Lisa Lai - IR Department: Ladies and gentlemen, good afternoon. I am Lisa with Investor Relations Department of China Telecom Corporation Limited. Here on behalf of the Company, I would like to welcome everyone to our 2012 Annual Results Announcement Presentation. This presentation will be conducted in Chinese with simultaneous interpretation. The Q&A session will be hosted by a moderator and also with consecutive interpretation. Please be reminded to switch your mobile phones.
First of all, I would like to introduce the Company's management present today; Mr. Wang Xiaochu, Chairman and CEO; Mr. Yang Jie, President and COO; Madam Wu Andi, Executive Vice President and CFO. Thank you for joining us today. I hope the presentation will be helpful to you.
Now, let's welcome our Chairman Wang to present the Company's performance in 2012.
Wang Xiaochu - Chairman and CEO: Good afternoon, ladies and gentlemen. I'm very pleased to meet you all and to introduce the Company performance in 2012. Today's presentation will be divided into three sections. First, I will talk about the Company's overall performance. This will be followed by the President Yang and Madam Wu, who will represent our business overview and our financial performance respectively.
In 2012, the Company achievements are highlighted as follows. First, we achieved a robust business growth which optimized the revenue structure and drove double-digit revenue growth surpassing industry average. Second, 3G traction fostered mobile scale development and industry-leading revenue growth with enhanced customer value. Third, we accelerated fibre deployment to boost broadband development and strengthen high bandwidth and high quality edges, which further enforced our core competence and competitive advantages. Last, the Company timely completed mobile network acquisition to enhance future profitability.
In 2012, the operation of the Company progressed as planned and continued to cause satisfactory revenue growth momentum. Our operating revenues were RMB283.1 billion, by 15.5% year-over-year. Excluding revenue from mobile terminal sales, operating revenue were RMB258.3 billion, an increase of 11.8%. EBITDA before pre-leasing fee was RMB96.4 billion while EBITDA margin was 37.3%.
Net profit was RMB14.9 billion, down by 9.5% year-over-year. The decline in net profit were mainly attributable to the Company’s appropriate increase in marketing initiatives for launching iPhone to break through the high-end market and enhance revenue growth despite short-term pressure on profitability and is expected to significantly enhance our long-term sustainable growth and value.
In 2012, the Company deepened strategies transformation and registered double-digit growth in operating revenues, exceeding the industry average. The Company sustained the good momentum and revenue structure was further optimized.
The proportion of revenue from the core businesses significantly increased and accounted for 85% of the operating revenues. Driving strong growth momentum to operating risk of the company was to effectively alleviate as a proportion of the wireline voice revenue further reduced it to 15%.