China Unicom focuses on its core value of “employee-friendly” and emphasises that employees are the fundamental cornerstone of corporate development. We always pay attention to the common growth of employees and the Company, and strive to maintain the comprehensive development and vitality of employees. In 2022, we managed human resources based on the strategic positioning of talent-led development, with the implementation of the “1 + 9 + 3” strategic planning system as a priority. The guidance opinion on strengthen the enterprise through talents was effectively implemented in the first year and provided a strong guarantee for the Company’s high-quality development.

China Unicom insisted on improving efficiency and controlling the total number of employees. The Company implemented target management of employment efficiency, differentiated and controlled the total number of employees of organisations at all levels. In 2022, the labour productivity of the Company continued to improve and the total number of employees was basically stable while increasing investment in strategic resources. The Company also intensified its efforts in attracting talents for undergoing transformation and staffed new recruits precisely. In 2022, the number of new employees from campus recruitment increased by 25% year-on-year, which were mainly assigned to take on transformational positions in the innovation field. The Company implemented the “New Seedling Scheme” in a unified manner to build a training system by covering five stages from contract signing to the first anniversary of induction, with an aim to accelerating the growth of graduates.

China Unicom increased investment in strategic resources guided by its strategies. The Company implemented structural labour cost policies, and formed a new pattern of precise allocation of labour cost and resources as well as integrated development through a combination of policies consisting of “structural adjustment of existing employees + centralised coordination of new recruits + stimulating the vitality of frontline units + strategic resource guarantee + targeted support”. The Company adopted performance-based compensation as the principal mechanism with a diversified remuneration structure, optimised its value creation based internal remuneration distribution mechanism, improved the rights protection mechanism for employees in difficulties, so as to coordinate and optimise the distribution and widen the gap in remuneration. The Company provided diversified incentives and flexibly offered mid and long-term incentives, which in turn enabled it to complete granting the second batch of the restricted shares of China United Network Communications Limited (“A Share Company”) of 0.8 billion shares to 7,700 persons, thereby building a community of shared interests and risks.

China Unicom conducted comprehensive analysis on the leadership team structure and the overall planning according to the needs of the Company’s new strategy implementation by focusing on the top-level design. The Company continuously optimised the quality and ability of management personnel, promoted the development of the structure for the management personnel, strengthened the supervision of management personnel and further motivated managers at all levels to take new responsibilities and act in the new era. The Company regularly carried out talent exchanges and trainings for outstanding young managers in the northern and southern as well as eastern and western regions, despatched outstanding managers to provincial branches under difficulties to offer “group-based” support, with targeted support to provincial branches in Tibet and Xinjiang. In addition to the establishment of the industry corps and the selection of excellent persons to take charge of strategic business units, the Company also implemented the “Emerging Industry Cadre Project” to foster young and energetic talents for emerging industries, promoted the gradual optimisation of the professional structure and the continuous improvement of the overall function of the leadership at all levels. The Company continuously improved the appraisal and evaluation system, refined the mechanism for promotion and demotion of management personnel, comprehensively promoted the contractual management of managers’ tenure system, coupled with intensifying its efforts in performance appraisals to continuously stimulate their vitality.

The Company actively implemented “the workforce development strategy” and sought to build a powerful enterprise with talents, optimised the structure of the talent team for scientific and technological innovation, improved the quality of the talent team, sped up the establishment of talent and innovation advantages to create a “strong magnetic field” for attracting talents. By implementing key talent projects such as “gathering technological talents, emerging industry managers, introduction of young talents, and development of proprietary capabilities”, the Company kept stepping up its efforts in the cultivation and introduction of outstanding talents. With the proportion of scientific and technological innovation talents exceeding 30%, the Company has built a four-level professional talent echelon that consists of 20,000 leaders, experts, backbones and cutting-edge talents. In response to the national policy for stabilising employment, the Company recruited more than 13,000 employees through campus recruitment and social recruitment, reaching a new high in recent years, and providing more strivers with a great place to start their careers. The Company was the only player in the industry being recognised as the “World’s Best Employer 2022” by Forbes.

Focusing on the implementation of the Group’s “1 + 9 + 3” strategic planning and prioritising the cultivation of various talent teams to strengthen strategic capabilities and improve innovation capabilities, the Group formulated the annual key training plans for management personnel and professionals. According to professional characteristics, the Group established competency standards, improved curriculum systems, empowered through training and provided capacity certification, all with a view to enabling independent cultivation of key capabilities systematically, and continuous to carry out digital empowerment for key groups to improve professional capabilities and quality.