China Unicom tumbles 8% as it scraps interim dividend after profit slump

China Unicom (762.HK) tumbled 8% in Hong Kong trading to HK$5.710.

The carrier reported first-half net profit of RMB 9.468 billion, down 34.6% year-on-year, while revenue edged up 0.6% to RMB 201.36 billion. The company scrapped its interim dividend for the first time since 2021 — the key catalyst behind the selloff.

Management attributed the earnings drop to value-added tax changes and wage-cost timing, adding the full-year decline will narrow significantly. Operating cash flow surged 13.6% to a multi-year high of RMB 32.9 billion.

Computing-power revenue climbed 13% to RMB 41.9 billion, with investment in the segment up more than 80% and now accounting for 37% of capex. International business revenue rose 14%, and the 5G user base reached 249 million. The company is scaling its token-economy infrastructure, with four platforms handling over 40 billion daily token calls.