In the first half of 2021, backed by the determined innovative transformation and in-depth mixed-ownership reform, the Company’s revenue and profit growth accelerated, bringing significant enhancement in the quality and efficiency of business development. Operating revenue amounted to RMB164.2 billion, representing a year-on-year increase of 9.2%, while service revenue reached RMB148.7 billion, representing a year-on-year increase of 7.5% and an increase of 3.2 percentage points in growth rate as compared to the full year of 2020. Profit attributable to equity holders of the Company amounted to RMB9.17 billion, representing a year-on-year increase of 21.1% and an increase of 10.8 percentage points in growth rate as compared to the full year of 2020. EBITDA reached RMB49.5 billion. The Company maintained strong free cash flow, reaching RMB36.4 billion during the first half of the year, further consolidating the financial strength.
The Company attached great importance to shareholders’ return. With due regard to the Company’s robust business development and strong free cash flow, the Board resolved to distribute an inaugural interim dividend (RMB0.120 per share) in 2021 and planned to raise 2021 full year dividend pay-out ratio, with the magnitude to be decided in the first half of 2022 considering such factors as the Company’s profitability, cash flow, future capital requirements and dividend pay-out in the industry, etc.

The objective of the dividend policy of the Company is to achieve a long-term, sustainable and steadily increasing dividend, with a view to maximising the shareholders’ value. The declaration and payment of future dividends will depend upon, among other things, financial condition, business prospects, future earnings, cash flow, liquidity level and cost of capital. The Company believes such policy will provide the shareholders with a stable return in the long term along with the growth of the Company. Pursuant to the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) and the Company’s articles of association, the Company may only pay dividends out of profits available for distribution.
The Company continued to deepen its 5G-led strategy and firmly adhered to rational and orderly competition, effectively balancing value-oriented operation and scale development, enhancing both market share and value contribution of mobile subscribers, thus promoting high-quality and coordinated industry development. In the first half of 2021, mobile service revenue reached RMB82.1 billion, representing a year-on-year increase of 7.3%, with the growth rate reaching a new high since the full year of 2018. Mobile billing subscribers significantly improved to a net increase of 4.65 million from a decline of 8.95 million for the same period last year, making the total number of mobile billing subscriber increase to 310 million. Subscriber value continued to optimise, with mobile billing subscribers ARPU reaching RMB44.4, representing a year-on-year increase of 8.5%. The Company’s 5G package subscribers reached 113 million and the penetration rate of 5G package subscribers reached 36.5%, leading the industry.
In consumer market, aggregating various data traffic platforms, the Company launched the industry-leading innovative China Unicom APP, with monthly active users exceeding 100 million, forming a new smart living ecology integrating communication, lifestyle, entertainment and finance. Utilising the Big Data analytics model to power up total lifecycle management of customers, the Company managed to drive precise upgrade of existing customers. By bringing the ecological resources of “platform + network + X” together, the Company unlocked 5G customers’ value through coordinated development of terminal, network and business, while enriching 5G innovative applications.

In the government and enterprise market, the Company actively explored business models to flexibly meet the demand of 5G industry customers. In the key areas including industrial Internet, smart mining, smart medical, smart cities, etc., it successfully commercialised a range of influential 5G lighthouse projects such as the first in global fully 5G-connected factory and the global first underneath-mine-5G private network.
The Company grasped the boosted demand for digitisation, cyberisation, and intelligent transformation of the economy and society, and actively leveraged proprietary resources and edges to empower government and enterprise, as well as household customers, pushing forward the pan-integration development of innovative and fundamental businesses. In the first half of 2021, the Company’s fixed-line broadband access revenue increased by 0.7% year-on-year to RMB22.0 billion. The net addition of fixed-line broadband subscribers was up by 67.8% year-on-year to 4.03 million, reaching a total of 90.12 million fixed-line broadband subscribers, with broadband access ARPU reaching RMB41.8. The penetration rate of the integrated service among fixed-line broadband subscribers reached 67%, representing a year-on-year increase of 6 percentage points.
Led by digital innovation, the Company actively explored market space in key areas such as smart cities, digital government and industrial Internet, thoroughly deepening the development of application products for major industries. Unicom Digital Technology Co., Ltd. was formed to create integrated innovation and differentiated edges of 5G + ABCDE (artificial intelligence, blockchain, cloud computing, Big Data, edge computing). The Company built an innovative business capability system, focusing on the platform-based capability, research and development centralisation, product standardisation and delivery of proprietary integration. By enhancing proprietary capabilities, the Company created unique innovative edges in the digital economy era.

In the first half of 2021, the Company’s revenue from industry Internet business increased by 23.6% year-on-year to RMB28.03 billion, as a percentage of the overall service revenue increased by 2.5 percentage points year-on-year to 18.9%.
China Unicom Cloud is the base for digital transformation and integrated innovation. Focusing on security and reliability, cloud-network integration, dedicated customisation and multi-cloud collaboration, the Company provided customers with integrated innovative solutions including cloud resources, cloud platform, cloud service, cloud integration, cloud interconnection, cloud security, etc. In the first half of 2021, China Unicom Cloud revenue was RMB7.69 billion, up by 54.1% year-on-year.
In the first half of 2021, the Company continued to cooperate closely with China Telecom to add 80,000 5G base stations in service, with the total scale of 5G base stations of more than 460,000, achieving a leading position in both coverage and network perception in first-tier cities. The scale of 4G “co-share” achieved a further breakthrough as both parties shared 460,000 4G base stations, representing an increase of 240,000 stations as compared to the end of last year. 4G/5G network “co-build and co-share” enabled the two operators combined to generate cumulative savings of over RMB100 billion in capital expenditure, as well as substantial savings in network costs including tower usage fee, network maintenance costs and electricity charges for both parties. In addition, the Company actively expanded the new network sharing model and engaged in multi-dimensional “co-build and co-share” cooperation with cable, power, high-speed railway, petro industries and others to maximise investment efficiency.
With customer perception as the centre, the Company focused on key city clusters, such as Beijing-Tianjin-Hebei, Yangtze River Delta and Greater Bay Area, key cities and major venues and strived to build a high-quality network and improved the supporting capabilities of network services. The Company focused on the deployment of premium 5G, gigabit fibre network and innovative business investment, such as IDC, cloud computing, Big Data and IoT and others, while continuing to enhance the coverage of commercial buildings and government and enterprise premium networks. In the first half of 2021, the capital expenditure amounted to RMB14.3 billion. Investment and operation efficiency were greatly improved while network competitiveness was ensured. The Company ranked first in 5G network quality satisfaction in the industry and equipped the city areas across nationwide with gigabit broadband capability, achieving remarkable results in the high-quality development of the network.

Full-year CAPEX for 2021 is expected to be approximately RMB70.0 billion, of which 5G CAPEX is about RMB35.0 billion.
Pursuant to the former U.S. President's executive order and the requirements of the New York Stock Exchange LLC (the "NYSE"), the delisting of the Company's American Depositary Shares ("ADSs") took effect on 18 May 2021, and the ADSs Program will terminate on 18 October 2021. Holders of ADSs will have the right until the termination date to exchange their ADSs into ordinary shares of the Company in accordance with the terms and conditions of the deposit agreement. The Company's ordinary shares are traded on The Stock Exchange of Hong Kong Limited.

The Bank of New York Mellon, as the depository for the Company’s ADSs, expects to commence the sale of ordinary shares of the Company represented by the remaining ADSs as soon as practicable after the Termination Date, and will pay the net cash proceeds, after deducting applicable fees and expenses, to the holders of such remaining ADSs.

The contact details of the Bank of New York Mellon are as follows:

Shareholder Services, P.O. Box 505000, Louisville, KY 40233–5000
1-888-269-2377 (toll free in USA)
1-201-680-6825 (international)
Last updated: 06 September 2021