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China Communications Services Corporation Limited Annual Report 2015
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS
OF OPERATIONS
OVERVIEW
In 2015, the Group upheld the management philosophy of “value-driven, seeking steady yet progressive growth and efficient
development”, firmly captured the opportunities in the domestic telecommunications operator market for 4G network
construction, optimization of broadband quality and speed, continued to focus on the two new markets — domestic non-
operator market and overseas market, and achieved synchronal growth in revenue and profit. Total revenues for the year
amounted to RMB80,960 million, representing an increase of 10.6% compared to 2014. Profit attributable to equity shareholders
of the Company was RMB2,334 million, representing an increase of 8.6% compared to RMB2,150 million in 2014. Basic earnings
per share were RMB0.337. Free cash flow amounted to RMB3,573 million, representing a substantial increase of 328.8% as
compared to RMB833 million in the corresponding period last year.
TOTAL REVENUES
The Group’s total revenues in 2015 amounted to RMB80,960 million, representing an increase of 10.6% compared to 2014.
Among our businesses, the revenue from telecommunications infrastructure (“TIS”) services was RMB39,209 million, representing
a year-on-year growth of 15.3%; the revenue from business process outsourcing (“BPO”) services was RMB33,014 million,
representing a year-on-year growth of 5.8%, the revenue from applications, content and other (“ACO”) services was RMB8,737
million, representing a year-on-year growth of 9.9%. As to business structure, construction services, management of
infrastructure for information technology (“Network Maintenance”) and design services were the three major businesses that
contributed to the Group’s overall incremental revenues. As to customer structure, the revenue from the domestic
telecommunications operators (including the Tower Company) in 2015 amounted to RMB54,793 million, representing a year-on-
year growth of 16.3% and accounted for 67.7% of the total revenues. The aggregate revenues from the domestic non-operator
customers and overseas customers amounted to RMB26,167 million, representing a year-on-year growth of 0.4%; accounted for
32.3% of the total revenues. In 2015, the Group adopted a market-oriented approach and allocated its resources adaptively to
capture the opportunities from both the CAPEX investment after the issuance of 4G licenses and OPEX-driven business in the
domestic telecommunications operator market. The Group achieved favourable business development in the domestic
telecommunications operator market and the incremental revenue from such market accounted for 98.6% of the total
incremental revenues, and this market was the major driving force of growth for the Group’s total revenues.
