China Unicom (00762) has released its interim results for 2026, indicating a period of stabilization and strategic positioning. Revenue performance remained robust during the first half of the year, despite challenges in overall industry growth, with total operating income reaching RMB 201.4 billion, a year-on-year increase of 0.6%. Service revenue amounted to RMB 178 billion, reflecting a slight decline of 0.2% compared to the same period last year.

Profitability faced short-term pressure, with pre-tax profit recorded at RMB 11.3 billion. Profit attributable to equity holders of the company stood at RMB 9.5 billion, a decrease of 34.6% year-on-year. This periodic fluctuation in earnings is driven by multiple factors, including value-added tax and notable changes in the timing of labor cost investments. However, annual labor costs are expected to remain stable, with a significant narrowing of the profit decline anticipated. Cash flow performance was healthy, with net operating cash inflows surging to RMB 32.9 billion, up 13.6% year-on-year and hitting a record high in recent years, while the growth rate of accounts receivable slowed considerably compared to the previous year.

The company's structure is advancing toward higher quality and innovation. Connectivity value is stabilizing and improving, with the value of new users surpassing that of existing users. The convergence penetration rate exceeded 78%, and the average revenue per user for converged packages maintained above RMB 100. Momentum from computing power is accelerating, with computing power revenue growing 13% year-on-year to RMB 41.9 billion. Within this segment, intelligent computing center revenue increased by 11%, and smart computing revenue grew by 9%. The pace of internationalization has accelerated, creating a new growth engine, as international business revenue rose 14% year-on-year to RMB 7.7 billion.

Resource allocation remains precise and efficient. The company adheres to lean management, consistently enhancing input-output efficiency, with capital expenditure of RMB 24.1 billion in the first half. Implementing the "Six Networks" deployment, China Unicom has strengthened its computing network and next-generation communication network, with computing power investment accounting for 37% of total capital expenditure, an increase of over 80% year-on-year. Through deepened network co-construction and sharing, coupled with intelligent network operations, the company has effectively controlled costs while network scale continues to expand, achieving a 4.8% improvement in energy consumption per base station.