China Unicom's net profit in the first quarter was 3.843 billion yuan, a year-on-year increase of 21.4%

China Unicom released its main financial and operating data for the first quarter of 2021 on the Hong Kong Stock Exchange today. The data showed that China Unicom's overall service revenue in the first quarter was RMB 73.924 billion, up 8.2% from the same period last year; China Unicom achieved a net profit of RMB 3.843 billion in the first quarter, up 21.4% from the same period last year.

In addition, data showed that China Unicom's mobile service revenue in the first quarter was RMB 41.071 billion, up 8.8% from the same period last year. Fixed-line service revenue was RMB 32.301 billion, up 8.1% from the same period last year. Industrial Internet business revenue was RMB 14.408 billion, up 25.9% from the same period last year.

In the first quarter of 2021, China Unicom Group firmly implemented the strategy of focusing on innovation and cooperation, accelerated the comprehensive digital transformation, and worked hard to promote the optimization of the industry ecology. The network co-construction and sharing achieved remarkable results, the efficiency of mixed-ownership reform was further released, the business development trend continued to improve, and the group continued to take solid steps on the road of high-quality development. In the first quarter of 2021, the overall service revenue was RMB 73.924 billion, an increase of 8.2% over the same period last year. EBITDA was RMB 23.64 billion, an increase of 0.3% over the same period last year, and EBITDA accounted for 32.0% of service revenue. The profit attributable to the company's equity holders was RMB 3.843 billion, an increase of 21.4% over the same period last year. In the first quarter of last year, the profit attributable to the company's equity holders fell by 13.9% year-on-year due to the impact of the new crown pneumonia epidemic.

In terms of mobile business, the Group actively promotes the construction of the industry ecosystem, advocates rational competition and sustainable development; leads consumption upgrades through 5G innovative applications, leverages content, rights and interests and financial tools to enhance product value, and strengthens pan-integrated services; continues to strengthen digital and differentiated innovative operations, uses big data analysis to enable precision marketing and stock operations; and focuses on key areas such as industrial Internet, smart cities, and medical health to create differentiated competitive advantages in 5G+ vertical industry applications. The 5G network achieves coverage of all urban areas and developed county towns across the country, as well as indoor coverage of key scenarios. The network speed is industry-leading and the quality is basically equivalent to that of the leading operators. In the first quarter of 2021, the net increase in mobile bill users was 3.48 million, reaching 309.29 million, and the net increase in 5G package users was 21.02 million to 91.85 million, effectively driving the mobile bill user ARPU to increase by 11.5% year-on-year to RMB 44.6. Mobile service revenue was RMB 41.071 billion, up 8.8% from the same period last year.

In terms of fixed-line broadband business, China Unicom leveraged the differentiated advantages of broadband quality and content, strengthened integrated operations, and achieved steady growth in fixed-line broadband business. In the north, the company highlighted the leading features of broadband quality and service, and stabilized the business scale; in the south, the company continued to increase cooperation, revitalize broadband port resources, and improve the operation system. Focusing on the home market, the company strengthened the value management of home users through a combination of smart home, video, and rights. Big data analysis enabled precision marketing and stock management. In the first quarter of 2021, the net increase of fixed-line broadband users was 2.03 million, reaching 88.13 million. Fixed-line broadband access revenue reached RMB 10.905 billion, up 1.1% from the same period last year.

In the field of innovative business, China Unicom seizes the opportunities of digital industrialization and industrial digitalization, focuses on key areas such as smart cities, digital government, and industrial Internet, promotes the integrated marketing model of "cloud + smart network + smart application", integrates cloud, big data, things, intelligence, security, and chain capabilities, and deepens and thoroughly develops key industry application products. The independent product research and development, promotion, and operation capabilities are steadily improved, enabling the digital transformation of government and enterprise customers. In the first quarter of 2021, the revenue of industrial Internet business was RMB 14.408 billion, an increase of 25.9% over the same period last year. Thanks to the rapid growth of innovative business, fixed-line service revenue reached RMB 32.301 billion, an increase of 8.1% over the same period last year.

In the first quarter of 2021, inter-network settlement costs increased by RMB249 million compared with the same period last year, and inter-network settlement income increased by RMB405 million compared with the same period last year, mainly due to the increase in inter-network business volume. Network, operation and support costs increased by 13.4% compared with the same period last year, mainly due to the increase in building equipment rental costs and energy consumption costs during the period due to the expansion of network and business scale. The Group continued to promote the reform of the incentive mechanism, strengthened the linkage between incentives and performance, and at the same time increased the introduction of innovative talents to enhance new momentum for innovation and development. Employee salary and welfare expenses increased by 14.4% compared with the same period last year. The cost of sales of communication products increased by 48.7% compared with the same period last year, mainly due to the increase in sales of communication products during the period. Other operating and administrative expenses increased by 19.1% compared with the same period last year, mainly due to the increase in related service costs caused by the rapid growth of ICT business, and increased investment in technical support for innovative businesses.

Looking ahead, China Unicom said it will firmly grasp the key opportunity of 5G scale development, continue to implement the strategy of focusing on innovation and cooperation, accelerate the overall digital transformation, and strive to create new development advantages of "five highs" including high-quality services, high-quality development, high-efficiency governance, high-tech engines, and high-energy operations. Adhere to win-win cooperation, actively lead innovation, stimulate organizational vitality, continuously promote development transformation and upgrading, comprehensively improve development quality and operational efficiency, and create greater value for shareholders, customers and society.