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/ China Communications Services Corporation Limited /
Report of the Directors
According to the equi ty transfer agreement between China Telecom and China Nat ional Postal and
Telecommunications Appliances Corporation on 28 May 2010, China Telecom agreed to transfer 108,899,720
domestic shares of the Company to China National Postal and Telecommunications Appliances Corporation. On 21
June 2011, the equity transfer was formally completed.
As at 31 December 2011, the share capital of the Company was RMB5,771,682,000 divided into 5,771,682,000
shares of RMB1.00 each. The share capital of the Company was comprised of the following as at the 31 December
2011:
Shares
Number of
shares
Approximate
Percentage of
issued share
capital (%)
Domestic shares (Total)
3,778,831,800
65.47%
Domestic shares held by:
China Telecommunications Corporation
2,926,752,080
50.71%
China Mobile Communications Corporation
506,880,000
8.78%
China United Network Communications Group Company Limited
236,300,000
4.09%
China National Postal and Telecommunications Appliances Corporation
108,899,720
1.89%
H shares (Total)
1,992,850,200
34.53%
Total
5,771,682,000
100.00%
Pursuant to the resolutions passed at the extraordinary general meeting, H shareholders class meeting and the
domestic shareholders class meeting of the Company held on 28 June 2011 and as approved by domestic and
overseas regulatory authorities, the Company announced the launch of H share and domestic share rights issue plan
of an aggregate of 1,154,336,400 new shares, including 398,570,040 H rights shares and 755,766,360 domestic
rights shares on the basis of 2 rights shares for every 10 existing shares on 30 December 2011 at the price of
HK$3.19 per H rights share and RMB2.59 per domestic rights share, respectively. On 10 February 2011, the H rights
shares were traded on the Stock Exchange. After completion of the rights issue, the total number of issued shares
of the Company increased to 6,926,018,400 shares, including 2,391,420,240 H shares and 4,534,598,160 domestic
shares.