China Unicom (Hong Kong) Limited Announces 2025 Annual Results: Strong Financials, Robust Dividends, and Strategic Technological Advances

Key Financial Highlights

• Operating Revenue: Reached RMB392.2 billion in 2025, marking a 0.7% increase year-on-year.
• Profit Before Income Tax: RMB25.5 billion, up 0.8% year-on-year.
• Profit Attributable to Equity Shareholders: RMB20.82 billion, up 1.0% year-on-year.
• Free Cash Flow: Achieved RMB36.0 billion, a significant 28.5% increase year-on-year.
• Capital Expenditure: RMB54.2 billion, with a CAPEX-to-service revenue ratio down to 16%. For 2026, CAPEX is projected at approximately RMB50 billion, with over 35% allocated to computing power investments.
• Dividend: Board proposed a final dividend of RMB0.1329 per share (pre-tax). Together with an interim dividend, the total dividend for 2025 is RMB0.417 per share (pre-tax), a 3.1% increase year-on-year. The dividend payout ratio improved further to 61.3%.
• EBITDA: RMB99.42 billion, with EBITDA-to-service revenue at 28.6%.
• Liabilities-to-Assets Ratio: Improved to 44.6% from 45.8% the previous year.
• Net Debt-to-Capitalization Ratio: Reduced to 2.2%.

Operational and Strategic Developments

Connectivity Expansion

• Total connectivity subscribers exceeded 1.2 billion, an increase of 110 million year-on-year.
• Mobile billing subscribers surpassed 357 million (+13.32 million), and fixed-line broadband subscribers exceeded 129 million (+7.61 million).
• IoT connections reached over 700 million, maintaining a market-leading position in the Internet of Vehicles (IoV).
• 5G private network revenue reached RMB12.3 billion, up over 50% year-on-year.
• Major network upgrades with 5G-A base stations deployed in over 330 cities and 10-gigabit optical fiber trials in more than 100 cities.
• Preliminary deployment of Broadband Network Cores (BNC) in 20 cities, supporting advanced integrated services.

Computing Power and Cloud Services

• Data center revenue increased by 8.5% to RMB28.1 billion.
• Standard cabinets exceeded 1.10 million, with intelligent computing capacity reaching 45 EFLOPS.
• Unicom Cloud revenue grew by 5.2% year-on-year, serving 180+ government clouds and nearly 400,000 corporate customers.
• Launch of national AI pilot bases and digital intelligence platforms, including UniAI Wanxiang, UniAI MaaS, and UniAI Wanwu, with 400+ TB high-quality datasets and over 140 mainstream models.
• AI revenue, including intelligent computing services and applications, surged over 140% year-on-year.

Service Innovation and Industrial Transformation

• Cloud-AI products served over 300 million users, with revenue increasing by more than 11%.
• eSIM user base reached nearly 3 million.
• Launched “UniBOX Tongtong” smart home hub and an AI-driven customer service agent (85% smart service ratio).
• Upgraded “5G + Industrial Internet” product system, serving 95 million vehicles and facilitating the overseas expansion of new energy vehicles.
• Supported digital government initiatives and international smart infrastructure projects across ASEAN, Middle East, Africa, and Europe.

Security and ESG Initiatives

• First and only enterprise to pass the highest-level national Data Security Maturity Model (DSMM) certification.
• Launched Unicom Security Guardian, serving 210 million users, and established a cybersecurity ecosystem with over 300 partners.
• Recognised as “Most Committed to ESG in China” and winner of the “Sustainable Asia Award” for 2025.
• Energy consumption per unit of data traffic reduced by 12.9% and power usage effectiveness (PUE) of data centres improved 5% year-on-year.
• Completed over 2,500 digital village/agriculture projects and named “Most Honored Telecom Company” for ten consecutive years.

Key Issues and Potential Price-Moving Information for Shareholders

• Dividend Outlook: With a 3.1% increase in total dividend and a payout ratio raised to 61.3%, China Unicom demonstrates a strong commitment to shareholder returns. The Board’s proposal for the final dividend is subject to approval at the AGM on 26 May 2026. Shareholders should be aware of the relevant record and closure dates for dividend entitlement.
• Taxation Changes: From 1 January 2026, VAT rates for mobile data, SMS/MMS, and broadband services will rise from 6% (value-added telecom services) to 9% (basic telecom services) under a new government announcement. This will impact both revenue and profit margins, representing a potentially price-sensitive development that investors should monitor closely.
• CAPEX Reallocation: In 2026, CAPEX is expected to decrease to approximately RMB50 billion, but more than 35% will be allocated to computing power infrastructure—a strategic shift that could impact future growth in digital and AI-related segments.
• Technological Leadership: The company’s aggressive moves in AI, cloud, and intelligent computing signal a transformation that could drive new valuation paradigms, especially as AI revenue more than doubled year-on-year and international business grew 9%.
• Regulatory and Corporate Structure: The company maintained the dual role of Chairman and CEO for efficiency, but this diverges from some corporate governance best practices. Investors should monitor for any governance changes or regulatory scrutiny.

Additional Details and Practical Information

• Annual General Meeting: Scheduled for 26 May 2026. Shareholders must ensure their registration by the specified deadlines to attend and vote.
• Dividend Taxation: Non-resident enterprise shareholders are subject to 10% withholding tax on the 2025 final dividend. Individual shareholders are exempt. See the company’s announcements for documentation requirements and deadlines.
• Balance Sheet Health: Total assets at RMB669.62 billion and total liabilities at RMB298.75 billion reflect a strong financial position and improved leverage metrics.
• No Share Buybacks: The company and subsidiaries did not repurchase, sell, or redeem any listed securities during 2025, nor did they hold any treasury shares.

Outlook for 2026 and Beyond

China Unicom is positioning for continued high-quality growth as it transitions into the “15th Five-Year Plan” period. The company’s focus will remain on expanding connectivity, computing power, service innovation, and security, with a clear emphasis on differentiated development and technological leadership in AI and digital infrastructure.

Investors should monitor the impact of VAT changes, the shift in CAPEX allocation, ongoing dividend policy, and technological advancements, as these are all factors likely to affect the company’s future performance and share value.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult with their financial advisers and refer to the official filings and announcements for complete and up-to-date information. The article is based on the company’s 2025 results announcement and contains forward-looking statements subject to risks and uncertainties. Actual results may differ from those projected.

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