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].

Financial Performance - Net profit attributable to shareholders decreased by 81.8% to CNY 488.76 million for the first nine months[5] - Operating revenue for the first nine months decreased by 2.3% to CNY 207.14 billion compared to the same period last year[5] - Basic earnings per share dropped by 81.8% to CNY 0.0231 per share[5] - EBITDA for the first three quarters of 2016 was RMB 61.98 billion, down 16.8% year-on-year, with an EBITDA margin of 33.9%[12] - The company expects a significant decline in net profit for the full year compared to the previous year due to rising sales expenses and increased operational costs[18] - Net profit for Q3 2016 was ¥125.06 million, a significant decline of 89.24% from ¥1.16 billion in Q3 2015[27] - The company’s total revenue for the first nine months of 2016 was ¥207.14 billion, a decrease of 2.66% from ¥211.91 billion in the same period of 2015[27] - The net profit for the first nine months of 2016 was ¥1.48 billion, down 81.69% from ¥8.08 billion in the same period of 2015[27] Asset and Liability Management - Total assets decreased by 3.0% to CNY 597.08 billion compared to the end of the previous year[5] - Total liabilities decreased to CNY 365.47 billion from CNY 381.27 billion, a reduction of about 4.15%[22] - The company's equity attributable to shareholders decreased to CNY 77.87 billion from CNY 78.68 billion, a decrease of about 1.03%[22] - Current assets totaled CNY 65.70 billion, up from CNY 59.76 billion at the beginning of the year, representing an increase of about 9.88%[21] - Short-term borrowings decreased significantly from CNY 85.20 billion to CNY 64.78 billion, a decline of approximately 24.06%[22] Revenue and User Growth - Total mobile service revenue was RMB 1,096.4 billion, showing a year-on-year growth of 0.1%[10] - Overall main business revenue was RMB 1,827.5 billion, reflecting a year-on-year growth of 1.7%[11] - As of September 30, 2016, the total number of mobile billing users reached 26,207.4 million, an increase of 975.7 thousand from the previous year[10] - The number of 4G users reached 8,890.6 million, with a net increase of 4,475 thousand in the year, and an ARPU of approximately RMB 79.3[10] - Fixed broadband users reached 7,505 million, with a net increase of 272 thousand, while fixed broadband service revenue increased by 3.9% to RMB 719.1 billion[11] Cash Flow Analysis - Cash flow from operating activities for the first nine months decreased by 3.1% to CNY 66.76 billion[5] - Operating cash inflow for the period (January to September) was CNY 208.78 billion, a decrease of 4.2% compared to CNY 219.61 billion in the same period last year[33] - Net cash flow from operating activities was CNY 66.76 billion, down from CNY 68.87 billion year-on-year, reflecting a decline of 3.1%[34] - Cash inflow from financing activities reached CNY 170.62 billion, up 37.8% from CNY 123.75 billion in the same period last year[34] - The ending balance of cash and cash equivalents was CNY 21.19 billion, down from CNY 26.41 billion at the end of the previous year[34] Operational Challenges and Strategies - The company has seen improvements in mobile business performance, reversing previous declines[10] - The net decrease in fixed local telephone users was 483.1 thousand, indicating challenges in that segment[10] - The company is focusing on enhancing the quality and service of its broadband offerings to maintain competitive advantages[11] - The company plans to accelerate 4G development to drive mobile business growth and enhance broadband product value through high-quality applications[13] - The company is actively pursuing mixed-ownership reform as part of national policy initiatives, with ongoing discussions on implementation plans[20]

Financial Performance - For the first three quarters of 2016, the net profit attributable to the parent company is expected to be approximately 490 million RMB, a decrease of about 81.8% compared to the same period last year[1]. - In the same period last year, the net profit attributable to the parent company was 2.69 billion RMB[2]. - The decline in net profit is primarily due to a significant increase in sales expenses, tower usage fees, and rising costs related to energy and property rent[4]. - Compared to the net loss of approximately 1.14 billion RMB in the second half of last year (excluding tower sale gains), there has been significant improvement[4]. - The above forecast data is preliminary and subject to the official third-quarter report for accuracy[5]. - Investors are advised to be cautious regarding investment risks based on the preliminary data provided[5]. User Growth - The number of mobile billing users is expected to reach approximately 262 million, with a net increase of about 9.76 million users[4]. - The number of 4G users is expected to reach approximately 88.9 million, with a net increase of about 44.75 million users during the period[4]. - In September alone, the net increase of 4G users reached approximately 6.05 million[4]. Strategic Focus - The company aims to focus on strategic implementation and innovative cooperative development to gradually reverse performance trends[4].

Dividend Policy - The board of directors decided not to distribute an interim dividend for the year, considering the company's profitability, debt levels, and future funding needs[2] - The board decided not to distribute an interim dividend for the year, pending a review of the full-year performance[28] - The company will not distribute interim dividends for the current year, with plans to propose an annual dividend based on full-year performance[74] Financial Reporting and Governance - The company guarantees the accuracy and completeness of the semi-annual report, with all directors present at the board meeting[4] - The semi-annual report has not been audited, ensuring transparency in financial reporting[4] - The company emphasizes the importance of investment risk awareness regarding forward-looking statements in the report[3] - The report includes a comprehensive overview of the company's financial data and key performance indicators[5] - The company’s financial statements were approved by the board of directors on August 17, 2016, indicating ongoing governance and oversight[145] Financial Performance - For the first half of 2016, the company's operating revenue reached RMB 140.25 billion, a decrease of 3.1% compared to the same period last year[19] - The net profit attributable to shareholders was RMB 446.51 million, down 80.6% year-on-year[19] - The EBITDA for the first half of 2016 was RMB 41.43 billion, a decline of 18.1% year-on-year, with an EBITDA margin of 34.0%[26] - The company reported a net cash flow from operating activities of RMB 44.06 billion, an increase of 9.1% compared to the previous year[19] - The company’s net profit for the first half of 2016 was RMB 1.35 billion, a decline of 80.5% year-on-year[42] - The total comprehensive income for the first half of 2016 was RMB 753.13 million, significantly lower than RMB 6.89 billion in the same period of 2015[133] - The net profit attributable to shareholders of the parent company for the first half of 2016 was RMB 446.51 million, down 80.6% from RMB 2.30 billion in the first half of 2015[133] Revenue and Subscriber Metrics - The mobile service revenue was RMB 73.04 billion, with a decline of only 0.6%, showing improvement from a 9.3% decline last year[29] - The total number of mobile subscribers increased by 8.39 million, reaching 260.70 million[29] - The number of 4G subscribers grew by 28.26 million, totaling 72.42 million, with 4G users now accounting for 27.8% of total mobile subscribers[29] - Fixed-line service revenue increased by 4.4% year-on-year, reaching RMB 48.23 billion[30] - Non-voice business revenue accounted for 73.1% of main business revenue, up from 68.3% in the same period last year[38] - The mobile internet traffic grew by 102.1% year-on-year, with 4G users averaging 1,246MB of data traffic per month[32] Capital Expenditure and Cash Flow - The company’s capital expenditure decreased by 39.3% to RMB 18.10 billion, contributing to a significant increase in free cash flow to RMB 25.95 billion[28] - Free cash flow significantly improved to RMB 25.95 billion, supported by a 39.3% decrease in capital expenditures to RMB 18.1 billion[53] - Capital expenditure for the first half of 2016 was RMB 18.1 billion[43] Debt and Financial Ratios - The company’s asset-liability ratio decreased from 62.0% at the end of the previous year to 61.5%[44] - The total liabilities decreased by 3.5% from the previous year, indicating effective debt management[129] - The current ratio increased to 21.59%, up by 1.97 percentage points compared to the previous year, primarily due to a decrease in accounts payable[118] - The company maintained a loan repayment rate of 100% during the reporting period, with no instances of loan extension or reduction[122] Shareholder Structure and Equity - The total number of shareholders reached 654,537 by the end of the reporting period[94] - The largest shareholder, China United Network Communications Group, holds 13,298,349,411 shares, representing 62.74% of the total shares[96] - The company’s controlling shareholder, China Unicom Group, committed to not reducing its shareholding and plans to increase its stake in the company by at least RMB 300 million within six months from July 28, 2015[84] - The report indicates no changes in the controlling shareholder or actual controller during the reporting period[100] Asset Management and Investments - The company completed the sale of certain towers and related assets to China Tower Corporation for a total consideration of RMB 546.58 billion, with RMB 213.22 billion paid in cash[79] - The company recognized a gain from the sale of tower assets amounting to RMB 546.58 billion, with RMB 213.22 billion received in cash and the remainder in shares of the tower company[143] - As of June 30, 2016, the company held 28.1% of the equity in the tower company, which was established as part of the asset sale transaction[144] Financial Instruments and Liabilities - The company’s financial liabilities are primarily classified as other financial liabilities, including payables, borrowings, and bonds payable[164] - Financial liabilities are measured at fair value less transaction costs upon initial recognition and subsequently measured at amortized cost using the effective interest method[165] - The company has established a provision for bad debts based on the aging of receivables, with a 10% provision for receivables aged 6-12 months and a 100% provision for those over 3 years[170] Revenue Recognition - The company recognizes revenue from telecommunication services and product sales based on the fair value of contracts or agreements, net of sales discounts and returns[199] - Revenue from voice and monthly rental fees is recognized when services are provided, while broadband and internet-related service revenues are also recognized upon service delivery[199] - The company defers installation fees for fixed-line users and recognizes them over the expected customer service period[199]

Financial Performance - The net profit attributable to shareholders for the first half of 2016 is expected to decline by approximately 80% compared to the same period last year[1] - The net profit for the same period last year was 2.3 billion RMB[2] - Increased sales expenses, tower usage fees, and higher costs for energy and property rentals are the main reasons for the expected profit decline[4] - The company has shown significant improvement compared to a net loss of approximately 1.14 billion RMB in the second half of last year, excluding tower sale gains[4] Subscriber Growth - The company added 8.39 million mobile subscribers during the first half of 2016, reversing the previous decline in mobile users[3] Strategic Focus - The company plans to deepen its focus strategy and innovate cooperative development to gradually reverse its operating performance[4]