China Unicom (hong Kong) Ltd (NYSE:CHU)

CHINA UNICOM (HONG KONG) LIMITED

CONSOLIDATED STATEMENTS OF INCOME

(All amounts in millions, except per share data)

 

				Year ended 31 December
		Note		2012				2013				2014				2014
				RMB				RMB				RMB				US$
Revenue		29			248,926				295,038				284,681				45,882
Interconnection charges					(18,681	)			(20,208	)			(14,599	)			(2,353	)
Depreciation and amortization					(61,057	)			(68,196	)			(73,868	)			(11,905	)
Network, operation and support expenses		30			(32,516	)			(33,704	)			(37,851	)			(6,100	)
Employee benefit expenses		31			(28,778	)			(31,783	)			(34,652	)			(5,585	)
Costs of telecommunications products sold		32			(45,040	)			(63,416	)			(43,397	)			(6,994	)
Other operating expenses		33			(51,252	)			(61,964	)			(61,411	)			(9,898	)
Finance costs		34			(3,664	)			(3,113	)			(4,617	)			(744	)
Interest income					240				173				283				46
Other income – net		36			1,343				887				1,362				219
Income before income tax					9,521				13,714				15,931				2,568
Income tax expenses		9			(2,425	)			(3,306	)			(3,876	)			(625	)
Net income					7,096				10,408				12,055				1,943
Attributable to:
Equity shareholders of the Company					7,096				10,408				12,055				1,943
Earnings per share for income attributable to equity shareholders of the Company during the year:
Basic earnings per share		39			0.30				0.44				0.51				0.08
Diluted earnings per share		39			0.30				0.43				0.49				0.08

CHINA UNICOM (HONG KONG) LIMITED

CONSOLIDATED STATEMENTS OF INCOME

(All amounts in millions, except per share data)

						Year ended December 31
		Note				2011				2012				2013				2013
						RMB				RMB				RMB				US$
Revenue		28					209,167				248,926				295,038				48,736
Interconnection charges							(16,380)				(18,681)				(20,208)				(3,338)
Depreciation and amortization							(58,021)				(61,057)				(68,196)				(11,265)
Network, operation and support expenses		29					(29,449)				(32,516)				(33,704)				(5,567)
Employee benefit expenses		30					(26,601)				(28,778)				(31,783)				(5,250)
Costs of telecommunications products sold		31					(29,739)				(45,040)				(63,416)				(10,476)
Other operating expenses		32					(43,586)				(51,252)				(61,964)				(10,236)
Finance costs		33					(1,474)				(3,664)				(3,113)				(514)
Interest income							230				240				173				29
Other income - net		35					1,451				1,343				887				146
Income before income tax							5,598				9,521				13,714				2,265
Income tax expenses		9					(1,371)				(2,425)				(3,306)				(546)
Net income							4,227				7,096				10,408				1,719
Attributable to:
Equity shareholders of the Company							4,227				7,096				10,408				1,719
Earnings per share for income attributable to equity shareholders of the Company during the year:
Basic earnings per share		38					0.18				0.30				0.44				0.07
Diluted earnings per share		38					0.18				0.30				0.43				0.07

A global financial crisis that unfolded in 2008 and has continued during 2009 has widely and adversely affected the financing markets of a number of countries where the banks and other financial institutions are reluctant to lend and impose stricter terms in their lending. Changes in the macroeconomic environment arising from the current global financial crisis had a material adverse impact on economic activity in the PRC in 2008 and 2009. However, under a series of economic stimulus packages launched by the PRC Government, we, due to our enterprise nature and our good credit records with PRC banks, generally have not experienced and do not expect to experience in the foreseeable future significant difficulties in obtaining bank financing in the PRC. As of December 31, 2010, we had revolving banking facilities of RMB114.0 billion, of which, RMB88.4 billion was unutilized. Meanwhile, we will continue to optimize our fund raising strategy from short, medium and long-term perspectives and maintain reasonable financing costs through appropriate financing portfolio. Therefore, we believe that we will be able to fund our anticipated capital and liquidity needs with our access to debt and equity financing, in particular bank financing in the PRC, and net cash inflows from our operations.