China United Network Communications (600050) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 201.36 billion, up 0.6% year-over-year, while net profit attributable to shareholders dropped 34.8% to RMB 4.14 billion due to increased costs and a higher tax burden.

• Operating cash flow improved 13.6% year-over-year to RMB 33.28 billion, marking a multi-year high.

• The company maintained a stable user base, with mobile and broadband net additions exceeding 7 million, and international business revenue up 14% year-over-year.

Financial highlights

• Operating income: RMB 201.36 billion (+0.6% YoY); total profit: RMB 11.22 billion (-36.6% YoY).

• Net profit attributable to shareholders: RMB 4.14 billion (-34.8% YoY); basic EPS: RMB 0.133 (-34.5% YoY).

• Cash flow from operations: RMB 33.28 billion (+13.6% YoY).

• Gross margin and profitability declined due to higher labor costs and increased tax rates.

• Non-recurring gains (mainly asset disposals and government grants) contributed RMB 0.61 billion after tax.

Outlook and guidance

• Management expects annual labor costs to stabilize and profit decline to narrow in H2.

• Focus remains on high-quality growth, digital transformation, and expanding international and cloud services.