China Trade Information

China Securities Regulatory Commission (CSRC) has ratified the merger of China Unicom and China Netcom on Wednesday, said Shanghai-listed China United Telecommunications Corporation Ltd. ( CUTCL).

CUTCL has revealed previously that after the incorporation, the company’s resources of client, marketing, procurement, and network will increase and expand significantly. The number of its customers will grow considerably, and the channel coverage will be broader and more reasonably distributed across China.

Statistics show that for 2007, gross assets of China Unicom stood at 149.42 billion yuan, its net assets 97.22 billion yuan, its yearly revenue 99.54 billion yuan, and its net profit 9.3 billion yuan.

Upon completion of the merger, the regrouped company’s gross assets would be 366.54 billion yuan by the end of last year, net assets 203.91 billion yuan, yearly revenue 150.58 billion yuan, and net profit 19.66 billion yuan.

Since CUTCL will be the controlling shareholder of new China Unicom, it will benefit from the latter’s expansion in scale and growth of earnings per share as well as net assets per share.

Tags: China-Netcom, China-Unicom, CSRC

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