China Unicom(SH:600050)2015-03-03 16:00Dividend and Profit Distribution - The board proposed a cash dividend of RMB 0.20 per share for the fiscal year 2014, pending approval at the shareholders' meeting[5]. - The estimated cash dividend receivable by the company is approximately RMB 15.97 billion, with a distributable profit of about RMB 14.29 billion after expenses and statutory reserves[5]. - The total share capital of the company as of December 31, 2014, was 21.197 billion shares, resulting in a cash dividend of RMB 0.673 per 10 shares (including tax)[5]. - The company plans to distribute dividends in cash after deducting daily expenses and taxes[5]. - The proposal for profit distribution is subject to approval at the company's shareholders' meeting[6]. - The company distributed a cash dividend of 0.534 CNY per 10 shares for the fiscal year 2013, totaling approximately 1.132 billion CNY (including tax) based on a total share capital of 21.197 billion shares[108]. - In 2014, the company plans to maintain its cash dividend policy, continuing to distribute dividends based on its earnings and financial health[108]. Financial Performance - The company's operating revenue for 2014 was CNY 288.57 billion, a decrease of 5.0% compared to CNY 303.73 billion in 2013[37]. - Net profit attributable to shareholders for 2014 was CNY 3.98 billion, an increase of 15.7% from CNY 3.44 billion in 2013[37]. - The net cash flow from operating activities for 2014 was CNY 92.43 billion, reflecting a 10.9% increase from CNY 83.37 billion in 2013[37]. - The total assets at the end of 2014 were CNY 547.12 billion, a 3.0% increase from CNY 531.36 billion at the end of 2013[37]. - The company reported a basic earnings per share of CNY 0.1878 for 2014, up 15.7% from CNY 0.1624 in 2013[38]. - The weighted average return on equity increased to 5.20% in 2014, up from 4.68% in 2013[38]. - The company's total operating revenue for 2014 reached RMB 248.4 billion, a year-on-year increase of 0.9%, exceeding the industry average growth rate by 2.2 percentage points[46]. - EBITDA for the year was RMB 93.05 billion, representing a year-on-year growth of 10.5%, with an EBITDA margin of 37.5%, up 3.3 percentage points from the previous year[46]. - Net profit increased by 16.3% year-on-year, reaching RMB 11.97 billion, while operating cash flow grew by 10.9%[46]. - The company's total cost and expenses decreased by 4.9% to CNY 264.29 billion, while adjusted costs rose by 1.4% to CNY 225.53 billion[59]. Business Operations and Strategy - China Unicom's main business has remained unchanged since its listing in 2002, focusing on comprehensive telecommunications services in China[24]. - The company expanded its mobile communication services to 8 provinces and municipalities after acquiring Unicom New Century in December 2002[24]. - The merger with China Netcom in 2008 added fixed-line communication services to the company's portfolio[27]. - The company began 3G network construction in 2009 after obtaining a WCDMA operating license, officially launching services in October 2009[27]. - The company aims to enhance its market share and optimize its revenue structure through a strategy focused on "leading mobile broadband and integrated innovation"[45]. - The company plans to deepen the implementation of its "mobile broadband leadership and integrated innovation" strategy, focusing on enhancing its broadband network advantages and accelerating the transformation towards information consumption[71]. - The company is focusing on innovation in IDC, cloud computing, and IoT, adding 20.02 million users in key industry applications, totaling 59.29 million[48]. - The company is exploring partnerships with international tech firms to leverage advanced technologies in telecommunications[153]. Market and Competitive Environment - The company has identified risks related to regulatory changes, market competition, technology upgrades, and fluctuations in interest and exchange rates[13]. - The company is facing intensified competition in the telecom industry, with a shift from quantity-based to quality-based operations due to market saturation[106]. - The company aims to adapt to the new competitive landscape of the 4G era by fully implementing its "mobile broadband leading and integrated innovation" strategy[103]. - The company is committed to optimizing its structure and resource allocation to achieve sustainable revenue growth amidst regulatory changes and market challenges[106]. Management and Governance - The company has a strong management team with extensive experience in the telecommunications industry, including positions held in major telecom organizations[149]. - The chairman, Chang Xiaobing, has been with the company since December 2004 and has held various significant roles in the telecom sector[149]. - The management team includes professionals with advanced degrees from prestigious institutions, contributing to the company's strategic direction[151]. - The company has maintained a stable board of directors with no changes in shareholding or remuneration during the reporting period[148]. - The company emphasizes good investor relations, with dedicated personnel for communication and regular performance briefings after financial reports[178]. - The company has established a rigorous internal control and risk management system in compliance with relevant laws and regulations[171]. Internal Control and Risk Management - The company has established a comprehensive internal control and risk management organization, involving all subsidiaries and departments[196]. - The internal control system is designed to provide reasonable assurance regarding the legality of operations, asset security, and the accuracy of financial reporting[195]. - The company has committed to ensuring the accuracy and completeness of its internal control evaluation reports, holding management accountable for any discrepancies[195]. - The company organized internal control self-testing to verify the effectiveness of internal control norms and identify risk factors affecting business development[200]. - The company conducted localized training and guidance for provincial branches to ensure compliance with internal control measures[200]. Shareholder Engagement - The company held three shareholder meetings during the reporting period, ensuring equal rights for all shareholders, especially minority shareholders[172]. - The board of directors convened seven meetings to discuss significant matters, including the 2013 annual report and the establishment of China Tower Corporation[173]. - The company held its 2013 annual general meeting on April 16, 2014, with 26 attendees representing 13,864,601,235 shares, accounting for 65.41% of the total share capital[181]. - The first extraordinary general meeting of 2014 was held on November 6, with 81 attendees representing 14,118,104,702 shares, accounting for 66.61% of the total share capital[183].