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China Communications Services Corporation Limited Annual Report 2015
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS
OF OPERATIONS
Business Process Outsourcing Services
In 2015, the Group’s revenue from BPO services amounted to RMB33,014 million, representing an increase of 5.8% compared
to RMB31,215 million in 2014. The revenue from BPO services accounted for 40.8% of the total revenues, representing a
decrease of 1.8 percentage points from 42.6% in 2014. As to the customer structure of BPO services, the Group’s BPO revenue
from the domestic telecommunications operator customers amounted to RMB18,699 million, representing an increase of 12.8%
compared to 2014, and accounted for 56.6% of the total BPO revenues, representing an increase of 3.5 percentage points from
the corresponding period of last year. The aggregate BPO revenues from domestic non-operator customers and overseas
customers amounted to RMB14,315 million, representing a decrease of 2.2% from 2014 and accounted for 43.4% of total BPO
revenues, representing a decrease of 3.5 percentage points from the corresponding period of last year.
In 2015, the Group’s revenue from Network Maintenance business amounted to RMB9,756 million, representing an increase of
19.8% compared to 2014. The Group focused and captured the opportunities arising from OPEX spending and continuous
maintenance outsourcing from domestic telecommunications operators, and therefore Network Maintenance business achieved
rapid growth of over 18% for two consecutive years and was the second largest contributor to total incremental revenues
among all businesses. Besides, the Group’s revenue from the Distribution business amounted to RMB19,489 million, representing
a decrease of 0.6% compared to 2014, which was mainly attributable to the Group’s principle of efficient development and
proactively controlled the development of certain Distribution business with low efficiency. However, key businesses among the
Distribution business, such as supply chain business, achieved favourable development with revenue amounted to RMB4,082
million, representing an increase of 10.9% compared to 2014. The Group’s revenue from general facilities management
amounted to RMB3,769 million, representing an increase of 8.6% compared to 2014, and maintaining favourable growth
momentum.
Applications, Content and Other Services
In 2015, the Group’s revenue from ACO services amounted to RMB8,737 million, representing an increase of 9.9% compared to
RMB7,953 million in 2014. The revenue from ACO services accounted for 10.8% of the total revenues, which basically remained
stable compared to 2014. As to the customer structure of ACO services, the Group’s ACO revenue from domestic
telecommunications operator customers amounted to RMB4,470 million and accounted for 51.2% of the total ACO revenues,
representing an increase of 1.0 percentage point from the corresponding period of last year. Aggregate ACO revenues from
domestic non-operator customers and overseas customers amounted to RMB4,267 million, and accounted for 48.8% of the total
ACO revenues, representing a decrease of 1.0 percentage point from the corresponding period of last year.
In 2015, the Group continued to pursue innovative development and proactively capitalized on the domestic opportunities of
“Internet +” and informatization construction. The Group has strengthened its resources integration and product development
and continued to promote competitive products and solutions focusing on key areas such as industrial applications, mobile
applications, cloud computing, big data and information securities. The Group’s ACO revenue from domestic telecommunications
operator customers increased by 12.1% over 2014, while aggregate ACO revenues from domestic non-operator customers and
overseas customers increased by 7.6% over 2014.
