Financial Performance - Operating revenue for Q3 2022 reached CNY 87.72 billion, an increase of 9.2% year-on-year[2] - Net profit attributable to shareholders was CNY 2.05 billion, up 24.5% compared to the same period last year[2] - Basic earnings per share for the quarter was CNY 0.067, reflecting a growth of 24.1% year-on-year[2] - In the first three quarters of 2022, the company's operating revenue reached RMB 263.98 billion, an increase of 8.0% year-on-year, while the main business revenue was RMB 239.65 billion, up 7.8% year-on-year[10] - The net profit attributable to the parent company was RMB 6.83 billion, representing a year-on-year increase of 20.4%, achieving the highest level for the same period since the company went public[10] - The company's EBITDA for the first three quarters was RMB 76.59 billion, an increase of 1.9% compared to the same period last year[10] - The total comprehensive income for the period reached CNY 15,757,188,077, an increase from CNY 13,168,919,260 in the same period last year, representing a growth of approximately 19.7%[20] - The company reported a total comprehensive income of approximately 3.54 billion RMB for the first three quarters of 2022, down from 3.86 billion RMB in the same period of 2021[23] Assets and Liabilities - Total assets at the end of the quarter amounted to CNY 616.91 billion, representing a 4.0% increase from the end of the previous year[3] - Total assets as of September 30, 2022, were ¥616.91 billion, compared to ¥593.28 billion at the end of 2021, indicating growth in the company's asset base[16] - The total liabilities as of September 30, 2022, were ¥269.74 billion, an increase from ¥257.07 billion at the end of 2021, indicating a rise in financial obligations[17] - The company reported a significant increase in accounts receivable, which rose to ¥38.05 billion from ¥19.35 billion year-over-year, suggesting higher sales volume[16] - The company’s total equity increased to ¥347.17 billion as of September 30, 2022, compared to ¥336.21 billion at the end of 2021, reflecting a stronger financial position[17] Cash Flow - The company's cash flow from operating activities for the year-to-date was CNY 72.61 billion, down 8.7% year-on-year[2] - The net cash flow from operating activities was CNY 72,609,220,143, down from CNY 79,488,482,605 year-over-year, indicating a decrease of about 8.4%[21] - The net cash flow from operating activities for the first three quarters of 2022 was approximately 8.64 million RMB, compared to a negative cash flow of 2.13 million RMB in the same period of 2021[25] - Cash and cash equivalents at the end of the period totaled CNY 57,148,249,387, significantly higher than CNY 25,445,501,460 at the same time last year, representing an increase of approximately 124.5%[21] - Cash and cash equivalents at the end of the third quarter of 2022 totaled approximately 1.99 billion RMB, down from 3.44 billion RMB at the end of the same period in 2021[25] Revenue Growth Areas - The number of "Big Connection" users reached 840 million, with 5G package users totaling 200 million, contributing to a mobile main business revenue of RMB 127.36 billion, a year-on-year increase of 3.3%[11] - The IoT business revenue was RMB 6.17 billion, showing a year-on-year growth of 35.6%[12] - The revenue from cloud services reached RMB 26.87 billion, a significant increase of 142.0% year-on-year[12] Strategic Initiatives - The company has implemented a new strategic plan focusing on "network power, digital China, and smart society" to drive high-quality development[14] - The company aims to enhance its core strategic capabilities to create greater value for shareholders, customers, and society[14] Expenses and Cost Management - Operating and support costs increased by 6.1% year-on-year, primarily due to the expansion of network and related infrastructure[14] - Sales expenses rose by 6.8% year-on-year, but the growth rate was lower than that of main business revenue[14] - Research and development expenses for the first three quarters of 2022 amounted to ¥3.98 billion, significantly increasing from ¥2.08 billion in the same period of 2021, reflecting a focus on innovation[18] Guarantees and Financial Support - The company has authorized a non-financial guarantee of up to 15 billion RMB for its subsidiary, effective for three years from the board's approval date[27] - The company’s financial subsidiary is authorized to provide non-financial guarantees not exceeding 5 billion RMB for specific business needs within one year of board approval[27] - The company’s guarantees are primarily non-financial, reflecting a strategy focused on operational support rather than direct financing[30] - The total number of guarantees issued in Q3 2022 represents a strategic move to bolster partnerships and operational capabilities across regions[30]

Dividend Distribution - The board of directors proposed a cash dividend of RMB 0.165 per share for the interim period, expecting to receive approximately RMB 22.18 billion from the subsidiary's dividends[4]. - The total cash dividends to be distributed to shareholders are estimated at around RMB 20.19 billion, with a proposed distribution of RMB 0.663 per 10 shares[5]. - The company reported a profit distribution plan that will allocate approximately RMB 20.26 billion to shareholders after deducting daily expenses and statutory reserves[4]. - The company plans to maintain the total distribution amount despite any changes in the total share capital before the dividend record date[5]. - The company proposed an interim dividend of RMB 0.0663 per share, an increase of 35.9% compared to the previous year[30]. Financial Performance - The total operating revenue for the first half of 2022 was CNY 176.26 billion, representing a 7.4% increase compared to CNY 164.17 billion in the same period last year[18]. - The net profit attributable to shareholders was CNY 4.79 billion, an increase of 18.7% from CNY 4.03 billion year-on-year[18]. - The basic earnings per share for the first half of 2022 was CNY 0.158, up 20.6% from CNY 0.131 in the previous year[19]. - The total profit reached RMB 13.3 billion, with net profit attributable to the parent company amounting to RMB 4.8 billion, a year-on-year growth of 18.7%[29]. - The company's tax pre-profit for the first half of 2022 was RMB 13.31 billion, marking an 18.4% increase year-on-year[63]. - The total cost and expenses for the first half of 2022 amounted to RMB 161.17 billion, a year-on-year increase of 6.5%[52]. - The company’s total comprehensive income for the first half of 2022 was RMB 11.51 billion, compared to RMB 9.40 billion in the first half of 2021, reflecting an increase of about 22.4%[132]. Cash Flow and Assets - The net cash flow from operating activities was CNY 42.84 billion, a decrease of 16.7% compared to CNY 51.42 billion in the same period last year[18]. - The cash flow from investment activities showed a net outflow of RMB 18.05 billion, improving from a net outflow of RMB 33.12 billion in the first half of 2021[134]. - The company’s cash and cash equivalents reached RMB 60.59 billion, accounting for 10.0% of total assets, reflecting a 30.9% increase year-on-year[72]. - The total assets at the end of the reporting period were CNY 605.44 billion, a 2.0% increase from CNY 593.28 billion at the end of the previous year[18]. - The accounts receivable increased significantly to RMB 35.37 billion from RMB 19.35 billion, representing an increase of about 83.0%[128]. Strategic Focus and Innovation - The company aims to enhance its ICT services, integrating IT and CT to provide comprehensive solutions[13]. - The company is focusing on expanding its IoT business and cloud computing services to drive future growth[13]. - The company emphasizes the importance of innovation and plans to increase investment in R&D to enhance core competitiveness and sustainable development capabilities[83]. - The introduction of new products, including 5G communication services and tailored offerings for senior users, is part of the company's innovation strategy[32]. - The company is actively participating in the global telecom upgrade and 5G technology application, promoting the "5G Application 'Sailing' Action Plan" to drive large-scale development of 5G applications[84]. Risk Management - The company has identified risks including market competition, regulatory policies, network security, and technology iteration, which may impact future operations[7]. - The interim report includes a detailed description of potential risks faced by the company in its management discussion and analysis section[7]. - The company faces risks from market competition, regulatory policies, network security, and the need for business transformation due to saturation in traditional telecom services[80][81][82][83]. - The company plans to maintain orderly competition and avoid price wars to ensure sustainable industry development[80]. Shareholder and Governance - The company has not engaged in non-operational fund occupation by controlling shareholders or related parties[7]. - The board of directors confirmed that there are no violations in decision-making procedures regarding external guarantees[7]. - The company has received approval from the State-owned Assets Supervision and Administration Commission for the implementation of the second phase of its restricted stock incentive plan, pending shareholder approval[89]. - The company aims to enhance its governance structure and long-term development through the restricted stock incentive plan[114]. - The financial statements were approved by the board of directors on August 8, 2022, indicating ongoing governance and oversight[140]. Research and Development - The company’s R&D expenses increased by 113.7% year-on-year, with the proportion of technology innovation personnel reaching 26%[39]. - Research and development expenses surged by 113.7% year-on-year, amounting to RMB 1.02 billion, indicating a strong focus on innovation[70]. - The company recognizes research phase expenditures as expenses in the current period, while development phase expenditures are capitalized only if specific conditions are met[186]. Financial Instruments and Accounting - The company recognizes financial assets and liabilities at fair value upon initial recognition, with transaction costs directly expensed for certain financial assets and liabilities[156]. - Financial assets are classified into categories based on the business model and cash flow characteristics, including those measured at amortized cost and those measured at fair value[157]. - The company assesses expected credit losses based on the risk of default weighted by the average expected loss over the life of the financial instrument[164]. - The company uses a loss matrix based on historical credit loss experience to calculate expected credit losses for receivables and contract assets[166]. Community and Social Responsibility - The company has allocated an annual assistance fund budget of 230 million CNY for targeted poverty alleviation, maintaining the same level as the previous year[93]. - A total of 1.61 billion CNY in assistance funds has been disbursed to help regions respond to adverse pandemic impacts[93]. - The company has trained 11,282 individuals in three categories, exceeding the total number trained in the previous year[94]. - The company is actively pursuing energy-saving technologies, including integrated power supply equipment and evaporative cooling technology for data centers[91].

Financial Performance - The company's operating revenue for Q1 2022 was CNY 89,021,517,630, representing an increase of 8.2% year-on-year[4] - The net profit attributable to shareholders was CNY 2,030,970,354, reflecting a growth of 20.0% compared to the same period last year[4] - The company's main business revenue reached CNY 81,196,992,270, up by 9.8% year-on-year[4] - EBITDA for Q1 2022 was RMB 24.982 billion, a 5.9% increase from the previous year, while the total profit reached RMB 5.714 billion, and net profit attributable to the parent company was RMB 2.031 billion, up 20.0% year-on-year[12] - Net profit for Q1 2022 was CNY 4.63 billion, representing a 20.6% increase from CNY 3.84 billion in Q1 2021[19] - The total comprehensive income for Q1 2022 was CNY 4,787,857,848, an increase from CNY 4,066,834,308 in Q1 2021[20] Cash Flow and Liquidity - The net cash flow from operating activities decreased by 29.6%, amounting to CNY 14,277,388,002[4] - The company reported a decrease in cash flow from operating activities, which may impact future liquidity[4] - The company's cash and cash equivalents decreased to CNY 39.90 billion from CNY 46.27 billion at the end of 2021, a decline of 13.1%[17] - The cash inflow from operating activities was CNY 77,485,279,806 in Q1 2022, down from CNY 79,438,000,224 in Q1 2021[21] - The net cash flow from operating activities was RMB 4,425,173, compared to a negative RMB 8,341,521 in Q1 2021, indicating a significant improvement[27] - The net increase in cash and cash equivalents for Q1 2022 was RMB 11,907,657, compared to RMB 407,096,430 in Q1 2021, showing a decline in cash generation[27] Assets and Liabilities - Total assets at the end of the reporting period were CNY 589,363,245,987, a decrease of 0.7% from the end of the previous year[6] - The company's total assets stood at CNY 589.36 billion, down from CNY 593.28 billion at the end of 2021, a decrease of 0.7%[18] - Total liabilities decreased to CNY 248.37 billion from CNY 257.07 billion at the end of 2021, a reduction of 3.0%[18] - The company's total liabilities as of March 31, 2022, were CNY 871,859,068, compared to CNY 871,114,223 in the previous year[24] Research and Development - Research and development expenses increased by 75.0%, indicating a stronger focus on innovation and core technology capabilities[8] - Research and development expenses increased to CNY 666.64 million in Q1 2022, up 75.0% from CNY 380.89 million in Q1 2021[19] Market and Business Growth - The company is actively expanding its market presence and enhancing its innovation capabilities to drive growth in the digital economy[12] - The total number of "Big Connection" users reached 779 million, with 5G package users increasing to 171 million, contributing to a mobile main business revenue of RMB 41.986 billion, a 2.2% increase year-on-year[12] - The company's cloud services revenue surged to RMB 9.12 billion, a remarkable 114% increase year-on-year, while IDC revenue rose by 14.5% to RMB 6.231 billion[13] - The Internet of Things (IoT) terminal connections reached 313 million, with IoT business revenue growing by 40.7% to RMB 2.121 billion[12] Operational Efficiency - The company reported a 7.5% increase in network, operation, and support costs due to expanded network and operational scale, with personnel costs rising by 11.0% year-on-year[13] - The company played a crucial role in the Beijing Winter Olympics, achieving zero errors in network support and zero complaints in event services, earning recognition from the government[14] Strategic Focus - The company aims to continue implementing its new strategic plan focused on high-quality development and digital transformation, emphasizing the integration of five main responsibilities[14] Guarantees and Financial Services - The company provided a total of 35 non-financial guarantees in Q1 2022, amounting to RMB 45,176,051.80, with the guarantee balance not exceeding RMB 500 million[28] - The company has authorized its financial subsidiary to provide non-financial guarantees to its subsidiaries, with a total authorized amount of RMB 1.5 billion over three years[28] - The company’s financial subsidiary has been actively providing guarantees, with the latest guarantees issued covering various subsidiaries across different regions[29] - The total non-financial guarantee amount reached CNY 45,176,051.80[31]

Financial Performance - The total operating revenue for 2021 was CNY 327.85 billion, an increase of 7.9% compared to CNY 303.84 billion in 2020[18]. - The net profit attributable to shareholders for 2021 was CNY 6.31 billion, reflecting a growth of 14.2% from CNY 5.52 billion in 2020[18]. - The basic earnings per share for 2021 was CNY 0.206, up 15.7% from CNY 0.178 in 2020[19]. - The weighted average return on equity increased to 4.17% in 2021, up 0.44 percentage points from 3.73% in 2020[19]. - The net cash flow from operating activities for 2021 was CNY 111.97 billion, a 4.3% increase from CNY 107.33 billion in 2020[18]. - The total assets at the end of 2021 were CNY 593.28 billion, representing a 1.9% increase from CNY 582.48 billion at the end of 2020[18]. - The net assets attributable to shareholders at the end of 2021 were CNY 149.22 billion, a 1.0% increase from CNY 147.71 billion at the end of 2020[18]. - The main business revenue for 2021 was CNY 296.15 billion, which is a 7.4% increase from CNY 275.81 billion in 2020[18]. - The net profit after deducting non-recurring gains and losses for 2021 was CNY 6.45 billion, an 18.4% increase from CNY 5.45 billion in 2020[18]. - The EBITDA for the year was RMB 96.1 billion, up 2.3% compared to the previous year[25]. Dividends and Profit Distribution - The board proposed a cash dividend of 0.096 CNY per share for the fiscal year 2021, expecting to receive approximately 1.291 billion CNY from its subsidiary[4]. - The company plans to distribute a total of approximately 1.192 billion CNY in cash dividends to shareholders, amounting to 0.391 CNY per 10 shares[5]. - The company plans to utilize remaining distributable profits for future profit distribution, ensuring sustainable growth[5]. - After deducting daily expenses and taxes, the distributable profit for shareholders is estimated to be around CNY 11.99 billion[146]. - The company plans to distribute a cash dividend of approximately CNY 11.92 billion (including tax), with a proposed payout of CNY 0.391 per share[147]. Market and Competitive Landscape - The company has identified risks including market competition, regulatory policies, and technology iteration, which may impact future operations[7]. - The company faces ongoing market competition risks, with traditional telecom revenue growth slowing and a need to avoid price wars[103]. - Regulatory policies from the government may present both opportunities and challenges, requiring the company to adapt to changes in the telecom industry[104]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market share[122]. Technological Advancements and Innovations - The company aims to leverage its technological advancements in 5G and other areas to improve service quality and user experience[10]. - The company launched the CUBE-Net 3.0 network system, enhancing its digital infrastructure capabilities and maintaining industry-leading average latency in backbone networks[30]. - The company’s R&D expenses increased by 61.7% year-on-year, with the proportion of technology innovation personnel reaching 22% and the number of authorized patents growing by 120% to 1,128[33]. - The company is investing 10 billion RMB in research and development for new technologies, focusing on 5G and AI applications[124]. Customer Engagement and Market Expansion - The company is focused on expanding its market presence and enhancing user engagement through innovative marketing models like 2B2C and 2I2C[10]. - The company aims to enhance its autonomous innovation platform capabilities and key products to improve industry competitiveness and business value[33]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025[124]. - User satisfaction ratings improved to 85%, reflecting a 5% increase from the previous year[124]. Corporate Governance and Transparency - The company is committed to maintaining transparency and accuracy in its financial reporting, as confirmed by its auditors[3]. - The company emphasized compliance with information disclosure, receiving an A-level rating for its disclosure practices from the Shanghai Stock Exchange for the 2020-2021 period[109]. - The company maintained independence from its controlling shareholder in operations, assets, and financial management, ensuring compliance with relevant regulations[113]. - The company has established a performance evaluation mechanism for senior management based on operational performance and contractual obligations[151]. Environmental and Social Responsibility - The company has committed to achieving carbon neutrality goals, estimating annual electricity savings of over 17.5 billion kWh and cumulative CO2 emissions reduction of over 6 million tons through shared infrastructure[36]. - The company launched a "14th Five-Year Action Plan" for carbon peak and carbon neutrality, focusing on three management systems and five green development directions[158]. - The "Digital Village" initiative has served over 150,000 administrative villages across the country, promoting rural revitalization and digital transformation[163]. - The company has integrated its poverty alleviation efforts with rural revitalization, receiving recognition as a "National Advanced Collective" in poverty alleviation[160]. Leadership and Management - The current chairman of China Unicom is Liu Liehong, who has held the position since August 2021[125]. - Chen Zhongyue serves as both a director and the general manager of China Unicom since January 2021[125]. - The leadership team includes experienced professionals with long tenures in the telecommunications sector, enhancing strategic decision-making capabilities[125][126]. - The company has seen significant management turnover, with key positions filled by experienced individuals from various sectors, enhancing its leadership capabilities[121]. Financial Management and Investments - The company’s total cost and expenses amounted to RMB 309.24 billion, reflecting an increase of 8.9% year-on-year[62]. - The company’s capital expenditure for 2021 was RMB 69 billion, below the annual guidance of RMB 70 billion[25]. - The company’s financial subsidiary has not experienced any violations or business defaults, ensuring the safety of funds[176]. - The company has a regular credit rating review conducted by a credit rating agency, which occurs annually after the audit report is issued[199].

Financial Performance - Total operating revenue for Q3 2021 reached CNY 80.31 billion, an increase of 7.1% year-on-year[4] - Net profit attributable to shareholders was CNY 1.64 billion, reflecting a growth of 14.1% compared to the same period last year[4] - Basic earnings per share for the quarter stood at CNY 0.054, up 17.4% year-on-year[4] - The company's main business revenue for Q3 2021 was CNY 73.71 billion, up 6.8% from the same period last year[4] - The company reported a decrease of 3.8% in net profit after deducting non-recurring gains and losses, amounting to CNY 1.35 billion for the quarter[4] - The net profit attributable to the parent company was RMB 5.68 billion, an increase of 18.6% compared to the previous year[10] - The net profit for the third quarter of 2021 was CNY 12,926,450,784, an increase of 19.2% compared to CNY 10,844,766,807 in the same period of 2020[22] - The total comprehensive income for the third quarter of 2021 was CNY 13,168,919,260, compared to CNY 9,093,688,120 in Q3 2020, reflecting a year-over-year increase of 45.5%[22] Assets and Liabilities - Total assets at the end of the reporting period amounted to CNY 590.42 billion, a 1.4% increase from the end of the previous year[5] - The total equity attributable to shareholders increased to CNY 150.20 billion, a rise of 1.7% from the previous year-end[5] - The total liabilities were CNY 253.93 billion, slightly up from CNY 251.00 billion year-on-year[18] - The total assets as of September 30, 2021, amounted to CNY 590.42 billion, compared to CNY 582.48 billion at the end of the previous year[18] Cash Flow - The net cash flow from operating activities for the year-to-date was CNY 79.49 billion, showing a 3.5% increase year-on-year[4] - Cash flow from operating activities for the first three quarters of 2021 was CNY 79,488,482,605, compared to CNY 76,816,057,334 in the same period of 2020, indicating a growth of 3.5%[24] - Cash inflow from investment activities in the first three quarters of 2021 was CNY 34,574,805,842, significantly higher than CNY 18,633,807,012 in the previous year, marking an increase of 85.5%[24] - The net cash flow from financing activities for the third quarter of 2021 was -CNY 20,641,416,243, slightly improved from -CNY 21,942,683,449 in Q3 2020[26] - The total cash and cash equivalents at the end of Q3 2021 stood at CNY 25,445,501,460, an increase from CNY 21,279,952,784 at the end of Q3 2020[26] User Growth and Services - As of September 30, 2021, the total number of mobile billing users reached 31.55 million, with a net increase of 974.2 thousand users during the period[10] - The number of 5G package users reached 13.69 million, with a net increase of 6.61 million users[10] - The number of fixed broadband users reached 92.99 million, with a net increase of 6.90 million users[11] - Total mobile service revenue amounted to RMB 123.32 billion, representing a year-on-year increase of 5.8%[11] - Fixed broadband access revenue was RMB 33.34 billion, reflecting a year-on-year increase of 3.9%[11] - The revenue from the industrial internet business was RMB 40.93 billion, showing a significant increase of 25.3% year-on-year[11] Operating Costs - Operating costs for the same period were CNY 228.55 billion, up 9.6% from CNY 208.43 billion year-on-year[20] - The cost of sales for communication products increased by 22.8%, aligning with the revenue growth of 22.8% in communication products[19] - Network operation and support costs rose by 14.0% year-on-year, primarily due to increased costs associated with network and operational scale expansion[19] - The company reported a 9.8% increase in labor costs compared to the previous year, driven by ongoing reforms in the incentive mechanism and the introduction of innovative talent[19] Strategic Initiatives - The company aims to enhance its service capabilities in the new generation of information infrastructure and accelerate its digital transformation[19] - The company plans to leverage mixed reform and digital transformation to create greater value for shareholders, customers, and society[19] Share Repurchase - The company has repurchased a total of 513.31 million shares as of September 30, 2021[10]

Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.120 per share, expecting to receive approximately RMB 1.61 billion from its subsidiary[3]. - After deducting daily expenses and statutory reserves, the distributable profit for shareholders is estimated to be around RMB 1.5 billion[3]. - The total cash dividend distribution is projected to be approximately RMB 1.49 billion, based on the proposed distribution of RMB 0.488 per 10 shares[3]. - The board of directors has approved the profit distribution plan, pending shareholder meeting approval[3]. - The company plans to initiate a mid-term dividend of RMB 0.0488 per share based on strong operational performance and cash flow[25]. - The company plans to maintain the total amount of profit distribution unchanged, adjusting the per-share dividend ratio if there are changes in the total share capital before the record date[75]. Financial Performance - The company's operating revenue for the first half of 2021 was CNY 164.17 billion, an increase of 9.2% compared to CNY 150.40 billion in the same period last year[17]. - Main business revenue reached CNY 148.67 billion, reflecting a growth of 7.5% from CNY 138.33 billion year-on-year[17]. - Total profit for the period was CNY 11.24 billion, up 15.9% from CNY 9.70 billion in the previous year[17]. - Net profit attributable to shareholders was CNY 4.03 billion, representing a 20.6% increase from CNY 3.34 billion year-on-year[17]. - The net cash flow from operating activities was CNY 51.42 billion, a rise of 5.7% compared to CNY 48.64 billion in the same period last year[17]. - The company's total assets at the end of the reporting period were CNY 572.43 billion, down 1.7% from CNY 582.48 billion at the end of the previous year[17]. - The net assets attributable to shareholders increased to CNY 148.51 billion, a slight increase of 0.5% from CNY 147.71 billion year-on-year[17]. - Basic earnings per share for the first half of 2021 were CNY 0.131, up 21.3% from CNY 0.108 in the same period last year[18]. - The weighted average return on net assets increased to 2.68%, up 0.42 percentage points from 2.26% year-on-year[18]. - The company reported a net profit after deducting non-recurring gains and losses of CNY 4.17 billion, which is a 17.9% increase from CNY 3.54 billion in the previous year[17]. Operational Highlights - The company is focused on expanding its business through partnerships and innovative marketing strategies[8]. - The company aims to enhance its innovation capabilities in key sectors such as smart cities and industrial internet, leveraging 5G technology[22]. - The company has completed over 70% of its state-owned enterprise reform tasks, focusing on market-oriented reforms[23]. - The company opened 461,000 5G base stations, achieving coverage in major urban areas and core districts[23]. - The company had 310.5 million mobile billing users and 90.1 million fixed broadband users by the end of June 2021[21]. - In the first half of 2021, the company's mobile main business revenue reached RMB 82.1 billion, a year-on-year increase of 7.3%, the highest growth since 2018[27]. - The number of mobile billing users improved significantly, with a net increase of 4.65 million users, reaching a total of 310 million[27]. - The mobile user ARPU reached RMB 44.4, an increase of 8.5% year-on-year, indicating continuous optimization of user value[27]. - The total mobile internet traffic grew by 27.5%, with the average monthly data traffic per mobile user reaching approximately 12.2GB[27]. - The number of 5G package users reached 113 million, with a penetration rate of 36.5%, leading the industry[27]. Financial Position - The company's total liabilities as of June 30, 2021, amounted to RMB 237.69 billion, a decrease from RMB 251.00 billion as of December 31, 2020, representing a reduction of approximately 5.3%[119]. - The company's total equity attributable to shareholders was RMB 148.51 billion as of June 30, 2021, compared to RMB 147.71 billion at the end of 2020, reflecting a slight increase of approximately 0.5%[119]. - The company's cash and cash equivalents decreased to RMB 28.36 billion as of June 30, 2021, from RMB 35.22 billion at the end of 2020[117]. - The company's asset-liability ratio stood at 41.5% at the end of the first half of 2021[38]. - The company reported a beginning balance of CNY 10,510,092,986 in loans from its controlling shareholder, with a slight decrease of CNY 322,153 during the reporting period[91]. - The company’s controlling shareholder has a maximum credit limit of CNY 2.8 billion for interbank lending, with an actual maximum of CNY 100,243,750[92]. Risks and Compliance - The report highlights various risks including market competition, regulatory policies, and technological upgrades[5]. - The company is closely monitoring regulatory policy changes in the telecommunications industry, which may present both opportunities and challenges[67]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[5]. - The company maintains a good integrity status, with no significant lawsuits or regulatory penalties reported during the period[87]. - The company expressed disappointment over the delisting of its American depositary shares from the NYSE due to U.S. government regulations, effective May 18, 2021[70]. Governance and Management - The company held its first and second extraordinary general meetings in March 2021, approving the appointment of new directors and the re-election of the board and supervisory committee[71]. - The company convened its annual general meeting on May 11, 2021, where several key resolutions were passed, including the approval of the 2020 annual report and financial statements[72]. - The company appointed Chen Zhongyue as president and elected several new directors during the reporting period[73]. - The company experienced changes in its board and senior management, with several resignations due to job relocations[74]. - The company aims to enhance its governance structure and long-term incentive mechanisms to motivate core management and key employees[96]. Research and Development - Research and development expenses increased by 52.0% year-on-year, reaching RMB 1.02 billion, reflecting the company's commitment to enhancing innovation capabilities[58]. - The company has encouraged independent innovation in energy-saving management solutions for 4G/5G networks, aiming to achieve industry-leading levels domestically[80]. Environmental Initiatives - The company has established a "carbon peak and carbon neutrality" action plan for the 14th Five-Year Plan, focusing on green and low-carbon development[80]. - The company is promoting the construction of a green network, including the development of green low-carbon data centers and the optimization of old equipment[80]. - The company has implemented a digital energy management system to control carbon emissions and promote green operations[81]. - The company has been recognized as a "National Advanced Collective in Poverty Alleviation" by the central government for its efforts in poverty alleviation and rural revitalization[82].

Financial Performance - In 2020, the company achieved a total operating revenue of RMB 275.8 billion, a year-on-year increase of 4.3%, surpassing the industry average growth of 3.6%[35]. - The total profit reached RMB 16 billion, with a net profit attributable to the parent company of RMB 5.5 billion, representing a year-on-year growth of 10.8%[35]. - The company maintained a strong free cash flow of RMB 39.7 billion, enhancing its financial strength[35]. - The board proposed a final dividend of RMB 0.0658 per share, an increase from RMB 0.0604 per share in 2019[35]. - The company's net profit is influenced by capital expenditures and financial costs, highlighting the importance of EBITDA for analyzing operational results in the capital-intensive telecom industry[51]. - The net profit attributable to shareholders was CNY 5.52 billion, reflecting a growth of 10.8% year-on-year[67]. - The company reported a net cash flow from operating activities of CNY 107.33 billion, up 11.6% from the previous year[67]. - The EBITDA for the year was RMB 93.9 billion, reflecting steady improvement in profitability[78]. - The company's total costs and expenses amounted to RMB 283.95 billion, reflecting a year-on-year increase of 4.0%[105]. - The company's asset-liability ratio at the end of 2020 was 43.1%, up from 42.7% at the end of the previous year[118]. User Growth and Market Penetration - The company had over 70.83 million 5G package users, with a penetration rate of 23%, exceeding the industry average of 20%[39]. - The number of mobile billing users reached approximately 305.81 million by the end of 2020, while fixed broadband users totaled about 86.10 million[74]. - The average revenue per user (ARPU) showed a significant increase, reflecting improved service offerings and customer engagement[59]. - The penetration rate of integrated services among fixed broadband users reached 64%, an increase of 5 percentage points year-on-year[86]. - As of the end of 2020, the mobile billing users reached 306 million, with a 16.5% year-on-year increase in mobile internet traffic[93]. Revenue Streams and Business Segments - The mobile service revenue reached RMB 156.7 billion, with the mobile ARPU increasing by 4.1% to RMB 42.1[38]. - The fixed broadband access revenue grew by 2.4% year-on-year, reaching RMB 42.6 billion, with a net increase of 2.62 million broadband users[40]. - The company's industrial internet business revenue increased by 30.0% year-on-year, reaching RMB 42.7 billion, accounting for 15.5% of total main business revenue[42]. - ICT business revenue was RMB 13.4 billion, up 33.4% year-on-year; IDC and cloud computing revenue reached RMB 23.4 billion, growing by 26.1%[42]. - The revenue from non-voice business reached RMB 240.32 billion, marking a year-on-year growth of 6.9%[104]. Capital Expenditures and Investments - Capital expenditures for the year were RMB 67.6 billion, with effective control over investment pace[35]. - The company completed capital expenditures of RMB 67.6 billion in 2020, with RMB 34 billion specifically allocated for 5G investments[130]. - The company held significant equity investments, including 20.65% of the shares in a Hong Kong-listed tower company and a 50% stake in a consumer finance company[130]. Technological Advancements and Innovations - The company launched three 5G private network products, enhancing its competitive edge in the market[39]. - The company established over 1,000 members in the 5G application innovation alliance, promoting industry collaboration[39]. - The company completed 100% migration of its cBSS system, enhancing its IT centralized advantages[46]. - The company aims to leverage the 5G development opportunity in 2021, focusing on innovation and digital transformation to enhance service quality and operational efficiency[49]. - The company launched its first MEC (Multi-access Edge Computing) commercial network in April 2020[55]. Corporate Governance and Social Responsibility - The company received multiple accolades, including being named the "Best Corporate Governance Company in Asia" by Finance Asia and ranked 286th in Forbes Global 2000[48]. - The company actively engaged in poverty alleviation efforts, increasing network coverage and offering special tariff packages for impoverished areas[158]. - The total funds allocated for poverty alleviation amounted to ¥26,331.87 million, with specific project investments totaling ¥14,604.2 million across 328 projects[159]. - The company was recognized as a "National Advanced Collective in Poverty Alleviation" by the central government, highlighting its commitment to social responsibility[160]. Future Outlook and Strategic Goals - The company aims to leverage the 5G scale development opportunity in 2021, focusing on innovation and digital transformation to enhance operational efficiency and service quality[92]. - The company plans to focus on digital transformation and differentiated operations, particularly in the 5G sector, to drive sustainable high-quality development[74]. - The company aims to become a leading comprehensive digital service provider by 2025, focusing on quality development and digital operational capabilities[137]. - The company is exploring potential acquisitions to strengthen its market position, with a budget of $I million earmarked for this purpose[200]. Management and Shareholder Structure - The company has established a restricted stock incentive plan to motivate core management and key employees, with 799,755,000 shares granted[168]. - The largest shareholder, China United Network Communications Group Co., Ltd., holds 11,399,724,220 shares, representing 36.8% of total shares[171]. - The company has undergone significant management changes, including the appointment of new board members and the election of Zhang Baoying as an employee supervisor[186]. - The company continues to expand its management team to enhance operational efficiency and strategic direction[186].

Financial Performance - Operating revenue for the period was CNY 82.27 billion, an increase of 11.4% year-on-year[5] - Net profit for the period reached CNY 3.84 billion, reflecting a growth of 21.3% compared to the same period last year[5] - The net profit attributable to shareholders of the listed company was CNY 1.69 billion, up 21.2% year-on-year[5] - Basic earnings per share for the period were CNY 0.055, representing a 22.2% increase year-on-year[5] - The company's total revenue for Q1 2021 was RMB 73.924 billion, an increase of 8.2% year-over-year, while the net profit attributable to the parent company was RMB 1.692 billion, up 21.2% from the previous year[12] - Net profit for Q1 2021 was CNY 3.84 billion, compared to CNY 3.16 billion in Q1 2020, representing a growth of 21.3%[26] - The company’s total comprehensive income for Q1 2021 was CNY 4.07 billion, compared to CNY 2.18 billion in Q1 2020, an increase of 86.5%[27] Assets and Liabilities - Total assets at the end of the reporting period were CNY 569.70 billion, a decrease of 2.2% compared to the end of the previous year[5] - The total liabilities of the company were RMB 234.33 billion, down from RMB 251.00 billion, marking a reduction of about 6.6%[24] - The company's equity attributable to shareholders was RMB 149.33 billion, an increase from RMB 147.71 billion, showing a growth of approximately 1.1%[24] - The company's cash and cash equivalents decreased by 31.9% to RMB 23.973 billion, primarily due to repayment of interest-bearing liabilities and payments for 5G project costs[15] - The total assets as of Q1 2021 amounted to CNY 106.13 billion, slightly down from CNY 106.29 billion at the end of Q1 2020[25] - The total liabilities for Q1 2021 were CNY 1.79 billion, a minor decrease from CNY 1.80 billion in Q1 2020[25] Cash Flow - The cash flow from operating activities was CNY 20.29 billion, an increase of 7.2% compared to the previous year[5] - Cash inflows from operating activities totaled CNY 79,438,000,224 in Q1 2021, up from CNY 67,549,020,418 in Q1 2020, reflecting a growth of approximately 17.5%[31] - Cash outflows from operating activities amounted to CNY 59,147,162,939 in Q1 2021, compared to CNY 48,612,711,472 in Q1 2020, which is an increase of about 21.5%[31] - The net cash flow from operating activities for Q1 2021 was CNY 20,290,837,285, compared to CNY 18,936,308,946 in Q1 2020, showing an increase of approximately 7.1%[31] - The cash and cash equivalents at the end of the period increased by approximately 25.4% compared to the beginning balance[34] User Growth and Revenue Streams - As of March 31, 2021, the total number of mobile billing users reached 309.293 million, with a net increase of 3.482 million users during the quarter, compared to a decrease of 3.371 million in the same period last year[10] - The number of 5G package users increased by 21.022 million to 91.852 million, significantly contributing to the growth of mobile billing users' ARPU, which rose by 11.5% to RMB 44.6[12] - Fixed broadband users reached 88.127 million, with a net increase of 2.032 million users in Q1 2021, and fixed broadband access revenue grew by 1.1% to RMB 10.905 billion[13] - The revenue from the industrial internet business surged by 25.9% year-over-year to RMB 14.408 billion, driven by the rapid growth of innovative business[13] Investments and Financial Management - Investment income increased by 129.0% to RMB 1.114 billion, mainly due to higher equity method investment income from joint ventures and other debt investments[16] - Financial expenses decreased significantly by 198.6% to -RMB 87.268 million, attributed to a reduction in interest expenses due to a decrease in interest-bearing liabilities[16] - The company plans to repurchase A-shares using between RMB 12.5 billion and RMB 25 billion, with a maximum price of RMB 6.5 per share, within a 12-month period starting from March 11, 2021[18] Management and Strategic Direction - The management team underwent changes, with Chen Zhongyue appointed as the new president, reflecting the company's commitment to strategic leadership and governance[17] - The company plans to continue focusing on innovation and digital transformation, aiming to enhance service quality and operational efficiency in the 5G era[14]

Dividend and Profit Distribution - The board of directors proposed a cash dividend of 0.164 CNY per share for the fiscal year 2020, subject to approval at the shareholders' meeting, with a total expected distribution of approximately 2.686 billion CNY[4]. - The company expects to distribute approximately 2.041 billion CNY (including tax) to shareholders, after deducting daily expenses and statutory reserves[4]. - The company reported a profit distribution plan that includes a total distributable profit of approximately 2.045 billion CNY after accounting for expenses and reserves[4]. - In 2020, the company reported a net profit attributable to shareholders of CNY 5.52 billion, with a dividend payout ratio of 36.96%[109]. Financial Performance - The company's operating revenue for 2020 was CNY 303.84 billion, an increase of 4.6% compared to 2019[19]. - The main business revenue reached CNY 275.81 billion, reflecting a growth of 4.3% year-on-year[19]. - Net profit attributable to shareholders was CNY 5.52 billion, representing a 10.8% increase from the previous year[19]. - Cash flow generated from operating activities amounted to CNY 107.33 billion, up by 11.6% compared to 2019[19]. - The company's total operating income for Q4 2020 was CNY 78.48 billion, with a net profit attributable to shareholders of CNY 737.51 million[22]. - The company maintained strong free cash flow of RMB 39.7 billion, enhancing its financial strength and stability[31]. - The company reported a total revenue of CNY 300 billion for the year 2020, representing a year-on-year growth of 5%[167]. - The company reported a net profit of RMB 30 billion for 2020, marking a 10% increase compared to the previous year[177]. Risk Management and Compliance - The company faces risks including market competition, regulatory changes, technology upgrades, and foreign exchange fluctuations, which are detailed in the operational discussion section[7]. - The company has a comprehensive risk management framework in place to address potential challenges in the telecommunications industry[7]. - The company has confirmed that all board members attended the board meeting, ensuring governance compliance[3]. - The company has not violated decision-making procedures in providing guarantees to external parties[6]. - The company will continue to monitor regulatory changes in the telecommunications industry to adapt to new opportunities and challenges[104]. - The company has no major litigation or arbitration matters during the reporting period[117]. - The company has a good integrity status, with no significant debts that have not been settled[118]. Technological Development and Innovation - The company is focusing on expanding its Internet of Things (IoT) business, which connects various smart devices for communication[11]. - The company plans to continue investing in 5G technology and infrastructure to support future growth[19]. - The company aims to leverage technologies such as 5G, IoT, and big data for future product and service development[27]. - The company is actively participating in the development and application of 5G technology, aiming to enhance its competitive edge in the telecommunications market[105]. - The company has been focusing on technological upgrades and the promotion of new business initiatives to maintain its market position[105]. - The company aims to achieve a market share of 25% in the IoT sector by 2023, driven by strategic partnerships and technological advancements[167]. User and Market Expansion - By the end of 2020, the company had approximately 305.81 million mobile billing users and 86.10 million fixed broadband users[27]. - The number of 5G package users reached 70.83 million, with a penetration rate of 23%, exceeding the industry average of 20%[34]. - The company aims to expand its market presence by entering into strategic partnerships with technology firms, targeting a 15% increase in service offerings by 2022[177]. - The company has set a target to achieve a 20% increase in broadband subscribers by the end of 2021[178]. Governance and Management - The company has established several strategic cooperation centers and joint laboratories with major tech firms to explore applications of AI, edge computing, and network slicing in 5G[40]. - The company is undergoing a board and supervisory committee restructuring, with proposals submitted for shareholder approval[162]. - The company emphasizes talent development and has established a systematic training plan for management and professional personnel to enhance their capabilities[185]. - The company has a strong governance structure with board members holding multiple positions across different entities, enhancing its influence in the telecommunications sector[175]. - The company continues to emphasize the importance of compliance and governance in its operations[162]. Social Responsibility and Community Engagement - The company has developed a targeted poverty alleviation plan, ensuring effective implementation of assistance projects[124]. - Total funding for poverty alleviation efforts amounted to CNY 26,331.87 million, with additional material contributions of CNY 96.11 million[126]. - A total of 42,778 individuals were lifted out of poverty through various initiatives, including 19,945 through industrial development projects[128]. - The company received recognition as a "National Advanced Collective in Poverty Alleviation" from the Central Government on February 25, 2021[130]. Shareholder Structure and Equity - The total number of ordinary shares at the end of the reporting period was 9,837,109,292, with a significant portion being restricted shares[141]. - The top ten shareholders held a total of 36.8% of the shares, with China United Network Communications Group Co., Ltd. being the largest shareholder at 11,399,724,220 shares[144]. - The company has not disclosed any related party transactions involving its directors and senior management during the reporting period[157]. - The company has committed to not transferring shares for 36 months following the acquisition of shares, ensuring stability in its shareholder structure[111].