The Company's operation was on track as planned for the first three quarters of 2011. Excluding the amortisation of upfront connection fees of RMB98 million, the operating revenues were RMB 182,357 million, representing an increase of 11.8% from the same period of last year. Revenues from sale of mobile terminals were approximately RMB10,100 million, increased by nearly two times over the corresponding period of last year. Meanwhile, other operating expenses increased significantly from the same period of last year as a result of the corresponding significant increase in the costs of mobile terminals sold. Over the period, the Company increased the sales initiatives to effectively foster the business growth momentum and therefore, selling, general and administrative expenses increased by 13.7% from the same period of last year. EBITDA (before CDMA network capacity lease fees) was RMB 72,389 million, an increase of 6.1% from the same period of last year. The profit attributable to equity holders of the Company was RMB 13,859 million, representing an increase of 10.1% from the same period of last year. EBITDA margin was 39.7%, representing a decline of 2.1 percentage points from 41.8% of the same period of last year.

For the first three quarters of 2011, the mobile services continued to grow rapidly, demonstrating concurrent achievements in rapid expansion in mobile customer scale and revenues and progressive increase in subscriber market share. The number of mobile subscribers reached a total number of 117 million, of which 28.43 million were 3G subscribers. The net addition of mobile subscribers was 26.43 million for the first three quarters and the average mobile service revenue per user per month (ARPU) had a moderate decline as compared to that for the full year of last year.

We will persist in deepening strategic transformation, insisting on differentiated strategy and accelerating the scale development. As for the fundamental services, we will expand the government and enterprise markets through promotion of industry applications, develop the public customers leveraging integrated service offering, and expand mobile market riding on 3G services. We shall also attend to the cluster market and strengthen rural market development.

We proactively execute our strategic positioning as ''a leader of the intelligent pipeline, a provider of an integrated platform and a participant in content and application development''. To meet the dynamic needs of the market, we target to execute a progressive plan in the next three to five years to fully utilise the network strengths of full services operator in developing an intelligent pipeline enabled with customer identification and business awareness, a highly integrated, fully functional, open and fair integrated capability platform and self-operated core applications products. Through extensive collaboration with value chain participants, we also endeavour to support the deployment and operation of content and applications of the collaborative participants, persistently providing enriched communication information experience to our customers and promoting a healthy and vigorous value chain.

In order to effectively support the Company's transformation, we made appropriate modification to investment structure to further increase the weight of investment in broadband and Internet services, which greatly contributed to the scale development of our transformation services. We have systemically upgraded access networks with optic fibre, achieving significant enhancement of customer access bandwidth. During the first half of 2011, capital expenditure was RMB20,967 million, an increase of 17% from last year, of which, investment in broadband and Internet services accounted for 71% of the total capital expenditure. For 2011, we budgeted the capital expenditure of RMB50 billion.

Taking into account the return to shareholders, the Company's cash flow and its capital requirements for planned acquisition of mobile network from parent company in 2012, shareholders resolved at 2010 Annual General Meeting that a dividend being an equivalent of HK$0.085 per share be declared for the financial year 2010, which is the same as 2009.