China Unicom(SH:600050)2021-03-11 16:00Dividend and Profit Distribution - The board of directors proposed a cash dividend of 0.164 CNY per share for the fiscal year 2020, subject to approval at the shareholders' meeting, with a total expected distribution of approximately 2.686 billion CNY[4]. - The company expects to distribute approximately 2.041 billion CNY (including tax) to shareholders, after deducting daily expenses and statutory reserves[4]. - The company reported a profit distribution plan that includes a total distributable profit of approximately 2.045 billion CNY after accounting for expenses and reserves[4]. - In 2020, the company reported a net profit attributable to shareholders of CNY 5.52 billion, with a dividend payout ratio of 36.96%[109]. Financial Performance - The company's operating revenue for 2020 was CNY 303.84 billion, an increase of 4.6% compared to 2019[19]. - The main business revenue reached CNY 275.81 billion, reflecting a growth of 4.3% year-on-year[19]. - Net profit attributable to shareholders was CNY 5.52 billion, representing a 10.8% increase from the previous year[19]. - Cash flow generated from operating activities amounted to CNY 107.33 billion, up by 11.6% compared to 2019[19]. - The company's total operating income for Q4 2020 was CNY 78.48 billion, with a net profit attributable to shareholders of CNY 737.51 million[22]. - The company maintained strong free cash flow of RMB 39.7 billion, enhancing its financial strength and stability[31]. - The company reported a total revenue of CNY 300 billion for the year 2020, representing a year-on-year growth of 5%[167]. - The company reported a net profit of RMB 30 billion for 2020, marking a 10% increase compared to the previous year[177]. Risk Management and Compliance - The company faces risks including market competition, regulatory changes, technology upgrades, and foreign exchange fluctuations, which are detailed in the operational discussion section[7]. - The company has a comprehensive risk management framework in place to address potential challenges in the telecommunications industry[7]. - The company has confirmed that all board members attended the board meeting, ensuring governance compliance[3]. - The company has not violated decision-making procedures in providing guarantees to external parties[6]. - The company will continue to monitor regulatory changes in the telecommunications industry to adapt to new opportunities and challenges[104]. - The company has no major litigation or arbitration matters during the reporting period[117]. - The company has a good integrity status, with no significant debts that have not been settled[118]. Technological Development and Innovation - The company is focusing on expanding its Internet of Things (IoT) business, which connects various smart devices for communication[11]. - The company plans to continue investing in 5G technology and infrastructure to support future growth[19]. - The company aims to leverage technologies such as 5G, IoT, and big data for future product and service development[27]. - The company is actively participating in the development and application of 5G technology, aiming to enhance its competitive edge in the telecommunications market[105]. - The company has been focusing on technological upgrades and the promotion of new business initiatives to maintain its market position[105]. - The company aims to achieve a market share of 25% in the IoT sector by 2023, driven by strategic partnerships and technological advancements[167]. User and Market Expansion - By the end of 2020, the company had approximately 305.81 million mobile billing users and 86.10 million fixed broadband users[27]. - The number of 5G package users reached 70.83 million, with a penetration rate of 23%, exceeding the industry average of 20%[34]. - The company aims to expand its market presence by entering into strategic partnerships with technology firms, targeting a 15% increase in service offerings by 2022[177]. - The company has set a target to achieve a 20% increase in broadband subscribers by the end of 2021[178]. Governance and Management - The company has established several strategic cooperation centers and joint laboratories with major tech firms to explore applications of AI, edge computing, and network slicing in 5G[40]. - The company is undergoing a board and supervisory committee restructuring, with proposals submitted for shareholder approval[162]. - The company emphasizes talent development and has established a systematic training plan for management and professional personnel to enhance their capabilities[185]. - The company has a strong governance structure with board members holding multiple positions across different entities, enhancing its influence in the telecommunications sector[175]. - The company continues to emphasize the importance of compliance and governance in its operations[162]. Social Responsibility and Community Engagement - The company has developed a targeted poverty alleviation plan, ensuring effective implementation of assistance projects[124]. - Total funding for poverty alleviation efforts amounted to CNY 26,331.87 million, with additional material contributions of CNY 96.11 million[126]. - A total of 42,778 individuals were lifted out of poverty through various initiatives, including 19,945 through industrial development projects[128]. - The company received recognition as a "National Advanced Collective in Poverty Alleviation" from the Central Government on February 25, 2021[130]. Shareholder Structure and Equity - The total number of ordinary shares at the end of the reporting period was 9,837,109,292, with a significant portion being restricted shares[141]. - The top ten shareholders held a total of 36.8% of the shares, with China United Network Communications Group Co., Ltd. being the largest shareholder at 11,399,724,220 shares[144]. - The company has not disclosed any related party transactions involving its directors and senior management during the reporting period[157]. - The company has committed to not transferring shares for 36 months following the acquisition of shares, ensuring stability in its shareholder structure[111].