Slides
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2024 Annual Results 18 March 2025 China Unicom (Hong Kong) Limited 762.HK
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2 2023 年 度 业 绩 Certain statements contained in this presentation may be viewed as “forward-looking statements”. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. In addition, we do not intend to update these forward-looking statements. Neither the Company nor the directors, employees or agents of the Company assume any liabilities in the event that any of the forward-looking statements does not materialise or turns out to be incorrect. Forward - Looking Statements
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3 2023 年 度 业 绩 Chen Zhongyue Chairman and Chief Executive Officer Jian Qin Executive Director and President Wang Junzhi Executive Director Tang Yongbo Senior Vice President Li Yuzhuo Executive Director & Chief Financial Officer Hao Liqian Senior Vice President Management Present
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Overall Results
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5 2023 年 度 业 绩 Results Summary — New Breakthroughs in High - quality Development 轻量化5GC 轻量化5GC 轻量化5GC Operating revenue grew steadily Profitability continued to improve Operational quality enhanced constantly 327.9 354.9 372.6 389.6 2021 2022 2023 2024 14.4 16.7 18.7 2021 2022 2023 2024 20.6 Operating revenue (RMB bil) Net profit1 (RMB bil) Return on equity2 （ROE） Notes: 1. Net profit refers to the profit attributable to equity shareholders of the Company 2. Return on equity (ROE) = the profit attributable to equity shareholders of the Company in the period/ average balance of equity attributable to equity shareholders of the Company at the beginning and end of the period 4.4% 5.0% 5.4% 5.8% 2021 2022 2023 2024
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6 2023 年 度 业 绩 Results Summary — Connectivity and Communications (CC) Provided Steady Support 轻量化5GC Subscriber scale reached another record high Total connectivity subscriber scale2 1.14bil Net addition of 150mil Total mobile and broadband subscribers IoT connections >620mil Internet of Vehicles connections 76mil 470mil Net addition of 19.52mil Notes: 1. Connectivity and Communications (CC) includes six major segments: mobile connectivity, broadband connectivity, TV connectivity, leased line connectivity, communication services, and information services 2. Connectivity subscriber scale = aggregate number of mobile billing subscribers + aggregate number of fixed-line broadband subscribers + aggregate number of fixed-line local access subscribers + aggregate number of Internet-of-things terminal connections + aggregate number of networking leased line subscribers 76% CC1 business revenue as % of service revenue 1.5% Yoy revenue growth
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7 2023 年 度 业 绩 Results Summary — Computing and Digital Smart Applications (CDSA) Grew with Quality Enhancement Strong growth in computing power services CDSA1 business revenue as % of service revenue 24% 9.6% Yoy revenue growth 轻量化5GC > RMB26bil New contract value of intelligent computing business Rapid growth of intelligent computing business Strong growth in computing power services Unicom Cloud2 revenue RMB68.6bil 17.1% yoy Data centre revenue RMB25.9bil 7.4% yoy Notes: 1. Computing and Digital Smart Applications (CDSA) includes six major segments: Unicom Cloud, data centre, system integration, data services, intelligence services, and cybersecurity 2. To reflect the business opportunities brought by the development of artificial intelligence in terms of general computing and intelligent computing, the scope of Unicom Cloud revenue has been optimised to include revenue from cloud IDC, cloud resources, cloud platform, cloud service, cloud integration, cloud interconnection, cloud security, etc. generated from integrated innovative solutions.
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Network Innovation Technology Innovation Service Innovation
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9 2023 年 度 业 绩 轻量化5GC 轻量化5GC 轻量化5GC 2020 2021 2022 2023 2024 CC Proportion of Investment 48% yoy 17pp CDSA 23% yoy 11pp Network Innovation — Significant Improvement in CAPEX Efficiency -17% CC CDSA Network carriage Miscellaneous support 74.2 73.9 61.37 67.6 69.0 Effective savings in CAPEX CAPEX (RMB bil) Significant optimisation in investment structure Proportion of Investment Better network coverage Mobile network population coverage rate nearly 1pp Millions of subscribers Benefiting No. of broadband ports 5% Benefiting Millions of households
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10 2023 年 度 业 绩 Network Innovation — Coordinated Development of Connectivity and Computing Networks Shanghai Lingang Hohhot Beijing MentougouNingxia Zhongwei Hebei Huailai Hong Kong Global Guangdong Knowledge City Gui’an base Zhejiang Deqing “New eight vertical and eight horizontal” backbone networks 10,000-accelerator mega AI computing centre Serve training of 100-billion-parameter large models Integrated AI training and inference hubs Providing integrated AI training and inference services to accommodate diverse scenarios of AI training and inference Localised AI inference nodes Achieving localised deployment of GPU computing power and low-latency inference decision-making 轻量化5GC 轻量化5GC Broader coverage, better experience Mobile network base stations >4.50mil Large - scale commercial use of 5G - A Deployment of carrier aggregation in 300 cities Larger scale, stronger capabilities Integrated training and inference computing resource pools >300 Network-wide intelligent computing power allocation “Xingluo” computing power allocation platform No. of broadband ports 280mil >80% Industry leading The proportion of 10G PON ports No. of IDC cabinets 420k Cabinet utilisation rate 68% >17EFLOPS Total scale of intelligent computing Computing power intelligent network (AINet) 400/800G Mobile network Broadband network Computing resources Computing network capabilities Shanghai Lingang Hohhot Beijing MentougouNingxia Zhongwei Hebei Huailai Hong Kong Global Guangdong Knowledge City Gui’an base Zhejiang Deqing Xining Qinghai
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11 2023 年 度 业 绩 轻量化5GC 轻量化5GC Distribution of International Business Exchanges China Unicom newly established two international exchanges in Qingdao and Haikou, which, together with the international exchanges in Beijing, Shanghai, and Guangzhou, jointly support China's connectivity and exchanges with the whole world 轻量化5GC Robust connectivity and integrated computing network1 International marine and terrestrial cables >60 International business POPs 410 Countries and regions covered by services >200 International intelligent computing capabilities Leveraging the hub role of the Tseung Kwan O Data Center in Hong Kong, aggregating the self- owned computing power in Tokyo, Singapore, Frankfurt, and connecting over 50 resource pools from leading global cloud service providers, to offer high-quality computing network services to clients worldwide Marine and terrestrial cable connections Note: 1. Some international network assets such as marine and terrestrial cables are owned by the company's controlling parent company—China United Network Communications Group Co., Ltd Network Innovation — Robust Connectivity in Global Network
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12 2023 年 度 业 绩 轻量化5GC Established innovation entities in regions such as the Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macau Greater Bay Area 5G key technologies and engineering application First Prize in National Science and Technology Progress 5G Smart Steel Factory GSMA Global Mobile Awards Best Mobile Internet Economy Innovation Award Technology Innovation — Deepening the Integrated Innovation of Digital Technologies Operational Technology (OT) Artificial Intelligence Technology (AT) Data Technology (DT) Information Technology (IT) Communication Technology (CT) Integrated innovation Increasing investment in innovation 9.1% R&D investment 42% Proportion of technological innovation talent Continuously improving the innovation system China Unicom Data Intelligence Co., Ltd Data Science and Artificial Intelligence Research Institute Rich achievements in scientific and technological innovation
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13 2023 年 度 业 绩 轻量化5GC 轻量化5GC Technology Innovation — Promoting Computing Network Integration Basic protocols and system architecture of “Internet 2030” Key technologies such as wide-area lossless transmission and inter-network computing power allocation China Unicom Qinghai Sanjiangyuan Park – demonstrating integration of green power with intelligent computing The 10,000-accelerator green computing centre achieves computing-network integration and computing-electricity integration. Its cluster average utilisation rate is expected to exceed 60% Next-generation Internet Next-generation mobile communication Key technologies such as millimeter waves, multi-frequency sensing, and reconfigurable intelligent surfaces (RIS) Key technologies such as ultra-low latency, high- precision positioning, and dense sensing Established national-class experimental zones in Anyang, Nanjing to promote integrated innovation across air, space, land and sea
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14 2023 年 度 业 绩 Technology innovation — Promoting Digital Intelligence Integration 轻量化5GC 轻量化5GC Big data AI High-quality dataset Trusted data space platform Leading data governance and data security capabilities Internal and external, multi-industry Mature standards, advanced technology, superior performance, and cross-domain integration Data platform Developed dozens of industry-specific large models Industrial manufacturing Social governance Economic operation Public security ... Key technologies such as dynamic generation of vector data and distributed collaborative computing Key technologies such as adaptive slow thinking and asymmetric MoE architecture Multi-modal intelligence, flexible customisation, secure autonomy UniAI MaaS platform All-modal, multi-size, high performance UniAI series foundational models
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15 2023 年 度 业 绩 轻量化5GC 轻量化5GC Creating and sharing smart life Product Upgrade 5G new calling Cloud phone Cloud computer Smart customer service AI agents … Scale Development Users FTTR Industry leading Promoting integrated development 77% Integrated subscriber % > RMB100 Integrated subscriber ARPU Service Innovation — Innovative Upgrade in Digital Smart Services Smart Home Tone robot Personal Digital and Smart Living Unicom Smart Home business Unicom Cloud Drive >180milUsers Unicom UHD > 50milUsers>280mil Video Ringtone Users >12mil
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16 2023 年 度 业 绩 轻量化5GC AI model training and inference AI native storage AI lossless network AI cluster coordination GaaS GPU as a service MaaS Model as a service DaaS Data as a service Flexibly meet one-stop needs Service Innovation — Unicom Cloud Intelligent Upgrade Integrated operation of intelligent computing and general computing World’s first Telecommunications operator providing cloud services during international sports events Millisecond level Elastic resource allocation and AI-driven traffic forecasting can reduce latency
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17 2023 年 度 业 绩 轻量化5GC 轻量化5GC Industrial Internet Digital government Report only once Government service hotline Social governance Accomplish one task efficiently Enhancing digital government efficiency Intelligence services revenue (RMB bil ) 2023 2024 5.6 7.1 2023 2024 5.3 6.4 Service Innovation — Scale Breakthrough in Digital Smart Applications The first national A-level dual-cross platform — “Gewu” Industrial Internet platform 5G Industrial Internet projects >29,000 5G factory >7,100 Data services revenue (RMB bil )
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18 2023 年 度 业 绩 15.2% 轻量化5GC International market expansion 40 Globally integrated IoV operation advantages Serving leading automotive companies in their overseas expansion Service Innovation — Full Rebrand of International Business RMB12.5bil International business Global Branches • New branches were established in Saudi Arabia, Peru, the UAE, and Uzbekistan to better serve the global roaming and digital needs of customers Community Integration and openness United Unique Computation Communication
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19 2023 年 度 业 绩 Best Managed Company in China FinanceAsia "Asia's Best Managed Companies Poll 2024“ Sustainable Asia Award Corporate Governance Asia 14th Asian Excellence Award 2024 Excellence in Environmental, Social and Governance Platinum Award The Asset ESG Corporate Awards 2024 Actively Fulfilling Corporate ESG Responsibilities 轻量化5GC 轻量化5GC 轻量化5GC Environment Society Corporate Governance Launched Green Action Plan 22 National Green Computing Centres 260k villages 280 mil users served by “Digital Village” Platform Market value management policy over 160 investor events Included in FTSE China A50 index1 8,000 business outlets Smart elderly assistance service centres set up Note： 1. Refers to China United Network Communications Limited (600050.SH), the controlling shareholder of the Company
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20 2023 年 度 业 绩 Notes: 1. The Board of Directors recommends the payment of a final dividend of RMB 0.1562 per share, which together with the interim dividend of RMB 0.2481 per share already paid, will result in a total dividend of RMB 0.4043 per share for the year. The proposed final dividend for 2024 is subject to shareholders' approval at the annual general meeting. 2. Market cap is calculated based on the closing price on the last trading day of the year, with the exchange rate set at 1 RMB = 1.0994 HKD. The calculation of cumulative dividend starts from 2021. 60% 2024 dividend payout ratio 5pp 0.164 0.216 0.274 0.3366 0.404340% 46% 50% 55% 60% 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5 0.55 0.6 2020 2021 2022 2023 2024 DPS (RMB) Dividend payout ratio Sustained growth of DPS1 Sustained increase in shareholder returns2 108.5 134.4 136.4 205.7 6.6 15.0 25.3 37.7 2021 2022 2023 2024 Cumulative dividend (RMB bil) Market cap (RMB bil) High Regard for Shareholder Returns
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21 2023 年 度 业 绩 轻量化5GC 轻量化5GC 轻量化5GC 2025 Outlook Sound Growth Improved operational efficiency Optimised business structure Enhanced innovation momentum Stronger capability advantages Enhanced Brand Image Revenue, profit, and ROE CT OT AT DT IT Integrated Innovation 2025 Targets Within that, computing power investment 28% Around RMB 55 bil CAPEX Investment Operation
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Financial Performance
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23 2023 年 度 业 绩 (RMB mil) 2024 Yoy change Total operating expenses 373,557 4.5% The growth rate is lower than the 4.6% growth of operating revenue Include: Interconnection charges 11,224 -0.6% Depreciation and amortisation 83,392 -1.7% Mainly benefited from effective management of CAPEX in recent years and network co-build co-share Network, operation and support expenses 64,320 7.2% Mainly due to the expansion of the Company's network scale and its increasing computing power resources to meet the needs of business development Employee benefit expenses 64,931 3.2% Mainly due to the continuous advancement of incentive mechanism reform, stronger linkage between incentives and performance, and optimised human capital efficiency. ↓0.2 pp as % of operating revenue Costs of telecommunications products sold 42,466 16.7% Basically In line with the 16.5% sales growth of telecommunications products Selling expenses 36,975 3.2% Selling expenses as % of operating revenue remained stable G&A expenses 70,249 6.0% Actively tapped into the blue ocean of CDSA with moderate increase in cost spending Effective Cost Control
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24 2023 年 度 业 绩 46.4 41.2 2023.12.31 2024.12.31 -XXX% Interest-bearing liabilities 46.5% 45.8% 2023.12.31 2024.12.31 -XXpp Liabilities-to-assets ratio 1.98 1.78 2023 2024 -9.9% (RMB bil) Finance costs -11.2% -0.7pp Continuously Strengthened Ability to Counter Financial Risks (RMB bil)
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Thank You!