China Communications Services Corporation Limited Annual Report 2015
102
NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
1. PRINCIPAL ACTIVITIES AND ORGANISATION
(a) Principal activities
China Communications Services Corporation Limited (the “Company”) and its subsidiaries (hereinafter collectively
referred to as the “Group”) is a leading integrated service provider to the telecommunications, media and technology
industries in the People’s Republic of China (the “PRC”). Its principal activities comprise provision of a full range of
telecommunications support services in the PRC and overseas, including (i) telecommunications infrastructure design,
construction and project supervision and management; (ii) business process outsourcing services (including
management of infrastructure for information technologies business, general facilities management, distribution of
telecommunications service and products); and (iii) a variety of other services including applications, content and
others.
(b) Organisation
The Company was established in the PRC on 30 August 2006 as a joint stock limited company under the Company
Law of the PRC as part of the Restructuring (as defined below) of CTC, a state-owned enterprise under the direct
supervision of the State Council of the PRC. Pursuant to the Restructuring, the Group assumed the
telecommunications support services previously carried on by various subsidiaries wholly-owned or controlled by CTC
in six provinces and municipality in the PRC, namely, Guangdong Province, Zhejiang Province, Shanghai Municipality,
Fujian Province, Hubei Province and Hainan Province (collectively, the “Predecessor Operations”) from CTC. The
Company was founded by CTC, Guangdong Telecom Industry Group Corporation and Zhejiang Telecom Industry
Corporation by ways of the injection of those subsidiaries carrying on the Predecessor Operations and cash
contributions.
In connection with the Restructuring, the Predecessor Operations together with the related assets and liabilities that
were to be transferred to the Group were segregated from CTC effective on 31 March 2006 (the “Restructuring”).
The Restructuring comprised the following:
(i)
CTC underwent a restructuring programme in connection with its full range of telecommunications related
services, namely (1) telecommunications infrastructure design, construction and project supervision and
management; (2) business process outsourcing (including management of infrastructure for information
technologies business, general facilities management and distribution of telecommunications services and
products); and (3) a variety of other services including applications, content and others.
(ii) The net assets were injected into the Company by ways of asset injection of those subsidiaries carrying on the
Predecessor Operations in consideration of approximately 3,623.40 million ordinary shares with a par value of
RMB1.00 each.
