China United Network Communications Group Co., Ltd. (Chinese: 中国联合网络通信集团有限公司) or China Unicom (Chinese: 中国联通) is a Chinese state-owned telecommunications operator of China. China Unicom is the world's fourth-largest mobile service provider by subscriber base.
|Founded||18 June 1994|
|Revenue||CN¥274.197 billion (2016)|
|(CN¥ (2016) 275 million)|
|CN¥154 million (2016)|
|Total assets||CN¥615.907 billion (2016)|
|Total equity||CN¥77.503 billion (2016)|
|Owner||Chinese Central Government|
Footnotes / references|
data obtained from China United Network Communications Ltd. (the accounts of the parent company was not disclosed); in consolidated financial statement; excluding minority interests to red chip minority shareholders
|China United Network Communications Group Co., Ltd.|
|China Unicom Group|
Started as a wireless paging and GSM mobile operator, it currently provides a wide range of services including nationwide GSM mobile network, long-distance, local calling, data communication, Internet services, and IP telephony in mainland China, and has operated a CDMA network in Macau since October 18, 2006. As of the end of April 2008[update], the company had 125 million GSM subscribers and 43 million CDMA subscribers. As of November 2008 the CDMA operations have been moved to China Telecommunications Corporation (China Telecom Group). On 7 January 2009, China Unicom was awarded WCDMA license to expand its business to 3G telecommunication. UMTS (Universal Mobile Telecommunications System) was launched in major cities across China on May 17, 2009.
China Unicom (known as Chinese: 中国联合通信有限公司 at that time) was founded as a state-owned enterprise on 18 June 1994 by the Ministry of Railways, the Ministry of Electronics Industry and the Ministry of Electric Power Industry; the establishment was approved by the State Council in December 1993.
The intermediate parent company "China Unicom (Hong Kong) Limited" was "China Unicom (BVI) Limited", As of 31 December 2001[update], the BVI company owned 77.47% shares of China Unicom (H.K.). In turn, China Unicom (H.K.) owned the operating subsidiaries of the group. In 2002, another intermediate parent company "China United Network Communications Limited" was established in Shanghai (headquartered in Beijing), to own 51% stake of "China Unicom (BVI) Limited" as well as listing the shares in the Shanghai Stock Exchange. As of 31 December 2002[update], state-owned China Unicom Group owned 74.6% shares of the A share company,:8 in turn the A share company owned 73.84% of the BVI company.:23 The BVI company owned 77.47% shares of the red chip company. To sum up, the Chinese Government via A share company, owned 42.67% stake of the operating subsidiaries, as well as additional 20.27% stake by the minority stake in the BVI company.
Merger with China NetcomEdit
On June 2, 2008, China Unicom announced its intention to sell its CDMA business and assets to China Telecommunications Corporation (China Telecom Group) for a combined total of 110 billion RMB and to merge the remainder of the company,[non-primary source needed] in a share swap valued at USD $56.3 billion (based on Unicom's stock last traded price) on June 2, 2008, with China Netcom. The CDMA business was officially moved to China Telecom in early November. 
Mixed-ownership reform of state-owned enterpriseEdit
In 2017 China Unicom became one of the pilot project of the mixed-ownership reform of the state-owned enterprise of China, which saw the decrease in ownership of the Government.
In 2017 the A share listed company of the group introduced 10 strategic investors: state-controlled China Structural Reform Fund, state-controlled listed company China Life Insurance, a private equity fund (Chinese: 腾讯信达有限合伙企业; literally: "Tencent–Cinda Limited Partnership") that was owned by China Cinda Asset Management and a company related to Tencent,[nb 5] a private equity fund partially owned by Baidu[nb 6] and Industrial Bank (Chinese: 百度鹏寰投资合伙企业), a private equity fund that related to JD.com (Chinese: 京东三弘企业管理中心; literally: "Jingdong Sanhong"),[nb 7] a public company Ali Venture Capital (Chinese: 阿里创业投资),[nb 8] a public company Suning Commerce Group and three minor private equity funds that was subscribed by companies such as Kuang-Chi and CRRC Group.
In the same year, the fund raised by the A share company was injected to the Hong Kong incorporated red chip company, via "China Unicom (BVI) Limited", for HK$13.24 per share (for a maximum of 6.64 billion share / HK$88 billion).
Establishment of China Unicom Global LimitedEdit
On 2 December 2016, China Unicom Global Limited launched the “CUniq” overseas mobile virtual network operator (“MVNO”) service in London, UK and unveiled the one-card-multiple-number service.
The "CUniq" one-card-multiple-number service provides a SIM card which works in Mainland China, Hong Kong (China) and the UK. The service may be extended to other areas.
The China Unicom group had a special group structure to list its share. The group had a subsidiary China United Network Communications Limited (Chinese: 中国联合网络通信股份有限公司) which its A shares were traded in the Shanghai Stock Exchange (SSE: 600050), while an indirect subsidiary of the A share listed company, Hong Kong incorporated China Unicom (Hong Kong) Limited (Chinese: 中国联合网络通信（香港）股份有限公司) listed its shares in Stock Exchange of Hong Kong as a red chip company (SEHK: 762) and in the New York Stock Exchange as American depository share (NYSE: CHU). The operating subsidiaries of the group were under China Unicom (Hong Kong). However, the group have some subsidiaries that involve in equity investment, such as "China Unicom Group Corporation (BVI) Limited", which were not injected to either listed companies.
Partnership with TelefonicaEdit
In 2009, China Unicom (Hong Kong) agreed a US$1 billion cross-holding with Spain's Telefónica. In January 2011, the two partners agreed a further US$500 million tie-up in each other, which following completion in late 2011, Telefonica will hold a 9.7% shares in China Unicom (H.K.), while the red chip company will own 1.4% shares of the Spanish firm. The companies also agreed to deepen their cooperation in areas such as procurement, mobile service platforms, service to MNC's wholesale carriers, roaming, technology, among others, where both companies have been cooperating since the signature of their strategic alliance agreement.
In June 2012, China United Network Communications Group (China Unicom Group), the ultimate parent company of Hong Kong listed company "China Unicom (Hong Kong)", had agreed to buy back about 1.1 billion shares (approx. 4.6% of the share capital) of the red chip company from Telefonica for an approx. HK$11 billion. (HK$10.21 per share; by narrow band floating exchange rate approx. US$1.4 billion), via an unlisted subsidiary "China Unicom Group Corporation (BVI) Limited". Immediate after the deal, Telefonica still owned 5% of China Unicom (H.K.). In 2014 Telefónica sold a further 2.5% shares of "China Unicom (H.K.)" for HK$6.66 billion (HK$11.14 per share):379
During year 2016, Telefónica sold a further 1.51% shares of "China Unicom (H.K.)" for HK$2.822 billion (HK$7.8 per share),:379 As of 31 December 2016[update] Telefónica owned 1% shares of the red chip company (decreased from 2.51% year-to-yearly), as well as Telefónica's director César Alierta, still served as a director of "China Unicom (H.K.)".:62
- As of 31 December 2016
- See §Stock for the listing structure of the company.
- Wang Xiaochu, Lu Yimin and Li Fushen were also chairman and directors of China United Network Communications Limited; Wang Xiaochu was the chairman and CEO of China Unicom (H.K.), Lu Yimin was the president and director and Li Fushen was the CFO and director.
- Shao Guanglu was also the director of China United Network Communications Limited
- Jiang Zhengxin was also the chairman of the supervisory board (Chinese: 监事会主席) of China United Network Communications Limited
- An indirect unit holder of the fund (Chinese: 深圳市腾讯产业投资基金; literally: "Shenzhen Tencent Industry Investment Fund"), was owned by some managers of Tencent. It was stated as a "new OPCO" (new operating company) of Cayman-incorporated listed company Tencent Holdings.
- One of the unit holder of the fund was indirectly owned by Baidu Netcom Science Technology (Chinese: 百度网讯科技); the stake of Baidu Netcom was 99.5% owned by Robin Li; the stake was pledged to Baidu Online Network Technology (Beijing) (Chinese: 百度在线网络技术(北京)), an indirect subsidiary of Cayman-incorporated Baidu Inc., thus it was considered as part of Baidu Group. Another indirect unit holder (Chinese: 北京鼎鹿中原科技), owned by some of the managers of Baidu, was linked to Baidu by the Chinese media, but Baidu denied to comment.
- The indirect unit holder of the private equity fund (Chinese: 江苏京东邦能投资管理有限公司; literally: "Jingdong Bangneng Investment Management") was 45% owned by Liu Qiangdong founder of JD.com (Jingdong) and 55% by Sun Jiaming (Chinese: 孙加明), a senior manager of JD.com. Jingdong Bangneng was listed as a consolidated variable interest entity of JD.com
- The stake of the company was 80% owned by Jack Ma, but also pledged to Alibaba Group. It was considered as a subsidiary and/or consolidated entity of Alibaba Group.
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