China Motion Telecom International Limited
Corporate Profile

Established in 1990, China Motion Telecom International Limited ("China Motion", together with its subsidiaries, collectively referred as the "Group") is a well-regarded telecommunications company with strong networks in Hong Kong and Mainland China. China Motion has been listed on the Main Board of the Stock Exchange of Hong Kong Limited (stock code: 989) since 1997.

Based on its extensive market resources and operational experiences established over decade, the Group has built up a solid customer base and reputable brand names in the Hong Kong and the China telecommunications markets. With consistency, innovation and commitment to market needs and customer satisfaction, the Group has transformed into a multi-faceted telecommunications services provider. Being first an enterprise merely providing telecommunications equipment, products and technical services, the Group has now successfully extended its services scopes into provision of innovative and high-growth services. Now, three core businesses of the Group include mobile communications services, distribution and retail chain and retail IDD services.

Mobile Communications Services
Relied on the strong business foundation, the Group was granted a licence of "Mobile Virtual Network Operator" by the Office of the Telecommunications Authority (OFTA) in 2001, officially becoming one of the mobile service providers in Hong Kong to offer value-added telecommunications services.

Running its mobile communications services as a Mobile Virtual Network Operator ("MVNO") under the "CM Mobile" brand, which remains a major revenue driver for the Group, the Group has aggressively launched diversified product portfolio and enhanced service quality to satisfy the needs of different customers. To target the communications needs of the frequent cross-border travellers and business travellers between the Mainland China and Hong Kong, the Group leverages on its strengths in cross-border communications platform and retail chain network to launch series of cross-border mobile services and other high margin value-added services. Services includes "Single SIM Dual Number" service, being the brand product firstly introduced in the Hong Kong market, and prepaid cards services and other related value-added mobile communications services for the visitors from Mainland.

Leveraging on the Group's strengths in cross-border communications, extensive distribution and retail networks and experiences in customer services, together with the cost-efficient marketing strategies for actively promoting "CM Mobile" brand, "CM Mobile" has aggressively attracted and maintained high-end customers who travelled frequently between the Mainland China and Hong Kong and also increased its profitability. Accordingly, the Group has established its leadership in the cross border mobile communications services.

Apart from continuing to expand sales channels and dealerships, the Group will continue to strengthen its sales team to serve targeted corporate clients, implement credit measures and focus on high margin value-added services so as to protect and grow its core revenue base.

Distribution and Retail Chain
The Group markets its sales and retail chain business under the "CM Concept" brand. For being promoted as a 'one-stop-shop' sales platform for telecommunications products and services through 22 retail outlets, "CM Concept" not only provides a comprehensive range of pre- and after sales services to customers, but it also specifically functions as specialty shops for Mainland China-Hong Kong cross-border communications services. Through its extensive sales network over Hong Kong and eastern China region, "CM Concept" remains to provide different kinds of diversified value-added services and products, including new model handsets and fittings, calling cards and maintenance service and so on to enlarge its market share.

Following the market trend in the telecommunications industry, the Group readjusted its development focus of its retail business by emphasising sales efforts in the high margin handsets and also promoting its telecommunications services. Besides, retail outlets were also renovated to project a new energetic and youthful image from a traditional old one with an aim to attracting the middle-level income group of customers.

The Group's IDD pre-paid calling cards business remains an undisputed leader in the outbound calling to China. Besides the retail outlets, the Group maintains a network of more than 1,000 distributors and resellers, making it one of the largest distribution networks in the territory. To build on this base, the Group will continue to enhance its offerings in the mobile prepaid and international ethnic market.

Retail IDD Services
Being the first telecommunications operator formally granted a licence to operate fixed-line service network in 2003 after the full liberalisation of fixed-line services market in Hong Kong, the Group is one of the ten Fixed Telecom Network System licensed operators which owns a premier IDD "0050" prefix dialing code. By continuous enhancement in marketing efforts and service quality over years and through cooperation with major telecommunications operators in the Mainland China and overseas telecommunications services providers, the Group!|s retail IDD business has further built up a stable customer base of registered subscribers. The Group has also carried out various retail IDD services and products, like IDD calling service, IDD roaming service, stored-value IDD calling card, in order to fulfil different market needs.

The Group will focus on developing new services to consolidate its leadership in the mobile and distribution business. In addition, the Group will continue to fine tune its business model and will actively explore different potential investment opportunities to strengthen and expand its businesses portfolio.


China Motion Telecom International Limited
31 March 2009