China Unicom (762) H2 2025 earnings summary

Executive summary

• Operating revenue reached RMB 392.2 billion, up 0.7% year-over-year, with profit before income tax at RMB 25.5 billion and profit attributable to equity shareholders at RMB 20.82 billion, both up 1.0% year-over-year.

• Free cash flow increased 28.5% to RMB 36.0 billion; capital expenditure was RMB 54.2 billion.

• Strategic emerging businesses contributed over 86% of revenue, with AI revenue up over 140% year-over-year.

• Dividend per share for 2025 proposed at RMB 0.417, a 3.1% increase year-over-year, with a payout ratio of 61.3%.

• Strategic focus on connectivity, computing power, service, and security drove high-quality development.

Financial highlights

• Operating revenue: RMB 392.2 billion, up 0.7% year-over-year.

• Profit before income tax: RMB 25.5 billion, up 0.8% year-over-year.

• Free cash flow: RMB 36.0 billion, up 28.5% year-over-year.

• Basic EPS: RMB 0.68, up 1.0% year-over-year.

• EBITDA reached RMB 99.42 billion, representing 28.6% of service revenue.

Outlook and guidance

• Focus on long-term growth through innovation, optimizing business structure, and enhancing efficiency.

• Continued investment in computing power and digital intelligence platforms, with 2026 capex expected at RMB 50 billion and over 35% allocated to computing power.

• VAT rate for certain telecom services will increase from 6% to 9% in 2026, impacting revenue and profit.