China Unicom: keep low assets to protect high liabilities

Introduction
The company is approved by the State Council to be set up as a holding company, with the scope of business for the telecommunications industry investment. The Company is limited in holding the shares of Unicom Red Chips Company through Unicom BVI and maintaining the actual control of Unicom Red Chips.
The company provides a full range of telecommunications services, including mobile broadband, fixed broadband, GSM, fixed local telephone, information and communication technology services, data communication services and other related value-added services, through the Unicom Red Chips and its subsidiaries.

financial analysis
Having the total assets of 615.9 billion, of which 371 billion in fixed assets,and construction projects is under construction 78.1 billion, China Unicom is undoubtedly a heavy-asset company.
With 822 billion of current assets, 341.5 billion of current liabilities, the short-term debt burden pressure is very large. Another point is that the sale of goods and the provision of services received cash is 287.8 billion, the current liabilities is far greater than this value, it seems difficult for the company to repay the debt.
The purchase of fixed assets, intangible assets and other long-term assets from cash is 102.3 billion, China Unicom is still in large-scale expansion.
The net cash flow from operating activities was 79.5 billion, which provided a great deal of support for lending capacity. In fact, China Unicom's solvency is relatively strong, which makes it to bear high current liabilities.
Having the operating income of 274.1 billion, net profit of 479 million, of which investment income of 743 million, joint venture income of 357 million, operating income of 2.7 billion, China Unicom's main business has not made money.

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