China Unicom(SH:600050)2019-10-21 16:00Financial Performance - Net profit attributable to shareholders increased by 24.38% year-on-year, amounting to CNY 4.32 billion[6]. - Operating revenue for the first nine months was CNY 217.12 billion, a decrease of 1.18% compared to the same period last year[6]. - Basic earnings per share increased by 21.93% to CNY 0.139 per share[6]. - The company's mobile service revenue decreased by 6.1% year-on-year to RMB 117.73 billion, with an ARPU of RMB 40.6[14]. - Total operating revenue for Q3 2019 reached ¥72.17 billion, a 2.2% increase from ¥70.61 billion in Q3 2018[29]. - Net profit for the first three quarters of 2019 was ¥12.23 billion, compared to ¥10.55 billion in the same period of 2018, indicating a growth of 15.9%[30]. - The net profit attributable to shareholders for the first nine months of 2019 was CNY 4,316,105,308, compared to CNY 3,470,031,077 in the same period of 2018, representing an increase of approximately 24.3%[31]. - Total comprehensive income for Q3 2019 was CNY 2,868,320,498, compared to CNY 2,081,330,949 in Q3 2018, indicating an increase of about 37.8%[32]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 570.57 billion, an increase of 5.32% compared to the end of the previous year[6]. - The total assets of the company as of September 30, 2019, amounted to ¥570.57 billion, an increase from ¥541.76 billion at the end of 2018[25]. - The company's total liabilities increased to ¥248.08 billion in Q3 2019 from ¥224.82 billion in Q3 2018, marking an increase of 10.3%[25]. - The total liabilities decreased from ¥222,626,093,650 in 2018 to ¥213,715,729,302 in 2019, indicating a reduction in financial obligations[41]. - The company's total assets were CNY 541.76 billion, down from CNY 577.17 billion, indicating a reduction of CNY 35.41 billion[42]. Cash Flow - The net cash flow from operating activities for the first nine months was CNY 76.77 billion, down 7.65% year-on-year[6]. - Operating cash flow for the first nine months of 2019 was CNY 76,770,788,925, down from CNY 83,131,814,206 in the same period of 2018, a decrease of about 7.5%[35]. - The cash inflow from other operating activities was ¥96,607,192 in 2019, significantly higher than ¥39,143,028 in 2018, indicating improved operational efficiency[37]. - The cash outflow for debt repayment in 2019 was ¥52,285,955,297, compared to ¥87,274,269,350 in 2018, showing a decrease in debt servicing costs[36]. Shareholder Information - The total number of shareholders at the end of the reporting period was 650,727[9]. - The largest shareholder, China United Network Communications Group Co., Ltd., holds 36.7% of the shares[9]. - Total equity attributable to shareholders reached CNY 140.14 billion, reflecting a decrease of CNY 471.94 million[42]. Operational Highlights - The company is focusing on innovation and internet transformation to counter market challenges, with a 40.8% increase in industrial internet business revenue to RMB 24.29 billion[14]. - The company aims to enhance its marketing capabilities and innovate in cloud computing, big data, and IoT to drive growth in its innovative business sectors[14]. - The company signed a cooperation agreement with China Telecom to jointly build a 5G access network, which is expected to lower future 5G construction and operation costs[16][18]. - The company plans to deepen internet-based operations and enhance customer perception and operational efficiency to stabilize core business and promote innovative business growth[16]. Expenses and Cost Management - The company has implemented a new leasing standard, resulting in increased depreciation and amortization expenses, while controlling user development costs effectively[15]. - Financial expenses decreased by 486.0% year-on-year, attributed to a significant reduction in average interest-bearing debt due to strong free cash flow[16]. - Network operation and support costs fell by 4.5% year-on-year, primarily due to effective control of maintenance and electricity costs[16]. - Research and development expenses for Q3 2019 were ¥184.15 million, up from ¥127.66 million in Q3 2018, representing a 44.2% increase[30].