China Unicom (Hong Kong) Limited Stock code: 762.HK www.chinaunicom.com.hk Revenue growth at a 9-year high A Good Start of the New Strategy Forward-looking Statements Certain statements contained in this presentation may be viewed as "forward-looking statements". Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future ...

Financial Performance - Operating revenue increased by 50% to RMB 372.6 billion[4] - Net profit increased by 11.8% to RMB 18.7 billion[4] - ROE reached a record high in recent years at 5.4%[4] Subscriber Growth - Mobile subscribers increased by 10.60 million[11] - 5G subscriber penetration rate reached 78%[11] - Fixed-line broadband subscribers increased by 9.79 million[13] - Broadband-mobile integration penetration rate reached 76%[13] Information Services - Information services revenue increased by 16.2% to RMB 10.7 billion[16] Computing and Digital Smart Applications (CDSA) - Unicom Cloud revenue increased by 41.6%[22] - Digital Smart Applications revenue increased by 17.5% to RMB 5.6 billion[26] - Cybersecurity revenue increased by 120% to RMB 0.8 billion[30] International Business - International business revenue increased by 15% to RMB 10.8 billion[32] CAPEX and Savings - Accumulated CAPEX savings reached RMB 340 billion[34] - Annual OPEX savings reached RMB 39 billion[34] Dividend - Dividend per share increased to RMB 0.3366[42] 2024 Outlook - The company expects steady revenue growth and double-digit profit growth[47] - CAPEX is projected to be RMB 65.0 billion[47] Cost Analysis - Employee benefit expenses increased by 4.4%[50]

Core Insights - The article highlights the successful implementation of an AI application training program for management personnel at Heze Unicom, aimed at integrating AI technology into business operations [1][3] - The training focused on enhancing work efficiency and innovation capabilities through practical applications of AI tools [1][3] Group 1: Training Program Details - The training was conducted on April 30 and involved 95 management personnel from the city [1] - A senior lecturer from Shandong Unicom Training Center, Wang Jinsong, provided online instruction covering the basic concepts and development history of AI models, along with typical applications across various industries [3] - Participants engaged in practical exercises using tools like Deepseek and DingTalk to learn about efficient smart office paradigms and collaborative office ecosystems [3] Group 2: Outcomes and Future Directions - Participants found the training content rich and practical, gaining a deeper understanding of AI technology and its application scenarios, which they expect to apply in their work [3] - The successful training session laid a solid foundation for the company's digital transformation, enhancing management personnel's practical skills with AI tools [3] - Heze Unicom aims to continue deepening the integration of AI technology with business scenarios to optimize management processes and improve service efficiency, ultimately providing smarter and more efficient digital experiences for customers [3]

Network Infrastructure Assurance - The company organized a professional technical team to conduct comprehensive inspections of core data centers, base stations, and transmission lines to ensure network stability during the holiday period [1] - An intelligent monitoring system was utilized for real-time monitoring of equipment operation status, with upgrades and maintenance performed on outdated equipment to eliminate potential risks [1] - Capacity expansion of base stations, optimization of network parameters, and deployment of emergency communication vehicles were implemented in crowded areas such as tourist attractions and commercial districts to enhance network capacity [1] Network Security Protection - The company initiated a high-level security protection mechanism to strengthen network security monitoring and early warning systems [3] - Advanced network security protection equipment was deployed for 24-hour real-time monitoring and analysis of risks such as network attacks and data breaches [3] - A network security emergency response team was established, with detailed emergency plans and simulation drills conducted to ensure rapid and efficient response to unexpected security incidents [3] Service Assurance - The company optimized customer service processes, ensuring a 24-hour hotline during the holiday to promptly address user feedback and issues [3] - Professional repair teams were on standby with sufficient emergency repair materials and equipment to ensure timely responses to service requests [3] - The company committed to the highest standards and strictest requirements to guarantee stable network operation, allowing users to enjoy high-speed, smooth, and secure network services during the holiday [3]

Core Viewpoint - The "Intelligent Terminal Overseas Service Innovation Alliance" was officially launched at the 8th Digital China Construction Summit, aiming to support smart terminal companies in their overseas expansion through a comprehensive service ecosystem [1] Group 1 - The alliance is initiated by the Shanghai Data Bureau and several telecommunications companies including Shanghai Telecom, Shanghai Unicom, and Shanghai Mobile [1] - The goal is to create a "technology + service + rules" platform to facilitate the overseas operations of smart terminal enterprises [1] - The initiative aims to build a resilient and closed-loop "overseas ecosystem" for the industry [1]

Group 1 - The core viewpoint emphasizes that artificial intelligence applications are becoming a crucial engine for accelerating the construction of a digital China, with this year being marked as the year of large-scale AI application [1][2] - Over a hundred AI intelligent robots showcased at the Digital China Construction Summit, covering various scenarios from home services to industrial manufacturing and urban management [1] - The chairman of China Telecom highlighted the significant reduction in computational and algorithmic barriers due to new open-source AI technologies, which promotes the accelerated popularization of large model applications [1] Group 2 - China Unicom's chairman stated the importance of strengthening AI foundational innovation, having developed over 40 industry-specific large models that significantly empower economic operations and urban governance [2] - The need for an open and win-win cooperation framework is essential for promoting the construction of a digital China, with key drivers including accessible computing power, open-source models, and data flow [2] - The chairman of China Telecom called for greater collaboration across industries to foster deeper and broader levels of open cooperation in AI innovation and development [2]

Group 1 - The year 2024 marks the formal inclusion of data assets in accounting practices, with 92 listed companies reporting a total of 2.495 billion yuan in data assets by the end of the year [1][2] - The number of companies reporting data assets has increased from 17 in the first quarter to 92 by the annual report, with the total value rising from 79 million yuan to 2.495 billion yuan [2] - Major contributors to data asset reporting include China Mobile, Cloud Horse, China Unicom, and China Telecom, each reporting over 100 million yuan in data assets [2][5] Group 2 - Data assets are primarily classified as intangible assets, with over 60 companies accounting for more than 1.3 billion yuan in this category, representing approximately 60% of the total [3] - The inclusion of data assets in financial statements helps companies optimize their financial reports, impacting asset scale and net profit [3] - Data asset reporting is seen as a foundation for digital transformation and exploring data trading and value-added services [3] Group 3 - The standardization and normalization of data asset reporting is a growing concern, as not all data resources qualify as assets [4] - Companies face challenges in distinguishing between data resources, products, and assets, necessitating a comprehensive approach to compliance and management [4] - Some companies have been cautious in reporting data assets, with instances of previously reported data being corrected or omitted in annual reports [5]

股份代號 : 762 中國聯合網絡通信（香港）股份有限公司 INNOVATE to 融合創新 提價值 年 報 2024 我們強化移動/寬帶融合、數智融合、數實融合， 提升差異化競爭能力，推動業務可持續發展 移寬融合 融合用戶滲透率77% 數智融合 打造數十個行業AI大模型 數實融合 數實融合 堅 持 新融合 >2.9 萬個5G工業互聯網項目 >2.9 萬個5G工業互聯網項目 創 新 推 進 創 新 我們深入推動網絡向新、技術向新、服務向新， 引領新質生產力發展，打造業務第二增長曲線 服務向新 營業收入穩健增長4.6% 技術向新 研發費用上升9.1% 網絡向新 投資結構顯著優化 創造 價值 * 指本公司權益持有者應佔利潤 資本開支 下降17% 經營質量不斷改善， 高質量發展取得新突破 淨利潤* 增長10.1% 淨資產收益率提升 0.4 個百分點至5.8% 分享成果 我們高度重視股東回報，2024年派息率提升5個百分點至60%， 每股股息增長20%。我們致力與股東分享企業發展紅利 每股股息 增長20% 派息率提升 5 個百分點至60% 目 錄 預測性陳述 本報告中所包含的某些陳述可能被視為「預測性陳述」。這些預測 ...

Core Insights - The Chinese computing power market is experiencing a structural imbalance characterized by both surplus and shortage, with general computing power being relatively overabundant while intelligent computing power is in short supply [3][4][6]. Group 1: Market Dynamics - Several listed companies have announced winning bids for data center projects or signed computing power service contracts, indicating ongoing demand in the market [2][4]. - Major state-owned enterprises like China Mobile and China Telecom are significantly increasing their investments in computing power, with China Mobile planning a budget of 37.3 billion yuan for 2025, accounting for 25% of its total capital expenditure [5][4]. - The International Data Corporation (IDC) predicts that China's intelligent computing power will reach 1,037.3 EFLOPS by 2025 and 2,781.9 EFLOPS by 2028, reflecting a growing market scale [5][4]. Group 2: Structural Issues - The average rack utilization rate in China's IDC market is around 58%, indicating a significant amount of idle computing power [6]. - There is a notable disparity in computing power quality and regional distribution, with general computing power being overabundant in some areas while intelligent computing power is scarce, particularly in eastern regions where demand is high [6][7]. Group 3: Causes of Imbalance - The rapid growth and iteration of computing power demand, coupled with the transition from older to newer hardware, have led to mismatches in supply and demand [8]. - A lack of understanding among both buyers and sellers regarding the requirements and capabilities of intelligent computing centers has contributed to the imbalance [9][10]. - Some companies prioritize low costs in western regions for building computing centers, neglecting the necessary conditions for effective operation, which leads to mismatched resources [10]. Group 4: Future Outlook - The industry is expected to optimize and iterate on computing power scheduling, hardware, and supporting software to address the current challenges [11][14]. - The trend of "East Data West Computing" is emerging, where eastern data centers handle frequently accessed data while western centers manage less time-sensitive tasks [12]. - Domestic high-end computing hardware is accelerating in development, with companies like Huawei introducing competitive chips to fill the supply gap [13].

Group 1 - The report highlights the ongoing escalation of the global tariff war, particularly between the US and China, which is expected to lead to increased volatility in equity markets and a potential "hard landing" for the US economy [2][10][11] - Domestic economic indicators show a weakening trend, with March data reflecting a 12.4% year-on-year increase in exports, driven by a low base and export rush, while imports fell by 4.3%, indicating persistent domestic demand issues [12][13] - The report emphasizes the need to shift investment strategies from small-cap growth to large-cap value defensive stocks, anticipating this transition to last at least until signs of an earnings bottom emerge [2][10][13] Group 2 - Growth-oriented dividend assets are defined as those sacrificing some dividend yield for potential profit improvement through capital expenditure, which may lead to higher valuations in the market [3][23] - The report identifies two main drivers for growth-oriented dividend assets: the expectation of fiscal policy support and the potential for rising dividend yields, which can help avoid static valuation traps [3][23][26] - A comprehensive screening model for growth-oriented dividend assets has been developed, focusing on five key factors: relative dividend yield advantage, stable dividend payout ratio, ample operating cash flow, stable or improving ROE, and increasing capital expenditure [3][35][34] Group 3 - The report suggests a differentiated approach to sector allocation, recommending a reduction in exposure to AI sectors with low penetration rates, while increasing allocation to structural technology growth areas and growth-oriented dividend assets [4][23] - Specific sectors highlighted for increased allocation include telecommunications, infrastructure, and consumer sectors, which are expected to benefit from fiscal expansion and capital expenditure [4][23][24] - The report also notes that gold stocks and innovative pharmaceuticals are positioned to benefit from rising gold prices and improving profit margins, respectively [4][23]