China Unicom (762) H1 2026 earnings summary

Executive summary

• Operating revenue for H1 2026 was RMB 201.4 billion, up 0.6% year-over-year, while service revenue was RMB 178.0 billion, down 0.2% year-over-year.

• Net profit attributable to equity shareholders was RMB 9.5 billion, a 34.6% decrease year-over-year, mainly due to VAT changes and timing of employee benefit expenses.

• Net operating cash inflow reached RMB 32.94 billion, up 13.6% year-over-year, marking a recent high.

• Organisational reforms reduced management departments by 38%, focusing on lean management and operational strength.

• No interim dividend was declared for H1 2026.

Financial highlights

• Operating costs rose 4.1% year-over-year to RMB 193.96 billion, with employee benefit expenses up 19.3%.

• Depreciation and amortisation decreased 0.8% to RMB 40.01 billion.

• Selling and marketing expenses fell 0.6% to RMB 18.06 billion.

• General and administrative expenses dropped 8.7% to RMB 1.97 billion.

• Profit before income tax was RMB 11.31 billion, down 36.4% year-over-year.

Outlook and guidance

• Profit contraction is expected to narrow significantly in the second half as employee benefit expenses stabilize.

• Focus on strengthening connectivity, computing power, service, and security.

• Commitment to creating greater value for shareholders, customers, and society.