2009

Annual Results
24 March 2010
Management

Mr. Chang Xiaobing

Chairman & CEO

Mr. Lu Yimin
Executive Director & President

Mr. Zuo Xunsheng

Executive Director & Senior Vice President

Mr. Tong Jilu

Executive Director & CFO

2
Agenda

Overall Performance

Operating Performance

Financial Results

3
Overall Performance (Continuing Operations) (1)

(RMB millions) 2009 2008 YoY%

Operating Revenue 153,945 159,792 -3.7%
Service Revenue 149,593 152,831 -2.1%
(2)
Adjusted Service Revenue 149,104 150,954 -1.2%
of which: Mobile Revenue 69,769 64,240 8.6%
Fixed-line Revenue 79,059 86,376 -8.5%
EBITDA 59,846 57,676 3.8%
Net Profit 9,556 7,825 22.1%
Adjusted Net Profit (3) 9,608 14,838 -35.2%
EPS (RMB) 0.402 0.329 22.1%
Dividend per Share (RMB) 0.16 0.2
Note：This presentation involves the following non-recurring or non-comparable factors: a） profit and loss from CDMA discontinued operations in 2008 –
27.575 billion；b）deferred fixed-line upfront connection fees, 490 million in 2009，886 million in 2008；c） certain interconnection revenue between
the fixed-line business and the discontinued operations of CDMA business, 992 million in 2008；d）the lease fee of 2 billion for telecommunication
networks of southern 21 provinces in 2009；e）the gain from the non-monetary assets exchange, 38 million in 2009, 1.305 billion in 2008；f）
impairment loss of 11.837 billion from PHS related assets in 2008；g）realized gain of 1.239 billion on changes in fair value of derivative financial
instrument in 2009。
(1) All items in this presentation excludes factor a)；
(2) On comparable basis, excludes factor b) and c)。Due to non-allocatable revenue items, total service revenue does not equal to the sum of mobile
service revenue and fixed-line revenue. Except otherwise, the service revenue used in this document refers to the adjusted service revenue and the
service revenue refers to Telecommunications service revenue
(3) For comparable profit, excludes factor b),d),e),f) and g).
4
Overall Business Remains Stable
„ Total service revenue dropped 1.2% yoy with mobile service revenue contributing
46.8% and fixed-line service revenue contributing 53%
„ Non-voice revenues account for 27.6% and 48.1% of mobile and fixed-line service
revenue respectively

Service
Service Revenue
Revenue &
& Breakdown
Breakdown Mobile
Mobile Service
Service Revenue
Revenue
(RMB millions) 69,769
(RMB millions)
64,240 8.6%
150,954 149,104 Voice
72.4%
73.5%
Non-voice
Mobile 42.6% 26.5% 27.6%
46.8%
2008 2009

Fixed-line
Fixed-line Service
Service Revenue
Revenue
(RMB millions) 86,376 -8.5% 79,059
Fixed-line 57.2%
53.0% Voice
57.2% 51.9%

Non-voice 42.8% 48.1%

2008 2009
2008 2009
5
Network Capabilities Significantly Enhanced

(1)
3G
3G Networks
Networks Broadband
Broadband Networks
Networks

„ Deployed the biggest # of IP Access Ports +38.3%

WCDMA networks in the
world with 107K BTS
Extensive covering 335 cities Trunk Bandwidth of +69.0%
Coverage IP Backbone
„ Covered cities expanded to
335 from planned 284, % of ports with 24%
benefit from centralized 20Mbps & above
procurement and synergy
(2)
2G
2G Networks
Networks
„ Adopted advanced &
High Starting mature HSPA technology # of Base stations +36.7%
Point in
Technology „ The peak up/down link
speed 5.76/14.4Mbps # of Carriers +41.2%

Switching Capacity +56.7%

„ Shared core networks
Coordinated between 2G/3G
2G/3G (1) The % change represents the yoy change from 2008 to 2009;
„ 2G/3G Interoperability (2) The % change represents the yoy change from 2008 to 2009, of
which the switching capacity includes both 3G and 2G capacity

6
3G Services Launched Smoothly

Subscribers
Subscribers and
and Breakdown
Breakdown
„ Set goals to achieve leaderships in
networks, business and customer
care „ 17 May 2009, commercial trial in 56 cities

„ Implemented a nationwide unified „ 1 Oct 2009, commercial launch in 285 cities

strategy in branding, services,
„ End of 2009, commercial services expanded
packaging, tariff, handset policy
to 335 cities
and customer care standards

„ Rolled out multiple innovative

applications simultaneously （1000 subscribers）

„ Deployed a nationwide unified 2,742

voice tariff, reduced data tariff 16.3%
significantly

„ Unified construction of 3G branded

stores, recruited high quality 3rd
party channels
83.7%
„ Launched “Strategic Terminal” -
iPhone 2009
Data Cards Handset Subs

7
Internal Integration Pushed Forward

Build a strong foundation for future healthy growth

Improved
Improved Business
Business Capabilities
Capabilities Further
Further Integration
Integration

Brands „ Full-service brand

Services „ Increasing service integration
Market „ Segmented operations management for
Systems public and enterprise markets
„ Optimize structure, improve quality
„ Unified system for product mgmt. and Networks „ Consolidate resources, improve
product innovation utilization
Products
„ Dedicated operations for new products
„ Unified system for budget, asset and
Customer „ Differentiated customer care system capital management
Care „ Realize 3G customer care leadership Mgmt. „ Integrated workflow and remuneration
Process system
„ Optimized channel structure to improve „ Long-term mechanism of accountability
Channels sales capabilities for risk & internal control
„ Nationwide unified e-sales service system

Partner „ Expanded 3G/GPRS intl. roaming Org. „ Further organization structure

Structure optimization to adapt to new situation
-ship „ Strategic alliance with Telefonica

8
Looking Forward
Focus on Growth, Improve Competitiveness
Goal Improved
Leading Core
Improved Excellence in
Breakthrough
Position in Operational Customer
Businesses in Innovation
Industry Efficiency Experience

Innovative Contents & Applications

Core
Businesses Selected FMC Services

Achieve 3G leadership Strengthen Broadband

to reverse mobile leadership to improve
market position fixed-line value

Network-centric ICT Services

Core
Capabilities +
Market Sales & Customer Network & Human
Branding Innovation
Operation Distribution Care IT Support Resources

9
2010 Outlook
① Push 3G leapfrog development, enable faster mobile
business growth

① Continued deployment of high quality 3G

networks, refining 2G networks „ 3G networks covering
urban areas of above
② Improve customer experience for data county level cities and key
services, stimulate data usage townships, significant
improvement of indoor
③ Expand high quality 3rd party channels,
coverage
transform self-owned channels, improve
sales capabilities „ Scale development of 3G,
stable development for 2G
④ Enhance customization of “Strategic
Terminals”, promote mass-market smart „ Stable mobile blended
phones, further leverage on handset (2G/3G) ARPU
advantages „ Fast growth in mobile
revenue, higher
⑤ Segment and differentiate 2G & 3G
contribution from non-voice
services, leverage 3G brand advantage to
revenue
push 2G growth

10
2010 Outlook (Continue)
② Accelerate broadband development, optimize fixed-
line structure

① Continued deployment of high

performance broadband & transmission
networks „ Faster growth in
broadband business
② Further enlarge broadband subscriber
scale, improve broadband revenue „ Slowdown Fixed-
contribution line revenue decline
significantly
③ Promote digital home services with Home
Gateway „ Non-voice revenue
surpasses 50% of
④ Develop enterprise informational solution
total fixed-line
and vertical applications
revenue
⑤ Improve non-voice service revenue to
adjust fixed-line business structure

11
2010 Outlook (Continue)
③ Further Management Innovation and Reform to
enhance vitality

Continued organization and

Further innovation and reform

process optimization
„ Systems with
Fast improvement in channel
more vitality
sales capabilities
in key areas

„ More efficient
More efficient and rational
resource allocation resource
utilization
Significant improvement in IT
support capabilities „ Stronger strategy
execution
More reasonable evaluation &
pay distribution mechanism

12
Agenda

Overall Performance

Operating Performance

Financial Results

13
Key Operating Metrics

Business Operational Data 2009 2008 Change

Subscribers (‘000) 147,587 133,365 10.7%
Including: 2G 144,845 133,365 8.6%
3G 2,742 - -
Mobile
ARPU (RMB) 41.6 42.3 -1.7%
Including: 2G 41.2 42.3 -2.6%
3G 141.7 - -
Subscribers (‘000) 102,822 109,570 -6.2%
Including: Fixed lines 84,080 85,591 -1.8%
PHS 18,742 23,979 -21.8%
Fixed-line
ARPU (RMB) 31.4 35.4 -11.3%
Including: Fixed lines 34.5 39.2 -12.0%
PHS 19.7 23.1 -14.7%
Subscribers (‘000) 38,550 30,081 28.2%
Broadband
ARPU (RMB) 57.2 63.6 -10.1%

14
Mobile Business
2G business continued to grow

2G
2G Service
Service Revenue
Revenue 2G
2G Subscriber
Subscriber &
& ARPU
ARPU
(RMB millions)
7.4% 144,845
69,000 133,365
64,240 8.6%

16,263 15.9% 18,841

42.3 41.2

47,237 5.8% 49,980

2008 2009
740 179 Subs (K) ARPU
2008 2009
Others Voice
(1)
VAS 2G
2G Usage
Usage &
& MOU
MOU
（Billion minutes / Minutes）
892 18,841
386 423
1,866 377 12.3%
16,263 (568)

246.4 252.0

2008 2009
2008 SMS GPRS CRBT Others 2009 Usage MOU
(1) Includes interconnection revenue 15
Mobile Business
3G business showing good momentum

3G
3G Service
Service Revenue
Revenue 3G
3G Value-added
Value-added Services
Services
(RMB millions)
Main new applications
769 0.4%
29.8%

69.8%
…
2009
(1)
VAS Voice Others
Mobile
ARPU Mobile
ARPU Music
Video “WO”
（RMB）
Portal
141.7 Application categories

Scale Growth Incubation

Exploit Increase Enhance
41.2 Potential Scale R&D
„ SMS „ Mobile Music „ Near-field
payment
„ MMS,etc. „ Mobile Video
3G 2G „ App store

(1) Includes interconnection revenue 16

Mobile Business
Continued enhancement in 3G terminals and channels

Leverage
Leverage Handset
Handset Advantage
Advantage Build
Build &
& Optimize
Optimize Channel
Channel System
System

„ By the end of 2009, 82 customized models „ 303 3G branded stores

(out of 119 models with MIIT licenses)
„ 5 national & many provincial
„ Continue to push iPhone sales and launch channel partners
2009年
multiple “Strategic Handsets” at right time to
„ Transaction volume from online
attract high-end users
e-channels growing rapidly
„ Nationwide unified 3G e-sales &
service management system

2010
iPhone Smart phones with Quickly improve channel sales capabilities
multiple OS

Transform Optimize 3rd Expand

„ Promote mass-market smart phones to
self-owned party channel e-sales
improve handset market share channels
channels structure
„ Utilize marketing dollars effectively to
motivate the value chain
17
Fixed-line Business
Broadband & data business continued to grow, while traditional fixed-
line business remained under pressure

Broadband
Broadband &
& Data
Data Service
Service Traditional
Traditional Fixed-line
Fixed-line Service
Service
Revenue
Revenue Revenue
Revenue
(RMB millions) (RMB millions)
%
11.4 31,044 -17.6
%
27,866
57,366
7,147 47,288
6,904 3.5% 7,922
6,241

20,962 14.0% 23,898 49,444

41,047

2008 2009 2008 2009

Voice VAS & Others
Broadband Data Comm.

Broadband
Broadband Subs
Subs &
& ARPU
ARPU Local
Local Access
Access Subscribers
Subscribers
('000) ('000)
38,550 109,570 102,822
% -6.2%
30,081 28. 2 23,979 18,742

63.6 85,591 84,080

57.2

2008 2009 2008 2009

Subscriber ARPU Fixed lines PHS

18
Converged Services
Showed Early Effectiveness

Converged
Converged Services
Services Vertical
Vertical Applications
Applications

„ Multi-service bundles drove mobile subscriber „ Promote vertical applications to key industries
growth, average churn for bundled users is 3 with “corporate +3G+ICT” marketing model
percentage points lower „ Signed strategic cooperation agreement with 25
provincial government & corporations
Bundled Subs as % of total net-adds „ Contract signed: China FDA mobile
28.3% enforcement, Hangzhou digital city
administration etc.
16.1%
Key Mobile E- Production
Applications Office Commerce Control
……

Household Corporate

* Data as of 31 Dec 2009

„ Launch key bundled services around

family numbers, shared minutes and Key
Government Airlines Energy
unified billing Verticals
„ Promote Home Gateway to sell digital ……
home packages Power Auto
19
Strategies for 2010

Scale
Scale Stable
Stable Fast
Fast Slower
Slower
Development
Development Development
Development Development
Development Decline
Decline in
in
for
for 3G
3G for
for 2G
2G for
for Broadband
Broadband Fixed-line
Fixed-line

Aggressively develop
innovative services
„ Focus on 3G and service convergence
„ Promote innovation in Internet contents and applications
„ Push forward digital home services and vertical applications
„ Implement clustered operations for innovative services and
shared platforms

20
Agenda

Overall Performance

Operating Performance

Financial Results

21
Basis for Financial Reporting
„ Completed in January 2009: Fixed-line business in southern 21 provinces, backbone
transmission assets in northern china & 3 subsidiaries of Unicom Group.
2009
2009 „ Merger accounting is adopted to account for the acquisition of fixed-line business in
Acquisition southern 21 provinces which is a business combination under common control.
Acquisition of
of
Fixed-line „ Operating lease of networks assets (owned by Unicom parent company) from 2009
Fixed-line
„ 2008 comparative figures include all revenue and operating expenses of fixed-line
Business
Business inin business in southern 21 provinces but exclude depreciation and amortization of the
Southern
Southern 21
21 network assets and the finance costs for financing the construction of the networks. No
lease fee is accounted for also.
Provinces
Provinces
„ The accounting treatment of the acquisition of the 3 subsidiaries is the same as above
while the acquisition of backbone transmission assets used purchase method.

„ Adoption of IFRS/HKFRS 8 ”Operating Segments”, under the Company’s full service

Adoption
Adoption of of operation and new organization structure, no longer allocates all income statement
“Operating
“Operating items to “Mobile” and “Fixed-line” segments.
Segment”
Segment” „ Segment report only reflects revenue and costs directly attributable to “Mobile” and
financial
financial “Fixed-line” businesses. Other expenses such as employee benefits expenses,
standard
standard depreciation and amortization of jointly shared assets, finance costs and etc. are
presented as “Unallocated amounts”.

Merger
Merger with
with „ Completed on October 15, 2008 and adopted merger accounting as it is considered as a
China
China Netcom
Netcom business combination under common control.

Disposal
Disposal of
of „ Completed on October 1, 2008 and the relevant profit or loss is presented as
CDMA Business
CDMA Business “Discontinued Operations” in the income statement for the 1st half of 2008.

22
 Improved Revenue Structure

Service
Service Revenue
Revenue Breakdown
Breakdown(1) Service
Service Revenue
Revenue &
& Growth
Growth
(RMB millions)

-1.2% 2009 YoY %

(RMB millions)
150,954 149,104
Service
Revenue 149,104 -1.2%
Others

39% 32% Fixed-line 79,059 -8.5%

Tranditional 47,287 -17.6%
Traditional Fixed-line
Fixed-line
+7pp 11.4%
Broadband & Data 31,044
21%
BB & Data
18%
Mobile 69,769 8.6%
11% 13%
Mobile VAS Mobile VAS 19,070 17.3%
Mobile Voice 50,517 6.9%
31% 34%
Mobile 2G 69,000 7.4%
Voice
3G 769

2008 2009
(1) To ensure the comparability of revenue amounts, excludes the effects of deferred fixed-line upfront connection fees (490 million in 2009
and 886 million in 2008) and certain interconnection revenue between the fixed-line business and the discontinued operations of CDMA
business (992 million in 2008) 23
Mobile Revenues

Mobile
Mobile Service
Service Revenue
Revenue (RMB millions) 2009 Change
(RMB millions)

External Revenue 71,991 10.5%

64,240 8.6% 69,769

Telecom Service Rev. 69,769 8.6%

Voice 73.5% 72.4%
Usage & monthly
rental 42,297 4.5%
Non-voice
26.5% 27.6% Interconnection 8,220 21.3%

2008 2009 VAS 19,070 17.3%

17,541 17,598 17,976

16,654 Others 181 -75.5%

Sales of telco prod. 1,970 270%

Internal Revenue 219 -17.2%

Operating Revenue 72,210 10.4%

1Q09 2Q09 3Q09 4Q09

24
 Fixed-line Revenues

Fixed-line
Fixed-line Service
Service Revenue
Revenue (RMB millions) 2009 Change
(RMB millions) 81,353 -13.4%
External Revenue
-8.5%
(1)
86,376 Telecom Service Rev. 79,059 -8.5%
79,059

Voice Local Voice 25,966 -14.1%

57.2% 51.9%
LD 9,482 -20.2%
Non-Voice
42.8% 48.1% Interconnection 5,599 -23.7%
Voice VAS 5,238 -21.5%
2008 2009
Broadband 23,898 14.0%
20,223 19,686 19,927 19,223
Data Comm. 7,146 3.5%
Others 1,731 -27.7%
Sales of telco prod. 193 -85.8%
Internal Revenue 4,237 24.4%
Operating Revenue 85,590 -12.1%
1Q09 2Q09 3Q09 4Q09
(1) To ensure the comparability of revenue amounts, excludes the effects of deferred fixed-line upfront connection fees (490 million in 2009
and 886 million in 2008) and certain interconnection revenue between the fixed-line business and the discontinued operations of CDMA
business (992 million in 2008) 25
Expenses
(2)
(RMB millions) 2009 YoY%
Operating expenses (140,924) 1.9% Operating
Operating Expense
Expense
Interconnection charges (12,955) -0.6%
(RMB millions)
Depreciation & amortization (47,587) -0.8%
1.9%
Net. Operations & support (21,728) 16.0% 140,924
138,241
Personnel (21,931) 5.7%
Selling & marketing (21,020) 7.2%
G&A and others (13,016) -18.5% 91.5%
86.5%
Cost of telecom prod. sold (2,689) 24.7%
Finance costs (945) -56.2%
Net other income 962 -54.1%
Realized gain on changes in fair
1,239 -
value of derivative instrument
Lease fee for fixed-line network
(2,000) -
in southern 21 provinces
Total costs & expenses (141,668) 2.4%
(1) 2008 2009
Adjusted total costs &
(140,946) 1.0%
expenses as % of revenue

(1) Excludes the gain on the non-monetary assets exchange and the lease fee for the fixed-line networks in southern 21 provinces
(2) Excludes the effect of PHS business related asset impairment loss in 2008
26
Analyses of Major Expense Items
Depreciation
Depreciation &
& Network,
Network, Operation
Operation &
& Selling
Selling &
& Marketing
Marketing
Amortization
Amortization Support
Support
(RMB millions) (RMB millions) (RMB millions)

11,653 11,705 11,815 12,414 6,028

5,594 5,001 5,220 6,137
5,303 4,662
4,804

1Q09 2Q09 3Q09 4Q09 1Q09 2Q09 3Q09 4Q09 1Q09 2Q09 3Q09 4Q09

„ Declining depreciation expenses „ Increasing mobile network „ Launch & brand campaigns
due to part of existing assets (esp. 3G) scale led to of full-service brand “Wo”
phasing out of depreciation life increase in cost of utilities,
and PHS assets write-off in 2008
fuel & power and site rental „ 3G Market promotion
„ 3G assets started to depreciate
„ Increasing energy price
in 4Q09 after commercial launch

27
EBITDA & Profit from Continuing Operations

(1) (2)
Adjusted
Adjusted EBITDA
EBITDA Net
Net Profit
Profit Adjusted
Adjusted Net
Net Profit
Profit
(RMB millions) (RMB millions) (RMB millions)

- 1 2.
4%
68,627 -3
% 5.
60,117 22.1 9,556 14,838 2%
7,825
43.2% 9,608
39.2%

2008 2009 2008 2009 2008 2009

EBITDA Margin

(1) Excludes the effects of deferred fixed-line upfront connection fees (490 million in 2009 and 886 million in 2008)
and the lease fee of 2 billion for telecommunication networks of southern 21 provinces;
(2) Excludes: 1）deferred fixed-line upfront connection fees, 490 million in 2009，886 million in 2008；2）the lease
fee of 2 billion for telecommunication networks of southern 21 provinces in 2009；3）the gain from the non-
monetary assets exchange, 38 million in 2009, 1.305 billion in 2008；4）impairment loss of 11.837 billion from
PHS related assets in 2008；5）realized gain of 1.239 billion on changes in fair value of derivative financial
instrument in 2009。
28
Capital Expenditures

CAPEX
CAPEX (RMB
(RMB Billions)
Billions)

2009 As % of 2010 As % of YoY

total Budget total Change
Spend
Mobile Networks 57.0 50.7% 31.0 42.2% -45.6%
Of which：3G 36.4 32.4% 23.0 31.3% -36.8%
2G 20.6 18.3% 8.0 10.9% -61.2%
Broadband & Data 18.8 16.7% 15.3 20.8% -18.6%
Fixed-line 0.61 0.5% 0.6 0.8% -1.6%

Infrastructure &
25.0 22.2% 17.4 23.7% -30.4%
Transport Networks
Others * 11.1 9.9% 9.2 12.5% -17.1%

Total CAPEX 112.5 73.5 -34.7%

*Others include IT systems, VAS platforms and other expenditures

29
Healthy Balance Sheet
变化
Key
Key Asset
Asset &
& Liability
Liability Data
Data Financial 财务实力提升
Financial Health
Health Remains
Remains Stable
Stable

(RMB millions) 09.12.31 08.12.31

Assets 417,045 348,752

Debt-to-
Cash & Cash Equivalent 7,820 10,237 capitalization 26.5%
Ratio
Liabilities 210,578 141,025

Interest-bearing debt 74,463 29,993

Net Assets 206,467 207,727

Debt-to-capitalization Ratio 26.5% 12.6% Operating

Cash Flows >57 Billion
Net Debt-to-Capitalization
23.7% 8.3%
Ratio

Liabilities-to-assets Ratio 50.5% 40.4%

Operating Cash Flows from

57,733 57,241
Continuing Operations

30
Special Transactions
„ On 21 October 2009, China Unicom and Telefonica completed the mutual
investment of the equivalent of US$1 billion in each other:
z Telefonica subscribed 693,912,264 new shares of China Unicom at a price of
HK$11.17 each
z China Unicom got 40,730,735 Telefonica Treasury Shares at a price of
EUR17.24 each
z Due to Telefonica share price change from agreement date 6 September 2009
to transaction completion date, China Unicom has recorded a realized gain of
RMB1.24 billion on changes in fair value of derivative financial instrument
z In 2009，China Unicom has received Dividend of EUR20.37 million from
Telefonica
„ On 5 November 2009, China Unicom completed the purchase of
899,745,075 Shares owned by SKT by means of an off-market share
repurchase, with total consideration of approximately HK$10 billion. The
repurchased shares have been canceled

31
Thank you!
Appendix I：Income Statement
(Continuing Operations)

（RMB millions） 2009 2008 2009 2008

Revenue: Including：Sales & Marketing (21,020) (19,614)

Service Revenue 149,593 152,831 Cost of comm. Product sold (2,689) (2,156)

Other Revenue 2,189 5,062 Total Operating Expenses (140,924) (138,241)

Sales of Comm. Products 2,163 1,899 Operating Profit: 13,021 21,551

Total Operating Revenue 153,945 159,792 Net Finance Cost (945) (2,158)

Operating Expenses: Net Other Income（Expenses） 962 2,097

Realized gain on changes in fair

Interconnection Charges (12,955) (13,038) 1,239 0
value of derivative instrument
Depreciation & Amortization (47,587) (47,962) Asset Impairment Loss 0 (11,837)

Lease fee for fixed-line network in

Network, Operations & Support (21,728) (18,736) (2,000) 0
southern 21 provinces
Personnel Cost (21,931) (20,758) Profit Before Tax 12,277 9,653

G&A and Others (36,723) (37,748) Taxation (2,721) (1,828)

Net Profit 9,556 7,825

33
Appendix 2：Balance Sheet (selected)

（RMB millions） 2009 2008 （RMB millions） 2009 2008

Non-current Assets： Non-current Liabilities：

PPE,net 351,157 285,469 Long-term Bank Loans 759 997

Prepaid Leasing Payment 7,729 7,863 Bonds 7,000 7,000
Deferred Tax Assets 5,202 5,334 Total Non-current Liabilities： 10,753 13,092
Other Assets 11,596 9,087 Current Liabilities：
Total Non-current Assets： 386,432 310,619 Payables & Provisions 104,067 67,509
Current Assets： Tax Payables 917 11,307
Inventories 2,412 1,092 Short-term Bonds 0 10,000
Account Receivable, net 8,825 9,341 Short-term Loans 63,909 10,780
Prepayments & Others 4,252 2,715 Advances from Customers 19,719 14,914
Receivables from CDMA
Total Current Liabilities： 199,825 127,933
Business Disposal 5,121 13,140
Cash and Cash Equivalent 7,820 10,237 Total Liabilities 210,578 141,025
Total Current Assets 30,613 38,133 Shareholders’ Equity 206,467 207,727
Total Assets 417,045 348,752 Total Liabilities and Equity 417,045 348,752

34
Forward-looking Statements
Certain statements contained in this announcement may be viewed as ‘‘forward-looking
statements’’ within the meaning of Section 27A of the U.S. Securities Act of 1933 (as amended)
and Section 21E of the U.S. Securities Exchange Act of 1934 (as amended). Such forward-
looking statements are subject to known and unknown risks, uncertainties and other factors,
which may cause the actual performance, financial condition or results of operations of the
Company to be materially different from any future performance, financial condition or results of
operations implied by such forward-looking statements. These risks, uncertainties and other
factors include: the uncertainties in the development of telecommunication industry and
technology in the PRC; future growth of the market demand for telecommunication services;
changes in the competitive environment, regulatory environment and the PRC government’s
regulatory and/or industry policy, the effects of tariff reduction initiatives; the availability, terms
and deployment of capital; changes in assumptions upon which the Company has prepared its
projected financial information and capital expenditure plans; the effect of the Company’s
proposed adjustment in its business strategies relating to the PHS business; changes in
political, economic, legal and social conditions in the PRC; the potential continued slowdown of
economic activities at home and abroad, and other factors that will affect the execution of our
business plans and strategies as well as our business condition and financial results.

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