China Communications Services Corporation Limited
Investor Relations
Financial Summary

(Amounts in thousands) For the years ended 31 December
2009
RMB
2008
RMB

(Note 1&2)
2007
RMB

(Note 1&2)
2006
RMB

(Note 1&2)
2005
RMB

(Note 1&2)
Results  
   
  Revenue from
  telecommunications
  infrastructure services
19,289,579 15,329,464 11,093,007 10,941,175 10,450,989
  Revenue from
  business process
  outsourcing services
15,943,326 13,743,789 9,695,630 6,787,975 5,752,231
  Revenue from applications,
  content and others
4,266,545 3,932,119 3,251,874 2,448,019 2,412,772
Total revenues 39,499,450 33,005,372 24,040,511 20,177,169 18,616,132
   
  Depreciation and amortization (351,402) (336,629) (307,149) (328,393) (306,074)
  Direct personnel costs (7,073,351) (5,962,414) (4,600,240) (3,975,421) (3,476,979)
  Purchase of materials and
  telecommunications products
(12,364,499) (11,167,207) (7,933,192) (6,420,470) (6,225,594)
  Subcontracting charges (9,064,577) (6,970,705) (4,580,668) (3,583,645) (2,784,981)
  Operating lease charges and
  others
(4,273,684) (3,195,413) (2,428,831) (2,235,047) (2,055,029)
Cost of revenues (33,127,513) (27,632,368) (19,910,080) (16,542,976) (14,848,657)
Gross profit 6,371,937 5,373,004 4,130,431 3,634,193 3,767,475
   
Other operating income 520,810 524,353 465,396 321,775 203,302
Selling, general and administrative expenses (4,691,507) (3,905,116) (2,843,607) (2,528,507) (2,762,015)
Other operating expenses (76,782) (70,749) (39,336) (37,009) (33,793)
Deficit on revaluation of property, plant and equipment - - (388) (135,626) -
Finance costs (88,435) (176,334) (56,086) (30,928) (22,446)
Share of profits less (losses) of associates 1,571 2,161 3,575 (14) 14,676
Negative goodwill - - - 4,039 159,499
Profit before tax 2,037,594 1,747,319 1,659,985 1,227,920 1,326,698
Income tax (427,356) (403,675) (462,930) (375,904) (349,292)
Profit for the year 1,610,238 1,343,644 1,197,055 852,016 977,406
 
Attributable to:          
  Equity shareholders/owner 1,598,589 1,326,770 1,181,108 829,288 769,162
  Minority interests 11,649 16,874 15,947 22,728 208,244
Profit for the year 1,610,238 1,343,644 1,197,055 852,016 977,406
Basic and diluted earnings per share (RMB) 0.277 0.233 0.217 0.204 0.194

(Amounts in thousands) As at 31 December
2009
RMB
2008
RMB

(Note 1)
2007
RMB

(Note 1)
2006
RMB

(Note 1)
2005
RMB

(Note 1)
Financial condition          
Property, plant and equipment, net 3,912,721 3,642,735 3,381,792 3,007,364 3,330,232
Other non-current assets 1,950,723 1,988,406 1,740,261 1,228,466 1,966,025
Inventories 1,659,626 1,182,471 1,042,854 995,167 669,845
Accounts and bills receivable, net 10,467,689 9,330,772 6,826,220 5,949,868 5,209,012
Prepayments and other current assets 3,140,398 2,975,964 2,253,543 2,181,501 2,906,361
Cash and cash equivalents 8,870,424 8,538,142 6,769,323 8,262,305 5,033,287
Restricted deposits 160,525 178,312 251,129 - -
Total assets 30,162,106 27,836,802 22,265,122 21,624,671 19,114,762
 
Interest-bearing borrowings 1,268,280 1,993,426 2,593,256 157,700 302,547
Accounts and bills payable 8,844,718 7,746,786 4,837,946 4,278,768 3,158,142
Receipts in advance for contract work 1,088,327 808,197 520,725 680,048 1,067,701
Accrued expenses and other payables 5,553,079 4,826,825 4,318,266 3,756,661 4,019,396
Income tax payable 194,701 186,525 200,213 224,426 495,685
Non-current liabilities 35,769 31,453 12,601 31,473 12,000
Total liabilities 16,984,874 15,593,212 12,483,007 9,129,076 9,055,471
 
Equity attributable to equity holders of the Company 13,068,686 12,086,861 9,704,685 12,348,886 9,378,818
Minority interests 108,546 156,729 77,430 146,709 680,473
Total equity 13,177,232 12,243,590 9,782,115 12,495,595 10,059,291
 
Total liabilities and equity 30,162,106 27,836,802 22,265,122 21,624,671 19,114,762

Notes:
(1)  On 26 May 2009, the Group acquired Shanghai Tongmao Import & Export Co., Ltd and Guoxin Lucent Technologies Network Technologies Co., Ltd (collectively the "Target Interests") from CTC. Since the Group and the Target Interests are under common control of CTC, the Target Interests have been accounted for as a combination of entities under common control in manner similar to pooling-of-interests. Accordingly, the assets and liabilities of the Target Interests have been accounted for at historical costs and the consolidated financial statements of the Company prior to the acquisition of the Target Interests have been restated to include the results of operations and assets and liabilities of the Target Interests on a combined basis. Our financial summary of 2005, 2006, 2007 and 2008 have been restated to include the results and financial condition of the Target Interests in the relevant period.
 
(2)  As a result of the application of IAS 1 (revised 2007), presentation of financial statement, certain comparative figures have been adjusted to conform to current year's presentation and to provide comparative amounts in respect of items disclosed for the first time in 2009.