" />
English | 简体中文 | 繁體中文 | 한국어 | 日本語
Thursday, 31 March 2016, 18:34 HKT/SGT
Share:
    

Source: China Communications Services Corp Ltd
China Comservice Announces 2015 Annual Results
Diversification supported synchronous growth of revenue and profit;
Free cash flow reached historical high;
Special dividend proposed for 2015

HONG KONG, Mar 31, 2016 - (ACN Newswire) - China Communications Services Corporation Limited ("China Comservice" or the "Company"), and its subsidiaries (the "Group") (HKSE code: 552), today announced its audited annual results for the year ended 31 December 2015.

HIGHLIGHTS:
- Overall operating results achieved remarkable enhancement, with accelerated growth in total revenues and profit, and significant increase in free cash flow.
- Gross profit margin and net profit margin were 14.1% and 2.9%, respectively.
- The Board has proposed to pay a final dividend of RMB0.1011 per share and a special dividend of RMB0.0101 per share for the financial year ended 31 December 2015. Total dividend for 2015 is RMB0.1112 per share, up by 19.4%.

Enhancement in Operating Performance
In 2015, the Group pursued development with full confidence and achieved scale development through value enhancement. Total revenues exceeded RMB80 billion and reached RMB80,960 million, representing a year-on-year growth of 10.6%. Profit attributable to equity shareholders of the Company amounted to RMB2,334 million, representing a year-on-year increase of 8.6%. Net profit margin was 2.9% which remained stable compared to the corresponding period of last year. In 2015, the basic earnings per share of the Group was RMB0.337.

The Group leveraged on its edge of integrated service capability, kept enhancing service quality and customer satisfaction, and effectively preserved value in its business. The overall gross profit margin in 2015 was 14.1%, indicating a moderate slowdown of the decrease in gross profit margin . Benefited from the economies of scale in business development and effective cost control, the selling, general and administrative expenses for the year accounted for 11.5% of total revenues, representing a year-on-year decrease of 0.5 percentage point.

The Company emphasized the "value-driven" appraisal principle and continued to enhance its effective management of accounts receivable, and the accounts receivable turnover days was 124 days, representing a year-on-year decrease of 8 days. The Group's free cash flow increased substantially to RMB3,573 million, representing a year-on-year increase of 328.8% and reached a historical high.

Increase in Dividend Distribution
The Board has proposed to distribute a final dividend of RMB0.1011 per share for the financial year ended 31 December 2015, representing a dividend payout ratio of 30%. Moreover, in view of the Group's outstanding operating results and free cash flow for the year and its confidence in future development, the Board has proposed to distribute a special dividend of RMB0.0101 per share for 2015. Taking into consideration the above factors, the Company's total dividend for 2015 is RMB0.1112 per share, representing a year-on-year growth of 19.4%.

Mr. Sun Kangmin, Chairman of the China Comservice commented: "In 2015, facing the complicated and ever-changing economic landscape, the Group upheld the management philosophy of "value-driven, seeking steady yet progressive growth and efficient development". We firmly captured the opportunities such as 4G network construction and optimization of the quality and speed of broadband in the domestic telecommunications operator market, continued to focus on the development of the two new markets - domestic non-operator market and overseas market, and achieved synchronous growth in revenue and profit with free cash flow increased substantially to a historical high, which shows a gradual enhancement in corporate value. In consideration of the outstanding performance of the Group, the Board has proposed to distribute a special dividend for 2015 to enhance shareholders' return."

Telecommunications Infrastructure Services
Revenue from Telecommunications Infrastructure Services (TIS) amounted to RMB39,209 million, representing a year-on-year growth of 15.3% and accounted for 48.4% of the total revenues. Among that, the revenue of TIS services from China Telecom recorded a rapid year-on-year growth of 33.7%. Besides, revenue of TIS services from domestic telecommunications operator customers other than China Telecom remained relatively stable as the Group innovated its traditional sales and marketing model, fully captured the new business opportunities from China Tower Corporation Limited (the "Tower Company") and the new cooperation relationship and tender model of domestic telecommunications operator customers and increased its market share. The Group also continued to expand the domestic non-operator market, and TIS revenue from such customers recorded a year-on-year increase of 12.9%

Business Process Outsourcing Services
Revenue from Business Process Outsourcing Services (BPO) amounted to RMB33,014 million, representing a year-on-year growth of 5.8% and accounted for 40.8% of the total revenues. The Group continued to optimize business structure and identified new drivers for future development while controlling the growth of businesses with low efficiency. The Group intensified its efforts in expanding network maintenance business and the revenue of such business grew by over 18% for two consecutive years. The Group leveraged on the opportunity of the establishment of China Comservice Supply Chain Management Ltd. to capitalize on the potential sub-business within the distribution business, and revenue from supply chain services recorded a year-on-year growth of 10.9%.

Applications, Content and Other Services
Revenue from Applications, Content and Other Services (ACO) amounted to RMB8,737 million, representing a year-on-year growth of 9.9% and accounted for 10.8% of the total revenues. The Group focused on customers' demand in informatization services and dedicated in the promotion of six major group-level products , and revenue from the key businesses under ACO services achieved a year-on-year growth of 9.5%. The Group took initiatives for innovation in the ACO segment and achieved breakthroughs in projects such as information security, e-commerce, big data and cloud computing, etc.

Continuous Growth Supported by Three Customer Groups
In 2015, the Group adhered to its diversification strategy in customer base, business scope and regional presence, continued to expand into new areas, optimize its business structure and enhance its quality of development.

The Group has leveraged on both "CAPEX and OPEX-driven" businesses as the dual growth drivers to accelerate the development of domestic telecommunications operator market. The Group captured the vital opportunities of LTE FDD license issuance, upgrade and capacity expansion of telecommunications backbone network, broadband end-to-end speed upgrade and realized a year-on-year revenue growth of 16.3% from domestic telecommunications operator customers , accounted for 67.7% of total revenues and represented an increase of 3.3 percentage points compared to the corresponding period of last year. Meanwhile, the Group reinforced its efforts in expanding the OPEX driven business, and its network maintenance revenue from domestic telecommunications operator customers increased by 17.9% year-on-year, which maintained a favourable growth trend and optimized the overall revenue structure. The Group fully capitalized on the preferential treatment and non-competition arrangements with the Tower Company and proactively undertook businesses from the Tower Company. The Tower Company was the second largest contributor to the Group's revenue increase among the overall incremental revenue from all customers (the largest contributor was China Telecom).

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 exceeded RMB10 billion, representing a double-digit growth and accounted for more than 50% of the revenue from domestic non-operator market. 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. The Group 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. The Group 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.

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.

Prospects
Mr. Sun Kangmin, Chairman of China Comservice said: "Although we are facing challenges arising from the slowdown in macro-economic growth, slow growth in the communications sector, decrease in service charges for certain services and changes in regulatory policies, future development is still promising. The PRC government is accelerating the supply-side structural reform which is going to unleash the benefits of reform gradually and bring new momentum for corporate development. The PRC government's initiatives of Cyberpower, Broadband China, Internet+, "One Belt, One Road" and Infrastructure Construction in New Form are offering enormous space for business development.

The Group will adhere to its existing strategies and build on the continuous success it has achieved in the diversification of its customer base, business scope and regional presence, and continue to explore new market space and cultivate new growth momentum. The Group will focus on the development of high value businesses and pursue scale development of the two new markets - domestic non-operator market and overseas market with the support of product and services innovation, and professional integration.

The Group will firmly leverage on the opportunities such as the construction and optimization of 4G network as well as the upgrade of broadband network, so as to lay a solid foundation for its operation. Meanwhile, we will focus on the operating expenditure of the domestic telecommunications operator customers and devote in the expansion in high value businesses such as integrated maintenance and logistics services, with a view to cultivate new growth momentum. We will leverage on the new cooperation relationship between the domestic telecommunications operator customers and capitalize on the preferential and non-competition arrangements with the Tower Company, strive to enhance our delivery capacity, service quality and service standard, so as to maintain existing competitive advantages and further enlarge our market share.

In respect of our domestic non-operator market, we will keep abreast of the pace of investment by the PRC government and focus on the informatization demand from customers in key sectors including government, transportation, electricity and construction. We will adhere to our "three-step" strategy, focus on opportunities of mobile internet, cloud computing, big data, internet of things and industrial internet of things, promote our six major group-level products and continue to acquire high value large turnkey projects. We will intensify our efforts in strengthening our marketing and collaboration mechanism to enhance our capability in market expansion and project delivery, and also pursue innovation in group-level products and external cooperation to enhance our market competitiveness.

The Group will focus on the informatization demands in regions such as Africa, the Middle East and South East Asia, and strengthen its cooperation with domestic telecommunications operators, "Going Abroad" state-owned enterprises, local governments and equipment vendors to embark on large scale "EPC+" projects. We will closely monitor the implementation of the "One Belt, One Road" Initiative and capture the opportunity arising from our "China-Africa Partnership Program in Trans Africa Information Superhighway" Project and accelerate our market expansion, with a view to excel and strengthen our overseas operation.

With the continuous efforts in cultivating new growth momentum, the Group will achieve continuous and stable development, and create greater value for its shareholders and customers."


Contact:
China Communications Services Corporation Limited
Investor Relations Department
Mr. Terence Chung
Ms. Callis Cheng
Tel: (852) 3699 0000
Fax: (852) 3699 0120
Email: ir@chinaccs.com.hk



Topic: Press release summary
Source: China Communications Services Corp Ltd

Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network


Copyright © 2024 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

 

China Communications Services Corp Ltd Related News
Aug 26, 2020 17:25 HKT/SGT
中国通信服务公布2020年中期业绩
Aug 26, 2020 17:24 HKT/SGT
中國通信服務公佈2020年中期業績
Mar 31, 2020 17:54 HKT/SGT
中国通信服务公布2019年全年业绩
Mar 31, 2020 17:52 HKT/SGT
中國通信服務公佈2019年全年業績
Mar 31, 2020 17:51 HKT/SGT
China Comservice Announces 2019 Annual Results
More news >>
Copyright © 2024 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 214 890 4418 | China: +86 181 2376 3721 | Hong Kong: +852 8192 4922 | Singapore: +65 6549 7068 | Tokyo: +81 3 6859 8575