15
China Communications Services Corporation Limited Annual Report 2015
PRESIDENT’S STATEMENT
CUSTOMER DEVELOPMENT
In 2015, revenue from the domestic telecommunications operator customers amounted to RMB54,793 million, representing a
year-on-year growth of 16.3% and accounted for 67.7% of the total revenues. Among that, the revenue from China Telecom
was RMB39,130 million, representing a year-on-year growth of 22.5% and accounted for 48.3% of the total revenues. The
Group’s enlarged market share, its active expansion into the OPEX-driven business of domestic telecommunications operators
and the revenue contribution from the Tower Company alleviated the impact of the decline in the network construction
investment by certain operator customer. The revenue from operator customers other than China Telecom amounted to
RMB15,663 million, representing a year-on-year growth of 3.3% and accounted for 19.4% of the total revenues.
In 2015, the revenue from the Group’s domestic non-operator customers amounted to RMB22,942 million, representing a year-
on-year growth of 3.0% and accounted for 28.3% of the total revenues. With a focus on key sectors such as government,
transportation, internet and information technology, construction and property as well as electricity, the Group intensified its
efforts in promoting the six major group-level products, such as the construction of data centres for a renowned PRC insurance
company and other organizations, as well as turnkey projects on the informatization solution for Tangshan World Horticultural
Exposition and other events. The Group cooperated with a top-tier domestic smart surveillance equipment provider and
undertook 56 “smart security” projects with a total amount of RMB0.56 billion. We captured the business opportunities arising
from the pioneer businesses and won the tender of a quantum communication demonstrative project with an amount of RMB50
million. We successfully provided overall network planning, restructuring, system commissioning and communications security for
the communications network of the “Second World Internet Conference” held in Wuzhen, and received high recognition from
the PRC government and operator customers.
In 2015, the revenue from the Group’s overseas customers amounted to RMB3,225 million, representing a year-on-year decrease
of 14.9% and accounted for 4.0% of the total revenues. We proactively reallocated our resources in overseas market, continued
to optimize business structure of overseas market, and further increased the proportion of overseas revenue generated from
turnkey projects. We closely monitored the national “One Belt, One Road” Initiative and the “10 Major Plans of Sino-African
Cooperation”, initiated and promoted the “China-Africa Partnership Program in Trans Africa Information Superhighway” Project
to become a key Sino-foreign cooperative project supported by the PRC government, which offered a new opportunity for
breakthrough in scale development in overseas business.
MANAGEMENT INNOVATION
In 2015, the Group continued to facilitate its development through effective management, and optimize resources allocation to
enhance efficiency. We set up an innovation fund and a development fund for business expansion in the domestic non-operator
market, with a view to allocate resources to businesses with high efficiency and cultivate new growth drivers for the Group. After
the establishment of its supply chain management company, the Group actively explored professional integration among
businesses including design, facilities management and proprietary distribution, and promoted synergistic operation of business
and standardized services. We adopted various financial instruments in our conventional businesses, including accounts receivable
factoring and supply chain financing, so as to accelerate the settlement of accounts receivable. We commenced our internal
credit rating system, fully leveraged on our own funding pool for the allocation and utilization of funds, and promoted the
efficiency of utilization of funds.
