HUMAN RESOURCES

DEVELOPMENT

China Unicom adheres to the principle of being employee-oriented as its core principle, and has always focused on the mutual growth of employees and the Company, and maintained the comprehensive development and vitality of its workforce. In 2024, China Unicom further implemented its strategy of strengthening the Company with talent, comprehensively cultivating, attracting, and effectively utilising talent. This effort drove the formation of a favourable situation where the “three teams” of management talents, professional technical talents, and skilled talents, each perform their duties, fulfil their responsibilities, showcase their abilities, and achieve interconnected growth, thereby providing strong talent support for the Company’s high-quality development.

China Unicom accelerated the establishment of a national strategic talent force for scientific and technological innovation, and focused on supporting the realisation of high-level scientific and technological self-reliance and self-improvement. The Company actively integrated itself into the general trend of “building a world-class talent center and innovation hub”. The scale of scientific and technological talents continued to expand, with effective progress in building a team of young scientific and technological talents. The Company established echelons of high-level scientific and technological talents as well as high-skilled talents, significantly optimising the talent structure that supports high-quality development and continuously enhancing the quality and efficiency of talents. China Unicom persisted in improving efficiency while controlling the overall quantity. The Company implemented target management for labour efficiency. In 2024, the labour productivity of the Company continued to increase, and the workforce size remained stable. The Company implemented the national stable employment policy and recruited nearly 22,000 graduates over the past three years. The Company uniformly implemented the “New Seedling Scheme,” deepening school-enterprise cooperation and establishing a training system for young employees to accelerate the growth and development of graduates.

The Company strengthened institutional development by revising and implementing regulations such as management personnel management and comprehensive assessment evaluations, continuously solidifying the management foundation. It conducted comprehensive analysis and planning for the management team, rolling out updates on the “White Paper” on management team building, and continuously selecting and enhancing the management team. The Company strengthened systematic training and development by continuously conducting key programs such as exemplary classes for outstanding management talents and coordinating the implementation of professional capability enhancement training in various fields. It provided targeted training for outstanding management talents, organising and planning cross-regional and cross-position exchanges and training. By fully leveraging the enthusiasm of management personnel of all ages, the Company continuously increased efforts to discover, cultivate, and utilise outstanding young management talents, consistently enhancing the construction of the management personnel echelon. China Unicom continued to improve the supervision system for management personnel, combining daily and special supervision to enhance supervisory effectiveness. The Company deeply advanced upward and downward mobility for management personnel, continuously promoting the term system and contractual management for management personnel and strengthening the application of assessment and evaluation results. The Company combined the annual comprehensive assessment and evaluation with thematic research to simultaneously carry out the work of “Incentivising Responsibility and Action, Boosting the Spirit of Entrepreneurship”, continuously guiding a wide range of management personnel to establish and practise a correct view of performance.

The Company focused on actively serving the national strategy and fully implemented the integrated innovation strategy, promoting network innovation, technology innovation, and service innovation. It formulated annual key training plans for management personnel, professional talents, and skilled workers, strengthening targeted training and development, and conducting specialised training on employees’ job performance capabilities in phases and batches. The Company promoted training certification for key teams and improved the construction of the competency certification system. Targeting key business areas such as Artificial Intelligence, Big Data, and Cybersecurity, the Company implemented position competency certification and training empowerment.

The Company improved the efficiency of resource allocation for labour costs. It optimised the mechanism for sharing the incremental benefits of the total wage amount, increased positive incentives for year-on-year profit improvement, raised the adjustment ratio of existing amounts, and closely linked the efficiency indicators to dynamic adjustments. The Company’s profit margin of labour costs and the ratio of total human resource investment to revenue increased year-on-year. China Unicom made full use of the incentive and guarantee policies for technological innovation, focusing on the strategic emerging fields to increase the supply of incentive resources and allocating a specific total wage budget to support the artificial intelligence action plan and the development of high-level talent teams. Highlighting the importance of core talents in key roles, the Company established incentive and constraint mechanisms tailored to the unique skills and differential contributions of individual talents. China Unicom was committed to addressing structural contradictions in the distribution field, optimising the relationship of internal income distribution, and reasonably determining remuneration levels across different groups. With the implementation of diversified incentives, the Company flexibly carried out medium and long-term incentive programs and completed the first batch of share unlocks for Phase II of restricted share of China United Network Communications Limited (“the A-share Company”) incentive scheme, thereby building a community of shared interests and risks.