Financial Performance - Revenue reached RMB 372.6 billion, a year-on-year increase of 5.0%[1][3] - Net profit attributable to equity holders was RMB 18.7 billion, up 11.8% year-on-year[1][3] - Return on equity reached 5.4%, the best level in recent years[1][3] - Revenue for 2023 reached RMB 372,597 million, a 5% increase from RMB 354,944 million in 2022[16] - Net profit attributable to equity holders of the company was RMB 18,726 million, up 11.8% from RMB 16,745 million in 2022[16] - Basic earnings per share (EPS) for 2023 were RMB 0.61, compared to RMB 0.55 in 2022[16] - Total comprehensive income for 2023 was RMB 19,241 million, a 13% increase from RMB 17,027 million in 2022[17] - Total service revenue for 2023 was RMB 335.17 billion, an increase from RMB 319.348 billion in 2022[29] - Sales revenue from communication products in 2023 was RMB 37.427 billion, up from RMB 35.596 billion in 2022[29] - Basic and diluted earnings per share for 2023 were RMB 0.61, up from RMB 0.55 in 2022[33] Capital Expenditure and Investment - Capital expenditure for 2023 was RMB 73.9 billion, with a shift in investment focus from traditional communication services to high-growth digital and intelligent network services[1][3] - Fixed assets increased to RMB 355,995 million in 2023, up 1% from RMB 352,433 million in 2022[18] Dividend and Shareholder Returns - Total annual dividend per share was RMB 0.3366, a 22.8% increase year-on-year[1][3] - Proposed final dividend for 2023 is RMB 4,088 million, subject to approval at the annual general meeting[19][14] - The company declared an interim dividend of RMB 0.203 per share for 2023, totaling RMB 6.211 billion[37] - The proposed final dividend for 2023 is RMB 0.1336 per share, amounting to RMB 4.088 billion[37] User Base and Market Penetration - Mobile user base reached 333 million, with a net addition of 10.6 million users in 2023, a 90% increase year-on-year[5] - 5G package user penetration rate reached 78%, up 12 percentage points year-on-year[5] - Fixed-line broadband user base reached 113 million, with a net addition of 9.79 million users, the highest in nearly a decade[5] Digital and Intelligent Network Business - Revenue from the digital and intelligent network business reached RMB 75.2 billion, accounting for about a quarter of total revenue from the two main businesses[7] - Revenue from China Unicom Cloud reached RMB 51.03 billion, a year-on-year increase of 41.6%[7] Financial Position and Liabilities - Total assets as of December 31, 2023, were RMB 661,051 million, up 2.9% from RMB 642,663 million in 2022[18] - Cash and cash equivalents decreased to RMB 47,733 million in 2023 from RMB 55,297 million in 2022[18] - Total equity attributable to equity holders of the company was RMB 351,474 million, up 2.9% from RMB 341,619 million in 2022[19] - Total liabilities increased to RMB 307.153 billion in 2023 from RMB 299.127 billion in 2022[20] - Current liabilities rose to RMB 263.652 billion in 2023 compared to RMB 250.870 billion in 2022[20] - Short-term bank borrowings increased to RMB 681 million in 2023 from RMB 331 million in 2022[20] - Accounts payable and accrued expenses grew to RMB 161.279 billion in 2023 from RMB 154.838 billion in 2022[20] - Lease liabilities slightly increased to RMB 12.640 billion in 2023 from RMB 12.495 billion in 2022[20] - The company has an unused revolving bank credit facility of approximately RMB 190.1 billion as of December 31, 2023[23] - The company's current liabilities exceeded current assets by approximately RMB 105.6 billion in 2023 (2022: RMB 104.6 billion)[23] Tax and Regulatory Compliance - Income tax expense for 2023 was RMB 4.023 billion, compared to RMB 3.751 billion in 2022[31] - The company's subsidiaries in mainland China are subject to a corporate income tax rate of 25%, with some eligible for a preferential rate of 15%[30] - The company was approved as a Chinese resident enterprise by the State Taxation Administration, exempting it from withholding tax on dividends distributed to overseas shareholders[37] Accounts Receivable and Credit Risk - Accounts receivable as of 2023 totaled RMB 38.692 billion, an increase from RMB 26.331 billion in 2022[34] - The company has no significant concentration of credit risk in accounts receivable due to its large customer base[34] Accounting Standards and Policies - The company adopted new and revised Hong Kong Financial Reporting Standards, including HKFRS 17 "Insurance Contracts" and amendments to HKAS 8 "Definition of Accounting Estimates"[24] - The company confirmed deferred tax assets and liabilities related to right-of-use assets and lease liabilities as of January 1, 2022[25] Miscellaneous - Total connected communication users as of January 2024 were not disclosed in the provided content[14]

Financial Performance - For the first three quarters of 2023, the company's operating revenue reached RMB 281.69 billion, an increase of 6.7% compared to the same period last year[3] - Service revenue amounted to RMB 252.52 billion, reflecting a year-on-year growth of 5.4%[2] - The company's attributable profit to equity holders was RMB 17.25 billion, up 10.1% year-on-year[2] - EBITDA for the period was RMB 78.82 billion, representing a 2.7% increase from the previous year[3] Revenue Breakdown - The industrial internet business generated revenue of RMB 60.69 billion, accounting for 24.0% of service revenue, an increase of 1.8 percentage points year-on-year[3] - The mobile user base reached 332 million, with a net increase of 9.67 million users, driving mobile service revenue to RMB 130.70 billion, a 2.6% increase year-on-year[3] - Broadband access and application revenue grew by 8.7% to RMB 46.04 billion, with a broadband ARPU of RMB 47.9[3] - The company reported a significant growth in its cloud services, achieving revenue of RMB 36.70 billion, a 36.6% increase year-on-year[4] - The number of IoT connections reached 467 million, contributing to an IoT business revenue of RMB 7.52 billion, a year-on-year increase of 21.9%[4] Research and Development - The company accelerated its R&D efforts, with the number of patents granted reaching 1,888, a 38.2% increase compared to the previous year[4] Financial Reporting and Governance - The company emphasizes that the financial and operational data presented are based on internal data and management accounts, which have not been reviewed or audited by auditors[6] - EBITDA is highlighted as a key performance indicator for the telecommunications industry, reflecting earnings before financial expenses, interest income, and other factors[6] - Broadband comprehensive ARPU is defined as the average monthly revenue from broadband access and applications divided by the average number of broadband users[6] - Revenue from the "Unicom Cloud" segment includes income from cloud resources, platforms, services, integration, interconnectivity, and security solutions[6] - Personal digital life products include video ringtones, Unicom Assistant, and Unicom Cloud Disk, while smart home products encompass Unicom Networking, Ultra HD, Home Monitoring, and Smart Fixed-line services[6] - The company warns that certain statements may be considered forward-looking and involve known and unknown risks and uncertainties that could lead to significant deviations from actual performance[6] - The board of directors consists of executive directors and independent non-executive directors, ensuring a diverse governance structure[7]

Financial Performance - The company's revenue reached RMB 191.8 billion, an increase of 8.8% year-on-year, while service revenue was RMB 171.0 billion, up 6.3% year-on-year[9]. - EBITDA amounted to RMB 53.6 billion, reflecting a year-on-year growth of 4.1%, and profit attributable to equity holders was RMB 12.4 billion, a 13.1% increase year-on-year[9]. - The company achieved operating revenue of RMB 191.83 billion in the first half of 2023, representing a year-on-year growth of 8.8%[25]. - Service revenue reached RMB 171.04 billion, an increase of 6.3% compared to the same period last year[25]. - Net profit for the first half of 2023 was RMB 12.39 billion, up RMB 1.43 billion year-on-year[25]. - The company’s cash flow from operating activities was RMB 38.29 billion, with capital expenditures amounting to RMB 27.59 billion[25]. - The company’s basic business revenue was RMB 128.07 billion, reflecting a year-on-year growth of 3.3%[28]. - The company reported a net profit margin of 12%, consistent with industry standards, reflecting effective cost management strategies[149]. User Growth and Market Expansion - The number of large connection users reached 928 million, with a net increase of over 66 million users[11]. - The penetration rate of 5G package users exceeded 70%, indicating an optimized user structure[12]. - Revenue from the industrial internet business reached RMB 42.97 billion, marking a 16.3% increase year-on-year[28]. - China Unicom reported a significant increase in user data, with a total of 300 million mobile subscribers, reflecting a growth of 5% year-over-year[149]. - China Unicom plans to expand its market presence in Southeast Asia, aiming for a 15% increase in regional subscribers by 2025[149]. Investment and Capital Expenditure - Capital expenditure for the first half of the year was RMB 27.6 billion, supporting the enhancement of network capabilities[9]. - The company's capital expenditures totaled RMB 275.9 billion in the first half of 2023, focusing on 5G, broadband, government and enterprise, and computing power network construction[41]. - The company is investing in new technology development, with a budget allocation of HKD 5 billion for R&D in 2024[149]. - The company is exploring potential acquisitions to bolster its service portfolio, with a budget of HKD 10 billion earmarked for this purpose[149]. Dividends and Shareholder Returns - The company declared an interim dividend of RMB 0.203 per share, a 23% increase compared to the previous year[9]. - The company proposed an interim dividend of RMB 6,211 million for 2023, compared to RMB 3,335 million for the final dividend of 2022[49]. - The interim dividend for 2023 is set at RMB 0.203 per share, amounting to approximately RMB 6.211 billion, an increase of 22.5% from RMB 5.049 billion for the same period in 2022[90]. Research and Development - R&D investment intensity reached 2.94%, leading the industry, with a total of 1,326 authorized patents, a 70% increase year-on-year[20]. - The company has initiated a strategic partnership with a leading tech firm to enhance its digital service capabilities, expected to launch in Q3 2024[149]. Financial Position and Assets - The company’s asset-liability ratio stood at 46.4% as of June 30, 2023[25]. - The company's total assets increased to RMB 659.3 billion as of June 30, 2023, up from RMB 642.7 billion at the end of the previous year[43]. - The company's total liabilities increased to RMB 305,680 million from RMB 299,127 million, showing a rise of 2.5%[50]. - The company's cash and cash equivalents stood at RMB 52,355 million as of June 30, 2023, reflecting a strong liquidity position[48]. Revenue Streams and Business Segments - The Internet of Things (IoT) business generated revenue of RMB 5.4 billion, marking a year-on-year growth of 24%[13]. - The company's cloud services revenue was RMB 25.5 billion, up 36% year-on-year, with a target to exceed RMB 50 billion for the full year[14]. - Big data business revenue reached RMB 2.9 billion, a 54% increase year-on-year, maintaining a market share of over 50%[15]. - The security business saw a significant revenue increase of 178% year-on-year, driven by a comprehensive security service model[17]. Operational Efficiency and Cost Management - The company's employee compensation and benefits expenses decreased by 0.7% year-on-year to RMB 322.5 billion, representing 16.8% of total revenue[33]. - Other operating expenses amounted to RMB 50.994 billion, an increase from RMB 45.646 billion in the previous year, indicating a rise of approximately 11.5%[66]. - The company reported a decrease in cash generated from operations, which was RMB 41,269 million for the six months ended June 30, 2023, compared to RMB 43,977 million for the same period in 2022[52]. Future Outlook - Future outlook indicates a targeted revenue growth of 8% for the next fiscal year, driven by enhanced service offerings and market expansion strategies[149]. - A new product line focused on 5G services is set to be introduced, projected to contribute an additional HKD 2 billion in revenue[149]. - User satisfaction ratings improved to 85%, up from 80% last year, indicating better service quality and customer engagement[149].

Financial Performance - The company's operating revenue reached RMB 191.8 billion, an increase of 8.8% year-on-year, with net profit attributable to equity holders reaching RMB 12.4 billion, up 13.1% year-on-year, achieving double-digit growth for seven consecutive years[1][3] - The total revenue for the six months ended June 30, 2023, was RMB 191.833 billion, up from RMB 176.261 billion in the prior year, reflecting an increase of about 8.5%[31] - The company's net profit for the first half of 2023 was RMB 12.39 billion, an increase of RMB 1.43 billion compared to the previous year[40] - The net profit for the period was RMB 12,500 million, up from RMB 10,996 million in the previous year, reflecting a growth of approximately 13.7%[20] - The pre-tax profit for the first half of 2023 was RMB 153.2 billion, marking a 14.2% increase from RMB 134.2 billion in the same period last year[54] Revenue Breakdown - The company's industrial internet revenue reached RMB 43 billion, accounting for over 25% of service revenue for the first time, becoming a key driver for revenue growth and structural optimization[1][4] - Revenue from the industrial internet business was RMB 42.97 billion, reflecting a year-on-year growth of 16.3%[43] - The revenue from the company's cloud services reached RMB 25.5 billion, a year-on-year increase of 36%, with an annual revenue target of over RMB 50 billion[1][7] - The company's IoT business revenue achieved RMB 5.4 billion, with a year-on-year growth rate of 24%[1][6] - The big data business generated RMB 2.9 billion in revenue, reflecting a 54% year-on-year increase, maintaining a market share of over 50%[1][8] User Growth - The total number of users in the company's big connection segment reached 928 million, with a net increase of over 66 million users[1][5] Dividends and Shareholder Returns - The board declared an interim dividend of RMB 0.203 per share (tax included), a 23% increase year-on-year, significantly higher than the 13% growth in basic earnings per share[1][3] - The company proposed an interim dividend of RMB 6,211 million for the first half of 2023, compared to RMB 3,335 million for the second half of 2022, indicating a significant increase[22] Assets and Liabilities - As of June 30, 2023, total assets amounted to RMB 659,329 million, an increase from RMB 642,663 million as of December 31, 2022, representing a growth of approximately 2.6%[21] - Total liabilities decreased from RMB 305,680 million as of December 31, 2022, to RMB 299,127 million as of June 30, 2023, showing a reduction of approximately 2.1%[23] - The company's asset-liability ratio stood at 46.4% as of June 30, 2023[40] Research and Development - The company achieved a research and development intensity of 2.94%, leading the industry, and the number of authorized patents increased by 70% to 1,326[13] Operational Efficiency - The cash flow from operating activities was RMB 38.29 billion, while capital expenditures amounted to RMB 27.59 billion[40] - The average latency of the backbone network remains industry-leading, supporting the company's competitive edge in network services[12] Market Position and Awards - The company has received multiple awards, including being ranked 267th in the 2023 Fortune Global 500 and 277th in the Forbes Global 2000[15] Sustainability Initiatives - The company is committed to green development, with new data centers aiming for a Power Usage Effectiveness (PUE) of less than 1.3[15] Future Outlook - The company aims for double-digit growth in net profit and continuous improvement in return on equity (ROE) for the upcoming year[16]

China Unicom (00762) H1 2023 Earnings Call August 09, 2023 04:30 AM ET Speaker0 Ladies and gentlemen, those of you from Beijing online, good afternoon. I'm Meng Zhu Sun. Today, I'm very happy to meet with you here, and thank you very much for your long term interest and support for China Unicom. On behalf of the management of the company, I would like to welcome you all to China Unicom's twenty twenty three interim results announcement. In today's announcement, we are holding this on-site in both Hong Kong ...

Financial Performance - Operating revenue for 2022 reached RMB 354.94 billion, an increase of 8.3% compared to RMB 327.85 billion in 2021[9] - Service revenue for 2022 was RMB 319.35 billion, up 7.8% from RMB 296.15 billion in 2021, with industrial internet revenue growing by 28.6% to RMB 70.46 billion[9] - EBITDA for 2022 was RMB 99.17 billion, reflecting a 3.0% increase from RMB 96.32 billion in 2021[9] - Net profit attributable to equity holders for 2022 was RMB 16.75 billion, a 16.5% increase from RMB 14.37 billion in 2021[9] - Basic earnings per share for 2022 were RMB 0.547, up 16.5% from RMB 0.470 in 2021[9] - The profit attributable to equity holders reached RMB 16.7 billion, up 16.5% year-on-year, setting a new high since the company's listing after excluding non-operating gains and losses[16] - EBITDA reached RMB 99.2 billion, the highest since the company's listing[16] - The company's net profit was RMB 16.74 billion, an increase of RMB 2.37 billion compared to the previous year[38] - The company's revenue for the year ended December 31, 2022, was RMB 354,944 million, an increase of 8.25% from RMB 327,854 million in 2021[188] - The net profit for the year was RMB 16,837 million, representing a growth of 15.99% compared to RMB 14,507 million in the previous year[190] Capital Expenditure and Investments - Capital expenditure for the year amounted to RMB 74.2 billion, reinforcing the company's fundamental stability[16] - The capital expenditure for 2023 is projected to reach RMB 76.9 billion, with over 19% allocated to computing network investments, representing a year-on-year growth of over 20%[30] - Total capital expenditures in 2022 amounted to RMB 742.0 billion, with major investments in mobile networks (RMB 264.1 billion) and enterprise innovation (RMB 141.2 billion)[48] - The company’s investment in fixed assets for the year ended December 31, 2022, was RMB 72,470 million, compared to RMB 72,047 million in 2021, indicating a slight increase of about 0.6%[197] User Growth and Market Expansion - The company added 310,000 5G mid-band base stations and 170,000 900MHz 5G base stations during the year[2] - Cumulative 5G industry application projects exceeded 16,000, covering 52 major categories of the national economy[3] - The company achieved a 380% increase in revenue from security services, serving over 10,000 clients[4] - The company reported a 121% increase in cloud revenue, indicating strong growth in digital services[5] - By the end of 2022, the company had 1 million 5G mid-frequency base stations and 2.5 billion broadband ports, with FTTH ports accounting for 93.2%[37] - The total user base reached 860 million, with broadband users surpassing 100 million and 5G package users reaching 210 million by December 2022[33] - The company signed new contracts worth over RMB 10 billion in 14 vertical industries, surpassing the total of the previous three years[34] - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[55] Research and Development - R&D expenses increased by 43% year-on-year, with the proportion of technology innovation personnel reaching 30% and authorized patents totaling 1,666[25] - The company is investing 2 billion HKD in research and development for new technologies, aiming to innovate in cloud computing and AI solutions[60] - The company has implemented a talent strategy focusing on technology innovation, with over 30% of its workforce being technology innovation talents, totaling 20,000 professionals across various levels[176] Corporate Governance and Social Responsibility - The board of directors emphasizes the importance of corporate governance for long-term success and sustainable development[64] - The company actively engages in social responsibility initiatives, focusing on environmental protection and support for vulnerable groups, while also aiding small and micro enterprises[28] - The company has established a corporate culture that integrates its operational management with its cultural ideals[63] - The company has a commitment to risk management and internal control, ensuring compliance with legal and regulatory requirements[64] - The company has established a comprehensive risk management system that combines routine risk assessment with dynamic key risk management[96] Dividend and Shareholder Information - The proposed final dividend for 2022 is RMB 0.109 per share, totaling RMB 0.274 per share for the year, a 26.9% increase from the previous year[9] - The company plans to propose a final dividend of RMB 3,335 million, compared to RMB 2,937 million in the previous year, which is an increase of approximately 13.5%[193] - The company will withhold a corporate income tax of 10% on the final dividend paid to non-resident corporate shareholders for the fiscal year 2022[170] - The final dividend record date is set for May 25, 2023, and shareholders must submit transfer documents by May 24, 2023, to be eligible for voting and dividend distribution[169] Operational Efficiency and Customer Satisfaction - The company achieved a customer problem resolution rate exceeding 98%, with smart customer service accounting for over 83%[20] - Customer satisfaction ratings have improved to 85%, reflecting a 5% increase in positive feedback from users[54] - The management team emphasized the importance of improving operational efficiency, targeting a 10% reduction in costs over the next year[61] Compliance and Risk Management - The company has established and strictly implemented the "China Unicom Related Party Transaction Management Measures" to ensure that related party transactions are conducted at fair and reasonable pricing principles, benefiting the company and its shareholders[162] - The independent auditor confirmed that the related party transactions disclosed in the annual report did not exceed the annual caps set in previous announcements for the year ended December 31, 2022[163] - The company has implemented internal control measures based on the COSO framework, focusing on control environment, risk assessment, control activities, information communication, and monitoring[95] Future Outlook - By 2025, China's digital economy is expected to exceed RMB 60 trillion, creating vast opportunities for the company[30] - The company aims for stable growth in service revenue, double-digit profit growth, and continuous improvement in return on net assets[31] - Overall, the company remains optimistic about achieving a net profit margin of 12% in the upcoming fiscal year[200]

Financial Performance - In Q1 2023, the company's operating revenue reached RMB 97.22 billion, an increase of 9.2% year-on-year, marking the highest growth rate for the same period in nearly a decade[3] - Service revenue amounted to RMB 86.12 billion, up 6.1% compared to the same period last year[4] - EBITDA for Q1 2023 was RMB 25.73 billion, reflecting a 2.8% increase from the previous year[3] - Net profit attributable to equity holders was RMB 5.16 billion, up 11.2% year-on-year, achieving a new high for the same period since the company's listing[5] - Operating cash flow reached RMB 16.96 billion, a significant increase of 21.8% year-on-year, with cash flow accounting for 17.4% of operating revenue[5] Business Segments - The industrial internet business generated revenue of RMB 22.39 billion, accounting for 26.0% of service revenue, an increase of 2.1 percentage points year-on-year[5] - Revenue from the cloud service "Unicom Cloud" was RMB 12.79 billion, a 40% increase year-on-year[6] - Big data revenue was RMB 1.498 billion, reflecting a 54.2% year-on-year growth[6] - The total number of "Big Connection" users reached 900 million, with 5G package users totaling 224 million, driving mobile service revenue to RMB 43.82 billion, a 4.4% increase year-on-year[5] Technological Advancements - The company launched the world's first commercial 5G RedCap module, completing the largest pre-commercial verification of RedCap in the country[7] - The number of 5G virtual private network service customers reached 4,562, contributing to over 19,000 large-scale 5G application projects[7] - The company’s IDC rack count reached 372,000, supporting the "East Data West Computing" strategy[6] Strategic Direction - The company is transitioning from a traditional telecom operator to a leading digital technology enterprise, implementing the "1+9+3" strategic planning system in 2023[7] - The company is focused on enhancing its digital, networked, and intelligent capabilities to accelerate modernization in China[7] Security and Innovation - The company emphasizes the development of integrated security products and operational services, continuously upgrading its security offerings to meet diverse needs[7] - The revenue from cloud services, including cloud resources, platforms, and security, is part of the company's innovative solutions[8] - The company’s cloud security product, "Liantong Cloud Shield Anti-D Pioneer," offers professional security services such as attack monitoring and traffic cleaning[9] Cautionary Notes - The company warns shareholders and investors to be cautious in relying on internal financial and business data that has not been audited[8] - The company’s EBITDA reflects earnings before financial expenses, interest income, and taxes, which is crucial for analyzing operational performance in the capital-intensive telecom industry[8]

China Unicom (00762) H2 2022 Earnings Call March 08, 2023 03:30 AM ET Speaker0 Ladies and gentlemen, and also our friends from Beijing who are joining online, good afternoon. I'm Meng Shu Seng. I'm delighted to get here with you again so that we can have face to face interactions. I'm also very grateful for your long term support and concern towards China Unicom. On behalf of the management of the company, I would like to welcome all of you to 2022 results announcement by China Unicom. Today, we have Hong K ...

Financial Performance - For the first three quarters of 2022, the company's operating revenue reached RMB 263.978 billion, an increase of 8.0% year-on-year[2]. - Service revenue amounted to RMB 239.654 billion, up 7.8% compared to the same period last year[3]. - The company's profit attributable to equity holders was RMB 15.667 billion, reflecting a year-on-year increase of 21.2%[4]. - EBITDA for the period was RMB 76.735 billion, representing a 1.9% increase from the previous year[2]. - The industrial internet business generated revenue of RMB 53.150 billion, a significant increase of 29.9% year-on-year, accounting for 22.2% of service revenue[4]. - The company's cloud services revenue was RMB 26.870 billion, a substantial increase of 142.0% year-on-year[6]. - Internet of Things (IoT) business revenue reached RMB 6.168 billion, with a year-on-year growth of 35.6%[5]. - The total number of users reached 842 million, with 5G package users reaching 201 million, driving mobile service revenue to RMB 127.356 billion, a 3.3% increase year-on-year[5]. Cost and Expense Management - In the first three quarters of 2022, the group's network, operation, and support costs increased by 6.1% compared to the same period last year, primarily due to the expansion of network and related infrastructure[7]. - Employee compensation and benefits expenses rose by 5.6% year-on-year, reflecting the group's ongoing reform of incentive mechanisms and the introduction of innovative talent[7]. - Sales expenses increased by 6.8% compared to the previous year, although the growth rate was lower than that of service revenue[7]. - Other operating and management expenses surged by 28.8% year-on-year, mainly due to increased investment in information communication services and technical support[7]. Strategic Focus - The company is focusing on digital economy strategies, enhancing network quality, and improving customer service efficiency[4]. - The group aims to enhance its core strategic capabilities and create greater value for shareholders, customers, and society by implementing the "1+9+3" strategic planning system[7]. Cautionary Statements - The company emphasizes the importance of a cautious approach to financial and business data, which has not been reviewed or audited by external auditors[8]. - The company will not update any forward-looking statements, which may involve known and unknown risks and uncertainties[9].

Financial Performance - In the first half of 2022, China Unicom achieved service revenue of RMB 161 billion, an increase of 8.3% year-on-year, marking the highest growth rate in recent years[3] - The company's pre-tax profit reached RMB 13.4 billion, with profit attributable to equity holders amounting to RMB 11 billion, reflecting a year-on-year growth of 19.5%[3] - EBITDA for the first half of 2022 was RMB 51.4 billion, representing a year-on-year increase of 3.9%[3] - The interim dividend declared was RMB 0.165 per share, an increase of 37.5% year-on-year, reflecting the company's commitment to shareholder returns[3] - In the first half of 2022, the company achieved operating revenue of RMB 176.26 billion, a year-on-year increase of 7.4%[17] - Net profit for the first half of 2022 was RMB 10.96 billion, an increase of RMB 1.79 billion compared to the previous year[17] - The company's cash flow from operating activities was RMB 42.17 billion, with capital expenditures amounting to RMB 28.35 billion[17] - The company's income for the first half of 2022 was RMB 176.3 billion, compared to RMB 164.2 billion in the same period of 2021, reflecting a year-on-year growth[32] Revenue Breakdown - Mobile service revenue reached RMB 84.9 billion, an increase of 3.4% year-on-year[5] - Fixed broadband revenue was RMB 23 billion, up 4.3% year-on-year, with a net increase of 4.4 million broadband users, reaching a total of 99.44 million[5] - Voice service revenue decreased by 3.3% year-on-year to RMB 16.94 billion, accounting for 10.52% of service revenue[19][20] - Non-voice service revenue increased by 9.8% year-on-year to RMB 144.03 billion, representing 89.48% of service revenue[20] - Broadband and mobile data service revenue reached RMB 78,335 million, up 1.0% from RMB 77,533 million in 2021[52] - Data and internet application revenue surged to RMB 40,371 million, representing a significant increase of 29.7% from RMB 31,110 million in 2021[52] Capital Expenditure and Investments - Capital expenditure for the first half of the year was RMB 28.4 billion, a significant increase of 98.5% compared to the previous year[3] - Total capital expenditures in the first half of 2022 amounted to RMB 283.5 billion, with major allocations to mobile networks (RMB 103.9 billion, 36.65%), enterprise and innovation businesses (RMB 53.7 billion, 18.94%), and infrastructure (RMB 91.3 billion, 32.20%)[29] - The company plans to invest RMB 1 billion in core technology R&D, with a special budget of RMB 30 million for technology innovation incentives[9] User Growth and Network Development - The number of mobile users reached 320 million, with a net increase of 29.99 million 5G package users, totaling 184.92 million, and a penetration rate of 58%[5] - The total number of FTTH ports reached 230 million, with significant growth in broadband user scale and revenue[5] - The company has launched 5G new calling services in 125 cities, maintaining the highest user satisfaction in the industry[5] - The company is focused on optimizing its basic business product structure to align with industry trends of "5G, gigabit, and integration"[3] Financial Health and Ratios - The company's debt-to-asset ratio remained at a reasonable level of 43.3%, with financial expenses decreasing by 18.6% year-on-year, enhancing financial strength and risk resistance[3] - The asset-liability ratio as of June 30, 2022, was 43.3%[17] - The company's debt-to-asset ratio improved slightly to 43.3% from 43.6% at the end of the previous year, with a net debt-to-capital ratio of -3.8%[30] Research and Development - R&D expenses increased by 113.7% year-on-year, with the proportion of technology innovation personnel reaching 26%[8] - The company has developed over 300 self-developed cloud products, achieving two authoritative certifications for cloud performance and security[6] Environmental and Social Responsibility - The cumulative reduction of carbon dioxide emissions exceeded 6 million tons, saving CAPEX of RMB 24 billion and OPEX of RMB 25.5 billion annually[9] Strategic Initiatives - China Unicom is actively enhancing its network capabilities and has upgraded its "dual-gigabit" network, which opens new opportunities for development[3] - The company is implementing a "5G leading development action plan" and a "broadband and smart home development action plan" to drive transformation and growth[3] - The company emphasized its commitment to digital infrastructure and innovation in its strategic development[152] Shareholder Information - The company proposed an interim dividend of RMB 5,049 million for 2022, compared to RMB 2,937 million for the final dividend of 2021[35] - The company declared an interim dividend of RMB 0.165 per share, equivalent to HKD 0.19149 per share, based on the exchange rate of RMB 0.86168 to HKD 1.00[147] Compliance and Governance - The company maintained compliance with the corporate governance code, with the chairman also serving as the CEO to enhance decision-making efficiency[144] - The audit committee reviewed the accounting policies and internal controls for the six months ending June 30, 2022[143]