Mobile Communications Services

Turnover of the Group’s mobile communications services business totalled HK＄172 million, up 38% when compared with last year. The increase was attributable to promising growth in the Mobile Virtual Network Operator (MVNO) business, which outweighed the revenue loss resulting from the service contract expiry of 30,000 mobile subscribers in China in September 2003. The business relating to the Group’s remaining 70,000 subscribers in China has expired at end of March 2004. 

”CM Mobile” is the brand under which the Group offers MVNO services. Lt continued to enhance service quality and expand product offerings to satisfy various customers’ needs. The coverage of the popular “Dual-Number Single SIM Mobile Service” was expanded beyond Guangdong province to include Shanghai. The Group launched prepaid stored value SIM cards targeting mainland visitors. “CM Mobile” also pioneered the introduction of “Dual-Network Mobile” also pioneered the introduction of  “Dual-Network Mobile Service” in Hong Kong. 

Leveraging on the Group’s strengths in cross-border telecommunications, its extensive distribution and retail  network and its experience in customer services, “CM Mobile” has been aggressively acquiring subscribers from among frequent cross-border travellers. The number of subscribers to the Group’s mobile communications services business was 60,000 on 31 March 2004. The majority of “CM Mobile” services subscribers were acquired through “CM Concept” stores. 

The Group’s mobile communications services business has begun to develop overseas markets. In April 2004, it was awarded a trial operating license in Taiwan with commercial launch scheduled for later in the year. We are also actively looking for opportunities to introduce the “Dual-Number single SIM Mobile Service” in Southeast Asian countries, key travel destinations for mainland travellers. 

With efforts to expand market presence in Hong Kong and overseas markets, the Group believes the MVNO business will progress to break-even towards the end of the current financial year.