Unicom Omitted from SASAC SOE Profit-Sharing Plan

Marbridge Consulting, 12/19/07

On December 18 SASAC published a list detailing the percentage of profits which SOEs directly under its oversight must pay to the Ministry of Finance. Five of China's six main telecom operators, China Mobile (NYSE: CHL; 0941.HK), China Telecom (NYSE: CHA; 0728.HK), China Netcom (NYSE: CN; 0906.HK), China Tietong and China Satcom were listed among the 18 SOEs paying the highest percentage - 10%. China Unicom (NYSE: CHU; 0762.HK; 600050.SH), however, was not listed in SASAC's profit-sharing plan. Several industry insiders have suggested that this omission is an indication that SASAC plans a restructuring of Unicom soon.

SASAC designated 2007 a trial year, during which all SOEs are to pay only half the required percentage of their 2006 after-tax profits.

Keywords: SASAC China Unicom CHU 0762.HK 600050.SH China Mobile CHL 0941.HK China Telecom CHA 0728.HK China Netcom CN 0906.HK China Tietong China Satcom SOE restructuring financing telecom wireless

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The information contained in this newsletter is based upon sources that Marbridge Consulting believes to be reliable, and we have made every effort to translate the original articles or article excerpts as faithfully as possible. However, Marbridge Consulting makes no warranty of and assumes no legal responsibility for the accuracy of either the original source material or the English language translations.

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