History

With over decades of experience in communications industry, China Comservice is one of the major network builders for the first mobile communications network in China and national communications backbone transmission network for all major telecommunications operators in China. And we have been assisting the telecommunications operators to build the largest network with the largest subscriber base in the world.

Historically, the business currently operated by us was operated by the former Ministry of Posts and Telecommunications of the PRC (the "MPT"), which was responsible for the administration of the telecommunications industry in China. As part of the restructuring, the Ministry of Information Industry of the PRC (the "MII") was established in March 1998 to assume the regulatory responsibilities of the MPT. The business operation functions of the former MPT were separated along four business lines: fixed-line, mobile, paging and satellite communications in 1999 with the approval of State Council. The Directorate General of Telecommunications of the former MPT was renamed China Telecom in May 2000 to operate the nationwide fixed-line telecommunications business and specialized telecommunications support businesses.

In accordance with the State Council's comprehensive restructuring plan relating to wireline telecommunication sector in 2001, the telecommunications business of China Telecom was divided geographically into two businesses. Telecommunications business in northern ten provinces, autonomous region and centrally administered municipalities in China (namely Beijing, Liaoning, Tianjin, Hebei, Shandong, Henan, Heilongjiang, Jilin, Neimenggu and Shanxi) was merged with those of China Netcom Corporation and Jitong Communications Co., Ltd. to form China Netcom. China Telecom retained the telecommunications business as well as the specialized telecommunications support services in the remaining southern 21 provinces, autonomous regions and centrally administered municipalities in China (namely Shanghai, Guangdong, Zhejiang, Jiangsu, Anhui, Fujian, Jiangxi, Guangxi, Chongqing, Sichuan, Hubei, Hunan, Hainan, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang and Tibet) and continued to own the brand name "China Telecom".

Since 2001, China Telecom has carried out a series of restructuring of its telecommunications business, including restructuring of specialized telecommunications support services business. As part of the restructuring, China Telecom transferred its telecommunications operations in Shanghai, Guangdong, Jiangsu and Zhejiang and the related assets and liabilities to China Telecom Corporation Limited. In November 2002, China Telecom Corporation Limited completed its initial public offering on the Hong Kong Stock Exchange and the New York Stock Exchange.

In anticipation of our global offering, China Communications Services Corporation Limited was incorporated on 30 August 2006 as a joint stock company with limited liability by our Promoters. To effect our restructuring, we entered into a restructuring agreement with China Telecom, pursuant to which the restructuring took effect as at 31 March 2006. As part of the restructuring, China Telecom transferred its specialized telecommunications support businesses in Shanghai municipality, Zhejiang, Fujian, Hubei, Guangdong and Hainan provinces, which comprised our then primary service regions, together with the related assets and liabilities, to us. These regions are among the first within the southern 21 provinces, autonomous regions and centrally administrated municipalities which completed the restructuring process. On 8 December 2006, the H shares issued by the Company were successfully listed on the Main Board of the Stock Exchange of Hong Kong Limited.