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China Communications Services Corporation Limited Annual Report 2015
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS
OF OPERATIONS
The following table sets forth a breakdown of our total revenues for 2014 and 2015, together with their respective changes:
2015
2014
Percentage
RMB’000
RMB’000
Change
Telecommunications Infrastructure Services
Design services
7,638,658
6,664,097
14.6%
Construction services
28,783,754
24,875,087
15.7%
Project supervision and management services
2,786,855
2,468,893
12.9%
39,209,267
34,008,077
15.3%
Business Process Outsourcing Services
Management of infrastructure for information technology
(“Network Maintenance”)
9,755,886
8,146,213
19.8%
Distribution of telecommunications services
and products (“Distribution”)
19,489,410
19,599,256
–0.6%
General facilities management
3,768,734
3,469,954
8.6%
33,014,030
31,215,423
5.8%
Applications, Content and Other Services
System integration
3,916,704
3,574,294
9.6%
Software development and system support
1,493,757
1,447,777
3.2%
Value added services
1,497,005
1,285,250
16.5%
Others
1,829,183
1,645,431
11.2%
8,736,649
7,952,752
9.9%
Total
80,959,946
73,176,252
10.6%
Telecommunications Infrastructure Services
In 2015, the Group’s revenue from TIS services amounted to RMB39,209 million, representing an increase of 15.3% compared
to RMB34,008 million in 2014. TIS services were the primary source of revenue and accounted for 48.4% of our total revenues,
representing an increase of 1.9 percentage points from 46.5% in 2014. As to the customer structure of the TIS services, the
Group’s TIS revenue from the domestic telecommunications operator customers amounted to RMB31,624 million and accounted
for 80.7% of the total TIS revenues, representing an increase of 2.6 percentage points from the corresponding period of last
year. The aggregate TIS revenues from domestic non-operator customers and overseas customers amounted to RMB7,585 million
and accounted for 19.3% of the total TIS revenues, representing a decrease of 2.6 percentage points from the corresponding
period of last year.
In 2015, the Group firmly captured the opportunities arising from the domestic telecommunications operators’ 4G network
construction and upgrade on optic fiber broadband, the TIS revenue from domestic telecommunications operator customers
increased by 19.1% over 2014. The aggregate TIS revenues from domestic non-operator customers and overseas customers
increased by 1.7% over 2014, among which the TIS revenue from domestic non-operator customers recorded a year-on-year
growth of 12.9%, showing an increasing growth momentum.
