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UBS UBS Warburg Warburg –– ““Global Technology ConferenceGlobal Technology Conference””Mr. Ding Mr. Ding DonghuaDonghua, Chief Financial Officer of CMHK, Chief Financial Officer of CMHK

February 19, 2001February 19, 2001

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China Mobile (Hong Kong) LtdChina Mobile (Hong Kong) Ltd

History of DevelopmentHistory of Development

Business StrategyBusiness Strategy

Latest DevelopmentLatest Development

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History of DevelopmentHistory of Development

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Operations CoverageOperations Coverage

ShandongShandong

GuangxiGuangxi

LiaoningLiaoning

BeijingBeijing

TianjinTianjinHebeiHebei

ShanghaiShanghai

JiangsuJiangsu

GuangdongGuangdong

ZhejiangZhejiangFujianFujian

HainanHainan

HenanHenan

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ZhejiangMobile

ZhejiangZhejiangMobileMobile

Jiangsu Mobile

Jiangsu Jiangsu MobileMobile

Fujian Mobile

Fujian Fujian MobileMobile

Henan Mobile

Henan Henan MobileMobile

HainanMobile

HainanHainanMobileMobile

Beijing Mobile

Beijing Beijing MobileMobile

Shanghai Mobile

Shanghai Shanghai MobileMobile

Tianjin Mobile

Tianjin Tianjin MobileMobile

Hebei MobileHebei Hebei

MobileMobileLiaoning Mobile

Liaoning Liaoning MobileMobile

Shandong Mobile

Shandong Shandong MobileMobile

Guangxi Mobile

Guangxi Guangxi MobileMobile

100%

China Mobile (HK) LtdChina Mobile (HK) Ltd

24.42%

100%

Public ShareholdersPublic ShareholdersPublic Shareholders

100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

GuangdongMobile

GuangdongGuangdongMobileMobile

Ownership StructureOwnership Structure

Shenzhen CompanyShenzhen Shenzhen CompanyCompany

China Mobile (HK) Group LtdChina Mobile (HK) Group LtdChina Mobile (HK) Group Ltd

China Mobile Communications Corporation

China Mobile Communications Corporation

75.58%

100%

100%

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Our Growth and Market LeadershipOur Growth and Market Leadership

* Market share as of June 30, 2000 in our service area

Others17%

CMHK83%

(mm)

Market Share*Market Share*Subscriber GrowthSubscriber Growth

9797--99 99 CAGR = 114%

CAGR = 114%

3.43.46.56.5

15.615.6

42.842.8

1997 1998 1999 Nov 2000

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Strong Financial PerformanceStrong Financial Performance

US$ (mm)

1997 1998 1999

1,871

3,182

4,666

2,046

1997-99 CAGR = 58%

3,490

1H 2000

71%

Revenue GrowthRevenue Growth EBITDA GrowthEBITDA Growth

1997-99 CAGR = 63%

EBITDA (US$ mm)Margin

58%56%53%

1,157

2,0311,554

988

49%

1997 1998 1999 1H 2000

76%2,6092,609

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Much Larger Revenue and EBITDA BaseMuch Larger Revenue and EBITDA Base

**For the six months ended June 30, 2000For the six months ended June 30, 2000

Revenue* EBITDA*

US$ (mm)54

.4%

US$ (mm)

50.3%

3,4901,897

0500

1,0001,5002,0002,5003,0003,5004,0004,5005,0005,500

CMHK Pro FormaCombined

5,3875,387

2,0311,021

0

500

1,000

1,500

2,000

2,500

3,000

3,500

CMHK Pro FormaCombined

3,0523,052

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High Growth Market LeadersHigh Growth Market LeadersSubscriber GrowthSubscriber Growth

3.7

6.5

10.1

13.6

4.2%

2.5%

1.4%

6.1%

1997 1998 1999 1H 2000

1997

-99 C

AGR = 65%

Revenue GrowthRevenue Growth EBITDA GrowthEBITDA Growth

1,897

3,186

2,278

1,567

1997 1998 1999 1H 2000

33%

1997

-99 C

AGR = 43%

Revenue (US$ mm)

787

1,016

1,609

1,021

50%50%

45%

1997 1998 1999 1H 2000

46%

1997

-99 C

AGR = 43%

EBITDA (US$ mm)EBITDA Margin (%)

Sub (’mm)Penetration

54%

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Significantly Increased Covered PopulationSignificantly Increased Covered Population

115188

324

607

0

100

200

300

400

500

600

700

1997 1998 1999 June 30 2000

Post-AcquisitionPro Forma

Population Under Coverage (mm)Population Under Coverage (mm)

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Enhanced Market PositionEnhanced Market Position

19981998AcquisitionAcquisition

CMHKCMHK36.1%36.1%

June 30, 1999June 30, 1999

CMHKCMHK55.9%55.9%

June 30, 2000June 30, 2000

CMHKCMHK20.5%20.5%

Dec 31, 1998Dec 31, 1998PrePre--acquisitionacquisition

% of Nationwide Cellular Subscribers% of Nationwide Cellular Subscribers

19991999AcquisitionAcquisition

20002000AcquisitionAcquisition

CMHKCMHK26.1%26.1%

Dec 31, 1998Dec 31, 1998

2000 Acquisition (As of June 30)

CMHKCMHK 21.64 mm*21.64 mm*

TargetsTargets 13.64 mm*13.64 mm*

CombinedCombined 35.28 mm35.28 mm

% Increase% Increase 63%63%

* September 20, 2000: CMHK 23.9mm and targets 15.4mm

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The second largest mobile operator The second largest mobile operator in the worldin the world

7.4 8.4 11.7 13.5 17.420.0

25.631.6

35.3*59.0

0

10

20

30

40

50

60

SprintPCS

ChinaUnicom

AT&T SKTelecom

SBC TIM Verizon NTTDoCoMo

ChinaMobile(HK)

Vodafone

* Data as at June 30, 2000** CMHK had 42.8 mm subscribers by the end of November, 2000

Subscribers (mm)Subscribers (mm)

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Business StrategyBusiness Strategy

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Business StrategyBusiness Strategy

Core Mobile Core Mobile BusinessBusiness

OpportunitiesOpportunitiesin the Broaderin the Broader

Telecom MarketTelecom Marketin Chinain China

FurtherFurtherAcquisitionAcquisition

OpportunitiesOpportunities

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Growing Core Mobile BusinessGrowing Core Mobile Business

Broadening subscriber base and capturing market penetration

Integrate our operations and gain efficiency and synergy

Focus on high quality subscribers

Nurture human capital

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Integration and SynergiesIntegration and Synergies

Integration PlanUnify operating procedures

Centralize reporting and financial control

Introduce Performance based evaluation standards

Integrate Management

Enhanced SynergiesEnhanced volume cost savings and negotiation position

Sharing of R&D, new service development and settlement

Central marketing and consistent branding

Management resources and expertise sharing

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New Revenue Streams in Broader Telecom Market in ChinaNew Revenue Streams in Broader Telecom Market in ChinaM

ovin

g u p

t he

valu

e c h

ain

• Mobile Commerce Solution• Mobile Info Service Center• Mobile Portal

Wireless Portal Mobile E-Commerce

and Content Aggregation

Wireless Internet Access/Broadband Services

• WAP• GPRS• 3G• CMNet

• Internet Access

• VoIPIP Based Voice

and Data Services

• SMS

• VoiceCore Mobile Communications Services

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Pioneering Mobile Data in ChinaPioneering Mobile Data in China

SMS based services achieving scale

Substantial growth in IP long-distance services

Increasing popularity in WAP services

Significant progress made with experiments in GPRS mobile technology

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Future Acquisition PossibilitiesFuture Acquisition Possibilities

In remaining 18 regionsIn remaining 18 regionsin mainland China, as of in mainland China, as of

June 30, 2000June 30, 2000

52% 52% of national of national populationpopulation

3% penetration3% penetration

16.7 mm China Mobile 16.7 mm China Mobile subscribers*subscribers*

Subscriber CAGR 75% Subscriber CAGR 75% (97 (97 –– 99)99)

* more than 20 mm as of November 20, 2000

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Latest DevelopmentLatest Development

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Total SubscribersTotal Subscribers(Thousand)

19142 19340 19707 19964 20292

339732496 2823 3188 3975 4705

8819

05000

1000015000200002500030000350004000045000

2000.6 2000.7 2000.8 2000.9 2000.10 2000.11

Contract Subscribers Pre-paid Card Users

Rapid GrowthRapid Growth

2163822163

2289523939

24997

* 13 * 13 subsidiaries combined figuressubsidiaries combined figures

42792*

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New Product InitiativesNew Product Initiatives

SMS-based services achieved considerable scale

Continuous development of WAP services

Significant progress in GPRS mobilecommunications technology experiment

Substantial growth in IP long-distance services

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Strategic Alliance with Strategic Alliance with VodafoneVodafoneFar Reaching Cooperation

Sharing of management experience and exchange of human resources

Sharing of operational expertise

Subscriber management

Network operations

Marketing and branding

Exclusive licensing of technology to CMHK in China

Potential creation of joint ventures

Strategic alliance governance structure

Long-term objective with strong personal commitments by respective CEOs and senior leadership

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Strategic Alliance for R&D of Strategic Alliance for R&D of Wireless Data ServicesWireless Data Services

CMHK & HP formed strategic alliance for R&D of wireless data services

To broaden CMHK’s ARPU base andstimulate its subscriber growth

To expand room for wireless data technology development

To strengthen co-operation in R&D of wireless data services between CMHK and HP

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Main Content of Tariff Adjustment Main Content of Tariff Adjustment (( II ))

Reduction in domestic long-distancecalling charges

Reduction in international and Hong Kong, Macau and Taiwan long-distance calling charges

Reduction in digital transmission lines leasing fees

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Main Content of Tariff Adjustments ( Main Content of Tariff Adjustments ( IIII ))

Cancellation of surcharges in telecommunications services

Notice relating to other charges

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ImplementationImplementation of Calling Party Pays System?of Calling Party Pays System?

Transparency of tariff policy will be further enhanced

Operators will have more autonomy in determiningtariff structure

Overall objective of telecommunications tariff adjustments:

better development of telecommunications industrybringing tariff in line with international standard

“ Calling Party Pays” will not be implemented within two years

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China Mobile (Hong Kong) Limited

A WorldA World--ClassClass

Global Wireless MultimediaGlobal Wireless Multimedia

Services ProviderServices Provider

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