Hot Topics
Q.1. What was the latest operating performance of the Company?
In the first half of 2025, the rapid evolution of new-generation information technology and artificial intelligence technology has driven thousands of industries into a phase of intelligent transformation, profoundly reshaping social production and lifestyles. Positioning itself as a "New Generation Integrated Smart Service Provider", and fully leveraging its roles as the "Builder of Digital Infrastructure", "Provider of Smart Products and Platforms", "Provider of Industrial Digitalization Services", and "Guard of Smart Operation" (collectively referred to as the "Four Roles"), the Group persisted in upholding technological innovation as its guiding principle, enhancing its core competitiveness, vigorously expanding strategic emerging businesses and accelerating the cultivation of new quality productive forces, thereby firmly driving its high-quality development and maintaining stable growth in its operating performance.
Adhering to its overall roadmap of "value-driven, seeking steady yet progressive growth and high-quality development", the Group actively responded to the pressure from reduced capital expenditure by customers in the traditional sector, continuously advanced the transition from old growth drivers to new ones, and achieved steady growth in total revenues and net profit. In the first half of the year, the Group achieved total revenues of RMB76,939 million, representing a year-on-year increase of 3.4%. Among this, service revenue amounted to RMB74,981 million, representing a year-on-year increase of 2.9%. Gross profit reached RMB7,888 million, down by 2.8% year-on-year. The gross profit margin was 10.3%, down by 0.6 percentage point year-on-year. Net profit was RMB2,129 million, representing a year-on-year increase of 0.2%. The net profit margin was 2.8%, down by 0.1 percentage point year-on-year. Return on equity (ROE) was 9.3%. Basic earnings per share were RMB0.307.
Q.2. What would be the trend of the Company's gross profit margin going forward?
In the first half of 2025, the Group recorded gross profit of RMB7,888 million, representing a decrease of 2.8% over RMB8,116 million in the first half of 2024. The Group's gross profit margin in the first half of 2025 was 10.3%, representing a decrease of 0.6 percentage point from 10.9% in the first half of 2024. The change in gross profit margin was mainly due to factors such as the decline in capital expenditure of customers. While catering for the scale of its development, the Group focused more on improving quality and efficiency, guided its subsidiaries through appraisal to select and develop high-gross-profit projects to increase the proportion of high-value businesses. The Group continuously optimized its promotion mechanism for synergistic R&D operation as well as mechanism for results commercialization and consistently developed industry-leading flagship products to enhance its business values. At the same time, the Group consistently strengthened project management and cost control. With the Group's deepening deployment in areas of digital economy, new infrastructure construction and industrial digitalization, it is expected that the proportion of high-value businesses will gradually increase and thereby driving the trend of the Group's overall gross profit margin to improve.
Q.3. What were the results of the Company's cost-reduction and efficiency-enhancement initiatives?
In the first half of 2025, the cost of revenues of the Group amounted to RMB69,051 million, representing a year-on-year increase of 4.2%. Among which, direct personnel costs amounted to RMB3,707 million, representing a decrease of 2.6% from RMB3,808 million in the first half of 2024. The Group has always kept a reasonable control over its total headcount and continued to optimize the employee structure, resulting in a decline in direct personnel costs. Subcontracting charges amounted to RMB42,932 million, representing an increase of 4.1% from RMB41,233 million in the first half of 2024. The Group will further strengthen management over subcontracting and improve its self-sufficient delivery capability to maintain the growth rate of subcontracting charges at a relatively reasonable level. Materials costs amounted to RMB13,341 million, representing an increase of 8.1% from RMB12,337 million in the first half of 2024. The Group optimized its business model and undertook major projects under general contracting model proactively, thus driving up materials costs. The Group will continue to strengthen the management of general contracting projects and enhance materials cost control by improving its internal procurement system and further implementing centralized procurement.
The Group achieved notable results in controlling sales, general and administrative (SG&A) expenses. In the first half of 2025, the selling, general and administrative expenses of the Group were RMB6,182 million, representing a decrease of 5.5% from RMB6,542 million in the first half of 2024. The selling, general and administrative expenses of the Group accounted for 8.0% of the total revenues, representing a decrease of 0.8 percentage point over the same period of last year. The Group actively managed and controlled the selling, general and administrative expenses, and strictly implemented various measures to enhance quality and efficiency. At the same time, the Group allocated R&D resources precisely, focusing on cultivating relevant capabilities in AI and digital infrastructure, to ensure the effective R&D outcomes.
Benefiting from the Group's effective cost-reduction and efficiency-enhancement initiatives, the Group's operating profit (gross profit less SG&A expenses) for the first half of 2025 reached RMB1,706 million, representing an 8.4% year-on-year increase. It has sustained growth over the past two years, with its margin steadily improving.
Q.4. Will the rapid development of artificial intelligence in China boost the Company's business development? What are the Company's deployment plan in the field of artificial intelligence?
In the first half of 2025, the continuous development of the digital economy, coupled with the spillover effects of AI, drove the Company's steady growth. The accelerating adoption of AI applications and the expediting digital transformation across thousands of industries have driven the construction demand for data centers and intelligent computing centers, significantly boosting the Group's Telecommunications Infrastructure Services (TIS business) in the domestic non-operator market with the revenue growing by 18.5% year-on-year, supporting steady growth of overall revenue in TIS. On the other hand, they have driven the demand for high-end consulting and smart services, resulting in sustained relatively fast development in Application, Content and Other Services (ACO business), with the revenue growing by over 11% year-on-year, and its proportion to revenues reaching a new high of over 21%.
The Group comprehensively implemented the "AI+" initiative by leveraging its resource advantages to deploy businesses in AI across three key dimensions of integrated innovation, scenario specialization, and ecosystem collaboration, and strengthening its two major differentiated core competitiveness of full-stack AI service capabilities and AI product convergent innovation capability. Capitalizing on its AI delivery team of over 1,400 professionals, the Group provided its customers with tailored services, including intelligent computing infrastructure construction and operation, data governance, and R&D of scenario-based applications, establishing benchmark "AI+" application projects such as AI Intelligent Cabin, Data Center Energy-saving Monitor, Space-Air-Ground Integrated Monitoring Platform, Digital Intelligence AI Customer Service, and Digital Employees. In the first half of 2025, the value of new contracts signed in the field of artificial intelligence exceeded RMB1.3 billion, serving more than 200 customers.
Going forward, the Group will continue to center on customers' transformation and upgrading needs in digitalization, intelligentization, green and security. The Group will accelerate the development of products with core competitiveness empowered by AI, while persistently creating benchmark projects in digital intelligence.
Q.5. The Company maintained relatively rapid growth in strategic emerging businesses such as digital infrastructure (including data center, cloud service and 5G+), please provide details for the situation.
In the first half of 2025, the widespread and full-chain adoption of new-generation information technology accelerated, with digital intelligence and green technologies empowering the transformation and upgrading of traditional industries. The Group continued to deepen its development in strategic emerging industries such as digital infrastructure, green and low-carbon, smart city, as well as emergency management and security, focusing on key industries such as government, emergency management, healthcare, education, transportation, energy, as well as culture and tourism, with strategic emerging businesses maintaining rapid growth. In the first half of the year, the Company's total new contracts amounted to approximately RMB106 billion, of which, strategic emerging businesses accounted for over RMB42 billion, representing a year-on-year increase of over 10%. The proportion of strategic emerging businesses to total new contracts increased to over 40%, compared to over 35% last year, injecting new momentum into the Group's high-quality development.
In the field of digital infrastructure, the Group seized opportunities in the computing power market driven by AI technology transformation and promoted the evolution and upgrading of new information infrastructure. Leveraging its full-process, full-profession integrated general contracting capabilities spanning consulting and design, integration and construction, operation, maintenance, and management, as well as its "Technology + Scenario + Ecosystem" integrated service advantages, the Group undertook projects such as intelligent computing center construction, data center retrofits, cloud platforms, and 5G+ in multiple domestic and international regions. The Group deeply developed customers in sectors such as government, Internet, finance, and energy by providing intelligent, agile, green energy-saving, secure, and controllable integrated digital infrastructure construction and service support, contributing to the development of a national integrated computing power system and laying a digital-intelligent foundation for new quality productive forces. In the first half of the year, the value of new contracts signed in this field maintained rapid growth.
In the field of green and low-carbon, the Group actively engaged in green and low-carbon-oriented new industries, new business formats, and new models, addressing the green operations needs of sectors such as energy and electricity, industrial manufacturing, transportation, real estate and construction, and information and communications. By strengthening the R&D of key technologies and promoting applications, the Group adopted the dual growth model of "green energy + energy-saving technologies" and developed a series of benchmark projects such as low-carbon intelligent computing centers, 5G green base stations, green and low-carbon industrial parks, and virtual power plant platforms, driving comprehensive green transformation of economic and social development. The Group also participated in formulating China's first national standard for green data center evaluation, Assessment of Green Data Centers, showcasing its cutting-edge technology and expertise as well as industry influence in this field.
In the field of smart city, with the ongoing urban renewal initiatives, the Group seized opportunities arising from new urban infrastructure construction by leveraging its "Planning + Design + Implementation + Delivery + Operation" full-chain service capabilities and capitalizing on its specialized and localized teams at the provincial, municipal, and county levels. The Group facilitated cross-sector and cross-regional development, deeply integrated digital technologies including artificial intelligence, IoT and big data to create a new model of livable, resilient, and smart city. In the first half of the year, the value of new contracts signed in digital government, smart education, smart water conservancy, smart culture and tourism, smart healthcare, and enterprise digital transformation all achieved relatively fast growth. The Group's general contracting project, the Xinyu River Digital Twin Project, was featured on programs such as CCTV's Xinwen Lianbo. Besides, the Group's water conservancy information automation project on the southern edge of the Taklamakan Desert established a "space-air-ground integrated" modern smart irrigation benchmark.
In the field of emergency management and security, the Group supported the building of modern emergency management systems and safeguarded customers' network and information security, reinforcing the foundation of social security development. In the field of emergency management, leveraging its advantages in cutting-edge digital technologies and utilizing AI-powered large models, the Group empowered industry applications and assisted customers in key sectors such as mining, chemical, water conservancy, and firefighting in realizing intelligent transformation of emergency management to enhance capabilities in disaster prevention, mitigation and relief, as well as emergency command and communications under extreme conditions. In the field of network and information security, the Group developed multiple proprietary and controllable network and information security products. Leveraging its integrated "informatization + security" capabilities, the Group consistently undertook major national cybersecurity projects, providing customers with integrated security services encompassing cybersecurity planning and design, implementation, integration, delivery, and operation and maintenance, effectively enhancing customers' cybersecurity level.
Q.6. What kind of businesses drove the relatively fast growth of the Company's domestic non-telecom operator market?
The Group kept pace with customer needs, and achieved double-digit growth in the domestic non-telecom operator ("domestic non-operator") market. The Group actively served key industry customers in sectors such as energy, transportation, education, finance, as well as culture and tourism, addressing their development needs in digitalization, intelligentization, green development, and security enhancement. Leveraging its advantages of "Consultant + Staff + Housekeeper" service model and its "Platform + Software + Service" capabilities, the Group continuously upgraded its integrated and full-process service capabilities that incorporate cloud, artificial intelligence, security, and platform, and developed benchmark products and solutions to actively empower industries with capabilities and intelligence. At the same time, the Group seized opportunities brought by customers' increased construction in computing power infrastructure, driving the rapid development of infrastructure-related businesses. In the first half of 2025, revenue from domestic non-operator market amounted to RMB36,585 million, representing a year-on-year increase of 12.9%, providing strong support for the Group's steady overall revenue growth.
In the first half of the year, new contracts in the domestic non-operator market exceeded RMB46 billion, in which strategic emerging businesses grew by over 8%; in particular, the sectors of digital infrastructure and smart city showed relatively fast growth. Regarding the major projects with contract value over RMB100 million each secured in the first half of the year, the proportion of digital infrastructure increased notably compared to last year, and the Group also undertook several benchmark projects across various industries and sectors in smart city.
Q.7. Amid the continuous and obvious decline in CAPEX of domestic telecommunications operators, what strategies did the Company adopt to stabilize revenue in domestic telecommunications operator market?
The Group integrated into customer ecosystems, resulting in resilience in the domestic telecommunications operator market. Facing challenges from the continuous decline in capital expenditure by customers, the Group adhered to its "CAPEX + OPEX + Smart Applications" development strategy, consolidated the foundation of traditional businesses through high-quality project delivery while focusing on the transformation needs of operator customers, driving diversified development from traditional businesses into strategic emerging businesses. The Group deepened strategic collaborations in computing power network construction, green data center upgrades, smart city, and emergency management and security, building a symbiotic and win-win ecosystem. In the first half of 2025, the Group strived to increase its market share among operators, supported them in developing industrial digitalization business, and effectively mitigated the pressure from declining capital expenditure by customers. Revenue from this market amounted to RMB38,203 million, representing a year-on-year decrease of 4.6%.
In the first half of the year, new contracts in the domestic telecommunications operator market exceeded RMB56.5 billion, in which strategic emerging businesses grew by over 8%; in particular, the sectors of smart city as well as emergency management and security achieved relatively fast growth. While stabilizing its traditional businesses, the Group will accelerate the expansion of strategic emerging businesses, to ensure the stability of fundamentals in the domestic operator market.
Q.8. How was the Company's development in overseas market? And what is the Company's outlook in the development of the overseas market?
The Group advanced transformation and upgrading to maintain favorable growth momentum in the overseas market. The Group aligned itself with the "Belt and Road" construction efforts, actively developed high-quality regions, and continuously explored high-value projects. While enhancing the quality of traditional communications businesses, the Group expanded into new areas such as industrial digitalization and new energy services, gradually establishing a multitier, full-industry-chain overseas ecosystem. The Group successfully secured several largescale EPC general contracting projects in regions such as Asia Pacific and the Middle East. In the first half of 2025, revenue from the overseas market amounted to RMB2,151 million, representing a year-on-year increase of 8.7%.
The Group will persist in its overseas market expansion strategy and accelerate the penetration and deployment in the market. Through the transformation of business model, enhancement of collaboration capabilities, and co-construction of ecosystem across the industrial chain, the Group will advance its overseas business development in a proactive yet prudent manner by coordinating high-quality development with high-level security.
Q.9. What were the Company's performance in businesses of TIS, BPO and ACO?
In the first half of 2025, all three major business segments of the Group maintained positive momentum. Revenue from telecommunications infrastructure ("TIS") services amounted to RMB38,272 million, representing a year-on-year increase of 1.6%, accounting for 49.7% of total revenues. Revenue from business process outsourcing ("BPO") services reached RMB22,383 million, representing a year-on-year increase of 1.0%, accounting for 29.1% of total revenues. By keeping pace with the wave of societal digital intelligence, grasping opportunities from the continuous proliferation of AI application scenarios and the accelerating digital transformation across thousands of industries, the Group continued to strengthen its software development and digital service capabilities, sustaining relatively fast growth of revenue from applications, content and other ("ACO") services. In the first half of the year, ACO revenue amounted to RMB16,284 million, representing a year-on-year increase of 11.7%, with its proportion of total revenues further increased to 21.2%. ACO services has been the core driver of revenue growth for several consecutive years. In the first half of the year, revenue from non-TIS business accounted for over half of total revenues.
With the deepened implementation of the Digital China strategy, the pace of digital information infrastructure construction has accelerated, driving the competition in digital construction area to evolve towards a higher level and greater refinement. The Group seized the opportunities arising from construction of domestic computing power networks, data centers, and intelligent computing centers, enhanced its integrated comprehensive smart service capabilities, and strived to overcome the impact of the reduced investments from customers, thereby maintaining revenue growth in TIS services. By further integrating its resources and promoting specialized operations, revenue from BPO services, which possess attributes such as strong customer loyalty and short cash conversion cycles, remained stable. By keeping pace with the wave of societal digital intelligence, grasping opportunities from the continuous proliferation of AI application scenarios and the accelerating digital transformation across thousands of industries, the Group continuously strengthened its software development and digital service capabilities, sustaining relatively rapid revenue growth in ACO services.
Q.10. Which areas did the Company invest research and development in? What were the results?
In the first half of 2025, industrial transformation driven by the rapid development of artificial intelligence and the strong momentum of the digital economy brought new achievements in innovation-led high-quality development. Targeting frontier sectors, the Group strengthened technological innovation, consolidated R&D resources, built differentiated core competitiveness, and deepened industrial collaboration, thereby fostering a deep integration between technological and industrial innovation to better cultivate new quality productive forces. The Group has always adhered to the principle that technological innovation being the primary productive force. In the first half of the year, the Group further advanced the consolidation of R&D funding and improved R&D efficiency, with R&D investment reaching RMB2.2 billion. The Group accelerated the building of a "technology innovation + market" dual-driven product supply system, developing nearly 100 smart products and several outstanding comprehensive solutions. Furthermore, the Group continued to strengthen the cultivation of expert talents, having over 10,000 outstanding technological innovation professionals in its team.
The Group remained committed to pursuing self-reliant technological innovation, focusing on core sectors to increase R&D investments, and developed a technological innovation product portfolio of nearly 100 products utilizing emerging technologies such as artificial intelligence, security, and low-carbon. The Group developed proprietary core products and comprehensive solutions such as the Digital Government Integrated Platform, Smart Building Comprehensive Management System, Smart Grain Storage Platform, and Photovoltaic Storage Cloud Green Energy Comprehensive Management Platform. The Group accumulated more than 4,100 authorized patents and over 10,900 software copyrights, participated in the formulation of 48 national-level standards. The Group led the establishment of research institutions such as the provincial-level network and information security key laboratories, and received 20 national association and provincial- and ministerial-level science and technology awards, demonstrating recognition from both government and industry for its technological innovation capabilities.
The Group persistently deepened reforms in its technological innovation system to eliminate bottlenecks hindering the development of new quality productive forces. Adhering to a market-orientated approach, the Group continuously optimized its promotion mechanism for synergistic R&D operation and mechanism for results commercialization, improving the utilization efficiency of R&D resources. By intensifying efforts in developing cutting-edge technology fields that address urgent customer needs and possess substantial market potential, the Group consistently developed industry-leading flagship products, established product upgrade and iteration mechanisms, and strengthened full lifecycle management of technological innovation products. Furthermore, the Group refined mechanisms for cultivating, attracting, and selecting technological innovation experts, implementing multi-dimensional incentive approaches to stimulate vitality for innovative development.
Q.11. What was the dividend paid by the Company? What's the dividend policy of the Company?
The Group distributed a final dividend of RMB0.2187 per share for the financial year ended 31 December 2024, representing a dividend payout ratio of 42%. Please refer to "Dividend History" for the details.
The Company attaches great importance to the returns of shareholders. Taking into the consideration of the long-term interest and sustainable development of the Company, and with the support of the Group's profitability, the Company strives to maintain the continuity and stability of the dividend policy. The factors to be considered by the Company when formulating the dividend distribution plan are as follows:
1. Current and expected operating results and cash flow performance;
2. Future business development strategies and operating position, as well as future capital needs;
3. Daily working capital needs;
4. Expectations of shareholders and investors; and
5. Other factors that the Board deems appropriate.
Basic Information
Q.1. What kind of Company is China Comservice?
China Comservice ("China Communications Services Corporation Limited") is a leading service provider in the informatization sector in the PRC that positions itself as a "New Generation Integrated Smart Service Provider", leverages its strength as "Builder of Digital Infrastructure", "Provider of Smart Products and Platforms", "Provider of Industrial Digitalization Services", "Guard of Smart Operation" ("1 Positioning, 4 Roles"), the Group commits to "Building Smart Society, Boosting Digital Economy, Serving a Good Life". The Group provides integrated comprehensive smart solutions for the informatization and digitalization sectors. It is also the largest telecommunications infrastructure service provider in the PRC. Our services include telecommunications infrastructure services ("TIS") covering design, construction, and project supervision and management; business process outsourcing services ("BPO") covering network maintenance, property management, supply chain and products distribution; applications, content and other services ("ACO") covering system integration, software development and system support, value-added services and other services. (Please refer to "Corporate Profile" and "History" for more details)
Q.2. When was China Comservice listed?
The Company was listed on the Stock Exchange of Hong Kong on December 8, 2006. The offering price was HK$2.20 per share. (Please refer to "Share Information Overview" for more details)
Q.3. Who are the major shareholders of China Comservice?
China Telecommunications Corporation is our controlling shareholder which holds 3,393 million domestic shares, representing 48.99% of our total issued shares. In addition, China Mobile Communications Group Co., Ltd., China United Network Communications Group Company Limited, State Grid Information & Telecommunication Group Co., Ltd. and China National Postal and Telecommunications Appliances Co., Ltd. hold 608 million, 236 million, 166 million and 131 million domestic shares, representing 8.78%, 3.41%, 2.40% and 1.89% of total issued shares respectively. The public holding is 2,391 million H share, representing 34.53% of our total issued shares. (Please refer to "Shareholding Structure" for more details)
Q.4. Who are the major customers of China Comservice?
All major telecommunications operators in China, namely, China Telecommunications Corporation, China Mobile Communications Group Co., Ltd., China United Network Communications Group Company Limited, China Radio and Television Network Co., Ltd and China Tower Corporation Limited are our customers. We also provide services to domestic non-telecom operator (the "domestic non-operator") customers and overseas customers. In the first half of 2025, revenue from domestic telecommunications operator customers accounted for 49.7% of total revenues, revenue from domestic non-operator customers accounted for 47.5% of total revenues and revenue from overseas customers accounted for 2.8% of total revenues.
While further developing domestic telecommunications operator market, the Group has also endeavored to expand the domestic non-telecom operator market. The Group proactively provides services, such as smart city solutions, municipal infrastructure, intelligence building and data center construction, to key customers such as government agencies and customers in the industries of construction, Internet & IT, transportation, electricity, etc.
Other than China, the Group's business also covers dozens of countries and regions globally, and its overseas customers are mainly located in the emerging markets including Asia Pacific, the Middle East and Africa. (Please refer to "Our Business" for more details)
Q.5. What are the businesses under Telecommunications Infrastructure ("TIS") Services of the Company?
The Group is the largest telecommunications infrastructure service group in the PRC, providing a full range of telecommunications infrastructure services to telecommunications operators in China and overseas. These services include planning, design, construction and project supervision for fixed line, mobile, broadband networks and supporting systems. The Group also provides construction services of ancillary communications networks, integrated solutions for informatization and intelligentization solutions of industries to domestic non-operator customers such as government agencies, industrial customers and SMEs, as well as overseas customers. (Please refer to "Our Business" for more details)
Q.6. What are the businesses under Business Process Outsourcing ("BPO") Services of the Company?
The Group is the largest integrated provider of business process outsourcing services in the communications industry in China. The Company can provide customers with all-round quality outsourcing services including management of infrastructure for information technology ("network maintenance"), general facilities management ("property management"), supply chain and products distribution services. The target of our services includes domestic and overseas telecommunications operator customers, government agencies and enterprises customers. The Group focused on OPEX-driven business of domestic telecommunications operators, and strengthened the synergistic operation and brand building of OPEX-driven business. (Please refer to "Our Business" for more details)
Q.7. What are the businesses under Applications, Content and Other ("ACO") Services of the Company?
The Group provides information system integration and project implementation, industrial digitalization application and solutions, proprietary software and platform product development, digitalization business and IT system support as well as value-added services to customers including domestic and overseas telecommunications operators, government agencies and enterprise customers. (Please refer to "Our Business" for more details)
updated 10th October, 2025
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