China Unicom (762) H2 2025 earnings summary

Executive summary

• Operating revenue for 2025 reached RMB392.2 billion, up 0.7% year-over-year, with profit before income tax at RMB25.5 billion and profit attributable to equity shareholders at RMB20.82 billion, up 1.0% year-over-year.

• Free cash flow rose 28.5% year-on-year to RMB36.0 billion; basic EPS was RMB0.68, up 1.0% year-over-year.

• Strategic emerging industries contributed over 86% of revenue, with AI revenue growing more than 140% year-on-year and computing power business exceeding 15%.

• International business revenue reached RMB13.6 billion, up over 9% year-over-year, with expectations for future double-digit growth.

• Dividend per share for 2025 is proposed at RMB0.417, a 3.1% increase year-over-year, with a payout ratio of 61.3%.

Financial highlights

• EBITDA reached RMB99.42 billion, representing 28.6% of service revenue.

• Net cash inflow from operating activities was RMB90.17 billion.

• Liabilities-to-assets ratio decreased to 44.6%; debt-to-capitalisation ratio improved to 8.4%.

• Operating costs remained stable at RMB373.63 billion; depreciation and amortisation declined 3.1% year-over-year.

• Basic EPS was RMB0.68, up 1.0% year-over-year.

Outlook and guidance

• 2026 capital expenditure expected at approximately RMB50 billion, with over 35% allocated to computing power.

• Focus on high-quality growth, innovation, and transformation into an advanced technology player for the 15th Five-Year Plan.

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

• Continued investment in digital intelligence platforms and business structure optimization.