China Communications Services Corp. Ltd. Class H · HKEX:552
China Communications Services Corp. Ltd. Class H — H1 2025 Earnings Presentation
38 slides from China Communications Services Corp. Ltd. Class H's earnings presentation, Aug 21, 2025
Slide 1: 2025 Interim Results
CHINA COMMUNICATIONS SERVICES CORPORATION LIMITED Stock Code : 00552.HK 2025 Interim Results 21 August 2025 www.chinaccs.com.hk
Slide 2: Management Present
Management Present EXECUTIVE DIRECTOR, MR. LUAN XIAOWEI CHAIRMAN EXECUTIVE DIRECTOR, MR. CUI ZHANWEI PRESIDENT EXECUTIVE VICE PRESIDENT MR. XU SHIGUANG EXECUTIVE DIRECTOR, MR. SHEN AQIANG EXECUTIVE VICE PRESIDENT & CFO EXECUTIVE VICE PRESIDENT MR. ZHANG HAO 2
Slide 3: Agenda
Agenda 01 02 03 Overview Business Financial Review Results 3
Slide 4: Overview Business Review
01 02 03 Overview Business Financial Review Results 4
Slide 5: Highlights
Highlights Demonstrating Resilience Amid Challenges and Realizing Steady Yet Improving Operating Results AI Showing Noticeable Spillover Effects and Driving the Company’s Business Development Persisting in Technological Innovation-driven Development and Integrating AI Technology with Innovation Cont
Slide 6: Results Overview (1): Realized Steady yet Improving Operating Results
Results Overview (1): Realized Steady yet Improving Operating Results Overcame External Challenges and Achieved Growth in Both Revenue and Net Profit Revenues Gross Profit Net Profit1 (RMB’M) (RMB’M) (RMB’M) +3.4% 9,000 2,500 +0.2% 74,412 76,939 8,116 -2.8% 14% 14% 8,000 7,888 2,125 2,129 2,000 12%
Slide 7: Results Overview (2): Steady Growth in Operating Profit
Results Overview (2): Steady Growth in Operating Profit Operating Profit Factors Affecting Net Profit Growth (Gross Profit-SG&A) (RMB’M) (RMB’M) +0.2% +360 -128 +8.4% 2,125 -228 2,129 1800 +6.3% 1,706 5.00 1600 1,574 4.50 1,481 1400 4.00 Factors including reduction in investment by major 3.50 custom
Slide 8: Results Overview (3): Digital Economy and AI Spillover Boosted Business Growth
Results Overview (3): the Continuous Development of Digital Economy, Coupled with Spillover Effects of AI, Boosted the Company’s Business Growth…… Domestic Non-operator Market Anchored the Overall Development, Applications and Content (ACO) Business Has Been the Core Driver of Revenue Growth for Sev
Slide 9: Increasing Demand for Data Center Construction Drove Business Growth
……Increasing Demand for Data Center Construction and Accelerating Digital Transformation of Industries Drove Business Growth Revenue from TIS Business +1.6% - 0.1% (RMB’M) 38,272 ⚫ AI drove increasing demand for data centers and 37,688 37,666 +7.9% intelligent computing centers, which significantly
Slide 10: Adhering to Technological Innovation to Drive High-quality Development
Adhering to Technological Innovation to Drive High-quality Development Results Commercialization of Continuously Incubating Technological Innovation Technological Innovation Technological Innovation Capabilities Recognized by Products Showed Results Results National and Industry Authorities ⚫ New co
Slide 11: Deploying in New Sectors: Integrating AI Technology with Innovation
Deploying in New Sectors: Integrating AI Technology with Innovation to Expedite the Building of a Technology-oriented Enterprise with Digital Intelligence Capabilities ◼ Developing AI Full-Stack Five Major Service Capabilities of “Industrial Policy Advisory, Full-Stack Infrastructure Construction an
Slide 12: Technological Innovation Strengthening High-quality Development Momentum
Technological Innovation Strengthening High-quality Development Momentum Focus on Key Sectors to Accelerate the Formation of New Quality Productive Forces New Contracts of Strategic Emerging Businesses in 1H2025 over RMB42 billion, increased by over 10% y-o-y Total New Contracts >2% (RMB’Bn) >108.
Slide 13: New Businesses (1): Digital Infrastructure
Cultivating and Boosting New Growth Momentum, Optimizing and Strengthening Development in New Businesses (1) Digital Infrastructure Opportunities Results Targets AI Drives Development from General Data Reinforcing our Position of National Main Force in Seized the AI Booming Opportunity, Digital In
Slide 14: New Businesses (2): Smart City
Cultivating and Boosting New Growth Momentum, Optimizing and Strengthening Development in New Businesses (2) Smart City Opportunities Results Targets Central Urban Work Conference Set the Smart City Business Development Sustained Strong Targeting to be a Domestic Leading Enterprise Development Dir
Slide 15: Prospects (1): Proactively Addressing Challenges, Seizing Market Opportunities
Prospects (1) : Proactively Addressing Challenges, Seizing Market Opportunities Adhere to the Strategic Positioning of “1 Positioning, 4 Roles1”, Proactively Adapt to Market Development Trend + + + Enhance Core Strengthen Risk Continuously Accelerate Corporate Competitiveness of the Prevention and C
Slide 16: Prospects (2): Optimizing Diversified Business Model and Customer Base
Prospects (2): Optimizing Diversified Business Model and Broadening Diversified Customer Base to Drive Sustained Development Future Initiatives Since its Listing, by Actively Expanding into New Sectors, New Markets, and Continuously Promoting Technological Innovation, the Company’s ⚫ Focusing on New
Slide 17: Overview Business Review
01 02 03 Overview Business Financial Review Results 17
Slide 18: Business Revenue Breakdown
Business Revenue Breakdown (RMB’M) 1H2024 1H2025 Change % % of Revenues TIS (Telecommunications Infrastructure Services) Design 5,013 4,244 -15.3% 5.5% Construction 30,577 31,921 4.4% 41.5% Supervision 2,076 2,107 1.5% 2.7% Subtotal 37,666 38,272 1.6% 49.7% BPO (Business Process Outsourcing Services
Slide 19: Overall Performance by Business and Market
Overall Performance by Business and Market By Business Revenue Structure By Market (RMB’ M) Became More Diversified, (RMB’ M) +3.4% Enhancing Development +3.4% 74,412 76,939 Resilience 74,412 76,939 1,979 +8.7% 2,151 14,583 +11.7% 16,284 Overseas Customer ACO Revenue from Non-TIS 32,409 +12.9% 36,58
Slide 20: Domestic Operator Market
Domestic Operator Market: Adhered to the Development Strategy of “CAPEX + OPEX + Smart Applications” Strived to Increase Market Share to Proactively Navigate the Impact of Reduced CAPEX Revenue (RMB’M) - 4.6% ⚫ Adhered to customer-oriented approach to serve customers’ new demands arising from transf
Slide 21: Domestic Non-Operator Market (1)
Domestic Non-Operator Market (1): Firmly Grasped New Business Opportunities Driven by AI Wave and National Policies Computing Power Infrastructure Construction and Empowerment of Industry Scenario Applications Drove Growth Revenue (RMB’M) +12.9% ⚫ The rapid development of AI as driver +1,147 36,585
Slide 22: Domestic Non-Operator Market (2): Focused on Key Industries
Domestic Non-Operator Market (2): Focused on Key Industries for Thorough Development Fully Leveraged the Edges of our Service Capability Covering the Three-tiers in Provinces, Municipals and Counties ⚫ Achieved solid business growth in key industries (including government, transportation, energy, ed
Slide 23: Overseas Market: Responded to the Belt and Road Initiative
Overseas Market: Actively Responded to the National “Belt and Road” Initiative While Consolidating the Foundation of Traditional Businesses, Steadily Expanded Overseas New Businesses such as Industrial Digitalization and New Energy Revenue ⚫ While strengthening overseas telecommunications infrastruc
Slide 24: Cultivating Successful Projects, Creating Value for Customers (1)
Cultivating Successful Projects, Creating Value for Customers (1) Digital Infrastructure, Smart City, Green and Low-carbon and Emergency Management and Security A FinTech Center Project of a Bank in Horinger Park Gas Pipeline Network Facilities Renovation Project in a District New Benchmark (RMB50+
Slide 25: Cultivating Successful Projects, Creating Value for Customers (2)
Cultivating Successful Projects, Creating Value for Customers (2) Digital Infrastructure, Smart City, Green and Low-carbon and Emergency Management and Security “Operation & Maintenance”, “Integration”, and “Integration + Source-Grid-Load-Storage Integration of “Virtual Power Plant” Operation & Main
Slide 26: Cultivating Successful Projects, Creating Value for Customers (3)
Cultivating Successful Projects, Creating Value for Customers (3) AI Typical Products and Benchmark Cases Showcase “Grain Query” Bot AI Intelligent Customer Service Platform ⚫ Focusing on LLM+SQL technology to solve user data analysis challenges, it automatically ⚫ Focusing on the deep integration o
Slide 27: Cultivating Successful Projects, Creating Value for Customers (4)
Cultivating Successful Projects, Creating Value for Customers (4) AI Typical Products and Benchmark Cases Showcase Energy-Saving Cloud Platform Youth Sports Intelligence System ⚫ Focusing on “expert algorithms + AI algorithms + big data models”, through global AI ⚫ Focusing on scenarios such as inte
Slide 28: Prospects: Vast Potential for Business Development
Prospects: Vast Potential for Business Development ⚫ Seizing Opportunities from Intelligent Transformation and Green Transformation Across Thousands of Industries Driven by Cutting-edge Digital Technologies, such as AI, Big Data, and Cloud Computing ⚫ Market Size over Trillion (RMB) for Each of the
Slide 29: Financial Results
01 02 03 Overview Business Financial Review Results 29
Slide 30: Key Financial Indicators
Key Financial Indicators (RMB’M, Except EPS) 1H2024 1H2025 Change % % of Revenues Revenues 74,412 76,939 3.4% 100% Cost of Revenues 66,296 69,051 4.2% 89.7% Direct Personnel Costs 3,808 3,707 -2.6% 4.8% Materials Costs 12,337 13,341 8.1% 17.3% Direct Costs of Products Distribution 1,098 1,561 42.1%
Slide 31: Promoted Cost Reduction and Efficiency Enhancement
Promoted Cost Reduction and Efficiency Enhancement to Increase Operating Efficiency Cost/Expense as a % Enhancing Input-Output Efficiency of Human Capital of Revenues ⚫ Optimized organizational structure and adjusted employee mix to enhance labor productivity Direct Personnel 5.1% -0.3pp 4.8% Costs
Slide 32: Implemented Multiple Measures to Stabilize Overall Efficiency
Implemented Multiple Measures to Stabilize Overall Efficiency Gross Profit Margin 10.9% 10.3% Addressing External Challenges Actively -0.6pp Enhancing Financial Value Management Net Profit Margin Remained Largely Stable Supporting Efficiency Enhancement Net Profit Margin ⚫ Prioritized resource alloc
Slide 33: Financial Position Remained Healthy
Financial Position Remained Healthy (RMB’M) 31.12.2024 30.6.2025 Total Assets 136,618 138,248 In which: Cash and Deposits1 38,110 29,400 Accounts Receivable and Contract Assets 63,064 72,148 Total Liabilities 90,004 90,598 In which: Accounts Payable and Contract Liabilities 75,085 74,725 Interest-be
Slide 34: Market Value Management
Market Value Management Enhancing the Company’s Investment Value, Aligning its Market Value with Intrinsic Value Formulating Market Value Enhancement Measures ⚫ Conscientiously Enhancing ⚫ Highly Valuing Shareholders’ Development Quality Return Value Enhancement ⚫ Intensifying Efforts in ⚫ Improving
Slide 35: Thank You!
Corporate Governance Asia “15th Asian Excellence Award” Extel (formerly Institutional Investor) “2025 Asia (ex-Japan/ANZ) Executive Team” rankings ⚫ Sustainable Asia Award Telecommunications Sector in both Mainland China and Small & Midcap ⚫ Best Investor Relations Company categories ⚫ Asia’s Best C
Slide 36: Appendix
Appendix Pia ta RH | (CHINA COMSERVICE 36
Slide 37: Business Revenue Breakdown – by Market
Business Revenue Breakdown – by Market (RMB’M) 1H2024 1H2025 Change Change % TIS (Telecommunications Infrastructure Services) Domestic Operator 20,313 17,866 -2,447 -12.0% Domestic Non-operator 15,933 18,874 2,941 18.5% Overseas Customer 1,420 1,532 112 7.9% Subtotal 37,666 38,272 606 1.6% BPO (Busi
Slide 38: Forward-looking Statement
Forward-looking Statement The Company would like to caution readers about the forward-looking nature of certain statements herein. These forward-looking statements are subject to risks, uncertainties and assumptions, which are beyond its control. Potential risks and uncertainties include those conce
China Communications Services — H1 2025 Earnings Presentation on 6ix