CHINA UNICOM(00762)2022-04-13 08:33Financial Performance - China Unicom reported a total revenue of approximately RMB 300 billion in 2021, representing a year-on-year increase of 5%[18]. - The company achieved a net profit of RMB 20 billion in 2021, which is a 10% increase compared to 2020[18]. - The company's operating revenue reached RMB 327.85 billion, a year-on-year increase of 7.9%[19]. - Service revenue amounted to RMB 296.15 billion, growing by 7.4% compared to the previous year[19]. - EBITDA was RMB 196.32 billion, reflecting a 2.3% increase year-on-year, with a margin of 32.5% on service revenue[19]. - Net profit attributable to equity holders was RMB 21.44 billion, representing a 15.0% increase from the previous year[19]. - Free cash flow totaled RMB 41.68 billion, up 9.9% year-on-year[19]. - The company declared a total annual dividend of RMB 0.216 per share, an increase of 31.7% compared to the previous year[19]. - The company's service revenue for 2021 was RMB 296.15 billion, a year-on-year increase of 7.4%[54]. - The net profit for 2021 was RMB 14.37 billion, an increase of RMB 1.88 billion year-on-year, with basic earnings per share of RMB 0.470, up 15.0%[63]. Subscriber Growth - The number of mobile subscribers reached 320 million, with a net addition of 10 million users in 2021, reflecting a growth rate of 3.2%[18]. - In 2021, mobile service revenue reached RMB 164.1 billion, a year-on-year increase of 4.8%, with a net increase of 11.3 million mobile subscribers, significantly better than the net decrease of 12.66 million in 2020[31]. - The total number of broadband users increased by 8.95 million, reaching 95.05 million, with an ARPU of RMB 41.3[44]. - The number of 5G package users reached 155 million, with a penetration rate of 48.9%, surpassing the industry average[31]. - The Internet of Things (IoT) connections exceeded 300 million, with IoT revenue reaching RMB 6 billion, a year-on-year increase of 43%[45]. Investment and Infrastructure - The company plans to invest RMB 50 billion in 5G infrastructure in 2022 to enhance network capabilities and expand coverage[18]. - Capital expenditure for the year was RMB 69 billion, below the annual guidance of RMB 70 billion, indicating improved investment efficiency[30]. - The company has opened 310,000 new 5G base stations, bringing the total to 690,000, creating the world's largest 5G co-built and shared network[36]. - The collaboration with China Telecom has resulted in a shared 4G base station count of 660,000, further enhancing network capabilities[36]. Research and Development - The company is focusing on developing new technologies in AI and big data, with an investment of RMB 5 billion allocated for research and development in these areas[18]. - The company's R&D expenses increased by 61.7% year-on-year, with the proportion of innovative personnel reaching 22% and the number of authorized patents increasing by 120% to 1,128[34]. - The company launched the "Unicom Smart Brain," achieving 100% integration of core business systems and serving over 400 million users through big data and AI for personalized services[35]. Digital Transformation and Innovation - The company is focusing on digital infrastructure and innovation, positioning itself as a leader in the digital economy[29]. - The company aims to enhance its strategic cooperation with national ministries, local governments, and enterprises to support the digital transformation of the economy and society[37]. - The company is committed to enhancing data security capabilities, including data encryption and supply chain security[108]. - The company is focused on digital transformation and has implemented over 8,000 industry application projects[46]. Corporate Governance - The company has been recognized as the 260th in the 2021 Fortune Global 500 and ranked 276th in the 2021 Forbes Global 2000[38]. - The company confirmed compliance with all corporate governance code provisions for the year ending December 31, 2021[81]. - The board consists of nine members, including five executive directors and four independent non-executive directors, promoting diversity in expertise and gender[82]. - The company emphasizes the importance of risk management and internal controls, ensuring effective governance practices[80]. Sustainability and Social Responsibility - The company is committed to advancing green and low-carbon development, aligning with the "dual carbon" goals[40]. - The company has a commitment to sustainable development, viewing board diversity as a key element in achieving strategic goals[82]. - The company actively participates in international standard organizations and focuses on the research and testing of new technologies and businesses, promoting the large-scale development of 5G applications[107]. - The group made charitable donations totaling approximately RMB 2.082 million during the year ended December 31, 2021[168]. Market Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025[74]. - The company aims to improve customer satisfaction scores by 15% through enhanced service delivery and support[73]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market position[18]. Risk Management - The company has established a comprehensive risk management and internal control system covering the entire group, consisting of the board of directors, risk management committee, and various professional management departments[103]. - Major risks identified in 2021 include market competition, regulatory policy risks, and business transformation challenges, with strategies in place to address these risks[106]. - The company emphasizes the importance of cybersecurity, adhering strictly to national laws and regulations to enhance information security governance[106].