China Unicom H1 Profit Falls 34.6% YoY

China Unicom’s profit attributable to equity shareholders declined 34.6% year-on-year to RMB9.5 billion for the first half of 2026. Operating revenue rose 0.6% year-on-year to RMB201.4 billion. Service revenue decreased 0.2% year-on-year, reaching RMB178.0 billion.

The company cited value-added tax and timing of employee benefit expenses as factors impacting profitability, anticipating a narrowing of profit contraction for the full year. Net operating cash flow increased 13.6% year-on-year to RMB32.9 billion, a record for the period. Accounts receivable growth slowed compared to the same period last year.

China Unicom emphasized a shift towards new businesses, reporting computing power revenue of RMB41.9 billion, up year-on-year. Integrated subscriber penetration exceeded 78%, with integrated package ARPU remaining above RMB100.

The interim report indicates a mixed financial performance, with revenue growth offset by a substantial decline in profitability. The increase in cash flow and slowing accounts receivable growth suggest improving operational efficiency. These results occur against a backdrop of challenges in the broader industry, with the company focusing on connectivity, computing power, service, and security as key areas for development.