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Case Background
Golden Dragon Mobile Hong Kong Company Limited Overview
China Golden Dragon Mobile Limited (CGDM) is a company listed on both the Hong Kong (HKEx) and the New York Stock Exchanges (NYSE). It is also a Chinese-government state-owned enterprise which has one of the world’s largest mobile phone subscriber bases. It is currently listed seventh in terms of market capitalisation on the HKEx. CGDM is the largest mobile telecommunications provider in China and one of the largest telecommunications companies in the world. Based in China, it has mobile networks in all 31 provinces, autonomous regions, directly-administered municipalities in Mainland China and in the Hong Kong SAR through these subsidiaries. Golden Dragon Mobile Hong Kong Company Limited (GDHK) is one of 33 wholly-owned subsidiaries of CGDM. This Hong Kong subsidiary began in 1996 and was the first Personal 1 Communication Service (PCS ) provider to launch services in Hong Kong under the brand “Dragon Magic Mobiles” (DMM). As the market leader in the Hong Kong PCS market, GDHK currently has 3.2 million mobile phone subscribers. It provides a range of communication services including mobile voice, international direct dialling and roaming, and wireless data which are dependent on advanced technologies including WAP, GPRS and EDGE. All of these are delivered through the well-established and respected Dragon Magic Mobiles brand. Capitalising on the strong support of its parent company, GDHK has launched a series of cross-border mobile services for customers travelling between Hong Kong and mainland China. GDHK also draws all research and development (R&D), new product development, and a majority of its manufacturing from CGDM. However, not all manufacturing is operated through the parent company, as some of DMM’s manufacturing falls under GDHK. The GDHK head office is based in Hong Kong. The Hong

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