CHINA UNICOM was the first among the three major telecommunications operators to release its 2025 performance report on March 19, 2026, presenting results characterized by "progress through stability" and "stability through progress." The report indicates that CHINA UNICOM achieved steady operations while upholding its core principles. The company reported operating revenue of 392.2 billion yuan, with a total profit of 25.3 billion yuan. Non-GAAP net profit increased by 14.7% year-on-year, return on equity reached 5.39%, and free cash flow grew by 24.7% to 37.3 billion yuan.
While maintaining stability, CHINA UNICOM also pursued long-term development through innovation. Seizing opportunities presented by the new wave of technological and industrial innovation, the company implemented its "AI+" initiative. Revenue from strategic emerging industries accounted for over 86% of the total, while revenue from computing power services exceeded 15%, an increase of 1.1 percentage points from the previous year. Revenue from artificial intelligence surged by more than 140% year-on-year, and international business revenue reached 13.6 billion yuan, growing over 9%.
At the earnings conference, CHINA UNICOM Chairman Dong Xin described the company's four core business areas—connectivity, computing power, services, and security—as a "stabilizer," "propeller," "accelerator," and "safeguard," respectively. He stated that these areas represent both CHINA UNICOM's strengths and primary responsibilities, as well as the future direction of internet development. The company aims to build upon its connectivity foundation to develop a core in computing power, fulfill its security responsibilities through quality services, and transition from a "basic pipeline provider" to a "comprehensive digital services provider," positioning itself as a national leader in information and communications.
Reflecting on the importance of strategic focus, Chairman Dong remarked that CHINA UNICOM's growth over more than 30 years, from a small and weak player to a strong and promising enterprise, has been driven by clear, consistent strategies, well-defined measures, and dedicated execution. This emphasis on strategy will continue, with the company adhering to a principle of "progress through stability." The ultimate goal for CHINA UNICOM is to "remain healthy and vibrant," underscoring a focus on sustainable strength rather than rapid expansion or sheer size.
Slower Growth: Exploring New Opportunities In 2025, CHINA UNICOM's operating revenue reached 392.2 billion yuan, a slight increase of 0.7% year-on-year, while net profit grew by 1.07% to 9.127 billion yuan. This represents a slowdown compared to the previous year's growth rates of 4.56% for revenue and 10.49% for profit. General Manager Jian Qin explained that the company is currently in a transition phase, with traditional market dividends fading and the industry reaching a relative saturation point. CHINA UNICOM has identified four new strategic directions and is reallocating resources accordingly, expressing overall confidence in this approach. The strategy involves promoting orderly competition, strengthening traditional businesses, and enhancing emerging services to drive better performance.
Director Tang Yongbo noted that the entire industry faced challenges in 2025, including saturated communication demand and diminishing traffic红利. While AI is growing rapidly, it will take time to achieve scale. Leveraging its traditional strengths in scale, CHINA UNICOM aims for qualitative improvement and reasonable quantitative growth in 2026, the first year of the "15th Five-Year Plan." Significant potential remains in areas such as the household market, particularly AI-enabled and broadband-integrated services, as well as silver economy, consumer IoT, and even pet-related markets. Furthermore, AI development is driving explosive growth in demand for computing power. Starting from the "15th Five-Year Plan," operators may shift from relying solely on traditional communication services to creating new revenue streams through innovation and technological exploration.
CHINA UNICOM's international business revenue grew over 9% to 13.6 billion yuan in 2025, accelerating its global expansion and enhancing its international capabilities. Efforts in quality and efficiency improvements have optimized resource utilization, improved asset returns, and significantly reduced costs. However, Chairman Dong expressed dissatisfaction with the single-digit growth in international revenue, stating a desire for double-digit growth in the future.
Capital Expenditure: Precise Allocation CHINA UNICOM's capital expenditure has declined annually since 2022, reaching 54.2 billion yuan in 2025. The ratio of capital expenditure to service revenue decreased from 23% in 2022 to 16% in 2025. The budget for 2026 is set at 50 billion yuan, a 7.7% decrease from 2025. Chief Financial Officer Li Yuzhuo explained that the 2026 budget will focus on strengthening new infrastructure aligned with the company's strategic priorities and business needs. She emphasized that capital expenditure should not be evaluated solely on absolute value but must consider industry dynamics. Rapid technological iteration, improving scale efficiencies, declining equipment prices, and AI-enhanced engineering management have all contributed to more precise cost control and optimization.
The financial report shows that CHINA UNICOM's simplified network operations have led to annual OPEX savings of 13.5%. In 2026, computing power investments will account for over 35% of total capital expenditure as network construction shifts from expansion to quality enhancement. Investments will prioritize national strategies like "East Data, West Computing," AI innovation, and integrated domestic-international demands. The company will continue rigorous cost control, focusing on reducing unit costs to support high-value services and improve capital efficiency.
CHINA UNICOM's free cash flow increased by 24.7% to 37.3 billion yuan in 2025, strengthening the company's financial resilience for long-term development. Li Yuzhuo noted that the improvement in operating cash flow exceeded expectations, largely due to effective accounts receivable management. The growth rate of accounts receivable decreased by over 25 percentage points, with a reduction of 10 billion yuan in incremental receivables and a 1.2 percentage point improvement in collection rates for existing receivables. Although the bad debt ratio remained around 32%, slightly higher than the previous year, provisions for credit impairments decreased significantly, indicating an overall improvement in receivables management. For 2026, cash flow management will focus on "increasing revenue and reducing expenditure."
Satellite Business: Focusing on Four Areas The report highlights CHINA UNICOM's efforts to capture opportunities in the low-altitude economy by building an integrated low-altitude intelligent network for communication, sensing, navigation, and computing. The company has obtained a license for satellite mobile communication services and is promoting direct satellite-to-phone connectivity. Active promotion of satellite links is accelerating commercial scale-up. Low-orbit satellite internet networks are expanding rapidly, covering remote areas, oceans, and vessels, thereby extending satellite communication capabilities to a wider range of terminals and service scenarios.
Vice President Hao Liqian detailed the satellite services available within the CHINA UNICOM app, including a "Satellite Feature Pack" for making and receiving satellite calls and messages—with the first two minutes free—and a "Beidou SMS Monthly Pack," which is free until June 30, with various packages to be introduced later. He outlined four key future capabilities for the satellite business: constructing the "Unicom Star System" to utilize satellite resources; building the "Unicom Star Hub" for ground services; developing "Unicom Star Shine" for seamless cross-satellite network selection; and creating the "Unicom Space Mall" to decouple satellites from payloads and API-fy computing power and network resources. Key application scenarios include direct phone-satellite connectivity, in-vehicle satellite applications, in-flight satellite services, and international satellite applications.
In the low-altitude sector, Hao reported that CHINA UNICOM signed nearly 200 contracts in 2025, with contract value increasing sevenfold. Connections generated by low-altitude services grew by 120%, with benchmark projects in provinces like Guangdong, Henan, Zhejiang, Shanghai, and Jiangsu.
Dividends and Capital: Nurturing the "Cash Cow" Following an adjustment in value-added tax categories for telecom services in February, CFO Li Yuzhuo acknowledged that the policy change would temporarily impact industry revenue and profit growth. In response, CHINA UNICOM will intensify its focus on the four core areas and enhance精细化管理. She emphasized that achieving the 2025 results was particularly challenging given the difficulties faced by the industry.
Regarding dividends and capital utilization, Chairman Dong outlined three priorities: maintaining CHINA UNICOM's competitiveness by nurturing a strong "cash cow" through stable core operations; leveraging existing advantages to outperform the market and enhance profitability; and balancing reinvestment for growth with shareholder returns. He referenced a saying from the company's 2026 work conference—"Change is the closing and opening of a door; communication is the endless flow back and forth"—symbolizing CHINA UNICOM's commitment to open cooperation and shared development within the industry.
In 2026, CHINA UNICOM is committed to expanding and densifying its "connectivity," accelerating and sharpening its "computing power," refining and personalizing its "services," and strengthening and securing its "safety." By pursuing a differentiated path, the company aims to achieve new milestones in high-quality development, creating greater value for shareholders, customers, and society.
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