China United Network Communications (600050) H2 2024 earnings summary

Executive summary

• Revenue reached RMB 389.6 billion in 2024, up 4.6% year-over-year, with profit attributable to shareholders at RMB 9.03 billion, up 10.5% year-over-year. Dividend payout ratio reached 54.7% of net profit, with total cash dividends of RMB 4.94 billion proposed.

• Service revenue grew 3.2% year-over-year to RMB 345.98 billion. Net assets attributable to shareholders increased to RMB 164.85 billion.

• The company maintained industry-leading growth in both traditional connectivity and digital intelligence businesses, with cloud revenue up 17.1% and data center revenue up 7.4% year-over-year.

Financial highlights

• Operating income: RMB 389.6 billion, up 4.6% year-over-year.

• Net profit attributable to shareholders: RMB 9.03 billion, up 10.5% year-over-year.

• Basic and diluted EPS: RMB 0.292, up 11.9% year-over-year.

• Operating cash flow: RMB 91.26 billion, down 12.5% year-over-year.

• Gross margin: 23.4%, down 1.1 percentage points year-over-year.

• Adjusted net profit (excluding non-recurring items): RMB 6.70 billion, down 10.6% year-over-year.

• Dividend: RMB 0.158 per share (including interim and final), up 19.7% year-over-year.

Outlook and guidance

• 2025 revenue, profit, and ROE expected to grow robustly; fixed asset investment budgeted at RMB 55 billion, with AI infrastructure investment up 28%.

• Focus on digital intelligence, cloud, and AI-driven business expansion, with continued investment in network and data center infrastructure.