Hong Kong – 19 March 2026 – China Unicom (00762) reported FY2025 results marked by modest top-line growth, stronger cash generation and a higher dividend, while signalling a disciplined investment plan for 2026.

Revenue and Earnings • Operating revenue grew 0.7% year-on-year (YoY) to RMB392.22 billion, with service revenue up 0.5% to RMB347.74 billion. • Profit before tax edged up 0.8% to RMB25.45 billion; net profit attributable to shareholders increased 1.0% to RMB20.82 billion, equivalent to basic earnings of RMB0.68 per share. • EBITDA reached RMB99.42 billion, translating into an EBITDA/service-revenue margin of 28.6%.

Cash Flow, Capital Expenditure and Leverage • Net cash from operating activities amounted to RMB90.17 billion. • Free cash flow climbed 28.5% YoY to RMB36.02 billion, supported by a 16.3% reduction in capital expenditure to RMB54.15 billion (capex-to-service-revenue ratio: 16%). • Total assets stood at RMB669.62 billion, with the liabilities-to-assets ratio improving to 44.6% (-1.2 ppt YoY). Interest-bearing debt was RMB5.48 billion, bringing the debt-to-capitalisation ratio down to 8.4%.

Dividend Policy • The Board proposes a final dividend of RMB0.1329 per share (pre-tax). Together with the interim dividend of RMB0.2841 already distributed, total FY2025 dividends reach RMB0.4170 per share, up 3.1% YoY and representing a 61.3% payout ratio. The final dividend is subject to shareholder approval at the 26 May 2026 AGM; record date is 5 June 2026 with payment slated for 24 June 2026. A 10% withholding tax applies to non-resident enterprise shareholders.

Operational Metrics • Total connectivity subscribers surpassed 1.20 billion, adding 110 million lines during 2025. Mobile billing users climbed to 357 million (+13.32 million), while fixed-line broadband users reached 129 million (+7.61 million). • IoT connections exceeded 720 million; 5G private-network revenue rose 50% YoY to RMB12.30 billion. • Computing-power business revenue accounted for more than 15% of service revenue, supported by data-centre revenue of RMB28.10 billion (+8.5% YoY) and Unicom Cloud revenue growth of 5.2% YoY. • AI revenue more than doubled (+140% YoY), underpinned by the UniAI platform suite and a 45 EFLOPS intelligent-computing capacity. • International business contributed RMB13.60 billion, up over 9% YoY.

Cost and Efficiency Initiatives • Deepening 5G infrastructure co-build/co-share, network simplification and ultra-lean operations delivered annual operating-cost savings of RMB1.35 billion. • Depreciation and amortisation fell 3.1% YoY to RMB80.83 billion; other operating expenses declined 0.8% to RMB64.63 billion.

2026 Outlook • Capex is budgeted at approximately RMB50 billion, with more than 35% earmarked for computing-power investments, underscoring strategic focus on cloud, AI and data-centre expansion.

Regulatory Update • From 1 January 2026, China’s VAT rate for mobile data, SMS/MMS and fixed/wireline broadband access will rise from 6% to 9%, potentially affecting future revenue and profitability.

China Unicom closes its 14th Five-Year Plan period with higher profitability, stronger cash generation and a commitment to boost shareholder returns while reallocating investment toward high-growth digital infrastructure and AI-driven services.