[ET Net News Agency, 10 August 2017] China Unicom (00762) said its controlling
shareholder China United Network Communications Limited has noted the recent media
coverage of "China Unicom established operating centers with Tencent and Alibaba and
speculation of the mixed ownership reform escalated".
The company clarified that to further advance the implementation of the strategy of
"Focus, Cooperation and Innovation" and to accelerate the transformation of the
centralised operating model of e-commerce towards "internet +", the Unicom Group has
established e-commerce operating centers for cooperation with Tencent and Alibaba,
respectively, in May 2017.
The operating centers referred to above are the Unicom Group's internal departments and
their principal function is to liaise with the internet companies such as Tencent (00700)
and Alibaba, and with the aim to establish an integrated ecommerce operating system with
internet partners and to optimise the capabilities of providing online integrated product
design, research and development and operating and supporting services. The two operating
centers referred to above are still in their initial stage of operation, and there will be
no significant impact to the Unicom Group's operation at this current stage.
The establishment of these operating centers is not related to the mixed ownership reform
plan. The Company has been informed by China United Network Communications that it is
still negotiating with the potential investors and has not entered into any legally
binding documents, including framework agreement or subscription agreement, with any
potential investor. (HL)