Financial Data and Key Indicators Changes - Total revenue amounted to RMB76.9 billion, up 3.4% year on year, while net profit reached RMB2.1 billion, up by 0.2% year on year [5] - Operating profit increased by 8.4% year on year in the first half of the year, with operating profit margin steadily improving [5] - R&D investment reached RMB2.2 billion, with nearly 100 prestigious technology awards received [7][8] Business Line Data and Key Indicators Changes - Revenue from Application, Content and Other Services (ACO) business rose by 11.7% year on year [6] - Telecommunications Infrastructure Services (TIS) business revenue increased by 1.6% year on year, with a significant growth of 18.5% in the domestic non-operator market [6] - Business Process Outsourcing (BPO) services maintained steady growth [6] Market Data and Key Indicators Changes - Revenue from the domestic operator market reached RMB38.2 billion, with ACO business in this market achieving a growth of 9% [18] - Revenue from the domestic non-operator market increased by 12.9% year on year, reaching RMB36.6 billion [18] - Overseas market revenue grew by 8.7% year on year, with sound development quality [21] Company Strategy and Development Direction and Industry Competition - The company is focusing on digital intelligence transformation and expanding strategic emerging businesses to strengthen future growth momentum [4] - Emphasis on technological innovation and integration of AI technology with innovation to drive business development [4] - The company aims to empower traditional businesses while incubating products in cutting-edge fields, particularly in AI [9][10] Management Comments on Operating Environment and Future Outlook - Management highlighted resilience amid external challenges and steady growth in operating performance [4] - The company will continue to focus on customers' transformation needs in digitalization, intelligentization, and green initiatives [10] - Future strategies include targeting intelligent computing, supercomputing, and advanced telecommunications sectors [11] Other Important Information - The company secured new contracts amounting to about RMB106 billion in the first half of the year, with strategic emerging businesses accounting for over RMB42 billion [10] - The proportion of strategic emerging businesses to total new contracts increased to over 40% compared to over 35% last year [10] - The company is actively expanding into finance, Internet, and digital intelligence sectors [11][13] Q&A Session Summary Question: What are the key growth areas for the company moving forward? - The company will focus on intelligent computing, supercomputing, and advanced telecommunications sectors, leveraging AI and digital technologies [11][12] Question: How is the company addressing challenges in the domestic operator market? - The company is deepening strategic collaboration with operators and focusing on upgrading traditional business models to meet transformation needs [18] Question: What measures are being taken to enhance operational efficiency? - The company is implementing cost reduction and efficiency enhancement measures, optimizing organizational structure, and enhancing labor productivity [25]

Financial Data and Key Indicator Changes - Total revenue for the first half of 2025 amounted to RMB 76.9 billion, representing a year-on-year increase of 3.4% [5] - Net profit reached RMB 2.1 billion, up by 0.2% year on year [5] - Operating profit increased by 8.4% year on year, with an improving operating profit margin [5][6] - R&D investment reached RMB 2.2 billion, with nearly 100 prestigious technology awards received [8] Business Line Data and Key Indicator Changes - Revenue from Application, Content and Other Services (ACO) rose by 11.7% year on year [6] - Telecommunications Infrastructure Services (TIS) revenue increased by 1.6% year on year [6] - Business Process Outsourcing (BPO) services maintained steady growth [6] - Revenue from domestic non-operator market increased by 12.9% year on year, while overseas market revenue grew by 8.7% [6][18] Market Data and Key Indicator Changes - Revenue from the domestic operator market reached RMB 38.2 billion, with ACO business growing by 9% [18] - Domestic non-operator market revenue was RMB 36.6 billion, showing a 12.9% year-on-year increase [18] - Overseas market revenue grew by 8.7% year on year, with significant developments in Latin America and the Asia Pacific [21] Company Strategy and Development Direction - The company is focusing on digital intelligence transformation and expanding strategic emerging businesses [4] - Emphasis on technological innovation and integration of AI technology with innovation [4] - Targeting key sectors such as government, data centers, and emergency management for AI applications [9][10] - Aiming to enhance core competencies while balancing high-quality development with security [13][14] Management Comments on Operating Environment and Future Outlook - Management highlighted resilience amid external challenges and steady growth in operating performance [4] - The company is committed to leveraging technological breakthroughs and industrial demand to empower traditional businesses [9] - Future focus will be on intelligent computing, supercomputing, and advanced telecommunications [11][12] Other Important Information - New contracts in the first half of the year amounted to approximately RMB 106 billion, with strategic emerging businesses accounting for over RMB 42 billion [10] - The proportion of strategic emerging businesses to total new contracts increased to over 40% [10] - The company aims to transform traditional services into smart operation support services to enhance recurrent revenue sources [14] Q&A Session Summary Question: What are the company's strategies for future growth? - The company will focus on technological innovation, expanding into new sectors, and enhancing its service capabilities to drive growth [28] Question: How does the company plan to manage costs? - The company is implementing AI digitalization measures to strengthen management across various business processes and control costs effectively [26] Question: What is the outlook for the overseas market? - The company will continue to expand its overseas market presence, particularly in Latin America and the Asia Pacific, while enhancing collaborative partnerships [21]

Financial Performance - The company's revenue increased by 3.4% from RMB 74,412 million in 1H2024 to RMB 76,939 million in 1H2025 [8] - Net profit saw a slight increase of 0.2%, rising from RMB 2,125 million in 1H2024 to RMB 2,129 million in 1H2025 [8] - Gross profit decreased by 2.8% from RMB 8,116 million to RMB 7,888 million [8] - Operating profit increased by 6.3% from RMB 1,481 million in 1H2023 to RMB 1,706 million in 1H2025 [12] - SG&A expenses decreased by 5.5% from RMB 6,542 million to RMB 6,182 million [86] Business Segments - Telecommunications Infrastructure Services (TIS) revenue increased by 1.6%, from RMB 37,666 million in 1H2024 to RMB 38,272 million in 1H2025 [15] - Business Process Outsourcing (BPO) services revenue increased by 1.0%, from RMB 22,163 million in 1H2024 to RMB 22,383 million in 1H2025 [15] - Applications, Content and Other Services (ACO) revenue increased significantly by 11.7%, from RMB 14,583 million in 1H2024 to RMB 16,284 million in 1H2025 [15] Market Performance - Domestic Non-operator market revenue increased by 12.9% [15] - Overseas market revenue increased by 8.7% [15] - Domestic Operator market revenue decreased by 4.6% [15] Strategic Initiatives - New contracts of strategic emerging businesses in 1H2025 exceeded RMB 42 billion, representing an increase of over 10% year-on-year [26] - Digital infrastructure new contracts increased by over 20% [30] - Smart city new contracts increased by over 15% [34]

Core Viewpoint - The company reported a stable growth in operating revenue and profit for the first half of 2025, driven by strategic initiatives in digital infrastructure and services [1][2]. Group 1: Financial Performance - The company achieved operating revenue of RMB 76.939 billion, a year-on-year increase of 3.4% [1] - Shareholder profit reached RMB 2.129 billion, reflecting a slight increase of 0.18% year-on-year [1] - Basic earnings per share were RMB 0.307 [1] Group 2: Business Segments - The telecommunications infrastructure service revenue was RMB 38.272 billion, growing by 1.6% year-on-year, accounting for 49.7% of total operating revenue [2] - Business process outsourcing service revenue was RMB 22.383 billion, with a year-on-year growth of 1.0%, representing 29.1% of total operating revenue [2] - Revenue from applications, content, and other services reached RMB 16.284 billion, showing a significant increase of 11.7% year-on-year, and accounted for 21.2% of total operating revenue [2] Group 3: Market Development - The company capitalized on the AI technology transformation, leading to significant growth in the computing power market and securing multiple projects in intelligent computing centers and data center renovations [1] - Revenue from domestic non-telecom operator markets and overseas markets combined exceeded 50% of total operating revenue for the first time [1]

Core Viewpoint - China Communication Services reported a revenue of RMB 76.939 billion for the six months ending June 30, 2025, representing a year-on-year increase of 3.4% [1] - The company aims for high-quality development by leveraging its position as a "new generation comprehensive smart service provider" and focusing on technology innovation [1] Financial Performance - The net profit attributable to shareholders was RMB 2.129 billion, a slight increase of 0.18% year-on-year [1] - Basic earnings per share stood at RMB 0.307 [1] Revenue Breakdown - Service revenue reached RMB 74.981 billion, up 2.9% from RMB 72.855 billion in the first half of 2024 [1] - The three major customer markets showed stable growth, with significant revenue growth from the domestic non-telecom operator market [1] Business Segments - Telecommunications infrastructure service revenue was RMB 38.272 billion, a year-on-year increase of 1.6%, accounting for 49.7% of total revenue [2] - Business process outsourcing service revenue was RMB 22.383 billion, up 1.0%, representing 29.1% of total revenue [2] - Revenue from applications, content, and other services grew by 11.7% to RMB 16.284 billion, making up 21.2% of total revenue and serving as a core driver for revenue growth [2] Strategic Focus - The company is capitalizing on the opportunities presented by the AI technology transformation and the accelerated digital transformation across various industries [2] - Continuous enhancement of software development and digital service capabilities is a priority for the company [2]

Group 1 - The core viewpoint of the article highlights that China Communication Services reported a revenue of RMB 76.94 billion for the first half of the year, representing a year-on-year growth of 3.4% compared to RMB 74.41 billion in the same period last year [1] - The net profit for the first half of the year was RMB 2.13 billion, showing a slight increase of 0.2% from RMB 2.12 billion in the previous year [1]

Core Insights - China Communication Services (00552.HK) reported a mid-year revenue of RMB 76.939 billion for the first half of 2025, reflecting a year-on-year growth of 3.4% [1] - The net profit for the same period was RMB 2.129 billion, showing a slight increase of 0.2%, with a gross margin of 10.3% and a net profit margin of 2.8% [1] Business Segments Performance - The telecommunications infrastructure service revenue reached RMB 38.272 billion, up 1.6%, accounting for 49.7% of total revenue [1] - Business process outsourcing service revenue was RMB 22.383 billion, growing by 1.0%, representing 29.1% of total revenue [1] - Revenue from software development and digital services, including applications, content, and other services, amounted to RMB 16.284 billion, marking an 11.7% increase and contributing 21.2% to total revenue, continuing to be a core driver of revenue growth [1] Market Development - The company is capitalizing on the opportunities presented by the digital transformation across various industries and the deepening application of artificial intelligence [1] - The company has seen significant growth in revenue from the domestic non-telecom operator customer market, driven by the construction of multiple intelligent computing centers and data center renovation projects [1] - For the first time, the combined revenue from domestic non-telecom operator customers and overseas markets exceeded 50% of total revenue [1]

[Report Highlights](index=1&type=section&id=%E8%A6%81%E9%BB%9E) The group achieved stable growth in operating revenue and net profit in H1 2025, with an optimized market structure and strong growth in application, content, and other services Key Financial Metrics | Metric | H1 2025 (RMB millions) | YoY Growth | | :--- | :--- | :--- | | Operating Revenue | 76,939 | 3.4% | | Net Profit | 2,129 | 0.2% | | Gross Profit Margin | 10.3% | -0.6 percentage points | | Net Profit Margin | 2.8% | -0.1 percentage points | - Combined revenue from domestic non-telecom operator enterprise market and overseas market exceeded half for the first time, indicating **optimized market structure**[2](index=2&type=chunk) - Application, content, and other services have been the core drivers of revenue growth for consecutive years, benefiting from **deepening AI applications** and **accelerated digital transformation**[2](index=2&type=chunk) [Chairman's Statement](index=2&type=section&id=%E8%91%A3%E4%BA%8B%E9%95%B7%E5%A0%B1%E5%91%8A%E6%9B%B8) This statement provides an overview of the Group's H1 2025 performance, strategic initiatives, and future outlook, emphasizing growth, innovation, and sustainability [Business Performance Overview](index=2&type=section&id=%E4%B8%80%E3%80%81%20%E7%B6%93%E7%87%9F%E6%A5%AD%E7%B8%BE%E7%A9%A9%E4%B8%AD%E6%9C%89%E9%80%B2%EF%BC%8C%E6%94%B6%E5%85%A5%E5%88%A9%E6%BD%A4%E5%AF%A6%E7%8F%BE%E9%9B%99%E5%A2%9E%E9%95%B7) This chapter details the Group's overall operating performance in H1 2025, including double-digit growth in revenue and profit, and the steady development of its three business segments and three client markets. Despite facing pressure from declining capital expenditure from traditional clients, the Group achieved optimized revenue structure and rapid growth in emerging markets through diversified strategies and capability advantages [Financial Performance](index=2&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE) This section details financial performance, including key metrics like operating revenue, net profit, and margins Financial Performance Metrics | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Growth/Decrease | | :--- | :--- | :--- | :--- | | Operating Revenue | 76,939 | 74,412 | +3.4% | | Service Revenue | 74,981 | N/A | +2.9% | | Operating Gross Profit | 7,888 | 8,116 | -2.8% | | Net Profit | 2,129 | 2,125 | +0.2% | | Gross Profit Margin | 10.3% | 10.9% | -0.6 percentage points | | Net Profit Margin | 2.8% | 2.9% | -0.1 percentage points | | Return on Equity (ROE) | 9.3% (annualized) | N/A | N/A | | Basic Earnings Per Share | 0.307 RMB | 0.307 RMB | 0% | [Business Segment Development](index=3&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%8A%8A%E6%8F%A1%E6%95%B8%E6%99%BA%E6%A9%9F%E9%81%87%EF%BC%8C%E4%B8%89%E5%A4%A7%E6%A5%AD%E5%8B%99%E6%9D%BF%E5%A1%8A%E5%85%A8%E9%9D%A2%E5%A2%9E%E9%95%B7) This section details business segment development, highlighting revenue contributions and growth drivers across different service areas Revenue by Business Segment | Business Segment | H1 2025 Revenue (RMB millions) | YoY Growth | Share of Operating Revenue | | :--- | :--- | :--- | :--- | | Telecom Infrastructure Services | 38,272 | 1.6% | 49.7% | | Business Process Outsourcing Services | 22,383 | 1.0% | 29.1% | | Application, Content and Other Services | 16,284 | 11.7% | 21.2% | - **Application, content, and other services** revenue maintained rapid growth, serving as the core driver for revenue growth for consecutive years, benefiting from **deepening AI application scenarios** and **accelerated digital transformation** across various industries[6](index=6&type=chunk) [Client Market Performance](index=3&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E7%99%BC%E6%8F%AE%E8%83%BD%E5%8A%9B%E5%84%AA%E5%8B%A2%EF%BC%8C%E4%B8%89%E5%A4%A7%E5%AE%A2%E6%88%B6%E5%B8%82%E5%A0%B4%E7%A9%A9%E5%81%A5%E7%99%BC%E5%B1%95) This section details client market performance, analyzing revenue trends and strategic initiatives across domestic telecom, non-telecom, and overseas markets Revenue by Client Market | Client Market | H1 2025 Revenue (RMB millions) | YoY Growth/Decrease | | :--- | :--- | :--- | | Domestic Telecom Operator Market | 38,203 | -4.6% | | Domestic Non-Telecom Operator Enterprise Market | 36,585 | +12.9% | | Overseas Market | 2,151 | +8.7% | - Domestic telecom operator market stabilized traditional business and expanded strategic emerging businesses through a "CAPEX+OPEX+Smart Application" strategy to counter declining capital expenditure challenges[7](index=7&type=chunk) - Domestic non-telecom operator enterprise market achieved double-digit growth by seizing opportunities in computing power infrastructure construction, leveraging "Consultant+Employee+Housekeeper" service models and "Platform+Software+Service" capabilities[9](index=9&type=chunk) - Overseas market showed good development by integrating into the "Belt and Road" initiative, expanding into **high-value projects** and new sectors like industrial digitalization and new energy services[9](index=9&type=chunk) [Strategic Emerging Business Development](index=5&type=section&id=%E4%BA%8C%E3%80%81%20%E8%B7%9F%E7%84%A6%E9%87%8D%E9%BB%9E%E8%A1%8C%E6%A5%AD%EF%BC%8C%E6%88%B0%E7%95%A5%E6%96%B0%E8%88%88%E6%A5%AD%E5%8B%99%E5%8B%95%E8%83%BD%E5%BC%B7%E5%8B%81) In H1, the Group continued to deeply cultivate strategic emerging industries such as digital infrastructure, green and low-carbon, smart cities, and emergency security, focusing on key sectors. Strategic new businesses maintained rapid growth, with new contract value accounting for over **40%**, injecting new momentum into the enterprise's high-quality development [Digital Infrastructure Sector](index=5&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E6%95%B8%E5%AD%97%E5%9F%BA%E5%BB%BA%E9%A0%98%E5%9F%9F) This section details digital infrastructure sector initiatives, focusing on seizing AI-driven computing power opportunities and undertaking major construction projects - Seizing the computing power market opportunities driven by **AI technological transformation** and promoting the evolution and upgrade of new information infrastructure[12](index=12&type=chunk) - Undertaking the construction of intelligent computing centers, data center renovations, cloud platforms, and 5G+ projects in multiple locations domestically and internationally, deeply serving government, internet, finance, energy, and other industry clients[12](index=12&type=chunk) - In H1, new contract value in this sector maintained **rapid growth**[12](index=12&type=chunk) [Green and Low-Carbon Sector](index=5&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E7%B6%A0%E8%89%B2%E4%BD%8E%E7%A2%B3%E9%A0%98%E5%9F%9F) This section details green and low-carbon sector efforts, adopting a dual-driven model of green energy and energy-saving technologies to create benchmark projects - Adopting a "green energy + energy-saving technology" dual-driven model to create benchmark projects such as low-carbon intelligent computing centers, 5G green base stations, green and low-carbon industrial parks, and virtual power plant platforms[13](index=13&type=chunk) - Participating in the compilation of the first national standard for green data center evaluation, 'Green Data Center Evaluation', enhancing industry influence[13](index=13&type=chunk) [Smart City Sector](index=6&type=section&id=%E6%99%BA%E6%85%A7%E5%9F%8E%E5%B8%82%E9%A0%98%E5%9F%9F) This section details smart city sector initiatives, leveraging full-chain service capabilities and integrating digital technologies to build new urban paradigms - Seizing opportunities in new urban infrastructure construction and leveraging full-chain service capabilities including "planning + design + implementation + delivery + operation"[14](index=14&type=chunk) - Deeply integrating digital technologies such as **AI**, **IoT**, and **big data** to create a new paradigm for livable, resilient, and smart cities[14](index=14&type=chunk) - In H1, new contract values in digital government, smart education, smart water conservancy, smart cultural tourism, smart healthcare, and enterprise digital transformation all achieved **rapid growth**[14](index=14&type=chunk) [Emergency and Security Sector](index=6&type=section&id=%EF%BC%88%E5%9B%9B%EF%BC%89%E6%87%89%E6%80%A5%E5%AE%89%E5%85%A8%E9%A0%98%E5%9F%9F) This section details emergency and security sector advancements, utilizing large AI models to empower intelligent emergency management and developing independently controllable cybersecurity products - Leveraging large **AI models** to empower clients in key sectors such as mining, chemical, water conservancy, and fire safety to achieve intelligent transformation of emergency management[15](index=15&type=chunk) - Developing multiple independently controllable cybersecurity products, undertaking major national cybersecurity projects, and providing **integrated security services**[15](index=15&type=chunk) [Technological Innovation and New Quality Productive Forces](index=7&type=section&id=%E4%B8%89%E3%80%81%20%E5%BC%B7%E5%8C%96%E7%A7%91%E6%8A%80%E5%89%B5%E6%96%B0%E9%A9%85%E5%8B%95%EF%BC%8C%E5%8A%A0%E5%BF%AB%E5%9F%B9%E8%82%B2%E6%96%B0%E8%B3%AA%E7%94%A2%E7%94%9F%E5%8A%9B) In H1, the Group strengthened its technology innovation drive, targeted cutting-edge fields, concentrated R&D efforts, built differentiated core competitiveness, deepened industrial cooperation, and accelerated the cultivation of new quality productive forces [Leading with Technological Innovation](index=7&type=section&id=%EF%BC%88%E4%B8%80%EF%BC%89%E5%A0%85%E6%8C%81%E7%A7%91%E6%8A%80%E5%89%B5%E6%96%B0%E5%BC%95%E9%A0%98%EF%BC%8C%E5%BB%BA%E8%A8%AD%E7%A7%91%E6%8A%80%E5%9E%8B%E4%BC%81%E6%A5%AD) This section details leading with technological innovation, forming a product innovation library for emerging technologies and accumulating significant intellectual property - Forming a product innovation library of nearly a hundred products for emerging technologies such as **AI**, **security**, and **low-carbon solutions**[17](index=17&type=chunk) - Accumulated over **4,100 authorized patents**, over **10,900 software copyrights**, and participated in **48 national standards**[17](index=17&type=chunk) [AI Business Layout](index=7&type=section&id=%EF%BC%88%E4%BA%8C%EF%BC%89%E4%BD%88%E5%B1%80%E4%BA%BA%E5%B7%A5%E6%99%BA%E8%83%BD%E6%A5%AD%E5%8B%99%EF%BC%8C%E5%A1%91%E9%80%A0%E6%A0%B8%E5%BF%83%E7%AB%B6%E7%88%AD%E5%8A%9B) This section details AI business layout, implementing the 'AI+' initiative across integrated innovation, scenario cultivation, and ecosystem collaboration - Fully implementing the "**AI+**" initiative, strategically deploying **AI business** from three aspects: integrated innovation, deep scenario cultivation, and ecosystem collaboration[18](index=18&type=chunk) - Possessing an **AI delivery team of over 1,400 people**, providing customized services such as intelligent computing infrastructure construction and operation, data governance, and scenario-based application R&D[18](index=18&type=chunk) - In H1, new contract value in the **AI sector** exceeded **RMB 1.3 billion**, covering over **200 clients**[18](index=18&type=chunk) [Scientific and Technological Innovation System Reform](index=8&type=section&id=%EF%BC%88%E4%B8%89%EF%BC%89%E6%8E%A8%E9%80%B2%E7%A7%91%E5%89%B5%E9%AB%94%E7%B3%BB%E6%94%B9%E9%9D%A9%EF%BC%8C%E6%BF%80%E6%B4%BB%E7%99%BC%E5%B1%95%E6%96%B0%E5%8B%95%E8%83%BD) This section details scientific and technological innovation system reform, optimizing R&D mechanisms, tackling cutting-edge technologies, and enhancing talent development - Optimizing R&D intensive operation and promotion mechanisms and achievement transformation mechanisms to improve the efficiency of R&D resource utilization[19](index=19&type=chunk) - Intensifying efforts to tackle cutting-edge technology areas with urgent customer needs and huge market potential, creating industry-leading flagship products[19](index=19&type=chunk) - Improving mechanisms for cultivating, introducing, and selecting scientific and technological innovation experts, and adopting multi-dimensional incentive methods to stimulate innovation and development vitality[19](index=19&type=chunk) [Corporate Social Responsibility and Governance](index=8&type=section&id=%E5%9B%9B%E3%80%81%20%E8%B9%9B%E8%A1%8C%E7%92%B0%E5%A2%83%E8%88%87%E7%A4%BE%E6%9C%83%E8%B2%AC%E4%BB%BB%EF%BC%8C%E4%BF%9D%E6%8C%81%E8%89%AF%E5%A5%BD%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The Group actively fulfills its corporate mission, implements green development concepts, steadily advances the 'Dual Carbon' strategy, and promotes social green transformation through energy conservation, emission reduction, and green services. Concurrently, the Group adheres to a people-centric approach, actively participates in disaster relief, major event support, and rural revitalization, while continuously enhancing corporate governance capabilities, improving risk and internal control management systems, and receiving multiple corporate governance awards from the capital market [Environmental and Social Responsibility](index=8&type=section&id=%E7%92%B0%E5%A2%83%E8%88%87%E7%A4%BE%E6%9C%83%E8%B2%AC%E4%BB%BB) This section details environmental and social responsibility, implementing the 'Dual Carbon' strategy and actively participating in disaster relief and community support - Implementing the national "**Dual Carbon**" strategy, steadily advancing green and low-carbon development plans, and building a green ecosystem through energy conservation, emission reduction, and green services[20](index=20&type=chunk) - Completed construction and communication support tasks related to disaster relief, major events, and rural revitalization, becoming a solid support for **emergency rescue** and **livelihood security**[21](index=21&type=chunk) [Corporate Governance](index=9&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) This section details corporate governance, continuously enhancing governance capabilities, improving risk management, and receiving multiple capital market awards - Continuously enhancing corporate governance capabilities, improving risk and internal control management systems, and strengthening corporate development momentum and security guarantees[22](index=22&type=chunk) - Awarded 'Most Respected Company', 'Best CFO', 'Best Investor Relations Company', 'Best ESG', and 'Best Company Board' in the Extel "**2025 Asia's Best Management Team**" rankings[22](index=22&type=chunk) - Awarded 'Asia Sustainable Development Award', 'Asia's Best CFO', and 'Best Investor Relations Company' in the "**15th Asian Excellence Award**" by Corporate Governance Asia[22](index=22&type=chunk) [Future Outlook and Strategy](index=10&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B%E8%88%87%E6%88%B0%E7%95%A5) The Group will firmly position itself as a "new-generation integrated smart service provider", fully embrace AI, deepen reforms, and develop new quality productive forces. By advancing the "AI+" initiative, empowering corporate governance, and strengthening service capabilities, the Group aims to build a distinctive technology-driven enterprise with AI at its core, driving comprehensive smart services, and actively expanding into emerging markets to achieve high-quality development and high-level security - Firmly positioning as a "**new-generation integrated smart service provider**", fully embracing **AI**, further deepening comprehensive reforms, and developing **new quality productive forces** tailored to local conditions[23](index=23&type=chunk) - Deeply advancing the "**AI+**" initiative, internally empowering corporate governance, externally strengthening service capabilities, and building a distinctive technology-driven enterprise with **AI** at its core, driving comprehensive smart services[23](index=23&type=chunk) - Actively expanding into emerging markets, focusing on **intelligent computing centers**, **smart operations and maintenance**, **new energy**, and other fields, continuously innovating business models, and creating industry-leading products[23](index=23&type=chunk) [Group Performance](index=11&type=section&id=%E9%9B%86%E5%9C%98%E6%A5%AD%E7%B8%BE) This section presents the Group's core consolidated financial statements for H1 2025, including income, comprehensive income, and financial position, providing an overview of key financial data [Consolidated Financial Statements](index=11&type=section&id=%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the Group's core consolidated financial statements for H1 2025, including income, comprehensive income, and financial position, providing an overview of key financial data [Consolidated Income Statement](index=11&type=section&id=%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E8%A1%A8) This statement provides a detailed breakdown of the Group's revenues, costs, and profits for H1 2025 Consolidated Income Statement | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Operating Revenue | 76,939,251 | 74,411,953 | | Operating Costs | (69,051,641) | (66,296,374) | | Gross Profit | 7,887,610 | 8,115,579 | | Other Income | 839,173 | 879,847 | | Selling, General and Administrative Expenses | (6,181,999) | (6,541,835) | | Finance Costs | (43,911) | (59,026) | | Profit Before Tax | 2,440,726 | 2,405,105 | | Income Tax | (234,123) | (207,155) | | Profit for the Period | 2,206,603 | 2,197,950 | | Profit Attributable to Equity Holders of the Company | 2,128,715 | 2,124,984 | | Basic Earnings Per Share (RMB) | 0.307 | 0.307 | [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=12&type=section&id=%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) This statement presents the Group's profit for the period and other comprehensive income components for H1 2025 Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 2,206,603 | 2,197,950 | | Equity instruments measured at fair value through other comprehensive income: Net change in fair value reserve | 394,782 | 501,997 | | Exchange differences on translation of financial statements of subsidiaries outside Mainland China | 16,089 | (14,030) | | Total Comprehensive Income for the Period | 2,617,474 | 2,685,917 | | Total comprehensive income attributable to equity holders of the Company | 2,539,573 | 2,612,916 | [Consolidated Statement of Financial Position](index=13&type=section&id=%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) This statement outlines the Group's assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 35,007,293 | 31,944,591 | +9.6% | | Total Current Assets | 103,240,919 | 104,672,985 | -1.4% | | Total Assets | 138,248,212 | 136,617,576 | +1.19% | | Total Current Liabilities | 88,449,062 | 87,954,679 | +0.56% | | Total Non-current Liabilities | 2,149,252 | 2,049,745 | +4.85% | | Total Liabilities | 90,598,314 | 90,004,424 | +0.66% | | Equity Attributable to Equity Holders of the Company | 46,460,941 | 45,435,871 | +2.26% | | Total Equity | 47,649,898 | 46,613,152 | +2.22% | - Term deposits with financial institutions for over one year increased significantly from **RMB 12,170,901 thousand** at the end of 2024 to **RMB 15,163,324 thousand** as of June 30, 2025[30](index=30&type=chunk) - The **asset-liability ratio** slightly decreased from **65.88%** at the end of 2024 to **65.54%** as of June 30, 2025[30](index=30&type=chunk)[31](index=31&type=chunk)[64](index=64&type=chunk) [Notes to the Financial Statements](index=15&type=section&id=%E9%99%84%E8%A8%BB) This section provides detailed notes to the consolidated financial statements, covering the basis of preparation, changes in accounting policies, segment reporting, and the specific composition and changes of various revenues, costs, expenses, assets, and liabilities, offering essential background information for understanding the financial data [Basis of Preparation](index=15&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This section details the basis of preparation for the interim financial information, adhering to International Accounting Standard 34 and HKEX Listing Rules - Interim financial information is prepared in accordance with **International Accounting Standard 34 'Interim Financial Reporting'** and complies with the disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[32](index=32&type=chunk) [Changes in Accounting Policies](index=15&type=section&id=2.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E6%9B%B4) This section details changes in accounting policies, noting the first-time application of revised IAS 21 with no material impact on interim financial information - The first-time application of the revised **International Accounting Standard 21 'The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability'** had no material impact on the interim financial information[33](index=33&type=chunk) [Segment Reporting](index=15&type=section&id=3.%20%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) This section details segment reporting, indicating the Group primarily operates in one business segment providing integrated smart solutions - The Group primarily operates in one business segment, providing **integrated smart solutions** for the informatization and digitalization sectors[35](index=35&type=chunk) [Details of Operating Revenue](index=16&type=section&id=4.%20%E7%B6%93%E7%87%9F%E6%94%B6%E5%85%A5) This section details operating revenue, providing a breakdown by business nature and highlighting contributions from major clients and overseas markets Operating Revenue by Business Nature | Business Nature | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Telecom Infrastructure Services | 38,272,609 | 37,666,188 | | Business Process Outsourcing Services | 22,382,937 | 22,162,474 | | Application, Content and Other Services | 16,283,705 | 14,583,291 | | **Total Operating Revenue** | **76,939,251** | **74,411,953** | - Revenue contributions from China Telecom Group and China Mobile Group decreased from **36.4%** and **9.4%** to **33.6%** and **8.3%** respectively[37](index=37&type=chunk) - **Operating revenue** from regions outside Mainland China was **RMB 2,151 million**, representing a **YoY increase of 8.7%**[37](index=37&type=chunk) [Details of Operating Costs](index=17&type=section&id=5.%20%E7%B6%93%E7%87%9F%E6%88%90%E6%9C%AC) This section details operating costs, presenting a breakdown by cost item and explaining changes in direct staff costs and material costs Operating Cost Breakdown | Cost Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Subcontracting Costs | 42,932,050 | 41,233,277 | | Material Costs | 13,341,575 | 12,336,999 | | Direct Staff Costs | 3,707,393 | 3,807,665 | | **Total Operating Costs** | **69,051,641** | **66,296,374** | - **Direct staff costs** decreased by **2.6%**, reflecting the Group's **effective control over total employment** and **optimization of its employment structure**[38](index=38&type=chunk) - **Material costs** increased by **8.1%**, primarily due to the Group's optimized business model and proactive engagement in large projects under the **general contracting model**[38](index=38&type=chunk) [Details of Other Income](index=17&type=section&id=6.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) This section details other income, providing a breakdown of various income streams for H1 2025 and H1 2024 Other Income Breakdown | Other Income Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest Income | 270,299 | 325,641 | | Dividend Income | 211,712 | 191,435 | | Management Fee Income | 166,948 | 165,747 | | Government Grants | 93,034 | 87,807 | | Additional Deduction for Input VAT | 2,750 | 29,241 | | **Total Other Income** | **839,173** | **879,847** | [Details of Finance Costs](index=17&type=section&id=7.%20%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) This section details finance costs, presenting a breakdown of interest expenses on bank loans and lease liabilities for H1 2025 and H1 2024 Finance Cost Breakdown | Finance Cost Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest on Bank and Other Borrowings | 20,419 | 31,503 | | Interest on Lease Liabilities | 23,492 | 27,523 | | **Total Finance Costs** | **43,911** | **59,026** | [Details of Profit Before Tax](index=18&type=section&id=8.%20%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) This section details profit before tax, outlining key components such as staff costs, amortization, depreciation, and impairment losses Profit Before Tax Components | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Staff Costs | 7,987,519 | 8,417,643 | | Amortization | 99,633 | 98,587 | | Depreciation | 709,824 | 729,391 | | Impairment Losses on Inventories and Reversals, Net | 27,729 | 18,604 | | Impairment Losses on Trade and Other Receivables, Contract Assets and Others, and Reversals, Net | 161,577 | 118,914 | - Selling and marketing expenses, administrative expenses, research and development costs, and other expenses either decreased or remained stable[41](index=41&type=chunk) [Details of Income Tax](index=19&type=section&id=9.%20%E6%89%80%E5%BE%97%E7%A8%85) This section details income tax, presenting the calculation of income tax expense and highlighting tax concessions and R&D deductions Income Tax Calculation | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit Before Tax | 2,440,726 | 2,405,105 | | Expected Income Tax Expense at Statutory Tax Rate of 25% | 610,182 | 601,276 | | Tax Concessions and Tax Rate Differences for Subsidiaries' Profits | (128,031) | (100,644) | | Additional Deduction for R&D Expenses | (239,848) | (292,495) | | **Income Tax** | **234,123** | **207,155** | - Subsidiaries qualified as high-tech enterprises, those in the Western Development region, and small-profit enterprises are eligible for preferential income tax rates of **15%**, **15%**, and **20%** respectively[44](index=44&type=chunk) - Certain R&D costs are eligible for an **additional 100% deduction**[44](index=44&type=chunk) [Earnings Per Share](index=20&type=section&id=10.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This section details earnings per share, presenting basic earnings per share and noting the absence of dilutive ordinary shares Earnings Per Share Details | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (RMB thousands) | 2,128,715 | 2,124,984 | | Number of Ordinary Shares Issued (thousand shares) | 6,926,018 | 6,926,018 | | **Basic Earnings Per Share (RMB)** | **0.307** | **0.307** | - As there were no potentially dilutive ordinary shares issued during either period, diluted earnings per share are the same as basic earnings per share[46](index=46&type=chunk) [Other Comprehensive Income](index=20&type=section&id=11.%20%E5%85%B6%E4%BB%96%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A) This section details other comprehensive income, outlining components such as fair value changes of equity instruments and exchange differences Other Comprehensive Income Components | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Fair Value Changes of Equity Instruments Measured at Fair Value Through Other Comprehensive Income Recognized in the Period | 526,396 | 670,820 | | Net Deferred Tax Recognized in Other Comprehensive Income | (131,614) | (168,823) | | Exchange Differences on Translation of Financial Statements | 16,089 | (14,030) | | **Other Comprehensive Income for the Period** | **410,871** | **487,967** | [Dividend Policy](index=20&type=section&id=12.%20%E8%82%A1%E6%81%AF) This section details dividend policy, stating the Board's resolution not to declare an interim dividend and providing information on final dividends - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025[48](index=48&type=chunk) Dividend Information | Dividend Type | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Final Dividend (per share) Pertaining to Previous Financial Year, Approved in Current Period | 0.2187 RMB | 0.2174 RMB | | **Total Final Dividend** | **1,514,720** | **1,505,716** | [Trade and Bills Receivables](index=21&type=section&id=13.%20%E6%87%89%E6%94%B6%E5%B8%B3%E6%AC%BE%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A%EF%BC%8C%E6%B7%A8%E9%A1%8D) This section details trade and bills receivables, presenting their net amount and aging profile as of June 30, 2025 Trade and Bills Receivables, Net | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Bills Receivable | 869,866 | 1,410,736 | | Trade Receivables | 31,479,179 | 26,509,784 | | Provision for Credit Losses | (2,760,843) | (2,624,315) | | **Net Amount** | **29,588,202** | **25,296,205** | - Over **78%** of **trade and bills receivables** (net of provision for credit losses) have an aging profile of less than one year[51](index=51&type=chunk) [Contract Assets](index=22&type=section&id=14.%20%E5%90%88%E5%90%8C%E8%B3%87%E7%94%A2%EF%BC%8C%E6%B7%A8%E9%A1%8D) This section details contract assets, presenting their net amount by business type and explaining their nature as unbilled conditional receivables Contract Assets, Net | Business Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Telecom Infrastructure Services | 36,472,255 | 32,552,493 | | Business Process Outsourcing Services | 1,610,953 | 1,469,655 | | Application, Content and Other Services | 5,015,331 | 4,271,528 | | Provision for Credit Losses | (538,668) | (525,867) | | **Net Amount** | **42,559,871** | **37,767,809** | - **Contract assets** represent unbilled amounts receivable for construction, design, and other services, where the right to receive payment is conditional[52](index=52&type=chunk) [Trade and Bills Payables](index=23&type=section&id=15.%20%E6%87%89%E4%BB%98%E5%B8%B3%E6%AC%BE%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) This section details trade and bills payables, presenting their total amount and aging profile as of June 30, 2025 Trade and Bills Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade Payables | 62,688,302 | 59,837,140 | | Bills Payable | 4,889,247 | 6,057,749 | | **Total** | **67,577,549** | **65,894,889** | - Over **96%** of **trade and bills payables** have an aging profile of less than one year[53](index=53&type=chunk) [Contract Liabilities](index=23&type=section&id=16.%20%E5%90%88%E5%90%8C%E8%B2%A0%E5%82%B5) This section details contract liabilities, presenting their total amount by business type and explaining their nature as customer prepayments Contract Liabilities | Business Type | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Telecom Infrastructure Services | 4,951,610 | 6,700,059 | | Other Services | 2,195,968 | 2,489,991 | | **Total** | **7,147,578** | **9,190,050** | - **Contract liabilities** represent customer prepayments received by the Group before fulfilling performance obligations, recognized until the completion of related contractual obligations[54](index=54&type=chunk) [Financial Performance Analysis](index=24&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E5%88%86%E6%9E%90) This section provides a detailed analysis of the Group's financial performance in H1 2025, covering operating revenue, costs, gross profit, expenses, net profit, cash flow, and balance sheet [Operating Revenue Analysis](index=24&type=section&id=%E7%B6%93%E7%87%9F%E6%94%B6%E5%85%A5) The Group's **operating revenue** increased by **3.4%** YoY in H1 2025, with **service revenue** growing by **2.9%**. Revenue growth was primarily driven by the advancement of the Digital China strategy, opportunities in computing network construction, and deepening AI application scenarios, leading to rapid growth in application, content, and other services revenue [Revenue Analysis by Business Segment](index=24&type=section&id=%E6%8C%89%E6%A5%AD%E5%8B%99%E6%94%B6%E5%85%A5) This section details revenue by business segment, highlighting contributions and growth drivers across different service areas Revenue by Business Segment | Business Segment | H1 2025 Revenue (RMB millions) | YoY Growth | | :--- | :--- | :--- | | Telecom Infrastructure Services | 38,272 | 1.6% | | Business Process Outsourcing Services | 22,383 | 1.0% | | Application, Content and Other Services | 16,284 | 11.7% | - **Application, content, and other services** revenue maintained rapid growth, serving as the core driver for revenue growth for consecutive years, benefiting from **deepening AI application scenarios** and **accelerated digital transformation** across various industries[56](index=56&type=chunk) [Revenue Analysis by Market Segment](index=25&type=section&id=%E6%8C%89%E5%B8%82%E5%A0%B4%E6%94%B6%E5%85%A5) This section details revenue by market segment, analyzing trends and strategic initiatives across domestic telecom, non-telecom, and overseas markets Revenue by Client Market | Client Market | H1 2025 Revenue (RMB millions) | YoY Growth/Decrease | | :--- | :--- | :--- | | Domestic Telecom Operator Market | 38,203 | -4.6% | | Domestic Non-Telecom Operator Enterprise Market | 36,585 | +12.9% | | Overseas Market | 2,151 | +8.7% | - Revenue from the domestic non-telecom operator enterprise market achieved **rapid growth**, attributed to the Group's **integrated service capabilities** and focus on **strategic emerging industries**[58](index=58&type=chunk) - Overseas market **operating revenue** showed **stable growth** by integrating into the "Belt and Road" initiative, expanding into **high-value projects** and **new sectors**[58](index=58&type=chunk) [Operating Cost Analysis](index=26&type=section&id=%E7%B6%93%E7%87%9F%E6%88%90%E6%9C%AC) The Group's **operating costs** increased by **4.2%** YoY in H1 2025. **Direct staff costs** decreased by **2.6%**, **subcontracting costs** increased by **4.1%**, and **material costs** increased by **8.1%**. Changes in cost structure reflect the Group's strategic adjustments in employment optimization, subcontracting management, and the general contracting model Operating Cost Breakdown | Cost Item | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Growth/Decrease | | :--- | :--- | :--- | :--- | | Operating Costs | 69,051 | 66,296 | +4.2% | | Direct Staff Costs | 3,707 | 3,808 | -2.6% | | Subcontracting Costs | 42,932 | 41,233 | +4.1% | | Material Costs | 13,341 | 12,337 | +8.1% | - The increase in **material costs** is primarily due to the Group's optimized business model, actively undertaking large projects under the **general contracting model**[59](index=59&type=chunk) [Gross Profit Analysis](index=26&type=section&id=%E6%AF%9B%E5%88%A9%E6%BD%A4) The Group's **gross profit** decreased by **2.8%** YoY to **RMB 7,888 million** in H1 2025, with **gross profit margin** declining by **0.6 percentage points** to **10.3%**, primarily due to factors such as decreased client capital expenditure. The Group is working to improve gross profit margin by increasing the proportion of high-value businesses, optimizing R&D mechanisms, and strengthening cost control Gross Profit and Margin | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Decrease | | :--- | :--- | :--- | :--- | | Gross Profit | 7,888 | 8,116 | -2.8% | | Gross Profit Margin | 10.3% | 10.9% | -0.6 percentage points | - The decline in **gross profit margin** was mainly influenced by factors such as **decreased capital expenditure from clients**[60](index=60&type=chunk) - The Group aims to improve **gross profit margin** by selecting **high-margin projects**, increasing the proportion of **high-value businesses**, optimizing R&D mechanisms, and strengthening project management and cost control[60](index=60&type=chunk) [Selling, General and Administrative Expenses Analysis](index=27&type=section&id=%E9%8A%B7%E5%94%AE%E3%80%81%E4%B8%80%E8%88%AC%E5%8F%8A%E7%AE%A1%E7%90%86%E8%B2%BB%E7%94%A8) The Group's **selling, general, and administrative expenses** decreased by **5.5%** YoY to **RMB 6,182 million** in H1 2025, with its share of **operating revenue** decreasing by **0.8 percentage points** to **8.0%**, reflecting the Group's effective cost control and precise investment in R&D resources Selling, General and Administrative Expenses | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Decrease | | :--- | :--- | :--- | :--- | | Selling, General and Administrative Expenses | 6,182 | 6,542 | -5.5% | | Percentage of Operating Revenue | 8.0% | 8.8% | -0.8 percentage points | - The Group actively controls **selling, general, and administrative expenses**, strictly implements quality and efficiency improvement measures, and precisely invests in R&D capabilities related to **AI and digital infrastructure**[61](index=61&type=chunk) [Profit Attributable to Equity Holders of the Company Analysis](index=27&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%B1%E6%87%89%E4%BD%94%E5%88%A9%E6%BD%A4) The Group's **profit attributable to equity holders of the Company** was **RMB 2,129 million** in H1 2025, representing a **YoY increase of 0.2%**, maintaining stable growth Profit Attributable to Equity Holders of the Company | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | YoY Growth | | :--- | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company | 2,129 | 2,125 | +0.2% | [Cash Flow Analysis](index=27&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81) The Group's **net cash outflow** was **RMB 8,073 million** in H1 2025, an improvement compared to **RMB 9,123 million** in the same period last year. The Group will continue to strengthen working capital management to maintain a healthy cash flow level Net Cash Flow | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Net Cash Flow | -8,073 | -9,123 | Outflow decreased by 1,050 | - The Group consistently prioritizes working capital management and will continue to strengthen related efforts to maintain a **healthy cash flow level**[63](index=63&type=chunk) [Assets and Liabilities Analysis](index=27&type=section&id=%E8%B3%87%E7%94%A2%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group's total assets and total liabilities both increased, but the asset-liability ratio slightly decreased to **65.5%**, indicating a stable financial position Assets, Liabilities and Ratios | Metric | June 30, 2025 (RMB millions) | December 31, 2024 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 138,248 | 136,618 | +1,630 | | Total Liabilities | 90,598 | 90,004 | +594 | | Asset-Liability Ratio | 65.5% | 65.88% | -0.38 percentage points | [Corporate Governance and Other Disclosures](index=28&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E8%88%87%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2) This section outlines the Group's adherence to corporate governance principles, compliance with regulatory codes, and other relevant disclosures for H1 2025 [Audit Committee](index=28&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee has reviewed the Group's accounting principles and practices with management and discussed matters related to risk management, internal control, and financial reporting, including the **H1 2025 interim results** - The **Audit Committee** has reviewed the Group's accounting principles and practices with management and discussed matters related to risk management, internal control, and financial reporting, including the **H1 2025 interim results**[65](index=65&type=chunk) [Compliance with Corporate Governance Code](index=28&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The Board confirms that for the six months ended June 30, 2025, the Company has complied with all code provisions set out in Appendix C1 'Corporate Governance Code' of the Listing Rules - The Board confirms that for the six months ended June 30, 2025, the Company has complied with all code provisions set out in **Appendix C1 'Corporate Governance Code'** of the Listing Rules[66](index=66&type=chunk) [Compliance with Model Code for Securities Transactions by Directors](index=28&type=section&id=%E9%81%B5%E5%AE%88%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%88%99%E5%89%87) Following specific inquiries by the Company, each Director and Supervisor confirmed compliance with the 'Model Code for Securities Transactions by Directors of Listed Issuers' as set out in Appendix C3 of the Listing Rules for dealings in the Company's securities during the six months ended June 30, 2025 - Each Director and Supervisor confirmed that for the six months ended June 30, 2025, they have complied with the **'Model Code for Securities Transactions by Directors of Listed Issuers'** as set out in Appendix C3 of the Listing Rules regarding dealings in the Company's securities[67](index=67&type=chunk) [Compliance with Appendix D2 of Listing Rules](index=28&type=section&id=%E9%81%B5%E5%AE%88%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E9%99%84%E9%8C%84D2) Except for publicly announced disclosures, the Company confirms that there have been no material changes to the existing company information regarding matters listed in paragraph 32 of Appendix D2 of the Listing Rules compared to the information disclosed in the 2024 Annual Report - The Company confirms that there have been no material changes to the existing company information regarding matters listed in **paragraph 32 of Appendix D2 of the Listing Rules** compared to the information disclosed in the 2024 Annual Report[68](index=68&type=chunk) [Dealings in Listed Securities](index=29&type=section&id=%E8%B3%BC%E5%9B%9E%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B3%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[69](index=69&type=chunk) [Interim Report Publication](index=29&type=section&id=%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The interim report for the six months ended June 30, 2025, will be published later on the HKEXnews website and the Company's website, and dispatched to shareholders who request it - The interim report will be published later on the **HKEXnews website (www.hkexnews.hk)** and the **Company's website (www.chinaccs.com.hk)**[70](index=70&type=chunk) [Forward-Looking Statements](index=29&type=section&id=%E5%89%8D%E7%9E%BB%E6%80%A7%E9%99%B3%E8%BF%B0) The report reminds readers that forward-looking statements are subject to various risks, uncertainties, and assumptions, including changes in macroeconomic environment, natural disasters, industry growth, regulatory changes, and execution of business strategies, and actual results may differ materially, with no commitment from the Company to update these statements - **Forward-looking statements** are subject to various risks, uncertainties, and assumptions, including changes in macroeconomic environment, natural disasters, industry growth, regulatory changes, and execution of business strategies[71](index=71&type=chunk) - The Company's actual results may differ materially from those described in **forward-looking statements**, and the Company undertakes no obligation to update these statements[71](index=71&type=chunk)

Group 1 - The core point of the article is that Baoki has successfully won a contract worth 3.27 billion yuan for a logistics service project with Zhongtongfu Supply Chain, marking a significant milestone in empowering state-owned enterprises in logistics supply chain upgrades [1][4] - Baoki will provide comprehensive digital freight services including intelligent capacity scheduling, transportation route optimization, and in-transit tracking management to Zhongtongfu Supply Chain [3] - The collaboration aims to build an agile and resilient smart supply chain network, with plans for deep cooperation in energy management and supply chain finance, establishing a benchmark for digital transformation in the industry [4] Group 2 - Zhongtongfu Supply Chain, a wholly-owned subsidiary of China Communications Services Corporation, is a leading integrated supply chain service provider in China, covering logistics for communication equipment, warehousing management, and cross-border transportation [4] - Baoki is recognized as a leading provider of intelligent logistics solutions in China, focusing on enhancing efficiency and optimizing route planning through technology such as the internet, big data, and AI models [4]

格隆汇8月8日丨中国通信服务(00552.HK)公告，将于2025年8月21日(星期四)举行公司董事会会议，藉 以批准(其中包括)公司及其附属公司截至2025年6月30日止6个月期间的中期业绩。 相关事件 中国通信服务(00552.HK)拟8月21日举行董事会会议以审批中期业绩 中国通信服务(0552.HK)：中国综合 智慧服务龙头 AI大模型浪潮点燃增长新引擎 ...