Earnings Call: H2 2020

Mar 11, 2021

Good day, ladies and gentlemen. Welcome to China Unicom's 2020 Annual Results Global Investor Conference Call. Today with us on the line we have Mr. Wang Xiaochu, Chairman and CEO of the company, Mr. Chen Zhongyue, Executive Director and President, Mr. Zhu Kebin, Executive Director and CFO. The telephone conference will be live webcast. In addition to the questions to be raised on the telephone lines, we welcome investors to put forward their questions online at the Roadshow Center of the Shanghai Stock Exchange. 大家好，欢迎参加中国联通2020年度业绩全球投资简报电话会议。今天出席会议有公司董事长兼首席执行官王晓初先生，执行董事兼总裁陈忠岳先生，兼董事兼首席财务官朱克平先生。今天的电话会议将采用网络直播的方式同步进行。除了电话提问之外，我们欢迎投资者通过上证路演中心网络平台进行提问。In 2020, the company's service revenue increased by 4.3% year on year to RMB275.8 billion, outperforming the industry revenue growth of 2.6%. Our profitability was steadily enhanced. Net profit was RMB12.5 billion, sustaining double-digit growth. We believe most of you might have seen the company result presentation on the website and for time convenience, the management would not go through the presentation, but go straight to the question of your interest. 2020年公司实现服务收入2758亿元，同比提升4.3个百分点，高于行业平均的3.6个百分点，盈利能力稳步提升，净利润达到125亿元，继续保持双位数增长。我们相信大部分投资者已经从公司网站看过公司的业绩材料，为了节省时间，管理层不会介绍有关材料了，并会直接回答大家的提问。Jason, could you please pass on the first question from investor? Thank you. Ladies and gentlemen, we will now begin the question and answer session. To ask a question for today's session, you will need to press star one on telephone. Our first question is coming from Danny Chu from Bank of America. Please go ahead. Hello, Danny. Danny, please kindly unmute your line and you may start to ask your question. 大家好，我是美林的朱伟杰，有三个问题。第一个问题是，因为我看到的是我们公司去年年底的时候，我们5G用户全国大概是28%。我想请教management，就是我们对今年我们5G用户的整个market share有怎么样的展望？主要是因为下半年可能就是广电他们也开始就是交收用户。在过去4G的年代，我们就争取三分天下，但是在于广电开始交收客户，我们对我们公司争取的5G的market share怎么看？这是第一个问题。第二个问题是我看到的是我们在去年fourth quarter，我们的网络运营开支，还有人工费，还有G&A，在最后一个quarter增加很多，versus third quarter。有没有特别的原因？这是第二个问题。第三个问题是关于我们的产业物联网。因为几年前公司跟我们说希望产业物联网我们总的收入大概15%。非常恭喜公司，我看到FY20年我们已经见的是15%。所以我想请教就是我们现在对比方说未来三年有没有一个新的目标，关于Industrial Internet呢？谢谢。 Thank you, Danny. Three questions from the investor. The first one he mentioned about by the year end of last year, we have 5G package subscriber market share in the market of 22%. He wished to know what is our expectation by the end of this year, the market share. And in particular, he pointed out that in the second half of this year, it's likely China Broadcasting Network may enter into the 5G market. In the past when there are few operators only, the company may have the goal of having one third of the share. And then with China Broadcasting Network coming, will we change the target or goal? Second question from him. He has noticed about the fourth quarter of last year, the network cost has increased a lot. Wages expense has increased a lot relative to third quarter. General admin expense also increased a lot relative to the third quarter. He wished to know any reason why it happened that way. Third question from him. He would like to know, given that in the few years ago, the company had set the target of 15%, of the revenue share to be contributed by Industrial Internet business. And he congratulates the company for achieving that for the year end last year. And he wished to know whether we have set another target for few years later about the Industrial Internet business revenue contribution. 好。第一个问题，尽管从运营商的角度又增加了一个运营商，但从网络的容量来看，其实并没有增加。还是以5G 有四个运营商，但是是两个网络，然后4G和3G的网络只有三个。所以我们认为从总体上讲，竞争度的增加是有限的，而且市场份额也相对会比较平稳。谢谢，这是第一个问题。 The Chairman would like to say even though we are expecting a new operator to come into the market, as a result there will be four operators. However, he noted that there are still only two 5G networks in China and also only three networks of 3G and 4G in China. Overall speaking, the change to the competition will not be significant and he doesn't expect there will be a lot of change to the company landscape. 那么第二个问题，首先表达你看得很仔细。确实是你觉得前三个季度都比较好，第四季度有一些成本怎么突然出来了。这是公司为了从prudent，怎么看怎么更加稳健的角度。我们有一些比如说资产的拨备，比如说我们坏账的计提，总是从控制风险的角度，我们有一些计提的量相对大一点，但是像坏账的计提多一点，对收入，对利润确实都会产生一些影响，但是它对经营结果是没有影响的。到今年如果没有出现那么多坏账，它也不会发生，只是提前预提，所以使得从最后一个季度看来，各种成本偏高一点，但是你也不用担心。管理层在董事会的领导下，这个目标和我们的股东是一致的。不断地提高股东的价值是我们的最高目标。谢谢。 The Chairman would like to say that you have sharp eyes for the details, and he fully agrees that in the fourth quarter, our cost has increased compared to the previous quarters. He would like to say that this is mainly because the company wanted to control risks. For prudent sake, the company increased the asset write-off or increased the provision for bad debts. In fact, this is done in a prudent way and it won't affect the actual operation. This is only accrued, not paid. The management will, under the leadership of the board, make sure the interests of the company will be aligned with the shareholders. 最后一个关于这个新增业务，这个创新业务，或者你是把它称作为产业互联网。确实我们当年是做过promise的，就是三年要达到总收入的15%这个目标。三年前的承诺你还能记住，我非常感谢。我们是全面完成了这个目标，so all promises is on the KD. The Chairman would like to say that Danny, you have got a good memory and he thanks you. He recalled that a few years ago the company set the goal about the Industrial Internet businesses to contribute 15% of the total revenue. He is so pleased to see that our promise has been delivered. 那么后三年我们总体感觉总体的绝对值还是会增加的，比前三年。但是由于前三年累计下来的规模变得很大了，所以增长率会略微下来一点，因为现在已经到了去年年底，这块的总的收入达到了427亿，超过了427亿。基数大了以后，增长率就会下来一点，但是仍然后三年会保持在20%以上的增长。 The Chairman would like to say that he expects the absolute value of the industry business will continue to grow. However, given the base has reached a larger scale — for example, last year the scale of the business was talking about CNY42.7 billion already — he expects the growth rate will slow down a bit. However, he is optimistic that in the coming three years we can maintain annually still more than 20% growth rate on this business. 谢谢。好的，谢谢。 Thank you. Our next question is coming from James Wong from UBS. Please go ahead. 管理层晚上好，我是瑞银的分析师James，感谢您今天的时间，也恭喜公司在疫情影响下还能取得这么好的一个成绩。我有三个问题，第一个问题是关于5G的资本开支，大家普遍认为就是20年到22年是5G建设的峰值。那明年我想了解一下，不知道公司能不能透露，我看到今年也是比较平稳的，但是明年是不是资本开支还是一个上升趋势？然后过了这三年的投资周期以后，运营商是否在23年的时候，资本开支会有一个比较明显的下滑？这是第一个问题。然后第二个问题就是双策略，我看到公司今年现金流很强劲，而且账上基本上也是净现金了。不知道公司在未来一两年是否有打算把派息率进一步地提升，也可以更好地反馈我们的股东们，包括这些战略投资者们，前三年进入我们的股东的结构里面。第三个问题是关于EBITDA的，因为我看2020年收入成长还是比较好，但是EBITDA是比较稳定的，而且人工成本涨了10%。所以我想了解一下，在今年来看的话，EBITDA是否会有一个正的增长？谢谢。 Thank you, James. Three questions from the investor. The first one he would like to speak about the 5G CapEx. In fact, maybe last year, this year, next year will be the peak period for the 5G CapEx of the company. And he noticed that the CapEx of this year is only slightly more than last year. And he'd love to know after the peak period in 2020 to 2022, how was the outlook of 2023 5G CapEx? Will it come down a lot in that year? Second question from him is regarding the dividend payout ratio. He has noticed the company has generated strong cash flow and also the company effectively has achieved the net cash position by the end of last year. He wished to know whether the company has any plan to increase the dividend payout ratio to reward the shareholder, in particular, including the strategic investor. Third question from him is, he noticed about the EBITDA last year is only stable and while the wages has increased by 10%, and he'd love to know about the outlook of EBITDA margin in the coming year, 2021. 好，那关于这个5G的CapEx。总体上我们预计，5G和4G还是不太一样，它主要的应用的场景主要是城市，还有就是工业区域，以及两路，就是公路和铁路。所以它不像4G进行地理上的覆盖，它主要还是以城市覆盖为中心。所以我们认为总体上到100万站左右，投资就会下降。所以去年、今年、明年，三年维持在700亿左右的投资，其中移动业务5G的投资350亿左右，持续三年。我觉得基本上，5G的投资就要开始进入下降的阶段，除非5G的流量找到新的应用，5G的流量迅速上升，那要进行及时的调整。这是第一个问题。 The Chairman would like to say the 5G CapEx he expects is quite different from 4G CapEx, because 5G is mainly at this moment intended for the city area, industrial zone, and also the highway and also the railways, and it is quite city oriented. He expects the peak period to be about 2020 to 2022. In each of these three years, we spend about CNY 70 billion, out of which one half, roughly CNY 35 billion, to be for 5G network construction. Effectively, we can achieve 1 million 5G base stations by the end of 2022, and it should be quite sufficient. By that time, the CapEx thereafter should come down, unless we see new business opportunity from new applications of 5G. 第二个关于派息率。我们刚才说了，就是在5G投资阶段，我们认为这个时候增加派息率还是有一些风险的。所以我们认为先保证这三年，先把5G的建设任务完成。如果在5G三年的投资计划完成后，我们找不到新的对公司收入有增长拉动、利润增长的机会的话，我们会董事会来考虑增加派息。这是第二个问题。 Regarding the payout ratio, the Chairman would like to say that, given that the coming one or two years together with last year constitute a three-year period being the peak period for the 5G investment, he would like to retain sufficient cash flow for the development. Thereafter, in case the company could not find good investment opportunities, the company would be in a good position to consider increasing the dividend. 第三个，关于EBITDA margin的变化，我认为今年会和去年比较平稳，主要的原因就是我们在创新业务、新的业务上，我们认为对于现金部分还需要支持。因为我们的数字科技公司刚刚成立，在云、大、物、智、安这些领域里面仍然需要保持一定的现金流，而且要吸引一些高端的领军人物。所以在这个工资人员的支付和新业务的研发费用上，我们认为还是需要储备，为公司长远的增长打下更坚实的基础。谢谢。 The Chairman would like to touch upon the EBITDA margin. He expects this year the EBITDA margin will be quite stable compared with last year, given that the company still needs to invest quite a substantial amount in CapEx cost on the new business. In particular, the company has established a new subsidiary digital technology company, which will try to provide the cloud, big data, IoT, and also artificial intelligence security services. This requires that we need to accrue a lot of talents and also we need to invest a lot in R&D. 王总，我想确认一下，您所说的今年的目标是EBITDA margin还是您觉得今年EBITDA是会有正增长，还是EBITDA总体还是一个比较稳定的趋势？ EBITDA是增长的，EBITDA margin会比较平稳。好，谢谢王总。 The Chairman would like to answer the follow-up question. He'd like to reiterate that he expects the EBITDA to increase while the EBITDA margin will be relatively stable. Once again, if you wish to ask a question, it is star one on your telephone. Your next question is coming from Neil Anderson from HSBC. Please go ahead. Good evening. I have two questions, please. The first one relates to network costs again and specifically electricity costs relating to 5G. Can you provide an update on how those are trending? The second question is about the Industrial Internet business. Can you discuss the competitive dynamics? Where are you seeing most competition in those business areas? Thank you. Thank you, Neil. 这个投资人有两个问题，第一个问题就是他想了解一下网络运营成本，其中那个电力电费。他想了解现在那个增长情况怎么样，往后趋势都是怎么样。第二个问题他提出的是有关和产业互联网。他想请公司领导讲一讲，现在基本上竞争最激烈的范畴是在哪一个。5G的网络，我们总的去年一年的电费增长量大概是上升了5%。其实5G这块的电费增长还是比较多的。那么为什么只有5%呢？是因为我们同时为了节能减排，达到排放的标准，我们把这个老旧设备进行了三个工作的调整。第一个，就是使得我们有一些设备的退网，像2G网络，包括我们网络集中化以后的网络极简，使得我们总的一部分落后淘汰的产能能够降低我们的能耗，这是第一个。 The Chairman would like to say that the electricity expenses last year have increased by about 5% year over year. In fact, part of the reason is because the 5G base station access consumes quite a lot of electricity. The reason why we are still able to contain the electricity expense increase to 5% is because we have strengthened the efforts on energy savings. In particular, we try to speed up the withdrawal of some old equipment or obsolete equipment, and in particular, including the 2G equipment. 那么第二方面，就是在采购的时候尽量选择一些低能耗的。能耗标准作为我们采购的标准的内容之一，使得新设备的总的能耗能够有所下降。Yeah. And the second measure we have taken is upon procurement. We deal with it from the source. I mean, we will try to acquire some low energy consumption component or equipment. 第三个，就通过共建共享，像和中国电信的大规模的共建共享，使得5G的基站总数，中国联通需要负担的量就大大地下降。这样使得整个电力的增长，尽管基站增长了，到现在运营的5G基站有38万个，但是电力耗电的费用只增长了5%。这是第一个问题。Yeah. Also, finally, Chairman would like to say co-build, co-share have helped a lot on our saving of the electricity expenses, because even though when we now have 380,000 5G base stations, we are only responsible for only paying about half of it. So it can save a lot of the electricity expenses. 那么第二个问题，就是关于产业互联网的。我们目前遇到的主要的竞争对手，过去我们好像遇到的只是三大运营商，我们运营商之间的竞争更多。随着云大物智，尤其是科创公司的成立以后，我们觉得现在我们的竞争对手主要发生了比较大的变化，主要是社会上的一些公司，比如说公共互联网公司，第一类的像阿里、腾讯、百度，既是我们的股东，也是我们的竞争者。那么第二个，就是各个行业，有一些行业，有一些顶尖的 ICT的公司，我们认为我们还是感到充分的竞争了，而且成为了我们的主要的竞争对手。 When we enter and expand more into the Industrial Internet businesses, our major competitors have changed significantly. We are not only competing in the past with the other two telecom operators. Now we have changed to face a lot more new competitors. For example, in the public internet, we have competitors like Alibaba, Tencent, Baidu. In the ICT business, we have a lot of social companies to compete with us. 谢谢。 Thank you, Eric. Thank you. Once again, if you wish to ask a question, it is star followed by one on your telephone keypad. Our next question is coming from Tian Do from GIC. Please go ahead. Hi, Jackie. Hi, Chairman Wang. Thanks very much for the opportunity to ask a couple of questions. Both on your cash flows. Number one, you disclosed some bad debt expense and inventory write-offs of about CNY 5.5 billion. That's up quite a lot versus the previous year. I'm just wondering whether you think you can actually write back some of those provisions in 2021, whether you can actually collect some of those bad debts written off. Second question, you've got a disclosure of a CNY 16.5 billion outflow from your group finance company to a related party. Just wondering what that is. I think last year that amount netted off against an inflow. This year it doesn't net off quite, it's about 3 billion difference. So I'm just wondering what is that related party? Thank you. Yeah, thank you, Tian Do. 投资人有两个问题，第一个问题也是关于现金流的。第一个问题他看到我们的现金流人员表，看到我们的坏账准备增加了55亿人民币。他想问问这个数基本上公司会不会有一个预期，它有一个部分应该明年可能能收回来，那我们就可以把它拿回来的。然后第二个问题，他看到我们有一个数，就是165亿人民币，我们去给了一个现金流，给一个关联方，这个是谁？是关联方，我们给了钱给他。第一个问题你们准备一下。你们准备。第一个问题是这样的，首先要感谢你对我们的财务报告看得非常仔细。我们在这个坏账准备上，今年计提的是比较多的，主要原因是我们觉得疫情会不会带来有一些坏账的上升。但实际上，我们预计，我们计提的坏账准备里边，有一半是不会发生的。所以到了今年，如果没有发生的话，那么今年的收入也好，利润也罢，无非是去年的收入和利润在今年再现出来。这是第一个问题。 The Chairman would like to say that you have sharp eyes for that. In fact, we made the prudent provision due to the pandemic mainly, and we hope about one half of it, hopefully we could strive to get it back. Once again, if you wish to ask a question. 第二个问题就是你问的那个160多亿，那个钱主要是支付给其他公司的费用，就是一年的租金。 The Chairman would like to address the second question: the money, the fund flow we are paying — CNY16.5 billion — is paid to the tower company for the rental. Thank you, Tian Do. I think the time has come for the management to answer some online questions first from the live webcast platform received earlier from the investors, which are of common interest. 现在管理层将会回答投资人通过网络平台刚才提出的一些普遍关注的问题。我们先收集了有三条比较大家普遍关注的。第一条就是公司三年以来混改取得了哪些成果？然后第二个问题最多是为什么混改以来联通A股公司股价会下降？然后第三个问题就是公司有什么策略去提升A股公司的股价。现在请管理层回答有关提问，你要等一下，我再翻译出去。你是不是先把题目翻译一下？ There are three questions from the online platform, and we would like the management to address. The first one is what are the company's achievements on mixed ownership reform over the past three years? The second question is, why has the share price of Unicom A-share Company decreased since the mixed ownership reform? The third question is, what's the company's strategy to boost the share prices of the A-share Company? 三年的混改，首先我觉得最大的是机制上。机制上变得比以前更加灵活，员工更有积极性，这是第一条。第二条就是和战略投资人还是有很多的整合效应，我们既有竞争，也有合作，尤其是和BAT大的这些互联网公司的合作，还是为中国联通。比如说我们和腾讯的网卡，我们和阿里在语音方面的合作，我们和百度在智能车和其他的智能项目上，智能医疗等方面等等，包括和京东在大数据方面的合作，有了很多的合作为中国联通的创新业务开创了新的道路。这是第一个问题吧。 The Chairman would like to answer the first question regarding the benefit and advantage we have achieved from the mixed ownership reform. It includes a few aspects, including, first of all, the system and mechanism. We have improved a lot, and the incentive system has improved a lot. The second is we have implemented a lot of strategic business cooperation with the strategic investors, bringing a lot of synergies, including Alibaba on the cloud business, Baidu on the smart vehicle, Jingdong on the big data, and also the Tencent joint venture asset. 那么三年的运营资产的价值和效能明显地提升。我们能看到，比如说自由现金流，混改以后我们比以前三年的自由现金流，四年增加了一千四百多亿。然后净利润持续的三年前都是在行业的领先，都是double digit，都是两位数的增长，包括分红都是两年的增长。那么创新业务从6%左右的占比，现在上升到了15.5%等等。我们整个公司的健康程度和为股东创造的价值是十分明显的。 The Chairman also would like to address the outcome. First of all, on the free cash flow, the company in the past four years since the mixed-ownership reform have generated more than CNY140 billion, and the profit increase and the dividend increase for the three consecutive years has been double digit, and the profit increase has been industry leading. The innovative businesses have also contributed to the revenue from 6% years before the mixed-ownership reform to 15.5% last year. Spectacular results have been achieved, and it drives the healthy growth of the company. 那么第二个问题，关于股价的原因，确实你们讲的对的，管理层也注意到，就去年的下半年开始，中国联通的股价是走低了很多。那么首先，股价的变化是多种原因引起的，整个行业的估值，包括全球的电信公司的股价都出现了比较大的波动。加上中国还有提速降费，尤其是最近的股价的变化是由于中美的贸易摩擦，尤其是美国对中国企业要取消ADR，包括在美国的分公司要取消等等的影响，使得我们A股股价受到了比较大的影响。 The Chairman would like to say that he fully noticed the share price pressure experienced in the past period. However, it may be attributable to a number of factors, including overall speaking, the telecom industry regulation has been under pressure. Also, it may be resulting from the speed upgrade and fee reduction policy of the government, and also the China-U.S. conflict, including the delisting of our ADR, and also the license issue of our U.S. businesses. 那么公司也在正在努力。首先第一条还是把自己的公司经营好，保持公司的资产的质量和回报的能力不断地上升，这是最主要的，也是最基本的。是金子总会发光的。 The Chairman would like to emphasize that for the company, we will strive to make sure we will deliver very favorable operating results, and in particular to increase the shareholder return. He is confident the gold will shine by itself one day. 第二个就是跟美方的，尽管无论是ADR还是在美国经营业务的总量，对公司总的价值方面的影响不大，但是我们认为我们还是需要跟美国的相关监管部门积极地沟通，也希望美国的各个监管部门能够秉公办事，实事求是，公平公正地来处理中国联通的事项。 The Chairman would like to say that although the ADR delisting impact or the US business impact will not have significant impact on our company's overall business, he would like to emphasize the company will try to have good communication with the regulators, and he looks forward to having the US regulator treat us in a fair and equitable manner. 那么第三方面，就是考虑我们回购一部分的股票。比如说我们今天已经公布，我们联通的A股将回购部分的股票来，第一，是为我们全体骨干能够增持、持有公司的股票之外。第二个，更重要的是能够对股价的提升起到积极的作用。而且，A股的回购会辐射到红筹公司的股价。所以我们能够做的，只要能够让我们股东有所回报的，中国联通的管理层都会积极去思考和响应。谢谢。 The Chairman would like to say the company has today announced that the A-share company will make some share buyback, mainly for the purpose of the employee share incentive scheme. In fact, it will also help a bit on the A-share share price, and it will also have some impact on the H-share prices. Overall speaking, the Chairman would like to say the management and the board of the company will try to explore various ways to try to make sure the good return for the shareholders. The management will answer the second batch of online questions again later. We shall now move back to answer the questions from investors on the telephone line first. 管理层稍后将会再回答线上一些提问，我们现在先回答电话上一些投资人提问。Jason, could you please pass on the next question from investor? Once again, to ask a question today is star one on your telephone. Our next question is coming from Billy Dee from Credit Suisse. Please go ahead. 谢谢王总，我是瑞信的Billy，我有两个问题。首先恭喜公司在疫情期间也取得一个不错的成绩。第一个问题就是关于5G的用户数量，我看到2020年年底我们有7000万的一个5G用户。之前根据我听的公司的一些汇报，就是说之前并没有公布这个5G用户的数量，因为可能比较难去算5G用户的定义到底是怎么样的。所以想知道为什么现在我们可以去怎么定义一个5G的用户数量？这是第一个问题。然后第二个问题就是关于中国电信，我们看到他们也在做一个A股的上市，去支撑它的这个产业互联网的一个整个的发展。我想了解一下，联通来说，有没有说这方面有什么想法，或者是有更大的投资吗？谢谢。 Thank you. Two questions from the investor. The first one, he noticed about the company disclosure of 70 million 5G subscribers by the end of last year, and he noticed that in the past, the company has hesitation in disclosing the figure because of the different definition of the 5G subscriber. He would like to know the reason why and what is the definition of the 70 million nowadays. The second question from him is he noticed about the A-share listing plan of China Telecom, and on that basis, he wishes to see any investment thoughts by the company. 首先，我们的这个用户数公布，就5G的用户数的定义，是有很多种方法，哪一种方法更科学？确实有不同的意见，仁者见仁，智者见智。那么我们这次公布的这个用户数，我们是完全按照移动和电信的统计的方法一致。这样的一致性的目的是为了我们所有的分析员、投资人能用一样的尺子来看待三家公司，方便我们的分析员们来进行分析，对比三家公司的经营情况。 The Chairman would like to say that there are various different definitions of the 5G subscriber. In fact, which one is more appropriate or scientific, different people will have different thinking. The reason why we are now adopting this is mainly because China Mobile and China Telecom have been adopting this 5G package subscriber definition. For the purpose of being more convenient to the investor and analyst for comparison purpose, the company has adopted this definition. 那么第二个问题，关于我们目前的公司，从现金的角度上讲，从公司的债务角度上，目前公司通过全体的同事们的努力，现金流急剧的改善，所以我们的债务都是处在一个合理的状况下，我们没有必要进行无论是A股还是香港进行重新再发股来募资，我们没有这个必要。公司的现金流非常强劲，而且公司的债务比例也比较合适，我们认为不需要资本的重新再投资。 The Chairman would like to point out that given that the company has good free cash flow and also the debt level is at a reasonable level, the gearing is very reasonable. He sees no need for any equity financing, no matter from the A-share market or from the Hong Kong share market. 那么，但是这并不排除我们可能会对一些做得比较好的创新公司来进行分拆上市的可能性。但是这些行动如果出现的话，我们不是为了资金，而是为了进一步搞活这些，让它更加市场化，让这些公司能够更加市场化，是我们的目标。谢谢。 The Chairman would like to supplement by saying that it doesn't rule out that the company may have some plan to spin off some innovative businesses, but that is not for the purpose of funding, but more for the purpose of trying to drive them to be more market-oriented operation. Thank you, Billy. Once again, if you wish to ask a question, please press star followed by one on your telephone keypad. Our next question is coming from Qian Kai from CICC. Please go ahead. 王总、程总、朱总晚上好，我是中金钱凯。我也有三个问题。第一个问题是关于我们5G的ARPU的情况。我们公司也第一次公布了5G的用户数，总量也是比较乐观的。我看到我们过去这一年整个的移动用户数的移动用户的ARPU值提升也是比较明显。所以我想从4G到5G，从联通这边看，大概ARPU的提升的幅度，包括今年的整个我们联通的ARPU的一个预期是什么样的？这是第一个问题。第二个问题，我想问一下700兆的问题。我也看到这次两会，我们联通的张云勇委员也提了这样一个建议，就是未来700兆实现共享，我们从我们这个网这样的共享的方式。所以我不知道未来的这个700兆的使用，从我们联通的角度来看，有没有更好的一些想法？那最后一个问题，就可能问一个稍微长期一点的问题。王总也是我们电信行业的一个老兵，尤其过去20年，王总从移动到电信到联通，这一路走来，可以说每一站都很精彩，特别到联通之后，我也是跟了那么多年，对联通历史怀。从我们混改到双千兆，两家的这种合作共享。所以我想问王总一个问题，就是说如果再展望一下十年，你觉得咱们中国电信行业未来的机遇和挑战在哪里？好，谢谢。 Thank you. Three questions from the investor. The first one is regarding the ARPU. He has noticed that the company's mobile ARPU has been increasing, and he wishes to know about the 4G subscriber migrating and upgrading to 5G, what's the acquisition level, and he would also love to have the outlook about the 2021 ARPU, including 5G ARPU. The second question from him: he noticed that a colleague of our company has put forward a proposal in the Two Sessions regarding the 700MHz spectrum and proposing about the co-build, co-share of the IT network on this spectrum, and he wishes to have more color about it. The third question from him: he has high regard for the Chairman and has known the Chairman for a long, long time, and he has seen the great results achieved by the Chairman from China Mobile to China Telecom and now to China Unicom. He would love to have the vision from the Chairman about 10 years later, or what will be the biggest challenges to the industry. 首先，5G去年的ARPU，总体上使用5G的用户的ARPU大概在70块钱左右。那么今年我们预计因为随着5G的用户数的不断增加，5G的ARPU值会略有下降。但总体上，从一个4G的用户升迁到5G，平均的ARPU值，我们认为还是会提升超过10%左右。 The Chairman would like to say that the 5G ARPU for a 5G user is roughly about CNY 70, the 5G user ARPU. He expects this year the 5G ARPU, given that we are expanding the scale, it will come down. However, he expects our existing 4G users upgrading to 5G will still be able to maintain about 10% uplift on the ARPU. 第二个就是关于700兆这个频率，我觉得这对于四家电信运营商其实都是一个机遇。什么呢？就是四家如果联合建设，或者是联合使用这段频率，在农村的偏远地区和两路，就是公路和铁路，我觉得对四家公司都是极其有利的，因为四家公司平均分摊了它的成本，使得在农村地区和偏远地区的效能能够更高，对于任何一家公司都是有利的。 Regarding the 700MHz spectrum usage, the Chairman would love to advocate for one single network to cover the rural area, and in particular the remote area, and also the highway and railway, to be co-shared by four operators on this one single network. He believes this will be very enhancing to all the four operators. 第三个问题，关于机遇的问题。我觉得通信公司的最大的机遇还是要创新。如果你只停留在通信业、电信业，那它是有围墙的，是有天花板的。而且，以通信，以连接为主的市场，以人物与人之间的连接，我觉得已经基本到了一个饱和时期。我当时在中国电信提出叫De-telecom，就是去电信化。如果打开围墙，你去看整个云、大、物、智、安等等，智慧化的天地无限。这是第一个观点。 The Chairman would like to share his vision about the outlook of the industry. First of all, he would like to say the opportunity must come from innovation. In particular, the human-based connection services will have come to a ceiling, so there must be innovation. Since the time when he worked at China Telecom, he has proposed the idea about De-telecom, i.e., breaking the walls of the telecom and trying to expand into some other non-telecom business. For example, he mentioned about the cloud business, big data, IoT, artificial intelligence, and also network security. 第二个就是我们自己运营的体系的智能化、智慧化的问题。我们在创新业务天天给不同的行业去介绍，我们通过数据、产业互联网、智能化能提高什么效率，但我们自身这个行业怎么能够提升效率？同样地使得我们所有的资源要素得到大大地提升，我觉得空间还是很大的。 The Chairman would like to emphasize that the company, or telecom company, must improve or enhance its smart operation and digital transformation so as to improve the operating efficiency and deliver better services. 谢谢。谢谢王总。 Once again, if you wish to ask a question, please press star one on your telephone keypad. Our next question is coming from Bing Duan from Nomura. Please go ahead. 感谢王总，各位管理层，也恭喜公司取得了利润的双位数的成长。我这边几个问题，一个是关于我们的移动业务，看到去年我们整体移动的用户数也是有一定的下降，想问一下，如果看携号转网的影响，大概会有定量的一些影响。那么第二个关于宽带这块业务，我们也看到过去这一年多时间，竞争各方面也是在放缓的，我们的用户和ARPU也能保持平稳的增长。那么想问一下，接下来我们看今年这个趋势是不是能够保持？如果从我们增加了一些增值服务角度上来看，有哪些增值服务还能够保持一些比较好的需求？最后可能还有一个问题，也请领导层给展望一下，我们在5G的To B的业务模式上，今明两年有没有哪些重点发展的领域？或者说咱们是不是已经能看到有一些能够产生规模化收入增长潜力的一些领域？谢谢。 Thank you. Thank you, Bing. First of all, he congratulates the company on achieving the double-digit profit increases. He has three questions. The first one is regarding the mobile business. He noticed that the mobile subscriber of the company last year has decreases, net loss, and he wishes to know whether it's being mainly because of the mobile number portability, and what's the impact. The second question from him is on the fixed-line broadband businesses. He noticed that there was overly competition last year on the broadband business. As a result, our broadband subscriber and also the broadband ARPU has increased. He'd love to know about the trend for the coming year, and also he would love to see any value-add services on this aspect is still in good demand and increasing. The third question from him, he wishes to have the company share about the outlook on the 5G To B businesses, which area the company will focus on or which part will be very attractive in the coming year. 第一个问题关于移动的用户数出现了影响的减少，这是我们主动而为。第一个，我们觉得这个行业的竞争度过了，所以我们认为不能只是盯住用户的增长，而是应该盯住价值。所以我们主动提出行业的自律，我们自己企业的自律。所以我们提出的我们自己要带个头。所以用户有一点减少也很正常。第二个，我们也借这个机会，对一些销售成本很高、用户价值极低的这些客户，我们主动进行了放弃，不再去为这些客户，去争夺这些客户，去付出过多的成本。所以你看到用户减少了一点，我们的营销费用也降了9%，就是得出这样的结果。而且整体的移动ARPU上升了4个百分点，这就是策略调整的结果。但携号转网在整个里面的影响还是很小，很有限。这是第一个问题。 Zhu Kebin would like to address the first question, the mobile subscriber net loss, and he would like to point out the reason why, mainly two. The first one is he has noticed about the adverse competition in the mobile market, and he would like to say the company will advocate about getting back to order and rational competition, in particular on the pricing. As a result, we need to take the proactive role to set a good example. So it comes down to competition. On that basis, the company have mainly trying not to compete for some low-end subscriber. As a result, we control our marketing expenses. The overall marketing and selling expenses increased by 9% last year, while the overall mobile ARPU increased by 4%. This is the end result we have successfully achieved. Regarding the impact from mobile number portability, Zhu Kebin would like to say he sees only a not material impact on our overall operation at all. 那么宽带用户的增长，我们预计今年这个增长率和去年会大致相当。总体这个增长的绝对值，无论是收入还是用户都会差不多。那么在固网的增值部分，主要是四块，一个是叫沃家智网，一个是沃家天眼，就是家里的安全监控系统，再一个就是沃家电视以及沃家组网。这么四个业务是家庭目前的主要增值业务。 Kebin would like to say he expects the fixed line broadband subscriber increases and also the fixed line broadband revenue increases will be quite similar to last year. This year increase will be similar to last year. Regarding the VAS, it's mainly about our whole family, smart family businesses, including about the telephone, fixed line and also surveillance camera, TV and also the Wi-Fi deployment. 那么关于To B的，我觉得可以把它叫纵和横。纵就是我们的内容。我们总体上感觉云、大、物、智等等这些新的业务，就云、大、智、物、安，安全这块领域里边纵向的作为产品也好，业务也好，空间还是很大的，需求也非常大。第二个，从横向来看，就是应用领域里边，就是在现在的智慧区域、智慧的城市，然后交通、教育、工业、环保等等这些领域，我们目前看到在中国联通也不是所有的行业都做，我们重点是六个行业。我们觉得能够站稳脚跟，能够做出产品，做出业务，做出平台，来把它真正地做扎实，就会得到很好的回报。谢谢。 Regarding To B business, Mr. Zhu Kebin would like to say from a functionality perspective, he expects the cloud business, big data, IoT, artificial intelligence, and network security will be in strong demand. From the industry or sector perspective, he expects smart city, smart traffic, industrial application, and environmental protection will be some good industries to focus on. The company will be selective and trying to implement more deeply. 谢谢。谢谢。 Thank you. Jason, I think we need to spend some time for the management to answer some online key questions again. 现在管理层再去回答通过网络平台我们刚刚收集的一些重点问题。我们看到主要有两类问题。第一个问题是公司的5G业务何时可以盈利？第二个问题比较集中是政府工作报告提出，今年中小企宽带和专线平均资费降低10个百分点，预计影响有多大？有什么应对措施？ There are two questions online which are of common interest. The first one, when will the company's 5G business be profitable? The second question is the government request that every tariff for small and medium enterprise broadband and dedicated lines will be reduced by 10% this year. What will be the impact and what measures will the company take? 5G的业务的盈利比较难算，因为我们的核心网和利用传输体系都是和已有的混在一起，只有无线的基站是非常明确的。所以眼前肯定是亏损的。什么时候能盈利？我们能不能把它分出来？我把你们这个意思跟我们的财务部门、业务部门去商量一下，看看他们能不能分清所有跟5G的投资和5G占用传统资产的资产能不能分清楚。如果能分清楚，我们尽量把5G单独分裂出来，来做一次盈利的分析。这是第一个问题。 The Chairman would like to say regarding the profitability of the 5G business. First of all, he would like to say at this moment it is hard to calculate, because right now the 5G business will be integrated with our existing business and also it will be leveraging the existing resource of the existing businesses. So it's hard to have some segment accounting for this. However, he expects, given the initial phase of the 5G development, the 5G business by its own should be loss making. However, he will try to ask the finance department to try to see any way to try to calculate about the profitability of 5G business in future. 那么关于第二个问题，就是今年的政府工作报告提出了对中小企业宽带和专线平均单价在过去连续六年下降的基础上，第七年进一步下降10%。那么从我们总体的感觉上面来看，影响肯定会有，我们能消化掉。 The Chairman would like to say he noticed the government report has a request about the SME to reduce the tariff. In addition to the past six years, this is the seventh year already. The SME broadband tariff and also the private line tariff will come down by 10% this year. Of course, it will have some impact on the company. The Chairman would like to say he will try to work hard and endeavor to mitigate the impact. 去年公司落实宽带和专线平均资费下降15%，那么宽带和专线的总体价格还是比较平稳的，因为新增的量正好弥补了总的价值的下降，就是价格的下降，当然成本会增加一块。 The Chairman would like to point out that last year the company has been requested to reduce the SME broadband tariff by 15%, and the company has been able to offset the impact of this tariff reduction by increasing the volume of speed. As a result, net net is stable. The company does need to increase a bit on the cost for providing these services. 那么同时我在这里也说一下，我们认为经过七年的政府对通讯资费的下降的政策的决策，我认为现在基本通讯的资费已经不是消费者最关心的矛盾了，消费者更关心的是怎么能够提速、提质，要比资费关心的更多了。所以我们也觉得我们应该的重点是在保持通讯的质量上升，网速能够更快，可能是我们运营商的责任吧。谢谢。 The Chairman would like to also point out that after seven years of tariff reduction has been upgraded, in fact, he expects and he realizes that the issue about the tariff of basic telecom business communication is not a concern to the consumer in general. Instead, he understands the customer or the consumer will be more concerned or focused on the speed improvement and also the quality improvement. In fact, he expects this is the responsibility of the telecom operator to try to aim at enhancing the speed, enhancing the quality of the services in the coming future. Thank you. We shall now move back to answer the question from investors on the telephone lines. 现在我们要再去回答电话上投资者的提问。Jason, could you please ask for the next question from investors? Once again, if you wish to ask a question, press *1 on your telephone keypad. Your next question is coming from Yanlong Wang from Guotai Junan. Please go ahead. 好的，谢谢。王总及各位领导好，我是国泰君安的王岩龙。我想请教三个问题。第一个是关于网络结构的，因为大家都知道，未来的几年，4G是广泛覆盖的一个打几张网络，5G是作为深度覆盖的一个网络，2G和3G是逐步要退网的，因为这个对整体的网络成本控制都是比较有益处的。所以想请教一下，公司这方面目前的一个进展，以及未来这个节奏是什么样子的？这是第一个问题。第二个问题是对于宽带接入网络这块的发展的一个问题。我看去年公司应该有200多个新增用户，收入也是同比增加，大概是八点多，算是比较平稳。所以想请教一下，公司未来在宽带发展这块是不是有更大的一个倾向性，或者说这块的定位是什么？因为可能宽带接入这块业务它不只是本身，可能还涉及到一些未来想发展的一些家庭生态的一些业务，包括数据中心业务的发展，可能它们之间会有一定的影响。这是第二个。第三个就是关于5G和产业互联网这块的。我看到公司其实这几年一直在做5G加垂直行业的应用，也打造5G加ABCDE。除了刚才我跟您分享的一些领域之外，其实商业模式也是大家比较关心的。例如可能像运营商和一些企业做一些专网，做一些运营，那么运营商当前阶段是需要积累什么样的不同的优势，这样的话可能相对于原来To C的这些行业来说，能够扮演更深入的一个角色。这是我这边的三个问题。谢谢。 Thank you. Thank you, Yanlong. Three questions from the investor. The first one is regarding the network structure plan of the company. He noticed that, or he expects that, the 4G network will be responsible for the wide coverage, while 2G and 3G networks will be withdrawn in some time, and the 5G network will mainly be quite city-focused on deep coverage. He wishes to know about the plan of the company, or the pace of the company's plan to adopt. The second question from me is regarding the fixed line broadband. He noticed the company achieved more than 2 million net adds last year and also the revenue increased by more than 2%. He wishes to know the goal of the company about the market positioning in this market. The third question from him is regarding the 5G plus industry vertical business, or ABCDE. He has noticed some business applications mentioned by the company and also the private networks. He wishes to have more color from the management about this type of business development plan. 你刚才第一个问题，这个网络结构你讲得很对，我们总体的移动侧的网络将来就是3G、4G加5G。那么5G主要是在高话务量地区和城市，因为高频段还是容量大，速度快，还是它的优势。那么4G网络主要是在城市的薄覆盖，主要是解决农村地区的、低话务量地区的，解决用户的基本漫游。这样就使得整个网络的结构简洁和成本最低。那么2G、3G都将退出，但是还需要一些时间。这个2G网络今年原则上基本都退完了。3G可能还需要一些时间，逐步将来就变成了这个5+4两个目标网络的目的。这是第一个。 The Chairman fully agrees with the idea of the investor, and he expects that in the coming future, we will be predominantly relying on the 4G plus 5G network. The 5G network will be mainly to serve the high traffic area or the city area, which requires a lot of high speed and also high capacity. While the 4G network will be responsible for serving some low traffic areas for the wide coverage, and also including the rural area, and also to provide some roaming services. While the 2G and 3G network will be withdrawn over time. For the 2G network, basically the plan is to try to withdraw substantially this year. The 3G network will take some more time. 那么第二个问题，关于有线宽带的策略，我们主要是两方面，今年。第一个是对于已有网络，已经有的宽带，已经有的网络资源的地区，要提高两率，就是实装率和融合率。融合率就是指的宽带和移动的融合的产品，能够把两率提高，这是第一条。 Regarding the development plan for the fixed line broadband business this year, the company will try to, for those areas which have surplus capacity, make sure they will increase or improve their utilization rate and also the business integration rate, i.e., combining and integrating the service of fixed line broadband with the mobile. 那么第二个就是选择一部分地区适当地补充一部分的宽带，但这个量不会太大，主要通过大数据的分析，对我们移动用户占比比较高又没有宽带的地区，我们会适度地补充一些末梢网络的宽带的接入网络的容量的扩充。And we will also select some areas, not too many, based on the big data analytics and try to add some capacity to those efforts. 第三个就是关于5G和产业互联网的发展。我们觉得首先你要有自己的能力，第二个还是要加强合作。那么总体上讲，通讯公司的重点是在IaaS层和PaaS层和aPaaS的一部分，那么SaaS层广泛地和各个行业的顶尖公司进行合作，来共同开发和共同服务不同的行业。谢谢。 Regarding the development of the 5G plus industry vertical business segment, the company will try to first of all focus on enhancing the capability and also enhancing the cooperation. As a telco, the company will be stronger on the IaaS, Infrastructure as a Service, or the PaaS, Platform as a Service. However, on the SaaS, Software as a Service, we need to cooperate more with the strong partner so that we could deliver some good service as overall to the customer. 好的，谢谢。 Okay, thank you. Once again, if you wish to ask a question, please press star one on your telephone. Our next question is coming from Edison Lee from Jefferies. Please go ahead. 谢谢。王总你好，管理层你好。Jackie你好。我有一个是关于5G的问题，因为昨天就有媒体报道，可能今年移动跟广电可能会建40万个700MHz基站。然后在700MHz这个问题上，之前工信部讲过，他们继续一往到底这个政策。所以从你们的角度来看，你们觉得这个700MHz你们参与的机会有多大？然后这个时间表是怎么样？谢谢。 Thank you, Edison. One question from him, maybe on the 5G. He has noticed about the news yesterday about the co-build by China Broadcasting Network and China Mobile for 400,000 5G base stations based on the 700MHz spectrum. He wishes to know what is the chance of our company to participate in this 700MHz spectrum network co-build? And also what is the timeline? 那么对于5G来说，不同的频段使用的地区是有不同的特征的。比如说在城市里边，高频段大带宽，像2.6、3.5都是非常好的。那么对于700MHz来讲，城市里的因为它的频段频率频谱太低，绕射能力各方面在城市里的优势并不凸显。但是700MHz在农村地区有它的独特的优势。所以我们非常赞同有的监管部门提出的意见，就是通过四家公司联合，或者是建设，或者是使用我们的700兆的这个频段，我们是非常拥护的。 The Chairman would like to say that. 好的，谢谢。 The Chairman would like to point out that different spectrum bandwidth will have different features and have different advantages in different scenarios. For example, the Chairman would like to point out that in the city area, the high bandwidth of 3.5GHz and also the 2.6GHz bandwidth, in fact, has its advantages given the wide spectrum or bandwidth spectrum it has. Compared with 700MHz, in the city area, it might not have good advantages. However, in the rural area, given its strong propagation, it has wide coverage advantages. The Chairman fully agrees with the regulatory authority's idea about co-build or co-share about the 700MHz in the rural area. 那么合作的方式有很多种，比如说联合共同投资。那么第二种就是可以采取由一家建设，其他家通过漫游，根据话务量来进行经济规律、市场规律来进行漫游费分摊，相应的成本等等，我们觉得都可以。无论哪一种方式，有一点可以肯定的，对四家电信公司都是好的，因为成本可以分摊到每一家上去，而且农村地区本来就不是高话务量地区，高利润地区，即使每一家都能承担一部分的成本，对四家公司都是有利的。谢谢。 Thank you, Chairman. Chairman would like to add on that for the cooperation format. In fact, we are very flexible. It could be co-built by all four operators and co-shared by four operators, or it could be built by one single operator, and then it has the roaming, and then the other operators will have some co-use settlement. That's another method. There are various ways to tackle it. He'd love to point out that the co-sharing one single network in the remote area will be beneficial to all the four operators. Because given that in this rural or remote area, the traffic will not be high. As a result, if it can share the one single network, the cost can be amortized or taken up by four operators. 王总，你不介意的话，可不可以讲一讲，你觉得这个事情在什么时候可以搞定？有机会在今年可以搞定吗？现在的问题是监管部门很积极，但是企业可能有不同的想法。我认为这个问题会得到解决，我还是比较认为前景是光明的。 The Chairman would like to answer the supplementary question. He understands the regulator is keen to push forward the idea. However, some operators may have some thinking or hesitation. He himself, the Chairman, is optimistic and looking forward to a bright prospect on that. 好，谢谢王总。 Thank you, Edison. Once again, if you wish to ask a question, please press star followed by one on your telephone keypad. Our next question is coming from Haiqing Tang from Tianfeng Securities. Please go ahead. 好的，王总您好，我是天风证券的唐海清，想跟您请教三个问题。第一个问题是关于国内的大的这种网络中立的格局未来会不会有一些变化？因为其实客观来说，我觉得我们运营商承担了非常多的基础设施的责任，但是很多的基础设施的红利，其实一定程度上讲都被互联网企业给享受了。那么在现在这么大的一个背景下，我觉得这方面会不会有一些改变？这是第一个问题。那么第二个问题是关于混改。混改这方面我印象特别深刻，我们在云南的混改应该是一直在努力地推进，也是比较有代表性的一个省份。所以想请王总结合云南的混改的最新情况，跟我们分享一下，看看这方面未来的一些方向和思路。那么第三个问题是想请教一下我们的销售费用，我看过去几年基本上每年都下降个几十亿，那么未来的两三年会是什么样的一个趋势？谢谢。 Thank you. Three questions from the investor. The first one is he'd love to inquire about the expectation of the overall landscape of operation in China. He has pointed out that in the past, the infrastructure construction burden has been put on the telecom operators, while the bonus of that infrastructure construction has been taken up by other vendors, including the internet operators. The second question is on the mixed ownership reform. He pointed out that the Yunnan province provincial branch reform has been in progress for a few years and he'd love to know about the latest progress. The last question from him, he noticed that the selling expenses of the company have been decreasing by tens of billions every year in the past few years. He'd love to see the trend in the coming future. 首先，在市场经济这个范围里边，范畴里边，我们一般都是学着在经济市场规律的方面，西方的很多的策略我们还是值得参考的。比如说美国最早提出的网络中立，但是现在美国首先第一个取消了网络的中立。所以时间不断地在变化，政策也在不断地变化，我们也在等待。这是第一条。 The Chairman would like to say under the market economy principle, we have reference to some Western economies. For example, in the U.S., they have been the first world country to try to point out or advocate network neutrality. However, nowadays they have abolished this network neutrality principle. He'd love to see in the coming future, time will come and prove about the validity of some practices. 那么关于云南的混改，这三年还是起到了积极的效果。你想一下，云南我们三年中国联通没有投资，这三年没有投资的这些费用，保证了我们沿东南沿海地区的投资的总量的保证。同时，云南在没有投资的情况下，社会投资的基础上，它的盈利逐年还是得到了很大的改善。 The Chairman would like to point out that the Yunnan provincial branch mixed ownership reform for the past three years is very positive. In particular, in the past three years, the company need not invest or make any CapEx investment in the Yunnan province. This helps to reduce the overall CapEx of the whole company, while at the same time the profit has improved in the Yunnan provincial branch. 那么第二个呢，但是这个变化是永远的。现在的情况呢，出现了两个大的变化，第一个就是5G的共建共享引起了除了5G之外，在4G上的共建共享，那么我们的有些政策是不是应该做相应的调整。第二个呢，就是公司的经济实力，今非昔比，当年是非常困难，我们当时的计划不但是云南，可能由西南、西北更多的省要像云南这种模式，但是今天我们认为我们的经济实力，我们不需要完全都按照云南的这种模式了。所以我们认为我们的政策也做了一部分的调整，来更加适应我们的公司的发展。 The Chairman would like to say, over the time he has seen some changes. For example, when we have successfully implemented the 5G co-build, co-share, we are now coming to the time we also expand the co-build, co-share to the 4G network. As a result, we are considering some policy change on this aspect. Also, the financial strength of the company has improved significantly in the past few years, so it will also invoke some changes in the policy we are contemplating. 那么，但是这一次我讲的改变是，我们仍然会坚持云南和广西的部分地区的改革是不会变的，只是把它优化一下，我们正在讨论相关的方案，和我们的合作方来共同讨论一些方案，使得大家更有积极性，把业务发展得更好。 What Chairman mentioned about the changes to be contemplated will not affect the continued operation of the mixed ownership reform of the Yunnan Province and also the Guangxi provincial branch. What he mentioned about the change he contemplated is to discuss with the partners, and to see how we could further optimize about this reform. 那么第二个呢，关于这个成本，尤其销售费用等这个领域里边呢，去年确实下降了9%，但是呢，我认为去年的这个调整主要核心是两部分，一个就是我们适当的加大了互联网营销的获客的比例，然后对实体渠道做了相应的略有一点减少。第二个呢，就是每个用户的发展的成本，尤其最低端用户的，这个极低端用户的放弃，所以使得我们的营销成本有所下降。 The selling expenses last year have decreased by 9%, mainly benefiting from two aspects. The first one, the company strengthened online-offline marketing, and also strictly controlled the physical outlets. The second aspect is the company strictly controlled the low-end subscriber development or acquisition last year. 但是呢，任何的事物都是有它的一定的合理性和极限性的。我们的营销费用不是越低越好，是要合理性。如果你太低的时候，可能就会影响你业务的发展，所以我认为应该保持在一个合理的比例和水平，使得公司最健康，这是更重要的，而不能一味看到它不断的下降。 The Chairman would like to say the company will not aim for continuous reduction in the selling expenses, because he thinks the selling expenses should be kept at a very reasonable level to ensure it will help to drive the business development. He needs to have a good balance on that. 问题，就是关于我们铁塔的使用问题。咱们铁塔的使用费，我看披露出来的最新的2020年相比19年同比增长了7.2%。那么我在想，刚才其实王总您也提到了，我们的这个2G、3G可能陆续会退网，那么这样的话，我们的铁塔使用费后面会不会降低？还有一个就是我们跟铁塔之间这种就是租赁，同时又是股东的关系，我们这种定价上面是一个怎么样的考虑？请教一下这个问题。谢谢。 A follow-up question from an investor is regarding tower usage expenses. He has noticed about the 7.2% increase last year year-over-year. However, he has noticed that the Chairman has mentioned about the progressive withdrawal of the 2G and 3G network. He expects it will benefit and bring down the tower expenses in the coming year. He would love to have the idea from the company or the management, and also about the pricing terms with the tower company — will there be any change? 总的铁塔数还是逐年会有增加的。主要原因是现在发展的是5G嘛，5G的覆盖的频段它的每公里的距离站址非常密，而我们要即将拆掉的这一部分的站，总的这个站，2G的这些站是建立在900兆基础上的，所以它的站址的密度相对还是比较疏的。所以总体的基站数还是要增加的，这是第一条。 The Chairman would like to say the tower expenses increase he expects, because right now although we are trying to withdraw some 2G network, however it is on a 900MHz spectrum compared with the 5G new construction base station which is on a higher bandwidth of 3.5GHz. As a result, the 3.5GHz is required more densely constructed base station. As a result, net he expects there should be some increases. 但是我们现在三家电信公司正在和铁塔公司对于铁塔的租赁费用还在谈判之中。但是我们总体感觉，明年的铁塔的租费的增量会比今年肯定是要低档，这个大的趋势是可以看到的。 The Chairman would like to say, of course, our Chinese telco would love to have a negotiation with the tower company, and it's still subject to negotiation. However, he expects that in the coming year, the tower expense increases — the pace or the increase rate — will be less than last year. 好的，谢谢。Thank you。 Okay, thank you. Jason, I think it's time we need to wrap up the meeting. Thanks again for attending the conference. If you have any more questions, please feel free to send it to our investor relations department.