reserves (Note) 3,453 — 3,453 4,527 — 4,527 - Deposited customer reserves (Note) 3,047 — 3,047 — — — - Pledged bank deposits 4 691 695 1 197 198 6,504 691 7,195 4,528 197 4,725 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Inventories | As of As of December 31, December 31, Million Million SIM cards, handsets and other terminals 8,357 7,696 Other consumables 1,865 1,136 10,222 8,832 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) - Trade receivables [member] | 12 Months Ended |
Dec. 31, 2017 | |
Aging Analysis of Accounts Receivable, Net of Allowance for Impairment Loss of Doubtful Accounts | Aging analysis of accounts receivable, net of allowance for impairment loss of doubtful accounts is as follows: As of As of December 31, December 31, Million Million Within 30 days 13,711 10,974 31 - 60 days 3,002 2,726 61 - 90 days 1,798 1,540 Over 90 days 5,642 3,805 24,153 19,045 |
Summary of Changes in Impairment Loss of Doubtful Accounts | The following table summarizes the changes in impairment loss of doubtful accounts: 2017 2016 Million Million As of January 1 5,762 6,549 Impairment loss recognized 3,415 3,797 Accounts receivable written off (3,509 ) (4,584 ) As of December 31 5,668 5,762 |
Aging Analysis of Accounts Receivable that are Past Due but not Impaired | The aging analysis of the accounts receivable that are past due but not impaired is as follows: As of As of December 31, December 31, Million Million Past due within 1 month 848 577 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Cash and Cash Equivalents | As of As of December 31, December 31, Million Million Bank deposits with original maturity within three months 5,907 15,115 Cash at banks and in hand 114,729 75,298 120,636 90,413 |
Interest-Bearing Borrowings (Ta
Interest-Bearing Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Interest Bearing Borrowings | As of As of December 31, December 31, Million Million Bonds — 4,998 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Aging Analysis of Accounts Payable | The aging analysis of accounts payable is as follows: As of As of December 31, December 31, Million Million Payable in the periods below: Within 1 month or on demand 201,429 215,775 After 1 month but within 3 months 13,086 14,677 After 3 months but within 6 months 7,660 8,231 After 6 months but within 9 months 2,761 4,342 After 9 months but within 12 months 8,233 7,813 233,169 250,838 |
Deferred Revenue (Tables)
Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Deferred Revenue | Deferred revenue primarily includes prepaid service fees received from customers and unredeemed point rewards. 2017 2016 Million Million As of January 1 - Current portion 84,289 78,100 - Non-current 2,175 1,291 Additions during the year 352,011 359,626 Recognized in the consolidated statements of comprehensive income (350,305 ) (352,553 ) As of December 31 88,170 86,464 Less: Current portion (85,282 ) (84,289 ) Non-current 2,888 2,175 |
Accrued Expenses and Other Pa73
Accrued Expenses and Other Payables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Accrued Expenses And Other Payables | As of As of December 31, December 31, Million Million Receipts-in-advance 73,583 75,819 Other payables 26,643 24,523 Accrued salaries, wages, labor service expenses and other benefits 6,535 6,241 Accrued expenses 84,105 74,367 190,866 180,950 |
Capital, Reserves and Dividen74
Capital, Reserves and Dividends (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Share Capital | Ordinary shares, issued and fully paid: Equivalent Number HK$ RMB of shares Million Million As of January 1 and December 31, 2016 and 2017 20,475,482,897 382,263 402,130 |
Summary of Dividends | (b) Dividends (i) Dividends attributable to the year: 2017 Million 2016 Million 2015 Million Ordinary interim dividend declared and paid of HK$1.623 (equivalent to approximately RMB1.409) (2016: HK$1.489 (equivalent to approximately RMB1.273); 2015: HK$1.525 (equivalent to approximately RMB1.203)) per share 28,211 26,227 25,629 Special dividend declared and paid of HK$3.200 (equivalent to approximately RMB2.777) per share 55,621 — — Ordinary final dividend proposed after the balance sheet date of HK$1.582 (equivalent to approximately RMB1.322) (2016: HK$1.243 (equivalent to approximately RMB1.112); 2015: HK$1.196 (equivalent to approximately RMB1.002)) per share 27,077 22,766 20,516 110,909 48,993 46,145 The proposed ordinary final dividend which is declared in Hong Kong dollar is translated into RMB with reference to the rate HK$1 = RMB0.83591, being the rate announced by the State Administration of Foreign Exchange in the PRC on December 29, 2017 (December 31, 2016: HK$1 = RMB0.89451; December 31, 2015: HK$1 = RMB0.83778). As the ordinary final dividend is declared after the balance sheet date, such dividend is not recognized as liability as of December 31, 2017. In accordance with the 2009 Notice and the PRC enterprise income tax law, the Company is required to withhold enterprise income tax equal to 10% of any dividend when it is distributed to non-resident (ii) Dividends attributable to the previous financial year, approved and paid during the year: 2017 2016 2015 Million Million Million Ordinary final dividend in respect of the previous financial year, approved and paid during the year, of HK$1.243 (equivalent to approximately RMB1.112) (2016: HK$1.196 (equivalent to approximately RMB1.002); 2015: HK$1.380 (equivalent to approximately RMB1.089)) per share 22,204 20,764 22,283 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
China Mobile Communications Corporation [member] | |
Summary of Principal Related Party Transactions | The following is a summary of principal related party transactions entered into by the Group with CMCC Group, for the years ended December 31, 2015, 2016 and 2017. 2017 2016 2015 Note Million Million Million Telecommunications services revenue (i) 47 159 474 Property leasing and management services revenue (ii) 188 197 191 Property leasing and management services charges (ii) 999 976 956 Network assets leasing charges (iii) 2,494 2,738 4,376 Network capacity leasing charges (iii) 1,047 2,696 4,757 Entrusted loans received (iv) — — 8,592 Entrusted loans repaid (iv) — — 18,834 Short-term bank deposits received (iv) 8,611 5,552 7,274 Short-term bank deposits repaid (iv) 5,552 7,274 4,181 Interest expenses (iv) 21 7 194 Note: (i) The amounts represent telecommunications services settlement received/receivable from CMCC Group for the telecommunications project planning, design and construction services, telecommunications line and pipeline construction services, and telecommunications line maintenance services. (ii) The amount represents the rental and property management fees received/receivable from or paid/payable to CMCC Group in respect of offices, retail outlets and warehouses. (iii) The amounts represent the network assets leasing settlement paid/payable to CMCC Group, and the TD-SCDMA TD-SCDMA (iv) The amounts represent the entrusted loans/bank deposits received from or repaid to CMCC and interest expenses paid/payable to CMCC in respect of the entrusted loans/bank deposits. |
Amounts Due from (to) Related Party | Amounts due from/to CMCC Group, other than amount due from/to ultimate holding company, are included in the following accounts captions summarized as follows: As of As of Million Million Accounts receivable 301 354 Other receivables 116 105 Accounts payable 4,580 4,251 Accrued expenses and other payables 131 88 |
Associates and joint ventures [member] | |
Summary of Principal Related Party Transactions | The Group has entered into transactions with associates and joint venture of the Group or CMCC Group. The major transactions entered into by the Group and these companies and amounts due from/to these companies are as follows: As of As of Note Million Million Accounts receivable (i) 313 29 Interest receivable (ii) 997 2,134 Other receivables (iii) 12,565 9,862 Proceeds receivable for the transfer of Tower Assets (note 7) — 57,152 Prepayments and other current assets 51 17 Available-for-sale (iii) 31,778 17,222 Bank deposits (iii) 62,969 37,631 Accounts payable (iv) 4,479 4,076 Accrued expenses and other payables (iv) 5,429 4,185 2017 2016 2015 Note Million Million Million Telecommunications services revenue (i) 828 637 767 Telecommunications services charges (v) — 422 774 Property leasing and management services revenue (vi) 99 1 6 Gain on the transfer of Tower Assets (iv) — — 15,525 Charges for use of tower assets (iv) 36,335 28,144 5,563 Interest income (ii) 4,807 4,140 1,699 Dividend income 847 1,944 2,842 Note: (i) The amounts represent the telecommunications services revenue received/receivable from the Group’s associates. (ii) The amounts primarily represent interest received/receivable from deposits placed with SPD Bank, short-term loans granted by China Mobile Finance to SPD Bank and China Tower, and the proceeds receivable for the transfer of Tower Assets. The interest rate of deposits placed with SPD Bank is determined in accordance with the benchmark interest rate published by PBOC. (iii) Other receivables primarily represent the short-term loans granted by China Mobile Finance to SPD Bank and China Tower, and withholding power and utilities expenses and lease charges due from China Tower, etc.. The loans will mature by or before December 2018. Available-for-sale (iv) The amounts represent the gain arising from the transfer of Tower Assets on October 31, 2015 (note 7) and the charges paid/payable to China Tower for the use of telecommunications towers and related assets (“Leased Tower”). On July 8, 2016, CMC and China Tower finalized the leasing and pricing arrangement in relation to the lease of Leased Tower, and entered into an agreement (the “Lease Agreement”). Accordingly, the respective provincial companies of CMC and China Tower entered into provincial company service agreements for the leasing of individual Leased Tower based on their actual service requirements. Pursuant to the management’s assessment, the 5 years lease terms of the Lease Agreement does not account for the major part of the economic lives of the Leased Tower and the present value of the minimum lease payments is not considered substantial comparing to the fair value of the corresponding Leased Tower. At the end of the lease term, there is no purchase option granted to the Group to purchase the Leased Tower. The Group also does not bear any gains or losses in the fluctuation in the fair value of the Leased Tower at the end of the lease terms. As a result, the Group does not substantially bear the risks and reward incidental to the ownership of the Leased Tower, and hence the Group accounts for the Leased Tower leasing as operating leases. On January 31, 2018, CMC and China Tower unanimously agreed on supplementary provisions to the Lease Agreement (“Supplementary Agreement”). The Supplementary Agreement mainly included: the adjustments to the pricing of tower products, the term of the agreement shall be 5 years, effective from January 1, 2018 and expiring on December 31, 2022. The Supplementary Agreement will not affect the Group’s judgement on operating lease aforementioned. (v) The amount represents the telecommunications services charges paid/payable to Union Mobile Pay Co., Ltd., an associate of CMCC Group until July 2016. (vi) The amount represents the property leasing revenue received/receivable from SPD Bank and China Tower. |
Financial Risk Management and76
Financial Risk Management and Fair Values (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Remaining Contractual Maturities of Financial Liabilities | The following table sets out the remaining contractual maturities at the balance sheet date of the Group’s financial liabilities, which are based on the undiscounted cash flows (including interest payments computed using contractual rates or, if floating, based on prevailing rates at the balance sheet date) and the earliest date the Group would be required to repay: As of December 31, 2017 Carrying Total undiscounted Within 1 year or on Million Million Million Accounts payable 233,169 233,169 233,169 Bills payable 3,303 3,303 3,303 Accrued expenses and other payables 190,866 190,866 190,866 Amount due to ultimate holding company 8,646 8,646 8,646 435,984 435,984 435,984 As of December 31, 2016 Carrying Total undiscounted Within 1 Million Million Million Accounts payable 250,838 250,838 250,838 Bills payable 1,206 1,206 1,206 Accrued expenses and other payables 180,950 180,950 180,950 Amount due to ultimate holding company 5,563 5,563 5,563 Interest-bearing borrowings 4,998 5,185 5,185 443,555 443,742 443,742 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Capital Commitments | The Group’s capital expenditure contracted for as of December 31, but not provided in the consolidated financial statements were as follows: 2017 2016 Million Million Land and buildings 10,950 8,788 Telecommunications equipment 32,112 26,147 43,062 34,935 |
Future Minimum Lease Payments Under Non-cancellable Operating Leases | The total future minimum lease payments under non-cancellable Land and Leased lines and network Others Total Million Million Million Million As of December 31, 2017 Within one year 10,344 46,730 1,023 58,097 After one year but within five years 20,372 112,465 961 133,798 After five years 4,831 1,183 58 6,072 35,547 160,378 2,042 197,967 As of December 31, 2016 Within one year 9,222 40,078 1,184 50,484 After one year but within five years 18,182 119,628 812 138,622 After five years 4,810 860 45 5,715 32,214 160,566 2,041 194,821 |
Condensed Financial Informati78
Condensed Financial Information of the Company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Condensed Statements of Comprehensive Income | (a) Condensed statements of comprehensive income 2017 2016 2015 Million Million Million Dividend income 111,490 49,080 43,848 Operating expenses (77 ) (71 ) (77 ) Interest income 23 11 25 Other (losses)/gains (87 ) 57 61 Finance costs (2 ) (3 ) (3 ) Profit before taxation 111,347 49,074 43,854 Taxation (14 ) (1 ) — PROFIT FOR THE YEAR 111,333 49,073 43,854 Other comprehensive income for the year — — — TOTAL COMPREHENSIVE INCOME FOR THE YEAR 111,333 49,073 43,854 |
Condensed Balance Sheets | (b) Condensed balance sheets As of As of Million Million Non-current 490,256 487,290 Current assets 2,718 2,144 Current liabilities 3,658 5,415 Non-current — — NET ASSETS 489,316 484,019 TOTAL EQUITY 489,316 484,019 |
Condensed Statements of Cash Flows | (c) Condensed statements of cash flows 2017 2016 2015 Million Million Million Net cash used in operating activities (72 ) (69 ) (78 ) Net cash generated from investing activities 28,840 12,900 9,760 Net cash used in financing activities (28,913 ) (12,813 ) (11,964 ) Net increase/(decrease) in cash and cash equivalents (145 ) 18 (2,282 ) Cash and cash equivalents at beginning of year 796 753 3,030 Effect of changes in foreign exchange rate (97 ) 25 5 Cash and cash equivalents at end of year 554 796 753 |
Significant Accounting Polici79
Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017HKD ($) | Nov. 27, 2015CNY (¥) | |
Disclosure of summary of significant accounting policies [line items] | ||
Percentage of employer contributions per Hong Kong Mandatory Provident Fund ("MPF") | 5.00% | |
Percentage of employees contributions per Hong Kong Mandatory Provident Fund ("MPF") | 5.00% | |
Mandatory Provident Fund ("MPF") contributions cap of monthly relevant income | $ | $ 30,000 | |
Top of range [member] | Foreign countries [member] | ||
Disclosure of summary of significant accounting policies [line items] | ||
Foreign assets percentage | 5.00% | |
Foreign operating revenue percentage | 5.00% | |
Target Assets and Businesses [member] | ||
Disclosure of summary of significant accounting policies [line items] | ||
Consideration for the acquisition agreement | ¥ | ¥ 31,967,000,000 |
Significant Accounting Polici80
Significant Accounting Policies - Estimated Useful Lives of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 8 years |
Buildings [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 30 years |
Telecommunications transceivers, switching centers, transmission and other network equipment [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 5 years |
Telecommunications transceivers, switching centers, transmission and other network equipment [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 10 years |
Office equipment, furniture, fixtures and others [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 3 years |
Office equipment, furniture, fixtures and others [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Estimated useful lives of property, plant and equipment | 10 years |
Operating Revenue - Summary of
Operating Revenue - Summary of Operating Revenue (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of products and services [line items] | |||
Revenue from telecommunication services | ¥ 668,351 | ¥ 623,422 | ¥ 584,089 |
Revenue from sales of products and others | 72,163 | 84,999 | 84,246 |
Operating revenue | 740,514 | 708,421 | 668,335 |
Voice services [member] | |||
Disclosure of products and services [line items] | |||
Revenue from telecommunication services | 156,918 | 209,949 | 261,896 |
Data services [member] | |||
Disclosure of products and services [line items] | |||
Revenue from telecommunication services | 493,350 | 394,937 | 303,425 |
Others [member] | |||
Disclosure of products and services [line items] | |||
Revenue from telecommunication services | ¥ 18,083 | ¥ 18,536 | ¥ 18,768 |
Employee Benefit and Related 82
Employee Benefit and Related Expenses - Summary of Employee Benefit and Related Expenses (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Classes of employee benefits expense [abstract] | |||
Salaries, wages, labor service expenses and other benefits | ¥ 74,427 | ¥ 69,546 | ¥ 67,622 |
Retirement costs: contributions to defined contribution retirement plans | 11,086 | 9,917 | 7,183 |
Employee benefit and related expenses | ¥ 85,513 | ¥ 79,463 | ¥ 74,805 |
Other Operating Expenses - Summ
Other Operating Expenses - Summary of Other Operating Expenses (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Maintenance | ¥ 55,737 | ¥ 53,852 | ¥ 53,991 |
Impairment loss of doubtful accounts | 3,392 | 3,734 | 4,839 |
Write-down of inventories | 297 | 282 | 272 |
Amortization of other intangible assets | 515 | 499 | 274 |
Operating lease charges | |||
- land and buildings | 11,453 | 11,628 | 13,447 |
- others | 3,698 | 4,248 | 6,186 |
Loss/(gain) on disposal of property, plant and equipment | 8 | (180) | (4) |
Write-off and impairment of property, plant and equipment | 12,593 | 7,216 | 7,614 |
Power and utilities expenses | 30,518 | 29,461 | 27,134 |
Operation support and research and development expenses | 38,016 | 32,296 | 27,209 |
Auditors' remuneration | |||
- audit services | 107 | 103 | 97 |
- tax services | 3 | 1 | 1 |
- other services | 12 | 9 | 4 |
Other operating expenses - others | 25,894 | 23,924 | 21,229 |
Other operating expenses | ¥ 182,243 | ¥ 167,073 | ¥ 162,293 |
Other Operating Expenses - Su84
Other Operating Expenses - Summary of Other Operating Expenses (Parenthetical) (Detail) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of other operating expenses [line items] | |||
Auditor's remuneration for audit service | ¥ 107,000,000 | ¥ 103,000,000 | ¥ 97,000,000 |
United States [member] | Attestation under s404 of Sarbanes-Oxley Act 2002 [member] | |||
Disclosure of other operating expenses [line items] | |||
Auditor's remuneration for audit service | ¥ 22,000,000 | ¥ 22,000,000 | ¥ 20,000,000 |
Proceeds Receivable for the T85
Proceeds Receivable for the Transfer of Tower Assets - Additional Information (Detail) - China Tower Corporation Limited [member] - CNY (¥) | Feb. 29, 2016 | Oct. 14, 2015 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of associates [line items] | ||||
Percentage of equity interest | 38.00% | 38.00% | ||
Remaining cash consideration, first payment | ¥ 5,000,000,000 | |||
China Mobile Communication Co. Ltd [member] | ||||
Disclosure of associates [line items] | ||||
Percentage of equity interest | 38.00% | |||
China United Network Communications Corporation Limited [member] | ||||
Disclosure of associates [line items] | ||||
Percentage of equity interest | 28.10% | |||
China Telecom Corporation Limited [member] | ||||
Disclosure of associates [line items] | ||||
Percentage of equity interest | 27.90% | |||
China Reform Holdings Corporation Ltd [member] | ||||
Disclosure of associates [line items] | ||||
Percentage of equity interest | 6.00% |
Other Gains - Summary of Other
Other Gains - Summary of Other Gains (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Penalty and compensation income | ¥ 1,118 | ¥ 764 | ¥ 658 |
Dividend income from unlisted securities | 11 | ||
Others | 1,271 | 1,204 | 1,131 |
Other gains | ¥ 2,389 | ¥ 1,968 | ¥ 1,800 |
Finance Costs - Summary of Fina
Finance Costs - Summary of Finance Costs (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Interest on bonds | ¥ 187 | ¥ 228 | ¥ 257 |
Interest on bank deposits received and entrusted loans (note 35(a)) | 21 | 7 | 194 |
Others | 2 | 4 | |
Finance costs | ¥ 210 | ¥ 235 | ¥ 455 |
Directors' Remuneration - Summa
Directors' Remuneration - Summary of Directors' Remuneration (Detail) ¥ in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017HKD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016HKD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015HKD ($) | |
Executive directors [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Salaries, allowances and bonuses | ¥ 3,551 | ¥ 3,185 | ¥ 2,177 | |||
Contributions relating to social insurance, housing fund and retirement scheme | 677 | 694 | 703 | |||
Total | 4,228 | 3,879 | 2,880 | |||
Executive directors [member] | SHANG Bing [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Salaries, allowances and bonuses | 781 | 498 | 107 | |||
Contributions relating to social insurance, housing fund and retirement scheme | 123 | 122 | 30 | |||
Total | 904 | 620 | 137 | |||
Executive directors [member] | LI Yue [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Salaries, allowances and bonuses | 781 | 717 | 437 | |||
Contributions relating to social insurance, housing fund and retirement scheme | 151 | 147 | 138 | |||
Total | 932 | 864 | 575 | |||
Executive directors [member] | LIU Aili [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Salaries, allowances and bonuses | 592 | 662 | 365 | |||
Contributions relating to social insurance, housing fund and retirement scheme | 110 | 141 | 133 | |||
Total | 702 | 803 | 498 | |||
Executive directors [member] | DONG Xin [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Salaries, allowances and bonuses | 695 | |||||
Contributions relating to social insurance, housing fund and retirement scheme | 145 | |||||
Total | 840 | |||||
Executive directors [member] | XUE Taohai [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Salaries, allowances and bonuses | 646 | 387 | ||||
Contributions relating to social insurance, housing fund and retirement scheme | 143 | 135 | ||||
Total | 789 | 522 | ||||
Executive directors [member] | SHA Yuejia [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Salaries, allowances and bonuses | 702 | 662 | 365 | |||
Contributions relating to social insurance, housing fund and retirement scheme | 148 | 141 | 133 | |||
Total | ¥ 850 | ¥ 803 | 498 | |||
Executive directors [member] | XI Guohua [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Salaries, allowances and bonuses | 377 | |||||
Contributions relating to social insurance, housing fund and retirement scheme | 113 | |||||
Total | 490 | |||||
Executive directors [member] | HUANG Wenlin [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Salaries, allowances and bonuses | 139 | |||||
Contributions relating to social insurance, housing fund and retirement scheme | 21 | |||||
Total | ¥ 160 | |||||
Independent non-executive directors [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Directors' fees | $ | $ 1,640 | $ 1,457 | $ 1,565 | |||
Total | $ | 1,640 | 1,457 | 1,565 | |||
Independent non-executive directors [member] | WONG Kwong Shing Frank [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Directors' fees | $ | 470 | 470 | 470 | |||
Total | $ | 470 | 470 | 470 | |||
Independent non-executive directors [member] | CHENG Mo Chi, Moses [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Directors' fees | $ | 460 | 452 | 440 | |||
Total | $ | 460 | 452 | 440 | |||
Independent non-executive directors [member] | CHOW Man Yiu, Paul [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Directors' fees | $ | 455 | 405 | 330 | |||
Total | $ | 455 | 405 | 330 | |||
Independent non-executive directors [member] | YIU Kin Wah, Stephen [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Directors' fees | $ | 255 | |||||
Total | $ | $ 255 | |||||
Independent non-executive directors [member] | LO Ka Shui [member] | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Directors' fees | $ | 130 | 325 | ||||
Total | $ | $ 130 | $ 325 |
Individuals with Highest Emol89
Individuals with Highest Emoluments - Emoluments Payable to the Five Individuals with Highest Emoluments (Detail) - Five individuals with the highest emoluments [member] - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
Salaries, allowances and benefits in kind | ¥ 5,259 | ¥ 5,602 | ¥ 8,135 |
Performance related bonuses | 4,014 | 2,029 | 1,814 |
Retirement scheme contributions | 158 | 157 | 148 |
Total | ¥ 9,431 | ¥ 7,788 | ¥ 10,097 |
Individuals With Highest Emol90
Individuals With Highest Emoluments - Emoluments by Bands (Detail) - Individual | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Emolument band 1,500,001 - 2,000,000 [member] | |||
Disclosure of transactions between related parties [line items] | |||
Number of individuals | 3 | 5 | 4 |
Emolument band 2,000,001 - 2,500,000 [member] | |||
Disclosure of transactions between related parties [line items] | |||
Number of individuals | 2 | 1 |
Taxation - Taxation in Consolid
Taxation - Taxation in Consolidated Statements of Comprehensive Income (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax | |||
Current tax | ¥ 37,205 | ¥ 39,902 | ¥ 39,752 |
Deferred tax | |||
Origination and reversal of temporary differences (note 20) | (3,482) | (4,279) | (4,673) |
Taxation | 33,723 | 35,623 | 35,079 |
Hong Kong [member] | |||
Current tax | |||
Current tax | 260 | 193 | 164 |
PRC [member] | |||
Current tax | |||
Current tax | ¥ 36,945 | ¥ 39,709 | ¥ 39,588 |
Taxation - Taxation in Consol92
Taxation - Taxation in Consolidated Statements of Comprehensive Income (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Hong Kong [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Income tax rate | 16.50% | 16.50% | 16.50% |
PRC [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Income tax rate | 25.00% | 25.00% | 25.00% |
Subsidiaries [member] | PRC [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Preferential tax rate | 15.00% | 15.00% | 15.00% |
Taxation - Reconciliation Betwe
Taxation - Reconciliation Between Income Tax Expense and Accounting Profit at Applicable Tax Rates (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Profit before taxation | ¥ 148,137 | ¥ 144,462 | ¥ 143,734 |
Notional tax on profit before tax, calculated at the PRC's statutory tax rate of 25% (Note) | 37,034 | 36,116 | 35,934 |
Tax effect of deductible temporary difference for which no deferred tax asset was recognized | 154 | 1,562 | 98 |
Tax effect of deductible tax loss for which no deferred tax asset was recognized | 818 | 1,349 | 356 |
Tax effect on the eliminated unrealized profits related to the transfer of Tower Assets | 1,547 | ||
Others | (98) | (384) | (158) |
Taxation | 33,723 | 35,623 | 35,079 |
PRC [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Tax effect of non-deductible expenses | 772 | 798 | 986 |
Rate differential | (2,317) | (1,580) | (1,576) |
Hong Kong [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Tax effect of non-deductible expenses | 70 | 76 | 68 |
Rate differential | (182) | (133) | (122) |
Share of profit of investments accounted for using the equity method [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Tax effect of non-taxable items | (2,487) | (2,159) | (2,023) |
Interest income [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | |||
Tax effect of non-taxable items | ¥ (41) | ¥ (22) | ¥ (31) |
Taxation - Tax Credited_(Charge
Taxation - Tax Credited/(Charged) Relating to Components of Other Comprehensive Income (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax relating to components of other comprehensive income [abstract] | |||
Change in value of available-for-sale financial assets, Before tax | ¥ (7) | ¥ 32 | |
Currency translation differences, Before tax | (735) | 774 | ¥ 603 |
Share of other comprehensive (loss)/income of investments accounted for using equity method, Before tax | (1,038) | (1,059) | 901 |
Other comprehensive (loss)/income, Before tax | (1,780) | (253) | 1,504 |
Change in value of available-for-sale financial assets, Tax credited/(charged) | 2 | (8) | |
Currency translation differences, Tax credited/(charged) | |||
Share of other comprehensive (loss)/income of investments accounted for using equity method, Tax credited/(charged) | |||
Other comprehensive (loss)/income, Tax credited/(charged) | 2 | (8) | |
Change in value of available-for-sale financial assets, After tax | (5) | 24 | |
Currency translation differences, After tax | (735) | 774 | 603 |
Share of other comprehensive (loss)/income of investments accounted for using equity method, After tax | (1,038) | (1,059) | 901 |
Other comprehensive (loss)/income, After tax | (1,778) | (261) | 1,504 |
Tax credited/(charged) relating to components of other comprehensive income, Tax credited/(charged) | |||
Current tax | 0 | 0 | ¥ 0 |
Deferred tax | 2 | (8) | |
Other comprehensive (loss)/income, Tax credited/(charged) | ¥ 2 | ¥ (8) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017CNY (¥)shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2015CNY (¥)shares | |
Basic earnings per share | |||
Profit attributable to equity shareholders | ¥ | ¥ 114,279,000,000 | ¥ 108,741,000,000 | ¥ 108,539,000,000 |
Weighted average number of shares | 20,475,482,897 | 20,475,482,897 | 20,473,119,088 |
Diluted earnings per share | |||
Profit attributable to equity shareholders | ¥ | ¥ 114,279,000,000 | ¥ 108,741,000,000 | ¥ 108,539,000,000 |
Weighted average number of shares | 20,475,482,897 | 20,475,482,897 | 20,479,705,763 |
Stock option outstanding | 0 | 0 | |
Dilution impact on weighted average number of shares | 0 | 0 | 6,586,675 |
Earnings Per Share - Weighted A
Earnings Per Share - Weighted Average Number of Shares - Basic and Diluted (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share [abstract] | |||
Issued shares as of January 1 | 20,475,482,897 | 20,475,482,897 | 20,438,426,514 |
Effect of share options exercised | 34,692,574 | ||
Weighted average number of shares in issue during the year | 20,475,482,897 | 20,475,482,897 | 20,473,119,088 |
Dilutive equivalent shares arising from share options | 0 | 0 | 6,586,675 |
Weighted average number of shares (diluted) during the year | 20,475,482,897 | 20,475,482,897 | 20,479,705,763 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | ¥ 622,356 | |
Transferred from construction in progress | (185,660) | ¥ (183,245) |
Ending balance | 648,029 | 622,356 |
Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,446,181 | 1,327,047 |
Transferred from construction in progress | 185,660 | 183,245 |
Other additions | 2,975 | 2,868 |
Disposals | (362) | (6,203) |
Assets written-off and impairment loss | (40,419) | (61,168) |
Exchange differences | (504) | 392 |
Ending balance | 1,593,531 | 1,446,181 |
Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 823,825 | 741,416 |
Charge for the year | 149,948 | 138,170 |
Written back on disposals | (208) | (2,850) |
Assets written-off and impairment loss | (27,832) | (53,116) |
Exchange differences | (231) | 205 |
Ending balance | 945,502 | 823,825 |
Buildings [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 95,421 | |
Ending balance | 100,956 | 95,421 |
Buildings [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 136,923 | 129,460 |
Transferred from construction in progress | 10,577 | 8,476 |
Other additions | 820 | 214 |
Disposals | (72) | (1,048) |
Assets written-off and impairment loss | (331) | (308) |
Exchange differences | (141) | 129 |
Ending balance | 147,776 | 136,923 |
Buildings [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 41,502 | 36,825 |
Charge for the year | 5,695 | 5,310 |
Written back on disposals | (58) | (446) |
Assets written-off and impairment loss | (299) | (203) |
Exchange differences | (20) | 16 |
Ending balance | 46,820 | 41,502 |
Telecommunications transceivers, switching centers, transmission and other network equipment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 520,046 | |
Ending balance | 539,439 | 520,046 |
Telecommunications transceivers, switching centers, transmission and other network equipment [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 1,286,267 | 1,174,803 |
Transferred from construction in progress | 174,250 | 172,502 |
Other additions | 962 | 2,367 |
Disposals | (181) | (5,017) |
Assets written-off and impairment loss | (38,971) | (58,650) |
Exchange differences | (359) | 262 |
Ending balance | 1,421,968 | 1,286,267 |
Telecommunications transceivers, switching centers, transmission and other network equipment [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 766,221 | 689,564 |
Charge for the year | 143,026 | 129,915 |
Written back on disposals | (45) | (2,336) |
Assets written-off and impairment loss | (26,465) | (51,108) |
Exchange differences | (208) | 186 |
Ending balance | 882,529 | 766,221 |
Office equipment, furniture, fixtures and others [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 6,889 | |
Ending balance | 7,634 | 6,889 |
Office equipment, furniture, fixtures and others [member] | Cost [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 22,991 | 22,784 |
Transferred from construction in progress | 833 | 2,267 |
Other additions | 1,193 | 287 |
Disposals | (109) | (138) |
Assets written-off and impairment loss | (1,117) | (2,210) |
Exchange differences | (4) | 1 |
Ending balance | 23,787 | 22,991 |
Office equipment, furniture, fixtures and others [member] | Accumulated depreciation, amortization and impairment [member] | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Beginning balance | 16,102 | 15,027 |
Charge for the year | 1,227 | 2,945 |
Written back on disposals | (105) | (68) |
Assets written-off and impairment loss | (1,068) | (1,805) |
Exchange differences | (3) | 3 |
Ending balance | ¥ 16,153 | ¥ 16,102 |
Property, Plant and Equipment98
Property, Plant and Equipment - Additional Information (Detail) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Pre-tax discount rate | 11.00% | ||
Telecommunications transceivers, switching centers, transmission and other network equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Pre-tax discount rate | 11.00% | ||
Impairment loss recognised in profit or loss, property, plant and equipment | ¥ 10,450,000,000 | ¥ 0 | ¥ 0 |
Construction in Progress - Summ
Construction in Progress - Summary of Construction in Progress (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Beginning balance | ¥ 89,853 | ¥ 88,012 |
Additions | 173,919 | 185,086 |
Transferred to property, plant and equipment | (185,660) | (183,245) |
Ending balance | ¥ 78,112 | ¥ 89,853 |
Land Lease Prepayments and O100
Land Lease Prepayments and Others - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of quantitative information about leases for lessee [abstract] | |||
Amortization of land lease prepayments expensed in the profit or loss | ¥ 446 | ¥ 443 | ¥ 426 |
Goodwill - Summary of Goodwill
Goodwill - Summary of Goodwill (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Changes in goodwill [abstract] | ||
As of January 1 and December 31 | ¥ 35,343 | ¥ 35,343 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of information for cash-generating units [Line Items] | ||
Goodwill | ¥ 35,343,000,000 | ¥ 35,343,000,000 |
Period over which management has projected cash flows | Five years | |
Pre-tax discount rate | 11.00% | |
For five years ended Dec. 31, 2021 [Member] | ||
Disclosure of information for cash-generating units [Line Items] | ||
Growth rate | 1.50% | |
For the years beyond Dec. 31, 2021 [Member] | ||
Disclosure of information for cash-generating units [Line Items] | ||
Growth rate | 1.00% | |
Operation in Mainland China [Member] | ||
Disclosure of information for cash-generating units [Line Items] | ||
Goodwill | ¥ 35,300,000,000 |
Subsidiaries - Summary of Subsi
Subsidiaries - Summary of Subsidiaries (Detail) | 12 Months Ended | ||||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017HKD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016CNY (¥) | Dec. 31, 2016HKD ($) | Dec. 31, 2015CNY (¥) | Dec. 31, 2015HKD ($) | |
Disclosure of subsidiaries [Line Items] | |||||||
Particulars of issued and paid up capital | ¥ 402,130,000,000 | $ 382,263,000,000 | ¥ 402,130,000,000 | $ 382,263,000,000 | ¥ 402,130,000,000 | $ 382,263,000,000 | |
Aspire Holdings Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Cayman Islands | ||||||
Place of establishment and operation | Cayman Islands | ||||||
Particulars of issued and paid up capital | $ | 93,964,583 | ||||||
Proportion of ownership interest Held by the Company | 66.41% | ||||||
Principal activity | Investment holding company | ||||||
China mobile communication (bvi) limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | British Virgin Islands ("BVI") | ||||||
Place of establishment and operation | British Virgin Islands ("BVI") | ||||||
Particulars of issued and paid up capital | $ | 1 | ||||||
Proportion of ownership interest Held by the Company | 100.00% | ||||||
Principal activity | Investment holding company | ||||||
China Mobile Communication Co. Ltd [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 1,641,848,326 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Network and business coordination center | ||||||
China Mobile Group Guangdong Co., Ltd. ("Guangdong Mobile") [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 5,594,840,700 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Zhejiang Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 2,117,790,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Jiangsu Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 2,800,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Fujian Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 5,247,480,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Henan Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 4,367,733,641 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Hainan Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 643,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Beijing Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 6,124,696,053 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Shanghai Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 6,038,667,706 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Tianjin Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 2,151,035,483 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Hebei Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 4,314,668,600 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Liaoning Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 5,140,126,680 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Shandong Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 6,341,851,146 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Guangxi Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 2,340,750,100 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Anhui Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 4,099,495,494 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Jiangxi Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 2,932,824,234 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Chongqing Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 3,029,645,401 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Sichuan Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 7,483,625,572 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Hubei Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 3,961,279,556 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Hunan Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 4,015,668,593 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Shaanxi Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 3,171,267,431 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Shanxi Co., Ltd. [Member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 2,773,448,313 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Neimenggu Co., Ltd. [Member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 2,862,621,870 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Jilin Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 3,277,579,314 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Heilongjiang Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 4,500,508,035 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Guizhou Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 2,541,981,749 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Yunnan Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 4,137,130,733 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Xizang Co., Ltd. [Member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 848,643,686 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Gansu Co., Ltd. [Member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 1,702,599,589 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Qinghai Co., Ltd. [Member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 902,564,911 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Ningxia Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 740,447,232 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Xinjiang Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 2,581,599,600 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Telecommunications operator | ||||||
China Mobile Group Design Institute Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 160,232,500 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of telecommunications network planning design and consulting services | ||||||
China Mobile Holding Company Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | $ | $ 30,000,000 | ||||||
Proportion of ownership interest Held by the Company | 100.00% | ||||||
Principal activity | Investment holding company | ||||||
China Mobile (Shenzhen) Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | $ | 7,633,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of roaming clearance services | ||||||
Aspire (BVI) Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | BVI | ||||||
Place of establishment and operation | BVI | ||||||
Particulars of issued and paid up capital | $ | 1,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Investment holding company | ||||||
Aspire Technologies (Shenzhen) Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | $ | 10,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Technology platform development and maintenance | ||||||
Aspire Information Network (Shenzhen) Limited [Member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | $ | 5,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of mobile data solutions, system integration and development | ||||||
Aspire Information Technologies (Beijing) Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | $ | 5,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Technology platform development and maintenance | ||||||
Fujian FUNO Mobile Communication Technology Company Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | $ | 3,800,000 | ||||||
Proportion of Held by a subsidiary | 51.00% | ||||||
Principal activity | Network construction and maintenance, network planning and optimizing, training and communication services | ||||||
Advanced Roaming & Clearing House Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | BVI | ||||||
Place of establishment and operation | BVI | ||||||
Particulars of issued and paid up capital | $ | 2 | ||||||
Proportion of ownership interest Held by the Company | 100.00% | ||||||
Principal activity | Provision of roaming clearance services | ||||||
Fit Best Limited [Member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | BVI | ||||||
Place of establishment and operation | BVI | ||||||
Particulars of issued and paid up capital | $ | $ 1 | ||||||
Proportion of ownership interest Held by the Company | 100.00% | ||||||
Principal activity | Investment holding company | ||||||
China Mobile Hong Kong Company Limited [Member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Hong Kong | ||||||
Place of establishment and operation | Hong Kong | ||||||
Particulars of issued and paid up capital | $ | 951,046,930 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of telecommunications and related services | ||||||
China Mobile International Holdings Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Hong Kong | ||||||
Place of establishment and operation | Hong Kong | ||||||
Particulars of issued and paid up capital | $ | 16,495,670,000 | ||||||
Proportion of ownership interest Held by the Company | 100.00% | ||||||
Principal activity | Investment holding company | ||||||
China Mobile International Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Hong Kong | ||||||
Place of establishment and operation | Hong Kong | ||||||
Particulars of issued and paid up capital | $ | $ 6,400,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of voice and roaming clearance services, Internet services and value-added services | ||||||
China Mobile Group Device Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 6,200,000,000 | ||||||
Proportion of Held by a subsidiary | 99.97% | ||||||
Principal activity | Provision of electronic communication products design and sale of related products | ||||||
China Mobile Group Finance Co., Ltd. ("China Mobile Finance") [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 11,627,783,669 | ||||||
Proportion of Held by a subsidiary | 92.00% | ||||||
Principal activity | Provision of non-banking financial services | ||||||
China Mobile IoT Company Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 1,000,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of network services | ||||||
China Mobile (Suzhou) Software Technology Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 980,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of computer hardware and software research and development services | ||||||
China Mobile (Hangzhou) Information Technology Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 1,150,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of computer hardware and software research and development services | ||||||
China Mobile Online Services Co., Ltd. [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 50,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of call center services | ||||||
MIGU Company Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 7,000,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of Mobile Internet digital content services | ||||||
CM TieTong [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 31,880,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of telecommunications services | ||||||
China Mobile Internet Company Limited [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 2,000,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of value added telecommunications services | ||||||
China Mobile Investment Holdings Company Limited ("CM Investment") [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 330,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Investment holding company | ||||||
China Mobile Quantong System Integration Co Ltd [member] | |||||||
Disclosure of subsidiaries [Line Items] | |||||||
Place of incorporation | Mainland China | ||||||
Place of establishment and operation | Mainland China | ||||||
Particulars of issued and paid up capital | ¥ 550,000,000 | ||||||
Proportion of Held by a subsidiary | 100.00% | ||||||
Principal activity | Provision of computer system integration, construction, maintenance and related technology development services |
Subsidiaries - Summary of Su104
Subsidiaries - Summary of Subsidiaries (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Aspire Holdings Limited [member] | |
Disclosure of subsidiaries [Line Items] | |
Effective interest held | 66.41% |
Investments Accounted for Us105
Investments Accounted for Using the Equity Method - Summary of Investments Accounted for Using the Equity Method (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments in subsidiaries, joint ventures and associates [abstract] | ||
Associates | ¥ 131,636 | ¥ 123,255 |
Joint ventures | 863 | 784 |
Investments accounted for using equity method | ¥ 132,499 | ¥ 124,039 |
Investments Accounted for Us106
Investments Accounted for Using the Equity Method - Details of Major Associates (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
China Tower Corporation Limited [member] | ||
Disclosure of associates [line items] | ||
Place of incorporation | PRC | |
Place of establishment and operation | PRC | |
Proportion of ownership interest held by the Company or its subsidiary | 38.00% | 38.00% |
Principal activity | Construction, maintenance and operation of telecommunications towers | |
Shanghai Pudong Development Bank Co., Ltd. ('SPD Bank") [member] | ||
Disclosure of associates [line items] | ||
Place of incorporation | PRC | |
Place of establishment and operation | PRC | |
Proportion of ownership interest held by the Company or its subsidiary | 18.00% | 19.00% |
Principal activity | Provision of banking services | |
IFLYTEK Co., Ltd. ("IFLYTEK") [member] | ||
Disclosure of associates [line items] | ||
Place of incorporation | PRC | |
Place of establishment and operation | PRC | |
Proportion of ownership interest held by the Company or its subsidiary | 13.00% | 14.00% |
Principal activity | Provision of Chinese speech and language technology products and services | |
True Corporation Public Company Limited ("True Corporation") [member] | ||
Disclosure of associates [line items] | ||
Place of incorporation | Thailand | |
Place of establishment and operation | Thailand | |
Proportion of ownership interest held by the Company or its subsidiary | 18.00% | 18.00% |
Principal activity | Provision of telecommunications services |
Investments Accounted for Us107
Investments Accounted for Using the Equity Method - Details of Major Associates (Parenthetical) (Detail) - Shanghai Pudong Development Bank Co., Ltd. ('SPD Bank") [member] | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of associates [line items] | |
Proportion of ownership interest held by the Company or its subsidiary before dilution | 18.98% |
Proportion of ownership interest held by the Company or its subsidiary after dilution | 18.18% |
Investments Accounted for Us108
Investments Accounted for Using the Equity Method - Summary Financial Information on Principal Associates (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of associates [line items] | ||||
Total current assets | ¥ 558,196 | ¥ 586,645 | ||
Total assets | 1,522,113 | 1,520,994 | ||
Total non-current assets | 963,917 | 934,349 | ||
Total liabilities | 533,232 | 538,856 | ||
Total current liabilities | 529,982 | 536,389 | ||
Total non-current liabilities | 3,250 | 2,467 | ||
Total equity | 988,881 | 982,138 | ¥ 920,368 | ¥ 888,983 |
Total equity attributable to equity shareholders | 985,636 | 979,021 | ||
Interest in associates | 131,636 | 123,255 | ||
Revenue | 740,514 | 708,421 | 668,335 | |
(Loss)/profit before taxation | 148,137 | 144,462 | 143,734 | |
(Loss)/profit for the year | 114,414 | 108,839 | 108,655 | |
Other comprehensive (loss)/income | (1,778) | (261) | 1,504 | |
Total comprehensive (loss)/income | 112,636 | 108,578 | 110,159 | |
Shanghai Pudong Development Bank Co., Ltd. ('SPD Bank") [member] | ||||
Disclosure of associates [line items] | ||||
Total assets | 6,135,061 | 5,857,263 | ||
Total liabilities | 5,484,329 | |||
Total equity | 372,934 | |||
Total equity attributable to equity shareholders | ¥ 395,466 | ¥ 338,027 | ||
Percentage of ownership of the Group | 18.00% | 19.00% | ||
Total equity attributable to the Group | ¥ 71,896 | ¥ 64,158 | ||
The impact of fair value adjustments at the time of acquisition and goodwill | 6,663 | 7,780 | ||
Interest in associates | 78,559 | 71,938 | ||
Revenue | 168,619 | 160,792 | 146,550 | |
(Loss)/profit before taxation | 69,785 | 69,975 | 66,877 | |
(Loss)/profit for the year | 52,515 | 51,374 | 49,704 | |
Other comprehensive (loss)/income | (5,568) | (5,480) | 4,458 | |
Total comprehensive (loss)/income | 46,947 | 45,894 | 54,162 | |
Dividends received from associates | 821 | 1,921 | 2,824 | |
IFLYTEK Co., Ltd. ("IFLYTEK") [member] | ||||
Disclosure of associates [line items] | ||||
Total current assets | 7,329 | 5,533 | ||
Total non-current assets | 6,151 | 4,881 | ||
Total current liabilities | 4,428 | 2,521 | ||
Total non-current liabilities | 1,042 | 674 | ||
Total equity | 8,010 | 7,219 | ||
Total equity attributable to equity shareholders | ¥ 7,759 | ¥ 7,061 | ||
Percentage of ownership of the Group | 13.00% | 14.00% | ||
Total equity attributable to the Group | ¥ 1,047 | ¥ 962 | ||
The impact of fair value adjustments at the time of acquisition and goodwill | 805 | 814 | ||
Interest in associates | 1,852 | 1,776 | ||
Revenue | 5,458 | 3,320 | 2,501 | |
(Loss)/profit before taxation | 584 | 561 | 465 | |
(Loss)/profit for the year | 428 | 484 | 425 | |
Total comprehensive (loss)/income | 428 | 484 | 425 | |
Dividends received from associates | 18 | 18 | 18 | |
True Corporation Public Company Limited ("True Corporation") [member] | ||||
Disclosure of associates [line items] | ||||
Total current assets | 23,566 | 23,135 | ||
Total non-current assets | 69,511 | 61,532 | ||
Total current liabilities | 39,589 | 30,333 | ||
Total non-current liabilities | 26,643 | 29,492 | ||
Total equity | 26,845 | 24,842 | ||
Total equity attributable to equity shareholders | ¥ 26,711 | ¥ 24,714 | ||
Percentage of ownership of the Group | 18.00% | 18.00% | ||
Total equity attributable to the Group | ¥ 4,808 | ¥ 4,449 | ||
The impact of fair value adjustments at the time of acquisition and goodwill | 2,664 | 2,847 | ||
Interest in associates | 7,472 | 7,296 | ||
Revenue | 28,262 | 23,520 | 21,416 | |
(Loss)/profit before taxation | 726 | (437) | 839 | |
(Loss)/profit for the year | 465 | (531) | 795 | |
Other comprehensive (loss)/income | 32 | (87) | ||
Total comprehensive (loss)/income | 497 | (618) | 795 | |
Dividends received from associates | 5 | |||
China Tower Corporation Limited [member] | ||||
Disclosure of associates [line items] | ||||
Total current assets | 30,517 | 39,565 | ||
Total non-current assets | 292,125 | 272,103 | ||
Total current liabilities | 150,438 | 171,568 | ||
Total non-current liabilities | 44,710 | 14,548 | ||
Total equity | 127,494 | 125,552 | ||
Total equity attributable to equity shareholders | ¥ 127,494 | ¥ 125,552 | ||
Percentage of ownership of the Group | 38.00% | 38.00% | ||
Total equity attributable to the Group | ¥ 48,448 | ¥ 47,710 | ||
Elimination of unrealized profits resulting from the transfer of Tower Assets and its realization | (4,856) | (5,474) | ||
Interest in associates | 43,592 | 42,236 | ||
Revenue | 68,665 | 54,474 | 10,325 | |
(Loss)/profit before taxation | 2,685 | (776) | (3,864) | |
(Loss)/profit for the year | 1,943 | (575) | (2,944) | |
Total comprehensive (loss)/income | ¥ 1,943 | ¥ (575) | ¥ (2,944) |
Investments Accounted for Us109
Investments Accounted for Using the Equity Method - Fair Value of Interests in Listed Associates (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of associates [line items] | ||
Carrying amount | ¥ 131,636 | ¥ 123,255 |
Shanghai Pudong Development Bank Co., Ltd. ('SPD Bank") [member] | ||
Disclosure of associates [line items] | ||
Carrying amount | 78,559 | 71,938 |
Fair value | 67,166 | 66,522 |
IFLYTEK Co., Ltd. ("IFLYTEK") [member] | ||
Disclosure of associates [line items] | ||
Carrying amount | 1,852 | 1,776 |
Fair value | 10,598 | 4,854 |
True Corporation Public Company Limited ("True Corporation") [member] | ||
Disclosure of associates [line items] | ||
Carrying amount | 7,472 | 7,296 |
Fair value | 7,450 | 8,297 |
Listed associates [Member] | ||
Disclosure of associates [line items] | ||
Carrying amount | 87,883 | 81,010 |
Fair value | ¥ 85,214 | ¥ 79,673 |
Investments Accounted for Us110
Investments Accounted for Using the Equity Method - Additional Information (Detail) - CNY (¥) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
China Mobile Innovative Business Fund (Shenzhen) Partnership (Limited Partnership) [Member] | ||
Disclosure of associates [line items] | ||
Committed cash to joint venture | ¥ 1,500,000,000 | |
Percentage of equity interest | 50.00% | |
Amount contributed to joint venture | ¥ 759,000,000 | ¥ 721,000,000 |
Remaining commitment to joint venture | 741,000,000 | 779,000,000 |
Contingent liabilities relating to interest in the joint ventures | 0 | |
Shanghai Pudong Development Bank Co., Ltd. ('SPD Bank") [member] | ||
Disclosure of associates [line items] | ||
Fair value of investment | ¥ 67,166,000,000 | ¥ 66,522,000,000 |
Percentage of fair value of investment below its carrying amount | 14.50% | 7.50% |
Impairment on investment | ¥ 0 | |
True Corporation Public Company Limited ("True Corporation") [member] | ||
Disclosure of associates [line items] | ||
Fair value of investment | ¥ 7,450,000,000 | ¥ 8,297,000,000 |
Percentage of fair value of investment below its carrying amount | 0.30% | |
Impairment on investment | ¥ 0 | |
Percentage of fair value of investment exceeding its carrying amount | 13.70% |
Deferred Tax Assets and Liab111
Deferred Tax Assets and Liabilities - Analysis of Deferred Tax Assets and Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Deferred tax assets | ¥ 33,343 | ¥ 29,767 |
Deferred tax liabilities | (362) | (292) |
After 12 months [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Deferred tax assets | 8,236 | 6,607 |
Deferred tax liabilities | (258) | (248) |
Within 1 year or on demand [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Deferred tax assets | 25,107 | 23,160 |
Deferred tax liabilities | ¥ (104) | ¥ (44) |
Deferred Tax Assets and Liab112
Deferred Tax Assets and Liabilities - Deferred Tax Assets and Liabilities Recognized and Movements During the Period (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Beginning balance | ¥ 29,475 | ¥ 25,220 |
(Charged)/ credited to profit or loss | 3,482 | 4,279 |
(Charged)/ credited to other comprehensive income | 2 | (8) |
Exchange differences | 22 | (16) |
Ending balance | 32,981 | 29,475 |
Deferred tax asset [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Beginning balance | 29,767 | 25,423 |
(Charged)/ credited to profit or loss | 3,574 | 4,352 |
(Charged)/ credited to other comprehensive income | 2 | (8) |
Ending balance | 33,343 | 29,767 |
Deferred tax asset [member] | Write-down for obsolete inventories [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Beginning balance | 175 | 217 |
(Charged)/ credited to profit or loss | (55) | (42) |
Ending balance | 120 | 175 |
Deferred tax asset [member] | Write-off and impairment of certain network equipment and related assets [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Beginning balance | 4,538 | 4,152 |
(Charged)/ credited to profit or loss | 2,544 | 386 |
Ending balance | 7,082 | 4,538 |
Deferred tax asset [member] | Accrued operating expenses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Beginning balance | 17,969 | 14,125 |
(Charged)/ credited to profit or loss | 965 | 3,844 |
Ending balance | 18,934 | 17,969 |
Deferred tax asset [member] | Deferred revenue from Reward Program [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Beginning balance | 5,796 | 5,350 |
(Charged)/ credited to profit or loss | 147 | 446 |
Ending balance | 5,943 | 5,796 |
Deferred tax asset [member] | Allowance for credit losses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Beginning balance | 1,297 | 1,579 |
(Charged)/ credited to profit or loss | (27) | (282) |
Ending balance | 1,270 | 1,297 |
Deferred tax asset [member] | Change in value of available for sale financial assets [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Beginning balance | (8) | |
(Charged)/ credited to other comprehensive income | 2 | (8) |
Ending balance | (6) | (8) |
Deferred tax liabilities [member] | Depreciation allowance in excess of related depreciation [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Beginning balance | (292) | (203) |
(Charged)/ credited to profit or loss | (92) | (73) |
Exchange differences | 22 | (16) |
Ending balance | ¥ (362) | ¥ (292) |
Deferred Tax Assets and Liab113
Deferred Tax Assets and Liabilities - Additional Information (Detail) - CNY (¥) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Deductible temporary differences where deferred tax assets were not recognized | ¥ 6,885,000,000 | ¥ 6,249,000,000 |
Tax losses where deferred tax assets were not recognized | 8,713,000,000 | 5,504,000,000 |
Deferred tax assets | 33,343,000,000 | 29,767,000,000 |
Temporary differences [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Deferred tax assets | 1,716,000,000 | 1,562,000,000 |
Unused tax losses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line Items] | ||
Deferred tax assets | ¥ 2,079,000,000 | ¥ 1,349,000,000 |
Available-for-sale Financial114
Available-for-sale Financial Assets - Summary of Available-for-sale Financial Assets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale financial assets [abstract] | ||
Equity investments | ¥ 44 | ¥ 35 |
Wealth management products issued by banks | 65,630 | 31,897 |
Available-for-sale financial assets | 65,674 | 31,932 |
Less: current portion | (65,630) | (31,897) |
Non-current portion | 44 | 35 |
Available-for-sale financial assets | ¥ 65,674 | ¥ 31,932 |
Restricted Bank Deposits - Summ
Restricted Bank Deposits - Summary of Restricted Bank Deposits (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of restricted bank deposits [Line Items] | ||
Restricted bank deposits, Non-current assets | ¥ 6,504 | ¥ 4,528 |
Restricted bank deposits, Current assets | 691 | 197 |
Restricted bank deposits, Total | 7,195 | 4,725 |
Statutory deposit reserves [member] | ||
Disclosure of restricted bank deposits [Line Items] | ||
Restricted bank deposits, Non-current assets | 3,453 | 4,527 |
Restricted bank deposits, Total | 3,453 | 4,527 |
Deposited customer reserves [member] | ||
Disclosure of restricted bank deposits [Line Items] | ||
Restricted bank deposits, Non-current assets | 3,047 | |
Restricted bank deposits, Total | 3,047 | |
Pledged bank deposits [member] | ||
Disclosure of restricted bank deposits [Line Items] | ||
Restricted bank deposits, Non-current assets | 4 | 1 |
Restricted bank deposits, Current assets | 691 | 197 |
Restricted bank deposits, Total | ¥ 695 | ¥ 198 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Classes of current inventories [abstract] | ||
SIM cards, handsets and other terminals | ¥ 8,357 | ¥ 7,696 |
Other consumables | 1,865 | 1,136 |
Inventories | ¥ 10,222 | ¥ 8,832 |
Accounts Receivable - Aging Ana
Accounts Receivable - Aging Analysis of Accounts Receivable, Net of Allowance for Impairment Loss of Doubtful Accounts (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Accounts receivable, net | ¥ 24,153 | ¥ 19,045 |
Within 1 month or on demand [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable, net | 13,711 | 10,974 |
31-60 days [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable, net | 3,002 | 2,726 |
61-90 days [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable, net | 1,798 | 1,540 |
Over 90 days [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable, net | ¥ 5,642 | ¥ 3,805 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Changes in Impairment Loss of Doubtful Accounts (Detail) - Trade receivables [member] - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of financial assets [line items] | ||
Beginning balance | ¥ 5,762 | ¥ 6,549 |
Impairment loss recognized | 3,415 | 3,797 |
Accounts receivable written off | (3,509) | (4,584) |
Ending balance | ¥ 5,668 | ¥ 5,762 |
Accounts Receivable - Aging 119
Accounts Receivable - Aging Analysis of Accounts Receivable that are Past Due but not Impaired (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets that are past due but not impaired [line items] | ||
Accounts receivable | ¥ 24,153 | ¥ 19,045 |
Past due [member] | Within 1 month or on demand [member] | ||
Disclosure of financial assets that are past due but not impaired [line items] | ||
Accounts receivable | ¥ 848 | ¥ 577 |
Account Receivables - Additiona
Account Receivables - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Accounts receivable, net | ¥ 24,153 | ¥ 19,045 |
Past due [member] | Within 1 month or on demand [member] | ||
Disclosure of financial assets [line items] | ||
Accounts receivable, net | ¥ 848 | ¥ 577 |
Other Receivables, Prepaymen121
Other Receivables, Prepayments and Other Current Assets - Additional Information (Detail) - CNY (¥) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [line items] | ||
Other receivables, current | ¥ 31,201,000,000 | ¥ 25,693,000,000 |
China Mobile Finance [member] | ||
Disclosure of financial assets [line items] | ||
Other receivables, current | 13,650,000,000 | 4,650,000,000 |
China Mobile Finance [member] | Neither past due nor impaired [member] | ||
Disclosure of financial assets [line items] | ||
Other receivables, current | ¥ 0 | ¥ 0 |
Amount Due From_To Ultimate Hol
Amount Due From/To Ultimate Holding Company - Additional Information (Detail) - CNY (¥) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of transactions between related parties [line items] | ||
Amount due to ultimate holding company | ¥ 8,646,000,000 | ¥ 5,563,000,000 |
China Mobile Finance [member] | ||
Disclosure of transactions between related parties [line items] | ||
Amount due to ultimate holding company | ¥ 8,611,000,000 | ¥ 5,552,000,000 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents [abstract] | ||||
Bank deposits with original maturity within three months | ¥ 5,907 | ¥ 15,115 | ||
Cash at banks and in hand | 114,729 | 75,298 | ||
Cash and cash equivalents | ¥ 120,636 | ¥ 90,413 | ¥ 79,842 | ¥ 73,812 |
Interest-Bearing Borrowings - S
Interest-Bearing Borrowings - Summary of Interest-Bearing Borrowings (Detail) ¥ in Millions | Dec. 31, 2016CNY (¥) |
Disclosure of detailed information about borrowings [abstract] | |
Bonds | ¥ 4,998 |
Interest-Bearing Borrowings - A
Interest-Bearing Borrowings - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016CNY (¥) | |
Disclosure of detailed information about borrowings [line items] | |
Principal amount | ¥ 4,998,000,000 |
Bonds issued by Guangdong Mobile, a subsidiary of the Company [member] | |
Disclosure of detailed information about borrowings [line items] | |
Maturity of bond | P15Y |
Principal amount | ¥ 5,000,000,000 |
Interest rate on bonds | 4.50% |
Bond maturity date | Oct. 28, 2017 |
Accounts Payable - Aging Analys
Accounts Payable - Aging Analysis of Accounts Payable (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial liabilities [line items] | ||
Accounts payable | ¥ 233,169 | ¥ 250,838 |
Within 1 month or on demand [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | 201,429 | 215,775 |
After 1 month but within 3 months [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | 13,086 | 14,677 |
After 3 months but within 6 months [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | 7,660 | 8,231 |
After 6 months but within 9 months [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | 2,761 | 4,342 |
After 9 months but within 12 months [member] | ||
Disclosure of financial liabilities [line items] | ||
Accounts payable | ¥ 8,233 | ¥ 7,813 |
Deferred Revenue - Summary of D
Deferred Revenue - Summary of Deferred Revenue (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accruals and deferred income [abstract] | ||
Beginning balance, Current portion | ¥ 84,289 | ¥ 78,100 |
Beginning balance, Non-current portion | 2,175 | 1,291 |
Additions during the year | 352,011 | 359,626 |
Recognized in the consolidated statements of comprehensive income | (350,305) | (352,553) |
Ending balance | 88,170 | 86,464 |
Less: Ending balance, Current portion | (85,282) | (84,289) |
Ending balance, Non-current portion | ¥ 2,888 | ¥ 2,175 |
Accrued Expenses and Other P128
Accrued Expenses and Other Payables - Summary of Accrued Expenses And Other Payables (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Receipts-in-advance | ¥ 73,583 | ¥ 75,819 |
Other payables | 26,643 | 24,523 |
Accrued salaries, wages, labor service expenses and other benefits | 6,535 | 6,241 |
Accrued expenses | 84,105 | 74,367 |
Accrued expenses and other payables | ¥ 190,866 | ¥ 180,950 |
Equity Settled Share-based T129
Equity Settled Share-based Transactions - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017HKD ($)Years | Dec. 31, 2016 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Consideration payable for the grant of option | $ | $ 1 | |
Percentage of total issued share capital which can be subscribed | 10.00% | |
Term of the option | Years | 10 | |
Number of share options outstanding | 0 | 0 |
Number of share options lapsed | 0 | 0 |
Directors [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of share options granted | 0 | 0 |
Other employees [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of share options granted | 0 | 0 |
Capital, Reserves and Divide130
Capital, Reserves and Dividends - Summary of Share Capital (Detail) ¥ in Millions, $ in Millions | Dec. 31, 2017CNY (¥)shares | Dec. 31, 2017HKD ($)shares | Dec. 31, 2016CNY (¥)shares | Dec. 31, 2016HKD ($)shares |
Disclosure of classes of share capital [abstract] | ||||
Number of shares, beginning period | 20,475,482,897 | 20,475,482,897 | 20,475,482,897 | 20,475,482,897 |
Number of shares, end period | 20,475,482,897 | 20,475,482,897 | 20,475,482,897 | 20,475,482,897 |
Ordinary shares, issued and fully paid at beginning period | ¥ 402,130 | $ 382,263 | ¥ 402,130 | $ 382,263 |
Ordinary shares, issued and fully paid at ending period | ¥ 402,130 | $ 382,263 | ¥ 402,130 | $ 382,263 |
Capital, Reserves and Divide131
Capital, Reserves and Dividends - Summary of Dividends (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Ordinary interim dividend declared and paid of HK$1.623 (equivalent to approximately RMB1.409) (2016: HK$1.489 (equivalent to approximately RMB1.273); 2015: HK$1.525 (equivalent to approximately RMB1.203)) per share | ¥ 28,211 | ¥ 26,227 | ¥ 25,629 |
Special dividend declared and paid of HK$3.200 (equivalent to approximately RMB2.777) per share | 55,621 | ||
Ordinary final dividend proposed after the balance sheet date of HK$1.582 (equivalent to approximately RMB1.322) (2016: HK$1.243 (equivalent to approximately RMB1.112); 2015: HK$1.196 (equivalent to approximately RMB1.002)) per share | 27,077 | 22,766 | 20,516 |
Dividends recognised as distributions to owners | 110,909 | 48,993 | 46,145 |
Ordinary final dividend in respect of the previous financial year, approved and paid during the year, of HK$1.243 (equivalent to approximately RMB1.112) (2016: HK$1.196 (equivalent to approximately RMB1.002); 2015: HK$1.380 (equivalent to approximately RMB1.089)) per share | 22,211 | 20,777 | 22,304 |
Attributable to equity shareholders of the Company [member] | |||
Ordinary final dividend in respect of the previous financial year, approved and paid during the year, of HK$1.243 (equivalent to approximately RMB1.112) (2016: HK$1.196 (equivalent to approximately RMB1.002); 2015: HK$1.380 (equivalent to approximately RMB1.089)) per share | ¥ 22,204 | ¥ 20,764 | ¥ 22,283 |
Capital, Reserves and Divide132
Capital, Reserves and Dividends - Summary of Dividends (Parenthetical) (Detail) | 12 Months Ended | |||||
Dec. 31, 2017¥ / shares | Dec. 31, 2017$ / shares | Dec. 31, 2016¥ / shares | Dec. 31, 2016$ / shares | Dec. 31, 2015¥ / shares | Dec. 31, 2015$ / shares | |
Statement of changes in equity [abstract] | ||||||
Dividend declared and paid, per share | (per share) | ¥ 1.409 | $ 1.623 | ¥ 1.273 | $ 1.489 | ¥ 1.203 | $ 1.525 |
Dividend proposed per share, per share | (per share) | 1.322 | 1.582 | 1.112 | 1.243 | 1.002 | 1.196 |
Special dividend declared and paid per share | (per share) | 2.777 | 3.200 | 0 | 0 | 0 | 0 |
Dividend approved and paid of the previous financial year, per share | (per share) | ¥ 1.112 | $ 1.243 | ¥ 1.002 | $ 1.196 | ¥ 1.089 | $ 1.380 |
Capital, Reserves and Divide133
Capital, Reserves and Dividends - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of changes in equity [abstract] | |||
Exchange rate of HK$1 at dividend declaration date | 0.83591 | 0.89451 | 0.83778 |
Enterprise income tax percentage of dividends | 10.00% | ||
Capital reserve | ¥ 295,665,000,000 | ||
Percentage of profit after taxation required to be transferred to the statutory surplus reserve | 10.00% | ||
Threshold percentage of profit after taxation required to the statutory surplus reserve | 50.00% | ||
Minimum statutory reserve percentage | 25.00% | ||
Total debt-to-book capitalization ratio | 0.00% | 0.50% |
Related Party Transactions - Tr
Related Party Transactions - Transactions with CMCC Group (Detail) - China Mobile Communications Corporation [member] - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
Entrusted loans received | ¥ 8,592 | ||
Entrusted loans repaid | 18,834 | ||
Short-term bank deposits received | ¥ 8,611 | ¥ 5,552 | 7,274 |
Short-term bank deposits repaid | 5,552 | 7,274 | 4,181 |
Interest expenses | 21 | 7 | 194 |
Telecommunications [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services revenue | 47 | 159 | 474 |
Property leasing and management [member] | |||
Disclosure of transactions between related parties [line items] | |||
Services revenue | 188 | 197 | 191 |
Services charges | 999 | 976 | 956 |
Network assets [member] | |||
Disclosure of transactions between related parties [line items] | |||
Leasing charges | 2,494 | 2,738 | 4,376 |
Network capacity [member] | |||
Disclosure of transactions between related parties [line items] | |||
Leasing charges | ¥ 1,047 | ¥ 2,696 | ¥ 4,757 |
Related Party Transactions - Am
Related Party Transactions - Amounts due from/to CMCC Group (Detail) - China Mobile Communications Corporation [member] - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of transactions between related parties [line items] | ||
Accounts receivable | ¥ 301 | ¥ 354 |
Other receivables | 116 | 105 |
Accounts payable | 4,580 | 4,251 |
Accrued expenses and other payables | ¥ 131 | ¥ 88 |
Related Party Transactions - Si
Related Party Transactions - Significant transactions with associates of the Group and of CMCC Group (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions between related parties [line items] | |||
Prepayments and other current assets | ¥ 24,552 | ¥ 16,801 | |
Available-for-sale financial assets | 65,674 | 31,932 | |
Bank deposits | 279,371 | 335,297 | |
Telecommunications services revenue | 668,351 | 623,422 | ¥ 584,089 |
Gain on the transfer of Tower Assets | 15,525 | ||
Associates and joint ventures [member] | |||
Disclosure of transactions between related parties [line items] | |||
Accounts receivable | 313 | 29 | |
Interest receivable | 997 | 2,134 | |
Other receivables | 12,565 | 9,862 | |
Proceeds receivable for the transfer of Tower Assets (note 7) | 57,152 | ||
Prepayments and other current assets | 51 | 17 | |
Available-for-sale financial assets | 31,778 | 17,222 | |
Bank deposits | 62,969 | 37,631 | |
Accounts payable | 4,479 | 4,076 | |
Accrued expenses and other payables | 5,429 | 4,185 | |
Telecommunications services revenue | 828 | 637 | 767 |
Telecommunications services charges | 422 | 774 | |
Property leasing and management services revenue | 99 | 1 | 6 |
Gain on the transfer of Tower Assets | 15,525 | ||
Charges for use of tower assets | 36,335 | 28,144 | 5,563 |
Interest income | 4,807 | 4,140 | 1,699 |
Dividend income | ¥ 847 | ¥ 1,944 | ¥ 2,842 |
Financial Risk Management an137
Financial Risk Management and Fair Values - Remaining Contractual Maturities of Financial Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||
Accounts payable, carrying amount | ¥ 233,169 | ¥ 250,838 |
Bills payable, carrying amount | 3,303 | 1,206 |
Accrued expenses and other payables, carrying amount | 190,866 | 180,950 |
Amount due to ultimate holding company, carrying amount | 8,646 | 5,563 |
Interest-bearing borrowings, carrying amount | 4,998 | |
Financial liabilities, carrying amount | 435,984 | 443,555 |
Accounts payable, contractual undiscounted cash flows | 233,169 | 250,838 |
Bills payable, contractual undiscounted cash flows | 3,303 | 1,206 |
Accrued expenses and other payables, contractual undiscounted cash flows | 190,866 | 180,950 |
Amount due to ultimate holding company, contractual undiscounted cash flows | 8,646 | 5,563 |
Interest-bearing borrowings, contractual undiscounted cash flows | 5,185 | |
Financial liabilities, contractual undiscounted cash flows | 435,984 | 443,742 |
Within 1 year or on demand [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [Line Items] | ||
Accounts payable, contractual undiscounted cash flows | 233,169 | 250,838 |
Bills payable, contractual undiscounted cash flows | 3,303 | 1,206 |
Accrued expenses and other payables, contractual undiscounted cash flows | 190,866 | 180,950 |
Amount due to ultimate holding company, contractual undiscounted cash flows | 8,646 | 5,563 |
Interest-bearing borrowings, contractual undiscounted cash flows | 5,185 | |
Financial liabilities, contractual undiscounted cash flows | ¥ 435,984 | ¥ 443,742 |
Financial Risk Management an138
Financial Risk Management and Fair Values - Additional Information (Detail) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about financial instruments [Line Items] | |||
Bonds | ¥ 4,998,000,000 | ||
Short-term bank deposits from ultimate holding company | ¥ 8,646,000,000 | 5,563,000,000 | |
Cash and bank balances | 114,729,000,000 | 75,298,000,000 | |
Interest income | 15,883,000,000 | 16,005,000,000 | ¥ 15,852,000,000 |
Interest rate risk [member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Cash and bank balances | 407,202,000,000 | 430,435,000,000 | |
Interest bearing receivables | 13,650,000,000 | 62,235,000,000 | |
Interest income | ¥ 15,883,000,000 | ¥ 16,005,000,000 | ¥ 15,852,000,000 |
Average interest rate | 3.13% | 3.44% | 3.75% |
Sensitivity analysis, percentage | 1.00% | 1.00% | 1.00% |
Sensitivity analysis, increase/decrease in profit for the year and total equity | ¥ 3,182,000,000 | ¥ 3,695,000,000 | ¥ 3,531,000,000 |
Interest rate risk [member] | Fixed rate [member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Bonds | 5,000,000,000 | ||
Short-term bank deposits from ultimate holding company | ¥ 8,611,000,000 | ¥ 5,552,000,000 | |
Foreign currency risk [member] | |||
Disclosure of detailed information about financial instruments [Line Items] | |||
Sensitivity analysis, percentage | 2.50% | 1.20% |
Commitments - Summary of Capita
Commitments - Summary of Capital Commitments (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of capital commitments [Line Items] | ||
Contractual capital commitments | ¥ 43,062 | ¥ 34,935 |
Land and buildings [member] | ||
Disclosure of capital commitments [Line Items] | ||
Contractual capital commitments | 10,950 | 8,788 |
Telecommunications transceivers, switching centers, transmission and other network equipment [member] | ||
Disclosure of capital commitments [Line Items] | ||
Contractual capital commitments | ¥ 32,112 | ¥ 26,147 |
Commitments - Future Minimum Le
Commitments - Future Minimum Lease Payments Under Non-cancellable Operating Leases (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | ¥ 197,967 | ¥ 194,821 |
Within 1 year or on demand [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 58,097 | 50,484 |
After one year but within five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 133,798 | 138,622 |
After five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 6,072 | 5,715 |
Land and buildings [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 35,547 | 32,214 |
Land and buildings [member] | Within 1 year or on demand [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 10,344 | 9,222 |
Land and buildings [member] | After one year but within five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 20,372 | 18,182 |
Land and buildings [member] | After five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 4,831 | 4,810 |
Leased lines and network assets [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 160,378 | 160,566 |
Leased lines and network assets [member] | Within 1 year or on demand [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 46,730 | 40,078 |
Leased lines and network assets [member] | After one year but within five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 112,465 | 119,628 |
Leased lines and network assets [member] | After five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 1,183 | 860 |
Others [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 2,042 | 2,041 |
Others [member] | Within 1 year or on demand [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 1,023 | 1,184 |
Others [member] | After one year but within five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | 961 | 812 |
Others [member] | After five years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line Items] | ||
Future minimum lease payments under non-cancellable operating leases | ¥ 58 | ¥ 45 |
Possible Impact of Amendment141
Possible Impact of Amendments, New Standards, Interpretations and Disclosures Issued but Not Yet Effective for the Year Ended December 31, 2017 - Additional Information (Detail) - IFRS 15 "Revenue from Contracts with Customers" [member] | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Decrease in operating revenue | 2.20% |
Decrease in revenue from telecommunication service | 3.20% |
Condensed Financial Informat142
Condensed Financial Information of the Company - Condensed Statements of Comprehensive Income (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of analysis of other comprehensive income by item [Line Items] | |||
Operating expenses | ¥ (620,388) | ¥ (590,333) | ¥ (565,413) |
Interest income | 15,883 | 16,005 | 15,852 |
Other (losses)/gains | 2,389 | 1,968 | 1,800 |
Finance costs | (210) | (235) | (455) |
Profit before taxation | 148,137 | 144,462 | 143,734 |
Taxation | (33,723) | (35,623) | (35,079) |
PROFIT FOR THE YEAR | 114,414 | 108,839 | 108,655 |
Other comprehensive income for the year | (1,778) | (261) | 1,504 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 112,636 | 108,578 | 110,159 |
Parent [member] | |||
Disclosure of analysis of other comprehensive income by item [Line Items] | |||
Dividend income | 111,490 | 49,080 | 43,848 |
Operating expenses | (77) | (71) | (77) |
Interest income | 23 | 11 | 25 |
Other (losses)/gains | (87) | 57 | 61 |
Finance costs | (2) | (3) | (3) |
Profit before taxation | 111,347 | 49,074 | 43,854 |
Taxation | (14) | (1) | |
PROFIT FOR THE YEAR | 111,333 | 49,073 | 43,854 |
Other comprehensive income for the year | 0 | 0 | 0 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | ¥ 111,333 | ¥ 49,073 | ¥ 43,854 |
Condensed Financial Informat143
Condensed Financial Information of the Company - Condensed Balance Sheets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of information about amounts recognised in balance sheet [Line Items] | ||||
Non-current assets | ¥ 963,917 | ¥ 934,349 | ||
Current assets | 558,196 | 586,645 | ||
Current liabilities | 529,982 | 536,389 | ||
Non-current liabilities | 3,250 | 2,467 | ||
Total equity | 988,881 | 982,138 | ¥ 920,368 | ¥ 888,983 |
Parent [member] | ||||
Disclosure of information about amounts recognised in balance sheet [Line Items] | ||||
Non-current assets | 490,256 | 487,290 | ||
Current assets | 2,718 | 2,144 | ||
Current liabilities | 3,658 | 5,415 | ||
Non-current liabilities | 0 | 0 | ||
NET ASSETS | 489,316 | 484,019 | ||
Total equity | ¥ 489,316 | ¥ 484,019 |
Condensed Financial Informat144
Condensed Financial Information of the Company - Condensed Statements of Cash Flows (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of cash flow statement [Line Items] | |||
Net cash used in operating activities | ¥ 245,514 | ¥ 253,701 | ¥ 235,089 |
Net cash generated from investing activities | (106,533) | (194,523) | (142,743) |
Net cash used in financing activities | (108,231) | (48,958) | (86,510) |
Net increase/(decrease) in cash and cash equivalents | 30,750 | 10,220 | 5,836 |
Cash and cash equivalents at beginning of year | 90,413 | 79,842 | 73,812 |
Effect of changes in foreign exchange rate | (527) | 351 | 194 |
Cash and cash equivalents at end of year | 120,636 | 90,413 | 79,842 |
Parent [member] | |||
Disclosure of cash flow statement [Line Items] | |||
Net cash used in operating activities | (72) | (69) | (78) |
Net cash generated from investing activities | 28,840 | 12,900 | 9,760 |
Net cash used in financing activities | (28,913) | (12,813) | (11,964) |
Net increase/(decrease) in cash and cash equivalents | (145) | 18 | (2,282) |
Cash and cash equivalents at beginning of year | 796 | 753 | 3,030 |
Effect of changes in foreign exchange rate | (97) | 25 | 5 |
Cash and cash equivalents at end of year | ¥ 554 | ¥ 796 | ¥ 753 |