China Unicom(SH:600050)2021-08-19 16:00Dividend Distribution - The company plans to distribute a cash dividend of RMB 0.120 per share, expecting to receive approximately RMB 1.61 billion from its subsidiary[3]. - After deducting daily expenses and statutory reserves, the distributable profit for shareholders is estimated to be around RMB 1.5 billion[3]. - The total cash dividend distribution is projected to be approximately RMB 1.49 billion, based on the proposed distribution of RMB 0.488 per 10 shares[3]. - The board of directors has approved the profit distribution plan, pending shareholder meeting approval[3]. - The company plans to initiate a mid-term dividend of RMB 0.0488 per share based on strong operational performance and cash flow[25]. - The company plans to maintain the total amount of profit distribution unchanged, adjusting the per-share dividend ratio if there are changes in the total share capital before the record date[75]. Financial Performance - The company's operating revenue for the first half of 2021 was CNY 164.17 billion, an increase of 9.2% compared to CNY 150.40 billion in the same period last year[17]. - Main business revenue reached CNY 148.67 billion, reflecting a growth of 7.5% from CNY 138.33 billion year-on-year[17]. - Total profit for the period was CNY 11.24 billion, up 15.9% from CNY 9.70 billion in the previous year[17]. - Net profit attributable to shareholders was CNY 4.03 billion, representing a 20.6% increase from CNY 3.34 billion year-on-year[17]. - The net cash flow from operating activities was CNY 51.42 billion, a rise of 5.7% compared to CNY 48.64 billion in the same period last year[17]. - The company's total assets at the end of the reporting period were CNY 572.43 billion, down 1.7% from CNY 582.48 billion at the end of the previous year[17]. - The net assets attributable to shareholders increased to CNY 148.51 billion, a slight increase of 0.5% from CNY 147.71 billion year-on-year[17]. - Basic earnings per share for the first half of 2021 were CNY 0.131, up 21.3% from CNY 0.108 in the same period last year[18]. - The weighted average return on net assets increased to 2.68%, up 0.42 percentage points from 2.26% year-on-year[18]. - The company reported a net profit after deducting non-recurring gains and losses of CNY 4.17 billion, which is a 17.9% increase from CNY 3.54 billion in the previous year[17]. Operational Highlights - The company is focused on expanding its business through partnerships and innovative marketing strategies[8]. - The company aims to enhance its innovation capabilities in key sectors such as smart cities and industrial internet, leveraging 5G technology[22]. - The company has completed over 70% of its state-owned enterprise reform tasks, focusing on market-oriented reforms[23]. - The company opened 461,000 5G base stations, achieving coverage in major urban areas and core districts[23]. - The company had 310.5 million mobile billing users and 90.1 million fixed broadband users by the end of June 2021[21]. - In the first half of 2021, the company's mobile main business revenue reached RMB 82.1 billion, a year-on-year increase of 7.3%, the highest growth since 2018[27]. - The number of mobile billing users improved significantly, with a net increase of 4.65 million users, reaching a total of 310 million[27]. - The mobile user ARPU reached RMB 44.4, an increase of 8.5% year-on-year, indicating continuous optimization of user value[27]. - The total mobile internet traffic grew by 27.5%, with the average monthly data traffic per mobile user reaching approximately 12.2GB[27]. - The number of 5G package users reached 113 million, with a penetration rate of 36.5%, leading the industry[27]. Financial Position - The company's total liabilities as of June 30, 2021, amounted to RMB 237.69 billion, a decrease from RMB 251.00 billion as of December 31, 2020, representing a reduction of approximately 5.3%[119]. - The company's total equity attributable to shareholders was RMB 148.51 billion as of June 30, 2021, compared to RMB 147.71 billion at the end of 2020, reflecting a slight increase of approximately 0.5%[119]. - The company's cash and cash equivalents decreased to RMB 28.36 billion as of June 30, 2021, from RMB 35.22 billion at the end of 2020[117]. - The company's asset-liability ratio stood at 41.5% at the end of the first half of 2021[38]. - The company reported a beginning balance of CNY 10,510,092,986 in loans from its controlling shareholder, with a slight decrease of CNY 322,153 during the reporting period[91]. - The company’s controlling shareholder has a maximum credit limit of CNY 2.8 billion for interbank lending, with an actual maximum of CNY 100,243,750[92]. Risks and Compliance - The report highlights various risks including market competition, regulatory policies, and technological upgrades[5]. - The company is closely monitoring regulatory policy changes in the telecommunications industry, which may present both opportunities and challenges[67]. - The company has not reported any non-operational fund occupation by controlling shareholders or related parties[5]. - The company maintains a good integrity status, with no significant lawsuits or regulatory penalties reported during the period[87]. - The company expressed disappointment over the delisting of its American depositary shares from the NYSE due to U.S. government regulations, effective May 18, 2021[70]. Governance and Management - The company held its first and second extraordinary general meetings in March 2021, approving the appointment of new directors and the re-election of the board and supervisory committee[71]. - The company convened its annual general meeting on May 11, 2021, where several key resolutions were passed, including the approval of the 2020 annual report and financial statements[72]. - The company appointed Chen Zhongyue as president and elected several new directors during the reporting period[73]. - The company experienced changes in its board and senior management, with several resignations due to job relocations[74]. - The company aims to enhance its governance structure and long-term incentive mechanisms to motivate core management and key employees[96]. Research and Development - Research and development expenses increased by 52.0% year-on-year, reaching RMB 1.02 billion, reflecting the company's commitment to enhancing innovation capabilities[58]. - The company has encouraged independent innovation in energy-saving management solutions for 4G/5G networks, aiming to achieve industry-leading levels domestically[80]. Environmental Initiatives - The company has established a "carbon peak and carbon neutrality" action plan for the 14th Five-Year Plan, focusing on green and low-carbon development[80]. - The company is promoting the construction of a green network, including the development of green low-carbon data centers and the optimization of old equipment[80]. - The company has implemented a digital energy management system to control carbon emissions and promote green operations[81]. - The company has been recognized as a "National Advanced Collective in Poverty Alleviation" by the central government for its efforts in poverty alleviation and rural revitalization[82].