China Communications Services Corporation Limited Annual Report 2015
103
NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
1. PRINCIPAL ACTIVITIES AND ORGANISATION
(continued)
(b) Organisation
(continued)
(iii) The Group, immediately after the Restructuring, contains substantially all of the operating assets and liabilities
relating to the Predecessor Operations, comprising (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, distribution of
telecommunications services and products); and (3) a variety of other services including applications, content
and others.
(iv) In connection with the Restructuring, certain assets and liabilities historically associated with the Predecessor
Operations were not transferred to the Company and were retained by CTC.
The above Restructuring procedures primarily resulted in an effect of the transfer from CTC to the Company of the
operating assets and liabilities relating to the telecommunications related services carried on by the Predecessor
Operations, which were previously owned or controlled by CTC prior to the Restructuring.
In December 2006, the Company issued 1,291,293,000 H shares with a par value of RMB1.00 each, at a price of
HKD2.20 per H share by way of an initial public offering (the “IPO”) to Hong Kong and overseas investors. In
connection with the IPO, 129,129,300 domestic state-owned shares of RMB1.00 each owned by CTC and its
subsidiaries were converted into H shares and transferred to the National Council for Social Security Fund of the PRC
(“SSF”). In December 2006, the Company also issued 193,693,000 H shares with a par value of RMB1.00 each, at a
price of HKD2.20 per H share upon the exercise of the over-allotment option. In connection with the exercise of the
over-allotment option, 19,369,300 domestic state owned shares of RMB1.00 each owned by CTC and its subsidiaries
were converted into H shares and transferred to SSF. In April 2008, the Company completed the placing of
326,696,000 H shares with a par value of RMB1.00 each at a price of RMB5.25 (the “Placing”). In connection with
the Placing, 32,669,600 domestic legal person shares of RMB1.00 each owned by SSF was converted into H shares.
On 8 February 2012, the Company issued 398,570,040 H shares on the basis of 2 H rights shares for every 10
existing H shares at a price of HKD3.19 per H rights share, and issued 755,766,360 domestic shares on the basis of 2
domestic rights shares for every 10 existing domestic shares at a price of RMB2.59 per domestic rights share. A total
of 2,391,420,240 H shares have been listed on The Stock Exchange of Hong Kong Limited (the “Stock Exchange”).
Pursuant to the acquisition agreement dated 15 June 2007, the Company acquired the telecommunications
infrastructure services, business process outsourcing services and applications, content and other services located in
Jiangsu Province, Anhui Province, Jiangxi Province, Hunan Province, Guangxi Zhuang Autonomous Region,
Chongqing Municipality, Sichuan Province, Guizhou Province, Yunnan Province, Shaanxi Province, Gansu Province,
Qinghai Province and Xinjiang Uygur Autonomous Region, together with the equity interests in Guangdong Nanfang
Communication GSM Intelligent Card System Co., Ltd and Ningbo Public Information Industry Co., Ltd (the “Target
Business”) from CTC. Such acquisition was completed on 31 August 2007.
