Financial Performance - Revenue for 2023 reached RMB 3,726.0 billion, a 5.0% increase from RMB 3,549.4 billion in 2022[10] - Net profit for 2023 was RMB 187.3 billion, an 11.8% increase from RMB 167.4 billion in 2022[10] - EBITDA reached RMB 99.8 billion, while net profit attributable to equity holders was RMB 18.7 billion, reflecting an 11.8% year-on-year growth[13] - In 2023, the company achieved operating revenue of RMB 372.6 billion, a year-on-year increase of 5.0%[29] - The company reported a pre-tax profit of RMB 22.95 billion, showing an 11.5% year-on-year growth[42] - The company reported a total comprehensive income of RMB 19,038 million for the year ended December 31, 2023, compared to RMB 16,940 million in 2022, an increase of 12.3%[193] - The proposed final dividend for the year is RMB 4,088 million, up from RMB 3,335 million in the previous year, reflecting a growth of 22.6%[190] User Growth - The number of mobile users grew by 10.6 million, reaching 333 million[4] - The number of broadband users increased by 9.79 million, totaling 113 million[4] - The number of mobile internet users increased by 10.6 million, reaching a total of 333 million, with a 5G package penetration rate of 78%, up 12 percentage points year-on-year[14] - The broadband internet user base grew to 113 million, with a net increase of 9.79 million users, marking the highest growth in nearly a decade[14] Cloud and Data Services - Cloud revenue rose by 41.6% year-over-year, reaching RMB 51 billion[3] - Data service revenue grew by 32%[3] - The intelligent network and data services segment generated revenue of RMB 75.2 billion, with cloud services revenue reaching RMB 51.03 billion, a 41.6% increase year-on-year[15] - The company’s cloud computing revenue exceeded RMB 10 billion, driven by new information application products[25] Capital Expenditure and Financial Position - The company’s capital expenditure for 2023 was RMB 73.9 billion, with a focus on high-growth intelligent network and data services[13] - The company’s interest-bearing debt decreased by 19% to RMB 46.4 billion, maintaining a debt-to-asset ratio of 46.5%[13] - The asset-liability ratio stood at 46.5% by the end of 2023[29] - The company’s total assets increased from RMB 642.66 billion to RMB 661.05 billion, while total liabilities rose from RMB 299.13 billion to RMB 307.15 billion, maintaining a debt-to-asset ratio of 46.5%[46] Corporate Governance - The company emphasizes the importance of a healthy corporate culture as the core of good governance, focusing on innovation and integration to enhance competitiveness[61] - The company has adopted a corporate governance code that complies with all relevant regulations and best practices, confirming adherence to governance standards for the year ending December 31, 2023[65] - The board consists of seven members, including three executive directors and four independent non-executive directors, ensuring a diverse range of expertise[66] - The company has established mechanisms for independent non-executive directors to express their opinions openly and confidentially, enhancing governance quality[67] Risk Management - The company has established a comprehensive risk management system that combines routine comprehensive risk assessment with dynamic key risk management, ensuring effective operational management[97] - The company emphasizes the importance of network and information security, aligning with national laws and regulations to support the construction of a strong digital network[98] - In 2023, the company identified significant risks including network and information security, public opinion risk, and fixed asset investment risk, implementing appropriate countermeasures for each[98][99][101] Employee and Talent Management - The company emphasizes talent as the primary resource, with over 10,000 new hires in 2023 through campus and social recruitment[172] - Employee compensation and benefits expenses for the year ended December 31, 2023, were approximately RMB 62.94 billion, an increase from RMB 60.73 billion for the year ended December 31, 2022[143] - The group provides comprehensive welfare plans and career development opportunities for employees, including retirement benefits and training programs[143] Shareholder Communication and Investor Relations - The company has established a shareholder communication policy to ensure timely and balanced information is provided to shareholders, facilitating informed decision-making[114] - The company received multiple awards for its investor relations efforts, including recognition as the "Best Investor Relations Team (Telecom Sector) in Asia" at the 2023 Institutional Investor awards[114] - The company regularly holds analyst and investor meetings to provide detailed information and address inquiries regarding its performance and operations[111] Audit and Financial Reporting - Revenue recognition is identified as a key audit matter due to the complexity of the billing information system and the inherent risks associated with the accuracy of revenue recorded in the telecommunications industry[180] - The auditor's report provides reasonable assurance that the consolidated financial statements are free from material misstatement, but does not guarantee that all errors will be detected[185] - The financial statements and the auditor's report are prepared in accordance with the Hong Kong Financial Reporting Standards and the Companies Ordinance[177]

Investment Rating - The report maintains a "Buy" rating for China Unicom with a target price of HKD 7.66, corresponding to a P/E ratio of 10.2x/9.3x/8.5x for the fiscal years 2024-2026 and dividend yields of 6.0%/7.1%/8.3% for the same periods [1][2]. Core Insights - The first quarter of 2024 saw earnings slightly below expectations, but the company is expected to maintain double-digit profit growth for the full year. Service revenue and net profit for Q1 2024 were RMB 89.043 billion (up 3.4% year-on-year) and RMB 5.613 billion (up 8.9% year-on-year), respectively. The slight miss in profit growth was attributed to a decrease in net income from joint ventures and other income, while operating profit increased by 22.3% year-on-year [1][2]. - The company is expected to continue improving shareholder returns and maintain high dividend payouts, with a projected dividend yield of 6.2% for 2023 and expected yields of 7.6%, 9.0%, and 10.6% for 2024, 2025, and 2026, respectively [1][2]. Summary by Sections Financial Performance - In Q1 2024, China Unicom's service revenue was RMB 89.043 billion, reflecting a year-on-year growth of 3.4%, while net profit was RMB 5.613 billion, up 8.9% year-on-year. Operating profit showed a significant increase of 22.3% year-on-year [1][2]. Capital Expenditure and Efficiency - The company plans to reduce capital expenditure by 12% year-on-year to RMB 65 billion in 2024, which is expected to alleviate depreciation pressure. The depreciation and amortization expenses accounted for 23.7% of total operating expenses in 2023. Efforts to enhance operational efficiency are also underway, with good control over employee benefits and sales expenses [2]. Dividend Policy - The report anticipates that China Unicom will continue to enhance shareholder returns through increased dividends, with a projected payout ratio of approximately 60% for 2024, which is expected to rise in 2025 and 2026 [1][2].

Financial Performance - In Q1 2024, China Unicom reported operating revenue of RMB 99.496 billion, a year-on-year increase of 2.3%[1] - Service revenue reached RMB 89.043 billion, growing by 3.4% compared to the previous year[2] - Pre-tax profit was RMB 7.239 billion, reflecting a year-on-year growth of 10.6%[3] - Profit attributable to equity holders amounted to RMB 5.613 billion, an increase of 8.9% year-on-year[3] - The company aims for steady revenue growth and double-digit profit growth for the full year 2024[4] User and Connection Metrics - The number of mobile users reached 337 million, with 5G package users at 269 million, resulting in a penetration rate of 80%[3] - Internet of Things (IoT) connections totaled 529 million, with a net increase of 34.6 million[3] Cloud Business - Revenue from the cloud business (Unicom Cloud) was RMB 16.7 billion, marking a 30.3% year-on-year increase[3] Assets and Liabilities - Total assets as of March 31, 2024, were RMB 664.787 billion, while total liabilities were RMB 304.902 billion[2] Technological Innovation - The company authorized 362 patents in Q1 2024, indicating a steady increase in technological innovation[3]

Investment Rating - The report maintains a "Buy" investment rating for China Unicom with a target price of HK$7.66 [2][3][7] Core Views - The company is expected to see steady earnings growth and strong dividends, with service revenue and net profit for 2023 reaching RMB 335.2 billion (up 5.0% YoY) and RMB 18.7 billion (up 11.8% YoY), respectively [2][7] - The report anticipates that the dividend payout ratio will continue to increase, projecting a payout ratio of approximately 60% in 2024, with further increases in 2025 and 2026 [2][7] - China Unicom is positioned to benefit significantly from the data services market, with its data services revenue growing by 32% YoY to RMB 5.3 billion in 2023 [2][8] Summary by Sections Financial Performance - For 2023, China Unicom's service revenue was RMB 335.2 billion, and net profit was RMB 18.7 billion, aligning with market expectations [2][7] - The projected earnings per share (EPS) for 2024-2026 are RMB 0.694, RMB 0.761, and RMB 0.827, respectively [2][7] - The company’s dividend per share (DPS) is expected to yield 6.0%, 7.1%, and 8.3% for 2024-2026 [7] Market Opportunities - The telecommunications sector has inherent advantages in data sourcing, with China Unicom expected to invest RMB 10 billion in computing power by 2024 [2][8] - The data services market is projected to grow significantly, with the market size expected to reach RMB 200 billion by 2030 [2][8] - China Unicom is the first telecom operator in China to implement centralized data operations, which positions it well to capitalize on the expanding data services market [2][8] Strategic Initiatives - The company plans to deepen its involvement in the data services market, leveraging its extensive data resources and operational experience to create vertical-specific data products and services [2][8] - The report identifies catalysts for growth, including increasing dividend rates and promoting commercial data-related businesses [2][8]

Investment Rating - The report maintains a "Buy" rating for China Unicom with a target price of HKD 7.6, reflecting a focus on improving income quality and operational efficiency [2][4]. Core Insights - China Unicom is entering a phase of "quality improvement, efficiency enhancement, and shareholder return," with an emphasis on profit release rather than just revenue growth [2]. - The company has achieved a historical high in dividend payout ratio, reaching 55% [1]. - The report indicates that 2023 marks a turning point for 5G capital expenditures, with expectations of continued decline in capital spending and improvement in free cash flow [2]. Summary by Sections Financial Performance - For the year 2023, China Unicom reported total revenue of RMB 372.6 billion, a year-on-year increase of 5.0%, with service revenue also at RMB 335.2 billion, reflecting the same growth rate [1]. - EBITDA reached RMB 99.8 billion, showing a slight increase of 0.6% year-on-year, while net profit attributable to shareholders was RMB 18.7 billion, up 11.8% year-on-year [1][5]. - The company’s return on equity (ROE) improved to 5.4%, marking a recent high [1]. Capital Expenditure and Cash Flow - Capital expenditures for 2023 totaled RMB 73.9 billion, lower than the previous target of RMB 76.9 billion, with a planned reduction of 12% for 2024 [1]. - Free cash flow for the year was RMB 28.5 billion, representing an 8.3% increase year-on-year [1]. Business Segments - Traditional core business revenue was RMB 244.6 billion, growing by 3.1% year-on-year, accounting for three-quarters of the main business [1]. - The mobile user base reached 333 million, with a net addition of 10.6 million users, and a 5G package penetration rate of 78% [1]. - The digital business segment, particularly the industrial internet, generated RMB 75.3 billion in revenue, a 12.9% increase year-on-year, contributing significantly to new service revenue [1]. Dividend Policy - The total dividend for the year was RMB 0.3366 per share, a 22.8% increase year-on-year, significantly higher than the net profit growth rate [1]. - The report anticipates that the dividend payout ratio will gradually increase to 70% in the future [2].

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]

Financial Data and Key Metrics Changes - Operating revenue reached ¥191.8 billion, an increase of 8.8% year on year [5] - Net profit reached ¥12.4 billion, up 13.1% year on year, marking a double-digit increase for seven consecutive years [5] - Return on net assets reached a new high of 3.6% [6] - Capital expenditure amounted to ¥27.6 billion, primarily for building 5G networks and broadband [6] Business Line Data and Key Metrics Changes - Large connection subscriber base reached 928 million, with a net increase of 8.66 million subscribers [11] - Mobile business subscribers exceeded 328 million, with net additions of 5.34 million, the highest in four years [11] - Fixed line broadband subscribers reached 108 million, with net additions exceeding 4 million [13] - IoT business revenue was ¥5.4 billion, up 24% year on year [13] - Unicom Cloud revenue reached ¥25.5 billion, up 36% year on year [14] - Big Data business revenue was ¥2.9 billion, up 54% year on year [14] Market Data and Key Metrics Changes - International business revenue reached ¥5.5 billion, up 21% year on year, covering 264 countries and regions [18] - The company established roaming cooperation with 635 carriers, enhancing its international product offerings [19] Company Strategy and Development Direction - The company focuses on deepening strategic planning and integrating current operations with long-term development [5] - Emphasis on innovation-driven growth and embracing the digital economy [10] - Plans to enhance core competitiveness and achieve steady growth in service revenue and net profit [26] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in net profit and enhancing return on net assets [26] - The company aims to contribute to the modernization of China while rewarding shareholders [25] Other Important Information - The interim dividend was set at ¥0.203 per share, a 23% year-on-year increase [25] - R&D investment intensity reached 2.94%, with a 70% year-on-year increase in patents [20] Q&A Session Summary Question: What are the future growth strategies for the company? - The company will promote coordinated development of basic and emerging business segments to enhance core functions and competitiveness [26] Question: How does the company plan to maintain its market leadership? - The company will leverage its advantages in data concentration and intensive operation to enhance its market share [15]