51
China Communications Services Corporation Limited Annual Report 2015
REPORT OF THE DIRECTORS
CONTINUING CONNECTED TRANSACTIONS
Pursuant to Chapter 14A of the Listing Rules, the transactions between the Group and China Telecom and its subsidiaries
(excluding the Group and including China Telecom Corporation Limited, collectively the “China Telecom Group”) constitute
connected transactions of the Group.
The Company revised the annual caps of engineering related services provided to China Telecom Group and operation support
services provided by China Telecom Group in 2015, which were approved by the independent shareholders of the Company at
the extraordinary general meeting held on 11 December 2015. The following table sets out the annual caps and actual amounts
of the continuing connected transactions of the Group during the year ended 31 December 2015:
Unit: RMB million
Year ended
31 December 2015
Year ending
31 December
2016
Year ending
31 December
2017
Year ending
31 December
2018
Annual Caps Actual Amounts Annual Caps Annual Caps Annual Caps
Engineering related services provided
to China Telecom Group
24,000
20,829
24,000
24,000
24,000
Ancillary telecommunications services
provided to China Telecom Group
11,000
8,448
12,100
13,300
15,600
Operations support service provided
to/by China Telecom Group
Revenue
3,000
2,411
3,200
3,400
3,600
Expenditure
800
650
900
1,000
1,100
IT application services provided
to/by China Telecom Group
Revenue
2,300
2,056
2,500
2,700
2,900
Expenditure
490
303
490
490
490
Centralized services provided
to China Telecom Group
420
297
430
440
450
Property leasing provided
to/by China Telecom Group
Revenue
166
109
200
210
220
Expenditure
180
169
200
220
240
Supplies procurement services provided
to/by China Telecom Group
Revenue
5,600
5,277
6,700
8,100
10,000
Expenditure
4,100
2,736
4,900
5,900
7,000
