CHINA UNICOM LTD

CIK:0001113866|SEC Filings

Consolidated Statements of Income ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020 CNY (¥) ¥ / shares	Dec. 31, 2020 USD ($) $ / shares	Dec. 31, 2019 CNY (¥) ¥ / shares	Dec. 31, 2018 CNY (¥) ¥ / shares
Profit or loss [abstract]
Revenue	¥ 303,838	$ 46,565	¥ 290,515	¥ 290,877
Interconnection charges	(10,574)	(1,620)	(11,513)	(12,579)
Depreciation and amortization	(83,017)	(12,723)	(83,080)	(75,777)
Network, operation and support expenses	(46,286)	(7,094)	(43,236)	(55,077)
Employee benefit expenses	(55,740)	(8,542)	(50,516)	(48,143)
Costs of telecommunications products sold	(26,862)	(4,117)	(26,412)	(27,604)
Other operating expenses	(70,237)	(10,764)	(64,480)	(62,561)
Finance costs	(1,747)	(268)	(2,123)	(1,625)
Interest income	1,366	209	1,272	1,712
Share of net profit of associates	1,588	243	1,359	2,477
Share of net profit of joint ventures	787	121	646	598
Other income – net	2,911	446	1,735	783
Income before income tax	16,027	2,456	14,167	13,081
Income tax expenses	(3,450)	(528)	(2,795)	(2,824)
Net income for the year	12,577	1,928	11,372	10,257
Attributable to:
Equity shareholders of the Company	12,493	1,915	11,330	10,197
Non-controlling interests	¥ 84	$ 13	¥ 42	¥ 60
Earnings per share for income attributable to equity shareholders of the Company during the year:
Basic earnings per share \| (per share)	¥ 0.41	$ 0.06	¥ 0.37	¥ 0.33
Diluted earnings per share \| (per share)	¥ 0.41	$ 0.06	¥ 0.37	¥ 0.33

Consolidated Statements of Cash Flows ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 CNY (¥)	Dec. 31, 2018 CNY (¥)
Cash flows from operating activities
Cash generated from operations	¥ 107,428	$ 16,464	¥ 94,952	¥ 93,882
Interest received	1,309	201	1,551	1,688
Interest paid	(1,832)	(281)	(2,521)	(2,457)
Income tax paid	(1,354)	(208)	(304)	(726)
Net cash inflow from operating activities	105,551	16,176	93,678	92,387
Cash flows from investing activities
Purchase of property, plant and equipment and right-of-use assets	(53,981)	(8,273)	(56,187)	(52,176)
Purchase of other assets	(4,675)	(716)	(4,355)	(4,590)
Proceeds from disposal of property, plant and equipment and other assets	1,647	252	1,512	1,090
Acquisition of financial assets measured at FVPL	(5,751)	(881)	(423)	(585)
Proceeds from disposal of financial assets measured at FVPL	4,268	654	531	36
Acquisition of debt securities measured at FVOCI (recycling)	(42,650)	(6,536)
Proceeds from disposal of debt securities measured at FVOCI (recycling)	19,511	2,990
Acquisition of other financial assets measured at amortized cost	(9,050)	(1,387)
Proceeds from disposal of other financial assets measured at amortized cost	9,050	1,387
Dividend received from financial assets measured at FVOCI (non-recycling)	210	32	205	203
Acquisition of interest in associates	(1,349)	(207)	(15)	(67)
Acquisition of interest in joint ventures	(117)	(18)	(137)	(1,000)
Proceeds from disposal of associates and a joint venture	19	3
Dividends received from associates	546	84	82	20
Decrease/(Increase) in short-term bank deposits and restricted deposits	(6,900)	(1,057)	34	3,094
Lending by Unicom Group Finance Company Limited ("Finance Company") to a related party	(16,500)	(2,529)	(11,434)	(13,558)
Repayment of loans from related parties to Finance Company	13,704	2,100	11,134	6,354
Net cash outflow from investing activities	(92,018)	(14,102)	(59,053)	(61,179)
Cash flows from financing activities
Capital contributions from non-controlling interests	66	10	508	7
Proceeds from short-term bank loans	2,740	420	28,784	53,306
Proceeds from commercial papers	8,000	1,226	8,995
Proceeds from promissory notes			992
Proceeds from corporate bonds			2,000
Loans from related parties			50	3,090
Repayment of short-term bank loans	(7,564)	(1,159)	(38,290)	(60,730)
Repayment of long-term bank loans	(395)	(61)	(418)	(435)
Repayment of commercial papers	(10,000)	(1,533)		(9,000)
Repayment of related party loans	(50)	(8)	(48)	(475)
Repayment of ultimate holding company loan				(1,344)
Repayment of promissory notes				(18,000)
Repayment of corporate bonds			(17,000)
Repayment of finance lease				(493)
Capital element of lease rentals paid	(11,696)	(1,791)	(11,123)
Payment of issuing expense for commercial papers	(7)	(1)
Dividends paid to equity shareholders of the Company	(5,447)	(835)	(4,100)	(1,591)
Payment of issuing expense for promissory notes				(67)
Net deposits with Finance Company by related parties	283	43	236	2,354
Increase in statutory reserve deposits placed by Finance Company	(1,140)	(175)	(351)	(680)
Net cash outflow from financing activities	(25,210)	(3,864)	(29,765)	(34,058)
Net (decrease)/increase in cash and cash equivalents	(11,677)	(1,790)	4,860	(2,850)
Cash and cash equivalents at beginning of year	34,945	5,356	30,060	32,836
Effect of changes in foreign exchange rate	(183)	(28)	25	74
Cash and cash equivalents at end of year	23,085	3,538	34,945	30,060
Analysis of the balances of cash and cash equivalents:
Cash balances	1		1	1
Bank balances	23,084	3,538	34,944	30,059
Cash and cash equivalents at end of year	23,085	3,538	34,945	30,060
Income before income tax	16,027	2,456	14,167	13,081
Adjustments for:
Depreciation and amortization	83,017	12,723	83,080	75,777
Interest income	(1,366)	(209)	(1,272)	(1,712)
Finance costs	1,564	240	1,991	1,676
Loss on disposal of property, plant and equipment	2,365	364	2,179	4,148
Credit loss allowance and write-down of inventories	5,584	856	3,663	3,846
Dividend from financial assets measured at FVOCI (non-recycling)	(210)	(32)	(205)	(203)
Gains on disposal of financial assets measured at FVPL	(87)	(13)	(24)	(36)
Investment income from debt securities measured at FVOCI (recycling)	(174)	(27)
Fair value gains on financial assets measured at FVPL	(154)	(24)	(96)	(31)
Share of net profit of associates	(1,588)	(243)	(1,359)	(2,477)
Share of net profit of joint ventures	(787)	(121)	(646)	(598)
Expenses for restricted shares of A Share Company granted to the Group's employees	375	57	571	614
Changes in working capital:
Increase in accounts receivable	(4,151)	(636)	(5,928)	(4,887)
Decrease/(Increase) in contract assets	1,125	172	(122)	1,150
Increase in contract costs	(1,371)	(210)	(2,188)	(3,001)
(Increase)/Decrease in inventories and consumables	59	9	(335)	(385)
(Increase)/Decrease in restricted deposits	(233)	(36)	321	(581)
Decrease/(Increase) in other assets	(1,694)	(260)	(796)	1,584
Decrease/(Increase) in prepayments and other current assets	(4,178)	(640)	(1,876)	60
Increase in amounts due from ultimate holding company	(36)	(6)	(7)	(20)
Decrease/(Increase) in amounts due from related parties	(5)	(1)	745	2,339
Decrease/(Increase) in amounts due from domestic carriers	(217)	(33)	364	871
Increase in accounts payable and accrued liabilities	8,210	1,258	2,386	6,591
Increase in taxes payable	1,271	195	623	33
Increase in advances from customers	29	4	2	45
(Decrease)/Increase in contract liabilities	1,993	305	(2,002)	(4,322)
Increase in deferred revenue	1,076	165	1,164	1,474
Increase/(Decrease) in other obligations	(198)	(30)	(16)	68
Increase/(Decrease) in amounts due to ultimate holding company	(11)	(2)	322	40
(Decrease)/Increase in amounts due to related parties	1,076	165	216	(868)
(Decrease)/Increase in amounts due to domestic carriers	117	18	30	(394)
Cash generated from operations	¥ 107,428	$ 16,464	¥ 94,952	¥ 93,882

Consolidated Statements of Financial Position ¥ in Millions, $ in Millions	Dec. 31, 2020 CNY (¥)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 CNY (¥)
Non-current assets
Property, plant and equipment	¥ 364,187	$ 55,814	¥ 367,401
Right-of-use assets	37,960	5,818	43,073
Goodwill	2,771	425	2,771
Interest in associates	38,802	5,947	36,445
Interest in joint ventures	5,656	867	4,771
Deferred income tax assets	745	114	1,226
Contract assets	103	16	595
Contract costs	3,672	563	4,923
Financial assets measured at fair value	3,493	535	3,891
Other assets	14,591	2,235	13,808
Non-current assets	471,980	72,334	478,904
Current assets
Inventories and consumables	1,951	299	2,359
Contract assets	823	126	1,308
Accounts receivable	16,287	2,496	17,233
Prepayments and other current assets	15,882	2,434	12,456
Financial assets measured at fair value	24,189	3,707	202
Short-term bank deposits and restricted deposits	11,989	1,837	3,716
Cash and cash equivalents	23,085	3,538	34,945
Current assets	108,636	16,649	83,595
Total assets	580,616	88,983	562,499
EQUITY
Share capital	254,056	38,936	254,056
Reserves	(18,821)	(2,884)	(18,803)
Retained profits
Proposed final dividend	5,018	769	4,529
Others	86,334	13,231	80,265
Equity attributable to equity shareholders of the Company	326,587	50,052	320,047
Non-controlling interests	933	143	708
Total equity	327,520	50,195	320,755
Non-current liabilities
Long-term bank loans	2,482	380	2,869
Promissory notes	998	153	998
Corporate bonds	1,999	306	2,998
Lease liabilities	16,458	2,522	21,535
Deferred income tax liabilities	64	10	87
Deferred revenue	5,927	908	4,851
Amounts due to related parties	3,042	466	3,042
Other obligations	98	16	174
Non-current liabilities	31,068	4,761	36,554
Current liabilities
Short-term bank loans	740	113	5,564
Commercial papers	7,000	1,073	8,995
Current portion of long-term bank loans	418	64	437
Current portion of corporate bonds	1,000	153
Lease liabilities	11,503	1,763	10,790
Accounts payable and accrued liabilities	134,437	20,603	117,525
Bills payable	5,482	840	4,039
Taxes payable	2,805	430	1,534
Dividend payable			920
Current portion of other obligations	2,529	388	2,604
Contract liabilities	42,641	6,535	40,648
Advances from customers	359	55	330
Current liabilities	222,028	34,027	205,190
Total liabilities	253,096	38,788	241,744
Total equity and liabilities	580,616	88,983	562,499
Net current liabilities	(113,392)	(17,378)	(121,595)
Total assets less current liabilities	358,588	54,956	357,309
Ultimate holding company [member]
Current assets
Accounts receivable	10,570	1,620	7,688
Current liabilities
Accounts payable and accrued liabilities	1,640	251	1,779
Related parties [member]
Current assets
Accounts receivable	195	30	240
Current liabilities
Accounts payable and accrued liabilities	9,183	1,407	7,851
Domestic carriers [member]
Current assets
Accounts receivable	3,665	562	3,448
Current liabilities
Accounts payable and accrued liabilities	¥ 2,291	$ 352	¥ 2,174