China Unicom, one of the country's three state-owned telecommunications carriers, said Thursday that its net profits surged more than 70 percent in the first half of 2017 while the company prepared for its mixed-ownership reform.
In a statement to Shanghai Stock Exchange, the company said its net profits for the first half jumped 74.3 percent year on year to 778 million yuan (about 116.59 million U.S. dollars).
Earnings per share was 0.037 yuan in the reporting period, but total assets dropped 2.9 percent to 598.2 billion yuan, it said.
China Unicom said the huge increase was a result of its transformation of business patterns and continued reform during the six-month period, as the company promoted new businesses to offset pressure from competition in the broadband market and shrinking revenue from fixed-line voice services.
Revenue from its main business rose 3.2 percent to 124.11 billion yuan in the reporting period, 77.5 percent of which was contributed by non-voice services, up from 72.7 percent a year ago, the statement said.
Meanwhile, China Unicom has made "breakthroughs" in business innovation in sectors such as cloud computing, Internet of Things and big data services.
Internet Data Center (IDC) and cloud computing services have brought in 5.8 billion yuan of revenue in the first half, up 22 percent year on year, the company said.
The carrier has been preparing for a mixed-ownership reform to bring in private investment via private share placements. Trading of the company's Shanghai-listed shares has been suspended since April this year.
According to plans announced Wednesday, it will issue shares to companies including China Life and Tencent.
In a separate statement Thursday, China Unicom said a detailed private placement plan will be revealed in three trading days and trading of its shares on the Shanghai market will be resumed.
Describing the mixed-ownership reform as "a major strategic opportunity", the telecom giant said it will seek more efficient operation and further business innovation while making strong allies.
However, the company also warned of increasing pressure on its financial performance in the second half due to rising market competition and the company's decision to cancel domestic roaming charges and long-distances call charges from September.
