According to recent reports, since the state announced China Unicom's reform initiatives, the company has taken its first major step in a water-based reform. Following the mixed-ownership restructuring, China Unicom has shown impressive performance in the third quarter, with the initial phase of reforms delivering an unprecedented level of intensity. In just half a month, an investment of 75 billion yuan was fully secured.
As per media coverage, China Unicom’s strategic investors have completed their cash subscriptions. This happened less than two weeks after the company received official approval from the China Securities Regulatory Commission on October 13, far earlier than the maximum non-public issuance period of six months. Industry insiders reveal that major players such as China Life Insurance, Tencent, Baidu, JD.com, Alibaba, Suning, Guangqi, Huaihai Ark, Xingquan Fund, and the Structural Adjustment Fund have injected nearly 75 billion yuan in real capital within a short time frame, reflecting strong confidence in the future of China Unicom’s mixed reform.
According to the previous mixed reorganization plan, China Unicom intended to issue no more than 9.037 billion shares to strategic investors, raising up to approximately 61.725 billion yuan. Additionally, the company planned to transfer around 1.000 billion shares at an estimated price of 12.975 billion yuan, bringing the total to about 74.7 billion yuan.
In addition, China Unicom also plans to grant up to 848 million restricted shares to core employees for the first time, aiming to raise around 3.213 billion yuan.
As the only central enterprise in the first batch of mixed reform pilots, China Unicom is also the world’s first “telecom operator + internet giant†strategic integration pilot. The company’s mixed reform has attracted significant attention.
Currently, China Unicom is making substantial progress in its mixed reform process. Internally, the company is undergoing intensive and efficient reforms:
- The first step involves organizational restructuring. Since September 6th, when China Unicom launched its “slimming down and health†initiative, provincial companies are expected to reduce projects by 26% and staffing levels by 50.14%. All previous streamlining efforts have been completed, with provincial management departments reducing staff by an average of 26%. This first wave of reform can be described as one of the most significant in the company’s history.
- The second step focuses on “small contracting.†While streamlining the organization, China Unicom has introduced a small contracting model aimed at boosting the energy of grassroots units. This allows tens of thousands of front-line employees to take direct responsibility for resources and incentives, offering a platform for entrepreneurs to create more value for the frontline workforce.
- The third step is “up and down mobility.†In line with marketization, China Unicom became the first in the industry to break away from the traditional practice of “taking money without working†for those who were transferred to lower positions. A method of “demolishing temples and monks†will be used to eliminate 5% of managerial personnel, allowing cadres to move up or down based on performance. These actions are accelerating the pace of China Unicom’s market-oriented operations.
In its latest financial report, China Unicom reported strong results for the third quarter, with net profit attributable to the parent company expected to increase by 168.4% year-on-year. The growth rate of main business income rose from 3.2% in the first half to 4.1%. Driven by the innovative development model involving BATJ internet giants, China Unicom achieved record high numbers in monthly net subscriber additions and 4G user gains in September.
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