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Chairman’s Statement
/ Annual Report 2011 /
1
Further Reinforcing the Leading Position in Domestic Telecommunications
Operator Market
As a result of the proliferating informatization trends, domestic telecommunications operators accelerated their
development and increased their capital expenditures steadily in 2011. Driven by the increasing popularity of
smart terminals, mobile Internet development and the “Broadband China” strategy, domestic telecommunications
operators further increased their investment in areas such as fiber optic broadband and mobile network upgrade and
expansion. Under such circumstances, the Group has been closely monitoring the change in customer requirements
and supporting the full-service operations of domestic telecommunications operators. It has also actively participated
in the network construction and provided network optimization and maintenance businesses which have been
brought about by the expansion of networks. As a result, the Group further reinforced its market leading position. The
revenue from the domestic telecommunications operator market achieved a rapid growth of 15.9%, representing
63.8% of total revenues.
Vigorously Expanding into Domestic Non-operator Market and Overseas Market
The accelerating industrial informatization and urbanization of China has generated a large scale of investment, which
has in turn created a significant domestic non-operator market for the Group to develop. The Group, with its capacity,
resources and successful experience gained from serving domestic telecommunications operators for many years,
is able to provide integrated communications solutions for domestic non-operator customers, and focused on
government agencies and key industries such as infrastructure, transportation, energy, and financial sectors. In 2011,
the revenue from domestic non-operators market increased by 15.7%, representing 29.7% of total revenues.
In 2011, the revenue of the Group from overseas markets achieved a rapid growth of 56.0%, and its proportion to
total revenues further increased to 6.5%. The Group further promoted its cooperation with large-scale state-owned
enterprises, equipment manufacturers and financial institutions. It also rapidly expanded and cultivated turnkey
projects, and developed subcontracting projects with enlarged scale and in an efficient manner. Whilst the Group
is eager to expand its presence in overseas markets, it is also concerned about risk management and gradually
improves its operational support mechanism for its overseas operations. During the year, the Group signed strategic
alliance agreements with financial institutions to guard against financial risks in its overseas operations through
measures such as credit insurance. The above measures are to ensure that scale breakthrough in overseas markets
can be achieved in a prudent manner.
Strengthening Core Capability through Innovation
The Group bears changes in customer needs in mind and actively strives for new models of joint venture and
cooperation in order to further accelerate its rapid growth. In 2011, the Group sought out global leading strategic
partners such as Sybase, Inc. and Bytemobile, Inc. to form joint ventures for collaboration in areas such as mobile
Internet and network optimization. By leveraging its partners’ advanced technologies, the Group is able to provide
its customers with more comprehensive solutions to their requirements. Beyond this, the Group increased its
investment in research and development for its products and services, and participated in the construction and
operation of new technology projects such as cloud computing center and Customer Premises Network (CPN),
thereby driving the Group forward as a management and technology oriented enterprise.