China Unicom(SH:600050)2016-10-21 16:00Financial 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]