China Unicom (Hong Kong) Limited reported largely flat top-line growth but a sharp profit contraction for the first half of 2026, citing a VAT change and front-loaded staff costs as key drags on earnings.

Financial Highlights (1H26 vs. 1H25) • Operating revenue rose 0.60 % to RMB 201.36 billion. • Service revenue slipped 0.20 % to RMB 177.96 billion. • Profit attributable to equity shareholders fell 34.60 % to RMB 9.47 billion. • Operating profit dropped 46.80 % to RMB 7.40 billion; EBITDA declined 4.60 % to RMB 47.42 billion, equal to 26.6 % of service revenue. • Net operating cash flow improved 13.60 % to RMB 32.94 billion, a record high for the period; free cash flow inched up 0.90 % to RMB 8.86 billion. • Capital expenditure was RMB 24.08 billion, with 37 % directed to computing-power projects, up more than 80 % year-on-year. • Liabilities-to-assets ratio stood at 44.4 %; debt-to-capitalisation edged down to 7.70 %.

Operational Metrics • Total connectivity subscriptions surpassed 1.30 billion, with integrated subscriber penetration above 78 %. • Computing-power revenue reached RMB 41.90 billion, up 13 %, including double-digit gains in IDC and computing services. • International business revenue climbed 14 % to RMB 7.70 billion. • Employee benefit expenses rose 19.30 % to RMB 34.14 billion, a principal driver of the profit decline; management expects full-year staff costs to stabilise. • Network, operation and support expenses increased 4.90 % to RMB 32.90 billion, while depreciation and amortisation dipped 0.80 % to RMB 40.01 billion.

Strategic Developments • The operator advanced its “Six Networks” initiative, prioritising 5G-A rollout in more than 330 cities and launching 10-gigabit optical pilots in over 100 cities. • Intelligent computing power exceeded 45 EFLOPS with over 1.15 million standard cabinets installed and a utilisation rate above 74 %. • Ongoing institutional reform trimmed headquarters departments by nearly 40 %, aiming at leaner governance and faster product innovation.

Outlook Chairman and CEO Dong Xin reaffirmed the “Preserve and Innovate, Steady and Far-Reaching” approach, highlighting a focus on connectivity, computing power, service quality and security to drive sustainable growth. Management anticipates a “significant narrowing” of full-year profit contraction as employee cost timing normalises.

No interim dividend was declared for the period.