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China Communications Services Corporation Limited Annual Report 2015
BUSINESS OVERVIEW
The Distribution service of the Group includes telecommunications business marketing agency, basic logistics and value-added
logistics, sale of telecommunications equipment, retail and distribution of mobile terminals. The customers comprised
telecommunications operators, telecommunications equipment manufacturers, government agencies and SMEs. In 2015, the
Group received the “5A” logistics qualification certificate from China Federation of Logistic & Purchasing, being the only
enterprise in the domestic telecommunications industry which has obtained such certificate, and set up and operated China
Comservice Supply Chain Management Company Ltd. It indicated a promising start for the synergistic operation of high value
businesses and obtained relatively large market share from China Telecom’s “E surfing” terminals logistic distribution business. In
2015, the Group adhered to the principle of “efficient development” to expand its Distribution business and to control the
development of businesses with low efficiency. Revenue from Distribution business amounted to RMB19,489 million,
representing a year-on-year decrease of 0.6%. Nonetheless, revenue from supply chain service, being the key Distribution
businesses, achieved a growth of 10.9%.
The Group provides general facilities management services to domestic telecommunications operators and domestic non-operator
customers for their data centres, cloud computing centres, commercial buildings, high-end residential buildings, high-speed
railway stations and airports, including their property, equipment, assets and energy-saving management. The Group proactively
promoted intelligent building and smart community, and is proactively building up brands for its business. In 2015, revenue from
the general facilities management business of the Group was RMB3,769 million, representing a year-on-year growth of 8.6%.
The Group believes that the OPEX business of domestic telecommunications operators have enormous room and potential to
grow, whilst the domestic non-operator customers also have strong demands in business process outsourcing services. The
business process outsourcing business is characterized by high customer loyalty, low accounts receivable turnover days and good
cash flow. The Group will further focus its resources on key business sectors for professional operation to realize scale and
efficient development.
The Group’s logistics park and motorcade
