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China Communications Services Corporation Limited Annual Report 2015
CHAIRMAN’S STATEMENT
The Group has expanded into the two new markets in a steady yet optimized manner. Revenue from domestic non-operator
market for the year recorded a year-on-year growth of 3.0%, and accounted for 28.3% of total revenues. Among that, revenue
from key businesses
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exceeded RMB10 billion, representing a double-digit growth and accounted for more than 50% of the
revenue from domestic non-operator market. Meanwhile, the Group took the initiative to reallocate its resources in overseas
market and continued to optimize business structure, in pursuit of steady development in overseas market. Revenue from
overseas market accounted for 4.0% of total revenues. The Group also utilized various financial instruments, such as accounts
receivable factoring and forward foreign exchange rate lock-in to hedge against overseas funding and exchange rate risk. The
Group closely monitored opportunities from national “One Belt, One Road” Initiative, proactively mapped out a plan for overseas
development, initiated and promoted its “China-Africa Partnership Program in Trans Africa Information Superhighway” Project,
which has become a key Sino-foreign cooperative project supported by the PRC government.
DEEPENING REFORM
In 2015, the Group kept making new attempts in organizational optimization, professional integration and mixed ownership
scheme reform to enhance vitality and capability, so as to adapt to the changing demands of markets and customers. The Group
set up Inner Mongolia Autonomous Region Communications Services Company Limited to further enhance its marketing and
delivery capability in the domestic telecommunications operator market in northern China. The Group established the sales and
marketing mechanism for domestic non-operator market which further enhanced its capability in market expansion. In 2015, the
Group received the “5A” logistics qualification certificate, being the only enterprise in the domestic telecommunications industry
which has obtained such certificate, and set up and operated China Comservice Supply Chain Management Company Ltd.,
which represented a promising start for the synergistic operation of high value business. The Group has fostered internal mixed
ownership scheme reform and proactively explored the practicability of the establishment of joint ventures as a non-controlling
shareholder, project-based operation and start-up businesses by way of team work. Meanwhile, the Group incentivized and
retained core employees by setting up a remuneration allocation system with reference to prevailing market rates.
FULFILLING SOCIAL RESPONSIBILITIES
In 2015, the Group attached much importance to fulfilling its social responsibilities. After the natural disasters occurred in Tibet,
Zhejiang, Fujian and other places, the Group proactively assisted local telecommunications operator customers and promptly
repaired and restored communications lines to ensure a smooth communications network. Further to our own reduction of
integrated energy consumption, we strengthened our energy consumption control, continuously promoted energy saving
products and services, and assisted the domestic telecommunications operator customers to dispose redundant and obsolete
assets for cost saving. The Group cares about its employees and procured additional production equipment and daily necessities
for front-line employees, with a view to effectively resolve practical problems encountered by the employees and improve the
work environment of front-line production.
STRENGTHENING CORPORATE GOVERNANCE
The Group has placed great emphasis on maintaining sound corporate governance standard, attached much importance to risk
management and continuously enhanced its transparency. We continue to improve our systems and procedures, strengthen
internal review so as to enhance fundamental management, and upgrade the IT system to enhance operation efficiency. At the
same time, we make use of the regular communication mechanism of the Board to proactively listen to and adopt the advice and
recommendations from the independent non-executive directors, so as to enhance the management of the Group.
Mr. Si Furong, our President, was honoured the “Leadership 100 Awards in 2015” by
International Finance Magazine,
a British
financial magazine. Ms. Hou Rui, our Chief Financial Officer, received the “Best CFO” award in the 5th Asian Excellence
Recognition Awards 2015 by
Corporate Governance Asia
, an authoritative journal on corporate governance in Asia.
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Key businesses of domestic non-operator market are Telecommunications Infrastructure Services, key businesses within the Business Process Outsourcing
Services (including network maintenance, general facilities management and supply chain services of distribution business), and Applications, Content and
Other Services.
