FAQs
The Company firmly seized the new opportunities in the industry and insisted on innovative transformation and in-depth mixed-ownership reform. It deepened network “co-build co-share” and led the improvement of quality and efficiency of its full services with 5G. It accelerated comprehensive digital transformation, taking full advantage of its nationwide-centralised digital operation. It actively developed proprietary innovation platform capabilities and key products to enhance competitiveness and value. The Company’s overall businesses achieved high-quality and stable development. In the first three quarters of 2021, the Company’s total revenue amounted to RMB 244.489 billion, up by 8.5% year-on-year. Service revenue amounted to RMB 222.384 billion, up by 7.3% year-on-year. The Company’s EBITDA amounted to RMB 75.337 billion, up by 2.2% year-on-year. EBITDA as a percentage of service revenue was 33.9%. The profit attributable to the equity shareholders of the Company amounted to RMB 12.923 billion, up by 19.4% year-on-year.
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. In consumer market, by aggregating various data traffic platforms, the Company launched the industry-leading innovative China Unicom APP. By utilising Big Data analytics models to power up total lifecycle management of customers, the Company continued to drive precise upgrade of existing customers and unlock 5G customers' value through coordinated development of terminals, network and business. In the government and enterprise market, the Company actively pushed forward the integrated and innovative development of 5G+ industry vertical applications and fully promoted the scale development of 5G applications. In the first three quarters of 2021, mobile billing subscribers registered a net addition of 9.74 million, reaching a total of 316 million. 5G package subscribers increased by 66.12 million to 137 million, effectively driving mobile billing subscriber ARPU to increase by 6.3% year-on-year to RMB 44.3. Mobile service revenue amounted to RMB 123.324 billion, up by 5.8% year-on-year.
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 the government, enterprises and household customers, pushing forward the pan-integration development of innovative and fundamental businesses. The Company continued to strengthen the core capabilities of Smart Community and Smart WoHome platforms, and promoted the Digital Village service cloud platform, continuously reinforcing the differentiated edges of broadband business. In the first three quarters of 2021, fixed-line broadband subscribers registered a net addition of 6.90 million, reaching a total of 93.00 million. Fixed-line broadband access revenue amounted to RMB 33.341 billion, up by 3.9% year-on-year.
Led by digital innovation, the Company deepened 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 three quarters of 2021, revenue from industry Internet business amounted to RMB 40.925 billion, up by 25.3% year-on-year.
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 three quarters of 2021, the Company continued to cooperate closely with China Telecom to add 220,000 5G base stations in service, with the total scale of 5G base stations of 600,000, achieving a leading position in both coverage and network perception in first-tier cities. Network “co-build and co-share” enabled the two operators combined to generate substantial savings in capital expenditure as well as 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 was terminated on 18 October 2021. Holders of ADSs had 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, had commenced the sale of ordinary shares of the Company represented by the remaining ADSs after the Termination Date, and would 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:

Address:  
Shareholder Services, P.O. Box 505000, Louisville, KY 40233–5000
Tel:  
1-888-269-2377 (toll free in USA)
   
1-201-680-6825 (international)
Last updated: 22 October 2021