China Comservice profit up 16% to CNY1bn

The company is capitalizing on opportunities brought about waves of informatization.

China Communications Services Corporation Limited (“China Comservice”), on Tuesday announced its unaudited interim results for the six months ended 30 June 2011.

In the first half of 2011, the Company recorded a stable and relatively rapid growth of revenues, which amounted to RMB25,189 million, representing an increase of 16.0% over the same period last year. Cost of revenues amounted to RMB21,241 million, representing an increase of 15.7% over the same period last year. Gross profit grew by 17.3% over the same period last year to RMB3,948 million. The Company persisted in optimizing revenue structure and therefore our high-value businesses recorded faster growth rate than the Company’s average. Meanwhile, the Company also enhanced cost management, as a result of these, the Company managed to improve its gross profit margin to 15.7%, slightly higher than the same period last year. Profit attributable to equity shareholders of the Company grew by 16.3% over the same period last year to RMB1,053 million. Basic earnings per share were RMB0.182, representing an increase of 16.3%, according to a China Comservice report.

Mr. Li Ping, Chairman of China Comservice commented, “In the first half of 2011, China’s economy continued to develop favourably. Driven by the waves of informatization, domestic telecommunications operators accelerated their pace of transformation and development, and progressively increased their investment in information network infrastructures. In this situation, the Company firmly captured the industrial development opportunities, and adhered to its customer-focused innovative service strategy. As a result, our operating results steadily increased and our revenue structure achieved continued optimization, thus laying a solid foundation to realize our strategic goal of becoming a “hundred-billion enterprise” with excellent performance.”

Looking forward, Mr. Li Ping said, “With the ever advancing information communications technologies, the rapid development of 3G applications, optical-fiber broadband networks, mobile Internet and 4G/LTE has pushed the information industry into a new era of strategic opportunities, and domestic telecommunications operators will continue to invest in information network infrastructures. Accelerated informatization process in government and industry sectors, the ongoing developments in Three Networks Convergence, and the strong demand for telecommunications services from overseas emerging markets, will enable the Company to expand into broader markets beyond the domestic telecommunications operator market. In addition, there are industrial opportunities underlying the rapid development of new technologies, such as cloud computing and Internet of Things, which will be further explored by us. Based on our strategic position as a leader of producer services in the informatization sector, the Company will endeavor to support the full-service operations of domestic telecommunications operators, put more efforts into the expansion of domestic non-operator customers, and drive our scalable development in overseas markets so as to build an enterprise with excellent performance, which has strong capabilities in capturing market opportunities, outstanding core competencies, an integrated efficient operation and steady value growth.”