China United Network Communications Limited(600050) revenue growth hit an eight-year high

disclosure of annual report on 6 China Reform Health Management And Services Group Co.Ltd(000503) / 11. In 2021, the company achieved a revenue of 327.9 billion yuan, a year-on-year increase of 7.9%, an increase of 3.1 percentage points over the whole year of 2020, reaching an eight-year high; The net profit was 6.31 billion yuan, a year-on-year increase of 14.2%; EBITDA was 96.1 billion yuan, an increase of 2.3% year-on-year over last year, realizing a good new start in the 14th five year plan. The board of directors proposed to pay an annual final dividend of 0.0391 yuan per share (tax included), together with the paid interim dividend of 0.0488 yuan per share (tax included), the total annual dividend was 0.0879 yuan per share (tax included), an increase of 31.4% year-on-year.

In 2021, facing the complex and severe internal and external environment, China United Network Communications Limited(600050) grasp the general trend of digital transformation of economy and society, grasp new opportunities, embrace new changes and achieve new development, and upgrade the new strategy of “strengthening the foundation, adhering to integrity and innovation, integration and opening-up”, Clarify the new positioning of “national team of digital information infrastructure operation and service, main force of Digital China’s smart society construction, and vanguard of digital technology integration and innovation”, focus on the five main responsibilities and main industries of “big connection, big computing, big data, big application and big security”, and make full efforts to the main channel of digital economy. Over the past year, the company’s business situation has improved steadily, the economies of scale have achieved breakthroughs, the key businesses have made steady progress, the innovation ability has been effectively enhanced, the reform vitality has continued to glow, the operation efficiency has been significantly improved, and the company’s high-quality development has jumped to a new level. The company has actively practiced green and low-carbon development and achieved remarkable results in Network Co Construction and sharing. In 2021, the capital expenditure of the company was 69 billion yuan, and the investment efficiency was further improved. The annual free cash flow continued to be abundant, reaching 43 billion yuan, and the financial strength was further consolidated.

Looking forward to 2022, Liu Liehong, chairman of China United Network Communications Limited(600050) said that 2022 is the starting year for China United Network Communications Limited(600050) to fully implement the new strategic plan China United Network Communications Limited(600050) will continue to fully implement the new development concept, serve to build a new development pattern, promote high-quality development, focus on the construction of “network power, digital China and smart society”, take the implementation of the company’s “1 + 8 + 2” strategic planning system as the main line of work, focus on five main responsibilities and main businesses, stabilize growth, optimize network, grasp reform, improve capacity, strengthen coordination and prevent risks, and serve shareholders Create greater value for customers and society.

Value management, scale development and mobile business to a new level

The company takes value management as the top priority of business development. Closely following the development trend of 5g consumption digitization, online and integration, the company continues to deepen 5g leadership and drive the double improvement of mobile business value and scale. The company adheres to the fine operation, deepens the precise slicing and classification of users, and speeds up the promotion of stock users, especially medium and high-end users, to 5g; Improve the digital operation system and drive intensive and platform based intelligent operation with innovation; Continuously optimize the channel layout and make the new channel system of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) integration more robust; Accelerate the innovation and iteration of basic business products, strengthen the cooperation of product content and rights, and more than 10 million video RBT and communication assistant users; Cooperate with industry friends and upstream and downstream of the industrial chain to actively carry out 5g message friendly user experience and explore a new blue ocean of 5g ecology. In 2021, the main business income of mobile reached 164.1 billion yuan, a year-on-year increase of 4.8%; The net increase of mobile billing users reached 11.3 million, significantly better than the net decrease of 12.66 million in 2020. The user value continued to optimize, and the ARPU of mobile users reached 43.9 yuan, a year-on-year increase of 4.3%. 5g business accelerated, with 155 million 5g package users, and the penetration rate of 5g package users exceeded the industry average, reaching 48.9%.

“Three trillion” integrated development of fixed line broadband runs out of acceleration

With 5g leading the integration of “three trillion” as the core, the company promotes the integrated development of broadband mobile. Facing the “three trillion” upgrading opportunity period of 5g, broadband and Wi Fi, the company firmly grasped the technology upgrading window, took the “whole network integration” of connection, platform and application as the main strategy, consolidated the wide mobile integration base, met the needs of consumption scenario, intelligence and diversification, and systematically promoted the development of broadband and smart home business. In 2021, the company’s fixed line broadband access revenue increased by 5.2% year-on-year, reaching 44.8 billion yuan; The annual net increase of fixed line broadband users was 8.95 million, reaching a total of 95.05 million. The annual net increase of users reached a record high of the company; Broadband access ARPU remained basically stable, and the value management based on scale achieved remarkable results; The penetration rate of converged services among fixed line broadband users reached 71.5%, an increase of 7.4 percentage points year-on-year.

Build a high-quality network and consolidate the cornerstone of high-quality development

The company takes strengthening the construction of high-quality network as a key link related to the whole strategic area. The company focuses on building new digital information infrastructure capabilities and technological competitive advantages, adheres to deepening network innovation, strengthens network capability guarantee, and maintains the industry-leading average delay of backbone network. Through multiple measures such as network simplification, independent operation, co construction and sharing, AI application and fine management, the network operation efficiency has been continuously improved. In 2022, the company will continue to build 5g high-quality network, Gigabit broadband high-quality network, government enterprise high-quality network and high-quality computing network, promote intelligent network operation and further build the cornerstone of high-quality development of the company.

Innovative business releases kinetic energy and makes breakthroughs in intelligent operation

The company perseveres in the field of innovation and lays a solid foundation for the five major tracks with the base of Yunda Wuzhi chain. The company adheres to innovation driven, unswervingly tilts the allocation of resources to innovative talents, increases investment intensity, tamps the basic capacity platform, continues to strengthen the supply of self-developed products in the fields of digital government, smart city, industrial Internet, medical health, ecological environment and so on, greatly improves the autonomy of key core competencies, and achieves a breakthrough in the level of integrated application. During the reporting period, the company increased its investment in scientific research. The R & D expenses increased by 61.7% year-on-year, the proportion of scientific and technological innovation personnel reached 22%, and the number of authorized patents reached 1128, a significant increase of 120% year-on-year. The company led the localization and replacement of high-precision time-frequency synchronization chips for the first time, breaking the foreign monopoly on relevant technologies and providing reliable and low error time reference accuracy for 5g network.

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