China Unicom (Hong Kong) Limited

Mr. Jianqin, Executive Director and President Mr. Dong Quan, Head of Discipline Inspection and Supervisory Team of the Group Mr. Tang Yongbo, Senior Vice President Ms. Li Yuzuo, Executive Director and CFO Senior Vice President Mr. Cao Xinxin and Senior Vice President Mr. Wang Liming English Interpreting for mid-term performance. Respected investors, analysts, and friends from the media, ladies and gentlemen, good afternoon. Welcome to the 2024 Interim Results of China Unicom. July 19th, we host business partner conference with a joint vision and to share our news results. And we have organized a historical exhibition and business exhibits of 100 years of heritage and 30 years of innovation for us to understand more about China Unicom. We have been developing both in scale and in profitability. In the first half, we have 197.3 billion of operating revenue. That's a 2.9% of increase. And our service revenue was at 175.7 billion, an increase of 2.7%. Our profitability also increased by 10.4% to 16.9%. promote the three innovations in network technology and service and to create synergies and positions. as well as our computing network. We promote for synergies and precision in resources allocation. In the first half of the year, we have already invested $23.9 billion of our $65 billion total of CapEx and building a very strong basis. In the first half, the main focus as well as data networks. As far as connectivity is concerned, we will continue to enhance our mobile network coverage. In the first half, we have 1.31 million 5G mid-band BTS, 780K low-band BTS, and over 2 million 4G mid-band BTS. There's over 100 cities achieved commercial deployment of key 5GA technologies such as REDCap and carrier aggregation. And we also stepped up on broadband network building. We promoted gigabyte networks and the proportion of 10 GPON ports reached 79%, which is leading the industry. And then we also launched a 50G Pond pilot project to support the construction of 10 gigabyte cities. As far as computing network is concerned, we have built intelligence computing centers with more than over 10,000 AI accelerators in Shanghai and . . . . . which is the top five in industry. And we have also for flexible broadband connectivity. And with data, we have a high quality AI data and we will continue to promote innovation in our investments and we have increased 13% of our R&D investment. We emphasize on original technology and also to build data and network platform such as . . . . upgrades to ensure integrity and security of the network. We continue to apply 5G or 6G technologies to probe into the standards of 6G standards, satellite internets, low attitude intelligence. and ground integrations, etc. With data, we continue to promote Data Factor X to launch AI data, a multimodal, high-quality shared data set for AI, as well as empowering data factor circulation of trusted data resource space. And we will also... platform to provide trustworthy data use. As far as intelligence innovation is concerned, we will continue to promote the 1 plus 1 plus M square AI deployment and to promote the integration of AI with various industries and also to promote the model to We will continue to promote our service innovation. We continue to promote new of the use of connectivity. We will enhance our connectivity and communications as well as computing and digital smart applications to cover various industries and aspects. The first half, we have for CC revenue, 125.1 billion, that's a 2.1% increase, and our CDSA revenue increase by 6.6% to 43.5%. at Connectivity. The users and the value also increased. In the first half, we have an additional of 8,000 new customers. The total exceeds now 1.07 billion. And mobile subscribers IoT connections exceeded 562 million. Fixed-line broadband subscribers continue to grow to 117 million, of which integrated subscribers takes up more than 80 million. And the customer mix continues to improve. 5G package subscribers As far as new scenarios and creating new value, we continue to grow through such a new integration. So the integration rate continues to improve, and our product integration versus personal customers, we have developed end products with all over RMB 1 billion in revenue. As far as family customers is concerned, we have been expanding Unicom Cloud Drive video rental to bring them quality upgrades. The FTTR subscribers is nearly 300,000 small and medium-sized enterprises. As far as terminal integration is concerned, there's a 4.3% increase in cumulative terminal sales volume up to 25 million. We have promoted the integrated development Let's take a look at computing power business. In the first half, Unicom Cloud revenue is at 31.7 billion, that's a 24.3% increase. There is a breakthrough in both computing as well as product revenue. So we have been able Ministerial Clubs, Provisional Government Affairs Clubs, Medium to Large Enterprise Clubs, as well as Medical Clubs. So IDC business has been growing and leading the industry. We have launched five computing Our data services also is industry leading. In the first half, we have an 8.6% increase in our data services revenue. We continue to achieve multiply effect of data factors and promote various big data services to various industries. We continue to build trustworthy infrastructure. So we work with different partners such as big data partners to continue to push innovations in both public and private services. And as far as digital application is concerned, we have a double-digit growth. We have a 3.7 billion revenue in the first half. That's a 13.5% increase. We have filled 5,800 5,800 5G factories and 38K plus 5G digital smart applications are influencing intelligent connectivity continues to rise where Go platforms Digital Transformation of Customers and over 100K customers is using our services. We have strong growth in cyber security. We have a 1.4 billion revenue in the first half. That's 58.2%. We have a platform servicing. That's a security operation service platform. servicing over 200 cooperative products and 200 plus governments. Our security hub serves more than 1,400 customers with 100 plus partners. Let's take a look at our international business. With the increase in international travel, we have been enjoying a lot of opportunities. We have, for the first half, 6 billion of revenue The network and other main products are going very quickly, and there's a breakthrough of 93% in international IOT revenue. This June, we organized the International Development Plan of China Unicom. We have also organized in Shanghai a global partnership conference in order to build our synergies and to take a wide Through continuous improvement in management operations and service, we have seen a lot of improvement. We have optimized our system and also the operating cost and the management cost continues to come down. Our quality continues to improve. We have been able to optimize our product and also to optimize our strategy and our speed to market as well as the service. We are also building Smart Customer Service. That's 99% of building a Uni-AI customer service launch model and then 84.6% in resolution ratio of customer cases by Smart Customer Service. We have 95 investors events in the first half and over in the first half. In the first half, we have reduced GHG emission by 6.78 million tons and our energy efficiency enhancement has improved by 6% and we have also contributed to Beauty for China efforts. We also focused on administrative villages covered and turning them into digital villages of such villages. We have been shouldering the responsibilities that we should take and we also have been communicating with our investors and enhancing the value that we can offer to our customers. Now, while we increase our We continue to share with our shareholders and we will continue to 0.959 yuan per share, and this payout ratio is higher than our revenue growth ratio. And we will continue to bring better return to our shareholders. Today's China Unicom has an even stronger basis for development. We have more energy and we have a much, much better base. So we expect double-digit growth in revenue. And our investment in CapEx will be capped within $65 billion.