Investment Rating - The report maintains a rating of "Buy" for China Communication Services (0552.HK) [2] Core Insights - The company reported a revenue of 74.4 billion RMB for the first half of 2024, representing a year-on-year growth of 1.7% [2] - Gross profit reached 8.1 billion RMB, with a gross margin of 10.9%, an increase of 0.2 percentage points year-on-year, attributed to enhanced cost control [2] - Net profit attributable to shareholders was 2.1 billion RMB, reflecting a year-on-year increase of 4.4% [2] - The company has seen a significant improvement in new contracts for strategic emerging businesses, with a year-on-year increase of over 40% [2] Financial Performance Summary - Revenue for 1H24 was 74.4 billion RMB, with a gross profit of 8.1 billion RMB, leading to a net profit margin of 2.9% [2] - The operator market revenue was 40 billion RMB, showing a slight increase of 0.1% year-on-year, while non-operator market revenue reached 32.4 billion RMB, up 2.5% year-on-year [2] - The overseas market revenue was 2 billion RMB, marking a 26% increase year-on-year due to the easing of pandemic restrictions [2] Strategic Business Development - The company is focusing on digital infrastructure, green low-carbon initiatives, and smart city projects, with new contracts in these areas showing significant growth [2] - The strategic emerging business segment has become a key driver for revenue growth, with new contracts in digital infrastructure and green low-carbon services increasing by over 35% [2] - The company aims to leverage opportunities in AI computing and digital transformation, maintaining a strong focus on high-quality development in telecommunications and renewable energy sectors [2] Earnings Forecast and Valuation - The company’s effective cost control and improving gross margins are expected to continue, with net profit forecasts for 2024 and 2025 adjusted to 3.769 billion RMB and 3.978 billion RMB respectively [2] - The report anticipates a steady growth trajectory for the company, with EPS projected to reach 0.54 RMB in 2024 and 0.60 RMB in 2026 [3][4]

Financial Performance - The company's operating revenue for the first half of 2024 was RMB 74,412 million, an increase of 1.7%, with service revenue growing by 3.0%[4] - Net profit reached RMB 2,125 million, up 4.4%, outpacing the revenue growth by 2.7 percentage points[4] - Gross profit margin improved to 10.9%, an increase of 0.2 percentage points, continuing a positive trend seen in recent years[4] - Total comprehensive income for the period was RMB 2,685,917,000, compared to RMB 2,495,205,000 in the previous year, indicating an increase of 7.6%[29] - Basic earnings per share increased to RMB 0.307 from RMB 0.294, marking a growth of 4.4%[27] - The net profit attributable to shareholders for the six months ended June 30, 2024, was RMB 2,124,984,000, compared to RMB 2,034,456,000 in 2023, representing an increase of 4.4%[27] Revenue Breakdown - Revenue from non-telecom operator markets was RMB 32,409 million, growing by 2.5%, making it the primary driver of customer revenue growth[9] - Revenue from telecom infrastructure services was RMB 37,666 million, remaining stable compared to the previous year, representing 50.6% of total operating revenue[8] - The telecom operator market revenue was RMB 40,024 million, showing a slight increase of 0.1%, and accounted for 53.8% of total operating revenue[12] - Revenue from business process outsourcing services was RMB 22,162,474 thousand, up from RMB 21,728,657 thousand, marking an increase of about 2.0%[40] - Revenue from regions outside mainland China was RMB 1,979 million, an increase from RMB 1,570 million in the same period of 2023, representing a growth of approximately 26.0%[40] Strategic Initiatives - The company continues to focus on digital infrastructure, smart cities, and green low-carbon initiatives, enhancing its competitive edge in these strategic sectors[5] - New contracts in strategic emerging industries increased by over 40%, accounting for more than 35% of total new contracts signed[11] - The group achieved a year-on-year increase of over 35% in new contract value in the digital infrastructure sector during the first half of the year[13] - In the smart city sector, new contract value increased by over 40% year-on-year, winning multiple large EPC projects in areas such as digital government and smart transportation[14] - The green low-carbon sector saw a remarkable year-on-year growth of over 60% in new contract value, with green low-carbon projects accounting for more than half of the strategic emerging industry projects[15] - The emergency safety sector experienced a year-on-year increase of over 40% in new contract value, focusing on emergency management and cybersecurity projects[17] Research and Development - The group invested RMB 2,314 million in R&D during the first half of the year, representing an 11.1% increase compared to the previous year[18] - Software development and system support revenue grew by 11.4% year-on-year, contributing 24% to the overall revenue increase[19] - The group has accumulated over 3,600 authorized patents and over 9,700 software copyrights, with multiple core products selected for major national projects[18] Financial Position - Non-current assets as of June 30, 2024, totaled RMB 26,234,558,000, an increase from RMB 24,836,754,000 at the end of 2023[31] - Current assets amounted to RMB 96,952,996,000, compared to RMB 101,967,095,000 at the end of 2023, showing a decrease[31] - As of June 30, 2024, total liabilities amounted to RMB 83,353,762 thousand, an increase from RMB 78,122,049 thousand as of December 31, 2023, representing a growth of approximately 2.9%[32] - The total equity of the company reached RMB 44,847,891 thousand as of June 30, 2024, compared to RMB 43,667,701 thousand at the end of 2023, indicating an increase of about 2.7%[32] - The total assets of the group amounted to RMB 128,202 million, an increase of RMB 6,412 million from RMB 121,790 million as of December 31, 2023[75] Corporate Governance and Recognition - The group was recognized in multiple awards, including "Most Admired Company" and "Best CEO" in the 2024 Asia Corporate Governance Awards[23] - The company has complied with all provisions of the Corporate Governance Code as of June 30, 2024[77] Operational Highlights - The group mobilized over 46,600 personnel and 16,700 vehicles for disaster recovery efforts, restoring over 36,300 communication facilities during natural disasters[21] - The company acknowledges that forward-looking statements are subject to various risks and uncertainties, which may cause actual results to differ significantly[83]

中国通信服务(0552.HK)/通信 证券研究报告/公司深度报告 2024 年 7 月 11 日 2[Table_Industry] 算网基建龙头,重视回报 提升 派息率 [Table_ 评级:买入(首次) Invest] [Table_Finance1] 公司盈利预测及估值 | | | | | | | | |------------------------------------------|------------------------------------------------|----------------------|--------------------------------|---------------------------------|-----------------------|------------------------------| | 市场价格:4.43 港元 | 指标 | 2022A | 2023A | 2024E | 2025E | 2026E | | [Table_ 分析师:陈宁玉 Authors] | 营业收入(百万元) 增长率 yoy% | 141,20 ...

Financial Performance - The company achieved a revenue growth of 5.6% and a net profit growth of 6.7%, with a gross margin increase to 11.6%[21] - The company's operating revenue for 2023 was RMB 148,615 million, representing a 5.6% increase from RMB 140,748 million in 2022[55] - Profit attributable to shareholders for 2023 was RMB 3,584 million, up 6.7% from RMB 3,360 million in 2022[55] - Free cash flow for 2023 was RMB 4,333 million, a slight decrease of 0.5% compared to RMB 4,353 million in 2022[55] - Basic earnings per share increased to RMB 0.518 in 2023, reflecting a 6.7% rise from RMB 0.485 in 2022[55] - The company declared a dividend of RMB 0.2174 per share for 2023, which is a 12.1% increase from RMB 0.1939 in 2022[55] - The proposed dividend payout ratio for the fiscal year ending December 31, 2023, is increased to 42%, up from 40% in 2022, with a final dividend of RMB 0.2174 per share, a 12.1% increase year-on-year[73] - The company's total assets as of the end of 2023 were RMB 121,790 million, an increase of RMB 11,521 million from RMB 110,269 million at the end of 2022[169] - Total liabilities increased to RMB 78,122 million at the end of 2023, up RMB 9,477 million from RMB 68,645 million at the end of 2022, resulting in a debt-to-asset ratio of 64.1%, up 1.8 percentage points[169] Revenue Breakdown - Revenue from the domestic non-telecom operator market reached RMB 63,433 million, up 6.3% year-on-year, becoming a key growth driver[78] - Revenue from domestic telecom operator market amounted to RMB 81,726 million, increasing by 4.7% year-on-year[78] - The overseas market revenue grew to RMB 3,456 million, a significant increase of 15.3% year-on-year[78] - Revenue from telecommunications infrastructure services was RMB 76,137 million, up 4.4% from RMB 72,907 million in 2022, accounting for 51.2% of total revenue[142] - Revenue from application, content, and other services reached RMB 28,927 million in 2023, an increase of 16.8% year-on-year[121] - Revenue from business process outsourcing services was RMB 43,551 million, a 1.1% increase from RMB 43,073 million in 2022, accounting for 29.3% of total operating revenue, down 1.3 percentage points from 30.6% in 2022[144] Contract and Market Growth - New contract value in digital infrastructure increased by approximately 30%[8] - New contract value in green low-carbon solutions grew by over 50%[11] - New contract value in smart city projects saw a growth of over 20%[14] - New contract value in emergency safety solutions increased by around 8%[18] - New contracts signed in strategic emerging industries increased by over 30% year-on-year, accounting for nearly 30% of total new contracts[79] - The company is focusing on digital infrastructure, smart cities, green low-carbon initiatives, and emergency safety as key strategic areas for growth[101] Innovation and R&D - The company emphasizes technology innovation and integrated service capabilities to drive high-quality sustainable development[4] - The company invested significantly in R&D, producing 16 national standards and accumulating over 3,000 authorized patents, while maintaining its position as the fourth strongest in software and IT services for three consecutive years[82] - Research and development investment exceeded RMB 5.5 billion in 2023, focusing on key technology applications and innovations[122] - The group is developing integrated solutions for smart cities, digital government, and cybersecurity, leveraging emerging technologies like AI and big data[128] Strategic Initiatives - The company is positioned as a "new generation comprehensive smart service provider" focusing on strategic emerging industries[2] - The company is actively expanding in digital infrastructure, green low-carbon, smart cities, and emergency safety sectors[20] - The company aims to enhance its core capabilities through technological innovation and focus on strategic emerging industries[70] - The company has implemented a development strategy centered on "CAPEX + OPEX + smart applications" to enhance service quality and strengthen cooperation with telecom operators[98] Customer and Market Engagement - The company is actively responding to the digital economy demands along the "Belt and Road" initiative, aiming for rapid growth in overseas markets[138] - Major clients include domestic telecom operators, government agencies, industry clients, SMEs, and overseas customers[195] - The company provided an optimistic outlook for the next quarter, projecting a revenue increase of 10% to 1.32 billion[3] Awards and Recognition - The company ranked 4th in the "Top 100 Software and Information Technology Service Competitiveness" for three consecutive years[51] - The company was ranked 98th in the "2023 Fortune China 500" and 1,499th in the "2023 Forbes Global 2000," also recognized as a "2023 Forbes China ESG Innovation Enterprise"[90] - The company won multiple honors in the "2023 Institutional Investor" awards, including "Most Admired Company" and "Best CEO"[90] Operational Efficiency - The company reported a 5% reduction in operational costs due to efficiency improvements in the supply chain[9] - The operating cost for 2023 was RMB 131,358 million, an increase of 5.3% from 2022, representing 88.4% of operating revenue[148] - Direct employee costs rose to RMB 8,644 million, a 1.0% increase from RMB 8,558 million in 2022, accounting for 5.8% of operating revenue, down 0.3 percentage points[153] Future Outlook - The company aims to enhance its core competitiveness and build a first-class smart service innovation enterprise through continuous technological innovation and market expansion[98] - The company is considering strategic acquisitions to enhance its service offerings, with potential targets identified in the telecommunications sector[7] - Market expansion plans include entering three new international markets by the end of 2024, targeting a 25% increase in global market share[6]

更多资料加入知识星球：水木调研纪要关注公众号：水木纪要 中国通信服务20240417_原文 2024年04月18日18:17 发言人 00:00 大家下午好，今天下午我们非常荣幸的邀请到了中国通信服务口干部的钟总和梁总两位领导来 为我们各位投资人去介绍一下我们二三年整体的一个业绩情况，然后来回答各位投资人的问题。 周总好，梁你好，可以听到吗？应该的，谢谢。好好好好，那要不先请钟总和梁总简要的介 绍一下咱们公司2023年的一个业绩情况，然后再咱们再进行问答。好的，我们先请我们的投 管部的经理梁以前梁小姐这边介绍一下公司的一些基本情况。谢谢，是客人，谢谢。 发言人 00:40 客人，现在由我来先介绍介绍一下我们公司的基本的情况。如果你们有我们的业绩的材料的话 可以同步的翻一翻。就是我目前开始的就是在第16 页，在我们二三年的业绩的材料。 发言人 01:00 我们中国通服的定位是新一代综合智慧服务商，提供综合一体化智慧解决方案，就是 TIS、CPO 还有 ACO 的服务。TIS 就是电信基建服务，就是包括设计施工还有监理的服务。在二三年占我 们收入是 51%，增长 4.4%。 发言人 01:23 电信基建服务基就是 ...

Financial Performance - The company achieved operating revenue of RMB 148,615 million, an increase of 5.6% compared to the previous year[3]. - Net profit reached RMB 3,584 million, growing by 6.7%, continuing to outpace revenue growth[3]. - Gross margin improved to 11.6%, up by 0.2 percentage points, marking two consecutive years of increase[3]. - Free cash flow remained healthy at RMB 4,333 million[3]. - The group’s operating revenue for the year ended December 31, 2023, was RMB 148,614,676, an increase of 5.0% from RMB 140,747,569 in 2022[32]. - The gross profit for the same period was RMB 17,257,250, up from RMB 15,981,651, reflecting a growth of 8.0%[32]. - The net profit attributable to shareholders for 2023 was RMB 3,584,391, representing an increase of 6.7% compared to RMB 3,359,555 in 2022[32]. - The basic earnings per share for the year was RMB 0.518, compared to RMB 0.485 in the previous year, indicating a growth of 6.8%[32]. - The company reported a total comprehensive income of RMB 3,831,304 for 2023, compared to RMB 3,264,396 in 2022, marking an increase of 17.3%[37]. Revenue Breakdown - Revenue from domestic telecommunications services grew by 4.7%, while revenue from non-telecom customer markets increased by 6.3%[3]. - Revenue from application, content, and other services surged by 16.8%, contributing significantly to overall revenue growth[3]. - The telecommunications infrastructure service revenue was RMB 76,137 million, up 4.4%, accounting for 51.2% of total operating revenue[7]. - Revenue from non-telecom customer markets reached RMB 63,433 million, growing by 6.3%, becoming a key driver of overall revenue growth[8]. - Revenue from domestic telecom operators reached RMB 81,726 million, reflecting a year-on-year growth of 4.7%[11]. - The overseas market revenue grew by 15.3% year-on-year, reaching RMB 3,456 million[11]. - Revenue from business process outsourcing services was RMB 43,551 million, with a year-on-year increase of 1.1%[74]. - Revenue from application, content, and other services reached RMB 28,927 million, marking a growth of 16.8%[74]. - Revenue from supply chain services reached RMB 13,372 million, reflecting a growth of 4.1% compared to the previous year[83]. Strategic Initiatives - The company is focusing on emergency safety, with stable growth in new contract value in this area, leveraging technologies like AI and IoT[16]. - The company invested in R&D for core products, producing 16 national standards and accumulating over 3,000 patents throughout the year[17]. - The company aims to enhance its brand power by focusing on differentiated and high-quality branding, successfully completing the 5G co-construction project with China Telecom and China Unicom, which won a national quality engineering gold award[20]. - The company is committed to digital transformation and has implemented a comprehensive digital management plan to improve operational efficiency and governance capabilities[21]. - The group aims to enhance its core competitiveness by focusing on digital infrastructure, smart city services, and innovative technology solutions[28]. - The group plans to strengthen traditional business efficiency while exploring new market opportunities and service trends[28]. Awards and Recognition - The company received 49 significant technology awards, maintaining its position as the fourth most competitive software and information technology service company for three consecutive years[17]. - The company ranked 98th in the "2023 Fortune China Top 500" and 1,499th in the "2023 Forbes Global 2000," also recognized as a "2023 Forbes China ESG Innovation Company"[26]. - The company has been included in the "Hang Seng Sustainable Development Corporate Index" for two consecutive years, reflecting its commitment to sustainable development[22]. - The company has been recognized for its governance structure and risk management, receiving multiple accolades in the "2023 Best Managed Teams" awards[26]. Dividend and Shareholder Information - The board proposed a final dividend of RMB 0.2174 per share, an increase of 12.1%, raising the payout ratio from 40% to 42%[3]. - The company proposed a final dividend of RMB 0.2174 per share for 2023, an increase from RMB 0.1939 per share in 2022, indicating a rise of approximately 12.5%[62]. - The dividend will be paid to shareholders registered on July 8, 2024, with a suspension of share transfer from July 3 to July 8, 2024[121]. - The company will withhold a 10% income tax on dividends paid to foreign non-resident corporate shareholders[124]. - The annual general meeting is scheduled for June 20, 2024, with a suspension of H-share transfer from June 17 to June 20, 2024[120]. Assets and Liabilities - As of December 31, 2023, total assets amounted to RMB 121,789,750 thousand, an increase from RMB 110,268,598 thousand in the previous year, representing a growth of approximately 10.4%[39]. - Current assets totaled RMB 96,952,996 thousand, up from RMB 84,203,229 thousand, indicating a year-over-year increase of about 15.8%[39]. - Total liabilities rose to RMB 78,122,049 thousand from RMB 68,644,673 thousand, marking an increase of around 13.5%[40]. - The equity attributable to shareholders increased to RMB 42,576,759 thousand from RMB 40,360,637 thousand, which is a growth of about 5.5%[40]. - The debt-to-asset ratio increased to 64.1% at the end of 2023, up 1.8 percentage points from 62.3% at the end of 2022[108]. Compliance and Governance - The company has complied with all provisions of the Corporate Governance Code as of December 31, 2023[118]. - The audit committee has reviewed the accounting principles and practices adopted by the group, discussing risk management and internal controls[116]. - The company confirmed compliance with the standards for securities transactions by directors and supervisors during the year[119]. - The company has adopted the Corporate Governance Code and relevant regulations as its basic guidelines for corporate governance[118].

Financial Performance - Operating revenue reached RMB 73,170 million, an increase of 5.7% year-on-year[6] - Net profit attributable to shareholders was RMB 2,034 million, up 7.3% compared to the previous year[6] - Gross profit margin improved to 10.7%, an increase of 0.2 percentage points[6] - Basic earnings per share were RMB 0.294, reflecting a 7.3% increase year-on-year[6] - The annualized return on equity (ROE) was 10.0%, up 0.2 percentage points from the previous year[6] - The profit attributable to shareholders for the first half of 2023 was RMB 2,034 million, a growth of 7.3% from RMB 1,895 million in the first half of 2022[42] - The total comprehensive income for the first half of 2023 was RMB 2,495 million, an increase from RMB 2,096 million in the first half of 2022[56] - The company's operating revenue for the first half of 2023 reached RMB 73,170 million, a 5.7% increase from RMB 69,254 million in the same period of 2022[34] Revenue Sources - Revenue from domestic telecom operators grew by 7.5%, contributing significantly to overall revenue[9] - Revenue from the domestic non-operator customer market increased by 3.6%, reflecting ongoing optimization of business structure[6] - Revenue from overseas markets reached RMB 1,570 million, a year-on-year increase of 1.2%[13] - Revenue from telecommunications infrastructure services was RMB 37,688 million, growing by 7.5% year-on-year[35] - Revenue from application, content, and other services was RMB 13,753 million, with an 8.6% year-on-year increase; software development and system support services revenue grew by 31.5% to RMB 2,613 million[35] - Revenue from telecommunications infrastructure services provided to joint ventures increased to RMB 2,074,011 thousand, a 18.4% rise from RMB 1,751,740 thousand in H1 2022[123] Cost and Expenses - The company achieved a 5.4% increase in operating costs, totaling RMB 65,336 million, while direct employee costs decreased by 3.9% to RMB 3,871 million[39] - The group's selling, general and administrative expenses for the first half of 2023 were RMB 6,353 million, a 7.3% increase from RMB 5,920 million in the first half of 2022, representing 8.7% of operating revenue, up 0.2 percentage points year-on-year[41] - The company's operating costs for the six months ended June 30, 2023, totaled RMB 65,335,907 thousand, an increase from RMB 61,959,855 thousand in the previous year, representing a growth of approximately 5.7%[79] Cash Flow and Financial Position - Free cash flow improved, indicating better cash management and operational efficiency[6] - The group's net cash outflow for the first half of 2023 was RMB 2,323 million, an improvement from RMB 3,170 million in the same period of 2022, due to enhanced working capital management[44] - As of June 30, 2023, total assets amounted to RMB 119,040 million, an increase of RMB 8,771 million from RMB 110,269 million at the end of 2022, while total liabilities rose by RMB 7,685 million to RMB 76,330 million[45] - The asset-liability ratio stood at 64.1%, slightly up from the end of 2022[45] - The company's current liabilities increased to RMB 74,205,950 thousand from RMB 66,596,457 thousand, representing a rise of about 11.0%[60] - The company's cash and cash equivalents decreased to RMB 19,766,956 thousand from RMB 22,087,661 thousand, a decline of about 10.5%[58] Strategic Initiatives - The company has established a digital infrastructure research institute to focus on data center and computing network development, successfully undertaking multiple projects worth over 100 million yuan[16] - The company is actively involved in the green low-carbon sector, integrating technologies such as 5G and AI to provide intelligent and low-carbon services, and has formed strategic partnerships with 25 research institutions and universities[17] - The company aims to enhance operational efficiency through digital transformation, promoting the use of digital tools to reduce operational costs and improve customer experience[24] - The company is advancing reforms to optimize its operational management system, including the restructuring of its subsidiary into a joint-stock company[25] - The company is committed to supporting national carbon neutrality goals by focusing on power infrastructure and carbon management services[17] Research and Development - The company has increased R&D investment to strengthen its core capabilities, focusing on digital application development and key technologies such as IoT and blockchain[20] - The company has been recognized as a key player in the emergency safety sector, enhancing R&D efforts and promoting core products nationwide[19] Governance and Compliance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, ensuring transparency and accountability in its operations[131] - The company continues to operate under the economic system dominated by government-related enterprises, ensuring compliance with government pricing standards for telecom services[127] Market Position - The company ranked 98th in the 2023 "Fortune" list of China's top 500 listed companies and 1,499th in the 2023 "Forbes" Global 2000 list[28] - The company is a leading service provider in China, offering integrated smart solutions in the fields of information and digitalization, including telecommunications infrastructure services and IT management[65] Risks and Forward-Looking Statements - The company warns that forward-looking statements are subject to various risks and uncertainties, including macroeconomic changes and regulatory environment shifts[141] - The interim report emphasizes the goal of achieving high-quality development and forging a new growth curve[145]

[Key Highlights](index=1&type=section&id=Key%20Highlights) The Group steadily implemented its strategy in H1 2023, achieving positive business development, continuous improvement in operating efficiency metrics (e.g., gross margin, net profit margin, and ROE), and improved free cash flow, driven by domestic telecom operators and strategic emerging industries | Indicator | H1 2023 (RMB million) | YoY Growth (%) | H1 2023 (Ratio) | YoY Increase (percentage points) | | :-------- | :-------------------- | :------------- | :-------------- | :------------------------------- | | Operating Revenue | 73,170 | 5.7 | - | - | | Net Profit | 2,034 | 7.3 | - | - | | Gross Margin | - | - | 10.7% | 0.2 | | Net Profit Margin | - | - | 2.8% | 0.1 | | Annualized ROE | - | - | 10.0% | 0.2 | - Revenue from the domestic telecommunications operator market grew by **7.5%**, and revenue from the domestic non-operator enterprise and government market grew by **3.6%**[2](index=2&type=chunk) - Focusing on strategic emerging industries like digital infrastructure, smart cities, and green low-carbon solutions, new contract value increased by over **30%**, accounting for over **27%** of total new contract value, becoming a major contributor to business growth[2](index=2&type=chunk) [Chairman's Statement](index=2&type=section&id=Chairman's%20Statement) The Chairman's Statement outlines the company's H1 2023 operating strategy, financial performance, market expansion, core capability building, social responsibility, and future outlook, positioning itself as a 'new-generation integrated smart service provider' to achieve steady growth and improved efficiency by seizing digital economy opportunities - The Group is positioned as a 'new-generation integrated smart service provider,' aiming to build a 'first-class smart service innovative enterprise'[3](index=3&type=chunk) - Focusing on future-oriented strategic emerging businesses, the Group aims to become a 'main force in digital infrastructure construction, a leader in smart city services, a top enterprise in industrial digital services, and a trusted expert in smart operations'[3](index=3&type=chunk) [I. Operating Performance Stabilizes and Improves, Quality and Efficiency Continuously Enhance](index=2&type=section&id=I.%20Operating%20Performance%20Stabilizes%20and%20Improves%2C%20Quality%20and%20Efficiency%20Continuously%20Enhance) The Group seized digital China construction opportunities in H1 2023, achieving steady operating revenue growth, continuous improvement in gross and net profit margins, and positive trends in cash flow and shareholder returns | Indicator | H1 2023 (RMB million) | YoY Growth (%) | H1 2023 (Ratio) | YoY Increase (percentage points) | | :-------- | :-------------------- | :------------- | :-------------- | :------------------------------- | | Operating Revenue | 73,170 | 5.7 | - | - | | Service Revenue | 70,713 | 6.3 | - | - | | Operating Gross Profit | 7,834 | 7.4 | - | - | | Gross Margin | - | - | 10.7% | 0.2 | | Net Profit | 2,034 | 7.3 | - | - | | Net Profit Margin | - | - | 2.8% | 0.1 | | Annualized ROE | - | - | 10.0% | 0.2 | | Basic Earnings Per Share (RMB) | 0.294 | 7.3 | - | - | - Free cash flow improved year-on-year, and Return on Equity (ROE) further increased[4](index=4&type=chunk) [1. Adhering to Transformation and Upgrading, Three Major Business Segments Achieve Steady Growth](index=2&type=section&id=1.%20Adhering%20to%20Transformation%20and%20Upgrading%2C%20Three%20Major%20Business%20Segments%20Achieve%20Steady%20Growth) The Group's three major business segments achieved steady growth through transformation and upgrading, with telecommunications infrastructure services growing fastest, applications, content, and other services maintaining good growth, and business process outsourcing services showing stable improvement | Business Segment | H1 2023 Revenue (RMB million) | YoY Growth (%) | % of Operating Revenue | | :--------------- | :---------------------------- | :------------- | :--------------------- | | Telecommunications Infrastructure Services | 37,688 | 7.5 | 51.5 | | Business Process Outsourcing Services | 21,729 | 0.9 | 29.7 | | Applications, Content, and Other Services | 13,753 | 8.6 | 18.8 | - Growth in telecommunications infrastructure services revenue was primarily led by high-value consulting and design services, continuously improving business quality[5](index=5&type=chunk) - Within applications, content, and other services, software development and system support businesses grew rapidly by **31.5%**, demonstrating market recognition for enterprise software and digital service capabilities[6](index=6&type=chunk) [2. Integrating into Customer Ecosystems, Stabilizing Three Major Customer Markets](index=3&type=section&id=2.%20Integrating%20into%20Customer%20Ecosystems%2C%20Stabilizing%20Three%20Major%20Customer%20Markets) The Group achieved stable development in domestic non-operator enterprise and government, domestic telecommunications operator, and overseas markets by focusing on new businesses, responding to changing customer demands, and optimizing its layout, thereby consolidating its market position | Customer Market | H1 2023 Revenue (RMB million) | YoY Growth (%) | % of Operating Revenue | | :-------------- | :---------------------------- | :------------- | :--------------------- | | Domestic Telecommunications Operators Market | 39,977 | 7.5 | 54.7 | | Domestic Non-Operator Enterprise and Government Market | 31,623 | 3.6 | - | | Overseas Market | 1,570 | 1.2 | - | - The domestic non-operator enterprise and government market focused on strategic emerging industries such as digital government, enterprise digital transformation, intelligent computing centers, power infrastructure and support, and photovoltaic construction, solidifying development quality[7](index=7&type=chunk) - The domestic telecommunications operators market actively responded to demands for data centers, computing networks, and industrial digitalization, contributing the most to revenue growth among all customer groups[7](index=7&type=chunk)[8](index=8&type=chunk) - The overseas market expanded high-quality projects in key 'Belt and Road' regions, providing digital infrastructure, photovoltaic, and new energy storage construction services, with a continuous increase in the proportion of high-value businesses[8](index=8&type=chunk) [II. Focusing on New Drivers, Strategic Emerging Businesses Develop Strongly](index=4&type=section&id=II.%20Focusing%20on%20New%20Drivers%2C%20Strategic%20Emerging%20Businesses%20Develop%20Strongly) The Group actively responded to digital China construction by focusing on strategic emerging industries like digital infrastructure, smart cities, green low-carbon, and emergency safety, cultivating new growth drivers, with new contract value increasing by over **30%** year-on-year, becoming the main contributor to contract growth - New contract value in strategic emerging industries grew by over **30%** year-on-year, accounting for over **27%** of total new contract value[9](index=9&type=chunk) - In digital infrastructure, seizing opportunities from the 'East-Data-West-Computing' project and AIGC-driven data center, intelligent computing center, and supercomputing center construction, the Group established a Digital Infrastructure Industry Research Institute and successfully undertook multiple hundred-million-RMB general contracting projects[9](index=9&type=chunk) - In smart cities, guided by top-level design, the Group focused on digital government, enterprise digital transformation, and smart transportation, being shortlisted in the '2023 Digital Government Industry Map' and enhancing brand influence[10](index=10&type=chunk) - In the green low-carbon industry, serving the national 'dual carbon' strategy, the Group deeply cultivated power infrastructure, photovoltaic construction, energy services, and carbon management, engaging in strategic and industry-university-research cooperation with Beijing Green Exchange and 25 research institutions[10](index=10&type=chunk) - In emergency safety, addressing the needs of regulatory authorities and key industry clients, the Group developed core products such as asset mapping, situational awareness, safety production supervision, risk monitoring and early warning, and emergency rescue command, being selected for industry panoramas and potential rankings[10](index=10&type=chunk) [III. Continuously Building Core Capabilities, Constructing a First-Class Smart Service Innovative Enterprise](index=6&type=section&id=III.%20Continuously%20Building%20Core%20Capabilities%2C%20Constructing%20a%20First-Class%20Smart%20Service%20Innovative%20Enterprise) The Group is committed to comprehensively enhancing its core competitiveness by strengthening technological innovation, building integrated service capabilities, accelerating digital transformation, and steadily advancing key reforms, aiming to become a 'first-class smart service innovative enterprise' [1. Strengthening Technology-Driven Innovation, Enhancing Product Competitiveness](index=6&type=section&id=1.%20Strengthening%20Technology-Driven%20Innovation%2C%20Enhancing%20Product%20Competitiveness) The Group continuously increases R&D investment, optimizes its technology innovation system, focuses on industrial digital applications and core professional technologies, creates benchmark solutions and core products, and introduces high-end expert teams and tech talents to drive high-quality development through technological innovation - Continuously increasing R&D investment, focusing on core professional technology areas such as industrial digital applications, IoT, blockchain, dual-carbon energy-saving technologies, and cybersecurity[11](index=11&type=chunk) - Strengthening collaboration among R&D, marketing, and delivery teams to accelerate product market promotion efficiency[11](index=11&type=chunk) - Vigorously introducing high-end expert teams and tech talents to build strong core enterprise competitiveness[11](index=11&type=chunk) [2. Building Strong Integrated Capabilities, Providing High-Level Services to Customers](index=6&type=section&id=2.%20Building%20Strong%20Integrated%20Capabilities%2C%20Providing%20High-Level%20Services%20to%20Customers) The Group integrates 4T capabilities, focusing on customers, leveraging its integrated service advantages in digital general integration, digital infrastructure general contracting, and consulting design leadership, and continuously optimizing its marketing and operation service system to enhance end-to-end delivery capabilities - Integrating CT, IT, DT, and OT (4T) capabilities to build a high-quality service-oriented enterprise[12](index=12&type=chunk) - Leveraging integrated service advantages such as digital general integration, digital infrastructure general contracting, and consulting design leadership[12](index=12&type=chunk) - Continuously optimizing marketing and operation service systems adapted to new businesses and models, enhancing end-to-end, comprehensive delivery capabilities[12](index=12&type=chunk) [3. Accelerating Digital Transformation, Achieving High-Efficiency Operations](index=6&type=section&id=3.%20Accelerating%20Digital%20Transformation%2C%20Achieving%20High-Efficiency%20Operations) The Group prioritizes digitalization to enhance value creation, deeply integrating digital technology with production, operation, management, and product services to drive model innovation, and continuously advancing internal production and operation digital transformation to improve efficiency and reduce costs - Guided by overall planning, promoting deep integration of digital technology with enterprise production, operation, management, and product services to drive innovation in production models and business products[13](index=13&type=chunk) - Strengthening digital transformation mindset, awareness, and talent cultivation to enhance the source power of innovation[14](index=14&type=chunk) - Continuously advancing internal production and operation digital transformation, promoting tools such as production efficiency platforms and project site management systems to improve operational efficiency and data sharing capabilities[14](index=14&type=chunk) [4. Steadily Advancing Reforms in Key Areas, Building Leading Industry Enterprises](index=7&type=section&id=4.%20Steadily%20Advancing%20Reforms%20in%20Key%20Areas%2C%20Building%20Leading%20Industry%20Enterprises) The Group deepens reforms to continuously optimize enterprise operation and management mechanisms, steadily advances professional integration, completes shareholding reforms and integration of subsidiaries, and accelerates the cultivation of leading enterprises in consulting design and application software to enhance corporate governance and operational efficiency - Deepening reforms to optimize enterprise operation and management mechanisms, stimulating vitality, strengthening momentum, and enhancing capabilities[15](index=15&type=chunk) - Completed the shareholding reform of China Comservice Supply Chain Co., Ltd. and the first-phase integration of China Comservice Smart Property Development Co., Ltd[15](index=15&type=chunk) - Accelerating the cultivation of leading professional enterprises in consulting design and application software to build new competitive advantages in the industrial chain[15](index=15&type=chunk) [IV. Actively Fulfilling Environmental and Social Responsibilities, Maintaining Good Corporate Governance](index=7&type=section&id=IV.%20Actively%20Fulfilling%20Environmental%20and%20Social%20Responsibilities%2C%20Maintaining%20Good%20Corporate%20Governance) The Group actively fulfills its corporate mission and social responsibilities, adheres to standardized operations and green practices, achieving good results in environmental protection, social services, and corporate governance, gaining wide recognition from capital markets and the industry - Upholding green development concepts, established the 'Zero-Carbon Information and Communication Network Joint Laboratory,' participated in national 'dual carbon' research projects, and provided clean, low-carbon, and efficient services to customers[16](index=16&type=chunk)[17](index=17&type=chunk) - Actively undertaking social responsibilities, successfully completing communication guarantees for major events such as the 'China-Central Asia Summit' and the '31st World University Summer Games,' and actively participating in disaster relief during natural disasters[17](index=17&type=chunk) - Corporate governance level recognized by the capital market, ranking **98th** in 'Fortune' China Top 500 Listed Companies and **1,499th** in 'Forbes' Global 2000, and winning multiple 'Best Management Team' and 'Corporate Governance' awards in Asia[17](index=17&type=chunk) [V. Outlook](index=8&type=section&id=V.%20Outlook) Looking ahead, the Group will continue to strengthen its leadership in strategic emerging industries, cultivate new growth curves, enhance consulting design and infrastructure general contracting capabilities, boost brand influence, and leverage capital operations to improve industrial leadership, accelerating its transformation into a 'first-class smart service innovative enterprise' - Digital China construction and new technologies drive industrial development innovation, with broad market prospects for strategic emerging industries[18](index=18&type=chunk) - In the future, the Group will strengthen integrated consulting and design capabilities, accelerate business upgrades, increase R&D investment, introduce high-end expert talents, and advance digital transformation and strategic emerging business layouts[18](index=18&type=chunk) - Building strong infrastructure general contracting capabilities, actively expanding high-value general contracting projects in the industry, cultivating high-efficiency general contracting project manager teams, creating cost advantages, and comprehensively enhancing general contracting project management capabilities[18](index=18&type=chunk) - Strengthening brand-driven capabilities, solidifying its leading position in telecommunications infrastructure, focusing on smart cities, industrial digital services, and smart operations, and building a brand as the main force in digital infrastructure construction[18](index=18&type=chunk)[19](index=19&type=chunk) - Enhancing industrial leadership through capital operations, leveraging the role of capital as a link, actively seeking opportunities for large projects, strengthening the industrial ecosystem through investment, and promoting new business expansion and improved development quality[19](index=19&type=chunk) [Group Performance](index=10&type=section&id=Group%20Performance) This section presents the unaudited consolidated performance of China Communications Services Corporation Limited and its subsidiaries, including the condensed consolidated income statement, statement of comprehensive income, and statement of financial position, reflecting financial performance for the six months ended June 30, 2023, and financial position at period-end [Condensed Consolidated Income Statement](index=10&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2023, the Group's operating revenue reached **RMB 73,170 million**, net profit was **RMB 2,034 million**, and basic earnings per share were **RMB 0.294**, all showing year-on-year growth Condensed Consolidated Income Statement (For the six months ended June 30) | Indicator | 2023 (RMB thousand) | 2022 (RMB thousand) | | :-------- | :------------------ | :------------------ | | Operating Revenue | 73,169,553 | 69,253,532 | | Operating Costs | (65,335,907) | (61,959,855) | | Gross Profit | 7,833,646 | 7,293,677 | | Other Income | 935,824 | 940,297 | | Selling, General and Administrative Expenses | (6,353,365) | (5,920,470) | | Other Expenses | (76,420) | (76,213) | | Finance Costs | (55,394) | (42,401) | | Share of Profits of Associates and Joint Ventures | 54,320 | 39,125 | | Profit Before Tax | 2,338,611 | 2,234,015 | | Income Tax | (226,337) | (277,051) | | Profit for the Period | 2,112,274 | 1,956,964 | | Profit Attributable to Equity Holders of the Company | 2,034,456 | 1,895,456 | | Profit Attributable to Non-controlling Interests | 77,818 | 61,508 | | Basic/Diluted Earnings Per Share (RMB) | 0.294 | 0.274 | [Condensed Consolidated Statement of Comprehensive Income](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2023, the Group's profit for the period was **RMB 2,112 million**, with total other comprehensive income of **RMB 383 million**, resulting in a total comprehensive income of **RMB 2,495 million** Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Indicator | 2023 (RMB thousand) | 2022 (RMB thousand) | | :-------- | :------------------ | :------------------ | | Profit for the Period | 2,112,274 | 1,956,964 | | Other Comprehensive Income for the Period (after tax) | 382,931 | 139,371 | | Total Comprehensive Income for the Period | 2,495,205 | 2,096,335 | | Total Comprehensive Income Attributable to Equity Holders of the Company | 2,417,251 | 2,034,624 | | Total Comprehensive Income Attributable to Non-controlling Interests | 77,954 | 61,711 | [Condensed Consolidated Statement of Financial Position](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets were **RMB 119,040 million**, total liabilities were **RMB 76,330 million**, and total equity was **RMB 42,710 million**, maintaining a stable financial position Condensed Consolidated Statement of Financial Position (As of June 30, 2023) | Indicator | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :-------- | :--------------------------- | :------------------------------- | | Total Non-current Assets | 26,718,340 | 26,065,369 | | Total Current Assets | 92,321,679 | 84,203,229 | | Total Assets | 119,040,019 | 110,268,598 | | Total Current Liabilities | 74,205,950 | 66,596,457 | | Total Non-current Liabilities | 2,123,582 | 2,048,216 | | Total Liabilities | 76,329,532 | 68,644,673 | | Equity Attributable to Equity Holders of the Company | 41,416,480 | 40,360,637 | | Non-controlling Interests | 1,294,007 | 1,263,288 | | Total Equity | 42,710,487 | 41,623,925 | [Notes](index=14&type=section&id=Notes) This section provides detailed notes to the condensed consolidated interim financial information, covering the basis of preparation, significant accounting policies, segment reporting, composition of various revenues and costs, taxation, dividends, and specific information on key balance sheet items, offering essential context and details for understanding the financial statements [1. Basis of Preparation](index=14&type=section&id=1.%20Basis%20of%20Preparation) This condensed consolidated 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, also disclosing the impact of business combinations under common control - The condensed consolidated 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[25](index=25&type=chunk) [Impact of Business Combinations Under Common Control](index=14&type=section&id=Impact%20of%20Business%20Combinations%20Under%20Common%20Control) On February 28, 2023, the Group acquired 100% equity of China Post and Telecommunications Translation Service Co., Ltd. for **RMB 18.45 million**; as both are under the common control of China Telecom Group Co., Ltd., this acquisition is reflected using the pooling of interests method in the consolidated financial statements, and relevant historical data has been restated - China Comservice acquired 100% equity of China Post and Telecommunications Translation Service Co., Ltd. for **RMB 18.45 million** on February 28, 2023[26](index=26&type=chunk) - This acquisition is considered a business combination under common control, reflected using the pooling of interests method, with the target company's assets and liabilities measured at historical cost, and the consolidated financial statements have been restated[26](index=26&type=chunk) [2. Significant Accounting Policies](index=15&type=section&id=2.%20Significant%20Accounting%20Policies) This condensed consolidated interim financial information is prepared on a historical cost basis and applies newly revised International Financial Reporting Standards, which have no significant impact on the Group's financial information - This condensed consolidated interim financial information is prepared on a historical cost basis, with certain financial instruments measured at fair value[27](index=27&type=chunk) - The Group first applied IFRS 17 'Insurance Contracts' and amendments to IAS 1, IAS 8, and IAS 12, but these had no significant impact on the condensed consolidated interim financial information[28](index=28&type=chunk) [3. Segment Reporting](index=15&type=section&id=3.%20Segment%20Reporting) The Group's primary business segment is providing integrated smart solutions in the information and digitalization fields, thus no other segment information is disclosed - The Group primarily has one business segment, which is providing integrated smart solutions in the information and digitalization fields[29](index=29&type=chunk) [4. Operating Revenue](index=15&type=section&id=4.%20Operating%20Revenue) For the six months ended June 30, 2023, the Group's total operating revenue from providing integrated smart solutions was **RMB 73,170 million**, primarily from telecommunications infrastructure services, business process outsourcing services, and applications, content, and other services, with detailed breakdowns by major customers and geographical contributions Operating Revenue by Business Nature (For the six months ended June 30) | Business Nature | 2023 (RMB thousand) | 2022 (RMB thousand) | | :-------------- | :------------------ | :------------------ | | Telecommunications Infrastructure Services Revenue | 37,687,865 | 35,049,501 | | Business Process Outsourcing Services Revenue | 21,728,657 | 21,536,968 | | Applications, Content, and Other Services Revenue | 13,753,031 | 12,667,063 | | **Total** | **73,169,553** | **69,253,532** | Operating Revenue by Major Customers (For the six months ended June 30) | Customer | 2023 (RMB million) | % of Total Operating Revenue | 2022 (RMB million) | % of Total Operating Revenue | | :------- | :----------------- | :--------------------------- | :----------------- | :--------------------------- | | China Telecom Group | 25,823 | 35.3 | 22,725 | 32.8 | | China Mobile Group | 8,301 | 11.3 | 8,978 | 13.0 | | Regions outside Mainland China | 1,570 | - | 1,551 | - | - Effective January 1, 2023, the Group reclassified China Broadcasting Network Group Co., Ltd. and its subsidiaries from non-telecommunications operators to telecommunications operators, and comparative data has been reclassified[31](index=31&type=chunk) [5. Operating Costs](index=16&type=section&id=5.%20Operating%20Costs) For the six months ended June 30, 2023, the Group's operating costs were **RMB 65,336 million**, primarily comprising subcontracting costs, material costs, and direct staff costs Composition of Operating Costs (For the six months ended June 30) | Cost Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :-------- | :------------------ | :------------------ | | Subcontracting Costs | 40,303,014 | 38,063,019 | | Material Costs | 11,885,948 | 10,896,460 | | Direct Staff Costs | 3,871,293 | 4,029,976 | | Direct Costs of Goods for Distribution | 1,682,870 | 2,032,762 | | Short-term Lease and Low-value Asset Lease Expenses | 581,799 | 580,360 | | Depreciation and Amortization | 482,139 | 469,638 | | Others | 6,528,844 | 5,887,640 | | **Total** | **65,335,907** | **61,959,855** | [6. Other Income](index=17&type=section&id=6.%20Other%20Income) For the six months ended June 30, 2023, the Group's other income totaled **RMB 936 million**, primarily from interest income, dividend income, management fee income, government grants, and additional input VAT deductions Composition of Other Income (For the six months ended June 30) | Income Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :---------- | :------------------ | :------------------ | | Interest Income | 317,534 | 247,019 | | Dividend Income from Equity Instruments | 176,610 | 176,683 | | Management Fee Income | 149,716 | 151,853 | | Government Grants | 111,838 | 124,169 | | Additional Input VAT Deductions | 94,655 | 129,156 | | Gains on Disposal of Property, Plant and Equipment, Intangible Assets and Right-of-use Assets | 3,391 | 7,067 | | Penalty Income | 1,698 | 4,852 | | Investment Income and Fair Value Changes from Wealth Management Products and Structured Deposits | — | 44,185 | | Others | 80,382 | 55,313 | | **Total** | **935,824** | **940,297** | [7. Finance Costs](index=17&type=section&id=7.%20Finance%20Costs) For the six months ended June 30, 2023, the Group's finance costs were **RMB 55 million**, mainly comprising interest on bank and other borrowings and lease liabilities, with no borrowing costs capitalized into construction in progress during the period Composition of Finance Costs (For the six months ended June 30) | Expense Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :----------- | :------------------ | :------------------ | | Interest on Bank and Other Borrowings | 28,402 | 13,126 | | Interest on Lease Liabilities | 26,992 | 29,275 | | **Total** | **55,394** | **42,401** | - No borrowing costs were capitalized into construction in progress for the six months ended June 30, 2023[35](index=35&type=chunk) [8. Profit Before Tax](index=18&type=section&id=8.%20Profit%20Before%20Tax) For the six months ended June 30, 2023, the Group's profit before tax was **RMB 2,339 million**, after deducting employee costs, amortization, depreciation, material costs, direct distribution costs of goods, impairment losses, and selling, general and administrative expenses Deductions from Profit Before Tax (For the six months ended June 30) | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :------------------ | :------------------ | | Employee Costs | 8,239,454 | 8,128,702 | | Amortization | 98,229 | 82,822 | | Depreciation | 714,914 | 704,556 | | Auditor's Remuneration | 7,009 | 6,623 | | Material Costs | 11,885,948 | 10,896,460 | | Direct Costs of Goods for Distribution | 1,682,870 | 2,032,762 | | Impairment Losses and Reversals of Inventories, Net | 19,296 | 21,575 | | Impairment Losses Recognized and Reversals for Accounts Receivable, Other Receivables, Contract Assets and Others, Net | 165,852 | 118,247 | | Short-term Lease and Low-value Asset Lease Expenses | 665,716 | 663,808 | Major Expense Categories (For the six months ended June 30) | Expense Item | 2023 (RMB million) | 2022 (RMB million) | | :----------- | :----------------- | :----------------- | | Selling and Marketing Expenses | 1,180 | 1,119 | | Administrative Expenses | 2,748 | 2,576 | | Research and Development Costs | 2,082 | 1,924 | | Other Expenses | 343 | 301 | [9. Income Tax](index=18&type=section&id=9.%20Income%20Tax) For the six months ended June 30, 2023, the Group's total income tax was **RMB 226 million**, with differences between actual tax expense and estimated income tax at statutory rates primarily due to subsidiary tax incentives, non-deductible expenses, non-taxable income, and additional R&D expense deductions Composition of Income Tax (For the six months ended June 30) | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :------------------ | :------------------ | | Current Tax | 252,167 | 439,393 | | Deferred Tax | (25,830) | (162,342) | | **Total Income Tax** | **226,337** | **277,051** | - The Group's PRC subsidiaries calculate income tax at a statutory rate of **25%**, with eligible high-tech enterprises, Western Development, and small-profit enterprises enjoying preferential tax rates of **15%** or **20%**[38](index=38&type=chunk)[39](index=39&type=chunk) - Certain R&D costs are eligible for an additional **100%** deduction (compared to **75%** in 2022)[39](index=39&type=chunk) [10. Earnings Per Share](index=20&type=section&id=10.%20Earnings%20Per%20Share) For the six months ended June 30, 2023, the Group's basic earnings per share were **RMB 0.294**, which was the same as diluted earnings per share due to the absence of outstanding potentially dilutive ordinary shares Earnings Per Share (For the six months ended June 30) | Indicator | 2023 (RMB) | 2022 (RMB) | | :-------- | :--------- | :--------- | | Basic/Diluted Earnings Per Share | 0.294 | 0.274 | - Basic earnings per share are calculated by dividing profit attributable to equity holders of the Company of **RMB 2,034 million** by **6,926,018 thousand** shares[40](index=40&type=chunk) [11. Other Comprehensive Income](index=20&type=section&id=11.%20Other%20Comprehensive%20Income) For the six months ended June 30, 2023, the Group's total other comprehensive income was **RMB 383 million**, primarily from fair value changes of equity instruments measured at fair value through other comprehensive income, and exchange differences on translation of financial statements Composition of Other Comprehensive Income (For the six months ended June 30) | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :------------------ | :------------------ | | Fair Value Changes of Equity Instruments Measured at Fair Value Through Other Comprehensive Income Recognized During the Period | 498,426 | 162,028 | | Net Deferred Tax Credited to Other Comprehensive Income | (126,265) | (39,932) | | Exchange Differences on Translation of Financial Statements | 10,770 | 17,275 | | **Other Comprehensive Income for the Period** | **382,931** | **139,371** | [12. Dividends](index=20&type=section&id=12.%20Dividends) The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2023, while also disclosing the final dividend pertaining to the previous financial year approved during this period - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2023[42](index=42&type=chunk) Final Dividend Pertaining to the Previous Financial Year Approved During the Period | Item | 2023 (RMB thousand) | 2022 (RMB thousand) | | :--- | :------------------ | :------------------ | | Final Dividend (RMB per share) | 0.1939 | 0.1732 | | **Total** | **1,342,955** | **1,199,587** | [13. Accounts Receivable and Bills Receivable, Net](index=21&type=section&id=13.%20Accounts%20Receivable%20and%20Bills%20Receivable%2C%20Net) As of June 30, 2023, the Group's net accounts receivable and bills receivable totaled **RMB 26,014 million**, after deducting credit loss provisions, with a detailed aging analysis provided Accounts Receivable and Bills Receivable, Net (As of June 30, 2023) | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--------------------------- | :------------------------------- | | Bills Receivable | 441,536 | 508,294 | | Accounts Receivable | 27,647,258 | 21,748,457 | | Provision for Credit Losses | (2,075,072) | (1,946,486) | | **Total** | **26,013,722** | **20,310,265** | Aging Analysis of Accounts Receivable and Bills Receivable (As of June 30, 2023) | Aging | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :---- | :--------------------------- | :------------------------------- | | Current | 1,619,305 | 1,897,638 | | Within One Year | 20,960,356 | 15,651,051 | | Over One Year but Less Than Two Years | 2,569,742 | 2,026,546 | | Over Two Years but Less Than Three Years | 627,570 | 513,913 | | Over Three Years but Less Than Four Years | 144,017 | 139,131 | | Over Four Years but Less Than Five Years | 44,258 | 33,512 | | Over Five Years | 48,474 | 48,474 | | **Total** | **26,013,722** | **20,310,265** | [14. Contract Assets, Net](index=22&type=section&id=14.%20Contract%20Assets%2C%20Net) As of June 30, 2023, the Group's net contract assets totaled **RMB 29,456 million**, primarily from telecommunications infrastructure services, after deducting credit loss provisions; these are unbilled amounts due for services provided, expected to be transferred to accounts receivable within one year Contract Assets, Net (As of June 30, 2023) | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--------------------------- | :------------------------------- | | Telecommunications Infrastructure Services | 24,486,094 | 21,099,704 | | Business Process Outsourcing Services | 1,596,019 | 1,114,789 | | Applications, Content, and Other Services | 3,678,669 | 3,337,797 | | Provision for Credit Losses | (304,349) | (283,469) | | **Total** | **29,456,433** | **25,268,821** | - Contract assets are unbilled amounts due to the Group for construction, design, and other services provided, where the right to consideration is conditional[47](index=47&type=chunk) - The Group typically transfers contract assets that reach specific milestones to accounts receivable no later than one year after the reporting period[47](index=47&type=chunk) [15. Accounts Payable and Bills Payable](index=22&type=section&id=15.%20Accounts%20Payable%20and%20Bills%20Payable) As of June 30, 2023, the Group's total accounts payable and bills payable amounted to **RMB 52,915 million**, with most due within one year, and a detailed aging analysis is provided Accounts Payable and Bills Payable (As of June 30, 2023) | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--------------------------- | :------------------------------- | | Accounts Payable | 49,130,212 | 40,985,965 | | Bills Payable | 3,784,630 | 3,625,330 | | **Total** | **52,914,842** | **44,611,295** | Aging Analysis of Accounts Payable and Bills Payable (As of June 30, 2023) | Aging | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :---- | :--------------------------- | :------------------------------- | | Within One Year | 50,368,332 | 42,062,776 | | Over One Year but Less Than Two Years | 1,514,246 | 1,414,963 | | Over Two Years but Less Than Three Years | 454,736 | 450,309 | | Over Three Years | 577,528 | 683,247 | | **Total** | **52,914,842** | **44,611,295** | - Amounts due to China Telecom Group, the Group's associates, and associates of China Telecom Group are unsecured, interest-free, and expected to be settled within one year[48](index=48&type=chunk) [16. Contract Liabilities](index=23&type=section&id=16.%20Contract%20Liabilities) As of June 30, 2023, the Group's contract liabilities totaled **RMB 8,193 million**, primarily from telecommunications infrastructure services and other services; these represent customer prepayments received before fulfilling performance obligations Contract Liabilities (As of June 30, 2023) | Item | June 30, 2023 (RMB thousand) | December 31, 2022 (RMB thousand) | | :--- | :--------------------------- | :------------------------------- | | Telecommunications Infrastructure Services | 5,870,883 | 8,526,663 | | Other Services | 2,321,773 | 2,341,312 | | **Total** | **8,192,656** | **10,867,975** | - Contract liabilities are customer prepayments received by the Group before fulfilling performance obligations, recognized as contract liabilities until the related contract performance obligations are completed[49](index=49&type=chunk) [Financial Review](index=24&type=section&id=Financial%20Review) This section provides a detailed review of the Group's financial performance for H1 2023, including operating revenue, operating costs, gross profit, selling, general and administrative expenses, profit attributable to equity holders, cash flow, and asset and liability status, highlighting the company's steady growth and improved efficiency amidst digital economy opportunities [Operating Revenue](index=24&type=section&id=Operating%20Revenue) The Group's operating revenue for H1 2023 reached **RMB 73,170 million**, a **5.7%** year-on-year increase, driven by its strategy of 'value leadership, steady progress, and high-quality development,' and seizing opportunities in the digital economy and new infrastructure construction Operating Revenue (For the six months ended June 30) | Indicator | H1 2023 (RMB million) | H1 2022 (RMB million) | YoY Growth (%) | | :-------- | :-------------------- | :-------------------- | :------------- | | Operating Revenue | 73,170 | 69,254 | 5.7 | - The Group is positioned as a 'new-generation integrated smart service provider,' aiming to become a 'main force in digital infrastructure construction, a leader in smart city services, a top enterprise in industrial digital services, and a trusted expert in smart operations'[50](index=50&type=chunk) [Revenue by Business Segment](index=24&type=section&id=Revenue%20by%20Business%20Segment) All three of the Group's business segments achieved revenue growth, with telecommunications infrastructure services being the primary driver, and design services, software development, and system support services performing particularly well, demonstrating the company's enhanced capabilities in digital transformation Revenue by Business Segment (For the six months ended June 30) | Business Segment | H1 2023 Revenue (RMB million) | YoY Growth (%) | | :--------------- | :---------------------------- | :------------- | | Telecommunications Infrastructure Services | 37,688 | 7.5 | | Business Process Outsourcing Services | 21,729 | 0.9 | | Applications, Content, and Other Services | 13,753 | 8.6 | - Telecommunications infrastructure services were the primary driver of business growth, with design services revenue reaching **RMB 5,200 million**, a **15.3%** year-on-year increase[51](index=51&type=chunk) - Within applications, content, and other services, software development and system support services revenue reached **RMB 2,613 million**, growing by **31.5%** year-on-year, maintaining over **20%** growth for several consecutive years[51](index=51&type=chunk) [Revenue by Market Segment](index=24&type=section&id=Revenue%20by%20Market%20Segment) The Group achieved revenue growth in domestic telecommunications operator, domestic non-operator enterprise and government, and overseas markets, with the domestic telecommunications operator market making significant contributions, and the non-operator enterprise and government market maintaining stable growth through optimized business structure and expansion of high-value businesses Revenue by Market Segment (For the six months ended June 30) | Customer Market | H1 2023 Revenue (RMB million) | YoY Growth (%) | | :-------------- | :---------------------------- | :------------- | | Domestic Telecommunications Operators Market | 39,977 | 7.5 | | Domestic Non-Operator Enterprise and Government Market | 31,623 | 3.6 | | Overseas Market | 1,570 | 1.2 | - The domestic telecommunications operator market adhered to the 'CAPEX + OPEX + Smart Applications' development strategy, actively responding to demands for data center and computing network construction and industrial digitalization, making significant contributions to performance growth[53](index=53&type=chunk) - The domestic non-operator enterprise and government market focused on strategic opportunities in the digital economy and industrial digitalization, deeply exploring business demands such as data centers, digital government, and enterprise digital transformation, and expanding high-value businesses[53](index=53&type=chunk) [Operating Costs](index=25&type=section&id=Operating%20Costs) The Group's operating costs increased by **5.4%** year-on-year in H1 2023, with a decrease in direct staff costs, effective control over the increase in subcontracting costs, and a significant slowdown in the increase in material costs, demonstrating the company's efforts in cost management Operating Cost Changes (For the six months ended June 30) | Cost Item | H1 2023 (RMB million) | H1 2022 (RMB million) | YoY Change (%) | | :-------- | :-------------------- | :-------------------- | :------------- | | Total Operating Costs | 65,336 | 61,960 | 5.4 (Increase) | | Direct Staff Costs | 3,871 | 4,030 | (3.9) (Decrease) | | Subcontracting Costs | 40,303 | 38,063 | 5.9 (Increase) | | Material Costs | 11,886 | 10,896 | 9.1 (Increase) | - The Group reasonably controlled total headcount and optimized employment structure, leading to a continuous decrease in direct staff costs[54](index=54&type=chunk) - Strengthened subcontracting management and enhanced self-delivery capabilities, effectively controlling the increase in subcontracting costs[54](index=54&type=chunk) - Strengthened general contracting project management, enhancing material cost control through optimized internal procurement systems and centralized procurement, significantly slowing down the increase in material costs[54](index=54&type=chunk) [Gross Profit](index=25&type=section&id=Gross%20Profit) The Group's gross profit increased by **7.4%** year-on-year in H1 2023, with gross margin rising by **0.2** percentage points to **10.7%**, continuing to stabilize and recover, primarily due to the company's focus on quality and efficiency, strengthened project and cost management, and a steady increase in the proportion of high-value businesses Gross Profit and Gross Margin (For the six months ended June 30) | Indicator | H1 2023 (RMB million) | H1 2022 (RMB million) | YoY Growth (%) | Gross Margin (%) | | :-------- | :-------------------- | :-------------------- | :------------- | :--------------- | | Gross Profit | 7,834 | 7,294 | 7.4 | - | | Gross Margin | - | - | - | 10.7 | - Gross margin increased by **0.2** percentage points year-on-year to **10.7%**, continuing to stabilize and recover[55](index=55&type=chunk) - Through performance-based incentives, subsidiaries selected and expanded high-margin projects, strengthened project management and cost control, and enhanced business value creation capabilities[55](index=55&type=chunk) - With deeper penetration into the digital economy, new infrastructure construction, and industrial digitalization, the proportion of high-value businesses will steadily increase, driving a positive trend in overall gross margin[55](index=55&type=chunk) [Selling, General and Administrative Expenses](index=26&type=section&id=Selling%2C%20General%20and%20Administrative%20Expenses) The Group's selling, general and administrative expenses for H1 2023 were **RMB 6,353 million**, a **7.3%** year-on-year increase, with its proportion of operating revenue slightly rising to **8.7%**, mainly due to the normalization of economic activities Selling, General and Administrative Expenses (For the six months ended June 30) | Indicator | H1 2023 (RMB million) | H1 2022 (RMB million) | YoY Growth (%) | % of Operating Revenue | | :-------- | :-------------------- | :-------------------- | :------------- | :--------------------- | | Selling, General and Administrative Expenses | 6,353 | 5,920 | 7.3 | 8.7 | - Selling, general and administrative expenses as a percentage of operating revenue increased by **0.2** percentage points year-on-year, primarily due to the normalization of economic activities[56](index=56&type=chunk) [Profit Attributable to Equity Holders of the Company](index=26&type=section&id=Profit%20Attributable%20to%20Equity%20Holders%20of%20the%20Company) The Group's profit attributable to equity holders of the Company for H1 2023 was **RMB 2,034 million**, a **7.3%** year-on-year increase Profit Attributable to Equity Holders of the Company (For the six months ended June 30) | Indicator | H1 2023 (RMB million) | H1 2022 (RMB million) | YoY Growth (%) | | :-------- | :-------------------- | :-------------------- | :------------- | | Profit Attributable to Equity Holders of the Company | 2,034 | 1,895 | 7.3 | [Cash Flow](index=26&type=section&id=Cash%20Flow) The Group's net cash outflow for H1 2023 was **RMB 2,323 million**, an improvement from **RMB 3,170 million** in the prior year, primarily due to strengthened working capital management Net Cash Flow (For the six months ended June 30) | Indicator | H1 2023 (RMB million) | H1 2022 (RMB million) | | :-------- | :-------------------- | :-------------------- | | Net Cash Flow | (2,323) | (3,170) | - Net cash outflow improved year-on-year, primarily because the Group adhered to value leadership, strengthened working capital management, and improved net operating cash flow[57](index=57&type=chunk) [Assets and Liabilities](index=26&type=section&id=Assets%20and%20Liabilities) As of June 30, 2023, the Group's total assets and total liabilities both increased, with the asset-liability ratio slightly rising, yet maintaining a stable financial position Assets and Liabilities Status (As of June 30, 2023) | Indicator | June 30, 2023 (RMB million) | December 31, 2022 (RMB million) | Change (RMB million) | | :-------- | :-------------------------- | :------------------------------ | :------------------- | | Total Assets | 119,040 | 110,269 | 8,771 (Increase) | | Total Liabilities | 76,330 | 68,645 | 7,685 (Increase) | | Asset-Liability Ratio | 64.1% | - | Slightly Increased | [Other Information](index=27&type=section&id=Other%20Information) This section covers other important information regarding the company's corporate governance, compliance, securities trading, interim report publication, and forward-looking statements, and lists Board members, ensuring transparency and adherence to regulatory requirements [Audit Committee](index=27&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's accounting principles, risk management, internal controls, and financial reporting matters, including the interim results for the six months ended June 30, 2023, with management and international auditors - The Audit Committee has reviewed the accounting principles and practices adopted by the Group and discussed risk management, internal controls, and financial reporting matters, including the interim results[59](index=59&type=chunk) [Compliance with Corporate Governance Code](index=27&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company has complied with the code provisions set out in the Corporate Governance Code in Appendix 14 to the Listing Rules, using the 'Company Law of the People's Republic of China' and applicable laws and regulations in both regions as fundamental guidelines for corporate governance - The Company has complied with the code provisions set out in the Corporate Governance Code in Appendix 14 to the Listing Rules[60](index=60&type=chunk) - The 'Company Law of the People's Republic of China' and applicable laws, regulations, and regulatory requirements in both regions serve as fundamental guidelines for the Company's corporate governance[60](index=60&type=chunk) [Compliance with the Model Code for Securities Transactions by Directors of Listed Issuers](index=27&type=section&id=Compliance%20with%20the%20Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Listing Rules, and after specific inquiry, all Directors and Supervisors confirmed compliance with the Code - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix 10 to the Listing Rules[61](index=61&type=chunk) - All Directors and Supervisors confirmed compliance with the Model Code for securities transactions of the Company for the six months ended June 30, 2023[61](index=61&type=chunk) [Compliance with Appendix 16 to the Listing Rules](index=27&type=section&id=Compliance%20with%20Appendix%2016%20to%20the%20Listing%20Rules) The Company confirms that, apart from matters already disclosed, there have been no material changes to the existing company information listed in paragraph 32 of Appendix 16 to the Listing Rules compared to the information disclosed in the 2022 Annual Report - The Company confirms that there have been no material changes to the existing company information listed in paragraph 32 of Appendix 16 to the Listing Rules compared to the information disclosed in the 2022 Annual Report[62](index=62&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2023, 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, 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[63](index=63&type=chunk) [Interim Report](index=27&type=section&id=Interim%20Report) The interim report for the six months ended June 30, 2023, will be dispatched to shareholders at a later date and published on the HKEXnews website and the Company's website - The interim report for the six months ended June 30, 2023, will be dispatched to shareholders at a later date and published on the HKEXnews website (www.hkexnews.hk) and the Company's website (www.chinaccs.com.hk)[63](index=63&type=chunk) [Forward-Looking Statements](index=28&type=section&id=Forward-Looking%20Statements) The Company reminds readers that certain statements in the report are forward-looking, subject to risks, uncertainties, and assumptions such as changes in macroeconomic environment, natural disasters, industry growth, regulatory environment, and business strategy execution, where actual results may differ materially, and the Company undertakes no obligation to update these statements - Forward-looking statements are subject to risks, uncertainties, and assumptions such as changes in the macroeconomic environment, natural disasters, relevant industry growth, changes in the regulatory environment, and execution of business strategies[64](index=64&type=chunk) - The Company's actual results may differ materially from those described in forward-looking statements, and the Company will not update these forward-looking statements[64](index=64&type=chunk) [Board of Directors](index=28&type=section&id=Board%20of%20Directors) The Company's Board of Directors includes Executive Directors Mr. Liu Guiqing, Mr. Yan Dong, and Ms. Zhang Xu; Non-executive Directors Mr. Gao Tongqing, Mr. Tang Yongbo, and Mr. Huang Zhen; and Independent Non-executive Directors Mr. Xiao Weiqiang, Mr. Lu Tingjie, Mr. Wang Qi, and Mr. Wang Chungge - Executive Directors: Mr. Liu Guiqing, Mr. Yan Dong, and Ms. Zhang Xu[64](index=64&type=chunk) - Non-executive Directors: Mr. Gao Tongqing, Mr. Tang Yongbo, and Mr. Huang Zhen[64](index=64&type=chunk) - Independent Non-executive Directors: Mr. Xiao Weiqiang, Mr. Lu Tingjie, Mr. Wang Qi, and Mr. Wang Chungge[64](index=64&type=chunk)

Financial Performance - Revenue growth of 5.0% and net profit growth of 6.4% for 2022, indicating strong financial performance [8] - Operating revenue for 2022 reached RMB 140,746 million, representing a 5.0% increase from RMB 133,991 million in 2021 [13] - Profit attributable to shareholders for 2022 was RMB 3,358 million, up 6.4% from RMB 3,157 million in 2021 [13] - Free cash flow for 2022 was RMB 4,353 million, reflecting a 7.2% increase compared to RMB 4,060 million in 2021 [13] - Basic earnings per share for 2022 were RMB 0.485, a 6.4% rise from RMB 0.456 in 2021 [13] - Total dividend per share for 2022 was RMB 0.1939, marking a 12.0% increase from RMB 0.1732 in 2021 [13] - The return on equity (ROE) was 8.5%, an increase of 0.1 percentage points year-on-year [23] - The company reported a decrease in operational costs by L%, contributing to improved profit margins [9] Revenue Breakdown - Revenue from telecommunications infrastructure services was RMB 72,907 million, accounting for 51.8% of total revenue, with a year-on-year growth of 1.4% [24] - Business process outsourcing services generated RMB 43,072 million, representing 30.6% of total revenue, with a year-on-year increase of 6.0% [24] - Revenue from application, content, and other services grew by 15.3% year-on-year to RMB 24,767 million, making it the largest driver of revenue growth [24] - Revenue from domestic non-telecom operator customers was RMB 60,583 million, representing a year-on-year growth of 5.5% [28] - Revenue from domestic telecom operator market reached RMB 77,165 million, with a year-on-year increase of 4.6%, becoming a key driver for overall revenue growth [29] - The overseas market revenue reached RMB 2,998 million, showing a year-on-year growth of 9.3% [29] Strategic Focus and Initiatives - The company aims to leverage digital economy opportunities to enhance core competitiveness and develop a second growth curve [5] - Focus on strategic emerging industries such as digital infrastructure, smart cities, and green low-carbon initiatives [5] - Continuous internal digital transformation is being implemented to improve operational efficiency [1] - The company is committed to high-quality development and creating new growth curves through integrated smart solutions [1] - The group is focusing on digital infrastructure construction, targeting key areas such as data centers, 5G, and industrial internet [32] - The group aims to enhance its smart city service capabilities, aligning with national strategies for urbanization and community development [33] Research and Development - The group's R&D expenditure was RMB 4,952 million, reflecting a year-on-year increase of 17.0% [30] - The company invested approximately RMB 50 billion in R&D in 2022, with cumulative R&D investment since the 13th Five-Year Plan reaching RMB 250 billion [65] - The company continues to invest in R&D to support digital transformation opportunities and enhance system integration and software development capabilities [79] Awards and Recognition - The company ranked fourth in the "2022 Top 100 Software and Information Technology Service Competitiveness" for the second consecutive year [20] - The company was recognized with multiple awards in 2022, including "Best CEO" and "Best CFO" in the Asia region [19] - The group received a total of 28 provincial and ministerial-level awards for its technological achievements throughout the year [30] Market Expansion and Customer Base - The first major customer group now consists of non-telecom operators, indicating a shift in customer base [11] - The company has expanded its services globally, covering dozens of countries and regions [17] - The company is expanding its overseas market presence, particularly in the Middle East and Southeast Asia, focusing on digital infrastructure and data center projects [54] Governance and Management - The company’s management team includes experienced professionals with over 30 years in the telecommunications industry [110][115] - The financial management team has over 20 years of experience in telecommunications and finance, ensuring robust financial oversight [113] - The company’s board of directors is responsible for formulating the dividend distribution plan, which will be executed following relevant legal and regulatory procedures [136] Related Party Transactions - The company has established seven continuous connected transaction agreements with China Telecom to manage related transactions, which were approved by independent shareholders [171] - The company ensures that the terms offered to China Telecom Group are not less favorable than those provided to independent third parties for similar services [177] - The agreements with China Telecom are expected to provide a stable revenue source, benefiting the company's future growth and development [173] Financial Commitments and Liabilities - Total contractual commitments as of December 31, 2022, amount to RMB 1,235,997,000, with RMB 1,023,431,000 due in 2023 [107] - Short-term borrowings total RMB 752,001,000, while long-term loans amount to RMB 129,120,000, with scheduled repayments of RMB 20,058,000 in 2023 [107] - The company has committed capital expenditures of RMB 217,583,000 that are contracted but not yet executed [107] Risks and Challenges - The company faces risks related to China's economic, political, and social conditions, which could significantly impact its business performance and financial condition [200] - The company anticipates potential economic downturns or disasters that could affect its operations and financial performance [200]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 中 國 通 信 服 務 股 份 有 限 公 司 CHINA COMMUNICATIONS SERVICES CORPORATION LIMITED （於中華人民共和國註冊成立之股份有限公司） （股份編號：552） 截至二零二二年十二月三十一日止之年度業績公佈 要點 . 本集團攻堅克難，整體業績再創新高，主要的經營業績、效益和股東回報指標全面 向好，實現高質量發展。 . 經營收入達到人民幣140,746百萬元，增長5.0%。 . 淨利潤達到人民幣3,358百萬元，增長6.4%，實現了淨利潤增速快於經營收入增 速的良好勢頭。 . 毛利率為11.4%，提升0.4個百分點，扭轉了近十多年以來的下降趨勢，實現企穩 ...