2021 Interim Results slide image

2021 Interim Results

Increased Initiative to Promote Sustainable Growth in Future (RMB Mil) Operating Expenses 1H2020 1H2021 Change YoY (142,257) (156,061) 9.7% Slightly higher than the operating revenue growth, mainly due to the higher initiatives in resources & talents for 5G & innovative businesses, driving sustainable future growth Interconnection Charges (5,094) (5,247) 3.0% Depreciation & Amortisation (41,312) (41,376) 0.2% Mainly benefited from good control of CAPEX in recent years & network "co-build co-share" Network, Operation & Support¹ (22,220) (25,107) 13.0% Mainly due to growth in charges for the use of equipment & premises, and energy cost Employee Benefit (27,503) (30,991) 12.7% Mainly due to the ongoing effort in incentive mechanism reform to strengthen performance-based compensation & drawing of innovative talents In line with 29% increase in sales of telecommunications products Costs of Telecommunications Products Sold (11,603) (14,808) 27.6% • Selling & Marketing (14,879) (15,565) 4.6% G&A & Others (19,646) (22,967) 16.9% • See next slide for details Note: 1. 1H2021 tower usage fee was RMB 5,429 mil, relatively flat yoy. Excluding the impact of the adoption of IFRS 16, 1H2021 tower usage fee was RMB 9.5 bil, up 2% yoy. The data is for illustration purpose only and investors are cautioned not to rely on the data. a China unicom中国联通 2021 Interim Results 27
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