China Unicom's net profit for the full year of 2018 was 10.197 billion yuan, a year-on-year increase of 457.82%.

Sina science and technology news March 13 afternoon news, China Unicom (00762.HK) just released 2018 financial report. China Unicom reported revenue of 290.877 billion yuan in 2018, up 5.84 percent from the same period last year, while the company's equity holders should account for 10.197 billion yuan, up 457.82 percent from the same period last year.

Overall performance

In 2018, the company's operating performance continued to improve significantly. The annual service revenue was RMB 263.7 billion, up 5.9% year-on-year, ahead of the industry average of 3.0%; EBITDA1 reached RMB 84.9 billion, up 4.3% year-on-year; pre-tax profit reached RMB 13.1 billion, the company's equity holdings The profit attributable to the company reached 10.197 billion yuan, a year-on-year increase of 457.82%.

The company insists on using precise investment and sharing cooperation to promote network efficiency. While ensuring network competitiveness, the full-year capital expenditure will continue to be effectively controlled at 44.9 billion yuan. Thanks to continued revenue growth and good spending control, the company's free cash flow hit an all-time high of 47.5 billion yuan. The ratio of assets to liabilities fell further to 41.8 percent from 46.8 percent a year earlier. The company's financial position was more robust and its capital strength continued to strengthen.

The company attaches great importance to shareholder returns. After taking into account earnings, debt and cash flow levels and future funding requirements, the board recommended a final dividend of 0.134 yuan per share. In the future, the company will continue to strive to improve profitability and shareholder returns.

business development

In 2018, in the face of 'speed increase and lower fees' and market competition pressure, the company actively promoted the innovative business of mobile business. With the reduction of channel commissions and mobile phone subsidies, the mobile business achieved efficient growth. The annual mobile service revenue reached RMB 165.1 billion. , a year-on-year increase of 5.5%, ahead of the industry average of 0.6%. The net increase in mobile users was 30.87 million, up 51.8% year-on-year, and the total number reached 320 million.

During the year, the company did not simply follow the competitor's low-cost and unlimited products, but continued to promote the Internet transformation of its operations. With the deepening of 2I2C business cooperation with Internet companies, it optimized the introduction of differentiated products based on market segment demand and solved large-flow users. The demand; deepen the online and offline full-contact unified operation, promote the physical channel from the business to change the business, promote online and offline mutual drainage; focus on online, cross-industry alliance and other light contacts, improve development efficiency; drive with big data precision Marketing and stock management to promote user development and value.

In 2018, the company's 4G users increased by 45.05 million, the total number reached 220 million, and the market share of 4G users increased by 1.3 percentage points. 4G users accounted for 70% of mobile users, up more than 8 percentage points year-on-year.

The company implements the policy of "raising speed and reducing fees". During the year, the company optimizes the package and vigorously promotes the large-flow package to promote smooth transition for users. Deepen traffic management, take advantage of mobile data price elasticity, strive to achieve more win-win with thin profit multi-selling. In 2018, the unit price of mobile phone Internet traffic dropped sharply; Mobile phone Internet traffic rose 1.8 times, with monthly data traffic from mobile phone users reaching about 6GB, and mobile phone Internet revenue rose 13.7 percent to 104.8 billion yuan compared with the same period last year.

Actively respond to fierce market competition, and continuous improvement in broadband business development

In 2018, the company to 'big video, big convergence, large bandwidth' to actively address the challenges of broadband competition. Take advantage of strategic investors advantage resources, enrich the filling of high-quality video content, accelerate the layout of smart home business, enhance user adhesion and product competitiveness; We will strengthen the promotion of converged products in all channels, strive to promote penetration and promote mutual development, promote high bandwidth products, increase social cooperation, and further improve network coverage capacity and quality; We will accelerate the implementation of comprehensive grid contracting reform, stimulate grass-roots vitality, and enhance sales and service capabilities. The new integrated marketing mode of "Intelligent Application of Cloud Intelligent Network" promotes the rapid development of government and enterprise broadband and Internet dedicated line business.

In 2018, the company's fixed-line broadband subscribers increased by 4.34 million, a year-on-year increase of 234%, with a total of more than 80 million. The penetration rate of video services in fixed-line broadband users reached 44%, an increase of about 9 percentage points year-on-year. The fixed-line broadband access revenue reached RMB 42.3 billion, a significant year-on-year decline, which basically stabilized.

Continued breakthrough in the development of industrial Internet business, helping the growth of fixed network business

In 2018, the company led by 'Intelligent Cloud Network applications' to accelerate cloud computing, big data, the Internet of things and other key innovation business market expansion, expand the size of the future efficient and sustainable development for the storage of momentum. The company focuses on key industry markets such as government affairs, education, health care, finance, transportation, tourism and so on, and makes full use of the complementary resources and business synergy advantages of strategic investors, through in-depth cooperation between business and capital. Actively build a differentiated competitive advantage. We should strengthen the construction of innovative talent team, create a system and mechanism separated from the traditional business, implement incremental benefit sharing, and stimulate internal innovation vitality and motivation. We will speed up the establishment of an innovation platform for government and enterprise businesses, create innovative product research and development for government and enterprise customers, focus on response, operational support, and other end-to-end core capabilities to help in the future growth of scale and efficiency of innovative business.

In 2018, the company's innovation business is gradually becoming the main driver of revenue growth. Revenue from industrial Internet business rose 45 percent year-on-year to 23 billion yuan, accounting for 8.7 percent of overall service revenue. ICT business revenue was 5.6 billion yuan, up 69% year-on-year, and cloud computing business revenue reached 14.7 billion yuan, up 33% from the same period last year. Internet of things business and big data business revenue reached 2.1 billion yuan and 600 million yuan, respectively, up 48 percent and 284 percent year-on-year. Thanks to rapid growth in new business and continued improvement in fixed-line broadband services, the company's fixed-line service revenue reached 96.3 billion yuan, up 6.0 percent from the same period last year.

Network construction

In 2018, the company insisted on the benefit-oriented precision investment, focused on the key business and key areas, using big data to achieve accurate construction, rapid response to market demand, to ensure the efficient and rapid development of the business.

We will continue to improve 4G network coverage and quality to lay a good foundation for the'4G 5G 'boutique network. Broadband network is mainly to improve the utilization of resources, ensure the coverage, quality, experience leading in the northern region, focus on the value region in the southern region for socialized cooperation, improve the network capability. Focus on the integration of cloud and enterprise information opportunities, create 'government and enterprise boutique network', enhance business building coverage, ensure the leading edge of cloud collaboration.

In 2018, the company added 140,000 4G base stations, and the total number of 4G base stations reached 990,000. The proportion of FTTH ports in fixed-line broadband ports is 82%, and the proportion of FTTH users in broadband users is 82%. Focus on regional network quality and customer perception continued to improve, mobile network and fixed-line broadband NPS continued to increase, 4G network maintained an industry-leading average uplink and downlink rate, and network latency indicators remained the industry's best.

In the future, the company will invest in dynamic and precise technologies such as technological progress, regulatory policies, market and business needs, and industry competition.

Mixed ownership reform

In 2018, the company comprehensively implemented the 16-word policy of “improving governance, strengthening incentives, highlighting the main business, and improving efficiency” and deepening the implementation of mixed ownership reform. Improve the corporate governance structure, and carry out in-depth cooperation with strategic investors, innovate business models, promote coordinated development; implement restrictive stock incentives, deepen institutional reforms, improve market-based incentives, and begin to show mixed dividends.

Take advantage of the ability of external resources to enhance the new driving force of innovation and development

The company actively promotes all-round and in-depth cooperation with strategic investors, fully excavates and aggregates the superior resources of all parties, promotes complementary capabilities, mutual benefit and win-win results, and promotes the integration and development of key businesses and industrial chains. Provide new dynamic energy for business transformation and innovation change of the company.

During the year, the company cooperated with Tencent, Alibaba, Baidu, Jingdong, Didi and other deep Internet contacts to reach new users accurately and effectively. 2I2C users increased their net total by 44 million, with a total of 94 million. In terms of content aggregation, high-quality video content such as Baidu, iQiyi and Tencent were introduced to enhance the competitiveness of IPTV and mobile video services. In the field of industrial Internet, focusing on cloud computing, big data, Internet of Things and artificial intelligence, and in-depth business cooperation with Tencent, Baidu, Alibaba, JD, and Didi. Cooperated with Alibaba and Tencent to launch 'Woyun' public cloud products and hybrid cloud products; and established joint ventures such as Yunzi Wisdom, Yunjing Wenlv and Yunji Wisdom to deepen capital cooperation with Alibaba, Tencent and Netsu, respectively. Accelerate the development of the development opportunities in the industrial Internet field with the light asset model, and build up momentum for the company's future innovation and development.

Taking the reform of mixed ownership as an opportunity to deepen the institutional and institutional innovation

The company continues to deepen the innovation and reform of the system and mechanism around the promotion of vitality and efficiency. Normalization promotes weight loss and fitness, encourages personnel to move to small units and innovative business areas, and continuously optimizes organizational and personnel structure. Improve market-based incentives, and form a differentiated compensation decision mechanism and a selection and employment mechanism linked to efficiency and efficiency. Successfully implemented Unicom A-share company's restricted stock incentive plan, closely connecting employees, shareholders and the company's interests. In 2018 and early 2019, it has awarded approximately 810 million shares of China Unicom A-share company to approximately 8,000 management backbones and core talents. We will continue to deepen the reform of small-scale contracting, accelerate the reform of mixed ownership of subordinate enterprises, and stimulate the vitality of micro-subjects. Subordinate Yunnan Branch has steadily promoted contract operation and operation reform, accelerated network construction, accelerated business development, and significantly improved operational efficiency.

Future prospects

At present, China's economic development has entered a new era, new information and communication technologies accelerate the upgrade iteration, global operators speed up network upgrading and business transformation, the development of the industry still has a great potential for broad space. The reform of mixed ownership brings valuable opportunities for the development of the company as well as for the establishment of differentiation advantages. At the same time, the company also faces the challenges of traditional business decline, market competition and the implementation of speed-up and fee reduction policies, prompting the company to further deepen the transformation of the Internet and speed up the pace of high-quality development.

Looking into the future, the company will seize opportunities, face challenges, practice new development concepts, deepen the implementation of the strategy of focusing on innovation and cooperation, deepen the reform of mixed ownership, release more institutional dividends with new governance, generate new vitality and new operations. Achieve higher efficiency and efficiency, new kinetic energy to expand and develop blue ocean, new ecological convergence and more synergies, and strive to create a new situation of 'five new' Unicom construction and high-quality development. The company will unswervingly implement the transformation of Internet-based operations, stabilize the basic business, and enhance the scale of innovative business, driving the overall business to continue to grow. Accurate and efficient construction of quality network, active layout for 5G, continuous improvement of 4G, simplified 2G/3G network, providing a solid guarantee for business development. In depth, we will promote innovations in various fields such as organizational structure, human resources, small contracting, and sub-enterprise mixed reforms. We will overcome difficulties in resolving institutional and institutional obstacles and stimulate the vitality of micro-subjects, and strengthen the development of endogenous motivation. Continuously strengthen basic management and risk management, promote cost reduction and efficiency, continuously improve business operation efficiency and competitiveness, and create greater value for all shareholders.

Finally, on behalf of the Board of Directors, I would like to express my sincere gratitude to all shareholders, customers and the community for their support to the company. I also sincerely thank all the staff for their hard work and dedication!

Wang Xiaochu

Chairman and CEO

Hong Kong, March 13, 2019

China Unicom 2018 the full year net profit 101.97 billion yuan 457.82% year-on-year

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