China Unicom 2001 Interim Results (clean) · More Favorable Revenue Structure Service revenue yoy...
Transcript of China Unicom 2001 Interim Results (clean) · More Favorable Revenue Structure Service revenue yoy...
2011Interim Results24 August 2011
www.chinaunicom.com.hk
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Management Present
Mr. Lu Yimin Executive Director & President
Mr. Tong Jilu Executive Director & Senior VP
Mr. Chang Xiaobing Chairman & CEO
Mr. Li Fushen Executive Director & CFO
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Agenda
Overview
Operating Performance
Financial Results
4
Overall Results
0.124
2,791
30,723
39,913
39,111
79,982
39,979
41,573
82,510
1H2010
0.039
868
28,676
39,837
43,266
83,836
39,884
47,978
88,595
2H2010
25.1%44.3%60,000of which: Mobile
2.6%2.4%40,936Fixed-line
188.9%-8.9%0.113EPS (RMB)
203.8%-5.5%2,637Net Profit
11.6%4.2%32,017EBITDA
2.7%2.5%40,903Fixed-line
13.2%25.3%48,998of which: Mobile
7.8%13.0%90,350Service Revenue
14.4%22.9%101,385Operating Revenue
HoHYoY1H2011(RMB millions)
(3)
(2)
(4)
(1) All financial data in this document exclude the effects of deferred fixed-line upfront connection fees (RMB130 mn in 1H2010, 62 mn in 2H2010 and 15 mn in 1H2011), unless otherwise specified
(2) Operating revenue from external customers, and not equal to the sum of mobile and fixed-line operating revenues due to non-allocated revenue(3) Service revenue is not equal to the sum of mobile and fixed-line service revenues due to non-allocated revenue(4) Net profits for 1H2010, 2H2010 and 1H2011 would be RMB2,921 mn, 930 mn and 2,652 mn, respectively, if including deferred fixed-line upfront
connection fees(5) Including deferred fixed-line upfront connection fees
(1)
(5)
5
28
79,982
9,234 6533,578 (3,125)
90,350
5
Rapid Growth in Revenue & Steady Increase in Market Share
1H2010
3G GSMLocal
Access
1H2011
Internet & Data
ICT & Others
(1) Including broadband, data comm. & other Internet businesses (2) Including local voice, long distance, fixed-line VAS and interconnection(3) The Company’s operating revenue over the sum of operating revenues released by the three listed telcos (excluding fixed-line
upfront connection fees)
Revenue Growth: Higher Than Industry AverageRevenue Growth: Higher Than Industry Average(RMB millions)
driven by :
+11.5pp +4.5pp+0.8pp -3.9pp 0.1pp
(1)
(1)
(2)
Rising Market ShareRising Market Share (3)
1H2010 1H2011
+1.8pp
19.7%21.5%
61H2010 1H2011
Non-voice
Voice
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More Favorable Revenue Structure
Service revenue yoy up 13.0%, mobile proportion of service revenue yoy up 5.3pp to 54.2%
Non-voice proportion of mobile service revenue yoy up 3.6pp to 35.7%, and non-voice proportion of fixed-line service revenue yoy up 8.5pp to 62.5%
Service Revenue & Its MixService Revenue & Its Mix
1H2010 1H2011
Non-voice
Voice
Mobile Service RevenueMobile Service Revenue(RMB millions) (RMB millions)
Fixed-line Service RevenueFixed-line Service Revenue(RMB millions)
32.1%35.7%
67.9% 64.3%
39,11148,998
(1) Non-allocated revenue(2) Including voice usage, monthly fee and interconnection revenues
(2)
62.5%
37.5%
39,913
54.0%
46.0%
40,903
(2)
1H2010 1H2011
48.9%
45.3%
54.2%Mobile
Fixed-line
79,982
90,350
13.0%
25.3%
1.2% 0.5%(1)(1)
2.5%49.9%
7
23,945
7,560 2,9943,506
4,4755,410
1H10 1H113Q10 4Q10 1Q11 2Q11 1H2010 2H2010 1H2011
42.844.5
46.8
5.2%
9.3%
4,3555,679
7,50213,180
3,946 3,294
(RMB)(’000)
3G Scale Developmentdriving quality and robust growth in mobile business
Quarterly 3G Subscriber GrowthQuarterly 3G Subscriber Growth
Quarterly 3G Revenue GrowthQuarterly 3G Revenue Growth(RMB millions)
(1) Average qoq growth rate
Further Rising 3G ContributionFurther Rising 3G Contribution
Continuously Rising Mobile ARPUContinuously Rising Mobile ARPU
8.4%13.2%
17.7%
26.9%
4.8%10.1%
1H2010 2H2010 1H2011
(1)
31.6%
1H10 2Q111H11 3Q10 4Q10 1Q11
21.8%(1)
3G share of mobile service revenue
3G share of mobile subscribers
8
17,172
14,471
42.0%36.3%
1H2010 1H2011Broadband revenueas % of fixed-line service revenue
52,32243,759
1H2010 1H2011
Rapidly Growing Broadband Users Rapidly Growing Broadband Users
Further Rising Broadband Revenue Share
Further Rising Broadband Revenue Share
(’000)
(RMB millions)
Stable Growth in Fixed-line Service Revenue
Stable Growth in Fixed-line Service Revenue
(RMB millions)
1H2010 1H2011
39,91340,903
2.5%19.6%
18.7%
Continued Rapid Growth in Broadbandfacilitating stable development in fixed-line business
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Improving Net Profit and Rising Cash Flow
Improvement in Quarterly Net ProfitImprovement in Quarterly Net Profit
2,483
154(426)
1,294
1,657
1,134
2,6372,791
1H10 1H11 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
Continuous Growth in Cash Flow from Operations
Continuous Growth in Cash Flow from Operations
(RMB millions)
31,08934,352
1H2010 1H2011
10.5%
(RMB millions)
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No. of BTS
Continue to build 3G network
Optimize & improve GSM network
Push forward construction of optical fiber network
+32.8%203k
+39.0%614kNo. of Carrier Sectors
+13.7%348k
+12.2%1,714k
Launched HSPA+ in 56 key cities
+26.9%74.25 mn
76% +4pp
Expand overall coverageYE Target: cover economically developed towns and key transport linesImprove indoor coverageYE Target: cover nationwide key buildings
Continue to improve overall coverage to provide coverage support to 3G network
Accelerate the construction of optical fiber network to raise broadband speedYE Target: over 40 million families with 20Mbps+ broadband access capabilities
1H2011: further enhanced network capabilities1H2011: further enhanced network capabilities
2H2011: continue to enhance network buildup2H2011: continue to enhance network buildup
No. of BTS
No. of Carrier Sectors
No. of BB Access Ports
Of which % of FTTx Ports
Further Enhanced Network Capabilities
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accelerate business development to achieve higher revenue growth
11
increase operational efficiency to ensure continuous improvement in profitability
enhance customer service to improve customer perception
Innovation & Service Leader for
Information Life
continue to promote innovation to enhance corporate dynamics and competitiveness
focus on key markets to rapidly expand subscriber base
1
2
3
4
5
2H2011 Outlookrealize breakthrough in scale development and further increase market share
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Operating Performance
Overview
Financial Results
Agenda
13
1H2011 1H2010 YoY
Mobile
Subscribers (’000) 181,610 156,962 15.7%
of which: GSM 157,665 149,402 5.5%
3G 23,945 7,560 216.7%
ARPU (RMB) 46.8 42.8 9.3%
of which: GSM 38.3 39.8 -3.8%
3G 117.5 133.0 -11.7%
Fixed-lineLocal Access
Subscribers (’000) 95,458 100,852 -5.3%
of which: Fixed-line 84,986 84,606 0.4%
PHS 10,472 16,246 -35.5%
ARPU (RMB) 26.4 29.6 -10.8%
Fixed-lineBroad-band
Subscribers (’000) 52,322 43,759 19.6%
ARPU (RMB) 57.6 58.5 -1.5%
Service RevenueService Revenue(RMB millions)
(1) Non-allocated revenue
958 449
39,913 40,903
39,11148,998
1H2010 1H2011
Mobile
Fixed-line
(1)(1)
79,982
90,35013.0%
25.3%
2.5%
Overall Operating Performance
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37,1056,299
1H2010 1H2011
46.842.8
298.3271.2
1H2010 1H2011ARPU (RMB) MOU (minutes)
13,180
35,165
35,818
3,946
39,111
48,998
1H2010 1H2011
(RMB millions)
Mobile Service Revenue & Its MixMobile Service Revenue & Its Mix
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181,610156,962
1H2010 1H2011
Mobile SubscribersMobile Subscribers
Mobile ARPU & MOUMobile ARPU & MOU
(’000)
9.3%
15.7%
10.0%
25.3%
GSM 3G
1.9%
234.0% Mobile Data TrafficMobile Data Traffic(Million MB)
489.1%
Mobile Businessrapidly growing revenue with more favorable structure
15
242.5229.8
259.5260.2
1H2010 1H2011Voice Usage (bn minutes)M OU (minutes)
24,835 24,755
10,022 10,936
308 127
35,165 35,818
1H2010 1H2011
157,665149,402
38.339.8
1H2010 1H2011Subs ('000) ARPU (RMB)
15
(RMB millions)
5.5%
-3.8%
9.1%
1.9%
-0.3%
Others Voice VAS
Voice Usage & MOUVoice Usage & MOU
5.5%
-0.3%
7,330
2,058
256.2%
(Million MB)
1H2010 1H2011
Service RevenueService Revenue
Subscribers & ARPUSubscribers & ARPU GSM Data TrafficGSM Data Traffic
Transform GSM sales and marketing model to improve growth quality and sales and marketing efficiency
Differentiate products and tariff plans
Raise customer loyalty to reduce churn rate
2H2011 Strategy2H2011 Strategy
Mobile BusinessGSM business maintained stable
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further expand targeted customer segments
utilize resources more efficiently and raise the share of contracted subscribers
push forward win-win cooperation and increase incentives of third-party distribution channels
leverage strong eco-system to introduce more diversified smartphones to meet needs of different
customer segments
launch more differentiated products with WCDMA advantages
3G Growth Strategy in 20113G Growth Strategy in 2011Seize O
pportunities to Realize B
reakthrough in 3G
Scale Developm
ent
Mobile Businessseize opportunities to realize breakthrough in 3G scale development
17
119.9133.0
117.5
1H2010 2H2010 1H2011
1H2010 1H2011
(RMB millions)
17
(RMB)
51.2%48.8%
Voice Non-voice
21.0%15.7%
24.1%
End of 2010 End of Mar2011
End of Jun2011
659.8638.5 660.7
1H2010 2H2010 1H2011
3,946
13,180
MOUMOU
Proportion of Contracted UsersProportion of Contracted UsersARPUARPU
Revenue Growth & MixRevenue Growth & Mix
-2.0%
-11.7%(as % of total 3G subscribers)
0.1%
3.5%(Minutes)
Mobile Businessrapid growth in 3G business
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12,5534,240
29,775
1H2010 2H2011 1H2011
Prosperous Mobile Internet Eco-systemProsperous Mobile Internet Eco-system3G Data Traffic3G Data Traffic
Avg. 3G Data Usage/User/MonthAvg. 3G Data Usage/User/Month
197143
266
1H2010 2H2010 1H2011
35.0%
(MB)
(Million MB)
602.2%
86.0%
137.2%
Self-developed applications
Third-party applications
… …
Mobile Business3G data traffic continued to rise significantly
More and more mainstream Internet applications go mobile
Mobile Internet applications are emerging rapidly
Weibo subscribers exceed 200 mn in China
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screen≥3.5 inches
WO•3G RMB1,000 Smartphonecapacitive
touch screen
CPU ≥600MHz
price≤RMB1,000
ZTE V880 Coolpad W706 Lenovo A60
…
6,0425,183
2,045659
3,638
4,551
8,2586,669
3,250
679
First Half June
Second Half June
First Half July
Second Half July
First Half August
Daily Sales of First RMB1,000 Smartphone V880
Average daily sales Average daily additions of 3G contracted subscribers
Launched additional 30+ strategic 3G handsets to meet needs of different customer segments
First RMB1,000 wide-screen smartphone launched this June has been well received by the market, and has become an important force to drive 3G growth in mass market
As of 15 August, total sales of V880 ﹥350,000Highest sales in a single day﹥10,000Total contracted subscribers acquired﹥260,000
Mobile Businessmore diversified 3G handsets to drive subscriber growth
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1,512
6,809
5,088
2,3882,172
New Breakthrough in Third-party ChannelsNew Breakthrough in Third-party Channels
Signed in Suning, Telephone World,
Five Star Appliance, 360buy
Signed in Guomei
Signed in 5 regional chain store firms in Guangdong
Signed in FunTalk,
HiSap
Signed in 75 regional chain
store firms
Jan 2011 Mar 2011 Apr 2011 Jun 2011 Jul 20112010
Rapidly Rising Number of Strategic Chain Stores
Push forward cell-based all-channel all-service sales and marketing practices
Fully promote the transformation of sales outlets as well as experiential marketing practices
Further expand regional third-party channels and enhance cooperation with third-party channels
2H2011 Strategy2H2011 Strategy
By cooperating with more and more national and regional chain stores, the number of strategic chain stores has reached 6,809
Proportion of 3G subscribers acquired by third-party channels reached 51% in 1H2011, yoy up 16pp
Mobile Businessenhanced sales capabilities of distribution channels
21
Local Access
95,458100,852
26.429.6
1H2010 1H2011Subs ('000) ARPU (RMB)
4,234 5,263420 805
20,788 17,663
14,471 17,172
40,90339,913
1H2010 1H2011
21
(RMB millions)
(1) Including local voice, long distance, fixed-line VAS and interconnection
18.7%
Service Revenue & Its MixService Revenue & Its Mix
-15.0%
(1)Broadband
2.5%
24.3%
Broadband Subscribers & ARPUBroadband Subscribers & ARPU
52,32243,759
57.658.5
1H2010 1H2011Subs ('000) ARPU (RMB)
19.6%
Local Access Subscribers & ARPULocal Access Subscribers & ARPU
-5.3%
ICT
91.7%
Fixed-line Businessrapid growth in broadband offset the decline in fixed-line voice
Data Comm. & Others
22
Penetration rate among BB residential subscribers:
8.7%
“WO Family”: Rising Penetration“WO Family”: Rising Penetration
3.70 mnSubscribers:
Automotive information
Stock trading
Mobile OA
Govt. enforcement
Monitoring & surveillance
Capturing leading positions in the following industry applications, which helped develop more than 3 million subscribers in 1H2011
automotive aviation central govt.-
owned companies
securities insurancebanking
“WO Business”: Gaining Momentum“WO Business”: Gaining Momentum
Enhance sales capabilityEnrich product offeringsImprove customer perceptionPromote convergence of 3 networks
Gaining influence in the following sectors/segments:
2H2011:realize scale development
Business Integrationsteadily rising penetration of “WO Family” and “WO Business”
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提升客户感知,重塑品牌形象Increase Expansion Efforts on Youth Market Increase Expansion Efforts on Youth Market
Promote information applications
Promote business
integration
Highlight WCDMA
advantages
Rich 3G handset offerings and attractive tariffs and subsidies Free assigned data package to promote data consumption
Increase WLAN coverage, and promote cross-sales of broadband and 2G/3G products
Optimize sales &
marketing system
Such as campus VPN, integrated campus information platform
Accelerate buildup of distribution channels, and enhance promotion of relevant products via e-channels Increase sales and customer service capabilities of distribution channels
Assigned data applications: WO YOU, mobile music, mobile reading, video sharing
15 handsets offered for WO Pai 3G packages
60 minutes voice (local & long distance integrated) + 300 minutes voice (to 3 assigned Unicom phone numbers) + 100 SMS + 60MB + 500MB (for assigned data applications)
WO Pai RMB36 PackageExample
Business Integrationintroducing “WO Pai” brand in 2H to expand into youth market
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Operating Performance
Overview
Financial Results
Agenda
25
4.4% 3.4%
10.4% 8.7%
9.4% 14.8%
7.1%8.4%
1H2010 1H2011
Others
Mobile Data
SMS
Voice VAS
21.3%5,105Interconnection
44.3%60,000Operating Revenue
18.2%26,403of which: Voice & Monthly Fee
(RMB millions) 1H2011 YoY
Service Revenue 48,998 25.3%
VAS 17,310 41.2%
Mobile RevenueMobile Revenue
31.3%35.3%
-11.9%2,389Interconnection
-4.4%2,313VAS
2.4%40,936Operating Revenue
19.3%22,123Internet & Data
(RMB millions) 1H2011 YoY
Service Revenue 40,903 2.5%
of which: Voice 12,961 -17.2%
Fixed-line RevenueFixed-line Revenue
VAS Composition17,172
14,471
42.0%36.3%
1H2010 1H2011as % of fixed-line service revenue
(RMB millions)Broadband Service Revenue
25(1) Revenue from external customers, excluding inter-segment revenue
(1)(1)
18.7%
Revenue and Its Composition
26
11.1%7.9%7.1%
14.3%
16.4%14.0%
12.3%15.5%
13.8%
32.3%28.0%
7.9% 7.7%
3.2%
1H2010 1H2011
26
19,047
+193
-51
+8,625
+627
+4,822
+948
+1,275
+1,710
+1,284
+19,291
YoY (RMB millions) 1H2011 YoY%
Operating expenses 97,719 24.6%
Interconnection charges 7,763 19.8%
Depreciation & amortization
28,351 6.4%
Networks, operations & support
14,034 10.0%
Employee benefit 12,520 8.2%
Adjusted selling & marketing
16,653 40.8%
G&A and others 7,162 9.6%
Adjusted cost of telecom products sold
11,236 330.3%
Net finance costs 773 -6.2%
Net other income 601 47.3%
Total costs & expenses 97,891 24.2%
Operating Expenses Structure(as % of operating revenue)
Operating Expenses Structure(as % of operating revenue)
Interconnection charges
Depreciation & amortization
Networks, operations & support
Employee benefit
Adjusted selling & marketing
G&A and others
Adjusted cost of telecom products sold
95.1% 96.4%
(1)
(1)
Costs & Expenses and Their Structure
(1) In 1H2011, 3G handset subsidy of RMB3.06 billion was recognized as the loss of telecom products sold (Sales of Telecom Products minus Cost of Telecom Products Sold). For analysis purpose, the above subsidy expense was deducted from Cost of Telecom Products Sold and added to Selling & Marketing Expense.
2727
14,03412,759
13.8%15.5%
1H2010 1H2011
28,35126,641
28.0%32.3%
1H2010 1H2011
Depreciation & AmortizationDepreciation & Amortization
(RMB millions)
Continuous expansion of 3G and broadband networks led to rising depreciation. In 1H2011, depreciation & amortization yoy up RMB1.71 billion, or 6.4%.
Due to expanded networks and rising energy and rental prices, networks, operations & support expense yoy up RMB1.28 billion, or 10.0% in 1H2011.
Networks, Operations & SupportNetworks, Operations & Support
(RMB millions)
as % of operating revenue
6.4% 10.0%
Analysis of Major Expenses (1)
28
4,7344,479
11.6%11.2%
1H2010 1H2011
1,1242,004
2,878
2,6813,057
491
5,935
4,685
1,615
1H2010 2H2010 1H2011
5,9875,741
16.7%16.3%
1H2010 1H2011
491
3,057
13,596
11,340
1H2010 1H2011
Total S&M + 3G SubsidyTotal S&M + 3G Subsidy(RMB millions)
14.3%16.4%
GSM S&M ExpensesGSM S&M Expenses(RMB millions)
3G S&M + 3G Subsidy3G S&M + 3G Subsidy(RMB millions)
as % of operating revenue
as % of GSM service revenue
as % of 3G service revenue
S&M expenses3G handset subsidy
16,653
40.8%
11,831
4.3% 40.9%
45.1%
61.3%
190.1%
26.7%
Fixed-line S&M ExpensesFixed-line S&M Expenses(RMB millions)
as % of fixed-line service revenue
5.7%
Analysis of Major Expenses (2)
29
868
2,792 2,637
1H2010 2H2010 1H2011
28,67630,723 32,017
31.6%32.4%37.2%
1H2010 2H2010 1H2011
EBITDA & EBITDA MarginEBITDA & EBITDA Margin Net ProfitNet Profit
-5.5%
1H EBITDA yoy up 4.2%
Net Profit of RMB 2.64 billion, yoy down 5.5% but improved HoH
4.2%
29
(RMB millions) (RMB millions)
EBITDA and Net Profit
30
8,384
-2,2271H2010 1H2011
34,35231,089
1H2010 1H2011
30
Cash Flow from OperationsCash Flow from Operations
(1)
(1)
Free Cash FlowFree Cash Flow
10.5%
(2)
+ 10.61 bn
(1) Including IT systems, VAS platforms, fixed-line(2) Cash flow from operations minus CAPEX
19,470 6,320 of which: 3G
3,410 1,608 GSM
2011 Budget1H2011(RMB millions)
73,800 25,968 Total CAPEX
12,690 1,560 IT Systems & Others
19,480 5,537 Infrastructure & Transport Networks
18,750 10,943 Broadband & Data
22,880 7,928 Mobile Network
CAPEXCAPEX
(1)
(RMB millions)
(RMB millions)
Cash Flow and CAPEX
31
Liabilities-to-Assets RatioLiabilities-to-Assets Ratio Interest-bearing Debt & Debt-to-Cap Ratio
Interest-bearing Debt & Debt-to-Cap Ratio
95,90497,042
31.7%32.0%
31 Dec 2010 30 Jun 2011Debt-to-cap ratio
53.0%53.4%
31 Dec 2010 30 June 2011
Balance sheet remained solid, with liabilities-to-assets ratio down 0.4pp in 1H2011
Total interest-bearing debt of RMB 95.9 billion, and debt-to-capitalization ratio down 0.3pp in 1H2011
31
(RMB millions)
Solid Balance Sheet
Thank you!
China Unicom (Hong Kong) Limited
24 August 2011
www.chinaunicom.com.hk
33
2,922 2,652 Net Profit(20,977)(35,051)SG&A and Others
(874)(857)Taxation(11,572)(12,520)Employee Benefit
3,796 3,509 Profit Before Tax(12,759)(14,034)Networks, Operations & Support
408 601 Net Other Income (Expenses)(26,641)(28,351)Depreciation & Amortization
40 120 Interest Income(6,479)(7,763)Interconnection Charges
(864)(893)Finance CostOperating Expenses:
4,212 3,681 Operating Profit:82,640 101,400 Total Operating Revenue
(78,428)(97,719)Total Operating Expenses2,528 11,035 Sales of Telecom Products
(3,102)(14,293)Cost of Products Sold80,112 90,365 Service Revenue
(11,340)(13,596)Including:Selling & MarketingRevenue:
1H2010 1H2011 1H2010 1H2011 (RMB millions)
Appendix I: Income Statement
34
441,453439,913Total Liabilities and Equity441,453439,913Total Assets
205,841206,960Shareholders’ Equity42,20838,904Total Current Assets
235,612232,953Total Liabilities22,49518,042Cash and Cash Equivalent
198,237195,842Total Current Liabilities:5,1154,794Prepayments & Others
28,90632,860Advances from Customers9,28610,435Accounts Receivable, net
36,72734,856Short-term Loans3,7284,089Inventories
23,00024,000Short-term BondsCurrent Assets:
1,4841,593Taxes Payable399,245401,009Total Non-current Assets:
97,65992,650Accounts Payable11,75311,894Other Assets
Current Liabilities:6,2149,989Available-for-sale Financial Assets
37,37537,111Total Non-current Liabilities:4,8405,617Deferred Tax Assets
33,55833,356Bonds & Convertible Bonds7,6077,566Leasing Prepayments
1,4621,449Long-term Bank Loans366,060363,172PPE, net
Non-current Liabilities:Non-current Assets:
31 Dec 201030 Jun 2011 (RMB millions)31 Dec 2010 30 Jun 2011 (RMB millions)
Appendix II: Balance Sheet (selected)
3535
32.028.4of which:Fixed lines
18.112.8PHS
7,56023,945Subscribers (’000)3G Business 133.0117.5ARPU (RMB)
638.5660.7Handset sub MOU (minutes)
1H2011 1H2010
GSM Business
Subscribers (’000) 157,665 149,402
ARPU (RMB)(1)
38.3 39.8
MOU (minutes)(1)
259.5 260.2
Voice revenue per minute (RMB) 0.102 0.108
Fixed-lineLocal Access
Subscribers (’000) 95,458 100,852
of which:Fixed lines 84,986 84,606
PHS 10,472 16,246
ARPU (RMB)(1)
26.4 29.6
Local voice usage (million pulses) (excluding Internet dial-up usage) 65,191 80,747
Long distance usage (million minutes) 11,205 13,730
Fixed-lineBroadband
Subscribers (’000) 52,322 43,759
ARPU (RMB)(1)
57.6 58.5
(1) Average number of subscribers for a period = sum of all monthly average number of subscribers in the period divided by total number of months in the period; average number of subscribers for a given month = (the number of subscribers at the end of previous month + the number of subscribers at the end of the given month) / 2
Appendix III: Key Operating Metrics
36
Certain statements contained in this announcement may be viewed as “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 (as amended) and Section 21E of the U.S. Securities Exchange Act of 1934 (as amended). Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors, which may cause the actual performance, financial condition or results of operations of the Company to be materially different from any future performance, financial condition or results of operations implied by such forward-looking statements. These risks, uncertainties and other factors include: the uncertainties in the development of telecommunication industry and technology in the PRC; future growth of the market demand for telecommunication services; changes in the competitive environment, regulatory environment and the PRC government’s regulatory and/or industry policy, the effects of tariff reduction initiatives; the availability, terms and deployment of capital; changes in assumptions upon which the Company has prepared its projected financial information and capital expenditure plans; the effect of the Company’s proposed adjustment in its business strategies relating to the PHS business; changes in political, economic, legal and social conditions in the PRC; the potential continued slowdown of economic activities at home and abroad, and other factors that will affect the execution of our business plans and strategies as well as our business condition and financial results.
Forward-looking Statements