Core Insights - The 2025 Fourth China (International) Eyelash Industry Expo was inaugurated in Pingdu, attracting beauty industry elites and international merchants to discuss new development strategies for the industry [1] - A strategic cooperation agreement was signed between Qingdao Unicom Pingdu Branch and Qingdao Shangzhen Industrial Park Management Co., enhancing services and supporting cross-border e-commerce for enterprises in the park [3] Industry Development - The eyelash industry in Pingdu has achieved mechanization, clustering, and branding through innovation, association leadership, park empowerment, and exhibition promotion, transitioning from a "kang head economy" to an industrial cluster [5] - Pingdu has cultivated over 5,000 eyelash market entities, producing more than 3,000 different styles of eyelash products, creating over 60,000 jobs, and generating an annual output value of over 10 billion yuan, with a global market share of 70% [5] Technological Integration - The strategic cooperation aims to create a "technology + scenario" smart service ecosystem for enterprises, providing seamless 5G coverage and dedicated live streaming networks to enhance e-commerce marketing [8] - Digital services such as one-click utility payments and AI perimeter monitoring will reduce administrative costs and enhance security for enterprises, facilitating their focus on product innovation [8] International Expansion - The collaboration will help Pingdu's eyelash industry expand internationally, allowing more foreign consumers to experience the charm of Chinese manufacturing [10] - Qingdao Unicom will provide a comprehensive communication solution for enterprises in the industrial park, integrating smart park construction, international business, and cloud data services to support cross-border e-commerce [10] Strategic Partnerships - The Qingdao Beauty Online New Economy Industrial Park was selected as a platform economic industrial cluster in Shandong for 2024, marking it as the only selected cluster in Qingdao [12] - A cooperation agreement was signed with the Shandong Digital Industry Development Research Institute to inject strong digital capabilities into the eyelash industry's transformation [12] Economic Impact - The integration of resources and advantages through strategic partnerships will enhance the quality and efficiency of the characteristic industrial cluster, accelerating the development of Shandong's digital economy [13]

Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company achieved a double-digit growth in net profit, with a total revenue of 389.59 billion yuan in 2024, representing a year-on-year increase of 4.6%. The net profit attributable to shareholders reached 9.03 billion yuan, up 10.5% year-on-year [1][6] - The company's focus on integrated communication and intelligent network services is expected to drive high-quality development and new breakthroughs in the future [6] Summary by Sections Financial Performance - In 2024, the company reported total revenue of 389.59 billion yuan, with service revenue of 345.98 billion yuan, marking a 3.2% increase year-on-year. The total profit reached 25.09 billion yuan, and the net profit attributable to shareholders was 9.03 billion yuan, reflecting a 10.5% growth [1][11] - The weighted average return on equity increased to 5.5% [1] Business Segments - The revenue from integrated communication services grew by 1.5% year-on-year, accounting for 76% of service revenue. The user base reached 470 million, with a net increase of 19.52 million users. The IoT connections exceeded 620 million, with a net increase of 13 million [2] - The intelligent network services revenue increased by 9.6% year-on-year, contributing 24% to service revenue. Cloud revenue was 68.6 billion yuan, up 17.1%, while data center revenue reached 25.9 billion yuan, up 7.4% [2] Investment Strategy - The company adopted a precise and moderate investment strategy, with capital expenditure of 61.37 billion yuan in 2024, a decrease of 17% year-on-year. However, investment in computing power increased by 19% [4] - The mobile network coverage reached 99%, benefiting millions of users, and the number of mobile network base stations exceeded 4.5 million [4] Shareholder Returns - The company proposed a final dividend of 0.0621 yuan per share (before tax), with a total annual dividend of 0.1580 yuan per share, reflecting a year-on-year increase of 19.7% [5] - For 2025, the company anticipates a fixed asset investment of around 55 billion yuan, with a 28% increase in computing power investment [5] Profit Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is 9.87 billion yuan, 10.77 billion yuan, and 11.71 billion yuan, respectively, with a maintained "Accumulate" rating [6][11]

Core Viewpoint - China Unicom is embracing artificial intelligence (AI) as a transformative opportunity, expecting significant growth in revenue and profit in the coming years, particularly through increased investment in computing power [1][8]. Financial Performance - In 2024, China Unicom achieved operating revenue of 389.589 billion yuan, a year-on-year increase of 4.6% [3]. - The net profit attributable to shareholders was 9.029 billion yuan, reflecting a year-on-year growth of 10.5% [2][3]. - The company plans to distribute a total dividend of 0.1580 yuan per share for the year, a 19.7% increase compared to the previous year [4]. Business Segments - The revenue from connected communication services accounted for 76% of service revenue, up 1.5% year-on-year, while the smart network business contributed 24%, increasing by 9.6% [3]. - By the end of 2024, the user base reached 470 million for mobile and broadband services, with a net increase of 19.52 million users [3]. - The IoT connections exceeded 620 million, with a net increase of 130 million, and the vehicle networking connections reached 76 million, maintaining industry leadership [3]. Investment Strategy - In 2024, capital expenditure was 61.37 billion yuan, a decrease of 17% year-on-year, while computing power investment rose by 19% [6]. - The company plans to reduce capital expenditure further in 2025, with computing power investment expected to grow by 28% [1][6]. - China Unicom is also increasing R&D spending by 9.1% and has allocated special budgets for AI infrastructure and major projects [6]. AI Transformation - The company is focusing on upgrading its infrastructure to support AI, including enhancing IDC to AIDC and creating a collaborative computing resource layout [8]. - China Unicom aims to build high-quality data sets to support AI development and is actively engaging in the open-source ecosystem for large models [8]. - The company plans to promote intelligent applications to various industries, facilitating digital transformation [8]. Security Measures - China Unicom is developing an internal security system for AI, ensuring reliability and traceability across computing power, data, models, and application services [9].