China Unicom’s 2025 annual report has laid bare the mounting challenges facing the smallest of the nation's ‘Big Three’ telecommunications giants. While the company posted a modest 0.7% increase in revenue to 392.2 billion RMB and a 1.1% rise in net profit to 9.1 billion RMB, these figures represent a sharp deceleration from the double-digit growth seen in previous years. The fourth quarter was particularly bruising, with net profit plunging nearly 50% year-on-year, signaling a loss of momentum in an increasingly saturated market.
The company’s performance in Environmental, Social, and Governance (ESG) metrics further distinguishes it—negatively—from its peers. Despite touting its 5G network-sharing agreement with China Telecom as a green success, China Unicom’s direct investment in energy conservation and environmental protection was a mere 496 million RMB in 2025. This pales in comparison to the 2.58 billion RMB spent by China Telecom and the massive 10.4 billion RMB committed by China Mobile, leading to MSCI ratings as low as CCC for its A-share listing.
Beyond environmental concerns, a persistent pattern of regulatory non-compliance has tarnished the company’s reputation. In the past year, various branches have been hit with administrative penalties for offenses ranging from payment platform violations and deceptive marketing to failing to implement anti-fraud real-name registrations. This systemic operational friction is reflected in consumer sentiment; despite having fewer users than its rivals, China Unicom faces a disproportionately high volume of complaints regarding hidden fees and service obstacles on major consumer platforms.
Adding to the uncertainty is a period of significant leadership churn and cooling institutional interest. Several high-level executives, including the Senior Vice President and a director, resigned ahead of their term limits, while the company’s new Chairman, Dong Xin, was recruited from rival China Mobile to spearhead a turnaround. Most telling, however, was the recent move by the China State-Owned Enterprise Structural Reform Fund to divest 1.08% of its stake, cashing out 1.78 billion RMB and suggesting that even state-aligned investors are reassessing the company's long-term value proposition.