China Unicom's profit falls by 24 percent due to accounting loss.(BUSINESS)(Financial report)

China Telecom, September, 2007

China Unicom reported a 24 percent profit slide in 1H07 through an accounting loss due to its changed convertible bonds' fair value. Net profit for H1 was $280 million, down from $369 million last year, while revenue climbed 5 percent to $6.5 billion from $6.2 billion last year. China Unicom stated a 1H07 net profit of $497 million, up 35 percent from last year excluding the unrealized loss of $216 million resulting from the changed fair value of convertible bonds, of which the company had issued $1 billion to SK Telecom in July 2006.

According to SK Telecom, it will convert the bonds into shares to acquire a 6.61 percent stake in China Unicom.