Maoyan Entertainment — Earnings Release 2002

Apr 23, 2002

The Stock Exchange of Hong Kong Limited takes no responsibility for the contents of this announcement, makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

中國聯通股份有限公司
CHINA UNICOM LIMITED
(Incorporated in Hong Kong with limited liability)

ANNOUNCEMENT

In order to further enhance the transparency of the Group and timely provide additional information with which shareholders, investors and the general public may better appraise the financial and business position of the Group, the Board has adopted a policy of disclosing certain selected key financial data (unaudited) and operational statistics of the Group for the first quarter and the first three quarters of each year on or about 20 April and 20 October of the year concerned respectively, from the year of 2002 and onward. The Company will continue to make disclosure of financial data and operational statistics for the interim period and the full year after the necessary review and/or audit by the auditors as required by the Listing Rules.

Having regard to the disclosure practices of leading telecommunications operators worldwide, the board of directors (the “Board”) of China Unicom Limited (the “Company” together with its subsidiaries, the “Group”) is of the view that the additional disclosure will further enhance the transparency of the Group as well as timely provide additional information with which shareholders, investors and the general public may better appraise the business and financial position of the Group.

For this purpose, the Board announces that the Company will disclose certain key financial data (unaudited) and operational statistics of the Group for the first quarter and the first three quarters of each year on or about 20 April and 20 October of the year concerned respectively, from the year of 2002 and onward. The Company will continue to make disclosure of financial data and operational statistics for the interim period and the full year after the necessary review and/or audit by the auditors as required by the Listing Rules.

Selected key Financial Data (Unaudited) and Operational Statistics for the first quarter of 2002 are as follows:-

				For the quarter ended 31 March 2002	For the Year ended 31 December 2001
Financial Data (Note 3)
Total Revenue (RMB)				8.35 billion	29.40 billion
	Cellular Business			6.65 billion	21.33 billion
	Long Distance, Data and Internet Business			0.96 billion	3.31 billion
	Paging Services			0.74 billion	4.76 billion
Operational Statistics Data
GSM Services:
	Aggregated Number of GSM Cellular Services Subscribers			30.218 million	27.033 million
		-	Post-Paid Subscribers	17.013 million	16.489 million
		-	Pre-Paid Subscribers	13.205 million	10.544 million
	Aggregated Net Addition of GSM Cellular Subscribers			3.185 million	14.262 million
		-	Post-Paid Subscribers	0.524 million	5.888 million
		-	Pre-Paid Subscribers	2.661 million	8.374 million
	Total Minutes of Usage			12.85 billion minutes	38.32 billion minutes
	Average Revenue Per User Per Month (ARPU)			73.8 RMB	86.3 RMB
	Minutes of Usage Per User Per Month (MOU)			149.6 minutes	161.2 minutes
	Short Message Service (SMS) (number of messages)			0.83 billion	0.108 billion
	Network Capacity (number of subscribers)			39.513 million	37.46 million
CDMA Services:
	Aggregated Number of CDMA Cellular Services Subscribers			0.568 million	--
	Aggregated Net Addition of CDMA Cellular Services Subscribers			0.568 million	--
	Total Minutes of Usage			0.25 billion minutes	--
	Average Revenue Per User Per Month (ARPU)			81.8 RMB	--
		-	Net Addition Users ARPU	119.6 RMB	--
		-	Ex-Great Wall Users ARPU	75.2 RMB	--
	Minutes of Usage Per User Per Month (MOU)			226.4 minutes	--
	Short Message Services (SMS) (number of messages)			0.142 million	--
	Leased CDMA Network Capacity (number of subscribers)			2 million	--
International & Domestic Long Distance Telephone Services:
	Aggregated Usage Volume of Outgoing Calls of Circuit Switched Long Distance Telephone (minutes)			1.33 billion	2.72 billion
		-	Domestic Long Distance	1.3 billion	2.64 billion
		-	International, Hong Kong, Macau & Taiwan Long Distance	0.03 billion	0.08 billion
	Aggregated Usage Volume of Outgoing Calls of IP Telephone (minutes)			1.23 billion	3.69 billion
		-	Domestic Long Distance	1.2 billion	3.52 billion
		-	International, Hong Kong, Macau & Taiwan Long Distance	0.03 billion	0.17 billion
Internet Services:
	Aggregated Number of Internet Subscribers			4.015 million	3.544 million
Paging Services:
	Aggregated Number of Paging Subscribers			29.122 million	32.91 million
Network Infrastructure:
	Optical Fiber Network			359 thousand kilometer	333 thousand kilometer
	Long Distance Backbone Network			85 thousand kilometer	78 thousand kilometer

Notes:

1. The aggregated numbers are aggregated data reported at 24:00 on 31 March 2002.

2. The accounting period of aggregated net addition and aggregated usage volume in 2002 is calculated from 0:00 on 1 January 2002 to 24:00 on 31 March 2002.

3. The financial data for the year ended 31 December 2001 are audited figures, while financial data for first quarter of 2002 have not been reviewed or audited by the auditors.

4. GSM APRU for the first quarter of 2002 was decreased by 3.3% compared to RMB 76.3 as recorded for the fourth quarter of 2001.

Discussion and Analysis of Certain Data and Statistics as stated above

The Group achieved satisfactory operating results in the first quarter of 2002. As of 31 March 2002, total operating revenue was RMB 8.35 billion, representing 28.41% of the Company’s total revenue of 2001. GSM cellular business continued its rapid growth and the total aggregated number of GSM cellular subscribers reached 30.218 million, representing a net increase of 3.185 million subscribers in the first quarter of 2002. As the proportion of GSM pre-paid subscribers continued to rise, GSM ARPU declined slightly from RMB 76.3 in the fourth quarter of 2001 to RMB 73.8 in the first quarter of 2002, representing a decrease of RMB 2.5. The Company’s cellular business maintained satisfactory growth and total revenue from cellular business reached 6.65 billion, representing 31.18% of the Company’s total revenue from cellular business in 2001.

As of 31 March 2002, the aggregated number of CDMA cellular subscribers was 568,000 subscribers, with a net increase of 120,000 subscribers for March 2002. CDMA ARPU from the net addition users reached RMB 119.6. However, due to the low CDMA ARPU of RMB 75.2 from the ex-Great Wall subscribers, the overall CDMA ARPU was RMB 81.8.

As of 31 March 2002, the total revenue from the Company’s long distance, data and Internet was RMB 960 million. The aggregated usage volume of outgoing long distance calls through PSTN and IP telephony services reached 2.56 billion minutes, representing 39.93% of the total usage volume of 2001.

Due to the accelerating pace of cellular substitution, the Company’s total number of paging subscribers as of 31 March 2002 was 29.122 million , decreased by 3.788 million when compared to the end of 2001.

Caution Statement

The Board wishes to remind investors that the above financial data and operational statistics are based on the Group’s internal records and management accounts and the above financial data except for that of 2001 have not been reviewed or audited by the auditors. Investors are cautioned not to unduly rely on such data and statistics. In the meantime, investors are advised to exercise caution in dealing in the shares of the Company.

By order of the Board
CHINA UNICOM LIMITED
Ngai Wai FungCompany SecretaryHong Kong, 22 April 2002

Please also refer to the published version of this announcement in the South China Morning Post.