Dividend Policy - The company decided not to distribute an interim dividend for the first half of 2018, considering its profitability, debt levels, and future funding needs [5]. - The board will propose an annual dividend distribution plan based on the full-year performance, which will be submitted for shareholder approval [5]. - The company decided not to distribute interim dividends for the first half of 2018, with the board planning to propose an annual dividend based on full-year performance [83]. Financial Performance - The company's operating revenue for the first half of 2018 was CNY 149.1 billion, an increase of 7.9% compared to CNY 138.2 billion in the same period last year [21]. - Main business revenue reached CNY 134.4 billion, reflecting an 8.3% growth from CNY 124.1 billion year-on-year [21]. - Net profit attributable to shareholders was CNY 2.58 billion, a significant increase of 231.8% compared to CNY 778.4 million in the previous year [21]. - The net cash flow from operating activities was CNY 52.4 billion, up 5.4% from CNY 49.7 billion in the same period last year [21]. - The total assets at the end of the reporting period were CNY 552.5 billion, a decrease of 3.7% from CNY 573.6 billion at the end of the previous year [21]. - The net assets attributable to shareholders increased to CNY 137.9 billion, a rise of 1.8% from CNY 135.4 billion at the end of the previous year [21]. - Basic earnings per share for the first half of 2018 were CNY 0.0849, representing a 131.3% increase from CNY 0.0367 in the same period last year [23]. - The weighted average return on equity rose to 1.89%, an increase of 0.89 percentage points compared to 1.00% in the previous year [23]. - The company achieved a total operating revenue of RMB 149.11 billion in the first half of 2018, representing a year-on-year growth of 7.9% [48]. - The company's non-voice business revenue reached RMB 110.42 billion, growing by 14.8% year-on-year, and accounted for 82.1% of the main business revenue [48]. - The company reported a net profit of RMB 5.89 billion in the first half of 2018, with a year-on-year increase of 231.8% [58]. Market Expansion and Competition - The company reported a significant increase in user data, with a focus on expanding its customer base through strategic partnerships and marketing initiatives [10]. - The company is actively pursuing market expansion strategies, including collaborations with internet companies to enhance customer service capabilities [10]. - The company is facing intensified industry competition, regulatory changes, and risks related to technology upgrades, interest rates, and exchange rates [7]. - The company is focusing on expanding its 4G+ services and enhancing its ICT capabilities to drive future growth [12]. - The introduction of new products and services, such as the "Ice Cream" 4G package, aims to attract more users and increase market share [12]. Financial Management and Strategy - The company is committed to developing new products and technologies to maintain competitiveness in the telecommunications sector [10]. - The company is focusing on mixed-ownership reform and strategic partnerships with major tech firms to enhance user acquisition and service offerings [43]. - The company plans to enhance its competitive edge by focusing on internet-based operations and implementing a mixed-ownership reform strategy [76]. - The company is closely monitoring regulatory policy changes that may impact its operations and is prepared to adjust accordingly [77]. - The company believes it can raise funds through various channels to meet operational and debt obligations, ensuring sufficient liquidity [176]. Corporate Governance and Compliance - The company emphasizes the importance of accurate financial reporting and has ensured that the report is truthful and complete, with no significant omissions [7]. - The financial report for the first half of 2018 has not been audited, but management has confirmed its accuracy and completeness [7]. - The company reported no significant litigation or arbitration matters during the reporting period [86]. - The company’s actual controller and shareholders maintained good integrity status during the reporting period, with no significant debts overdue [86]. - The company’s stock incentive plan was disclosed in a temporary announcement, with no further developments or changes reported [87]. Environmental and Social Responsibility - A total of RMB 2,268.86 million was allocated for poverty alleviation efforts, with 30,557 individuals lifted out of poverty [96]. - The company invested RMB 973.62 million in 356 poverty alleviation projects, helping 15,638 individuals escape poverty through industrial development [96]. - The company provided vocational training to 13,874 individuals, with an investment of RMB 215.47 million, resulting in 5,667 individuals achieving employment [96]. - The company allocated RMB 131.97 million to support impoverished students, benefiting 1,740 students [97]. - The company invested RMB 231.81 million in healthcare resources for impoverished areas [97]. - The company aims to continue its poverty alleviation efforts by developing innovative models and increasing collaboration with local governments [99]. Shareholder Structure and Changes - The largest shareholder, China United Network Communications Group Co., Ltd., holds 11,399,724,220 shares, representing 36.7% of the total shares [115]. - China Life Insurance Co., Ltd. holds 3,190,419,687 shares, accounting for 10.3% of the total shares, with 3,177,159,590 shares under lock-up [115]. - The China State-Owned Enterprises Structural Adjustment Fund holds 1,899,764,201 shares, which is 6.1% of the total shares [116]. - The total number of shares held by the top ten shareholders is significant, with the top three shareholders alone accounting for over 53% of the total shares [115]. - The company has a lock-up period of 36 months for newly issued shares from the private placement completed in October 2017 [121]. Management and Board Changes - The company experienced a change in its board of directors, with several new appointments and resignations, including the election of a new chairman and several independent directors [127]. - The company appointed a new Chief Financial Officer, Zhu Kebing, following the resignation of the previous president due to job relocation [131]. - The company’s independent director, Li Yanhong, resigned due to time constraints, and a new director is to be proposed for election [130]. - The company’s management changes included the appointment of several new senior vice presidents during the reporting period [129]. Accounting and Financial Reporting - The company has undergone changes in accounting policies due to new financial standards issued by the Ministry of Finance, which may affect the financial statements [102]. - The company has not reported any significant accounting errors that require retrospective restatement during the reporting period [103]. - The financial statements comply with the accounting standards set by the Ministry of Finance of the People's Republic of China, reflecting a true and complete financial position as of June 30, 2018 [177].

Financial Performance - In 2017, the company's main business revenue increased by 4.6% year-on-year, and net profit attributable to the parent company surged by 176.4%[8] - The company reported a total revenue of CNY 274.83 billion in 2017, a slight increase of 0.2% compared to CNY 274.20 billion in 2016[26] - The net profit attributable to shareholders reached CNY 425.84 million, marking a significant increase of 176.4% from CNY 154.07 million in the previous year[26] - The company achieved a basic earnings per share of CNY 0.0188, representing an increase of 158.1% from CNY 0.0073 in 2016[29] - The company reported a net profit of CNY 992.59 million after deducting non-recurring gains and losses, a turnaround from a loss of CNY 58.23 million in 2016[26] - The company's EBITDA reached RMB 81.7 billion, up 2.3% year-on-year, while net profit attributable to the parent company surged by 176.4% to RMB 4.3 billion[51] - The mobile service revenue grew to RMB 156.44 billion, representing a 7.9% increase, with a net addition of 20.34 million mobile subscribers, totaling 284.16 million[53] - The company’s capital expenditure decreased by 41.6% to RMB 42.13 billion, resulting in a free cash flow of RMB 49.21 billion, a 5.6-fold increase year-on-year[52] - The company’s debt-to-asset ratio improved from 62.6% to 46.5% due to successful mixed-ownership reform[52] - The company’s total liabilities decreased by 68.4% to RMB 24.32 billion, primarily due to the repayment of bank loans related to mixed-ownership reform[111] Business Strategy and Innovation - The company successfully introduced and scaled new transformation products such as 2I2C and 2B2C, leading to a significant increase in 4G user growth, exceeding the industry average by 2.2 percentage points[9] - The company plans to continue focusing on mixed-ownership reform and innovation to enhance its competitive position in the market[38] - The company is committed to social responsibility and aims to meet the growing information needs of the public while promoting economic and environmental harmony[12] - In 2018, the company plans to focus on innovation and cooperation strategies, enhancing its operational capabilities and deepening institutional reforms[12] - The company plans to continue expanding its IoT business and enhancing its ICT capabilities through strategic partnerships with Alibaba and Tencent[76] - The company aims to explore new governance structures to improve productivity and operational mechanisms[66] - The company is focused on deepening cooperation with strategic investors to enhance innovation and operational capabilities[66] Network and Technology Development - China Unicom's 4G+ network achieved gigabit-level transmission capabilities[18] - The company established the first 5G high and low frequency outdoor experimental base and the first 5G new air interface outdoor testing site[18] - The average upload and download speeds of the 4G network are industry-leading, with improvements in both mobile and fixed broadband NPS[9] - The company’s 4G base stations reached 852,000, with a 90% coverage rate in townships by the end of 2017[72] - The company has extensive experience in building and operating 2G/3G/4G networks and is actively engaged in 5G network demand analysis[124] Shareholder and Capital Management - The company completed the non-public issuance of 9,037,354,292 shares to strategic investors[18] - The company plans to distribute a cash dividend of RMB 0.204 per 10 shares for the fiscal year 2017, totaling approximately RMB 6.17 billion available for distribution to shareholders[129] - The company’s cash dividend payout ratio for 2017 was 144.84% of the net profit attributable to ordinary shareholders[131] - The company’s total share capital as of December 31, 2017, was 30.234 billion shares, which serves as the basis for the dividend calculation[129] - The company’s controlling shareholder, Unicom Group, holds 37.7% of the shares as of the end of the reporting period[160] Social Responsibility and Community Engagement - The company has invested RMB 7,675.04 million in poverty alleviation efforts, helping 19,310 registered impoverished individuals to escape poverty[150] - The company provided vocational skills training to 3,476 individuals, with an investment of RMB 151.49 million in this area[150] - The company has helped 3,422 registered impoverished households achieve employment through its initiatives[150] - The company allocated RMB 126.25 million to improve healthcare resources in impoverished areas[152] Regulatory and Market Environment - The company anticipates facing intensified competition in the telecommunications industry, particularly in the 4G mobile business segment[122] - Regulatory changes in the telecommunications sector may present both opportunities and challenges for the company, necessitating close monitoring and timely adjustments[123] - The company is closely monitoring foreign exchange and interest rate fluctuations to manage risks associated with foreign currency-denominated assets and liabilities[125] Leadership and Governance - The company has a strong leadership team with diverse backgrounds in telecommunications and finance, enhancing its strategic decision-making capabilities[200] - Wang Xiaochu has extensive management and telecommunications experience, having served as chairman and CEO of multiple telecom companies since 2015[196] - Lu Yimin has been the president of the company since March 2009, bringing significant government and management experience[198] - Li Fushen has been the CFO since March 2011, with a long history in the telecommunications industry[199]

Financial Performance - Total revenue for Q1 2018 reached CNY 74.94 billion, an increase of 8.59% compared to the same period last year[9] - Net profit for the period was CNY 2.98 billion, representing a significant increase of 260.92% year-on-year[9] - Mobile service revenue for Q1 2018 was RMB 41.51 billion, representing an 11.6% increase year-over-year[15] - Total operating revenue for Q1 2018 was RMB 66.61 billion, up 8.4% from the same period last year[16] - EBITDA for Q1 2018 was RMB 24.12 billion, a 14.5% increase year-over-year, with an EBITDA margin of 36.2%[17] - The total profit for Q1 2018 was RMB 3.98 billion, a significant increase of 253.6% compared to the previous year[17] - Net profit attributable to the parent company reached RMB 1.30 billion, up 374.8% year-over-year[17] - The total comprehensive income for Q1 2018 was CNY 2.83 billion, compared to CNY 1.65 billion in Q1 2017, an increase of 71.3%[44] Cash Flow and Assets - The net cash flow from operating activities was CNY 25.46 billion, up 15.93% from CNY 21.96 billion in the previous year[9] - The company's cash and cash equivalents increased to RMB 49.62 billion from RMB 38.40 billion, representing a growth of approximately 29.0%[34] - The total cash inflow from operating activities was CNY 74,435,721,596, an increase of 5.7% compared to CNY 70,042,727,113 in the previous period[48] - The net cash flow from operating activities reached CNY 25,456,487,663, up 15.4% from CNY 21,957,939,621 in the same period last year[48] - The cash inflow from sales of goods and services was CNY 73,921,521,173, reflecting a strong operational performance[48] - The cash and cash equivalents at the end of the period amounted to CNY 45,758,248,361, an increase from CNY 23,094,579,769 at the end of the previous period[50] Shareholder Information - The number of shareholders reached 760,614 by the end of the reporting period[12] - The largest shareholder, China United Network Communications Group, held 37.7% of the shares[12] User Growth - As of March 31, 2018, the total number of mobile billing users reached 29.39 million, an increase of 978,200 users compared to the previous period[15] - The number of 4G users increased by 1.93 million, totaling 19.42 million users[15] - The company reported a total of 7.81 million fixed broadband users, with a net increase of 151,800 users in the first quarter[16] Operating Costs and Expenses - Total operating costs for Q1 2018 were CNY 71.20 billion, up from CNY 68.01 billion in the same period last year, reflecting a growth of 3.2%[42] - Financial expenses decreased by 80.39% to 245,302,317 from 1,250,593,324 due to a reduction in interest-bearing liabilities[21] Accounting Changes - The company implemented new accounting standards effective January 1, 2018, which resulted in a cumulative impact of approximately 1.8 billion RMB on retained earnings[22] Strategic Initiatives - The company plans to enhance innovation capabilities and deepen cooperation with strategic investors to drive future growth[17] - The company is committed to implementing national policies on reducing fees and improving network speed, aiming for sustainable business development[29] Other Financial Metrics - The weighted average return on equity increased to 0.95%, up by 0.60 percentage points compared to the previous year[9] - Basic earnings per share rose to CNY 0.0430, reflecting a growth of 233.33% year-on-year[9] - The company reported an investment income of CNY 229.5 million, down from CNY 312.8 million in the previous year, a decrease of 26.6%[42] - The company recorded a decrease in other comprehensive income, with a net loss of CNY 158.49 million compared to a gain of CNY 821.77 million in the previous year[42]

Financial Performance - Net profit increased by 168.13% to CNY 3.96 billion for the first nine months of the year[6] - Operating revenue for the first nine months was CNY 205.78 billion, a slight decrease of 0.66% year-on-year[6] - Main business revenue rose by 4.15% to CNY 187.88 billion compared to the same period last year[6] - The company reported a net profit attributable to shareholders of CNY 1.31 billion, up 168.42% year-on-year[6] - Net profit for the period was RMB 39.57 billion, with a significant increase of 168.4% in net profit attributable to the parent company[12] - Net profit for Q3 2017 reached CNY 1.61 billion, compared to CNY 125.06 million in Q3 2016, indicating a significant increase of 1,187.5%[33] - The total profit for the first nine months of 2017 was a loss of CNY 2.55 billion, compared to a profit of CNY 1.35 billion in the same period last year, reflecting a significant downturn in profitability[36] Cash Flow and Liquidity - The net cash flow from operating activities increased by 18.56% to CNY 79.15 billion[6] - Cash and cash equivalents increased by 54.6% to RMB 39.25 billion, primarily due to increased free cash flow[16] - The total cash and cash equivalents at the end of September 2017 amounted to CNY 36.53 billion, up from CNY 21.19 billion at the end of the previous year, showing a substantial increase of approximately 72%[38] - The financing cash flow for the first nine months of 2017 resulted in a net outflow of CNY 14.36 billion, compared to a net outflow of CNY 2.64 billion in the previous year, highlighting increased financing challenges[38] - The net cash flow from operating activities was -2,848,989, indicating a decrease compared to -5,592,885 in the previous period[41] - The net cash flow from investing activities was 335,160, a significant decrease from 1,357,330,216 in the previous period[41] - The net cash flow from financing activities was 3,086,256,491, compared to -1,212,445,350 in the previous period, showing a strong inflow[41] Assets and Liabilities - Total assets decreased by 4.11% to CNY 590.57 billion compared to the end of the previous year[6] - The company's total assets amounted to CNY 42.74 billion, up from CNY 39.66 billion year-over-year, marking an increase of 5.3%[29] - The company's total liabilities decreased to RMB 355.73 billion from RMB 385.40 billion, reflecting a reduction of 7.7%[25] - The equity attributable to shareholders increased to RMB 78.94 billion from RMB 77.50 billion, showing a growth of 1.8%[25] User Growth and Market Position - The mobile billing user base reached 276.87 million, with a net increase of 13.04 million users in Q3 2017, compared to a net increase of 9.76 million in Q3 2016[10] - The number of 4G users increased by 55.73 million, totaling 160.28 million, with an ARPU of RMB 65.6, up from RMB 46.4 in 2016[11] - Mobile service revenue reached RMB 1170.38 billion, a year-on-year increase of 6.7%, improving from 5.2% in the first half of 2017[11] - Fixed broadband users reached 77.41 million, with a net increase of 2.17 million, while fixed-line voice users decreased by 488.9 thousand[11] Strategic Initiatives - The company is focusing on mixed-ownership reform and strategic partnerships to enhance operational efficiency and market competitiveness[13] - The company plans to utilize raised funds for enhancing 4G capabilities and developing 5G network technology[21] - The company has received approval from the State-owned Assets Supervision and Administration Commission for its mixed-ownership reform initiatives[20] - The company has made significant progress in mixed-ownership reform, with various related announcements made throughout the reporting period[19] Future Outlook - The company anticipates significant pressure on financial performance in Q4 2017 due to increased market competition and the cancellation of domestic roaming fees[13] - The company expects a significant increase in net profit attributable to the parent company for the full year compared to the same period last year[20] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[32]

Financial Performance - For the first three quarters of 2017, the net profit attributable to the parent company is expected to increase by approximately 168.4% compared to the same period last year[3]. - The net profit for the same period last year was approximately RMB 488.76 million[5]. - The estimated mobile service revenue for the first three quarters of 2017 is approximately RMB 117 billion, an increase of about 6.7% year-on-year[8]. - The overall main business revenue is expected to be approximately RMB 187.9 billion, up about 4.1% compared to the same period last year[8]. User Growth - The net increase in mobile billing users for the first three quarters is 13.04 million, reaching a total of 277 million users[8]. - The net increase in 4G users for the same period is 55.73 million, totaling 160 million users[8]. - In September 2017, the monthly net increase in mobile billing users and 4G users reached new highs of 3.82 million and 7.56 million, respectively[8]. Future Outlook - The company expects significant financial pressure in the fourth quarter due to the cancellation of domestic roaming long-distance fees and anticipated market competition[8]. - The company aims to continue deepening its focus strategy and improve efficiency and returns through mixed ownership reform[8]. - The above forecasts are preliminary estimates and the accurate financial data will be disclosed in the official third-quarter report[9].

Dividend Policy - The board of directors decided not to distribute an interim dividend for the year, pending the annual performance review[3] - The board will propose a dividend distribution plan based on the annual performance at the shareholders' meeting[3] - The company decided not to distribute interim dividends for the current fiscal year, with a proposal for annual dividend distribution to be submitted based on full-year performance[71] - The company did not distribute dividends to shareholders during the first half of 2017, maintaining the same policy as in 2016[136] Financial Performance - The company's operating revenue for the first half of 2017 was CNY 138.16 billion, a decrease of 1.5% compared to the same period last year[22] - Net profit attributable to shareholders increased by 74.3% to CNY 778.44 million, compared to CNY 446.51 million in the previous year[22] - Basic earnings per share rose by 74.3% to CNY 0.0367[23] - The company's main business revenue reached RMB 124.11 billion, a year-on-year increase of 3.2%[34] - EBITDA amounted to RMB 43.7 billion, up 5.5% year-on-year, with an EBITDA margin of 35.2%, an increase of 0.7 percentage points[34] - Mobile service revenue increased to RMB 76.84 billion, a growth of 5.2% year-on-year, surpassing the industry average[35] - The company reported a net profit of RMB 2.35 billion, with a year-on-year increase of 74.3%, and basic earnings per share of RMB 0.037[50] - The total comprehensive income for the first half of 2017 was RMB 2.64 billion, significantly higher than RMB 753.13 million in the same period of 2016[130] Risks and Challenges - The company reported significant risks including intensified industry competition, regulatory policy changes, and technology upgrade risks[5] - The report outlines potential risks that could lead to significant differences between projected and actual financial performance[4] - The company faces risks from intensified industry competition, regulatory policy changes, and the need for continuous technological upgrades[63][64][66] Market and User Growth - The number of mobile billing users reached approximately 269 million, with 4G users accounting for about 139 million[26] - The number of fixed broadband users reached 76.92 million, reflecting the company's growth in this segment[26] - The number of mobile billing users increased by 5.63 million, totaling 269.45 million[35] - 4G users increased by 34.26 million, reaching 138.81 million, with 4G users accounting for 51.5% of total mobile billing users, up 23.7 percentage points year-on-year[35] - The number of IoT connections exceeded 50 million, indicating strong growth in innovative business areas[38] Operational Efficiency and Strategy - The company has implemented a focused strategy to enhance operational efficiency and reduce costs amid intensified industry competition[26] - The company is focused on expanding its market presence and enhancing its technological capabilities[5] - The company is exploring new product development and technological advancements to stay competitive in the market[5] - The company plans to accelerate its operational transformation and maintain rapid development of 4G services while addressing challenges in broadband business[45] - The company aims to enhance innovation capabilities and explore new growth areas through mixed-ownership reform[45] Financial Position and Assets - The company's total assets decreased by 2.9% to CNY 598.20 billion compared to the end of the previous year[22] - As of June 30, 2017, the total assets of the company decreased from RMB 615.9 billion at the end of the previous year to RMB 598.2 billion[56] - The company's cash and cash equivalents increased by 41.4% to RMB 35.92 billion due to increased borrowings[56] - The total liabilities decreased to RMB 365.04 billion from RMB 385.40 billion at the end of the previous year[127] Investment and Financing Activities - The company reported an investment income of RMB 500 million from its investment in China Tower Company during the first half of 2017[62] - The company has a total credit line of RMB 316.9 billion, with RMB 100.7 billion utilized and RMB 216.2 billion remaining available[115] - The company issued two phases of corporate bonds in 2016, with a total scale of RMB 80 billion and RMB 100 billion respectively[102] - The company paid interest on the first phase of bonds on June 7, 2017, with no delays in interest or principal payments reported[104] Corporate Governance and Compliance - The financial report for the first half of 2017 has not been audited, ensuring transparency in financial disclosures[4] - The company guarantees the accuracy and completeness of the semi-annual report, with all board members present at the meeting[4] - The company has appointed KPMG Huazhen LLP as the auditor for the 2017 fiscal year, providing services including financial statement audits and internal control audits[72] - The company has not engaged in any significant litigation or arbitration matters during the reporting period[73] Social Responsibility and Community Engagement - The company has allocated approximately RMB 1,071.67 million for targeted poverty alleviation efforts, helping 11,865 registered impoverished individuals[80] - The company has invested RMB 568.07 million in 141 poverty alleviation projects, assisting 8,803 registered impoverished individuals[80] - The company provided vocational training to 1,192 individuals, resulting in 2,150 registered impoverished households achieving employment[80] Accounting Policies and Financial Reporting - The company has not reported any significant changes in accounting policies or estimates that would materially affect its financial results[83] - The financial statements were prepared based on the going concern assumption, indicating the board's confidence in the group's ability to meet its financial obligations[147] - The financial statements comply with the accounting standards issued by the Ministry of Finance of the People's Republic of China, reflecting the group's financial position and results accurately[148]

Financial Performance - The net profit attributable to the parent company for the first half of 2017 is expected to increase by approximately 74.3% compared to the same period last year, reaching about 780 million RMB[1]. - The estimated total operating revenue for the first half of 2017 is approximately 138.2 billion RMB, a decrease of about 1.5% year-on-year[4]. - The main business revenue is expected to be around 124.1 billion RMB, reflecting a growth of approximately 3.2% year-on-year[3]. - Mobile service revenue is projected to be about 76.8 billion RMB, an increase of approximately 5.2% compared to the previous year[3]. - EBITDA for the first half of 2017 is expected to be around 43.7 billion RMB, up approximately 5.5% year-on-year, with an EBITDA margin of about 35.2%[4]. - Fixed-line broadband revenue is expected to remain flat at around 46.6 billion RMB due to intense market competition[3]. Market Challenges - The company anticipates significant financial pressure in the second half of 2017 due to the cancellation of domestic roaming long-distance fees starting September 1, 2017[4]. - The company will continue to implement its focused strategy to promote healthy development despite anticipated market challenges[4]. Cost Management - Sales expenses and terminal subsidies are expected to decrease compared to the previous year, contributing to improved profitability[4]. Data Validity - The financial data provided is preliminary and subject to confirmation in the official semi-annual report[5].

Financial Performance - The total operating revenue for 2016 was RMB 274.20 billion, a decrease of 1.0% compared to 2015[43]. - The net profit attributable to shareholders was RMB 154.07 million, down 95.6% from RMB 3.47 billion in 2015[43]. - The basic earnings per share decreased to RMB 0.0073, down 95.6% from RMB 0.1638 in 2015[46]. - The weighted average return on equity fell to 0.20%, a decrease of 4.2 percentage points from 4.40% in 2015[46]. - The net cash flow from operating activities was RMB 79.53 billion, down 10.9% from RMB 89.23 billion in 2015[43]. - The company's net profit attributable to the parent company was RMB 150 million, down 95.6% year-on-year, but showed significant improvement compared to a net loss of RMB 1.14 billion in the second half of 2015[66]. - The company's net profit attributable to the parent company was RMB 1.5 billion, a decline of 95.6% compared to the previous year[86]. - The company reported a net profit of RMB 625 million, a significant decrease of 94.1% year-on-year[155]. Revenue and User Growth - The mobile service revenue reached RMB 145.02 billion, reflecting a 1.7% increase compared to the previous year[41]. - The number of mobile billing users increased by 1.15 million to 26.38 million, representing a growth of 4.5% year-on-year[41]. - The company had approximately 264 million mobile billing users by the end of 2016, including around 105 million 4G users[56]. - The mobile business revenue for 2016 was RMB 1,450.2 billion, reflecting a year-on-year growth of 1.7%[87]. - The number of 4G users increased by 60.4 million, reaching 104.55 million, with 4G users accounting for 39.6% of total mobile subscribers, up 22.1 percentage points year-on-year[68]. - The broadband user base grew by 2.91 million, reaching 75.24 million, with FTTH users accounting for 71.2%, an increase of 18.1 percentage points year-on-year[80]. Strategic Initiatives - The company is actively pursuing network infrastructure sharing and precise marketing collaborations with internet companies to enhance operational efficiency[17]. - The company signed strategic cooperation agreements with Tencent, Baidu, and Alibaba to enhance service quality and expand market reach[27][32]. - The company implemented a strategic focus on 4G development and key regions, which helped stabilize business development and revenue[52]. - The company aims to deepen the implementation of its focus strategy, emphasizing scale efficiency and cost control to navigate through the transformation period[18]. - The company plans to leverage new opportunities arising from the national "Network Power" strategy and the "Internet Plus" action plan[18]. - The company has formed strategic partnerships with nearly 200 local governments for smart city initiatives, enhancing its information service capabilities[61]. Cost Management and Expenditures - The total cost and expenses for 2016 were RMB 2,699.6 billion, a year-on-year increase of 1.5%[93]. - The company reduced capital expenditures by 46.1% year-on-year to RMB 72.11 billion, resulting in positive free cash flow of RMB 7.42 billion[66]. - Total capital expenditures reached RMB 72.11 billion, with mobile network expenditures at RMB 27.76 billion, broadband and data at RMB 16.84 billion, and infrastructure at RMB 19.71 billion[105]. - The company's operating and support costs increased to RMB 51.17 billion, a year-on-year growth of 20.9%, accounting for 18.66% of total revenue[98]. - The company's labor costs rose to RMB 36.91 billion, reflecting a 5.0% increase, with the proportion of total revenue increasing to 13.46%[99]. Challenges and Future Outlook - Future challenges include traditional business decline, intensified competition, and regulatory pressures such as speed reduction and real-name registration policies[18]. - The company anticipates that traditional communication services will continue to decline, while innovative services will become new growth engines due to increasing demand for data[141]. - The company plans to address challenges from intensified competition and regulatory changes by implementing a focus strategy and improving resource allocation[143]. - Regulatory policies such as "speeding up and reducing fees" are expected to impact the company's revenue and net profit[145]. Shareholder Relations and Dividends - The company decided not to distribute dividends for 2016 due to the decline in net profit and the need to cover daily operational expenses[155]. - The company has committed to adhering to its profit distribution policy while striving to improve profitability for future dividend distributions[155]. - The cash dividend policy ensures that all cash dividends received from subsidiaries are fully distributed to shareholders after necessary deductions[151]. - The company distributed a cash dividend of RMB 0.0572 per share, totaling approximately RMB 1.212 billion, which represents 34.9% of the net profit attributable to shareholders for the year 2015[152]. Corporate Social Responsibility - The company reported a total of RMB 4,440.68 million in funds allocated for targeted poverty alleviation efforts in 2016[166]. - A total of 23,650 individuals were helped to escape poverty through the company's initiatives during the reporting period[166]. - The company provided vocational skills training to 2,751 individuals, with an investment of RMB 15.4 million[166]. - The company allocated RMB 89 million for improving medical and health resources in impoverished areas[166]. Governance and Management - The total remuneration for the domestic accounting firm KPMG Huazhen for the year 2016 was RMB 4.2 million, including RMB 1 million for internal control audit fees[159]. - The total pre-tax remuneration for the board members during the reporting period amounted to 7,622,800 CNY[188]. - The company has maintained a consistent board structure with no changes in shareholding among key executives[188]. - The company has a strong management team with extensive experience in the telecommunications industry, including the chairman and president[191][192][193].

Financial Performance - Net profit attributable to shareholders increased by 88.3% to RMB 274.26 million year-on-year[7] - Operating revenue decreased by 1.9% to RMB 69.01 billion, while main business revenue increased by 2.4% to RMB 61.43 billion[7] - Basic earnings per share rose by 87.0% to RMB 0.0129[7] - EBITDA for the first quarter was RMB 21.066 billion, up 5.1% year-over-year, with an EBITDA margin of 34.3%[20] - Net profit attributable to shareholders was RMB 274 million, an increase of 88.3% year-over-year, significantly improving from a net loss of RMB 335 million in the previous quarter[20] - Total operating revenue for Q1 2017 was CNY 69,005,162,761, a decrease of 1.9% compared to CNY 70,339,823,699 in the same period last year[36] - Net profit for Q1 2017 reached CNY 827,028,218, representing a significant increase of 87.4% from CNY 441,509,785 in Q1 2016[36] - Operating profit for the quarter was CNY 1,307,416,022, up 71.9% from CNY 760,636,438 in the previous year[36] - Total comprehensive income for Q1 2017 was CNY 1,648,797,896, compared to CNY 416,258,176 in the same quarter last year[36] Cash Flow and Assets - Net cash flow from operating activities increased by 30.2% to RMB 21.96 billion compared to the same period last year[7] - The net cash flow from operating activities increased by 30.2% year-over-year, primarily due to higher cash receipts from sales and reduced tax payments[24] - The company reported a net cash flow from operating activities of CNY 21,957,939,621, an increase of 30.8% compared to CNY 16,867,819,457 in Q1 2016[41] - Investment activities resulted in a net cash outflow of CNY 15,108,132,106, compared to a net outflow of CNY 22,015,387,455 in the previous year[41] - Total assets decreased by 2.2% to RMB 602.59 billion compared to the end of the previous year[7] - As of March 31, 2017, the total assets of China Unicom amounted to CNY 602.59 billion, a decrease from CNY 615.91 billion at the beginning of the year, reflecting a decline of approximately 2.12%[28] - The company’s total assets at the end of Q1 2017 were CNY 23,094,579,769, an increase from CNY 16,213,309,705 at the end of Q1 2016[41] Liabilities and Equity - The company's total liabilities were CNY 370.44 billion, down from CNY 385.40 billion, indicating a reduction of about 3.06%[30] - The total current liabilities decreased to CNY 326.74 billion from CNY 341.57 billion, a reduction of approximately 4.34%[30] - The company’s total liabilities increased to CNY 35,122,295,919, reflecting a slight increase from CNY 35,057,544,103 in Q1 2016[41] - The total equity attributable to shareholders increased to CNY 78.05 billion from CNY 77.50 billion, representing a growth of approximately 0.71%[30] User Growth and Revenue - As of March 31, 2017, the total number of mobile billing users reached 266.265 million, with a net increase of 2.443 million users in the first quarter[18] - The number of 4G users increased by 18.175 million, totaling 122.726 million, with an ARPU of RMB 73.9, reflecting a focus on upgrading from 2G/3G to 4G[18] - Total mobile service revenue for the first quarter was RMB 37.197 billion, up 2.8% year-over-year and 5.1% quarter-over-quarter[18] - Fixed broadband users reached 76.589 million, with a net increase of 1.353 million users, while fixed broadband ARPU decreased compared to the previous year[19] - Overall main business revenue was RMB 61.426 billion, an increase of 2.4% year-over-year and 6.6% quarter-over-quarter[19] Expenses and Cost Management - Sales expenses decreased by 4.2% year-over-year to RMB 8.307 billion, while financial expenses increased by 14.0% due to rising interest-bearing debt[24] - The company’s financial expenses increased to CNY 1,250,593,324, up 14.0% from CNY 1,097,020,856 in Q1 2016[36] Strategic Initiatives - The company plans to continue focusing on operational model innovation and cost control to enhance profitability and operational efficiency[21] - The company announced a significant reduction in internet access fees for small and medium enterprises and will stop charging domestic long-distance and roaming fees starting October 1, 2017[26] - The company plans to issue convertible bonds to qualified investors, as approved by the China Securities Regulatory Commission[26] - The company is actively pursuing mixed-ownership reform initiatives, which have led to the suspension of its stock trading since April 5, 2017[26] Government Support - Government subsidies related to normal business operations increased by 18.9% to RMB 22.79 million[11] - Non-operating income and expenses increased by 181.4% to RMB 138.40 million compared to the previous year[11] Shareholder Information - The total number of shareholders reached 587,153 by the end of the reporting period[12]

Financial Performance - The estimated net profit attributable to the parent company for 2016 is expected to decrease by approximately 95% compared to the previous year[1]. - The net profit attributable to the parent company for the previous year was 3,471,590,902 RMB[2]. - The decline in net profit is primarily due to the absence of tower sale gains in 2016 and increased operational costs, including tower usage fees and energy expenses[4]. - The company anticipates a significant improvement compared to a net loss of approximately 1.14 billion RMB in the second half of 2015, excluding tower sale gains[4]. - The financial data provided is preliminary and subject to confirmation in the official 2016 annual report[5]. User Growth - The mobile user base reached 264 million by the end of 2016, with a net increase of 11.505 million users for the year[4]. - The number of 4G users reached 105 million, with a net increase of 60.395 million users for the year[4]. Strategic Focus - The company plans to strengthen strategic focus and execution to promote healthy development moving forward[4].