CHINA UNICOM(HK:00762)2023-03-08 08:30Financial Data and Key Metrics Changes - Operating revenue reached ¥354.9 billion, an increase of 8.3% year-on-year, marking the highest growth rate since September [7] - Total profit was ¥20.6 billion, with a net profit of ¥16.7 billion, reflecting a year-on-year growth of 16.5% [8] - EBITDA reached ¥99.2 billion, a new high since the company went public [8] - Capital expenditure for the year was ¥74.2 billion, with a declining percentage of capital expenditure relative to revenue [10] Business Line Data and Key Metrics Changes - The proportion of Industrial Internet and service revenue exceeded 20% for the first time, with digital business revenue reaching a record high [8] - Revenue from the Internet of Things increased by 42%, with 860 million users for large-scale connectivity [17] - Unicom Cloud revenue reached ¥36.1 billion, up 121% year-on-year [18] - Big Data revenue grew by 58%, achieving more than 50% market share in the industry [20] Market Data and Key Metrics Changes - The company has built a total of 1.17 million 5G base stations, accounting for about 30% of the world's total [11] - The penetration rate of gigabit broadband users reached 15%, with over 100 million broadband users [17] - Coverage of Unicom Cloud increased by 300% to 170 cities [12] Company Strategy and Development Direction - The company is transforming from a traditional pipeline operator to a digital technology leader, focusing on five major business areas: big connection, big computing, big data, big application, and big security [9] - The strategy emphasizes the integration of digital technologies with the real economy, enhancing service capabilities for digital government and society [9][15] - The company aims to strengthen its digital infrastructure and improve network quality, with a focus on 5G and broadband networks [10][11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of adapting to the digital economy and the opportunities presented by modernization and digital revolution [15] - The company plans to increase capital expenditure to ¥76.9 billion in 2023, with a focus on computing networks and innovation-driven capacity [33] - The company is committed to enhancing its core competitiveness and maintaining sustainable growth while sharing dividends with shareholders [31][32] Other Important Information - The company has achieved significant milestones in technological innovation, with R&D spending increasing by 43% and a 50% increase in patents granted [26] - The company has established strategic collaborations with 27 provinces and 109 major enterprises, enhancing its service capabilities [28] - A final dividend of RMB0.109 per share was recommended, reflecting a 26.9% increase in total dividends for the year [32] Q&A Session Summary Question: What are the future growth prospects for China Unicom? - Management expressed confidence in the company's ability to adapt to the digital economy and emphasized the importance of innovation and transformation in driving future growth [15][33] Question: How does the company plan to enhance its competitive edge? - The company plans to increase investment in technology and strengthen its digital infrastructure to better serve the evolving needs of the market [33] Question: What are the key areas of focus for the company moving forward? - Key areas include enhancing service capabilities, expanding digital transformation efforts, and improving customer satisfaction through innovative solutions [34]