China Communications Services Corp. Ltd. Class H · HKEX:552
China Communications Services Corp. Ltd. Class H — FY2024 Earnings Presentation
40 slides from China Communications Services Corp. Ltd. Class H's earnings presentation, Mar 27, 2025
Slide 1: 2024 Annual Results
CHINA COMMUNICATIONS SERVICES CORPORATION LIMITED Stock Code : 00552.HK MOVE FORWARD WITH INNOVATION SUSTAIN LONGEVITY WITH QUALITY 2024 Annual Results 27 March 2025 www.chinaccs.com.hk
Slide 2: Management Present
Management Present EXECUTIVE DIRECTOR, MR. LUAN XIAOWEI CHAIRMAN EXECUTIVE DIRECTOR, MR. CUI ZHANWEI PRESIDENT EXECUTIVE DIRECTOR, MR. SHEN AQIANG EXECUTIVE VICE PRESIDENT & CFO EXECUTIVE VICE PRESIDENT MR. ZHANG HAO 2
Slide 3: Agenda
Agenda Overview Business Financial Review Results 3
Slide 4: Overview
Business Financial Overview Review Results
Slide 5: Highlights
Highlights Responding to Complex Situation Proactively and Realizing Steady Yet Improving Operating Results Deepening Quality and Efficiency Enhancement Measures to Firmly Promote High-Quality Development Achieving Favorable Results in Technological Innovation, Driving Overall Growth for Three Conse
Slide 6: Results Overview (1): Steady yet Improving Operating Results
Results Overview (1): Realized Steady yet Improving Operating Results and Firmly Promoted High-quality Development Achieved “Effective Improvement in Quality, Reasonable Growth in Quantity” New Contracts of Revenue Net Profit1 Free Cash Flow2 Strategic Emerging Businesses Gross Profit Margin (RMB’M)
Slide 7: Results Overview (2): Efficiency Indicators Improving Consistently
Results Overview (2): Focused on “Effective Improvement in Quality” with Efficiency Indicators Improving Consistently Continued to Deepen Various Measures to Improve Quality and Efficiency Gross Profit Margin Free Cash Flow Cash Conversion Ratio1 Increased Steadily for Three Sustained at a Relat
Slide 8: Results Overview (3): Operating Revenue Growing Steadily
Results Overview (3): Achieved “Reasonable Growth in Quantity” with Operating Revenue Growing Steadily Seized the Opportunities from Computing Power Infrastructure Construction, Digitalization, Intelligentization and Green Transformation of Society Revenue Growth – By Market Revenue Growth – By Busi
Slide 9: Results Overview (4): ACO Business Largest Contributor to Revenue Growth
Results Overview (4): ACO Business being the Largest Contributor to Overall Revenue Growth for Three Consecutive Years Technological Innovation Drove Rapid Development of Industrial Digitalization Business Revenue Contribution from ACO Business Has Been Increasing Steadily, Proportion to Total Rev
Slide 10: Sustaining High-level Technological Innovation (1)
Sustaining High-level Technological Innovation (1): Anchored in Strategic Emerging Industries with Outcomes of Technological Innovation Emerging Technological Innovation Capabilities Commercializing Technological Continuously Incubating Technological Recognized by National and Industry Innovation Re
Slide 11: Sustaining High-level Technological Innovation (2): Flagship Products
Sustaining High-level Technological Innovation (2): Developed Flagship Products and Promoted Commercialization of Results Providing domestic leading comprehensive information Developing multiple proprietary key technologies in energy services of “full-process consultation + products + Smart storage,
Slide 12: Strategic Emerging Businesses (1): Accelerating Business Expansion
Strategic Emerging Businesses (1): Accelerating Business Expansion to Fuel Future Growth Achieving Remarkable Results in Strategic Deployment, Strategic Emerging Businesses Has Become the Primary Growth Driver Total New Contracts Strategic Emerging Businesses (RMB’Bn) + >3% ⚫ New Contracts (RMB’Bn)
Slide 13: Strategic Emerging Businesses (2): Four Key Sectors
Strategic Emerging Businesses (2): Thoroughly Developing Four Key Sectors to Seize the Explosive Growth Opportunities in the Industrial Chain Driven by AI…… Leveraging our Competitive Advantages as a State-owned Enterprise and the Main Force in the Industry Green and Low-carbon Smart City Emergency
Slide 14: Focusing on Domestic AI Industrial Chain
…… Focusing on Domestic AI Industrial Chain and Accelerating China Comservice’s Strategic Deployment in AI Investment and Financing in Global AI Software Market Size China’s AI Core Industry Size China’s AI Sector USD97.0 Billion1 RMB600.0 Billion2 RMB22.8 Billion3 Upstream (Computing Infrastructure
Slide 15: Shareholders' Return Remained Stable with Enhancement
Shareholders’ Return Remained Stable with Enhancement Total Dividend Payout Ratio The Board Has Proposed: (%) 42% 42% 40% ⚫ Dividend per Share: RMB0.2187 38% ⚫ Dividend Payout Ratio: 42% 36% 36% 36% 36% 36% 33% 30% Earnings per Share Dividend per Share (RMB) (RMB) Total Dividend per Share 0.2174 0.2
Slide 16: Actively Fulfilling ESG Responsibilities
Actively Fulfilling ESG Responsibilities Accomplishing the Corporate Mission of “Building Smart Society, Boosting Digital Economy, Serving a Good Life” ⚫ Being a Constituent of “Hang Seng Corporate Sustainability Benchmark Index” for Three Consecutive Years ⚫ Corporate Governance Asia - “Sustainable
Slide 17: Strategic Positioning of 1 Positioning, 4 Roles
Endowing the Strategic Positioning of “1 Positioning, 4 Roles” with New Essence, Building New Leading Advantages in the Industry New Generation Integrated Smart Service Provider Positioning Builder of Provider of Smart Provider of Industrial Guard of Smart Digital Infrastructure Products and Platfor
Slide 18: Business Review
Overview Financial Business Results Review
Slide 19: Business Revenue Breakdown
Business Revenue Breakdown (RMB’M) 2023 2024 Change % % of Revenue TIS (Telecommunications Infrastructure Services) Design 10,550 9,917 -6.0% 6.6% Construction 61,188 60,673 -0.8% 40.4% Supervision 4,399 4,582 4.2% 3.1% Subtotal 76,137 75,172 -1.3% 50.1% BPO (Business Process Outsourcing Services) M
Slide 20: Overall Performance by Business and Market
Overall Performance by Business and Market By Business By Market +0.9% +0.9% (RMB’ M) (RMB’ M) 148,615 150,000 148,615 150,000 3,456 +22.3% 4,228 28,927 31,369 +8.4% Overseas Customer 63,433 -2.0% 62,169 43,459 ACO Domestic 43,551 -0.2% Non-operator BPO 27,327 -10.5% 24,469 Domestic Operator TIS Chi
Slide 21: Domestic Operator Market
Domestic Operator Market: Effectively Responded to CAPEX Decline, Overall Revenue Remained Stable with Improvement Seized New Demands of Transformation such as Computing Power Infrastructure Construction and Industrial Digitalization Revenue +2.3% (RMB’M) +201 +491 + 1,185 83,603 ⚫ Adhered to the de
Slide 22: Domestic Non-Operator Market (1)
Domestic Non-Operator Market (1): Strengthened Development Quality and Deeply Cultivated Strategic Emerging Businesses Seized the Opportunities Across Various Industries from the Acceleration of Digital Transformation and Upgrading, Intelligentization, Greening and Security Enhancing Revenue -2.0% ⚫
Slide 23: Domestic Non-Operator Market (2)
Domestic Non-Operator Market (2): Focused on Industries which We Hold an Edge and Promoted our Advantageous Businesses Targeted Key Industries while Enhancing the Top-tier Marketing and Expansion of Strategic Emerging Businesses ⚫ Projects with Contract Value over RMB10 Million Each Value of New Con
Slide 24: Overseas Market
Overseas Market: Market Deployment Yielded Results with Three Major Businesses Growing Rapidly While Reinforcing Traditional Businesses in Communications, Extended to Electricity and Industrial Digitalization Businesses ⚫ Seized the opportunities from the joint development of the “Belt and Road” Ini
Slide 25: Strategic Emerging Businesses (1): Digital Infrastructure
Strategic Emerging Businesses (1): Digital Infrastructure New Contracts in 2024 Seizing the Demand of Large Models and Cloud Computing, Grew by over 30% Digital Infrastructure Business Achieved Rapid Growth Leveraging the Integrated Service Capabilities of Full-process Consultation, Design/General C
Slide 26: Strategic Emerging Businesses (2): Green and Low-carbon
Strategic Emerging Businesses (2): Green and Low-carbon New Contracts in 2024 Seizing the Opportunities from New Energy Construction and Energy Usage Grew by over 25% Services, Green and Low-carbon Business Achieved Rapid Growth Under the Guidance of the National “Dual Carbon” Strategy, We not only
Slide 27: Strategic Emerging Businesses (3): Smart City
Strategic Emerging Businesses (3): Smart City New Contracts in 2024 Grasping the Opportunity of Digital China Construction, a Series of Smart City Grew by over 40% Applications Achieved Rapid Growth Led by Top-level Planning of Smart City, We Empower Smart Government Affairs, Urban Governance, Indus
Slide 28: Strategic Emerging Businesses (4): Emergency Management & Security
Strategic Emerging Businesses (4): Emergency Management & Security New Contracts in 2024 Forging Core Products for Cybersecurity and Emergency Management Grew by over 30% Cybersecurity Emergency Management We focused on the capability in disaster prevention, mitigation and relief, as well as We deve
Slide 29: Persisting in High-quality Development Strategy
Persisting in High-quality Development Strategy to Achieve Sustainable Development Adhering to the Overall Roadmap of “Value-driven, Seeking Steady yet Progressive Growth and High-quality Development” Completion Status During 2021-2024 Total Maintained Steady Growth Revenues … Informatization ... Di
Slide 30: Financial Results
Overview Business Review Financial Results
Slide 31: Key Financial Indicators
Key Financial Indicators (RMB’M, Except EPS) 2023 2024 Change % % of Revenue Revenue 148,615 150,000 0.9% 100% Cost of Revenue 131,358 132,404 0.8% 88.3% Direct Personnel Costs 8,644 8,208 -5.0% 5.5% Materials Costs 24,671 25,579 3.7% 17.0% Direct Cost of Products Distribution 3,518 2,815 -20.0% 1.9
Slide 32: Operating Efficiency
Operating Efficiency Gross Profit Margin Improved for Three Consecutive Years Implemented High-quality 11.7% Development Strategy 11.6% 11.4% Focused on enhancing core competencies and strove to expand into high-value sectors 11.2% 11.0% Optimized Revenue Mix 2020 2021 2022 2023 2024 Strengthened te
Slide 33: Cost Structure
Cost Structure Cost/Expense as a % of Revenue Direct Personnel 5.8% -0.3pp 5.5% Costs Continuously Optimized Employee Mix Materials Costs 16.6% +0.4pp 17.0% ⚫ Rationally controlled the total number of employees, increased the per capita labor cost steadily and enhanced labor productivity Direct Cost
Slide 34: Cash Flow
Cash Flow Free Cash Flow Operating Cash Flow 6,221 (RMB’M) 5,214 (RMB’M) 5,356 +16.1% 4,333 +20.4% 2023 2024 2023 2024 Continue to Effectively Manage Working Capital with an Emphasis on Whole-process Control in Business Operations Emphasized the pre-bid project evaluation, customer credit rating,
Slide 35: Financial Position
Financial Position (RMB’M) 31.12.2023 31.12.2024 Total Assets 121,790 136,618 In which: Cash and Deposits1 35,460 38,110 Accounts Receivable and Contract Assets 52,505 63,064 Total Liabilities 78,122 90,004 In which: Accounts Payable and Contract Liabilities 62,954 75,085 Interest-bearing Liabilitie
Slide 36: Embracing New Technologies, Seizing New Opportunities
Embracing New Technologies, Seizing New Opportunities, and Pursuing New Breakthroughs MOVE FORWARD WITH INNOVATION SUSTAIN LONGEVITY WITH QUALITY Focusing on “Effective Improvement in Quality” and Fostering Stable and Sustainable Long-term Growth for the Enterprise
Slide 37: Thank You!
Corporate Governance Asia “14th Asian Excellence Award” ⚫ Asia’s Best CEO ⚫ Asia’s Best CFO ⚫ Best Investor Relations Company ⚫ Sustainable Asia Award Institutional Investor “2024 Asia Executive Team Rankings” ⚫ Most Honored Company ⚫ Telecommunications (Small & Midcap) ⚫ Best CEO ⚫ Best CFO ⚫ Best
Slide 38: Appendix
Fed PKS CHINA iE Ai 3 1 7 N Appendix
Slide 39: Business Revenue Breakdown – by Market
Business Revenue Breakdown – by Market (RMB’M) 2023 2024 Change Change % TIS (Telecommunications Infrastructure Services) Domestic Operator 40,886 41,087 201 0.5% Domestic Non-operator 32,658 31,038 -1,620 -5.0% Overseas Customer 2,593 3,047 454 17.5% Subtotal 76,137 75,172 -965 -1.3% BPO (Business
Slide 40: 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 — FY2024 Earnings Presentation on 6ix