China Communications Services Corp Ltd: Segment Analysis

China Communications Services Corp Ltd (CCSCL), a subsidiary of China Telecommunications Corporation, is a leading service provider in the informatization sector in the PRC and is positioned as a “New Generation Integrated Smart Service Provider.” The company provides integrated comprehensive smart solutions in the digital intelligence sector, supported by its capabilities as a Pioneer of Digital Intelligence Consulting, Navigator of Digital Intelligence Infrastructure, Leader of Digital Intelligence Maintenance and Operation, and Provider of Digital Intelligence Products. Its services cover the entire customer value chain, including telecommunications infrastructure services such as design, construction, and project supervision; business process outsourcing services such as information technology infrastructure management, general facilities management, supply chain, and products distribution; and applications, content and other services such as system integration, software development, system support, and value-added services.

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CCSCL places technological innovation at the center of its growth strategy and has built a dual innovation system consisting of the external “Smart Series” product portfolio and the internal “Wise Series” empowerment platform. Key innovations include the AI+ Supply Chain Large Model, Smart Sports, Smart Grain Storage, Smart Server Room Management Platform (C-Station), Adaptive DC (Adaptive Data Center), Intelligent Building Management System (CCS-iBMS), Blockchain Platform, Smart Energy Saving Platform, Cloud-Network Resource Management Platform, Integrated Source-Grid-Load-Storage Virtual Power Plant Platform, Urban Lifeline Monitoring Platform, and Integrated Weather Modification Command and Dispatch Platform. The company also developed more than 40 proprietary cybersecurity products, AI-powered solutions for sports, grain storage, energy conservation, emergency management and digital government, while participating in the construction of intelligent computing centers, supercomputing centers, 5G-A infrastructure, satellite internet projects, and AI-enabled industry applications. As of December 2025, the CCSCL obtained 504 newly authorized invention patents and 1,300 software copyrights, reflecting strong innovation output and proprietary technology development. The company follows a formal intellectual property management framework under its R&D project management system, requiring intellectual property objectives, ownership protection measures, and commercialization plans for all major projects. The company also actively manages and protects its trademarks and brands, including the strategic product brands “Smart Series”, “Wise Series”, “CCS Smart Maintenance”, and “CCS Cyber Security,” while strengthening trademark management and brand value creation. In FY2025, the company incurred expenses of CNY5,470 million on R&D, which as a percentage of revenue, stood at 3.6%.