TELECOMMUNICATIONS SERVICES—PART 2
China Unicom (Hong Kong) Limited provides a full range of telecommunications services, including mobile and fixed line service, in China.
They are listed on the New York Stock Exchange and filed as Form 20F with the SEC for the period ended December 31, 2008. The consolidated income statement is presented with this case.
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CHINA UNICOM (HONG KONG) |
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|
Note |
2007 As restated |
2008 |
2008 |
|
|
RMB |
RMB |
US$ |
||
|
Continuing operations |
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|
Revenue |
5, 26 |
150,687 |
148,906 |
21,826 |
|
Interconnection charges |
11,214 |
12,011 |
1,761 |
|
|
Depreciation and amortization |
47,369 |
47,678 |
6,988 |
|
|
Networks, operations, and support expenses |
28 |
16,022 |
16,577 |
2,430 |
|
Employee benefit expenses |
31 |
17,540 |
18,902 |
2,771 |
|
Other operating expenses |
29 |
32,776 |
33,582 |
4,922 |
|
Finance costs |
30 |
3,231 |
2,411 |
353 |
|
Interest income |
285 |
239 |
35 |
|
|
Impairment loss on property, plant and equipment |
6 |
— |
11,837 |
1,735 |
|
Realized loss on changes in fair value of derivative component of the convertible bonds |
21 |
569 |
— |
— |
|
Other income net |
27 |
4,990 |
1,994 |
292 |
|
Income from continuing operations before income tax |
27,241 |
8,141 |
1,193 |
|
|
Income tax expenses |
9 |
7,083 |
1,801 |
264 |
|
Income from continuing operations |
20,158 |
6,340 |
929 |
|
|
Discontinued operations |
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Income from discontinued operations |
33 |
654 |
1,438 |
211 |
|
Gain on the disposal of discontinued operations |
33 |
626 |
26,135 |
3,831 |
|
Net income |
21,438 |
33,913 |
4,971 |
|
|
Attributable to: |
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Equity holders of the Company |
21,437 |
33,912 |
4,971 |
|
|
Minority interest |
1 |
1 |
— |
|
|
21,438 |
33,913 |
4,971 |
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|
Proposed final dividend |
34 |
6,427 |
4,754 |
697 |
|
Dividend paid during the year |
34 |
5,885 |
6,231 |
913 |
|
Note |
2007 As restated |
2008 |
2008 |
|
|
RMB |
RMB |
US$ |
||
|
Earnings per share for income attributable to the equity holders of the Company during the year |
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|
Basic earnings per share |
35 |
0.93 |
1.43 |
0.21 |
|
Diluted earnings per share |
35 |
0.92 |
1.42 |
0.21 |
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Earnings per share for the income from continuing operations attributable to the equity holders of the Company during the year |
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|
Basic earnings per share |
35 |
0.87 |
0.27 |
0.04 |
|
Diluted earnings per share |
35 |
0.86 |
0.27 |
0.04 |
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Earnings per share for income from discontinued operations attributable to the equity holders of the |
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|
Basic earnings per share |
35 |
0.06 |
1.16 |
0.17 |
|
Diluted earnings per share |
35 |
0.06 |
1.15 |
0.17 |
Required
a. Consolidated income statement
1. Why presented in RMB and U.S. $?
2. Is the statement presented by function or nature?
3. Comment on the presentation relating net income to ‘‘attributable to.’’
4. Why is earnings per share attributable to the equity holders?
5. Comment on the dividend paid during the year being presented in the income statement (proposed final dividend and dividends paid during the year).