China Unicom Hong Kong’s shares fell 8.61% on Wednesday, closing at HK$5.73, as investors reacted to a sharp decline in profitability and the company’s decision to skip an interim dividend.
The state-owned telecom operator reported a 34.8% year-over-year drop in net profit attributable to shareholders to RMB 4.1 billion. Total profit fell 36.6% to RMB 11.2 billion, while core business revenue dipped slightly to RMB 178 billion. Operating cash flow rose more than 13% year-over-year, reaching a multi-year high.
Management attributed the profit decline to higher value-added tax burdens and shifts in the timing of labor cost investments. The company also announced it would not distribute an interim dividend for the period.
The stock’s decline came as Hong Kong’s broader market traded sideways, mirroring a subdued session on Wall Street after a weak overnight performance.
