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Communications

China Unicom (Hong Kong) Ltd.

Company Background

China Unicom (Hong Kong) is one of China's top three telecommunications companies. Its parent company, state-owned China United Network Communications Group, was established in 1994 and is supervised by the State-Owned Assets Supervision and Administration Commission. China Unicom took over core assets of its parent company and listed on the stock market.

China Unicom entered the mobile phone business in 2002. In 2009, it became the first company in China to introduce 3G (third-generation) mobile services and has since spearheaded efforts to spread the service by building base telecommunications stations and other related infrastructure throughout China.

Of China's total 1.3 billion mobile phone users, a little more than 20% subscribe to China Unicom's service, giving it the second-largest market share after China Mobile. China Unicom has also become a major player in the global telecommunications market and aims to expand its business in other Asian countries and in Africa.

The Chinese government is currently promoting 4G mobile services. China Unicom is building infrastructure compatible with the FDD-LTE mobile standard, as is China Telecom. China Unicom is trying to differentiate its service from those of its rivals by combining its existing 3G service with a proprietary high-speed data communication service.

China United Network Communications Group is China Unicom's leading shareholder, owning a little more than 60% of its outstanding shares.

Business Summary

China Unicom (Hong Kong) Ltd. is an investment holding company, which engages in the provision of voice usage, broadband and mobile data services, and data and internet application services through its subsidiaries. It also offers other value-added services, leased lines and associated services, and sales of telecommunications products. The company was founded on February 8, 2000 and is headquartered in Hong Kong.

Financial Highlights

Dec 2018 HKDUSD
Revenue344,530.39M43,958.96M
Gross Profit84,921.79M10,835.25M
Operating income15,734.28M2,007.55M
Income before tax15,493.84M1,976.87M
Net income12,077.87M1,541.02M
EBITDA105,488.64M13,459.39M
Diluted EPS0.390.05
Dividends Per Share0.150.01
Total Assets623,616.84M79,651.16M
Total liabilities265,218.56M33,874.91M
Total equity357,983.19M45,723.23M
Operating cash flow110,423.08M14,088.98M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 358,279.43M 341,734.58M 320,376.85M 316,901.71M 344,530.39M
Gross Profit 101,077.53M 81,069.28M 70,163.53M 70,452.45M 84,921.79M
Operating income 25,210.86M 15,737.97M 3,561.33M 8,558.21M 15,734.28M
Income before tax 20,049.63M 18,299.91M 498.91M 2,989.95M 15,493.84M
Net income 15,171.57M 13,028.02M 730.26M 2,107.84M 12,077.87M
EBITDA 118,175.91M 110,392.81M 93,301.72M 97,913.22M 105,488.64M
Diluted EPS 0.61 0.54 0.03 0.08 0.39
Dividends Per Share 0.25 0.20 0 0.06 0.15
Total Assets 682,629.29M 729,674.90M 688,946.50M 692,199.58M 623,616.84M
Total liabilities 398,923.53M 453,717.24M 434,935.03M 326,847.65M 265,218.56M
Total equity 283,705.76M 275,957.66M 253,704.66M 364,995.40M 357,983.19M
Operating cash flow 111,313.15M 104,446.20M 87,546.09M 98,345.62M 110,423.08M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 46,201.69M 44,080.14M 41,272.60M 40,665.87M 43,958.96M
Gross Profit 13,034.38M 10,457.08M 9,038.83M 9,040.69M 10,835.25M
Operating income 3,251.05M 2,030.03M 458.79M 1,098.21M 2,007.55M
Income before tax 2,585.48M 2,360.49M 64.27M 383.68M 1,976.87M
Net income 1,956.44M 1,680.47M 94.07M 270.48M 1,541.02M
EBITDA 15,239.29M 14,239.50M 12,019.61M 12,564.54M 13,459.39M
Diluted EPS 0.07 0.07 0.00 0.01 0.05
Dividends Per Share 0.03 0.02 0 0.00 0.01
Total Assets 88,026.11M 94,149.77M 88,860.20M 88,547.14M 79,651.16M
Total liabilities 51,441.81M 58,543.02M 56,097.84M 41,810.80M 33,874.91M
Total equity 36,584.30M 35,606.74M 32,722.78M 46,690.72M 45,723.23M
Operating cash flow 14,354.31M 13,472.45M 11,278.14M 12,620.03M 14,088.98M

Valuation Measures

Dec 2018
PER21.18
ROA1.83%
ROE3.34%
Operating margin4.56%
Profit margin3.50%

Key executives

  • Chairman & Chief Executive Officer: Xiao Chu Wang
  • President & Executive Director: Guo Hua Li
  • Chief Financial Officer & Executive Director: Ke Bing Zhu
  • Executive Director & Senior Vice President: Guang Lu Shao
  • Senior Vice President: Yun Jun Fan

Shareholders

  • China United Network Communications Ltd. (53.5%)
  • China State-Owned Assets Supervision & Admn Commission (27.1%)
  • The Vanguard Group, Inc. (0.6%)
  • BlackRock Fund Advisors (0.5%)
  • FIL Investment Management (Hong Kong) Ltd. (0.3%)
  • Norges Bank Investment Management (0.3%)
  • Wellington Management Co. LLP (0.3%)
  • State Street Global Advisors Asia Ltd. (0.1%)
  • Skagen AS (Investment Management) (0.1%)
  • Dimensional Fund Advisors LP (0.1%)

Contact Details

Related Companies

  • Shanghai Unicom
  • UNISK Information Technology Co., Ltd.
  • East Asia Netcom Ltd.
  • China Unicom Heilongjiang Branch
  • China Unicom (Australia) Operations Pty Ltd.
  • China Unicom (MYA) Operations Co. Ltd.
  • China Unicom (South Africa) Operations Pty Ltd.
  • China Unicom (Singapore) Operations Pte Ltd.
  • China Unicom (Japan) Operations Corp.
  • China Unicom Global Ltd.
  • China Unicom Dongguan Co. Ltd.
  • China United Network Communications Corp. Ltd.
  • Billion Express Investments Ltd.
  • China Unicom Jiangsu Co. Ltd.
  • Zhejiang Unicom

Competitors

  • China Mobile Limited
  • China Telecom Corp. Ltd. Class H
  • HKT Trust and HKT Ltd
  • GDS Holdings Ltd. Sponsored ADR Class A
Last Updated on 18 Oct, 2019

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