Highlights:

• Effectively cope with environmental changes, and the business performance is stable and rising
• Implement measures to improve quality and efficiency, and the gross profit margin continues to rise
• Significant effectiveness of strategic layout, and new business leads the growth
• With technological innovation as the guide, enhance the core competitiveness of the enterprise.
• Adhere to the strategy of high-quality development and strengthen core competitive advantages.

The group adheres to the overall principle of "value orientation, steady progress, and high-quality development", with steady growth in operating income and continuous improvement in efficiency indicators. In the first half of the year, the group achieved operating income of RMB 7,441.2 million, a year-on-year increase of 1.7%, of which service revenue [1] was RMB 7,285.5 million, a year-on-year increase of 3.0%. Operating gross profit was RMB 811.6 million, a year-on-year increase of 3.6%. The gross margin was 10.9%, a year-on-year increase of 0.2 percentage points. The net profit attributable to shareholders of the parent company was RMB 212.5 million, a year-on-year increase of 4.4%. The net profit [2] growth rate was higher than the revenue growth rate, and the net profit margin was 2.9%, an increase of 0.1 percentage points year-on-year. The return on equity [3] (ROE) was 9.9%. The basic earnings per share was RMB 0.307, a year-on-year increase of 4.4%.

(1) Leading advantage businesses, steady development of three major business sectors.

In the first half of the year, the group's telecommunications infrastructure service revenue was RMB 3,766.6 million, which was basically flat compared to the same period last year, accounting for 50.6% of operating revenue. Business process outsourcing service revenue was RMB 2,216.3 million, a year-on-year increase of 2.0%, accounting for 29.8% of operating revenue. Application, content, and other service revenue was RMB 1,458.3 million, a year-on-year increase of 6.0%, accounting for 19.6% of operating revenue, and is the first driving force for revenue growth in the first half of the year.

(II) Grasp the development trend of the digital economy and expand the three major customer markets steadily.

Accelerate the expansion in the digitalization field of the industry, and lead the income growth in the domestic non-operator customer market. The Group focuses on the strategic emerging industry fields represented by digital infrastructure, green low-carbon, smart cities, and emergency security. It adheres to the guiding role of consulting and design and the enabling role of digitization, and leverages the service advantages of "consultant + employee + steward"[4] and the capability advantages of "platform + software + service"[5], to provide customized, multi-scenario solutions for government, energy and power, construction, transportation, and other industry customers, significantly increasing the business value from this customer market. In the first half of the year, revenue from domestic non-telecom operator group customers ("domestic non-operator customer market") was RMB 3,240.9 million, a year-on-year increase of 2.5%, making it the first driving force for customer revenue growth in the first half of the year.

Grasp the opportunities of new information infrastructure construction and maintain stability in the domestic telecommunications operator market. The Group adheres to the development strategy of "CAPEX + OPEX + smart applications"[6], overcomes the difficulties caused by the decline in network investment by operators, actively serves the new business needs such as telecom operator computation network construction, 5G network construction and optimization, green transformation, and industry digitization, helps customers solidify network quality, and provides strong support for customers to achieve high-quality development. In the first half of the year, revenue from this market was RMB 4,002.4 million, a year-on-year increase of 0.1%, accounting for 53.8% of operating revenue.

Focusing on key areas, overseas market development maintains good momentum. The group actively responds to the digital economic needs of countries along the Belt and Road, strengthens collaborative expansion and ecological cooperation with Chinese enterprises going global, focuses on the Asia-Pacific, Middle East, Africa, and Latin America regions, providing customers with digital infrastructure construction, new energy construction, smart products and services, industry informatization solutions, and achieving multiple important projects. In the first half of the year, the overseas market maintained rapid growth, with revenue reaching RMB 19,790 million, a year-on-year increase of 26.0%.

2. Anchoring strategic emerging industries, building a new vision for high-quality development.

1. The group targets the needs of government, industry, and corporate customers, concentrates on advantages resources, focuses on expanding strategic emerging industries such as digital infrastructure construction, smart cities, green low carbon, and emergency security. In the first half of the year, the new contract amount in this field increased by over 40% year-on-year, accounting for over 35% of the total new contract amount, and strategic emerging businesses have become the primary driving force for enterprise development.
   
2. (1) In the field of digital infrastructure construction
   
3. The Group relies on integrated package services of consulting, design, construction, and maintenance throughout the entire process. It focuses on the demand for smart computing, high-performance computing, and cloud services, and vigorously develops data centers, cloud business, and the 5G+ field. In the first half of the year, the amount of newly signed contracts in this field increased by over 35% compared to the same period last year. It successfully constructed multiple "East-Calc West-Compute" hub nodes and undertook consecutive projects in the finance, energy, manufacturing, and internet industries, such as smart computing centers, high-performance computing centers, and AI computing projects, to support the large-scale development of cross-border e-commerce, data elements, artificial intelligence, and other tracks, and contribute to China-style modern digital infrastructure.

(II) Smart City Field

With its rich industry accumulation, the Group takes the lead in smart city top-level planning, fully leveraging its advantages in capabilities such as consulting, integrated package services, software, platforms, and services. It empowers business expansion in the fields of smart government affairs, urban governance, industrial economy, and people's livelihood services, promoting the intelligence and improvement of city management and public services. In the first half of the year, the amount of newly signed contracts in this field increased by over 40% compared to the same period last year. It obtained multiple EPC total contract projects in the fields of digital government, smart transportation, smart education, and enterprise digital transformation, replicating advanced management experiences in social governance overseas.

(III) Green and Low-carbon Field

Under the national "dual carbon" strategy guidance, the group will shift and extend its traditional service advantages to the green and low-carbon fields, fully leveraging its "consulting, construction, operation and maintenance, digital capabilities", and providing upgrading services such as intelligent power infrastructure and supporting facilities, new energy construction, energy services, and carbon management for the five key industries of energy and power, information and communication, construction, industrial manufacturing, and transportation, promoting deep integration of the digital economy and the green economy. In the first half of the year, the amount of newly signed contracts in this field increased by over 60% compared to the same period last year. Among the billion-level projects in strategic emerging industries, more than half of them are green and low-carbon projects, continuously achieving new breakthroughs.

(4) Emergency Safety Field

The group deeply cultivates various sub-sectors in the fields of emergency management and cybersecurity, and is committed to improving the level of information governance. In terms of emergency management, it has developed a variety of safety production and disaster prevention products for customers in emergencies, chemical parks, forestry, water conservancy, and high-risk enterprises, and has successfully replicated and promoted them. In terms of cybersecurity, it undertakes multiple national critical infrastructure projects in the information and communication, finance, medical, and energy fields, providing customers with network security operation products and information security products. In the first half of the year, the amount of newly signed contracts in this field increased by over 40% compared to the same period last year.

3. Adhere to technological innovation and enhance core competitiveness of the enterprise

(1) Adhere to the core position of technological innovation and promote the reform of the scientific and technological innovation system. The group actively implements the innovation-driven strategy, steadfastly promotes independent and self-reliant technological innovation, uses technological innovation to cultivate new productive forces, and promotes the high-quality development of the company. In the first half of the year, the group accelerated the optimization and transformation of the technological innovation system, strengthened intensive research and development, established a technology innovation committee, built a team of more than 300 technical experts at the group level, continuously improved the support system for technological innovation management, and further consolidated the foundation of technological innovation.

(2) Focus on the research and development of core products, and continue to produce research and development results. In the first half of the year, the group focused on strategic emerging industries and future industries, continued to increase investment in scientific and technological research and development, and invested RMB 2,314 million in research and development funds, a year-on-year increase of 11.1%. In the areas of digital infrastructure, smart cities, green low-carbon, and emergency safety, the group creates key products for customer intelligence, security, and scenario-based needs. In the field of artificial intelligence, multiple artificial intelligence applications have been built for key customers in the communication, government, emergency, e-commerce, transportation, and campus sectors. It has accumulated more than 3,600 authorized patents and over 9,700 software copyrights. Multiple core products and solutions have been selected for national major projects and pilot demonstration projects.

(3) Accelerate the transformation of scientific and technological innovation achievements, and continuously demonstrate the benefits of scientific and technological innovation. The group accelerates business transformation through technological innovation, promotes deep integration of scientific and technological innovation products and services, and builds green, smart, and safe integrated service capabilities with technological content, continuously enhancing the value of the business. With the marketing matrix of "industry centers + regional platforms" throughout the country, the promotion and transformation of scientific and technological innovation products are continuously strengthened. In the first half of the year, software development and system support revenue increased by 11.4% year-on-year, contributing 24% to the incremental revenue.

展望未来

Mr. Luan Xiaowei, Chairman of ChinaComservice, said: "Currently, the rapid development of new generation information technologies such as 5G-A, artificial intelligence, computing power networks, low-altitude economy, and satellite communication is taking place. In the global wave of digitization and informatization, the digital economy is rising at an unprecedented speed. Faced with new situations, new opportunities and challenges, the group will fully, accurately, and comprehensively implement the new development concept, adhere to the overall guiding principle of 'value-driven, steady progress, and high-quality development,' focus on technological innovation, constantly enhance core capabilities, improve core competitiveness, cultivate and strengthen new productive forces, deepen corporate reforms, deeply cultivate strategic emerging industry areas, strive to create technology-based enterprises, and achieve good growth in operational performance and continuous improvement in operational efficiency to create greater value for shareholders, customers, and society."

Looking to the future,

The press release contains forward-looking statements based on the company's beliefs, assumptions, and existing information about the company, its business, and prospects. In the press release, the use of words such as "expect," "believe," "estimate," "anticipate," "plan," "prospects," "future," and other similar expressions in relation to the company or its business, constitutes forward-looking statements. These statements reflect the company's current views on future events and are subject to risks, uncertainties, and assumptions. If one or more of these risk factors materialize, or if any of the underlying assumptions are found to be incorrect, actual results may differ from the forward-looking statements in the press release. The company does not intend to update these forward-looking statements, except as required by the continuing disclosure obligations under the Listing Rules or other regulations of the Stock Exchange.